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Tag: economic liberty

When "Experts" Set Policy, Citizens Lose Control of Their Own Government

It is tempting to have faith in “science” when it comes to public policy during an emergency. However, as the coronavirus pandemic episode shows us, “experts” can be just as wrong and harmful as the politicians hiding behind them. Type into a search engine “trust science.” Check news and op-ed results. You’ll be hard-pressed to find any counterpoint to the notion that America and its government must unite in submission to the experts.  Perhaps what’s driving this prevalent attitude is not just fear of Covid-19. Amid a presidential election year, our society is more hyper-politicized than ever. What could be more non-political than science itself? Its cold calculations offer a comforting escape from the hot air. However, there is a catch. That is, living under a technocracy and sacrificing self-government in the process. Indeed, this has been a trend in American governance for a long time.  There are experts advising or running unelected boards, commissions, bureaucracies, and agencies all around us. Think of the Federal Reserve or the Office of the Surgeon General, both created in the Progressive Era. In a technocracy, there’s no representation or accountability. The politicians simply yield to the health specialists or some guru who has looked at the data. Even if this solves some problems, the sterilization of the people and their democratic processes isn’t worth it in the long run. The truth is the experts often get it wrong, not to mention they are still only human, subject to political or ideological biases or other interests like ambition. If they’re making decisions for the country, and likely pulling in a decent tax-subsidized salary, shouldn’t they earn the support of the people or otherwise be held to account for failure?  Take the current surgeon general, Jerome Adams, for instance. On February 29th, the day after the first U.S. death from Covid-19, he tweeted, “STOP BUYING MASKS!” and urged Americans to stay home. That tweet didn’t age well. Masks are now required for virtually all people in some areas of the country, or in some retail chains like Costco. Staying at home was what 66 percent of New Yorkers hospitalized with coronavirus were doing. As science fiction writer Arthur C. Clarke wrote, “For every expert there is an equal and opposite expert.” The Trump administration’s coronavirus task force head, Dr. Deborah Birx, reportedly told the director of the U.S. Centers for Disease Control and Prevention (CDC) that there is “nothing from the CDC that I can trust,” according to the Washington Post It’s possible that some scientists skew their research for financial gain or political prestige. That isn’t known to be the case during this pandemic so far, but it’s not exactly an exercise in mere hypotheticals either.  In November 2015, Stanford News reported that a “pattern” of scientists fabricating their data spurred the development of a sort of lie detector for research publishing. Even with good intentions, basing public policy purely on “science” can have disastrous effects. It’s estimated some 75,000 people will die “deaths of despair” as a result of the lockdowns.  That doesn’t include those who will die for lack of important surgeries or cancer treatment and screening, as a result of the lockdowns. In America, do we still hold to the belief that our government is of, by, and for the people? At the very least, the second category, by the people, seems unpopular during the spread of Covid-19. Government by the experts is more comforting these days. But what about tomorrow? We may regret it.

