Saturday, January 5, 2013

My New book quote

The following quote is from my new book, Burnt Offerings Part two.  I would like comments on it; it helps me decide how to write as well as what to write about. 

"In Animal Spirits the government’s role is one of not being too strict or too permissive. Like the advice given by psychologists in the parenting advice books, we are warned not to be too controlling or too permissive. Government and parents can produce immature and rebellious adults by being too dominant, or they can be too permissive and produce impulsive and immoral citizens who are without discipline or a sense of good and evil.  The proper approach in a lenient culture is for the government to set limits that allow people the discipline to control themselves as they learn and become creative."  

Tuesday, January 1, 2013

Bush's Tax Cuts

It has been clear that our congress is frozen in time.  The issue now seems to be about curbing spending and increasing taxes on the rich.  The following quote is from Shiller and Akerlof's book Animal Spirits regarding Bush's Tax Cuts.  These are the very cuts that were dropped in part.  

“The Bush Administration used the downturn to argue for massive permanent tax cuts.  The first and largest of these was signed into law in June, 2001.  The Fed also came into the act.  The discount rate…was brought down to only 0.75% by November 2002.  There is every reason to believe that both of these measures were effective.”

Comments are welcome!