Look for the source of a society’s collapse, and you’ll usually find the i-word (inflation) at its core. So what exactly is inflation? How does it work? Why is it so dangerous? And how does it affect your everyday life? Steve Forbes breaks it down.
Econ 101
Does The Bible Say All Conservatives Are Going To Hell?
Big Government, Big Business, Big Problems
Since the start of the Covid crisis, the American economy has been turned on its head. Times are good for the big guys — Big Business and Big Government. But what about for the small business owner, the personification of the American dream? Carol Roth discusses Crony Corporatism/Capitalism and is the author of, “The War on Small Business: How the Government Used the Pandemic to Crush the Backbone of America“
UPDATED my “BAM! What Is Crony Capitalism“ with this Prager U video.
The Bizarre Refusal to Apply Cost-Benefit Analysis to COVID Debates
In virtually every aspect of public life, we make policy choices by comparing the cost and benefits of various policies. We often refuse to impose limits even though we know they would save lives: we could ban cars or make the speed limit 25 mph and save hundreds of thousands of lives. We don’t because we assess that the benefits of cars outweigh the costs of those deaths. Why do we still refuse to use this analysis for COVID?
Here is his article of which I excerpt a tiny position below: The Bizarre Refusal to Apply Cost-Benefit Analysis to COVID Debates
The Myth Of American Inequality (Armstrong & Getty)
Armstrong and Getty read from and discuss a bit an article in the WALL STREET JOURNAL entitled: The Myth Of American Inequality. See more via my post titled, “Wealth Inequality in America – Critiques On Inequality” (The below video was the update to that post)
The article is originally found at the WALL STREET JOURNAL, titled:
- The Truth About Income Inequality: The Census Fails To Account For Taxes And Most Welfare Payments, Painting A Distorted Picture.
Here is the non-paywall article via PECKFORD 42:
Wealth Inequality in America – Critiques On Inequality
(UPDATED w/ Armstrong and Getty [3-24-2021])
Armstrong and Getty read from and discuss a bit an article in the WALL STREET JOURNAL entitled: The myth of American inequality (https://tinyurl.com/ymy5rjz9). Unfortunately the article is behind a pay-wall… but PECKFORD 42 has it for reading.
(UPDATED April 2014 and Today: 12-27-2020)
The below video is a “pop-culture” challenge to an economic principle that if the free-markets are left to choose (free contractual trade for services between people in the supply-and-demand market) would allow the most people to succeed as the innate abilities of people and the market can bare:
Prager University notes that “INEQUALITY IS GOOD”
What if everything you’ve heard about income inequality is wrong? What if it’s actually a good thing for there to be people who are rich and people who aren’t? John Tamny, editor of RealClearMarkets, clarifies one of the big misunderstandings of our time.
If you want a quick dealing with this instead of the more thoughtful look below, here is one excellent quickie:
Politicians and reporters often rail about “the rich getting richer and the poor getting poorer.” In fact, the incomes of poor and middle-income Americans are up 32% since the government began keeping track several decades ago (The Distribution of Household Income [CBO] – PDF). Yes, that increase is adjusted for inflation. Another misleading claim, says Stossel, is the idea that the U.S. “no longer has economic mobility.” But a paper in The Quarterly Journal of Economics found that most people born to the richest fifth of Americans fall out of that bracket within 20 years. (Table 2)) Likewise, most born to the poorest fifth climb to a higher quintile. Some climb all the way to the top.
AEI has a good critique of the video challenge at the top, I will follow this by a video response by Lee Doren:
Here is Lee’s response (Preserved by me!)
Lee Doren has a passion for public speaking, being the youngest speaker to lecture for the Ronald Reagan Political Lecture Series at Oberlin College. He has given speeches in Annapolis, Maryland on the Bill of Rights and at the U.S. Capitol for the 9/12 March on Washington. He has been invited to lecture at The Cato Institute, The Institute for Energy Research, the Young Britons’ Foundation in the United Kingdom, the State Policy Network and Lehigh University. He has also provided commentary for Fox News, CNN, Reuters, PBS and Air America.
