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Archive for the ‘Statism’ Category

I’m very happy that we don’t have a one-world government, but my views have nothing to do with conspiratorial fears involving blue helmets and black helicopters.

Instead, I’m happy that there are lots of independent nations because that means lots of different approaches to public policy. And that means we have lots of real-life experiments about the relative merits of big government vs small government.

And this brings me joy because the evidence overwhelmingly shows that you get much better results when the size and scope of government is constrained.

Just compare France and Switzerland. Or look at the wreckage of communism. Or consider the prosperity of Hong Kong and Singapore.

Heck, I’ve put together all sorts of long-run comparisons to show that free markets produce much better results than statism.

This is also why I like federalism inside a nation. I think this decentralized approach leads to better policy, as we can see from Switzerland.

But it also means I have another set of real-life experiments about public policy.  And, once again, this brings a smile to my face because the data clearly show the negative consequences of big government.

It’s especially amusing to compare California and Texas. The Golden State is a playground for statist policies, including the highest income tax in the nation. The Lone Star State, by contrast, is famous for its laissez-faire approach and it doesn’t have any income tax.

And if you look at income data, we have very clear evidence that living standards are climbing much faster in Texas, particularly for the middle class.

I’m certainly not the only person to notice that there’s a clear link between good policy and good results.

Writing for Investor’s Business Daily, Vance Ginn of the Texas Public Policy Foundation compares Texas and California. He starts by noting that the Lone Star State and the Golden State share some common characteristics.

Texas and California…contribute 25% of U.S. economic output, have similar abundances of natural resources, and are where 20% of Americans reside.

But that’s where the similarity ends. California almost surely wins the battle for which state has the best climate and scenery, but Texas is way ahead when you measure economic freedom.

Texas has low taxes, no personal income tax, and less regulation, versus California’s high taxes, highest marginal personal income tax rate nationwide, and burdensome regulations. The Economic Freedom of North America report…ranks Texas as the third most free state and California as second worst. The Tax Foundation ranks Texas as having the 14th best business tax climate while California ranks third worst.

Vance then addresses the left-wing stereotype that Texas is a poverty-stricken backwater.

He looks at various measures and finds that Texas always comes out on top. There’s more poverty in California.

What about poverty? Taking the average over the 2013 to 2015 period, the Census Bureau provides the official poverty rate of 16.1% in Texas and 15% in California, which suggests that the critics are right. However, that rate doesn’t account for regional differences in housing costs or noncash government assistance. The supplemental poverty rate includes these factors and instead finds a rate of 14.9% in Texas while California has the highest rate nationwide at 20.6%.

But there’s more income in Texas.

What about real income? Average nominal median household income from 2010 to 2014 (in 2014 dollars) in California ($61,489) is 17% higher and nationwide ($53,482) is 1.7% higher than in Texas ($52,576). But, the Bureau of Economic Analysis’ regional price parities data for 2014 show that the cost of living for California is 17% higher and the U.S. average is 3.5% higher than in Texas. Therefore, real income in Texas purchases as much as in California and even more when you consider that Texas doesn’t have a personal income tax.

Vance then points out that there is more income inequality in California, which I generally think is an irrelevant measure.

In this case, though, it probably does matter because bad policy is causing disproportionate harm for the poor and middle class in California.

The column also looks at the jobs data (which will cause special angst for Paul Krugman).

In the last decade, Texas has been the economic and job creation engine as the real private sector expanded 29% in Texas compared with only 14% in California. Moreover, total civilian employment increased 1.2 million in California but 1.7 million in Texas, with a labor force two-thirds the size of California’s. This increase in Texas’ employment accounts for nearly one-third of all jobs created nationwide.

So what’s the moral of the story?

Vance closes his column with some very appropriate advice for the incoming Trump Administration.

