I don’t expect a good outcome to the European fiscal crisis, largely because nobody seems to understand that the real problem is excessive government spending. The economic illiterates in the press sometimes say the fight in Europe is between austerity and…
Daily Analysis
What’s More Compassionate for the Poor, Dependency or Self-Reliance?
I’ve written a couple of times about the Food Stamp program, citing ridiculous examples of waste, fraud, and abuse. These include: Using food stamps to buy luxury coffee at Starbucks. Buying steaks and lobster with food stamps. The Obama Administration rewarding…
Illinois Leftist Does a Facepalm, Confirming that Higher Taxes Enable Higher Spending While Trying to Make the Opposite Point
Two days ago, I explained that tax increases are bad policy. More specifically, I warned that giving more money to government exacerbates fiscal problems because politicians respond to the expectation of more revenue by spending more than otherwise would be the case….
Making Obama Seem Reasonable by Comparison, Merkel and Sarkozy Propose Higher Taxes to “Strengthen Growth Now”
The German Chancellor and French President have put together a plan to boost growth. Sounds like a good goal, but what specifically are they proposing? Some of the obvious ideas include: Lowering tax rates to boost incentives for productive behavior. Reducing the…
Illinois Downgrade Provides More Evidence that Higher Taxes Make Fiscal Problems Worse, not Better
I don’t blame the Democrats for wanting to seduce Republicans into a tax-increase trap. Indeed, I completely understand why some Democrats said their top political goal was getting the GOP to surrender the no-tax-hike position. I’m mystified, though, why some…
New Evidence from Japan Shows Why Romney’s Interest in a Value-Added Tax Is so Troubling
In a recent column for the Wall Street Journal, I explained why Mitt Romney’s interest in a value-added tax is deeply troubling. One of my key points was that the VAT is a money machine for big government. But don’t believe me. Look at Japan, where the politicians see…
President Obama the Budget Cutter?!?
After saddling the nation with trillion-dollar boondoggles like the faux stimulus and Obamacare, I’m not sure it’s possible for Obama to reinvent himself as a budget cutter before the election. But I welcome converts, even ones that are insincere, so I’m happy he’s at…
Supposedly Bankrupt Greek Government to Reward Pedophiles with Disability Payments
I don’t know whether to laugh or cry when I write about insanely stupid government policies. But I know I get more motivated to fight big government. How can anyone want to give more money and power to politicians, for instance, after reading these comparisons of dumb…
Austan Goolsbee’s Budget Math Is Wrong – More than 100 Percent of Long-Term Fiscal Challenge Is Government Spending
Austan Goolsbee, the former Chairman of President Obama’s Council of Economic Advisers, has a column in the Wall Street Journal that argues government spending isn’t too high. That’s obviously a silly assertion, as I explain here, here, and here, but I want to focus…
A Video on the Cradle-to-Grave Welfare State from the folks at Government Gone Wild
As I explained in this set of videos, we desperately need to reform entitlement programs. But not in the wrong way, with price fixing and means testing. Good reform means personal retirement accounts for Social Security. It means vouchers for Medicare. And it…