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Hands Off: Why the Government is a Menace to Economic Health

av Susan Lee

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Democrats may want to raise taxes and Republicans may want to lower them, but there is a widespread consensus that government has the power to manage the economy. This, according to Susan Lee, is a dangerous delusion. Why doesn't the economy perform better? Easy. Government interference. Government cannot fix economic problems. In fact, government only makes things worse by creating unintended consequences, damaging uncertainty, and regulatory gridlock. Unlike many books on economics, "Hands Off" is based not only on theory but also on the actual experiences of people trying to cope with ever-changing and often contradictory government policies. Susan Lee shows how policymakers, bowing to Depression-era economics that argued that government could "fine-tune" the economy, actually brought the country stagflation in the 1970s, budget deficits in the 1980s, and recession in the 1990s. "Hands Off" also introduces "new classical economics", a theory that explains how people can render economic policy ineffective by anticipating government action. Simply put, the new classical economics shows why government cannot deliver on its… (mer)

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Democrats may want to raise taxes and Republicans may want to lower them, but there is a widespread consensus that government has the power to manage the economy. This, according to Susan Lee, is a dangerous delusion. Why doesn't the economy perform better? Easy. Government interference. Government cannot fix economic problems. In fact, government only makes things worse by creating unintended consequences, damaging uncertainty, and regulatory gridlock. Unlike many books on economics, "Hands Off" is based not only on theory but also on the actual experiences of people trying to cope with ever-changing and often contradictory government policies. Susan Lee shows how policymakers, bowing to Depression-era economics that argued that government could "fine-tune" the economy, actually brought the country stagflation in the 1970s, budget deficits in the 1980s, and recession in the 1990s. "Hands Off" also introduces "new classical economics", a theory that explains how people can render economic policy ineffective by anticipating government action. Simply put, the new classical economics shows why government cannot deliver on its

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