The more you tax and regulate something, the less you get of it. Clearly, less government contributes to higher standards of living in Texas. …As the new administration and policymakers nationwide reassess which direction to take, it’s important to remember that spending is the disease and taxes are a function of that disease. Restraining spending growth while following the Texas model of free market capitalism would be an excellent way to get the economy, and personal finances, back on track.

None of this means policy is perfect in Texas, needless to say. There are several ways that policy could be improved.

But if you’re looking for general lessons about the relative merits of big government vs. small government, both Texas and California are role models. They teach us lessons about job creation. About business climate. About government efficiency. And about labor mobility. And the lesson is always the same: You get better results when government is smaller and less intrusive.

Last but not least, there’s even a very amusing joke about California, Texas, and a coyote.

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It’s easy to define and/or understand most statist policies.

  • We know that a tax increase is when politicians take (or, given the Laffer Curve, try to take) more of your money based on your decisions to work, save, shop, or invest.
  • We know that protectionism is when politicians use taxes and other policies to restrict your freedom to buy goods and services produced in other nations.
  • We know that a minimum wage mandate is when politicians criminalize employment contracts between consenting adults, thus harming low-skilled workers.
  • We know that Keynesian “stimulus” is when politicians borrow from one part of the economy and spend in another part of the economy and pretend there’s more money.

The list is potentially endless, but there’s one statist policy – cronyism – that I haven’t added to the list because I haven’t thought of a simple definition.

Are bailouts cronyism? Yes, but it’s more than that. Are subsidies cronyism? Yes, but it’s more than that. Are favors in the tax code cronyism? Yes, but it’s more than that. Are trade barriers cronyism? Yes, but it’s more than that.

You’re probably noticing a pattern, which is why this new visual from the Mercatus Center is helpful. It illustrates that there are many policies that should be considered cronyism.

And Mercatus comes up with a definition that we can add to our list.

  • We know that cronyism is when politicians create “privileges that governments give to particular businesses and industries.”

Speaking of which, one of the most damaging features of cronyism is the way that it gives capitalism a bad name.

Many people equate free markets with “business.” So when people in the business sector get special favors, regular folks conclude that capitalism is a “rigged” system.

In theory, this false impression could be offset by an aggressive educational campaign by those who support free enterprise. Unfortunately, that task is rather difficult since many people assume Republicans are the pro-capitalism party. So when they see the GOP favoring corrupt handouts to business such as the Export-Import Bank and the sleazy ethanol program, they conclude – once again – that capitalism is rigged for the politically powerful.

And the battle to separate capitalism from cronyism is further hindered when major figures in the business world (such as Warren Buffett) get in bed with government.

Another example is Elon Musk, the head of Tesla, Solar City, and SpaceX. He is known as a visionary entrepreneur, which is good. But Andy Quinlan of the Center for Freedom and Prosperity explains that he also has put taxpayers on the hook to underwrite and prop up much of his business activities.

It was announced this week that one of Elon Musk’s companies, Tesla Motors, will buy one of his other companies, SolarCity, for an all-stock deal worth $2.6 billion. …With the amount of taxpayer support both companies have received, perhaps the rest of us should get a vote… The deal comes as SolarCity has floundered despite significant taxpayer support through a bevy of state and federal tax credits and subsidies. Nevertheless, the solar energy company’s stock has been in long term decline as the company struggles to develop a profitable market not reliant on generous helpings of taxpayer support. Tesla, too, has fed repeatedly at the government trough. The government provided federal loan guarantees and tax credits to help manufacture its electric vehicles. It also subsidized the purchase of those same vehicles to increase sales. Even still, the company makes more money selling “carbon credits” to other manufacturers than it does electric vehicles. …Musk’s other endeavor, SpaceX, also relies heavily on government. Obviously much of its business comes from government contracts, but more interesting is how those contracts are apparently obtained. …this year’s National Defense Authorization Act contains an amendment from Senator John McCain designed to eliminate from competition the Defense Department’s current supplier of rockets and pave the way for SpaceX to take over, despite the fact that its rockets aren’t yet powerful enough for the job.

Writing for Reason, Veronique de Rugy adds her insight

Elon Musk delivered a much-anticipated speech…where he laid out his vision for colonizing Mars…a testament to human innovation and determination. …it might be more impressive if Musk could provide a vision for how his companies can succeed here on Earth first, especially without heavy reliance on taxpayer support. …Musk is no stranger to cozy relations with federal and state governments. All three of his companies have benefited heavily from taxpayers. Yet despite generous green energy handouts, his SolarCity is heavily indebted. He now wants to merge it with his electric car company, Tesla Motors, which also benefited from almost $1.3 billion in subsidies. Solidifying his crony credentials, the epitome of crony capitalism itself, the Export-Import Bank of the United States, has subsidized the payloads for numerous SpaceX launches. The Ex-Im Bank’s chairman misrepresented this as support for “small business.” …There’s no doubt that Musk is an impressive salesman and innovator. …Now that he has set his sights on Mars, let’s hope—for the future of science and exploration—that he…has the courtesy to leave taxpayers out of it.

Amen.

It’s great when entrepreneurs are successful. And I don’t resent their wealth in the slightest.

But only if they earn their money honestly, in a genuinely free and competitive market.

Cronyism, by contrast, is a cancer that compromises and erodes genuine capitalism.

P.S. Let’s close on a more upbeat and entertaining topic, which is the bipartisan mockery of politicians.

I shared a very funny post about American leftists escaping to Canada after the Tea Party election of 2010.

Here’s some related humor about Canada closing the border for the next eight years.

One unfortunate aspect of being a libertarian is that you’re almost always unhappy about whoever becomes President. Indeed, I’ve only been pleased with one President who has served in my lifetime.

So I’m not overflowing with sympathy for Republicans who were unhappy after the 2012 election. And I’m similarly immune to feelings of empathy for Democrats who are unhappy about this election.

Especially the leftists who are engaging is hysterical hyperbolic histrionics (how’s that for alliteration!) about Trump. Here’s some great satire about the millennials protesting against Trump’s victory.

As anti-Trump rallies nationwide turned hostile overnight with widespread reports of violence, looting, vandalism, and death threats against the president-elect and his supporters, police in numerous major cities were able to instill calm and regain control by handing out participation trophies to all millennial protesters who were enraged about losing the election, sources confirmed. …“It’s a foreign notion to them. Even in sports—win or lose, everyone won, and everyone got a trophy no matter what. This is the millennial way,” he said. “So I had the idea—hey, why not start handing out participation trophies to the protesters, and telling them ‘Hey, you know what? You may have lost the election, but look—everyone gets a trophy. Everyone’s a winner.’” Seeing how the trophies had an instantaneous calming effect on the millennials and filled them with a sense of fulfillment and achievement, word spread quickly among police departments nationwide, and emergency trophies were procured by the thousands for use at the rallies.

Speaking of which, here’s an amusing image that has a serious message. I agree with leftists who fear that Trump may abuse the vast powers of the federal government. But they supported Obama’s dubious expansion of executive power, so they don’t have much credibility on the issue.

Reminds me of this clever poster that the Libertarian Party created to mock the Occupy crazies.

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A couple of days ago, I wrote about Clemens Schneider’s hypothesis, presented at the European Students for Liberty regional conference in Maastricht, that 1356 was a very important year in European history because of two events that promoted decentralization and federalism.

I also participated in the event and was asked to speak about “Ensuring Sustainable Prosperity in Europe.”

But I spent 90 percent of my speech saying there was very little hope of that happening. I highlighted three points.

  1. Europe is suffering from anemic growth and is falling further behind the United States.
  2. Demographic changes in Europe will likely cause even further economic stagnation.
  3. An ever-rising burden of government spending will further cripple economic performance.

To tie all these points together, I pointed out that worsening fiscal policy doesn’t necessarily mean economic decline. If nations make sufficient improvements in other policy areas (regulation, monetary policy, trade, rule of law and property right), then it is still possible to have more overall freedom and a stronger economy. Indeed, that’s basically what happened in developed nations after World War II.

But that hasn’t been happening in the 21st Century. Here’s a chart I prepared for the students showing changes in overall economic freedom in the major nations of Western Europe from 2000-present.

As you can see, other than Austria’s tiny increase and Greece’s unchanged (but still lowest on the list) score, economic freedom in Europe has been eroding. Indeed, the average decline is about .2 on a 0-10 scale, which isn’t trivial.

I also included the United States, which unfortunately has experienced the biggest decrease of all nations (thanks Bush and Obama!). And I’m disappointed that Switzerland (one of my favorite nations) also has moved in the wrong direction.

To conclude, there was a reprehensible American journalist named Lincoln Steffens who made a trip to the Soviet Union in 1919 and then told American audiences that, “I have seen the future, and it works.” Some might argue we shouldn’t judge him too harshly since it took time for the barbarity of communism to become apparent, but any ideology that puts the state over the individual is a priori evil in my humble opinion.

But I’m digressing. I cite Steffens’ infamous quote because I, too, have seen the future. It’s Europe. And it doesn’t work.

P.S. I did point out that the outlook for European is not theoretically hopeless. Even Greece could climb out of its statist malaise with sustained spending restraint and other market reforms.

P.P.S. My indictment of Europe, I explained, should not be interpreted as an endorsement of the United States. I explained that our long-run outlook was similarly grim (and will probably accelerate in the wrong direction because of the election).

P.P.P.S. Which is why I told the students in my conclusion that they should apply for Australian visas.

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I’m in Sweden today, where I just spoke before Timbro (a prominent classical liberal think tank) about the US elections and the implications for public policy.

My main message was pessimism since neither Donald Trump nor Hillary Clinton support genuine entitlement reform.

But I’ve addressed that topic many times before. Today, motivated by my trip, I want to augment my analysis about Sweden from 10 days ago.

In that column, I highlighted some research from Professor Olle Kranz showing that Sweden became a rich nation during a free-market era when government was relatively small. And as you can see from his chart (I added the parts in red), this is also when per-capita economic output in Sweden caught up with – and eventually surpassed – per-capita GDP in other advanced countries.

Then Sweden began to lose ground. Some of this was understandable and inevitable. Sweden didn’t participate in World War II, so its comparative prosperity during the war and immediately afterwards was a one-time blip.

But the main focus of my column from last week was to show that Swedish prosperity began a sustained drop during the 1960s, and I argued that the nation lost ground precisely because statist policies were adopted.

In other words, Sweden enjoyed above-average growth when it relied on policies I like and then suffered below-average growth when it imposed the policies (high tax rates, massive redistribution, etc) that get Bernie Sanders excited.

Today, let’s build upon Professor Kranz’s analysis by extending his calculations. He did his research in the early part of last decade, and we now have many years of additional data that can be added to the chart.

But before doing that, it’s worth noting that the years of additional data basically coincide with a period of market-oriented reforms in Sweden. A study from the Reform Institute in Stockholm explains some of what happened, starting with the stagnation caused by the era of big government.

The seventies and eighties saw Sweden’s tax burden rise from an average European level to the world’s highest. The public sector expanded vastly. All facets of the welfare system were made more generous in international comparison. Meanwhile, labour market regulation increased… Throughout these years, Swedes’ individual after-tax real income stagnated, private sector job creation ceased, and public debt spiralled higher. This culminated in a severe economic crisis in the early 1990s. By then, Sweden had fallen to 14th place in the GDP per capita rankings of OECD countries.

That’s the bad news.

The good news is that this economic misery led to market-oriented reforms.

When the onset of the financial crisis coincided with election of a market-oriented centre-right government in 1991, the reform process began in earnest. Most emphasis at the time was placed on reforms that opened significant sectors in the economy to greater competition. Moreover, an important feature of these regulatory reforms was that the crisis spurred local authorities to implement less burdensome regulation. …significant changes were introduced to the tax system, macroeconomic policy framework, and social insurance system. …every aspect of the Swedish economy has changed due to implementation of reforms. …public sector employment has declined.

