The Anticipation Effects of Business Regulation

Don Boudreaux at Café Hayek points out that minimum wage regulation has long term pernicious effects because businesses anticipate that government will constantly raise the wage floor above the market price. This means that the impact of the Seattle minimum wage is not only the difference between $15 and the current market wage, but also the anticipation that an anti-business city council will continue to raise that number in the future.  In response to this, employers will today try to adjust their business models -- mainly though automation -- to accommodate not only today's wage, but the $20 or $30 that will surely come in a few years.

The Anticipation Effect extends well beyond wage floors. Just a couple of weeks ago Amazon made the decision to expand its headquarters outside the city of Seattle. They did this not only because of the anti-business actions the current city council has taken, but because it had become quite clear that they could expect a tsunami of onerous regulation in the future.

Businesses are forward thinking even if government is not.

The Michigan Comeback

The table below is courtesy of the Wall Street Journal.
What do suppose changed in 2011 that didn't change in Illinois?
The date coincides with when Republicans took over the legislature and the governor's office. More directly it coincides with the reduction in both business and individual tax rates and enactment of the Michigan Right To work law.

So the lesson is pretty clear. If you want to keep your slow growth, you can keep on giving control to Democrats. That's what the people of Illinois apparently want. The people of Michigan opted instead to give control of the state to pro-growth Republicans.

Income Growth for Married Couples

Mark Perry created this chart from the newest census data. Over the last 70 years, real median income for households with two working spouses has increased by 3X. Perhaps the answer for those unhappy with their income is to get married and have your spouse get a job.

The Truth About Household Incomes

At the risk of bringing facts to an emotional fight with demagogues and the media, how exactly does one defend the notion (and it is just that) that median incomes in the country are falling?

Settled Science

The ”science is settled”.  In 2015 we are told (97% consensus according to the web site) that global warming is causing the Greenland ice sheet to melt. Two years later we find out that the Greenland ice sheet is increasing.

I don’t know what that actually means, but I’m 97% certain that “settled” isn’t part of it. At the moment I’m going to go with “don’t know jack”.

Why Price Gouging Laws Are a Bad Idea (in one photo)

They say a picture is worth a thousand words.
For those who can't understand verbal explanations of why laws that prohibit "price gouging" are a really bad idea., try this picture.
Apparently the price of Aquafina wasn't high enough to motivate this woman to, say, fill up containers in her home with tap water. If the price could be doubled or tripled, even this lady might rethink that. As a result of laws prohibiting this sort of rational pricing behavior, the people who come into the store after her will be unable to buy bottles of water. But at least they'll be unable to buy them at regular prices. Right?