Trump should compare France to Hong Kong and then follow Hong Kong’s example of less government!!!!

______________

Milton Friedman – A Limit On Spending

__________

Trump should compare France to Hong Kong and then follow Hong Kong’s example of less government!!!! Take a look at Friedman examination of Hong Kong in this episode below:

Milton Friedman PBS Free to Choose 1980 Vol 1 of 10 Power of the Market

 

Published on May 9, 2012

America’s freedom and prosperity derive from the combination of the idea of human liberty in America’s Declaration of Independence with the idea of economic freedom in Adam Smith’s Wealth of Nations. Friedman explains how markets and voluntary exchange organize activity and enable people to improve their lives. He also explains the price system. Friedman visits Hong Kong, U.S. and Scotland.

I’m very happy that we don’t have a one-world government, but my views have nothing to do with conspiratorial fears involving blue helmets and black helicopters.

Instead, I’m happy that there are lots of independent nations because that means lots of different approaches to public policy. And that means we have lots of real-life experiments about the relative merits of big government vs small government.

And this brings me joy because the evidence overwhelmingly shows that you get much better results when the size and scope of government is constrained.

Just compare France and Switzerland. Or look at the wreckage of communism. Or consider the prosperity of Hong Kong and Singapore.

Heck, I’ve put together all sorts of long-run comparisons to show that free markets produce much better results than statism.

This is also why I like federalism inside a nation. I think this decentralized approach leads to better policy, as we can see from Switzerland.

But it also means I have another set of real-life experiments about public policy.  And, once again, this brings a smile to my face because the data clearly show the negative consequences of big government.

It’s especially amusing to compare California and Texas. The Golden State is a playground for statist policies, including the highest income tax in the nation. The Lone Star State, by contrast, is famous for its laissez-faire approach and it doesn’t have any income tax.

And if you look at income data, we have very clear evidence that living standards are climbing much faster in Texas, particularly for the middle class.

I’m certainly not the only person to notice that there’s a clear link between good policy and good results.

Writing for Investor’s Business Daily, Vance Ginn of the Texas Public Policy Foundation compares Texas and California. He starts by noting that the Lone Star State and the Golden State share some common characteristics.

Texas and California…contribute 25% of U.S. economic output, have similar abundances of natural resources, and are where 20% of Americans reside.

But that’s where the similarity ends. California almost surely wins the battle for which state has the best climate and scenery, but Texas is way ahead when you measure economic freedom.

Texas has low taxes, no personal income tax, and less regulation, versus California’s high taxes, highest marginal personal income tax rate nationwide, and burdensome regulations. The Economic Freedom of North America report…ranks Texas as the third most free state and California as second worst. The Tax Foundation ranks Texas as having the 14th best business tax climate while California ranks third worst.

Vance then addresses the left-wing stereotype that Texas is a poverty-stricken backwater.

He looks at various measures and finds that Texas always comes out on top. There’s more poverty in California.

What about poverty? Taking the average over the 2013 to 2015 period, the Census Bureau provides the official poverty rate of 16.1% in Texas and 15% in California, which suggests that the critics are right. However, that rate doesn’t account for regional differences in housing costs or noncash government assistance. The supplemental poverty rate includes these factors and instead finds a rate of 14.9% in Texas while California has the highest rate nationwide at 20.6%.

But there’s more income in Texas.

What about real income? Average nominal median household income from 2010 to 2014 (in 2014 dollars) in California ($61,489) is 17% higher and nationwide ($53,482) is 1.7% higher than in Texas ($52,576). But, the Bureau of Economic Analysis’ regional price parities data for 2014 show that the cost of living for California is 17% higher and the U.S. average is 3.5% higher than in Texas. Therefore, real income in Texas purchases as much as in California and even more when you consider that Texas doesn’t have a personal income tax.

Vance then points out that there is more income inequality in California, which I generally think is an irrelevant measure.

In this case, though, it probably does matter because bad policy is causing disproportionate harm for the poor and middle class in California.

The column also looks at the jobs data (which will cause special angst for Paul Krugman).

In the last decade, Texas has been the economic and job creation engine as the real private sector expanded 29% in Texas compared with only 14% in California. Moreover, total civilian employment increased 1.2 million in California but 1.7 million in Texas, with a labor force two-thirds the size of California’s. This increase in Texas’ employment accounts for nearly one-third of all jobs created nationwide.

So what’s the moral of the story?

Vance closes his column with some very appropriate advice for the incoming Trump Administration.

The more you tax and regulate something, the less you get of it. Clearly, less government contributes to higher standards of living in Texas. …As the new administration and policymakers nationwide reassess which direction to take, it’s important to remember that spending is the disease and taxes are a function of that disease. Restraining spending growth while following the Texas model of free market capitalism would be an excellent way to get the economy, and personal finances, back on track.

None of this means policy is perfect in Texas, needless to say. There are several ways that policy could be improved.

But if you’re looking for general lessons about the relative merits of big government vs. small government, both Texas and California are role models. They teach us lessons about job creation. About business climate. About government efficiency. And about labor mobility. And the lesson is always the same: You get better results when government is smaller and less intrusive.

