Over the past several years, I’ve repeatedly argued that you get more unemployment when the government pays people to be unemployed. But I’m not just relying on theory. I’ve cited both anecdotes and empirical research to bolster my case. You won’t be surprised to learn that many politicians have a different perspective. They say it is compassionate to provide unemployment insurance […]

On many occasions, I’ve explained that economic output is a function of how much labor and capital are productively utilized. This is why I relentlessly criticize policies that undermine GDP growth by hindering the use of these “factors of production.” That’s a bit of economic jargon, but it helps to explain why we shouldn’t be discriminating against capital […]

I’m beginning to think that people from some nations are smarter and more rational than others. That may explain, for instance, why voters in Estonia support fiscal restraintwhile voters in France foolishly think the gravy train can continue forever. But I’m not making an argument about genetic ability. Instead, what I’m actually starting to wonder is whether […]

What’s the worst economic development during Obama’s reign? Some would say it’s the higher tax burden. Some would say it’s the wasteful faux stimulus. Others would say it’s the fiscal nightmare of Obamacare. And others would say it’s the loss of millions of workers from the labor force. I suppose there’s no objective way to pick the most ill-conceived policy, […]

The headlines from today’s employment report certainly seem positive. The unemployment rate has dropped to 6.3 percent and there are about 280,000 new jobs.* But if you dig into the details of the latest numbers from the Bureau of Labor Statistics, you find some less-than-exciting data. First, here is the chart showing total employment over the past […]

The United States is supposed to be enjoying a recovery. Indeed, we’re now supposedly in the fifth year of an expanding economy. Many Americans must wonder why it doesn’t feel that way. In part, that’s because growth has been very anemic. Indeed, this is the weakest recovery since the Great Depression. But it’s also because the […]

I asked back in September whether all the bad news about Obamacare meant it was time to feel sorry for President Obama and other statists. Some people apparently didn’t realize I was being sarcastic, so I got some negative feedback. I’ve since learned to be more careful with my language, and subsequent columns about Obamacare developments have […]

Looking at labor markets, my biggest concern is the drop in labor force participation. The data from the Labor Department on the employment-population ratio, for instance, suggest a permanent reduction in the share of the population that is working. And since economic output and living standards ultimately depend on the quality and quantity of labor and capital […]

According to the most recent numbers from the Bureau of Labor Statistics, the unemployment rate has dropped to 6.7 percent. Is this good news? Well, it’s depends on your benchmark. Compared to France’s anemic economyand double-digit levels of unemployment, America is in decent shape. But if you use data from the Minneapolis Federal Reserve to compare the current business cycle […]

Washington is in the middle of another debate about redistributing money. But that’s hardly newsworthy. Politics, after all, is basically a never-ending racket in which insiders buy votes and accumulate power with other people’s money. The current debate about extending unemployment benefits is remarkable, though (at least from an economic perspective), because certain politicians want to give people money on […]