Check out this Krugman column-- I mean, Goldman Sachs advocacy... 

The Obama administration and much of the liberal media like to conflate "Companies that makes lots of money" with "capitalists." This conflation serves the Left's interests because it allows them to pin their political opponents as shills for Big Business.

This makes it awkward when Goldman Sachs, in sundry ways, calls for more government and less freedom. I've written before about their lobbying for more regulation, but today we have a different sort of big-government advocacy: Goldman analysts demanding more Keynesian stimulus.

Robert Wenzel at the Economic Policy Journal has the story:

Goldman Sachs economist Alec Phillips, based in Washington D.C., has issued a report that says the miniscule spending cuts of $61 billion in 2011 just approved by Republican controlled House could reduce US economic growth by 1.5 to 2 percentage points in the second and third quarters of the year. What nonsense! A Keynesian style look at one side of the equation if there ever was such a case.

Last summer, Goldman analysts wrote:

we hope that Congress passes the extension of emergency unemployment insurance, continued aid to state and local governments, and at least a temporary extension of the bulk of the 2001/2003 tax cuts beyond the end of 2010...we favor additional deficit-financed stimulus...

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Timothy P. Carney

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