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The Economics of Tax-Financed Spending vs. Debt-Financed Spending

The Economics of Tax-Financed Spending vs. Debt-Financed Spending

by Dan Mitchell | Dec 6, 2021 | Big Government, Blogs, Economics, Government Spending, Taxation

Regarding fiscal policy, almost everyone’s attention is focused on Biden’s growth-sapping plan to increase the burden of taxes and spending. People are right to be concerned. If the President’s plan is approved, the already-grim fiscal outlook for...
Will Excessive Government Spending Cause Another European Debt Crisis?

Will Excessive Government Spending Cause Another European Debt Crisis?

by Dan Mitchell | Nov 17, 2021 | Big Government, Blogs, Government Spending

I’ve periodically warned the European nations such as France, Italy, Greece, and Spain almost surely are doomed to suffer a fiscal crisis. This is because governments in Europe didn’t respond to the 2010 crisis by actually...
Demography + Entitlements = Fiscal Crisis

Demography + Entitlements = Fiscal Crisis

by Dan Mitchell | Nov 2, 2021 | Big Government, Blogs, Welfare and Entitlements

It’s impossible to predict when another pandemic will strike. But there’s one future crisis that we already know about, and I recently spoke about that issue to the Liberty International World Conference in Medellin. At first, I wasn’t planning to share this...
Demography + Entitlements = Fiscal Crisis

Demographic Decline = Fiscal Crisis

by Dan Mitchell | May 25, 2021 | Big Government, Blogs, Welfare and Entitlements

As a libertarian, I don’t care if couples have zero children or 10 children. But as an economist, I’m horrified that big changes in demographics are going to lead to fiscal crises thanks to poorly designed entitlement programs....
Preventing Fiscal Meltdowns with a Spending Cap

Preventing Fiscal Meltdowns with a Spending Cap

by Dan Mitchell | Apr 20, 2021 | Big Government, Blogs, Government Spending

As part of my recent interview about European economic policy with Gunther Fehlinger, I pontificated on issues such as Convergence and Wagner’s Law. I also explained why a Swiss-style spending cap could have saved Greece and Italy...
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