Opponents of minimum wage laws tend to focus their criticism on one particular adverse consequence: by artificially raising the price of labor, they reduce employment, particularly for the most vulnerable in society.
“Minimum wage laws tragically generate unemployment, especially so among the poorest and least skilled or educated workers,” economist Murray Rothbard wrote in 1978. “Because a minimum wage, of course, does not guarantee any worker’s employment; it only prohibits, by force of law, anyone from being hired at the wage which would pay his employer to hire him.
Though some economists, such as Paul Krugman, reject Rothbard’s claim, a recent study found the overwhelming body of academic research supports the idea that minimum wage laws increase unemployment.
The Chinese government has carried out a massive population control campaign since the 1970s with the hope that it would generate economic prosperity. The government unremorsefully forced women to receive abortions, pressured or forced millions of women to be sterilized, and punished families with multiple children with debilitating fines. More than 300 million children were aborted under China’s one-child policy.
Last week, the Chinese government ended the two-child policy, which had been in effect since 2016, and instead enacted a three-child policy. The new policy is essentially an admission that the Chinese Communist Party’s heinous population control policies will not give it the riches it had hoped for. Instead, the population control program will deliver a demographic disaster, which will ravage the country’s economy for generations.
Many economists recognize that population control never improved China’s economy — that was the result of increased freedom in the marketplace and foreign investment. And the Malthusian crisis the government was so desperately trying to avoid with population control was an entirely false specter.
Inflation is up 4.92 percent the past 12 months as of May, the most since July 2008’s 5.5 percent, according to data compiled by the Bureau of Labor Statistics, amid a torrent of trillions of dollars of government spending, Federal Reserve money printing and a weakening dollar combined with the continued economic rebound led by reopening businesses from the 2020 Covid lockdowns.
The past three months alone, inflation has grown at an accelerated rate of 2 percent combined. If that trend were to hold up for the rest of the year, inflation would come closer to 8 percent.
In the month of May, price jumps in fuel oil at 2.1 percent and piped gas service at 1.7 percent offset a 0.7 percent drop in gasoline prices. In addition, new car prices grew 1.6 percent. Used cars and trucks grew at 7.3 percent again after a 10 percent jump in April. Apparel jumped 1.2 percent. And transportation services grew 1.5 percent after a 2.9 percent jump in April.
Increased inflation could ultimately be a net positive for the U.S. economy and large government spending won’t overheat the economy, Treasury Secretary Janet Yellen told Bloomberg.
Treasury Secretary Janet Yellen, who previously chaired the Federal Reserve, said the central bank has been more concerned about inflation levels that are too low, according to Bloomberg. Increasing consumer prices could signal a return to normal, she said.
“We’ve been fighting inflation that’s too low and interest rates that are too low now for a decade,” Yellen told Bloomberg in an interview Sunday.
Taxpayers are coming to Arizona from other states by the tens of thousands and bringing billions of dollars in annual earnings with them.
The Internal Revenue Service released its annual migration statistics, a record of address changes by filers and their dependents between tax years. The data released in late May reflects changes from the 2018-2019 tax years, which symbolize moves that occurred between 2017 and 2018. Nationwide, 8 million people relocated to either another state or county.
Arizona gained 218,736 new taxpayers in that time. Having lost 152,769, that’s a net gain of 65,967 exemptions from one tax year to the next. That’s nearly 1,000 more than the previous tax year.
Americans in the first quarter of 2021 continued their 2020 pattern of moving from expensive, densely populated areas to warmer, more tax-affordable states, according to a new study from Updater Technologies.
Updater Technologies is an online platform that allows people to use a centralized hub for moving, including finding a moving company, connecting internet and utility services and updating their address. The company says the inbound and outbound data it uses is more reliable than tabulating mail forwarding forms because it captures fully completed permanent moves in real time. It also indexes cities and states based on population, since using raw numbers would skew toward the most populated areas based on sheer volume.
Out of roughly 300,000 household moves during the first quarter, only 16 states had a greater percentage of inbound moves than outbound: Nevada, South Carolina, Tennessee, Arizona, Florida, Texas, North Carolina, Colorado, Georgia and Maine.
California residents of all ages and incomes are leaving for more tax friendly climates, and they’re taking billions of dollars in annual income with them.
