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Thread: Why Bad Economics Makes Such Good Politics

  1. #1

    Why Bad Economics Makes Such Good Politics

    https://www.zerohedge.com/news/2018-...-good-politics

    Authored by Ryan McMaken via The Mises Institute,

    As the election nears, politicians will more and more frantically point out what wonderful favors they've done for the voters - or what favors they will do for the voters, if elected...



    Of course, they never mean all the voters. They mean groups or individuals within the voting population who believe they benefit from laws, taxes, regulations, and spending programs supported by the politician in question.

    Two such examples of these sorts of favors are tariffs and minimum wage laws. Both impose costs on both producers and consumers overall, while benefiting a small sliver of the population that is able to take advantage of the government mandate.

    The economics of each of these, or taxation and business regulation in general, have already been addressed numerous times in these pages.

    It must suffice to point out that these policies, for which politicians think they deserve accolades, potentially benefit only very specific interest groups. Nevertheless, these policies can prove to be politically popular, and may help a politician get elected.

    But why should policies that help so few and impose many costs on even those they purport to help be politically popular?

    Hazlitt and Mises on the Popularity of Bad Economics

    Answering this question was one of the main reasons that Henry Hazlitt wrote his perennially popular bookEconomics in One Lesson.

    In the very first chapter, Hazlitt notes that economic science is prone to so many errors because people are motivated to believe an incorrect version of economics that supports their own economic interests. Or as Hazlitt put it, economic errors "are multiplied a thousandfold ... by the special pleading of selfish interests."

    Sometimes, these attempts to throw good economics in the garbage are spectacularly successful. After all, for decades, no insignificant number of Americans believed the claim that "what's good for General Motors is good for America."1

    Hazlitt continues:

    While every group has certain economic interests identical with those of all groups, every group has also, as we shall see, interests antagonistic to those of all other groups. While certain public policies would in the long run benefit everybody, other policies would benefit one group only at the expense of all other groups. The group that would benefit by such policies, having such a direct interest in them, will argue for them plausibly and persistently. It will hire the best buyable minds to devote their whole time to presenting its case. And it will finally either convince the general public that its case is sound, or so befuddle it that clear thinking on the subject becomes next to impossible.

    ...
    Full article at link.

    ---

    Summary. Politicians love Bad Economics because it benefits them at the expense of everyone else. Its more than just a single fold of being at the expense of others because when the peoples money goes sour, it cascades and causes Financial Dependency on the actions of the Politicians, which leads to a multitude of other consequences, all of which continue to benefit the Politicians and their owner Banks.

    They have been able to weaponize Money as a means of controlling the people.

    Belief, Money, Violence
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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  3. #2
    "what's good for General Motors is good for America
    The actual quote from Charles Erwin Wilson during hearings on his nomination to be Secretary of Defense in 1953 was:

    During the hearings, when asked if he could make a decision as Secretary of Defense that would be adverse to the interests of General Motors, Wilson answered affirmatively. But he added that he could not conceive of such a situation "because for years I thought what was good for our country was good for General Motors, and vice versa."
    https://en.wikipedia.org/wiki/Charles_Erwin_Wilson

    and at that time GM accounted for three percent of the entire US GDP and one in 200 people worked for them so GM was an important part of the US economy. But he was not calling to give GM any sort of special treatment or government aid.

    But he is right that all groups are special interests and would like government to help them in some way. And politicians get elected by saying they will do something to help people.
    Last edited by Zippyjuan; 11-04-2018 at 05:21 PM.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  4. #3
    Quote Originally Posted by Zippyjuan View Post
    ...and at that time GM accounted for three percent of the entire US GDP and one in 200 people worked for them so GM was an important part of the US economy. But he was not calling to give GM any sort of special treatment or government aid.
    Oh, no, of course not. He only froze Utica-Bend out of all defense contracts, causing Packard-Studebaker to go out of business and ending any hope of an American Motors merger making them strong enough and taking on enough market segments to rival GM.

    Got any more whitewash for us? Come on, Zippy, tell us some more fairy tales from other winners who rewrote history.
    Quote Originally Posted by acptulsa View Post
    Americans are all in the same boat, beseiged by the same sharks. And if we don't remember that, we're all equally $#@!ed.

  5. #4
    It isn't just bankers who want government to do them favors. Everybody does. You would like a tax cut for example.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  6. #5
    Quote Originally Posted by Zippyjuan View Post
    It isn't just bankers who want government to do them favors. Everybody does. You would like a tax cut for example.
    Stealing less of my money is now doing me a favor? OooKaaay then...
    Quote Originally Posted by Zippyjuan View Post
    Ron Paul know some weird people...



