Friday, February 06, 2009

Peachy Keynes

From the supposed founder of the porcine feast, comes a prescription for payroll tax cuts:

In correspondence with the economist James Meade in 1942 Keynes says he is “converted” to Meade’s idea of altering the social security payroll tax over the business cycle. Here are Keynes’s words:

I am converted to your proposal…for varying rates of contributions in good and bad times.

(June 16, 1942). Keynes, Collected Writings, vol. 27, p. 208.

Hat tip to Greg Mankiw's Blog.

Sounds like a plan to me.

John Maynard Keynes, in addition to being a major proponent of pump-priming economics (government fueling demand), gave the immortal line "In the long run we are all dead." (A Tract on Monetary Reform, 1923.)

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