Wednesday, May 17, 2006

Read the whole angrybear post

but this section to me was the guts:
Don’t get me wrong – Robert Reich does this debate a great service when he talks about income distribution even if we can hear Robert Novak screaming something about CLASS WARFARE in the background. But he almost concedes Kudlow’s usual argument about faster growth by default even if we know Kudlow is dead wrong. Let me share my initial reaction to the two pieces by Reich that Mark Thoma linked to:

I like Reich - but let's be honest. He's not all that effective in debating this issue. All one needs to do to undermine the Kudlow et al. faster growth argument is to quote a Kudlow statistics - the US economy's average annual growth rate from 1947 to 2000 has been 3.5%. But let's break this down:
1947-1980 (high tax rates): 3.5%
1981-1992 (low tax rates): 3.0%
1993-2000 (high tax rates): 3.7%
Now taking the OMB projections for the rest of this decade, we project the following:
2001-2010 (low tax rates): 2.9%

I know – nothing original nor really all that complicated. But we have been witnessing a flood of free lunch garbage of late – all wrapped in a slew of distortions that Kudlow and his fellow clowns are infamous for bringing to any discussion.

One issue I have, and angrybear did it, is referring to Bush, Gingrich, and the rest as "conservatives" when they clearly are not. That's their framing, and we need to stop it.

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