Tuesday items: Palast bashes Mundell; The Economist on US immigration policy; Kadlec on jobs lost to government policy.

From The Guardian (UK), Greg Palast lambasts "evil genius" Robert Mundell for his euro scheme to force government downsizing.

The Economist reports that America’s competitors do more to welcome entrepreneurial immigrants.

At Forbes, Charles Kadlec analyzes the number of jobs lost due to government policy.

On The Kudlow Report, Gordon Chang of Forbes sees trouble for China’s economy:

At NRO, Larry Kudlow highlights Marco Rubio’s defense of low taxes.

From Alhambra Partners, Joe Calhoun wonders if economic doomsaying has gone too far.

At RCM, John Tamny argues government spending hurts economic growth.

From First Trust, Brian Wesbury hopes the Supreme Court will roll back Obamacare.

On Reason, Steve Chapman argues the Fed is choking the economy with tight money.

From the Heartland Institute, Bret Swanson discusses the federal government’s mishandling of the wireless spectrum.

On Salon, Andrew Leonard uses Bloomberg's report on state income taxes to bash Art Laffer.

In The NYT, Bruce Bartlett tries to talk Republicans into supporting spending stimulus.

Monday round up: Henderson on Krugman; Mundell on a Greece exit; Forbes on Europe.

From Econlog, David Henderson rebuts Paul Krugman’s claim that Reaganomics was explained by the Keynesian economic model.

NASDAQ reports Robert Mundell handicapping a Greek euro exit at 25%.

On The Kudlow Report, Steve Forbes opposes Europe’s tax-hike austerity:

The WSJ wonders if the new Greek government will be better than what’s come before.

The Washington Post reports negative economic impact from Alabama’s illegal immigrant crackdown.

The WSJ examines the US visa shortage for high-skill immigrants.

From Foreign Policy, Fred Bergsten laments China’s refusal to follow Japan down the currency appreciation sink hole.

At Dissident Voice, Robert Zuniker attacks supply-side economics without mentioning stable money.

The Burlington Free-Press satirizes supply side economics:

Tuesday items: Domitrovic on the SSE policy mix; Laffer and Moore on spending; Mundell advises China.

From Forbes, Brian Domitrovic rebuts Howard Gold’s attack on supply-side economics by noting the centrality of stable money to the policy mix.

In The WSJ, Art Laffer and Stephen Moore argue government spending is causing the economy’s weakness.

At China Radio International, Robert Mundell encourages China to ease monetary policy and to boost domestic expenditure and consumption.

On The WSJ, Steve Hanke responds to Paul Krugman on Estonia’s economy:

In The Washington Times, Richard Rahn doubts that monetary policy can restore the economy.

From Alhambra Partners, Joe Calhoun urges Ben Bernanke not to enact QE3.

In The WSJ, Stephen Moore notes the President’s declining poll numbers among white voters.

The Richmond Times-Dispatch interviews Art Laffer.

At Café Hayek, Russ Roberts challenges E.J. Dionne’s claim that government spending creates jobs.

On CBS, Paul Krugman defends the President’s focus on public sector jobs:

CNN Money reports family net worth plummeted 40% from 2007-2010.

Weekend edition: Mundell on the euro; Lewis on gold; Malpass on the market.

From The Financial Post (Canada), supply-side guru Robert Mundell sees a bright future for the euro, but blames excessive spending and unstable exchange rates for the Eurozone’s current troubles.

Also on The Financial Post, Terry Corcoran supports Mundell’s analysis.

At Forbes, Nathan Lewis suggests a dual currency system featuring gold for nations outside the major currency zones.

On The Kudlow Report, David Malpass discusses the markets:

At The American, James Pethokoukis responds to Paul Krugman’s claims that government spending led to the Reagan boom.

The WSJ highlights the President’s disastrous press conference remarks on the economy.

At China Daily, Mundell applauds the People’s Bank of China for lowering interest rates.

On CNBC, James Grant notes the Fed’s shrinking balance sheet.

The WSJ criticizes Ben Bernanke for opposing spending cuts, but applauds his rejection of tax increases.

From Forbes, Peter Ferrara compares the Obama economy to Argentina.

In The WSJ, Stephen Moore reports Democratic nervousness about Taxmageddon.

At Newsmax, Steve Forbes advocates tax cuts rather than bailouts to revive Europe.

IBD notes the President of Estonia’s response to Paul Krugman’s dismissal of its economic success.

From The Sun News Network, David Goldman doesn’t see a way to keep the weak nations in the Eurozone:

On Fiscal Times, Bruce Bartlett notes the decline and fall of organized labor.

From Market Watch, Harold Gold uses the Bush tax cuts to declare supply-side economics false.

From the archive, here’s my assessment of the Bush tax cuts.

On TGSN, Jon Decker reports the past use of vodka as a currency in Russia.

Tuesday items: Reynolds rebuts Summers; Calhoun on deflation; Domitrovic on the President.

From Cato, Alan Reynolds responds to Larry Summers’ call for more government spending.

At Alhambra Partners, Joe Calhoun sees the dollar bouncing back and forth between inflation and deflation. For the record, here’s my column of last year on Robert Mundell’s similar view.

On Forbes, Brian Domitrovic critiques the President for doing nothing that would improve the economy.

The Daily Caller interviews Steve Forbes on Mitt Romney’s record at Bain Capital:

At RCM, John Tamny suggests fear of QE3, not bad unemployment numbers, is responsible for the market’s decline.

From The Atlas Sound Money Project, Devin Roundtree argues QE3 is already underway.

At Forbes, Charles Kadlec critiques the President’s economic policies.

In The WSJ, Robert Barro analyzes the economy’s malaise.

From The Washington Times, Richard Rahn covers efforts to impose global taxes.

In The WSJ, Roger Lowenstein reviews a book on the depression of 1837.

Monday items: Nisen on Mundell and the euro; Goldman on Europe; Kudlow on the Fed.

From Business Insider, Max Nisen suggests Robert Mundell’s “A Theory of Optimum Currency Areas” predicted the eurozone’s troubles.

On PJ Media, David Goldman explains the startling disjunction between Germany and the weaker eurozone nations.

In The WSJ, George Melloan analyzes the Fed’s current commitment to openness.

On The Kudlow Report, Larry discusses whether the Fed will pump dollars into Europe:



At The WSJ, Stephen Moore reports the signing of the largest tax cut in Kansas history.

Also in The Journal, Moore notes Oklahoma Republicans blocking the state’s tax cut.

At The Washington Times, Richard Rahn links economic weakness and higher spending.

From Bloomberg, Ramesh Ponnuru suggests the US lower its trade barriers unilaterally.

Weekend edition: Fingelton on Mundell; Benko on the GOP and gold; Woodhill on England's Conservatives.

From Forbes, Eamonn Fingleton reports on a Robert Mundell speech on the future of the world currency arrangements.

In Forbes, Ralph Benko urges Republicans to promote monetary reform to help the working class.

At Forbes, Louis Woodhill lashes British conservatives for focusing on tax fairness rather than growth.

On Fox Business, John Tamny argues small investors shouldn’t be included in IPOs:



In The Weekly Standard, James Pethokoukis advocates breaking up large banks.

At New World Economics, Nathan Lewis analyzes the gold exchange standard.

The NY Sun advises Mitt Romney to co-opt US Rep. Ron Paul’s monetary views.

In The WSJ, Stephen Moore handicaps Ted Cruz’s chances in the Texas Senate primary.

From Real Time with Bill Maher, Art Laffer debates Paul Krugman (at 16:30):



At COAL, Krugman critiques Laffer’s past predictions.

In The NY Sun, Ira Stoll reviews a book on United Fruit Company.

Weekend edition: Ferrara on unemployment; Jolis on Sweden; Mundell in China.

From Forbes, Peter Ferrara argues the true unemployment rate is 11%.

In The WSJ, Anne Jolis notes the success of Sweden’s tax cuts and labor reforms.

On The Kudlow Report, Don Luskin discusses the G-8 Summit:



China Daily reports Robert Mundell discussing the complementarity of Taiwan and Fujian.

On Bloomberg, Caroline Baum challenges Paul Krugman on the debt.

From Financial Sense, Steve Forbes advocates free markets and gold.

At The WSJ, Stephen Moore highlights Nebraska’s GOP primary for the US Senate.

Monday items: Cain advocates gold; Snow on Taxmaggedon; Goldman on the dollar rise and market slump.

From The WSJ, Herman Cain argues for a dollar as good as gold.

In The WSJ, John Snow highlights the danger of Taxmaggedon.

On The Kudlow Report, David Goldman discusses the rising dollar and market slump:



The China Times reports Robert Mundell advocating a world currency.

From Forbes, John Tamny applauds a Facebook founder for renouncing his US citizenship.

Stephen Moore notes the Obama Administration’s opposition to coal.

