As we’ve argued many times before, arbitrarily raising the minimum wage, particularly to a level which is far above the real wage rate is an idiotic move. It creates unemployment for low wage earners, and in many cases for the people who formerly employed low wage earners. A “living wage” sounds nice. It sells to economically unsophisticated people. But a job doesn’t suddenly become “worth” more just because the government declares that it is. One can not revoke gravity. Likewise one can not revoke supply and demand.
Magic is not real, no matter what the politicians say.
This is an old article, but given the current debate it is worthy of a post.
It hasn’t GONE global. Its long been global and on a massive scale. But China is freaking people out.
Play this game if you want. But understand that it is a game which is run by cronies, for cronies, and that cronies are very fallible. Can you handle the kind of downdraft which may come when reality catches up with the hubris of central bankers?
It’s an important question, and one which should be asked when things (in the USA) are still relatively calm.
The word “cascade” comes to mind. China is the world’s second largest economy. The continued crash has real implications for the rest of the world economically and probably politically. What those implications are at his point we do not know but it is certainly time now to keep one’s eyes on the horizon.
An interesting and somewhat desperate statement on corruption from a fan big government in Salon.
Thing is, as we say often, government is inherently corrupt. One can’t just get “good people” into office and then things will change. Government must itself be reduced.
Yes this means that many big modern liberal dreams must be abandoned.
I do not write this flippantly. I understand that this would constitute a political sea change.
Ralph Nader is one our favorites here at ACC. We disagree with him on a myriad of issues. He likes government quite a lot. We, well are more skeptical of the state. Saying that though, there is no doubt that Mr. Nader is an enemy of crony capitalism and one of the good guys running around Washington. (There are a few.)
Below is a declaration. A call to town halls. A call to take the rhetorical fight directly to our elected officials during their summer recess. If our representatives are going to ignore us in DC they will have a much harder time ignoring us at community meetings and grandstanding events. Turn on your iPhones. Record responses to hard questions. See what happens.
They do work for us.
In the words of the online editor at CSPAN, you know “we show no emotion” CSPAN.
Here’s an appetizer.
It’s the same party with 2 wings. The Washington Crony Party. If one can fleece the taxpayer it will be done, Republican, Democrat, whatever, so long as money is funneled to the narrow interests which fund your campaigns.
The Republican Party, though it has a free market wing which is young and growing is still dominated by the older big government crony Republicans. How long that generation can hold on, and how much damage they will create to the economy is anyone’s guess.
In the effort to inject interesting economic thought into the discussion at ACC we present the following video by Jeff Deist recorded at the Mises Institute. This lecture will likely challenge many of your assumptions about money.
That we have an IRS is bad enough. For the majority of our country’s history we had no IRS and we prospered. And we would again if the IRS and the income tax disappeared. But it is exponentially worse that the agency has been used as an outright tool of persecution by the White House. The IRS wasn’t looking for tax cheats, it was looking for enemies of the president.
And the president says that the real scandal is that the IRS doesn’t get enough funding.
Destroying (or attempting to destroy) one’s political opponents with said agency is no big deal however. Not like that is straight out of the 3rd world crony playbook or anything.
The question I have is why Congress, and specifically leadership keeps letting the Obama administration get away with this sort behavior. Behavior which is quite serious and damaging to the United States.
Good on ya Uber.
If you can make it, and beat the cronies in New York, you can make it anywhere. Take that cabbie cronies.
Of course Bill deBlasio is still going to try to make Uber pay for part of the Subway system. We’ll see about that. Right now the mayor is huddled up in Gracie Mansion licking his wounds and wondering how he got beaten so badly.
And that is a very good thing for New Yorkers. The longer he’s in the fetal position the better.
Uber Chief Executive Officer Travis Kalanick has said he wants to refashion the car-booking company into a sort of politician to fight against the taxicab industry. Kalanick should get the confetti ready because Uber just won perhaps its biggest campaign yet. New York City Mayor Bill de Blasio backed down on a plan to stall the growth of Uber and similar ride-hailing apps.
Buried within the mounds of tweets, retweets, newspaper editorials, insulting app “features,” television commercials and press releases, a lot of stats have been thrown around by both camps in the hopes of swaying New Yorkers. Here are eight of the most cited numbers that helped shape the debate, and eventually tilted the campaign in Uber’s favor.
Click here for the article.
