Posted tagged ‘Price Controls’

Must Reads For The Week 7/23/16

July 23, 2016

The Economics Of Trade vs. The Politics Of Trade Deals, by Mike Mish Shedlock, at davidstockmanscontracorner.com. Mr. Trump should read this. Excerpt from the article: “A genuine free trade agreement would consist of a single statement: “Effective immediately, all tariffs and subsidies, on all goods and services, are removed.” “Fair Trade” is a concoction by industries that seek or need protection via tariffs and import restrictions, to the damage of everyone else…..The irony in the “fair trade” argument is no jobs are saved by tariffs.

Venezuela Where Hyperinflation Meets Socialism And Price Controls, by Fabiola Zirpa, at economicpolicyjournal.com. Why can’t we learn from the mistakes of other countries? This is just the most recent example of the consequences when socialists try to centrally plan the economy. When we look at Venezuela today we can’t fathom that this could happen here and it probably couldn’t get this bad. But the question is; how much has our standard of living incrementally decreased, or not grown, because of the money printing that has taken place over the last two decades? We can’t quantify it. But we can say with certainty that we aren’t where would have been economically if the Fed hadn’t printed 4 trillion counterfeit dollars.

Minimum Wage Forces LA Diner Pann’s (est. 1958) To Stop Serving Dinner, at economicpolicyjournal.com. We can show story after story of the consequences of artificially raising the minimum wage above its market value. Jobs are lost. But somehow politicians get by with implementing these laws. It has to be because of the economic ignorance of our citizenry.

Interesting Fact Of The Day, Uber Completes 2 Billion Rides, by Mark J. Perry, at carpediemblog. It took six years for Uber to reach 1 billion riders. It took only six months to get its next 1 billion riders. In a free market the consumer wins. Consumers are voting for ride sharing and against the taxi monopoly. Big taxi can’t stop Uber, unless big taxi supplies a better service at a cheaper price.

Yoshi Launches “set it and forget it” Vehicle Refueling In San Francisco, by Lora Kolodny, at techcrunch.com. This is like “back to the future”. We went from full service gas stations (this was before the millennials time). To self-service gas stations. Now we’re going back to full service, except they drive to your house.

Startup Makes Investing Fee Free, opprotunitylives.com. This is like Uber except for trading stocks. Will the brokerage houses try to get government to stop this like the taxi cartel has tried to do with Uber?

The Unique Evil Of The Left, by Lew Rockwell, at mises.org. Excerpt from the article: “The left is the enemy of Diversity and the fanatical promoter of identity. Uniformity is stressed in all leftist utopias, paradises in which everybody is the same, envy is dead, and the enemy is either dead, lives outside the gates, or is utterly humiliated. Leftism loathes differences, deviations, stratification.”

Virginia Court Strikes Down Order Giving Felons Right To Vote, at new-ssentinal.com. Virginia Governor Terry McAuliffe, a former Clinton crony, attempted to mine 200,000 Democrat votes by restoring the voting rights of felons using an executive order. It was shot down by the Virginia Supreme court. I was shocked, shocked mind you when the Court said his executive order restoring voting rights to felons, “overstepped his authority”. This sounds familiar……? Didn’t the President have his executive order on immigration shot down by the Supreme Court for the same reason.

The Political Class vs. The Rest Of Us, by William L. Anderson, at mises.org. It is not R vs. D or any other groups the R’s and D’s construct and pit against each other. The Only Real Division Is THE POLITICAL CLASS VS. THE REST OF US! Until individuals realize this, “the era of big government will never be over”.

If The Public Shouldn’t Have Them, Why Does The IRS Need AR -15’s? at zerohedge.com. Great question.

Former Navy: The AR-15 Is A Citizens Best Defense Against Terrorism, at thefederalist.com.

