A Beginner’s Guide to Bitcoin & Blockchain Technology [INFOGRAPHIC]

Bitcoin and Blockchain Technology:

Interested in knowing about BITCOIN?

Then you are at right place, Bitcoinfy.net provides vivid information about Cryptocurrencies and Bitcoin in detail.

ARE YOU A BEGINNER?

Bitcoinfy.net vindicates brief information about bitcoins from their origin to usage. Checkout this infographic on “A Beginner’s Guide To Bitcoin & Blockchain Technology” to get a detailed information on “What Bitcoin is?, How does it work? & How it’s related to online gambling?”

Infographic by Bitcoinfy.net.

California’s Typhus Surge Is Linked to Fleas, Feces, and Bad Economic Policies

There might not be a government-backed solution to Los Angeles’ typhus outbreak, but if the city’s and state’s politicians really want to end homelessness, then repealing zoning and minimum wage laws would be a great start.


Typhus is on the rise in Los Angeles, with its epicenter in downtown, where the city’s sanitation officials are struggling to respond to the nearly two thousand “cleanup requests” they get from locals every month.

Like San Francisco, LA is struggling to clean up city streets of human waste—specifically feces—due to a lack of public restrooms and a growing homeless population.

There was an average of 700 requests in the area in the spring of 2016, but officials now claim they receive about 1,900 cleanup calls per month thanks to the number of growing homeless camps. But the growing homelessness and sanitation nightmares have led to yet another crisis: a rise in flea-borne typhus.

Between July and September, county officials identified at least nine typhus cases that originated in downtown. At least six of the infected were homeless, but central LA isn’t the only place at risk.

Officials in the city of Pasadena, also located in Los Angeles County, claim 20 residents had typhus fever this year. Typhus cases have also been registered in Long Beach and Willowbrook.

As the number of cases continues to rise, the Los Angeles County Board of Supervisors feels pressured to act. They recently voted on a pilot program to fight the illness in homeless encampments by adding more cleanup efforts, introducing more mobile showers, offering the homeless housing, and distributing hand sanitizer and flea repellent for people and pets.

The crisis, which has already made 64 victims this year alone, has deeper roots. At least, that’s what 5th District Supervisor Kathryn Barger appears to claim.

“When I drive through parts of my district and I see the living conditions on the street, it reminds me of a third-world country,” Barger said.

Perhaps the fact that California falls behind every single state in the country when it comes to fiscal, regulatory, tax, and economic policies—much like many “third-world” countries—has something to do with the current conditions residents are now forced to grapple with.

As the Cato Institute’s Freedom Index reveals, California’s suffocating regulatory environment has a series of very real and heartbreaking consequences.

When it comes to land-use freedom, for instance, cities like Los Angeles have restrictive rules regarding housing supply and rent control, keeping builders from developing affordable housing and helping to artificially increase the cost of housing across the board.

But bad housing policies are not the only cause of growing homelessness in Los Angeles. The state’s labor laws add insult to injury by making it difficult for employers to help those in need. With high minimum wage laws, no right-to-work policies in place, mandated short-term disability insurance, and prohibiting consensual noncompete agreements, job creation in California is dramatically held back, and the poor and low-skilled are unable to break into the labor market.

In addition, occupational licensing also keeps entrepreneurs from entering the market due to the extensive cost associated with obtaining the mandated training and certification to perform simple services.

With state lawmakers being so eager to get involved in every single affair, from banning straws to keeping residents on a budget from using scooters, it’s hard to see how these rules could be repealed—or at least reformed—anytime soon.

As the founder and president of the Future of Freedom Foundation Jacob G. Hornberger explained, the root causes of homelessness in most major urban centers across the US are both minimum wage laws and zoning, two policies that are not only in effect in California but that have been revamped and strengthened again and again over the years.

With California residents once again helping progressives stay in power in the region, we know these policies are not going anywhere. If anything, they will continue to receive widespread support from the newly-elected governor.

For the time being, there might not be a government-backed solution to Los Angeles’ typhus outbreak, but if the city’s and state’s politicians really want to end homelessness, then repealing zoning and minimum wage laws would be a great start.

COLUMN BY

Chloe Anagnos

Chloe Anagnos

Chloe Anagnos is a professional writer, digital strategist, and marketer. Although a millennial, she’s never accepted a participation trophy.

EDITORS  NOTE: This column with images is republished with permission.

Will Bitcoin Continue To Rise Or Is It A Volatile Road Ahead?

Bitcoin recently passed the historic and record-breaking $10,000 mark, and then promptly fell back again. At the start of this year, as with every year so far in Bitcoin’s short history, many crypto-enthusiasts and investors predicted big gains for Bitcoin’s price. But, very few anticipated just how large those gains would be. Multiplying its value 10-fold from $1000 to $10,000 within a year, Bitcoin has proven to be the world’s best performing financial asset in 2017. But, how can we get past the media hype and know if this trend will continue?

Bitcoin’s Rocky Rise So Far

The price of Bitcoin has historically been volatile and unpredictable for years – and even from day to day. Bubbles, sell-offs, and flash crashes can all be seen in the price history chart. Nobody has been able to consistently predict where its value will go next. This volatility is due to a number of things, including a relatively small global market capitalization, a high level of speculative investment, limited use cases for cryptocurrencies so far, and lack of interest from larger regulating bodies and financial institutions.

However, if you take a step back from the chaos, there is one trend that has endured throughout the history of Bitcoin – the price eventually goes up. The price has gone up so quickly that the large bubbles and crashes of the past seem to fade into insignificance. The most famous bitcoin crash in 2014 saw the price drop from over $1000 to $300.

Overall the upward trend has been at an exponential rate, meaning large financial gains for those that have invested in Bitcoin so far. This trend has continued in 2017.

Bitcoin’s Recent Breakout

The huge 10x surge in the price of Bitcoin over the last year isn’t completely out of the blue. Billionaire investor Tim Draper predicted in 2014 that Bitcoin would hit the $10,000 mark in three years, and he was correct. The basis for his predictions was that Bitcoin would prosper if the right infrastructure was built around it. Three years on, much of that infrastructure is coming along nicely.

New startups and companies have emerged that are finding useful ways to apply cryptocurrencies and blockchain, proving there is value in the technology. Creative solutions to technical problems such as the Bitcoin scaling debate are also popping up.

Perhaps most importantly, the major Bitcoin trading platforms have earned the trust of the public and traders, who are looking for efficient ways to buy Bitcoin, and now the larger financial institutions are getting in on the action as well. One key influence has been that Nasdaq, the world’s second-largest stock exchange, announced that they plan to launch Bitcoin futures in 2018. Recognition from major institutions like this is what Bitcoin needs to assert itself in the financial big leagues.

Where is Bitcoin Heading?

The key factors influencing Bitcoin’s price are political and economic uncertainty (Bitcoin is seen as a hedge against falling fiat currencies), actions by large institutions and regulators, the community surrounding Bitcoin, and media hype. There is no doubt that media hype and speculation are at a high right now, but people have been saying that for years. This has been a big driving factor, but there are other forces at play.

Bitcoin is surrounded by favorable circumstances at the moment. Blockchain technology has been tried and tested, governing bodies around the world are starting to take cryptocurrencies seriously, big financial institutions and hedge funds are starting to pour money in, all the while global economics and politics are getting scarier.

