Empirical analyses by Christina and David Romer and by William Niskanen find that tax cuts do not starve the beast as Milton Friedman theorized; instead the one thing a tax cut reliably predicts is a future tax increase and possibly higher future spending, consistent with a 'Puritan vs. partier' model where parties restrain each other's tax cuts and spending hikes together or indulge both together.

causalpending

Speaker

Garrett Jones

Evidence Quote

it's time for those of us who believe in smaller limited government like I do to to revisit this idea that tax cuts are the way to control government spending we may be instead encouraging Congress to party more on the spending side

Source

Garett Jones on Macro and Twitter 02/22/2010EconTalk
Created: 6/17/2026, 10:31:36 AM

My Notes

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