Ssshh! Nobody Tell the Government about UberEATS by Jared Meyer

UberEATS is delicious. You pull up the Uber app, choose among three to five menu options (usually between $8 and $12), and your meal is delivered within 10 minutes. Payment is through Uber, and there is no delivery fee. Service is rapidly expanding, and slow-to-catch-up regulators have yet to devise a way to stymie its growth.

In stark contrast to UberEATS and other on-demand food delivery services, burdensome restrictions on another way to get lunch — street vendors — are common across the nation.

Chicago does not allow food trucks to operate within 200 feet of any brick-and-mortar eatery. Miami only allows roaming vendors, as they are prohibited from staying in one place any longer than it takes to make a sale. Los Angeles completely bans sidewalk vending. New York City has an arbitrary cap of 3,100 on year-round food vendor permits, creating a costly secondary market that puts this line of work out of reach for average New Yorkers as the supply of city approvals fails to meet vendor demand.

Though street vending has always been a staple of American cities, its regulations are receiving more attention because the quality and number of food trucks has increased dramatically over the past few years. Even famed world traveler and chef Anthony Bourdain plans to open a market of 100 food vendors in New York City in 2017. To provide some data on this trend, a recent Institute for Justice report shows who street vendors are and how they contribute to the economy of the 50 largest U.S. cities.

The main reasons why city street vendors (78 percent of whom sell food) face opposition is that more dining options means increased competition for brick-and-mortar restaurants. Most office workers are accustomed to seeing long lines of people waiting to order at food trucks outside of their buildings. Indeed, 43 percent of street vendors operate in business districts, where other dining options are not as prevalent and are more expensive, due to high rental prices.

Some restaurant owners who choose to fight this change try to convince city government to place additional restrictions on street vendors. However, embracing mobile vending would be a smart move for restaurants who are struggling to stay competitive.

Not only do street vending and on-demand food services present opportunities for restaurants to reach more customers, they also provide ways to cut back on costs. Due to a combination of zoning laws, food service building requirements, limits on franchising, and labor regulations, brick-and-mortar restaurants face an uphill battle against their mobile, slim-staffed competitors.

Street vendors are not currently contractors for larger restaurants — 94 percent of vendors own their business and the structure they use to sell goods. Though most vendors do not have any employees, the 39 percent that do employ an average of 2.3 full-time workers and 2.7 part-time workers. This light staff lowers costs, especially when the venue is mobile and customers seem to be willing to spend half of their lunch breaks waiting in line.

Restrictions on vendors harm low-income individuals, both those who want to work and those who want to eat. The average year-round, full-time vendor earns just $18,000 a year working around 60 hours a week. Street vending also offers opportunities for modest earnings and upward mobility for those with low levels of education. Nearly 3 in 10 vendors do not have a high school degree (compared with 18 percent of all workers in large U.S. cities). In a time where the unemployment rate for those without a high school degree remains at 6.9 percent and labor force participation is just 45.7 percent, additional work options are sorely needed.

Veterans make up a disproportionate level of street vendors. Whereas veterans are 6 percent of the workforce in large U.S. cities, 10 percent of vendors are veterans. And a third of street vendor veterans are disabled — double the rate of non-vendor veterans.

In addition to employment opportunities, street vending offers a chance at upward mobility. District Taco in the Washington, D.C. Metro Area started as a simple $25,000 hot dog cart in 2009, but the business is in the process of opening its ninth brick-and-mortar restaurant. The chain, started by immigrant entrepreneur Osiris Hoil, now employs over 300 local workers.

One positive sign is that the licensing burden for street vendors does not seem to be too onerous. The Institute for Justice found that 72 percent of vendors were able to open by securing the appropriate permit. The other 28 percent needed to complete an average of 5 months of training to open their shops.

Even though there is some justification to require a course in sanitation for certain food vendors, it should be noted that an evaluation of 260,000 food safety inspection reports in seven cities found that food vendors did as well or better in terms of compliance than did brick-and-mortar restaurants. They certainly outperform Chipotle. In an age where it takes an average of 12 months to get government certification to trim trees, 14 months to be allowed to work as a door repair contractor, and 18 months to become a government-certified security alarm instructor, the requirements street vendors face seem to be lighter than the licensing burdens for other occupations.

As the IJ report concluded, “For cities looking to expand economic opportunities, facilitate job growth and realize greater tax revenue, welcoming street vendors is a low-cost and potentially high-reward option.”

Hungry consumers are fortunate that entrepreneurs are always able to find ways to outmaneuver regulators and provide lunch through innovations such as UberEATS.

This post first appeared at CapX.

Jared MeyerJared Meyer

Jared Meyer is a fellow at the Manhattan Institute for Policy Research.

What Are Your Odds of Making It to the 1%? by Chelsea German

Your odds of “making it to the top” might be better than you think, although it’s tough to stay on top once you get there.

According to research from Cornell University, over 50 percent of Americans find themselves among the top 10 percent of income-earners for at least one year during their working lives. Over 11 percent of Americans will be counted among the top 1 percent of income-earners (i.e., people making at minimum $332,000) for at least one year.

How is this possible? Simple: the rate of turnover in these groups is extremely high.

Just how high? Some 94 percent of Americans who reach “top 1 percent” income status will enjoy it for only a single year. Approximately 99 percent will lose their “top 1 percent” status within a decade.

Now consider the top 400 U.S. income-earners — a far more exclusive club than the top 1 percent. Between 1992 and 2013, 72 percent of the top 400 retained that title for no more than a year. Over 97 percent retained it for no more than a decade.

HumanProgress.org advisory board member Mark Perry put it well in his recent blog post on this subject:

Whenever we hear commentary about the top or bottom income quintiles, or the top or bottom X% of Americans by income (or the Top 400 taxpayers), a common assumption is that those are static, closed, private clubs with very little dynamic turnover. …

But economic reality is very different — people move up and down the income quintiles and percentile groups throughout their careers and lives.

What if we look at economic mobility in terms of accumulated wealth, instead of just annual income (as the latter tends to fluctuate more)?

The Forbes 400 lists the wealthiest Americans by total estimated net worth, regardless of their income during any given year. Over 71 percent of Forbes 400 listees — and their heirs — lost their top 400 status between 1982 and 2014.

So, the next time you find yourself discussing the very richest Americans, whether by wealth or income, keep in mind the extraordinarily high rate of turnover among them.

And even if you never become one of the 11.1 percent of Americans who fleetingly find themselves in the “top 1 percent” of US income-earners, you’re still quite possibly part of the global top 1 percent.

Cross-posted from HumanProgress.org.

Chelsea German

Chelsea German

Chelsea German works at the Cato Institute as a Researcher and Managing Editor of HumanProgress.org.

Is Political Uncertainty Driving America’s Stock Markets Down?

The Republican Dream Team of 2016CHICAGO, IL /PRNewswire/ — Since January 1, the political fortunes of Donald Trump and Bernie Sanders have soared, while U.S. investor sentiment has taken a sharp bearish turn, with the Dow and S&P each down more than 10 percent.

A December survey conducted by Spectrem Group with 500 prospective conservative and independent voters shows nearly one fifth (18%) cite the economy as their top issue for the 2016 Presidential election.

Cathy McBreen, Managing Director of Spectrem and co-author of a new book highlighting this research, said it’s possible that growing investor uncertainty about the U.S. political process may be affecting markets.  Could growing political uncertainty about the outcome of the 2016 Presidential election be a contributing factor in recent moves by investors to dump equities?

“Markets hate uncertainty, and investors are increasingly uncertain about who our next President will be,” said McBreen “Because there is a vast chasm between the proposals being put forth by the competing candidates, it is unclear to investors what the future direction of the U.S. economy and its financial markets will be.”

