korrents

fiscal policy

The spending-and-taxing half of macro, as against the central-bank half: multipliers, stabilisers, stimulus.

FilterEveryone, all time32 from 22 people
Group All Technologists 1Scientists 2Economists & investors 3Politicians 1Artists & entertainers 2Writers & journalists 4
Who Everyone OBOlivier Blanchard 7 BCBen Carlson 2 JBJennifer Burns 2 JBJosh Barro 2 NSNoah Smith 2 ATAdam Tooze 1 ABAndrew Batson 1 BMBill McKibben 1 BDBrad DeLong 1 DMDan Meyer 1 DTDonald Trump 1 HRHannah Ritchie 1 JCJohn H. Cochrane 1 LDLeonardo DiCaprio 1 LALyn Alden 1 MFMilton Friedman 1 MMMr. Money Mustache 1 NENat Eliason 1 RSRichard Stallman 1 RBRoy Baumeister 1 SBSanjay Bakshi 1 SKStephen King 1
When All time Past 1 yearPast 3 yearsPast 5 years
  1. BD

    Brad DeLong quoted

    Economics professor at the University of California

    Our readingReagan-era tax cuts for the rich did not deliver the faster economic growth they were promised in return.

    Their wordsThe Reagan Revolution promised faster growth in exchange for lower taxes on the rich. The rich won; the growth never showed up.

    ↗Passthrough Tax Loopholes & the Rise of the American Gentry: CHART OF THE DAYbraddelong.substack.com 2nd of 2 in this piece

  2. 3 days earlier
  3. RS

    Richard Stallman quoted

    Founder of the Free Software Movement and the GNU Project

    Our readingRepublicans' long-term strategy since Reagan has been to spend heavily on things that don't benefit the non-rich, refuse to raise taxes, and thereby balloon the national debt.

    America

    Their wordsRepublicans' long-term strategy, since Reagan, is to spend a lot of money (mainly on things that won't benefit non-rich Americans), refuse to raise taxes, and therefore greatly increase the national debt.

    ↗Urgent: Raise the Wage Actstallman.org 11th of 10 in this piece

  4. 5 days earlier
  5. AT

    Adam Tooze quoted

    Economic historian, Kathryn and Shelby Cullom Davis…

    Our readingGermany's crisis is too deep to be solved by conventional tax, spending, or regulatory adjustments.

    Their wordsGermany is in trouble. But the trouble goes deep and cannot be addressed by "more of the same" socio-economic measures in the domain of taxes or social spending or regulation.

    ↗Chartbook 474: The state is the problem - the AfD’s anti-systemic diagnosis of contemporary Germany. adamtooze.substack.com 2nd of 2 in this piece

  6. 2 days earlier
  7. DM

    Dan Meyer quoted

    Maths educator; writes Mathworlds on how mathematics…

    Our readingPrivate industry has always wanted the public to subsidize its employee training and development costs.

    Their wordsPrivate industry has always wanted the public to subsidize its employee development costs.

    ↗How to Inoculate Yourself Against Edtech Psychosisdanmeyer.substack.com 2nd of 3 in this piece

  8. 12 days earlier
  9. BC

    Ben Carlson quoted

    Director of institutional asset management at Ritholtz…

    Our readingGovernment borrowing through the financial crisis and the pandemic was a good trade, because it repaired household balance sheets.

    government

    Their wordsI think the fact that the government took on debt during two crises to help households was a good trade-off.

    ↗My Most Contrarian Opinion Right Nowawealthofcommonsense.com 2nd of 3 in this piece

  11. BC

    Ben Carlson quoted

    Our readingThe real danger of high government debt is the policy errors it provokes, not a debt crisis.

    government

    Their wordsBut I am worried about high government debt levels causing policy errors.

    ↗My Most Contrarian Opinion Right Nowawealthofcommonsense.com 3rd of 3 in this piece

  12. 2 weeks earlier
  13. BM

    Bill McKibben quoted

    Writer and climate campaigner

    Our readingWindfall profits oil companies earn from wartime price spikes should be taxed.

    America

    Their wordsIt would of course make great sense to tax these windfall profits, earned entirely on the back of dead Iranians and Americans, and everyone who's paying $4.50 a gallon at the pump.

    ↗Fun with numbersbillmckibben.substack.com 1st of 3 in this piece

  14. 3 months earlier
  15. JB

    Josh Barro quoted

    Writes Very Serious, a newsletter on politics

    Our readingSeeking special tax treatment that could not sustainably be extended to everyone is morally wrong.

    Their wordsit's also morally wrong to seek out special treatment that could not sustainably be offered to everyone.

    ↗Stop Microlooting the Tax Codejoshbarro.com 1st of 3 in this piece

  17. JB

    Josh Barro quoted

    Our readingHow big a government you want determines necessary tax rates, but any such system depends on people actually paying their taxes.

    government

    Their wordsThe necessary tax rates depend on how big a government you want, but all these systems rely on people paying taxes.

    ↗Stop Microlooting the Tax Codejoshbarro.com 3rd of 3 in this piece

  18. 3 weeks earlier
  19. MM

    Mr. Money Mustache quoted

    Pen name of the writer behind mrmoneymustache.com

    Our readingThe Social Security benefit formula is designed to be progressive, giving proportionally larger benefits to lower earners than to higher earners.

    Their wordsThe whole system is scaled progressively. It is designed to help and subsidize people who need it more, and it becomes less of a "good deal" the higher your income.

    ↗The Shockingly Simple Math Behind Social Securitymrmoneymustache.com 2nd of 2 in this piece

  20. 2 months earlier
  21. HR

    Hannah Ritchie quoted

    Data scientist at Our World in Data and author of Not the End of the World

    Our readingTaking away meat and dairy subsidies would raise meat prices by only a few per cent, nowhere near enough to close the gap with meat substitutes.

    Their wordsRemoving subsidies would raise meat prices a little, but only by cents to tens of cents per kilogram.

    ↗Do subsidies make meat much cheaper?hannahritchie.substack.com 1st of 4 in this piece

  22. 3 months earlier
  23. NE

    Nat Eliason quoted

    Writer and novelist

    Our readingPeople are not obligated to help cover healthcare costs that result from others' lifestyle choices.

    Their wordsBut if someone has made poor lifestyle choices, that's not my problem.

    ↗I Canceled My Family's Health Insurance (and joined CrowdHealth)nateliason.com 2nd of 2 in this piece

  24. 2 months earlier
  25. SB

    Sanjay Bakshi quoted

    Indian value investor who taught Behavioural Finance…

    Our readingWhether a company's customers or its shareholders capture the benefit of a tax cut depends on how much pricing power that company has.

    Their wordsCompanies with pricing power will retain the benefits of GST reductions as increased profits, while companies without pricing power will pass the benefits to consumers through lower prices.

    ↗Who Will Benefit from Reduced GST Rates?fundooprofessor.wordpress.com 1st of 2 in this piece

  26. 3 weeks earlier
  27. AB

    Andrew Batson quoted

    China economy researcher based in Beijing who writes…

    Our readingWhen assessing an economy's trajectory, current performance signals are more useful than forecasts of potential GDP growth.

    Their wordsBut for a variety of reasons I think it makes more sense to stay agnostic about forecasts of potential GDP growth, and focus more on the signals the current performance of the economy is sending.

    ↗Who believes in China’s output gap?andrewbatson.com 2nd of 2 in this piece

  28. 4 months earlier
  29. JC

    John H. Cochrane quoted

    Economist at the Hoover Institution

    Our readingThe cure for the trade deficit is to tax consumption instead of saving and investment, and to stop borrowing to fund consumption.

    tariffs

    Their wordsCure the disease, not the symptoms. Reform taxes to tax consumption, not saving and investment. Stop funneling borrowed money to consumption.

