Tag: fallacy

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folly free trade & free markets general freedom ideological culture moral hazard nannyism national politics & policies property rights responsibility too much government

Minimally Mugged By Reality

minimum wage, business, pay, workers, fallacy, profit, Bernie Sanders

It should shock no one: forcing businesses to pay steep minimum wages ends up pushing some businesses out . . . of business. Yesterday I looked at what minimum wage laws can do to low-skilled workers. Today, consider the employers. When we make it harder to turn a profit, it becomes harder to profit. Businesses that can’t at least break even close their doors.

Many business owners are inclined to promote, politically, politicians who in turn support minimum wage hikes. Do they change their minds when mugged by reality? Alas, the trauma alone won’t convert a person to principled allegiance to free markets.

I was reminded of this fact by a story about business owners in Minneapolis who stress their Sandernista credentials.  

“I’m a bleeding-heart liberal and I’m a big Bernie Sanders supporter,” says businesswoman Jane Elias, an art store owner. “But this whole flat-out, $15, one-size-fits all is just wrong.” Another victim, restaurant owner Heather Bray, says she’s a “proud, proud progressive.” But: “The arithmetic doesn’t work. People will not continue to go to budget-conscious restaurants when they’re no longer budget-conscious.”

So . . . arbitrary minimum-wage demands don’t add up in light of the demands of running their businesses under their particular circumstances. Well, no disagreement here. But take it further, please. Keep doing the math. The bottom line is that everybody, not just you — and always, not just sometimes — has the right to make his own decisions about his own life and property.

And profit by it.

This is Common Sense. I’m Paul Jacob.

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Accountability free trade & free markets national politics & policies property rights too much government

Three, Three, Three Mints in One!

monopoly, Microsoft, Google, Chrome, competition, cooperation

Microsoft just announced an innovation that might give folks who fear business behavior — or are extremely skeptical of the positive public outcome of markets — pause.

The Bellevue, Washington, company is adding Google calendar connectivity for its Macintosh users of Outlook 2016.

[Pause.]

You see, monopolies give us the willies. We do not trust them. Yet, despite our fears and suspicions, big business activity in a free market does not lead inevitably to One Corporation Ruling Them All. Or chaos.

Why believe that? This Microsoft Outlook story.

Most folks’ worries about monopoly come down to fear of out-of-control competition. In many industries, for the industry to work, there must be general cooperation among competitors. (Think of telephones and electricity distribution, etc.) The reason many people* want to regulate “natural monopolies” is that it seems only natural that businesses would balk at working together on shared standards — they would balk at any form of cooperation . . . they’re competitors, dagnabbit!

But evidence of competitors cooperating for consumer good is all around us. The classic case? Railroads, when the rail gauges in America were standardized to 4′ 9″ — without government edict.

The current case? This, where one of the three biggest computer outfits in the world offers customers on a competitive platform (Apple) easy syncing with a company that competes directly with it as well as its platform competitor (Google).

Why do this?

The better to serve their customers. As much as Microsoft might want to shun their competitors’ products, its customers do not share that view.

And that is enough.

Welcome to free-market capitalism.

This is Common Sense. I’m Paul Jacob.**

 

* It is worth noting that economists have a different concern regarding natural monopolies. Something about “cost curves.” Meanwhile, the opposite fear — of cooperation among businesses when cooperation would be generally harmful (price fixing) — has been an issue dealt with by economists since Adam Smith.

** Full disclosure: this came to my attention courtesy of a story on Apple’s News app.

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First Amendment rights ideological culture national politics & policies

Ad Ad Hominem!

Early reports and predictions about political spending in this election cycle claim there’s a 30 percent increase over the last mid-term election. One figure hazards that this campaign will total out to around $3.7 billion. Spending on ads is said to be up 75 percent. Traditional spending via parties and party committees shows Democrats to have an edge over Republicans by about $20 million. Republicans are making up for it, we’re told, by newly re-legalized “outside” spending.

A CBS News report relates the conventional wisdom about this. Watchdog groups “say more ads and information can be good — but voters can’t judge their credibility when donors are secret.” One expert decries this, saying “We just cannot know and we’ll never know who is ponying up the money.”

I say, “so what?”

Information cannot be judged good or bad, nor facts or argument dismissed, depending on where the money comes from to distribute the information and argumentation. The classic fallacy of the argumentum ad hominem judges conclusions by the character of the speaker rather than the truth of the facts or the validity of arguments.

Its dominance in politics is a curse, not a blessing.

Demands for full transparency of citizen activism bolster the nasty politics of a logical fallacy. When we don’t know the economic provenance of an ad or a slogan or an argument, we’ll just have to decide the issue on its own merits.

Horrors!

This is Common Sense. I’m Paul Jacob.