Revisiting the Laffer Curve

Among the claims made in favor of the Tax Cuts and Jobs Act of 2017 was that the resulting tax cuts would pay for themselves. Thus the Laffer curve returned briefly to prominence, after having been deployed to support the Reagan and Bush tax cuts of 1981 and 2001.

The idea behind the Laffer curve is straightforward. Taxes inhibit economic activity, that is, the generation of output and income. Tax-rate reductions therefore encourage work, which yields higher incomes. Higher incomes mean that there is more saving from which to finance growth-producing capital investment. Lower tax rates also make investment more attractive by increasing the expected return on capital investments. Lower tax rates therefore stimulate economic output by encouraging work and investment (supply-side economics). Under the right conditions, lower tax rates may generate enough additional income to yield an increase in tax revenue.

I believe that there are conditions under which the Laffer curve works as advertised. But so what? The Laffer curve focuses attention on the wrong economic variable: tax revenue. The economic variables that really matter — or that should matter — are the real rate of growth and the income available to Americans after taxes. More (real) economic growth means higher (real) income, across the board. More government spending means lower (real) income; the Keynesian multiplier is a cruel myth.

A new Laffer curve is in order, one that focuses on the effects of taxation on economic growth, and thus on the aggregate output of products and services available to consumers.

Let us begin at the beginning, with this depiction of the Laffer curve (via Forbes):

This is an unusually sophisticated depiction of the curve, in that it shows a growth-maximizing tax rate which is lower than the revenue-maximizing rate. It also shows that the growth-maximizing rate is greater than zero, for a good reason.

With real taxes (i.e., government spending) at zero or close to it, the rule of law would break down and the economy would be a shambles. But government spending above that required to maintain the rule of law (i.e., adequate policing, administration of justice, and national defense) interferes with the efficient operation of markets, both directly (by pulling resources out of productive use) and indirectly (by burdensome regulation financed by taxes).

Thus a tax rate higher than that required to sustain the rule of law1 leads to a reduction in the rate of (real) economic growth because of disincentives to work and invest. A reduction in the rate of growth pushes GDP below its potential level. Further, the effect is cumulative. A reduction in GDP means a reduction in investment, which means a reduction in future GDP, and on and on.

I will quantify the Laffer curve in two steps. First, I will estimate the tax rate at which revenue is maximized, taking the simplistic view that changes in the tax rate do not change the rate of economic growth. I will draw on Christina D. Romer and David H. Romer’s “The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks” (American Economic Review, June 2010, pp. 763-801).

The Romers estimate the effects of exogenous changes in taxes on GDP. (“Exogenous” meaning tax cuts aimed at stimulating the economy, as opposed, for example, to tax increases triggered by economic growth.) Here is their key finding:

Figure 4 summarizes the estimates by showing the implied effect of a tax increase of one percent of GDP on the path of real GDP (in logarithms), together with the one-standard-error bands. The effect is steadily down, first slowly and then more rapidly, finally leveling off after ten quarters. The estimated maximum impact is a fall in output of 3.0 percent. This estimate is overwhelmingly significant (t = –3.5). The two-standard-error confidence interval is (–4.7%,–1.3%). In short, tax increases appear to have a very large, sustained, and highly significant negative impact on output. Since most of our exogenous tax changes are in fact reductions, the more intuitive way to express this result is that tax cuts have very large and persistent positive output effects. [pp. 781-2]

The Romers assess the effects of tax cuts over a period of only 12 quarters (3 years). Some of the resulting growth in GDP during that period takes the form of greater spending on capital investments, the payoff from which usually takes more than 3 years to realize. So a tax cut of 1 percent of GDP yields more than a 3-percent rise in GDP over the longer run. But let’s keep it simple and use the relationship obtained by the Romers: a 1-percent tax cut (as a percentage of GDP) results in a 3-percent rise in GDP.

With that number in hand, and knowing the effective tax rate (33 percent of GDP in 20172), it is then easy to compute the short-run effects of changes in the effective tax rate on GDP, after-tax GDP, and tax revenue:


Effective tax revenue represents the dollar amount extracted from the economy through government spending at the stated percentage of GDP. (Spending includes transfer payments, which take from those who produce and give to those who do not.) Effective tax rate represents the dollar amount extracted from the economy, divided by GDP at the given tax rate. (GDP is based on the Romers’ estimate of the marginal effect of a change in the tax rate.)

It is a coincidence that tax revenue is maximized at the current (2017) effective tax rate of 33 percent. The coincidence occurs because, according to the Romers, every $1 change in tax revenue (or government spending that draws resources from the real economy) yields a $3 change in GDP, at the margin. If the marginal rate of return were lower than 3:1, the revenue-maximizing rate would be greater than 33 percent. If the marginal rate of return were higher than 3:1, the revenue-maximizing rate would be less than 33 percent.

In any event, the focus on tax revenue is entirely misplaced. What really matters, given that the prosperity of Americans is (or should be) of paramount interest, is GDP and especially after-tax GDP. Both would rise markedly in response to marginal cuts in real taxes (i.e., government spending). Democrats don’t want to hear that, of course, because they want government to decide how Americans spend the money that they earn. The idea that a far richer America would need far less government — subsidies, nanny-state regulations, etc. — frightens them.

It gets better (or worse, if you’re a big-government fan) when looking at the long-run effects of lower government spending on the rate of growth. I am speaking of the Rahn curve, which I estimate here. Holding other things the same, every percentage-point reduction in the real tax rate (government spending as a fraction of GDP) means an increase of 0.35 percentage point in the rate of real GDP growth. This is a long-run relationship because it takes time to convert some of the tax reduction to investment, and then to reap the additional output generated by the additional investment. It also takes time for workers to respond to the incentive of lower taxes by adding to their skills, working harder, and working in more productive jobs.

This graph depicts the long-run effects of changes in the effective tax rate, taking into account changes in the real growth rate from a base of 2.8 percent (the year-over-year rate for the most recent fiscal quarter):

Note that the same real tax revenue would be realized at an effective tax rate of 13 percent of GDP. At that rate, GDP would rise to 2.5 times its 2017 value (instead of 1.6 times as shown in Figure 1), and after-tax GDP would rise to 3.3 times its 2017 value (instead of 2.1 times as shown in Figure 1).

The real Laffer curve — the one that people ought to pay attention to — is the Rahn curve. Holding everything else constant, here is the relationship between the real growth rate and the effective tax rate:

Laffer revisited_3

At the current effective tax rate — 33 percent of GDP — the economy is limping along at about one-third of its potential growth. That is actually good news, inasmuch as the real growth rate dipped perilously close to 1 percent several times during the Obama administration, even after the official end of the Great Recession.

But it will take many years of spending cuts (relative to GDP, at least) and deregulation to push growth back to where it was in the decades immediately after World War II. Five percent isn’t out of the question.
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1. Total government spending, when transfer payments were negligible, amounted to between 5 and 10 percent of GDP between the Civil War and the Great Depression (Series F216-225, “Percent Distribution of National Income or Aggregate Payments, by Industry, in Current Prices: 1869-1968,” in Chapter F, National Income and Wealth, Historical Statistics of the United States, Colonial Times to 1970: Part 1). The cost of an adequate defense is a lot higher than it was in those relatively innocent times. Defense spending now accounts for about 3.5 percent of GDP. An increase to 5 percent wouldn’t render the U.S. invulnerable, but it would do a lot to deter potential adversaries. So at 10 percent of GDP, government spending on policing, the administration of justice, and defense — and nothing else — should be more than adequate to sustain the rule of law.

2. The effective tax rate on GDP in 2017 was 33.4 percent. That number represents total government government expenditures (line 37 of BEA Table 3.1), divided GDP (line 1 of BEA Table 1.15). The nominal tax rate on GDP was 30 percent; that is, government receipts (line 34 of BEA Table 3.1) accounted for 30 percent of GDP. (The BEA tables are accessible here.) I use the effective tax rate in this analysis because it truly represents the direct costs levied on the economy by government. (The indirect cost of regulatory activity adds about $2 trillion, bringing the total effective tax to 44 percent.)

