Questioning an economic advisor
Regarding the article "Rely on the Fed and Don't Panic, Former Advisers Say," Dec. 12: I am confused by some of Beryl Sprinkel's remarks.
Dr. Sprinkel, chairman of the Council of Economic Advisers during the Reagan presidency, criticizes investment tax credits because they favor capital-intensive industry over service industries. He also advocates higher depreciation allowances by shortening an asset's life.
Isn't this an inconsistency in Sprinkel's prescription? After all, aren't capital-intensive industries the primary beneficiaries of accelerated depreciation allowances? Thomas S. Hornbaker, Seattle
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