Justin Wolfers on Twitter: ".@CarlyFiorina: I'm so progressive that I gave parental leave at HP & am so conservative that I won't give it to you. http://t.co/VZjKwCDjxj"
Liveblogging World War II: August 14, 1945: The Kyūjō incident

What Rates of Economic Growth Could Better Economic Policy Produce Over an Eight-Year Presidential Term?

Over at Equitable Growth: The rate of growth of U.S. economic potential is currently something like 2.4%/year. The 1/e time for the economy's convergence to its long-run steady-state growth path is roughly twenty years--that is, the economy will close roughly 5% of the gap between its current potential and its long-run steady-state growth path a year. READ MOAR

A huge institutional reform--one that was completely successful, and had a much broader impact than an ObamaCare--that raised the long-run productivity of the American economy by 20% would thus raise the growth rate over a president's tenure in office from 2.4% to 3.4%. And that is far outside what we can expect to follow from any set of even the most far-reaching and successful changes in policy.

For unreasonably optimistic assessments of the benefits of the FAIR tax, I believe the boost to growth is 0.2%-points per year.

Thus over at Twitter, Justin Wolfers and others: