• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Thankful for Trade: It Saves People from Starving

    Thousands of people are not starving to death in Michigan. This shocking development comes despite one of the worst harvests in memory. With little produce being gathered from local orchards and fields, some feared the worst. But despite the drought, grocery stores had full shelves and reasonable prices. The miracle … More

    What Are Economists Really Saying About Tax Rate Increases?

    On Friday, Representative Pete Sessions (R–TX) and House Speaker John Boehner (R–OH) ran afoul of Glenn Kessler’s “Fact Checker” blog regarding a study of President Obama’s proposed tax increase. Before deciding on a tax change, policymakers are wise to look at the economic impacts of the change. Two Studies In … More

    Is a Tax Cut Always a Good Thing?

    According to Friday’s Washington Post, the Administration is considering a new, short-term tax cut. Should conservatives cheer? As a matter of principle, there are at least two reasons to dislike taxes and to applaud tax cuts. First, taxes take money away from those who made the money in the first … More

    Another Downward GDP Revision Shows Economy Still Not Recovering

    On Thursday, the Department of Commerce revised its second quarter estimate of economic growth (in terms of real gross domestic product, or GDP) down to 1.3 percent from 1.7 percent. Anything less than a 2 percent rate of growth is more typical of an economy wilting toward recession than an … More

    Socialist Austerity in France

    Francois Hollande won election to the French presidency by promising that more government spending would lead to quick economic growth. He sharply criticized the “austerity”—i.e., sudden spending cuts—proposed by his opponent. A few months later, Hollande has come full circle. In addition to a tax increase that has wealthy French … More

    Will America Catch the Eurovirus?

    In a new Backgrounder, “How Contagious Is Europe’s Economic Crisis?”, we discuss several channels through which a European crisis could be transmitted to the U.S. economy and note the key policy responses needed in the U.S. and in Europe. Current effects. The U.S. is already affected by lower demand for … More

    Are Spending Cuts as Harmful as Tax Increases?

    Wednesday’s warning by the Congressional Budget Office (CBO) that the fiscal cliff is likely to push the economy back into recession should bring things sharply into focus for lawmakers. The CBO is correct that the fiscal cliff will lead to a recession, but its report contains faulty economic reasoning. The … More

    Ethanol Mandate Ignores the Free Market

    In the midst of one of the most severe droughts on record, Washington’s ethanol mandate is making the corn shortage even worse. Markets have responded quickly and flexibly to the drought where they can, but some corn buyers are sidelined by the rigid government ethanol mandate. Corn prices are skyrocketing, … More

    How Much Debt Is Too Much?

    Following the news that the U.S. national debt has increased by $1 trillion for the fifth year in a row and that Greece’s debt crisis may force it from the eurozone, The Heritage Foundation has published a primer on national debt and sovereign default. National debt in a healthy economy … More

    Forecast: Taxmageddon Would Cause Another Recession

    Speaking this week at the Western Economic Association International, economic forecaster Allen Sinai talked about the damage the “fiscal cliff” of 2013 will cause the economy. Sinai concludes that a recession is unavoidable if Congress does not act to fix the fiscal cliff. The fiscal cliff has two components: (1) … More