Tuesday, September 06, 2005

Jude Wanniski called "crazy"

Jonathan Chait in an L.A. Times opt-ed piece called the late Jude Wanniski "crazy":
Wanniski had no formal economics training. He helped devise and propagate this theory while working as an editorial writer for the Wall Street Journal. It was a classic, nutty, single-factor-to-explain-everything theory. In "The Way the World Works: How Economies Fail — and Succeed," his seminal exegesis of supply-side economics, Wanniski interpreted literally all of human development as a response to tax rates.
Tax rates might not explain everything but they sure explain a lot.Texas now has 6 of the largest American cities(the only state to have 6 in the top 25).New Hampshire continues to outpace Massachusetts in population growth in the last couple of decades.Nevada seems to lead the nation in percentage growth(year after year),in recent past.The above examples of the growth states are all states without a state income tax.I doubt that's an amazing coinicidence.Do you really think Massachusetts would have so many people leaving if they didn't have a state income tax?