November 19, 2019

China becoming the largest economy would be great for Americans

trump-xi-wall-street-1069240Here’s another little piece of evidence that whatever made the American psyche one inclined towards freedom is long dead: the irrational fear China may surpass the United States as the world’s largest economy.

So what?

China’s population is five times larger than the U.S. population. It should be the largest economy in the world. If both countries had laissez faire free market systems, China would have the largest economy in the world and that would be great for the Chinese, for Americans, and for the rest of the world. It would mean an enormous increase in the world supply of goods and services, making the average inhabitant of this planet richer, just as the industrial revolution made richer the inhabitants of the countries in which it occurred.

Anxiety about China’s economy being larger than ours is born out of statist, collectivist thinking, in which the individual is subordinate to the glory of the state collective. In a word, it’s dronethink.

The only reason the U.S. economy has ever been larger than China’s is because it was relatively freer than China’s – by orders of magnitude during China’s communist era. The reason that gap is closing is because China, while still by no means a laissez faire free market, is becoming relatively freer, while the US is becoming relatively less free.

The only way for China to become the largest economy is by continuing to make its markets and, eventually, its entire society freer. Whether it will do so or not remains to be seen. The freedom momentum there has slowed somewhat recently, although the momentum here is in entirely the other direction.

Anyone who wants to live in a freer, richer, and safer world should hope both Americans and Chinese have the good sense to clean house in their respective governments and establish a laissez faire system in both countries, resulting in both becoming far more productive. Yes, China’s economy would then  become the largest economy in the world and that would be just fine.

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

Amazon’s NYC Pullout Shows Economy Is Rigged, Just Not the Way Most People Think

cuomoandbezos4Amazon announced Thursday it will not build a new headquarters in New York City, citing the backlash from union leaders and some lawmakers over the nearly $3 billion in government incentives included in a deal to bring the company to NYC. Those leaders treat Amazon’s decision as a victory. For Governor Andrew Cuomo and NYC Mayor Bill De Blasio, it’s a defeat, as they led the effort to lure the company to New York.

No matter how it’s spun, the facts don’t change. This decision represents billions in lost tax revenues for the city and state, over and above the $3 billion in incentives. Amazon won’t be employing an estimated 25,000 additional New Yorkers. And many millions more in business with local vendors will not occur.

To opponents of the deal, a principle has been defended: Giant corporations like Amazon shouldn’t be offered tax “subsidies” to come in and “exploit” local workers and the community. But this theory raises several questions.

Read the rest at Foundation for Economic Education…

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

Why the Bull Market May Be a Jedi Mind Trick

Publication1The Bureau of Labor Statistics reported Friday that over 300,000 jobs were created in February, making it the best single-month total since July 2016. And unless you’ve been exploring the Arctic Circle or were kicked off Twitter for expressing politically incorrect views, you know that’s just the latest “great” news about the booming economy, bull market in stocks, and, best of all, the significant new job creation since Donald Trump became president.

Certainly, there is no denying that the stock market has continued to rise, with the S&P 500 up over 27 percent since 11/7/2016, as of this writing. But as for the overall economy and, specifically, job creation, even the Trump-hating liberal media seems to have fallen for an economic Jedi mind trick. Regardless of single-month spikes like the one that occurred last month, it only takes one click of the mouse to see that job creation continued to fallin 2017, as it had the previous two years. Looking at yearly totals over the past ten years, job creation looks a lot more like a protracted version of the last business cycle leading up to the 2008 crash.

Read the rest at Foundation for Economic Education…

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

Obama has state of the delusion speech shovel ready

TAMPA, February 12, 2013 — Pundits are already atwitter over tonight’s annual exercise in political posturing. The question many are asking is whether Obama will stay on the attack against his Republican opponents or attempt to use the speech to identify areas where he can work with them.

The real question is whether the president will make a single remark that bears any resemblance to reality.

The State of the Union address (SOU) has always been little more than a nationally televised stump speech. As all presidents believe that anything happening anywhere in the country is a direct result of their policies, none have ever wanted to paint a less than rosy picture about the supposed “state of the union.” After all, if it’s in a bad state, it must be their fault.

However, with the U.S. now in full-fledged collapse, the speeches have become so detached from reality that they should be called “state of the delusion” addresses.

The speech is interminably long, but let’s look ahead to the main areas it will cover and try to separate fantasy from reality.

The president will remind us that he inherited an economy in shambles, which is true. He will hope that listeners draw the inference that his predecessor was wholly at fault for this, but that isn’t close to true. Every president since at least Teddy Roosevelt contributed to the problem, with the largest contributions coming from Democrats.

It will really turn bizarre when Obama starts talking about “the recovery” that’s underway. We’ll be told that while we’re not out of the woods and there is still “a lot of work to do (i.e., more government meddling to accomplish),” new jobs are being created, new industries are flourishing and things are generally looking up.

In reality, the United States is in a depression, just like the one in the 1930’s, and it’s being prolonged for all of the same reasons. The official numbers say that unemployment has been hovering around 8 percent, but that’s only because they’ve changed the way unemployment is measured. If they measured it the same way that they did in the 1930’s, unemployment would be the same as it was in the 1930’s.

As an aside, there isn’t any substantive economic distinction between “recession” and “depression.” Politicians just decided to stop calling them depressions to con the public. After a while, they started believing their own bovine waste products.

Read the rest of the article at Communities@ Washington Times…

Romney-Obama debate as competitive as professional wrestling

TAMPA, October 4, 2012 — The early consensus after last night’s debate between President Obama and Republican presidential nominee Mitt Romney is that it was a win for Romney. That depends upon how you define “win.”

Certainly, Romney came off as more confident in his answers, while the president seemed distracted at times. However, if this was a battle of ideas, then the outcome was about as uncertain as professional wrestling. Anyone who was listening could tell that this wasn’t a real fight. Big government was the predetermined winner the minute that Romney was nominated.

Yes, Romney made a few references to “competition” and “private markets,” as did Obama. But neither of them is interested in giving free markets a try. In that sense, Obama was at least a little more honest, except when he made the ironic statement that “the genius of America is the free enterprise system.”

The first segment concerned the economy and “creating jobs,” something the government has no role in whatsoever in a free market. The only valid government policy to create jobs from a free market perspective is one that stops the government from doing what it’s already doing. Neither man proposed this.

For many decades, the federal government has employed the same ruse in an attempt to centrally plan the economy while at the same time claim it is fostering free enterprise.

Step One: Tax the living daylights out of everybody and everything.

Step Two: Give “targeted tax cuts” to firms in sectors the central planners think should grow.

Continue at Communities@ Washington Times…