Thursday, February 04, 2010

Krugman and the Clinton economy

Paul Krugman on Bill Clinton:
...[Clinton] presided over an economic miracle.

Let's be clear: very few economists think that Clinton's policies were primarily responsible for that miracle. For the most part, the Clinton-era surge probably reflected the maturing of information technology: businesses finally figured out how to make effective use of computers, and the resulting surge in productivity drove the economy forward.
I only bring this up because on occasion I find people who make the argument that, not only was the impact of Clinton's tax increase benign, it was actually positive. Given that taxes are set to increase with the expiration of the Bush tax cut, we might find such argumentation employed again.

No comments: