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Do We Need Big Government? | Michael D. Tanner | Cato Institute: Commentary: 'Government payouts now account for more than a third of all wages and salaries in the United States. Worse, if one includes government employees’ salaries, more than half of Americans receive a substantial portion of their income from the government.'
'People talk about America’s free-market health-care system, but government pays for more than half of all health-care spending in this country.
Federal-government spending now consumes roughly a quarter of all the goods and services produced in this country over the course of a year. Throw in state- and local-government spending, and it’s more than a third. And, according the Congressional Budget Office, unless there is a drastic change in our current policies, we are on course for government to consume nearly 60 percent of GDP by mid-century.'
'The Federal Register now stands at an all time high of 81,405 pages. Nearly every product you buy and everything you do is regulated by the federal government in some way.'
Tuesday, December 27, 2011
This Is No Middle Class Tax Cut | Alan Reynolds | Cato Institute: Commentary
This Is No Middle Class Tax Cut | Alan Reynolds | Cato Institute: Commentary: 'Calling this perennial payroll tax holiday a “middle class tax cut” is an outright hoax.
Former Census Bureau economists at Sentier Research, John Coder and Gordon Green, estimate that more than half of this year’s payroll tax cuts went to the most affluent 20%, while only 15% went to those with incomes below the median.'
Former Census Bureau economists at Sentier Research, John Coder and Gordon Green, estimate that more than half of this year’s payroll tax cuts went to the most affluent 20%, while only 15% went to those with incomes below the median.'
No Free Lunch in Subsidy Programs | Chris Edwards | Cato Institute: Commentary
No Free Lunch in Subsidy Programs | Chris Edwards | Cato Institute: Commentary: 'any stimulus from UI benefits will be counteracted by the anti-stimulus of the higher taxes needed to pay for them. Many states have been raising their UI taxes on businesses in order to replenish their unemployment funds, and these tax increases are surely harming job creation.
Another negative effect of UI benefits is that they increase unemployment because they reduce the incentive for people to find work. Higher UI benefits delay the need for people to make tough choices about their careers, such as switching industries, taking lower pay, or moving to a different city. It's a basic rule that when the government subsidizes something, we get more of it.'
'Larry Summers, a former top economist to Presidents Clinton and Obama, concluded in his academic work that unemployment benefits contribute to long-term unemployment.
Our UI system causes other problems. It suppresses personal savings because people expect the government to care for them when they are unemployed. That is harmful because personal savings are a key source of economic growth—savings get channeled into capital investment, which ultimately raises productivity and wages.
Another problem is the waste and fraud in the current UI system stemming from people getting benefits that they are not entitled to. The Department of Labor estimated that improper UI payments totaled $17 billion in 2010. As UI benefits expand, the waste grows.'
Here is another idea: Decrease UI amount by 1% each week. It would avoid the hard cliff of completely losing benefits while gradually increasing the incentive to find a job. After 1 year, the compound effect would be a 41% decrease.
Another negative effect of UI benefits is that they increase unemployment because they reduce the incentive for people to find work. Higher UI benefits delay the need for people to make tough choices about their careers, such as switching industries, taking lower pay, or moving to a different city. It's a basic rule that when the government subsidizes something, we get more of it.'
'Larry Summers, a former top economist to Presidents Clinton and Obama, concluded in his academic work that unemployment benefits contribute to long-term unemployment.
Our UI system causes other problems. It suppresses personal savings because people expect the government to care for them when they are unemployed. That is harmful because personal savings are a key source of economic growth—savings get channeled into capital investment, which ultimately raises productivity and wages.
Another problem is the waste and fraud in the current UI system stemming from people getting benefits that they are not entitled to. The Department of Labor estimated that improper UI payments totaled $17 billion in 2010. As UI benefits expand, the waste grows.'
Here is another idea: Decrease UI amount by 1% each week. It would avoid the hard cliff of completely losing benefits while gradually increasing the incentive to find a job. After 1 year, the compound effect would be a 41% decrease.
Obama and Teddy Roosevelt: Both Progressives, Both Clueless about the Economy | Jim Powell | Cato Institute: Commentary
Obama and Teddy Roosevelt: Both Progressives, Both Clueless about the Economy | Jim Powell | Cato Institute: Commentary: 'Since the rise of industrial capitalism, however, the greatest fortunes generally have been made by serving millions of ordinary people.'
'TR confused the size of businesses with the size of markets. Many businesses were big, but markets were bigger, they were growing faster, and even the biggest businesses were losing market share.
Far from being monopolistic, the American economy of TR's time was intensely competitive.'
'TR confused the size of businesses with the size of markets. Many businesses were big, but markets were bigger, they were growing faster, and even the biggest businesses were losing market share.
Far from being monopolistic, the American economy of TR's time was intensely competitive.'
How Bad Economies Recover Fast When Governments Get out of the Way | Jim Powell | Cato Institute: Commentary
How Bad Economies Recover Fast When Governments Get out of the Way | Jim Powell | Cato Institute: Commentary: 'A new currency, however, wouldn't buy anything as long as chronic shortages persisted, so Erhard announced that price controls and rationing regulations would be abolished. Price controls simultaneously (1) discourage suppliers from providing more goods and (2) encourage consumers to line up for whatever might be available, which is why such controls cause shortages. U.S. commander Gen. Lucius Clay reportedly warned Erhard, "My advisers tell me you're making a terrible mistake." Erhard said, "Don't listen to them, General. My advisers tell me the same thing."
Within hours after Erhard's announcement, goods that had been reserved for black market deals began to reappear on long-empty store shelves. During the 1950s, West Germany's industrial production soared 225 percent. West Germany became a leading exporter. Overall, West Germany turned in the best economic performance of any developed country during this period. West Germany charged through the 1970s without the stagflation that afflicted the United States and other countries.
Although it's well-known that a devastated economy like Germany's could grow at above-average rates, the fact is nobody predicted the German economic miracle.'
Within hours after Erhard's announcement, goods that had been reserved for black market deals began to reappear on long-empty store shelves. During the 1950s, West Germany's industrial production soared 225 percent. West Germany became a leading exporter. Overall, West Germany turned in the best economic performance of any developed country during this period. West Germany charged through the 1970s without the stagflation that afflicted the United States and other countries.
Although it's well-known that a devastated economy like Germany's could grow at above-average rates, the fact is nobody predicted the German economic miracle.'
In Third White House Bid, Paul's Message The Same | Fox News
In Third White House Bid, Paul's Message The Same | Fox News: His pledge to "never vote for legislation unless the proposed measure is expressly authorized by the Constitution" earned him a nickname: Dr. No.
He refused to vote for any tax increase or any budget that was not balanced, and eschewed most "pork barrel" projects for his district. He even voted against awarding Congressional Gold Medals to Mother Teresa, Nancy and Ronald Reagan, and civil rights icon Rosa Parks — though he suggested his colleagues "each put in 100 bucks" to pay for the $30,000 cost of a medal for Parks.
He has refused to enroll in the House pension program, saying it would be "hypocritical and immoral" to accept a benefit unavailable to the taxpayers who fund it. He also discouraged his five children — including the future Kentucky U.S. senator and tea party darling Rand Paul — from applying for government-backed student loans.
He refused to vote for any tax increase or any budget that was not balanced, and eschewed most "pork barrel" projects for his district. He even voted against awarding Congressional Gold Medals to Mother Teresa, Nancy and Ronald Reagan, and civil rights icon Rosa Parks — though he suggested his colleagues "each put in 100 bucks" to pay for the $30,000 cost of a medal for Parks.
He has refused to enroll in the House pension program, saying it would be "hypocritical and immoral" to accept a benefit unavailable to the taxpayers who fund it. He also discouraged his five children — including the future Kentucky U.S. senator and tea party darling Rand Paul — from applying for government-backed student loans.
Police Aim To Crack Down On Violent New Trend, 'Knock Out' | Fox News
Police Aim To Crack Down On Violent New Trend, 'Knock Out' | Fox News: 'It isn't clear how long Knockout King has been around, nor is the exact number of attacks known. The FBI doesn't track it separately, but Slay said he has heard from several mayors about similar attacks and criminologists agree versions of the game are going on in many places.
St. Louis Police Chief Dan Isom said the city has had about 10 Knockout King attacks over the past 15 months.'
St. Louis Police Chief Dan Isom said the city has had about 10 Knockout King attacks over the past 15 months.'
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