Policy

Fare Share and Other Signs of Envy

Dave Davis Commentary, Dave's Healthcare Plan, Policy, Uncategorized

Even a well-publicized crisis that turns out to be more hype than fact can serve a noble purpose. This is the way it should be with the well-publicized widening gap between the rich and the rest of the populace. Wealth inequality is said to threaten the ties that bind our society together. Based mostly on the work of economists, Thomas Piketty, Emmanuel Saez, and Gabriel Zucman, the expanding gap is menacing not only the United States but all of the rich world. The latest addition to this argument is presented in the new book by Saez and Zucman, “The Triumph of Injustice.” These two advisors to Elisabeth Warren’s Presidential campaign, are revered across the progressive world. The widening disparity between rich and poor is taken as gospel, bringing forth demands the rich “pay there fair share.” Unfortunately, much as it was with Piketty’s 2013 book “Capital in the Twenty-First Century,” this book is riddled with false assumptions and poor methodology leading to erroneous conclusions. Don’t take our word for it; recent articles in the Wall Street Journal, the Economist, and by the Cato Institute, among others, do an excellent job of dismantling this thesis brick by brick. Just leaving out the effect of transfer payments and taxation was bound to have it go off the rails. Apparently, you can find academics to back up any point of view no matter how far out, if you look hard enough. Logic and experience needn’t get in the way of currying political favor. How else can you explain Trump’s trade advisor, Peter Navarro?

Yet, increasing the general individual wealth is a worthy goal. It’s just taking it from the successful and giving it to others after the government takes a healthy processing fee that’s self-defeating. That idea relies on a deadly sin, envy. We’re better than that. In any case, this never works. Any community is far more vibrant top to bottom with more wealthy entrepreneurs. Any community adopting policies and taxes that force them to leave can only be more impoverished. Remember our rule, “if people are clamoring to get in, you’re doing something right, and if they’re rushing to get out, you’re doing something wrong.” Instead of beggaring your more affluent neighbor, it would be better to consider ways to make you wealthier. Does the government assist you in finding better economic conditions, or does it in fact work against you?

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DO WE REALLY WANT TO SOLVE PROBLEMS?

Dave Davis Dave's Healthcare Plan, Policy, The Future Party, Uncategorized

Now that Deval Patrick and possibly Michael Bloomberg are entering the race for the Democratic Presidential nomination. Why not? None of the multitudes already running has wowed the populace. The nominal leader, Joe Biden, is suffering from a wound named Hunter. As we’ve pointed out, you simply can’t go for impeachment with a leader so ethically compromised. As the Dems push impeachment, the Republicans can point to the Bidens. Saying they did nothing wrong, just insults the electorate. Joe Biden’s only real source of strength is the Black vote. This arises out of his association with Barrack Obama. Patrick has a much older friendship with the former President, and he’s black. This can’t help but diminish Biden’s black support. This will further fragment the delegate totals for those running, probably leading to a hung convention. After two ballots, the nomination we think will go to Michelle Obama by acclamation. For years we’ve predicted Michelle would be the nominee, and Patrick’s entry in the field is just another Obama cool move. In any case, the Dems are committed to promising endless spending and crushing taxes. Michelle only has to appear to be a little less extreme.

Forcing both parties to the extremes is a given with our present primary system. As we’ve pointed out in our series “the Future Party” (series available on this site), our failing nominating system gives us less acceptable candidates. Instead of the parties offering capable candidates with broad appeal, we have populist Trump facing candidates at the other extreme. The lack of fiscal restraint is indicative of the lack of sound thinking. The present President is running trillion-plus deficits, yet any of the Democratic contenders make him look like a miser.

At the forefront of the Dems proposed eye-popping spending is healthcare. Cost estimates in the tens of trillions are offered to replace our present system or slightly less to significantly expand it. Nowhere is there any reasonable elements in any of the plans to actually cut the real costs of healthcare. Rationing, along with price controls and caps, we are told will bring prices down. They claim eliminating the profit motive will make healthcare much cheaper. One doesn’t have to recall the failure of the USSR’s command society to know this is the path to long waits and shortages. We just have to look at the current crisis in Britain’s single-payer health service. Presently, almost a quarter of a million have been waiting 6 months or more for needed treatment. Remember, Britain has only 1/6th of the Us population. Worse, 25% of cancer patients failed to start treatment on time even though timely treatment is often the difference between life and death. Do we really want needless deaths on the national conscience? We want better for our loved ones.

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Cold War II

Dave Davis Commentary, Policy, The Long Journey to "More", Uncategorized

We were asked if we’re slipping into a new cold war. Our answer is you haven’t been paying attention, it’s already started. It probably started even longer ago, but when Xi was named President for life, it was inevitable. Anytime you have a president for life or anything close to it, the situation already is off the rails. You just don’t get liberalization with the rule of law when you can’t change the people at the top. What you get increasing repression. As we’ve pointed out in our “More” series, top-down one-party states are inherently inefficient as the elite substitute their judgment for that of free markets and the choices of free people. As they fall further behind, the people become restive, and the rulers have to make a choice between ceding power or crushing dissent. Too often, the latter wins out. So it appears with China. 

