tax cuts that are not matched by spending cuts actually result in increased government spending – for the citizenry as a whole, the pain of payment for products received has been eliminated. When we receive government services without paying their full cost, we consume more such services. If every spending initiative had to be matched… Continue reading How starving the beast makes us fat
Category: economics
How starving the beast makes us fat
tax cuts that are not matched by spending cuts actually result in increased government spending – for the citizenry as a whole, the pain of payment for products received has been eliminated. When we receive government services without paying their full cost, we consume more such services. If every spending initiative had to be matched… Continue reading How starving the beast makes us fat
A European-Style Fiscal Crisis Is Impossible in the United States of America
The government of Ireland can run out of Euros—they make Euros in Frankfurt. And the government of Peru can run out of dollars—they make dollars in Washington. But the government of the United States can’t run out of dollars. The problem we could find ourselves with is the problem of inflation. Problematic inflation is a… Continue reading A European-Style Fiscal Crisis Is Impossible in the United States of America
I have nothing to say about the Fed Audit.
Sorry guys.
If Democrats are the big spenders, why do Republican states get the money?
states with the highest anti-spending sentiment appear to be the largest beneficiaries of government spending. Not only do red states swallow the lion’s share of government spending, but Richardson found a linear relationship between the extent of GOP support in a state—and, by implication, the fervor of its anti-government sentiment—and the amount of federal largesse… Continue reading If Democrats are the big spenders, why do Republican states get the money?
Our Fiscal Security
The following report puts forth a blueprint that invests in America and creates jobs now, while putting the federal budget on a long-term sustainable path. We document the hard choices that need to be made and suggest specific policies that will yield lower deficits and a sustainable debt while preserving essential initiatives and investments. From… Continue reading Our Fiscal Security
Defining Structural Unemployment
As far as I can tell, the only economists who believe that we’re suffering largely from a rise in structural unemployment are those who are ideologically committed to the view that the demand side of the economy doesn’t matter — and so by definition, in their universe, any large rise in unemployment must be structural.… Continue reading Defining Structural Unemployment
Learned Helplessness
It’s true that if you bought completely into rational-expectations macroeconomics, the crisis in the economy should be causing a crisis in your faith — although as far as I can tell, the freshwater types remain smugly convinced of their rightness. But those of us who hadn’t forgotten Keynes, who paid attention to things like Japan’s… Continue reading Learned Helplessness
10 Epic Failures of the Bush Tax Cuts
In a rare moment of candor last week, the third-ranking Republican in the House admitted the failure of the Bush tax cuts. “You know, I think it’s fair to say, if the current tax rates were enough to create jobs and generate economic growth we’d have a growing economy,” Mike Pence acknowledged, adding, “It’s not… Continue reading 10 Epic Failures of the Bush Tax Cuts
What is the case for the Fed?
If you take the relevant division to be “before and after WWII,” the Fed looks pretty good. From What is the case for the Fed? More honest discussion on the fed, demonstrating it is possible to debate its merits without hyperbole.