“It may be that once clear leaders emerge from the upcoming Iowa Caucuses and New Hampshire Primary that the investors will begin to have greater clarity about who will run in the fall election.  Until that time, we may continue to experience high market volatility,” said McBreen.

About the Book

The Republican Dream Team of 2016© www.republicandreamteamof2016.com) re-imagines the political process in a way that would enable conservative and moderate voters to rally behind a unified “Dream Team” to win the Presidency in 2016. The book draws on research to identify the issues most important to conservative and moderate voters.

About the Author

Catherine McBreen is the Managing Director of Spectrem Group, a market research firm that has traditionally focused on research with high net worth investors as well as consumers and investors of all types. Catherine has been a frequent commentator in the media, including in publications such as the Wall Street Journal, USAToday, Investment News, American Banker among others.  She has appeared on CNBC and Fox Business as well as in regional media.  Catherine has been a frequent speaker at industry conferences.  In 2007, she published her first book, Get Rich, Stay Rich, Pass It On, in conjunction with her business partner, George Walper, Jr.

Busting Myths about Income Inequality by Chelsea German

Politicians speak often about income inequality. But that doesn’t mean they are well-informed. Indeed, they propagate four myths about the issue.

  1. Most often, those vying for elected office describe income inequality as static — as though the people who make up each income group do not change.
    The “top 1 percent” or the “top 10 percent” of income-earners are portrayed as exclusive clubs that seldom accept new members or see old and current members leave. No fluidity, no change.
  2. Political figures also have a tendency only to blame income inequality on factors like trade, immigration, an insufficiently high minimum wage, inadequate taxes on the wealthy, or the vague concept of “greed.”
  3. They typically ignore the sizeable role of choices under an individual’s control.
  4. They downplay the role of regressive government regulations.

Reality is much more interesting than soundbites.

Americans often move between different income brackets over the course of their lives. Indeed, over 50 percent of Americans find themselves among the top 10 percent of income-earners for at least one year during their working lives, and over 11 percent of Americans will be counted among the top 1 percent of income-earners for at least one year.

Fortunately, a great deal of what explains this income mobility are choices that are largely within an individual’s control. While people tend to earn more in their “prime earning years” than in their youth or old age, other key factors that explain income differences are education level, marital status, and number of earners per household. As AEI’s Mark Perry recently wrote:

The good news is that the key demographic factors that explain differences in household income are not fixed over our lifetimes and are largely under our control (e.g. staying in school and graduating, getting and staying married, etc.), which means that individuals and households are not destined to remain in a single income quintile forever.

According to the U.S. economist Thomas Sowell, whom Perry cites, “Most working Americans, who were initially in the bottom 20 percent of income-earners, rise out of that bottom 20 percent. More of them end up in the top 20 percent than remain in the bottom 20 percent.”

While people move between income groups over their lifetime, many worry that income inequality between different income groups is increasing. The growing income inequality is real, but its causes are more complex than the demagogues make them out to be.

Consider, for example, the effect of “power couples,” or people with high levels of education marrying one another and forming dual-earner households. In a free society, people can marry whoever they want, even if it does contribute to widening income disparities.

Or consider the effects of regressive government regulations on exacerbating income inequality. These include barriers to entry that protect incumbent businesses and stifle competition. To name one extreme example, Louisiana recently required a government-issued license to become a florist. Lifting more of these regressive regulations would aid income mobility and help to reduce income inequality, while also furthering economic growth.

If our elections were more about the substance of serious public policy issues, rather than demagoguery and soundbites, achieving reasonable solutions could move from the land of make-believe to our complex, dynamic reality.

This article first appeared at CapX.

Chelsea GermanChelsea German

Chelsea German works at the Cato Institute as a Researcher and Managing Editor of HumanProgress.org.

Government Caused the ‘Great Stagnation’ by Peter J. Boettke

Tyler Cowen caused quite a stir with his e-book, The Great Stagnation. In properly assessing his work it is important to state explicitly what his argument actually is. Median real income has stagnated since 1980, and the reason is that the rate of technological advance has slowed. Moreover, the technological advances that have taken place with such rapidity in recent history have improved well-being, but not in ways that are easily measured in real income statistics.

Critics of Cowen more often than not miss the mark when they focus on the wild improvements in our real income due to quality improvements (e.g., cars that routinely go over 100,000 miles) and lower real prices (e.g., the amount of time required to acquire the inferior version of yesterday’s similar commodities).

Cowen does not deny this. Nor does Cowen deny that millions of people were made better off with the collapse of communism, the relative freeing of the economies in China and India, and the integration into the global economy of the peoples of Africa and Latin America. Readers of The Great Stagnation should be continually reminded that they are reading the author of In Praise of Commercial Culture and Creative Destruction. Cowen is a cultural optimist, a champion of the free trade in ideas, goods, services and all artifacts of mankind. But he is also an economic realist in the age of economic illusion.

What do I mean by the economics of illusion? Government policies since WWII have created an illusion that irresponsible fiscal policy, the manipulation of money and credit, and expansion of the regulation of the economy is consistent with rising standards of living. This was made possible because of the “low hanging” technological fruit that Cowen identifies as being plucked in the 19th and early 20th centuries in the US, and in spite of the policies government pursued.

An accumulated economic surplus was created by the age of innovation, which the age of economic illusion spent down. We are now coming to the end of that accumulated surplus and thus the full weight of government inefficiencies are starting to be felt throughout the economy. Our politicians promised too much, our government spends too much, in an apparent chase after the promises made, and our population has become too accustomed to both government guarantees and government largess.

Adam Smith long ago argued that the power of self-interest expressed in the market was so strong that it could overcome hundreds of impertinent restrictions that government puts in the way. But there is some tipping point at which that ability to overcome will be thwarted, and the power of the market will be overcome by the tyranny of politics. Milton Friedman used that language to talk about the 1970s; we would do well to resurrect that language to talk about today.

Cowen’s work is a subversive track in radical libertarianism because he identifies that government growth (both measured in terms of scale and scope) was possible only because of the rate of technological improvements made in the late 19th and early 20th century.

We realized the gains from trade (Smithian growth), we realized the gains from innovation (Schumpeterian growth), and we fought off (in the West, at least) totalitarian government (Stupidity). As long as Smithian growth and Schumpeterian growth outpace Stupidity, tomorrow’s trough will still be higher than today’s peak. It will appear that we can afford more Stupidity than we can actually can because the power of self-interest expressed through the market offsets its negative consequences.

But if and when Stupidity is allowed to outpace the Smithian gains from trade and the Schumpeterian gains from innovation, then we will first stagnate and then enter a period of economic backwardness — unless we curtail Stupidity, explore new trading opportunities, or discover new and better technologies.

In Cowen’s narrative, the rate of discovery had slowed, all the new trading opportunities had been exploited, and yet government continued to grow both in terms of scale and scope. And when he examines the 3 sectors in the US economy — government services, education, and health care — he finds little improvement since 1980 in the production and distribution of the services. In fact, there is evidence that performance has gotten worse over time, especially as government’s role in health care and education has expanded.

The Great Stagnation is a condemnation of government growth over the 20th century. It was made possible only by the amazing technological progress of the late 19th and early 20th century. But as the rate of technological innovation slowed, the costs of government growth became more evident. The problem, however, is that so many have gotten used to the economics of illusion that they cannot stand the reality staring them in the face.

This is where we stand in our current debt ceiling debate. Government is too big, too bloated. Washington faces a spending problem, not a revenue problem. But too many within the economy depend on the government transfers to live and to work. Yet the economy is not growing at a rate that can afford the illusion. Where are we to go from here?

Cowen’s work makes us think seriously about that question. How can the economic realist confront the economics of illusion? And Cowen has presented the basic dilemma in a way that the central message of economic realism is not only available for libertarians to see (if they would just look, or listen carefully to his podcast at EconTalk), but for anyone who is willing to read and think critically about our current political and economic situation.

The Great Stagnation signals the end of the economics of illusion and — let’s hope — paves the way for a new age of economic realism.

This post first appeared at Coordination Problem.

Peter J. BoettkePeter J. Boettke

Peter Boettke is a Professor of Economics and Philosophy at George Mason University and director of the F.A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics at the Mercatus Center. He is a member of the FEE Faculty Network.

RELATED ARTICLE: 5 Reasons Why America Is Headed to a Budget Crisis

‘Could this be the year Europe dies’ as economic conditions drive a billion Africans North?

Klaus Schwab the founder of the World Economic Forum convening in Davos, Switzerland this week has a very scary prediction for the future of Europe.

Learn more here at American Resistance 2016!

See our complete ‘Invasion of Europe’ archive by clicking here.

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World economy is stopped?

NFL Playoffs continue; Starbucks continue; the routine of life goes on, but beneath the surface of “normalcy” alarms are sounding.

For the first-time in known history, not one cargo ship is in transit in the North Atlantic between Europe and North America.  

Hundreds of ships are either anchored offshore or are in-port.  NOTHING is moving.  This is a quiet alarm that commerce, for all practical purposes, has stopped!  A close associate of seven years who resides overlooking the Bay of Panama (Pacific side) and with an unobstructed view of the entry locks to the canal writes: “Normally, as I look out of my home office windows, I see the skyscrapers of Costa del Este and to the left maybe 5-6 ships in the bay; in between the skyscrapers maybe 3 or more (another few are blocked by the buildings) and then to the right, several more ships; I am use to viewing 12 or more ships.

The ships have to wait in the bay as long as a day because they must take turns passing through the canal locks.  Today…only 3 ships.”  These two reports, no North Atlantic sea traffic, and no Europe to US West Coast traffic through the Panama Canal is a horrific economic sign that world-wide commerce has stopped.

5 Declaratory Signs – the U.S. and world economy are in trouble

1. U.S. RETAIL SALES COLLAPSE:

In post-industrial America, the economy depends on and is driven by consumerism, i.e., retail sales.

But those sales are tanking.

Bloomberg reports, Jan. 15, 2016, that after an anemic gain of 0.4% in November 2015, retail sales in December actually fell 0.1% — in spite of lower gas prices and the “holiday” Christmas buying frenzy on which retailers traditionally rely to lift them into the black.

For all of 2015, purchases climbed only 2.1%, making 2015 the weakest year since 2009, the trough of the Great Recession.

The retail sales collapse affects 6 of 13 major categories, including grocers (!) and the following:

  • 1% drop at general merchandise stores.
  • 1.1% drop in receipts at gasoline stations, from the drop in gas prices.
  • 0.9% drop in sales at clothing chains.
  • 0.2% drop in sales at electronics stores.

Analysts say the slowdown indicates Americans probably preferred to sock away the savings from cheaper fuel instead of splurging during the holiday season.

2. MOST AMERICANS HAVE LESS THAN $1,000 IN SAVINGS:

That is only sensible, given the fact that most Americans — a whopping 62% — have less than $1,000 in their savings accounts, and 21% don’t even have a savings account, according to a new survey of more than 5,000 adults conducted last month by Google Consumer Survey for personal finance website GOBankingRates.com.

That means many Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair. Faced with an emergency, they say they would raise the money by reducing spending elsewhere (26%), borrowing from family and/or friends (16%) or using credit cards (12%). (Read more here)

3. U.S. INDUSTRIAL PRODUCTION COLLAPSE:

It is not just retail sales that are tanking. U.S. industrial production plunged 1.8% year-over-year (2014 to 2015), which is the fastest pace of collapse since May 2008 when the Great Recession began. Historically, a 1.8% year-over-year decline in industrial production has never not produced a recession. (Source)

4. HUNDREDS OF WAL-MARTS TO BE CLOSED:

The collapse of retail sales is also seen in retail giant Wal-Mart‘s decision to close hundreds of stores.

The AP reports, Jan. 15, 2016, that with 11,000 stores worldwide and a global workforce of 2.2 million, the world’s biggest retailer Wal-Mart is closing 269 stores, more than half of them (154) will be in the U.S., including 102 smallest-format stores called Wal-Mart Express, which were opened as a test in 2011.

Altogether, 16,000 Wal-Mart “associates” will be laid off, 10,000 of whom in the United States.

The closures will begin at the end of this month, January.

Wal-Mart has 4,500 stores in the U.S., with 1.4 million employees. The stores being shuttered account for less than 1% of Wal-Mart’s global revenue.

More than 95% of the U.S. stores set to be closed are within 10 miles of another Wal-Mart. The Arkansas-based company said it is working to ensure that workers are placed in nearby locations.

The announcement comes three months after Wal-Mart Stores Inc. CEO Doug McMillon told investors that the world’s largest retailer would review its fleet of stores with the goal of becoming more nimble in the face of increased competition from all fronts, including from online rival Amazon.com. McMillon said in a statement: “Actively managing our portfolio of assets is essential to maintaining a healthy business. Closing stores is never an easy decision. But it is necessary to keep the company strong and positioned for the future.”

ZeroHedge points out that Wal-Mart’s troubles began when “the world’s largest retailer bowed to pressure to raise wages for its lowest-paid employees…. In short order, it became apparent that the reverberations from the $1.5 billion endeavor would spell trouble for the company.” When the retail giant’s efforts to squeeze the supply chain failed to plug the gap, the company resorted to store closures, job cuts and reduced hours.

5. GLOBAL ECONOMY IN TROUBLE:

Even more frightening are signs that the economic slump is not just in the U.S., it is worldwide, as indicated by continued collapse of the Baltic Dry Index, which shows the global economy seems to be grinding to a halt. (Source)

The Baltic Dry Index is an assessment of the price of moving major raw materials by sea. As such the Index is an indicator of global trade because raw materials and most manufactured goods are transported by sea. A steep and continuing drop in the Index means goods aren’t being hauled by ships because factories aren’t buying and retailers aren’t stocking.

SuperStation95 (95.1-FM, New York, NY) reports on Jan. 8, 2015, that the North Atlantic appeared empty of cargo ships in-transit. The ships instead were anchored along the North American and European coasts, with few or none moving.

SuperStation95 explains:

Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.

This has never happened before. It is a horrific economic sign; proof that commerce is literally stopped

The reason commerce has stopped is simple: People are not buying things.   When people do not buy things, retailers do not sell things, so they do not order more goods for stock.

When retailers do not order goods, manufacturers don’t make anything because there are no orders to fill.  When manufacturers do not make goods, they don’t order raw materials for manufacturing.

When there are no orders for raw materials, commodities sellers do not sell raw materials. When no raw materials are sold, there is no shipping by large cargo ships, (or railroads or tractor trailers) to move anything.

Put simply, the global economy is LITERALLY stopping.  Right now.  Today.

A snapshot taken by MarineTraffic.com and posted by ZeroHedge seemed to show a dearth of cargo ships in transit across the world.

Sorry for the bad news, folks, but it looks like we are heading toward very rough waters.

EDITORS NOTE: In the future when a report surfaces that world maritime shipping has stopped or decreased mentioned is a resource CLICK HERE to check on the veracity of the report. After navigating this site you will learn presently there are thousands of ships on the move. This resource even locates ships that are currently in the Panama Canal. To use this tool, simply bring up the map and use the sizing buttons at the right to zoom in or out, then manipulate the little hand by depressing the left side of your mouse to move to any place on the globe. It is best to reduce the size at first to see as much territory as possible and then zoom in on the region you choose. As stated…there are currently thousands of ships moving.

VIDEO: 93% of U.S. Counties still in a Recession

Eric Norath from the Wall Street Journal reports:

More than six years after the economic expansion began, 93% of counties in the U.S. have failed to fully recover from the blow they suffered during the recession.

