Posted tagged ‘Philly Soda Tax Fails’

Must Reads For The Week 6/24/17

June 24, 2017

RESULTS OF GOVERNMENT CENTRAL PLANNING

McDonalds Is Replacing 2,500 Human Cashiers With Digital Kiosks: Here Is The Math, at zerohedge.com. Economic forces are always finding more productive ways of providing goods and services to consumers. Without intervention from Government regulations and Federal Reserve printed money this transformation happens at the proper time. It is an incremental process that slowly relocates less productive labor, capital, and resources to more productive uses. The problem with central planners, and in this case minimum wage zealots, is their ‘good intentions’ are bringing the future into the present before it supposed to be here. Eventually and gradually automation replaces labor, just look at economic history. As wages gradually increase it leads to an incremental move toward automation at a certain price. But when central planners force sudden and large increased in minimum wages, the transformations it causes are more costly and disruptive to the economy (people) than if the market was allowed to let changes happen at the pace set by the market (the market: what results when millions of individuals are allowed to make decisions on what they will produce, consume, exchange and save).

New Mexico Health Insurer Proposes 80% Premium Hike, usnews.com. Another example of intervention by central planners creating disruptions in the healthcare market (or what is left of the healthcare market).

Good Luck Getting Out Of The Subprime Auto Loan When Used Car Prices Crash, at zerohedge.com. Look at the problem created by central planners in the auto loan market. Transporting future demand into the present results in over production. This over production wouldn’t have happened under normal market conditions. Now that future demand has already been used up, there is not enough ‘present’ demand to match the over production. The free market allocates scarce resources to their most productive uses with as little waste as possible. Government intervention is chaotic.

Government As The Source Of Monopoly: US Airlines Edition, by Peter Klein, at mises.org. Monopoly cannot exist in a free market as long as entry into the market is not restricted by Government. The airline industry is heavily regulated which means customer service isn’t a top priority. Does anyone who has flown recently disagree?

Canary In The Coal Mine: Unfunded Liabilities Have Turned Illinois Into A “Banana Republic“, at zerohedge.com. Government caving into Unions for years has led to this unfunded liability nightmare. There is no incentive for Gov. officials to fight the unions when expiring contracts are up for renegotiation because it is the tax payer dollars they are negotiating with. Politicians have no skin in the game. Government employees retire in their 50’s and then collect 30 plus years of benefits. If you add this to the fact that these pension plans have been underfunded, you see the math problem they have created for themselves. Incentives matter. The private and public sectors operate under different incentives.

Moody’s: Modest Downside Could Spark $3 Trillion Surge In Pension Liabilities, at zerohedge.com. It’s not just Illinois that has the pension crisis. Public pensions all over the US are in trouble. Why? We covered it above.

Privatize The New York City Subway System, by Robert Fullner, at mises.org. Another example of a Government run system failing. There is no incentive for New York’s Metropolitan Transit Authority to use scarce resources efficiently because tax payer money is always available to bail them out.

Philly’s Soda Tax Is Shaping Up To Be An Epic Flop, at phillymag.com. No shock here. A black market for soda is springing up just as the black market for cigarettes was created in NYC when they hiked the cigarette tax. The tax also has led to job losses at Coca-Cola since sales declined 32% (read here).

MISCELLANEOUS TOPICS

Hero Homeowner Holds Escaped Georgia Inmates At Gunpoint Until Arrests, at tammybruce.com. Good guy with a gun stops bad guys.

Judicial Watch: Obama NSC Advisor Susan Rice’s Unmasking Material Is At Obama Library, at judicialwatch.org. Insiders using the law to hide information! Documents from the Obama administration are now at the Obama Presidential library. The Presidential Act closes access to these records for 5 years after the President leaves office. With the millions of pages of federal law, do you think there are other places where insiders can hide records?

Major Free Speech Victory, SCOTUS Rules For ‘The Slants’ And Strikes Down Federal Trademark Restriction, at reason.com. The Obama Patent and Trademark Department lost this case 8-0. How many Supreme Court cases end up with no dissenting opinions? This was an attempt by the Obama administration impose their idea of political correctness on all of us. They hoped the defendant wouldn’t be willing to pay the monetary and psychic cost of fighting the unlimited resources of the Federal Government.  What a waste of time and money. But thank God they fought this.