Put all these together, and what you get is the soaring Bitcoin price we’ve seen this year. It looks certain that cryptocurrencies, while still developing, are going to have a major role to play in the future online economy. If this is the case, the price of Bitcoin could rise even more. Of course, there will be volatility, bubbles, and crashes along the way, but the long-term, underlying trend of the Bitcoin price is clear – it’s going to rise.

EDITORS NOTE: This column with images originally appeared on CryptoCoin.News. It is republished with permission.

Collectivism and the 8th Commandment

In the 18th century our Founding Fathers fought the War of Independence to escape the tyranny of the British monarchy. Our Founding Fathers envisioned a New World where citizens of the United States of America would be bound by the Constitution and live as free individuals in a government of the people, by the people, and for the people.

The 10 Commandments were foundational to the Judeo-Christian tradition of the United States and to its ordered liberty. The Commandments provided the infrastructure and moral basis for the secular laws written to govern American society.

The separation of church and state was an acknowledgement that different religious doctrines existed within the Judeo-Christian tradition. The Establishment Clause and Free Exercise Clause of the First Amendment was a defense against the tyranny of an official state religion.

What our Founding Fathers did not envision was the secular tyranny of collectivism – collectivism is a late 19th century political ideology.

“Thou Shalt Not Steal” is the 8th Commandment that strictly forbids stealing. So, let’s talk about stealing – the taking of another person’s property.

Stealing assumes a separation between self and other and is an acknowledgement of property rights. That is, one person cannot take another person’s property unless both parties acknowledge that each person has a separate existence and that property belonging to one is not the property of the other.

There would be no moral injunction against stealing and no Commandment or secular law against stealing without this fundamental acknowledgement.

The problem with collectivism, whether it is socialism or communism, is that it defies this most fundamental acknowledgement. Collectivism denies the property rights of an individual and, therefore, that individual’s existence as a separate entity.

Collectivism says that what is yours belongs to the state and the state is the entity that determines its distribution. Theoretically, without property rights there are no human rights because if what I produce is not mine and the fruits of my labors belong to the state, then I do not belong to myself. I am without human rights.

Collectivist ideology is antagonistic to the Judeo-Christian tradition because it denies the existence of the self. In collectivism the individual’s life belongs to the group.

This most fundamental and critical issue of property rights and its connection to human rights and the self is denied by the humanitarian hucksters selling socialism. When Obama tells business owners “You did not build that” he is denying their human rights and misappropriating them to the state. Obama is the prime time humanitarian huckster disingenuously selling socialism as the provider of social justice and income equality. He is the consummate con man deceitfully selling “resistance” as freedom fighting.

What Obama and his sycophants are not saying is that first socialism steals your property and then socialism steals your freedom. Ask the good people of Venezuela who were duped by the humanitarian hucksters selling socialism in their once beautiful and prosperous country. The ruling elite in Venezuela stole the private property of its citizens by socializing the country. Without private property the government had complete cradle-to-grave control of the population – the population ceased to exist as individuals – they had forfeited their freedom to socialism.

The Leftist Democrat Party is the party of collectivism in America that envisions a New World order similarly antagonistic to the individual. The Left denies the property rights of the individual (You did not build that) and, therefore, that individual’s existence as a separate entity. President Donald Trump is the existential enemy of the Leftist Democrat party because he rejects collectivism entirely. POTUS believes in Americanism, the sovereignty of the United States, equal opportunity, and the freedom of the individual.

Decades of insidious educational indoctrination of America’s youth toward collectivism has made socialism and anything anti-Trump fashionable today.

The recent midterm election was a referendum on socialism and the ongoing contentious battle between individualism and collectivism.

Craig Biddle’s clarifying article explained the divide in 2012, Individualism vs Collectivism: Our Future, Our Choice.

Ayn Rand articulated the implications of the choice in the 1960’s:

  • “Whoever claims the ‘right’ to ‘redistribute’ the wealth produced by others is claiming the ‘right’ to treat human beings as chattel.”
  • “Both [communism and socialism] negate individual rights and subordinate the individual to the collective, both deliver the livelihood and the lives of the citizens into the power of an omnipotent government – and the differences between them are only a matter of time, degree, and superficial detail, such as the choice of slogans by which the rulers delude their enslaved subjects.”
  • “There is no difference between communism and socialism, except in the means of achieving the same ultimate end: communism proposes to enslave men by force, socialism – by vote. It is merely the difference between murder and suicide.”

The Leftist Democrat party of collectivism wants open borders, sanctuary cities, illegal immigration, birthright citizenship, and chain migration so that illegal aliens can VOTE!

The Leftist Democrat party has embraced the tyranny of collectivism in defiance of the 8th Commandment. Leftist Democrats are stealing your liberty with every socialist policy that redistributes your private property, your voting privileges, and your tax dollars to illegal immigrants who will then vote the leftist Democrats into power. Incentivizing illegal immigration to vote themselves into office will eventually award your private property and your individual freedom to the government which is precisely how socialism enslaves the population by vote.

Open borders and the importation of illegal immigrants is a humanitarian hoax. It is a power grab by Leftist Democrats designed to install themselves as rulers of a socialized America. Venezuela is a cautionary tale. A commitment to socialism is what Obama pledged when he deceitfully promised to fundamentally transform America.

Capitalism provides equal opportunity for the American dream in our constitutional republic. Socialism provides equal outcome as promised – eventual shared national poverty because as Margaret Thatcher so wisely remarked, “The problem with socialism is that eventually you run out of other people’s money.” The choice is ours – individualism vs collectivism.

Our 18th century Founding Fathers could not envision the tyranny of collectivism but we 21st century Americans can.

We cannot allow the Left to steal America – remember the 8th Commandment – Thou Shalt Not Steal.

EDITORS NOTE: This column originally appeared in the Goudsmit Pundicity. The  featured photo is by Ryan Loughlin on Unsplash.

When Corporations Ask You to Vote, Whose Values Are They Promoting?

Last month, Levi’s urged Americans to vote. 2ndVote noticed that their ostensibly neutral ad came just weeks after they put one million dollars into a gun control campaign.

They are one of four companies we want you to know are trying to influence your votes today. Levi’sLyftPatagonia, and Walmart are using their corporate power to put politicians who oppose your values into office.

Patagonia

Patagonia’s endorsement of two liberal Democrats is important for two reasons. First, the company clearly is serious about its environmental values — even though cap-and-trade would devastate the U.S. economy and the Paris climate deal was a bad joke. Second, Patagonia is a direct funder of Planned Parenthood. As we noted late last year:

On his way out the door in early 2017, then President Obama issued an executive order designating the Bears Ears National Monument over objections by the Utah government and congressional delegation. Obama’s order also designated the Gold Butte National Monument in Nevada. The designation, which was essentially a land-grab by the federal government, severely restricts recreational and economic use of the land, such as livestock grazing and timber harvesting.

After President Donald Trump partially reversed course, Patagonia’s founder said he would not “let evil win.” This despite sending tens of thousands of dollars to Planned Parenthood!

