The crisis in Venezuela continues to get worse. On January 1st 2017, $1=$3,000 Bolivars, today $1=$8,000 bolivars. The inflation keeps getting worse and experts are now projecting over 2,000% inflation in 2018! The government keeps trying to seize more control to “fix” the economy. The insanity in Venezuela could easily be fixed if people only understood the government always makes matters worse and they never can help you! The free market and the private sector and embracing capitalism is the only way out!
Janet Yellen is taking back some comments she made back in London two weeks ago. Janet Yellen had said she really doesn’t see another financial crisis happening in our lifetimes. Why would she say this? She says this because she sees that government regulations can protect us. Dodd-Frank was passed as a response to the housing crisis and she really thinks this will protect us. The only way she thinks we will have another crisis is if we repeal this regulations! Yes, she’s already setting up the new narrative for the next crisis, DEREGULATION! Which of course that’s the cause of the next crisis at all. Big government and the fed are to blame. They are always the ones that cause crisis after crisis but they will never see it.
The state of Illinois is on the verge of bankruptcy. $15 Billion in unpaid bills and no budget plan going on 3 years running. The state legislature in Illinois has worked out a budget deal that’s suppose to pull the state back from the brink but it won’t! The budget bill doesn’t reform the pension problem in a meaningful way and it’s the underfunding of state pensions that has largely led to this debt in Illinois. The future obligation to pensions in Illinois is $251 billion! The state legislature thinks raising $5 billion in taxes by increasing the state income tax by 32% is a good idea! When will these politicians learn?
A new study from the University of Washington has shown that Seattle’s new $15 minimum wage is actually hurting those low skilled workers that it was intended to help! It’s amazing how people are still shocked by things like this but I guess maybe it shouldn’t be, since the average person out there is economically illiterate! Many of the so called “experts” out there are also economically illiterate!
A minimum wage is pricing low skilled labor out of the market entirely! If you can’t gain job experience from getting a first job, how in the heck do you climb the ladder to obtain that more skilled second job? This is just one more lesson of the government destroying the lives of those it’s intended to help. It’s a sad story indeed.
With the republicans in charge on Capitol hill, it seems we might just get some tax reform. Many republicans seem to think that if we can just cut taxes we can get the economy booming and the debt problem we have right now will be no more. This view sounds all well and good but if republicans are really thinking cutting taxes and at the same time growing the size of government will make things better, they are delusional! All government spending is taxation so therefore we need to cut the size of government in a meaningful way! That’s the only way out of this mess!