Idiots Lose Their Minds Over Price Gouging

Every time a disaster like #COVID19 rears its head, politicians and pundits come out of the woodwork to condemn “price gouging.” But what is #PriceGouging? What causes it, and does #Government make it better or worse with regulations?

Hashtags: #Economics #Coronavirus #Disaster #Rationing #FreeMarket #ToiletPaper

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References

Sampson, H. (2020, March 12). Travel prices are dropping almost everywhere as coronavirus fears take over. Retrieved from https://www.washingtonpost.com/travel/2020/03/12/travel-prices-are-dropping-almost-everywhere-coronvavirus-fears-take-over/.

Savodnik, P. (2020, March 19). Can movie theaters survive coronavirus? Retrieved from https://www.vanityfair.com/hollywood/2020/03/can-movie-theaters-survive-coronavirus.

Sowell, T. (2014). Basic Economics. New York: Basic Books.

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The FED’s Stimulus Won’t Solve Production Problems (2 Day with 2 Cents Podcast)

With interest rates cut to zero, the Federal Reserve promises unlimited liquidity and Congress deliberates on a so-called “Economic Recovery Package.” However, no amount of money printed out of thin air can resolve the underlying problem which is lack of production. This problem has only been exacerbated by bringing the entire economy to a halt in an effort to stop the spread of the coronavirus (COVID-19).

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Hashtags: #FederalReserve #StimulusPackage2020 #COVID19 #StockMarketCrash2020 #EconomicCrisis #EconomicMeasures #EconomicCollapse

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References

Krambeck, G. (2020, March 22). MARK-TO-MARKET: Trump, Federal Reserve tackle economic stimulus. Retrieved from https://qconline.com/business/mark-to-market-trump-federal-reserve-tackle-economic-stimulus/article_84592a90-e13e-5dd1-a576-f4193e8a28d0.html

Stein, J., Werner, E., & DeBonis, M. (2020, March 19). Negotiations intensify on Capitol Hill over massive stimulus legislation as coronavirus fallout worsens. Retrieved from https://www.washingtonpost.com/business/2020/03/18/trump-coronavirus-economic-plan/

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The “Real Deal” with Medicare for All DEBUNKED

Robert Reich, progressive economist of Inequality Media, has set out to lecture Americans about the “Real Deal” with Medicare for All. In this video, I join forces with @Shane Killian to debunk these talking points once and for all.

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Hashtags: #MedicareForAll #UniversalHealthcare #RobertReich #InequalityMedia #Economics

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References

Bernpainter, K. (2013, July 8). The Truth About SwedenCare: Klaus Bernpaintner. Retrieved from https://mises.org/library/truth-about-swedencare

Bingham, J. (2015, October 29). ‘Shocking’ end of life care in NHS boosting support for assisted suicide – MPs. Retrieved from https://www.telegraph.co.uk/news/politics/11961554/Shocking-end-of-life-care-in-NHS-boosting-support-for-assisted-suicide-MPs.html

Gary, G. (2018, November 2). Infant Mortality Is a Misleading Statistic for International Comparisons. Retrieved from https://mises.org/wire/infant-mortality-misleading-statistic-international-comparisons

Health Care System Performance Rankings. (2017, July 13). Retrieved from https://www.commonwealthfund.org/chart/2017/health-care-system-performance-rankings

Long waits for surgery ‘have tripled in four years’. (2017, June 2). Retrieved from https://www.bbc.com/news/health-40122075

Moseley, G. B. (2008). The U.S. Health Care Non-System, 1908-2008. AMA Journal of Ethics, 10(5), 324–331. doi: 10.1001/virtualmentor.2008.10.5.mhst1-0805

Niemietz, K. (2014, October 30). Health Check: The NHS and Market Reforms. Retrieved from https://iea.org.uk/publications/research/health-check-the-nhs-and-market-reforms

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Biden’s Upcoming Economic Narrative (2 Day with 2 Cents Podcast)

 

In this edition of the 2 Day with 2 Cents podcast, I discuss Joe Biden’s ascendancy as the Democratic Party’s front runner for 2020 in light of the stock market’s tumbling as the coronavirus continues to spread worldwide. Many right-wing commentators are saying that a Biden presidency isn’t nearly as much of a threat as a Sanders presidency, but I have my doubts.