“This Has to Stop”

That’s a typical reaction to the latest (but, sadly, not last) mass shooting at a school (or anywhere else). What is the point of saying “this has to stop”? To express one’s outrage? It’s safe to assume that anyone who has an ounce of feeling for other people is outraged by mass shootings.

No, the point of it is virtue-signaling. But that’s all there is to it. Where’s the beef — the “solution” to the problem? Is it to tighten laws about access to guns, when the already tight laws aren’t being enforced well enough, and couldn’t be given the imperfections in human institutions? Is it to stop making “assault rifles” and large magazines when there are already so many in circulation that it won’t matter if no more are made. (Will there be an equally ridiculous and futile ban on the manufacture of knives and materials that can be made to explode?) Is the “solution” to clamp down on gun and ammunition sellers, period, when there are so many of them operating in the black market that it wouldn’t deter anyone who is serious about committing crimes?

Or is the “solution” to confiscate all firearms and ammunition (when they are volunteered or readily found), leaving law-abiding citizens at the mercy of those who scoff at the law? Yes, that must be it. Because it would be possible to confiscate millions of firearms and hundreds of millions of rounds of ammunition. And the resulting piles of guns and bullets would make an impressive showing on TV and in news photos. But it would be all for show. Except that the law-abiding Americans who turned in their guns and ammo would thenceforth be defenseless against the army of thugs and criminals that would remain at large.

What has to stop is the cultural erosion that has made almost routine something that was rare more than 50 years ago: mass murder. Mass murder isn’t happening because there are “too many” guns out there; America has been well armed since before the Revolutionary War. It’s happening because an increasing fraction of the population lacks a strong conscience, upbringing in an intact family, and strict discipline.


Related reading:
Gilbert T. Sewall, “How We Defined Deviancy Down and Got a Culture of Violence“, The American Conservative, May 22, 2018
Brandon J. Weichert, “Maybe America Should Ban Guns“, The American Spectator, May 24, 2018 (Weichert’s real target is moral decay, which the left has encouraged and abetted.)


Related posts:
Mass Murder: Reaping What Was Sown
Utilitarianism (and Gun Control) vs. Liberty

More Evidence against College for Everyone

Here’s a datum:

My eldest grandchild is 23 years old. He’s a bright, articulate lad, but far more interested in doing than in reading. He has been working since he graduated from (home) high school, but not without a purpose in mind. Last fall, he enrolled in a course to learn a trade that he has always wanted to pursue. He passed the course with flying colors, quickly got a good job as a result, and from that job moved into the kind of job that he has long sought. He is happy, and I am happy for him.

But that’s not all. His job, though technically demanding, is “blue collar”. When I was his age, freshly equipped with a B.A. and some graduate school, I moved into the world of “white collar” work as an entry-level analyst at a government-sponsored think-tank in the D.C. area. Hot stuff, right?

Well, converting my starting salary to an hourly rate and adjusting it for inflation, I was making just about what my grandson is making now. But since graduating from high school he has been earning and saving money instead of cluttering a college campus. And he owns a pickup truck. When I started at the think-tank, I might have had a few hundred dollars in a checking account. And I couldn’t afford a car until I had worked for several months.

Will my grandson eventually make as money as I was able to make by feeding at the public trough? Given his ambition and foresight there’s no reason he can’t make a lot more than I did — and by doing things that people are actually willing to pay for instead of siphoning the U.S. Treasury.

College not only isn’t for everyone, it’s for almost no one. As I said seven years ago,

[w]hen I entered college [in 1958], I was among the 28 percent of high-school graduates then attending college. It was evident to me that about half of my college classmates didn’t belong in an institution of higher learning. Despite that, the college-enrollment rate among high-school graduates has since doubled.

Which means that only about one-fourth (or less) of today’s high-school graduates are really college material. That’s not a rap against them. It’s a rap against the insane idea of college for almost everyone. That would be a huge burden on taxpayers, a shameful misdirection of talent, and a massive drain on the economic potential of the nation.


Related posts:
The Higher-Education Bubble
Is College for Everyone?
The Dumbing-Down of Public Schools
College Is for Almost No One
About Those “Underpaid” Teachers

Recommended Reading

Leftism, Political Correctness, and Other Lunacies (Dispatches from the Fifth Circle Book 1)

 

On Liberty: Impossible Dreams, Utopian Schemes (Dispatches from the Fifth Circle Book 2)

 

We the People and Other American Myths (Dispatches from the Fifth Circle Book 3)

 

Americana, Etc.: Language, Literature, Movies, Music, Sports, Nostalgia, Trivia, and a Dash of Humor (Dispatches from the Fifth Circle Book 4)

Trump vs. Obama on Taxes

In January 2013, Congress passed and Barack Obama jubilantly signed what The Wall Street Journal called “the largest tax increase in the past two decades”:

More than three-quarters of American households would see a tax increase from their 2012 tax levels, according to an analysis by the Tax Policy Center, a joint venture of the Brookings Institution and the Urban Institute.

In December 2017, Congress passed and Donald Trump jubilantly signed a bill that cut corporate income taxes and almost every taxpayer’s federal income taxes.

If you take the view taxpayers’ money really belongs to the government — as “liberals” are wont to do — you would have to concede that Mr. Obama was niggardly toward taxpayers, in comparison with Mr. Trump.


Related posts:
Ignorance Abounds
Defending the Offensive

Mass Murder: Reaping What Was Sown

The list of related readings below the text of this post is updated occasionally.

TEXT UPDATED 03/02/08

The history of the United States since the 1960s supports the proposition that the nation is going to hell in a handbasket. And hell includes not just mass shootings, but mass murder by various means.

As Malcolm Pollock points out, in the context of mass shootings,

When I was a boy, all the households around me had a gun or two. We boys used to stack up hay-bales and put targets on them (a charcoal briquette was a favorite choice) to shoot at with a .22. Schools and scout-troops often had rifle ranges; I myself got a marksmanship Merit Badge while at summer camp with the Boy Scouts. I don’t recall being aware of any gun laws at all; you could buy ammo at the general store. (Gun safety was a big deal, though, and kids were taught to handle firearms carefully and respectfully.)

This was the state of normal (non-urban, middle-class, predominantly white) American culture half a century ago. Guns were an unexceptional part of that bygone world, and were easily accessible to all of us (you could order pretty much any gun you liked through the mail, by sending cash in an envelope!). Somehow, though, we hardly ever murdered each other, and mass shootings were very, very rare.

Something has changed, obviously. And it isn’t access to guns.

What is it? Malcolm has answers. As do the many other writers whose articles and posts are also listed below in “related reading”.  Here’s a sample of Andrew Klavan’s analysis:

It was after a school shooting near Spokane last September that Spokane Sheriff Ozzie Knezovich addressed a clutch of reporters:

When I was in high school, every one of those rigs in the high school parking lot had a gun in the gun rack. Why? We went hunting on the way home. None of those guns ever walked into a school, none of those guns ever shot anybody… Did the gun change or did you as a society change? I’ll give you odds it was you as a society. Because you started glorifying cultures of violence. You glorified the gang culture, you glorified games that actually gave you points for raping and killing people. The gun didn’t change, we changed.

It seems clear to me the sheriff was speaking about rap music with its hateful, violent and misogynistic lyrics, and video games like Grand Theft Auto, where you can have sex with a prostitute then strangle her or pull an innocent person out of a car, beat him, then steal his vehicle.

… I don’t argue that there’s a straight line between any specific cultural creation and bad acts. But surely, a culture in which those in authority approve of and argue for things like gangsta rap and GTA — and indeed for the use of violence to silence speech that offends them — well, such a culture becomes a machine for transforming madness into murder….