I would recommend the following articles for further reading:
- YouTube Wealth Inequality Video Fails to Tell the Whole Story (Policy Mic);
- Why Inequality Doesn’T Matter: At Least Not Income Inequality (The Federalist);
- Inequality Fallacies: The Left Gets The Facts Wrong On Economic And Racial Disparities (National Review Online);
- Income Inequality Deception (Forbes);
- Dispelling Myths About Income Inequality (Forbes);
- The Five Biggest Myths About Income Inequality (Forbes);
- The Income-Inequality Myth: Reports Of Skyrocketing Incomes For The Wealthy And Stagnating Wages For The Rest Are Unfounded (National Review Online);
- The American Dream of Income Equality Still Lives (Scientific American);
- Debunking The Top Three Myths About Income Inequality (CNBC);
- Inequality Myths (CATO).
- Five Myths About Economic Inequality In America (CATO)
(This portion can also be found in the “Rich Get Richer/Poor Get Poorer” Mantra.) Larry Elder notes when this “widening” happened the most:
Here are some myth busting to help the layman researcher get more facts to respond to the pop-politics we run-across in our social media lifestyle. Investors Business Daily makes some key points that are hard to ignore:
Another smaller post points out nearly the same:
Minimum Wage and Jobs (Who Is The Loser?)
PRO TIP: I use a browser separate from my go to that I can erase all the history and cookies in order to open up articles from sites (like Forbes or American Spectator) that regulate how many free articles you can access before a “pay wall” is set up and they block you from access to more. You may need to do this if you follow the links below.
In a continuing discussion [of sorts], some more articles regarding the Davis Bacon Act (coming in a future post) and minimum wage issues have been linked/levied. I do not have time to respond to them all, but I will to some of the major articles. Here I will extend the discussion about employment… but the gist of our positions are as follows:
An article linked by Chris L. was an enjoyable read is from FORBES. While I believe parts of it are wrong, it was a good, digestible size. (And the reason he linked it had to do with a “living wage” 9point #1], but the article – even there – does not support Chris’s contention. Linking that article is actually a train wreck for Chris L., 🤓) HOWEVER, the portion about jobs is in full agreement with my position above. Here is my main point from the author’s seven that is still my main premise:
I believe Chris L. posted this article as a refutation of my position — and I clearly made the points that raising minimum wage leads to loss of jobs (almost always for the poorest among us).
CONTINUING with that article:
The same author in another FORBES article refutes the idea that there is “no evidence” in the Card/Krugman study, in which the idea is found via Krugman:
- There’s just no evidence that raising the minimum wage costs jobs, at least when the starting point is as low as it is in modern America. — Paul Krugman
Said author slams this position well! As have I in a past posts:
(More Below Referencing This “Study”)
A N D, here is a article on the same topic via the DAILY SIGNAL:
One position is right, the other wrong. It may be the fact that most economists actually care about the poor and are not in Cris L.’s world all evil, greedy, GOP’ers… or as he put it: …”you’re going to post a portion of a book by a conservative economist…”
But the issue is not one economist, although he [Thomas Sowell], it really deals with history as most economists sift through it. Here, for example, is an article from FORBES:
[As an aside, I have the 182-page summary {book} mentioned in the article… I tried to find it on my book shelves, but, I am afraid I moved it to a box and placed it on my stored books pallet.]
New York is a good model as well for recent examples:
And in an article referenced in the above excerpt, we find this (via AEI):
So, to quote a “conservative” economist, Thomas Sowell, these raising wages — artificially, separate from the market — have consequences:
And here is more info regarding job loss as the main reason most economists are against the minimum wage… that is because employment IS THEE most important thing to poorer people (while I quote more conservative sources… they themselves are quoting more middle of the road studies):
- Nearly 90 percent of surveyed economists believed an acceptable federal minimum wage should be less than $15 an hour. When asked what level of wage floor they would support, roughly 40 percent endorsed the current federal hourly minimum wage of $7.25 or less. And 66 percent said the minimum wage should be no higher than $10 an hour (FOX). The survey’s key findings include (PDF of survey can be found at EMPLOYMENT POLICIES INSTITUTE):
- 74 percent oppose raising the federal minimum wage to $15 an hour;
- 84 percent believe a $15 minimum wage will have negative effects on youth employment;
- Two-thirds of economists (66 percent) believe that an appropriate federal minimum wage is $10 an hour or less;
- Just six percent believe a $15 minimum wage is a very efficient means to target individuals in poverty, while 64 percent said the same thing about the Earned Income Tax Credit (EITC).
