The foundations of economic freedom are personal choice, voluntary exchange, and open markets. As Adam Smith, F. A. Hayek, and Milton Friedman stressed, freedom of exchange and minimally regulated markets provide the fuel for economic progress. Without exchange and entrepreneurial activity that is coordinated through markets rather than by governments, modern living standards would be impossible. Cato scholars explore policy reforms that could increase growth by strengthening property rights and the rule of law, safeguarding the value of money, reducing excessive taxes and regulations, scaling back government interference with trade and immigration, and reducing federal spending on programs that harm economic productivity.
Economics
UPCOMING EVENT • April 20, 2021
After COVID-19: Building an Inclusive Economy for California
COVID-19 and its fallout have been devastating for California’s economy at every level. But low‐income and traditionally marginalized communities have been among the hardest hit. This conference brings together a diverse group of political, business, and academic leaders to discuss regulatory and other barriers to rebuilding economic opportunity in poor and minority communities ravaged by COVID-19.
Biden Corporate Tax Increase
With Biden’s increase, the U.S. federal‐state corporate tax rate would rise to 33.4 percent, far above the averages abroad.
Economics in One Virus: An Introduction to Economic Reasoning through COVID-19
The pandemic has shown us that there is a price to be paid for failing to understand economic consequences. Ryan Bourne catalogs many of the missteps in his new book, Economics in One Virus: An Introduction to Economic Reasoning through COVID-19.
Biden’s Anti‐Infrastructure Plan
Biden would take with one hand what he gives with another, and the overall economy would shrink as markets are replaced by political resource allocations.
The Welfare State and Sovereign Debt: Heading for a Cliff
Low interest rates and low inflation can lull us into thinking that government debt isn’t a problem. But it is.
Fact Check: Yes, There Are Economists against Biden’s $1.9 Trillion Plan
President Biden says that “every single major economist” supports his American Rescue Plan. That is not even close to true.
‘Taxing Corporations’ Might Be Good Politics, but It’s Still Bad Policy
It’s no wonder that countries around the world have been lowering corporate tax rates for 40 years.
Featured Book
Economics in One Virus: An Introduction to Economic Reasoning through COVID-19
Economics in One Virus draws on the dramatic events of 2020 to bring to life some of the most important principles of economic thought. Packed with supporting data and the best new academic evidence, those uninitiated in economics will be given a crash course in the subject through the applied case study of the COVID-19 pandemic to help explain everything from why the United States was underprepared for the pandemic to how economists go about valuing the lives saved from lockdowns.