Walmart, Lyft, & Levi’s

As mentioned above, Levi’s has urged people to vote with its ad — which, we admit, is pretty slick. However, slickness doesn’t dodge the fact that Levi’s is clearly pushing liberal values. The same is true for Walmart and Lyft, which The New York Times highlighted last month for working with Patagonia and Levi’s (among many other less-political companies) on getting out the vote:

Patagonia, for example, is currently suing Mr. Trump for his decision to shrink the size of several national monuments. Walmart’s chief executive, Doug McMillon, chastised Mr. Trump after Charlottesville. And Lyft made a symbolic $1 million donation to the American Civil Liberties Union after Mr. Trump announced his initial travel ban targeting Muslim-majority countries last year.

Patagonia is shutting its corporate campus and its retail stores in the United States for the entire day. Levi’s is giving corporate employees five hours to vote on Election Day, and retail employees will get three hours. Walmart created a website with resources to help people get informed and to the polls.

And Lyft is providing discounted rides to polling places, and will provide free rides to people in underserved communities, which it is identifying with help from nonprofit organizations including Voto Latino and affiliates of the Urban League.

Here’s the thing: go and vote. Please. All Americans who can legally vote ought to do so, especially if they are educated on what direction in which they want America to go. It is good that employers are letting their employees off of work to vote.

But let’s be real about what these companies want. Lyft is working with the Urban League, organization that support same-sex marriage and sanctuary city policies and opposes the right to self-defense. And Lyft’s donation to the ACLU is hardly “symbolic,” given that the ACLU has declared virtual war on the Trump administration.

So there we are. Please stop reading and go vote. The nation needs your 2ndVote values to influence your first vote.


Help us continue providing resources like this and educating conservative shoppers by becoming a 2ndVote Member today!


EDITORS NOTE: This column with images is republished with permission. The featured photo is from Shutterstock.

Capitalism Brings Us Together, Authoritarianism Tears Us Apart

Empathy is fostered in a culture where commercial transactions occur between all walks of life.

You’ve probably heard this story before: a terrible crime occurs, the press interviews the neighbors of the perpetrator, and the neighbors say they never saw it coming.

Consider Robert Bowers, the mass murderer who killed eleven people at the Tree of Life synagogue in Pittsburgh. One neighbor said this:

It’s just so disturbing that someone so normal could have so much hate. You think you know your neighbor, but this just shows how wrong you can be.

Some may dismiss such comments as coming from clueless, unobservant individuals. Surely there are signs that individuals, such as Bowers, are capable of committing heinous acts. We are comfortable believing in good guys and bad guys, separated by a relatively impermeable barrier between the polarities. Think of villains in popular movies and television—they are often one-dimensional characters who easily commit terrible acts, often without a rationale.

Renowned psychology professor Roy Baumeister is best known for his work on willpower. His work on the nature of evil deserves close examination, too. He begins his book, Evil: Inside Human Violence and Cruelty, with a bold proposition: “Evil usually enters the world unrecognized by the people who open the door and let it in. Most people who perpetrate evil do not see what they are doing as evil.”

Baumeister defines evil as “actions that intentionally harm other people.” When we have a black and white view of evil, it is easy to believe that those like Bowers must be insane. Not true, Baumeister informs us: “insanity is in fact a relatively rare and minor cause of violence.”

Calling someone “insane” is an attempt to absolve them of responsibility. As Baumeister observes, “People do become extremely upset and abandon self-control, with violent results, but this is not insanity.” He adds, “violence is often an impulsive action representing a failure of self-control—but a failure in which the person often acquiesces.”

Would you, Baumeister asks, “obey orders to kill innocent civilians? Would you help torture someone? Would you stand by passively while the secret police hauled your neighbors off to concentration camps?” Baumeister writes, “Most people say no. But when such events actually happen, the reality is quite different.”

In his acclaimed work The Gulag Archipelago, Aleksandr Solzhenitsyn observed:

If only there were evil people somewhere insidiously committing evil deeds, and it were necessary only to separate them from the rest of us and destroy them. But the line dividing good and evil cuts through the heart of every human being. And who is willing to destroy a piece of his own heart?

Solzhenitsyn continued by observing that the line between good and evil is permeable:

During the life of any heart this line keeps changing place; sometimes it is squeezed one way by exuberant evil and sometimes it shifts to allow enough space for good to flourish. One and the same human being is, at various ages, under various circumstances, a totally different human being. At times he is close to being a devil, at times to sainthood. But his name doesn’t change, and to that name we ascribe the whole lot, good and evil.

In his book The Better Angels of Our Nature, Professor Steven Pinker echoes Solzhenitsyn and Baumeister: “Humans are not innately good (just as they are not innately evil), but they come equipped with motives that can orient them away from violence and toward cooperation and altruism.”

Pinker reveals the factors that help us choose good over evil:

Empathy (particularly in the sense of sympathetic concern) prompts us to feel the pain of others and to align their interests with our own. Self-control allows us to anticipate the consequences of acting on our impulses and to inhibit them accordingly. The moral sense sanctifies a set of norms and taboos that govern the interactions among people in a culture, sometimes in ways that decrease violence, though often (when the norms are tribal, authoritarian, or puritanical) in ways that increase it. And the faculty of reason allows us to extricate ourselves from our parochial vantage points, to reflect on the ways in which we live our lives, to deduce ways in which we could be better off, and to guide the application of the other better angels of our nature.

Baumeister, Pinker, and Solzhenitsyn are correct: The conditions under which people are prone to tip to their evil side deserve a great deal of study and reflection.

Many of us hold popular beliefs “that frustration, violent movies, poverty, hot weather, alcohol, and unfair treatment all cause aggression.” Baumeister rejects these theories and asks:

Why isn’t there more evil than there is? … Then why wouldn’t almost every adult in America have committed several murders and dozens of assaults by now? After all, how many adult Americans have not been frustrated? Have not seen violent films? Have not felt poor or suffered from hot weather or so forth?

For Baumeister, the answer is clear:

Most violent impulses are held back by forces inside the person. In a word, self-control prevents a great deal of potential violence. Therefore, regardless of the root causes of violence, the immediate cause is often a breakdown of self-control.

Evil and violence increase when we choose to not restrain ourselves. Baumeister explains:

When evil increases, it does not necessarily mean that the causes of evil have become more powerful or important. Rather, it may mean that the inner controls have become weakened. Or, to put it another way: You do not have to give people reasons to be violent, because they already have plenty of reasons. All you have to do is take away their reasons to restrain themselves. Even a small weakening of self-control might be enough to produce a rise in violence. Evil is always ready and waiting to burst into the world.

Many people believe low self-esteem leads to violent acts. “The evidence shows plainly that this idea is false,” Baumeister explains:

Violent acts follow from high self-esteem, not from low self-esteem. This is true across a broad spectrum of violence, from playground bullying to national tyranny, from domestic abuse to genocide, from warfare to murder and rape. Perpetrators of violence are typically people who think very highly of themselves.

He observes that “people whose self-esteem is high but lack a firm basis in genuine accomplishment are especially prone to be violent, because they are most likely to have their narcissistic bubble burst.”

Many educators praise students regardless of their accomplishments, fueling narcissism. One can wonder where this will lead. As these young narcissists meet the world will they “feel like lashing out at anyone who says [they] are not as great as [they] thought.”

Both Baumeister and Pinker point to empathy as a factor that brings out our “better angels.” As Baumeister points out, though, human beings tend to feel the most empathy for those who are “most similar to themselves.” In other words, many default to tribalism.