Soros, Teneo And Donors To McCain Institute, dailycaller.com. Senator McCain may be trying to create a smaller version of the Clinton’s money laundering scheme, known as the Clinton Global Initiative.

Complete Idiotic Commentary From The Commerce Secretary, at economicpolicyjournal.com. Excerpt from the article: “The entire concept of the balance of payments, weighing trade deficits and surpluses, is absurd and at epicenter of economic confusion.” Trade policy is an area where Trump needs to get educated.

East Lansing Bans Apple Farmer From Market From Being Faithful Catholic, at thefederalist.com. An example of tolerance by politically correct bureaucrats.

CARTOONS

therightreasons.net

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Must Reads For The Week 2/25/17

February 25, 2017

Four Agencies To Abolish Along With The Department Of Education, by Ryan McMaken, at mises.org. The Department of Homeland Security, The EPA, The Department of the Interior, and The Department of Agriculture should be cut along with the Department of Education according to Ryan McMaken. I would also cut 10% from the budget of all the other agencies just for starters.

The “Washington Monument Syndrome” Strikes Again As Trump Imposes Hiring Free, by Tate Fegley, at mises.org. When Government budgets get cut, the first thing a Government Agency gets rid of is the most popular programs. Because nobody notices if you cut things that aren’t important ( shouldn’t have existed in the first place). Government agencies try to protect their fiefdom, at the expense of the tax payer (in dollars and regulations).

With Sales Depressed By Soda Tax, Philly Gorcers Look To Cut Jobs As Mayor Blames “Greedy” Soda Industry, by Eric Boehm, at reason.com. Who would have thought that raising the price would mean less demand? Less demand to the point of laying off workers?

Don’t Strangle AirBnb; Cut Its Competitors Some Slack, by A Barton Hinkle, at reason.com. The hotel industry should be lobbying the Government to get rid of cumbersome regulations on their industry instead of lobbying  government to pass more regulations in an attempt to crush their competition. The consumer looses when Government intervenes.

Move Over Greece, Italy’s Crisis Will Be Worse, at zerohedge.com. The world is changing. Governments in countries attempting to control every aspect of an individuals life are being tossed out by voters. That is what BREXIT was about.

South Australia Falls Victim To Green Hubris, by Jordan McGillis, at instituteforenergyresearch.org. Mandating the use of an intermittent supply of electricity like wind comes with a price. That price is rolling blackouts when electricity use surges past the point where intermittent wind can’t keep up with the increased demand.

Billions Gone: 2016 Olympic Venues In Brazil Are Now In Ruins, by Alice Salles, at mises.org. Why do politicians think that building the infrastructure to put on a three week one and done event, like the Olympics, would have any lasting economic effect? Hosting the Olympics is a waste of scarce resources that have alternative uses.

Obama Allows Wind Turbines to Legally Kill Eagles, at instituteforenergyresearch.org. Once again the left has a choice between two competing interests. In this case they must choose between  their beloved green energy and natures creatures. Obama has made a decision that increasing the amount of eagles killed by wind turbines by 4 times the previous number, is an acceptable trade off for his beloved green energy. But what would you expect from the oracle on green energy just before he left office. Obama’s ‘Science’ Article Long On Symbolism, Short On Substance, at instituteforenergyresearch.org.

Calexit – Beat The Crowd, at zerohedge.com. We’ve talked about California wanting to exit the U.S. But the real Calexit has and is already taking place. The real Calexit is the exit of individuals from California to states that have lower taxes and less regulation. No shock here. When you increase the cost of being a resident of California, you will have fewer residences.

RESPONDING TO FAKE NEWS

MSM Touts New Poll Showing Record Obamacare Support; Ignores 14 – Point Dem Over Sampling, at zerohedge.com. Here is an example of the MSM creating fake news from a fake poll.

White House Bars CNN, NYT, Others From Media Briefing, zerohedge.com. The MSM doesn’t know how to respond to Trump when he fights back, because past Republicans would have caved in at the first sign of media pressure. This should be the new template for how to deal with media bias. The media bullies don’t know what to do when they get their nose bloodied.

CARTOONS from theburningplatform.com. (more here)