Back in the 1980s and 1990s, there was a widespread consensus that high tax rates were economically misguided. Many Democrats, for instance, supported the 1986 Tax Reform Act that lowered the top tax rate from 50 percent to 28 percent (albeit offset by increased double taxation and more punitive depreciation rules). And even in the 1990s, many on […]

Last month, I shared a very interesting video from Canada’s Fraser Institute that explored the link between economic performance and the burden of government spending. There’s now an article in the American Enterprise Institute’s online magazine about this research. The first half of the article unveils the overall findings, explaining that there is a growth-maximizing size of government (which, […]

One of my goals is to convince people that even small differences in long-run growth can have a powerful impact on living standards and societal prosperity. In other words, the economy is not a fixed pie. The right policies, such as free markets and small government, can create a better life for everybody. And bad policy, […]

What’s the best state in America? I’m not sure I can answer that broad question, but I can address the more narrow issue of which state has the most economic freedom. Last month, for instance, I shared some data from the Canada-based Fraser Institute which showed that South Dakota was America’s most laissez-faire state, followed by Tennessee, Delaware, […]

There’s an old joke about two guys camping in the woods, when suddenly they see a hungry bear charging over a hill in their direction. One of the guys starts lacing up his sneakers and his friend says, “What are you doing? You can’t outrun a bear.” The other guys says, I don’t have to […]

The business pages are reporting that Chrysler will be fully owned by Fiat after that Italian company buys up remaining shares. I don’t know what this means about the long-term viability of Chrysler, but we can say with great confidence that the company will be better off now that the parent company is headquartered outside the United […]

There’s a tendency in public life to exaggerate the positive or negative implications of any particular policy. This is why I try to be careful not to overstate the potential benefits of reforms I like, such as the flat tax. Yes, we would get better growth and there would be less corruption in Washington, but […]

I’ve always had a soft spot in my heart for Bill Clinton. In part, that’s because economic freedom increased and the burden of government spending was reduced during his time in office. Partisans can argue whether Clinton actually deserves the credit for these good results, but I’m just happy we got better policy. Heck, Clinton […]