Matthew Mitchell

Senior Research Fellow
Adjunct Professor of Economics, George Mason University

Matthew Mitchell is a senior research fellow at the Mercatus Center at George Mason University and the lead scholar on the Project for the Study of American Capitalism. His primary research interests include economic freedom and economic growth, public choice economics, and the economics of government-granted privileges to businesses. Dr. Mitchell received his PhD and his MA in economics from George Mason University. He received his BA in political science and BS in economics from Arizona State University.

Dr. Mitchell currently serves on the Joint Advisory Board of Economists for the Commonwealth of Virginia where his input helps the state formulate its revenue expectations. He has testified before the U.S. Congress and his work has been featured in numerous national media outlets, including the New York Times, the Wall Street Journal, the Washington Post, the Washington Times, National Public Radio, and C-SPAN.

Mitchell blogs about economics and economic policy at Neighborhood Effects.

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Published Research

Luigi Zingales, A Capitalism For the People

Matthew Mitchell | Feb 01, 2013

In the end, he endorses a “zero tolerance” approach to subsidies and tax loopholes while he is more comfortable with regulatory interventions. This is curious. The regulatory process is opaque and complex, arguably making the code of federal regu- lations an easier place to hide a targeted privilege than the federal budget or the tax code. But Zingales hasn’t enough time to dwell on such considerations; he has too many other interesting and creative ideas to consider.

Economic Freedom and Economic Privilege

Matthew Mitchell | Jan 10, 2013

Since at least the days of Adam Smith, economists have suspected that economic freedom was a necessary, if not sufficient, condition for human prosperity. Smith wrote of freedom as a “system of natural liberty” and declared that “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice.”…

What Went Wrong With the Bush Tax Cuts

Matthew Mitchell, Andrea Castillo | Nov 28, 2012

Critics of the Bush tax cuts often dismiss the tax changes as a failed experiment in free-market economics. Noting that economic growth was slower in the years following the cuts than in the years preceding them, some critics see the experience as evidence that tax cuts simply do not work. But the claim that these tax cuts exemplified free-market economic thinking is baseless.

The Pathology of Privilege: The Economic Consequences of Government Favoritism

Matthew Mitchell | Jul 08, 2012

The financial bailouts of 2008 were but one example in a long list of privileges that governments occasionally bestow upon particular firms or particular industries. Whatever its guise, government-granted privilege is an extraordinarily destructive force. It misdirects resources, impedes genuine economic progress, breeds corruption, and undermines the legitimacy of both the government and the private sector.

More Published Research

Working Papers

Wireless Taxes and Fees: A Tragedy of the Anticommons

Matthew Mitchell, Thomas Stratmann | Jan 23, 2012

In this working paper, the authors find that wireless tax rates increase with the number of overlapping tax bases.

Institutions and State Spending

Matthew Mitchell, Nick Tuszynski | Oct 03, 2011

This paper summarizes the empirical investigations of sixteen state-level institutions. The lesson for both state and federal policy makers is that there are a number of institutional reforms that seem likely to put spending on a more sustainable path.

Would More Infrastructure Spending Stimulate the Economy?

Veronique de Rugy, Matthew Mitchell | Sep 12, 2011

Four years into the deepest recession since World War II, the U.S. economy expanded at a rate of only 0.7 percent in the first half of 2011. This means that the economy is growing at a slower pace than the population and that capita output continues to fall. In response, the president has announced a plan for yet more deficit-financed stimulus spending.

Pick Your Poison: Do Politicians Regulate When They Can't Spend?

Noel D. Johnson, Matthew Mitchell, Steven Yamarik | Jun 28, 2011

In this paper, the authors investigate whether laws restricting fiscal policies across U.S. states lead politicians to regulate more instead.