 

Must Reads For The Week 4/2/16

April 2, 2016

Feds To Fine Schools For Not Following Michelle Obama’s Lunch Rules, at tammybruce.com. The Department of Agriculture’s Food and Nutrition Service is going to fine schools who don’t abide by the regulations set forth by The Healthy Hunger-Free Kids Act. They will fine schools for ‘egregious or persistent disregard’ for the rules imposing limits on sodium and calorie intake and banned white grains. Two questions. 1) Did you know there was a Food and Nutrition Service agency as part of the Dep. of Agriculture? 2) Who decides what constitutes ‘egregious” and “persistent disregard’? This has been a disaster from the start, read, Healthy, Hunger-Free Kids Act Doesn’t Work As Planners Planned. Read, Michelle’s ‘Eat What I Tell You To Eat’ Program is Crashing. Read, Black Market In Food Items Springs Up In Schools, Thanks Michelle. I like that people have decided to not complying with the law. This is the spirit of our founding fathers.

At Emory University, Writing ‘Trump 2016’ On Sidewalks Is A Racist Microaggression, by Robby Soave, at reason.com. No comment needed.

Mises: The Individual Within Society, at mises.org. Article taken from ‘Human Action’ by Ludwig von Mises. Here is an excerpt; “The natural condition of man is extreme poverty and insecurity. It is romantic nonsense to lament the passing of the happy days of primitive barbarism. In a state of savagery the complainants would either not have reached the age of manhood, or if they had, they would have lacked the opportunities and amenities provided by civilization. Jean Jacques Rousseau and Frederick Engels, if they had lived in the [p. 166] primitive state which they describe with nostalgic yearning, would not have enjoyed the leisure required for their studies and for the writing of their books.”

When Will This Awfulness Be Over?, by Jessica Hagy, at thisisindexed.com. Jessica Hagy puts a lot of insight on 3 by 5 cards using venn diagrams, charts, and graphs. Here is the best insight I’ve seen about the election season.

card4829

Apple Has Done It Again, at theburningplatform.com. I don’t know if this is true, but it is funny. “Apple has announced that it has developed a computer chip that can store and play Hi Fi music in women’s breast implants.” Go to the article for the punchline.

CIA Leaves Explosive Materials On School Bus, at targetliberty.com. The CIA borrows a bus for a training exercise. They return it to the school district but forgot to take the explosives out of the bus. Mechanics found the explosives after the bus was back in service for 2 days. I can here the agents conversation when the exercise was over; “Are you sure we have everything? I feel like we’re forgetting something.” And we’re trusting government with our healthcare? Whisky Tango Foxtrot!

The Climate Change Central Planners, by Robert J Murphy, at instituteforenergyresearch.org. Excerpt from the article; “It is an unbelievable act of hubris to suppose that a group of natural scientists and economists, armed with computers, can today make quantitative predictions of how much massive new taxes and draconian regulations will make people better off in the year 2150. And yet this is precisely what today’s central planners do from 9-to-5 in the office.

Hillary Investigation Enters a Dangerous Phase, by Andrew Napolitano, at lewrockwell.com. Is the FBI just dotting all the I’s and crossing all the T’s? Is the ruling aristocracy trying to figure a way out of indicting the Democrats nominee? Are the Clinton’s trying to bribe someone to take the fall? Will the rule of law prevail; or will the break down of the rule of law continue?

Price Controls May Be On The Way, by Paul-Martin Foss, at mises.org. If fixing the Fed fund rate at 0% since 08 hasn’t worked, why would central planners think price controls would work? Nixon tried wage and price controls in the 70’s. How did that work out?

The Seen and Unseen, by Walter E. Williams, at jewishworldreview.com. Walter E. Williams examins the results of the Bush administrations 2002 tariff on imported steel using Bastiat’s suggestion to look beyond what is in front of you so you can see the whole picture.

Here Is Some Econ. Homework

March 22, 2016

When knowledge is allowed to flow unhampered through the market, mainly through the price system, it works to coordinate all activities as optimally as possible. But when Government interventions don’t allow this knowledge to flow freely, malinvestments and dislocations are the result. The only way to cure these problems is for the interventions to stop. This allows the market to purge itself of these wasteful activities via a recession. Unfortunately no politician, bureaucrat, or Fed policy maker wants to have this correction happen on his watch.

Even tough hampered markets have an appearance of sustainability, they ultimately succumb to economic forces.

