Tag: economics

Commentary: PolitiFact Says 90 Percent of Biden Stimulus Spending Not Directly Related to COVID-19

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President Biden’s $1.9 trillion “American Rescue Plan” could soon become law.

The budget-busting legislation, sold as emergency COVID response and “stimulus,” passed the Senate over the weekend. But even the liberal-leaning fact-checking website PolitiFact is pointing out that almost all of the bill’s spending is unrelated to the health effects of COVID-19.

“Total spending directly on COVID-19’s health impacts ranges from $100 billion to $160 billion,” fact-checker Jon Greenberg writes. “At the high end, direct COVID-19 spending represents about 8.5% of the bill’s $1.9 trillion cost.”

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Lawmakers Say Legislation Would Curb Ohio Unemployment Fraud

The Center Square
Unemployment line

As legitimate and fraudulent unemployment claims rose over the past year, and with additional federal jobless assistance most likely on the way, Ohio lawmakers have introduced legislation they hope cracks down on system abuse.

If the bill passes and is signed into law, Ohioans would be required to provide proof of identification at a local employment office before state or pandemic unemployment assistances would be paid.

Senate Bill 116 outlines proof as either a driver’s license or any of the two documents required to obtain an Ohio driver’s license that contain the applicants name and address, including a birth certificate, Social Security card and proof of Ohio residency, legal presence or name change.

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Ohio Prosecutors Support Bill to Force Convicted Rioters to Pay for Damages

The Center Square

Last summer, millions of dollars in taxpayer money were spent in response to protests that turned violent throughout Ohio. A bill proposed in the Ohio Senate looks to make sure those responsible will pay for it.

Senate Bill 41, currently being discussed by the Senate Judiciary Committee, calls for restitution from those who are convicted of property damage during riots, including vandalism. The restitution would pay the expenses of police and emergency crews who have to respond to riots. The bill also allows the government to take possession of any property left behind by those who end up convicted.

State Senator Tim Schaffer, R-Lancaster, is sponsoring the bill. Lou Tobin, the Executive Director of the Ohio Prosecuting Attorneys Association, offered his support before the committee recently.

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2021 Index Finds Rise in Global Economic Freedom, but U.S. Score Falls

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America’s economic freedom ranking has fallen to an all-time low, according to The Heritage Foundation’s 2021 Index of Economic Freedom.

The United States fell three places since last year and now ranks 20th in the world among countries evaluated, with an economic freedom score of 74.8 out of 100.

The 27th annual Index of Economic Freedom was released Thursday during a Heritage virtual event featuring Charles Payne, host of Fox Business’ “Making Money With Charles Payne.”

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Ohio Ranks First in Nation for Attracting New Business, Report Says

The Center Square

One of the nation’s leading economic development publications ranked Ohio as No. 1 in its state economic and business attraction rankings for bringing more corporate facility projects per capita than any other state.

Ohio also ranked second for total projects.

Site Selection, a corporate real estate economic development magazine, recently announced its rankings as part of its 2020 Governor’s Cup.

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‘My Income Has Dropped to Zero’: About 45 Percent of Small Businesses Risk Closure Within Months

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At least 13.9 million of the nation’s small businesses are at serious risk of shuttering their doors by April 1, a recent industry report found.

Forty-four percent of the country’s 31.7 million small businesses are at risk of closing by the end of the first quarter, according to small business group Alignable. Small businesses on the brink of closure expect to earn less revenue than their owners estimate is needed to stay afloat.

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Feds Threaten to Remove Work Requirement from Georgia’s Partial Medicaid Expansion

The Center Square

The federal Centers for Medicare & Medicaid Services (CMS) could decide in a matter of weeks whether it will remove the work or activity requirement in Georgia’s partial Medicaid expansion plan.

The CMS said the plan, which was approved by former President Donald Trump’s administration in October, does not “promote the objectives of the Medicaid program” and would be impossible to accomplish because of the COVID-19 pandemic.

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Tennessee Signed Contract With Consulting Firm While Also Investigating it for Role in Opioid Epidemic

The Center Square

Tennessee entered into a consulting contract with Washington-based McKinsey & Company consulting firm while the state attorney general was investigating the firm for its role in the opioid epidemic, state records show.

Tennessee Attorney General Herbert Slatery recently announced the state would receive more than $15 million from a multistate lawsuit settlement with McKinsey over the firm’s role in consulting opioid manufacturers on how to best market and profit from opioid drug sales.