More Working Papers

Charts

The Cost of Rent-Seeking: Actual and Potential Economic Growth Matthew Mitchell \| Jul 23, 2012 One of the things holding productivity back and, along with it, compensation, is rent-seeking. When governments dispense privileges to particular firms, entrepreneurs spend their time asking politicians for those privileges instead of devising new ways to create value for customers. Economists call this activity rent-seeking, and research suggests that it depresses productivity growth.	Beyond Bailouts: What Is Cronyism? Matthew Mitchell \| Jul 08, 2012 While the bailouts of hundreds of firms in 2008 are, for many, the most prominent example of cronyism in modern American history, they are only the tip of the iceberg. Bailouts are but one example in a long list of privileges that governments give to particular businesses and industries.
State and Local Governments Outpace Growth of Private Sector Matthew Mitchell \| Jun 11, 2012 State and local governments depend on the private sector for their survival. Almost every dollar that these governments spend is either borrowed or taxed from the private economy. Yet, for more than half a century, these governments have continuously outpaced the growth of the private sector on which they depend.	How Institutions Affect Government Spending Matthew Mitchell, Nick Tuszynski \| Oct 10, 2011 This week’s chart by shows that many institutions are associated with lower per-capita spending.
Federal, State, and Local Expenditures as a Share of GDP at WWII Levels Matthew Mitchell \| Aug 29, 2011 This chart illustrates the increase in the size of federal, state, and local expenditures as a share of GDP over the course of the past century.	Actual and Alternative Growth Paths for the United States Matthew Mitchell \| Aug 22, 2011 This chart illustrates the impact of slower growth by imagining what our economy would look like if, starting in 1975, we had accumulated the sort of debt that we are about to accumulate.
Most Fiscal Reform Efforts Fail Matthew Mitchell \| Aug 08, 2011 The United States is not the first nation to wrestle with large and unsustainable national debt.	Real Per Capita Spending Under White House and Chairman's Plans Matthew Mitchell \| Apr 05, 2011 This chart shows real per capita spending under the President’s plan and under Budget Chairman Ryan’s plan.

More Charts

Policy Briefs

Spending Restraint in Florida

Matthew Mitchell, Tate Watkins | Sep 23, 2010

Following the economic collapse of 2008, almost every state in the Union faced a significant budget shortfall. Florida was no exception. Yawning budget gaps plagued the state budget in 2009 and 2010.

Testimony & Comments

What Can Government Do To Create Jobs?

Matthew Mitchell | Feb 01, 2012

Matthew Mitchell testified before the House Committee on Education and the Workforce on what the government can do to create more jobs.

A Balanced Budget Amendment to the Constitution

Matthew Mitchell | Oct 04, 2011

Matthew Mitchell testified before the House Committee on the Judiciary about state governments' experiences with Balanced Budget Amendments.

Research Summaries & Toolkits

The FY 2014 Budget Proposals

Veronique de Rugy, Jason J. Fichtner, Charles Blahous, Matthew Mitchell | Mar 15, 2013

Despite years without a federal budget, trillion-dollar deficits, and ad hoc, crisis-driven fiscal and economic policies that failed to deal with the looming entitlement crisis, leaders on both sides in Washington are now touting seemingly miraculous progress toward a “fix” to our budgetary woes.

Analysis of Legislation in Order to Reduce Spending

Veronique de Rugy, Jason J. Fichtner, Matthew Mitchell | Sep 12, 2011

This toolkit provides members and their staffs with tools to help them evaluate spending bills and start the process of reducing government spending.

The Real Debt Crisis: What Can Be Done?

Matthew Mitchell | Jul 29, 2011

On July 14, Standard & Poor's (S&P) issued a warning to Washington: within months, policy makers must craft a "credible solution" to reduce deficits by at least $4 trillion over the next 10 to 12 years.

Media Clippings

Corporate Welfare Spending Hits $100 Billion in FY 2012 Matthew Mitchell \| Aug 06, 2012 Outlet: The New America	GHEI: Crop Cronyism Matthew Mitchell \| Jul 19, 2012 Outlet: The Washington Times
The Economics of America's Crony Society Matthew Mitchell \| Jul 12, 2012 Outlet: Real Clear Markets	Why Government Bestowal of Economic Privileges is Pathological Matthew Mitchell \| Jul 09, 2012 Outlet: Powerline

More Media Clippings

Expert Commentary

NCAA Tax Subsidies Are the Real 'March Madness'

U.S. News and World Report

By Matthew Mitchell, Christopher Koopman |

Apr 08, 2013

Not everyone was able to attend this year's NCAA Men's basketball tournament in person, but a lot of taxpayers have helped pay for tickets to the games and might not even realize it.

