Saturday, August 27, 2011

Excessive Incentives

Greg Mankiw links to a video by Jeff Miron, an economics professor at Harvard on 3 myths of capitalism.  His third myth is that capitalism caused the Great Recession: no, no, no--it wasn't capitalists, it was the excessive incentives from government policy. 

Now it seems to me that one argument for the Bush tax cuts, particularly on those with higher incomes, was to provide incentives to entrepreneurs.  So the lesson I take away from Prof. Miron is that we ought to allow them to expire immediately

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