Tag Archives : Economics
Doubling Down on Failure: Former Obama Official Calls for U.S.-Financed Keynesian Spending Binge in Europe
There’s an old saying that insanity is doing the same thing over and over again while expecting different results. This certainly is a good description of Keynesians, who relentlessly push more government spending as some sort of magic potion for the economy – notwithstanding a record of failure. The latest example is Larry Summers, the former […]
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Miracles Do Happen: Someone in Brussels Accurately Analyzes Europe’s Fiscal Crisis!
With the exception of a few top-notch thinkers such as Pierre Bessard and Allister Heath, there are very few people in Europe who can intelligently analyze public policy, particularly with regard to fiscal issues. I don’t know if Fredrik Erixon of the Brussels-based European Centre for International Political Economy is even close to being in […]
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If You Want To Understand Why Obama’s Tax Agenda Is Bad for Workers, this Picture Says a Thousand Words
A good tax system (like the flat tax) does not impose extra layers of tax on income that is saved and invested. I’ve tried to emphasize this point with a flowchart, and I’ve defended so-called trickle-down economics, which is nothing more than the common-sense notion that investment boosts wages for workers by making them more […]
read more...Explaining in the New York Post Why Obama’s Soak-the-Rich Tax Policy Is Doomed to Failure
I think high tax rates on certain classes of citizens are immoral and discriminatory. If the government is going to collect revenue, all taxpayers should be treated equally, with something akin to a simple flat tax. But most people don’t seem to care about having the law apply the same to all people, so I […]
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Professor Greg Mankiw: If You Value Individual Liberty, then Protect, Promote, and Preserve Competition Between Governments
Other than my experiment dealing with corporate taxation, the first video I narrated for the Center for Freedom and Prosperity dealt with the issue of tax competition. It was a deliberate choice because I view competition among governments as one of the few effective restraints on the greed of the political class. Simply stated, in […]
read more...Time to Follow Sweden’s Lead on Fiscal Policy
Sweden has a very large and expensive welfare state, but it’s actually becoming a bit of a role model for economic reform. I’ve already commented on the country’s impressive school choice system and noted that the Swedes have partially privatized their Social Security system. I even wrote a Cato study looking at the good and […]
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The Laffer Curve Shows that Tax Increases Are a Very Bad Idea – even if They Generate More Tax Revenue
The Laffer Curve is a graphical representation of the relationship between tax rates, tax revenue, and taxable income. It is frequently cited by people who want to explain the common-sense notion that punitive tax rates may not generate much additional revenue if people respond in ways that result in less taxable income. Unfortunately, some people […]
read more...If We Can’t End the Fed, Can We at Least Subject It to Competition?
Ron Paul has made “End the Fed” a popular slogan, but some people worry that this is a radical untested idea. In part, this is because it is human nature to fear the unknown. But there are plenty of examples of policy reforms that used to be considered radical but are now commonplace. Statists used […]
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Using Labor Department Data to Indict Obama’s Dismal Performance on Jobs
The new unemployment numbers have been released and the White House must be somewhat happy. The joblessness rate is down to 8.2 percent, which means the number that gets the most publicity continues to move in the right direction. I’ve been predicting that Obama will win reelection if the unemployment rate falls to 8.0 percent […]
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A Case Study of How Government Handouts Undermine Human Decency and Social Capital
Why is big government bad for an economy? The easy answer is that big government usually means high tax rates, and this penalizes work, saving, investment, and entrepreneurship. And perhaps some of the spending is financed by borrowing, and this diverts money from private investment. That’s a correct answer, but it’s only part of the […]
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