IGEG
Institute for Global Economic Growth
Being Taxed for Bad Advice
The Washington Times, February 18, 2014
by Richard W. Rahn
If you became aware that the advice you were
receiving from your economic advisers was causing you to get poorer rather than
richer, how long would you keep them? Among the general public, the
International Monetary Fund (IMF), the World Bank and their lesser known
younger sibling, the Organization for Economic Cooperation and Development
(OECD), had reputations far exceeding their actual achievements.
Russian Meddling in Ukraine Could Trigger Financial Turmoil
The Washington Times, February 11, 2014
by Richard W. Rahn
Why worry about Ukraine? To many, it seems far away and a country about which they know little.
A World of Economic Trouble
The Washington Times, February 4, 2014
by Richard W. Rahn
There are many signs that the world may be headed for a new economic slump, or worse. Which countries are best positioned to weather such a downturn and which are not? Countries that have been fiscally responsible in the recent past are for the most part in better fiscal shape than those that have not, because they have a larger safety cushion.
The Washington Times, January 28, 2014
by Richard W. Rahn
The administration and many in Congress seem to have learned nothing from the Obamacare disaster. Now that they have destroyed the world's best health care system, they are in the process of further destroying what was at one time a very functional global financial system.
Lawless and Dangerous
The Washington Times, January 21, 2014
by Richard W. Rahn
Can you imagine how the American Founders would have reacted to a requirement that you had to pay taxes on your rights to peacefully assemble and speak your mind about elected officials or candidates, without first getting the permission of the tax authorities and then paying a tax on those activities?
The Wolves of Washington
The Washington Times, January 14, 2014
by Richard W. Rahn
Are business people more corrupt than those in government? Hollywood loves to portray those in business as the baddies and those in government as the good guys.
Fumbling the Crystal Ball
The Washington Times, January 7, 2014
by Richard W. Rahn
If you are forced to make a forecast, give a number and a date, but never in the same sentence.
BOOK REVIEW: 'The Map and the Territory'
The Washington Times, January 6, 2014
by Richard W. Rahn
Mr. Greenspan presents an honest assessment of what economists can and cannot predict, along with many useful insights as to the way that both politicians and investors tend to behave.
The New Year's Resolutions for Others
The Washington Times, December 31, 2013
by Richard W. Rahn
Employees of the IRS should resolve "to do unto others as you would have them do unto you."
Most Things Are Better Now
The Washington Times, December 24, 2013
by Richard W. Rahn
The good news is that most people are living longer with more real income and more security than they did a year ago, a decade ago, or at any time in history. Global personal safety is at a record high.
The Deniers of Economic Reality
The Washington Times, December 17, 2013
by Richard W. Rahn
As every rational person should understand, the current situation is unsustainable, and there is no tax solution to spending as a rising share of GDP. In fact, tax increases will only make the situation worse by further slowing private-sector growth and increasing the demand for government services and payments.
The High Cost of a Free Lunch
The Washington Times, December 10, 2013
by Richard W. Rahn
The real problem is the lack of economic growth, which reduces economic opportunity, particularly for the least skilled. Increasing the minimum wage helps those who actually receive an increase in their wage, but it makes it worse for all of those who lose a job or can’t get one because the minimum wage is far above the market clearing rate.
From Protector to Destroyer
The Washington Times, December 3, 2013
by Richard W. Rahn
Did you ever buy a game or device for which the rule book or instruction manual was so thick and detailed that you were not able to comprehend it in a reasonable period of time, so you either discarded or failed to use the product?
Politicizing the Judiciary
The Washington Times, November 26, 2013
by Richard W. Rahn
Only when the American people demand a restoration of economic liberties — by electing presidents and members of Congress who will rein in government — will judges get the message.
The Failed Fed
The Washington Times, November 19, 2013
by Richard W. Rahn
The Fed was originally established to be a lender of last resort to stop bank runs, a payments' processor to clear checks, and an issuer of a uniform national currency (rather than have individual banks issue bank notes). From this limited beginning, it quickly evolved into a full-fledged central bank. The list of failures is long.
The Misery of the Minimum Wage
The Washington Times, November 12, 2013
by Richard W. Rahn
A minimum wage takes away essential freedoms by preventing some from learning basic job skills and being able to provide for themselves, forcing them to be dependent on the government, or some charity or other person.
