Morning Must-Read: Josh Barro: We Need A New Supply Side Economics

Josh Barro: We Need A New Supply Side Economics:

Demand stimulation remains the right goal today, but it’s not going to be the right goal forever…. We’re going to need a new supply side economics that encourages people to work, invest and innovate…. [This] doesn’t mean an agenda of small-bore and meddlesome initiatives designed to promote specific industries, particularly manufacturing, as often described by President Barack Obama…. Invest in smart infrastructure…. Reform means-tested entitlements…. Move the deregulatory agenda down to the state and local level…. Deregulate America’s most overrated industry: real estate…. Reform intellectual property–by weakening it…. Improve education, somehow…. Admit more high-skill immigrants…. Make taxes more progressive. This isn’t a supply-side reform; in fact, it is likely to discourage investment and economic growth at the margin. But it’s the most effective way to offset rising pre-tax income inequality, and a revenue source will be needed to pay for some of the above reform ideas…