Quote:
Originally Posted by SL__72
This thread is pretty dead.
Thoughts on this sentence from a prominent economist who I'll leave unnamed? I'm leaving them unnamed but you can obv. google if you're curious.
CBO by law can't take into account (certain) incentives, in order to not cook the books to help/hurt your political allies/enemies. For instance, if the tax rate is increased, the CBO *must* keep the tax base unchanged and assume that people act the same way.
I'd want to think a bit more about how the quote applies to Keynesian Economics...
