Tag Archives: economics

Jerry Bowyer: Buttigieg: Bad Theology, Bad Economics

Recently, Democrat presidential candidate, Pete Buttigieg, decided to try his hand at Bible application. He argued that the federal government should prohibit any wage lower than $15/hour.

And he quoted the book of Proverbs: “Whoever oppresses the poor taunts their maker.”

When it comes to failure, that’s what we call a two-fer: It was both bad theology and bad economics.

First, bad theology: The Bible is a very long book and it does not specify a specific wage level, ever. The New Testament parable of the workers seems to argue in favor of mutually agreed upon wages, not mandated wages.

And then we have Mayor Pete’s bad economics: There is no doubt that a $15/hr. minimum wage would create a spike in unemployment, and the hardest hit would be the children of the working class and the poor.

Let’s hope the nation is not fooled by either bad economics or bad theology.

Read More »

Jerry Bowyer: A Tax Change the President Should Embrace

Bloomberg News and CNBC report that the Trump administration is seriously considering a rule change which would stop the IRS from taxing investors based on phantom gains from inflation.

Let’s say you buy an investment for a hundred dollars and sell it a few years later for 105 dollars, but inflation was 5 percent. You didn’t really make any money. In real purchasing power, you just broke even.

The way the system works now, you’d have to pay taxes on that five dollars. That’s not taxing income; that’s confiscating wealth.

Larry Kudlow, now the president’s chief economic advisor has long been a champion of the idea, and it looks like the president is on board. And: It looks like the president can do this without buy-in from Congress.

We should hope the president embraces this idea and moves forward with it.

It’s good economics—and it would be good politics as well.

Read More »

David Davenport: Questions About Walls


President Trump loves walls—besides a border wall with Mexico, he wants to erect trade walls to protect American steel and aluminum with tariffs of 25 and 10 percent, respectively.

In his famous poem about walls, Robert Frost said, “Something there is that doesn’t love a wall,” adding that before he built one, “I’d ask to know what I was walling in or walling out, and to whom I was likely to give offence.” Those are good questions for Mr. Trump’s policy.

He wants to wall out foreign products that are cheaper than American products. But this will trouble not only nations that produce them, but also American consumers who like to save money.

There’s also a question of constitutionality, since the president’s power to do this is based on national security. And the biggest question:  will tariff walls even work in a global economy?

Many important questions about walls.

 

Read More »

David Davenport: The Future Of Freedom

Compromise

A new survey by the Fund for American Studies reminds us that millennials do not understand economics. The same group that does not know basic civics—such as who their senator is or whether Judge Judy is on the Supreme Court—also doesn’t get how free markets work.

While 60% of millennials said they would choose liberty over security, in turn 54% want more government, not less. A majority of even Republicans and conservatives believe government should regulate oil and drug company prices, and place tariffs on goods coming from overseas.

This survey is described as a “freedom index” but millennials really favor more government regulation. I suppose it’s no surprise that young people who have grown up knowing nothing but big government fail to see the connection between more government regulation and less freedom.

Young people who value freedom in their personal and social lives need to understand that political and economic freedoms are necessary to sustain that.

[soundcloud url=”https://api.soundcloud.com/tracks/330551022″ params=”color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false” width=”100%” height=”166″ iframe=”true” /]

 

Read More »