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Tax Competition: A Necessary Liberalizing Process to Discipline the “Stationary Bandit” of Government

Mancur Olson (1932-1998) was a great economist who came up with a very useful analogy to help explain the behavior of many governments. He pointed out that a “roving bandit” has an incentive to maximize short-run plunder by stealing everything from victims (i.e. a 100 percent tax rate), whereas a “stationary bandit” has an incentive […]

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What Can We Learn When the Pro-Tax Hike Crowd Says “Oops”?

I don’t like tax increases, but I like having additional evidence that higher tax rates change behavior. So when my leftist friends “win” by imposing tax hikes, I try to make lemonade out of lemons by pointing out “supply-side” effects. Such as the big drop in soda purchases after a tax on sugary drinks was […]

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Obama Dismal but Forgettable Legacy

President Obama gave his farewell speech last night, orating for more than 50 minutes. As noted by the Washington Examiner, his remarks were “longer than the good-bye speeches of Ronald Reagan, Bill Clinton and George W. Bush combined.” But this wasn’t because he had a lengthy list of accomplishments. Unless, of course, you count the […]

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In One Story, Everything You Need to Know about Big Government and Small Business

All things considered, I like small businesses more than big businesses. Not because I’m against large companies, per se, but rather because big businesses often use their political influence to seek unearned and undeserved wealth. If you don’t believe me, just look at the big corporations lobbying for bad policies such as the Export-Import Bank, […]

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Donald Trump’s Very Good and Very Bad Business Policy

For the next four years, I suspect I’m going to suffer a lot of whiplash as I yank myself back and forth, acting as both a critic and supporter of Donald Trump’s policy. This happened a lot during the campaign, as Trump would say very good things one day and then say very bad things […]

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The Negative Macroeconomic Impact of Overpaid Bureaucrats

Last year, I shared some remarkable research from the Organization for Economic Cooperation and Development about the negative relationship between government spending and economic performance. The economists at the Paris-based bureaucracy looked at data from its member nations (primarily Europe, North America, and the Pacific Rim), discovered that the countries with bigger government experienced less […]

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