It seems that any argument about the economy eventually boils down to the core issue of whether government spending acts as a stimulus or whether it is – in the words of Thomas Sowell – a sedative that undermines prosperity. So when Robert Reich and I went on Erin Burnett’s CNN show to discuss Obama’s […]

I wrote a detailed blog post yesterday, showing that European governments have been very reluctant to restrain the burden of government spending. Part of the problem is that the debate in Europe is a no-win exercise, pitting proponents of higher taxes (which is largely how Europe’s political elite defines “austerity”) against proponents of higher spending […]

Simon Johnson is a professor at MIT and a former IMF official. With that kind of resume, you won’t be surprised to learn that he is much too sympathetic to big government. For instance, we both testified to the Ways & Means Committee last year about the value-added tax, and he sided with all the other […]

While I’m not oblivious to geopolitical concerns, I don’t worry about China becoming a more prosperous nation. Yes, more wealth could enable the nation’s dictators to finance some unwelcome aggression, but I mostly think higher living standards will create pressure for political liberalization. In any event, the United States is in no danger of being […]

In a recent post comparing Reaganomics and Obamanomics, I explained why I think Barack Obama’s policies have been hurting the economy. In today’s New York Post, I do a full-scale indictment. Here are my bullet points. * The unemployment rate is still above 8 percent, even though the White House promised it would drop to […]

n previous posts, I’ve used data from the Minneapolis Federal Reserve Bank to show how Obamanomics is leading to very weak results, particularly compared to the economic boom triggered by Reaganomics. So you can imagine how I was anxious to participate when U.S. News & World Report asked me to contribute my two cents to […]

I’ve written a couple of times about the Food Stamp program, citing ridiculous examples of waste, fraud, and abuse. These include: Using food stamps to buy luxury coffee at Starbucks. Buying steaks and lobster with food stamps. The Obama Administration rewarding states that sign up more food stamp recipients. Proposals to make it easier to […]

In hopes of stopping investor panic about Europe’s fiscal crisis, the world’s major central banks just announced that they will do whatever is needed to ensure financial markets don’t freeze up. This could be an appropriate and relatively benign use of the lender-of-last-resort powers, or it could signal another round of reckless easy money and […]

After any news appearance, I torment myself by watching the clip and telling myself I should have said something differently or raised a different point. But I’m actually happy with this appearance on Fox Business News because I (hopefully) explained the difference between wealth that is honestly accumulated and loot that is obtained through government […]