Bailout

Ben Stein?s fiscal policy

By Felix Salmon

Here’s Ben Stein in August 2008, when we were at the depths of the longest recession in postwar history:

The unhappy fact is that it?s necessary to raise my taxes and the taxes of all upper-income Americans…

If we don?t raise taxes, if we keep doing what we?re doing, the immense deficits and debt will not go away ? and will probably grow.

The question is simply this: Do we want to step up to the plate like responsible people ? I hate to say this, but the last responsible people who actually did this were named Bill and Bob (Clinton and Rubin) ? and shoulder our responsibilities? Or do we just kick the can down the road a bit and leave the mess for our children and their children?

And if we do raise taxes, should people who are barely getting by pay them or should people who are getting by very nicely pay them?

I don?t like taxing rich people or anyone I like. But our government ? run by the people we elected ? needs the revenue. Do we pay it or do we make our children pay it? Dwight D. Eisenhower ? and Bill Clinton ? knew the answer: You behave responsibly and balance the budget except in rare circumstances.

And here’s Ben Stein in September 2010, 15 months after the recession ended:

In the midst of a severe recession, I am to have my taxes raised dramatically.

I am not quite sure what my sin is…

What I don’t get is this: There is no known economic theory under which raising my taxes in the midst of a severe recession will help the economy recover. It isn’t part of any well known monetarist or Keynesian theory. So if it does no good to raise our taxes, I assume we are being punished.

But for what? I don’t own slaves.

Good point, Ben. Let’s just raise taxes on slaveowners. That’ll do the trick.

Full post as published by Macroprudential on September 20, 2010 (boomark / email).