Remember that immigration reform bill that’s attempting to crawl through the congressional minefield? Back in January, I was critical of the bill, because it seems to presume that reducing immigration numbers is still a desirable goal. I argued that the bill over-emphasized border security at the expense of encouraging immigration, and that increasing immigration was fundamentally advantageous to economic growth, that immigrants contribute more to the economy than they consume in public services. At the time, my view was predominately theoretical. Now, however, we have empirical data. The non-partisan and generally trustworthy Congressional Budget Office (CBO) has released a report in which it predicts that immigration reform would shrink the deficit by $197 billion.
Tag: politics
The Irrelevance of Chemical Weapons
Well, it’s been coming for a while now–Barack Obama has decided to arm the Syrian rebels. The justification? The administration believes that somewhere between 100 and 200 people in Syria have been killed with chemical weapons, specifically, nerve agents, even more specifically, sarin. It is too often taken for granted that the use of chemical weapons by the Syrian government provides a good reason for the United States to intervene in the Syrian conflict on behalf of the rebels. The assumption must be questioned–does the use of chemical weapons make it in the interest of the United States to intervene where before it was not in the US interest to do so?
Tax Rates and Growth
Last week, I took a look at optimal tax rates, the top rates of income tax which economic research suggests would maximize revenue if implemented as policy. The research suggested that for every 1% higher the top rate of income tax rises, the rich report 0.25% less income. This suggested an optimal top rate of between 73 and 80%. Toward the end of that post, I suggested that it might be the case that even as the rich report lower earnings, the economy as a whole might operate more efficiently at those high rates, if the government is more effective at investment than the private sector. Today I’d like to look at some empirical data to see if there’s any historical basis for that claim. Continue reading “Tax Rates and Growth”
The Biasing Effects of Personal Experience
One of the most common assumptions around is the notion that the only way to truly understand something is to be part of it. It is said that the best way to learn about life is to live it. This idea has tremendous influence–it causes method actors to attempt to directly experience what their characters experience, it causes people to go on trips or to do things purely for “the experience”, and most importantly, it has tremendous influence over how people think about politics, both for the left and for the right. The left scolds well-off politicians, who are assumed to have no conception of what it means to be poor and to suffer. The right scolds young people and ivory tower academics for not directly experiencing the welfare systems they praise, or the private systems they denigrate. There is a kernel of truth in both criticisms, but that’s about it.
Continue reading “The Biasing Effects of Personal Experience”
How Much Should We Soak the Rich?
There’s broad agreement among the political left in most developed states that we should raise taxes on high earners, if not now then after the economy recovers. The justifications vary somewhat, depending on how one comes at one’s leftism, but in most cases it can be boiled down to the principle of diminishing returns, which holds that the more money you have, the less utility additional money buys you. A homeless person almost always benefits more from a dollar than does a rich person, and if we are seeking to maximize welfare, it is reasonable to redistribute wealth from the rich person to the homeless person. Even some right wingers agree to this, in theory. The trouble is that there is much disagreement as to the extent to which we ought to redistribute empirically. That’s the question I’m going after today.
Benjamin Studebaker 