    ↗Tariffs, saving, and investmentgrumpy-economist.com 6th of 6 in this piece

  30. 3 months earlier
  31. DT

    Donald Trump quoted

    President of the United States

    Our readingA country should raise revenue by tariffing foreign countries rather than by taxing its own citizens.

    tariffs

    Their wordsInstead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.

    ↗The Inaugural Addresswhitehouse.gov

  32. 1 day earlier
  33. JB

    Jennifer Burns quoted

    Historian of ideas at Stanford University and the Hoover Institution

    Our readingMilton Friedman would have backed the first rounds of coronavirus relief, because he treated an emergency as a category where his ordinary rules were suspended.

    Their wordsMilton Friedman is very open to doing things differently in a state of emergency. He will have different ideas during World War II than any other time and that's why I argue I think he would have been supportive of at least the first rounds of coronavirus relief because I think he would have put his emergency thinking hat on.

    ↗Jennifer Burns: Milton Friedman, Ayn Rand, Economics, Capitalism, Freedom | Lex Fridman Podcast #457youtube.com 6th of 20 in this recording

  35. JB

    Jennifer Burns quoted

    Our readingFriedman's universal minimum income went nowhere precisely because it was pure and free of moral judgment, which made it beautiful and politically impossible.

    Their wordsAnd Friedman advanced a policy that was really abstract and really it was devoid of judgment. It was pure and beautiful in that way but utterly impractical.

    ↗Jennifer Burns: Milton Friedman, Ayn Rand, Economics, Capitalism, Freedom | Lex Fridman Podcast #457youtube.com 10th of 20 in this recording

  36. 11 days earlier
  37. LA

    Lyn Alden quoted

    Investment researcher and engineer who runs Lyn Alden Investment Strategy

    Our readingStructural fiscal deficits have surpassed private sector lending and monetary policy as the primary driver of economic activity and inflation.

    inflation

    Their wordsStructural fiscal deficits have surpassed private sector lending and monetary policy as the primary drivers of economic activity and inflation, marking a fundamental shift in the economy's liquidity dynamics.

    ↗Full Steam Ahead: All Aboard Fiscal Dominancelynalden.com 1st of 3 in this piece

  38. 20 months earlier
  39. RB

    Roy Baumeister quoted

    American social psychologist, born 16 May 1953

    Our readingA thriving society needs both the left's redistributing of resources and the right's producing and conserving of them

    Their wordsIn short, the left focuses on redistributing and sharing resources. The right focuses on producing and conserving them. A thriving society needs both of these jobs to get done.

    ↗Why Do Republicans and Democrats Hate Each Other? (Psychology Today, Cultural Animal)psychologytoday.com 2nd of 5 in this piece

  40. 10 months earlier
  41. NS

    Noah Smith quoted

    Economics writer; author of the Noahpinion newsletter

    Our reading · no longer heldPandemic relief checks function mainly as retroactive social insurance rather than stimulus, because people receiving them during a pandemic save or pay down debt instead of spending.

    No longer holdsI had some theory and some evidence on my side for this prediction, and yet I ended up being very wrong about what would happen to consumption.

    SaidI had some theory and some evidence on my side for this prediction, and yet I ended up being very wrong about what would happen to consumption.

    ↗Four things I got wrong since I started this blognoahpinion.blog

  42. 8 weeks earlier
  43. OB

    Olivier Blanchard quoted

    Economist; former chief economist of the International Monetary Fund

    Our readingThe main obstacle to sound fiscal policy debate is a widespread, quasi-religious belief that public debt is inherently bad.

    public debtreligion

    Their wordsThe main challenge in discussing fiscal policy is the widely held and nearly religious belief that public debt is very bad.

    ↗Fiscal Policy under Low Interest Ratesdirect.mit.edu All 22 from this book

  45. OB

    Olivier Blanchard quoted

    Our readingThe probability of a self-fulfilling bad equilibrium in sovereign debt markets depends little on the debt level itself, but is much reduced by a rule linking the primary balance to debt service increases.

