Category Archives: Economics

Stagflation?

Rich Karlgaard thinks that’s what’s going on, and the cure for it is supply-side tax-rate cuts. He doesn’t call them that, though–he makes the mistake of calling them “tax cuts,” even though it’s clear that he knows that’s not what they necessarily are:

Conservatives generally avoid the class warfare talk, but they do fall into two other traps about supply side tax cuts. One trap is that tax cuts add to the federal deficit. There is no evidence of this. The evidence is either neutral or points the other way. Government tax receipts after supply side cuts have been enacted go up, not down.

I’ve kvetched about this before.

By definition, if revenues went up, it’s not a tax “cut.” It’s a tax increase, achieved through lower rates but faster economic growth and an increase in GDP. Sloppy language like this is one of the things that makes it hard to sell the concept.

Fascism In America

As described by Lileks:

As for the NRA logo, it’s a reminder of the happy days of FDR’s attempts to revive the economy by pouring a bowl of alphabet soup over its face. The NRA, among other things, was intended to prevent the depredations of competition, and “allowed industry heads to collectively set minimum prices,” as this rather scant wikipedia entry notes. (The same page relates the story of the tailor who was arrested for charging 35 cents to press a suit; the NRA rules specified the price at 40 cents. So he was arrested. Consider that the next time someone complains that liberty and civil rights have been eliminated in the last 7 years.)