Fiscal Policy

Playing Chicken with a Stack of Steering Wheels

“People often complain about the ‘irrationality’ of politics, but there is nothing irrational about the process that has given rise to our crushing debt burden. Voters really do want lower deficits, provided it does not involve either cutting spending or raising taxes.” ~ Michael Munger

How Congress Should Reform the Fed

“Congress should narrow the Fed’s regulatory concerns to maintaining adequate bank capital. It should also consider abolishing the discount window entirely.” ~ Alexander William Salter

So Why Aren’t We Paying Down the National Debt?

“The world will remain a dangerous place, but the further the nation is from its credit limit, the more effectively the government will be able to respond when, not if, something goes seriously awry.” ~ Robert E. Wright

Krugman’s Magic Act

“We’ve reached a point where the political class’s primary concern is no longer doing what’s best for the economy, but getting around the letter of the law while fooling the public as to what they’re really doing.” ~ Antony Davies

Hamilton’s Haircuts

“Whatever you think of the wisdom of Hamilton’s moves, our point is simple and stark: The US government has defaulted in the past.” ~ David R. Henderson and Jeffrey R. Hummel

Tax Day: Inverting the Experience

“Tax season’s sophisticated sleight-of-hand will have most Americans wondering what they’ll buy with their refund, instead of questioning whether they saw results for all the dollars they won’t get back.” ~ Laura Williams

One Nation Under Debt: Hamilton, Jefferson, and the History of What We Owe

The US National Debt, 1787-1900 

Let’s Cut the Budget Nonsense

“The Biden administration’s goal seems to be to spend lots of money on new unnecessary programs or failing existing programs, and to pay for it with yet more debt and with novel taxes likely to fall more heavily on middle class Americans and small businesses than on big corporations or the rich.” ~ Robert E. Wright

Monetary Policy and that Old-Time Fiscal Religion

“Nominal income targeting can potentially restore the old-time fiscal religion. Like the classical gold standard, this approach stabilizes total spending in the economy, rendering counter-cyclical fiscal policy unnecessary and ineffective.” ~ Bryan P. Cutsinger & Louis Rouanet

Is it a LOLR? No, It’s a Trap

“The reason this is infuriating is that we are being told that taxpayers should be willing to double down, to reimburse even-more-careless depositors for their negligent inattention to risk.” ~ Michael C. Munger

The Biden Budget: Smoke, Mirrors, and Class Warfare

“Beyond tired class warfare rhetoric and anti-competitive measures, the Biden administration is attempting to increase not only the size of the state (through more taxing and spending), but also the scope of the state, through misguided commercial and industrial policy.” ~ Nikolai G. Wenzel