For the first time in US history, the rate of firm exit exceeds the rate of firm entry. The new trend represents a shift in our economic structure towards entrenched industries instead of “creative destruction” – or the process by which more productive firms drive out less productive ones through competition. Our economy becomes less competitive when entrepreneurial growth slows. (more…)
You often hear people talk about how the United States does not produce anything because manufacturing was taken over by China. Although some manufacturing has left the United States, it has been replaced with more specialized manufacturing and new industries. Furthermore, there are foreign companies with manufacturing operations in the United States because of the access to a larger pool of highly qualified employees. (more…)
Uber frequently makes headlines as they fight protectionist bureaucrats around the world. In France, there is now a ban on UberPop, the low cost service similar to UberX. Despite international aggression from government, Uber growth has been unprecedented. Their success is all part of the new “sharing economy”, which should be a buzz word for the French socialists. (more…)
Now that the Super Bowl is over, media commentators are using a laundry list of words to describe the event, none of which includes “expensive for taxpayers”. This has spurred at least one lawmaker to skewer NFL Commissioner Roger Goodell for the tax-free status enjoyed by the NFL. Congressman Jason Chaffetz has a point: the IRS classification of the NFL as “non-profit” is laughable. The NFL and professional sports leagues are a temple for underhanded corporate welfare and cronyism. (more…)
When employers doll out wage increases, the announcement is usually met with appreciation and enthusiasm. For McDonald’s, however, their recent wage increases and new benefits were met with criticism and demands for more.
McDonald’s will be raising wages by about $1 for 90,000 employees at 1,500 of their corporate-run restaurants, which is a small number of their locations. Also, many employees will begin to accrue earned vacation time and also be eligible for educational assistance. (more…)
Pundits often claim that capitalists hold wages artificially low to maintain huge profit margins and perpetuate abject poverty for the working class. They fail to mention, however, that competitive labor markets increase wages as firms fight for the best talent and productivity. While they may think this sound idealistic, we see it happening as Target voluntary increases their minimum wage to $9 an hour. (more…)
After living in Philadelphia for some time now, I have seen a multitude of headlines with various degrees of optimism. Walk Score praises Philadelphia and the New York times ranked it as a top travel spot. To the one stage thinker, this points to an improving environment. They are, however, purely subjective measures that only account for a very small portion of the city. On the other hand, we see headlines about under-funded education and economic distress.
Philadelphia cannot be both flourishing and collapsing. As someone who fell in love with the city, I decided to voice my concern after fully examining the economic and political climate. (more…)
Socioeconomic racial disparity has been making lots of headlines recently. Protests in New York and Ferguson have brought a new light to the discussion of race. I have pointed out in previous posts what caused disparity, but never offered a solution. I believe the current state of disparity is a storm of multiple policy failures, so there is no single pen swipe or new law that could do anything worth mentioning. (more…)
While on the internet one day, I noticed some media outlets have numerous bold headlines about any one pending economic horror. Many of these claims are based on bad economics and poor analysis of statistics. In a sort of economic propaganda, politicians use this as a means to justify power grabs. They’ll want to enact some form of trade barrier or labor regulation, which can sound good on the surface. In reality, offshoring and automation have increased living standards and alleviated poverty not just at home, but around the world.
If you click on any liberal website, it won’t take long until you find an article bashing capitalism and advocating socialism. They are well intended in their cause for social justice, but fail to acknowledge capitalism for the sensational display of human order. All around the world, people voluntarily exchange goods and services in the pursuit of profit. In that pursuit, some of the most amazing things have come to fruition.