Ezra Klein interviews Glenn Hubbard:
Economist Glenn Hubbard: ‘We need a radical change’: Let’s put politics aside…. Consumers have too much leverage; and on the business side, it’s exactly the opposite: Non-financial corporate America has tons of cash. So with that, the right thing to do would be to quickly de-lever consumers and change the animal spirits of businesspeople. On the consumer side, that could mean a big housing push, and on the business side, a big change to corporate tax rates or something else that increases the return on investment.
Then there’s a complete lack of clarity in three important areas for government policy: The path of future tax rates. The path of government spending, which is obviously related to tax rates. And the third is regulation, financial regulation in particular. And the lack of clarity in those areas has frozen business…
And in the next paragraph says: I did this! Me, personally! I lobbied assiduously and industriously for the unfunded Bush tax cuts and for the unfunded Medicare Part D expansion that created our enormous long-run budget problem. But please don't bring this up now.
Right. He doesn't.
May I say that I am sick of budget arsonists wearing fire chief hats?
A little contrition should be the price of being taken seriously. Ezra: you need to exact that contrition from the George W. Bush apparatchiks before you give them your megaphone.