From Forbes, Brian Domitrovic highlights Donald Devine’s spending cuts during the Reagan era.
At The WSJ, Holman Jenkins diagnoses inequality obsession. In The WSJ, Stephen Moore notes the Senate vote on the Republican small business tax bill. On The Kudlow Report, Sen. Kay Bailey-Hutchison (TX) debates the plan:
The WSJexplains that yuan convertibility will require substantial financial liberalization in China.
From the Peterson Institute for International Economics, Nicholas Lardy argues that with its current account surplus down and its currency higher, there’s no cause to press China to raise the yuan further. And on the downside, The Washington Postreports PIIE chief Fred Bergsten making common cause with Occupy Wall Street. On TGSN, Ralph Benko highlights a pro-gold article by Princeton scholar and one-time Ben Bernanke collaborator Harold James. At The American, James Pethokoukis critiques arguments that the US should return to 1950s tax rates. From First Trust, Brian Wesbury suggests big government doesn’t make one any more secure from life’s risks. In The WSJ, US Trade Rep. Ron Kirk notes rising export of US services.
The WSJargues 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 NYTreports 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.
From Forbes, Brian Domitrovic explains how Reagan got gas prices to drop.
In The NY Sun, Ira Stoll notes this week’s tax competition conference in New York.
At Forbes, Robert Lenzner reports on the recent George W. Bush Presidential Center event on tax competition where panelists stressed the need for a four percent growth rate.
On The Kudlow Report, Stephen Moore rebuts the suggestion that Ronald Reagan would support the Buffett Rule:
Money News features Lew Lehrman on the need for a gold-linked dollar. At The American, James Pethokoukis formulates some genuine Reagan Rules for President Obama. In The WSJ, Brian Gaines and Douglas Rivers suggests most people oppose high tax rates on the rich. In Forbes, Janet Novack reports the widening gap between high and low tax states. From City Journal, Guy Sorman highlights a World Bank report on global economic liberalization and the decline of poverty. At Reason, Art Laffer discusses how to reform California’s economy:
From National Review, Jonah Goldberg worries that Mitt Romney favors business rather than free markets. Reuters reports Brazil’s President complaining to President Obama about US monetary policy. On TGSN, Ralph Benko recounts the monetary roots of Civil War Reconstruction.
From Forbes, Brian Domitrovic applauds Ben Bernanke for repudiating the Phillips Curve.
In Forbes, Charles Kadlec highlights the systemic risk created by the unstable dollar.
On The Kudlow Report, Larry Kudlow debates the dollar:
The NY Sunapplauds James Grant’s recent speech at the NY Fed. At Forbes, Ralph Benko wonders why politicians don’t learn from President Reagan. On International Liberty, Dan Mitchell speculates whether the President believes Bill Clinton was a social Darwinist. From Alhambra Partners, Joe Calhoun sees economic weakness ahead. At The WSJ, Ed Lazear notes the recovery’s unusually slow pace. From The Atlas Sound Money Project, George Selgin recounts the Federal Reserve’s history:
In The NYT, Bruce Bartlett analyzes budget gimmicks.
From NRO, Larry Kudlow sees Reagan emerging in Mitt Romney.
In USA Today, Romney says he would repeal Obamacare and outlines steps to reform the health system. At Forbes, Peter Ferrara applauds US Rep. Paul Ryan’s (WI) budget plan. On The Kudlow Report, a panel discusses the Ryan budget plan's cuts:
In an interesting analysis at PJ Media, David Goldman argues Rick Santorum is right to propose special help to manufacturers. In The WSJ, Stephen Moore reports on the five-way contest for Texas’s Republican Senate nomination. At RCM, Robert Tracinski underscores the Obama economy’s slow growth rate. The Beacon Center of Tennessee highlights Art Laffer’s new study on the state’s death tax. In The WSJ, Richard Katz suggests Japan has lost its edge in electronics. The National Interestremembers Robert Bartley’s legacy at The WSJ. The NYTnotes America’s declining reliance on exported oil. On Fox Business News, finance legend Robert Prechter argues the biggest risk to the economy is deflation:
Seeking Alpha advocates a demand-side revolution while mischaracterizing supply-side economics. At Fiscal Times, Bruce Bartlett critiques the Ryan budget plan.
From The WSJ, Bill McGurn argues Ronald Reagan looked like a sure-loser at this point in the 1980 campaign.
