You're kidding right?

Reader comment on: Krugman Sees the Light on Taxes

Submitted by LeadsledGH (United States), Jun 28, 2010 13:00

Krugman is saying what is the archetypal keynesian position on what kind of policies are needed during recessionary/recovering periods, keep taxes low and spending high then once the economy recovers you raise taxes, maintaining a progressive tax system, to repay the debt. Think the US from 1933-1960, first during the depression and the war the government spent far more than it took out of the economy in revenues and then after the war spending was cut back and massive taxation was placed on the economy, leading to 1950s having the highest tax bracket be 90%. It is basic to a keynesian position that you don't raise taxes during a recession (this is overall taxation, I am sure Dr. Krugman would support a plan that kept revenues equal (ie not raising taxes across the whole economy) but raising them on the wealthy to a sensible level and lowering them for the working classes).

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