Given the actual state of things, what should we be doing? Decouple as soon and as thoroughly as we can without upending our and the world’s economy. That was the beauty of the Trans-Pacific Partnership (TPP). While increasing free trade among the members and protecting intellectual property rights, it makes it more expensive to make or buy in China. Unless China changed its ways, it would become increasingly isolated. This would’ve given everyone time to adjust without sudden dislocation. Unfortunately, the Trump administration dumped TPP and instead levied stiff tariffs. This is causing pain on both sides without isolating China. Evidently, the Trump administration thinks we can continue to have linked economies with just some adjustments. That wouldn’t have worked with the old Soviet Union, and it won’t work with China.

You only have to look at two of the recent happenings to two of our prominent business institutions, the NBA and Disney. Each fearing a loss of Chinese profits has bent their American Principles into a pretzel. Given our ideals, is there any reason not to know where Americans should come down on freedom. Houston Rockets general manager knew Daryl Morey and twitted his support for the people of Hong Kong. China had an immediate meltdown and used full force to bend the NBA to its will. Disney under similar pressure made changes to content to please China. In both cases, these entities initially chose profits over integrity. In doing so, they have lost any moral authority to speak out on anything at home or abroad. Unless you’re willing to pay the price of speaking up against injustice everywhere, you can’t really speak out anywhere. Nobody needs to listen to hypocrites.

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The World Has Lots More” Now What? Steps to Take

Dave Davis Commentary, Dave's Healthcare Plan, Policy, The Future Party, The Long Journey to "More", Uncategorized

The point of this series is to make clear how the world has changed for the better since innovation and trade have taken off to provide increasing amounts of “More”, while the old standby of taking it from others ultimately results in “Less.” The problem is we either have to commit to adapting to a changing world with greater flexibility and efficiency or get caught in the downward spiral of government-directed economies invariably get snared. More government direction and you go down the road to “less.” The leaders promise “More” and maybe initially deliver by taking it from some and giving it to supporters, but ultimately they can’t adapt quickly enough and fall behind. The people get restless. The leaders grow fearful and clamp down on dissent. Maybe, aggressive foreign ventures are taken to distract from the leader’s failures. Sanctions for these actions or human right violations follow adding to the economic distress. The country is forced out of normal trade as unreliable in any supply chains. The economic situation gets even worse and the leaders have to be even more repressive. On and on it goes. Unfortunately, this is the history of every modern top-down government. If we wish to avoid this horrible fate we need to take certain steps:

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The World Has Lots More” Now What? IV

Dave Davis Commentary, Dave's Healthcare Plan, Policy, The Future Party, The Long Journey to "More", Uncategorized

Never in human history has the average human had “More.” Capitalism if left alone to continue to work its magic promises to bring even “More” to everyone allowed to participate. Only where economies are increasingly run by top-down dictates is the human condition deteriorating. Yet as we have seen this highway to more is threatened both at home and abroad. Even China where allowing capitalism rum a major part of its economy brought a billion people out of abject poverty is reasserting top-down control. No wonder its growth rate is slowing in line with every turn of the screw. We know where this leads, increasing oppression and, of course, “Less.” At home, we have a large part of our populous favorable to socialism and outright hostility to capitalism. To understand this strange reaction to a system that has provided everyone with far “More” than our forebearers ever dreamed possible, Joseph Schumpeter (1883-1950) gave us some insight. The economist popularized the phrase “Creative Destruction” to describe the dynamics of market capitalism and how its disruptive the forces of innovation undermined norms. With the widespread change, some suffer near term loss but overall most gained. He lauded the entrepreneurial spirit of the capitalists, but thought the loss of equilibrium would cause socialism to win out in the end. He based this on the hostility of intellectuals on one hand and workers on the other. He couldn’t have been more wrong. As we’ve shown, socialism and every other top-down system have proven to be an utter disaster. As it turns out the equilibrium under these systems is upset but not in a good way. However, this hasn’t quashed the hostility among many intellectuals and workers.

Today’s intellectuals are the direct descendants of the small number of literate elites topping the heap all over the world for all those centuries prior to 15th. Whatever “More” there was to have belonged to them. They were the military leaders, the governors, the lawmakers and keepers, the bureaucrats running most everything, the repositories of whatever passed for knowledge and the intermediaries to the gods. The vast majority of humanity was just dust beneath their feet. The uncouth deplorables were put on earth to serve their betters. They only suffered merchants and artisans to provide them with the good things of life. They were the top of the human pyramid. The commercial class had to kowtow and often bribe these officials in order to survive. This still exists but much more muted in liberal capitalist countries. As commerce grew and entrepreneurs prospered, the intelligentsia had to share power and place. They are not happy.

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