What Is the Political-Economic Agenda After Piketty?
Worthy Reads for December 20, 2018

Michael Boskin wrote this two years ago. To my knowledge, not once in the past two years has he acknowledged that his "professional judgment" about the effects of the Trump-McConnell-Ryan tax bill were wrong. There has been no jump in the equipment investment share of national income. And those of us whose judgment is better than Michael Boskin's were damned certain back in late 20127 that there would not be: Michael Boskin: Another Look at Tax Reform and Economic Growth: 'With the Republican tax package now finalized and coming to a vote in both houses of Congress, a debate has been raging over the bill's possible growth effects. In that debate, those who oppose the package seem to be underestimating the outsize impact of equipment investments.... I agree that the current tax bill could, in principle, have been better.... Barro and I have clearly come to a different conclusion than Summers and Furman have about the bill, based on our own judgments about the links between corporate-tax reform and economic growth. While I certainly respect Summers and Furman’s right to their views, I am not about to cede my professional judgment to others, in or out of government...

Equipment-investment


#noted

Comments