I shared an astounding chart last month showing that tax increases account for 90 percent of the so-called “austerity” in Europe. The author of the chart, Veronique de Rugy of the Mercatus Center, calls this “private sector austerity” and she correctly argues that her…
Daily Analysis
We Should Worry about the Long-Run Burden of Government, not the Fiscal Cliff
I appeared on CNBC yesterday to talk about the “fiscal cliff” and the potential impact on economic performance. You won’t be surprised to learn that I’m mostly concerned with how the issue gets resolved. Yes, there is some temporary uncertainty that is probably making…
Higher Taxes Mean Bigger Government, not Lower Deficits
President Obama and other statists in Washington want a big class-warfare tax hike. They claim the additional revenue is necessary to reduce red ink. But their ideological crusade is based on some blatant distortions. They tell us that tax increases are necessary, but…
Now that the Election Is Over, the Washington Post Admits that the Obama Recovery Has Been Terrible
I agree that Obama inherited a crappy economy, and I think it is silly to assert that he bears any responsibility for the severity of the 2007-2009 recession. But it is very fair to hold him responsible for what’s happened since the recession ended. I’ve cited data…
In a Debate for U.S. News & World Report, I Argue Obama’s Plan Is Worse than the Fiscal Cliff
I took part today in a nine-person debate on the fiscal cliff for U.S. News & World Report. We were all asked, “Is Going Over the ‘Fiscal Cliff’ Necessarily the Worst Outcome?” I said “no” because there are worse options, and I specifically explained that Obama’s…
Another Leftist Admits the Real Goal Is Taxing the Middle Class
Obama has staked out a very dogmatic and inflexible position on class-warfare tax hikes and he obviously wants all of us to think only the “rich” will be impacted. I think it’s foolish to penalize investors, entrepreneurs, small business owners and other upper-income…
No Time to Go Wobbly On Spending Cuts
These are dark times for advocates of sane fiscal policy. The President and other Democrats have interpreted the recent election as a mandate to raise taxes, and if the past is any indication, the instinct from Republicans will be to cave. As if that isn’t bad…
California’s Economic Suicide and Other News from Yesterday’s Ballot Measures
I was surprised when the people of Oregon voted for a tax increase back in early 2010. Yes, I realize that the politicians and interest groups structured the measure so that the majority of voters would be unaffected. It was basically a class-warfare proposal, with a…
Will Natural Gas Cronyism Lead to a Post-Election Regulatory Deluge?
Veronique de Rugy documented today the degree to which the natural gas industry has captured the ear of government, receiving favorable treatment as a result: Public outrage at cronyism and corporate welfare is growing—and that’s all to the good. But don’t expect…
Price Controls Are Exacerbating the Damage of Hurricane Sandy
Price controls are a spectacularly foolish idea, and that’s true whether they’re imposed by thugs such as Hugo Chavez in Venezuela or bureaucrats at the Department of Health and Human Services. That’s why one of the 20th Century’s economic heroes is Ludwig Erhard, who…