New Wealth of States Book on Kindle

The sequel to the original groundbreaking exposé, Wealth of States, adds to the mounting pile of evidence of which policy choices lead to economic growth. Included is an even more magnified view of – not just state – but city-level taxes and their impact on prosperity. You’ll also find an analysis of how equity prices respond to state tax policies – an often overlooked yet essential tool for properly managing equity portfolios.
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Recent News

The Laffer Curve turns 40: the legacy of a controversial idea

By Stephen Moore December 26, 2014 Stephen Moore is chief economist at the Heritage Foundation and a co-author with Arthur Laffer of “An Inquiry Into the Nature and Causes of the Wealth of States.” It was 40 years ago this month that two of President Gerald Ford’s top White House advisers, Dick Cheney and Don Rumsfeld, gathered for a steak dinner at the Two Continents restaurant in Washington with Wall Street Journal editorial writer Jude Wanniski and Arthur Laffer, former chief economist at the Office of Management and Budget. The United States was in the grip of a gut-wrenching recession, and Laffer lectured to his dinner companions that the federal government’s 70 percent marginal tax rates were an economic toll booth slowing growth to a crawl. To punctuate his point, he grabbed a pen and a cloth cocktail napkin and drew a chart showing that when tax rates get too high, they penalize work and investment and can actually lead to revenue losses for the government. Four years later, that napkin became immortalized as “the Laffer Curve” in an article Wanniski wrote for the Public Interest magazine. (Wanniski would later grouse only half-jokingly that he should have called it the Wanniski Curve.) This was the first real post-World War II intellectual challenge to the reigning orthodoxy of Keynesian economics, which preached that when the economy is growing too slowly, the government should stimulate demand for products with surges in spending. The Laffer model countered that the primary problem is rarely demand — after all, poor nations have plenty of demand — but rather the impediments, in the form of...

Fox and Friends Sunday 12/14

Perhaps there is no better family gift to receive than a good paying job for you and yours in 2015. We know from our long-term evidence within our book Wealth of States that capital (and by function – jobs) moves to where it is most welcome. Donna Rosato for Time Magazine summarized an annual Manpower Group survey that asks more than 18,000 employers where they plan to increase hiring into next year. The following clip originally-aired on Fox and Friends by Wealth of States co-author Travis H. Brown breaks down what employers are saying. To look at the long-run trends where Americans are finding work and taking their wallets, download the How Money Walks application to your...

Bloomberg: The Napkin Doodle That Launched the Supply-Side Revolution

1974 Economist Arthur Laffer sketches his theory of tax policy over dinner with Wall Street Journal writer Jude Wanniski and Ford administration officials Donald Rumsfeld and Dick Cheney, kick-starting the rise of supply-side economics. Forty years after one of the most famous dinner-napkin doodles in American history, Laffer, Cheney, and Rumsfeld reunited in Washington, D.C., on Nov. 10. Tell us what you were doing in 1974. Rumsfeld: I was called back from Brussels, where I was U.S. ambassador to NATO, to chair the transition to the presidency of Gerald Ford. Then I went back to Belgium, and then I was called back again to serve as White House chief of staff. Cheney: The day after Nixon announced his resignation, I got a call from Don’s secretary in Brussels wanting to know if I would meet Don at the airport—he was flying in the next day. When he arrived he was presented with a letter from the president asking him to come straight to the White House. He asked me if I would join him, and I was happy to do so. And so, on Aug. 9, 1974, we entered the back of the White House, where we had been during the first Nixon term. What was the economic climate at the time? Rumsfeld: The country was faced with some serious economic problems. And what was coming up through the system was not what I felt represented the direction the country ought to go. So Dick [and I] were looking for all the help we could get. Laffer: Ford was proposing something called Whip Inflation Now. It was a tax increase, a...

The Dinner Napkin That Changed the U.S. Economy

Dec. 4 (Bloomberg) –- For its 85th anniversary, Bloomberg Businessweek chronicles the most disruptive ideas of the past 85 years. In 1974, economist Arthur Laffer sketches his theory of tax policy over dinner with Wall Street Journal writer Jude Wanniski and Ford administration officials Donald Rumsfeld and Dick Cheney, kick-starting the rise of supply-side economics. Forty years after one of the most famous dinner-napkin doodles in American history, Laffer, Cheney, and Rumsfeld reunited at that same restaurant. (Video by Brandon Lisy. Music by Andy Clausen) (Source:...

Fox and Friends: Where You Live matters!

As reported on Fox and Friends, where you live matters to your average wage from your job.  We compared average wages from all industries by state and the relative growth over the last three years using recent figures from the United States Bureau of Economic Analysis (BEA). America’s heartland, from North Dakota to Texas has increased wage growth the most as a region.  A more stable housing market, combined with lower tax regimes, can help explain some of this relative gain. For more information about income performance, read our Wealth of States analysis at the long run connection between economic growth and job...

Stephen Moore at the Wichita Pachyderm Club

Heritage Foundation Chief Economist Stephen Moore spoke to a luncheon gathering at the Wichita Pachyderm Club about his new book, “An Inquiry into the Nature and Causes of the Wealth of States,” Sept. 5,...

All Smiles in Branson!

Located just a couple of miles from the border with Arkansas, the small city of Branson, Missouri, much on which to pride itself. Over the past three decades the city has undergone dramatic development with its population increasing from just over 2,000 residents in 1980 to over 10,000 in 2012. With nearly eight million tourists traveling to Branson last year, the city boasts over 100,000 hotel rooms and over 60,000 theater seats – a remarkable feat for a city of only 10,000 residents. Branson’s success is undeniable and is a testament to the entrepreneurship of its citizens. The city’s accomplishments are a result of private investment and risk taking at its finest – not government largess. The economic vitality of the city can be seen in the air traffic statistics of the Springfield National Airport, which in 2012 served over 360,000 passengers, making it the third-largest airport in Missouri. This compares to only 87,000 passengers in 1990 – a more than four-fold jump in traffic. By way of comparison, the number of passengers flying to St. Louis has declined by nearly a third since 1990. With tourism being the economic lifeline of Branson, it is important not to take this success for granted. Branson competes for tourist dollars with such locations as Orlando, FL, Austin, TX, and Pigeon Forge, TN, and the city must continue to make investments that will attract more tourists if it wants its economic success to continue. An example of such an investment is the recently opened Branson Airport, which will bring even more tourists to the city. In fact, Branson Airport is the only...

Want more on the cost of raising a child in America? Start here:

You may be reading this after seeing our Fox & Friends September segment covering the cost of raising a child in America.  Each month, Wealth of States co-author Travis H. Brown brings a wide array of kitchen table topics that impact your family to Fox & Friends and many other shows.  This month’s segment draws from a recent federal government report entitled “Expenditures on Children by Families, 2013“. Source: The True Cost of Raising A Child – NerdWallet If you have a particular question or interest, email us at admin@wealthofstates.com...