Author Archives : Dan Mitchell
Inequality, Redistribution, and Class Warfare
I’ve spent a lot of time debunking class-warfare tax policy, and I’ve certainly explained ’til I’m blue in the face that big government facilitates a pernicious form of corruption that enriches powerful and well-connected insiders. But I haven’t spent much time addressing the topic of income inequality, which is connected to those two other issues. […]
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The IMF, Higher Taxes, and Mitchell’s Law
Here are three common-sense principles. Higher taxes are misguided. They undermine prosperity and finance bigger government. Bailouts also are misguided. They facilitate corruption and encourage moral hazard. And international bureaucracies are misguided. They promote statism and squander money. So what’s the “perfect storm” of bad policy? How about when international bureaucracies offers a bailout in […]
read more...Minimum Wage, Maximum Foolishness
Should the federal government make life more difficult for low-skilled workers? I hope everyone will emphatically say “NO!” Heck, most people understandably will think you’re crazy for even asking such a preposterous question. But some of those people will also think that it’s a good idea for politicians in Washington to make low-skilled workers less […]
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Challenge for Keynesian Anti-Sequester Hysterics: Why Did America’s Economy Boom When Reagan and Clinton Reduced the Burden of Spending?
Triggered by an appearance on Canadian TV, I asked yesterday why we should believe anti-sequester Keynesians. They want us to think that a very modest reduction in the growth of government spending will hurt the economy, yet Canada enjoyed rapid growth in the mid-1990s during a period of substantial budget restraint. I make a similar […]
read more...Challenge for Keynesian Anti-Sequester Hysterics: Why Did Canada’s Economy Boom When the Burden of Spending Was Sharply Reduced?
In this appearance on Canadian TV, I debunk anti-sequester hysteria, pointing out that “automatic budget cuts” merely restrain government so that it grows $2.4 trillion over the next 10 years rather than $2.5 trillion. I also point out that we shouldn’t worry about government employees getting a slight haircut since federal bureaucrats are overcompensated. Moreover, […]
read more...Obama Suffers a Painful Loss in the First Big Fiscal Battle of His Second Term
The statist agenda of ever-growing government requires more money going to Washington, which is why I think that proponents of limited government should do everything they can to block tax increases. This is the “starve the beast” theory, and I’ve previously explained why I think it is a necessary part of any long-run strategy to […]
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Great Moments in State Government
Back in 2010, I shared parts of a Dave Barry column that mocked the government for bizarre examples of stupid law enforcement. Barry was specifically making fun of OSHA bureaucrats for fining a company for the horrible transgression of saving a worker when a trench collapsed. But there are many other examples of law enforcement […]
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Will Growing Dependency and Erosion of Social Capital Turn America into Europe?
One of my favorite political cartoons is this Michael Ramirez gem showing President Obama following the European lemmings over the cliff of statism. But this isn’t a laughing matter. As shown in this remarkable graph on global living standards, Americans enjoy significantly more consumption than their European counterparts. And here’s another set of charts showing […]
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Let’s Shed a Tear for those Under-Appreciated Bureaucrats Who Get Lavish Pensions and Live in $700K Homes
When I first read this story in the Washington Post about supposedly under-appreciated federal bureaucrats, I was tempted to focus on the sentence referring to “the sledgehammer of budget cuts scheduled to hit today.” Is the Washington Post so biased and/or clueless that reporters really think that a 1.2 percent reduction in overall spending for […]
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