Inequality And The Great Stagnation
April 04, 2011
In the may issue of Reason, Brink Lindsey reviews Tyler Cowan's "The Great Stagnation." Cowan's book addresses the decline in rising living standards. Lindsey -- whose review I can't find online, but a shorter version can be found here -- responds that the post-1973 period isn't all that stagnant: Tyler correctly points out that median family income rose smartly after World War II only to fall off sharply in the '70s. GDP per capita figures reveal the same trend, albeit a little less dramatically (because of the rise in income inequality).
Why Keynesianism Isn't Being Followed
June 02, 2010
Tyler Cowan, who supports more fiscal stimulus, nevertheless thinks liberals are too strident about demanding stimulus: Reading the Keynesian bloggers, one gets the feeling that it is only an inexplicable weakness, cowardice, stupidity, whatever, that stops policies to drive a more robust recovery. The Keynesians have no good theory of why their advice isn't being followed, except perhaps that the Democrats are struck with some kind of "Republican stupidity" virus. Inexplicable? Hardly. Two factors are at work. First, Keynesian fiscal policy is unpopular.
Public Distrust Of Government Will Not Shrink Government
April 19, 2010
Tyler Cowan makes an interesting point -- countries have had success in cutting spending when the public trusts the government: The received wisdom in the United States is that deep spending cuts are politically impossible. But a number of economically advanced countries, including Sweden, Finland, Canada and, most recently, Ireland, have cut their government budgets when needed. Most relevant, perhaps, is Canada, which cut federal government spending by about 20 percent from 1992 to 1997.