- The nonpartisan Congressional Budget Office said Monday that raising the federal minimum wage to $15 an hour, up from the current rate of $7.25 a hour, would likely cause 1.3 million people to lose their jobs. (WASHINGTON EXAMINER)
- Economists aren’t certain about many things, but on the minimum wage, nearly all of them (90 percent, according to one survey) believe that the case is open and shut. All else being equal, if you raise the price of something (for instance, labor), then the demand for it (for instance, by employers) will decline. That’s not just a theory; it’s a law. (James Glassman, “Don’t Raise the Minimum Wage,” Washington Post [Feb 24, 1998]
- …percentage of economists who agree…. A minimum wage increases unemployment among young and unskilled workers. (79%) (Robert M. Beren, Professor of Economics at Harvard University ~ [More: WINTERY KNIGHT])
These specialists are not promoting “a narrative,” but displaying historical consequences as common sense economic laws.
Another Real World Example
See another post where the “Billingsley” example is used: TAX THE RICH (Plus: CEO Pay vs. Worker Pay)
My statement still stands in response to keeping people off the government doll:
Debating Minimum Wage In SEATTLE and NEW YORK CITY
So, I debated on whether to add this to our (Chris L. and myself conversation, posted HERE) earlier conversation, but, I decided to post it separately. So, in the same conversation he finally took a jaunt over to my MINIMUM WAGE portion of my ECON 101 page. He still doesn’t know why the minimum wage was used during the Davis/Bacon Act days (a), why the apartheid unions in South Africa used it (b), and why unions here use it and which community it hurts the most (c) — but at least he a c t u a l l y went to my link… and got it all wrong – lol:
However, this is not the reason for this post. I merely wanted to show the hubris out there in stating propaganda (not intentionally, just in ignorance). Here is the portion that that I wanted to highlight and respond to. Here is the video so people can glean context:
So, here are the main points of the above:
- Minimum wage is still not $15.00 an hour
- It is $13.50 and in 2021 will be $13.69 (which he is right about, but we are talking about SEATTLE)
- [QUOTE] “Sean Giordano this is why I & everyone else should dismiss what ever you post. First minute & a half & anyone can prove she’s full of shit” [UNQUOTE]
- New York (remember, she said New York CITY) does not have $15.00 minimum wage, they are near $11.80
- California isn’t even over %15.00 an hour
- THEY ARE FULL OF SHIT!!
So my first response is to points #1 and #2
The Prager U video specifically mentions Seattle and New York City. This is key. I used two websites to find the current minimum wage in Seattle, Washington: MINIMUM-WAGE.ORG and SEATTLE GOVERNEMNT’S website. In the conversation I noted this many times, but granted, I wasn’t clear.
During the long discussion that followed a few paths, what I learned is that franchises are all included together as a large business. So if I were to franchise, say, The Brass Tap (bar/restaurant chain focuses mostly on its craft beer offerings), if the franchises nationwide have 501 employees, the tips earned do not lower the to $13.50. To make the point clearer I made a crude version:
A sad article of sorts was this one detailing the info:
Remember, Seattle has a higher minimum wage than the rest of the state. I likewise responded to points #4 thus This comes from the NEW YORK CITY GOVERNMENTS website: #5 deals with California as a state However, just like New York state/New York City and Washington state/Seattle, so to goes California. There are many cities in California that have differing minimum wage laws than the state. Here is just one example (click to enlarge): So, there are a couple numbers not dealt with yet… they are numbers #3 and #6 If the opposite of Chris L’s premise is in fact shown, and if his position is “true” of me — that is: “why I & everyone else should dismiss what ever you post.” Why should I, or we, not dismiss whatever he says. I mean, he is full of shit (#6!!). Later in the conversation discussion about the effects of minimum wage hurting restaurants, to which Chris posted the following: I merely responded with So, if 29 opened up DESPITE minimum wage and covid… would the 624 be closed BECAUSE of the minimum wage and covid?