In The WSJ, Stephen Moore reports Rick Santorum’s argument that he is stronger than Mitt Romney in purple states. In Forbes, Charles Kadlec suggests government policy, not lack of regulation, caused the housing bubble. On The Kudlow Report, progressive Jared Bernstein argues Romney will repeat the trickle-down policies that led to recent years’ economic problems:
From Alhambra Partners, Joe Calhoun rebuts Ben Bernanke’s claim that the economy’s performance is not his fault. On The Street, Ralph Benko defends the gold standard from columnist Gary Weiss. At TGSN, Ralph Benko features Alan Greenspan’s never-published testimony from the 1981 US Gold Commission. Stateline reports Art Laffer’s success convincing states to reduce tax rates.
From the C-SPAN archive, US Rep. Jack Kemp (NY) announces his 1987 bid for President. Alan Reynolds comments, “Watch it and compare the current candidates to see what we have lost.”
In The NYT, Bruce Bartlett argues (correctly, IMO) that class warfare sentiment rises when, in recession, conservatives argue for cutting programs for the poor while refusing to raise tax rates on the wealthy. (Of course, the right answer isn’t raising taxes.)
The WSJsuggests Mitt Romney won in Michigan by focusing on the economy.
In The WSJ, Larry Lindsey rebuts Tim Geithner’s claim that the wealthy should pay more taxes for the privilege of living in America:
If you go further back to the pre-Reagan days, when the top tax rate was 70%, the story becomes even more dramatic. Under the four presidents of that era, the income share of the top 5% was 16.8% and their share of the income tax was 36%. In other words, the share of income received by the top 5% has risen 28% and their share of income taxes has risen 64%.
Stated differently, based on the data provided by the Census Bureau and the Internal Revenue Service, the relative tax burden of the top 5% of American earners compared with the remaining 95% has grown from roughly three-to-one prior to 1980 to almost six-to-one today.
At Forbes, Brian Domitrovic notes the half-heartedness of Tim Geithner’s corporate tax reform plan. In Congress, US Rep. Ron Paul (TX) grills Ben Bernanke on the true inflation rate:
From Alhambra Partners, Joe Calhoun sees inflation undermining the recovery. At The American, James Pethokoukis introduces the Krugman Curve to compete with the Laffer Curve. On Zero Hedge, Tyler Durden confirms Iran’s move to accept gold in place of dollars for oil. The Huffington Post reports the poor struggling with rising food prices. At RCP, Debra Saunders notes Newt Gingrich’s low gas price advocacy. On TGSN, Ralph Benko recounts creation of the First Bank of the US. At Grant’s Interest Rate Observer, James Grant suggests the price of gold for convertibility should be $2,500 (h/t: TGSN). On The Kudlow Report, former Fed Governor Kevin Warsh critiques Fed policy:
From The American, James Pethokoukis defends the Reagan economic miracle. In US News, Jeff Bell advocates social conservatism. At Forbes, Steve Forbes predicts war with Iran.
In Forbes, Ralph Benko chides Rick Santorum for opposing the gold standard.
From Bloomberg, Ramesh Ponnuru explains small business opposition to the President’s corporate tax reform plan. At Forbes, Charles Kadlec links the falling dollar to the rising oil price. On The Kudlow Report, House Majority Leader Eric Cantor (VA) discusses the Republican jobs act:
In The CSM, Stefan Karlsson warns against a Greek devaluation. From First Trust, Brian Wesbury doubts a stock market correction. In The Washington Times, Richard Rahn argues for Federal Reserve reform but stops short of supporting gold. At CNBC, John Carney suggests Reagan and Thatcher’s economic programs worked. USA Todayreports the President will create a trade enforcement bureau. From Reason, James Pethokoukis discusses anti-growth government policies.
At The American, Pethokoukis quotes Bruce Bartlett on the mainstreaming of supply-side economics. In The NYT, Bartlett analyzes corporate tax reform. At Modeled Behavior, Karl Smith suggests work incentives are altered until tax rates hit 70%.
From Forbes, Nathan Lewis contrasts Japan’s post-war economic turnaround with Greece’s current woes.
At Pajamas Media, David Goldman argues the President is standing between cash-hoarding companies and the unemployed. On National Review, Larry Kudlow urges Mitt Romney to focus on broad-based economic prosperity.
The WSJconcedes the January jobs report was good news for the President. On The Kudlow Report, James Pethokoukis discusses the jobs report’s impact on the presidential election:
At TGSN, Ralph Benko notes Alexander Hamilton’s role in America’s financial success. Bloomberg reports Fed Chairman Ben Bernanke saying he won’t tolerate higher inflation. In The WSJ, Stephen Moore suggests federal workers have better pay and benefits than their private sector equivalents. During The Super Bowl, Clint Eastwood plays off Reagan's "Morning in America" ad to advocate an American economic resurgence:
In The NYT, Christina Romer opposes special benefits for US manufacturers. The progressive Daily Kos denies supply-side economics’ role in the 1980s conquest of stagflation.
In The WSJ, Karl Rove urges Mitt Romney to focus more on big ideas.
At The American Conservative, Rod Dreher suggests Romney, Gingrich and Santorum are substantially similar to President George W. Bush, but omits dollar policy from his analysis. On NRO, Larry Kudlow scorns the President’s focus on redistribution rather than wealth. At International Liberty, Dan Mitchell compares the Reagan and Obama recoveries. On The Kudlow Report, David Malpass sounds optimistic about the market:
MarketWatch profiles gold advocate James Grant. In The WSJ, former Sen. Phil Gramm (TX) and Mike Solon compare the current recovery to the past. From Bloomberg, Amity Shlaes argues lower tax rates can raise revenues. AP features comedian Chris Rock arguing for higher taxes.
At Forbes, Louis Woodhill satirizes the President’s SOTU proposals. The Economistreviews Bruce Bartlett’s new tax reform book.
At TGSN, Ralph Benko notes The Royal Institute of International Affairs interest in the gold standard.
The People’s Daily (China) reports on a speech about currency instability and exchange rates by supply-side economics founder Robert Mundell.
On The Kudlow Report, US Rep. Ron Paul (TX) argues the Fed is still engaged in quantitative easing:
At The Weekly Standard, Charles Wolf, Jr. suggests the Keynesian model is wrong in theory.
From First Trust, Brian Wesbury examines the positive parts of the economy.
In The WSJ, Gerald P. O’Driscoll notes the financial links between the US and EU.
At The Washington Times, US Rep. Steve Stivers recommends reform of Dodd-Frank.
On Kudlow, US Reps. Jim Jordan (OH) and Charlie Rangel (NY) debate the economy and taxes:
From reader S. Rao:
I listened through Herman Cain and Rich Lowrie's presentations at AEI earlier this week and wanted to point out some Jude Wanniski influences in Lowrie's presentation. Video of the AEI Panel including Lowrie, here: (click on "A Panel Discussion . . .")
(at 26:35): Lowrie distinguishes the incidence and burden of a tax. Wanniski noted the same but in the capital gains context.
(at 32:54): Lowrie notes that the capital gains tax is a wall between those who have ideas and those with money. See the Wanniski-Laffer wedge model, here.
(at 33:29): Lowrie notes that productivity depends on the ratio of capital to labor. Wanniski used the analogy of a thick soup "Think of a pot of soup that has mixed in it labor and capital. If we add more capital, and stir it up, the soup becomes thicker, with a higher capital/labor ratio."
(at 36:24): In the context of the poverty portion of the 9-9-9 plan, Lowrie says it is obvious that to have general growth we "can't leave anyone behind"; and, in reverse, to address poverty, we must address general growth. A comparable point was made by Wanniski about Reagan in 1980. As President Reagan said in the "Good Shepherd" television commercial: "Those who have the least will gain the most. If we put incentives back into society, everyone will gain. We have to move ahead. But we can't leave anyone behind."
AP reports Fed Chairman Bernanke suggesting the economy is close to faltering.
The WSJblasts the President and Mitt Romney for supporting the China tariff.
The NY Sunnotes it is the US that has been manipulating its currency down, far more than China.
On The Kudlow Report, David Goldman discusses Italy’s debt downgrade:
From Forbes, Brian Domitrovic notes there’s plenty of room for bipartisan spending cuts, but the President goes for tax increases instead.
In The WSJ, John Taylor and John Cogan argue stimulus spending damages the economy and politicians’ re-election chances.
At IBD, US Rep. Peter Roskam (IL) advocates that capital gains and dividends tax rates remain at 15%.
Think Progress features a video linking President Obama’s call to close tax loopholes to President Reagan’s. Omitted is that Reagan’s loophole elimination plan included deep rate cuts, unlike Obama’s:
On Forbes, Ralph Benko reports on a recent Harvard Law School/Tea Party conference.
From Asia Times, David Goldman suggests the European debt mess will work itself out.
