Category: Economics

Because it’s really not our money…

The Fed’s been pumping money hand over fist for the last few years, and economists have been wondering, “Where’s the inflation?” Turns out, it’s because consumers have been “hoarding money.” Or, what used to be called savings.

In the wake of the most severe economic downturn in most of ours lifetimes, is it surprising that many of us have been putting more cash aside? Yet, because we’re not doing what the Fed and the .gov wants done, they’re going to spin responsible financial actions as greed or irrational.

Screw them. People make better choices if they aren’t panicked. Savings help reduce panic when an unexpected emergency hits, and allow consumers to make better choices.

It’s our money. It’s our choice. Do us all a favor and get the hell out of the way.

H/t ASM826 over at Borepatch’s place

Friday Quote – Ludwig Von Mises

A man who chooses between drinking a glass of milk and a glass of potassium cyanide does not choose between two beverages; he chooses between life and death. A society that chooses between capitalism and socialism does not choose between two social systems; it chooses between social cooperation and the disintegration of society. Socialism is not an alternative to capitalism; it is an alternative to any system where men can live as human beings.

Ludwig Von Mises

Ventura Verdict – Analysis of a Pyrrhic Victory

The interwebz exploded when Jesse Ventura won $1.8 million in a defamation suit against the estate of Chris Kyle over statements Kyle made in his book American Sniper.

First the legalese part from Legal Insurrection in an article by Amy Miller:

Defamation lawsuits are tricky animals, especially when they’re brought against a public figure. If the matter being sued over is “a matter of public concern” (and this most certainly was, considering the most famous sniper in American history made statements about one of the most famous American governors in history,) we’re looking at charge of “constitutional defamation.” These cases are desperately difficult to win on behalf of a famous plaintiff—-and Ventura’s lawyers won….

The problem with drawing conclusions following media coverage of a jury trial is that reporters tend to leave out the nuances and inconvenient facts that define a case. For example, the media rightly reported that, in order to find in favor of Ventura, the jury needed to prove that Chris Kyle acted with actual malice when he wrote his book; that is to say, that Kyle either knew his statements were false, or acted with reckless disregard as to whether they were false or not. What the media didn’t choose to cover is how difficult it is for an attorney to prove that a defendant acted with actual malice against a public figure.

It take a lot to prove malice in a courtroom, yet Ventura’s attorneys managed to swat eight jurors that malice was present. So, Ventura was most likely correct to say he was defamed by Kyle.

Unfortunately, Ventura has failed to grasp that how his need for vindication was going to be perceived once Kyle was murdered and Ventura continued to press his suit. It’s one thing to go after the man who said bad things about you. It’s another thing entirely to go after his widow and children, even if you are in the right.

In the end, Ventura upheld his name in court, but ended up doing far more damage in the eyes of the public who consumes his products.

Enjoy your Pyrrhic victory, Jesse.

NLRB Rules Against McDonalds

The National Labor Relations Board (you know, the one where the Supreme Court smacked down the president for making illegal appointments) has decided that McDonalds is a “joint-employer” with all of its franchisees.

The unions were pushing this to make it easier for them to unionize fast food workers.

“It’s time the company put those same powers [to control franchisees] to work to do something about the fact that its workers are living in poverty,” said Kendall Fells, organizing director of Fast Food Forward, president of the Fast Food Workers committee and a former SEIU organizer. I’m sure he feels really smug about his side’s victory against the great behemoth of fast food.

Now we come to the reality side of unintended consequences. If this ruling is allowed to stand (and Mickey D’s has vowed to fight it), then the unions will close down a promising avenue for the workers they claim to represent for economic mobility.

Guess who becomes McDonald’s franchisees? People who work their way up from crew to manager (or district manager), and who invest their own money into their first store. Then they invest in a second store. And another. Through all of that hard work and wise investing is real prosperity. Not the false prosperity of a bump in the minimum wage that will be eaten the next year by rising prices, but the sustained prosperity that will not only change the lives of the franchisees, but their entire family tree.

But, today the workers won. Hurray.

And You Wonder Why We Can’t Take You Seriously

A collection of 130 environmental groups say that the world needs to end “the current hegemonic capitalist system.”

In a somewhat humorous twist, this claim was issued in “The Margarita Report.”

