Free Republic

If you want to know why the left is wrong about income inequality, you need to watch this Margaret Thatcher video. In just a few minutes, the “Iron Lady” explains how some – perhaps most – statists would be willing to reduce income for the poor if they could impose even greater damage on the rich. This picture is another way of getting across the same point. It was sent to me by Richard Rahn (famous for the Rahn Curve), and it uses two pizzas to show how leftist policies would “solve” inequality. I like this analogy, and not just...

The majority of economists surveyed by the National Association for Business Economics believe that the federal deficit should be reduced only or primarily through spending cuts. The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and tax increases. The remaining 7 percent believe it should be done only or mostly through tax increases. As for how to reduce the deficit, nearly 40 percent said the best way would be to contain Medicare and Medicaid costs. Nearly a quarter recommended overhauling the tax system...

The British government is spending 50 per cent of GDP, but taking just 40 per cent in taxes. The coalition’s aim is to close that gap over the next five years (still leaving a massive accumulated debt, by the way), partly by raising taxes and partly by cutting spending. The hope is that economic growth will keep the eventual figure closer to 40 per cent than to 50. What, though, is the optimum share? The above video hazards an answer. The Rahn Curve is to state spending what the Laffer Curve is to taxation. Drawing on a mass of published...