Critics of “austerity” budget measures claimed victory recently when a group of researchers from the University of Massachusetts Amherst discovered a small error in a widely cited paper by Carmen Reinhart and Ken Rogoff that showed economic growth was lower in countries with higher debt loads.  But according to Cato scholar Michael D. Tanner, those critics need to face a few facts before they declare the war won.

• “Krugman’s Still Wrong,” by Michael D. Tanner
• “Where Are the European Spending Cuts?,” by Daniel J. Mitchell
• “So-Called Austerity and Growth in Europe,” Cato Video

The Senate this week will turn its attention to the bipartisan “Gang of Eight” immigration reform bill. Recent criticism of the plan has focused on the potential costs to American taxpayers.  But Cato scholar Alex Nowrasteh argues that any credible analysis must employ “dynamic fiscal scoring,” which more accurately measures the total impact of legislation on the economy.  “Using dynamic scoring to predict the effects of legislation is as relevant for immigration reform as it is for tax cuts,” says Nowrasteh. “Any analysis that doesn’t must be judged as lacking.”

• “Heritage’s Flawed Immigration Analysis,” by Alex Nowrasteh
• “How to Make Guest Worker Visas Work,” by Alex Nowrasteh
• “Poor Immigrants Use Public Benefits at a Lower Rate than Poor Native-Born Citizens,” by Leighton Ku and Brian Bruen

The Senate has passed a bill, known as the Marketplace Fairness Act, that would require large Internet retailers to collect sales taxes on all purchases for the state and local governments of the buyers.  The bill now moves to the House, where the GOP is divided on the issue. Cato scholar Daniel J. Mitchell argues that this legislation is bad news for tax policy and bad news for privacy.

• “What’s Wrong with Internet Sales Tax,” by Daniel J. Mitchell
• “More Internet Sales Taxes—and Your Privacy Compromised,” by Jim Harper
• “Internet Taxation: Should States Be Allowed to Tax outside Their Borders?,” Cato Event Video

The Senate recently blocked a compromise measure that would have compelled unlicensed sellers at gun shows and online gun sellers to conduct background checks. Senator Joe Manchin has indicated that he plans on reintroducing the legislation. While Cato scholars have generally questioned the usefulness of background checks, in the New York Times, Cato chairman Robert A. Levy makes the case that the background checks are a “reasonable” price to pay for the elements of the legislation more favorable to gun rights proponents.

• “Further Thoughts on Sensible Gun Legislation,” by Robert A. Levy
• “Gun Debate Won’t End until There Is Respect on Both Sides ,” by Trevor Burrus
• “Schumer-Toomey Gun Bill Deserves a Committee Hearing,” by David B. Kopel