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

View original post 584 more words

Advertisements

French President Approaches Cliff, Steps on Accelerator

January 19, 2016

France has been dirigiste since Louis XIV centralized all power under him, and the French leadership has been trapped in that intellectual straitjacket ever since. The idea of lowering the burden of government and letting market forces work is probably inconceivable to President Hollande — and most of his people.

International Liberty

When I wrote back in 2012 that France was committing fiscal suicide, I should have guessed that President Hollande would get impatient and push for even more statism.

Sure enough, the BBC reports that France’s President has a new plan. The ostensible goal is to reduce unemployment, but the practical effect is to expand the size and scope of government.

President Francois Hollande has set out a €2bn (£1.5bn) job creation plan in an attempt to lift France out of what he called a state of “economic emergency”. Under a two-year scheme, firms with fewer than 250 staff will get subsidies if they take on a young or unemployed person for six months or more. In addition, about 500,000 vocational training schemes will be created.

Needless to say, if subsidies and handouts were the key to job creation, France already would have full employment.

In reality, real jobs are created

View original post 472 more words


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


Prediction: Gridlock for the Next Two Years, but that’s Better than the Alternative of Expanding Government

January 28, 2015

If Congress and the administration can’t agree to do anything good, then doing nothing is the next best solution. Or, as Reagan (I think) once said, “Don’t just do something, stand there!”

International Liberty

There’s a lot of navel-gazing analysis in Washington about whether to expect some sort of bipartisanship over the next two years.

I find such discussions very irritating because they assume that you automatically get good results when Republicans and Democrats both agree on a policy. My reaction, to put it mildly, is “these people are f@*&#^@g crazy!!!”

Was it progress when Republicans and Democrats conspired to bail out their contributors on Wall Streetwith TARP?

Was it progress when Republicans and Democrats joined hands to impose Bush’s no-bureaucrat-left-behind education scheme?

Was it progress when the first President Bush broke his read-my-lips promise and sided with Democrats to boost taxes and spending in 1990?

So you can see why I instinctively like gridlock. Simply stated, it’s better to do nothing if the alternative is to have more bad laws that expand the burden of government.

But perhaps I’m being too…

View original post 750 more words


Why Social Security is a Ponzi scheme, and how to fix it

September 13, 2011

My blog-buddy ST did a great job yesterday calling out former Governor Romney and Congresswoman Bachmann for their hypocrisy in attacking Governor Perry for calling Social Security a “Ponzi scheme.” As she pointed out, not only have liberals been saying that same thing, but so have Romney and Bachmann. While it’s disappointing, it’s hard for me to work up outrage over this; politics ain’t beanbag, as they say, and primaries in particular seem to lead people to say anything to win. On the other hand, when what they say is dishonest, it needs to be called out.

And this was dishonest.

Anyway, as a follow-on to that post, here’s a video from Dan Mitchell of the Cato Institute showing why Social Security is not only a Ponzi scheme, but also a flat-out terrible deal for current workers, retirees, and especially ethnic minorities. Then Mitchell introduces the way to fix the system — private retirement accounts:

Be sure to read Mitchell’s related post.

The way forward to a stable retirement system is clear, but it will take tremendous efforts to get past the Left’s demagoguery and the fear it engenders.

And we certainly don’t need conservatives adding to it.

RELATED: Well, if demagoguing Social Security wasn’t bad enough, Michele Bachmann may be torpedoing her own campaign by seeming to join the “Jenny McCarthy Anti-Vaccination Club for Kooks.” Even if if she’s only repeating misinformation she heard, it’s still bad. Her campaign needs to get this clarified, fast. See also Moe Lane.

(Crossposted at Sister Toldjah)


Silent-but-eloquent: the case for economic freedom

July 5, 2011

Here’s a neat video from one of the evil Koch brothers (1) laying out fact after fact arguing that countries with greater levels of economic freedom, defined as small government, the rule of law, free trade, and the protection of property rights, regularly and vastly outperform statist regimes:

No, your computer’s sound isn’t messed up; it’s a silent movie. Scratch that. It turns out the mute had somehow been activated on this computer. This really is a “talkie.”

I think this video cuts to the heart of those policies that create prosperity — and the jobs that go with it.

Remember that in 2012.

via Dan Mitchell, who has another related video on his site

Footnote:

(1) The latest entry in the Left-Liberal demonology. Remember, gentlemanly elderly billionaires who want less government intrusion into our lives so we can all be free to prosper are EVIL!!! because… well, because.

Edit: Fixed some erroneous information and adjusted accordingly.

(Crossposted at Sister Toldjah)


Restraining Leviathan III: when the IRS goes wild

April 24, 2011

Here’s a question, the answer to which may just be a hearty “WTF?” Why does the IRS want to turn US banks into deputy tax collectors for foreign governments?

Under a proposed regulation, the Internal Revenue Service would order banks to report interest on deposits from foreign investors, not to the US government, but to the home government of the depositor.

What’s the problem, you ask? There are five, but I’ll list two here:

  1. Foreign depositors have put trillions of dollars in US banks because of the very fact that we don’t report interest payments to their governments. Yes, it’s tax avoidance on their part, but the moneys deposited here help grow our economy through loans and investment capital. If this regulation is enacted, foreign depositors will have every reason to move their fortunes elsewhere, to places like Hong Kong or the Caymans, which don’t threaten to rat them out to their governments. That loss would be a tremendous blow to our already ailing economy and banking sector.
  2. Even worse, this regulation overturns established US law. Congress mandated this safe-harbor for foreign deposits 90 years ago in recognition of the benefits an inflow of capital would bring, and that law has been reaffirmed by our democratically elected legislators at least twice since then. Yet now a bureaucratic agency want to undue laws enacted by the legislature through simple fiat.

WTF, indeed.

Dan Mitchell of the Cato Institute has produced a video that goes into these and three other reasons why this regulation shows the IRS is Stuck On Stupid:

This proposed regulation and the harm it will do have attracted the attention of Congress, who’ve reacted in bipartisan opposition to this dumb idea. For example, Senator Rubio said in a letter to President Obama:

At a time when unemployment remains high and economic growth is lagging, forcing banks to report interest paid to nonresident aliens would encourage the flight of capital overseas to jurisdictions without onerous reporting requirements, place unnecessary burdens on the American economy, put our financial system at a fundamental competitive disadvantage, and would restrict access to capital when our economy can least afford it. …I respectfully ask that Regulation 146097-09 be permanently withdrawn from consideration. This regulation would have a highly detrimental effect on our economy at a time when pro-growth measures are sorely needed.

You can read more reactions to this bureaucratic usurpation at Mitchell’s International Liberty, though I have no doubt the statists in the Congressional Progressive Caucus think it’s just peachy.

LINKS: Other posts on Leviathan government.

(Crossposted at Sister Toldjah)