Sunday, June 22, 2008

The End of the World As We Know It

Listen up. This guys got a trophy too, just like Algore. The Nobel Prize for economics.

I've been posting about how raising taxes simply to spend the revenue will negatively impact all of us directly or indirectly but here's a guy a lot smarter than me, certainly a lot smarter than any Democrat politician (regarding the economy at least) who says Obama's pledge to turn back the Bush tax cuts will have a much greater impact than anyone realizes.

Democratic nominee Barack Obama regularly professes disdain for the Bush tax cuts, suggesting that those growth-spurring measures may be scrapped. "If that happens," Mr. Mundell predicts, "the U.S. will go into a big recession, a nosedive."

"This would be devastating to the world economy, to the United States, and it would be, I think, political suicide" in a general election.

"the most important thing that could be done with respect to tax rates now is to make the Bush tax cuts permanent. Eliminating that uncertainty would be more important than pushing for a further cut – in the income tax rates, anyway."

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