Judges with a Rubber Stamp
The Washington Times, November 5, 2013
by Richard W. Rahn
The Founders understood the tendency of both the executive and legislative branches of government to tax, spend and regulate in order to enhance those branches' own power at the expense of the people.
Looking for Lucre in All the Wrong Places
The Washington Times, October 29, 2013
by Richard W. Rahn
The Obama administration has performed the unique trick of alienating the majority of our most important allies, while at the same time causing America to be viewed as a patsy by its enemies.
When Shutdown Orders Overrule the Constitution
The Washington Times, October 22, 2013
by Richard W. Rahn
The reason for the dysfunction in Washington is that the government is trying to do too many things that are not authorized by the Constitution, or that governments are incapable of doing competently at all. The new poster child is Obamacare.
Government Waste Stifling Growth Worldwide
The Washington Times, October 15, 2013
by Richard W. Rahn
In America, and now in most of the rest of world, people naturally assume that they are going to live better than their parents; but until the beginning of the Industrial Revolution less than 250 years ago; this was not true for most of mankind.
Stepping on the Bureaucrat's Cape
The Washington Times, October 8, 2013
by Richard W. Rahn
Should government employees have privileges and legal immunities that the rest of us do not have? The government shutdown battle is, in part, a dispute about the extra subsidies members of Congress and their staffs are slated to get from Obamacare.
Bankrupt Ideas Lead to Bankrupt Governments
The Washington Times, October 1, 2013
by Richard W. Rahn
The private sector — unlike government — constantly reduces costs and improves its products because of competitive pressures, and that creates real wealth. Those in the public sector measure success by the amount spent, not by what is accomplished.
Model Meltdown
The Washington Times, September 24, 2013
by Richard W. Rahn
Good forecasters are constantly modifying their models to correct for past mistakes and take in new data. A consistent overestimate or underestimate often indicates a mistaken specification of some key variable.
Surprise among the Spendthrift Nations
The Washington Times, September 17, 2013
by Richard W. Rahn
The good news is that there are more countries managing their economies in a fiscally responsible way than there were two years ago. The bad news is that most of the world's biggest economies, including that of the United States, are getting deeper and deeper in debt as a result of excessive spending, and will ultimately have to pay the price.
Unwise and Undeterred
The Washington Times, September 10, 2013
by Richard W. Rahn
A number of Democrats argue that Congress should vote to support the Obama Syrian adventure because the president and the United States will lose face if they don’t. Mr. Obama put himself and the nation in a box because of a series of naive and unwise statements.
A Carbon Tax would Make No Sense
The Washington Times, September 3, 2013
by Richard W. Rahn
Do you know what the optimum level of carbon dioxide is? No one does, even though some have the extreme conceit to think they do.
Should the Constitution Be Amended?
The Washington Times, August 27, 2013
by Richard W. Rahn
In his new, best-selling book, “The Liberty Amendments: Restoring the American Republic,” Mark R. Levin argues that amendments are needed because the nation has entered an age of “post-constitutional soft tyranny.”
Saving consumers from lower prices
The Washington Times, August 20, 2013
by Richard W. Rahn
Why does the Obama administration claim it wants you to pay less for your airline ticket, but more for the shrimp you buy? One reason the economy keeps stumbling along is that businessmen, consumers and taxpayers are having a hard time planning because of endlessly inconsistent and often lawless policy directives from the Obama White House.
Protecting the wrong people
The Washington Times, August 13, 2013
by Richard W. Rahn
Almost everyone is now aware of the U.S. government’s failure to protect our ambassador and others in Benghazi, Libya, and the refusal to properly characterize mass killing at Fort Hood, Texas, as terrorism. Contrast these actions with the treatment given to those in the Internal Revenue Service and regulatory agencies who have broken U.S. law.
Making regulations that do more harm than good
The Washington Times, August 6, 2013
by Richard W. Rahn
Terrorists, money launderers, drug dealers and tax evaders use automobiles, airplanes, telephones, computers, banks and countless other goods and services that we all use. Yet all too many government policymakers think that if we make these things very difficult to use, the bad guys will go away — forgetting, of course, that all the rest of us suffer from mindless regulation and control.
