We Are Capitalists

How did CEPR claim states with raised minimum wages had employment growth?

THE MISLEADING CLAIM: “The 13 states that raised their minimum wage at the beginning of 2014 saw employment increase by 45% more than the 37 states that didn’t raise their minimum wage.” (more…)

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The Case for Legalizing Child Labor

CHILD LABOR is one of the more controversial topics in economics. At face value, most people probably support restricting or banning it. Understandably, child labor evokes emotional responses and images of horrendous working conditions of the Industrial Revolution. Times have changed, however, and this discussion is worth revisiting. (more…)

Does Social Welfare Spending Reduce Inequality? New research says NO

NARRATIVE: Redistributive measures, such as social welfare spending, are necessary adjustments to “fix” wealth inequality.

REALITY: Politicians and pundits often advocate for policies to “fix” a supposed ill. More often than not, these policies are supported without consideration for the unseen, unintended effects. (more…)

Volkswagen’s Emissions Scandal Shows EPA Incompetency and Failure of Standards

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…)

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…)

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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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…)