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Forgotten Founder Pelatiah Webster: America’s First Economist

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by Lawrence Reed   Everybody knows who America’s first president was, but can you identify the country’s first economist? If any man or woman deserves that description, it is surely the one who wrote this and so much more: I propose . . . to take off every restraint and limitation from our commerce. Let trade be as free as air. Let every man make the most of his goods in his own way and then he will be satisfied. His name was Pelatiah Webster. Largely forgotten today, he was regarded as “the American Adam Smith” after his death in 1795 at the age of 68. His wisdom, especially on trade and money matters, deserves a renewed appreciation today. Webster was born in Lebanon, Connecticut, in 1726. Twenty years later, he graduated from Yale and became a minister in Massachusetts. By 1755, however, the lure of entrepreneurial opportunities took him to the business world of Pennsylvania. He was an almost instant success as a merchant, amassing a small fortune in the process. His reputation as an authority on matters of trade, finance, and currency was unmatched by anyone in the 13 colonies on the eve of the American Revolution. The…

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Trump to Honor Nashville Economist Laffer, ‘Father of Supply-Side Economics,’ with Presidential Medal of Freedom

Jason M. Reynolds

  President Donald Trump will present Arthur B. Laffer with the Presidential Medal of Freedom. The presentation will take place on June 19. Dr. Laffer is called the “Father of Supply-Side Economics” and is one of the most influential economists in American history, the White House said in a press release. Laffer is renowned for his economic theory, the “Laffer Curve,” which establishes the strong incentive effects of lower tax rates that spur investment, production, jobs, wages, economic growth and tax compliance, the White House said. Laffer was the first chief economist of the Office of Management and Budget and a top economic advisor to President Ronald Reagan. Among other accomplishments during his career, he served as a consultant to the Department of the Treasury and Department of Defense. Laffer’s public service and contributions to economic policy have helped spur prosperity for the nation, the White House said. Laffer is a native of Youngstown, Ohio, who lives in Nashville, Politico said. He moved with his business, Laffer Associates, from San Diego to Nashville in 2003, the Nashville Post said. The economist said he made the move because Tennessee does not have an income tax. His company provides international investment advisory…

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Commentary: Life Among the Academic Radicals

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by Evan Osborne   For almost a quarter century I have been a professor of economics at Wright State University in Dayton, Ohio. After years of working there, I have learned something about how my department’s academic radicals, who by dint of personality but not numbers have near-decisive control over many departmental decisions. WSU economics is a master’s-level department. How its radicals operate is utterly inconsistent with all that is best about Western universities. I would like to share whatever wisdom I have gained from working in this department to give readers a sense of how at least some on the academic left think about academic freedom, collegiality, and what makes for good scholarship and a good curriculum. The department has long had a reputation for advocacy of left-heterodox economics. I use that term, though the term the radicals themselves use is merely “heterodox” economics. That’s because in economics, pro-market schools such as the Austrians, despite being out of the mainstream, are not counted as “heterodox” by the keepers of this term’s flame. So defined, left-heterodox economics is critical of relying on market competition to achieve better economic outcomes, and the main arguments in favor of such competition are dismissed…

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North Carolina Economic Report Highlights $150 Million Revenue Surplus, ‘Solid Employment and Wage Growth’

A.P. Dillon

In the most recent N.C. Consensus Revenue Forecast, the Tarheel state boasts a revenue surplus of $150 million as well as “solid employment and wage growth.” “Results for the public and private sector are what really matter,” State House Speaker Tim Moore (R-District 111) said in a statement. “People are paying lower taxes in North Carolina and benefitting from a smart approach to state government and economic growth.” Highlights from the report: General Fund revenue is expected to increase by $1.7 billion and reach $25.8 billion by the end of FY 2020-21 Consistent, solid economic growth will continue throughout the upcoming biennium FY 2018-19 collections are expected to be above the budgeted amount by $150.8 million (0.6%) Stable, modest growth is expected to continue during the upcoming biennium General Fund revenue is forecast to increase by 2.2% over the amount collected in FY 2017-18 Employment should increase during both years of the 2019 biennium The state’s economy has made steady gains since the end of the Great Recession in 2009 by adding 75,000 to 95,000 jobs per year Strong sales tax growth; Partial credit is given to the June 2018 U.S. Supreme Court ruling (Wayfair) about online sales tax collection…

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Amazon’s New Move Will Gentrify Neighborhoods

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by Alexandra Staub     When large companies move into an area, politicians often proclaim how the new business will create jobs, increase tax revenues, and thus lead to economic growth. This is one reason local governments offer tax incentives to businesses willing to move in. Amazon’s decision to locate offices in Long Island City across the East River from Manhattan, and in Crystal City on the outskirts of Washington, D.C., follows this pattern. The New York location borders the largest low-income housing area in the United States, with mostly African-American and Hispanic residents whose median household income is well below the federal poverty level. These people, local politicians claim, will benefit from Amazon’s move to the neighborhood. However, when large companies with an upscale and specialized workforce move into an area, the result is more often gentrification. As economic development takes place and prices of real estate go up, the poorer residents of the neighborhood are forced out and replaced by wealthier ones. Is such a market-driven approach that accepts displacement ethically justifiable? And how do we even measure its costs? Can gentrification ever be ethical? Although politicians don’t typically frame gentrification as a question of ethics, in accepting…