The last days of the IRS
The Washington Times, July 30, 2013
by Richard W. Rahn
Eventually, citizen anger grows to the point that the resistance against the tax-collection agency results in such a level of noncompliance that less and less revenue is collected, as we now see in Greece and elsewhere.
Obama's bad news for blacks
The Washington Times, July 26, 2013
by Richard W. Rahn
Mr. Obama no doubt has real compassion for the poor, but until he can begin to understand the destructive second-order effects of his policies and see that getting the foot of government off the forces of economic growth is the only real way to make life better for most of them, all too many will continue to suffer unnecessarily.
How to make government behave
The Washington Times, July 23, 2013
by Richard W. Rahn
What we are seeing is that too many other people in government, notably at the IRS, use pseudonyms when dealing with the public.
Flat tax? Sales tax? Value-added tax?
The Washington Times, July 16, 2013
by Richard W. Rahn
If federal government spending were for only those things mandated by the Constitution and for things that people could truly not do for themselves, there would be no need for the highly destructive federal individual or corporate income tax.
Approaching economic stall speed
The Washington Times, July 9, 2013
by Richard W. Rahn
An economy can hit “stall speed” when it becomes burdened with too much dead-weight loss.
A tale of two economies
The Washington Times, July 2, 2013
by Richard W. Rahn
Chile and Ecuador provide an almost perfect test case of competing economic visions.
Evolutionary anomalies in our midst
The Washington Times, June 25, 2013
by Richard W. Rahn
Like the fleas, bugs and ticks that annoy and endanger the animals of the Galapagos, humans also are infected with parasites such as trial lawyers who bring phony class-action lawsuits, government regulators and workers who fail to produce more benefits than costs, and assorted thieves and thugs.
Tyranny of the taxers
The Washington Times, June 18, 2013
by Richard W. Rahn
Rather than acknowledge that the reason for such poor performance is excessive government spending, taxation and regulation, members of the G-8 are blaming their ills on lower-tax jurisdictions, which they pejoratively label "tax havens."
IRS troubles go global
The Washington Times, June 11, 2013
by Richard W. Rahn
The IRS, in its zeal to chase any individual or company that might possibly owe it a dollar, regardless of domicile on the globe, including foreign citizens, is now involved in a massive tax information-sharing scheme with foreign governments.
From captive nations to free markets
The Washington Times, June 4, 2013
by Richard W. Rahn
Once the communist yoke had been thrown off, few thought that the newly independent countries could evolve into functioning free-market democracies in a short period of time without major strife and loss of life. Yet it happened, and now the citizens of these countries enjoy both freedom and a much higher standard of living.
Preserving their monopoly on monopoly of money
The Washington Times, May 28, 2013
by Richard W. Rahn
Entrepreneurs are trying to create superior money, which is needed for global economic well-being, to replace the dollar and other failing government-created currencies. Unfortunately, these innovations are being strangled in their cribs by power-hungry central bankers and politicians.
Why the IRS cannot be reformed
The Washington Times, May 21, 2013
by Richard W. Rahn
IRS misbehavior and abuse will not cease for the aforementioned reasons until the income tax is abolished. Moving to a flat tax would lessen the problem, but the potential for abuse will still occur. The long-term solution is to move to a system of user fees and consumption-based taxes, in which the opportunities for bias and abuse are minimized.
Putting out the welcome mat for prosperity
The Washington Times, May 14, 2013
by Richard W. Rahn
Polls show most Americans are in favor of immigrants who come here to work, particularly those who are willing to do jobs that Americans will not do, or those who are highly skilled and add to the competitiveness and productivity of the United States. America would be far poorer today if many of our immigrant ancestors — even the unskilled ones — had not been admitted.
Misplaced interests
The Washington Times, May 7, 2013
by Richard W. Rahn
It is tiresome to hear the president (as he did again last week during his news conference) and others say, time and time again that if we just tax and spend a bit more, our problems will diminish.
Privatize Almost Everything
The Washington Times, April 30, 2013
by Richard W. Rahn
The debate over sequestration has caused a renewed focus on all of the waste, duplication and inappropriate or nonessential things the federal government does.
When Is Too Much Security Too Much?
The Washington Times, April 23, 2013
by Richard W. Rahn
A rational person does not spend far more for homeowners and business insurance than the home or business is worth. Most people do not have $100 million in life insurance, because they cannot afford it and because they also implicitly realize that their lives are probably not worth that much.
Interview with Michel Dérobert
Cayman Financial Review, Second Quarter, Issue 31
by Richard W. Rahn
Does private banking have a future? This question is increasingly asked given the US government’s attack on Switzerland’s oldest private bank and the mounting pressure traditional Swiss private banks have come under from tax-greedy politicians in many countries and international financial regulators, as well as the increasing complexity of the banking business.
by Richard W. Rahn
The great tragedy of our time is that so few know economic history; thus we have been doomed to repeat the mistakes of a generation ago, and millions suffer.
Collecting taxes, dispensing fear
The Washington Times, April 9, 2013
by Richard W. Rahn
The corrupt power seekers in the political class, the government and IRS bureaucrats, as shown by their behavior, really don't care about the well-being of their fellow citizens.
Global warming’s “fatal conceit”
The Washington Times, April 2, 2013
by Richard W. Rahn
Those of us who have studied “public choice theory” are not particularly surprised that many scientists and their media followers are in denial about what is increasingly obvious — that is, most of the climate projections were just plain wrong.
The Washington Times, March 26, 2013
by Richard W. Rahn
When it comes to trying to raid the people's pocketbooks, there is almost no limit to what governments will do -- and not just authoritarian or totalitarian regimes. On April 5, 1933, President Franklin D. Roosevelt issued an executive order making it a criminal penalty -- with a $10,000 fine and up to 10 years in prison -- to hold gold coins, gold bullion or gold certificates.
Where will the next financial crisis begin?
The Washington Times, March 19, 2013
by Richard W. Rahn
Which country will serve as the trigger for the next financial crisis? Given the continuing rise in debt-to-gross domestic product (GDP) ratios in many countries, it is apparent that a new financial crisis will occur.
What's the trigger that will cause the Fed to act
Forbes, March 17, 2013
by Henry G. Manne & Richard W. Rahn
The Fed consistently underestimated the inflation of the 1970s, failed to anticipate the recessions in 1990 and 2001, which it induced, and was surprised by the Great Recession, in part caused by the Fed’s providing the monetary fuel for the housing bubble. For each of the last four years, the Fed (and the administration) has been telling us to expect four percent growth in the next year when the actual number has been approximately two percent.
Sequestration myth
by Richard W. Rahn
It is true that sequestration and a reduced growth rate of government spending can cost a few jobs in the government sector, but this will be more than made up by the additional job growth in the private sector.
Locking in the homeowner
The Washington Times, March 5, 2013
by Richard W. Rahn
It is estimated that up to a quarter of all American households still owe more on their mortgages than their homes are worth. Many of these people have been able to refinance their home loans with much lower interest rates, but that does not solve the problem because they have a balance sheet problem rather than a cash-flow problem.
by Richard W. Rahn
Economists dislike the corporate income tax because it reduces productive labor and capital and is an additional tax on income that has already been (or will be) taxed. Politicians love the tax because it is largely invisible to most voters.
More government control equal poorer nations
by Richard W. Rahn
An upside down world. The Russian TV correctly berates the heads of the major Western central banks for acting like socialists in setting interest rates and ignoring the fact that free markets will do a better job. The fact is that big capitalist economies are rapidly becoming less capitalist and more government-controlled.
Attack on the free
The Washington Times, February 12, 2013
by Richard W. Rahn
Some high-tax countries with onerous and destructive financial regulations hate the competition from low-tax, more economically free, jurisdictions.
Desperate Keynesians
by Richard W. Rahn
Mr. Krugman complains that "harsh spending cuts" have not worked in Ireland or the United Kingdom. After their banking crisis, the Irish increased government spending as a percentage of GDP by almost 30 percent. The British are still spending 11 percent more of their GDP on government than they were in 2007. Where is the "austerity," Mr. Krugman?
Thankful for think tanks
The Washington Times, January 29, 2013
by Richard W. Rahn
One of the reasons for the rise of think tanks has been the failure of most universities to fulfill one of their traditional roles of providing unbiased and sound research to aid government policymakers. Too many schools are now engaged in politically correct group-think rather than free and innovative thought.
by Richard W. Rahn
The Departments of Defense, State and Justice are authorized by the Constitution and are generally accepted legitimate federal government functions. Most of the rest ought to be done at the state and local levels or by the private sector.
