Economic Thoughts 2023 01 08

Deficit spending is stimulative to economic growth: raising taxes on business and higher interest rates are a disincentive to economic growth.  Doing both at the same time is incoherent and a recipe for stagnation. If there is a tradeoff between a recession and...

The New Normal is the Same as the Old Normal

From Marc Levinson at The Wall Street Journal, Why the Economy Doesn’t Roar Anymore: Historically, boom times are the exception, not the norm. That isn’t true just in America. Over the past two centuries, per capita incomes in all advanced economies, from Sweden...