Here are two articles that talk about hampered markets. The first article is titled, Mises Was Right: The Hampered Market Is Unsustainable, by Sandy Ikeda, at mises,ca. Here are some excerpts from the article:

“Regulatory Dynamics Are Worse Than Transfer Dynamics. This is all because of the central role that prices play in coordinating market processes. That means that the government’s attempt to execute macroeconomic policy by manipulating the quantity of money and credit is perhaps the worst aspect of regulatory capitalism. Monetary manipulation eventually impacts all market prices directly and severely. Other things equal, it is the most distortionary form of intervention.”

“We can rank the major categories of intervention in order of their distortionary effects and thus in order of their unsustainability: 1) Large-scale monetary manipulation, 2) Large-scale price control, 3) Large-scale income redistribution.”

“So, other things equal, a country that pursues a pure form of welfare state capitalism might last longer than a country that pursues a pure form of regulatory state capitalism……”

“……Every country that has attempted interventionism in the past 100 years or so has experienced repeated economic crises. In Russia, crisis led to the Bolshevik Revolution and later the collapse of the Soviet Union. In Germany, the failure of the Weimar Republic conditioned the rise of National Socialism and then later the “economic miracle” under Ludwig Erhard. And in the United States, regulation and monetary manipulation produced the Great Depression and, decades later, the so-called Great Recession of 2007–09, with the “Reagan Revolution” in between.”

Ludwig Erhard And The German Economic Miracle.

 

Here is the second article titled, We Live In A Time Of Piecemeal-Planning & Incremental Interventionism, by Richard Ebeling, at mises.ca. Here are some excerpts from the article:

“Wherever we turn we are confronted with politicians, political pundits, television talking heads, and editorial page commentators, all of whom offer an array of plans, programs, and projects that will solve the problems of the world – if only government is given the power and authority to remake society in the design proposed.”

“Even many of those who claim to be suspicious of “big government” and the Washington beltway powers-that-be, invariably offer their own versions of plans, programs, and projects they assert are compatible with or complementary to a free society.”

“The differences too often boil down simply to matters of how the proposer wants to use government to remake or modify people and society. The idea that people should or could be left alnoe to design, undertake and manage their own plans and interactions with others is sometimes given lip service, but never entirely advocated or proposed in practice.”

“In this sense, all those participating in contemporary politics are advocates of social engineering, that is, the modifying or remaking of part or all of society according to an imposed plan or set of plans.”

“The idea that such an approach to social matters is inconsistent with both individual liberty and any proper functioning of a free society is beyond the pale of political and policy discourse. We live in a time of piecemeal planning and incremental interventionism.

“Society is a spontaneous order not a planned one.”

“Hayek argued that the true individualism starts from the premise that “society” is not some ethereal entity having an existence of its own, nor the designed creation of one or a handful of minds imposing a “plan” on people that produces the social order.”

“Instead, society is the cumulative and interactive outcome and result of multitudes of individual human beings making their separate individual plans that interact and generate connections and associations with other individual plans to produce the overall social order and its coordinated patterns.

 

If you really want to do some home work, read The Use Of Knowledge In Society, by F. A. Hayek at mises.org.

Related ArticleSpontaneous Order = Free Market Economy, at austrianaddict.com.

Related ArticleCentral Planners Hate Economics, at austrianaddict.com.

Related ArticleCharles Hugh Smith; Why Suppressing Feedback Leads To Financial Crisis, at austrianaddict.com.

“Must Read” Leftovers From Last Week

January 13, 2015

 

Price And Currency Controls Result In Venezuela’s McDonald’s Running Out Of French Fries, at economicpolicyjournal.com. Free market prices coordinate supply of, and demand for scarce resources. Venezuela is once again proving that Government price controls lead to shortages. Economic forces always win.

Oh Boy Argentina Faces Tampon Shortages, at economicpolicyjournal.com. Another example of Government restrictions and price controls leading to shortages. Scarce resources can either be rationed by prices in a free market, by Government in a socialist system, or by fighting over them. Do Government bureaucrats have enough knowledge to ration tampons?

Why Recording The Police Is Important, I saw this video at libertypenblog.blogspot.com. Both the police and the public will treat each other with more respect if their contacts with each other are being taped. Watch the video below.