To be sure, none of the means Sweden became Hong Kong. It is currently ranked only #38 by Economic Freedom of the World, and its score only improved from 6.92 in 1990 to 7.46 today, hardly a huge jump.

But we nonetheless can now check whether this period of modest reform yielded any dividends. And, looking at an updated and extended version of Professor Kranz’s chart, there certainly seems to be a clear relationship between pro-market policy and Swedish prosperity.

Call me crazy, but it seems like there’s a lesson here about the right recipe for growth.

P.S. The 16 countries in the comparison are Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Japan, Sweden, Switzerland, the United Kingdom, and the United States.

P.P.S. If you’re so disposed, you can watch my speech in Stockholm on Timbro’s Facebook page. If you prefer YouTube, the folks at CEPOS in Denmark saw the same speech (I only oppose wasteful forms of recycling) and they posted it yesterday.

P.P.P.S. If you’re interested in more information about market-oriented reforms in Sweden, check out Lotta Moberg’s video and Johan Norberg’s video.

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I live-tweeted last night’s debate between the Governor Mike Pence and Senator Tim Kaine.

As the debate closed, I summed up my reaction with two tweets, one of which sadly observed that Donald Trump does not share Ronald Reagan’s belief in smaller government and more freedom.

And because I’m fair and balanced, I also reminded people that Hillary Clinton is no Bill Clinton. Indeed, I pointed out that her vote rating in the Senate was almost identical to Bernie Sanders’.

That doesn’t mean Bernie and Hillary are identical.

I’ve remarked many times that he wants America to become Greece at 90 miles per hour while she seems content for the country to become Greece at 55 miles per hour.

But, in practice, they were almost always on the same side when it came time to cast votes on the floor of the Senate.

In any case, my tweet obviously touched a nerve since there were a bunch of (mostly incoherent) responses. And I also got this reaction from a law professor at the University of Baltimore.

I assume he thinks I was being juvenile to say that Senator Sanders is crazy. Since I actually am juvenile in many ways (particularly my sense of humor), I might be tempted to plead guilty.

But let’s actually contemplate how the Vermont Senator should be labeled.

Sanders is a virulent and dogmatic supporter of coercive statism. Even columnists for the Washington Post have criticized him for being too far to the left.

But he’s not a real socialist (which technically means government ownership of the means of production). And even though his policies are based on coercion, I certainly don’t think he is a totalitarian.

Yet he’s not a rational leftist like you find in the Nordic nations (where they at least compensate for large welfare states by being very market-oriented about trade, regulation, etc).

All this explains why, when categorizing different types of leftists, I put him in the “crazies” group along with the Syriza Party of Greece.

And while “crazies” might be a pejorative bit of shorthand, I do think folks like Bernie Sanders are largely detached from reality.

But I don’t want people to be upset with me, so I’m going to reconsider how Sanders should be categorized.

To help with this chore, let’s consider a few additional bits of information, starting with an item from his Senate office that contains this remarkable passage.

These days, the American dream is more apt to be realized in South America, in places such as Ecuador, Venezuela and Argentina, where incomes are actually more equal today than they are in the land of Horatio Alger. Who’s the banana republic now?

By the way, it’s not clear if this is a column written by Sanders or whether he just endorses the sentiments expressed therein.

Though it doesn’t really matter since – at the very least – he obviously agrees with the message.

So let’s think about what it means that Sanders views Argentina and Venezuela as role models.

Argentina used to be one of the richest nations in the world, ranked in the top 10 at the end of World War II. But then decades of statism, starting with Peron and continuing through Kirchner, wreaked havoc with the nation’s economy and Argentina has plummeted in the rankings.

And I’ve written many times about the basket case of Venezuela, so there’s already ample information to discredit anyone who thinks that nation should be emulated.

