When the monthly job numbers are released, most people focus on the unemployment rate. On many occasions, I’ve cited that number, usually to point out that the unemployment rate is far higher than the Obama Administration promised it would be if the so-called stimulus…
Daily Analysis
Debunking Krugman’s European Austerity Narrative
Statists are in a tough position. For years, they’ve been saying the United States should be more like Europe. And, as shown in these very funny cartoons by Michael Ramirez and Bob Gorrell, President Obama is a cheerleader for that effort. But now Europe’s welfare…
Another Victory for Good Fiscal Policy
Our lords and masters in Washington have taken a small step in the direction of recognizing the Laffer Curve. Here are some details from a Politico report. Here’s one Republican victory that went virtually unnoticed in the slew of budget votes last week: The Senate…
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…
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…
Why GDP Data Shouldn’t Be Interpreted in Ways That Support Keynesian Spending
Fighting against statism in Washington is a lot like trying to swim upstream. It seems that everything (how to measure spending cuts, how to estimate tax revenue, etc) is rigged to make your job harder. A timely example is the way the way government puts together data…
Don’t Trust Economists, Part II
Back in 2010, I shared a remarkable graph comparing the predictions of economists to what actually happened. Not surprisingly, the two lines don’t exactly overlap, which explains the old joke that economists have correctly predicted nine of the last five recessions….
The Basket Case Sometimes Known as Japan
Good fiscal policy doesn’t require heavy lifting. Governments simply need to limit the burden of government spending. The key variable is making sure spending doesn’t consume ever-larger shares of economic output. In other words, follow Mitchell’s Golden Rule. It’s…
No Matter How Hard He Tries, Obama Will Never Be as Bad as FDR
I’ve explained on many occasions that Franklin Roosevelt’s New Deal was bad news for the economy. And the same can be said of Herbert Hoover’s policies, since he also expanded the burden of federal spending, raised tax rates, and increased government intervention. So…
An Invaluable Economic History Lesson from Thomas Sowell: Politicians Should Only “Do Something” If that Means Doing Less
The great Ronald Reagan famously said (and I am paraphrasing, since I do not remember the exact phrase) that the most dangerous words in the English language were “I am from Washington and I am here to help you.” Those are very wise words, especially when we think of…