Nationwide, 214 counties, or 7% of 3,069, had recovered last year to prerecession levels on four indicators: total employment, the unemployment rate, size of the economy and home values, a study from the National Association of Counties released Tuesday found.

National Association of Counties (NACo)  in a 2015 study reports:

County economies are the building blocks of regional economies, states and the nation. The conditions of a county economy can constrain and challenge county governments, residents and businesses, while also providing opportunities. This analysis tracks the performance of the 3,069 county economies in 2015 by examining annual changes in jobs, unemployment rate, economic output (GDP) and median home prices. It also explores wage dynamics in 2014 and between 2009 and 2014.

Watch the County Economies 2015 Report – Interview with Dr. Istrate:

To read the full study click here.

The following counties have returned to prerecession levels of total employment, the unemployment rate, size of the economy and home values by the end of 2015:

  • Anchorage Borough, Alaska
  • Fairbanks North Star Borough, Alaska
  • Kodiak Island Borough, Alaska
  • Marin County, Calif.
  • San Francisco County, Calif.
  • San Mateo County, Calif.
  • Santa Clara County, Calif.
  • Denver County, Colo.
  • Dolores County, Colo.
  • Minidoka County, Idaho
  • Clark County, Ind.
  • Elkhart County, Ind.
  • Gibson County, Ind.
  • LaGrange County, Ind.
  • Marshall County, Ind.
  • Steuben County, Ind.
  • Vanderburgh County, Ind.
  • Adams County, Iowa
  • Clayton County, Iowa
  • Dubuque County, Iowa
  • Jefferson County, Iowa
  • Johnson County, Iowa
  • O’Brien County, Iowa
  • Plymouth County, Iowa
  • Story County, Iowa
  • Douglas County, Kan.
  • Ellis County, Kan.
  • Greeley County, Kan.
  • Hamilton County, Kan.
  • Haskell County, Kan.
  • Hodgeman County, Kan.
  • Johnson County, Kan.
  • Leavenworth County, Kan.
  • Miami County, Kan.
  • Mitchell County, Kan.
  • Norton County, Kan.
  • Rawlins County, Kan.
  • Rush County, Kan.
  • Russell County, Kan.
  • Stevens County, Kan.
  • Wyandotte County, Kan.
  • Bullitt County, Ky.
  • Calloway County, Ky.
  • Campbell County, Ky.
  • Jefferson County, Ky.
  • Madison County, Ky.
  • Marshall County, Ky.
  • Nelson County, Ky.
  • Oldham County, Ky.
  • Scott County, Ky.
  • Shelby County, Ky.
  • Washington County, Ky.
  • Barry County, Mich.
  • Kent County, Mich.
  • Ottawa County, Mich.
  • Blue Earth County, Minn.
  • Carlton County, Minn.
  • Clay County, Minn.
  • Le Sueur County, Minn.
  • Marshall County, Minn.
  • Nicollet County, Minn.
  • Olmsted County, Minn.
  • Pennington County, Minn.
  • Polk County, Minn.
  • Rock County, Minn.
  • Benton County, Miss.
  • Union County, Miss.
  • Custer County, Mont.
  • Dawson County, Mont.
  • Deer Lodge County, Mont.
  • Fallon County, Mont.
  • McCone County, Mont.
  • Meagher County, Mont.
  • Musselshell County, Mont.
  • Powder River County, Mont.
  • Powell County, Mont.
  • Richland County, Mont.
  • Roosevelt County, Mont.
  • Sheridan County, Mont.
  • Valley County, Mont.
  • Box Butte County, Neb.
  • Chase County, Neb.
  • Cheyenne County, Neb.
  • Clay County, Neb.
  • Dawson County, Neb.
  • Douglas County, Neb.
  • Dundy County, Neb.
  • Furnas County, Neb.
  • Garden County, Neb.
  • Garfield County, Neb.
  • Gosper County, Neb.
  • Hayes County, Neb.
  • Keya Paha County, Neb.
  • Kimball County, Neb.
  • Lancaster County, Neb.
  • Loup County, Neb.
  • Perkins County, Neb.
  • Red Willow County, Neb.
  • Sarpy County, Neb.
  • Saunders County, Neb.
  • Thurston County, Neb.
  • Wayne County, Neb.
  • Anson County, N.C.
  • Bowman County, N.D.
  • Burleigh County, N.D.
  • Cass County, N.D.
  • Divide County, N.D.
  • Dunn County, N.D.
  • McKenzie County, N.D.
  • Mountrail County, N.D.
  • Sioux County, N.D.
  • Stark County, N.D.
  • Traill County, N.D.
  • Ward County, N.D.
  • Williams County, N.D.
  • Delaware County, Ohio
  • Fairfield County, Ohio
  • Franklin County, Ohio
  • Greene County, Ohio
  • Knox County, Ohio
  • Licking County, Ohio
  • Madison County, Ohio
  • Putnam County, Ohio
  • Union County, Ohio
  • Alfalfa County, Okla.
  • Canadian County, Okla.
  • Grady County, Okla.
  • McClain County, Okla.
  • Woods County, Okla.
  • Chesterfield County, S.C.
  • Oconee County, S.C.
  • Aurora County, S.D.
  • Anderson County, Texas
  • Andrews County, Texas
  • Atascosa County, Texas
  • Bastrop County, Texas
  • Bexar County, Texas
  • Blanco County, Texas
  • Brazos County, Texas
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  • Collin County, Texas
  • Comal County, Texas
  • Crane County, Texas
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  • Dallas County, Texas
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  • Guadalupe County, Texas
  • Hansford County, Texas
  • Hartley County, Texas
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  • Hockley County, Texas
  • Houston County, Texas
  • Hunt County, Texas
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  • Johnson County, Texas
  • Karnes County, Texas
  • Kaufman County, Texas
  • Kendall County, Texas
  • Kenedy County, Texas
  • Kent County, Texas
  • La Salle County, Texas
  • Live Oak County, Texas
  • Lubbock County, Texas
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  • McLennan County, Texas
  • McMullen County, Texas
  • Maverick County, Texas
  • Medina County, Texas
  • Navarro County, Texas
  • Parker County, Texas
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  • Rockwall County, Texas
  • San Jacinto County, Texas
  • Schleicher County, Texas
  • Scurry County, Texas
  • Shackelford County, Texas
  • Tarrant County, Texas
  • Terrell County, Texas
  • Travis County, Texas
  • Upton County, Texas
  • Ward County, Texas
  • Webb County, Texas
  • Wharton County, Texas
  • Williamson County, Texas
  • Wilson County, Texas
  • Wise County, Texas
  • Yoakum County, Texas
  • Zapata County, Texas
  • Chittenden County, Vt.
  • Franklin County, Vt.
  • Lincoln County, Wash.
  • Calumet County, Wisc.
  • Dane County, Wisc.
  • Eau Claire County, Wisc.
  • Green County, Wisc.
  • Lafayette County, Wisc.
  • Outagamie County, Wisc.
  • Trempealeau County, Wisc.

RELATED ARTICLE: Six Years Later, 93% of U.S. Counties Haven’t Recovered From Recession, Study Finds

The Minimum Wage Hurt the Young and Low-Skilled almost as Much as the Recession by Preston Cooper

Hiking the minimum wage killed almost as many low-end jobs as did the economic collapse.

This is University of California-San Diego Professor Jeffrey Clemens’ conclusion from his just published supplement to his landmark 2014 study. He says that federal minimum wage hikes from 2006 to 2009 accounted for 43 percent of the decline in employment among young, low-skilled workers during the Great Recession.

Young, low-skilled workers — defined as individuals between 16 and 30 without a high school degree — are the most likely to be hurt by minimum wage hikes because they are the least likely to have skills that employers consider valuable. Businesses might be willing to take on these individuals at low wages in order to train them before moving them up to higher-paying work. But when the government sets a high minimum wage, that first step on the career path might disappear.

