I shared a chart back in February that shows how long it takes to double GDP based on different growth rates. For instance, if the economy grows only 1 percent per year, it takes 70 years before the economy doubles. Think Italy or some other decrepit European welfare…
Daily Analysis
A Fair Critique of the Fair Tax
I’m a long-time proponent of the flat tax for three simple reasons. 1. It replaces the discriminatory “progressive” tax with a single tax rate at the lowest possible level, thus reducing the tax penalty on productive behavior. 2. It gets rid of all forms of double…
The No-Comparison Comparison of Reagan v Obama
Have you ever wondered why, in a hypothetical match-up, the American people would elect Ronald Reagan over Barack Obama in a landslide? And have you ever wondered why Americans rate Reagan as the best post-WWII President and put Obama in last place? There are probably…
We Get Bad Analysis when Statists Write Economic History
When major changes occur, especially if they’re bad, people generally will try to understand what happened so they can avoid similar bad events in the future. This is why, when we’re looking at major economic events, it’s critical to realize that narratives matter….
Policy Makers Should Make the Tax System Better rather than Banning Corporate Inversions
One of the worst things about working in Washington is that it’s so easy to get frustrated about the fact-free nature of political debates. For instance, there’s now a big controversy about companies “re-domiciling” or “inverting” from the United States to lower-tax…
Krugman’s “Gotcha” Moment Leaves Something to Be Desired
I’ve had some fun over the years by pointing out that Paul Krugman has butchered numbers when writing about fiscal policy in nations such as France, Estonia, Germany, and the United Kingdom. So I shouldn’t be surprised that he wants to catch me making an error. But…
The Economic Future of China and Hong Kong
I’m currently in Asia, where I just finished a series of speeches about economic policy in China and Hong Kong. These two jurisdictions offer very powerful lessons about the importance of economic policy. Hong Kong is supposed to be Nirvana for libertarians. It holds…
For State Policy Makers, the Simple (Anti) Tax Solution for Faster Growth
When people in other nations ask me for evidence in favor of low taxes, I often will ask them to compare the economic performance of a high-tax nation like France with the performance of a nation such as Switzerland with less onerous taxes. If I’m asked by Americans,…
Piketty’s Class-Warfare Tome: Bad Numbers, Bad Analysis
Why do statists make so many mistakes with data? Paul Krugman, for instance, has butchered numbers when writing about fiscal policy in nations such as France, Estonia, Germany, and the United Kingdom. But Krugman isn’t alone. We also have Thomas Piketty, who was…
European Politicians Love the Underground Economy…When It Means They Can Spend More Money
Libertarians tend to like – or at least have a grudging respect for – the underground economy. For instance, even if we’re personally very straight-laced, we don’t like government prohibitions against gambling, drugs, and prostitution. This is why we’re not upset when…