no third solution » Subsidize This!
How Much Will the Bailout Cost You?
FT is reporting that the cost of the bailout will be upwards of $700 Billion. That’s a lot of lettuce. Assuming 150M taxpayers in the U.S., that works out to about $5,000 per person. That’s the right now cost. If it had to be paid for right now, it couldn’t be done. Unfortunately, the government isn’t going to pay for it right now, they’re going to finance it, putting up your productivity and acquiescence as collateral. Those $5,000 will be compounded by invisible inflation that will mysteriously be “adjusted” away in the officially reported core inflation Index du jour, and a crushing tax burden sure to follow. President Bush said the administration was faced with preventing the collapse of a financial “house of cards”. “People are beginning to doubt … Read entire article »
Filed under: American Politics, Economics Lessons, Subsidize This!, Taxation is Theft
Comments on Comments #23
Regarding the Zoo millage, which passed overwhelmingly: “I’m thrilled,” said Liz Kaczmarek, 30, of Clinton Township, who takes her nieces and nephews to the zoo frequently. “I don’t know a person who knows about the zoo millage who said they were going to vote no.” I didn’t vote at all. But even if I had, Liz, you wouldn’t have given a damn what my opinion was, because there simply aren’t enough of me. Eric Ogunbase left a comment in response to my original post on the subject, A Zoo is Not a Public Good: Growing up in San Diego makes one a “Zoo Snob”. However, I’ve been to both zoos (born in Hutzel Hospital many moons ago). I think the tax dollars of those in Wayne, Oakland and Macomb counties could be used for … Read entire article »
Filed under: Economics Lessons, gold bugging, Michigan, personal finance, Subsidize This!, Taxation is Theft
Economies of Scale, the Faustian Bargain
Some people say that Wal-Mart does a good job providing low-cost goods, and its success is indicative of its superior ability to satisfy customers. But I can win any game, if I’m allowed to write and re-write the rules on a whim. Consider that recently, Wal-mart favored the recent minimum wage hike. Already paying its employees significantly more than the minimum wage, Wal-mart had nothing to lose, but the effects of such legislation would be a blow to smaller competitors. The retailers and smaller stores on the margin, and the people who work at those stores were the ones who as a result, face artificially high barriers to entry. Even some of the bigger stores began automating processes previously performed by lower-wage employees. This is but one solution to the challenges of … Read entire article »
Filed under: Agora!, ponderings, Subsidize This!