Keith Devens .com

Nobelist Prescott lauds Bush policies

Nobelist Prescott lauds Bush policies. More from Prescott. Some choice quotes:

"When you cut tax rates, employment always goes up," he said in a phone interview Monday with The Arizona Republic.

Prescott, speaking from Minnesota, where he advises the Federal Reserve Bank of Minneapolis, described Kerry's plan to roll back tax cuts for top wage-earners as counterproductive.

"The idea that you can increase taxes and stimulate the economy is pretty damn stupid," he said.

Bush's campaign on Monday released a letter signed by Prescott and five other Nobel laureates critical of Kerry's proposal to roll back tax reductions for families earning $200,000 or more.

Prescott also gave Bush the nod on another controversial campaign issue, dismissing Kerry's claims that outsourcing of jobs is damaging the economy.

"All the rich countries are economically integrated," he said, citing a jump in productivity and wealth in Western Europe after Germany, France and neighboring nations formed the Common Market after World War II.

By contrast, Prescott cited high tariffs imposed by the United States as a "disaster" that exacerbated the Great Depression.

"All economists are for free trade," he said.

Prescott also backed the idea, espoused by Bush, to reform Social Security by allowing some workers to place a portion of their payroll taxes into private savings accounts.

Such an arrangement would give people greater incentive to work, thus leading eventually to higher tax revenue, Prescott said.

(emphasis mine)

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