Posted in Economic Issues, Free Society, Free-Market, Leadership, Liberty, Philosophy, Policy Issues, Poverty, Rule of Law, Subsidies, Uncategorized, Wealth

Why Hong Kong’s Economy Has Grown 7x Faster Than Cuba’s Since Since the 1950s – Foundation for Economic Education

By Dan Mitchell

“Communists claim that their ideology represents the downtrodden against the elite, yet the evidence from Cuba shows wretched material deprivation for most people.

In Hong Kong, by contrast, incomes have soared for all segments of the population.”

How important are key individuals in shaping the success or failure of economies? …Neil Monnery’s A Tale of Two Economies is in some sense a polemic against historical determinism, at least insofar as promoting economic reforms is concerned.It stresses the importance of two single individuals, one a great man for many, one an obscure official and political unknown to the most, in shaping the destiny of their respective countries. …Ernesto “Che” Guevara and John Cowperthwaite. …Monnery insists that both of them were “deep and original thinkers.” …The key difference between the two was perhaps that Cowperthwaite had a solid education in economics… Neither the way in which Hong Kong progressed, nor Cuba’s, were thus inevitable.

Monnery points out that Hong Kong’s success happened not because Cowperthwaite and his colleague were trying “to plant an ideological flag,” but because they were “professional pragmatists.” …Then the success of relatively libertarian arrangements in Hong Kong perpetuated itself. …Cowperthwaite tested what he knew about classical economics when he “first arrived in Hong Kong, in 1945” and “was put in charge of price control.… He soon realized the problems with attempting to set prices low enough to meet consumer needs but high enough to encourage supply, and in a dynamic environment.” He opposed subsidies that he saw as “a brazen attempt to feed at the trough of government subsidies.” …Cowperthwaite is a hero to Monnery, who emphasises his competence, and even more, his integrity.

https://fee.org/articles/why-hong-kongs-economy-has-grown-7x-faster-than-cubas-since-since-the-1950s/

Posted in Economic Issues, Education, Entitlements, Free Society, Free-Market, government incompetence, Government Regulations, Liberty, Philosophy, Policy Issues, Poverty, Rule of Law, Uncategorized, Wealth

Watch “John Stossel – Influence of Milton Friedman” on YouTube

Milton Friedman’s core message was that personal freedom and economic freedom go hand in hand.

Pursuing life, liberty & happiness must be accomplished by individuals, and can’t be granted to us by bureaucrats or gov’t programs.

Milton Friedman understood this and trumpeted this message throughout his life.

Posted in big government, Economic Issues, Government Spending, Job loss, Medicare, News From Washington, Policy Issues, Poverty, Progressivism, Reforming Medicare, Tax Policy, Uncategorized, Unemployment, Wealth, Welfare State

Rich Nations that Enact Big Government Don’t Remain Rich | International Liberty

“United States would be almost as poor as Mexico today if growth was just one-percentage point less every year starting in 1895.

That was just a hypothetical exercise.

There are some very sobering real-world examples. For instance, Nima Sanandaji pointed out this his country of Sweden used to be the world’s 4th-richest nation. But it has slipped in the rankings ever since the welfare state was imposed.

Venezuela is another case study, as Glenn Reynolds noted.

Indeed, according to NationMaster, it was the world’s 4th-richest country, based on per-capita GDP, in 1950.”

…Now? Not so much!

https://danieljmitchell.wordpress.com/2018/07/29/rich-nations-that-enact-big-government-dont-remain-rich/

Posted in Access to healthcare, big government, Dependency, Economic Issues, Job loss, Keynesian Economics, Medical Costs, Organizational structure, outcomes, outcomes measurement, Patient Safety, Policy Issues, Poverty, Protocols, Uncategorized, Unemployment, Wealth

