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Economic Policy

Big picture coverage of macroeconomics, political economy, and governments' roles in world commerce.
Nader’s Pitch for a Left-Right Convergence James K. Glassman 05/28/2014
Ralph Nader’s new book shows his zeal for finding and promoting left-right solutions.
New Flight Rules Are a Heavy Load Ike Brannon 05/25/2014
Requiring that pilots have more flight hours may seem like a sensible government action designed to protect us, but the reality is that it will destroy jobs, increase the cost of flying, and result in more people dying in transit.
If Detroit's Not Too Big To Fail... Alex J. Pollock 05/23/2014
With the instructive Detroit precedent, shrunken populations, and underfunded municipal pensions common, we can conclude that no city, not even Chicago, should be thought of as too big to fail.
California’s New Solar Plant: Burning Up Taxpayer Money, Land, and Wildlife Benjamin Zycher 05/21/2014
While the federal government receives net payments for electricity-related oil and gas production on federal land, the net subsidy for the new Ivanpah solar plant is almost 300 times greater.
Are the U.S. Dollar’s Days Really Numbered? Desmond Lachman 05/19/2014
The U.S. dollar will remain the world's reserve currency because no other major currency offers such liquidity, depth of financial markets, and store of value.
Bernard Mandeville, Psychiatrist in the Marketplace Edward Tenner 05/10/2014
Published 300 years ago, what made The Fable of the Bees radical wasn’t the idea that the passions could serve the public good. It was that the burgeoning consumer society should follow the free play of human desires rather than Christian or classical ethics.
Coins That Go Clunk Alex J. Pollock 05/07/2014
Fifty years ago, U.S. silver coins disappeared from circulation, symbolizing a profound shift in the behavior of the government with respect to money.
Have the Limits to Economic Growth Really Been Reached? Desmond Lachman 04/26/2014
Robert Gordon has painted a dark picture of the world’s long-run economic growth prospects. But if the past is any guide, he will likely prove to be far too pessimistic about the human capacity to innovate.
How to Fairly Tax Families Sita Nataraj Slavov 04/14/2014
Based on fairness concerns, there’s a strong case for making the tax system more marriage neutral by shifting to individual rather than family-based taxation, and for providing increased support to low-income individuals without children.
When Setting Tax Policy, Don’t Forget About Long-Run Growth Alan D. Viard 04/11/2014
Neither party will always welcome estimates of how their proposals affect long-run growth. But the American people should welcome the prospect of their elected representatives being asked to think further ahead than the next election.
 
AEI