People Never PAID 90% in Taxes (Economic Myths)
This is posted for adding to a conversation from FACEBOOK where I repeatedly noted no one ever paid 90% in taxes after it was brought up by my antagonist — hoping the operative word “PAID” would sink in — (conversation reproduced at the end of this post for clarity — JUMP.) Other Posts that discuss related issues:
- Wealth Inequality in America – Critiques On Inequality
- Rich Get Poorer | Poor Get Richer (+More Mantras Destroyed)
90% MYTH
(From the video):
- “economic historian Phil Magness, of the American Institute for Economic Research, says that progressives miss an important fact: The high tax rates that America had in the past actually didn’t bring in much revenue. When rates were at 70 percent, Magness tells John Stossel, ‘A millionaire on average would pay 41 percent’.”
Even “CheckYourFact” says this:
- While the top marginal income tax rate was over 90 percent [92%] while Eisenhower was president, few people were subject to that rate due to deductions and other tax loopholes. Top income earners paid much lower average tax rates.
(MISES.ORG has an excellent article dealing with the 90% issue, as well as GREY ENLIGHTENMENT)
ALMOST CLASSICAL notes this in their “The 90% Tax Rate Myth” post:
CREATING MORE REVENUE
So, what did JFK’s “the rising tide lifts all the boats,” Reagan’s tax cuts and Bush’s tax cuts show? (See: “John F. Kennedy and Ronald Reagan Proved Tax Cuts Work“) That lower taxes brings in more revenue.
- Should tax rates be higher? It’s the million dollar question! Up? Down? No change? Where in the world should taxes go? In election years, the question of tax rates fills the airwaves. In non-election years, the question of tax rates, again, fills the airwaves. So what’s the answer? UCLA Professor of Economics Tim Groseclose explains his research on the topic. Basically, there’s a certain point at which higher tax rates actually reduce the amount of revenue the government collects. What’s that point? When are tax rates too high? Learn a valuable lesson in economics, and public policy.
Which is why either a national sales tax or a flat tax would help fuel our GDP engine more. Thomas Sowell further explains via an excerpt (my scan from my book) of the “conclusion” of Thomas Sowell’s “The World of Numbers.” You can listen to the entirety of chapter 4 read via MIKE READS: Chpt 4(a) | Chpt 4(b).
I will also emphasize AEI’s PARTIAL QUOTE from my expanded quote — it has changed a bit due to my having the revised edition (as usual I add the references for people to further follow the rabbit trail):
THOMAS SOWELL
CONVERSATION
Creative Destruction (Joseph Schumpeter)
Competition makes entertainment better and cheaper.
Minimum Wage Cost Me My Job (PragerU)
What happens when politicians decide they are in a better position than business owners to know how much workers should be paid? We don’t have to guess. Cities like Seattle and New York have already done so with their $15/hour minimum wage mandates. Simone Barron, a lifelong restaurant worker, recounts how “helping” her impacted her wallet, her career, and her life.
The Blue State [Jobs] Crush
Rush Limbaugh on Friday’s show (May 15th) took a call that led him to an important response that places like New York that survive off of their Manhattan business district may lose [permanently] large corporations renting out the office space and paying the high cost of taxes that fund the city and are a large portion of taxes. The people that live and work in the tri-state areas that are also connected to making New York City run (BLUE COLLAR: maintenance, janitorial, tech, etc.) as well as all the business professionals (WHITE COLLAR: administrators, human resources, lawyers, etc.). Not only that, but the new laws and enforcements like these seen in this pandemic may be a cost for companies moving their offices to other states.
Here is an excellent article by the NEW YORK TIMES:
- Manhattan Faces a Reckoning if Working From Home Becomes the Norm: Even after the crisis eases, companies may let workers stay home. That would affect an entire ecosystem, from transit to restaurants to shops. Not to mention the tax base
Here are a couple other note-worthy articles:
- Manhattan New Rentals Plunge 71% as Coronavirus Freezes Market (NBC – NECN)
- Would Gov. Cuomo Rather Have No Businesses in New York Than Businesses That Employ Fewer People? His proposed law would require that corporations return bailout funds if they don’t rehire the same number of employees (REASON)
- ‘If It Saves Just One Life’: Layoffs Start to Hit Media and Suddenly They Notice the Problem (RED STATE)
- 100,000 Businesses Have Permanently Collapsed Under Pandemic Lockdowns (THE FEDERALIST)