Hauser’s Curve Image Credit: Wikimedia commons/Sugar-Baby-Love
American progressives want a much bigger government with greater powers, while neoliberals (usually mislabeled “conservatives”) passionately want a greatly smaller, weaker government. The reasons for the neoliberal resistance to progressive policies are that neoliberals believe those policies to be incompatible with both human freedom and general economic prosperity.
The interaction of Hauser’s Law with Rahn’s Law provides an important neoliberal argument for limiting both government taxes and government spending. However, Hauser’s Law is an economic “law” only by courtesy of the fact that it has always been observed to be true in the United States for the past seven decades or so. If it can be repealed, that economic change could expose a serious flaw in the neoliberal picture of economic reality.
A friend and critic of mine on the progressive side of the argument pointed out an explanation for Hauser’s Law that shows how it might be repealed. Let us take a careful look at it.
The labyrinth connections of persuasion
(c) Can Stock Photo / focalpoint
The more things change, the more they stay the same. — Translation of a French epigram by Jean-Baptiste Alphonse Karr: “Plus ça change, plus c’est la même chose”
Despite the kernel of truth in this famous epigram, the long sweep of history teaches us it is fundamentally false. About a millennium ago, the timescale on which human world views (weltanshauungen, religions, ideologies) were fundamentally changed was measured in centuries. In our time, however, with increasing connections between human minds offered by the internet and televised news, and with accelerating advances in science, this timescale has shortened to decades. It would be extremely expedient and opportune for us now to find yet another revolution in Western world views. The modern challenges the Western world faces are truly existential in nature. Neoliberal and progressive minds will have to adjust if we are to survive.
Vice President Mike Pence, as President of the Senate, announces final passage of the Tax Cut and Jobs Act in the Senate, 51-48.
Screen shot of Right Side Broadcasting Network video on Youtube
The lies of progressive politicians, pundits, and progressive allied news media have seriously misled Americans about what the recently passed GOP tax reform bill actually does. Senate minority leader Sen. Chuck Schumer (D-NY) may have claimed Republicans “will rue the day” they passed the tax bill, but it is far more likely Democrats and their supporting news media echo chamber will rue the day they misrepresented and opposed tax reform. This might happen as soon as next February when American workers discover their new, lower payroll taxes. Continue Reading…
Hauser’s Curve Image Credit: Wikimedia commons/Sugar-Baby-Love
With a Republican tax bill having passed both houses of Congress and certain to be signed by the President, taxes and tax rates are the universal subject of the day. A critical empirical fact to consider in the debate is Hauser’s Law, as illustrated by Hauser’s curve above. Continue Reading…
President Trump signs executive order in his first 10 days of office to curb government regulations.
NBC News / Carlos Barria / Reuters
One huge Trump achievement only marginally commented upon by the news media has been the beginnings of his deconstruction of the regulatory state, aka the administrative state. Republicans may have failed so far to repeal and replace Obamacare, and passage of tax reform in the U.S. Senate might look problematical, but at least in bringing down the cost of the regulatory state and bringing us back to a more constitutionally sound government, Trump has racked up solid successes.
US real GDP growth from Q1 2009 to Q3 2017. The green line is a linear fit to the GDP over the three years from Q1 2014 to Q1 2017.
St. Louis Federal Reserve District Bank / FRED
I have have just updated the leading and coincident economic indicators I am following, the first update I have done since last May. That means it is time to take a more analytic view of just what is happening to our economy, and why.
Plot of annual Real U.S. GDP per capita growth in percent averaged over ten year periods. This is the major reason why huge U.S. corporate tax cuts are needed!
The Gallup Organization
About a month ago, I was having a conversation with a gentleman of the progressive persuasion about U.S. corporate tax cuts. I was trying to persuade him the U.S. desperately needed very large corporate tax cuts to restart economic growth. Otherwise we are doomed to secular stagnation, if not indeed secular decline. Being a progressive, he of course did not agree.
An 1846 painting by George Caleb Bingham showing a collection of voters before a polling place. A polling judge is administering an oath to a voter.
Wikimedia Commons / George Caleb Bingham (1811-1879)
In my last two posts, the dysfunctional nature and enormous political problems of both the Republican and Democratic parties were examined. With division and discord in the Republican party, and a rush toward the political Left by the Democratic that alienates a growing fraction of the American people, how can legislative progress be made towards solving our increasingly serious problems? How can the electorate respond?
The ultimate motto of the deep state, as enunciated by Napoleon the pig, the Supreme Leader of George Orwell’s Animal Farm.
Image Credit: QuotesGram.com
What is more important in our life on this world? Is it the confluence of values bound up in the notions of freedom, personal liberty, and freedom of thought and speech? Or is it government guaranteeing us the material conditions of a good life? Is the ability to think what you wish and fearlessly express your opinions openly to the entire world more important than the government providing everyone with healthcare, food, clothing, and other material necessities?
The view of the Dominican Republic from the front of our condo in Juan Dolio, DR.
Greetings from the town of Juan Dolio in the Dominican Republic! Having traveled to the Dominican Republic on personal business, I thought it would be fun to compare and contrast developments in this country with those of other developing nations to glean whatever lessons we can from it.
Lady Liberty in New York harbor looking outwards from New York. Is she welcoming the world to New York, or pointing the direction to greater freedom for New Yorkers?
Wikimedia Commons / Elcobbola
Any survey of progressive blue states losing people and companies to other, predominantly red states would be incomplete, even for a partial list, without a look at New York State. Since we have already examined the exodus from the blue states of Illinois and California, it is New York’s turn to be in the dock.
Cumulative net migration to and from California to other states from 2004 to 2013.
The Sacramento Bee
An even greater disaster for American progressivism than the state of Illinois is the not-so-golden state of California.
Illinois Speaker of the House Michael Madigan speaking to press about the status of the state budget on June 22, 2017 during a special legislative session called by GOP Governor Bruce Rauner
Screenshot of an Illinois News Network video.
No progressive-dominated state exemplifies the bleeding of population and resources to red states more than the deep blue state of Illinois. It is a perfect example of the forces described in the post The Ideological Balkanization of the United States.
The red state – blue state division of the United States as revealed by the presidential results of the past four presidential elections.
Wikimedia Commons / Angr
This week The Sacramento Bee reported additional evidence for the ideological balkanization of the United States. The newspaper of California’s capitol reported the state government is now banning publicly funded travel to four more states because the California government views those states’ laws or policies as discriminatory to gay and transgender people. The four new states on the list are Texas, Alabama, Kentucky, and South Dakota, all of which are red states according to the map above, i.e. Republican and neoliberal (aka “conservative”). Those four new states join Kansas, Mississippi, North Carolina, and Tennessee, similarly red states. As of now, I am unaware of any similar bans by red states against blue, i.e. predominantly Democratic and progressive states.
The time evolution of the Atlanta Federal Reserve Bank’s GDPNow forecast for the second quarter of 2017.
Image and Data Credit: Atlanta Federal Reserve District Bank / Center for Quantitative Economic Research
Just a few days ago, in my post U.S. Economy and Stock Markets, May 2017, I noted there were of a number of economic statistics pointing to current and future economic growth somewhat greater than the stagnant levels to which we became accustomed under Obama. In just those few days, I have found even more economic tea leaves for us all to ponder.