economics,  Paul Krugman,  Taxes

Poll Watch: Tax Cuts ALWAYS Better Than Increased Government Spending – Dissecting Paul Krugman

January 28, 2009 /
Paul krugman

Nobel Prize Winning Economist Paul Krugman

Paul Krugman notwithstanding, Americans believe it is always better to cut taxes than increase government spending.

Paul Krugman, last year’s winner of the Nobel Prize for economics and a regular columnist for the New York Times, recently wrote that you should “write off anyone who asserts that it’s always better to cut taxes than to increase government spending because taxpayers, not bureaucrats, are the best judges of how to spend their money.”

If you follow that advice, you’ll be writing off a majority of Americans. The latest Rasmussen Reports national telephone survey found that 53% say that it’s always better to cut taxes. Only 24% share Krugman’s views.

Republicans overwhelmingly say it’s always better to cut taxes, and so do 50% of those not affiliated with either major party. Twenty-three percent (23%) of unaffiliateds take the opposite view and agree with Krugman.

Democrats are evenly divided—38% say tax cuts are always better while 34% disagree.

Krugman is a little more in sync with public opinion when he asserts: “public spending rather than tax cuts should be the core of any stimulus plan.”

The poll finds:

  • 34 % Agree
  • 34 % Disagree
  • 32% Not Sure

Then, there is another Krugman opinion: “it’s clear that when it comes to economic stimulus, public spending provides much more bang for the buck than tax cuts.”

  • 31 % Agree
  • 42 % Disagree

On all of the questions surveyed above, American voters under 30 are more likely to agree with Paul Krugman.

There certainly appears to be a disconnect between American voters and the Far Left ELITIST Krugman. Is it because American voters are not academics and live in the real world? 

Or do they simply have experience on how government spending can be wasteful and tax increases oppressive?

Take your pick…….

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7 Comments

  • Rod Davis

    January 28, 2009 at 10:07 am

    Honeydew, California: Will you please explain how or if we can adapt Depression era lessons to the current crisis?

    Paul Krugman: The Depression offers a lot of more or less direct lessons. For example, the Big Mistake of 1937: FDR let himself be persuaded that he should try to balance the budget even though the economy was still depressed; the result was a severe recession in 1938. What the Depression teaches us is that when the economy is so depressed that even a zero interest rate isn’t low enough, you have to put conventional notions of prudence and sound policy aside. Now as then, we’ve got an economy that needs temporary life-support from the feds; not where we want to be, but where we are.

    I believe that the prime rate is at .25 and we are still free falling with no bottom in sight. Mr. Krugman points out that the circumstances that front us now are unique and require bold and decisive thought processes to right the economy.

    In addition, I did not find the selected comment insertion that you attribute to Krugman; you don’t leave a reference as to where one can find it. Please be kind enough to attach the URL in the future, it helps to read the full text for the referenced text that you publish.

    Having said all of that, I am commenting on the following… Paul Krugman, last year’s winner of the Nobel Prize for economics and a regular columnist for the New York Times, recently wrote that you should “write off anyone who asserts that it’s always better to cut taxes than to increase government spending because taxpayers, not bureaucrats, are the best judges of how to spend their money.”

    Cutting taxes is always the best way to get money to the people, but there is no assurance that they will do what you want them to do – go out and immediately spend that money. First, most will consider that it is better to pay the mortgage, car note, or any other pressing debt before spending the money at Sears. Secondly, when government spends that money in a manner that will create jobs, and/or in support State infrastructure projects, we see a direct increase in cash flow that promotes economic growth from the bottom up.

    The Bush tax cuts – 1.3 trillion – were so misdirected that the middle and lower classes never saw any worth from the tax cut. I was usually expecting three thousand dollars each year for a refund. In the first year of the Bush ‘return’ of the people’s share of 1.3 trillion, I received twenty-seven thousand dollars for the year. In other words, those that were in the high-end of the taxable spectrum received the largest potion of the special tax cut. Middle and Lower classes, the people that actually fuel the economy got little.

    Thank you for allowing comments…

  • Flap

    January 28, 2009 at 10:14 am

    The present Obama and Democratic Economic stimulus bill is a pork-laden spending bill and is not an economic stimulus bill, right?

    The Bush tax cuts are still in effect. Do you wish to end them? And if so, why?

  • Rod Davis

    January 28, 2009 at 2:05 pm

    The Stimulus package is just that – a stimulus. Consider what will occur when you commission the re-sodding of the Mall… the companies involved with that industry hire the extra workers to meet this new demand. Money is spent all along the way to complete that job. This same scenario can be applied to the other areas where funds will be allocated.

    At last count nearly every State is experiencing a shortfall with their budgets. There are a number of projects that can be up and running with an influx of funds to those States as well. The infrastructure of our States are in dire straits and need the money that will come from this stimulus package… tax cuts to the people will not be seen by these States until the taxes are collected at a later date.

    The Bush tax cuts, as currently structured, favor those making over 250,000.00. I am not proposing, nor do I endorse the termination of those tax cuts before they expire naturally. President Obama’s new tax plan is more favorable to middle and lower class citizens and is a plan that I favor more.

    All to often the partisan demon rises within and influences the judgment of those in a position to set policy. We see what that can do to a country – we are economically dead-in-the-water as a result of the policies put forth by the Republican Party. It is obvious that the American public grew tired of the policies and voted for change.

    Further aggravations to the recovery of this nation by those finding it necessary to find fault with the Obama Recovery Package was not demonstrated when Henry Paulson did exactly what he said he wanted to do – he distributed 350 billion dollars and we have yet to determine where that money went. We were duped again as then President Bush stood next to Paulson and congratulated him just as he congratulated Brown during the recovery after Katrina.

    Just doling the money out is not enough; we must ensure that it is done responsibility. I am confident that the Obama administration will not allow those mistakes to occur again. I am also confident that mid-course corrections will be implemented to ensure the success of recovery.

  • Flap

    January 28, 2009 at 2:08 pm

    Stimulus bill even the CBO admits will not be a quick fix.

    How about cutting the payroll tax and put immediate $$$ in people’s hands?

    Bush tax cuts expire in 2010 and in this economy you want to raise anyone’s taxes?

  • Rod Davis

    January 28, 2009 at 2:13 pm

    As I suspected, your use of Krugman’s remarks were taken out of context. You imply/suggest by the current structure of your sentence that Krugman is making the assertion that we should ignore anyone that favors “write off anyone who asserts that it’s always better to cut taxes than to increase government spending because taxpayers, not bureaucrats, are the best judges of how to spend their money.”

    That is not the case… the statement amplifies the paragraph that proceeds it.