Beware Benevolence!

Stephen Dubner and Steven Levitt point out a number of cases in which well-intended government intervention backfires. (HT: Ann Althouse.) They thus put contemporary teeth into an old conservative maxim, the Law of Unintended Consequences, which states that the unintended consequences of an act or, especially, policy ultimately outweigh the intended consequences in importance. The ADA has actually harmed employment prospects for the disabled. (This … Continue reading Beware Benevolence!

The Effects of Tax Cuts

Bush’s tax cuts have rewarded the rich, right? The Congressional Budget Office has released information on effective tax rates for various income groups in 2005 compared to the average over the period 1979-2005. Greg Mankiw highlights the key numbers. The first number is the effective tax rate for that group in 2005; the second, in parentheses, is the average effective tax rate for that group … Continue reading The Effects of Tax Cuts