Tag: Jeffrey Dorfman

Rate Cuts, Not Tax Cuts

By Jeffrey Dorfman Economists all agree that tax reform is pro-growth if it broadens the base (such as by eliminating deductions) while reducing marginal tax rates. There is less agreement on other aspects of the issue, such as which types of households should see tax cuts, whether a lower corporate rate would benefit workers or shareholders the most, and whether it would be a good idea for the government to bring in less tax revenue overall. Given all this, what type of tax reform should be our highest priority? In our current situation of low economic growth, the answer appears to be lower rates. Your marginal income-tax rate is the percentage you pay in taxes on your last (or next)… View Article
By Jeffrey Dorfman Today’s political climate is highly partisan. Debates are full of personal attacks, harsh words, and complete disagreements as each side clings tightly to strongly held beliefs. Part of the difficulty in reaching the compromises necessary to get things done in Washington is that the two parties believe so many opposite theories with each side sure that their opinion represents fact. With that in mind, here are ten economic facts that liberals need to learn. JEFFREY DORFMANProfessor of Applied EconomicsUniversity of Georgia 1) Government cannot create wealth, jobs, or income. Because government has to take money from somebody before it can spend it, there is no economic gain from anything the government does. Money collected in taxes or… View Article

Minimum Wage: No Such Thing as a Free Lunch

JEFFREY DORFMANProfessor of Applied EconomicsUniversity of Georgia By Jeffrey Dorfman Last week, voters in Switzerland voted by an overwhelming 76 percent to 24 percent to reject the establishment of Switzerland’s first minimum wage. The proposed wage floor was about $24 per hour and would have been the highest minimum wage in the world if the referendum had passed. A large part of its rejection at the ballot box was a strong informational campaign by employer groups who explained that such a high minimum wage would mean many lower wage workers losing their jobs. This election result is in keeping with some polling here in the U.S. that a majority of people do not support raising the minimum wage… View Article
(This article was published on Forbes.com and is reprinted with permission by the author.) By Jeffrey Dorfman JEFFREY DORFMANProfessor of Applied EconomicsUniversity of Georgia President Obama and the Democrats continue to push for an increase in the minimum wage. Against much evidence that such a law is very ineffective at reducing poverty, the administration is still touting the benefits they claim would help millions of workers. Yet, it turns out that, for the sort of worker about whom we should be most concerned, such a policy actually benefits the federal government more than the worker. That’s right. As I will show below, a hypothetical single mom with one kid would see more than half of the proposed minimum wage increase… View Article
(This article was published on Forbes.Com and is reprinted with permission by the author.) By Jeffrey Dorfman JEFFREY DORFMANProfessor of Applied EconomicsUniversity of Georgia U.S. antitrust laws are a fascinating confusion of logic and nonsense. Supposedly designed to protect consumers, the antitrust laws seem to be used just as much to settle battles between dueling retailers or between retailers and manufacturers. In too many cases, the government steps in to block actions that would appear likely to be good for consumers. The latest case is the spreading war by car dealers to block Tesla sales using state legislatures as their anti-consumer instrument. Tesla Motors sells a very expensive all-electric car and its business plan involves direct-to-consumer sales. Tesla invested considerable… View Article

I thank you for what you do. For 15 years you’ve been researching and writing on issues that matter. You take on tough questions, you apply innovative thinking, you push for action, and you do it all without regard to politics.

President George W. Bush more quotes