Sunday, November 20, 2011

Economics (UPDATE)...

I did go to a state university, and studied economics.  Then I went to the real world and applied it.

I did not go to Yale, I did not get a PhD from MIT, I have never taught economics, never written a book on it, and I have not (yet) won a Nobel Prize.  Paul Krugman did.

His résumé is outstanding.  But it lacks one thing.  The real world.


"There's obviously a relationship between tax rates and revenue. That relationship is not, however, one-for-one. In general, doubling the excise tax rate on a good or service won't double the amount of revenue collected, because the tax increase will reduce the quantity of the good or service transacted. And the relationship between the level of the tax and the amount of revenue collected may not even be positive: in some cases raising the tax rate actually reduces the amount of revenue the government collects."--from "Economics," by former Enron adviser Paul Krugman and Robin Wells (Mrs. Krugman), second edition, 2009

"In Democrat-world, up is up and down is down. Raising taxes increases revenue. . . . But in Republican-world, down is up. The way to increase revenue is to cut taxes on corporations and the wealthy."--Paul Krugman, New York Times, Nov. 18, 2011

...derned real world! 

I'm going to take a guess here, and say, when writing his book he did some research - and some facts were slipped in.

(James Taranto - WSJ)


LL said...

Maybe research assistants did all of the heavy lifting when they told him what to write... I'm recalling my university daze and some of the tenured professors did not have both oars in the water, pulling in the same direction. I'm not anti-education, however, there is something to be said for having had a job outside of academia.

I could slip in a few anecdotes about 'educated idiots' but I will spare both you and your readers.

Scott said...

Nasty old facts and REAL history...always getting in the way of the Prog Agenda like that!