Economics

No Bernie, Labor is not a Fixed Pie

Bernie Sanders has committed a fixed pie fallacy. It is the belief that an economy is static and doesn’t change or grow. While he is correct about manufacturing employment, he ultimately uses this political claim to form his platform about the economy. However, we can render it meaningless by looking at the economy as a whole and as it has changed and grown. (more…)

A Welfare Reform That Can Save Budget and Reduce Poverty

Every year there is a heated battle between the left and right over the budget. Welfare reforms are always a politically sensitive issue. The left decries them as “hurting the poor to benefit the wealthy” and the right takes a fiscally conservative approach that we simply cannot afford it. They’re both right and wrong for their own reasons, but they almost never address actual structural reform that can ultimately benefit everyone. (more…)

The Unseen Benefits of Oil Pipelines

When a policy related to economics is up for debate, I almost always see people discussing the direct consequences of said policy. It’ll go back and forth that doing X or Y will cause A or B, and which one is more desirable. Rarely is it asked whether X or Y may have consequences elsewhere in society that are not immediately obvious at first glance.

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Bernie Sanders Did a Reddit AMA, and Gave the Wrong Answers

As an economics junkie, I find Bernie Sanders both entertaining and frustrating. He has been the center of two of my articles, both of which rustled the Sanders Circle. A good friend brought it to my attention that Sanders was doing a Reddit AMA to promote his presidential candidacy. Needless to say, I felt the need to address a few of his answers. The socialist has struck again! (more…)

College Degree Wage Premium: What’s the Real Difference?

In discussions about politics and economics, we see a lot of one stage thinking. Virtuous arguments are made without considering factors below the surface or beyond stage one. If we consider these factors, we can fully articulate the issue at hand and make an informed opinion.

Google “college degree compensation” and most of the results will tell you that college degree holders unquestionably earn more than high school. Although true, there are other factors that may change your opinion on the value of a college degree. (more…)

The Hypocrisy of Elizabeth Warren

Firebrand progressive Elizabeth Warren has created such a storm that even democrats are concerned with how her far-left rhetoric could be politically damaging. From income inequality to minimum wage, Warren’s flare for “middle class economics” (whatever that is) makes her appealing to the socialist left. She hypocritically blasts the rising cost of tuition and “predatory” student loaning practices. Her supporters view her as a demigod incapable of mistruths. (more…)

Here’s Why Salads Cost More Than Burgers

Misleading Claim: “An unhealthy hamburger costs $1, but a healthy salad costs $5. Greedy capitalists are making our kids fat!”

Reality: Producers do not sell goods at arbitrary prices based on profitability or the desire to make people fat. In fact, prices are carefully calculated by consumer value/demand and external factors, such as subsidies. We can debunk this claim with thought experiments and an analysis of the U.S. farm price support programs. (more…)

Uber is Good for Everyone Except Unions

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…)

NFL Subsidies are a Losing Investment for Tax Payers

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…)