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Hashtags: #Biden2020 #COVID19 #StockMarketCrash2020 #BidenForPresident #Biden #EconomicCrisis

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References

Fitzgerald, M. (2020, February 28). Global stock markets have lost $6 trillion in value in six days. Retrieved from https://www.cnbc.com/2020/02/28/global-stock-markets-have-lost-6-trillion-in-value-in-six-days.html

Haberman, M., & Karni, A. (2020, March 4). The Coronavirus. The Stock Market. Now Biden’s Comeback Adds to Trump’s Bad Week. Retrieved from https://www.nytimes.com/2020/03/04/us/politics/trump-coronavirus-stock-market-biden.html

Rob, G. (2020, March 5). Fed expected to continue cutting interest rates, beginning as soon as later this month. Retrieved from https://www.marketwatch.com/story/fed-expected-to-continue-cutting-interest-rates-beginning-as-soon-as-later-this-month-2020-03-05

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The ONLY Way to Improve the Economy

Hashtags: #Economics #Election2020 #CampaignAds

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The Coronavirus and the Austrian Business Cycle (2 Day with 2 Cents Podcast)

The #CoronavirusOutbreak has been sensationalized across the media. With entire regions of China shutdown, global markets are preparing for widespread downturn. However, it occurs to me that this supposed epidemic has come about at a time that the U.S. Government and Federal Reserve might have motive to create global uncertainty. Listen to my thoughts on this new edition of the 2 Day with 2 Cents Podcast!

Hashtags: #AustrianBusinessCycle #2DayWith2Cents #CurrentEvents #Coronavirus #Economics

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References

2019 Novel Coronavirus (2019-nCoV) Situation Summary. (2020, January 31). Retrieved from https://www.cdc.gov/coronavirus/2019-nCoV/summary.html#risk-assessment

Daurat, C. (2020, January 31). The Coronavirus Is Infecting the Global Economy. Here’s How. Retrieved from https://www.bloomberg.com/news/articles/2020-01-31/the-global-economy-is-getting-infected-by-the-virus

Foster, S. (2020, January 31). The Repo Market, Explained – And Why The Fed Is Pumping Billions Into It. Retrieved from https://www.bankrate.com/banking/federal-reserve/why-the-fed-pumps-billions-into-repo-market/

Mendell, E. (2020, January 30). Coronavirus Triggers Damage Control From Governments, Companies. Retrieved from https://www.wsj.com/articles/coronavirus-triggers-damage-control-from-governments-companies-11580396657

Smith-Schoenwalder, C. (2020, January 30). Why the Flu Is Still a Bigger Threat to Americans Than Coronavirus. Retrieved from https://www.usnews.com/news/health-news/articles/2020-01-30/why-the-flu-is-a-bigger-threat-to-the-us-than-coronavirus

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What Does it Really Take to Start and Run a Business?

At the MLK Now 2020 event, Ta-Nehisi Coates and Alexandria Ocasio-Cortez had a conversation in which #AOC claimed that, “No one makes a billion dollars. You take a billion dollars.” The obvious implication to her statement is that business leadership doesn’t actually contribute anything of value to a business. However, does this assertion hold true when one considers exactly what it takes to start and subsequently run a business?

Hashtags: #Business #Billionaires

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References

10 steps to start your business. (n.d.). Retrieved from https://www.sba.gov/business-guide/10-steps-start-your-business/

Deane, M. T. (2019, June 25). Top 6 Reasons New Businesses Fail. Retrieved from https://www.investopedia.com/financial-edge/1010/top-6-reasons-new-businesses-fail.aspx

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Does Dave Cullen Understand the Free Market?

Dave Cullen, of the YouTube channel Computing Forever, recently published a video titled “Start Your Own Planet!” In it, it appears that Dave is seeking to prove that the free market is insufficient to protect us from private monopolies that may one day leave us destitute and unable to obtain the necessities of life. However, like all those that speak out against private monopolies, Dave has neglected the fact that these monopolies only have the power they do because of government in the first place. Giving more power to government can only make the problem worse.

Hashtags: #FreeMarkets #DaveCullen #ComputingForever #Monopolies #SocialMedia #Censorship #Banks #Government

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References

ABA Pushes Back on White House Claims about Reg Burden. (2019, May 14). Retrieved from https://bankingjournal.aba.com/2016/08/aba-pushes-back-on-white-house-claims-about-reg-burden/

Bajpai, P. (2019, December 4). Countries Where Bitcoin Is Legal & Illegal (DISH, OTSK). Retrieved from https://www.investopedia.com/articles/forex/041515/countries-where-bitcoin-legal-illegal.asp

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Emily Ratajkowski Endorses Bernie Sanders?

On January 9th, 2020, Bernie Sanders campaign released a video of Sports Illustrated model Emily Ratajkowski endorsing Bernie for President. There’s no telling that Emily Ratajkowski is drop dead gorgeous, but does that mean you should listen to her advice on Bernie?