But let’s add one more straw to the camel’s back. Here are some excerpts from a very depressing story about the human misery being caused by big government in that country.

Klaireth Díaz is a 1st-grade teacher at Elías Toro School… Last year, she says, attendance was painfully low. Every day, of a class of 30 children at least 10 would be absent. “The reason was always lack of food,” she told Fox News Latino. She said she had a student who skipped class every single Thursday and when she asked his mother about it, she explained that Thursday was the day of the week assigned to her family to buy food at government-regulated prices – which involves standing in line starting sometimes as early as 3 a.m.

Food lines?!? That’s what Bernie Sanders thinks is a success story?

Though I guess if everyone has to wait in lines for food, at least they’re all equally poor (though even that’s not true since the ruling-class leftists in Venezuela have plundered the nation’s treasury).

In other words, maybe this image isn’t a joke or satire after all.

But it gets worse. The food lines apparently don’t provide enough food.

Across the country, teachers have said they have seen children faint or fall asleep because they haven’t had enough to eat. …As the school year progressed last year, Diaz said, she noticed more and more kids had stopped bringing lunch. …According to a poll conducted last month by More Consulting among 2,000 respondents in Caracas, in 48 percent of the times children do not attend school, the cause is related to the food. Either they are feeling too weak for lack of nutrition, or their parents rather use the transport money to buy food, or they are in the food lines with their parents. The poll revealed that 36.5 percent of children eat only twice a day and 10.2 percent just once.

So maybe Bernie Sanders isn’t crazy. If he views Venezuela as a role model, maybe he’s morally blind. Or genuinely evil.

But I’m a nice guy, so I’m sticking with crazy since I would hate to think that even a crank like Sanders willfully embraces the monstrous outcomes found in Venezuela.

P.S. I haven’t written about Ecuador, but if forced to choose among Bernie’s various success stories, I guess that would be my pick since it is 142 out of 159 in the rankings from Economic Freedom of the World, which surely is better than being Argentina (156) or Venezuela (dead last at 159).

To be fair to Sanders, at least he didn’t list Cuba, which is such an economic hell-hole that (if reliable numbers were available) it would presumably rank below even Venezuela.

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I like when leftists accidentally make the case for limited government.

  • The IMF, for instance, accidentally put together some solid evidence showing that a value-added tax is a money machine for bigger government.
  • A story in the New York Times, meanwhile, accidentally showed that politicians will hike taxes if they’re not constrained by tax competition.
  • And a statist in Illinois tried to argue that higher taxes don’t enable higher spending, but he accidentally showed that politicians raised taxes so they wouldn’t have to cut spending.
  • Another report in the New York Times accidentally acknowledged that genuine private savings is the best route to obtain a secure retirement.

You can look at more examples here, but you get the point.

And now we have another item for our collection.

Sean Davis of The Federalist must believe in taking candy from babies and in exploiting the weak and defenseless. I’m jumping to this uncharacteristic conclusion because he just body-slammed a very vulnerable target. To be more specific, he mocked Trevor Noah of the Daily Show for some amazingly vapid comments that inadvertently decimated the gun-free-zone argument of Barack Obama and Hillary Clinton.

You should read the whole thing, but here are some of the more relevant portions of Sean’s article.

Trevor Noah, the host of Comedy Central’s The Daily Show, accidentally destroyed the case for gun control during his show on Wednesday night. …The target of Noah’s ire was an ice cream shop owner in a small town southeast of St. Cloud, Minnesota — the site of a mass stabbing at a mall last weekend — who put up a sign outside of his restaurant that read, “Muslims Get Out.”

Sean then does something very unfair (at least in the mind of statists). He directly transcribes part of Noah’s diatribe so we can see his argument for ourselves (he also includes the video if you click through to see the full story from The Federalist). Here’s some of what Mr. Noah said.

…what’s also strange is this man genuinely thought people who go around blowing people up would be stopped by a sign? You realize you’re talking to terrorists, not vampires. They don’t need to be invited in, alright? Or maybe he’s onto something, because if you think about it, we’ve never tried that. We’ve never actually tried to repel terrorists with signs. Yeah, maybe that’s all the airports need is a sign that says “No Terrorists,” yes? Yeah, and then guys are going to be walking going, “Oh, I was going to blow up the airport, but the rules are rules and they said I can’t come in…”

If this was a play-by-play analysis, at this point I would say that Noah taped a sign to his own back that says “kick me.”

So Sean obliges with this understated observation.

Noah probably doesn’t know it, but he just accidentally made an airtight case against gun-free zones in particular and gun control in general. He is 100 percent correct: people hell-bent on murdering as many people as possible don’t really care about silly signs or laws that tell them not to murder people. A sign that says “No Guns” will no more keep a violent jihadi from gunning down a bunch of innocent people than will a sign that says “Muslims Get Out.”

Having exposed the giant flaw in Noah’s logic (if you could call it that), Sean then buries him under a pile of examples.

…how do we know that gun-free zones, nearly always marked with signs designating them as such, don’t deter murderous psychopaths? Because mass shootings, rather than happening at gun ranges or in gun stores, keep happening in gun-free zones. …The Sandy Hook massacre? Gun-free zone. Columbine? Gun-free zone. The Aurora movie theater shooting? Gun-free zone. The shooting last year at an Oregon community college? Gun-free zone. The shooting at a movie theater in Lafayette? Gun-free zone. The attack on a military recruiting center in Chattanooga? Gun-free zone. The Ft. Hood shooting? You guessed it: gun-free zone. The San Bernardino attack? Gun-free zone. And the massacre perpetrated by an ISIS enthusiast at an Orlando night club? Gun-free zone.

Being a generous soul, Sean concludes with some helpful advice.

A sign that says “Muslims Get Out” will do absolutely nothing to prevent radical Islamists from wreaking havoc. Trevor Noah understands this. If only he would learn to apply his logic to the argument from gun controllers that all we need to end violence are a few more signs telling terrorists not to use guns.

Reminds me of lesson contained in this Chuck Asay cartoon. Or in this amusing video.

Speaking of confused leftists, here’s a poster that is especially relevant given the racial unrest in Charlotte and elsewhere.

This young lady apparently is famous for appearing in Internet memes. She also showed up in this example of gun control satire.

Since we’re making fun of statists, let’s enjoy this story from the Boston Globe about a hack politician inadvertently boosting gun sales.

Massachusetts gun dealers sold more than 2,000 military-style rifles Wednesday — nearly one-quarter of the total sold last year — after Attorney General Maura Healey moved to bar semiautomatic rifles that have been altered slightly to evade the state’s assault weapons ban. The 2,251 assault rifles snapped up in a gun-buying frenzy represented a remarkable uptick from the 132 sold Tuesday and the 51 sold Monday, before Healey announced her ban. …The run on assault rifles raised questions about whether a policy designed to keep the high-powered weapons off the streets had instead unleashed a flood of them. …said Greg Malany, owner of GFA Arms TEC in Natick, which stayed open until just before midnight Wednesday to accommodate the line of customers that snaked out the door and onto the street. “We had to turn customers away,” he said.

Wow, makes you wonder whether Healey is actually an investor in the firearms industry.

Ready to repel the French barbarians

Let’s close with some good news on gun from overseas. It seems that there’s been an effort in Switzerland to discourage members of the militia from keeping guns at home. The only problem is that Swiss men don’t seem to share the anti-gun sentiments of “trade unions, churches, pacifists and centre-left parties.” Here’s some background.

All able-bodied Swiss men must do military service and have the option of keeping their army rifle at home. …Anti-gun campaigners have tried – and failed – on several occasions to ban military weapons from Swiss households. In 2011, Swiss voters rejected a controversial initiative on restricting access to firearms.

