(Video) Does the minimum wage prevent poverty?

May 22, 2017

Hint: No. In fact, I would argue that raising the minimum wage makes  becoming trapped in poverty more likely, because it become less and less affordable to hire the unskilled and marginally skilled and then train them, as opposed to hiring someone who already has the skills.

But that’s economics, something the Left thinks it can bend its will. Think again.

Anyway, here’s a short video from Prager University on the topic:


Welfare, Taxes, the Nanny State, and Supply-Side Economics

March 10, 2017

Remember, welfare traps people in poverty. It’s not a hand helping you up: it’s a hand grabbing your ankle and holding you back.

International Liberty

What’s the right way to define good tax policy? There are several possible answers to that question, including the all-important observation that the goal should be to only collect the amount of revenue needed to finance the legitimate functions of government, and not one penny above that amount.

But what if we want a more targeted definition? A simple principle to shape our understanding of tax policy?

I’m partial to what I wrote last year.

the essential insight of supply-side economics…when you tax something, you get less of it.

I’m not claiming this is my idea, by the way. It’s been around for a long time.

Indeed, it’s rumored that Reagan shared a version of this wisdom.

I don’t know if the Gipper actually said those exact words, but his grasp of tax policy was very impressive. And the changes he made led to very good results

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The forgotten lesson of Thanksgiving

November 24, 2016

Happy Turkey Day, everyone.

I remember in grammar school we used to be taught the “lessons of Thanksgiving,” including such wonderful things as sharing and gratitude. It seems one lesson never gets taught, though, and so reporter John Stossel wrote to remind us of it in this 2010 article:

Had today’s political class been in power in 1623, tomorrow’s holiday would have been called “Starvation Day” instead of Thanksgiving. Of course, most of us wouldn’t be alive to celebrate it.

Every year around this time, schoolchildren are taught about that wonderful day when Pilgrims and Native Americans shared the fruits of the harvest. But the first Thanksgiving in 1623 almost didn’t happen.

Long before the failure of modern socialism, the earliest European settlers gave us a dramatic demonstration of the fatal flaws of collectivism. Unfortunately, few Americans today know it.

The Pilgrims at Plymouth Colony organized their farm economy along communal lines. The goal was to share the work and produce equally.

That’s why they nearly all starved.

They nearly starved because too few people were willing to work hard to make the land productive enough to feed everyone, knowing they could still draw from the communal pot regardless of their (lack of) effort. Hence, not enough food was produced and the Colony nearly died.

But it didn’t. Having seen the failure of communalism and a planned economy, the colony’s leaders decided to divide the land into plots of private property and make each family responsible for their own livelihood. The results, as reported by Governor Bradford were amazing:

“This had very good success,” Bradford wrote, “for it made all hands very industrious, so as much more corn was planted than otherwise would have been. By this time harvest was come, and instead of famine, now God gave them plenty, and the face of things was changed, to the rejoicing of the hearts of many.”

In other words, private property and a free market made prosperity possible, while Socialism nearly got everyone killed.

Read the rest before you settle down to turkey and football (and the inevitable food coma), and let’s keep this forgotten lesson in mind.

Enjoy the day, folks!

(Crossposted at Sister Toldjah)


“You cannot legislate the poor into freedom”

November 15, 2016

Still holds true after 85 years:

Adrian Rogers redistribution

Source: Someone on Twitter or Facebook, can’t recall whom.

But it’s the thought that counts.


Pension Promises to State and Local Bureaucrats Are a Ticking Time Bomb

October 17, 2016

Interestingly, these pension bombs aren’t limited to just Blue states.

International Liberty

America’s main long-run retirement challenge is our pay-as-you-go Social Security system, which was created back when everyone assumed we would always have a “population pyramid,” meaning relatively few retirees and lots of workers.

But as longevity has increased and fertility has decreased, the population pyramid increasingly looks like a cylinder. This helps to explain why the inflation-adjusted shortfall for Social Security is now about $37 trillion (and if you include the long-run shortfalls for Medicare and Medicaid, the outlook is even worse).

But Social Security is not the only government-created retirement problem. State and local governments have “defined benefit” pension systems for their bureaucrats, which means that their bureaucrats, when they retire (often at an early age), are entitled to receive monthly checks for the rest of their lives based on formulas devised by each state (based on factors such as years employed in the bureaucracy, pay…

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(Video) Pop Quiz: Can government run the economy?

August 8, 2016

Okay, it’s a trick question. The answer is “yes” and “no.” Yes, the government has the power to regulate almost all the economy (especially since the horrific Wickard v. Filburn case).

But it is also an emphatic “no,” because government rarely does a good job. In fact, government regulation often does more harm than good. A much better alternative is to let the economy run itself in a free market.

For Prager University, Steve Forbes explains why:

Now put down your pencils, close your exam books, and turn them in as you leave.

Class dismissed.


(Video) Lemonade Stand Economics: a basic lesson for progressives

July 22, 2016

When writing about the minimum wage or Obamacare, I’ve often made the point that, in the face of government-imposed higher costs, businesses have few choices:

  • Pass the cost on to the consumer by increasing prices
  • Reduce costs by cutting back on labor (reduced hours, automation, &c.)
  • Accept a smaller profit margin
  • Or just say “screw it all” and go out of business

The following video from Prager University makes a similar point, using that American icon, the kid’s lemonade stand, as an example:

Progressives take note. This is a lesson you need to learn.

By the way, those evil oil companies the Left likes to rail at? Their average profit margin is just above six percent. You know what industry has a larger profit margin? Law firms. They net on average a whopping 30 percent.

Maybe the government should regulate law firms? smiley thinking