What’s the revenue-maximizing tax rate? Since I’m interested in the growth-maximizing tax rate instead, I don’t think that’s even a legitimate question. That being said, it seems like everyone – both on the left and on the right – should agree that it makes no sense…
Daily Analysis
After Reviewing the Federal Reserve’s Lousy Track Record, Thomas Sowell Asks Why such a Deeply Flawed Institution Should Be Allowed to Accumulate more Power
When speaking about the difference between the private sector and the government, I sometimes emphasize that mistakes and errors are inevitable, and that the propensity to screw up may be just as prevalent in the private sector as it is in the public sector. I…
From Employment to Savings, Bad Government Policy Is Undermining the U.S. Economy
First, some good news. The United States is in much better shape than most other developed nations, particularly if you look at broad measures of prosperity and living standards. And our economy is growing and the private sector is creating jobs. That’s the…
In a Continuing Indictment of Obamanomics, another Bad Jobs Number Showing the “New Normal” of High Unemployment
I almost feel sorry for the Obama Administration’s spin doctors. Every month, they probably wait for the unemployment numbers from the Bureau of Labor Statistics with the same level of excitement that people on death row wait for their execution date. This has been…
Rather than Helping the Poor, Higher Tax Rates Redistribute Rich People
Daniel Hannan is a member of the European Parliament from England. He is one of the few economically sensible people in that body, as demonstrated in these short clips of him speaking about tax competition and deriding the European Commission’s corrupt racket. And as…
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….
Obama’s Vision of a Nation of Takers
If you don’t want to be depressed, you should stop reading right now. You probably know that we’ve been suffering because of a rising burden of government spending. And you probably understand that much of the problem is the relentless growth of redistribution and…
Is Anybody Surprised that Krugman Was Wrong about U.K. Fiscal Policy?
Just like in the United States, politicians in the United Kingdom use the deceptive practice of “baseline budgeting” as part of fiscal policy. This means the politicians can increase spending, but simultaneously claim they are cutting spending because the budget could…
California’s One-Man Laffer Curve
I’ve already condemned the foolish people of California for approving a referendum to raise the state’s top tax rate to 13.3 percent. This impulsive and misguided exercise in class warfare surely will backfire as more and more productive people flee to other states –…