Germany’s Merkel takes a walk on the supply side

November 11, 2009

From the NYTimes:

“I want us to do everything we can to create the conditions for new, stronger growth,” Mrs. Merkel said Tuesday, laying out her agenda in a speech before the Bundestag in Berlin. “Without growth, there will be no investment. Without growth, no jobs. Without growth, no money for education. Without growth, no help for the weak.”

Indeed, a few prominent German politicians have started echoing the supply-side arguments propounded by former President Ronald Reagan and his economists in Washington in the 1980s and carried forward by the Republican Party ever since.

“Particularly because the coffers are empty we need fair taxes to jump-start the economic engine so that more money flows into state coffers,” the head of the Free Democratic Party, Guido Westerwelle, said in an interview with the German newspaper Bild.

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