Clemens’ new study confirms this longstanding theory. Young, low-skilled workers were hit hard by the minimum wage, while most other groups were relatively unaffected.

Several strengths set the Clemens study and its predecessor (coauthored by Michael Wither) apart from a large body of research on the minimum wage. Not least among them is its time frame. The paper covers a seven-year period from 2006 to 2012, unlike other studies such as the oft-cited 1994 paper by David Card and Alan Krueger. That paper, which found no negative effect of the minimum wage, only looked at a period of eleven months.

The time frame is critical because the damaging effects of minimum wage increases are often delayed. Immediately after a wage hike, businesses usually do not wish to significantly alter their business plans. Instead of laying off workers, they might raise prices or cut back on fringe benefits. But after one or two years, fewer businesses will open, existing businesses will close faster, and fewer jobs will be available.

Clemens’ study is unique in that it separates out workers by both age and skill level, to isolate where the worst effects of the minimum wage occur. The finding that young people without a high school degree are hurt the most does not bode well for minority communities: high school graduation rates are lower for black (68 percent) and Hispanic (76 percent) students than for white (85 percent) and Asian (93 percent) students. This may be one of the reasons that the white teen unemployment rate, at 14 percent, is so much lower than the black teen unemployment rate of 24 percent.

Rather than proposing blanket increases in the minimum wage to $10 or even $15 per hour, policymakers should look for ways to ensure that vulnerable individuals are spared. One solution is to allow anyone under 25 to work for a special sub-minimum wage, thus increasing their employment opportunities while still satisfying the political need to maintain higher standard minimum wages.

The new evidence presented in Clemens’ paper is an important reminder that well-intentioned policies such as the minimum wage have costs. The minimum wage tends to benefit older, established workers at the expense of the young and the unskilled. As we move into 2016, policymakers should resolve to find more innovative solutions to poverty than the minimum wage.

This post originally appeared at CapX.

Preston CooperPreston Cooper

Preston Cooper is a Policy Analyst at Economics21.

What Can the Rich Afford that Average Americans Can’t? by Donald J. Boudreaux

Raffi Melkonian asks — as relayed by my colleague Tyler Cowen — “When can median income consumers afford the very best?”

Tyler offers a list of some of the items in the modern, market-oriented world that are as high-quality as such items get and yet are easily affordable to ordinary people. This list includes iPhones, books, and rutabagas. Indeed, this list includes nearly all foods for use in preparing home snacks and meals. I doubt very much that Bill Gates and Larry Ellison munch at home on foods — such as carrots, blueberries, peanuts, and scrambled eggs — that an ordinary American cannot easily afford to enjoy at home.

This list includes also non-prescription pain relievers, most other first-aid medicines and devices such as Band-Aids, and personal-hygiene products such as toothpaste, dental floss, and toilet paper. (I once saw a billionaire take two Bayer aspirin — the identical pain reliever that I use.) This list includes also gasoline and diesel. Probably also contact lenses.

A slightly different list can be drawn up in response to this question: When can median-income consumers afford products that, while not as high-quality as those versions that are bought by the super-rich, are nevertheless virtually indistinguishable — because they are quite close in quality — to the naked eye from those versions bought by the super-rich?

On this list would be most clothing. For example, an ordinary American man can today afford a suit that, while it’s neither tailor-made nor of a fabric as fine as are suits that I suspect are worn by most billionaires, is nevertheless close enough in fit and fabric quality to be indistinguishable by the naked eye from expensive suits worn by billionaires. (I suspect that the same is true for women’s clothing, but I’m less expert on that topic.)

Ditto for shoes, underwear, haircuts, corrective eye-wear, collars for dogs and cats, pet food, household bath towels and “linens,” tableware and cutlery, automobile tires, hand tools, most household furniture, and wristwatches.

(You’d have to get physically very close to someone wearing a Patek Philippe — and you’d have to know what a Patek Philippe is — in order to determine that that person’s wristwatch is one that you, an ordinary American, can’t afford. And you could stare at that Patek Philippe for months without detecting any superiority that it might have over your quartz-powered Timex at keeping time.)

Coffee. Tea. Beer. Wine. (There is available today a large selection of very good wines at affordable prices. These wines almost never rise to the quality of Chateau Petrus, d’yquem, or the best Montrachets, but the differences are often quite small and barely distinguishable save by true connoisseurs.)

Indeed, the more one ponders this question relayed by Tyler, the more one suspects that the shorter list would be one drawn up in response to this question: When can high-income consumers afford what median-income consumers cannot?

Such a list, of course, would be far from empty. It would include private air travel, beachfront homes, regular vacations in Tahiti and Davos, private suites at sports arenas, luxury automobiles, rooms at the Ritz, original Picassos and Warhols. (It would, by the way, include also invitations to White House dinners and private lunches with rent-creating senators, governors, and mayors.)

But I’ll bet that this latter list would be shorter than one made up in response to the question relayed by Tyler combined with one drawn up in response to the question that I pose above in the third paragraph (call this list “the combined list”).

And whether shorter or not, what other germane characteristics might distinguish the items on this last list from the combined list?

A version of this post first appeared at Cafe Hayek.

Donald J. BoudreauxDonald J. Boudreaux

Donald Boudreaux is asenior fellow with the F.A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics at the Mercatus Center at George Mason University, a Mercatus Center Board Member, a professor of economics and former economics-department chair at George Mason University and, a former FEE president.

Brazil Is the New Greece by Tyler Cowen

At 70% of GDP, public debt is worryingly large for a middle-income country and rising fast. Because of high interest rates, the cost of servicing it is a crushing 7% of GDP. The Central Bank cannot easily use monetary policy to fight inflation, currently 10.5%, as higher rates risk destabilising the public finances even more by adding to the interest bill. Brazil therefore has little choice but to raise taxes and cut spending.

Too often, at the popular level, there is a confusion between “austerity is bad” and “the consequences of running out of money are bad.”

Sophisticated analysts of fiscal policy do not make this mistake.

By the way, here is a long study of how Brazilian fiscal policy has been excessively pro-cyclical.

And how is Brazilian output doing you may wonder?

By the end of 2016 Brazil’s economy may be 8% smaller than it was in the first quarter of 2014, when it last saw growth; GDP per person could be down by a fifth since its peak in 2010, which is not as bad as the situation in Greece, but not far off.

Two ratings agencies have demoted Brazilian debt to junk status. Joaquim Levy, who was appointed as finance minister last January with a mandate to cut the deficit, quit in December.

Any country where it is hard to tell the difference between the inflation rate — which has edged into double digits — and the president’s approval rating — currently 12%, having dipped into single figures — has serious problems.

Don’t forget this:

Since the constitution’s enactment, federal outlays have nearly doubled to 18% of GDP; total public spending is over 40%. Some 90% of the federal budget is ring-fenced either by the constitution or by legislation.

Constitutionally protected pensions alone now swallow 11.6% of GDP, a higher proportion than in Japan, whose citizens are a great deal older. By 2014 the government was running a primary deficit (ie, before interest payments) of 32.5 billion reais ($13.9 billion).

Brazilian commodity prices have fallen 41% since their 2011 peak, so I say Ed Prescott has earned his Nobel Prize right there.

The first underlying article/op-ed also is from the Economist. Without intending any slight to their other recent issues, the January 2-8 issue is one of their best in a long time. (I am very pleased to have bought it in advance at the airport rather than waiting to get to my copy back at home.)

This post first appeared at Marginal Revolution.

Tyler CowenTyler Cowen

Tyler Cowen is an American economist, academic, and writer. He occupies the Holbert C. Harris Chair of economics, as a professor at George Mason University, and is co-author, with Alex Tabborak, of the popular economics blog Marginal Revolution.

The Future of Travel Is Cheaper, Faster, Safer, and Autonomous by Ryan Hagemann

In a classic op-ed, “Why Software Is Eating the World,” Marc Andreessen argued “that we are in the middle of a dramatic and broad technological and economic shift in which software companies are poised to take over large swathes of the economy.”

From service and retail to manufacturing and the public sector, innovation in software has become a powerful source of increased productivity, efficiency, and economic growth. Many industries have been disrupted — and in some cases upended entirely — as a result of this software revolution. The transportation industry is on the verge of a massive software-driven market disruption, setting the stage for a significant change in the way we work and the way we think about travel, city design, and transportation more broadly.

Take driverless cars. This technology holds the potential to significantly drive down a variety of costs associated with human-operated vehicles. The most striking is the human toll: nearly 100 Americans die every day as a result of human error on the roadways. Automated cars could reduce this number by significant orders of magnitude.

But the benefits don’t stop there. As Adam Thierer and I noted in a research paper last year, the rise of automated vehicles on American roadways could ultimately cause 90 percent of the cost of insurance premiums to vanish, prevent over 4 million car crashes annually, and save more than $350 billion every year.

Despite the regulatory hurdles standing in the way of their widespread adoption, the arrival of autonomous vehicles on our roads is not a question ofif but when. As driverless cars become more cost-effective and socially accepted, the transportation sector will undergo dramatic changes. Over time, it may become cheaper and more convenient to simply hire the services of circulating robot cars than to own, insure, store, and maintain personal fleets. The days when owning a car is the norm are likely coming to an end, for better or worse.

But autonomous vehicles are just one example of transformative innovation in transportation technology.

Electric cars are beginning to find their stride in the market. It’s not clear, at this point, whether they’re really more efficient or eco-friendly than gas-powered cars, but Tesla Motors has shown that people will buy electric cars. Elon Musk has combined savvy reliance on government subsidies and municipal tax breaks with high-quality design and manufacturing, leaving Tesla Motors well-positioned to become a market leader in electric vehicles. The primary consideration when assessing the prospects electric cars is not the current or potential future valuation of Tesla Motors, or other electric car manufacturers, but the price and efficiency of the battery storage technology.

Currently, Tesla motors is estimated to have the lowest per-kWh (kilowatt-hour) price for lithium ion batteries (Li-ion), which is estimated to be about $200 per-kWh. As recently as May 2013 McKinsey Global Institute report examined the future of Li-ion energy storage. It predicted that once per-kWh prices fell to approximately $160, plug-in hybrids and electric vehicles could finally be cost competitive with traditional internal combustion engine vehicles.

However, McKinsey argued that the $160 price point wasn’t likely to be achieved until 2025. Given how low Tesla Motors’ current per-kWh price point is already, that cost-competitive price could very well be achieved sometime in 2016-2017–almost ten years ahead of predictions.

So autonomous cars are heading our way and battery storage technology is making electric vehicles competitive on the market. But the disruptions don’t stop there. Musk is leading the pack in the electric car market, but he also has a grandiose mass transportation project in the works: the Hyperloop.

The Hyperloop was first announced back in 2013, and was touted by Musk as the future of cross-continental and inter-city transportation. The idea is to use electromagnetic propulsion in a closed tube to accelerate pods at speeds in excess of 700 miles per hour. To put that into context, an average commercial airliner travels at speeds up to 500 miles per hour. Musk’s open source design proposal was floated as a challenge to engineers, largely in response to what he viewed as an outdated, disruption-prone, and costly American rail system.

Many companies are now proposing designs for an upcoming prototype test in January. Bibop Gabriele Gresta, Chief Operating Officer of Hyperloop Transportation Technologies, hopes that the project will not only consume less electricity than it produces, allowing for the resale of the excess energy, but will allow the company to recoup its $100-150 million investment within a decade. Now one knows if this untested technology will pan out, but it’s possible that we are about to witness the dawn of the age of the hyperloop.

Looking even further ahead, drones could alter the way we think of inter- and intra-city transportation. It may not be that far-fetched to imagine advances in drone technology that take advantage of underutilized, low altitude airspace in new ways. Drone delivery is exciting, but consider the possibilities of the drone as a low-cost, efficient, and speedy form of transportation.

Advances in battery life, autonomous flight software, and sensor suite technologies could lead to orderly flows of traffic along “highways” in the skies above cities. The energy costs associated with such systems are currently prohibitively expensive. But as energy storage costs continue to decline, and as drone technology continues to develop, we could very well one day find ourselves in a world where regular people commute through the air.

Whether the future of transportation is autonomous, electric, looped, airborne, or some combination of all these is uncertain. What is certain, however, is that whatever form the future of transportation takes, it’s likely to be of immeasurable benefit to ordinary people. To paraphrase Andreessen’s sentiments, the future can’t come soon enough.

This post originally appeared at CapX.

Ryan HagemannRyan Hagemann

Ryan Hagemann is a civil liberties policy analyst at the Niskanen Center.

The Barbarianism of Paternalism by Aaron Ross Powell

Lots of people do lots of things I wish they wouldn’t. And lots of people don’t do lots of things I wish they would. In fact, I’m rather certain the world would be a better place for me and people just like me if more people were willing to go along with my desires and tastes, instead of stubbornly pursuing their own thing.

Take drinking tons of soda. For the life of me, I can’t figure out why people consider sugar water a multiple-times-a-day beverage. It’s like wanting to pour chocolate sauce on everything, or eat brownies with every meal. In short, to my sensibilities, it’s gross. And it’s way less healthy than drinking water — which tastes a whole lot better, too.

Part of being civilized — arguably most of being civilized — is recognizing that different people do things differently and that such differences deserve respect. Respecting difference means allowing behaviors we find disagreeable, provided those behaviors don’t cause us harm. This covers big stuff like religious toleration — those people of other faiths sure do eat weird things and have a funny way of talking, but that’s their business — to, yes, even the dreadful behavior of drinking half-a-dozen Cokes a day.

Of course, civilized people aren’t prevented from making their opinions known. I just did, with my quips about soda, and if I happen to see you drinking one, I’m free to tell you what I think. (Though I risk coming across as an officious jerk if I’m not careful.) What civilized people don’t do is hit each other with clubs over such differences.

That’s why the paternalism Sarah Conly offers three cheers for in the pages of the New York Times amounts to a rah-rah for barbarism. Conly, an assistant professor of philosophy at Bowdoin College and author of Against Autonomy: Justifying Coercive Paternalism, wants those upstanding chaps of the NYPD to flex their might to stop Americans from getting so fat.

To support her preference for state interference, Conly turns to the great classical liberal John Stuart Mill.

In his great work, On Liberty, Mill advances the “harm principle” as a crucial limit on the authority of the state:

The only purpose for which power can be rightfully exercised over any member of a civilised community, against his will, is to prevent harm to others. His own good, either physical or moral, is not a sufficient warrant. He cannot rightfully be compelled to do or forbear because it will be better for him to do so, because it will make him happier, because, in the opinions of others, to do so would be wise, or even right.

Which sounds pretty bad for the soda ban. But not so fast, Conly says. She tells us Mill endorsed preventing our freely chosen actions “when we are acting out of ignorance and doing something we’ll pretty definitely regret. You can stop someone from crossing a bridge that is broken, he said, because you can be sure no one wants to plummet into the river.”

From that, she gets to the idea that, because people underestimate the dangers of drinking lots of soda, they’re (often/usually) acting out of ignorance when they drink it, and so we’re justified in at the very least making it much more difficult for them to consume the stuff in bulk.

But read the full passage from Mill:

If either a public officer or any one else saw a person attempting to cross a bridge which had been ascertained to be unsafe, and there were no time to warn him of his danger, they might seize him and turn him back, without any real infringement of his liberty; for liberty consists in doing what one desires, and he does not desire to fall into the river.

Nevertheless, when there is not a certainty, but only a danger of mischief, no one but the person himself can judge of the sufficiency of the motive which may prompt him to incur the risk: in this case, therefore (unless he is a child, or delirious, or in some state of excitement or absorption incompatible with the full use of the reflecting faculty), he ought, I conceive, to be only warned of the danger; not forcibly prevented from exposing himself to it.

It seems Conly left out the bit about such interference requiring first “no time to warn him of his danger.” Nor does she seem at all bothered by the important limit that, “when there is not a certainty, but only a danger of mischief, no one but the person himself can judge of the sufficiency of the motive which may prompt him to incur the risk.”

Even accounting for the cognitive biases — which Conly says, if only he’d known about them, would’ve led Mill to support soda nannyism — it’s difficult to square the harm caused by a large Coke with the imminent danger and certainty of effect needed to override the harm principle.

In fact, a great deal of On Liberty seems perfectly aimed at exposing the immorality of Conly’s paternalism. She should’ve read not only the rest of that passage, but also the rest of On Liberty. Mill warns of an increasing inclination to stretch unduly the powers of society over the individual, both by the force of opinion and even by that of legislation: and as the tendency of all the changes taking place in the world is to strengthen society, and diminish the power of the individual, this encroachment is not one of the evils which tend spontaneously to disappear, but, on the contrary, to grow more and more formidable.

The disposition of mankind, whether as rulers or as fellow-citizens to impose their own opinions and inclinations as a rule of conduct on others, is so energetically supported by some of the best and by some of the worst feelings incident to human nature, that it is hardly ever kept under restraint by anything but want of power; and as the power is not declining, but growing, unless a strong barrier of moral conviction can be raised against the mischief, we must expect, in the present circumstances of the world, to see it increase.

This “mischief” results from that urge to have others prefer the same thing we prefer, to have others behave the way we behave. But, like I said above and like Conly seems to forget, civilization means recognizing the primacy of individual choice, even choices we think silly.

There is no reason that all human existences should be constructed on some one, or some small number of patterns. If a person possesses any tolerable amount of common-sense and experience, his own mode of laying out his existence is the best, not because it is the best in itself, but because it is his own mode.

Human beings are not like sheep; and even sheep are not undistinguishably alike. A man cannot get a coat or a pair of boots to fit him, unless they are either made to his measure, or he has a whole warehouseful to choose from: and is it easier to fit him with a life than with a coat, or are human beings more like one another in their whole physical and spiritual conformation than in the shape of their feet?

If it were only that people have diversities of taste, that is reason enough for not attempting to shape them all after one model. But different persons also require different conditions for their spiritual development; and can no more exist healthily in the same moral, than all the variety of plants can in the same physical, atmosphere and climate.

The same things which are helps to one person towards the cultivation of his higher nature, are hindrances to another. The same mode of life is a healthy excitement to one, keeping all his faculties of action and enjoyment in their best order, while to another it is a distracting burthen, which suspends or crushes all internal life.

Such are the differences among human beings in their sources of pleasure, their susceptibilities of pain, and the operation on them of different physical and moral agencies, that unless there is a corresponding diversity in their modes of life, they neither obtain their fair share of happiness, nor grow up to the mental, moral, and aesthetic stature of which their nature is capable.

Is drinking large sodas a way of life, though? Conly mocks the idea: “Large cups of soda as symbols of human dignity? Really?” But consider that if you drink 32 ounces of Coca-Cola, you’ll rack up 388 calories. A 20-ounce Iced White Chocolate Mocha from Starbucks has 500. Both aren’t good for you, but the Mocha’s worse. The difference is that the kinds of people who want to use government to save ignorant Americans from the harms of soft drinks are the kinds of people who prefer an Iced White Chocolate Mocha to a Coca-Cola.

That Conly calls for a ban on Cokes and not Mochas indicates that what really bothers her is the behavior of those low-brow folks who slam giant soft drinks, but not so much the worse behavior of the middle-class and educated who just can’t start the day without a latte. About this tendency to use ourselves as the moral yardstick, Mill noted, “our idea of improvement chiefly consists in persuading or forcing other people to be as good as ourselves.”

So the real trouble is people aren’t acting like Conly — or the majority Conly imagines agrees with her — would like them to. Thus it’s time to call in the law. To which Mill says this:

A theory of “social rights,” the like of which probably never before found its way into distinct language — being nothing short of this — that it is the absolute social right of every individual, that every other individual shall act in every respect exactly as he ought; that whosoever fails thereof in the smallest particular, violates my social right, and entitles me to demand from the legislature the removal of the grievance.

So monstrous a principle is far more dangerous than any single interference with liberty; there is no violation of liberty which it would not justify; it acknowledges no right to any freedom whatever, except perhaps to that of holding opinions in secret, without ever disclosing them: for the moment an opinion which I consider noxious, passes any one’s lips, it invades all the “social rights” attributed to me by the Alliance.

The doctrine ascribes to all mankind a vested interest in each other’s moral, intellectual, and even physical perfection, to be defined by each claimant according to his own standard.

To which Conly likely offers another three cheers. Especially when the individual rights she wants violated in the name of social rights are so, well,dumb. “As irritating as it may initially feel, the soda regulation is a good idea,” she writes. “It’s hard to give up the idea of ourselves as completely rational. We feel as if we lose some dignity. But that’s the way it is, and there’s no dignity in clinging to an illusion.”

Writing in The Subjection of Women — regarding a different group then burdened with the charge of irrationality — Mill had this to say about a Conly-style disregard for personal choice: “The yoke is naturally and necessarily humiliating to all persons, except the one who is on the throne, together with, at most, the one who expects to succeed to it.”

Conly may cheer the power of the throne, but the civilized among us should not.

This essay first appeared at Libertarianism.org.

Aaron Ross PowellAaron Ross Powell

Aaron Ross Powell is a research fellow and editor of Libertarianism.org.

‘Le Grand Guignol’ Comes to Town – Political Corruption

By Wallace Bruschweiler and William Palumbo

Grand_Guignol_poster

Promotional poster for a Grand Guignol performance. Courtesy of Wikipedia.com.

Over the last several years, the American people have witnessed one perplexing political shenanigan after another – a never-ending story.  Instead of standing up for principles, for democracy itself, our elected leaders routinely sell-out the same country to which they swore an oath to protect.

The most recent enormous sell-out was the passage of a budget that served only the government, not the country.  It began with the election of a new Speaker, whom many hoped would serve the country better than his predecessor.  Instead of a political savior, we got yet another total political loser.

Once in power, the Speaker raised the curtain on a most appalling political horror, a true grand guignol: a budget that funds a government which is already standing on financial quicksand, and that has an abysmal, out-proportion debt.  So much for “we won’t get fooled again.”

Indeed, many of the men and women whom we once considered true patriots have, in recent years, months, and weeks, shown that their own personal agenda and banks accounts take priority over the safeguarding and destiny of our nation.  Their treachery – their betrayal­ – of the American people is forcing a major geopolitical realignment.  Under rule of the current political establishment, the United States is a leading contender in whatever Oscar equivalent is awarded to banana republics.

How and why did all this happen?  Without access to personal records, such as bank accounts domestically and on an international level, including tax shelters, it is impossible to say with certainty.  But, if past is prologue, then bribery facilitated by a government-entrenched mafia is what greases this political machinery.

Welcome to Our Real World: Today’s Ugly Reality

It is not pleasant at all to think that a mafia-type government runs Washington, D.C.   Yet it exactly explains why, despite widespread disapproval of Barack Hussein Obama and Congress, both parties continue working shamelessly against the interests and well-being of the American electorate.