The left wants to defend gangstas and “transgressive” art and antifa thugs — but when the shooting starts, they blame the guns….

Now the left wants to legitimize disrespect for the flag and for Christianity. They want to ignore the rule of law at the border and silence protests against Islamic ideas that are antithetical to every good thing the west stands for….

For fifteen years and more, I have been complaining that the right is silenced in our culture — blacklisted and excluded and ignored in entertainment, mainstream news outlets, and the universities. But the flip side of that is this: the degradation of our culture is almost entirely a leftist achievement. Over the last fifty years, it’s the left that has assaulted every moral norm and disdained every religious and cultural restraint.

The left owns the dismal tide. They don’t like the results? They’re looking for someone or something to blame? Maybe they should start by hunting up a mirror.

There are other counts that I would add to Klavan’s indictment. Here are some of them:

  • governmental incentives to act irresponsibly, epitomized by the murder of unborn children as a form of after-the-fact birth control, and more widely instituted by the vast expansion of the “social safety net”
  • treatment of bad behavior as an illness (with a resulting reliance on medications), instead of putting a stop to it and punishing it
  • the erosion and distortion of the meaning of justice, beginning with the virtual elimination of the death penalty, continuing on to the failure to put down and punish riots, and culminating in the persecution and prosecution of persons who express the “wrong” opinions
  • governmental encouragement and subsidization of the removal of mothers from the home to the workplace
  • the decline of two-parent homes and the rise of illegitimacy
  • the complicity of government officials who failed to enforce existing laws and actively promoted leniency in their enforcement (see this and this, for example).

It all adds up to more violence than would otherwise have occurred in this country. Mass murder gets a lot of attention because, like the crash of a commercial airliner, it is a dramatic event that claims many lives at once. But even in the worst year on record (1995) the number of deaths in mass murders (180, mostly in the Oklahoma City bombing) accounted for only 8/10 of 1 percent of that year’s deaths by murder and non-negligent manslaughter.

It is therefore entirely reasonable to suggest that mass murder — as a “marginal” phenomenon — is of a piece with violence in America, which increased rapidly after 1960 and has been contained only by dint of massive incarceration. Violence in general and mass-murder in particular flow from the subversion and eradication of civilizing social norms, which began in earnest in the 1960s. The numbers bear me out.

Drawing on Wikipedia, I compiled a list of 317 incidents of mass murder in the United States from the early 1800s through 2017. (I excluded 2018 because it is still early in the year.) My consolidated list encompasses school massacres; familicides; religious, political, or racial crimes; workplace killings; and two miscellaneous categories of rampage killings (here and here). I omitted two incidents that are wrongly included by Wikipedia: the 1944 circus fire in Hartford, Connecticut, and the 2013 fertilizer-plant explosion in West, Texas.

These graphs are derived from the consolidated list of incidents:


The vertical scale is truncated to allow for a better view of the variations in the casualty rate. In 1995, there were 869 casualties in 3 incidents (an average of 290); about 850 of the casualties resulted from the Oklahoma City bombing.

The federal assault weapons ban — really a ban on the manufacture of new weapons of certain kinds — is highlighted because it is often invoked as the kind of measure that should be taken to reduce the incidence of mass murders and the number of casualties they produce. Even Wikipedia — which is notoriously biased toward the left — admits (as of today) that “the ban produced almost no significant results in reducing violent gun crimes and was allowed to expire.”

There is no compelling, contrary evidence in the graphs. The weapons-ban “experiment” was too limited in scope and too-short lived to have had any appreciable effect on mass murder. For one thing, mass-murderers are quite capable of using weapons other than firearms. The years with the three highest casualty rates (second graph) are years in which most of the carnage was caused by arson (1958) and bombing (1995 and 2013).

The most obvious implication of this analysis is found in the upper graph. The incidence of mass murders was generally declining from the early 1900s to the early 1960s. Then all hell broke loose.

I rest my case.


Related reading:
Bill Vallicella, “Deriving Gun Rights from the Right to Life“, Maverick Philosopher, November 10, 2009
Crime Prevention Research Center, “Comparing Murder Rates and Gun Ownership Across Countries“, March 31, 2014
Jayman, “Guns & Violence, Again…“, The Unz Review, June 11, 2014
Malcolm Pollack, “Troubleshooting Gun Violence“, Motus Mentis, July 4, 2015
J. Christian Adams, “Flashback 30 Years: Guns Were in Schools … and Nothing Happened“, PJ Media, February 15, 2018
Dov Fischer, “When Do We Get to Talk About the Other Reasons?“, The American Spectator, February 16, 2018
Andrew Klavan, “The Left Is Reaping the Whirlwind of the Culture They Made“, PJ Media, February 16, 2018
Malcolm Pollack, “Reaping the Whirlwind“, Motus Mentis, February 16, 2018
Susan L.M. Goldberg, “When Will We Have the Guts to Link Fatherlessness to School Shootings?“, PJ Media, February 17, 2018
Steve Chapman, “A Cure for Mass Shootings Doesn’t Exist“, Reason.com, February 18. 2018
Karen Townsend, “Shocker: WaPo Fact Check Agrees with Rubio’s Statement on New Gun Laws“, Hot Air, February 18, 2018
Dave Bohon, “A Common-Sense Strategy for Protecting Schools“, New American, February 19, 2018
Rafael Mangual, “Second, Third, and Fourth Chances — at What Price?“, City Journal, February 20, 2018
Mark Meckler, “Of the 27 Deadliest Mass Shooters, 26 of Them Had One Thing in Common“, Patheos, February 20, 2018
Fred Reed, “Kids: Now and Then“, Fred on Everything, February 21, 2018
Brandon J. Weichert, “Toxic Liberalism Created Nikolas Cruz“, The American Spectator, February 21, 2018
Melissa Mackenzie, “Twenty Reasons Mass Killings Happen“, The American Spectator, February 23, 2018
Daniel Greenfield, “Muslim Terrorists Topped Mass Shootings in 2 Out Of 3 Years“, Frontpage Mag, February 26, 2018
Allie Nicodemo and Lia Petronio, “Schools Are Safer than They Were in the 90s, and School Shootings Are Not More Common than They Used to Be, Researchers Say“, News@Northeastern, February 26, 2018
Lloyd Billingsley, “Enabling Killer Cruz“, Frontpage Magazine, February 27, 2018
Dennis Prager, “Why the Left Opposes Arming Teachers“, American Greatness, February 27, 2018
Brandon J. Weichert, “Our Kids Are Not All Right“, The American Spectator, February 27, 2018
David Kopel, “The History of the ‘Assault Weapon’ Hoax. Part I: The Crime That Started It All“, The Volokh Conspiracy, March 2, 2018
George Neumayr, “Relativistic America: Neither Safe nor Free“, The American Spectator, March 2, 2018
Bruce Heiden, “Utopia, Pacifism, and Guns“, American Greatness, March 3, 2018
Larry Elder, “How Many Lives Are Saved by Guns, and Why Don’t Gun Controllers Care?“, Frontpage Mag, March 6, 2018
Greg Jones, “Political Correctness Is to Blame for Parkland“, The American Spectator, March 6, 2018
Mark Overstreet,” Safety Is Not the Reason Democrats Are Pushing Gun Control“, American Greatness, March 17, 2018


Related posts:
Less Punishment Means More Crime
Why Stop at the Death Penalty?
Free Will, Crime, and Punishment
Poverty, Crime, and Big Government
Crime Revisited
Democracy, Human Nature, and the Future of America
1963: The Year Zero
Society
How Democracy Works
“Cheerful” Thoughts
How Government Subverts Social Norms
Turning Points
The Twilight’s Last Gleaming?
The Opposition and Crime
How America Has Changed
Red-Diaper Babies and Enemies Within
The Vast Left-Wing Conspiracy
The Left and Evergreen State: Reaping What Was Sown
Death of a Nation
Leftism
“Why Can’t We All Just Get Along?”
Scapegoating in Baltimore
As the World Lurches
A Not-So-Stealthy Revolution

Austin Mystery Solved

The City of Austin, the blue boil on the butt of Texas, recently hired a new city manager. The previous city manager, who left for greener pastures 15 months earlier, was a black man.

