Sunday, February 12, 2006

Economic Policy Truth

Actually, I am not qualified to say whether this represents the truth or not, but it does seem plausible.  An Economic Snapshot, posted by the Economic Policy Institue, indicates that all of the job growth that has occurred during the Bush Administration can be accounted for by increased government spending.  They point out the significance of this: it means that tax cuts have not contributed to job growth.

This is as good of an illustration as any, of the notion that we need to adopt a more empirically rigorous method of managing public policy.  When legislation is enacted, we should monitor the outcome according to preestablished criteria.  If the desired outcome does not occur, the legislation should be modified or repealed.  To do otherwise, would be analogous to starting someone on blood pressure medication, then not checking to see if the patient's blood pressure goes down.

HT: I first encountered a reference to this at The Ward Report, who found it at TPM Cafe, who got it from MaxSpeak.