South Korea Considers Deregulation to Boost Its Economy

Last month, South Korea’s finance ministry announced that it has identified 10 industrial sectors that it wants to see privatization take place in. Among the sectors included in the reforms are artificial intelligence, biotechnology, e-commerce, fintech, new medical technologies, and tourism. The main purpose of the reforms is to develop services and technology with fewer regulatory constraints. Under these proposals, companies in the aforementioned sectors will be allowed to operate more freely. regulation deregulation south korea South Korea has been a regional leader in terms of economic development and one of the most high profile economic miracles of the past 50 years. It is currently ranked as the 29th most economically free country in the world. It joins the other Asian Tigers  — Taiwan, Singapore, and Hong Kong, as an economic juggernaut in the region. South Korea still has work to do in regards to labor freedom and government integrity, but it’s light years ahead of its neighbor North Korea. This is quite possibly the starkest country A versus country B comparison you will find out there. South Korea is a paragon of modernity and social cohesion. On the other hand, North Korea is a communist garrison state whose people and even soldiers are starving to death, thanks to the collectivist reforms set in place by the nation’s first leader Kim Il-sung and his successors, Kim Jong-il and Kim Jong-un. Even China, a country that transitioned from Maoist authoritarianism to a more rational economic approach under reformist leader Deng Xiaoping, still lags behind South Korea on development indicators. Not coincidentally, China is ranked in a sub-par 100th place in the Heritage Foundation’s Index of Economic Freedom. This success story did not happen overnight. South Korea was one of Asia’s most destitute countries beginning in the 1950s. In fact, its standard of living was comparable to many underdeveloped nations in Africa at the time — per capita income stood at less than $100 in South Korea. However, this did not discourage South Korean leaders. Instead of buying into Keynesian or radically redistributionist dogmas, the country opted for a middle-of-the-road approach that was relatively business friendly, promoted high savings, and protected property rights. The second factor —savings — is one of the pillars of a modern economy and how civilizations are able to perpetuate themselves. It’s only fitting that South Korean leaders take these logical next steps and continue to liberate South Korea’s economy so that the country can reach its full potential.  

Is Gov. Abbott Right About People Moving to Texas?

On January 21, 2020, Texas Governor Greg Abbott claimed that Americans were “fleeing” to his state in search of better economic opportunities. In an interview on Fox and Friends, Abbott said, “700,000 people fled California. When you consider the beautiful climate out there, it’s something else to imagine 700,000 fleeing there.” Abbott cited specific states such as Illinois and New Jersey as commonplaces of origin for people choosing Texas as their new home. “You have people fleeing Illinois, New Jersey, other states because they’re trying to get away from the things that hamstring capitalism and hamstring their ability to start and grow a business.” Abbott’s statements echoed former Governor Rick Perry’s calls for Californians to move to Texas in 2013. Perry cited Texas’s pro-growth policies as an incentive for Californians to relocate and start anew. Last fall, the Los Angeles Times and the University of California, Berkeley, partnered together in a study that reported that slightly over half of registered voters are contemplating leaving the state. Forty percent of those surveyed who were flirting with a move were conservative. On the other hand, 14 percent were liberal. Those leaving California partially attributed the desire to move to a more conservative political climate as one of the reasons for their departure. The trend of people moving from blue to red states is starting to become very apparent to commentators across the nation. Widespread reports reveal there are clear public policy differences that make certain states more expensive to live in and more devoid of economic opportunities. In light of this, people make the rational decision to vote with their feet. We must always remember that public policy matters; nothing in politics happens by coincidence. From a public policy standpoint, Texas’s pro-business reputation is strongly merited. According to the Cato Institute’s Freedom in the 50 States index, Texas is ranked 10th place for overall freedom. On the other hand, states like Illinois, New Jersey, and California are ranked 36th, 46th, and 48th respectively. Overall, Texas’s business-friendly policies make it attractive for people searching for better work opportunities and to raise a family. Texas still has work to do on occupational licensing matters, where it is ranked in 49th place according to Cato’s index. However, it still offers a considerably more optimal business environment when juxtaposed to blue states. The silver lining of this trend is how the U.S.’s federalist system permits states to compete with one another on public policy. When one state becomes too oppressive in certain regards, other states can position themselves as freedom-respecting alternatives. As more people flood out of anti-freedom states, policymakers will have to ask themselves why these people are leaving in the first place. Texas’s success story should serve as a model for California. At the very least, blue states can stem their bleeding by rolling back some of their tax and regulatory policies. If they fail to do so, more residents will continue to leave those states in search of greener pastures.

Will Rent Control Fix California’s Housing Problems?

