Laurence J Kotlikoff

Eleven years ago, economic historian Niall Ferguson and I marked the euro’s birth with a Foreign Affairs article titled “The Degeneration of EMU.” We argued that absent centralized fiscal policy, euro-zone countries would fight over how much money the European Central Bank should print to help pay their bills. We gave the euro a decade.

Our economy desperately needs a swift kick in the pants, one that delivers millions of jobs and extra tax revenue. A sweeping, pro-growth tax reform, which I call the Purple Tax Plan, is the ticket. It would boost government coffers by 20 percent over time and make both red Republicans and blue Democrats happy.

Politicians and investors say Standard & Poor’s made a mistake when it cut the U.S.’s credit rating from AAA to AA+. I agree. I wonder why S&P; didn’t take it all the way down to CCC.

Debt crises make great drama. The big shots attend meetings, look terribly worried, then stomp out, accusing each other of bad faith. Finally, at the witching hour, they reach agreement and tell us all is fine, for now.

It’s time for a third way.

Our war in Afghanistan may be ending, but our war against our children continues in full force.

There’s a lot in a name. Just ask the so-called pinkos from the 1950s, or any ethnic group denigrated with a nasty epithet.

It’s a rare and wonderful thing to see a Republican agree with a Democrat, especially on an innovative idea. Yet when it comes to reforming our mortgage system, we need to tread carefully. Republican Congressman Scott Garrett of New Jersey and Democratic Senator Charles Schumer of New York are both considering proposing a Danish-type "covered" bond system. Treasury Secretary Timothy F. Geithner has also made favorable noises.

Love it or hate it, Medicare is driving itself and our country broke. The president’s proposed policy and that of Paul Ryan, the House Budget Committee chairman, are viewed as miles apart. The reality is different. And the silly name-calling is obscuring their considerable common ground. It’s even confusing a major presidential candidate.

In a far-off land called I’m Right, You’re Wrong, a fierce drug-legalization debate is raging. Half the people, libertarians, say drug use should be legal. The other half, moral purists, insist it shouldn’t.