We have some very encouraging polling data from CBS News. The American people prefer spending cuts over tax increases by a margin of more than 8-1. Americans strongly prefer cutting spending to raising taxes to reduce the federal deficit. While 77 percent prefer to…
Daily Analysis
Emperor Rompuy Complains that “Bond Vigilantes” Don’t Appreciate Euro Clothes
I’ve already poked fun at Herman Van Rompuy, the nondescript über-bureaucrat who has risen to the non-elected post of European Council President. I’ve mocked Rompuy’s attempts to compete with other European politicians, and I encourage everyone to have a good laugh at…
Texas, California, and the Tale of the Coyote
I’ve already had a couple of blog posts commenting on how Texas is kicking California’s you-know-what. Being a fiscal policy person, I always point to California’s punitive state income tax as an example of bad policy and highlight the absence of any income tax in…
Animal House, John Galt, the Laffer Curve, and the Race to Commit Fiscal Suicide in Illinois
There is a very bizarre race happening in Illinois. The Governor and the leaders of the State Senate and General Assembly are trying to figure out how to ram through a massive tax increase, but they’re trying to make it happen before new state lawmakers take office…
Which Nation Will Be the Next European Debt Domino…or Will It Be the United States?
Thanks to decades of reckless spending by European welfare states, the newspapers are filled with headlines about debt, default, contagion, and bankruptcy. We know that Greece and Ireland already have received direct bailouts, and other European welfare states are…
The Case for Social Security Personal Accounts
There are two crises facing Social Security. First the program has a gigantic unfunded liability, largely caused by demographics. Second, the program is a very bad deal for younger workers, making them pay record amounts of tax in exchange for comparatively meager…
A French Politician Has a Strong Entry in the “Dumbest Thing Ever Said” Contest
Why hasn’t Europe fought World War III? Could it be because the Soviet Union eventually collapsed? Could it be that the NATO, the western military alliance, was effective? Could it be the mutually assured destruction kept the peace? Could it be that America’s…
Republican Sellout Watch
Grousing about the GOP’s timidity in the battle against big government will probably become an ongoing theme over the next few months, and let’s start with two items that don’t bode well for fiscal discipline. First, it appears that Republicans didn’t really mean it…
Time to Shut Down the Department of Transportation and Take a Small Step to Restoring Federalism
Republicans have been spouting lots of good rhetoric, but what really matters is shrinking the burden of government. One very attractive option is federalism. There are things that perhaps should be done by government, but there is absolutely no reason why they…
How Will House Democrats React When the Constitution Is Read Out Loud Today?
House Republicans will read the Constitution today, out loud, on the floor of the House of Representatives. I’m guessing this is how some politicians will react. More accurately, this is how they would react if the Supreme Court actually upheld the Founding Fathers’…