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Keynes, Collected Writings, vol. At the same time, the reduction to employers, operating as a mitigation of the costs of production, will come in particularly helpfully in bad times.Watch CBS Videos OnlineKudos to this list of senators who voted to take the "Buy American" provision out of the stimulus bill:Alexander (R-TN)Barrasso (R-WY)Bennett (R-UT)Bond (R-MO)Bunning (R-KY)Chambliss (R-GA)Coburn (R-OK)Cochran (R-MS)Corker (R-TN)Cornyn (R-TX)Crapo (R-ID)DeMint (R-SC)Ensign (R-NV)Enzi (R-WY)Hatch (R-UT)Inhofe (R-OK)Isakson (R-GA)Johanns (R-NE)Kyl (R-AZ)Lieberman (ID-CT)Lugar (R-IN)Martinez (R-FL)McCain (R-AZ)McConnell (R-KY)Murkowski (R-AK)Risch (R-ID)Roberts (R-KS)Sessions (R-AL)Shelby (R-AL)Thune (R-SD)Wicker (R-MS) Click here to read my article in tomorrow's NY Times. 208.. Here are Keynes’s words:I am converted to your proposal…for varying rates of contributions in good and bad times.As I previously noted, the older (and presumably wiser) John Maynard Keynes was skeptical of using infrastructure projects as a countercyclical tool. (July 1, 1942). NYU economist Mario Rizzo now brings to my attention that the mature Mr Keynes also favored the payroll tax as a countercyclical policy instrument:In correspondence with the economist James Meade in 1942 Keynes says he is “converted” to Meade’s idea of altering the social security payroll tax over the business cycle.From Harvard's Jeff Miron.…[Y]ou are able to show fluctuations in income of an order of magnitude which is significant in the context… So far as employees are concerned, reductions in contributions are more likely to lead to increased expenditure as compared with saving than a reductionin income tax would, and are free from the objection to a reduction in income tax that the wealthier classes would benefit disproportionately.
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