Taxes and Incentives: The Italian Version

Taxes and Incentives: The Italian Version

Basic economy theory, depicted by supply-and-demand curves, tells us that taxes will cause “deadweight loss.” This is the economic activity that no longer occurs because taxes creates a wedge between buyers and sellers. And this analysis applies whether...
Recovery for the PIGS?

Recovery for the PIGS?

Just a few months ago, I wrote about Germany’s fiscal decay. Over the past eight years, government spending has grown much faster than the private sector, thus violating the Golden Rule of fiscal policy. Given the shift to bad policy in Germany, I...