The recipe is simple. When the economy is struggling, you cut taxes; when it’s booming, you raise them. It’s basic Keynesian economics, right? Everyone knows the formula, even Larry Kudlow:
If John Maynard Keynes were here, after this pandemic contraction, and you asked him, “Mr. Keynes, should we be raising taxes?” I guarantee you, from the general theory, which I have read, he would say no. He would say no.
I’m glad to know that Kudlow has done the assigned reading — The General Theory of Employment, Interest and Money is good background for any director of the White House National Economic Council. But