Hashtags: #EmilyRatajkowski #emrata #FeelTheBern #Bernie2020 #BernieSanders #BernieBros #BernieIsAHypocrite

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References

Araujo, R. (1983, July 19). The Sandinista War on Human Rights. Retrieved from https://www.heritage.org/americas/report/the-sandinista-war-human-rights.

Bardella, K. (2020, January 10). Democrats need to face facts about Bernie Sanders, his heart attack and his health. Retrieved from https://www.usatoday.com/story/opinion/2020/01/10/bernie-sanders-heart-attack-should-concern-democrats-column/2848611001/.

Bernie Sanders Donated Less Than One Percent to Charity First Year He Made Over One Million Dollars. (2019, April 17). Retrieved from https://theminnesotasun.com/2019/04/17/bernie-sanders-donated-less-than-one-percent-to-charity-first-year-he-made-over-one-million-dollars/.

Berrien, H. (2016, April 20). Sanders Was Kicked Out Of Commune For Laziness. Retrieved from https://www.dailywire.com/news/sanders-was-kicked-out-commune-laziness-hank-berrien.

Emily Ratajkowski Net Worth. (2017, July 17). Retrieved from https://www.celebritynetworth.com/richest-celebrities/models/emily-ratajkowski-net-worth/.

Greene, D. E. (2019, June 18). Not on Our Side: On Bernie Sanders and Imperialism. Retrieved from https://www.leftvoice.org/not-on-our-side-on-bernie-sanders-and-imperialism.

Kranish, M. (2019, May 6). Inside Bernie Sanders’s 1988 10-day ‘honeymoon’ in the Soviet Union. Retrieved from https://www.washingtonpost.com/politics/inside-bernie-sanderss-1988-10-day-honeymoon-in-the-soviet-union/2019/05/02/db543e18-6a9c-11e9-a66d-a82d3f3d96d5_story.html.

Lintern, S. (2019, November 19). ‘Largest maternity scandal in NHS history’: Dozens of mothers and babies died on wards, leaked report reveals. Retrieved from https://www.independent.co.uk/news/health/shrewsbury-maternity-scandal/nhs-maternity-scandal-shrewsbury-telford-hospitals-mothers-babies-report-a9207176.html.

Peterson-Withorn, C. (2019, August 20). How Bernie Sanders, The Socialist Senator, Amassed A $2.5 Million Fortune. Retrieved from https://www.forbes.com/sites/chasewithorn/2019/04/12/how-bernie-sanders-the-socialist-senator-amassed-a-25-million-fortune/#2e81a55636bf.

Satter, D. (2017, November 6). 100 Years of Communism-and 100 Million Dead. Retrieved from https://www.wsj.com/articles/100-years-of-communismand-100-million-dead-1510011810.

Yasin, K. F. and K. (2019, March 12). Breast Cancer Survival: Statistics and Facts. Retrieved from https://www.healthline.com/health/breast-cancer/survival-facts-statistics#7.

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The Case for Private Police

badge wallpaper

Could privatizing police services resolve many current issues with public law enforcement?

As you go about your daily life, I’m sure you’ve seen two different kinds of people wearing a badge. The first is the public law enforcement officer we’re all familiar with. Citizens pay taxes to the government in order to fund this officer’s activity, and we’re told that his department exits to protect and serve the community.  The other is a private security guard. His activity is funded by the private entity that desires his services, and his department exists to protect and serve the interests of that private entity.

While government regulations carefully distinguish between the roles and responsibilities of public law enforcement officials and private security professionals, they share a common motivation for their activities that makes them exactly the same in principle. That is that all police and/or security services, public or private, exist to protect the interests of their clients. In other words, they answer to the people who pay them, and they are held accountable only in as much as they fail to serve those interests.

In the case of private security this should be very obvious. Consider any common business where you’re likely to see private security guards.  For example, most privately-owned shopping malls employee such services.

Shopping malls employee private security because they have a vested interest in ensuring that merchandise is not stolen from their clients. They also have need to ensure that their customers feel safe and secure as they go about their shopping. However, shopping malls also have a vested interest in holding their security staff accountable.

If security guards are routinely rude and disrespectful to patrons of the mall, those patrons are unlikely to continue shopping there, and the mall will cease to be profitable. Further, if the rules that the mall asks its security staff to enforce are too restrictive and displeasing to patrons of the mall, patrons are again unlikely to keep shopping there.  The mall will again cease to be profitable, and thus the interests of the malls patrons are necessarily intertwined with the mall’s interests.

