Tuesday, 8 June 2010

Economics of Life

There's a poll that occurred. It was a couple of basic questions over economics given to folks of various political situations (far left liberal to middle-of-the-road guy, to the far-right-wing guy). The questions:

1) Mandatory licensing of professional services increases the prices of those services (If you were a liberal....you'd disagree...but the reality is that licensing increases cost).

2) Overall, the standard of living is higher today than it was 30 years ago (If you were a liberal....you'd disagree....but if you look around, things are a bit better than your dad ever dreamed of).

3) Rent control leads to housing shortages (If you were a liberal....you'd disagree, but you can examine New York City and find examples where rent control does little to fix shortages).

4) A company with the largest market share is a monopoly (If you were a liberal...you'd agree, but the problem is that you can't compare things in the market in such a manner...real life doesn't work this way).

5) Third World workers working for American companies overseas are being exploited (If you were a liberal, you agree, but you start to find higher standards of living in Mexico, China, and South Korea.....and it's hard to get folks there to admit they feel exploited).

6) Free trade leads to unemployment (If you were a liberal....you'd agree, but then you can't cite a single case where restricted trade leads to employment....the opposite of the statement, if you think about it).

7) Minimum wage laws raise unemployment (If you are a liberal....you'd disagree...but when you actually talk to real owners of companies and businesses....from small to large....they all indicate that minimum wage increases always drag up a review of hiring future employees. There's not a magic formula to this business concept of hiring).

The curious thing....from a ecnomic expert standpoint....liberal folks tended to get the answers wrong more often than anyone else.

So the question here is.....do liberals have a lack of understanding over economics? For most folks getting a liberal arts degree....a class or two in economics....is not required.

If you have liberal friends....ever noticed that a discussion on "bad banks"....is kinda limited in scope? If you ask how they got "bad".....they can recite two bullets from some show they watched last night but they can't remember anything beyond that. Then you ask how taxes relate to the government...and the discussion kinda dies right there.

So....it goes.

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