Veronique de Rugy

Veronique de Rugy

  • Senior Research Fellow

Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University and a nationally syndicated columnist. Her primary research interests include the U.S. economy, the federal budget, homeland security, taxation, tax competition, and financial privacy. Her popular weekly charts, published by the Mercatus Center, address economic issues ranging from lessons on creating sustainable economic growth to the implications of government tax and fiscal policies. She has testified numerous times in front of Congress on the effects of fiscal stimulus, debt and deficits, and regulation on the economy.

De Rugy is the author of a weekly opinion column for the Creators Syndicate, writes regular columns for Reason magazine, and she blogs about economics at National Review Online’s the Corner. Her charts, articles, and commentary have been featured in a wide range of media outlets, including the Reality Check segment on Bloomberg Television’s Street Smart, the New York Times’ Room for Debate, the Washington Post, the Wall Street Journal, CNN International, Stossel, 20/20, C-SPAN’s Washington Journal, and Fox News.

Previously, de Rugy has been a resident fellow at the American Enterprise Institute, a policy analyst at the Cato Institute, and a research fellow at the Atlas Economic Research Foundation. Before moving to the United States, she oversaw academic programs in France for the Institute for Humane Studies Europe. She received her MA in economics from the Paris Dauphine University and her PhD in economics from the Pantheon-Sorbonne University.

Published Research

Veronique de Rugy, Diane Katz | Apr 15, 2015
Ex-Im Bank advocates emphasize its importance to small businesses and economic growth. A new analysis of government data reveals that Ex-Im Bank’s top 10 overseas buyers are large corporations that primarily purchase exports from multinational conglomerates. Ex-Im Bank’s small business narrative is challenged by the fact that the buyers receiving the most subsidies are—like the exporters—major corporations.
Veronique de Rugy, Andrea Castillo | Jul 16, 2014
This paper provides a brief overview of the history and operations of the Ex-Im Bank, followed by an examination of the key justifications for the bank’s continued authorization.
Robert J. Barro , Veronique de Rugy | May 07, 2013
While the impact of across-the-board federal defense-spending cuts on national security may be up for debate, claims of these cuts’ dire impact on the economy and jobs are grossly overblown.
Veronique de Rugy, Alberto Alesina | Mar 07, 2013
There is still significant debate about the short-term economic impact of fiscal adjustments. However, as we will show in this paper, important lessons have emerged.

Working Papers

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.
Veronique de Rugy | Aug 04, 2011
This paper takes a look at the nature and size of supplemental appropriations bills and the abuse of emergency spending.
Veronique de Rugy | Sep 16, 2010
With the unemployment rate in the United States lingering just below 10 percent and elections approaching rapidly, job creation has become Washington’s top priority. Arguing that small businesses…
Veronique de Rugy | Jun 15, 2010
For every attempt to cap government spending by regulation or statute, lawmakers seem to find new and creative accounting techniques that allow them to continue spending recklessly. In fact, there is…

Charts

Veronique de Rugy | Apr 20, 2015
In spite of their complaints about federal overreach, state policymakers are addicted to handouts from Washington because it allows them to spend “free” money instead of asking their constituents to come up with funds via higher taxes. Unfortunately, federal money is not “free,” and the consequence of the federal government’s funding what are properly state and local responsibilities is excessive growth of government at all levels.
Veronique de Rugy | Apr 13, 2015
This week’s chart shows total funding for the Department of Defense from fiscal year 1948 to fiscal year 2015 in inflation-adjusted 2015 dollars. Funding for the OCO account, first delineated following the 9/11 terrorist attacks, is separated out.
Veronique de Rugy | Apr 06, 2015
This week’s main chart shows that both proposals would reduce the growth in spending versus the Congressional Budget Office’s baseline. On the House side, spending would go from $3.8 trillion in fiscal year 2016 to $5.1 trillion in fiscal year 2025 for a total of $43 trillion over ten years.
Veronique de Rugy | Apr 01, 2015
The following charts are the third in a series looking at the top foreign buyers of exports financed by the US Export-Import Bank (Ex-Im) from FY 2007 to FY 2013. The first new chart shows the total dollar amount of deals financed by Ex-Im in which the primary buyer was listed as being “unknown” or “various” in data made available to the public. It shows that 33 percent of the deals in Ex-Im’s public database used these vague labels.
Veronique de Rugy | Mar 24, 2015
The following charts are an update to my previous chart, which showed the top 10 foreign buyers of exports financed by the US Export-Import Bank from FY 2007 to FY 2013. That chart noted that foreign oil and airline companies dominated the list. The first new chart shows the top foreign oil companies that have purchased Ex-Im–financed exports during that time, based on the total amount of financing authorized. The second new chart provides the same information for foreign airline companies.
Veronique de Rugy | Mar 12, 2015
Using a dataset that the US Export-Import Bank recently made available to the public, one can see which foreign companies are among the top purchasers of American exports financed by the bank’s subsidy programs. The following table shows the top 10 foreign buyers, based on the total amount of financing authorized from fiscal years 2007 through 2013.
Veronique de Rugy | Mar 03, 2015
The US Export-Import Bank (Ex-Im) has been called “Boeing’s Bank” because of the overwhelming benefits that the aerospace conglomerate has received from the federal export credit agency over the years. This week’s charts, which were created using figures from Ex-Im’s 2014 annual report, show that Boeing remains the primary beneficiary of the bank’s taxpayer-backed financing.
Veronique de Rugy, Jason J. Fichtner | Feb 24, 2015
This week’s chart is an updated comparison of the different measurements of the unemployment rate from the Bureau of Labor Statistics (BLS). It includes new data on the official and alternative unemployment measurements for January 2015. The widely reported official unemployment rate, which remains the primary measure of labor market performance, is not the most realistic representation of the current state of the economy, because it fails to capture, among other things, individuals who have simply stopped looking for work. The limited perspective on the labor market offered by the official unemployment rate is readily apparent when compared to alternative measures of unemployment.