Before his deadly act in Pittsburgh, Bowers blamed Jews for helping to promote immigration. He posted on the social media platform, Gab, “I can’t sit by and watch my people get slaughtered.” “All Jews [must] die” played like a mantra in his mind. If Bowers taps into his capacity for empathy, he extends empathy to a narrowly defined tribe.

Authoritarian societies—whether called socialist, communist, or fascist—are always looking to find scapegoats. In those societies, there is always the “evil other,” a group or groups who have “sabotaged” the greatness of the authoritarian regime. When monstrous evil deeds are committed, some perpetrators assuage their guilt by believing their acts defend their “noble” vision. Others believe they are merely following orders and doing their job.

Reading accounts of Nazi, Soviet, or North Korean concentration camps, remarkable similarities are revealed. Unspeakable brutality is practiced and rationalized. The rationalization always begins with some form of the belief that their victims are not truly human. As Baumeister puts it, “The lack of empathy makes violence toward outsiders easier because it undermines the restraining power of guilt.”

Baumeister relates the story of a man concerned about the lack of food and adequate clothing at a Soviet labor camp in his village. At significant risk to himself, he protested to the camp administrator, “These people might die!” “The camp administrator replied, ‘What people? These are enemies of the people.’”

Since I don’t spend hours at a time driving, I recently called SiriusXM to cancel their service; I could not justify the cost. Before making the call, I knew many complain about how hard it is to cancel their subscription. I was also aware that I’d be speaking with an agent at a call center in India. Yet, as the agent took my call, I was feeling empathy. I imagined the agent was being measured on some retention metric and that he frequently interacted with customers who just wanted to get off the phone without hearing his retention pitch.

The person I spoke with was solicitous and concerned. Why wouldn’t he be? His well-being (succeeding at his job) depends on satisfying customers. The need to satisfy customers brings out an empathetic response towards seeing the world from the point of view of the customer. Perhaps he was looking at a computer screen showing him my limited usage stats. Ten minutes and a pleasant chat later, the price of my service was reduced to a win-win, 65 percent off my previous price.

If either of us had no empathy for the other, a lose-lose outcome might have resulted. Empathy greases the wheels of commercial transactions. SiriusXM is rewarded when they hire empathic service agents who can discern consumers’ needs.

Perhaps some readers are cynical of my account. Oh, come on; he probably hates his job and was merely following a script. I doubt it, but even so, the demands of commerce were forcing the agent to join hands with me in creating a win-win trade. In the process, his practice of empathy was being rewarded.

In a Forbes essay, “A Virtuous Cycle,” James Surowiecki observed how capitalism “encouraged universalism over provincialism,…a willingness to make and keep promises—often to strangers and foreigners… [as well as] a sense of individual, rather than group, responsibility.” He explains why under capitalism, trust is not built merely on tribal personal relationships:

Trust had been the product only of a personal relationship—I trust this guy because I know him—rather than a more general assumption upon which you could do business. The real triumph of capitalism in the 19th and 20th centuries was that trust was woven into the basic fabric of everyday business. Buying and selling were no longer about a personal connection. It was now about the virtue of mutual exchange.

Einstein urged that we widen our circle of compassion. In a letter to a father grieving the untimely death of his son, Einstein wrote:

A human being is part of a whole, called by us the “Universe,” a part limited in time and space. He experiences himself, his thoughts and feelings, as something separated from the rest—a kind of optical delusion of his consciousness. This delusion is a kind of prison for us, restricting us to our personal desires and to affection for a few persons nearest us. Our task must be to free ourselves from this prison by widening our circles of compassion to embrace all living creatures and the whole of nature in its beauty.

Einstein’s call to action is precisely what commerce does: Our circle of compassion widens through empathetic connections forged through trade. If Bowers had been a patient of the Jewish dentist he murdered, might his opinion of Jews been different?

Had he spent time walking the streets of the Squirrel Hill neighborhood where the synagogue was located, might he have stepped into some Jewish businesses? Had he stopped to shop, perhaps he would have realized that Jews were part of the extended order of which we are all a part. Perhaps his hatred would have been mitigated.To be sure, capitalism will not eliminate hatred; the line between good and evil cuts through “the heart of every human being.” Yet capitalism is pointing us in the right direction. As the extended order gets wider, it creates more opportunities for more people to widen their circle of compassion. As commerce weaves together the lives of people everywhere, the question Solzhenitsyn asked—“who is willing to destroy a piece of his own heart?”—becomes easier to answer.

COLUMN BY

Barry Brownstein

Barry Brownstein

Barry Brownstein is professor emeritus of economics and leadership at the University of Baltimore. He is the author of The Inner-Work of Leadership. To receive Barry’s essays subscribe at Mindset Shifts.

EDITORS NOTE: This column with images is republished with permission.

Greece, Prostitution, and the Sad Consequences of Democratic Socialism

The moral of the story is that socialism (however defined) has never worked in any form at any time in history.


My left-leaning friends periodically tell me that there’s a big difference between their benign policies of democratic socialism and the wretched track records of Marxist socialism, national socialism, and other forms of totalitarianism.

I agree. Living in a European welfare state, after all, is much better than living in a hellhole like CubaNorth KoreaZimbabwe, or Venezuela.

Not only do you enjoy the rule of law (no Khmer Rouge-style concentration camps!), but you also enjoy considerable prosperity compared to the rest of the world.

But there are two things to understand about that prosperity:

Let’s consider the case of Greece. I’ve written many times about the debilitating impact of high tax rates and wasteful spending in that nation. It has the least economic freedom of all nations in Western Europe, so it’s no surprise that it is falling further behind.

But sometimes a compelling example is the best way of helping people understand the harmful impact of big government. From The New York Times:

We were on Filis Street — a warren of alleyways and dingy two-story houses — which has been home to Athenian brothels for most of the past century. The trade is more desperate now because of Greece’s lost decade since the 2008 financial crisis, which has left no profession unscathed. The collapsed economy and the arrival of tens of thousands of migrants have pushed even more women into prostitution — even as prices have fallen through the floor…“I had a flower shop for 18 years — and now I’m here out of necessity, not out of joy,” said Dimitra, a middle-aged woman who lost her shop in the crisis and now works as a madam…the number of prostitutes in the city had increased by 7 percent since 2012, yet prices have dropped drastically, both for women working on the streets and in brothels. “In 2012, it would require an average of 39 euros” for a client to hire a prostitute in a brothel, Mr. Lazos said, “while in 2017 just €17 — a 56 percent decrease.”

The saddest part of the story is the commentary of the prostitutes:

“I hate sex,” Elena said. “I like the money, not the job.” Anastasia…has worked as a prostitute since she was 14. She’s now 33, and says the work is harder than ever. “People don’t have money anymore,” she said… Monica, a 30-year-old Albanian prostitute…spends six to eight hours a day trying to entice clients, but most do not stay. “They don’t have money,” she said. “They haven’t had money for the past seven years.”… Many Greek men are simply too poor to pay anymore.

support legal prostitution, in part because the alternative of pushing these unfortunate women even further into the underground economy would be worse.

But that doesn’t change the fact that these women don’t have good lives. And the misery of democratic socialism in Greece is making their lives even sadder.

