The first lesson from the pandemic is that nobody knows anything. The next thing to know is that we are in a recession, a really bad one. If you think that this recession is solely caused by the pandemic (“supply shock”) you would be wrong. Every recession needs a trigger to set it off. In 2008 it was mainly the Lehman Brothers failure. This time the pandemic trigger is unique but it will, like all previous recessions, expose underlying weakness in the economy.
Excuse my sensationalist “fake” headline, but what would Bernie say about someone who makes a billion dollars by inventing a vaccine for the COVID-19 coronavirus? Would Bernie consider it “immoral” and “disgusting”? Should the inventor’s billions be confiscated as he would like? This exposes Bernie’s corrupt ideology that has impoverished millions wherever tried.
Santa Barbara’s liberal City Council voted to delay the implementation of 5G wireless service in the city in the hope they could kill it. They are doing this because they fear the “dangers” of electromagnetic radiation (aka, radio waves). Yet the overwhelming scientific opinion is that 5G radiofrequency radiation is harmless. These science-denier tin-hatters fail to understand this issue. People want 5G. Why don’t they let their constituents vote with their dollars and see if they want it.
There is a lot of media praise for Thomas Piketty, a French economist and his new book, Capital in the Twenty-first Century. The basic theme of the book is that the rich get richer and everyone else gets poorer. Piketty’s solution is confiscatory taxes on wealth to reduce the amount of capital in the hands of “capitalists”. He believes this will force capital into the hands of more productive members of society such as entrepreneurs and then the benefits will be more widespread throughout society. It’s a mish-mash of failed ideas about capital, labor, inequality, entrepreneurs, free markets, and economic progress. It is “economics lite.”
The contemporary movement that now goes by the name of “Conservative” isn’t conservative. Today’s conservatives, the New Conservatives, pay only lip service to those golden ideals that did make America great. They have morphed into cheerleaders of Big Government. (more…)
I’m going to make predictions about 2020—a fool’s errand for sure. But this fool’s guess is probably just as valid as anyone else’s—I do follow economic trends. Being diligent readers, you will save this article and pull it out on January 1, 2021 to see if I was right. It will be fun.
Bernie Sanders and Elizabeth Warren are angry critics of free markets and rich people. They paint a bleak picture of America as a population of downtrodden, defeated people subjugated by billionaires and capitalism. The record is just the opposite, so one wonders why they and their supporters have this view of our world. The answer is that their anger is driven by envy and a desire to deprive successful people of the fruits of their success, a thing the envious have never achieved. Politicians exploit this primitive emotion for their own political ends which is the power to control us.
A recent poll stated that half of Californians have thought of leaving the state. Once the land of golden opportunity, California is losing its dynamism. The reason for that is that it is by far the most regulated state in the union and it has the highest tax rate among the states. Now two new laws, one trying to kill off the gig economy, the other statewide rent control, threaten the promise that once made California the land of opportunity. (UPDATED Oct. 18, 2019)
By supporting Trump’s disastrous trade policies, his apologists are fomenting the destabilization of a world order of prosperity and peaceful coexistence created by free trade. These new “conservatives” are not conservatives, but Big Government advocates who seek the reins of power.
The beauty of history is that, with the passing of time, it’s easy to see the flaws of conventional wisdom. In science, medicine, economics, finance, and public policy, the years eventually reveal the errors of what people then thought were incontrovertible facts. Society would have been better off being skeptical of conventional wisdom. You would be better off being skeptical of conventional wisdom. Here’s why.