Comments on: 50 Little Hoovers or 50 Little Ricardos

By: Barry

Barry — Mon, 28 Mar 2011 19:11:14 +0000

I would point out that (a) Yglesias is not worth a d*mn on economics, and
(b) the idea is that the Federal government should be pumping money into the states.

By: DJ Any Reason

DJ Any Reason — Fri, 25 Mar 2011 13:04:58 +0000

#whitepeopleproblems

By: Wonks Anonymous

Wonks Anonymous — Thu, 24 Mar 2011 22:36:39 +0000

Hoover did more deficit spending than any president before him and was arguably more Keynesian than FDR’s first term. We should stop misrepresenting his administration. The primary way in which he was non-Keynesian was his record increase in taxation, not from cutting spending.

By: DJ Any Reason

DJ Any Reason — Thu, 24 Mar 2011 17:14:23 +0000

Empirical beats theoretical, but why wouldn’t this back-of-the-envelope hold?

T = G

Y = (c0 – c1T + I + G)/(1-c1)

T’ = G’ = T + D = G + D

Y’ = (c0 – c1T’ + I + G’)/(1-c1)
= (c0 – c1(T+D) + I + (G + D))/(1-c1)
= (c0 – c1T – c1D + I + G + D)/(1-c1)
= (c0 – c1T + I +G)/(1-c1) + (-c1D + D)/(1-c1)
= Y + D

=> dY = dG = dT