The Republican Favor Deficit Financing (Is Marco Rubio a Keynesian?)
November 3, 2010 Leave a comment
Some economics of the election. Republican favor extending the Bush tax cut. That will cause a large increase in the deficit (because the tax cut was approved to end now so the cost of reducing the taxes again is not included in the current government accounting–that was the original game).
The first item in Marco Rubio’s list of priorities is to extend the tax cut. I would call him a Keynesian, because the policy stimulates spending (somewhat and inefficiently) by increasing the deficit (that means more government borrowing).