Austin’s “leaders” (the sneer quotes mean that they’re not my leaders) are nothing if not au courant in politically correct virtue-signaling. But their political correctness stops at the water’s edge of transparency. Austin’s taxpayers were kept in the dark about the candidates being considered for the city manager’s job until near the very end, when two finalists were unveiled:

Two white males. How could it be?

Never fear. Austin’s “leaders” salvaged their reputation for politically correct virtue-signaling by choosing the one on the left, who has a husband. The one on the right is married to a woman who has produced children and is therefore an actual female*. How boring.

And so the day was saved for “diversity” in Austin. But not for diversity of thought, of which there’s precious little here.
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* As opposed to a delusional male who “identifies as” a female, or an impressionable boy-child whose criminally negligent parents have convinced him that he is really a girl. I “identify as” a 6’6″, 250-pound bodybuilder with X-ray vision who is able to leap the Freedom Tower in a single bound and understands the mysteries of the Universe. Alas, what I “identify as” and what I really am are entirely different things.


Related posts:
Driving and Politics (1)
Life in Austin (1)
Life in Austin (2)
Life in Austin (3)
Driving and Politics (2)
AGW in Austin?
Democracy in Austin
AGW in Austin? (II)
The Hypocrisy of “Local Control”
Amazon and Austin

California Dreaming

EDITED 02/15/18

It is my long-held view that States have a constitutional right to secede from the union without the approval of other States or the central government. (See this post, for example.) If the Yes California movement succeeds, the political benefits to the rest of the United States (or at least the conservative parts of it) will be substantial; for example:

The last presidential election in which the GOP candidate won California’s electoral votes was in 1988. There wouldn’t have been a Bush-Gore controversy in 2000 with California out of the picture. And in 2016, Hillary would have lost the nationwide popular-vote tally by 1.4 million, thus putting to rest another baseless claim that the Democrat candidate was “robbed”.

The GOP would hold a bigger majority in the Senate (4 seats instead of 2) and House (74 seats instead of 47), thus enabling Republicans to move national policy to the right with less interference from RINOs.

Illegal immigrants will flock in greater numbers to welcoming California, thus reducing tax burdens and crime rates in Arizona, New Mexico, Texas, and the many States farther north that also absorb illegal immigrants.

According to the Yes California campaign, federal receipts from California are about equal to (perhaps a bit higher than) federal spending in California. Even a slight deficit would be worth it. That could easily be covered by spending cuts that might not otherwise occur because of the California Democrats in Congress.

And even more importantly, as commenter Timoid says, California’s wacky environmentalists wouldn’t be setting policy for the rest of the nation.

Last but best, Nancy Pelosi would no longer be a Congress-critter.

Presidential Approval Ratings: Trump vs. Obama

BHO delivered his second state of the union (SOTU) address in the evening of January 27, 2010. On the morning of that day, BHO’s presidential approval rating at Rasmussen Reports stood at -15 (percentage of likely voters strongly approving minus percentage strongly disapproving).

DJT delivered his second SOTU address in evening of January 30, 2018. On the morning of that day, DJT’s presidential approval rating at Rasmussen Reports also stood at -15.

Here’s what happened to the ratings in the days immediately following the SOTUs:


Rasmussen stopped polling on weekends about three years ago.

DJT’s SOTU bounce arrived more quickly and was stronger than BHOs. Moreover, looking at the big picture — approval ratings by day of presidency, as reported by Rasmussen — DJT’s strong approval rating has been running ahead of BHO’s for more than a month:

Stay tuned for updates in the coming months and years.

Scapegoating in Baltimore

WaPo reports that Baltimore’s police commissioner has been fired:

Baltimore’s mayor on Friday abruptly replaced Police Commissioner Kevin Davis weeks after the city ended 2017 with a record-setting homicide rate and amid increased political pressure to control crime….

The leadership change comes as Davis was overseeing the department during one of its most difficult eras. He was tasked with driving down violent crime that flared to historic levels after a young man’s death in police custody while simultaneously reforming an agency the Justice Department cited for discriminating against black residents.

You can see the problem immediately. Homicide in Baltimore, as in other cities, is mainly a black-on-black crime. But how are you going to police black areas of the city if, in doing so, you’re accused of discriminating against blacks?

As the WaPo story puts it,

Davis was left to balance trying to change a culture of policing the Justice Department called discriminatory while being tough enough on criminals to deliver safe streets.

Officers were not as aggressive as they might ordinarily have been out of fear “they, too, would be arrested for doing their jobs,” said Gene Ryan, a Baltimore police lieutenant who heads the Fraternal Order of Police labor union.

Chuck Wexler, executive director of the Police Executive Research Forum, said the average tenure of a police chief is three or four years but that Davis was “really between a rock and a hard place in trying to implement reform and deal with violent crime.”

“It’s almost like changing two tires on a car at the same time,” Wexler said.

What it’s really like is being expected to do a job without being allowed to use the requisite tools.

Baltimore’s soaring homicide rate is evidence of the Ferguson Effect, which Heather Mac Donald wrote about in “Yes, the Ferguson Effect Is Real” (National Review, September 26, 2016). She was seconded by John Hinderaker (“Violent Crime Jumped in 2015“, Power Line, September 26, 2016), who said:

I don’t know of any potential explanation for the jump last year other than the war on cops, Black Lives Matter, and the Obama administration’s anti-incarceration policies. Expect another increase when the numbers come in for 2016.

And he was right. See, for example, Mark Berman’s “Violent Crimes and Murders Increased for a Second Consecutive Year in 2016, FBI Says” (The Washington Post, September 25, 2017).

I get to the root of the problem in “Crime Revisited”, to which I added “Amen to That” and “Double Amen”. What’s the root of the problem? A certain, violence-prone racial minority, of course, and also under-incarceration. It’s not racism:

Criminologists talk about the race-crime connection behind closed doors, and often in highly guarded language; the topic is a lightning rod for accusations of racial hostility that can be professionally damaging. They avoid discussing even explicitly racist examples of black-on-white crime such as flash-mob assaults, “polar bear hunting,” and the “knockout game.” What criminologists won’t say in public is that black offending differences have existed since data have been collected and that these differences are behind the racial disparities in arrest, prosecution, and incarceration. They also won’t tell you that, despite claims of widespread racial discrimination in the justice system, legal variables—namely, the number of prior arrests and the seriousness of the crime for which the offender has currently been arrested—account for all but a small fraction of the variance in system outcomes. Nor will they tell you the truth about politically correct remedies, such as diversifying police forces, hiring black police chiefs, or training officers in the alleged effects of implicit bias: that these measures won’t reduce racial disparities in crime….

… 50 years of research on the topic have failed to find the smoking gun linking justice-system disparities to racism. Claims to the contrary often manipulate data or ignore them altogether. [John Paul Wright and Matt DeLisis, “What Criminologists Don’t Say, and Why“, City Journal, Summer 2017]

Follow the links — and read and weep.

The Conscience of a Conservative

My heart bleeds for the people of s***hole countries, cities, and neighborhoods. God knows there are enough of the latter two in the U.S. Why is that? Certainly, there are cultural and genetic factors at work. But those have been encouraged and reinforced by governmental acts.

Government — the central government especially — has long been a silent killer of economic opportunity. Jobs are killed by regulation that hinders business formation and expansion and every government program that diverts resources from the private sector.