The bottom line is that I now have three awful anecdotes from Greece to help illustrate the wretched impact of big government. In addition to the price-cutting prostitutes we discussed today, let’s not forget that Greece subsidizes pedophiles and requires stool samples to set up online companies.

Needless to say, I hope we never go that far in the wrong direction.

The moral of the story is that socialism (however defined) has never worked in any form at any time in history.

This article was reprinted with permission from International Liberty.

Daniel J. Mitchell

Daniel J. Mitchell

Daniel J. Mitchell is a Washington-based economist who specializes in fiscal policy, particularly tax reform, international tax competition, and the economic burden of government spending. He also serves on the editorial board of the Cayman Financial Review.

EDITORS NOTE: This column with images is republished with permission.

If You Earn $32,400 Annually You Are In the Top 1% In The World

There are those who envy the top 1%. In an interview aired on ABC News on October 18, 2011, former President Obama expressed his commitment to the Occupy Wall Street protesters. “I understand the frustrations being expressed in those protests,” Obama told ABC News’ Jake Tapper.

The top 1% are the sworn enemies of the leaders of the Democratic Party and Democrat Socialists. But who really is in the 1% globally?

In an Investopedia article titled “Are You in the Top One Percent of the World?” Daniel Kurt reports:

The growth of income inequality has long been a hot topic around the globe, but it wasn’t until the “Occupy” movement that the amount of wealth concentrated in the top 1% of society received so much attention.

[ … ]

This raises an interesting question: who exactly are the 1%? The surprising answer: if you’re an American, you don’t have to even be close to being uber-rich to make the list.

Daniel Kurt notes:

Ranking by Income

According to the Global Rich List, a website that brings awareness to worldwide income disparities, an income of $32,400 a year will allow you to make the cut. $32,400 amounts to roughly:

  • 30,250 Euros
  • 2 million Indian rupees, or
  • 223,000 Chinese yuan

So if you’re an accountant, a registered nurse or even an elementary school teacher, congratulations. The average wage for any of these careers falls well within the top 1% worldwide.

Figure 1. The percentage of global wealth owned by the top 1% surpassed 50% as of 2016.

Source: Oxfam

Kurt concludes, “The term ‘top 1%’ of global income may sound like an exclusive club, but it’s one to which millions of Americans belong. It’s a reminder of just how prosperous developed countries are compared to the vast majority of other people who share our planet.”

EDITORS NOTE: The featured photo is by Sharon McCutcheon on Unsplash

Government Economists Offer Window Into What a Socialist US Economy Would Look Like

If the United States were to adopt the socialist policies of Venezuela, the move would slash the economy by 40 percent—or $24,000 per year for the average American, according to a report by the president’s Council of Economic Advisers.

“Coincident with the 200th anniversary of Karl Marx’s birth, socialism is making a comeback in American political discourse,” says the council’s report, “The Opportunity Costs of Socialism.”

“Detailed policy proposals from self-declared socialists are gaining support in Congress and among much of the electorate,” the report continues.

The report specifically cites so-called “Medicare-for-all” proposals, which essentially would be a single-payer health care program. The study found that if Medicare-for-all were financed out of current federal spending—without additional borrowing or tax increases—it would eat up more than half of the entire federal budget.

That would require drastic cuts in Social Security and in national defense to pay for it, said Kevin Hassett, chairman of the president’s Council of Economic Advisers, told reporters in a conference call Tuesday.

Further, the report states, if the Medicare-for-all plan were financed through higher taxes, the gross domestic product would fall by 9 percent, or about $7,000 per person in 2022, because of the high tax rates that would reduce incentives to supply the factors of production.

Venezuela, where the economy is falling apart, is a profound example of what can happen under socialism, Hassett said.

“When you have a breakdown in the rule of law, and you take away private-property rights, it’s not unusual to have a pattern of destabilization,” he said. “When you undermine property rights, it undermines stability.”

Citing the worst examples, the report refers to Mao-era China, Cuba, and the Soviet Union, which nationalized the agriculture industry and caused tens of millions of deaths by starvation.

Asked about current-day China’s strong economic growth, Hassett said that’s due largely to a “hybrid” within its economy that allows private property and market forces in the parts of the economy that are most successful.

Even if the United States adopted the less-repressive socialist policies of Nordic countries—Sweden, Norway, Finland, Denmark and Iceland—it would mean a 15 percent lower standard of living, the council’s report says.

The Nordic countries in some areas are less regulated than the United States, the report says.

“Marginal labor income-tax rates in the Nordic countries today are only somewhat higher than in the United States, and Nordic taxation overall is surprisingly less progressive than U.S. taxes,” the report says.

“However, the Nordic countries do regulate and tax labor markets somewhat more; thus, American families earning the average wage would be taxed $2,000 to $5,000 more per year net of transfers if the United States had current Nordic policies,” the report continues. “Living standards in the Nordic countries are at least 15 percent lower than in the United States.”

However, in the 1970s, the Nordic countries had more restrictive socialist policies. If the U.S. adopted the Nordic policies of that era, the gross domestic product would be about 20 percent lower, according to the council’s report.

COLUMN BY

Portrait of Fred Lucas

Fred Lucas

Fred Lucas is the White House correspondent for The Daily Signal and co-host of “The Right Side of History” podcast. Send an email to Fred. Twitter: @FredLucasWH.

RELATED ARTICLES:

Full report: The true costs of socialism

Socialism has a long legacy of failure across the world.

What Democrats will take from you to push their socialist agenda.

RELATED VIDEO: Dr. Lee Edwards breaks down the findings of the new White House report on the economy.


The Daily Signal depends on the support of readers like you. Donate now


EDITORS NOTE: This column with all images is republished with permission. The featured photo is of Sen. Bernie Sanders, I-Vt., speaking during an event to introduce his Medicare for All Act on Sept. 13, 2017, on Capitol Hill. (Photo: Yuri Gripas/Reuters//Newscom).

Shopping for Halloween Costumes and Supplies? Here Are Some Great Options

With Halloween around the corner, Target is getting all sorts of attention for its costumes, decorations, and candies. Yet the eeriest part of Target’s Halloween offerings are not its masks or bats, but the fact that it still allows men into women’s changing rooms.

It’s up to 2ndVote shoppers to make sure they keep their kids safe and have a great time on the scariest night of the year. 2ndVote recommends the following companies which don’t put politics ahead of customers:

Party CityFamily Dollarand Dollar Tree are all exactly neutral on 2ndVote’s issues. They take a stand for serving customers instead of left-wing politics. As more and more corporations use their customers’ money for political activity which is against America’s values and traditions, 2ndVote shoppers should make sure these companies feel appreciated.

Of course, any Halloween retail recommendations can’t leave out Hobby Lobby. This amazing company is hugely popular already, and especially so since it defeated against the Obama administration’s abortifacient/contraception/sterilization mandate. Shopping here lets them know their fight over four years ago is still appreciated.

As Halloween approaches, be sure to shop #AnywhereButTarget to let them know that you haven’t forgotten about their dangerous policies. Your kids’ costumes should be the scariest part of Halloween.


Help us continue holding corporations and non-profits accountable for their activism by becoming a 2ndVote Member today!


EDITORS NOTE: This column with images is republished with permission.