The Internal Revenue Service recently released its latest taxpayer migration figures from tax years 2018 and 2019. They reflect migratory taxpayers who had filed in a different state or county between 2017 and 2018, of which 8 million did in that timespan.
California, the nation’s most-populous state, lost more tax filers and dependents on net than any other state.
The U.S. Chamber of Commerce characterized the worker shortage as a crisis that is hurting businesses of all sizes and slowing the nation’s economic recovery.
The biggest challenge U.S. businesses currently face is the lack of qualified workers to fill open jobs, according to the Chamber of Commerce’s America Works Report released Tuesday morning. The national Worker Availability Ratio (WAR) — or ratio of number of available workers to number of available jobs — has dropped over the last several months, the report found.
The current WAR is 1.4, meaning for every job opening there are one or two workers available, according to the America Works Report. The historical WAR average over the last 20 years is 2.8.
Missouri Treasurer Scott Fitzpatrick and 14 other Republican state treasurers are questioning President Joe Biden’s administration pressuring of U.S. banks and financial institutions to not lend to or invest in fossil fuel companies.
The group of chief financial officers sent a letter to presidential climate envoy John Kerry this week expressing concern about a reported strategy to eliminate the coal, oil and natural gas industries by cutting off loans or investments.
“While the pursuit of more renewable sources of energy is a noble cause, the fact is that fossil fuels remain critical to our country and the entire world,” Fitzpatrick said in a statement. “The Biden Administration’s failure to acknowledge this will result in increased costs for consumers and businesses. An energy independent America is vital for national security and strengthens our economy which impacts all Americans – especially our poorest citizens who feel rising prices at the gas pump and the checkout line most. Attempts to pressure financial institutions to cut off the fossil fuel industry amounts to nothing less than an abuse of power by the federal government and should not be tolerated by states.”
Relative to the national trend, job searches temporarily increased in states that have announced they will no longer offer the pandemic-related federal unemployment boost, an economic report showed.
In states that are withdrawing from the federal unemployment program, interest in job postings increased 5%, according to the report released Thursday by job listings site Indeed. The increase was relative to a national average recorded during the final two weeks of April, before Republican governors began canceling the federal benefit.
“In May, job search activity on Indeed increased, relative to the national trend, in states that announced they would end federal [unemployment] benefits prematurely,” the Indeed report said.
In the face of the Far Left’s attempts to rewrite American history through the now-discredited 1619 Project and Critical Race Theory, Republicans and conservatives must reclaim the key dates and events in American history and there is no better place to start than Memorial Day 2021.
Memorial Day was created not as a “holiday” or an excuse for corporate merchants to advertise sales, but as a solemn commemoration of the dead of both sides in the American Civil War.
In that context Memorial Day commemorates a number of constitutional conservative values, not the least of which is the inviolability of the Constitution itself.
As President Joe Biden promotes his several trillion dollars in proposed federal spending, Republicans and small businesses are raising the alarm, arguing the taxes needed to pay for those spending plans are a threat to the economy.
The House Ways and Means Committee met Thursday to discuss infrastructure development and in particular the impact of proposed tax increases to pay for it. Rep. Kevin Brady, R-Texas, the ranking member on the committee, argued that only 7% of Biden’s proposed infrastructure bill goes to infrastructure and that raising taxes would incentivize employers to take jobs overseas.
“As bad as the wasteful spending is, worse yet, it’s poisoned with crippling tax increases that sabotage America’s jobs recovery, hurts working families and Main Street businesses, and drives U.S. jobs overseas,” Brady said. “We cannot fund infrastructure on the backs of American workers.”
Congressional Republicans grabbed headlines this week after releasing an aggressive budget they say would cut taxes and spending, but key measures in the plan also would address one of the country’s most serious economic problems.
The House’s Republican Study Committee released a budget that lays out several measures to deal with inflation, a growing concern among economists after the latest federal data showed a spike in consumer prices. Notably, the index for used cars and trucks rose 10%, the largest one-month increase since BLS began recording the data in 1953. Food and energy costs rose 0.9% in the month of April, prescription drugs rose 0.5%, and gasoline rose 1.4% during the same month. The energy cost index rose 25% in the previous 12 months.
