Doug Murray: Economy

Tue, 14 Jan 2003 13:46:16 GMT

Unemployment steady

Just for some perspective:

19 out 20 workers still had jobs in December, according to Labor Dept.

The 6.0% unemployment rate was a little above the 5.63% that it has averaged since 1948.

Tue, 14 Jan 2003 13:39:02 GMT

Tricky Trickle

When it is suggested that tax cuts go to the people who actually pay taxes and are therefore wealthy enought to use that money to create more jobs, the deriders yell "Trickle-down!" They want the cuts to go to those who pay no taxes.

They argue that the poor will then spend the money which will bring about new jobs by giving companies more money to create them (as tax cuts for taxpayers would do directly).

In other words, trickle-down is baloney but trickle-up makes sense.

Thomas Sowell says there is no trickle-down theory in economics. It's strictly a political thing. You don't say.

Fri, 06 Dec 2002 15:28:20 GMT

Unempoyment up in November

Okay, I was wrong. (Damn, that makes twice.) The unemployment rate surprised me and a bunch of other people by jumping to 6.0% and that's not good. But before declaring it a crisis, I like to remind myself that it still means 19 out of 20 Americans are working.

Wed, 04 Dec 2002 21:40:55 GMT

Taxes 101

Walter Williams does real good explaining just how taxes put a drag on the economy. For example:

Suppose I hire you to repair my computer. The job is worth $200 to me and doing the job is worth $200 to you. The transaction will occur because we have a meeting of the mind. Now suppose there's the imposition of a 30 percent income tax on you. That means you won't receive $200 but instead $140. You might say the heck with working for me -- spending the day with your family is worth more than $140.
You might then offer that you'll do the job if I pay you $285. That way your after-tax earnings will be $200 -- what the job was worth to you. There's a problem. The repair job was worth $200 to me, not $285. So it's my turn to say the heck with it.

There's more. Go read it all.

Sun, 01 Dec 2002 04:16:28 GMT

Economic woes

Wal-mart has its best day ever. New unemployment insurance applications are at a 21 month low. The Dow is up 1,500 points since mid-October. This weeks jobless figures will probably be just as discouraging.