American Elephants


Business is Demanding to be Regulated. Bad Idea. by The Elephant's Child

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We seem to have entered an age where business executives assume that it is acceptable to do politics with their business. Businesses have, of course, long favored policies that help them to do business, and supported whatever politicians established the policy. That’s perfectly natural. But suddenly we have private-sector businesses entering the political fray, using their corporate budgets to silence free speech, sign on to very contentious political issues without the slightest awareness that there is a large mass of customers who may be offended.

“The reason that capitalism has managed to create real economic growth of 1.5% annually, and a 19-fold  increase in living standards over —the last two centuries — is because when people treat the marketers and inventors  as having some dignity and liberty, innovation takes hold.” (Those words are from economist Dierdre McCloskey). The reason why innovation has created and is continuing to develop computer connectivity, artificial intelligence and all that can lead to— is because business has been free of government control. There are many countries where such freedom does not exist, and government tells business what to produce and how and when, where and with whom.  Perhaps these executives were too busy with technology to study a little history: perhaps The Gulag Archipelago, or maybe Milton Friedman’s Capitalism and Freedom.

Milton Friedman, in his 1962 classic, presented his view of the proper role of competitive capitalism — the organization of economic activity through private enterprise operating in a free market — as both a device for achieving economic freedom and a necessary condition for political freedom.

Economic freedom is not going to work when some businesses chose to boycott other businesses for political reasons. They are dealing with the public, their customers, who can choose to boycott too, and are doing so.

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Why Intellectuals Hate Capitalism by The Elephant's Child

John Mackey, CEO of Whole Foods explains why Intellectuals hate Capitalism. Professors at our Universities have long seethed with envy when they see the published income of corporate CEOs. After all, they have PhDs, it is their ability to pass on real knowledge that made these upstarts able to become corporate big shots. If you wondered why college tuition has so far eclipsed any rise in the economy, part of it is the demands of professors to receive what they believe to be their due emolument. This video is from August 2015, pre-Amazon, but illuminating nevertheless. It explains a lot.



A Little Clarity About the Virtues of Socialism – There Aren’t Any. by The Elephant's Child

Daniel Hannan is the Member of the European Parliament for South East England, for the Conservative Party. This speech is from 2014, but still more than appropriate. Bernie Sanders, committed Socialist, suggests we should have a government more like Sweden — currently the rape capital of the world. Hannan is a Euroskeptic, and argues for Democratic reform. If you prefer, he can speak in either French or Spanish as well.

When we graduate aspiring politicians, I wish we could send them to Britain to learn how to speak without uhs and ands and garbled language and fuzzy thought.



When Will They Ever Learn? When Will They learn? by The Elephant's Child
June 24, 2015, 8:52 pm
Filed under: Democrat Corruption, Economy, Taxes | Tags: , ,

Basic Economics. Connecticut is one of the worst states in the country when it comes to business taxes. The state is now looking at another round of business tax hikes. With their latest budget, the Connecticut legislature has now increased business taxes five times since 2011, forcing companies located in the state to pay the fifth highest tax rate in the nation.

With the latest increase, accountants will be working overtime to deal with the new budget that includes nearly $2 billion in tax increases, including a $700 million increase in business taxes.

Bright politicians know an opportunity when they see one. Governors Mike Pence of Indiana and Greg Abbott of Texas pay attention. Republicans both, the governors have written to the corporate leadership of GE, Aetna, and Travelers, inviting them to tour their states and investigate the tax advantages that Connecticut can no longer provide.

Bloomberg reported that Abbott’s letter boasted of a $3.8 billion tax-cutting package approved by the Texas legislature in May that included a 25 percent cut in the business franchise tax. That alone would save companies in Texas a total of $2,5 billion in the next ten years.