Take, for example, the so-called Iranian nuclear deal.  By legitimizing Iran, the world’s preeminent sponsor of terrorism, Obama has opened the Iranian markets (especially oil and natural gas) to the western world.  In the long run, this deal has the potential to generate trillions of dollars in international trade.  Companies represented by extremely well-financed and influential lobbyists see Iran as the mother-of-all potential markets.

Despite the overwhelming dangers that emanate from enriching a brutal regime with not-so-veiled nuclear ambitions and a proven worldwide terrorist network, the Republican-led Congress refused to try anything which would have effectively postponed and/or killed the deal.

Again, how and why could this have happened?  The answer is unfortunately obvious: money (and, in the case of the Iranian nuclear deal, close family connections between the negotiating members from both sides).

There are other examples that come to mind: a multi-trillion dollar “stimulus” package, a $700 billion dollar bank bailout, countless “green” energy loans that have ended in bankruptcy, etc.

How likely is it that some of this money has been used to line pockets for political favors on both sides of the aisle?  All of this was paid and financed by the people’s tax dollars.

“A government of the mafia, by the mafia, and for the mafia” – that seems to be today’s motto

Mafia is non-ideological: it does not embrace political ideals.  It cynically espouses ideals from time to time, but ultimately it will not uphold virtues that interfere with the strict pursuit of money and power.  So, when (not if) necessary, ideals and decency are conveniently forgotten.

The public at large calls this process “a bipartisan compromise.”  However, in reality, there is only one party.  It is a political animal which puts your God-given rights on the auction block, to be sold to the highest willing and able bidder.

It’s also indisputably true that politicians, on both sides of the aisle, are taking bribes.  Wherever power accumulates, corruption immediately follows. Widespread corruption is the defining trait of Washington’s establishment today.  There is no principled leader among them.

Politicians, like everyone else, have a price.

FEE’s Top 10 Articles of 2015 by Jeffrey A. Tucker & Daniel Bier

FEE was founded in 1946 to be a voice for liberty in our world, and today FEE makes ideas on freedom, markets, and ethical principles familiar and credible to the rising generation.

This year FEE’s outreach broke all records in achieving that goal. You can see the progress in programs, publications, and media appearances by FEE faculty and staff. This has coincided with major progress in how we reach the world through FEE.org.

Here is a roundup of activities on FEE.org this year.

Top Ten Articles

FEE has been a leading commentary on current affairs, using everything from technological trends to popular culture to politics as a way to illustrating the usefulness of good economics backed by evolved norms.

Hundreds of articles, blog posts, books, and other resources have been published on FEE.org this year, all contributing to record-breaking traffic performance. Here are our top 15 performers of 2015:

10) New York’s Taxi Cartel Is Collapsing. Now They Want a Bailout.

Ride sharing apps are fundamentally changing transportation, dethroning taxi monopolies and replacing them with human choice. Note that this isn’t happening through any political reform. Innovation is the force that is making the difference.

9) The Economics of a Toddler and the Ethics of a Thug

This headline neatly sums up so much of the “progressive” political mindset, particularly socialist supporters of Sen. Bernie Sanders. They scream about the need to plunder the rich, using massive police-state power, without a thought given to where new wealth is going to come from.

8) “Jesus Christ Was a Progressive Because He Advocated Income Redistribution to Help the Poor”

This piece by FEE president Larry Reed dealt squarely with an intellectual confusion that dates nearly to the beginning of Christianity itself. He shows that Jesus did not advocate income redistribution. “One can scour the Scriptures with a fine-tooth comb and find nary a word from Christ that endorses the forcible redistribution of wealth by political authorities.”

7) How Policing Works in a Privatized City

We are fortunate to have examples of the success of liberty all around us. Many cities today are carving out areas that are purchased by private developers. The results are spectacular, and Atlanta’s “Atlantic Station” is one such case: private streets, private policing, private housing. Surprise: these places are not walled gardens but rather hugely welcoming to all.

6) Supreme Court to DoJ: Fourth Amendment Is Not a “Useless Piece of Paper”

When the Supreme Court actually does something right, it’s worth noting. A sound opinion from the Court said that police can’t use a traffic stop to do search missions that are completely unrelated, without having some reasonable and specific suspicions. It’s a good start.

5) Alabama Senate Votes to End State Marriage Licenses

This article covered a possible solution to the marriage debate: get rid of licenses completely and replace them with regular contracts. Opponents of same-sex marriage favored the bill too, but, ironically, such a step would help de-politicize the entire subject. Sadly, the bill died in the House.

4) The Eugenics Plot of the Minimum Wage

How many times have you heard that a higher minimum wage will help the poor? The original architects of wage floors actually knew the truth. They favored the laws in order to exclude the poor, whom they wanted swept out of the population. This is chilling material and completely forgotten history.

3) America Isn’t Getting More Liberal — It’s Getting More Libertarian

This piece documents public polling on a range of issues: immigration, drugs, taxes, gay rights, guns, environment, the draft, and federal power. In most cases, it finds that people are becoming more libertarian over time. It’s another case where mainstream narrative is completely wrong.

2) How Many Children Are You Required to Save?

Just when you think only current news goes viral, this serious philosophical piece rocked the traffic hard. The post showed how the popular argument by Peter Singer relies on false intuitions and casuistry.

1) 6 Reasons to Welcome Refugees after Paris

Our most popular piece of the year! The more you look at the arguments over immigration and refugees, the more you realize that so much of what people think they know is wrong. There is no evidence that vetted US refugees are likely to become terrorists. In fact, refugees tend to become more successful in America than economic immigrants. ISIS sees Syrian refugees as traitors to their cause, so there’s every reason to welcome them as a part of stopping violent extremism.

Other big hits this year included “7 Habits of Highly Effective Libertarians,” “Millions in Brazil Follow a Teen Leader to Freedom,” “Handcuffed and Helpless,” and “Bernie Sanders’ Anti-Immigration Crankery.”

And don’t forget, you can also check out the beautiful and completely redesigned quarterly Freeman magazines online.

Best Books on FEE.org in 2015

The entire book Liberalism by Ludwig von Mises is online at FEE.org. Also, a lost work, Interventionism: An Economic Analysis, is now available. Planned Chaos also made its first online appearance this year.

The first book that FEE ever published, Essays on Liberty, is available as an ePub.

The classic by Henry Hazlitt, What You Should Know About Inflation, is now free to download. FEE also has the full text of Henry Hazlitt’s classic Economics in One Lesson online.

Our five most popular books are available on iTunes and Amazon.

In the physical world, FEE’s edition of Economics in One Lesson is still one of our most popular among young adults — 70 years after its first publication.

Web Development

FEE.org went through dramatic redesign and restructuring this year, and part of this included the building of a platform for leveraging content from like-minded institutions. This has multiplied the reach of great content many times over.

2015 was also the first year that FEE.org became part of the “Creative Commons”, allowing anyone to repost, republish, remix, adapt, sell, or do anything else with FEE’s original content. This move has enormously increased the reach and impact of FEE’s content, which has been published in many new outlets, such as Newsweek.com.

We also took steps to move all web development in house, using the best talent to make FEE.org an ever greater platform. You can look forward to a more comprehensive front page, a member center, tools for finding related material, online learning, and much more.

We’ve also released a major new program for networking: the FEE Faculty Network!

One more thing: we are now distributing some awesome swag in our fancy store. Have a look!

Thank you for an amazing year. Let’s continue to build a freer world in 2016.

Jeffrey A. Tucker

Jeffrey A. Tucker

Jeffrey Tucker is Director of Digital Development at FEE, CLO of the startup Liberty.me, and editor at Laissez Faire Books. Author of five books, he speaks at FEE summer seminars and other events. His latest book is Bit by Bit: How P2P Is Freeing the World.  Follow on Twitter and Like on Facebook.

Daniel BierDaniel Bier

Daniel Bier is the editor of Anything Peaceful. He writes on issues relating to science, civil liberties, and economic freedom.