The Decline of Growth

Source: EconLog
by Scott Sumner

“There is increasing support among economists for interventionist policies in areas such as labor market regulation, antitrust, barriers to free trade and investment, fiscal stimulus, and anti-growth tax policies. Late 20th-century ideas such as welfare reform, supply-side tax reform, fiscal conservatism and globalization are becoming less and less popular among economists. There are several possible ways that this change in ideology might be related to the rise in anti-growth policies: 1. The two changes might be totally unrelated. 2. Economists might be opportunistically latching onto a change in the zeitgeist. Telling policymakers what they want to hear. 3. Economists might be reacting to the same stylized facts as policymakers, and interpreting the implications of those facts in a similar way. I lean toward the third view.” (01/11/23)