How bad is it? This bad:

Because of increases in the rate of government spending and the issuance of regulations, the real rate of GDP growth has been halved since the end of World War II.

If GDP had continued to grow at an annual rate of 4 percent from its 1946 level of $1.9 trillion (in chained 2009 dollars), it would have reached $30 trillion in 2016 instead of $17 trillion.

Given the relationship between employment and real GDP, the cost of government policies is huge. There could now be as many as 207 million employed Americans instead of the current number of 156 million*, were it not for the “helpful” big-government policies foisted on hapless Americans by “compassionate” leftist do-gooders (and not a few dupes in center and on the right).

My heart bleeds.


* The relationship between employment and real GDP is as follows:

E = 1204.8Y0.4991

where
E = employment in thousands
Y = real GDP in billions of chained 2009 dollars.

This estimate is based on employment and GDP values for 1948 through 2016, which are available here and here.

An increase in employment from 156 million to 207 million would raise the employment-population ratio from 60 percent to 80 percent, which is well above the post-World War II peak of 65 percent. The real limit is undoubtedly higher than 65 percent, but probably less than 80 percent. In any event, the impoverishing effect of big government is real and huge.

This Is a Test

Scott McKay writes:

Thursday saw a media firestorm erupt over a Washington Post report that amid a White House meeting with several members of Congress working on a compromise having to do with the Obama-era Deferred Action for Childhood Arrivals program, or DACA, President Trump asked why America should have to take in so many immigrants from “s***hole countries” rather than people from places like Norway.

The Post article isn’t exactly the finest example of American journalism, identifying as its source no one actually in the room to confirm what Trump supposedly said but instead naming two anonymous people who were “briefed on the meeting.”

I won’t get into the truth or falsity of the reporting. I suspect that it’s true. And it doesn’t bother me in the least if President Trump characterized some countries as s***holes. They are, and for two very good reasons: the low intelligence of their populations and their anti-libertarian governments (which make the U.S. seem like an anarcho-capitalist’s paradise).

Why are so many people (leftists, that is) upset? Because calling a s***hole a s***hole is a sin against cant and hypocrisy, in which the left specializes.

Here’s the test: If you were forced to live in another country, would you choose Norway or Haiti? Any sensible person — and perhaps even a leftist — would choose Norway.


Related posts:
Ruminations on the Left in America
The Euphemism Conquers All
Superiority
Non-Judgmentalism as Leftist Condescension
Leftist Condescension

“Why Can’t We All Just Get Along?”

That’s how a correspondent characterized an op-ed by Mitch Daniels* that appeared yesterday in the online edition of The Washington Post. Daniels says, in part, that

ours is an era when it seems no one ever confesses to being wrong. Moreover, everyone is so emphatically right that those who disagree are not merely in error but irredeemably so, candidates not for persuasion but for castigation and ostracism….

John Maynard Keynes is frequently credited with the aphorism “When I find I’m wrong, I change my mind. What do you do?” Today, the problem may less be an attitude of stubbornness than that fewer people than ever recognize their mistakes in the first place.

In a well-documented fashion, steady doses of viewpoint reinforcement lead not only to a resistance to alternative positions but also to a more entrenched and passionate way in which thoughts are held and expressed. When those expressions are launched in the impersonal or even anonymous channels of today’s social — or is it antisocial? — media, vitriol often becomes the currency of discourse and second thoughts a form of tribal desertion or defeat. Things people would not say face to face are all too easy to post in bouts of blogger or tweeter one-upmanship.

I doubt that it’s possible to return to the “golden days” of political comity, whenever they were. The U.S. hasn’t come close to attaining a sense of national unity since World War II. And even then, FDR’s popular vote share dropped between 1940 and 1944, and the GOP picked up House and Senate seats in 1942 and 1944. At any rate, things have gotten a lot worse since then — there’s no doubt about it.

How might they get better? Someone — an extremely influential someone — has to make the first move, and be willing to lose on an important issue. And he has to bring influential allies with him, or else his move will likely be nullified by a stiffening of his side’s position on the issue.

I submit that the stakes are too high for this to happen, unless a greater objective than “winning” a political debate emerges. Right after 9/11, it appeared that such an objective had emerged, but the sense of unity against a common enemy didn’t last. And it wasn’t entirely Bush’s fault for pushing the war in Iraq. I witnessed (on TV) HRC’s eye-rolling performance during Bush’s post-9/11 speech to Congress, a performance aimed not only at the Dem colleagues near her but also at anti-Bush zealots around the country. (Bush’s “theft” of the election less than a year earlier was still a sore spot for a lot of Democrat politicians and voters.)

It would be the same again with Trump in office. In fact, he’d be blamed (by Democrats) for whatever dire thing happens, and polarization would strengthen instead of weakening.

I shudder to think what it might take to achieve real and lasting unity, or at least a willingness to engage in honest and open discourse. The nation may be better off if the status quo persists. I certainly do not want compromise if it means giving any more ground to the left.


* I came to know Mitch slightly when we had business dealings about 30 years ago. He is the anti-Trump in size, thoughtfulness, articulateness, and manner. He is exactly the kind  of person who might be able to put the country more or less back together. But having said that, I am glad that Trump is in the White House now. His uncompromising push for conservative policies and judges is exactly what’s needed to counterbalance the Dems’ continuing slide into loony leftism.


Related posts:
September 20, 2001: Hillary Clinton Signals the End of “Unity”
I Want My Country Back
Undermining the Free Society
Government vs. Community
The Destruction of Society in the Name of “Society”
Society and the State
Well-Founded Pessimism
America: Past, Present, and Future
IQ, Political Correctness, and America’s Present Condition
The Barbarians Within and the State of the Union
The View from Here
“We the People” and Big Government
The Culture War
The Fall and Rise of American Empire
O Tempora O Mores!
Presidential Treason
A Home of One’s Own
The Criminality and Psychopathy of Statism
Surrender? Hell No!
Romanticizing the State
Governmental Perversity
Democracy, Human Nature, and the Future of America
1963: The Year Zero
Society
How Democracy Works
“Cheerful” Thoughts
How Government Subverts Social Norms
Turning Points
The Twilight’s Last Gleaming?
How America Has Changed
Civil War?
The “H” Word, the Left, and Donald Trump
Red-Diaper Babies and Enemies Within
The Vast Left-Wing Conspiracy
The Left and Evergreen State: Reaping What Was Sown
Academic Freedom, Freedom of Speech, and the Demise of Civility
Death of a Nation
The Invention of Rights
Leftism
Leftism As Crypto-Fascism: The Google Paradigm
What Is Going On? A Stealth Revolution
Politics Trumps Economics
Down the Memory Hole
Dining with “Liberals”

The Dumbing-Down of Public Schools

You may have read stories about the difficulty of tests given to public-school students in the late 1800s and early 1900s. Some of the questions would have challenged even the brighter seniors in today’s schools. This anecdotal evidence suggests that educational standards were generally much higher in the public schools of yore than they are now. One reason, I suspect, is the dumbing-down of schools that probably accompanied the social and legal push to keep children in school through the 12th grade.

In Michigan, when my father was of school age, it wasn’t uncommon for children (especially boys) to drop out after the 8th grade. High school, in those days, seemed to be considered preparatory for college. Boys like my father, who was intelligent but of a poor family, weren’t considered college material and would often drop out after completing the 8th grade in order to go to work, perhaps even to learn a trade that would pay more than they could earn from manual labor. (When my father dropped out, the Great Depression was at its depth and it was all the more necessary for him to take whatever job he could get, to help support his family.)