Recently, the Sacramento Bee published a piece detailing some of the struggles residents of California are facing. One particular problem that has emerged in America’s post-Great Recession environment is that of regional housing crises. California has been heavily impacted. The state is receiving national attention for its growing homelessness crisis. Activists have stepped up their proposals to solve the housing problem and rent control is a commonly advised solution In Sacramento, the activism was so strong that, last August, the Sacramento City Council came to a compromise that capped rent increases for properties built prior to 1995 to between 6 and 10 percent, and limited no-fault evictions for renters who have lived in their housing unit for at least a year or longer. However, many activists believe this compromise and even California’s current rent control laws do not go far enough. Instead, they are pursuing a ballot initiative that limits rent increases to five percent, establishes an elected rent board, and curbs no-fault evictions for tenants no matter the length of their residency. The sentiment behind calling for rent control is understandable. Homeownership has been on the ropes since the Great Recession, which saw millions lose their homes and drop out of homeownership altogether. Even with the crisis of the last decade subsiding, college-educated millennials are not in a great position for home buying. They are drowning in student loan debt and putting off the decision as a result. Because of these troubling economic trends, people are now turning toward renting. In Sacramento’s case, this is rather pronounced. For example, in 2005, 52.8 percent of Sacramento city households owned their homes. In 2017, that number fell to 48.6 percent. It also doesn’t help that the number of housing permits collected have dwindled during the last decade, thus indicating that new housing developments are not being built as fast as before. Given these circumstances, we can understand why people from Sacramento want rent control measures in place. Rent control is no magic solution though. In fact, an intervention like rent control causes numerous unintended consequences ranging from housing shortages to housing blight. When the government gets in the way of the market’s price system, expect trouble. For residents of Sacramento, and the rest of California for that matter, entertaining alternatives such as the wholesale deregulation of land-use policies which would make it easier to develop housing. California is currently ranked 47th in land-use freedom, indicating it has a lot of work to do in terms of scaling back regulations. The question of affordable housing boils down to housing supply, which land-use restrictions impede. Sacramento’s housing dilemma is a microcosm of the problems California is currently facing. Many will be quick to blame capitalism or greed, but capitalism’s detractors often ignore anti-freedom policies such as income taxes and excessive zoning which have made the state less attractive for economic opportunity. As a result, countless Californians have had to leave the state for more economically friendly jurisdictions. To stop this, California policymakers at all levels need to rethink their interventionist approach to housing problems.

Why Are More Young People Embracing Socialism?

Another day, another survey showing increased support among the youth for totalitarian ideas. According to a new survey from the Washington, D.C., nonprofit Victims of Communism Memorial Foundation, America’s younger generation is becoming more receptive to the destructive ideas of socialism and its tyrannical cousin, communism. A poll run by YouGov, a British market research firm, found that only one out of two millennials — aged 23 to 38 — supporting capitalism. On the other hand, 36 percent of millennials polled shockingly stated that they approve of communism. “The historical amnesia about the dangers of communism and socialism is on full display in this year’s report,” remarked Marion Smith, executive director of the Victims of Communism Memorial Foundation, in a statement on Monday. “When we don’t educate our youngest generations about the historical truth of 100 million victims murdered at the hands of communist regimes over the past century, we shouldn’t be surprised at their willingness to embrace Marxist ideas.” Some other shocking revelations in this report include that 22 percent of millennials believe that “society would be better if all private property was abolished,” and 45 percent of Generation Z members and millennials believe that “all higher education should be free.” It is alarming that even after a genocidal 20th century of socialist experiments, people still view the ideology in such a glowing manner. Massive socialization via public schools, media, and general culture has progressively created a broader acceptance of the ideas, and it is now potentially turning into a solid voting block for generations to come. The U.S. will likely not descend down the same path of destruction like previous socialist governments. Nevertheless, these changing views will reinforce existing trends of government growth, which include the continued expansion of the managerial state, a stronger surveillance state, state-dominated education, and more centralized power in Washington, D.C. Politics doesn’t just take place in the voting booth, it’s present at city halls, churches, schools, civic organizations, businesses, and pop culture. The overtly political nature of everyday life is indeed concerning but those are the cards we’ve been dealt with. If we want to reverse this trend of the growing radicalization of the youth, free-market advocates and their allies will need to confront the spread of these ideas wherever they are being disseminated. Complaining is easy, but taking action is a different matter. We can no longer afford to lament the state of the youth if we want to stop the growing popularity of collectivism.

