One of the arguments commonly made in the austerity vs. stimulus debate is that cutting taxes, and not deficit spending, is the best way to stimulate economic growth. Cutting taxes almost invariably means austerity, but the supporters of tax cuts argue that the economic growth created by putting more money in the hands of investors is the best way to create jobs. Often, the argument is made without evidence–it is in fact an ideological position. I should hasten to add that some who support deficit spending also often argue from an ideological position–some kinds of spending will stimulate growth, but other kinds of spending will not. Bruce Bartlett, who was an economic adviser to Presidents Reagan and George H.W. Bush and is generally regarded as a supporter of the free market, uses a mountain of evidence to demonstrate that some kinds of tax cuts, specifically those implemented by President George W. Bush, did not create jobs.
Speaking of jobs, there is a very thought-provoking podcast on the job market in 2045. If you want to read the transcript, just click here.
Son of Drone? The US Defense Department is working on hypersonic cruise missiles (hypersonic is defined as at least five times the speed of sound at sea level). Test prototypes have reached speeds of Mach 20 which means that the US could virtually bomb any place on the planet before the enemy even knows that a missile has been fired. The plans are to deploy these missiles by 2025. Perhaps the US will work on the laws governing the use of these missiles before they are deployed and avoid the situation it is in now with respect to drone warfare: other nations are building their own drones and there are no agreed upon rules governing their use.
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