Building the wall would be so worth it on January 15, 2018I repeat myself. For years, I have advocated a wall along our southern border, which would (I believe) discourage illegal immigration without stopping it altogether. But let’s face it: Whatever the virtues or vices of a wall, it has largely become a political symbol. President Trump and Republicans love it; Democrats and immigration groups despise […]
What really happened to coal? on June 12, 2017The coal-mining jobs that President Trump thinks were destroyed by government regulation – adopted to combat air pollution and global warming – were actually lost to old-fashioned competition from other American firms and workers. Eastern coal mines lost market share to Western coal, which was cheaper. And natural gas grew at coal’s expense because it […]
Taxes the great uniter? on April 17, 2017As Tax Day — April 18 this year — approaches, we are confronted once again with the apparently enduring reality that Americans hate to pay taxes. Few political generalizations seem so indestructible. Gallup has long asked Americans whether their federal income taxes are too high. About 50 to 60 percent regularly say “yes.” The federal […]
Lets stop using government as a national slush fund on April 3, 2017There was bound to be a political commotion when the Trump administration released its 2018 budget. After all, it isn’t every day that the White House proposes deep cuts in agency spending: For 2018, the Environmental Protection Agency would be down 31 percent; the State Department, 29 percent; the Department of Education, 14 percent; and […]
The Fed has a choice to make, with enormous stakes on March 20, 2017Toward the end of 1942, Winston Churchill, in announcing a rare victory over the German army, uttered one of his more memorable phrases: “This is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.” The same might be said today of the American […]
Can Trump win his war on the regulatory state? on February 13, 2017President Trump pledges to dismantle much of the regulatory state – the amalgam of federal rules, directives and warnings that, aside from advancing many well-known policy goals, are also alleged to have reduced the competitiveness of the U.S. economy. His objective is to cut government regulation by about 70 percent. It will be a tough […]
Trumps senseless war on Mexico on February 6, 2017Let’s hope not, because a trade war triggered by President Trump would be an act of pure economic aggression, unjustified either by the United States’ economic and political interests or by Mexico’s behavior. It would be the economic equivalent of Russia’s seizure of Crimea, a raw exercise in bullying. Our interests here are plain. The […]
Why tax reform will be a slog on January 23, 2017Tax “reform,” starting with taxes on business, seems to be on everyone’s agenda, and it may be a place where the incoming Trump administration and its Democratic critics find common ground. But it’s still going to be a slog, and one reason is so-called pass-through businesses whose taxes are levied at personal income tax rates. […]
Trumps job jawboning may be good politics – but its not good economics on January 16, 2017Jawboning is back in style, courtesy of Donald Trump. Those with long memories will recall that “jawboning” is a term that became fashionable in the 1960s. It signified an effort by the government, usually the president, to persuade companies – through intimidation, bullying or shaming – to do what the president asked in the “national […]
Why are Macys and Sears in distress? on January 15, 2017We are in the throes of another round of what the economist Joseph Schumpeter memorably called “creative destruction.” Two icons of American business – Macy’s and Sears – are struggling. Macy’s plans to close 100 stores to improve profitability, and Sears has sold its Craftsman tools line for roughly $900 million to raise cash. Conceivably, […]