Rebutted by Paul Krugman: Noah Smith says something I’d been meaning to say about John Taylor’s recent work.... [I]t’s far from clear that the ARRA actually led to much of a rise in government spending, while the tax cuts that made up much of the stimulus were probably largely saved. But Taylor then presents this as an argument against Keynesian economics — whereas it seems to be an argument that Obama wasn’t Keynesian enough. But wait, there’s more. I remember what Taylor was saying early on: he was dead set against any rise in spending, and called for permanent tax cuts (in response to a temporary crisis?) instead.
So the position Taylor is taking now seems to be:
- Keynesian economics doesn’t work, as evidenced by the fact that Obama didn’t try it.
- Obama failed utterly by not following the policies I (Taylor) specifically demanded that he not follow.
Rebuttals to talking-points misinformation that I want to have at the forefront of my brain--for when I am surprised, as I will be, by an unexpected question from an unexpected direction while talking to reporters, phone callers, passers-by, radio interviewers, cable TV interviewers, etc....