Economic Policy in the Next Administration Should Target Efficiency, Not Redistribution
To a first approximation, economic policies target one of two objectives: efficiency (growing the economic pie) or redistribution (reallocating the economic pie). Alas, most politicians favor the latter, which typically shrinks the economic pie and often reallocates in perverse ways. Presidential candidates Kamala Harris and Donald Trump are no exceptions. Mostly, their policy positions emphasize redistribution (to groups whose votes they are trying to court) rather than maximizing economic output. We review some of the economic policies that will define the next administration and argue that both candidates must reorient the platforms toward maximizing efficiencies in order to grow the economic pie for all.
Read the rest at ProMarket, which is hosted by the Stigler Center at Chicago Booth.
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There goes the whole Trump agenda. :)
No extension of the Tax Cuts for the Rich and deficits Act
No mass deportations
No increase in tariffs,
Or things that ought to be on the agenda to increase efficiency
No substituting a tax on net CO2 emissions for the plethora of mandates and subsidies.
No substituting a VAT for the wage tax that (inadequately) funds SS and Medicare
No substituting progressive consumption tax for taxation of personal and business income