Since I just left Monaco and am now in Geneva, this is an appropriate time to extol the virtues of so-called tax havens. But I don’t merely say nice things about low-tax jurisdictions when I’m in friendly environments. I believe in swinging my sword in the…
Daily Analysis
New European Central Bank Study Finds that Government Spending Undermines Growth
The fiscal policy debate often drives me crazy because far too many people focus on deficits. The Keynesians argue that deficits are good for growth and this leads them to support more government spending. The “austerity” crowd at places such as the International…
Barack Obama’s $8 Trillion Output Gap
I’m not a very exciting guy. It’s Saturday afternoon and I’m perusing the Budget and Economic Outlook from the Congressional Budget Office. But sometimes it pays to be a nerd because I just found an interesting tidbit of information. Here’s what CBO says about the…
Why Art Laffer’s Unfortunate Endorsement of an State Sales Tax Cartel Is Misguided
Art Laffer has a guaranteed spot in the liberty hall of fame because he popularized the common-sense notion that you can’t make any assumptions about tax rates and tax revenue without also figuring out what happens to taxable income. Lot’s of people on the left try to…
Entitlement Spending Is America’s Biggest Fiscal Challenge, but Discretionary Spending Is Still Far too High
If America descends into Greek-style fiscal chaos, there’s no doubt that entitlement programs will be the main factor. Social Security, Medicare, Medicaid, and Disability are all fiscal train wrecks today, and the long-run outlook for these programs is frightful. Just…
The Overlooked Jobs Tragedy
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…
According to Washington Post Exposé, People Who Utilize Tax Havens Are Far More Honest than Politicians
Using data stolen from service providers in the Cook Islands and the British Virgin Islands, the Washington Post published a supposed exposé of Americans who do business in so-called tax havens. Since I’m the self-appointed defender of low-tax jurisdictions in…
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…
What Can We Learn by Comparing the Employment Situation in Texas vs. California?
One of the great things about federalism, above and beyond the fact that it both constrains the power of governments and is faithful to the Constitution, is that is turns every state into an experiment. We can learn what works best (though the President seems…
What’s the Right Point on the Laffer Curve?
Back in 2010, I wrote a post entitled “What’s the Ideal Point on the Laffer Curve?“ Except I didn’t answer my own question. I simply pointed out that revenue maximization was not the ideal outcome. I explained that policy makers instead should seek to maximize…