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State House Majority Leader Glen Casada Commentary: Tennessee’s Economic Boom is on the Ballot This November

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by State House Majority Leader Glen Casada (R-Franklin)   It won’t be listed with the candidates’ names this November, but Tennessee’s economic boom will most certainly be on the ballot. Tennesseans have an important choice on Election Day: we can either back Donald Trump’s agenda of economic prosperity or fall for the Democrats’ plans to take it all away with far-left policies that failed us in years past. The choice is clear — and our state’s future economic growth depends on it. Backing the President’s agenda means backing Marsha Blackburn to replace Bob Corker in the U.S. Senate. A vote for Phil Bredesen, her Democrat opponent, is a vote to replace wealth and prosperity with hardship and division. In the past 20 months, thanks to President Trump, Tennessee has seen an unprecedented economic boom, and the state economy is growing at a faster rate than the nation as a whole. Tennessee currently has the lowest state unemployment rate on record, led the nation in small business growth last year, and Tennessee now has the lowest debt per capita of any state in the nation. Nationally, middle-class income hit an all time high, and our GDP growth is higher than the…

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President Trump to Hold MAGA Midterm Rally Oct. 1 in Johnson City for Marsha Blackburn, Will ‘Share Great News About Booming Economy’

Jason M. Reynolds
Tennessee Star

President Donald Trump will hold a Make America Great Again (MAGA) midterm rally Oct. 1 in Johnson City. The rally will be the president’s sixth in Tennessee – and first in Johnson City – since he began his first presidential race in June 2015, his campaign announced Monday. The rally will be held at 7 p.m. ET at the Freedom Hall. The president is expected to discuss the latest news on the booming Trump economy and the critical importance of protecting and expanding the GOP majorities in the House and Senate for his America First agenda. “We are pleased to announce our next scheduled Make America Great Again rally on Monday, October 1 in Johnson City, Tennessee,” said Michael Glassner, chief operating officer for Donald J. Trump for President Inc. “With just 44 days from today until the midterm elections, President Trump looks forward to sharing the great news about the booming economy that’s delivered new jobs and bigger paychecks to Tennessee families. The President will also remind Tennesseans of the critical importance to get out and vote for Marsha Blackburn for the U.S. Senate.” The public may register online for the rally here. You may only register up two…

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Globalist Sen. Lamar Alexander Bemoans President’s ‘Shot to the Foot’ From Tariffs

Jason M. Reynolds
Lamar Alexander

Sen. Lamar Alexander (R-TN) bemoaned President Trump’s “shot to the foot’” over tariffs on Fox News’ Journal Editorial Report. Tennessee’s senior senator, praising globalism, introduced the Automotive Jobs Act of 2018 Wednesday to delay the tariffs. He said, “Zero tariffs is exactly the right policy.” He also called for an end to the steel and aluminum tariffs which he said are hurting Tennessee’s auto industry and raising prices of the autos they make. He claimed the state exports cars around the world but could not answer a question as to how many are shipped out of the country. “Tariffs are shooting ourselves in the foot, really shooting ourselves in both feet,” Alexander said. He called for the reauthorization of NAFTA by September and said it has been good for Tennessee. Steel and aluminum tariffs remain in place and car tariffs will remain on hold if negotiations continue, Commerce Secretary Wilbur Ross said. Fox News quoted him as calling auto tariffs a “national security threat.” Watch the latest video at foxnews.com Calling on globalists The automotive act, co-sponsored by Sen. Doug Jones, (D-AL), would delay the tariffs of 20 to 25 percent on imported vehicles, CNBC said. The bill would require…

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Three Ways Milton Friedman Improved the Field of Economics

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Milton Friedman

by Luis Pablo De La Horra   Milton Friedman is probably the most important free-market thinker of the twentieth century. His ideas in defense of capitalism and economic freedom had an enormous influence on the shift towards free-market policies that took place from the 1970s onwards. Countries like the UK, China, Chile, or Estonia followed the economic recipes contained in best sellers like Free to Choose or Capitalism and Freedom, unleashing the power of free markets to create wealth and prosperity. Yet the contributions of Friedman as an economist are often overlooked by non-economists. Here are three that will help you understand a bit better his work. 1. On Methodology In 1953, Friedman wrote a very influential essay titled The Methodology of Positive Economics, where he puts forward what he thinks is the right methodological approach to economics. According to Friedman, the assumptions on which a theory rests don’t have to be realistic: as long as they are “sufficiently good approximations for the purpose in hand” (which is to make accurate predictions), the theory is valid and useful to analyze the world. Let’s draw upon an example to better understand what he meant. We are all familiar with the theory of perfect competition, which is based on…