But a policy was implemented allowing men to store their guns outside their homes.

…since the beginning of 2010, members of the Swiss army have the option of storing their rifles, pistols and other weapons free of charge at arsenals or military barracks when they are not doing their military service.

So how many Swiss households took advantage of this opportunity?

As of the end of June 2016, only 789 army guns out of a total of 170,000 in circulation (0.5%) had been handed in to special military arsenals.

In other words, 99.5 percent of the militia did the equivalent of “voting with their feet” and chose to keep their weapons at home.

Now you can see why I call Switzerland the world’s most sensible nation.

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When Economic Freedom of the World is released every September, it’s like an early Christmas present. This comprehensive yearly publication is a great summary of whether nations have policies that allow people economic liberty.

I eagerly peruse this annual survey every year (here’s what I wrote in 2015 and 2014 if you’re curious about a couple of recent examples). And this year is no different.

Let’s start with the table that gets the most attention. Here’s a look at the top nations, led (as is almost always the case) by Hong Kong and Singapore. Switzerland also deserves some recognition since it has always been in the top 5.

The United States used to be a regular member of the top-5 club, but we have fallen to 16th in the rankings.

Which is just barely ahead of the supposedly socialist countries of Finland and Denmark (which actually are very market-oriented nations in every area other than fiscal policy).

I don’t show the nations in the bottom half of the rankings, but I assume nobody will be surprised to learn that Venezuela is in last place (though, to be fair, the communist hellholes of North Korea and Cuba aren’t in the rankings because of inadequate data).

One of the other great features of Economic Freedom of the World is that you can look not just how nations rank today, but also how the have changed over time.

I selected some nations of interest from Exhibit 1.4 in Chapter 1. Keep in mind, as you review this data, that you’re seeing scores every fifth year from 1970-2005 and then the annual scores beginning in 2005.

A few observations on these numbers.

  • Chile’s improvement has been dramatic, even though the nation has slipped a bit since 2007.
  • Australia’s jump from 1975-today also is remarkable, as is China’s improvement since it entered the rankings in 1980.
  • Hong Kong has been consistently superb, though it’s troubling that its score has weakened slightly since 2008. Singapore also has a modest trend in the wrong direction.
  • I didn’t know Israel was so bad back in 1980, or that New Zealand scored so low back in 1975, so kudos to both nations for big reforms in the right direction.
  • I tend to give Estonia a lot of love, all of which is deserved, but it’s worth noting that its Baltic neighbors of Latvia and Lithuania also are big success stories.
  • Speaking of overlooked success stories, Peru’s upward climb deserves a lot of praise.
  • Switzerland isn’t overlooked (at least by me), but the praise it gets is very well deserved since it manages to be sensible while all its neighbors make mistakes.
  • Last but not least, scores for the United States and Venezuela have both been falling, though thankfully we started much higher and have fallen at a much slower rate.

Now let’s take a closer look at America. The good news is that we’re in the top 20 for economic freedom. The bad news is that we used to be in the top 5.

I’ve been grousing for years that the Bush-Obama policies have eroded America’s competitiveness and undermined economic liberty.

This year, EFW has a special chapter on the United States and it confirms my analysis. Here’s a chart from that chapter showing how America’s score has declined in recent years.

And if you want some additional details, America’s score is declining first and foremost because the rule of law is eroding and property rights are less secure.

Which is a point I made last year, but EFW‘s chart is much better than my homemade version.

You can also see that protectionism has increased since 2000. And one shudders to think what will happen in this area over the next few years given the protectionist utterances of Donald Trump and Hillary Clinton (though I hope Hillary is lying and trade is an issue where she’s actually on the right side).

Heck, I’m worried about the next four years for reasons that go well beyond trade. I hope I’m wrong, but it seems that America faces a choice of a statist Tweedledee or a statist Tweedledum.

It’s almost as if the two major-party candidates have read the recipe for growth and prosperity and have decided to use it as a road map of what not to do. Sigh.

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