American Elephants


A Strong Need for Intellectual Consistency! by The Elephant's Child

Economist Mark Perry presents his Venn diagram of the day:

If a 20% tax reduced consumption of sugar drinks, what about a 107% increase in the minimum wage?

cu59k-fwgaat8wi



How About a Little Really Good News Instead? by The Elephant's Child

poverty2

Economic charts may not get framed and put on the wall, but some of them deserve a little celebration. This one represents “the Greatest and Single Most Remarkable Achievement in Human History — the significant reduction of the share of the world’s population living in extreme poverty over the last two hundred years, especially the 84% reduction in just the last 40 years from 60% of the world’s population in 1970 to less than 10% last year. ”

“We can thank the free enterprise system for the remarkable reduction in world poverty. It is America’s gift to the world. “



A Lost Decade of Growth, and How it Got Lost by The Elephant's Child

key-considerations-for-growing-family-businesses-in-a-thriving-economy
A Lost Decade for the American Economy:
James Pethokoukis

“—The American economy hasn’t managed a single year of even 3% growth since 2005. From the end of World War II through 2005, the economy grew at an average annual rate of 3.5%. Three percent growth+ has been what’s normal. “

Welcome to the new normal. The economy hasn’t managed a single year of even 3% growth since 2005. A lost decade, at least by American standards. (We’re not Japan, after all.) The rundown: Real GDP growth for 2015 was 2.4%; 2014: 2.4%; 2013: 2.4%;  2012: 2.4%; 2013: 1.5%; 2012: 2.2%,  2011: 1.6%; 2010: 2.5%; 2009: – 2.8%; 2008: – 0.3%;  2007: 1.8%.

Why Socialism Always Fails: Mark Perry

“Socialism is the Big Lie of the twentieth century. While it promised prosperity, equality, and security, it delivered poverty, misery, and tyranny. Equality was achieved only in the sense that everyone was equal in his or her misery. …

A pyramid scheme is ultimately unsustainable because it is based on faulty principles. Likewise, collectivism is unsustainable in the long run because it is a flawed theory. Socialism does not work because it is not consistent with fundamental principles of human behavior. The failure of socialism in countries around the world can be  traced to one critical defect: it is a system that ignores incentives. …

By their failure to foster, promote, and nurture the potential of their people through incentive-enhancing institutions, centrally planned economies deprive the human spirit of full development. Socialism fails because it kills and destroys the human spirit–just ask the people leaving Cuba in homemade rafts and boats [and those waiting in long lines today in Venezuela struggling, and often failing, to buy food].

The temptress of socialism is constantly luring us with the offer: “give up a little of your freedom and I will give you a little more security.” As the experience of this century has demonstrated, the bargain is tempting but never pays off. We end up losing both our freedom and our security.”



The Immoral CEO — Worker Pay Gap, and How It Works by The Elephant's Child

From the Wall Street Journal, February 20, Notable & Quotable Column.

WSJ-1——



How Democrats Lie and Mislead About the American Economy by The Elephant's Child

climate-pledge-park-area

—The correct minimum wage is $0.00. If you want to hire your neighbor’s 11 year old kid to mow your lawn or pull weeds, you should be able to offer him something under the current minimum wage.

The goofy Democrat line is “But you can’t raise a family on the minimum wage.” Well, no you can’t, but by the time you have a family, you should have some skills that are more useful than those of a pure beginner. We forget that employment, like everything else in the economy, depends on supply and demand. The supply of people who can do a simple minimum wage job successfully is very, very large. The supply of those who can run a giant corporation with 20 divisions, 20,000 employees and country-wide or international reach is significantly much, much smaller. The average tenure for a CEO as head of a corporation is only six years.

—Wal-Mart, America’s largest employer just announced that they will close more than 150 US stores — which will mean that 10,000 employees will lose their jobs. Shutting down underperforming stores will help to move the company back to health, when it can create more permanent jobs. Wal-Mart voluntarily raised its base wage to $9 an hour last April, but this resulted in a 10% drop in earnings. A Union backed group that has heckled the retailer to raise it’s entry level wage, was astonished. But the job losses are the direct result of the changes made at Wal-Mart.

—Here’s Economist Mark Perry at AEI with a list of ten reasons why economists object to the minimum wage.

Obama and Hillary are still pretending that women are paid less than men because America’s employers discriminate against female workers. The Left needs women to be victims, and Hillary is running on her qualifications as a woman. “Today, women account for almost half of the workforce,” Obama huffed. “But the typical woman who works full time still earns 79 cents for every dollar that the typical man does.” Bogus statistic, and Obama knows it, for it simply depends on comparing all women to all men. It has been against the law to pay women and men who do the same job differently since 1963.

Unless women stop getting married and having children, and start abandoning careers in childhood education for naval architecture, this huge gap in wages will almost certainly persist. Democrats thus can keep bringing it up every two years.

—Income inequality, the basis of the entire Democrat campaign, is a factor of demographics. Kids starting out have little income and may have big student loans, or renting an apartment or buying a used car are big expenses. There are more middle-age and old people now than there used to be, and older people tend to have more money than their younger counterparts simply because they have been earning money much longer.

A 70 year old man has been saving most of his life. He owns his home. his children are  grown, he gets Social Security on retirement, and has benefited from a life-long buildup of career skills and connections and is apt to have far more money than a 30 year old. There is a clear relationship between age and the median net worth of people in every quintile. There are more old people as the baby boomers reach retirement age, and the birth rate has dropped so there are fewer young people. Do not let the Democrats fool you with their whining about Income Inequality. Sheer Demographics.

—In his remarks to the Press on Friday, when he bragged about the wonderfulness of his economy, Obama mentioned the drop in the cost of gasoline as one of his beneficial outcomes. That happened in spite of Obama, not because of Obama, as a result of the glut of oil based on Fracking. Obama’s instinctive response is to try to slap a $10 a barrel tax on oil so he can raise the cost of gasoline at the pump — while having more taxes to invest in “clean energy” which is pure waste. Obama’s wind and solar investment, in spite of the huge subsidies and grants, provide a resounding 0.3 percent of America’s energy.

(additional sentence added about equal pay for women)




%d bloggers like this: