viernes, 5 de diciembre de 2008

When Providence Intervenes in Bad Economics

Now I'm not sure how the readers of this blog (the few of them that there are) feel about President Bush, particularly his economic policies, anyways...

When President Bush came into office, he brought with him a policy of tax cuts. At the time the economy was booming, and I'm really not sure what the argument was behind it, but it went through. Anyways, tax cuts would have the effect of pumping up aggregate demand when it was already rising along with GDP and price level, so inflation could have easily resulted. However, by the time it was actually implemented, we were in a recession, so the tax cuts worked wonderfully in expanding the economy as it was shrinking. Anyways, is Bush a good economist? no, but Providence seems to have intervened. =)

1 comentario:

Old Fashioned Liberal dijo...

No. Escribi esa cosa en un otro post.