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.
We like to make fun Keynesians. Paul Krugman, for example, stated a couple of years ago that it would be good for growth if everyone thought the world was going to be attacked by aliens because that would trigger massive military outlays.
If you look at the Census Bureau’s data on median household income (adjusted for inflation), you’ll see that the median American is earning less during the Obama years.
If you look at measures of what makes a nation competitive and prosperous, you’ll find some obvious variables such as fiscal policy, regulatory burden, and monetary policy. But in addition to those policy levers, you’ll find that it’s equally important that a nation does a good job of protecting and maintaining the rule of law.
Germany isn’t exactly a fiscal role model. Tax rates are too onerous and government spending consumes about 44 percent of economic output. That’s even higher than it is in the United States, where politicians at the federal, state, and local levels divert about 39 percent of GDP into the public sector.
Obamacare may not be good news for taxpayers or consumers, but let’s look at the bright side. At least the law has generated some superb political humor, including funny videos.
The President’s new budget has been unveiled. There are lots of provisions that deserve detailed attention, but I always look first at the overall trends. Most specifically, I want to see what’s happening with the burden of government spending.
No matter how much I pontificate about Washington corruption, there’s no way I can get across the true extent of the DC establishment’s self-serving behavior. Washington is rich because government is big and the beneficiaries of this system are enjoying their status as America’s new gilded class.
They want us to believe the economy is a fixed pie and that all of us somehow get less if some entrepreneur becomes rich.
I confess I have a policy reason for supporting weaker national governments. Simply stated, there’s very strong evidence that decentralization means more tax competition, and when governments are forced to compete for jobs and investment, the economy is less likely to be burdened with high tax rates and excessive redistribution.
I’m not writing today about possible alternatives to the Fed or big-picture issues dealing with monetary policy. Instead, I want to highlight three rather positive signs about Janet Yellen, the new Chair of the Fed’s Board of Governors. (You read that right.)
To make fun of big efforts that produce small results, the famous Roman poet,Horace, wrote “The mountains will be in labor, and a ridiculous mouse will be brought forth.” That line sums up my view of the new tax reform plan introduced by Congressman Dave Camp.
Time for another great moment in red tape. I wrote a couple of weeks ago that banks treat customers poorly in part because of bad laws and regulations from Washington. You may think that only cranky libertarians are unhappy about this system. But that’s not the case.
One of my goals is to convince people that even small differences in long-run growth can have a powerful impact on living standards and societal prosperity. In other words, the economy is not a fixed pie. The right policies, such as free markets and small government, can create a better life for everybody.
When resources are allocated by political forces, cronyism and pork cause inefficiency and waste. That’s why statist nations languish and market-oriented countries flourish. Of course Paul Krugman has a different perspective on these issues...
All sentient human beings should know higher minimum wage laws will mean more unemployment.
What happens if there’s an issue pitting Obamacare and bureaucrats against each other? Would I be able to pick sides?
Did you sing Happy Birthday? The nation just “celebrated” the fifth anniversary of the signing of the so-called American Recovery and Reinvestment Act, Political Cartoons by Nate Beelermore commonly referred to as the “stimulus.”
I’ve already explained why leftists must be depressed about their failure to restrict private gun ownership. They’ve suffered brutal electoral setbacks in Colorado, and more and more states have strengthened the right to keep and bear arms.
When I give speeches around the country, I often get asked whether it’s time to give up. More specifically, has America reached a tipping point, with too many people riding in the wagon of government dependency and too few people creating wealth and pulling the wagon in the right direction?