The government, amid this economic downturn, should raise taxes on the rich and not worry about deficit spending, says Rep. Barney Frank, D-Mass.
Frank was responding to a question yesterday by a CNBC television anchor who wanted to know if Frank thought John McCain and Barack Obama should change their “tax and spending plans” in order to pay for a $300 billion stimulus proposal moving forward in Congress.
“I think at this point there needs to be a focus on an immediate increase in spending, and I think this is a time when deficit fear has to take a second seat,” Frank said.
“I do think this is a time for a kind of very important dose of Keynesianism, Frank continued, referring to 20th century British economist John Maynard Keynes’ argument for government investment to counteract recession or depression.
“Yes, I believe later on there should be tax increases,” Frank said. “Speaking personally, I think there are a lot of very rich people out there whom we can tax at a point down the road and recover some of this money.”