Where Does Your State Rank on Individual Tax Burden? A Look at All 50 States

axes are the price that regular people pay for government spending. Whether that spending goes to things and services that people want, like road repairs, schools, fire and police protection, trash pickup, public parks, or to things that people don’t really want, like sports stadiums or excessively lavish pension benefits for bureaucrats, the bill for all these things is ultimately paid through taxes.

For most states in the United States, the primary means by which state governments take money from their residents is through income taxes. As part of its 2019 State Business Tax Climate Index, the 81-year-old nonpartisan Tax Foundation has ranked U.S. states according to their individual income tax burden, which is the heaviest-weighted component of their state business tax climate index. The following map shows where each state has ranked according to state income taxes going into 2019.

Katherine Loughead explains what it takes for a state to rank well for their personal income taxes, and also what it takes to rank poorly:

States that score well on the Index’s individual income tax component usually have a flat, low rate with few deductions and exemptions. They also tend to protect married taxpayers from being taxed more heavily if they file jointly than they would be if filing as two single individuals. In addition, states perform better on the Index’s individual income tax component if they index their brackets, deductions, and exemptions for inflation, which improves revenue stability….

States that score poorly on this component are those that tend to have high tax rates and very progressive bracket structures. They generally fail to index their brackets, exemptions, and deductions for inflation, do not allow the deduction of foreign or other state taxes, penalize married couples filing jointly, and do not include LLCs and S corporations under the individual income tax code. The poorest-performing states on this year’s individual income tax component are New Jersey, California, New York, Hawaii, and Minnesota.

She also describes why these taxes are so important in assessing a state’s business tax climate:

The individual income tax is important to businesses because states tax sole proprietorships, partnerships, and in most cases, limited liability companies (LLCs) and S corporations, under the individual income tax code. However, even traditional C corporations are indirectly impacted by the individual income tax, as this tax influences the location decisions of individuals, potentially impacting the state’s labor supply.

That’s no joke. Just consider the case of New Jersey, where the state government has dug itself into a deep fiscal hole because of its excessive spending. In 2016, the departure of just one resident, hedge fund manager David Tepper, who relocated himself and his business to income tax-free Florida, created a fiscal crisis for the state government.

Two years later, New Jersey responded to its worsening fiscal situation by raising its taxes on incomes and corporations in a bid to replace the tax revenues it lost when Tepper moved. Consequently, the state now ranks last overall in both the Tax Foundation’s 2019 individual income tax rankings and its state business tax climate index.

There’s a real lesson to be learned here, but it’s questionable that New Jersey’s elected officials know what it is, because they also increased their spending by 8 percent in the same budget that imposed higher taxes on the state’s residents.

This article is reprinted from the Independent Institute.

COLUMN BY

Nearly Half Of American Children Don’t Have Married Parents. Here’s Why It Matters.

Unmarried couples are having roughly 40 percent of all births in the U.S., marking a trend that may be detrimental to the upbringing of those children.

For the first time in U.S. history, out-of-wedlock births in America are largely a result of cohabitationaccording to the United Nations Population Fund 2018 State of World report released Wednesday. Single mothers had nearly 90 percent of out-of-wedlock births in 1968, but that number decreased to 53 percent in 2017, according to the Pew Research Center.

“Compared to children of married parents, those with cohabiting parents are more likely to experience the breakup of their families, be exposed to ‘complex’ family forms, live in poverty, suffer abuse, and have negative psychological and educational outcomes,” according to the Institute for Family Studies (IFS).

Roughly 14 million American adults cohabited in 2007, and that number rose to 18 million in 2016, according to the U.S. Census Bureau. Half of cohabiting couples in the U.S. are younger than 35, according to Bloomberg Quint. Cohabitation has increased about 2,000 percent since 1960, according to the American Enterprise Institute.

Two-thirds of U.S. adults said increasing numbers of single women raising children by themselves was bad for society, according to a 2015 Pew Research Center survey. Nearly 50 percent of those surveyed also said greater numbers of unmarried couples raising children is not good for society, according to Pew.

Children with single parents have the highest rates of poverty followed by children living with unmarried, cohabiting parents, the IFS reported.

Between 2006 and 2010, 23 percent of births to married women were unintended while 51 percent of births to unmarried cohabiting women were unintended. That number rose to 67 percent for unmarried women not cohabiting.

Two-thirds of cohabiting parents split up before their child reaches age 12, while only a quarter of married parents divorce, according to an April 2017 Brookings Institution report.

Over 40 percent of married mothers and fathers have a bachelor’s degree, according to a March 2016 U.S. Census Current Population Survey. Only 8 to 10 percent of cohabiting mothers and fathers with one or more biological child have a bachelor’s degree.

Children living with their biological cohabiting parents are also more than four times as likely to be physically, sexually or emotionally abused as kids living with their married parents, according to the Fourth National Incidence Study of Child Abuse and Neglect.

Married parents are on average older, better educated, and earn more money than their unmarried cohabiting peers. Some scholars have suggested awarding tax bonuses of upwards of $4,000 per child in order to incentivize people to marry before having children.

Since 1990, marriage rates have also continued to decrease, while those that do marry are delaying.

COLUMN BY

Grace Carr

Grace Carr is a reporter for The Daily Caller News Foundation. Twitter: @gbcarr24.

EDITORS NOTE: This Daily Caller column with images is republished with permission. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities for this original content, email licensing@dailycallernewsfoundation.org. The featured image by mario0107 on Pixabay.

Profitable Choices: Knowing The Different Types Of Apartments

Looking for the right apartment can be very stressful. If you make the wrong decision, you can be in it for the long run. That’s why seeking advice from other people can give you the best ideas on what are the essential tips when choosing the right apartment.

The primary concern people always think of is paying the bills. That’s why you should be very careful when choosing the right apartment so that you can save up money and also balance your expenses. There are a lot of types of apartments you can choose from but see to it as well that the one you want is worth it. Here’s a list of different types of apartments.

Studio Type

A studio type apartment commonly consists of a single room and bathroom. Apartments like these are usually rented by people who are alone or for those people who don’t want large spaces.

Cleaning is one of the reasons why other people prefer this type of apartment. Cleaning in apartments like these can be very easy because it’s a lot smaller compared to other types of apartments. Also, organizing items and other things in your apartment are much more comfortable because the place is not that huge.

Alcove Studio Or L shaped Studio

This type of apartment is relatively the same as the studio type. The only difference is, the alcove studio apartment has an L partition which can be customized in making a bedroom. Apartments like these are a lot bigger than the usual studio type.

Alcove studio type apartments are much better than studio types because the bedroom and dining room can now be separated compared to the usual studio type apartments. You now have enough space to place furniture and other stuff.

Convertible Studio

A convertible studio apartment is much spacious because you can have a bedroom built which separates it from the dining room and kitchen. Some people are looking for apartments that have already a single bedroom. For those who can’t afford them, this can be the alternative. It’s much cheaper than the ones with the has bedrooms already in it.

Convertible (Flex)

This type of apartment is also the same as the ordinary convertible apartment. The only difference is, this has a much bigger space because you can convert areas in the house such the dining room into a two bedroom unit even into a three bedroom unit but it will always depend on the floor plan.

Asking the owner of the apartment for permission before putting up a drywall may help because some owners won’t approve of having a drywall installed in their property. Apartments like these can be converted into many ways as long as you consider the floor plan first before proceeding with the idea.

