Asymptosis: Always Approaching

Category: Economics

  • More on Equality and Growth

    I just came across this graph that I created a while ago, and never got around to posting. Trickle-down theorists would have you believe that inequality is necessary for growth and prosperity, or even that inequality causes growth. But in the decades after their theories took sway, growth declined. It came after therefore it was…

  • The Republican Alternative Rescue “Plan”

    I think Arnold Kling's commentary pretty much says it all: As I say in my AP stats class, "I appreciate that you raised your hand and tried to answer, but no. Anyone else?" Now which political party is it, exactly, that's supposed to know something about finance and economics? To make sensible, judicious, reasoned judgments…

  • Paulson/Dodd Plan: Mankiw Stipulates to the Merits

    Greg Mankiw posted the views of a surrogate (his "smart friend") to dis the Paulson/Dodd bailout compromise (buy assets, get warrants/equity as well). His friend addresses the plan on its merits. But when David Leonhardt replied , also addressing the plan's central issues, Mankiw changes tack, arguing that it will screw up the auction process:…

  • Bailout: Dems Have the Smart Solution (Again)

    Very quickly here because I have to run out the door, you'll have to google for your own links: Senate Banking Committee Chairman Chris Dodd has proposed an alternative to Hank Paulson's "just trust me" blank-check bailout proposal. Simply put: If Treasury (that means you and me) buys $1 worth of trash assets from a…

  • John McCain Pledges to Eradicate Government

    John McCain has promised to balance the federal budget by 2013. He's also pledged to enact a tax plan that will deliver a budget deficit of $650 billion dollars in 2013. Just to give these numbers a little perspective: Agency 2013 Projected Outlays Agriculture $120 billion Commerce $9 billion Education $86 billion Energy $30 billion…

  • The Republican Energy “Plan”?

    Here's the best description I've seen of McCain's plan for American "energy independence": The image was produced by these guys, with data from the Energy Information Administration.  HT to Gristmill and Mark Thoma. Related posts: The Villain of Building Energy Efficiency: Triple-Net Leases. Not Picking the Low-Hanging Fruit The Efficiency of De Ebil Gubmint Man…

  • Yeah, The Economy Rocks Under Dems. But It’s Not Their Fault.

    Greg Mankiw pooh-poohs the data using one of his favorite tactics: Fun with Statistics Princeton economist Alan Blinder says Democratic Presidents are better for economic equality between rich and poor. Chicago economist Casey Mulligan says Republican Presidents are better for economic equality between men and women. My take: These articles are completely persuasive, as long…

  • Pro-Growth Republicans Revisited

    In comments on my recent post–which discusses how the economy performs (much) better under Democratic presidents–my friend Steve uses a few different rather familiar arguments to undercut the import of the facts imparted therein. He claims first that presidents don’t have any effect on taxes and such–that congress controls the purse strings. But he acknowledges…

  • Tax-Cutting Republicans? Get Real

    Put aside for the moment the current Republican presidential candidate’s tax plan, which imposes higher taxes on 250 million Americans than the Democratic candidate’s plan. The simple fact is–as innumerable sages (at least since Adam Smith) have pointed out–spending is taxing. Three choices (laid out very nicely by Brad DeLong): Raise taxes in the future.…

  • Inequality is Bad Because it Hurts the Republican Brand

    I thought I'd pointed this out in a previous post, but apparently not. When you hear Republicans speaking negatively of America's extreme and growing inequality, it's only because it might hurt their brand and their electoral prospects. David Frum is the poster child. In this week's NYT Magazine, he's nice enough make my point for…

  • Even Fox Sez McCain’s Lying About Taxes

    Major Garrett: McCain’s TV commercials assailing Obama’s tax policy contain serious distortions, if not out-right lies. On Aug. 8, FactCheck.org, published this report on a spate of new McCain TV spots on Obama and taxes. Read it here: www.factcheck.org/elections-2008/more_tax_deceptions.html That report followed one in July that raised similar concerns about the truthfulness of the McCain…

  • Pro-Growth Republicans? Get Real

    Republicans like to claim that they’re the party of growth and prosperity. Even though all the facts say otherwise. I’ve pointed out repeatedly that when you compare a lot of developed countries over decades, you see that lower taxes and smaller government don’t result in faster growth. Tax cuts are an effective vote-buying political pander…

  • Mankiw Endorses Obama, Slams Palin

    The former chair of Bush II's Council of Economic Advisors, in his manifesto, Smart Taxes: An Open Invitation to Join the Pigou Club (pdf): "It is not a stretch to believe that more thought about an issue leads to more reliable conclusions." Okay well, not explicitly. And in any case he does contradict this sentiment…

  • Do Voters Prefer Death or Taxes?

    Today's NYT/CBS poll gives the answer: Taxes. 67% of voters think it's "more important to provide health care coverage for all Americans" than to "hold down taxes." Related posts: Tea Partiers: Old, White, Rich, Educated Men Business Roundtable Proposes Obamacare to Restore American Competitiveness ‘Pubs Love Catastrophic Coverage. Too Bad the Free Market Doesn’t Provide…

  • The Mankiw Distortion Field: This Time, Corporate Taxes

    I think we can assume that Greg Mankiw knows the difference between tax rates and effective tax rates–after all the deductions, exemptions, etc. And he surely knows that effective tax rates are what actually matter when it comes to impact, income, and incentives. But still, he posts this graph as if it was actually representative…

  • McCain’s Tax Plan: You Call That “Conservative”?

    I pointed out recently the horrific rise in the federal debt caused by the much-ballyhooed Reagan Revolution (with only a brief respite under Clinton)–a debt built on the apparent belief among so-called conservatives that we can borrow and spend our way to prosperity. It went from 34% of GDP in 1980 to nearly 70% today.…

  • US Corporate Taxes: How Do They Compare?

    Paul Krugman points us to a CBO comparative study (PDF) of corporate taxes in developed countries. Short story: ours are pretty much in the same ballpark as other prosperous countries, by various measures. Ours tend to incentivize investments funded by debt, as opposed to equity. Nothing to see here, folks. Move along. One table I…

  • Maybe Obama’s Not So Bad…

    My wonderful friend and former business partner Steve allows as how maybe Obama isn't going to drive our economy into extinction after all. His route to that revelation, via a Mankiw post, puts aside that sage's other comment in the post: [Obama quote:] Over the past decade, we've seen…hefty corporate profits, but a shrinking share…

  • Immigrants: Pay for My Retirement! Please?

    Everyone agrees: the problem with Social Security is that we’re going to have (already have?) too many old people and not enough young people. Since killing off old people like me is not an option, what we need is more hardworking young people. Americans aren’t putting their shoulders to the wheel by creating more little…

  • Bush Promotes Private Sector: Cancels Shuttle for Football Fans

    Seattle's Metro used to have a shuttle to get people to Seahawks games. Not any more. (Seattle P-I.) the Bush administration began requiring public transit agencies such as Metro to step aside when private operators say they want to provide service. Starline Luxury Coaches of Seattle has done so this year. The Seahawks rejected Starline's…

  • Taxes: Obama vs. McCain

    Here’s the best laid-out presentation I've seen, from the Washington Post. Sort of speaks for itself. Hat tip to Monte Asbury. Related posts: Embarrassed Republicans Admit They’ve Been Thinking Of Eisenhower Whole Time They’ve Been Praising Reagan The Macroeconomics of Chinese Kleptocracy Who Owns Congress? A Campaign Cash Seating Chart Clear-Eyed Sowellian “Realists” Hyperventilating. Again.…