Posted by: Dirk | October 5, 2010

The Washington Post messes up what Ben Bernanke has said about repealing the tax cuts

The Washington Post reports today under the headline of Bernanke warns of high budget deficits:

He [Bernanke] did, however, say that “economic conditions provide little scope for reducing deficits significantly further over the next year or two” and that “premature fiscal tightening could put the recovery at risk” which implies that the tax cuts should not be allowed to expire in 2010.

Excuse me, but … wouldn’t Bernanke’s words imply that tax cuts should be allowed to expire in 2010 in order to sustain the government’s revenues since economic conditions provide little scope for reducing the deficit significantly, meaning that government expenditure should stay up?

Did the author leave a “not” in there by mistake, made a logical error, or is this what he thinks he should report?

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Responses

  1. Dirk – – –

    Bernanke may simply be following the supply side history that cutting taxes and increasing spending leads to growth and prosperity.

    There are three legs on that stool, but one of them has been missing for some time. Unless, of course, you are operating a vacuum sweeper to pick up the excess cash that must be created to support the supply side “dynamo”. The “financial system” is really a vaccum operator running away with the money.


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