The Pope's Rhetoric

I see that the pope has decided to weigh in on economic issues:

“Some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world,” Francis wrote in the papal statement. “This opinion, which has never been confirmed by the facts, expresses a crude and naive trust in the goodness of those wielding economic power and in the sacra­lized workings of the prevailing economic system.”

A few reactions:

First, throughout history, free-market capitalism has been a great driver of economic growth, and as my colleague Ben Friedman has written, economic growth has been a great driver of a more moral society.

Second, "trickle-down" is not a theory but a pejorative used by those on the left to describe a viewpoint they oppose.  It is equivalent to those on the right referring to the "soak-the-rich" theories of the left.  It is sad to see the pope using a pejorative, rather than encouraging an open-minded discussion of opposing perspectives.

Third, as far as I know, the pope did not address the tax-exempt status of the church.  I would be eager to hear his views on that issue. Maybe he thinks the tax benefits the church receives do some good when they trickle down.

Is the Affordable Care Act reducing healthcare costs?

1. The case for "yes."
2. The case for "no."

Update: Goodman on Krugman.

The Fed's Exit

Click here to read my column in Sunday's NY Times.

On W

Students often ask me what George W. Bush is like as a person.  This story from Dana Perino gives a great sense of what I saw and experienced as well.

IMF Research Conference

I recently had the pleasure of attending the IMF Annual Research conference (where I was a discussant of a paper by Reifschneider, Wascher, and Wilcox in Session 3). You can watch the conference online here.

The Map and the Territory

Click here to read my review, coming out in Sunday's NY Times Book Review, of Alan Greenspan's new book.

Spreading the Wealth Around

From a new CBO report. Click on graphic to enlarge.