Posted tagged ‘Minimum Wage Causes Unemployment’

Must Reads For The Week 8/13/16

August 13, 2016

HILLARY + TRUMP = ECONOMIC IGNORANCE

Donald Trump Turns To Herbert Hoover Economics, at economicpolicyjournal.com. Mr. Trump wants to “prime the pump with more spending and debt.” Spending financed by debt, both public and private, is what got us here in the first place. In the last 10 years the Fed printed over $4 trillion, and the Government took on $10 trillion in new debt. That’s enough pump priming don’t you think? The Keynsian Economic well has dry up. The simple answer is to allow free markets to work unencumbered by Government spending and Fed monetary expansion. Unfortunately nothing is simple when politicians and bureaucrats are involved in the decision making.

Hillary Clinton’s 5 Ideas To Fix The US Economy, at money.cnn.com. How does this sound. 1) Government spending on infrastructure, 2) debt free college, 3) “encourage” (force) companies to share profits with employees, 4) make the rich pay more in taxes, 5) raise the minimum wage. This is simply more spending and debt wrapped up in Christmas paper with a bow on top.

ECONOMIC REALITY

Bankster Flips Out: Says Japan’s Government Isn’t Doing Enough Keynsian Spending, at economicpolicyjournal.com. Decades of Keynsian stimulus by the Japanese Government isn’t enough? It is always the same answer to every economic problem more spending.

What Should The US Do If Other Countries Use Tariffs And Use Other Methods To Distort Trade, at economicpolicyjournal.com. Government intervention with free trade through tariffs, subsidies, and regulations harms the economy of the country that implements these policies. If other countries want to harm their economies with these policies; Why would we respond to such stupidity by implementing the same policies?

The Minimum Wage: Taking Away The Right To Work, by Roy Cordato, at mises.org. How many times does it have to be said: when a wage is set above what a particular job produces, that job will go away. Why do you think the number of private sector union workers has declined from 35% of the private sector work force, to just over 6% of the private sector work force since the 50’s. Unions priced themselves out of the market and the jobs went away. When it comes to raising the minimum wage, it is our benevolent politicians who are pricing low skill workers out of the work place. Political rhetoric is seen, workers losing their jobs are unseen.

Latest Jobs Data: The Worst expansion In 30 Years Continues, by Ryan McMaken, at mises.org.  All the stimulus spending by government and the money printing by the Fed hasn’t worked as the planners planned. Until these two activities are stopped. This is the new normal.

Will The Bubble Pop Even If The Fed Never Raises Interest Rates, by Brendan Brown, at mises.org. We are in new territory. Does anyone know how this will end? No. But it will end with a lot of pain. All we know is, at some point the activities brought about by low interest rates and printed money will have to be liquidated.

Consumer Optimism Is Not The Key To Economic Growth, by Frank Shostak, at mises.org. As we have asked before; What Comes First, Production or Consumption? You can’t consume what isn’t produced. Stimulating spending puts the cart before the horse. As Mr. Schostak says, “Demand is limited by prior production. To put it differently, his demand if fully covered (i.e., funded by the bread that he has produced). demand therefore, cannot stand by itself and be independent: it is limited by prior production….”. Interest rates coordinate production across time. Interest rates set artificially by government send false information through process of production. As a result production and consumption are mismatched. This is where we are after a decade of the Fed’s monetary manipulation.

Venezuela Has But One Choice: Capitalism or Chaos, by Carmen Elena Dorobat, at mises.org. Here is a quote by Ludwig von Mises which sums up what every article in this post: “THE ISSUE IS ALWAYS THE SAME: THE GOVERNMENT OR THE MARKET. THERE IS NO THIRD SOLUTION.”

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Must Reads For The Week 4/30/16

April 30, 2016

Why Did The Industrial Revolution Occur In The United States And Not China? at economicpolicyjournal.com. Technological advance requires financing. U.S. capital markets provided the funding for these projects. But saving provided the funding of the capital markets. Being able to produce and save wealth is important if a society is to continue to advance. How much of the funding in today’s capital markets is from printed money by the Fed, and not real savings from production.

Obama Admits He Couldn’t Convince Americans About Recovery, at zerohedge.com. Obama can’t convince us because he is the only President to not have a single year of his Presidency reach 3% GDP growth. And that’s including the 4 plus trillion dollars printed by the Fed. We can’t even print our way to a high GDP number. If the President would look at the charts in this article, he would understand why we aren’t buying his propaganda about the economy.

UC Berkley Touts $15 Minimum Wage Law, Then Fires Hundreds Of Workers After It Passes, at investors.com. Hoisted on its own petard. No surprise here. You can’t pay labor above what it produces for any length of time before it gets liquidated. The economic reality that less will be consumed at a higher price is always in play. When the cost of labor is artificially set higher, fewer will be working.

Judge Decides Seattle’s ‘Trash Police’ Violates Privacy And Is Unconstitutional, at tammybruce.com. Another example of leftists trying to force their morality on the rest of us. You can’t give in to this kind of tyrannical stupidity or it will never go away.

PA Cops Have Woman’s Rectum, Vagina Searched After Traffic Stop, at copblock.org. A violation of this woman”s fourth amendment rights. She was finally released 5 hours after she was pulled over.

Social Justice Warrior Madness: USC Cancels  ‘Legends Of The Games Industry’ Event For Not Including Women  (On A Seven Man Panel), at targetliberty.org. They postponed this event, ‘In the interest of promoting diversity and inclusion’. This is the kind of nonsense that should be laughed at and mocked.

Opposition Grows To Liberal AGs Targeting Global Warming Skeptics, by Michael Bastasch at cfact.org. In response to democrat politicians and environmentalists calling for RICO investigations into groups seen as casting doubt on the theory of catastrophic global warming, Republican AGs have come out against any such investigations. By the way global warming is a ‘theory’. Isn’t it?

Obama Targets Electric Grid For Power Grab, by Larry Bell, at cfact.org. Obama said he would bankrupt coal power plants with EPA emission regulations. Look out fracking industry if Queen Hillary gets into office.

Taliban Bomber Accidentally Triggers Explosive Early, Killing Himself And 8 Other Terrorists, at tammybruce.com. My first thought when I saw this was; will this guy get the 72 virgins anyway. Does he get rewarded for his good intentions of trying to blow up infidels even though he failed? These are questions that need to be answered.

The Real Meaning Of Competition, by Peter G. Klein, at mises.org. It’s not about having the proper number of competitors in a particular industry that makes it competitive. As long as government isn’t restricting or placing  costs on the entry into these industries you have competition. We’ve written about Uber on this site. The taxi cartel trying to get government to restrict Uber’s entry into the market is an example.

The Problem Of ‘Hoarding’, by Murray Rothbard, at mises.org. Rothbard explains why the velocity of money is an answer in search of a problem.