At The WSJ, James Freeman suggests JP Morgan’s investment losses didn’t violate any rules.



In The NY Sun, Ira Stoll reports support for Mitt Romney from smaller financial firms.

Weekend edition: The WSJ on the Buffett Rule; Heritage on Taxmageddon; Laffer on state tax competitiveness.

The WSJ argues the Buffett Rule will reduce federal tax revenue.

Heritage highlights the Taxmageddon coming in 2013.

From NRO, Larry Kudlow clarifies the Reagan record on tax hikes such as the Buffett Rule.

At The WSJ, Mary Anastasia O’Grady discusses Reagan’s tax record:



ALEC releases Art Laffer’s state index of state economic competitiveness.

From The American Spectator, Peter Ferrara and Stephen Moore oppose using equality to make tax policy.

At Forbes, Louis Woodhill laments Spain’s tax increases on top of an already weak economy.

NPR features Robert Mundell suggesting Iceland may do well to replace the krona with a large nation’s currency.

On Hardball, Stephen Moore debates tax policy:



The NYT reports an initiative to make diamonds an investment commodity like gold.

In The WSJ, Stephen Moore notes the President’s opposition to the DC school voucher program for low-income kids.

At Forbes, John Tamny wonders why so many conservatives supported Rick Santorum.

On MSNBC, Steve Forbes discusses Mitt Romney’s chances versus President Obama.



On Bloomberg, Mundell explains how to accept a Nobel Prize.

Wednesday round up: Moore and Kudlow applaud the Ryan plan; Bernanke opposes the gold standard; Domitrovic rebuts Romer on supply-side economics.

US Rep. Paul Ryan (WI) advocates his budget and tax plan:



In The WSJ, Stephen Moore applauds Ryan’s proposal.

On NRO, Larry Kudlow emphasizes the Ryan plan’s supply-side tax cuts.

Reuters reports Federal Reserve Chairman Ben Bernanke criticizing the gold standard.

The NY Sun responds to Bernanke.

On CNBC, Larry Kudlow discusses Mitt Romney and Bernanke’s remarks:



In Forbes, Brian Domitrovic rebuts Christina Romer’s critique of supply-side economics.

On Bloomberg, Robert Mundell advocates greater US fiscal discipline.

At Fitsnews, Ralph Benko reports South Carolina’s consideration of gold and silver as legal tender.

From First Trust, Brian Wesbury highlights the Fed’s move away from QE3.

At a press conference, US Rep. Eric Cantor (VA) announces the House Small Business Tax Cut Act to provide a tax deduction equal to 20% of their active business income.



Rush Limbaugh applauds Mitt Romney’s more pugnacious economic message but wonders if he means it (h/t: Jerry Bowyer).

From Business Insider, Joe Weisenthal argues the eurozone’s problems stem from the euro’s similarity to the gold standard. He fails to consider that under an international gold standard, the euro would not be pushed so high by the low dollar.

On Forbes, John Tamny suggests the blockbuster Hunger Games book and film is an anti-government parable.

Thursday items: Wesbury rebuts pessimists; Woodhill assesses Ted Cruz; Shelton talks sound money.

From First Trust, Brian Wesbury rebuts market bears.

On Forbes, Louis Woodhill assesses the economic plan of Senate candidate and “Great Conservative Hope” Ted Cruz (TX).

From Atlas Foundation, Judy Shelton discusses sound money, Bretton Woods, her idea for Treasury Trust Bonds, and Robert Mundell's euro:



In The WSJ, Joseph Sternberg predicts rare-earth elements will be cheap and plentiful in future.

From Bloomberg, Amity Shlaes doubts the Fed’s idea of controlled, modest inflation.

TGSN features CPAC video of John Mueller, Jeffrey Bell and James Grant discussing the gold standard:



On NPR, supply-sider Jeff Bell highlights the importance of social issues to key segments of the electorate.

Tuesday summary: Domitrovic on the weak dollar; Stoll on interest rates; Tamny on China's trade deficit.

From Forbes, Brian Domitrovic explains the weak dollar caused the real estate bubble.

In The NY Sun, Ira Stoll notes the problems for savers with zero interest rates.

At RCM, John Tamny suggests there’s nothing wrong with China’s new trade deficit.

On The Kudlow Report, John Rutledge discusses the US’s tough trade stance towards China:



At TGSN, Ralph Benko highlights Jacques Rueff’s analysis of the monetary errors that led to the Great Depression.