The prep-school thesis came to me when I was browsing old yearbooks and found a yearbook for 1921 in which my high-school principal is pictured as a high-school senior. (It was the high school that my father would have attended had he gone beyond the 8th grade.) One page of the yearbook gives a list of the 1920 graduates and tells what each of them is doing (e.g., attending the University of Michigan, working at a particular factory, at home without a job). Here are some things I gleaned from the page:

The class of 1920 consisted of 28 males and 50 females. This is an improbable male-female ratio, which supports my thesis that dropping out to work was common among males. (Most male members of the class of 1920 would have been only 16 at the end of World War I ended, so it is unlikely that the war had more than a minute effect on the number of males who reached graduation age.)

A year after graduation, two-thirds of the males (19 of the 28) were enrolled in college (mostly at the University of Michigan), and another one was attending a technical school in Chicago. That two-thirds of the males were in college in 1921, long before the insane push for universal higher education, support the idea that most males who went to high school were considered college material.

Of the 50 females, only 8 were definitely in college, with 5 of them at teachers’ colleges (then called “normal schools”). Several others gave locations that might have indicated college attendance (e.g., Oberlin, Albion). But there were at most 14 collegians among the 50 females.

Two females were already teaching, presumably in small, rural schools. But the fact that they were teaching at the age of 19 (not uncommon in the “old days”) is testimony to the quality of high-school education in those days. It also says a lot about the needless inflation of standards for teaching young children.

It pains me to think of the tens of millions of young persons — male and female alike — who have been pushed into high school, and then into college, instead of being allowed to find their own way in life. They have been denied the opportunity to learn a trade through apprenticeship, or just by working hard; the opportunity to learn self-reliance and responsibility; and the opportunity to contribute more to the well-being of others than most of them will contribute by going to college.

Smaller high-school enrollments would also mean fewer public-school teachers and administrators to feed at the public trough and fuel the expensive (and largely fruitless) war among school systems to see which one can spend the most per pupil.  Fewer students pushed into college would also mean fewer college-professors and administrators to feed at the public trough, and to spew their pseudo-intellectual nonsense.

The best thing about smaller high-school enrollments would be the reduction in the number of impressionable young persons who are indoctrinated in left-wing views by high-school teachers, and then by college professors.


Related posts:
School Vouchers and Teachers’ Unions
Whining about Teachers’ Pay: Another Lesson about the Evils of Public Education
I Used to Be Too Smart to Understand This
The Higher-Education Bubble
The Public-School Swindle
Is College for Everyone?
A Sideways Glance at Public “Education”

The End of an Era?

What do these people have in common?

Roy Moore
Harvey Weinstein
Kevin Spacey
Louis C.K.
Al Franken
Charlie Rose
John Conyers
Matt Lauer
Garrison Keillor

I’m sure I’ve missed some names. They’ve been coming too fast for me to keep up. And that’s just this year’s crop — though Bill Clinton always heads the list of past offenders (proven and alleged).

What they have in common, of course, is a rap for sexual harassment or worse — sometimes much worse.

What they also have in common is that they are all public figures who are either in politics or entertainment (which includes “news”).

The most important thing that they have in common, with the exception of Roy Moore, is their attachment to left-wing politics. Oops, here comes Clinton, again.

The day of the free pass because “his heart’s in the right place”* seems to be over.
_________
* This is a reference to following passage in “The Devolution of American Politics from Wisdom to Opportunism“:

The canonization of Ted Kennedy by the American left and its “moderate” dupes — in spite of Kennedy’s tawdry, criminal past — reminds me of the impeachment trial of William Jefferson Clinton. Clinton’s defense attorney Cheryl Mills said this toward the end of her summation:

[T]his president’s record on civil rights, on women’s rights, on all of our rights is unimpeachable.

In other words, Clinton could lie under oath and obstruct justice because his predatory behavior toward particular women and the criminal acts they led to were excused by his being on the “right side” on the general issue of “women’s rights.” That makes as much sense as allowing a murderer to go free because he believes in capital punishment.

The Battle Flag Restored

I had removed the Battle Flag of the Army of Northern Virginia from my sidebar, just to declutter it. But today I read this:

In Austin, Texas, Mayor Steve Adler won’t be marching in Saturday’s Veteran’s Day parade because groups marching in the parade will be carrying the Confederate battle flag.

“Symbols of racism, Civil War secession, and white supremacy should not be forgotten or erased, but they need to be remembered and studied in museums and classrooms, not cheered and applauded in parades,” said Adler.

And so I have restored the Battle Flag to a place of prominance in my sidebar for the reasons that I give below it:

On this blog, as in most places where it appears, the Battle Flag of the Army of Northern Virginia — Lee’s Army — stands for deliverance from an oppressive national government and resistance to political correctness, not racism. For more, see my post, “Defending the Offensive“.

Adler is typical of Austin, a place that commands my taxes and repels my soul.

Not-So-Random Thoughts (XXI)

An occasional survey of web material that’s related to subjects about which I’ve posted. Links to the other posts in this series may be found at “Favorite Posts,” just below the list of topics.

Fred Reed, in a perceptive post worth reading in its entirety, says this:

Democracy works better the smaller the group practicing it. In a town, people can actually understand the questions of the day. They know what matters to them. Do we build a new school, or expand the existing one? Do we want our children to recite the pledge of allegiance, or don’t we? Reenact the Battle of Antietam? Sing Christmas carols in the town square? We can decide these things. Leave us alone….

Then came the vast empire, the phenomenal increase in the power and reach of the federal government, which really means the Northeast Corridor. The Supreme Court expanded and expanded and expanded the authority of Washington, New York’s store-front operation. The federals now decided what could be taught in the schools, what religious practices could be permitted, what standards employers could use in hiring, who they had to hire. The media coalesced into a small number of corporations, controlled from New York but with national reach….

Tyranny comes easily when those seeking it need only corrupt a single Congress, appoint a single Supreme Court, or control the departments of one executive branch. In a confederation of largely self-governing states, those hungry to domineer would have to suborn fifty congresses. It could not be done. State governments are accessible to the governed. They can be ejected. They are much more likely to be sympathetic to the desires of their constituents since they are of the same culture.

Tyranny is often justified by invoking “the will of the people”, but as I say here:

It is a logical and factual error to apply the collective “we” to Americans, except when referring generally to the citizens of the United States. Other instances of “we” (e.g., “we” won World War II, “we” elected Barack Obama) are fatuous and presumptuous. In the first instance, only a small fraction of Americans still living had a hand in the winning of World War II. In the second instance, Barack Obama was elected by amassing the votes of fewer than 25 percent of the number of Americans living in 2008 and 2012. “We the People” — that stirring phrase from the Constitution’s preamble — was never more hollow than it is today.

Further, the logical and factual error supports the unwarranted view that the growth of government somehow reflects a “national will” or consensus of Americans. Thus, appearances to the contrary (e.g., the adoption and expansion of national “social insurance” schemes, the proliferation of cabinet departments, the growth of the administrative state) a sizable fraction of Americans (perhaps a majority) did not want government to grow to its present size and degree of intrusiveness. And a sizable fraction (perhaps a majority) would still prefer that it shrink in both dimensions. In fact, The growth of government is an artifact of formal and informal arrangements that, in effect, flout the wishes of many (most?) Americans. The growth of government was not and is not the will of “we Americans,” “Americans on the whole,” “Americans in the aggregate,” or any other mythical consensus.


I am pleased to note that my prognosis for Trump’s presidency (as of December 2016) was prescient:

Based on his appointments to date — with the possible exception of Steve Bannon [now gone from the White House] — he seems to be taking a solidly conservative line. He isn’t building a government of bomb-throwers, but rather a government of staunch conservatives who, taken together, have a good chance at rebuilding America’s status in the world while dismantling much of Obama’s egregious “legacy”….

Will Donald Trump be a perfect president, if perfection is measured by adherence to the Constitution? Probably not, but who has been? It now seems likely, however, that Trump will be a far less fascistic president than Barack Obama has been and Hillary Clinton would have been. He will certainly be far less fascistic than the academic thought-police, whose demise cannot come too soon for the sake of liberty.

