The Right Coast

Editor: Thomas A. Smith
University of San Diego
School of Law

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Wednesday, April 25, 2012

Christina Romer Knows Tax Hikes Will Kill the Recovery - Forbes

A powerful analysis by  President Barack Obama’s first Chair of his Council of Economic Advisers (CEA) indicates the President’s proposed tax increases would kill the economic recovery and throw nearly 1 million Americans out of work.  Those are the extraordinary implications of academic research by Christina D. Romer, who chaired the CEA from January 28, 2009 – September 3, 2010.  In a paper entitled: “The Macrcoeconomic Effects of Tax Changes” published by the prestigious American Economic Review in June 2010 (during her tenure at the White House), she stated: “In short, tax increases appear to have a very large, sustained, and highly significant negative impact on output.”

via www.forbes.com

http://rightcoast.typepad.com/rightcoast/2012/04/christina-romer-knows-tax-hikes-will-kill-the-recovery-forbes.html

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Comments

I am glad to see you agree that the solution to a liquidity trap is deficit spending.

Posted by: Keynsian | Apr 25, 2012 1:58:37 PM