Economics

Is It Time to Feel Sorry for the President and other Obamacare Supporters?

"It must not be fun having to explain to people that their private financial and medical information will now be in the hands of some of the least competent people in America. Or imagine what it must be like when some of your biggest allies start complaining about the law. Such as union bosses. Or government bureaucrats. And what about stories about cost overruns. And how about all the bad news about limited choice in the infamous Obamacare exchanges. Or rising insurance costs. Our privacy will be compromised, our choices will be limited, our costs will increase, and the government will squander more of our money. All for a law that even left-wing groups are learning to despise." Continue reading →

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The Left’s New Attack on Self Insurance: Obamacare Sleaze?

"It starts with a brief description of the ERISA law that allows self insurance – including the fact that those who self insure escape the costly and corrupt state-level mandates that cause regular insurance policies to be needlessly expensive. While ERISA traditionally was something that only big firms could utilize, many small employers are now looking at self insurance as a way of providing health insurance to their employees without getting dragged into the costly swamp of Obamacare. Needless to say, the left is unhappy about this development because Obamacare only 'works' if a large amount of people are forced to join the infamous exchanges." Continue reading →

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The Attack on U.S. Property Rights Continues

"If Mayor McLaughlin delivers on her threat, banks will view mortgage lending in Richmond as a riskier investment. As a result, banks will make it harder to get loans in Richmond by requiring higher down payments to minimize the risk of the mortgage going underwater. They will also likely demand higher interest rates to compensate for the increased risk of lending in that market. According to Wells Fargo, Newark (NJ), North Las Vegas, El Monte (CA), and Seattle are all considering similar plans. Taken together, they will further contribute to the decline in the security of property rights in the United States and further jeopardize our economic prosperity." Continue reading →

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UN report: Afghan insurgents use marijuana fields as hiding places

"The amount of Afghan farmland planted with cannabis fell by nearly a fifth last year after one province launched a fierce eradication campaign, but a bumper crop meant that actual production rose compared with 2011, according to the UN. Overall Afghanistan produced 1,400 tonnes of commercial cannabis resin in 2012, worth around $65 million, the report estimated. Government efforts to stamp out poppy farming may even push up production of cannabis, the report warned. Last year the UN said Afghanistan’s importance as a source of resin for world markets might be growing as more farmers switched to the crop." Continue reading →

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What You Don’t Know About Immigration Can Hurt You

"With respect to immigration, let’s allow anyone who wishes to move here with the provision that they are ineligible for tax-funded government benefits. Presto: armies of foreign-born 'net tax producers.' Keeping immigrants out will also cost us liberty as well as money. What invasions of privacy are we willing to countenance in order to prevent people from living and working here? We’re slowly and steadily crushing businesses under ever-heavier regulatory burdens. What will happen when we tell them 'here’s a new stack of immigration rules'? Immigration restrictions might be good populist politics, but they are lousy economics." Continue reading →

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The First Step to a Free Detroit: Let Them Work

"What might the ordinary people of Detroit achieve if all barriers to the free use of their labor were removed? What if taxes were eliminated, allowing workers to keep all of their pay? We could expect the early emergence of personal services, such as hairdressers, barbershops, cleaning services, home maintenance, babysitting, etc. If capital has confidence that it can be protected, then next we could expect to see small scale capital-intensive enterprises spring up, such as food vendors, private taxis, bodegas, and tobacco shops. If these are allowed to flourish, then we could expect to see larger capital intensive enterprises arise, such as small scale factories." Continue reading →

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A Measure of Our Impoverishment (Which They Hope You Haven’t Noticed)

"The federal government can fudge – can outright lie – about the various indicators of economic health. Can shift perceptions of reality. But reality can’t be dismissed so easily. If it takes more dollars to purchase cocoa or sugar then the price of a Creme Egg or chocolate bar has to increase commensurately in order to maintain the same equilibrium between the cost to make the item and the profit it earns. When the economy is flooded with funny money, the value of a given thing remains the same but its apparent cost increases. It takes more sheaves of funny money to buy the same item. This is inflation." Continue reading →

Continue ReadingA Measure of Our Impoverishment (Which They Hope You Haven’t Noticed)

Hong Kong Wrong [2006]

"Though a colony of socialist Britain, Hong Kong followed a laissez-faire capitalist policy, thanks largely to a British civil servant, John Cowperthwaite. Assigned to handle Hong Kong's financial affairs in 1945, Cowperthwaite was so famously laissez-faire that he refused to collect economic statistics for fear this would only give government officials an excuse for more meddling. The results of his policy were remarkable. At the end of World War II, Hong Kong was a dirt-poor island with a per-capita income about one-quarter that of Britain's. By 1997, when sovereignty was transferred to China, its per-capita income was roughly equal to that of the departing colonial power." Continue reading →

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Abolish All Government Economic Data Collection

"Government data collection gives an impression that the state is the overseer of the economy, and it provides an opening for central planners to meddle with the marketplace. Opportunities abound for the Paul Krugman's of the world to put together 'models,' and to prescribe 'policies' based on them. The marketplace needs to be freed from these meddlers. If companies or entrepreneurs desire economic data, let them pay for it (with their own money) in the market. Let private companies gather up the data, and have their reputation hang on its accuracy. Government worries not about its reputation. It lies constantly." Continue reading →

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The ‘sharp decline’ in U.S unemployment was actually a glitch

"US jobless claims fell sharply last week mainly due to technical problems that affected some states supplying data, the government said Thursday. Initial claims for unemployment benefits dived by 31,000 to 292,000 in the holiday-shortened week ending September 7, the Labor Department reported. The sharp drop in claims reflected technical problems in some states in collecting claims data, the official said. The drop was due to upgrading of computer systems in two states that resulted in fewer claims being processed, as well as the Labor Day holiday, analysts noted." Continue reading →

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