On 12/21/12 12:24 PM, Marshall Feldman wrote:
> Hello,
>
> I just noticed that one of my students wrote an enthusiastic post about
> Casey Mulligan's new book, /The Redistribution Recession/, on the forum
> of my labor economics class. As much as it pains me to say so, I'll
> probably have to read the book. As far as I can tell, the book's thesis
> is standard Chicago fare: stimulus spending created disincentives that
> made the recession worse.

Yeah, this crap is out there.

The other night I heard John Batchelor interviewing Lee Ohanian on his 
WABC talk show which can be described as Sean Hannity for those with an 
IQ over 60. Here are Batchelor's notes on the interview:

Tuesday 935P Eastern Time: Lee Ohanian, Ctr for Advance Ec Study, 
Arizona; Hoover, in re: Abt 40% of what the avg Am earned wd go to the 
govt; 60% for households – 8 to 10 percentage points higher than a 
decade ago; still less than Europe. Depress hiring, investment, and 
incentives to workers. What happens when tax rates rise? Europe ahs done 
htat experiment: no job creation of business creation for over ten 
years.  $25-35K pa: implicit tax rates up to 70%, risk losing Federal 
[[benefits?]]  A single parent w two children earning $29K/year is 
better off than that exact same person earning $70K per year because of 
Federal safety nets.  I was consultant to the St Louis Fed; sat next to 
a woman in the train: "I don’t think I’ll  take this promotion because 
lost earned income tax credits and other benefits"  Dodd-Frank: 
restricting flow f capital to productive users contributes to 
sluggishness. There are fewer jobs today than there were at the depth of 
the financial crisis. Less bank lending today as a fraction of economic 
income.  We've put in place financial regs – yet to be written – that 
bankers don't understand.  Dodd-Frank was to solve "too big to fail" – 
but ossified it into those considered systemically important vs those 
not. Overall output is 13% lower than it wd have been had we continues 
on the pre-2008 trend. We've lost three years of economic growth – 
haven’t been here since the 1930s.    How to raise revenues without 
depressing incentives.

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