Monday, June 23, 2008 - An Economist Who Matters


Robert Mundell, a Nobel Prize winner in Economics, on taxes, oil prices, and dollar exchange rates.

Mr. Mundell says "the big issue economically . . . is what's going to happen to taxes."  Democratic nominee Barack Obama regularly professes disdain for the Bush tax cuts, suggesting that those growth-spurring measures may be scrapped. "If that happens," Mr. Mundell predicts, "the U.S. will go into a big recession, a nosedive."

One of the original "supply-side" economists, he has long preached the link between tax rates and economic growth. "It's a lethal thing to suddenly raise taxes," he explains. "This would be devastating to the world economy…



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