The Supply-Side Headwinds that Could Cause a Recession
Most discussion about the possibility of recession focuses on the Federal Reserve’s monetary policies. But there are also factors on the supply side of the economy that may tip the U.S. economy into a recession. Among them are the tax and regulatory policies of the Biden administration.
This is the opening paragraph of David R. Henderson and Casey B. Mulligan, “Biden is Practically Engineering a Recession,” Wall Street Journal, March 22, 2022 (March 23 print edition.)
The combined effect of increased regulation and increased taxation of capital is a reduction in employment growth by about 0.25 percentage point a year and of real GDP growth by about 1.1 points a year.
Read the whole thing. It’s gated, but I’ll publish the whole thing here on July 23.