If we ended crony capitalism (a good goal, but it likely it can only be reduced – but perhaps drastically) it would indeed help the plight of the global poor. Countries which are poor are always rife with cronyism. The established powers that be, which control the government, loot the rest of the country. It is the natural tendency of humanity, but this natural tendency must be fought. If we want broad prosperity cronies must be brought to heel and hiding places for cronies eliminated.
I have to say that right around me on the very very outer bands of Washington DC’s influence it doesn’t feel very “recessiony” currently. I will also say that I was in Loudoun County last week, the wealthiest county in the USA per capita and just outside of Washington, and the Target was filled with shoppers. It almost felt like pre-2008. It pays to live close to the crony center of the universe. Sure the traffic is insane, sure it’s miles and miles of suburbia,
I was listening to Bloomberg this morning in the car and this kind of number was certainly not on the table for the economists and money managers they had on for the breakfast show. (At least the ones I heard.)
38,000 huh? And these numbers of late have been particularly subject to downward revision over time. This is a significant blow and may put a lot of the economic world back on the heightened state of alert we saw at the beginning of the year as stocks dipped seriously.
I find it funny (and terribly sad) that so many supposedly informed and educated people don’t understand what a miracle capitalism (and the Western tradition, including English common law) truly is. Many of us, perhaps most of us wouldn’t even be alive today if it was not for the concepts which spread from northwestern Europe, to North America, and then beyond. We live in amazing wealth. Even the poor in the West have amazing wealth relative to the poor throughout history and relative to parts of the world where commerce is stifled by statism,
The chief reason we have witnessed miracles like the one below (and truly it is a miracle) is because unlike most industries tech has operated with minimal regulation and has remained highly competitive. In tech, success comes from out innovating one’s competitors not in getting in tight with the right politicians and regulators. (At least this has been the case though Google seems to be getting cronier by the day.)
Government is massive. It is inefficient. It is wasteful. It bullies. It over regulates. It hinders commerce. It is the fundamental component of crony capitalism. Crony capitalism can not happen without government. The bigger the government the more crony.
Laws should be simple and straightforward. They should be few. They should be transparent.
To the degree that laws are not simple and straightforward, to the degree that they are many and not few, to the degree that laws are not transparent,
It’s a truth so many don’t want to see and it is entirely understandable why they don’t want to see it. Raising the minimum wage far above the natural wage rate for a minimum wage job will create job losses. Jobs will be cut. Hours will be cut. Positions will be automated. Some businesses will just close down.
Basically the unskilled worker is stuck. On the one hand the (minimum) wage he or she is getting may not be enough to pay the bills.
Flying high in the crony skies.
So nice that Boeing, now with its huge taxpayer underwritten subsidy in hand thanks to many Republicans who abandoned the free market to support crony capitalism, slashes a bunch of jobs. The company had threatened to slash jobs if it didn’t get an Ex-Im renewal, but in the end it got rid of thousands of jobs anyway.
Crony capitalists do not operate on good faith or anything close to it. Remember this for the future.
The government wants to create a perception, a “reality,” which does not conform to reality. If one tells the public that the sky is red long enough, over and over, they (or a significant portion of the population) will come to believe that the sky is indeed red. At least for a while. The politicians want you to believe!
We are puttering along. The drop in gas prices has given some people breathing room while it has also caused serious economic pressure in fracking country.
Rubio post-mortems miss the point. In the end, it is just more fall-out from crony capitalism.
None of the post-mortems of Rubio’s campaign I have seen mention the real reason why the young senator, so articulate, so successful, recently touted as the future of his party, never got launch speed in his campaign for the presidency. It is actually Senator Charles Schumer’s (D-NY) handiwork, aided and abetted by Rubio’s misjudgment.
Shortly after the 2012 election, the GOP was worrying about Romney’s poor showing among Hispanics.
Minimum wage for a robot? $0/hour. Maximum wage? $0/hour.