Policy Briefs

Veronique de Rugy, Jason J. Fichtner | Aug 21, 2014
The recent decline in federal deficits should not create a false sense that the national debt is no longer a clear and present threat. While this improvement may be encouraging, it represents only a temporary respite from the government’s growing fiscal imbalances.
Veronique de Rugy, Adam Thierer | Oct 11, 2011
This paper considers the economic implications of an internet sales tax and its effect on trade and competition between states.
Veronique de Rugy, Jason J. Fichtner | May 26, 2011
While the United States should not default on its debt, neither should Congress raise the debt ceiling without addressing the problem that created the debt: excessive spending.
Veronique de Rugy, Jason J. Fichtner | Jan 24, 2011
Lawmakers will consider different options for Social Security reform in the coming year; do they have all the necessary facts to do this? This Mercatus on Policy highlights the key points they need to know.

Testimony & Comments

Veronique de Rugy | Mar 24, 2015
Policymakers who are interested in supporting the entrepreneurs and companies that will deliver the next generation of energy supplies and products should focus their attention on correcting the federal government’s hostile tax climate and dispense with the futile hopes of outsmarting the marketplace.
Veronique de Rugy | Jun 25, 2014
The Bank has long outlived its purpose and cannot manage to meet the standards of the new missions that have been developed to validate its existence. For policymakers who have the facts, the choice is clear: the Export-Import Bank must go.
Veronique de Rugy | Dec 04, 2013
Despite Washington’s recent focus on the disastrous Affordable Care Act website rollout, policymakers are missing what the rollout glitches symbolize: the fundamental flaws that imbue government intervention. The work of public choice economists such as Nobel laureate James Buchanan, Gordon Tullock, Mancur Olson, and William Niskanen has shown that, despite good intentions and lavish use of taxpayer resources, government solutions are not only unlikely to solve most of our problems—they often make problems worse.
Veronique de Rugy | May 22, 2013
Good morning, Chairman Murray, Ranking Member Sessions, and members of the committee. Thank you for the chance to discuss the effect of tax increases and spending cuts on economic growth. I appreciate the opportunity to testify today.

Research Summaries & Toolkits

Jason J. Fichtner, Veronique de Rugy | Dec 03, 2013
Some in Washington claim the federal spending and deficit problem is solved. While the deficit has been cut in half (from a record-high of $1.4 trillion in FY09 to $680 billion in FY13), this reduction can be attributed to several singular events, such as the end of the payroll tax “holiday” and higher receipts from Fannie Mae and Freddie Mac. Over the longer term, deficits and debt are projected to continue increasing.
Veronique de Rugy, Jason J. Fichtner | Oct 10, 2013
As federal government borrowing is set to exceed yet another debt limit, most are quick to recall—and wish to avoid a repeat of—the 2011 debt-limit showdown. If current rhetoric is any indication, it appears many of the last debate’s lessons have been forgotten. Regrettably, it seems many of the debate’s facts have been forgotten as well.
Jason J. Fichtner, Jacob Feldman, Jeremy Horpedahl, Brandon Pizzola, Bruce Yandle, Veronique de Rugy | Jul 15, 2013
The most basic goal of tax policy is to raise enough revenue to meet the government’s spending requirements, preferably with minimal impact on market behavior. The US tax code has long failed to achieve this goal; by severely distorting market decisions and the allocation of resources, it impedes both potential economic growth and potential tax revenue. The nation’s persistently sluggish economic growth and dire long-term fiscal outlook have increased the urgency to reform the federal revenue system. But what does successful, sustainable tax reform look like? What are its key elements? And what would it achieve?
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.

Media Clippings

Veronique de Rugy | Aug 24, 2014
Outlet: Wall Street Journal
Veronique de Rugy | Jun 25, 2014
Outlet: The Washington Post
Veronique de Rugy | Jun 08, 2014
Outlet: The Wall Street Journal
Veronique de Rugy | May 20, 2014
Outlet: Wall Street Journal

Data Sets

Expert Commentary

Apr 14, 2015

Genuine income tax reform would lower tax rates, reduce double taxation of income that is saved and invested, and cut out loopholes that tilt the playing field in favor of politically connected interest groups. In this vein, we should get rid of deductions that let taxpayers write off state and local income taxes. I’m all for people keeping more of their income, but this exemption actually leads to bad policy by state and local government.
Apr 13, 2015

Taxes are obviously on everybody's mind this time of year, which makes it the perfect time to ask where — or to whom — all our money is going. First things first: In 2014, the government collected roughly $3 trillion. It spent $3.5 trillion. In other words, it had to borrow $500 billion to pay for all the spending on top of the taxes collected.
Apr 10, 2015

Only a few writers have the ability to teach economics in a way that doesn't put most of us to sleep. Tamny is one of those, and "Popular Economics" is a book you will find yourself goingback to for years to come.
Apr 09, 2015

The cowboy philosopher Will Rogers once said, "If you find yourself in a hole, stop digging." Unfortunately, his advice is often ignored in Washington, where the answer to our national debt is more government spending and the policy prescription for a slow economy is to favor special interest groups.
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