America is celebrated for its economic dynamism and ample and generously paid employment opportunities. It's a nation that attracts immigrants from around the world. Yet Americans are bummed, and have been for a while. They believe that life was better 40 years ago. And maybe it was on some fronts, but not economically.
Surveys repeatedly ...Read more
In the well-intentioned rush to support American families by expanding the Child Tax Credit (CTC), critical questions are often ignored: Aren't we already doing enough, and is this the best way to help? It's imperative to step back and examine the assumptions at the heart of this ongoing debate.
The child tax credit was first introduced in ...Read more
President Joe Biden wants to remind you that your Super Bowl party was more expensive than it used to be. The reason, he claims, is corporate greed and "shrinkflation." In a social media video before Sunday night's game, he spoke of companies selling "smaller-than-usual products where the price stays the same." He opposes this behavior and is ...Read more
Nobody likes paying fees. A fee, however, is a transparent way to reflect the price of something. And in a market economy, prices convey vital information that consumers and producers use to make good decisions. A rise in the price of apples tells producers that consumers want more apples. This prompts more apple production (and eventually, ...Read more
Over the years, I've offered many explanations about why the trajectory of the national debt is deeply troubling. At this point, though, my worry isn't rooted in a dogmatic adherence to the principles of a balanced budget. Nor does it come from my desire for a smaller government. Instead, I'm alarmed by politicians' unwillingness to look at ...Read more
In a thrilling address at the World Economic Forum, Javier Milei, President of Argentina, presented a robust defense of capitalism and a critical examination of all forms of collectivism. His speech, rich in historical context and economic analysis, offers some vital lessons that are particularly relevant for today's globalized economy. Sadly,...Read more
Remember when Republicans on the campaign trail would talk about how they would make sure to put the U.S. on a fiscally sane path? I miss that time. While a few of the current crop have paid lip service to the idea of constraining spending, no one seems to have a clear plan about how to do it.
It's unfortunate. Letting the spending trajectory...Read more
The political landscape is often portrayed as deeply polarized. The two sides, it is said, can't agree on anything. Even worse, if one side supports a position, that's reason enough for the other to oppose it. While this picture is largely true for cultural issues, the rise of populism on the right is making some of the two parties' economic ...Read more
As a new year dawns, it's customary to reflect on the past and set resolutions for the future. This year, let's resolve to greet three widespread claims with healthy doses of skepticism.
The first dubious claim is that income inequality in the United States has inexorably risen since the 1960s. It's a scary narrative heavily bolstered by the ...Read more
As the festive season approaches, with its twinkling lights and merry carols, the item topping my Christmas wish list is fiscal responsibility from Congress and the administration. If this sounds like an economist conflating policy with goodwill, remember this: In a world where holiday wishes usually lean toward "stuff" -- gadgets, games, and ...Read more
With U.S. government revenues rising, 2023 might have been a good year to get America's post-COVID-19 finances on track, but the budget deficit is still growing. You can thank overspending for this. It's also the reason we've had to live with inflation, higher interest rates and the threat of massive future tax hikes for another year.
That ...Read more
The government has a dilemma: It's pushing hard for fuel-efficient vehicles, but gas taxes pay for roads. There's an obvious fix, but are Americans ready for it?
Granted, tax credits, subsidies and government mandates aren't delivering the electric-vehicle sales surge the Biden administration promised. Tax breaks for non-wealthy buyers are ...Read more