Fewer People Working Means Permanently Lower Tax

Our Estimates Suggest That A Tax Increase Of 1 Percent Of Gdp Reduces Output Over The Next Three Years By Nearly 3 Percent. The Effect Is Highly Significant.

There's A Joke In Economics About The Drunk Who Loses His Keys In The Street But Only Looks For Them Under The Lightposts. When Asked Why, He Says, 'because That's Where The Light Is.' That's The Problem With The Deficit.

Raising The Minimum Wage, As President Obama Proposed In His State Of The Union Address, Tends To Be More Popular With The General Public Than With Economists.

A Successful Argument For A Government Manufacturing Policy Has To Go Beyond The Feeling That It's Better To Produce 'real Things' Than Services. American Consumers Value Health Care And Haircuts As Much As Washing Machines And Hair Dryers.

In The Four Decades After World War Ii, Manufacturing Jobs Paid More Than Other Jobs For Given Skills. But That Is Much Less True Today. Increased International Competition Has Forced American Manufacturers To Reduce Costs. As A Result, The Pay Premium For Low-skilled Workers In Manufacturing Is Smaller Than It Once Was.