David R. Henderson  

Me on Obama and Brown

Taking Krugman's Side... Department of Double Standards...

Just up on Forbes.com is an article by me on tomorrow's meeting between President Obama and Prime Minister Brown. It's titled, "Will Obama and Gordon Brown Cook Up a Tax Cartel?"

In it, I talk about what they, as good Keynesians who believe in inflexible wages, should talk about, namely reducing or abolishing the minimum wage and about what I fear they will talk about, namely colluding to make it hard for low-tax countries to survive as low-tax countries.

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CATEGORIES: Fiscal Policy , Labor Market

COMMENTS (2 to date)
Neal W. writes:

Putting sanctions on a country just because they have low taxes has got to be in the top ten most morally disgusting things a government could do. I've never heard this doozy before.

Tom B. writes:

Could be, but Brown and Obama are not good Keynsians. Calling them Keynsians makes them sound altruistic but misguided. What they are is good politicians. Politicians' interest is in appearing to reward those who give them power and status, which is why they'll never reduce the minimum wage (low wage earners don't read Bastiat), and just might collude to raise taxes (to have more money to give away). They are just reacting to their incentives.

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