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...