Category Archives: Fiscal Policy

WSJ-Lessons From the Great Inflation of 1973-81

Posted in: Fiscal Policy | August 2, 2022 at 2:26 pm , by mariel

Then as now, what drove higher prices was excess demand owing to runaway government spending. Ronald Reagan and Paul Volcker understood. By Phil Gramm and Mike Solon Aug. 2, 2022 12:49 pm ET History withholds its wisdom from those who ignore its lessons. Forty years ago this month, the fiscal policy of President Ronald...

WSJ-The Folly of ‘Modern Supply-Side’ Economics

Posted in: Fiscal Policy | February 8, 2022 at 9:54 am , by mariel

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Janet Yellen tries to sell even more spending as a growth and anti-inflation policy. It’s the opposite of what’s needed now. By Phil Gramm and Mike Solon Feb. 7, 2022 5:14 pm ET With inflation at 7%, the highest rate since 1982, and the Federal Reserve set to tighten monetary policy, you would...

WSJ-The Democrats’ Inflation Blame Game

Posted in: Fiscal Policy | January 12, 2022 at 2:30 pm , by mariel

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Everyone and everything is responsible except the government spending that’s actually fueling it. By Phil Gramm and Mike Solon Jan. 12, 2022 1:26 pm ET Despite Wednesday’s inflation report indicating that consumer prices have risen by 7% over the past 12 months and accelerated to 9.1% over the past three months, the president...

WSJ: The Biden Stagflation Is Coming

Posted in: Fiscal Policy | December 13, 2021 at 4:13 pm , by mariel

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His approach to the economy is already causing prices to rise. It will soon stifle growth as well. By Phil Gramm and Mike Solon Dec. 13, 2021 1:07 pm ET The White House continues to insist that inflation will soon fade away and the country will return to its pre-pandemic prosperity. But the...

WSJ: Will Joe Manchin Stand His Ground on Inflation?

Posted in: Fiscal Policy | November 18, 2021 at 12:17 pm , by mariel

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Federal spending is its biggest driver. He has demanded an honest accounting, due this week. By Phil Gramm and Mike Solon Nov. 18, 2021 12:05 pm ET Long before the Bureau of Labor Statistics reported inflation had hit a 30-year high, Sen. Joe Manchin (D., W.Va.) raised concerns about how President Biden’s Build...

WSJ-Inflation Punishes the Unprotected

Posted in: Fiscal Policy | August 12, 2021 at 9:46 am , by mariel

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Government shields its employees and beneficiaries, but not ordinary workers, from higher prices. By Phil Gramm and Mike Solon Aug. 11, 2021 6:14 pm ET The Labor Department reported Wednesday that consumer prices have risen in the past year by 5.4%. Prices have risen at an annualized rate of 7.1% in 2021 and...

WSJ-How the Fed Is Hedging Its Inflation Bet

Posted in: Fiscal Policy | August 2, 2021 at 12:30 pm , by mariel

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Though few have noticed, the central bank is already slowing the growth of the money supply. By Phil Gramm and Thomas R. Saving Aug. 1, 2021 5:03 pm ET Federal Reserve Chairman Jerome Powell last month told the House Banking Committee “it would be a mistake” to tighten monetary policy “at a time when virtually...

WSJ-Biden’s Plans Are Already Hurting the Recovery

Posted in: Fiscal Policy | May 19, 2021 at 1:24 pm , by mariel

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As anti-production policies take hold, supply and worker shortages appear and inflation looms. By Phil Gramm and Rick Scott May 19, 2021 12:49 pm ET The April Consumer Price Index rose by 0.8%, or 9.6% on an annualized basis. On an annual basis the inflation rate for the past three months has been...

WSJ-The Biden Tax Mirage

Posted in: Fiscal Policy, Tax Policy | May 12, 2021 at 1:02 pm , by mariel

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Marginal rates have been a lot higher, but the actual share the top 1% pay stays remarkably constant. By Phil Gramm and Mike Solon May 12, 2021 12:39 pm ET With deficits at levels not seen since World War II, the March $1.9 trillion stimulus only beginning to spend out, and President Biden...

WSJ-Biden Aims at Profit, Hits Workers

Posted in: Fiscal Policy, Tax Policy | April 6, 2021 at 10:13 pm , by mariel

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The 2017 corporate tax cuts triggered the blue-collar wage boom. Higher rates would reverse it. By Phil Gramm and Mike Solon April 6, 2021 6:18 pm ET The Biden administration has proposed an array of corporate tax increases with a goal of raising some $1.33 trillion over the next 10 years. That’s three...