Last but not least, there’s even a very amusing joke about California, Texas, and a coyote.

Related posts:

FRIEDMAN FRIDAY Mark J. Perry@Mark_J_Perry July 30, 2016 10:46 am | AEIdeas Happy 104th birthday, Milton Friedman

Free to Choose: Part 1 of 10 The Power of the Market (Featuring Milton Friedman) Free to Choose Part 2: The Tyranny of Control (Featuring Milton Friedman Free to Choose Part 4: From Cradle to Grave Featuring Milton Friedman Mark J. Perry@Mark_J_Perry July 30, 2016 10:46 am | AEIdeas Happy 104th birthday, Milton Friedman Tomorrow […]

FRIEDMAN FRIDAY Champion of Liberty by Stephen Moore Friday, October 26, 2012

Free to Choose: Part 1 of 10 The Power of the Market (Featuring Milton Friedman) Free to Choose Part 2: The Tyranny of Control (Featuring Milton Friedman Free to Choose Part 4: From Cradle to Grave Featuring Milton Friedman Free to Choose Part 5: Created Equal Featuring Milton Friedman Champion of Liberty by Stephen Moore […]

FRIEDMAN FRIDAY Socialism, RIP Tottering European economies prove again the Keynesian model is a failure By Stephen Moore – – Sunday, July 12, 2015

Free to Choose: Part 1 of 10 The Power of the Market (Featuring Milton Friedman) Free to Choose Part 2: The Tyranny of Control (Featuring Milton Friedman Socialism, RIP Tottering European economies prove again the Keynesian model is a failure By Stephen Moore – – Sunday, July 12, 2015 ANALYSIS/OPINION: A few years ago, the […]

FRIEDMAN FRIDAY What Would Milton Friedman Say? Immigration opponents often try to claim the famed economist as an ally. They’re mistaken. By STEPHEN MOORE Updated May 29, 2013 8:31 p.m. ET

Free to Choose: Part 1 of 10 The Power of the Market (Featuring Milton Friedman) What Would Milton Friedman Say? Immigration opponents often try to claim the famed economist as an ally. They’re mistaken. By STEPHEN MOORE Updated May 29, 2013 8:31 p.m. ET One of the fascinating sideshows of the immigration debate within the […]

FRIEDMAN FRIDAY Obama loves the death tax but listen to what Milton Friedman had to say about it!!!

__ Obama loves the death tax but listen to what Milton Friedman had to say about it!!! Milton Friedman Redistribution of Wealth and the Death Tax ___________ The Obama Administration’s Assault on the Rule of Law September 6, 2016 by Dan Mitchell What’s the worst development in economic policy of the Obama years? The faux stimulus […]

FRIEDMAN FRIDAY Dan Mitchell and Milton Friedman: Subsidies for Higher Education Are the Problem!

Milton Friedman – Should Higher Education Be Subsidized? Published on Aug 14, 2013 Professor Friedman leads a roundtable discussion with students. http://www.LibertyPen.com Hillary Is Wrong: Subsidies for Higher Education Are the Problem, not the Solution August 24, 2016 by Dan Mitchell “So many bad ideas, so little time.” That’s my attitude about Hillary Clinton. She proposes […]

FRIEDMAN FRIDAY Milton Friedman and Walter Williams have explained, minimum wage laws are especially harmful for blacks!

Milton Friedman – A Conversation On Minimum Wage Published on Oct 4, 2013 A debate on whether the minimum wage hurts or helps the working class. http://www.LibertyPen.com Is Anybody Shocked that Higher Minimum Wage Mandates Are Resulting in Fewer Jobs? August 25, 2016 by Dan Mitchell While economists are famous for their disagreements (and their incompetent […]

FRIEDMAN FRIDAY Milton Friedman and Dan Mitchell look at the economics of medical care!!

Milton Friedman on Medical Care (Full Lecture) Another Grim Reminder that Obamacare Has Made Healthcare More Expensive August 29, 2016 by Dan Mitchell Way back in 2009, some folks on the left shared a chart showing that national expenditures on healthcare compared to life expectancy. This comparison was not favorable to the United States, which easily […]

FRIEDMAN FRIDAY 2 videos by Milton Friedman on welfare state plus 2 cartoons that illustrate the fate of socialism from the Cato Institute

__________   Cato Institute scholar Dan Mitchell is right about Greece and the fate of socialism: Two Pictures that Perfectly Capture the Rise and Fall of the Welfare State July 15, 2011 by Dan Mitchell In my speeches, especially when talking about the fiscal crisis in Europe (or the future fiscal crisis in America), I often […]

FRIEDMAN FRIDAY Milton Friedman has the two solutions to the Black Teenage Unemployment Problem!!!

Milton Friedman on Donahue Show in 1979 Milton Friedman has the two solutions to the Black Teenage Unemployment Problem!!! The solutions would be first to lower the Minimum Wage Amount and  second give students the opportunity to have vouchers so their parents can put them in the best schools when they start in the kindergarten […]

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: