Tuesday summary.

On NRO, Larry Kudlow explains that continued volatility between the dollar and euro is damaging the world economy.

At Forbes, Brian Domitrovic recounts how Sen. George Mitchell derailed George H.W. Bush’s drive for a capital gains tax cut in favor of higher taxes, dooming Bush’s presidency.

On The Kudlow Report, Heritage’s Curtis Dubay debates tax rates:




In The WSJ, Seth Lipsky reviews Nixon Fed chairman Arthur Burns’ diary.

At Alhambra Investments, Joseph Calhoun expresses cautious optimism on the economy.

Also on Kudlow, Brian Wesbury discusses the stock market’s weakness:




In Forbes, Wesbury and Robert Stein see the economy improving.

On NRO, Reihan Salam explains the negative budget impact of raising upper income tax rates.

NRO’s editors cite Art Laffer in opposing Sen. McCaskill’s (MO) millionaire tax rate increase.

The economic facts are a good deal more complicated. As the always-sensible Reihan Salam reports in the current edition of National Review, economists expect that raising taxes at the top end would reduce economic growth significantly. Democrats will call that a Republican talking point, but it is consistent with the findings of the nonpartisan Congressional Budget Office, currently under the management of Douglas Elmendorf, a Democratic appointee. The CBO numbers suggest that a partial preservation of the Bush tax rates — meaning a compromise that raises taxes on “the rich,” in this instance defined as those earning $250,000 or more — would reduce real GNP by 1.2 percent, as lower revenue necessitates more government borrowing, slowing down long-term economic growth. But an across-the-board extension would reduce real GNP by only 0.6 percent, cutting the economic losses in half. Another way of saying that is that the growth effects of extending the tax cuts at the affluent end of the scale would make up half of the forgone real GNP associated with the tax cuts. That isn’t Arthur Laffer’s analysis, it’s the Democratic-led CBO’s.

From the Mises Institute, Frank Shostak rebuts Nouriel Roubini on the gold standard. (Hat tip: Ralph Benko.)

At Capital Gains and Games, Bruce Bartlett continues to drift from classical economics by endorsing floating currencies.

Weekend round up.

Progressive James K. Galbraith explains the recession caused the high deficit.

Jon Stewart features Keynesian Nouriel Roubini arguing unemployment insurance is stimulative, while Stephen Colbert interviews Paul Krugman on austerity.

Fareed Zakaria praises Britain's spending cuts and tax increases.

Keynesian Joe Lazzaro believes supply-side economics has failed.

From the archives, Paul Craig Roberts discusses the breakdown of the Keynesian model.

Kati Suominem assesses the state of the dollar.

The Weekly Standard's Fred Barnes advises the GOP to follow Paul Ryan's policy road map.

Liberal Robert Reich argues income inequality caused the financial crisis.

CNN's Rick Sanchez mocks opponents of raising taxes on the rich.

The NY Times sees Turkey as a rising economic power.

Tuesday round up.

Brian Wesbury and Robert Stein think the yuan's separation from the dollar is positive.

In essence, China is saying it thinks its currency will do a better job than the U.S. dollar of retaining its value over time. Put another way, China is committed to having lower inflation than the U.S. and China seems willing to deal with the natural consequences of that strategy, which is a currency that gains value.

David Goldman discusses the yuan's float on The Kudlow Report.

Larry Kudlow examines current political and economic events.

John Tamny critiques Nouriel Roubini's economic model.

David Malpass debates higher taxes on the rich.

Joseph Y. Calhoun of Alhambra Investments sees the weak dollar as damaging confidence.

At the Library of Economics and Liberty, David Henderson assesses the Laffer Curve.

Columnist Jim Pethokoukis compares the current OMB director to David Stockman.

Keynesian William Greider worries about cutting spending.