Republicans on the committee say their plan would address concerns over inflation by balancing the budget within five years, thereby eliminating the need to monetize debt, a process where the federal government prints money to make payments on what it owes. The national debt has soared to more than $28 trillion and is expected to continue climbing under President Joe Biden’s new spending plans.
Massive government spending has decreased the value of the American dollar and triggered increased consumer prices, which economic experts said will only get worse.
Americans will continue to see higher prices across the board, from food and gasoline to home appliances and cars, as the federal government continues to propose more stimulus into the economy without an adequate plan to pay for it, according to several experts. Even if the government doesn’t pass legislation increasing taxes, higher prices ultimately amount to an “inflation tax,” some of the experts said.
“Over the past few months, we have seen an inflation rate that is much higher than where we’ve become accustomed to,” Heritage Foundation research fellow Joel Griffith told the Daily Caller News Foundation. “When we are going to the grocery store, going to the gas station, building our new home, we’re noticing that prices are really accelerating at a much faster clip than what we’re used to.”
Georgia Gov. Brian Kemp extended the state’s temporary suspension of the fuel tax through May 22 as Colonial Pipeline works to become fully operational after a cyberattack.
Kemp issued an executive order Monday that suspended the gas tax, increased weight limits for trucks transporting fuel and prohibited price gouging. The order was set to expire Saturday before Kemp extended it Friday.
“While Colonial Pipeline is now operational, the company has informed the public that it will be a few days until full service is available statewide,” Kemp said in a statement. “This executive order will ensure fuel supply chains have every resource needed to deliver gas quickly and safely, and that Georgians aren’t hit with state gas taxes at the pump during this shortage. I continue to ask Georgians to only purchase the fuel they need for essential travel through the upcoming weekend.”
E-mobility charging systems producer Heliox is establishing its North American headquarters in Atlanta, creating more than 70 clean-energy jobs, Georgia Gov. Brian Kemp’s office said.
Netherlands-based Heliox makes fast-charging systems for electric vehicles. It has installed more than 1,600 fast-charging points worldwide.
The headquarters is expected to open June 1 and will include a campus for research and development and corporate offic
More children are likely to have increased access to educational options after state legislators across the U.S. advanced a slew of bills this year expanding school choice, according to several state-by-state surveys.
“This is a banner year for the educational choice movement. Hundreds of thousands of children nationwide will now have greater access to educational opportunities,” Jason Bedrick, director of policy at Ed Choice, a national nonprofit organization that promotes state-based educational choice programs, told The Center Square.
At least 50 school choice bills have been introduced in 30 states so far, designed to create or expand vouchers, tax-credit scholarships and education savings accounts, among other measures.
Along with a working vaccine, Joe Biden inherited a V-shaped economic recovery, but he is now planting the seeds of its destruction. Inflation, federal deficits, high taxes, incentives for workers to stay home, and incentives to avoid investment – they’re all coming back. Together, these elements create the perfect brew for a Lyndon Johnson-style stagflation. If Biden and the Democrats so quickly wreck the good economic path they were given, it will be one of the worst examples of government malpractice in U.S. economic history.
In the first, dark days of the COVID-19 national economic shutdown last spring, there was a clear need for major stimulus. Both parties united to pass an effective and much-needed response.
The U.S. gross domestic product saw a 33.4% surge in the July-September third quarter of 2020, after plunging 31.4% in the April-June second quarter. The economy continued to grow at a 4% rate in the fourth quarter, and the stock market (despite COVID) ended 2020 with the S&P 500 index up 16% for the year as a whole.
President Joe Biden touted a key part of his education initiative Monday, pushing for two years of free community college nationwide, but some critics question the long-term efficacy of his plan.
Biden spoke at Tidewater Community College in Norfolk, Virginia, to promote his proposal, which would provide, among other things, $109 billion for two years of tuition-free community college.
“Do we want to give the wealthiest people in America another tax cut, or do you want to give every high school graduate the ability to earn a community college degree?” Biden asked during his speech, arguing that 12 years of schooling is not long enough in the modern economy. “That’s why the American Families Plan guarantees four additional years of public education for every person in America – two years of universal, high-quality pre-school and two years of free community college.”
