Posted on 10/16/2006 6:30:33 AM PDT by Tolerance Sucks Rocks
NEW YORK -- When the new field of political economy emerged in the 18th century, it concerned itself largely with two questions: how societies get rich, and how they can justly divide that wealth. The thinking of this year's winner of the Nobel Memorial Prize in economics, Columbia University professor Edmund Phelps, hews close to that tradition, seeking the roots of prosperity and ways to maintain economic justice -- not only in today's world, but across generations.
In choosing Prof. Phelps, the Nobel committee focused on his work in the area of inflation and unemployment. But that isn't all Prof. Phelps has done over the years. He has delved into various questions relevant to policy makers, such as how economies become more productive, what kind of tax system creates the best incentives, and how much a society should save and invest.
In an interview at Columbia, Prof. Phelps discussed, among other things, why he thinks Americans should be paying higher taxes and doing more to increase the wages of the poor.
The Wall Street Journal: Many economists believe that the U.S. is acting irresponsibly by spending more than it produces and building up large debts. Your "golden rule" of capital accumulation states that each generation must save a certain amount so that future generations can enjoy the same standard of living. Should we be concerned?
Prof. Phelps: When you apply the golden rule, you have to look at the world economy. Certainly the world as a whole has saved enough. China, for example, should get good marks for doing a lot of saving. I would, however, have to give bad marks to the U.S. government, which has run persistent budget deficits at a time when we have to start climbing up the mountain of pension obligations that will come due...
(Excerpt) Read more at online.wsj.com ...
PING!
A professor's view on our "unsustainable" tax rates. He appears to avoid the problem of unnecessary spending by government.
"Columbia University" is an alert to approaching nausea.
Ummm, Dude? It is not just to take money from people who earn it and give it to people who don't.
Amazing how these socialists hate everything about America ... except our money
I say we go on strike and stop giving money
If they are paid higher wages but then their taxes are increased, what is the point besides bigger government.
When is the last time a society has taxed itself into prosperity?
Much of government spending goes to support unproductive people.
Cutting SPENDING seems like a better idea :)
Taxes: an excuse-driven process to take money from the private sector. That money is returned to favored persons after the government deducts its 50% handling fee.
LM
I pay 45% of every dollar I make to a taxing enity be it
federal, state, county, city, local, school board, social security, excise etc. I am considered upper middle class. That is enough taxes for me thank you. Cut the damn spending!
They save on things like research, innovation, fighting piracy, and oh... the whole "freedom" thing.
The very first sentence made me barf! 'dividing the wealth' ??
I agree. The 40-50% who pay little or no federal income tax should have to pay SOMETHING! < /sarcasm >
According to the libs, it happens every time a Dim is in power...
He is falling into the now discredited trap. He raises poor wages, increases taxes, and then results in inflation.
crackpot from Noble.
It's always the "professors" with their noses buried in a book their entire lives who believe as this guy does. They really don't offer anything to society, imo, they just have the luxury of getting paid to sit around and indulge their curiosities, while everyone else has to work!
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