Justia columnist, George Washington law professor, and economist Neil Buchanan comments on the Romney/Ryan proposal to cut seniors’ benefits. (Although the Republicans are now backpedalling on the proposal, Buchanan points out that such cuts must be the very essence of their strategy, for they refuse to raise taxes, including taxes on the rich.) Buchanan contends that such cuts will harm not just the elderly, but also their children and grandchildren, because the harm to one generation will inevitably harm the others that follow. With younger people being forced to heavily subsidize and support their parents and grandparents, due to the cuts, Buchanan predicts that more families will then need to worry about their finances. Moreover, Buchanan adds, the brunt will fall not only on elders’ families, but also on our regional and national economies as well.
Justia columnist, George Washington law professor, and economist Neil Buchanan takes strong issue with Republican Vice-Presidential candidate Paul Ryan’s reputation for being a “serious thinker.” Like Newt Gingrich before him, Buchanan contends, Ryan is being falsely sold to the public as an “idea guy,” when, in truth, he says, Ryan is simply repeating conservative cant. Ryan’s undeserved reputation, Buchanan argues, derives in part from moderates and liberals in the D.C. commentariat who are playing along with the Ryan myth, and in part from the reality that only conservatives play what Buchanan calls “the ideology game.” Buchanan predicts, accordingly, that Ryan—like Gingrich before him—will eventually prove to disappoint even those who once showered him with praise.
Justia columnist, George Washington law professor, and economist Neil Buchanan comments on VP candidate Paul Ryan’s record. Buchanan argues that, while Ryan is being presented as a numbers maven, in fact Ryan is merely an ideologue with no experience in economics or in budgeting. Buchanan also argues that Romney would have been far wiser to opt for a running mate without so many positions that Romney now must repudiate. Buchanan charges that Ryan, rather than “running the numbers” simply makes them up—as, for example, Ezra Klein’s recent analysis, regarding Ryan’s long-term budget projections, shows. Buchanan also charges that Ryan uses mere assumptions—and unrealistic ones—when facts are needed, as with Ryan’s tax plan. Disagreeing even with Romney’s own economic advisers, Ryan, Buchanan notes, offers ideas and plans that any competent economist would reject. Although the media loves a debate, Buchanan urges them to admit that in this instance, only one side is on track, whereas Ryan is grievously off-base.
Justia columnist, George Washington law professor, and economist Neil Buchanan argues that, in the wake of the Supreme Court’s Affordable Care Act (ACA) decision, states should not opt out of the ACA’s Medicaid expansion, as they are allowed to do, and as many Republican governors have suggested that they will do. Buchanan argues—providing many specifics—that the states can easily afford the Medicaid expansion, especially as the states are being offered a generous deal by Congress; and that the federal government can afford it too. Overall, Buchanan concludes that the case for states’ opting for the expansion is overwhelmingly strong. In addition to being the right thing to do with respect to health care for states’ poor and near-poor citizens, he contends, choosing the Medicaid expansion proves to be fiscally responsible as well.
Justia columnist, George Washington law professor, and economist Neil Buchanan comments on an interesting and little-remarked aspect of the Supreme Court’s recent decision regarding the Affordable Care Act (ACA), also known colloquially as “Obamacare”: the decision’s concept of what constitutes free choice. Buchanan examines the significance of that concept in the ACA case, and notes that—in addition to the decision’s significance for Commerce Clause cases, and taxing power cases—the ACA decision may possibly affect other cases, in other areas of law, that also turn on what counts as the exercise of free will, versus what counts as coercion.
Justia columnist, George Washington law professor, and economist Neil Buchanan comments on New York Mayor Michael Bloomberg’s controversial size restrictions on soda servings, suggesting that Bloomberg’s critics’ points are misplaced. Buchanan argues that the size restrictions are much akin to a common sales tax, and points out the equivalence of taxes, restrictions, and lawsuits in remedying public harms. Moreover, he contends that the broad liberty objection that many have voiced in the face of Bloomberg’s proposal is flimsy, when carefully considered. And finally, Buchanan takes on the paternalism objection, as well—noting that marketing has distorted people’s choices substantially, and pointing out that we are in the midst of an obesity crisis, and that some government intervention may be warranted given the extreme nature of the problem, especially with respect to children's health.
Justia columnist, George Washington law professor, and economist Neil Buchanan takes aim at the arguments that the dissenting justices made regarding the Affordable Care Act (ACA), and, more specifically, regarding the taxing power. Those taxing power arguments, Buchanan contends, proved to be a dangerous red herring. Buchanan makes his case to that effect by using some ingenious hypotheticals; he argues that it is perfectly logical to deem a certain measure a tax for some purposes, but not for others. It is substance, he says, rather than form, that ultimately matters. Moreover, Buchanan notes, a tax by its nature need not be motivated by the government’s aim to raise money, although the ACA will, indeed, raise some money. Often, Buchanan points out, taxes are meant not to raise money but to incentivize or penalize certain behaviors. Ultimately, Buchanan notes that it is of no import, legally, that the ACA is not characterized as a tax; the key is that it, in part, operates as a tax.