In sum, Trump’s emerging agenda seems to resemble my own decidedly conservative one.

But anti-Trump hysteria continues unabated, even among so-called conservatives. David Gelertner writes:

Some conservatives have the impression that, by showing off their anti-Trump hostility, they will get the networks and the New York Times to like them. It doesn’t work like that. Although the right reads the left, the left rarely reads the right. Why should it, when the left owns American culture? Nearly every university, newspaper, TV network, Hollywood studio, publisher, education school and museum in the nation. The left wrapped up the culture war two generations ago. Throughout my own adult lifetime, the right has never made one significant move against the liberal culture machine.

David Brooks of The New York Times is one of the (so-called) conservatives who shows off his anti-Trump hostility. Here he is writing about Trump and tribalism:

The Trump story is that good honest Americans are being screwed by aliens. Regular Americans are being oppressed by a snobbish elite that rigs the game in its favor. White Americans are being invaded by immigrants who take their wealth and divide their culture. Normal Americans are threatened by an Islamic radicalism that murders their children.

This is a tribal story. The tribe needs a strong warrior in a hostile world. We need to build walls to keep out illegals, erect barriers to hold off foreign threats, wage endless war on the globalist elites.

Somebody is going to have to arise to point out that this is a deeply wrong and un-American story. The whole point of America is that we are not a tribe. We are a universal nation, founded on universal principles, attracting talented people from across the globe, active across the world on behalf of all people who seek democracy and dignity.

I am unaware that Mr. Trump has anything against talented people. But he rightly has a lot against adding to the welfare rolls and allowing jihadists into the country. As for tribalism — that bugbear of “enlightened” people — here’s where I stand:

There’s a world of difference between these three things:

  1. hating persons who are different because they’re different
  2. fearing persons of a certain type because that type is highly correlated with danger
  3. preferring the company and comfort of persons with whom one has things in common, such as religion, customs, language, moral beliefs, and political preferences.

Number 1 is a symptom of bigotry, of which racism is a subset. Number 2 is a sign of prudence. Number 3 is a symptom of tribalism.

Liberals, who like to accuse others of racism and bigotry, tend to be strong tribalists — as are most people, the world around. Being tribal doesn’t make a person a racist or a bigot, that is, hateful toward persons of a different type. It’s natural (for most people) to trust and help those who live nearest them or are most like them, in customs, religion, language, etc. Persons of different colors and ethnicities usually have different customs, religions, and languages (e.g., black English isn’t General American English), so it’s unsurprising that there’s a tribal gap between most blacks and whites, most Latinos and whites, most Latinos and blacks, and so on.

Tribalism has deep evolutionary-psychological roots in mutual aid and mutual defense. The idea that tribalism can be erased by sitting in a circle, holding hands, and singing Kumbaya — or the equivalent in social-diplomatic posturing — is as fatuous as the idea that all human beings enter this world with blank minds and equal potential. Saying that tribalism is wrong is like saying that breathing and thinking are wrong. It’s a fact of life that can’t be undone without undoing the bonds of mutual trust and respect that are the backbone of a civilized society.

If tribalism is wrong, then most blacks, Latinos, members of other racial and ethnic groups, and liberals are guilty of wrong-doing.

None of this seems to have occurred to Our Miss Brooks (a cultural reference that may be lost on younger readers). But “liberals” — and Brooks is one of them — just don’t get sovereignty.


While we’re on the subject of immigration, consider a study of the effect of immigration on the wages of unskilled workers, which is touted by Timothy Taylor. According to Taylor, the study adduces evidence that

in areas with high levels of low-skill immigration, local firms shift their production processes in a way that uses more low-skilled labor–thus increasing the demand for such labor. In addition, immigrant low-skilled labor has tended to focus on manual tasks, which has enabled native-born low-skilled labor to shift to nonmanual low-skilled tasks, which often pay better.

It’s magical. An influx of non-native low-skilled laborers allows native-born low-skilled laborers to shift to better-paying jobs. If they could have had those better-paying jobs, why didn’t they take them in the first place?

More reasonably, Rick Moran writes about a

Federation for American Immigration Reform report [which] reveals that illegal aliens are costing the U.S. taxpayer $135 billion.  That cost includes medical care, education, and law enforcement expenses.

That’s a good argument against untrammeled immigration (legal or illegal). There are plenty more. See, for example, the entry headed “The High Cost of Untrammeled Immigration” at this post.


There’s a fatuous argument that a massive influx of illegal immigrants wouldn’t cause the rate of crime to rise. I’ve disposed of that argument with one of my own, which is supported by numbers. I’ve also dealt with crime in many other posts, including this one, where I say this (and a lot more):

Behavior is shaped by social norms. Those norms once were rooted in the Ten Commandments and time-tested codes of behavior. They weren’t nullified willy-nilly in accordance with the wishes of “activists,” as amplified through the megaphone of the mass media, and made law by the Supreme Court….

But by pecking away at social norms that underlie mutual trust and respect, “liberals” have sundered the fabric of civilization. There is among Americans the greatest degree of mutual enmity (dressed up as political polarization) since the Civil War.

The mutual enmity isn’t just political. It’s also racial, and it shows up as crime. Heather Mac Donald says “Yes, the Ferguson Effect Is Real,” and Paul Mirengoff shows that “Violent Crime Jumped in 2015.” I got to the root of the problem in “Crime Revisited,” to which I’ve added “Amen to That” and “Double Amen.” What is the root of the problem? A certain, violence-prone racial minority, of course, and also under-incarceration (see “Crime Revisited”).

The Ferguson Effect is a good example of where the slippery slope of free-speech absolutism leads. More examples are found in the violent protests in the wake of Donald Trump’s electoral victory. The right “peaceably to assemble, and to petition the Government for a redress of grievances” has become the right to assemble a mob, disrupt the lives of others, destroy the property of others, injure and kill others, and (usually) suffer no consequences for doing so — if you are a leftist or a member of one of the groups patronized by the left, that is.

How real is the Ferguson effect? Jazz Shaw writes about the rising rate of violent crime:

We’ve already looked at a couple of items from the latest FBI crime report and some of the dark news revealed within. But when you match up some of their numbers with recent historical facts, even more trends become evident. As the Daily Caller reports this week, one disturbing trend can be found by matching up locations recording rising murder rates with the homes of of widespread riots and anti-police protests.

As we discussed when looking at the rising murder and violent crime rates, the increases are not homogeneous across the country. Much of the spike in those figures is being driven by the shockingly higher murder numbers in a dozen or so cities. What some analysts are now doing is matching up those hot spots with the locations of the aforementioned anti-police protests. The result? The Ferguson Effect is almost undoubtedly real….

Looking at the areas with steep increases in murder rates … , the dots pretty much connect themselves. It starts with the crime spikes in St. Louis, Baltimore and Chicago. Who is associated with those cities? Michael Brown, Freddie Gray and Laquan McDonald. The first two cities experienced actual riots. While Chicago didn’t get quite that far out of hand, there were weeks of protests and regular disruptions. The next thing they have in common is the local and federal response. Each area, rather than thanking their police for fighting an increasingly dangerous gang violence situation with limited resources, saw municipal leaders chastising the police for being “too aggressive” or using similar language. Then the federal government, under Barack Obama and his two Attorney Generals piled on, demanding long term reviews of the police forces in those cities with mandates to clean up the police departments.

Small wonder that under such circumstances, the cops tended to back off considerably from proactive policing, as Heather McDonald describes it. Tired of being blamed for problems and not wanting to risk a lawsuit or criminal charges for doing their jobs, cops became more cautious about when they would get out of the patrol vehicle at times. And the criminals clearly noticed, becoming more brazen.

The result of such a trend is what we’re seeing in the FBI report. Crime, which had been on the retreat since the crackdown which started in the nineties, is back on the rise.