I will admit to believing in climate change, and even that humanity has played a role in it. Empirical evidence has shown it’s not been quite the radical increase that most of these groups have been shrilly screaming about, but there’s been some.

Now, let’s for a moment assume that all of their claims about climate change are true and we do face a global catastrophe. What will produce the technologies needed to reduce carbon emissions, or possibly even reverse the effects? Which economic system has been responsible for developing a high tech industry base?

To those groups who wrote this Margarita Report: be quiet, grow ups are talking.

Letters of Marque Against Cyber-Pirates

Via Joe, by way of Sebastian, comes this article proposing that Congress issue Letters of Marque to private(er) counter-hackers and pirates.

Long quote from the article:

According to the National Counterintelligence Executive, “tens of billions of dollars of trade secrets, technology and intellectual property are being siphoned each year from the computer systems of U.S. government agencies, corporations and research institutions.” According to the Chinese government, the Chinese government isn’t involved. The Chinese hackers are operating beyond national boundaries, floating around on the high seas of the Internet. If they are working, as China says, without government sanction, I say that makes them pirates. We, the people, are equipped to deal with pirates.

Article 1, Section 8 of the U.S. Constitution enumerates the powers of Congress, which include the powers “to define and punish Piracies” and to “grant Letters of Marque and Reprisal.”

Letters of marque and reprisal are writs issued by governments for private organizations to attack enemies, and to respond to attacks, without direct government oversight. They’re thought of as creating privateers — government-sanctioned pirates. But strictly, a letter of marque permits a merchant ship to arm and defend itself against attacks from warships, privateers, and pirates. And in the process, take prizes.

Sounds like an idea whose time has come!

The SWEAT Pledge

Mike Rowe, former star of “Dirty Jobs” and outspoken of getting Americans back to work, put out this pledge.

This is going to be so fun to go over with my niece and nephew.

“THE S.W.E.A.T. PLEDGE”
(Skill & Work Ethic Aren’t Taboo)

1. I believe that I have won the greatest lottery of all time. I am alive. I walk the Earth. I live in America. Above all things, I am grateful.

2. I believe that I am entitled to life, liberty, and the pursuit of happiness. Nothing more. I also understand that “happiness” and the “pursuit of happiness” are not the same thing.

3. I believe there is no such thing as a “bad job.” I believe that all jobs are opportunities, and it’s up to me to make the best of them.

4. I do not “follow my passion.” I bring it with me. I believe that any job can be done with passion and enthusiasm.

5. I deplore debt, and do all I can to avoid it. I would rather live in a tent and eat beans than borrow money to pay for a lifestyle I can’t afford.

6. I believe that my safety is my responsibility. I understand that being in “compliance” does not necessarily mean I’m out of danger.

7. I believe the best way to distinguish myself at work is to show up early, stay late, and cheerfully volunteer for every crappy task there is.

8. I believe the most annoying sounds in the world are whining and complaining. I will never make them. If I am unhappy in my work, I will either find a new job, or find a way to be happy.

9. I believe that my education is my responsibility, and absolutely critical to my success. I am resolved to learn as much as I can from whatever source is available to me. I will never stop learning, and understand that library cards are free.

10. I believe that I am a product of my choices – not my circumstances. I will never blame anyone for my shortcomings or the challenges I face. And I will never accept the credit for something I didn’t do.

11. I understand the world is not fair, and I’m OK with that. I do not resent the success of others.

12. I believe that all people are created equal. I also believe that all people make choices. Some choose to be lazy. Some choose to sleep in. I choose to work my butt off.

Ten Essential Economic Truths Progressives Need to Learn

Came across this article. I think #2 is the one that incenses me the most.

1) Government cannot create wealth, jobs, or income. Because government has to take money from somebody before it can spend it, there is no economic gain from anything the government does.

2) Income inequality does not affect the economy.

3) Low wages are not corporate exploitation. In a free country, people voluntarily accept employment, so all workers believe their current job to be the best choice from among their opportunity set.

4) Environmental over-regulation is a regressive tax that falls hardest on the poor.

5) Education is not a public good.

6) High CEO pay is no worse than high pay to athletes or movie stars.

7) Consumer spending is not what drives the economy.

8) When government provides things for free, they will end up being low quality, cost more than they should, and may disappear when most needed

9) Government cannot correct cosmic injustice.

10) There is no such thing as a free lunch.

H/t Lawrence