Fuzzy Math: The Essential Guide to the Bush Tax Plan

by Paul Krugman

Wielding his widely recognized powers of explanation, Paul Krugman lays bare the hidden facts behind the $2 trillion tax cut. With huge budget surpluses just ahead, the question of whether to cut taxes has shifted to when? and by how much? With Fuzzy Math , Paul Krugman dissects the Bush tax proposal and shows us who wins, who loses, and how quickly the tax cuts will consume the surplus. Always the equal-opportunity critic when it comes to faulty economics, Krugman also tucks into the Democratic alternatives to the Bush plan.

This little book packs a big wallop. Together with major media appearances, it puts Krugman's wisdom and steely-eyed analysis firmly at the center of the debate about how to spend upwards of $2 trillion. It may very well change the course of history.

Genres: Economics, Politics, Nonfiction

112 pages, Hardcover

First published January 1, 2001

About the author

Paul Robin Krugman is an American economist, liberal columnist and author. He is Professor of Economics and International Affairs at the Woodrow Wilson School of Public and International Affairs, Princeton University, Centenary Professor at the London School of Economics, and an op-ed columnist for The New York Times. In 2008, Krugman won the Nobel Memorial Prize in Economics for his contributions to New Trade Theory and New Economic Geography.

Reviews

[Lordoftaipo · Rating 4 out of 5]

Bush tax cuts passed anyways. The clarity yet futility of Krugman’s attempt to expose the dangerous details of the cuts has cast a shadow on how much I think an economist (without affiliation) can alter a policy. A voice as popular as he is still yielded little to none results (or was he not that famous back then?).

A few key takeaways:
1. Abuse of statistics by categorising (diluting the benefits that the riches get by mixing them with upper-income workers) or omitting (payroll taxes that matter most to the middle-income families are left out),
2. Incongruence in politician’s promise (purpose as stimulating economy vs. returning excessive revenue),
3. Devil in the detail (the riches benefit the most from removal of estate tax and
4. An old tax is good tax
5. Monetary policy (to increase interest rate) is more suitable for short-term recovery and can be exercised more efficiently than tax cuts (Fed reviews interest rates 8 times a year)
6. Supply-side economics is a myth

[marcos sahade · Rating 5 out of 5]

Soy fun

[Gil Bradshaw · Rating 3 out of 5]

This is sort of a stale topic since the book analyzes the Bush Tax Plan as proposed in the 2000 Presidential Election. However, most of the ideas contained in the book are not stale at all, and a very succinct summary of tax policy as well as a recent history of tax policy in the U.S.

While I believe Krugman to be factually accurate, he is obviously liberal (I don't think that's a bad thing, but one must keep this in mind as they read this book). Krugman makes a lot of sense in many parts of this book, while in others his logic falls apart.

For example, in the same breathe as lambasting Bush's tax cuts which he deems reckless (with an impressive economic review), Krugman discusses how we should maintain the funding of social security as a priority because "It's the moral thing to do."

I feel that both sides need to make huge concessions as we promote balance. Krugman later elaborates how challenging the sustained funding of medicare will be as the Boomers retire.

It was fascinating to read this book today--12 years after the publication date. I have the hindsight of the great recession and other major historical events that shaped the post-publication years of this book. I felt like I was reading the pre-quel novel. It was fun.

[Jeff · Rating 5 out of 5]

Even though the Bush years are coming to an end, this book is a good read. It helped me understand how Social Security works, and why Bush's plan to privatize it made no sense because Social Security isn't a savings plan. Basically Bush was either completely ignorant of this fact, was just lying about how to privatize, or some combination of the two.

The book is also a quick read.

[Brien · Rating 5 out of 5]

Krugman is worth reading. That is why I read this short book about GWBush-era tax cuts during the post-Trump-tax-cut era. The politics of the tax cuts have been remarkably similar. Benefit the wealthy. Boast about the non-existent prosperity the tax cuts have delivered. Short-change the military's expectations, if not the military. What is most useful about this book is the discussion of the federal budget process, the basics of federal taxation and expenditure. That section seems timeless, and would be a good introductory read for a college undergrad or precocious high schooler wanting to know how the process works.