Re: Edward Prescott, Idiot

From: Igor (jjweatherby_at_houston.rr.com)
Date: 10/28/04 

Date: Thu, 28 Oct 2004 05:48:54 GMT

sinister wrote:

> "Igor" <jjweatherby@houston.rr.com> wrote in message
> news:bwRfd.3091$EI6.959@fe2.texas.rr.com...
>
>>Robert Vienneau wrote:
>>
>>
>>> "It's easy to get over $200,000 in income with two wage earners in a
>>> household."
>>> -- Edward Prescott
>>><http://www.azcentral.com/arizonarepublic/business/articles/1019Prescott1
>>>9.html>
>>>
>>Interesting the page can not be found. Did he really say this?
>
>
> Apparently you're not any better with using the web than with understanding
> economics.

Oh part of the link was not placed in the html code. Something with
Mozilla cut some of the code. Now look at what he says "We want those
highly educated, talented people
  to work.".

He means it is easy for highly educated talent people to make over
200000 in a two earner household. The truth is that it is easy given
what he said. He did not say it was easy for every two income family to
make 20000+.

The point is that Labor economist have estimated married women to have
the highest income elasticities. The second earner is much more
sensitive to wages when deciding to work. This is especially true when
the primary earner has a high income level. Presscot is simply talking
about the disincentive for these people to work. You raise their taxes
and they will work less.

There is nothing wrong or stupid about this statement. Rob cut the
qualification on the quotation to make Presscot sound as though he was
speaking of the general population. He was being deceptive and dishonest.

  The page is there, and according to the newspaper he did say it.
> Extended excerpt:
> ---------------------------------------------
> Bush's campaign on Monday released a letter signed by Prescott and five
> other Nobel laureates critical of Kerry's proposal to roll back tax
> reductions for families earning $200,000 or more.
>
> In The Republic interview, he said such a policy would discourage people
> from working.
>
> "It's easy to get over $200,000 in income with two wage earners in a
> household," Prescott said. "We want those highly educated, talented people
> to work."
>
>

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