Loft Apartment

Buildings such as storage facilities and industrial buildings are the ones being renovated to form apartment units such as the lofts. This type of apartment has ample space in it and has a high ceiling. You can maximize the place by putting a different kind of furniture in it.

Lofts are usually located in commercial buildings. Some lofts are quite expensive. Just try asking different owners to compare the prices before deciding in settling in. You can even search the web for sites such as www.yournextplace.ca or other reliable sources for more information about this matter.

Furnished Apartment

If you’re looking for a place that has furniture already in it, then this is the one for you. If you don’t have any pieces of furniture yet, then this type of apartment can provide the basic kinds of furniture and household you need in the house.

This can be quite expensive but if you have the budget for it, then renting this kind of apartment won’t be a problem. Apartments like these are usually for a short term only, because people would rather buy their own house and furniture than rent this type of apartment because of the rate of the lease.

Takeaway

Deciding on what is the best place to stay can be a struggle. Comparing the prices and the accessibility of the area can help you with the decision process. It shouldn’t’ be just about the comfortability; you should also check the safety of the place.

Poverty in the U.S. Was Plummeting—Until Lyndon Johnson Declared War On It [+Videos]

One of the more elementary observations about economics is that a nation’s prosperity is determined in part by the quantity and quality of labor and capital. These “factors of production” are combined to generate national income.

I frequently grouse that punitive tax policies discourage capital. There’s less incentive to invest, after all, if the government imposes extra layers of tax on income that is saved and invested.

Bad tax laws also discourage labor. High marginal tax rates penalize people for being productive, and this can be especially counterproductive for entrepreneurship and innovation.

Still, we shouldn’t overlook how government discourages low-income people from being productively employed. But the problem is more on the spending side of the fiscal equation.

In Thursday’s Wall Street Journal, John Early and Phil Gramm share some depressing numbers about growing dependency in the United States:

During the 20 years before the War on Poverty was funded, the portion of the nation living in poverty had dropped to 14.7% from 32.1%. Since 1966, the first year with a significant increase in antipoverty spending, the poverty rate reported by the Census Bureau has been virtually unchanged…Transfers targeted to low-income families increased in real dollars from an average of $3,070 per person in 1965 to $34,093 in 2016…Transfers now constitute 84.2% of the disposable income of the poorest quintile of American households and 57.8% of the disposable income of lower-middle-income households. These payments also make up 27.5% of America’s total disposable income.

This massive expansion of redistribution has negatively impacted incentives to work:

The stated goal of the War on Poverty is not just to raise living standards but also to make America’s poor more self-sufficient and to bring them into the mainstream of the economy. In that effort the war has been an abject failure, increasing dependency and largely severing the bottom fifth of earners from the rewards and responsibilities of work…The expanding availability of antipoverty transfers has devastated the work effort of poor and lower-middle income families. By 1975 the lowest-earning fifth of families had 24.8% more families with a prime-work age head and no one working than did their middle-income peers. By 2015 this differential had risen to 37.1%…The War on Poverty has increased dependency and failed in its primary effort to bring poor people into the mainstream of America’s economy and communal life. Government programs replaced deprivation with idleness, stifling human flourishing. It happened just as President Franklin Roosevelt said it would: “The lessons of history,” he said in 1935, “show conclusively that continued dependency upon relief induces a spiritual and moral disintegration fundamentally destructive to the national fiber.”

In another WSJ column on the same topic, Peter Cove reached a similar conclusion:

America doesn’t have a worker shortage; it has a work shortage. The unemployment rate is at a 15-year low, but only 55% of Americans adults 18 to 64 have full-time jobs. Nearly 95 million people have removed themselves entirely from the job market. According to demographer Nicholas Eberstadt, the labor-force participation rate for men 25 to 54 is lower now than it was at the end of the Great Depression. The welfare state is largely to blame… insisting on work in exchange for social benefits would succeed in reducing dependency. We have the data: Within 10 years of the 1996 reform, the number of Americans in the Temporary Assistance for Needy Families program fell 60%. But no reform is permanent. Under President Obama, federal poverty programs ballooned.

Edward Glaeser produced a similar indictment in an article for City Journal:

In 1967, 95 percent of “prime-age” men between the ages of 25 and 54 worked. During the Great Recession, though, the share of jobless prime-age males rose above 20 percent. Even today, long after the recession officially ended, more than 15 percent of such men aren’t working… The rise of joblessness—especially among men—is the great American domestic crisis of the twenty-first century. It is a crisis of spirit more than of resources… Proposed solutions that focus solely on providing material benefits are a false path. Well-meaning social policies—from longer unemployment insurance to more generous disability diagnoses to higher minimum wages—have only worsened the problem; the futility of joblessness won’t be solved with a welfare check… various programs make joblessness more bearable, at least materially; they also reduce the incentives to find work… The past decade or so has seen a resurgent progressive focus on inequality—and little concern among progressives about the downsides of discouraging work… The decision to prioritize equality over employment is particularly puzzling, given that social scientists have repeatedly found that unemployment is the greater evil.

Why work, though, when the government pays you not to work?

And that unfortunate cost-benefit analysis is being driven by ever-greater levels of dependency.

Writing for Forbes, Professor Jeffrey Dorfman echoed these findings:

…our current welfare system fails to prepare people to take care of themselves, makes poor people more financially fragile, and creates incentives to remain on welfare forever… The first failure of government welfare programs is to favor help with current consumption while placing almost no emphasis on job training or anything else that might allow today’s poor people to become self-sufficient in the future… It is the classic story of giving a man a fish or teaching him how to fish. Government welfare programs hand out lots of fish but never seem to teach people how to fish for themselves. The problem is not a lack of job training programs, but rather the fact that the job training programs fail to help people… The third flaw in the government welfare system is the way that benefits phase out as a recipient’s income increases… a poor family trying to escape poverty pays an effective marginal tax rate that is considerably higher than a middle class family and higher than or roughly equal to the marginal tax rate of a family in the top one percent.

I like that he also addressed problems such as implicit marginal tax rates and the failure of job-training programs.

Professor Lee Ohanian of the Hoover Institution reinforces the point that the welfare state provides lots of money in ways that stifle personal initiative:

Inequality is not an issue that policy should address… Society, however, should care about creating economic opportunities for the lowest earners… a family of four at the poverty level has about $22,300 per year of pre-tax income. Consumption for that same family of four on average, however, is about $44,000 per year, which means that their consumption level is about twice as high as their income… We’re certainly providing many more resources to low-earning families today. But on the other hand, we have policies in place that either limit economic opportunities for low earners or distort the incentives for those earners to achieve prosperity.

I’ve been citing lots of articles, which might be tedious, so let’s take a break with a video about the welfare state from the American Enterprise Institute.

And if you like videos, here’s my favorite video about the adverse effects of the welfare state.

By the way, it isn’t just libertarians and conservatives who recognize the problem.

