Figures Don't Lie

Many years ago, my Uncle Wes was listening to a political commentary on the evening news. About halfway through the piece he got up, turned the TV off and told me: "Figures don't lie but liars sure can figure" This Blog is dedicated to setting things right about a few of the numbers tossed around in today's political discussions.

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Location: Bloomington, Minnesota, United States

How old am I? Well, for much of my career, I had a secretary. And, my best secretary could take shorthand.

Monday, February 02, 2009

More on Christy Romer's Multipliers

I referenced Christy Romer's "research" multipliers versus her "now I'm in government" multipliers in this post - via Greg Mankiew's blog. Now Mankiew has a post up with this Q and A from a mysteriously hard to find set of talking points:

Question: But doesn’t Dr. Romer’s research show that the economic impact of tax cuts is higher than even the Administration is assuming?

Answer: Dr. Romer’s research suggests that all types of fiscal stimulus, both spending and tax cuts, might well have a larger impact than is typically assumed and is assumed in the CEA's analysis. ...

Mankiew calls Romer on this slight of hand.

It is also consistent with the hypothesis that tax changes are more potent than spending changes.

But read the whole thing.


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