Obama compromises with Republicans on tax cuts but will it boost economy?
From the PBS Newshour in the US – although quite a long the interview with Paul Krugman (New York Times columnist and Princeton Professor) and Stephen Moore (The Wall Street Journal) it is worth a look. It concerns President Obama defending his decision to compromise with Republicans on tax-cut extensions for all, in order to extend unemployment benefits. Krugman states that “it is just going to be money handed over to people who are not going to spend it. It’s not actually going to boost the economy”. Moore on the other hand agreed with the tax cuts. “I think we needed to extend them for everyone, not just people who make less than $250,000 or a million. They’re wealth-producers who put Americans to work.”