For this reason, every private security professional understands that his primary objective is to ensure that his client, in our example the shopping mall, has his interests protected. If the security professional fails in this mission, his client will quickly dismiss him in favor of a different security professional or firm that can do a better of job of protecting his interests.

But what about public law enforcement?

Undoubtedly, there are those in the community who donate their private funds to police causes, but at the end of the day, citizens are coerced into paying taxes, which are then allocated to the various branches of government by the state, including law enforcement agencies. If citizens are displeased with the police services they are receiving, they can write their elected officials and express this, or call the law enforcement agency directly and file a complaint, but they cannot dismiss public law enforcement officials for dereliction of duty as they could private security professionals that they were employing directly. The only entity that can dismiss public police officers is the state itself.

For this reason, the public police officer, just like his private security counterpart, realizes that he has an obligation to protect the interests of his client. However, his client’s interests are unique in that the state is never under threat of losing profitability because of displeased patrons. Citizens will be forced to pay their taxes whether they want to or not.

Consider then the practical consequences, when law enforcement fail in their responsibility to protect and serve the community.

In 1981, the court case Warren vs. District of Columbia was brought before the District of Columbia Court of Appeals. This case involved three women who had horrific crimes committed against them by men who forcibly broke into the building in which they lived. While two of the appellants had contacted the D.C. Metropolitan Police Department when the break-in began, dispatch and patrol officers failed to follow multiple department procedures. Despite arriving at the scene, officers did not investigate beyond knocking on the door, and then departing when there was no answer. As a result, a crime that could have been stopped within minutes of its beginning became a series of horrific crimes that lasted 14 hours.

The women who had endured these crimes sued the District of Columbia on the basis that Metro P.D. had failed to follow its own procedures, and in so doing, failed in its stated mission to protect the community from crime. However, the court ruled against the appellants stating,

“A publicly maintained police force constitutes a basic governmental service provided to benefit the community at large by promoting public peace, safety and good order. The extent and quality of police protection afforded to the community necessarily depends upon the availability of public resources and upon legislative or administrative determinations concerning allocation of those resources…” (Warren v. District of Columbia, 1981).

The court went on to say,

“At any given time, publicly furnished police protection may accrue to the personal benefit of individual citizens, but at all times the needs and interests of the community at large predominate. Private resources and needs have little direct effect upon the nature of police services provided to the public. Accordingly, courts have without exception concluded that when a municipality or other governmental entity undertakes to furnish police services, it assumes a duty only to the public at large and not to individual members of the community” (Warren v. District of Columbia, 1981).

In other words, the court was very clear that police do not exist to protect individuals. They exist to protect the state. Granted, the state attempts to hide this fact by broadcasting the idea that police exist to protect “the community” but the community is nothing more than a collection of individuals. It may be the case that the state’s interests and individual interests happen to align in many circumstances, but the fact that individuals have their interests protected by police in some circumstances is nothing more that a fortunate side effect. Whether the police officers themselves realize it or not, they are always acting in the state’s interests and will do so in any case where the state’s interests conflict with individual interests.

This is not the fault of police officers themselves, but of the incentive structures that are created by coercive taxation. There is no reason that public law enforcement services could not continue to exist as private entities. Whether individually, or as members of a neighborhood, private entities could employ private police firms to protect their own interests, just as many businesses do every day. In a free market, this would lead to competition among private police firms in which only those firms that provided the highest quality service for the lowest possible price would survive. If at any point, you were displeased with the police services being provided, you could fire your current firm, in favor of another, better quality one.

At this point, it is important to be absolutely clear that police officers themselves are not the enemy. It is undoubtedly true that many brave men and women have chosen to become police officers out of a genuine desire to protect their communities from harm. It would be wrong to dismiss the fact that police officers can and often do protect innocent people from harm.

However, when police brutality and other misconduct do occur, it is symptomatic of the incentive structures that exist within all tax-funded, state services. Because public police services answer to the state and not directly to the people, they will never have the same incentives regarding public perception and satisfaction that private security services do. Further, the state always has the incentive to use the police to further its own interests, even when that means ordering them to violate the rights of its citizens.

In summary then, all police and/or security services, public or private, exist to further the interests of their clients. As such, publicly funded police services will always serve the interests of the state, not individuals within their community. It will be impossible to quell the corruption that results from these incentive structures except via a free market solution, the complete privatization of police and security services.

And that is My 2 Cents. Take it for what it’s worth.

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Citations:

Warren v. District of Columbia, 444 A.2d 1 (DC Court of Appeals 1981). Retrieved from https://law.justia.com/cases/district-of-columbia/court-of-appeals/1981/79-6-3.html

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