    Quiz: Test Your "Income" Tax IQ!


    Short Income Tax Video

    The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes

    The Federalist Papers, No. 15:

    Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  7. #6
    Quote Originally Posted by Danke View Post
    Stealing less of my money is now doing me a favor? OooKaaay then...
    Trump promised he would take care of that for you by November. Just be sure to vote for him and it will all be yours. He promises.
    Last edited by Zippyjuan; 11-04-2018 at 06:59 PM.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  8. #7
    Quote Originally Posted by Zippyjuan View Post
    Trump promised he would take care of that for you by November. Just be sure to vote for him and it will all be yours. He promises.
    So u r saying I haven't already benefited and have to wait until after the 2020 elections?
    Quote Originally Posted by Zippyjuan View Post
    Ron Paul know some weird people...



    Quiz: Test Your "Income" Tax IQ!


    Short Income Tax Video

    The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes

    The Federalist Papers, No. 15:

    Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  9. #8
    Quote Originally Posted by Danke View Post
    So u r saying I haven't already benefited and have to wait until after the 2020 elections?
    It was supposed to happen last week. Did you miss it? Even Congress missed it. They were out of town.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.



  10. Remove this section of ads by registering.
  11. #9
    Quote Originally Posted by Zippyjuan View Post
    It was supposed to happen last week. Did you miss it? Even Congress missed it. They were out of town.
    That is the second round, he already cut taxes.
    Quote Originally Posted by Zippyjuan View Post
    Ron Paul know some weird people...



    Quiz: Test Your "Income" Tax IQ!


    Short Income Tax Video

    The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes

    The Federalist Papers, No. 15:

    Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  12. #10
    Quote Originally Posted by Danke View Post
    That is the second round, he already cut taxes.
    Well, since people complained that most of the first round went to the rich he promised a cut for the middle class just in time for the election. Be sure to vote Republican and it will be in the mail soon!
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  13. #11
    Quote Originally Posted by Zippyjuan View Post
    Well, since people complained that most of the first round went to the rich he promised a cut for the middle class just in time for the election. Be sure to vote Republican and it will be in the mail soon!

    you r really incorrigible. Rich pay more, so yes, they get more relief, but so did the middle class.
    Quote Originally Posted by Zippyjuan View Post
    Ron Paul know some weird people...



    Quiz: Test Your "Income" Tax IQ!


    Short Income Tax Video

    The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes

    The Federalist Papers, No. 15:

    Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  14. #12
    Quote Originally Posted by Danke View Post
    you r really incorrigible. Rich pay more, so yes, they get more relief, but so did the middle class.
    https://www.politico.com/story/2018/...tax-cut-924446

    Trump wants new middle-class tax cut 'of about 10 percent'

    President Donald Trump said today that he will propose a new tax cut “of about 10 percent” for middle-class Americans.

    “We’re giving a middle-income tax reduction of about 10 percent – we’re doing it now for middle-income people,” he told reporters. “This is not for business.”

    “That’s on top of the tax decrease that we’ve already given,” he said.

    Trump was vague on timing, saying “we’re putting in a resolution sometime in the next week or week and a half, two weeks,” but did not offer additional details. He said he would ask lawmakers to vote on it after the midterm elections.

    “I’m going through Congress,” he said, adding that he would not try to cut taxes through an executive order, as he's been pushed to do on capital gains taxes. “We’ll do the vote after the election.”

    His comments appear designed to rally GOP voters ahead of next month’s election and come amid mounting frustration among some Republicans that their tax cuts last year are not resonating with the public like they had hoped. Polls show Democrats have won the battle over public perceptions of the Tax Cuts and Jobs Act with many believing the law was overly generous to the rich and to big corporations.

    Trump’s comments also come days after Sen. Kamala Harris (D-Calif.), a potential 2020 Democratic presidential contender, called for a big new $6,000 tax break for people earning less than $100,000.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  15. #13
    What r u? A bot?
    Quote Originally Posted by Zippyjuan View Post
    Ron Paul know some weird people...



    Quiz: Test Your "Income" Tax IQ!


    Short Income Tax Video

    The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes

    The Federalist Papers, No. 15:

    Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  16. #14
    Quote Originally Posted by Danke View Post
    What r u? A bot?
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  17. #15
    Quote Originally Posted by Danke View Post
    What r u? A bot?
    Why do you think I called for him / it / they to be banned?
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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