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The Left’s Delusions on Economics and the Slow Decline of Human Employment

Julie Carr
Steve Gill

During Monday’s broadcast of The Gill Report – live on WETR 92.3 FM in Knoxville – conservative political commentator and Tennessee Star Political Editor Steve Gill questioned whether the left truly understands the dynamics of equality and economics and how mandating the rise of minimum wage may inadvertently deplete a human work force. Gill pondered, “Among the many things that kind of make me scratch my head and wonder about, well the left and those that don’t understand basic economics – kind of like the woman NBA player complaining about not getting paid as much as men.” He continued: When the WNBA creates 25 million a a year in revenue and the men’s NBA creates 7.4 billion in revenue. You can only pay what’s produced at the gate and until women’s basketball produces more fans more interest more viewership more butts int the seat. Women’s’ basketball players aren’t going to get paid what men’s basketball players get paid when they generate the eyeballs. It’s simple economics. You’re also seeing folks on the left complain that we’ve got to raise the minimum wage. And were seeing it take place around the country. Where some places are seeing $15.00 minimum wage at fast…

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Memphis, Knoxville Among Worst Cities, USA TODAY Says of Towns It Calls Home

Jason M. Reynolds
Memphis

Media giant Gannett has compiled a list of what it says are the 50 worst cities to live in, and some of the top locations are towns where it operates newspapers, including two in Tennessee. USA TODAY compiled the list using data from 24/7 Wall Street, a website that publishes financial news and opinion. 24/7 Wall Street created an index of eight categories: crime, economy, education, environment, health, housing, infrastructure and leisure, to identify the 50 cities. Memphis comes in as the 4th worst city in which to live, just ahead of Cleveland, Ohio, at 5th worst. The 36th worst is Knoxville. Gannett owns The Knoxville News-Sentinel and The Commercial Appeal in Memphis. Nashville, home of The Tennessean, did not make the list. USA TODAY admits that quality of life is a subjective measure. “Quality of life is subjective, and difficult to measure,” Gannett’s story says. “Still, there is a wide range of quantifiable factors that can impact quality of life in a given area. Affordability, safety, job market strength, quality of education, infrastructure, average commute times, air quality, and the presence of cultural attractions are just a few examples of factors that can influence overall quality of life. “Cities…

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Commentary: The Absurdity of Keynesian Economics

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John Maynard Keynes

by Roger W. Garrison   The economics of John Maynard Keynes as taught to university sophomores for the last several decades is now nearly defunct in theory but not in practice. Keynes’s 1936 book, The General Theory of Employment, Interest, and Money, portrayed the market as fundamentally unstable and touted government as the stabilizer. The stability that allegedly lay beyond the market’s reach was to be supplied by the federal government’s macroeconomic policymakers—the president (with guidance from his Council of Economic Advisers), the Congress, and the Federal Reserve. The acceptance in the economics profession of fundamentalist Keynesianism peaked in the 1960s. In recent decades, enthusiasm for Keynes has waxed and waned as proponents have tried to get new ideas from the General Theory or to read their own ideas into it. And although the federal government has long since become a net supplier of macroeconomic instability, the institutions and policy tools that were fashioned to conform to the Keynesian vision have become an integral part of our economic and political environment. A national income accounting system, devised with an eye to Keynesian theory, allowed statisticians to chart the changes in the macroeconomy. Dealing in terms of an economy-wide total, or aggregate, policy…

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Michael Novak Commentary: How Christianity Created Capitalism

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Michael Novak

by Michael Novak   Capitalism, it is usually assumed, flowered around the same time as the Enlightenment–the eighteenth century–and, like the Enlightenment, entailed a diminution of organized religion. In fact, the Catholic Church of the Middle Ages was the main locus for the first flowerings of capitalism. Max Weber located the origin of capitalism in modern Protestant cities, but today’s historians find capitalism much earlier than that in rural areas, where monasteries, especially those of the Cistercians, began to rationalize economic life. It was the church more than any other agency, writes historian Randall Collins, that put in place what Weber called the preconditions of capitalism: the rule of law and a bureaucracy for resolving disputes rationally; a specialized and mobile labor force; the institutional permanence that allows for transgenerational investment and sustained intellectual and physical efforts, together with the accumulation of long-term capital; and a zest for discovery, enterprise, wealth creation, and new undertakings. The Protestant Ethic without Protestantism The people of the high Middle Ages (1100—1300) were agog with wonder at great mechanical clocks, new forms of gears for windmills and water mills, improvements in wagons and carts, shoulder harnesses for beasts of burden, the ocean-going ship rudder,…

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