What’s the best way to boost the economy? Hint — it’s not tax cuts

Several state leaders have taken to promoting more income tax cuts as the best way to improve Oklahoma’s economy. But is that true? We recently heard Timothy Bartik, senior economist at the Upjohn Institute for Employment Research, discuss the latest research on which state-level policies are most effective at boosting the economy. [You can see the full transcript of his remarks here.]
Bartik explained that across-the-board business tax cuts are usually not the most cost-effective tool for economic development. Because state government resources are small relative to the size of a state’s economy, we need policies with a high “bang-for- the-buck” to see meaningful increases in per capita earnings. Across-the-board cuts are not targeted enough to account for the opportunity cost of paying for them though reductions in public services or increases in other taxes.
Instead, Bartik recommended five policies with proven effectiveness and high bang-for-the-buck: Read the rest of this entry »


Young children have one of the strongest claims for public support. They are dependent on us and clearly not to blame for any economic hardships they face.
