In his 1964 State of the Union, President Lyndon Johnson declared the “War on Poverty” and launched numerous government initiatives to combat the supposed rampant poverty in the United States. Of course, at the time, poverty rates were well on the decline. As with any government program, however, we must evaluate it based on results rather than intent. (more…)
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…)
Since the 1930s, the racial unemployment gap has widened dramatically. Economics and history, rather than verbose rhetoric, explain the influences that caused a sustained gap in the unemployment rates. The attached graph shows that blacks had about the same unemployment rate during the early 1900s; even less than whites at one point. There are many reasons why and each have their own merit. The most important reason, however, is the minimum wage. (more…)
Detractors of capitalism often blame the market for government. I mean, it couldn’t be any more obvious here. The government (FDA) “approved” a product (cigarettes), which is now sold in a highly regulated market. It must be capitalism’s fault. You know, how leftists claim that “deregulation” has been a problem, and then go blame capitalism for regulations.
It really doesn’t make any sense how they’ve reached this conclusion. Somehow, deregulation equals regulation. More FDA should fix that. (more…)
Earlier this week, a nine year old Chicago boy was lured into an alleyway and brutally shot to death. Tyshawn Lee was executed because of his father’s gang ties as part of an ongoing bloody turf war. Father Pierre Stokes – a convicted felon on parole – refuses to cooperate with police and claims he has dissolved gang ties; despite a recent arrest over a .45 caliber handgun that had no serial number.
One would think that Tyshawn’s execution would be the catalyst for another nationwide debate about gun laws. After all, bloodthirsty criminals walk the streets and execute children – the very people gun control advocates claim to protect. In this day and age, however, the focus has shifted from reality to narrative. (more…)
For over a decade, government enforcers kidnapped people deemed invalid and held them at a black-site location without due process or civil rights. Over 7,000 people came through the facility and less than 1% ever saw an attorney. (more…)
Volkswagen was recently ousted for purposefully cheating US emissions test on their clean diesel cars. They manipulated results using a computerized sensor that altered emissions during tests. As you might expect, many pundits are immediately blaming the market and capitalism. If anything, the VW scandal points to a failure of government and success of market forces. (more…)
Ahmed Mohamed was arrested for bringing a homemade clock to school. His crime? Building a “hoax bomb” and bringing it to school. Liberals have predictably blamed racism and Islamophobia. Of course, their rhetoric fits a politic narrative and deflects the story away from the root cause: failed government education. (more…)
Drug prohibition is arguably one of the biggest policy failures from the modern era. We have spent trillions of dollars attempting to eradicate drugs, yet the drug industry continues to thrive. At this point, there is more than enough information to deduce that the costs far outweigh the benefits. (more…)