President Trump Wants Negative Interest Rates – Why That’s a Terrible Idea

In a recent meeting with Federal Reserve Chair Jerome Powell, President Donald Trump and Treasury Secretary Steve Mnuchin discussed the idea of negative interest rates. They focused mostly on “economy, growth, employment, and inflation.” Trump has clashed with Powell in the past over his reluctance to lower interest rates down to zero or even into negative territory. Although the economy could be in much worse shape, Trump’s monetary suggestions should have Americans worried. Economist Peter Schiff raised valid points about Donald Trump’s claims that we have the “best economy ever.” If the economy is so good, why does the economy require more monetary stimulus? It makes one wonder how rickety America’s economic fundamentals are. Trump has gotten numerous deregulation and tax cut reforms right, which helps improve the health of the American economy and keeps the state away from the voluntary affairs of free people. However, this growth has come at a massive cost. In 2018, the national debt increased by $1.27 trillion. Putting this in perspective, this represented a twofold increase in the national debt when compared to 2005 — when it rose by $554 billion. The U.S. has essentially borrowed its way into growth. Eventually, fiscal chickens will come home to roost as deficits grow and the national debt balloons. The problem with this mission is that it ignores the pitfalls of central banking. Such interventions, such as expansionary monetary policy, cause the notorious boom and bust cycles that we have all been acquainted with. More fundamentally, expansions in the monetary base will ultimately lead to the devaluation of the currency, which puts the wealth of millions of Americans in jeopardy. Questioning central banking is something that never pops up on D.C. politicians’ radars, despite America’s early tradition of questioning central banks. After all, America has been in a great spot since 1945 as the preeminent military and economic power. The American political class has ridden this envious position high for decades. Given the dollar’s status as the world reserve currency, the Federal Reserve can print money away as it pleases, without seeing very pronounced inflationary effects in the short-term. Globally speaking, U.S. dollars are high in demand. However, violating economic laws can only go on for so long. Once the American welfare state implodes and people clamor for more benefits, the Federal Reserve will likely be called upon to crank up the printing presses. Monetary expansion will most certainly bring about inflationary scenarios and place the country in uncharted economic waters. And if history is a good indicator, an America plagued by inflation will be a poorer America.

Recent Polls Show that Illinoisans are Leaving Because of Taxes

Last month, ZeroHedge put out a story about Illinois residents wanting to leave the state. Specifically, it cited the motivations of those with the intention of leaving. Last year, 53 percent of Illinoisans had entertained the idea of moving out of the state. Now, in 2019, that number has increased to 61 percent, based on a new poll from NPR Illinois and the University of Illinois Springfield. Many are wondering what’s the main motivating factor behind them leaving the state. Well, according to the poll, state taxes are the number one reason for them wanting to leave the state. The poll found that 27 percent of the respondents cited taxes for their desire to move. The next reason most people decided to move was state government and policies, at around 17 percent. In third place, was better weather, in which 15 percent cited this factor as a motive for moving.  This poll serves as a warning to Governor J.B. Pritzker, who wants to eliminate the Illinois Constitution’s flat income tax provision and create a progressive income tax system. According to the poll, “Respondents reporting a household income of more than $100,000 a year (68%) are nearly ten percentage points higher than other income groups to say they’ve considered moving out of the state, with those reporting a household income lower than $45,000 (58%) being least likely.” At a glance, those with more resources appear like the ones who are most likely to leave. Tax reform attempts like the progressive income tax that Pritzker is pursuing represents another way for politicians to extract money from the private sector to finance big spending. As far as taxation is concerned, Illinois is by no means slacking on that front. The state recently passed 20 new tax and fee hikes, which included a gas tax that was doubled, all to support a large $40 billion state budget. The tax hikes that Illinois’s political class is proposing aren’t just coming out of nowhere. When we look at public employee pensions they’re already eating up a large share of Illinois’ state budget — one-fourth of it to be exact. Illinois’ pensions have exploded by 501 percent since 2000, which has put tremendous upward pressure on property taxes and has also resulted in cuts to state services. One thing to note is that Illinoisians aren’t just entertaining the idea of moving out of state. Some have already taken the initiative by moving out. During the past five years, Illinois has earned the unfortunate distinction of being one of only two states to lose population on a consecutive basis. In this time period, Illinois lost 157,000 residents People aren’t leaving Illinois on a whim; it’s largely because of public policy. Although Illinois got marijuana legalization right, the state still lags behind in certain aspects of economic freedom. Cato’s Freedom in the 50 States index has it in 46th place for local tax burden. Not only are taxes high at the local level, but there aren’t many jurisdictions locally that people can move to in order to reduce their tax burdens. The authors of this index gave Illinois policymakers a wise recommendation — “Reform the retirement systems of localities to reduce local taxes, which are sky-high.” By exercising some modicum of fiscal restraint with pensions, Illinois could likely stem the flow of people leaving the state.

