Religion, Politics and World Events They make great dinner conversation, don't you think? plus Political Film

Nobel Laureate calls for more US tax cuts

Old 10-12-04, 10:58 AM
  #1  
bhk
DVD Talk Legend
Thread Starter
 
Join Date: May 1999
Location: Right of Atilla The Hun
Posts: 19,749
Nobel Laureate calls for more US tax cuts

http://www.iol.co.za/index.php?set_i...7554324711B251
Washington - Edward Prescott, who picked up the Nobel Prize for Economics on Monday, said President George Bush's tax rate cuts were "pretty small" and should have been bigger.

"What Bush has done has been not very big, it's pretty small," Prescott said.

"Tax rates were not cut enough," said Prescott.

Lower tax rates provided an incentive to work, Prescott said.

Prescott and Norwegian Finn Kydland won the 2004 Nobel Economics Prize for research into the forces behind business cycles.

The American analyst, who is a professor at Arizona State University and a researcher at the Federal Reserve Bank of Minneapolis, said a large tax cut in 1986 had lowered rates while collecting the same revenue.

But "in the early nineties the economy was depressed by the tax increase in 1993 by about four percent, and it's right at that level now," Prescott said.

Bush, who is fighting to get re-elected on November 2, has cut taxes by about $1,7-trillion during his term.

The US leader accuses his Democratic rival John Kerry of favoring tax increases, despite Kerry's promise to cut taxes for everyone earning less than 200 000 dollars a year. - Sapa-AFP
Two thoughts:
1. At least this guy's talking about a subject he won the prize in.
2. Oops, the commission must have awarded the prize to this guy by mistake.
bhk is offline  
Old 10-12-04, 11:16 AM
  #2  
Banned
 
Join Date: Jun 2001
Location: In a land far, far away.
Posts: 966
Interesting. It would seem to me that there has to be a "sweet spot" for what the rate should be. Obviously no taxes bring in no money, so there has to be a value that gets you the most bang for the buck. What is it? His comments seem pretty unclear about that. It also doesn't mention anything about spending. Even if you maximize your tax intake against your economy's capability, there will still be limit to the amount of money you can spend. (unless you put it on government plastic) Seems like hollow advice without those factors explained.
Contactsport1 is offline  
Old 10-12-04, 11:39 AM
  #3  
Moderator
 
wendersfan's Avatar
 
Join Date: Jun 2002
Location: Nuova Repubblica di SalÚ
Posts: 32,859
I did a search and I couldn't find this story reported by any US news organizations. I guess it's not true then...
wendersfan is offline  
Old 10-12-04, 07:37 PM
  #4  
DVD Talk Limited Edition
 
Nazgul's Avatar
 
Join Date: Jan 2001
Location: Jayhawk Central, Kansas
Posts: 7,125
Whoops. I wonder if there will be a recount?
Nazgul is offline  
Old 10-12-04, 07:40 PM
  #5  
DVD Talk Legend
 
Join Date: Aug 2000
Location: Newberg, OR
Posts: 17,238
He should leave discussion of topics like this to the experts. Actors.
Jeremy517 is offline  
Old 10-12-04, 07:43 PM
  #6  
Jim
DVD Talk Gold Edition
 
Join Date: Dec 2001
Posts: 2,575
He just won a boatload of money, of course he wants tax cuts.
Jim is offline  
Old 10-12-04, 07:46 PM
  #7  
DVD Talk Legend
 
nevermind's Avatar
 
Join Date: Oct 2000
Location: Illinoyze
Posts: 10,514
Originally posted by Jeremy517
He should leave discussion of topics like this to the experts. Actors.
nevermind is offline  
Old 10-12-04, 09:54 PM
  #8  
Moderator
 
Join Date: May 2000
Location: In mourning
Posts: 26,300
Originally posted by Contactsport1
Interesting. It would seem to me that there has to be a "sweet spot" for what the rate should be. Obviously no taxes bring in no money, so there has to be a value that gets you the most bang for the buck. What is it? His comments seem pretty unclear about that. It also doesn't mention anything about spending. Even if you maximize your tax intake against your economy's capability, there will still be limit to the amount of money you can spend. (unless you put it on government plastic) Seems like hollow advice without those factors explained.

Mr. Prescott is an incredibly intelligent individual, one of economics brightest stars and most respected members. Almost all macro econometric models and forecasts employ concepts originated and championed by him and his partner. I know he has expanded his thoughts on this subject previously. I am certain that with a bit of research, you could ascertain what he feels about this matter. Basically though, it is a simple pro-growth sentiment. The cuts implemented by Bush were not large enough to foster a big enough increase in growth that was hoped for, an increase that would necessarily lead to increased revenues as well.
Pharoh is offline  
Old 10-12-04, 10:03 PM
  #9  
DVD Talk Platinum Edition
 
Join Date: Jul 2001
Posts: 3,263
I don't think it is fair to blame Bush for the tax cut being small. Wasn't the tax cut supposed to be $720 billion before it got slashed (to $550 or $350 billion, I forget which one won in the end) in congress?
SFranke is offline  
Old 10-12-04, 11:03 PM
  #10  
Banned
 
Join Date: Jun 2001
Location: In a land far, far away.
Posts: 966
Originally posted by Pharoh
Mr. Prescott is an incredibly intelligent individual, one of economics brightest stars and most respected members. Almost all macro econometric models and forecasts employ concepts originated and championed by him and his partner. I know he has expanded his thoughts on this subject previously. I am certain that with a bit of research, you could ascertain what he feels about this matter. Basically though, it is a simple pro-growth sentiment. The cuts implemented by Bush were not large enough to foster a big enough increase in growth that was hoped for, an increase that would necessarily lead to increased revenues as well.

?? I didn't claim to disagree with anything he said, nor did I claim that he wasn't an economics super geek. I just pointed out that without some additional information, the thought wasn't much use.

Mr Prescott? What's your relationship with Edward.

Last edited by Contactsport1; 10-12-04 at 11:05 PM.
Contactsport1 is offline  
Old 10-12-04, 11:47 PM
  #11  
Moderator
 
Join Date: May 2000
Location: In mourning
Posts: 26,300
Originally posted by Contactsport1
?? I didn't claim to disagree with anything he said, nor did I claim that he wasn't an economics super geek. I just pointed out that without some additional information, the thought wasn't much use.

Mr Prescott? What's your relationship with Edward.

Okay, I may have misread the intent of your post. My apologies.


My larger point is that the additional information is out there, though as you correctly pointed out, not in the article snipet.


As for the last statement, nothing too personal. I will leave it at that. More importantly though, it is a matter of personal respect, respect that I have for him.
Pharoh is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Thread Tools
Search this Thread

Archive Advertising Cookie Policy Privacy Statement Terms of Service

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.