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.


(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.


Minimum Wage Mandates Help Workers…into the Unemployment Line

December 17, 2015

Progressive city councils (Hello, Seattle and Los Angeles!) and state governments (Hiya, California!) have a lot to answer for: pricing out of the job market the very people they claim to want to help — young people and the poor.

International Liberty

As you can see from this interview, I get rather frustrated by the minimum wage debate. I’m baffled that some people don’t realize that jobs won’t be created unless it’s profitable to create them.

You would think the negative effects of a higher minimum wage in Seattle would be all the evidence that’s needed, but I’ve noted before that many people decide this issue based on emotion rather than logic.

So even though we have lots of evidence already that wage mandates cause joblessness (especially for minorities), let’s add to our collection.

Here are some excerpts from a Wall Street Journal column by Professor David Neumark from the University of California Irvine.

Economists have written scores of papers on the topic dating back 100 years, and the vast majority of these studies point to job losses for the least-skilled. They are based on fundamental economic reasoning—that…

View original post 666 more words


If We Want Prosperity, Prices Should Be Determined by Markets rather than Politicians

November 8, 2015

What more can I say, except “Exactly!”

International Liberty

The communist economic system was a total disaster, but it wasn’t because of excessive taxation. Communist countries generally didn’t even have tax systems.

The real problem was that communism was based on central planning, which is the notion that supposedly wise bureaucrats and politicians could scientifically determine the allocation of resources.

But it turns out that even well-meaning commissars did a terrible job. There was massive inefficiency and widespread shortages. Simply stated, notwithstanding the delusions of some left-wing economists (see postscript of this column), the system was an economic catastrophe.

Why? Because there were no market-based prices.

And, as explained in this video from Learn Liberty, market-based prices are like an economy’s central nervous system, sending signals that enable the efficient and productive allocation of resources in ways that benefit consumers and maximize prosperity.

And just in case it’s not obvious from the video, a price system can’t…

View original post 372 more words


#RaiseTheWage: We tried to warn you, Seattle, but you wouldn’t listen, and so…

October 30, 2015
"But at least we won the election! Obama!!"

“But at least we raised the wage! Obama!!”

We really did try to warn them: Increasing the minimum wage beyond economically sustainable(1) levels will lead to bad, albeit predictable consequences, such as job losses:

Seattle, which recently passed a $15 minimum wage, has seen the loss of 700 restaurant jobs despite the rest of the state seeing huge increases, according to a Wednesday report.

In its report, the American Enterprise Institute looked at restaurant job growth in both Seattle and the rest of Washington. The state itself has gained 5,800 industry jobs since January. Seattle, however, lost 700 jobs in the same time. The state minimum wage is $9.47. Back in June Seattle passed its own minimum wage of $15 an hour. The city ordinance is designed to phase in over the course of several years. It will reach $15 an hour by 2017 for most employers.

“One likely cause of the stagnation and decline of Seattle area restaurant jobs this year is the increase in the city’s minimum wage,” the report speculated. “It looks like the Seattle minimum wage hike is getting off to a pretty bad start. Especially considering that restaurant employment in the rest of the state is booming, and nearly 6,000 more restaurant workers are employed today than in January.”

As I’ve said before:

Labor is a cost, because the business owner has to provide wages and, often, benefits that cost him more money. When a government mandate increases that cost, the business owner has three choices: pass the cost along to the customer, who may decide it’s too much and stop shopping there; cut employee hours and stop hiring to save on labor costs, thus costing potential jobs and putting a burden on workers still employed; and, finally, just decide it’s not worth it anymore and close up shop. In the low-margin bookseller business, Borderlands’ owner chose the last course as the only one viable.

That was in San Francisco. In Seattle, it looks like restaurant owners decided on some mixture of cutting labor hours, or perhaps moving out of Seattle altogether. In at least one case, workers asked to reduced their hours, so they wouldn’t lose their jobs… and their government subsidies.

Of course, this is to the benefit of areas with lower labor costs around Seattle; at least some of them absorbed those jobs and the tax revenue from people looking for better prices.

Meanwhile, assuming those restaurants didn’t close, let me introduce you to your new server:

Welcome to the future

Need no wages

The progressive elites running Seattle (and San Francisco and New York and Los Angeles and…) almost certainly feel good for fighting for “economic justice” and “fairness.

It’s a shame the average working stiff has to suffer for their egos.

PS: The ideal minimum wage is zero.

Foonote:
(1) One of the progressive left’s favorite environmental-justice words. Maybe we should use it so they can start to understand economics.


(Video) Is Capitalism moral?

September 14, 2015

The short answer is “yes, far more so than any other system.” Via Prager University, Walter Williams of George Mason University explains why:

You’d think this would be obvious, but too many people fall for the siren’s song of “economic justice,” or whatever the leftist claptrap of the week is.