It is well known that there is a strong, negative relationship between intelligence and crime; that is, crime is more prevalent among persons of low intelligence. This link has an obvious racial dimension. There’s the link between race and crime, and there’s the link between race and intelligence. It’s easy to connect the dots. Unless you’re a “liberal”, of course.

I was reminded of the latter link by two recent posts. One is a reissue by Jared Taylor, which is well worth a re-read, or a first read if it’s new to you. The other, by James Thompson, examines an issue that I took up here, namely the connection between geography and intelligence. Thompson’s essay is more comprehensive than mine. He writes:

[R]esearchers have usually looked at latitude as an indicator of geographic influences. Distance from the Equator is a good predictor of outcomes. Can one do better than this, and include other relevant measures to get a best-fit between human types and their regions of origin?… [T]he work to be considered below…. seeks to create a typology of biomes which may be related to intelligence.

(A biome is “a community of plants and animals that have common characteristics for the environment they exist in. They can be found over a range of continents. Biomes are distinct biological communities that have formed in response to a shared physical climate.”)

Thompson discusses and quotes from the work (slides here), and ends with this:

In summary, the argument that geography affects the development of humans and their civilizations need not be a bone of contention between hereditarian and environmentalist perspectives, so long as environmentalists are willing to agree that long-term habitation in a particular biome could lead to evolutionary changes over generations.

Environment affects heredity, which then (eventually) embodies environmental effects.


Returning to economics, about which I’ve written little of late, I note a post by Scott Winship, in which he addresses the declining labor-force participation rate:

Obama’s Council of Economic Advisers (CEA) makes the argument that the decline in prime-age male labor is a demand-side issue that ought to be addressed through stimulative infrastructure spending, subsidized jobs, wage insurance, and generous safety-net programs. If the CEA is mistaken, however, then these expensive policies may be ineffective or even counterproductive.

The CEA is mistaken—the evidence suggests there has been no significant drop in demand, but rather a change in the labor supply driven by declining interest in work relative to other options.

  • There are several problems with the assumptions and measurements that the CEA uses to build its case for a demand-side explanation for the rise in inactive prime-age men.
  • In spite of conventional wisdom, the prospect for high-wage work for prime-age men has not declined much over time, and may even have improved.
  • Measures of discouraged workers, nonworkers marginally attached to the workforce, part-time workers who wish to work full-time, and prime-age men who have lost their job involuntarily have not risen over time.
  • The health status of prime-age men has not declined over time.
  • More Social Security Disability Insurance claims are being filed for difficult-to-assess conditions than previously.
  • Most inactive men live in households where someone receives government benefits that help to lessen the cost of inactivity.

Or, as I put it here, there is

the lure of incentives to refrain from work, namely, extended unemployment benefits, the relaxation of welfare rules, the aggressive distribution of food stamps, and “free” healthcare” for an expanded Medicaid enrollment base and 20-somethings who live in their parents’ basements.


An additional incentive — if adopted in the U.S. — would be a universal basic income (UBI) or basic income guarantee (BIG), which even some libertarians tout, in the naive belief that it would replace other forms of welfare. A recent post by Alberto Mingardi reminded me of UBI/BIG, and invoked Friedrich Hayek — as “libertarian” proponents of UBI/BIG are wont to do. I’ve had my say (here and here, for example). Here’s I said when I last wrote about it:

The Basic Income Guarantee (BIG), also known as Universal Basic Income (UBI), is the latest fool’s gold of “libertarian” thought. John Cochrane devotes too much time and blog space to the criticism and tweaking of the idea. David Henderson cuts to the chase by pointing out that even a “modest” BIG — $10,000 per adult American per year — would result in “a huge increase in federal spending, a huge increase in tax rates, and a huge increase in the deadweight loss from taxes.”

Aside from the fact that BIG would be a taxpayer-funded welfare program — to which I generally object — it would necessarily add to the already heavy burden on taxpayers, even though it is touted as a substitute for many (all?) extant welfare programs. The problem is that the various programs are aimed at specific recipients (e.g., women with dependent children, families with earned incomes below a certain level). As soon as a specific but “modest” proposal is seriously floated in Congress, various welfare constituencies will find that proposal wanting because their “entitlements” would shrink. A BIG bill would pass muster only if it allowed certain welfare programs to continue, in addition to BIG, or if the value of BIG were raised to a level that such that no welfare constituency would be a “loser.”

In sum, regardless of the aims of its proponents — who, ironically, tend to call themselves libertarians — BIG would lead to higher welfare spending and more enrollees in the welfare state.


-30-

Politics Trumps Economics

Years ago I was conversing with a hard-core economist, one of the benighted kind who assume that everyone behaves like a wealth-maximizing robot. I observed that even if he were right in his presumption that economic decisions are made rationally and in a way that comports with economic efficiency, government stands in the way of efficiency. In my pithy phrasing: Politics trumps economics.

So even if the impetus for efficiency isn’t blunted by governmental acts (laws, regulations, judicial decrees), those acts nevertheless stand in the way of efficiency, despite clever workarounds. A simple case in point is the minimum wage, which doesn’t merely drive up the wages of some workers, but also ensures that many workers are unemployed in the near term, and that many more workers will be unemployed in the long-term. Yes, the minimum wage causes some employers to substitute capital (e.g., robots) for labor, but they do so only to reduce the bottom-line damage of the minimum wage (at least in the near-term). Neither the employer nor the jobless is made better off by the employer’s machinations. Thus politics (the urge to regulate) trumps economics (the efficiency-maximizing state of affairs that would otherwise obtain).

I was reminded of my exchange with the economist by a passage in Jean-François Revel’s Last Exit to Utopia: The Survival of Socialism in a Post-Soviet Era:

Karl Jaspers, in his essay on Max Weber, records the following conversation between Weber and Joseph Schumpeter:

The two men met at a Vienna cafe… Schumpter indicated how gratified he was by the socialist revolution in Russia. Henceforth socialism would not be just a program on paper — it would have to prove its viability.

To which Weber … replied that Communism at this stage of development in Russia virtually amounted to a crime, and that to take this path would lead to human misery without equal and to a terrible catastrophe.

“That’s exactly what will happen,” agreed Schumpeter, “but what a perfect laboratory experiment.”

“A laboratory in which mountains of corpses will be heaped!” retorted Weber….

This exchange must have occurred at the beginning of the Bolshevik regime, since Max Weber died in 1920. Thus one of the twentieth century’s greatest sociologists and one of its greatest economists were in substantial agreement about Communism: they had no illusions about it and were fully aware of its criminogenic tendencies. On one issue, though, they differed. Schumpeter was still in thrall to a belief that Weber did not share, namely the illusion that the failures and crimes of Communism would serve as a lesson to humanity. [pp. 141-142]

Weber was right, of course. Politics trumps economics because people — especially people in power — will cling to counterproductive beliefs, even despite evidence that they are counterproductive. Facts and logic don’t stand a chance against power-lust, magical thinking, virtue-signalling, and the band-wagon effect.


Related posts:
“Intellectuals and Society”: A Review
The Left’s Agenda
The Left and Its Delusions
A Keynesian Fantasy Land
The Spoiled Children of Capitalism
Politics, Sophistry, and the Academy
Subsidizing the Enemies of Liberty
Income Inequality and Economic Growth
A Case for Redistribution, Not Made
Ruminations on the Left in America
Academic Ignorance
Superiority
Whiners
A Dose of Reality
God-Like Minds
Non-Judgmentalism as Leftist Condescension
An Addendum to (Asymmetrical) Ideological Warfare
The Rahn Curve Revisited
Retrospective Virtue-Signalling
Four Kinds of “Liberals”
Leftist Condescension
The Vast Left-Wing Conspiracy
Leftism As Crypto-Fascism: The Google Paradigm
What’s Going On? A Stealth Revolution