The German Chancellor and French President have put together a plan to boost growth. Sounds like a good goal, but what specifically are they proposing? Some of the obvious ideas include: Lowering tax rates to boost incentives for productive behavior. Reducing the burden of government spending to allow more efficient allocation of labor and capital. […]
read more...I realize this is about as productive as talking to a brick wall, but I’m going to explain some basic economics to statist French policymakers (oops, pardon the redundancy). This heroic – albeit surely futile – impulse is triggered by a recent proposal from President Sarkozy to supposedly boost job creation by lowering payroll taxes […]
read more...Appearances can be deceiving. I saw an article with a blaring headline that warmed my heart: “France’s Sarkozy Eyes Welfare Rethink, Fraud Clampdown.” Could it be, I thought, that the political elite finally realized that the welfare state was the wrong model? Had they finally realized, as demonstrated by these cartoons, that it was foolish […]
read more...The folks at U.S. News & World Report have posted an online debate on the never-ending topic: “Does Stimulus Spending Work?“ You know my thoughts on the topic, including my thumbs-down to Obama’s latest stimulus scheme, so it won’t surprise you to know that I think Veronique de Rugy of the Mercatus Center beat her […]
read more...I enjoy mocking the French every so often, including posts about the nation’s absurd fiscal policy, its protesting government workers, its oddball laws against meanness, its penchant for high taxes, and its shallow attempts to redefine success. Sometimes, I even criticize the French when they move policy in the right direction. But it’s worth pointing […]
read more...We have two completely unrelated topics from Germany and France, but both fit in the broader theme of Europe’s gradual, self-inflicted suicide. Let’s start with the Germans. I’m not a big fan of the country’s Chancellor, Angela Merkel. She is supposedly a conservative, but she certainly hasn’t done much to reduce the burden of government. […]
read more...Actually, I better add an important qualifier to that title and instead say that we should listen to a specific Frenchwoman. My friend Veronique de Rugy recently testified before a House Committee and she completely kicked you-know-what.
read more...I write about the Laffer Curve so often that I’m surprised people don’t run away screaming. But I’ll continue to be a pest because I want people to understand that you can’t just look at changes in tax rates when predicting changes in tax revenue. You also have to consider changes in taxable income. Simply […]
read more...Ireland is in deep fiscal trouble and the Germans and the French apparently want the politicians in Dublin to increase the nation’s 12.5 percent corporate tax rate as the price for being bailed out. This is almost certainly the cause of considerable smugness and joy in Europe’s high-tax nations, many of which have been very resentful of Ireland for enjoying so much prosperity in recent decades in part because of a low corporate tax burden.
But is there any reason to think Ireland’s competitive corporate tax regime is responsible for the nation’s economic crisis? The answer, not surprisingly, is no.
read more...A paper posted on the Social Science Research Network looks at nations that are prospering compared to those that are stagnating. Not surprisingly, limited government and free enterprise policies are associated with better economic performance. Here’s an excerpt from this new research. What can we conclude about the effect of various policies on economic growth? […]
read more...