One Of The Most Misleading Articles Ever
The perhaps most surprising claim is Yglesias' assertion that Austrians don't believe that tax cuts will help during a recession. I don't think any Austrian have made that assertion. This is for example what Murray Rothbard wrote in America's great depression (page 22):
There is one thing the government can do positively, however:
it can drastically lower its relative role in the economy, slashing its
own expenditures and taxes, particularly taxes that interfere with saving
and investment. Reducing its tax-spending level will automatically
shift the societal saving-investment–consumption ratio in favor
of saving and investment, thus greatly lowering the time required for
returning to a prosperous economy.18 Reducing taxes that bear most
heavily on savings and investment will further lower social time preferences.
19 Furthermore, depression is a time of economic strain.
Any reduction of taxes, or of any regulations interfering with the
free market, will stimulate healthy economic activity; any increase
in taxes or other intervention will depress the economy further.