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The Six Most Important Takeaways from CBO’s New Long-Run Fiscal Forecast

The Congressional Budget Office has just released the 2016 version of its Long-Term Budget Outlook. It’s filled with all sorts of interesting data if you’re a budget wonk (and a bit of sloppy analysis if you’re an economist). If you’re a normal person and don’t want to wade through 118 pages, you’ll be happy to […]

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A Semi-Acceptable Indirect Bailout for Puerto Rico?

I wrote last year about why Puerto Rico got into fiscal trouble. Like Greece and so many other governments, it did the opposite of Mitchell’s Golden Rule. Instead of a multi-year period of spending restraint, it allowed the budget to expand faster than the private sector for almost two decades. As the old saying goes, […]

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Trump, Debt, Taxes, and Inflation

I have no idea whether Donald Trump believes in bigger government or smaller government. Higher taxes or lower taxes. More intervention or less. Sometimes he says things I like. Sometimes he says things that irk me. Politicians are infamous for being cagey, but “The Donald” is an entirely different animal. Instead of using weasel words […]

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Economic Lesson from Europe for Hillary: Higher Tax Rates Are a Recipe for More Red Ink

We can learn a lot of economic lessons from Europe. Never adopt a VAT unless you want much bigger government. Bigger government means lower living standards. Don’t believe Bernie Sanders about the Nordic nations. Today, we’re going to focus on another lesson, which is that higher taxes lead to more red ink. And let’s hope […]

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Debt, Bubbles, and Reckless Government

As a general rule, I’m not overly concerned about debt, even when looking at government red ink. I don’t like deficit and debt, to be sure, but government borrowing should be seen as the symptom. The real problem is excessive government spending. This is one of the reasons I’m not a fan of a balanced […]

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Demographics + Entitlements = Europe’s Doom

The most depressing data about America’s economy is not the top tax rate, the regulatory burden, or the level of wasteful of government spending. Those numbers certainly are grim, but I think they’re not nearly as depressing as America’s demographic outlook. As you can see from this sobering image, America’s population pyramid is turning into […]

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