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Nobel Laureates Reject Kerry's Economic Plan in Support of Free Trade

From the Arizona Republic via Instapundit:

Americans will spend the next two weeks trying to sort through the differences between President George W. Bush and Democratic challenger Sen. John Kerry on many issues.

But on the economic front, especially when it comes to taxes and economic growth, the president's policies are more likely to bear fruit, according to Arizona's new Nobel Prize laureate.

"That's an easy one," said Edward Prescott, the Arizona State University professor who shared the 2004 Nobel Prize for economics.

"When you cut tax rates, employment always goes up," he said in a phone interview Monday with The Arizona Republic.

Prescott, speaking from Minnesota, where he advises the Federal Reserve Bank of Minneapolis, described Kerry's plan to roll back tax cuts for top wage-earners as counterproductive.

"The idea that you can increase taxes and stimulate the economy is pretty damn stupid," he said.

Bush's campaign on Monday released a letter signed by Prescott and five other Nobel laureates critical of Kerry's proposal to roll back tax reductions for families earning $200,000 or more.

The entire article is well worth reading and discusses tariffs, among other issues.

One question that wasn't reported is what the Nobel laureates think about spending more than one's income.

Posted by tim at October 20, 2004 5:32 AM

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