Did World War II spending boost economic growth? Although some statistics appear to affirm this, wiser historical analysis demonstrates that artificial increases in output during the war masked a debilitated private economy. Meaningful growth increased after the war, when free-market mechanisms returned and marginal tax rates were reduced. Gross national product (GNP), the total value of everything produced by United States domestically or abroad, did increase during the war and trended downward as the war ended in 1945, falling considerably in 1946 and 1947. It would be shallow analysis, however, … More

Before the Speech Begins – Emily Goff: Previewing tonight’s speech this past weekend, Mr. Obama said: “We can go in two directions. One is towards less opportunity and less fairness. Or we can fight for…building an economy that works for everyone, not just a wealthy few.” The President must not understand that an economy based on free-enterprise with limited government involvement will, in fact, work for and benefit more than just the wealthy. His administration’s idea of an economy that works involves imposing heavy-handed government regulations and threatening tax increases at … More

When the Chinese government is the sole source of information, how much of it should be believed? In terms of economic performance, not that much. The Wall Street Journal’s Tom Orlik, author of a book on the subject, challenges those skeptical of Chinese numbers to make a better case. Challenge accepted. To be clear, it is not true that Chinese numbers are wrong all the time. Also, China does not always overstate its economic performance. GDP growth was slower in 2011 than Beijing claims, but it was faster in 2010. … More

Tuesday, January 24, will mark the 1,000th day since the U.S. Senate has passed a budget—an egregious dereliction of duty on Senate Majority Leader Harry Reid’s (D–NV) watch. By enacting continuing resolution upon continuing resolution (short-term measures to keep the government running, spending money at the current rate), the Senate has taken a pass on leading, all to the detriment of the poor and middle class. The budget process forces Congress to set priorities to protect the people’s money and put it to its appropriate use. Instead, the Democrat-controlled Senate has abdicated its responsibility. … More

Unemployment is up, inflation has risen, housing prices have stalled, and bankruptcies are at a record high. The price of oil is through the roof, we are on dangerous territory with Iran, and the great communist nation on the other side of the world is on our heels. Meanwhile, the President of the United States still doesn’t understand why Americans will not simply pull themselves out of their funk. Welcome to the year 1980. The resemblance between 1980 and 2012 doesn’t stop at economic conditions and foreign troubles. The year … More

If there’s one thing Saturday Night Live is good at in an election year, it’s lampooning politicians—whether it’s been Chevy Chase as Gerald Ford, Darrell Hammond as Bill Clinton, or Dan Akroyd as Bob Dole. But last weekend, SNL offered up an unusually insightful bit of non-presidential social commentary—this time taking a swipe at America’s coddled, self-esteem-driven, success-less culture. You’d be better off watching the clip from the show (it’s much funnier than this summary), but in the interest of keeping it simple, a skit last week featured two talk … More

Barron’s published its year-end roundtable discussion with 10 money managers and financial market experts on Saturday. The star investors voiced their concerns about three government-related problems that threaten economic growth and prosperity in this country. 1. Cumbersome government regulations are holding businesses back and discouraging investors from investing in American companies. Mark Faber, editor and publisher of the Gloom, Boom, and Doom Report in Hong Kong, warns, “The regulatory environment is bad under the current administration. I don’t see a lot of people wanting to invest in the U.S. Statistics … More

The Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS) recently published its annual estimate of U.S. health spending in the journal Health Affairs. The report shows that growth in health spending remained slow in 2010. Medical expenditures grew at an annual rate of 3.9 percent, up just 0.1 percent from 2009. However, the slow growth doesn’t represent a decrease in health care costs, but a reduction in utilization and intensity of medicine. People are choosing the less costly alternative of avoiding the doctor and not … More

by Rob Natelson The U.S. Constitution authorizes a “convention for proposing amendments” to offer amendments for ratification (or rejection) by the states. The mechanism has never been used (all amendments have come from Congress), and many people have been curious about how it is supposed to work. But that’s because they are unaware of the…

A review of what one might call the greatest history book on the American experiment ever written…