The establishment can not believe that Mainers gave the governorship to Paul LePage, again. I mean this guy absolutely drives them nuts. As such an offensive against the governor has been mounted in Maine and even in the virtual pages of the establishment mouthpiece Politico.
We are not going to weigh in on Maine politics, but one has to think that if this guy is causing as many headaches for the good-old-boys in the state legislature as it appears he is the guy has got to be doing at least something right.
Consider also that LePage is doing his thing just a stone’s throw from Kennedy country.
So it can’t dogfight. (Maybe not an issue but probably will be if history shows us anything.) It is also a single engine aircraft which means if one engine goes out, that’s it. Over land the situation may be salvageable. Over the ocean, where an extra engine is particularly valuable, it’s a much tougher spot. The Navy as I understand it wanted a dual engine jet for that reason. Others did not.The F-35 is also a manned aircraft in an era where this is less and less necessary.
And this is just for starters.
This is what happens when government layers regulations on top of regulations. When it makes it very difficult to start businesses. When it encourages government dependence for electoral reasons. (It does. I hate that it does, but it does.) When government rewards companies which partner with politicians with taxpayer money and favors.This is what happens when the people running the show in Washington abandon the spirit of free enterprise, the spirit of freedom, and instead embrace the languid mediocrity of the welfare state.
No child should be hungry. But the welfare state is not the way to keep bellies full. Non-profits need to be empowered, and government and the dependence it creates must be reduced in a real way. (This must be done over time but with tangible and verifiable milestones. Corporate dependence needs to be cut tomorrow however.)
(From The USA Today)
A higher percentage of children live in poverty now than did during the Great Recession*, according to a new report from the Annie E. Casey Foundation released Tuesday.
About 22% of children in the U.S. lived below the poverty line in 2013, compared with 18% in 2008, the foundation’s 2015 Kids Count Data Book reported. In 2013, the U.S. Department of Human and Health Service’s official poverty line was $23,624 for a family with two adults and two children.
*It should be noted that we are still in a depression, and it is deepening in other parts of the world. We are just not in reverse gear. Currently.
Click here for the article.
I am also compelled as I look at the picture above to post this video by the band (a notoriously leftist band – who made a TON of money thanks to capitalism) Rage Against the Machine. The song in the video is called FREEDOM and though it is full of earnest calls for the release of Leonard Peltier (someone on which who we can not comment from an informed perspective) it is a very good history lesson.
If you like the government running things just look to what it has done to the American Indian.
The Obamphone program, and it is the Obamaphone program, though it was started in the 80s so that people could call the fire department if they needed it, has expanded exponentially during the current administration. Now pretty much anyone can get a free (I mean you and I pay for them via our taxes) phone just for the asking as this recent video illustrates.
And now we will be subsidizing broadband Internet too via Mr. Obama’s “ConnectHome” crony boondoggle. Congratulations America, more stuff which is way beyond what government should be doing that you have to pay for. Oh, and which will fatten the bottom lines of large corporations in the process.
Tracfone, owned by Carlos Slim, the Mexican magnate and the richest man in the world has done very well under the “Lifeline” program. ($451 million of your tax dollars in 2011 alone.) Now it looks like all sorts of other companies will be getting in on the act as Google Fiber, a connection which I can almost guarantee is way way beyond the connection you have, you know the connection you PAY for, is installed in housing projects across America. (You’ll be paying for this connection too of course.)
This is couched as a program for the poor, which will help people find jobs etc. I certainly hope this is true, but my bet is that it has as much to do with rewarding complicit corporations as anything else.
It’s a jack dressed up in “doing good.”
Also it should be noted that with such connections the propaganda message is made more easily. This is also a big part of the effort.
Connecting people to super duper high speed Internet is not what government is supposed to be doing. Because it is doing it on YOUR DIME.
As I watch the calamity in Greece and the chaos in China I am struck by how much things have changed in 10 years. “Wealth” looks very different to many people these days.
Wealth is time with one’s family. Wealth is time to think. Wealth is a good roof over one’s head. Wealth is good food and good friends. Wealth is walking through a field first thing in the morning with few bills to worry about. Wealth is swimming in the ocean and catching flounder in the surf. Wealth is peace of mind.
Be thankful you aren’t an unskilled worker in Athens or a newly middle class manager in Shenzen who has leveraged his home to play the stock market. Be thankful that you are not feeling the hottest of the world’s economic flames. At the same time be aware that fires do spread.