Why are Our Urban Areas so Dysfunctional? Truth is Some Politicians Want Their Constituents Trapped in Poverty

As we said in a recent video, there are many reasons why much of urban America is an economic wasteland. We site 2 main reasons however, big government, and cronyism.

Cities are often not very good places to do business. They are typically high tax high regulation zones. Cities often look at businesses as little more than revenue streams. And what can’t be extracted from business via taxes can be regulated out of businesses with laws.

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Capitalism Jamaican Jerk Style on the Streets of New York (VIDEO)

Image: Screenshot Business Insider

I have long contended that restaurants are one of the most capitalistic areas of our economy. Make good food at a good price and people come back. Repeat over and over and over. Keep making people happy and you keep making money.

That is unless the regulators start shaking you down.

This place looks delicious. Here’s their Facebook page if you want to track them down.

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The Economist says the political divide is between “globalists” and “anti-globalists”, no it’s the political class versus everyone else

In the attached article The Economist frets that the trend toward “globalism” (their word) is in jeopardy. And what the magazine or “newspaper” calls globalism is indeed being challenged. The headlong march toward transnational governments embodied in the European experiment is under attack. And for good reason. People feel disenfranchised.

The average person sees a “global order” (again The Economist’s words) which cares little for the “pedestrian” interests of the middle class. The bourgeoisie sees a rising crony class,

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How to make the plebes pay for their own circuses: The great sports stadium jack

Sports makes people lose their minds. Politicians cut deals for the home team. Politicians cut deals for new teams. Owners enjoy tax shelters and subsidies. And the public gets to pay for the stadiums, and the new traffic, and everything else that goes along with a new stadium. Detroit has no money and it still is financing much of the construction of a new arena for the Red Wings.

But stadiums bring jobs right? Heh.

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Bigger government does not mean more “social justice” in fact it often, usually, means the opposite

Socialism has a half life. Once honest to goodness socialism is instituted it is only a matter of time before the system implodes on itself. The primary factor in the speed of collapse is the amount of fat within an economy before massive state intervention and redistributionist policies. If the disease of socialism, hard core socialism, think the USSR, Cuba, North Korea, and even places like Venezuela, really takes hold, if the state assumes pretty much every aspect of the economy,

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Following Minimum Wage Increases, Unemployment Spikes among Black Male Teens

The minimum wage shuts people, the least skilled in a society, out of jobs. There is no doubt about it. It does. If someone’s labor is worth less than a $15/hour minimum wage that person will not get the job. It’s not complicated, and yet so many want this simple equation to be false. They will bend over backwards to justify an increase in the minimum wage and will insist that such an increase will raise all boats. Unfortunately, when the minimum wage is increased far above the real wage rate of unskilled labor most boats don’t rise and many sink.

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End crony capitalism to end global poverty

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.

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The Keynesians Stole The Jobs

If you really want to understand modern economics, really understand it, read this book.
By Ron Paul
Late last week the markets were shocked by a surprisingly bad May jobs report – the worst monthly report in nearly six years. The experts expected the US economy to add 160,000 jobs in May, but it turns out only 38,000 jobs were added. And to make matters worse, 13,000 of those 38,000 were government jobs!

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Does the horrible jobs report on Friday indicate a sharp economic slowdown?

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,

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(YIKES) US created 38,000 jobs in May vs. 162,000 expected “There’s one word for it, which is just shocking,”

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.

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How the West (and the Rest) Got Rich

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,

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Competitive Capitalism at Work (PIC)

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.)

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Government wastes your time and money with its paperwork and red tape (But what are you going to do about it?)

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,

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