Category: folly

Categories
folly free trade & free markets general freedom national politics & policies too much government

A British Puzzle

White labor and minimum wages

Most folks think minimum wage laws are there to help the poor in particular and everybody in general. But economist Scott Sumner, exploring “Britain’s new minimum wage: Is there a hidden agenda?” finds Britain’s new Tory double whammy of decreasing welfare payments while hiking mandatory minimum wage something of a mystery:

Why would a Conservative government sharply increase the minimum wage, in a budget that in many other respects favored small government? The minimum wage is currently 6.50 pounds/​hour, and 9 pounds/​hour is almost $14/​hour in US terms. Also recall that average incomes in the UK are lower than in the US.

He finds a possible reason: to dissuade immigration. Migrants usually have low skills, in part because of language difficulties, so they cannot command high wages — market wages, of course, being defined by worker productivity.

Could the new minimum wage be there to influence migration without doing so directly?

Sumner goes on to discuss the racist origins of the minimum wage in America, Australia, and South Africa. The purpose was pretty clearly to hurt poor workers. Minimum wage laws were established to protect white workers from cheap competition by darker skinned folk.

Sumner’s postscript is interesting: “The [American] Democratic surge of interest in the minimum wage occurred soon after the GOP surge of interest in immigration restriction. Let’s see if the GOP jumps on the minimum wage bandwagon.”

Of course, for every advocate of a class-​based, favoritist policy who argues deceptively, there are dozens who are merely mistaken.

This is Common Sense. I’m Paul Jacob.

Printable PDF

White labor and minimum wages

 

Categories
folly

Shocking Consequences

Greece Surprised, Greek, spending, crisis, debt, EU, collage, photomontage, Paul Jacob, http://cognitivebiasparade.prosite.com/, political, politics

Five years into (the latest phase of) the Greek debt crisis, a former bureaucrat who was unable to withdraw her money from an ATM when the government declared a bank holiday had this to say: “How can something like this happen without prior warning?”

It’s always a surprise — to some people — when blatant causes lead to blatant effects.

In the case of Greece, or any socialistic welfare state, it’s a surprise when the money finally runs out. So accustomed to binge behavior, enthusiasts for “what’s thine’s mine” and “spend now/​pay later” politics are nonplused when there’s nobody left to temporarily rescue them from the worst wealth-​destroying effects of all the productivity-​destroying causes.

The woman’s question has a short-​term answer and a long-​term answer.

The first is: what did you expect? The point of suspending access to bank accounts without warning is to stop holders draining banks of the last of the euro cash, supply of which the Greek government cannot expand unilaterally. Warning would have made the suspension pointless.

The second answer is: what did you expect? That is, haven’t you been paying attention for the last several decades?

By the time you read these words, Greece and the European governments may have come up with another patchwork deal for a loan with another series of deadlines. Or maybe Greece will have left the EU or at least the euro and returned to a (now massively inflated) drachma. Greek account-​holders may or may not get another rickety, temporary reprieve.

But what can’t go on forever, won’t.

So it won’t.

Count on it, ma’am.

This is Common Sense. I’m Paul Jacob.

Printable PDF

Greece Surprised!

 

Categories
folly nannyism national politics & policies

Doom Fails to Arrive on Schedule

DOOM

Doom is not always bad. I’d appreciate the doom of nonsensical doomsaying, for instance… although I doubt that that glorious day will dawn anytime soon.

Equally unlikely is an apology from ABC and Chris Cuomo for pitching, back in 2008, a muddled ABC special, “Earth 2100,” about all the disasters expected to arrive by 2015, among other years.

The idea? Forecast the harm inflicted by allegedly man-​made global warming and collateral calamities, via the scientific methodology of being safely vague or just making stuff up. One way the network secured data was to ask viewers to pretend they’re in the future and then “report back.” (Well, it was 2008, a more primitive era. They did things like this back then.)

Here’s a sample of what ABC purveyed as possibly impending:

  • “Temperatures have hit dangerous levels.” (Time for air conditioning and/​or heat!)
  • “We’ve got more people, less and less resources. That’s a recipe for disaster.” (Let markets be fully unfettered so we can be sure to get more and more instead!)
  • “It’s June 8, 2015. One carton of milk is $12.99.” (Unless that’s a big carton, no. Try $3 or $4 a gallon.)
  • “We’re going to see more floods, more droughts, more wildfires.” (Good work, Nostradamus!)

We still get storms. (Always had ’em; always will.) And inflationary Fed policy and other bad governance still swirl on the horizon. So let’s have shelter, fire departments, umbrellas, and market-​friendlier policies; and let’s not reside on hurricane-​prone beaches.

Thanks for the heads-​up, Chris.

This is Common Sense. I’m Paul Jacob.

