Brad DeLong and Kevin Murphy, in English

Arnold Kling

By Arnold Kling, Jan 26 2009

$100 of Government Spending	Murphy’s Estimates	DeLong’s Estimates
Keynes Effect	$50	$150
Housework Effect	-$25	-$30
Galbraith Effect	-$25	$0
Feldstein Effect	-$80	-$33
The Bottom Line	-$80	$87

I explain here. [UPDATE: I made two errors in the initial numbers. I believe it is correct as of Jan. 27, 1:40 PM EST]

EconLog Book Club: For a New Liberty, Chapter 2

SummaryIn this chapter ("Property and Exchange"), Rothbard introduces the "non-aggression axiom," also often known as the "non-initiation of force axiom." The intuition is simple enough: No one has the right to start using physical violence or the threat thereof against another person or his property. This ...

Jan 26 2009

Fiscal Policy

Timely? Temporary?

Arnold Kling

Douglas Elmendorf, the head of the Congressional Budget Office, writes, CBO estimates that enacting the bill would increase federal budget deficits by $169 billion over the remaining months of fiscal year 2009, by $356 billion in 2010, by $174 billion in 2011, and by $816 billion over the 2009-2019 period. I assume t...

Jan 26 2009

Fiscal Policy

Brad DeLong and Kevin Murphy, in English

Arnold Kling

$100 of Government SpendingMurphy's EstimatesDeLong's EstimatesKeynes Effect$50$150Housework Effect-$25-$30Galbraith Effect-$25$0Feldstein Effect-$80-$33The Bottom Line-$80$87 I explain here. [UPDATE: I made two errors in the initial numbers. I believe it is correct as of Jan. 27, 1:40 PM EST]

Brad DeLong and Kevin Murphy, in English

Arnold Kling

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