In The Washington Times, Richard Rahn argues the world economy’s future is bearish.

From Alhambra Partners, Joe Calhoun expresses pessimism about the economy.

At Hindu Business Line, G. Ramachandran links Robert Mundell’s euro to the Roman Empire.

On The WSJ, Paul Gigot discusses Newt Gingrich’s prospects in the southern primary states:



On Econlog, David Henderson disputes Louis Woodhill’s analysis of gold and oil.

In The NYT, Bruce Bartlett advocates higher tax rates to raise more revenues.

Thursday summary: The WSJ, Mitchell and NR on Romney; Woodhill on gas prices; Mundell on the Canadian dollar.

The WSJ applauds Mitt Romney’s tax cut proposal.

On International Liberty, Dan Mitchell notes Romney’s Keynesian view of spending cuts.

National Review’s editors give two cheers to Romney’s tax reform but fault it for not expanding the child tax credit.

The WSJ pans the President’s corporate tax rate cut.

At Newsmax, Steve Forbes calls the President’s corporate tax reform a “house of horrors.”

On The Kudlow Report, Steve Forbes and James Pethokoukis discuss Rick Santorum’s debate performance:



From Forbes, Louis Woodhill explains that gas prices are not rising, the dollar is falling.

Bloomberg quotes Robert Mundell on the negative trade impact of Canada’s strong dollar.

At Free Banking, George Selgin rebuts James Hamilton’s claim that the gold standard caused the 19th century’s frequent financial panics. (h/t: TGSN)

At NRO, Larry Kudlow notes the President’s embrace of Republican energy policy.

From RCM, John Tamny examines long-term deficit spending.

At Bloomberg, Amity Shlaes argues income tax rate cuts are superior to payroll tax rebates.

On CNBC, David Goldman analyzes oil’s price increase:



The Washington Post quotes Steve Forbes saying Rick Santorum should stop talking about Satan.

Citywire (UK) notes rising belief that central bankers are to blame for the 2008 financial crisis.

The Telegraph (UK) reports discovery, by a former student of Steve Hanke’s, of the Bretton Woods conference’s transcript.

At TGSN, Ralph Benko recounts the Constitution’s sound money roots.

In The Washington Times, Sen. John Kerry (MA) praises classical thinker Robert Zoellick’s World Bank leadership.

From Reason, a Thatcher contemporary remembers her tremendous accomplishments:



At US News, conservative Scott Galupo pans Romney’s embrace of supply-side economics.

On The Daily Show, Bruce Bartlett attacks Republicans for advocating tax cuts.

Why didn't the Bush tax cuts work?

A frequently asked question is if tax cuts are so economically positive, why did the economy collapse following the Bush tax cuts? Here's my view of the proper supply-side answer:

1) The 2001 Bush tax cuts were largely consumption-oriented rebates and credits that did little to incentivize new economic production.

2) The 2003 tax cuts were on the supply side, meaning oriented towards lowering the penalty on additional work and investment, and they did improve the economy. Growth accelerated from 2003-2007, unemployment fell rapidly, and despite high federal spending the budget deficit shrank as a percentage of GDP.

3) Unfortunately, at the same time US monetary authorities were pursuing a weak dollar policy which encouraged investors to shunt capital into hedges like gold, oil and real estate. The effect was: A) reduced investment in the productive economy; and B) soaring prices in commodities and real estate, the latter of which became a bubble that burst in summer 2007.

4) As supply-side eminence grise Robert Mundell has explained repeatedly, almost a year after the apex of the mortgage crisis, Ben Bernanke's Federal Reserve compounded the damage by suddenly tightening* money, causing the dollar to soar 30% in three months, the largest such appreciation in such a short time in peacetime history. Tight money sent the over-leveraged economy into a liquidity crunch, crashed the financial system, and broke the economy's back.

5) Since then, the dollar has see-sawed back and forth by wide margins, creating elements of both deflation (tight credit, low interest rates, generally moderate CPI) and inflation (high commodity prices), ensuring continued economic malaise. Combined with pending tax increases and additional costs associated with Obamacare and added regulation, it is an inhospitable climate in which to take economic risks. Investors and entrepreneurs are sidelined.

6) The bottom line is: supply-side tax rate cuts work, but not in a vaccum. The supply-side policy mix requires tax cuts and a stable dollar. The last decade proved Art Laffer's maxim that in terms of economic impact, if regulation is a one, tax cuts are a 10, and monetary policy is a 100. Get money wrong and you're sunk, no matter how good your fiscal policy.

