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Posted by: Michael Mandel on March 30
I’m at a conference on the Council on Foreign Relations, looking back at the Great Depression and the New Deal.
One speaker is Ed Prescott, 2004 Nobel Prize winner. He said:
I do predict the U.S. will lose a decade of growth. Marginal tax rates will be increased. Productivity-depressing policies will be adopted.
When asked what we should do noww, he said (more or less exact quotes, based on my rapid typing):
Don’t subsidize inefficiency. Cut tax rates to get people to work more
This financial stuff is much ado about nothing. I don’t see any reason for the taxpayers to bail out Goldman Sachs in a roundabout way. Let these businesses go bankrupt. They gambled, they lost. That’s part of life.
I’m not necessarily agreeing with him, but it’s an interesting position.
Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.