With all due respect, Dr. Jorgenson is a pointie headed professor who has been bought and paid for by FAIR and has never spent one hour in a real business. It is just the same old boilerplate crap that doesn't even specifically apply. He simply assumes prices on everything fall, interest rates drop, wages go up, yada yada yada. Not impressed. I can point to sources that says Clinton is an honest man, doesn't make it so.
No he doesn't assume those things.
Dale W. Jorgenson, Ph.D., Harvard University, Testimony before the Ways and Means Committee, March 27, 1996.
Laurence J. Kotlikoff, April 15, 1993, Cato Institute Policy Analysis.
Gary Robbins, Aldona Robbins, Policy Report No. 127, September 1994, Taxation Analysis, The Institute for Policy Innovation.
Dr. Martin Feldstein, Ph.D., Working Paper 5397, December 1995.
Robert E. Hall and Alvin Rabushka, The Hoover Institution Press.
All are "pointy headed" idiots eh? Just making crap up to ruin your business eh?
With all due respect, Dr. Jorgenson is a pointie headed professor who has been bought and paid for by FAIR and has never spent one hour in a real business. It is just the same old boilerplate crap that doesn't even specifically apply. He simply assumes prices on everything fall, interest rates drop, wages go up, yada yada yada. Not impressed. I can point to sources that says Clinton is an honest man, doesn't make it so.What Principled isn't saying (or, more likely, doesn't know) is that Dr. Jorgenson's mode is a full-employment model. Anyone who wants a job has a job. This can only happen if nominal wages can adjust freely to whatever level is required. Basically, Dr. Jorgenson's model allows for nominal wages to fall. Which is constant with what every other economist believes, if prices drop significantly, nominal wages must also drop.
"With all due respect, Dr. Jorgenson is a pointie headed professor who has been bought and paid for by FAIR and has never spent one hour in a real business. It is just the same old boilerplate crap that doesn't even specifically apply. He simply assumes prices on everything fall, interest rates drop, wages go up, yada yada yada. Not impressed. I can point to sources that says Clinton is an honest man, doesn't make it so."
I have asked this question of the guardians of the status quo many, many times and have yet to get a straight answer, so I will try once more.
You and the other defenders of the current system say that some of the leading academic economists in the country don't pass muster with you, that they don't measure up to your exacting standards. So who would you prefer to rely upon in making economic forecasts - professional athletes, politicians, accountants, lawyers? Who do you believe has more credibility than economists?