Tale of two economic styles
The Washington Times, January 15, 2013
by Richard W. Rahn
In sum, the economic future for the large, old, rich nations looks bleak for 2013, while many smaller countries are doing well by avoiding the mistakes of others or correcting for past mistakes.
Uncle Sam won't stop overspending
The Washington Times, January 8, 2013
by Richard W. Rahn
The point is that the U.S. government is heading rapidly toward insolvency because members of Congress are spending money on things that individuals should insure themselves for -- whether it is normal health care or vagaries of nature. A government that is expected to do all things for all people will eventually not be able to afford to do anything for anyone.
One piece of the coming disaster
by Richard W. Rahn
You may have been reading how the Federal Reserve has been buying huge quantities -- almost a trillion dollars' worth -- of "mortgage-backed securities" (MBS). There is a relatively high probability that this program is going to end in disaster -- and here is why.
“Countries which have a strong rule of law, protect private property, engage in relatively free trade, have free markets, use a sound currency, and maintain relatively low levels of government spending, taxing, and regulation, will grow much more rapidly than those countries that do not follow these constructive policies.”
- Dr. Richard W. Rahn
Chairman
SEE PUBLICATIONS BY DR. RICHARD W. RAHN
The Economics of Terrorism
THE ANNALS OF ENTROPY AND THE QUEST FOR A NEW GLOBAL EQUILIBRIUM
Unlike natural disasters, which have no human intelligence, rationality or calculation behind them, terrorism is a human phenomenon, planned and executed by human beings. Thus, even though the cost-benefit calculations may be highly negative, the very lack of expensive preventive measures will exponentially increase the likelihood and incidence of terrorist attacks.
Waiting for Constantine
THE ANNALS OF ENTROPY AND THE QUEST FOR A NEW GLOBAL EQUILIBRIUM
by Nornam A. Bailey and Alexander Mirtchev
The U.S. Colossus with Feet of Clay
The Globalist, July 28, 2010
by Norman A. Bailey
If we are an empire, we must behave as such — or suffer terminal decline. If we are not, then we must return to our founding principles — or suffer terminal decline. Those are our choices.
THE CORPORATE STATE
by Norman A. Bailey
The Obama administration has been accused by opponents of moving towards socialism, but the measures taken so far are much closer to the corporate state model.
THREATS IN THE HEMISPHERE
The Washington Times, September 4, 2008
By Norman A. Bailey
It is high time the
ECONOMIC STATECRAFT
By Norman A. Bailey, Ph.D.
In recent decades economic statecraft, that is, the use of economic measures to contribute to the achievement of foreign policy goals, has practically been reduced to the use of trade sanctions and/or financial aid. The economic strategy arsenal, however, holds many weapons beyond these two.
NATIONAL INTEREST
VERSUS NATIONAL SECURITY?
THE CASE OF IRAQ
By Norman A. Bailey, Ph.D.
The national debate over the war in Iraq, which began with the invasion of April, 2003 and is still raging in the form of an active insurrectionary movement, has illustrated once more the prevalent confusion over the concepts of national interest and national security.
AFTER THE END OF HISTORY
By Norman A. Bailey, Ph.D.
As the twenty-first century proceeds on its way, there are only three possible developments: either (a) chaos will continue and deepen, and with it insecurity and disintegration of society, or (b) the United States will become truly imperialistic or alternatively will abandon its exceptionalism and give in to the most recent form of Westphalianism – supra-national bureaucratic rules trumping the organs of democratic governance, or (c) the American vision will eventually triumph, leading to a true new world order, the outlines of which are now visible only in embryonic form.
SECURITY FOR WHOM, BY WHOM AND WITH WHOM?
By Norman A. Bailey, Ph.D.
The discussion of security issues, at least since 9/11/01, has fluctuated among three modalities: strategic/theoretical, tactical/technical and ideological/emotional. Little attention is paid to such fundamental considerations as definitions. In fact, there is no generally-accepted definition of even such a constantly-used concept as “national security”. The most common confusion is that of national security with national interest.
THE BATTLE OF THE YARMUK
by Norman A. Bailey, Ph.D.
On September 11, 2001, one thousand three hundred and sixty-six years later, the latest battle in this never-ending war was fought, and it may be that the number of casualties was about the same as at a dry riverbed in
