Monday, November 13, 2006

NoPigou in The Economist

Big hit: The Economist plugs in to the NoPigou Club cyberdebate over Greg Mankiw's plan to create the U.S. economy's next big tax distortion.
Big loss: Republican desperation is creating Pigouvian craziness. David Frum says Bush should introduce a carbon tax, and is immediately inducted into Mankiw's circle. More on this at the NoPigou clubhouse shortly.


Blogger Steve said...

Great work Terence!

The curious thing about Pigou Club proponents is that they seem oblivious to the incentives they themselves face.

It is awfully hard to be a laissez-faire economist. It just doesn't pay. Far better to cook up schemes to interfere with the market and sell your ideas to politicians. This Pigou tax idea is one among many schemes that economists dream up.

To be sure, if you are going to interfere in the market, it usually helps to listen to the economists. Still, harebrained schemes designed by economists can also do lots of damage to the economy.

8:10 AM  

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