Category: Economic Fallacies

“Mr. Gorbachev, give us this wall”

Throughout Trump’s campaign he repeatedly promised that “we” would build a wall and that Mexico would pay for it. The details of that boast were conveniently omitted. But class is now in session and the homework is due, so at long last we have been made privy to his “secret” method of getting Mexico to pay for this wall: tariffs. Trump plans on imposing a 20% tariff on imported Mexican goods coming into the US. The proceeds are earmarked for paying for said wall. There’s just one problem with this little scheme of course: it won’t work, or at least not the way Trump imagines.

February 08 / 2017

The March on Windmills

The Women’s March on Washington DC (and around the world) this past January 21 was supposed to “send a message” to the new Trump administration. But rather than address his actually harmful stated goals (tariffs, wall building, etc.) they’d rather tilt at the imaginary windmills of things he never even touched on once. The inanity of it all cries out to be addressed; therefore I give my blow by low critique from their entire Unity Principles. Enjoy.

“We believe that Women’s Rights are Human Rights and Human Rights are Women’s Rights.”

Well duh, hard to argue with a tautology.

“We must create a society in which women”

So that would cover all women, irrespective of all other sub-categorizations, right? No, ok, so apparently “women” is unclear and you find it necessary to further qualify it…

“including Black women, Native women, poor women, immigrant women, disabled women, Muslim women, lesbian queer and trans women”

You forgot short women, skinny women, fat women, old women and young women. So I guess those women don’t qualify for the right to be

“free and able to care for and nurture their families, however they are formed, in safe and healthy environments free from structural impediments”

I wasn’t aware women are not being permitted to care and nurture their families was a thing. When did they pass that law?

January 24 / 2017

A Kontradiction

A recent Washington Post article purports to bail Paul Krugman (New York Times columnist and Nobel-winning “economist” aka water boy for Hillary Clinton and the DNC) out of a glaringly breathtaking contradiction. Krugman’s 180° flip involves his sudden hawkish attitude toward budget deficits whereas when it looked as though Clinton’s coronation was imminent last fall it was “spend baby spend” time. A one Matt O’Brien with the Post now tries to rescue Krugman from his own Kontradiction (def. Kontradiction: the fairly regular phenomenon whereby Paul Krugman supports the exact opposite of something he previously wrote while himself remaining unaware of his own hypocrisy). For a complete takedown of Krugman on this issue listen to ContraKrugman.

January 17 / 2017

In Defense of the Gouger

Not only should “gouging” be “legal,” but in fact welcomed. Gouging ensures a supply of a good even when supplies are constrained. For example, gouging of event tickets ensures that you can get a ticket at a moment’s notice. Although the price is high would you prefer high price and ticket vs. no ticket? Rising prices due to increased demand is the market-natural rationing system. If prices stay low, then no one cuts back and the good is quickly consumed. High prices incentivize conservation so a given supply last longer and is available to those that desperately have a need of it.

Stepping Up to the Plate?

Slow internet. No words invoke greater apoplexy in modern man than these. Oconee County, being largely rural, has suffered through its share of less than ideal Internet connectivity over the last decade. So it is little wonder that county officials recently engaged representatives of Corning Optical Communications to discuss the possibility of wiring the entire county for fiber optic Internet access. As a resident myself, nothing would please me more. However, as an ethically consistent human being, I cannot opt to ignore a little thing like theft even when that theft might benefit me personally.

The Rise or Fall of Socialism

Countries that exert a high degree of control (totalitarian) over their citizens will always experience less “success” than those that exert little control. Less control means greater freedom to innovate and solve problems from the bottom up rather than the top down. Formerly socialist/communist countries (China, Vietnam) that have embraced the benefits of freedom (that is, free vs. state managed markets) within their borders have seen improved standards of living relative to those that have not (Cuba, North Korea, Venezuela).

False Equality

The irony of that position is that if the wage gap were employer driven, their supposed vice (greed) would quickly neutralize it. A properly “greedy” employer would seek out every women they can find in order to achieve a 20% discount on their payroll. In turn the unemployment rate for women would be 0%. But of course it is not.

Honey I Shrunk the Seat!

Such reflexive urges to regulate by those “in charge” of our lives are a predictable outcome of their glaring ignorance of basic economics. It is the usual story: government engages in Practice A which stealthily causes Harm B and so our great benefactors must now step in to save us from the very harm they caused in the first place. For example, the federal government, through its puppet the Federal Reserve, is constantly inflating the US dollar. This steadily erodes the value of said dollar until after many years the drips of annual inflation have carved a canyon of lost value. There are two ways to respond to this declining value: raise prices, or, maintain prices while reducing quantity/quality. For example, boxes of cereal now contain 15% less than they did only a few years ago but are marketed at the same price point. It is a surreptitious form of inflation that consumers don’t immediately recognize but is just as injurious to their buying power as is rising prices.

Muh’ Science!

Even among those that profess a belief in limited government there is an ready willingness to join hands with the big-government progressives on the subject of science funding. I mean, any fool can see we need government to fund science – no profit-oriented business would fund basic science research if the probability of a marketable product resulting were unknown….Truly there is no clearer case of the cart pushing the horse. The increase in public funding of basic science research was not a response to declining private funding; rather, it caused that very decline by providing an incentive for private industry to shift the risk burden onto the public.

%d bloggers like this: