Wednesday, August 10, 2005
Donald Luskin on Science and Faith
I don't read Paul Krugman often (I don't always understand what he's talking about and I have strong doubts that he's giving it to me straight), but I always read Donald Luskin debunking what Krugman has written. Like this gem over at NRO.
Money quote:
"It must be moral force — it certainly isn’t science — that permits Krugman to claim that supply-side economics has “never been backed by evidence.” How does he reconcile the fact that federal tax revenues plummeted after peaking in 2000 (while tax rates remained high) and then recovered after the 2003 tax cuts were put in place? What does he call Krugman Truth Squad member Kevin Hassett’s observation that the tax revenues currently anticipated by the Congressional Budget Office for 2006 are about the same as those it anticipated for 2006 back in 1999 — even though tax rates have been slashed since then?
Here’s what I call it: scientific, empirical, real-world proof. Supply-side economics works. Lower tax rates, higher economic growth, and higher tax revenues go hand in hand in hand."
Krugman Truth Squad, indeed.
Money quote:
"It must be moral force — it certainly isn’t science — that permits Krugman to claim that supply-side economics has “never been backed by evidence.” How does he reconcile the fact that federal tax revenues plummeted after peaking in 2000 (while tax rates remained high) and then recovered after the 2003 tax cuts were put in place? What does he call Krugman Truth Squad member Kevin Hassett’s observation that the tax revenues currently anticipated by the Congressional Budget Office for 2006 are about the same as those it anticipated for 2006 back in 1999 — even though tax rates have been slashed since then?
Here’s what I call it: scientific, empirical, real-world proof. Supply-side economics works. Lower tax rates, higher economic growth, and higher tax revenues go hand in hand in hand."
Krugman Truth Squad, indeed.
# posted by Roger Fraley @ 7:16 AM 