Rising Republican star U.S. Rep. Josh Hawley, R-Mo., is sponsoring a new measure that would give unprecedented tax cuts to parents with children, and now he is saying his bill is on the front line of the nation’s “culture war.”
The plan in question would give a fully refundable tax credit of $12,000 for married parents and $6,000 for single parents who have children under the age of 13.
“Starting a family and raising children should not be a privilege only reserved for the wealthy,” Hawley said. “Millions of working people want to start a family and would like to care for their children at home, but current policies do not respect these preferences. American families should be supported, no matter how they choose to care for their kids.”
A Chinese-born chemist who worked for Coca-Cola was found guilty Thursday of multiple spying-related charges including economic espionage and stealing trade secrets.
Xiaorong You, a Chinese-born American citizen, stole trade secrets related to the development of the bisphenol-A-free (BPA-free) coating found within soda cans and used it to start a new company in China, which subsequently received millions of dollars from the Chinese government in grants, the Department of Justice announced Thursday. The BPA-free technology trade secrets that You stole was worth almost $120 million.
Documents and evidence presented during You’s 12-day trial showed that she intended to benefit the Chinese Communist Party, the DOJ said. Dow Chemical, PPG Industries, Sherwin Williams and other major U.S. chemical corporations had developed the BPA-free technology that You stole.
President Joe Biden hosted a virtual climate summit with dozens of world leaders Thursday, the same day the White House released a set of aggressive climate goals. Critics say the plan could jeopardize the economy at a time it is recovering from record-breaking unemployment because of the pandemic and governments’ response to it.
First among those priorities is a pledge to cut U.S. greenhouse gas emissions in half by the year 2030.
“The United States is not waiting, the costs of delay are too great, and our nation is resolved to act now,” the White House said in a statement. “Climate change poses an existential threat, but responding to this threat offers an opportunity to support good-paying, union jobs, strengthen America’s working communities, protect public health, and advance environmental justice.”
A group of Republican U.S. senators have unveiled a $568 billion plan that would look to rebuild and expand infrastructure nationwide and counter a more expensive proposal by President Joe Biden.
The GOP plan includes $299 billion for roads and bridges, $61 billion for public transit systems and $65 billion for broadband infrastructure. Also included in the plan is $20 billion for rail, $35 billion for drinking water and wastewater, $13 billion for safety, $17 billion in ports and inland waterways, $44 billion for airports and $14 billion for water storage.
Emphasized in the bill is the expediting of projects through regulatory processes and several measures to minimize new spending. The plan calls for repurposing federal COVID-19 relief funds that have remained unused, along with ensuring the federal debt is not increased.
In 2019, Florida homeowners accounted for 8.16 percent of the nation’s property insurance claims, but more than 76 percent of property insurance lawsuits lodged against insurers.
Pointing to this “disparity,” Florida Insurance Commissioner David Altmaier in a five-page April 2 letter to House Commerce Committee Chair Rep. Blaise Ingoglia, R-Spring Hill, outlined four proposals to reduce property insurance litigation.
Insurers cite rampant litigation, ballooning reinsurance costs, “loss creep” from 2017-18 hurricanes and coastal flooding as a “perform storm” of coalescing factors leading to double-digit property insurance rate hikes that Florida businesses and 6.2 million homeowners are seeing or will see when renewing policies.
An estimated 46 million people — or 18% of the country — would be unable to pay for health care if they needed it today, a recent poll conducted by Gallup and West Health found.
In another survey by the Texas Public Policy Foundation, the majority of hospitals in the U.S. have yet to comply with a transparency ruling implemented this year that would help patients shop around for the most affordable prices.
Gallup’s findings are based on a poll conducted between February 15 and 21 among 3,753 adults with a margin of error of 2%.
The number of Americans filing new unemployment claims increased to 719,000 last week, even as the economy continues to slowly recover from the coronavirus pandemic, according to the Department of Labor.
The Bureau of Labor and Statistics figure released Thursday represented an increase in the number of new jobless claims compared to the week ending March 20, when 658,000 new jobless claims were reported. That number was revised down from the 684,000 jobless claims initially reported last week.
Roughly 18.2 million Americans continue to collect unemployment benefits, according to the report.
