Discussion about this post

User's avatar
Kham's avatar

I used to have some respect for BJG - she’s a progressive blinded by lies - name one progressive run city that’s thriving ? Doing well? She said nothing about children out of school knowing young low income kids suffered - businesses shut down - she supported crazy mask mandates vaccine mandates etc. - she’s as bad as the squad ,, sorry

Expand full comment
Marty Holloway's avatar

Progressive economics is Ptolemaic economics. Ptolemy and other geocentrists believed that the sun and planets revolved around the earth. Rather than accept the simpler heliocentric theory, geocentrists created increasingly elaborate and incorrect mathematical models to explain the heavenly bodies’ motion.

Similarly, progressive economics begins with a fundamentally flawed belief system. This 2016 statement from Bernie Sanders shows the core error: “You don't necessarily need a choice of 23 underarm spray deodorants or of 18 different pairs of sneakers when children are hungry in this country.”

Bernie Sanders described wealth and called it poverty. A grocery store that carries twenty three types of deodorant will also have ten varieties of apples in its well stocked produce section; fourteen different flavored yogurts; an entire aisle filled with breakfast cereals; pastas, breads, meats, cheese, desserts… Another store a few blocks away will be similarly stocked. This range of choices is the very definition of a wealthy society!

At its core, wealth is measured in options. Wealth is not measured in dollars, or land, or stocks, or other assets.

Again, wealth is measured in options. People and societies with a greater range of options are wealthier than those with fewer options. For example, America is much poorer now than at the beginning of the pandemic, and the last round of COVID relief accelerated the drawdown. The Fed’s reduced flexibility over the last year demonstrates this fact. In 2021 inflation was deemed transitory, and it was thought that the Fed MIGHT have to raise rates in 2022. Now, inflation is persistent and the Fed MUST raise rates at every opportunity through the end of the year. The Fed’s options have been greatly reduced over the past year; ergo, America must be much poorer than previously thought.

Just as wealth is measured in options, economic value is measured in productive output. Bernie’s statement shows that progressives misperceive wealth; similarly, progressives cannot understand economic value.

Raising the minimum wage without a corresponding increase in productivity is akin to converting from inches to millimeters and saying that everything is now 25X bigger. Except you are messing with people’s lives. For example, the median annual income in Mississippi is approximately $30K; conceivably, unemployment could hit 50% there under a $15/hour minimum wage. Nationally, unemployment and prices would rise, and some marginal (typically local and smaller) businesses would fail.

Progressive policies harm the most vulnerable-the opposite of their stated goal. The bottom economic rung is knocked out for the least skilled; the family owned hardware store closes while Home Depot thrives; and the poorest suffer most from the resulting inflation as the minimum wage doubles while everyone’s productivity-the true measure of economic value- is unchanged.

These deleterious effects are a natural consequence of progressive’s backward economic understanding. Progressive policies yield regressive results, as even Bernie’s statement implies. For he is saying that there are too many deodorant manufacturers and shoe companies employing too many people. His economic vision mandates consolidation into an oligarchy or similar wealth stunting economic system.

Expand full comment
61 more comments...

No posts