High Income Millennials Are Afraid of Not Having Enough Money for Retirement

Bloomberg magazine covered last month some of the financial trouble that high-income millennials ages 30 to 34 fear they will face in the near future. Many are scared that they’ll have to work forever because they won’t be able to save enough to retire. The individuals surveyed in a recent study consisted of millenials of single households making at least $100,000 or $150,000 for those who are married or partnered in this age demographic. The Spectrem Group, a wealth advisory company, ran this survey and did an in-depth survey of the age demographic who entered adulthood during one of America’s most devastating economic crises. Some of these fears are natural when considering that most millenials in this age cohort graduated from college in the middle of the Great Recession when hiring opportunities were not so great. According to this study, half of high-income millennials ages 30 to 34 worry that they won’t have enough savings for retirement.  Here are several thoughts about these findings.  Due to the prevalence of many young professionals heading to work in major urban centers, they will inevitably face cost of living problems. Big cities like New York and San Francisco have become notorious for this. However, not all big cities witness this trend. When we go down to the Sun Belt, major cities like Dallas, Houston, and Phoenix tend to be quite affordable in comparison.  Why could that be? Well, land-use restrictions play a major role in artificially making housing markets more expensive. Unlike their coastal counterparts, Sun Belt cities are known for their light regulatory touch on matters ranging from housing to tax policy. As a result, the aforementioned cities have more dynamic job markets and attract more talent from across the nation. Their affordability only sweetens the deal, as many young professionals can then start families without having to worry about the financial implications of such a decision.   From a more macro perspective, there’s the impact of easy money that few talk about. Central banking creates perverse incentives by artificially lowering the market interest rate. This induces people to save less and consume more. Under normal circumstances, people would be saving more and in turn facilitating more production. As Jeff Deist, the President of the Mises Institute soundly argued, “Civilization requires accumulation and production; de-civilization happens when too many people in a society borrow, spend, and consume more than they produce.” In the meantime, millennials will have to exercise a strong degree of personal responsibility to ensure their financial health in the decades to come. All change begins with free individuals who recognize the problems in front of them. In taking control of their finances, the younger generations can build a more prosperous future for themselves and their posterity.  But it all starts with establishing a solid financial foundation at the individual level. 

Ben Carson Makes the Case For Housing Deregulation

Say what you want about the Trump administration, but it has done a solid job when it comes to deregulation. When we cut through the media sensationalism and Trump’s unconventional antics, we see one of the boldest attempts in the past few decades to scale back the administrative state. Trump’s Executive Order 13771, which eliminated two existing regulations for every new singular regulation passed, helped give businesses of all sizes more breathing room. Homelessness has become a major problem in the last few years. It is especially pronounced in California, where, according to estimates from the United States Interagency Council on Homelessness, there are nearly 130,000 homeless on the streets. After increased press coverage on homelessness, several elected officials, such as California Governor Gavin Newsom, took action by writing President Trump a letter urging him to acknowledge that homelessness is a “national crisis decades in the making that demands action at every level of government.” The California officials then wrote, “Mr. President – shelter solves sleep, but only housing solves homelessness.” Housing and Urban Development (HUD) Secretary Ben Carson responded to Newsom with a rejection of his main premise about America’s homeless problem. In a reply to the letter in September, Carson said, “California cannot spend its way out of this problem using Federal funds…More vouchers are clearly not the solution the State needs. To address this crisis, California must reduce its regulatory burdens on housing.” Carson is on the mark here. California’s homeless problem is the product of its restrictive housing policies. The Left Coast is notorious for its zoning policies which restrict the housing supply. Cato’s Freedom in the 50 States index offers a great overview of which states have the most economic freedom in various categories. Particularly relevant for this discussion is housing policy. According to this ranking, California is 47th in terms of its land-use regulations. This is in stark contrast to Texas, which is ranked 10th, and has no housing affordability issues or a pronounced homeless problem like California does. When taking into account housing policy, one realizes that California’s housing situation is not a random occurrence. The state is already known for having one of the most expensive housing markets in the nation, which can largely be attributed to housing policies that restrict the supply of housing. At the end of the day, it’s basic economics, something that California has a reputation for ignoring. The state is already known for its oppressive tax system and monopolized utilities. Restrictive housing is just the icing on the cake for a state that simply has too much government involvement in the economy. Carson is correct in calling attention to the fact that a government response would not be the antidote to California’s housing problems. The Golden State will have to embrace some form of land-use deregulation if it really wants to get to the bottom of its homeless problem. It is the state, not the market, which makes housing more expensive, pricing out the most humble citizens who are then forced to live out in the streets.
states

Ilhan Omar’s ‘Charitable’ Housing Plan is Actually Inhumane

Rep Ilhan Omar (D-MN) announced she will introduce legislation that would guarantee a home for every person in the United States.  Omar, one of the members of the so-called “squad,” a group of young Congresswomen headed by Alexandria Ocasio-Cortez (D-NY), said that the “Homes For All” bill would fix a “moral stain” our country deals with as “half-a-million or more people [face] homelessness.”  The bill would put the federal government in charge of investing “in the creation of millions of homes,” Omar said. Adding that Ocasio-Cortez and the rest of the squad would support the effort.  This isn’t the first time one of the young members of Congress discussed housing.  Over the summer, Ocasio-Cortez claimed that luxury living should be the standard for everyone. The comment was made while she discussed her move into a luxury apartment in Washington, D.C.  “I move into this building, and it’s marketed as a ‘luxury’ building in D.C., right? I’m keeping it 100% with you,” she told people during a town hall. “So I move into this luxury building in D.C. And what does it have? It’s an efficient building, it’s clean, it has public space, it has a rooftop garden — y’all watching my Instagram — it has all these things, right? It has clean air, it has clean water. And I think about this and I’m like, ‘Hm, this is what a luxury building is like.'” To the congresswoman, “another world is possible,” she added, where “all people have a right to a dignified home, and it’s not science fiction and it’s not just for the rich. Because what we have been taught and what we have been conditioned is that basic rights are luxury and a privilege when they are not.” While Omar didn’t mention luxury standards of living for all those who would benefit from this bill, she claimed that she wants to see an America where an immigrant like herself doesn’t get to arrive to see “people sleeping on the side of the streets.”  But despite the excitement revolving around her announcement, Omar failed to take a closer and more critical look at the very policies that made homelessness such a big problem in America in the first place. And as mentioned by some Twitter users, subsidizing housing is what led to the subprime mortgage crisis that happened between 2007 and 2010, in addition to the Federal Reserve’s easy credit policies.  Why would she think that offering more subsidies and inflating the housing market any further would actually help those in the low- and middle-income brackets?  While many will rally behind her efforts, Omar’s plan is rooted in nothing but wishful thinking. If the goal is to help people who struggle to find housing, she would be fighting to remove legislative interference from the picture, kill all housing subsidies, and allow bad lenders to fail.  Unfortunately, many of Omar’s supporters are unaware that when government enacts charitable policies, the consequences are the very opposite of what politicians promised. In the end, officials never take the blame, choosing to, instead, point the finger at lack of funding, capitalism, or other, less agreeable colleagues in D.C.

The Big Apple Exodus

According to ZeroHedge, New York City is the number one metro area in America for people leaving its city limits. As of 2019, Bloomberg reports that approximately 277 people move out of New York City on a daily basis. This is more than double the number of people who left a year ago — 132 to be exact. Los Angeles and Chicago have also witnessed similar trends, with 201 and 161 people fleeing these two cities in 2019, respectively. Of the top ten cities that had the largest number of arrivals, Seattle was the only cold-weather city that made the list People like to think this development is a coincidence and a product of people just casually moving to warmer climates. However, there’s more to this story. States like California and New York are notorious for policies that increase the cost of living for working-class families to live in and complicate business operations. According to the Cato Institute’s Freedom in the 50 States index, New York and California are ranked 46th and 47th for land-use freedom, respectively. Strict zoning laws limit housing supply, thus making housing artificially expensive. For overall regulatory policy, California and New York hold dismal rankings of 48th and 50th place, respectively. Taxation shows a similar trend, with New York occupying 43rd place and California finding itself in 45th place. Yes, the federal government is incredibly burdensome thanks to its taxation, regulation, and massive spending. However, many Americans have a fallback with state governments, which provide jurisdictional competition. In other words, competing tax and regulatory systems allow Americans to escape to states that are more affordable and offer more economic opportunities thanks to their higher levels of economic freedom. The federalist features of the American system of governance serve to keep states in check by forcing them to compete for citizens and capital. If states like New York and California want to keep citizens from leaving en masse, they must start implementing policies that make these areas easier to work in and affordable for people to have a decent standard of living and start families.

New Jersey Will Pressure Banks to Stop Doing Business with Gun Organizations

New Jersey is setting the way by discontinuing business with gun manufacturers and retailers that refuse to go above and beyond federal gun control laws. The gun control laws it had in mind are universal background checks, which cover all private gun sales and transfers. Further, the state will be pressuring major financial institutions, especially those who do business with the state of New Jersey, into disclosing any information regarding their business dealings with gun manufacturers and vendors. The New Jersey state government, which claims that it pays more than $1 billion in bank fees annually, is considering the use of disclosure requirements to determine if it will continue working with financial firms. According to state government estimates, New Jersey allegedly spent more than $70 million in recent years on ammunition, firearms, and supplies for the State Police and other law enforcement agencies. These measures were announced on Tuesday, September 10, 2019, by Democratic Governor Phillip Murphy. Such an approach is a new way to implement gun control when the federal government has not been very responsive to the issue lately.  Similarly, prominent banks have taken proactive steps by not providing banking and credit card services to gun retailers and no longer giving out loans to manufacturers who do not follow age limits or conduct enhanced background checks. Gunmakers and stores that are intending to sell firearms to the state’s law enforcement agencies would still have to abide by New Jersey’s stringent gun control laws even if they do business in states with laxer gun laws.  These measures New Jersey is considering are unprecedented and could function as a template for future legislation nationwide. New Jersey is one of the most anti-gun states in the country, being ranked in 50th place according to Guns & Ammo magazine. So, it makes sense that such legislation is possibly going to be used for a trial run in New Jersey. This is how progressives operate. They act locally, pass a few bills at the state level, and then build enough energy for federal bills to be passed. This has been part of a progressive playbook during the last century.  New Jersey’s new gun control proposal is a clear infringement on gun rights and the private dealings of business. If banks want to refuse to do business with gunmakers, that is their prerogative as private entities. Private companies are free to implement whatever policies they want, but that does not mean they will be immune from social and economic consequences. As consumers, we still have voices with our dollar and exercise our consumer sovereignty by doing business with organizations that disregard political virtue signaling.  The growing politicization of all parts of society breeds a toxic culture were peaceful social cooperation becomes increasingly difficult. For the sake of our society’s political sanity, let’s keep business and politics separate.