The Georgia General Assembly has approved a $27.2 billion spending plan for the 2022 fiscal year, which starts July 1.
The Senate and House agreed to spend more money on health care, education, transportation, state positions, internet access and economic initiatives.
The House approved the measure, 148-21, late Wednesday night after it cleared the Senate unanimously, 52-0. Lawmakers now must send the proposal for state spending through June 30, 2022, to Gov. Brian Kemp for consideration.
Red states are leading economic growth in the U.S., a new report by the U. S. Commerce Department shows, with South Dakota, Texas and Utah reporting the highest growth.
The report is based on 2020 fourth quarter gross domestic product (GDP) data and February 2021 unemployment rates.
Real GDP increased in all 50 states and the District of Columbia in the fourth quarter of 2020. Real GDP for the U.S. as a whole increased at an annual rate of 4.3%. The percent change in real GDP in the fourth quarter ranged from 9.9% in South Dakota to 1.2% in the District of Columbia.
President Joe Biden said Thursday night that he is directing U.S. states to open COVID-19 vaccinations to all American adults by May 1 in an effort to more quickly reopen the country and prop up the staggering U.S. economy.
“To do this we’re going to go from a million shots a day … to 2 million shots a day,” he said.
In most U.S. states currently, only older Americans, front-line workers and those with pre-existing conditions are eligible, though getting scheduled for a first dose has been problematic in many states even for the most at-risk.
President Biden’s $1.9 trillion “American Rescue Plan” could soon become law.
The budget-busting legislation, sold as emergency COVID response and “stimulus,” passed the Senate over the weekend. But even the liberal-leaning fact-checking website PolitiFact is pointing out that almost all of the bill’s spending is unrelated to the health effects of COVID-19.
“Total spending directly on COVID-19’s health impacts ranges from $100 billion to $160 billion,” fact-checker Jon Greenberg writes. “At the high end, direct COVID-19 spending represents about 8.5% of the bill’s $1.9 trillion cost.”
Last summer, millions of dollars in taxpayer money were spent in response to protests that turned violent throughout Ohio. A bill proposed in the Ohio Senate looks to make sure those responsible will pay for it.
Senate Bill 41, currently being discussed by the Senate Judiciary Committee, calls for restitution from those who are convicted of property damage during riots, including vandalism. The restitution would pay the expenses of police and emergency crews who have to respond to riots. The bill also allows the government to take possession of any property left behind by those who end up convicted.
State Senator Tim Schaffer, R-Lancaster, is sponsoring the bill. Lou Tobin, the Executive Director of the Ohio Prosecuting Attorneys Association, offered his support before the committee recently.
America’s economic freedom ranking has fallen to an all-time low, according to The Heritage Foundation’s 2021 Index of Economic Freedom.
The United States fell three places since last year and now ranks 20th in the world among countries evaluated, with an economic freedom score of 74.8 out of 100.
The 27th annual Index of Economic Freedom was released Thursday during a Heritage virtual event featuring Charles Payne, host of Fox Business’ “Making Money With Charles Payne.”
At least 13.9 million of the nation’s small businesses are at serious risk of shuttering their doors by April 1, a recent industry report found.
Forty-four percent of the country’s 31.7 million small businesses are at risk of closing by the end of the first quarter, according to small business group Alignable. Small businesses on the brink of closure expect to earn less revenue than their owners estimate is needed to stay afloat.
The federal Centers for Medicare & Medicaid Services (CMS) could decide in a matter of weeks whether it will remove the work or activity requirement in Georgia’s partial Medicaid expansion plan.
The CMS said the plan, which was approved by former President Donald Trump’s administration in October, does not “promote the objectives of the Medicaid program” and would be impossible to accomplish because of the COVID-19 pandemic.
Georgia will provide $552 million in rent and utility assistance to landlords and tenants, Gov. Brian Kemp announced Friday.
The federal government provided the COVID-19-related aid through the Emergency Rental Assistance Program, and it will be paid directly to landlords and utility companies.
In another devastating blow from 2020, we sadly suffered the loss of Professor Walter E. Williams, a distinguished scholar of economics at George Mason University. While his nationally syndicated Townhall columns and stints on the Rush Limbaugh Show made him a household name, I knew him personally as my graduate microeconomics professor.