Friday, July 20, 2012

How to lose an election: Sound economics

Good Economics but Bad Politics?  As I've noted before, there is actually broad agreement among economists about many policy areas.  Veronique De Rugy points to a segment on NPR highlighting this point, along with the political perils of acting on this agreement.
On Wednesday, NPR’s Planet Money had a very good segment that listed six policies that economists from all sides of the political spectrum could agree on but no politicians would ever dare to run with.

Here are the policies:
  • Eliminate the mortgage interest tax deduction.
  • End the tax deduction companies get for providing health-care to employees.
  • Eliminate the corporate income tax.
  • Eliminate all income and payroll taxes. All of them.
  • Tax carbon emissions.
  • Legalize marijuana.
According to the story, no politicians who plan on winning would run with these policies.