Why Austerity Works and Stimulus Doesn’t

[MachineGhost]

After five years of financial crisis, the European record is in: Northern Europe is sound, thanks to austerity, while southern Europe is hurting because of half- hearted austerity or, worse, fiscal stimulus. The predominant Keynesian thinking has been tested, and it has failed spectacularly.

http://www.bloomberg.com/news/2013-01-0 ... esn-t.html

[Kriegsspiel]

Good read, thanks.  My view has always been towards the 'don't tax, but also don't provide shit' end of the spectrum in any case.

[Pointedstick]

That's a good article.  I still believe we may have been better off to go over the fiscal cliff.

No thanks. The tax hikes would have been awful, especially the ones on capital gains.

[systemskeptic]

Seems like common sense to me, but good to see real world examples prove it out from time to time.

[Pointedstick]

I think capital gains should be taxed at the same rates as ordinary income.

Are you saying that capital gains should be taxed at current (high) income tax rates, or that the income tax rate should be lowered to the current capital gains tax rate? Or something else?