I’ve shared lots of data and evidence about the harmful economic impact of government spending. Simply stated, budgetary outlays divert resources from more productive uses.And this results in labor and capital being misallocated, leading to less economic output….
Daily Analysis
Is FATCA the Worst Part of the Internal Revenue Code?
The worst part of the tax code is something most Americans have likely never heard of.
Herbert Hoover’s Anti-Market Policies Helped Turn an Economic Downturn into a Great Depression
There have been many truly awful presidents elected in the United States, but if I had to pick my least favorite, I might choose Herbert Hoover. I obviously have disdain for Hoover’s big-government policies, but I also am extremely irritated that – as Jonah Goldberg…
The Amazing Hockey Stick of Economic Progress
Back in 2010, I shared a remarkable chart showing how quickly economic output doubles in a fast-growth economy, but it also showed how long it takes for GDP to expand if an economy only grows 1 percent or 2 percent per year. My main message was that nations should…
The Hidden Economic Damage of Obamacare
Obamacare resulted in big increases in the fiscal burden of government(ironically, it would be even worse if Obama hadn’t unilaterally suspended parts of the law). The legislation increased government spending, mostly for expanded Medicaidand big subsidies for private…
Obama-Style Taxation Is Causing an Economic Train Wreck in Europe
I wrote the other day that Americans, regardless of all the bad policy we get from Washington, should be thankful we’re not stuck in a hellhole like Venezuela. But we also should be happy we’re not Europeans. This is a point I’ve made before, usually accompanied by…
Paul Martin: The Bill Clinton of Canada, Only Much Better
Imagine how weird it would be if the Cato Institute and Americans for Tax Reform praised Barack Obama for fiscal responsibility. And think how inconceivable it would be for the Heritage Foundation and the National Taxpayers Union to applaud Tim “Turbotax” Geithner for…
More Evidence for the Laffer Curve and Lower Corporate Tax Rates
When the new Tory-led government came to power in the United Kingdom, I was rather unimpressed. David Cameron positioned himself as a British version of George W. Bush, full of “compassionate conservative” ideas to expand the burden of government. But even worse than…
Spending Restraint Is Good Short-Run Policy and Good Long-Run Policy
Regular readers know that good fiscal policy takes place when government spending grows slower than the private economy. Nations that maintain this Golden Rule for extended periods of time shrink the relative burden of government spending, thus enabling more growth by…
Linear Thinking and the Rahn Curve: Responding to a Critic
There’s an old saying that there’s no such thing as bad publicity. That may be true if you’re in Hollywood and visibility is a key to long-run earnings. But in the world of public policy, you don’t want to be a punching bag. And that describes my role in a book…