Coming from a left-of-center perspective, Catherine Rampell explains in the Washington Post how welfare programs discourage work:

…today’s social safety net discourages poor people from working, or at least from earning more money… you might qualify for some welfare programs, such as food stamps, housing vouchers, child-care subsidies and Medicaid. But if you get a promotion, or longer hours, or a second job, or otherwise start making more, these benefits will start to evaporate—and sometimes quite abruptly. You can think about this loss of benefits as a kind of extra tax on low-income people… Americans at or just above the poverty line typically face marginal tax rates of 34 percent. That is, for every additional dollar they earn, they keep only 66 cents… One in 10 families with earnings close to the poverty line faces a marginal tax rate of at least 65 percent, the CBO found… You don’t need to be a hardcore conservative to see how this system might make working longer hours, or getting a better job, less attractive than it might otherwise be.

To understand what this means, the Illinois Policy Institute calculated how poor people in the state are trapped in dependency:

The potential sum of welfare benefits can reach $47,894 annually for single-parent households and $41,237 for two-parent households. Welfare benefits will be available to some households earning as much as $74,880 annually… A single mom has the most resources available to her family when she works full time at a wage of $8.25 to $12 an hour. Disturbingly, taking a pay increase to $18 an hour can leave her with about one-third fewer total resources (net income and government benefits). In order to make work “pay” again, she would need an hourly wage of $38 to mitigate the impact of lost benefits and higher taxes.

Agreeing that there’s a problem does not imply agreement about a solution.

Folks on the left think the solution to high implicit tax rates (i.e., the dependency trap) is to make benefits more widely available. In other words, don’t reduce handouts as income increases.

The other alternative is to make benefits less generous, which will simultaneously reduce implicit tax rates and encourage more work.

I’m sympathetic to the latter approach, but my view is that welfare programs should be designed and financed by state and local governments. We’re far more likely to see innovation as policymakers in different areas experiment with the best ways of preventing serious deprivation while also encouraging self-sufficiency.

I think we’ll find out that benefits should be lower, but maybe we’ll learn in certain cases that benefits should be expanded. But we won’t learn anything so long as there is a one-size-fits-all approach from Washington.

Let’s close with a political observation. A columnist for the New York Times is frustrated that many low-income voters are supporting Republicans because they see how their neighbors are being harmed by dependency:

Parts of the country that depend on the safety-net programs supported by Democrats are increasingly voting for Republicans who favor shredding that net… The people in these communities who are voting Republican in larger proportions are those who are a notch or two up the economic ladder—the sheriff’s deputy, the teacher, the highway worker, the motel clerk, the gas station owner and the coal miner. And their growing allegiance to the Republicans is, in part, a reaction against what they perceive, among those below them on the economic ladder, as a growing dependency on the safety net, the most visible manifestation of downward mobility in their declining towns… I’ve heard variations on this theme all over the country: people railing against the guy across the street who is collecting disability payments but is well enough to go fishing, the families using their food assistance to indulge in steaks.

It’s not my role to pontificate about politics, so I won’t address that part of the column. But I will say that I’ve also found that hostility to welfare is strongest among those who have first-hand knowledge of how dependency hurts people.

P.S. If you want evidence for why Washington should get out of the business of income redistribution, check out this visual depiction of the welfare state:

P.S. The Canadians can teach us some good lessons about welfare reform.

P.P.S. The Nordic nations also provide valuable lessons, at least from the don’t-do-this perspective.

P.P.P.S. Last but not least, there’s a Laffer-type relationship between welfare spending and poverty.

This article was reprinted with permission from International Liberty.

COLUMN BY

Ron DeSantis Statement on James Madison Institute Study

Ron DeSantis released the following statement following the James Madison Institute’s “Election 2018: Platforms, Proposals, Projections” analysis of Florida Governor Candidates’ Economic Platforms:

“Today’s report from the James Madison Institute, a non-partisan, well-respected economic think-tank, proves what we’ve been saying all along—Andrew Gillum’s policies would be an economic disaster for every person in our state,” said Ron DeSantis. “Gillum’s proposals would cost Florida taxpayers $2.6 billion. Additionally, per the study, Florida would lose 150,000 jobs and $28 billion per year. My policies, on the other hand, would create over 200,000 jobs and add $25 billion in annual economic output. Floridians deserve a Governor who will work to ensure they get to keep more of their hard-earned money, create more jobs, and build on the economic success of our state, and that’s exactly what I will do as Governor.”

The James Madison Institute partnered with two of the nation’s leading and most widely respected econometric firms, The Washington Economics Group and Arduin, Laffer, and Moore, to produce this objective and non-partisan analysis of the economic platforms of each of the two major candidates vying to be Florida’s 44th Governor.

“Election 2018: Platforms, Proposals, Projections” dives into the central elements of each candidate’s economic agenda, analyzes the fiscal implications of major proposals, and projects the overall impacts from each on the economic climate of Florida.

EXECUTIVE SUMMARY

Florida faces a once-in-a-generation election in 2018. The confluence of term limits, macro-economic outlook, and the political environment have combined to place Florida as ground zero in the economic policy debate being waged nationwide.

The two candidates running for Governor of Florida could not have more diametrically opposed agendas.

In such a hyper-politicized atmosphere, it is imperative that Floridians become educated on the data and facts that will inform the choice they make on November 6.

Florida currently possesses the 17th largest economy on the planet – one trillion dollars of goods and services will be produced, distributed, and consumed in 2018. Our population has boomed over the past 20 years to more than 20 million residents – an increase of more than 1,000 every single day. Florida’s employment growth over the last two decades has been one of the strongest in the U.S., despite the 2007-2008 recession.

Florida’s economic policy agenda of low and stable taxes, combined with a pro-growth private sector oriented strategy, has led to a top business climate ranking among the 50 U.S. States. This has attracted, retained and expanded business activities, resulting in strong employment expansion among most industry sector categories.

The policy agendas of both principal candidates for governor are radically different, impacting economic activity and employment expansion. Every single sector of our economy will either reap the benefits or suffer the consequences of the decisions our elected leaders make.

Candidate Andrew Gillum’s policy agenda – to increase the corporate tax rate significantly, almost double the minimum wage, sharply expand government-controlled health insurance, and mandate a $50,000 starting salary for teachers – would adversely impact the business climate of the State through higher taxes, a sharply higher minimum wage and State mandates to expand government-controlled health insurance.

All told, the policy agenda Candidate Gillum proposes would require an increase in the corporate tax rate to the 2nd highest in the United States, an increase in Florida’s sales tax to 39 percent, or the imposition of a state income tax as high as 37 percent.

Consequently, the economic impacts of abandoning the current low tax/top business climate rankings of Florida, based on the experience of the higher tax states presented in this brief, would ultimately cost Florida direct employment losses of 155,000 jobs and $28.2 billion in economic losses per year.

Candidate Ron DeSantis agenda – to largely maintain the pro-growth-oriented strategy of Florida through low and stable taxes, would preserve and strengthen the state’s business climate, which supports the attraction, retention and expansion of employment-generating business enterprises. This agenda also includes investing in the “classroom” the savings from lower educational administration costs, and in technical/vocational programs to improve workforce development. Ultimately, this agenda would lead to the creation of 215,000 jobs annually and $26.6 billion in annual economic output.

Elections have consequences, and policy agendas have costs and benefits to them. Ultimately, it is up to Floridians to weigh the costs of each candidate’s agenda and determine what policies will bring about Florida’s more prosperous future.

On November 6, 2018 we will have our say. [Emphasis added]

To read the full report, CLICK HERE.