Wednesday, March 26, 2008

Faith Based Economics

From Dani Rodrik:

Kevin Hassett, economics advisor to John McCain, is quoted today as saying:

What really happens is that the economy grows more vigorously when you lower tax rates... It is beyond the reach of economic science to explain precisely why that happens, but it does.

Now you can be excused for thinking that the first of these statements is true, if you have an economically sound reason for it. But if you don't, you shouldn't.

Let's call it no longer supply-side economics. It is faith-based economics.

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