Big Government Can Be Deadly, Literally | International Liberty

People in wealthier nations, on average, live longer and better lives than residents of poorer nations. …government policy makers should consider the adverse effects on health and mortality of economic policies that impose costs on the productive sector of the economy.
It then puts forth the sensible hypothesis about the economy-wide implications of onerous red tape.
Lutter and Morrall (1994) attribute to Aaron Wildavsky, see for example Wildavsky (1980), the general proposition that government programs tend to reduce economic growth, thereby interfering with the primary mechanism by which human health has improved over time. According to Lutter and Morrall, the first to apply this principle quantitatively was Keeney (1990), who calculated that an additional death occurs for roughly each $3.14 million to $7.25 million of income lost (1980 dollars). OMB on several occasions has brought health-health analysis to bear both in its review of OSHA regulations related to worker safety, and in examining regulations of other agencies, such as EPA and FDA. For example, using a finding that $7.5 million of costs induces one additional statistical death, OMB argued that although OSHA’s proposed permissible exposure limits for a large number of workplace air contaminants would offer the benefit of preventing 8 to 13 deaths per year, the regulatory costs of $163 million per year would indirectly cause some 22 deaths annually. 

The Institute of Energy Research also explored the issue.

…in practice we all make decisions that increase the risk of death, and in that sense, we trade off our own longevity for other goals. In this context, economists can estimate the implied value of a human life, judged by the choices of the individuals themselves. One surprising implication of this approach is that costly government regulations not only reduce Americans’ standard of living, but they also indirectly lead to more deaths.

And here’s the key takeaway.

…there is a well-established causal connection between wealth and health. Costly federal regulations make Americans poorer and thus indirectly lead to more deaths, because poorer people are less able to take advantage of private methods of prolonging their lives. If regulations are particularly inefficient, this indirect effect might overwhelm the direct benefit of the regulation, meaning that it not only makes Americans poorer, but actually kills them on net.

The AEI-Brookings report also looks at some of the existing research.

Dozens of articles in economics and public health journals substantiate the claim that richer people live longer.10 Simple correlations of annual death rates and income suggest that a community whose income rises by about $10 million can expect about one fewer death.

By the way, allow me to interject by pointing out some specific examples of regulations that are on the books and are causing needless deaths.

https://danieljmitchell.wordpress.com/2017/12/05/big-government-can-be-deadly-literally/

Posted in big government, Consumption Inequality, Dependency, Economic Issues, Entitlements, Free Society, Free-Market, Income Inequality, Job loss, Liberty, Poverty, Progressivism, Uncategorized

The IMF’s Recipe for Equal Levels of Decline and Stagnation | International Liberty

…after reading a new study from the International Monetary Fund, I’m wondering if I’m underestimating the left’s fixation with inequality and the amount of economic damage they’re willing to inflict to achiever greater equality of outcomes.

Here are some introductory passages to explain the goal of the research.

https://danieljmitchell.wordpress.com/2017/11/15/the-imfs-recipe-for-equal-levels-of-decline-and-stagnation/

Posted in Dependency, Economic Issues, Entitlements, government incompetence, Government Regulations, Government Spending, Job loss, Keynesian Economics, Organizational structure, Policy Issues, Poverty, Uncategorized, Wealth

Venezuela and Santa Claus vs Thomas Sowell and the Little Red Hen | International Liberty

In the short run, though, the Venezuelan government gets to play Santa Claus. At least for 2016.

But it won’t have that option in 2017. And because the nation’s kleptocratic government is running out of victims, it’s just a matter of time before the system collapses, at which point the government either gives up power or launches a brutal crackdown.

Hopefully the former.

Though it would remain to be seen whether the leftist thugs who currently hold power are able to escape the country with all the loot they’ve stolen, or whether they get the Ceausescu treatment.

They deserve the latter.

Earlier this year, I borrowed from Dante’s Inferno and created the Five Circles of Statist Hell. At the time, I suggested that Venezuela was on the cusp of moving from the third circle (̶…

Source: Venezuela and Santa Claus vs Thomas Sowell and the Little Red Hen | International Liberty