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Building Better Social ProgramsHow Evidence Is Transforming Public Policy$
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David Stoesz

Print publication date: 2020

Print ISBN-13: 9780190945572

Published to Oxford Scholarship Online: February 2020

DOI: 10.1093/oso/9780190945572.001.0001

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Starving the Beast

Starving the Beast

Chapter:
(p.80) Chapter 4 Starving the Beast
Source:
Building Better Social Programs
Author(s):

David Stoesz

Publisher:
Oxford University Press
DOI:10.1093/oso/9780190945572.003.0005

The evolution of the Chicago school of economics and public choice theory provided an alternative to Keynesian economics, which had served as the basis for financing the welfare state. Accordingly, Grover Norquist established Americans for Tax Reform to contain taxes, denying the welfare state essential revenues. Despite the success of the antitax movement, unanticipated problems became evident: the expansion of tax expenditures exacerbated inequality and skyrocketed public debt. Behavioral economics emerged as a research-based alternative to conventional economic theory.

Keywords:   economic theory, tax cuts, behavioral economics, neoliberalism, new public management

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