Tuesday, August 10, 2004

Deficits: It's What's for Dinner

from The New York Times
What we've just seen is as clear a test of trickledown economics as we're ever likely to get. Twice, in 2001 and in 2003, the administration insisted that a tax cut heavily tilted toward the affluent was just what the economy needed. Officials brushed aside pleas to give relief instead to lower- and middle-income families, who would be more likely to spend the money, and to cash-strapped state and local governments. Given the actual results--huge deficits, but minimal job growth--don't you wish the administration had listened to that advice?

- Paul Krugman

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