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They Said It… With Vicente Fox, Grover Norquist and More

in Liberator Online Archives by James W. Harris Comments are off

(From the They Said It section in Volume 20, No. 7 of the Liberator Online. Subscribe here!) LEGALIZE DRUGS WORLDWIDE, SAYS FORMER MEXICAN PRESIDENT: Former Mexican President Vicente Fox“What the hell is going on with Mexico? Those kids, like you … were not born criminals.… And yet they die, and yet they [are] killed … on this so-called War on Drugs. … The way, I see, for coming out of that trap, is legalization … taking away a business that is run by criminals, to be run by entrepreneurs. … I’m an activist in trying to promote the change, worldwide if possible, and for all drugs.” — Vicente Fox, former president of Mexico (2000-2006), speaking at the 2015 International Students for Liberty Conference, February 15, 2015. LEGAL U.S. POT KILLING MEXICAN CARTELS: “Two or three years ago, a kilogram [2.2 pounds] of marijuana was worth $60 to $90. But now they’re paying us $30 to $40 a kilo. It’s a big difference. If the U.S. continues to legalize pot, they’ll run us into the ground. … The day we get $20 a kilo, it will get to the point that we just won’t plant marijuana anymore.” — “Nabor,” a Mexican pot grower interviewed by NPR’s “All Things Considered,” Dec. 1, 2014, quoted Feb. 9 at DailyCaller.com. MINIMUM WAGE KILLS BELOVED SAN FRAN BOOKSTORE: “Borderlands is closing. In 18 years of Borderlands Booksbusiness, Borderlands has faced a number of challenges. … But, through all those challenges, we’ve managed to find a way forward and 2014 was the best year we’ve ever had. … So it fills us with sorrow and horror to say that we will be closing very soon. In November, San Francisco voters overwhelmingly passed a measure that will increase the minimum wage within the city to $15 per hour by 2018. … The change in minimum wage will mean our payroll will increase roughly 39%. … Although all of us at Borderlands support the concept of a living wage in principle and we believe that it’s possible that the new law will be good for San Francisco — Borderlands Books as it exists is not a financially viable business if subject to that minimum wage. Consequently we will be closing our doors no later than March 31st. ” — Borderlands Books blog, “Borderlands Books to Close in March,” Feb. 1, 2015. GIVING ISIS WHAT IT WANTS: “The biggest proponent of an American invasion is the Islamic State itself. The provocative videos, in which a black-hooded executioner addresses President Obama by name, are clearly made to draw America into the fight. An invasion would be a huge propaganda victory for jihadists worldwide: irrespective of whether they have given baya’a to the caliph, they all believe that the United States wants to embark on a modern-day Crusade and kill Muslims. Yet another invasion and occupation would confirm that suspicion, and bolster recruitment.” — journalist Graeme Wood, “What ISIS Really Wants,” The Atlantic magazine, March 2015. SHEARING THE SHEEPLE: “China announces this coming year is the ‘Year of the Sheep.’ Here in the States, IRS chief announced: ‘We view all years that way.’” — tweet from Americans for Tax Reform president Grover Norquist, Feb. 14, 2015.

A Libertarian Approach to Black History Month – Part 2

in Communicating Liberty, Liberator Online Archives by Sharon Harris Comments are off

(From the President’s Corner section in Volume 20, No. 6 of the Liberator Online. Subscribe here!)

Recently, we examined some resources for Black History Month, a time which opens the door for discussions on issues key to libertarians.

This week I’m concluding with some more issue-oriented Black History Month resources and talking points.

First, a look at state-created poverty and unemployment affecting black Americans.

  • Race and Economics,” a short column by economist Walter Williams, examines this often-ignored point. Excerpt: “Some might find it puzzling that during times of gross racial discrimination, black unemployment was lower and blacks were more active in the labor force than they are today. … During the 1930s, there were a number of federal government interventions that changed the black employment picture.”
  • Walter Williams looks at the racist outcomes of the minimum wage more closely in “Minimum Wage’s Discriminatory Effects.” Excerpt: “Minimum wage laws have massive political support, including that of black politicians. That means that many young black males will remain a part of America’s permanent underclass with crime, drugs and prison as their future.”
  • Walter Williams’ outstanding 1982 short book The State Against Blacks (long out of print — check your library) — shows how numerous government programs, supposedly enacted to help blacks and the poor, have caused enormous harm to blacks (and others). 
  • In his 2004 column “A Painful Anniversary“ economist Thomas Sowell argues that the 1960s Great Society / War on Poverty programs helped destroy black families. Excerpt: “The black family, which had survived centuries of slavery and discrimination, began rapidly disintegrating in the liberal welfare state that subsidized unwed pregnancy and changed welfare from an emergency rescue to a way of life.”

Government’s role in protecting slavery and enforcing Jim Crow laws is often ignored. Yet of course it was government that created and defended such abominable and unlibertarian practices.

Still another fascinating topic tailor-made for Black History Month is the little-known history of how gun rights helped protect civil rights activists and advance the civil rights movement.

  • For starters, check out “Yes, Guns Are Dangerous. But They Also Save Lives and Secure Civil Rights“ by Damon W. Root of Reason magazine.
  • Also see this excellent review of the 2004 book The Deacons for Defense: Armed Resistance and the Civil Rights Movement by Lance Hill, from The Nation magazine. This book tells the remarkable story of the Deacons for Defense, who at their peak had several hundred members and twenty-one chapters in the South. 
  • Black Open Carry: Why Gun Rights and Civil Rights Need Each Other” is a provocative new Reason TV video. It examines the little-known long, intertwined history of the gun rights and civil rights movements, from slave revolts to Reconstruction-era armed resistance to the Black Panther Party. “One of the great untold stories about the civil rights movement was that it required violent resistance from blacks to be effective,” says historian Thaddeus Russell. Seven eye-opening minutes in length. 

New Study: Minimum Wage Hurts Low-Skilled Workers

in Business and Economy, Liberator Online Archives by James W. Harris Comments are off

(From the Activist Ammunition section in Volume 19, No. 25 of the Liberator Online. Subscribe here!)

A new paper from the National Bureau of Economic Research brings new weight to the argument that significant minimum wage increases hurt the very people they are intended to help — low-skilled workers, especially teens and minority workers.

minimum wageEconomists Jeffrey Clemens and Michael Wither examine the effects of the minimum wage increases in 2007, 2008 and 2009. They find that minimum wage increases have three devastating effects upon low-skilled workers: “minimum wage increases reduced the employment, average income, and income growth of low-skilled workers over short and medium-run time horizons.”

The study indicates that the minimum wage can keep low-skilled workers from moving up to a middle class income; such workers experience “significant declines in economic mobility.” Charles Hughes of the Cato Institute explains:

“Many of the people affected by minimum wage increases are on one of the first rungs of the economic ladder, low on marketable skills and experience. Working in these entry level jobs will eventually allow them to move up the economic ladder. By making it harder for these low-skilled workers to get on the first rung of the ladder, minimum wage increases could actually lower their chances of reaching the middle class.”

Adding weight to these findings is a report earlier this year by the non-partisan federal Congressional Budget Office estimating that a three-year phase in of a $10.10 federal minimum wage option would reduce total employment by a stunning 500,000 workers.

Diana Furchtgott-Roth, former chief economist of the U.S. Department of Labor, nicely summed up at MarketWatch the massive problems created for low-skill workers by the minimum wage:

“Minimum-wage laws criminalize low-skill work. Imagine being forbidden to work. That is the case for people with skills under $8.25 an hour. The federal hourly minimum wage is $7.25, and additional costs, such as Social Security, unemployment insurance, and workers compensation bring the cost of employment closer to $8.25. The minimum wage is one reason why the teen unemployment rate is 18%, the youth (20 to 24) unemployment rate is 11%, and the African-American teen unemployment rate is 28%. Those groups have markedly lower skills than average. …

“When the minimum wage is set above someone’s skill level, that person is left on the sidelines. If people cannot get their first job, how can they get their second or third? People who take minimum-wage jobs gain entry to the professional world. Once they are in, they can keep rising.”

A short, highly readable summary of the negative effects of the minimum wage is the 2004 booklet “Minimum Wage, Maximum Damage: How the Minimum Wage Law Destroys Jobs, Perpetuates Poverty, and Erodes Freedom” by Jim Cox, published by the Advocates and available at our online Liberty Store.

A Libertarian Approach to Black History Month

in Communicating Liberty, Liberator Online Archives by Sharon Harris Comments are off

(From the One-Minute Liberty Tip section in Volume 19, No. 3 of the Liberator Online. Subscribe here!)

Holidays and annual observances offer a great opportunity to present the ideas of liberty to new and receptive audiences. Every libertarian should collect a selection of facts and stories to share on those occasions. (We offer them frequently in the Liberator Online.)

February is Black History Month. This event, observed annually since 1976, opens the door for discussions on issues key to libertarians.

If anyone should be receptive to the message of libertarianism, it should be black Americans, who as a group have suffered from government oppression more than any other ethnic group in America, and whose historical and ongoing struggle for freedom is arguably the most dramatic one in our history.

And that story — the story of a people savagely oppressed by government power for centuries and bravely fighting to overcome that oppression — is one that Americans of all races would benefit from pondering. Libertarians have a unique angle to bring to that discussion.

As a start, I recommend “The Law Perverted: A Libertarian Approach to Black History Month,” an article by James Padilioni, Jr. of Students for Liberty. It will stimulate your thinking on this issue and provide a seldom-heard historical and theoretical background.

Black History Month is an excellent time to show how government coercion was and is the chief engine of the oppression of black Americans, as well as Americans in general. One obvious example is the War on Drugs, which is horrible for all society and from which blacks suffer disproportionately.

Here are some resources:

* “How the War on Drugs is Destroying Black America,” John McWhorter, Cato Institute.

* “Race and Prison,” drugwarfacts.org. Excerpt: “Mass arrests and incarceration of people of color — largely due to drug law violations — have hobbled families and communities by stigmatizing and removing substantial numbers of men and women. In the late 1990s, nearly one in three African-American men aged 20-29 were under criminal justice supervision, while more than two out of five had been incarcerated… orders of magnitudes higher than that for the general population. … In some areas, a large majority of African-American men — 55 percent in Chicago, for example — are labeled felons for life, and, as a result, may be prevented from voting…”

Another topic is state-created unemployment for black Americans. “Race and Economics,” a column by economist Walter Williams, examines this.

* Williams looks at the racist outcomes of the minimum wage more closely in Minimum Wage’s Discriminatory Effects.” Excerpt: “Minimum wage laws have massive political support, including that of black politicians. That means that many young black males will remain a part of America’s permanent underclass with crime, drugs and prison as their future.”

* Walter Williams’ 1982 book The State Against Blacks shows how numerous government programs, enacted supposedly enacted to help the poor have caused enormous harm to blacks and others.

* In his column “A Painful Anniversary“ economist Thomas Sowell argues that the 1960s Great Society / War on Poverty programs helped destroy black families. Excerpt: “The black family, which had survived centuries of slavery and discrimination, began rapidly disintegrating in the liberal welfare state that subsidized unwed pregnancy and changed welfare from an emergency rescue to a way of life.”

* Another fascinating topic tailor-made for Black History Month is the little-known history of how gun rights helped protect civil rights activists and advance the civil rights movement. For starters, check out “Yes, Guns Are Dangerous. But They Also Save Lives and Secure Civil Rights” by Damon W. Root of Reason magazine. Also see this excellent review of the 2004 book The Deacons for Defense: Armed Resistance and the Civil Rights Movement by Lance Hill, from The Nation magazine. This book tells the remarkable story of the Deacons for Defense, who at their peak had several hundred members and twenty-one chapters in the South.

* Ex-slave Frederick Douglass is one of the towering figures for liberty in American history.  A short libertarian look at Douglass is found in “Frederick Douglass, Classical Liberal: A fresh look at the political evolution of a great American,” a book review by Damon Root from the August/September 2012 issue of Reason magazine. Also, see  the Cato Institute’s libertarianism.org for more on, and by, Douglass.

* Finally, here’s a great collection of videos of black libertarians and classical liberals, past and present, speaking on liberty. They’re suitable for any time of year, of course, but Black History Month is a great time to share them.

Does Australia Disprove Arguments Against the Minimum Wage?

in Liberator Online Archives by Mary Ruwart Comments are off

Dr. Mary Ruwart is a leading expert in libertarian communication. In this column she offers short answers to real questions about libertarianism. To submit questions to Dr. Ruwart, see end of column.

Does Australia disprove arguments against the minimum wage?

QUESTION: A recent graphic going around Facebook asserts that Australia’s employment situation disproves the notion that a high minimum wage leads to higher unemployment. The graphic says the Australian minimum wage is the equivalent of $16.43 and their unemployment rate is Does Australia disprove arguments against the minimum wage?5.3%. Does this refute arguments about the minimum wage?

MY SHORT ANSWER: The real question is “Without the minimum wage, would employment be higher than it is now?” Almost all of the research suggests that the answer would be a resounding “yes.”

However, another aspect of raising the minimum wage is the destruction of jobs of our most disadvantaged workers (minorities, undereducated, etc.). As minimum wage rises, flipping hamburgers (for example) becomes more attractive to college students, teens saving for college, etc. Minorities without a high school diploma become less necessary to employers; as a result, the disadvantaged often end up with no job at all because they have few other options. Their primary bargaining chip is their willingness to take a little less pay than their advantaged counterparts.

To the extent that minimum wage laws take this option away, they destroy jobs for those who can least afford to be without one.

In his book The State Against Blacks, economist Walter Williams points out that expansion of the minimum wage laws was the primary cause for black teenage unemployment, which skyrocketed after 1950.

The disadvantaged in Australia have probably been displaced from the job market in favor of the advantaged because of their high minimum wage.

LEARN MORE: Suggestions by Liberator Online editor James W. Harris for further readings on this issue:

* “The Australian Minimum Wage Myth” by John Stossel, July 13, 2012. The award-winning libertarian journalist shows the devastating effect of the minimum wage on young, unskilled workers.

Excerpt: “In June, Australia’s unemployment rate for workers age 15 to 19 was 16.5%. Last December, 63% of all jobs lost were jobs for young, unskilled Australians.

“It’s simple: when the price of something goes up, people buy less. So when the price of labor goes up, employers hire less. …. The unseen consequences of minimum wage laws are the millions of poor, disadvantaged people who don’t have job opportunities. In the United States, it hurts poor people and inner-city minorities. In Australia, it hurts young workers.”

* “April unemployment down, as Australians stop looking for work, and full-time jobs give way to part-time work” is a short report by Roy Morgan Research, which describes itself as “Australia’s best known and longest established market research company.”

Excerpt: “In April 2013 an estimated 1.15 million Australians (9.3% of the workforce) were unemployed. This is down 1.5% from last month and is the lowest level of unemployment in Australia for nearly a year, since May 2012 (8.2%, 997,000).”

Minimum Wage, Maximum Damage by Jim Cox. This short (40 pages) idea-packed booklet annihilates the arguments for the minimum wage. It explains in clear, concise and compelling language how and why the minimum wage destroys jobs and causes great harm and suffering. It’s a great resource to quickly learn the best arguments against this misguided and misunderstood law. Published by the Advocates for Self-Government.

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Due to volume, Dr. Ruwart can’t personally acknowledge all emails. But we’ll run the best questions and answers in upcoming issues.

Dr. Ruwart’s previous Liberator Online answers are archived in searchable form.

Dr. Ruwart’s brand new book Short Answers to the Tough Questions, Expanded Edition is available from the Advocates, as is her acclaimed classic Healing Our World.