Editor's note
This week my podcast co-host, John Guy, grills me on the nature of economics and the pretentions of economists. Catch it on Who Gets What? available at mortonjohn.libsyn.com
Not too many days ago there was panic in the streets of Indianapolis. The state had planned for $2 billion too much revenue. Our Legislature had to cut spending and raise revenues to meet the new forecast.

As I read coverage of that crisis, I didn’t notice who made the erroneous forecast. Was it a state agency? Perhaps a panel of economists from the state universities? Or some outside, commercial forecasting business?

Was there to be any retribution, any punishment, for the dastardly deed? Now I must pause. Lately, a good friend has upbraided me for failing to suggest solutions to problems identified in these columns. I will attempt to do that.

Kneecapping. Take the miscreant(s) out into the alley and break some kneecaps. It will be a deterrent and influence future forecasters, proving our state’s bold sincerity about fiscal matters.

What did our sullen solons actually do? They immediately raised the cigarette tax by $2/pack and confidently announced an additional $800 million would be raised by that act alone.

That was good. It might deter some smoking activity. But we should also issue tickets to all those folks smoking outside in the open air. You’ve seen them in front of buildings, furtive fummers, exercising their rights as they understand them. Fine them and confiscate their smoking materials.

My positively positive program would have included increasing taxes on tickets for professional athletic competitions and musical events where the music was written within the past 50 years.

Further, terminate the reduction of the Indiana income tax rate. Next, place a 1 percent added tax on household incomes over $200,000 a year. This should yield Indiana $100 million or more annually.

The major problem of America is too much money in the hands of consumers and too little money in the hands of governments.

Our streets and infrastructure are in poor repair. Our children are poorly educated. Our TV sets and vehicles are egregiously oversized. The solution: reduce consumer consumption.

This is only a matter of tactical taxation and robust regulation. Start with automobiles. Tax them by their weight and footprint. Those data are readily available for all vehicles on the road. It could be put in place within the next year.

Worried about data centers? Easy! Use marginal cost pricing. If the amount of energy used rises, charge those who use more than they did previously for the added costs of production. Don’t push the bill onto Steady Eddy, the consumer.

Simple solutions for serious problems. Perfectly cheerful and consistent with both Conservative and Liberal thought.
Morton J. Marcus is an economist formerly with the Kelley School of Business at Indiana University. His column appears in Indiana newspapers, and his views can be followed his podcast.

© 2025 Morton J. Marcus

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