Category Archives: conservatives and liberals

Is Investment Depressed by an “Anti-Business” Climate?

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The National Journal asks for reactions to a recent blog post by Greg Mankiw regarding the reasons why US investment has fallen sharply. 

I agree with Greg that the dominant empirical fact about investment is its procyclical volatility (the main reason investment has been depressed for the last two years is that the economy has been depressed), and also that the recent credit crunch made it worse.   But I don’t agree with a third item on his list: “the policy environment seems adverse to business.”   As in many areas, it is when we get to the politics that I disagree.  read more

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An Emerging Consensus Against the Paulson Plan: Washington Should Force Bank Capital Up, Not Just Socialize the Bad Loans

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In time of war, there is a tendency for both political parties to rally around the president, as we saw (all too well) in Iraq after September 11.In time of financial panic, there is often a similar inclination.The two presidential candidates, for example, are being careful in their statements.I don’t blame them.The issues are too complex to be taken on inside the context of a political campaign.Both candidates realize that the danger of a verbal misstep that the other side can try to blame for worsening the crisis is far greater than the likelihood that either one will come up with a brilliant solution that will gain widespread support or will solve the problem, let alone both. read more

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What Does It Take to Define Away the Statistics Showing Economic Performance Under Democratic Presidents Superior to That Under Republicans?

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Economic Policy Institute, September 2008.

A panel on Supply Side Economics in Washington, September 12, included statistics on the superior performance of the American economy under President Clinton compared to his Republican successor. (The graph to the right, from Ettlinger & Irons, shows the first term of each administration.  The growth gap during the second terms was even wider.)  Former Treasury Secretary Larry Summers gave some statistics that included Democratic versus Republican presidents throughout the postwar period.   As others have also pointed out, the Democratic record dominates to a surprising extent.   (The event was jointly sponsored by the Center for American Progress and the Economic Policy Institute.) read more

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