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Rethinking Fiscal Policy

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  • Thomas Michl

Abstract

What should the new U. S. economic policies be? Challenge often devotes its pieces to discussion of demand and public investment. In this piece, however, we offer another view. The author argues in favor of creating surpluses through a progressive income tax or even wealth tax-perhaps even prefunding social security. Would this policy lead to contraction of capital investment? He believes that looser monetary policy can compensate adequately for the diminished demand.

Suggested Citation

  • Thomas Michl, 2008. "Rethinking Fiscal Policy," Challenge, Taylor & Francis Journals, vol. 51(6), pages 91-104.
    • Handle: RePEc:mes:challe:v:51:y:2008:i:6:p:91-104
    DOI: 10.2753/0577-5132510606
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