Thursday, January 29, 2009

Two theories I have problems with

Supply-side economic theory is similiar to global warming--it has a little truth that is abused to explain everything. This isn't a comparison many people make, but that what makes this blog special (at least to me). Supply side economists think that tax rates explain everything about the economy, but American history shows they have a limited effect on the American economy. The economy grew fairly welin the 1950s and early 1960s despite a top rate of 91%. Jimmy Carter signed a capital gain tax cut in 1978; not too many people noticed an economic improvement.When Bill Clinton increased the top tax rate in 1993, supply-siders at the Wall Street Journal and elsewhere predicted a recession. That did not happen. George Bush signed several tax cuts.. well, I'm just beating a dead horse.

Man-made global warming is similiar because it takes one fact, that CO2 does affect temperature, to explain everything about the climate. There are many other factors, such as wator vapor, that are not adequately explained by the climate models. See physicist Freeman Dyson's short book, A Many-Colored Glass: Reflections on the Place of Life in the Universe. He concedes (as do I) that global warming is a problem, but that it has been overblown by politicians and the media.

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