From Forbes, Brian Domitrovic notes the Federal Reserve’s dual mandate isn’t contradictory as a weak dollar coincides with higher unemployment. In The WSJ, David Malpass critiques the Fed’s updated Operation Twist:
The modern version [of the Twist] would probably be even less effective since markets are expecting it. The Fed's idea is that the private sector will go looking for riskier and longer duration assets to make up for the bonds the Fed bought. But the evidence is clear that this isn't working: The Fed's near-zero interest rate policy and its huge overhang of bonds create uncertainty. This hurts small-business confidence and discourages job growth.
The twist from the second round of quantitative easing (QE2) contributed to the sharp economic slowdown in the first half of 2011 when the Fed was buying $70 billion in bonds per month. The more it bought, the slower the economy grew as the twist sucked capital from savers and small businesses to the government. The Fed has conducted a controversial experiment with near-zero interest rates and massive bond purchases. These policies have hurt growth and added to unemployment by distorting financial markets.
At CNN, President Clinton argues Republican policies do not create prosperity:
The NYTreports the Republican congressional leadership opposing additional Federal Reserve stimulus.
On The Daily Ticker, Steve Forbes predicts Rick Perry will beat President Obama.
From Alhambra Partners, Joe Calhoun dissects public opinion on taxes and spending.
In The WSJ, Jonathan Anderson explains why China is still a financial midget despite its fast growth:
The bigger problem is that China can't open its capital regime, at least not fast enough to matter. For more than two decades, China's philosophy of monetary management and financial development has been based on a closed-economy system: maintaining low and stable interest rates without having to worry about external arbitrage, breezily adopting economic stimulus when needed without concern about the banking system's asset quality, propping up banks with historically high nonperforming loan ratios and fixed-cost pricing, and keeping iron-clad control over the exchange rate. All of these only work when foreign portfolio funds cannot influence asset prices, and when locals have nowhere else to go.
While China's GDP may be 10 times larger than it was in 1995, its external capital controls are still similar to what they were back then. China has opened a few windows at the margin, but it has never seriously opened the doors. If anything, the financial crises of 1997-98 and 2008-09 have taught the authorities to be as slow as possible in making adjustments.
Even if China were to remove external controls, this still leaves the lack of deep domestic markets. Put simply, there's nothing to invest in. You need a local bond market, and China doesn't have one. Relative to its size, China has a much less mature fixed-income market than most of its major emerging-market peers.
On The Street, Phil Streible notes the correlation between rising gold prices and the President’s declining poll numbers:
Bloomberg reports Robert Mundell advocates Serbia fix to the euro in preparation to entering the eurozone.
At Fox Business News, conservative Keynesian Martin Feldstein discounts the President’s economic plan.
The WSJcriticizes US Rep. Barney Frank’s (MA) proposal to reduce Fed independence.
From 1980, candidate Reagan debates President Carter on the economy and inflation.
At COAL, Paul Krugman amplifies his argument that the economy is in a liquidity trap.
From Bloomberg, Robert Mundell says a Greek debt default would trigger a “monstrous” run on banks, that no nation should leave the eurozone, and that the Fed and ECB should enact a $1 trillion swap facility to prevent a dollar shortfall.
Dow Jones reports the dollar rising, with the euro down to $1.38 from $1.45 in recent days.
Politiconotes the opposition to Fed Chairman Ben Bernanke at the GOP debate.
Bloomberg reports a surprise cut in Brazil’s interest rate despite 7.2% inflation.
At The WSJ, Joseph Sternberg and Abheek Bhattacharya discuss the weak dollar’s role in Korea’s rising inflation:
The WSJreports on two new studies of why the stimulus failed.
In Asia Times, David Goldman criticizes the small business payroll tax cut.
In The WSJ, Michael Boskin argues the President’s response to the crises he inherited has been poor.
On The Kudlow Report, Larry Kudlow discusses the President’s jobs speech:
At RCM, John Tamny defends China’s economic strategy.
The WSJanalyzes Mitt Romney’s 59-point economic plan.
Also in The Journal, Paul Gigot critiques the Romney proposal.
From earlier this month, The NY Sunnotes an excellent interview with James Grant on gold.
In Forbes, Jerry Bowyer suggests that while imperfect, gold is the best monetary barometer.
TGSN features Ronald Reagan’s TV ad supporting a return to the gold standard:
At COAL, Paul Krugman denies that gold is sending inflationary signals.
Also on COAL, Krugman attacksThe WSJ editorial page’s economic predications.