Printable PDF

DOOM

 

Categories
folly general freedom government transparency national politics & policies too much government

Safety, Savings and Symbolism

NSA Hydra

How can the U. S. save $2.5 billion a year, reduce the federal workforce by 4,000 hires, and engage in a symbolic act of undoubted patriotism, all at the same time?

Get rid of the Department of Homeland Security.

Matt A. Mayer, a former DHS employee who claims to have “written more on DHS than just about anyone,” writes in Reason that dismantling DHS would increase co-​ordination and decrease inefficiencies.

Since DHS was put in place, in 2003, to increase governmental co-​ordination in the face of terrorist threats, Mayer’s charge that it serves the opposite cause should … give us pause.

Establishing the DHS didn’t get rid of turf wars. Why would it? It increased the turf rather than merely reroute chains of communication and command. All other agencies still exist. Extra turf exacerbates co-​ordination difficulty.

And then there’s what state and local law enforcement faces: “the multi-​headed hydra.” The federal operation remains fragmented, which “only ensures that key items will fall through the cracks between these departments, whose personnel spend far too much time fighting each other for primacy than they should. Our enemies couldn’t ask for a more fertile environment within which to attack us.”

I added the italics, for emphasis.

Ever since Jimmy Carter ran for the presidency on consolidating bureaucratic departments in the nation’s capital, but delivered, instead, new departments, the “logic” of adding new bureaucracies onto old has proven to be the “easy answer” for insiders. But a transparent failure, for everyone else.

So, start over. Get rid of the inefficient monster.

And take heart: republics don’t have “homelands”; empires do. Let’s stop playing the wrong game.

This is Common Sense. I’m Paul Jacob.

Printable PDF

NSA Hydra

 

Categories
folly free trade & free markets

Prophecy Failed

Eggs, New York Times, Economics, collage, photomontage, http://cognitivebiasparade.prosite.com/

In the first week of June we were told to expect egg shortages. The avian flu had infected millions of hens: egg production would plummet.

This was news, reported as “Egg Rationing in America Has Officially Begun.” The Washington Post cited a few signs in Texan retail groceries warning customers that the stores were not in the wholesale biz, supplying eggs for restaurants and the like.

And then the follow-​up: On Tuesday the New York Times reported, “Bird Flu Sends Egg Prices Up, but Slowing Demand Prevents Shortages.”

Author Stephanie Strom is probably not responsible for the title. Her copy was not horrible.

It’s hard to get over the title, though. Economist Mike Munger offered his reaction headline: “NY Times Causes Head of Mungowitz to Explode.”

Why?

One word: “but.”

The title should have read, “Bird Flu Sends Egg Prices Up, So Naturally Slowing Demand Prevents Shortages.”

Why that “slowing demand”?

I’ll let Munger explain it:

There can never, NEVER be a shortage if prices are free to adjust. Because a shortage is insufficient supply at current prices. Lagniappe: This was in the “Science” section. Yes, it was.

People buy less when prices rise. So those who value eggs less cede those humpy dumpties to folks who want them more. Fitting. Harmonious!

So the title was witless, Munger insists, “on the order of ‘Water:  Still Wet!’ or ‘That Crazy Sun:  Rising in the East Again This Morning.’”

I like “good news” stories. Too bad the Times wasn’t quite up to delivering the good news that was clearly fit to print.

This is Common Sense. I’m Paul Jacob.

Printable PDF

Eggs

 

Categories
folly general freedom too much government

Under the Law, Not Beneath It

Magna Carta Nation

Celebrating the 800th anniversary of the Magna Carta Libertatum this week, I noted how a document intended to serve the very upper classes, by limiting each others’ powers, led to liberty for all.

The Nation, on the other hand, used it to excoriate the Citizens United ruling.

“Magna Carta reminds us that no man is above the law,” wrote John Nichols on Monday. “But it should not be imagined that Magna Carta established democracy, or anything akin to it.”

Of course the Magna Carta did not establish democracy. No one said it did. And neither Britain nor America has pure democracy, if you define it … in Nichols fashion. What is he driving at?

If we respect the notion that the rule of law must apply to all … then surely it must apply to corporations.

And, surely, the best celebration of those premises in the United States must be the extension of the movement to amend the US Constitution to declare that corporations are not people, money is not speech, and citizens and their elected representatives have the authority to organize elections — and systems of governance — where our votes matter more than their dollars.

Sure, Mr. Nichols, corporations shouldn’t be above the law. But they shouldn’t be below it, either. And in America we have rights to free speech and press. Those rights “surely … must apply to corporations.”

Let’s increase the liberating powers of democracy: open up ballot access, de-​privilege incumbents, count votes in a non-​mere-​plurality-​wins fashion.

But let’s not throw out equal rights under the law, even in the name of democracy.

This is Common Sense. I’m Paul Jacob.

Printable PDF

Magna Carta Nation