    JavaScript

    Their wordsI have argued that the probability of a bad equilibrium is only marginally influenced by the level of debt, but can be much reduced by a contingent rule making the primary balance react to an increase in debt service.

    ↗Fiscal Policy under Low Interest Ratesdirect.mit.edu All 22 from this book

  47. OB

    Olivier Blanchard quoted

    Our readingThe price level behaves as the aggregate of mostly backward-looking decisions rather than as an asset price, except during hyperinflation, so expected future primary balances barely affect it today.

    Their wordsI believe that, except in times of hyperinflation, the price level does not behave as an asset price but as the aggregate of billions of mostly backward-looking decisions, and that expectations of future primary balances have little effect on the price level today.

    ↗Fiscal Policy under Low Interest Ratesdirect.mit.edu All 22 from this book

  49. OB

    Olivier Blanchard quoted

    Our readingA fiscal expansion when the economy is already at potential output prompts monetary tightening that dampens or eliminates its effect on output.

    interest rates

    Their wordsIf a fiscal expansion takes place when output is already at potential, monetary policy is likely to tighten, leading to higher interest rates and thus a smaller effect or even no effect of the fiscal expansion on output.

    ↗Fiscal Policy under Low Interest Ratesdirect.mit.edu All 22 from this book

  51. OB

    Olivier Blanchard quoted

    Our readingFiscal multipliers vary across time and place but are generally nonzero, positive for spending, negative for taxes, and larger when monetary policy cannot offset them.

    JavaScript

    Their wordsMultipliers are likely to vary a lot over time and space, but the bulk of the evidence is that they are different from zero, positive for spending, negative for taxes, and that they are stronger when monetary policy does not or cannot react to fiscal policy.

    ↗Fiscal Policy under Low Interest Ratesdirect.mit.edu All 22 from this book

  53. OB

    Olivier Blanchard quoted

    Our readingDuring post-2008 fiscal consolidation, the costs of high public debt were overestimated and fiscal multipliers were underestimated, understating the output costs of austerity.

    public debt

    Their wordsThe costs of high debt were perceived to be very high—higher than they truly were—and the multipliers were underestimated, leading to an underestimate of the output costs of fiscal consolidation.

    ↗Fiscal Policy under Low Interest Ratesdirect.mit.edu All 22 from this book

  55. OB

    Olivier Blanchard quoted

    Our readingAutomatic fiscal stabilizers give fiscal policy an advantage over monetary policy in stabilizing output because they act faster.

    Their wordsIn some dimensions, fiscal policy has an advantage over monetary policy in stabilizing output. The main example is indeed the operation of automatic stabilizers, which act faster than monetary policy can.

    ↗Fiscal Policy under Low Interest Ratesdirect.mit.edu All 22 from this book

  56. 16 months earlier
  57. NS

    Noah Smith quoted

    Our readingPandemic relief checks function mainly as retroactive social insurance rather than stimulus, because people receiving them during a pandemic save or pay down debt instead of spending.

    Their wordsIf you get a check during a pandemic, you’re not going to go out and spend it at restaurants and bars, because…well, there’s a pandemic. Instead, you’re more likely to stick it in the bank, pay down debt, or pay the back rent that you owe.

    ↗COVID relief isn't stimulus, it's social insurancenoahpinion.substack.com

  58. 6 years earlier
  59. LD

    Leonardo DiCaprio quoted

    American actor and environmental campaigner who won…

    Our readingCarbon emissions should be priced and government subsidies for oil, coal and gas companies should be ended.

    governmentclimate change

    Their wordsWe need to put a price tag on carbon emissions and eliminate government subsidies for oil, coal, and gas companies. We need to end the free ride that industrial polluters have been given in the name of a free-market economy. They do not deserve our tax dollars -- they deserve our scrutiny.

    ↗Leonardo DiCaprio, Address at the United Nations Climate Summit, New York, 23 September 2014 (transcribed from audio by American Rhetoric)americanrhetoric.com 2nd of 4 in this piece