To respond to Becker's point about the recession ending-don't count on it. There's still a fundamental correction in the economy working itself out right now and the government is doing its best not to let it happen. Banks are still failing, job cuts are still occurring, and there is a lot of debt out there still that needs to be either defaulted on or paid off. Cash for clunkers raised GDP output slightly but that's just one quarter's worth and things are likely to resume on their old course again now.
The establishment is patting themselves on the back right now for saving us all and we'll see if they're right.
I thought Becker was phoning this one in. I was much more persuaded by Krugman's argument over Beckers. Becker's didn't even get to the freaking point until the last two paragraphs. Then he basically said. "Uh cut taxes. Especially corporate taxes." With exactly no supporting evidence as to why that would help. All of our stimulus money we sent banks and corps has basically gone to play the market, and has saved zero jobs. So why would cutting taxes directly lead to job growth? In this climate I don't see it happening like they think.
It might be worth noting that Krugman won his prize "for his analysis of trade patterns and location of economic activity" while Becker got it for studying "a wide range of human behaviour and interaction, including nonmarket behaviour".
In other words, Krugman is the one who actually studies the economy.
It might be worth noting that Becker is hugely respected among economists, while Krugman is considered to be a bit of an asshat, sort of like the Malcom Gladwell of the field.
In other words, Becker is the one who is actually considered a real economist.
[+] [-] jswinghammer|16 years ago|reply
The establishment is patting themselves on the back right now for saving us all and we'll see if they're right.
[+] [-] chubbard|16 years ago|reply
[+] [-] aaronsw|16 years ago|reply
In other words, Krugman is the one who actually studies the economy.
[+] [-] muffinlips|16 years ago|reply
In other words, Becker is the one who is actually considered a real economist.
[+] [-] shrughes|16 years ago|reply