*Note: tightening in this case refers to ceasing to loosen at the expected pace. From May to September 2008 the Fed paused its fast rate cuts at 2%, catching markets by surprise and leading to a mad scramble for cash. The dollar soared and gold plummeted. Bernanke may have paused due to CPI rising to 5.5% and oil hitting $140/barrel.

Wednesday items: Newt proposes gold commission; Domitrovic on Romney at Bain; Jenkins on the financial meltdown.

Big news: The Weekly Standard reports Newt Gingrich advocates a gold commission:



The WSJ argues Mitt Romney should use news of his 15% tax rate to argue for fundamental tax reform.

At Forbes, Brian Domitrovic explains the economic context of Romney’s work at Bain Capital.

On The Kudlow Report, James Pethokoukis discusses Gingrich’s rise in the polls:



At RCM, John Tamny suggests Ben Bernanke was right in 2006 for wanting the Federal Reserve to let the mortgage market unwind.

In The WSJ, Holman Jenkins examines the causes of the 2008-09 financial meltdown, but omits Robert Mundell’s claim that the rapid 30% dollar appreciation in summer 2008 was the central factor.

On The Daily Beast, David Frum defends the 15% capital gains rate.

Futureofcapitalism rebuts The NYT on the capital gains tax rate.

On The Mike Rosen Show, Cato’s Alan Reynolds critiques Ronald McKinnon’s call for a wealth tax.



At IBD, Walter Williams notes the inequality of wealth creation as opposed to income.

From Fox News, David Pietrusza cites Calvin Coolidge on marginal tax rates:

If we had a tax whereby on the first working day the Government took 5 per cent of your wages, on the second day 10 per cent, on the third day 20 per cent, on the fourth day 30 per cent, on the fifth day 50 per cent, and on the sixth day 60 per cent, how many of you would continue to work on the last two days of the week?

From Alhambra Partner, Joe Calhoun worries at bullish sentiments.

At TGSN, Ralph Benko argues mismanagement of the gold standard led to the Great Depression.

On NRO, Jim Manzi considers how to cut marginal tax rates on the poor.

In The WSJ, actor Rick Moranis satirizes modern economic theories.

Holiday week round up: Gingrich adopts a strong supply-side agenda and Laffer endorses; Ferrara on the President's Osawatomie, KS speech; Domitrovic on the Fed's third mandate.

From The WSJ, Newt Gingrich outlines his supply-side agenda including monetary reform:

Second, the dollar needs to be stabilized by establishing a price rule for the Federal Reserve to follow in its conduct of monetary policy. This will help stabilize international exchange rates, resolve the ongoing cycles of global financial crises and investment bubbles, short-circuit the run-up in gas and food prices, and unlock the frozen credit system.

On The Kudlow Report, Gingrich discusses his plan:



Human Events reports Art Laffer and Michael Reagan endorsing Newt Gingrich’s supply-side plan.

At Forbes, Steve Forbes argues President Obama will be a one-term president.

From Forbes, Peter Ferrara critiques the President’s attack on supply-side economics.

On Fox News, Laffer discusses his support for Gingrich:

 

From Forbes, Brian Domitrovic suggests the Federal Reserve has a third, secret mandate to fund the government’s debt.

On CNBC, John Carney cites Jude Wanniski’s Two-Santa Theory to criticize Republican handling of the payroll tax holiday.

At IBD, Walter Williams rebuts China bashers.

From Human Events, Larry Kudlow profiles US Rep. Paul Ryan (WI) as man of the year.

At Forbes, Bret Swanson critiques the Obama Administration’s focus on increasing consumption.

On Kudlow, Steve Forbes discusses the GOP race:



From TGSN, Larry White explains how to transition to a gold-linked dollar.

In The WSJ, Robert Guest outlines the positive contribution high-skill immigrants make to the US economy.

On Forbes, Louis Woodhill suggests the payroll tax holiday is bad for the economy.

At TGSN, Ralph Benko quotes Isabel Patterson on Isaac Newton’s role in defining the British pound as a weight of gold.

On The Larry Parks Show, The American Principles Project’s Sean Feiler discusses the weak dollar’s role in workers’ declining wages.

From Bloomberg, Robert Mundell applauds the ECB’s recent monetary expansion:


The WSJ profiles Gov. Romney, noting possible support for a Value Added Tax.

At TGSN, Ralph Benko wishes the Federal Reserve happy birthday.

In The WSJ, Stanford’s John Taylor argues for tax rate stability.