Over the course of the presidential campaign, we’re going to hear a lot about how taxes need to be increased to help close the deficit rather than cutting spending. President Barack Obama has said many times that cutting spending would hurt the economy; however, new research shows otherwise.
In a great new video from Learn Liberty, Professor Antony Davies explains that, while minimum wage laws are passed with the best intentions, it generally hurts those that it’s intended to help because it forces employers to either cut hours or staff, leaving only the more productive workers with a job:
In the latest video from Learn Liberty, Prof. Antony Davies explains that the federal government spendings about $434 million an hour, over $10 billion a day. Davies notes that, at the current rate of spending, the federal government runs out of money on July 31st; meaning that in order to balance the budget, Congress would need to cut five months of spending:
We are often told about the size of the national debt, currently over $15 trillion. The problem is that many cannot fathom the numbers. However, the latest video from Learn Liberty, narrated by Antony Davies, frames the issue of the national debt in a way that most Americans can understand…by using it in terms of a family budget:
Let’s say you’ve voted to let the government choose what you’re going to eat for lunch. Would you be happy with that choice? Would other people around you be happy? Would everyone be in harmony or rather trying to brain each other because some fool ordered everyone peant butter and butter sandwiches? (Don’t laugh; my father eats those. I’m serious.)
Just think about it in a group of your friends. Nobody eats the same thing. I couldn’t imagine getting even the United Liberty group to agree on the same meal; George wouldn’t be a fan of alcohol, Doug would be upset if there wasn’t any alcohol, I would would crinkle my nose at anything more than token representations of vegetables, Brian would ask for our meal to just be Shamrock Shakes (and nothing else), Jason would be noting how many carbs everything has, Luthi would have mushrooms out the wazoo*, and…well frankly I have no idea what Tom would eat. Considering he’s from Georgia, probably the governor. Or since he’s a newspaper owner now, his competitor.
Professor Antony Davies from Duquesne University, in this latest video from the Economic Freedom Project, explains why that one scenario precludes the government from ever managing our economy, and the three criteria it would need to meet in order to make a command economy work. (Naturally, it fails three out of three. It wouldn’t even make it to the First Fourm, let alone the actual March Madness tournament.) So if it couldn’t even order lunch for a half-dozen people, why on earth would we think it could run an economy for over 300 million?
(Just for the record, I don’t know what Luthi would actually eat, either. Does he eat? I’m not sure.)
In the President’s address with regard to deficit reduction earlier this week, he mentioned maintaining and increasing “investment” in certain programs, as well as “asking” our biggest income earners to “pay a little more.”
With that in mind, this video from Learn Liberty, shows that tax revenues remain a fairly constant percentage of Gross Domestic Product, regardless of rate.
To see the chart in the video up close, click here.