It's Not about Consumption! - Robert Higgs - Mises Daily

It's Not about Consumption! - Robert Higgs - Mises Daily: 'real personal consumption expenditure recovered from its recession decline by the fourth quarter of 2010. Continuing to grow, it now stands (as of the most recent data, for the second quarter of 2011) even farther above its prerecession peak.'

'The economy remains moribund not because consumption spending has failed to recover and not because government spending has failed to increase but because the true driver of economic growth — private investment — remains deeply depressed. Gross private domestic fixed investment fell steeply after the second quarter of 2007, and in the second quarter of 2011 it remained 19 percent below its prerecession peak. This figure fails to show how bad the investment situation really is, however, because the bulk of the investment spending now taking place is for what the accountants call the "capital-consumption allowance," the amount estimated as necessary to compensate for the wear and tear and obsolescence of the existing capital stock.'

Cut Defense before Raising Taxes | Michael D. Tanner | Cato Institute: Commentary

Cut Defense before Raising Taxes | Michael D. Tanner | Cato Institute: Commentary: 'Last week, Rep. Howard McKeon (R., Calif.), chairman of the House Armed Services Committee, told the Daily Beast that he would support a tax increase rather than accept any further cuts in defense spending. McKeon is not a supercommittee member, but his remarks reflect the pressure from Republican hawks and defense contractors now being brought to bear.

This position seems remarkably shortsighted. First, the sequester would not go into effect until 2013, leaving Republicans with plenty of time to change the mix of domestic and defense cuts after the 2012 elections. But even if the cuts were to occur, they amount to just a bit more than 8 percent of expected defense spending over the next decade. With the U.S. spending more on its military than the rest of the world combined, does anyone really believe that if we stop protecting Germany from a Russian invasion, cancel weapon systems that don't work, or reduce the number of generals and admirals populating the Pentagon, that al-Qaeda will come swarming across our border?'

America's Illegal Pioneers | Timothy B. Lee | Cato Institute: Commentary

America's Illegal Pioneers | Timothy B. Lee | Cato Institute: Commentary: 'Today, poor people still flock to the United States seeking a better life. And they face a dilemma not so different from the one their predecessors faced two centuries ago. Just as a cumbersome property system put formal land titles out of reach for many would-be pioneers, so today's antiquated immigration system puts green cards out of reach for many migrants.'

Minimize the work to come here illegally.

What Will Keep Our Food Safe? - Stefano R. Mugnaini - Mises Daily

What Will Keep Our Food Safe? - Stefano R. Mugnaini - Mises Daily: 'In the absence of a reliable government organic-food regulatory agency, the market has provided several voluntary options. The Certified Naturally Grown program offers "a non-profit organization offering certification tailored for small-scale, direct-market farmers and beekeepers using natural methods." They rely on voluntary participation and a peer-review system that is less expensive, less paperwork intensive, and more efficient than the USDA program.

Whole Foods Market has developed their own alternative for certifying certain production techniques for livestock and poultry, through a partnership with an animal-welfare nonprofit.

These are two options, but there are several others. All share a focus on voluntary cooperation between food producers and certifiers, and greater accountability to the consumer, as they can't hide their flaws behind the veil of government immunity. These programs, and others like them, are infinitely scalable, completely voluntary, and represent a real challenge to the notion that "only the government can …"'

Higher Tax Rates on Rich Won't Increase Revenues | Alan Reynolds | Cato Institute: Commentary

Higher Tax Rates on Rich Won't Increase Revenues | Alan Reynolds | Cato Institute: Commentary: 'Warren Buffett is the second wealthiest person in America, but he reports surprisingly little taxable income for someone who owns more than $50 billion of Berkshire shares. Increasing the tax rate on salaries and interest income would barely affect him.

He pays himself a salary of just $100,000, which explains how he pays less than his employees do in payroll taxes. He dodged the estate tax by donating his wealth to the Bill and Melinda Gates Foundation. He doubtless reduces his taxable income with other donations to charity, which explains why he repeatedly refers to taxable income rather than adjusted gross income.'

'He says, "I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9% in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain."

Well, the Dow Jones industrial average was 831 at the end of 1977 — down from 969 at the end of 1965 — so somebody was having trouble finding investments that would still look sensible after paying a 39.9% tax.

In any case, for Buffett to focus on the act of buying stocks or property is all wrong. The capital gains tax is not a tax on buying assets. It is a tax on selling assets. If you don't sell, there is no tax. And when the capital gains tax is high, very few people are willing to sell.'

'It is easy to advocate a higher tax rate on capital gains, but it is even easier to avoid paying that higher tax rate. Simply hold onto assets that went up and sell those that went down, and never realize gains until you have offsetting losses.'

Let's Look at Romneycare | Doug Bandow | Cato Institute: Commentary

Let's Look at Romneycare | Doug Bandow | Cato Institute: Commentary: 'The best he can say is that his program was constitutional, since states, unlike Washington, possess the so-called "police power," allowing them to regulate most anything.

Alas, even the former governor's constitutional scruples are suspect. In 1994 he backed a federal mandate.

In any case, Romneycare's constitutionality does not imply that it was a wise policy.'

WORLD Magazine | 'In the balance' | Jamie Dean | Sep 29, 11

WORLD Magazine | 'In the balance' | Jamie Dean | Sep 29, 11: 'If officials found he wasn’t a practicing Muslim before becoming a Christian, the court could reverse the apostasy verdict. Officials found that Nadarkhani didn’t practice Islam before converting, but they delivered a twist: Since he has Muslim ancestry, he must still recant Christianity.'

Soak-the-Rich Taxes Soak Everyone | Jim Powell | Cato Institute: Commentary

Soak-the-Rich Taxes Soak Everyone | Jim Powell | Cato Institute: Commentary: 'Soak-the-rich taxes are for suckers. President Obama, like so many politicians who came before, is singing the happy song that only millionaires and billionaires will have to pay. But runaway spending — whether because of war or entitlement programs — drives government to extract revenue from people with much lower incomes, like the nearly half the population that pays no federal income tax now.'

Soaking the Rich Is Not Fair | Jeffrey A. Miron | Cato Institute: Commentary

Soaking the Rich Is Not Fair | Jeffrey A. Miron | Cato Institute: Commentary: 'Luck undoubtedly explains some income differences, but this is not the whole story. Many trust fund babies have squandered their wealth, and inborn skill or talent means little unless combined with hard work.

But even if all income differences reflect luck, why are government-imposed "corrections" fair?'

'This claim has an element of truth: some wealth results from illegal acts, and policies that punish such acts are appropriate.

But most inappropriate wealth accumulations results from bad government policies: those that restrict competition, enable crony capitalism, and hand large tax breaks to politically connected interest groups. These differences in wealth are a social ill, but the right response is removing the policies that promote them, not targeting everyone with high income.'

The Capitalist's Conundrum - Stephen Mauzy - Mises Daily

The Capitalist's Conundrum - Stephen Mauzy - Mises Daily: 'But what business capital should you own? Amazing how this simple query is swept to the corner by college professors and economists who proselytize the need to lower interest rates to stimulate business demand. Where to invest is a trifling, if not meaningless, point. To the nincompoop any investment is a good investment.

To the actual investor, where to invest and what to own is the supreme question; business capital in the wrong hands is as much liability as asset.'