Detained For 19 Days: Immigration Check Refusal Gone Wrong, by Zach Weissmueller, at reason.com. Here is why these contacts need to be filmed. Greg Rosenberg is a naturalized American who immigrated from Armenia 10 years ago. Knowing and exercising his rights at an immigration check point inside the US border, caused the officers to become upset that he challenged them, which led to him being jailed for 19 days for resisting arrest. He wasn’t allowed to see his lawyer for two weeks after requesting a lawyer. After 19 days, the Government dropped its case and dismissed all charges because there was no case to be made against Mr. Rosenberg. This was an obvious case of Government officials abusing their power.

Ethanol Policy Reform – The Rare Case Where Environmentalists And Energy Advocates Agree, by Marita Noon, at cfact.ort. The EPA can’t even tell refiners how much ethanol to put in gasoline supplies as mandated by it’s own Renewable Fuel Standards statute. This is another example of central planning by Government officials being trumped by reality. Central planners utopian visions can’t exist in the real world of scarcity.

Psychiatrists Now Say Non-Conformity Is A Mental Illness: Only The Sheeple Are “Sane”, by Jonathan Benson, at naturalnews.com. This is an attempt to diagnose people who reasonably question Government policies with a mental illness. Characterizing non-conformity as a mental illness is the hallmark of totalitarian government. Here is an excerpt from the article, “Psychiatric incarceration of mentally healthy people is uniformly understood to be a particularly pernicious form of repression, because it uses the powerful modalities of medicine as tools of punishment, and it compounds a deep affront to human rights with deception and fraud,” explains a 2002 analysis and commentary on the abuse of psychiatry in both the Soviet Union and China that was published in the Journal of the American Academy of Psychiatry and the Law”. The State doesn’t like to be challenged. Unfortunately for them you can’t put that Genie back into the bottle.

Must Reads For The Week 11/30/13

November 30, 2013
The pen is mightier than the sword...

The pen is mightier than the sword… (Photo credit: mbshane)

If You Like Your Plan You Can Keep It: ( The Rap w/ Remy), by Remy and Meredith Bragg, at reason.com. A short rap video to start your day.

Watched Cops Are Polite Cops, by Ronald Bailey, at reason.com. Lets go to the replay official! Having small cameras attached to an officers glasses, hats, or uniforms is a good idea as these three stories,( read 1 here, 2 here and 3 here) show.

Hospital Holds Teen For 9 Months, Won’t Let Parents Take Her Home, by Kristin Tate, at benswann.com. If you think parents rights are being violated now, just wait until Obamacare is fully implemented.

Price Controls Don’t Work, And Team Obama Doesn’t Like Market Solutions That Save Lives, by Mark J. Perry, at aei-ideas.org. Here’s a quote from the article, “The Obama administration cannot accept a market approach to rationing a scarce resource like bone marrow, and insists on a government price control of $0.00 for a scarce, lifesaving resource.” Just wait until Obamacare is fully implemented.

Full List Of Obamacare Tax Hikes, by Nick Sorrentino, at townhall.com. Politicians can always claim they haven’t raised taxes if, 1)the tax hikes can be hidden in thousands of pages of legislation, and 2) the mainstream media won’t do their job of being a check on political power.

Pope Francis: Free Market Hater, at economicpolicyjournal.com. Understanding how free markets really work takes much deeper analysis than the shallow thinking enjoyed by utopian central planners, Marxists, and even well meaning Christians.

The Three Metro Areas In The US That Have Larger Economies Than Sweden, at econoimicpolicyjournal.com. Central banks are printing a portion of these GDP numbers. Since all central banks are counterfeiting at the same time, than the GDP differences between countries represent some sense of reality.

Do you believe this guy, David Stockman Fears “Panic” When The “Lunatic” Fed “Loses Control”, at zerohedge.com, or do you believe this guy.Greenspan- “Dow 16,000 Is Not A Bubble”, at zerohedge.com.

Our View: Ethanol Was Mistake Then, It Still Is One Now, at delewareonline.com. Ethanol mandates are,  a) An environmental boondoggle, b) A subsidy for farmers, c) Politicians buying votes, d) All of the above.