If your libertarian love cares more about free markets than flowers, share these valentines with them to say “We go together like liberty and freedom.” ❤️
Married 68 years, free market economists Rose and Milton Friedman (recipient of the 1976 Nobel Prize for Economic Science) were not just skilled economists who cared about kids, they were a charming couple who will long be remembered.
Women’s empowerment in many developing countries is in its early phases, but the right policies can set women everywhere on a path toward the same prosperity and freedom enjoyed by women in today’s advanced countries.
The report builds on the famous wager between biologist Paul Ehrlich and economist and former Cato Senior Fellow Julian Simon on the effect of population growth on the Earth’s resources. While Ehrlich warned that population growth could deplete resources and lead to global catastrophe, Simon saw humans as the “ultimate resource” who could innovate their way out of such shortages. The Ehrlich-Simon wager tracked the real price of a basket of five raw materials between 1980 and 1990, finding as Simon hypothesized that all measured commodities decreased in price by an average of 57.6 percent, despite a population increase of 873 million.
In addition, the authors develop the concept of price elasticity of population (PEP), which allows them to estimate the effect of population growth on the availability of resources. Over the time period studied the population grew from 4.46 billion to 7.55 billion, a 69.3% increase. The PEP indicates that the time-price of the basket of commodities declined by 0.934% for every 1% of increase in population. Every additional human being born on our planet appears to make resources proportionally more plentiful for the rest of us.
The world is a closed system in the way that a piano is a closed system. The instrument has only 88 notes, but those notes can be played in a nearly infinite variety of ways. The same applies to our planet. The Earth’s atoms may be fixed, but the possible combinations of those atoms are infinite. What matters, then, is not the physical limits of our planet, but human freedom to experiment and reimagine the use of resources that we have.
For nearly 250 years, the United States has recovered from enormous economic and political shocks, including the Civil War, two World Wars, the Great Depression, and the high inflation and oil crises of the 1970s. Following each of these events, the U.S. economy returned to its previous economic trend.
Amazon has chosen New York City and Arlington, Virginia, for new corporate headquarters after the cities ponied up more than $2 billion in subsidies to the retail giant.
Workers in the two cities will be winners as labor demand gets boosted, but business subsidies make losers of taxpayers, other businesses and good governance.
Fairness.Subsidies give Amazon an unfair edge other tech firms in New York City and Northern Virginia.
Alternatives.New York and Virginia would have generated more durable growth by cutting business taxes across the board by $2 billion. That would have boosted investment by many businesses, and thus created more balanced prosperity.
Diversity. Industry clusters such as Silicon Valley are successful not because they have big companies, but because they have a start-up culture that nurtures growth companies with venture capital. Rather than favoring big companies, state and local politicians would better spur growth by reducing tax and regulatory barriers to spawn a diversity of new companies.
Corruption. Allowing politicians to hand-out business subsidies at their discretion generates corruption because the hand-outs get swapped for campaign cash and outright bribes.
Bureaucracy. Amazon-style subsidy deals are jobs programs for accountants and lawyers.
Lobbyists. The high-profile Amazon win will inspire more companies to shake down politicians for subsidies.
Dependency.Just as welfare undermines individual productivity, corporate welfare undermines business productivity.
Bad Decisions. Subsidies induce companies to make bad decisions that backfire.
Politics. High-profile subsidy deals are politically risky.
Priorities. State and local governments face serious problems that may sink their economies in coming years such as large unfunded pension costs. They should fix those problems rather than trying to micromanage the economy.
Rather than subsidizing big businesses, the states should aim to create a diverse business ecosystem — an Amazon, if you will — by cutting taxes and regulations for all types of investment. If states adopt low tax rates and repeal unneeded regulations on zoning, licensing, and other activities, growth will take care of itself.
“Refugees have killed fewer Americans than duck face! This isn’t just cherrypicked liberal, snowflake data. According to the Cato Institute, a libertarian think tank, the chances of you being killed by a refugee terrorist are one in three point six BILLION. It’s not gonna happen.“ — Hasan Minhaj
Of the original 102 Pilgrims who arrived in North America aboard the Mayflower in the fall of 1620, only about half survived to celebrate the first Thanksgiving, in November 1621. The rest perished through starvation and lack of shelter. The survivors gave thanks for a plentiful harvest. And good local harvests were vital, for in a world without global commodity markets or effective transport and communications, food shortages often meant starvation.
To better measure educational outcomes, Stan J. Liebowitz, Cato adjunct scholar and Ashbel Smith Professor of Economics at the University of Texas at Dallas (UTD) with Matthew L. Kelly, a graduate student at UTD, compare state test scores for each of three subjects (math, reading, and science), four major ethnic groups (whites, blacks, Hispanics, and Asian/Pacific Islanders) and two grades (fourth and eighth), for a total of 24 potential observations in each state and the District of Columbia. They give each of the 24 tests equal weight and base their ranking on the average of the test scores.
The authors also briefly examine additional factors that affect student performance. They find states with stronger unions tend to get worse academic outcomes. Unions are negatively related to student performance, presumably through opposing the removal of underperforming teachers, opposing merit-based pay, or because of union work rules. Additionally, the authors’ results indicate that having a greater share of students in charter schools is positively related to student achievement.
Although this study constitutes a significant improvement on leading state education rankings, it retains some limitations. There exists substantial variation in education quality within states and disagreement about desired educational outcomes. However, state-level rankings do provide an intuitively pleasing basis for lawmakers and interested citizens to compare state education policies. The authors’ main goal is to provide rankings that more accurately reflect the learning that is taking place by focusing only on academic achievement and disaggregating scores, rather than scoring inputs and state-wide test scores.
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