Pence wrote that “Businesses in Indiana grow with confidence, while businesses in high-tax states like Connecticut operate in fear of seeing their piggy banks raided,” wrote Pence. “On behalf of 6.7 million hardworking Hoosiers, we are constantly meeting with companies around the world that are choosing Indiana and enjoying an instant spike in earnings. With Connecticut taxes skyrocketing, it’s important to remind businesses that Indiana is here to help as a state that works.

Fifty percent of Connecticut residents in a poll over the last year said they would leave the state if they could, but they can’t sell their houses because nobody wants to move in because of taxes.

Legislative leaders Sharkey, Looney and Duff ( sorry, I couldn’t resist) Senate President is Martin M. Looney, Majority Leader Robert Duff and Speaker of the House Brendan Sharkey, were all pleased with their budget which contains major property tax relief and long term investments in transportation. “A brighter tomorrow will start with this budget today” said Gov. Malloy.

Texas and Indiana are standouts in the nation for their low taxes and successful economies. We’ll see how many Connecticut businesses decide to relocate..



The American Economy Shrank by 0.7 Percent in The First Quarter. by The Elephant's Child
May 29, 2015, 10:49 pm
Filed under: Economy | Tags: , , ,

The revised figures for the first quarter show that the American economy shrank by 0.7 percent — January through March. The administration did not, however try to blame it on Bush, they blamed it on the harsh winter. It was a brutal winter on the east coast and in the Midwest. It is the third quarter in which the economy has actually contracted (the other two were the first quarters of 2011 and 2014).

This has been the slowest, most sluggish recovery since World War II. The strong dollar has meant that American exports are down. but other economies are not healthy either, including China’s. The Obama administration’s big-government, big-deficit, big waste and big-regulation policies are not a recipe for growth or recovery.

A new study finds that overhead costs are exploding under ObamaCare. Another promise up in smoke. The Health Affairs Blog published a study based on numbers from the Centers for Medicare and Medicaid Services, the agency that runs ObamaCare and found that ObamaCare increased health care costs by $17 billion last year, and by 2020 will add a total of more than $270 billion.Twenty-two percent of all new spending is going to overhead, paperwork, not patient care.

The United States spends more on regulation than ever before. The amount spent has increased significantly as has the number of people who are employed to write and enforce the increasing number of government regulations. In 1990, total spending on regulatory activity was $20.6 billion. This year it will clock in at $60.1 billion, a 192% increase. The National Association of Manufacturers estimates that in 2012 the total cost of federal regulations was just over $2 trillion — 13 5 of that year’s GDP.

Is this unruly Americans who need more careful control? Not likely. It is an administration that sees power and control as a goal. Not a climate in which free enterprise can prosper.



Collectivism: “We’re All In This Together” Doesn’t Work. by The Elephant's Child

Andrew Klavan summed it up pretty well today:

Whatever its pretensions, whatever its claims, statism — progressivism, leftism, socialism — is based on the idea that a small elite intelligentsia can run your life better than you can. They know how to spend your money. They know how to educate your children. They know how to run your health care. They know how to protect you from yourself.

You do not have to talk to a statist very long before he will profess an intense dislike, distrust and even fear of ordinary people. Ordinary people spend money on what they want (TV’s restaurants and cars) rather than what the elite know they ought to want (aluminum foil climate change reversers). Ordinary people teach their children that God created the world rather than a random pattern of mathematic realities that came into being through another random pattern that came…  well, the elite know: it’s random patterns all the way down! Ordinary people will give jobs and business to those who earn them rather than those the elite, in their greater understanding, know are historically deserving because of past oppression. And so on.

Now, of course, with the very elite of the elite running the country, we find that — what do you know? — this statism dodge doesn’t really work all that well. And there are two reasons for this. The first is that the statist premise is wrong. In fact, ordinary people left at liberty to do as they will are actually better at running their lives and businesses and country than the geniuses in Washington. Central planning works great in the imaginations of the elite, but in the real world…  not so much.



Conservatism is Calling by The Elephant's Child


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