George Washington law professor and economist Neil Buchanan argues that the current debate about Social Security is dangerously misleading in several ways. Buchanan faults both parties for using inaccurate rhetoric: President Obama, he says, must stop acting as if Social Security is in peril, and both the President and Congress must stop using Social Security as a bargaining chip in negotiations with Republicans. In turn, and most importantly, Buchanan argues, Republicans must stop misrepresenting Social Security’s current financial situation as being dire, when that really is not the case. The best approach now, he argues, is to leave Social Security alone and focus on improving the economy. Buchanan also calls for an end to misleading estimates regarding in what year Social Security will be “bankrupt,” as they only scare and mislead the public. Finally, too, he warns that calls to “Act now to save Social Security” are often plans to weaken Social Security, in disguise.
Justia columnist, George Washington law professor, and economist Neil Buchanan takes on the arguments of those who have advocated for austerity as a solution for America’s and other countries’ still-struggling economies. First, Buchanan rebuts, in detail, the claim that government spending cuts will revitalize the economy by getting the government out of the way of the private sector. Then, he counters the argument that the reason austerity did not work was that it was never truly adopted in Ireland, the U.K., the U.S. or elsewhere. The only good news relating to austerity measures, Buchanan says, is that we have not yet seen governments “doubling down” on austerity by advocating even greater degrees of austerity, after the first austerity programs have failed to improve their economic situation—which would, he notes, be truly disastrous as well as inhumane.
Justia columnist, George Washington law professor, and economist Neil Buchanan continues his series of columns commenting on what a Mitt Romney presidency would look like from an economic point of view. In this column, the second in the series, Buchanan considers what the roles of the House and Senate would be in setting economic policy in a possible Romney presidency; describes the role that House Budget Committee Chair Paul Ryan, of Wisconsin, would be likely to play; and postulates that, in a Romney presidency, America would see the imposition of austerity measures similar to those that we are now seeing in Europe, as well as the diminution of much of the federal government, with potentially disastrous consequences. Overall, Buchanan argues that a Romney presidency would only make America's current economic predicament much, much worse.
Justia columnist, George Washington law professor, and economist Neil Buchanan looks at past and current evidence to predict what might happen during a possible Romney presidency. First, Buchanan covers Romney’s botched attempt to court female voters by claiming erroneously that President Obama was to blame for layoffs affecting women, and traces the real responsibility for women’s layoffs to schoolteacher firings, which Romney has supported. Buchanan also argues that it will be difficult for voters to isolate a clear set of beliefs that Romney has consistently held dear, which is troubling. Buchanan asks who the “True Romney” really is, and warns that it may not be the moderate Romney who governed Massachusetts. Instead, he contends, today’s Romney will stay conservative in order to gain a second term as president. Finally, Buchanan contends that, even if Romney did remain moderate while in the White House, Republican extremists at every level of government would still push him toward extremism at every juncture.
Justia columnist, George Washington law professor, and economist Neil Buchanan takes strong issue with several arguments that have often been made by Republicans in the run-up to this year’s presidential election. Specifically, Buchanan counters arguments that taxpayers should not help pay for others’ college educations—and perhaps not their K-12 educations, either. He also takes on the two mutually contradictory arguments that (1) college is a waste of time and money, and (2) college education is the only force driving economic inequality. As to the first argument, Buchanan points out that education is a key indicator of economic progress, and that as we stagnate in our population’s educational achievement, other countries eagerly seek out more college education for their own people. As to the second argument, Buchanan argues that it can be rebutted by basic statistics, and that, even if it were true, the logical response would be to broaden American educational attainment.
Justia columnist, George Washington law professor, and economist Neil Buchanan comments on the recent Republican attack on American education. Buchanan begins by emphasizing the copious evidence showing that education leads to national prosperity. In addition, he contends that it only makes sense for everyone who benefits from our educational system—meaning all Americans—to together pay for that system, including via student loans. Citing recent comments by candidates Mitt Romney and Rick Santorum, Buchanan critiques and opposes their, and other Republicans’, seeming disdain for education. Buchanan argues that if you focus on the facts, education has been proven, over and over, to be well worth its cost. Other countries clearly know this, Buchanan points out, citing notable examples, and if we forget this truth, he says, we will surely fall behind as a nation.
Justia columnist, George Washington law professor, and economist Neil Buchanan contends that a current assumption that lies beneath many Republican (and sometimes also Democratic) speeches and positions—the assumption that tax cuts are always good—lacks compelling empirical support. Buchanan focuses on the costs of cutting taxes, and takes economists, as a group, to task for not conveying more persuasively to the public that these costs do exist. While politicians tout tax-cut benefits, Buchanan argues, economists ought to underline tax-cut losses, too—such as the losses of essential government programs that, due to tax cuts, are closed or underfunded. He also points to recent commentary, based on empirical studies, from prominent economists Christina Romer, Uwe Reinhardt, and Paul Krugman, pointing out how surprisingly little taxes affect the economy.
