Please read Cochrane growth article. Link below and help with the questions. I

http://faculty.chicagobooth.edu/john.cochrane/research/papers/cochrane_growth.pdf

1. Why is growth important? (Two reasons, one refers to the public budget, the other does not.)

2. What is the source of growth? What is the only thing that matters in the long run? Why?

3. Why does Cochrane advocate pulling weeds? Why do not policy programs follow this strategy?

4. What is the difference between environmental regulation and economic regulation?

5. What is the difference between "deregulation" and "smart regulation?"

6. What evidence backs this claim: "Regulation did not fail for being absent. Regulation failed for being ineffective."

7. How should regulation handle the debt finance/equity finance question?

8. List some of the contradictions in energy policy. What is the simple solution?

9. Why should corporate tax rates be zero? Who pays corporate taxes?

10. Briefly describe what tax policy should be.

11. What does Cochrane think about tax expenditures?

12. Why does our political system mix goals?

13. Why is "simple" important for the tax code?

14. What is the straightforward problem and solution to our debt and deficits?

15. Cochrane would not eliminate social programs, he would design programs that eliminated disincentives. What does this mean?

16. What does Cochrane think is becoming the norm in labor because of regulation?

17. Briefly sketch out Cochran's immigration plan.

18. Cochran advocates school vouchers as education reform. Why?

19. Why should we sweat the small stuff?

20. What would Cochran spend more money on?