Advertisements

Modern Socialist Success Story: Venezuelans Celebrate Spectacular Economic Abundance, Party Hard in the Streets of Caracas

CrS_qXBWgAAkjHd.jpg-medium

A forceful repudiation of the leftist politics that are falling out of favor across Latin America.

…The demonstration, aimed at speeding up a recall campaign against the 53-year-old president, was also a forceful repudiation of the leftist politics that are falling out of favor across Latin America.

At its peak in 2008, the left held the presidencies of eight of the 10 most populous countries in South and Central America. But those regimes have lost popularity as steep drops in commodity prices badly damaged their economies and left less money to spend on the poor.

160901-venezuela-protesters_93a9b00eee9bba8fee04cb27bad5ad1b-1.nbcnews-ux-2880-1000

Candidates from the right recently won the presidencies of Argentina and Peru, and just this week, Dilma Rousseff was permanently ousted from the presidency in Brazil in an impeachment trial engineered by opponents from the right who now control the government.

1024x1024

But nowhere in Latin America has the rise and fall of the left been as dramatic as in Venezuela, a country that has been on the brink of collapse for the last several months.

Venezuela had its own brand of socialism, known as Chauvismo for Hugo Chavez, the charismatic leader who was elected president in 1998 in a rejection of free-market policies that were encouraged by the United States but failed to deliver on their promise of wider prosperity. Read the rest of this entry »

Advertisements

Minimum Wage Effect? January to June Job Losses for Seattle Area Restaurants (-1,300) Largest Since Great Recession

minwage

Seattle minimum wage hike is getting off to a pretty bad start.

In June of last year, the Seattle city council passed a $15 minimum wage law to be phased in over time, with the first increase to $11 an hour starting on April 1, 2015. What effect will the eventual 58% increase in labor costs have on small businesses, including area restaurants? It’s too soon to tell for sure, but there is already some evidence that the recent minimum wage hike to $11 an hour, along with the pending increase of an additional $4 an hour by 2017 for some businesses, has started having a negative effect on restaurant jobs in the Seattle area. The chart above shows that the Emerald City MSA started experiencing a decline in restaurant employment around the first of the year (when the state minimum wage increased to $9.47 per hour, the highest state minimum wage in the country), and the 1,300 job loss between January and June is the largest decline over that period since 2009 during the Great Recession (data here). The loss of 1,000 restaurant jobs in May following the minimum wage increase in April was the largest one month job decline since a 1,300 drop in January 2009, again during the Great Recession. In contrast to the January-June loss  of restaurant jobs in the Seattle area: a) restaurant employment nationally increased by 130,700 jobs (and by 1.2%) during that same period (data here), b) overall employment in the Seattle MSA increased 1.2% and by 21,800 jobs (data here) and c) non-Seattle MSA restaurant employment in Washington increased 3.2% and by 2,800 jobs (data here). Read the rest of this entry »


Inflation Fixes Nothing

pic_giant_102813_SM_Inflation-Fixes-Nothing

But it’s easier than acting like responsible adults

I saw this article yesterday, and thought it looked suspicious. Rather than go blind with despair over the NYT’s familiar habit going into battle facing the wrong way, I hoped Kevin Williamson might be scanning skies above Gotham, see the Bat signal, and make an appearance. My wish is granted:

Kevin D. Williamson writes: The New York Times has published a very interesting article forwarding a number of familiar arguments that the Federal Reserve should try to increase inflation in order to encourage economic growth. Without going too deeply into the fallacies behind the idea that higher inflation is a means to strong and sustained economic growth, it is worthwhile to examine the wishful thinking and euphemisms that inform the Times’s account.

Item 1: “Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly.”

Let’s take a look at these claims in order. Read the rest of this entry »