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American Nobel Prize Laureate Professors Criticize the Economic Support Measure

American Nobel Prize Laureate Professors Criticize the Economic Support Measure

Posted February. 07, 2003 22:47,   

한국어

The economic support measure that George W. Bush, the President of the United States, presented ambitiously, is receiving harsh criticisms from the economic scholars nationwide in the United States. Since these critics include the 10 Nobel Prize Laureates who have been leading the United States’ economic circle including Paul Samuelson, Joseph Stiglitz and more, it is expected that there will be an enormous refutation if this economic support measure passes the Congress.

The Economic Policy Institute (EPI) clarified on its web page on the 7th that the number of the participated economic scholars who are opposing the Bush’s tax reduction bill is reaching over 400 people.

Especially, in the statement, there are 10 Nobel Prize Laureates in Economics including the three primary figures in the Economic Department at Massachusetts Institute of Technology, Professors Samuelson, Robert Solow, and Franco Modigliani along with Professors George Akerlof, Daniel McFadden (two from University of California at Berkeley), Professors Kenneth Arrow, William Sharpe (two from Stanford University), Professor Lawrence Klein (University of Pennsylvania), and Professor Stiglitz (Columbia University).

The main point of the Bush’s economic support measure is reducing the tax amount by 674 billion dollars in next 10 years hereafter.

“There is a wide range of similar responses agreeing to that the economic support measure presented by President Bush will not be able to achieve, not even temporarily, the creation of employment and the development,” the statement pointed out.

The statement especially pin pointed out the abolishment proposal of dividend income tax which has to give up the most tax revenues, and criticized, “It is not only hard to anticipate the short term economical stimulus effect but it is not appropriate since the tax reduction is focused on individuals rather than the businesses.” Therefore, they warned that if the tax reduction bill gets passed in the Congress, it will put pressure on the budget of income and expenditures in a long term, will chronically deepen the financial deficit thus weakens the various public works of the government and will even deepened the income inequality.

The scholars requested, “If the economic support measure wishes to be successful, it needs to mobilize instant and temporary tax system management and investment promotion proposal for the financial expenditure and demand stimulation.”

This statement is scheduled to be announced in the morning of 10th (the U.S. time) at the National Press Club of Washington by four representatives, including Professors Stiglitz, Modigliani, and Klein.



Rae-Jeong Park ecopark@donga.com