Deficit Spending Displaces Private Economic Growth

U.S. News and World Report

By Matthew Mitchell |

Mar 14, 2013

The case for budget balance begins with economic growth. A number of studies have now found that nations with high debt—typically defined as debt in excess of 90 percent of GDP—tend to grow more slowly.

Competition Will Lead to Innovation and Honesty

The New York Times Room for Debate

By Matthew Mitchell |

Feb 19, 2013

Privileges granted by the government tend to favor the wealthy and well-connected at the expense of the relatively poor and unknown. Ultimately, as the federal lawsuit against S.&P. demonstrates, they undermine the legitimacy of both government and free markets.

Decoding the SOTU's Economic Jargon

U.S. News and World Report

By Matthew Mitchell |

Feb 12, 2013

Economic jargon can be difficult to parse. Political speech—often by design—can be just as impenetrable. So, it stands to reason that when politicians are talking economics, it's easy to get lost. As a guide to this year's State of the Union and the Republican response, below are some translations of statements each might make.

More Expert Commentary

The Cost of Rent-Seeking: Actual and Potential Economic Growth Matthew Mitchell \| Jul 23, 2012 One of the things holding productivity back and, along with it, compensation, is rent-seeking. When governments dispense privileges to particular firms, entrepreneurs spend their time asking politicians for those privileges instead of devising new ways to create value for customers. Economists call this activity rent-seeking, and research suggests that it depresses productivity growth.	Beyond Bailouts: What Is Cronyism? Matthew Mitchell \| Jul 08, 2012 While the bailouts of hundreds of firms in 2008 are, for many, the most prominent example of cronyism in modern American history, they are only the tip of the iceberg. Bailouts are but one example in a long list of privileges that governments give to particular businesses and industries.
State and Local Governments Outpace Growth of Private Sector Matthew Mitchell \| Jun 11, 2012 State and local governments depend on the private sector for their survival. Almost every dollar that these governments spend is either borrowed or taxed from the private economy. Yet, for more than half a century, these governments have continuously outpaced the growth of the private sector on which they depend.	How Institutions Affect Government Spending Matthew Mitchell, Nick Tuszynski \| Oct 10, 2011 This week’s chart by shows that many institutions are associated with lower per-capita spending.
Federal, State, and Local Expenditures as a Share of GDP at WWII Levels Matthew Mitchell \| Aug 29, 2011 This chart illustrates the increase in the size of federal, state, and local expenditures as a share of GDP over the course of the past century.	Actual and Alternative Growth Paths for the United States Matthew Mitchell \| Aug 22, 2011 This chart illustrates the impact of slower growth by imagining what our economy would look like if, starting in 1975, we had accumulated the sort of debt that we are about to accumulate.
Most Fiscal Reform Efforts Fail Matthew Mitchell \| Aug 08, 2011 The United States is not the first nation to wrestle with large and unsustainable national debt.	Real Per Capita Spending Under White House and Chairman's Plans Matthew Mitchell \| Apr 05, 2011 This chart shows real per capita spending under the President’s plan and under Budget Chairman Ryan’s plan.

Corporate Welfare Spending Hits $100 Billion in FY 2012 Matthew Mitchell \| Aug 06, 2012 Outlet: The New America	GHEI: Crop Cronyism Matthew Mitchell \| Jul 19, 2012 Outlet: The Washington Times
The Economics of America's Crony Society Matthew Mitchell \| Jul 12, 2012 Outlet: Real Clear Markets	Why Government Bestowal of Economic Privileges is Pathological Matthew Mitchell \| Jul 09, 2012 Outlet: Powerline

Matthew Mitchell