Economics

Crony Capitalists: The Biggest Winners From President Obama’s Re-Election

"Ultimately the biggest winners may be those who finance municipal and state debt. Owing his election to the fiscal failures of New York, Illinois and California, Obama could have to use his executive power to forestall looming bankruptcies at the local and even state level. Ironically the biggest winner here in the crony capitalist sweepstakes will be firms like Goldman Sachs, who turned so vehemently against Obama, but have historically made much of their money on financing government operations. Some people never seem to lose no matter what the result of the election." Continue reading →

Continue ReadingCrony Capitalists: The Biggest Winners From President Obama’s Re-Election

Treasury Quietly Warns: ‘Expect Debt Limit to Be Reached Near End of 2012′

"The U.S. Treasury quietly warned at the end of a statement issued last Wednesday that it expects the federal government to hit its legal debt limit before the end of this year--which means before the new Congress is seated--and that "extraordinary measures" will be needed before then to keep the government fully funded into the early part of 2013. On Aug. 2, 2011, President Obama signed a deal he had negotiated with congressional leaders to increase the debt limit of the federal government by $2.4 trillion. But, now, after only 15 months, almost all of that additional borrowing authority has been exhausted." Continue reading →

Continue ReadingTreasury Quietly Warns: ‘Expect Debt Limit to Be Reached Near End of 2012′

Creativity vs. The State

"The free market has found a way around the government-created gas shortages and tortuous lines in NY. Sellers of gasoline have emerged on Craigslist, charging up to $30/gallon. The State is furious! How dare people make voluntary transactions with other individuals! Get back in line! 'We will do everything we can to stop unscrupulous businesses or individuals from taking advantage of New Yorkers trying to rebuild their lives,' New York Attorney General Eric Schneiderman said Monday. 'There are always people who show up when there's a crisis to take advantage of victims of a disaster.'" Continue reading →

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Marijuana Prohibition Going Up in Smoke? High Hopes for a Drug War Peace Dividend

"As I have written before, drug prohibition is (literally) 'a textbook example of a policy with negative unintended consequences' most visible in the extensive criminal underground and widespread violence associated with prohibition. What can we expect from legalization, and what could we expect from further liberalization of drug laws? 1. Less Crime. 2. Lower Demand for Hard Drugs Like Crack and Crystal Meth. 3. A 'Peace Dividend' From Scaling Back the Drug War. Yesterday’s results are historic because the results in Colorado and Washington show that ending prohibition can win at the ballot box." Continue reading →

Continue ReadingMarijuana Prohibition Going Up in Smoke? High Hopes for a Drug War Peace Dividend

Puerto Ricans push for U.S. statehood in referendum vote

"For the first time, a majority of Puerto Rican voters expressed support for changing their homeland’s status from a U.S. commonwealth to full statehood Tuesday night. According to CNN, the non-binding referendum on the issue was split into two questions. Residents voted against remaining a territory by a margin of 54 percent to 46 percent in the first part of the referendum, while 61 percent supported statehood in the second part. President Barack Obama expressed support for the referendum. Puerto Rican Secretary of State Kenneth McClintock said economic factors weighed heavily in statehood winning majority support." Continue reading →

Continue ReadingPuerto Ricans push for U.S. statehood in referendum vote

Welfare States: Federal Grants Now a Third of State Revenue

"The Pew Center on the States has a great new illustration of how dependent states have become on federal dollars since the recession. States now count on the federal government for $1 out of every $3 in revenue, according the 2010 Census, which offers the most recent finalized data. That’s your stimulus money at work. And $1 out of every $3 is just the national average: In Arizona, 46.9 percent of state revenue came from federal grants; in Louisiana, 48 percent; and in Mississippi, a whopping 49.6 percent." Continue reading →

Continue ReadingWelfare States: Federal Grants Now a Third of State Revenue

Preparing for the upcoming federal confrontation on legalized marijuana

"What seems to be pretty much a given is that the DEA will not go after consumers. They simply don’t have the staff to do it. 99% of possession arrests are by state and local police — if they’re not doing it under the new law, then the feds can’t do much about it. So, as with medical marijuana, they’ll go after the big suppliers. That’s almost impossible to defend against — the government’s ability to seize property and the visibility of large suppliers makes it easy picking. So the smart thing would be to push for a lot of small suppliers — make it hard for the DEA to go after them and less of a loss if they do." Continue reading →

Continue ReadingPreparing for the upcoming federal confrontation on legalized marijuana

Four More Years of Uncertainty

"The 2012 elections mercifully are over, but we Americans find ourselves right back where we were. America remains a bitterly divided nation with roughly equal numbers on both sides. President Obama, narrowly re-elected, can hardly claim a mandate based on the popular vote. The U.S. Senate remains in the hands of partisan Democrats led by the charlatan Harry Reid. And the House of Representatives is still in conservative Republican control. I think the election results demonstrate that American voters, whether they collectively realize it or not, have guaranteed a continuation of the national mood of entrenched political animosity." Continue reading →

Continue ReadingFour More Years of Uncertainty

Government Imposed Disaster: Price Controls in the Wake of Sandy

"For thousands of years governments have imposed maximum price laws and the results have always been the same—shortages that leave consumers worse off. Much as the Roman threat of death couldn’t force producers to bring products to the market, neither can New Jersey’s excessive fines. If gas prices in New York and New Jersey could rise high enough to reflect its true scarcity the profit incentive would induce more suppliers to redirect gas from other states to these areas. Instead, the federal government is scrambling to deliver 22 million gallons of gas itself since the price controls have destroyed the private incentive." Continue reading →

Continue ReadingGovernment Imposed Disaster: Price Controls in the Wake of Sandy