George Washington law professor and economist Neil Buchanan comments on the financial relationship between U.S. and China—which he argues is far from as problematic as some claim. Buchanan covers the issues that have been raised regarding China’s holding U.S. debt; argues that the mutual China/U.S. dependence is ultimately healthy; discusses a possible worry on China’s part that the U.S. would accomplish a stealth repudiation of its debt through deliberate inflation, but deems that worry unrealistic; and considers whether the U.S. holds political power over China due to its holding our debt. Ultimately, Buchanan suggests, Americans should not be particularly concerned about the U.S.-China relationship, but should be quite concerned by the situation of the have-nots in both countries. Both governments, Buchanan concludes, need to ensure that the prosperity their country enjoys benefits not just the elites, but also the whole of society. While China is besting us in infrastructure improvements, he notes, it is not, at the same time, improving its citizen’s lives as it ought to. Yet the economic relationship between our two nations, he says, is sound.
George Washington law professor and economist Neil Buchanan comments on the state of the economics profession today, linking it to the frustration many Americans feel when economists seem unable to come up with a clear set of prescriptions as to how the economy can be improved. Buchanan traces the root of the problem to the way in which economists are now trained, and the expectations placed upon PhD candidates. Ideally, Buchanan says, economists would be trained to study important and interesting real-world issues. Instead, he observes, they are not asked to actually try to understand the economy, but rather to master certain technical skills and to gain a command of topics in advanced mathematics that have limited, if any, direct real-world applications. Buchanan notes that some excellent economists do learn to grapple with real-world problems, but he observes that they do so more by happenstance, than as a result of their training. He traces the roots of this longstanding situation, and predicts that it will only change if and when the incentives presented to economics PhD candidates change.
Justia columnist, economist, and George Washington law professor Neil Buchanan comments on the controversy regarding the “Buffett Rule,” Warren Buffett’s observation that he surely should not pay a lesser percentage of his income in taxes than his secretary does. This rule—and the principle behind it—proved to be especially relevant this week, Buchanan notes, when presidential candidate Mitt Romney released some of his tax returns. Buchanan explains how wealthy Americans typically receive special tax treatment, and argues that it is not true that—as some claim—this treatment is necessary to induce the wealthy to invest. He also lauds the Buffett Rule as a key step toward reaching our ultimate goals as a nation, and ensuring the fair treatment of all Americans, regardless of income.
Justia columnist, George Washington law professor, and economist Neil Buchanan responds to some of the common criticisms of interdisciplinary legal scholarship, defending such scholarship on the ground that it makes a valuable contribution. He begins by noting how legal scholarship has changed over the years, beginning around the 70’s, from a field that primarily summarized legal developments, to one that primarily describes how the law could and should change. As a result of this evolution, Buchanan argues, it made sense to bring in other academic disciplines to assist law professors who were interested in improving policies, and who wanted to draw from the relevant schools of thought in framing their policy recommendations and developing their ideas. There has been nostalgia on the part of some—and, especially, some judges—for legal scholarship the way it used to be: primarily focused on describing the law, not improving it. But Buchanan argues that this nostalgia, while understandable, is misplaced, for combining legal expertise with expertise in another field can importantly further the debate on important policy matters. Some questions, Buchanan notes, are truly interdisciplinary and for these, interdisciplinary scholarship is not just useful, but vital.
Justia columnist, George Washington law professor, and economist Neil Buchanan comments on the state of college football, and how it can be improved. Buchanan argues that what is needed is not a movement toward more professionalism in sports, as some have suggested, but rather measures that would both ensure that college athletes do not face serious physical injury (and are taken care of, physically and financially, if they do), and also guarantee that players truly receive the college education that is supposed to come along with their admission. In addition to putting forward his own proposals, Buchanan also considers Taylor Branch’s analysis of the issue in The Atlantic, and Joe Nocera’s commentary on it in the Sunday New York Times Magazine.
Justia columnist, George Washington law professor, and economist Neil Buchanan takes strong issue with the claim that “contractionary” policies—such as budget cuts, and tax increases imposed on the non-wealthy—can help the American economy. To the contrary, Buchanan contends that such policies will only shrink the economy, and that the right approach to improving America’s economy is to use government spending and tax cuts aimed at the non-wealthy, who are very likely to spend the extra money that tax cuts free up and thus give a strong boost to the economy. And yet, Buchanan points out, all we have seen from Congress, over the past year, has been a series of contractionary approaches. Buchanan examines the case for invoking “expansionary austerity” in America now, and finds it sorely lacking when tested against the relevant evidence—as found in the recent and past experiences of America and of other nations. He concludes, based on this evidence, that “expansionary austerity” is simply a pipe dream.