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Minimum Wage Laws Push Young Blacks Out of the Workforce

in Business and Economy, Economic Liberty, Liberator Online, News You Can Use by Advocates HQ Comments are off

Minimum Wage Laws Push Young Blacks Out of the Workforce

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

Unemployment is in the news again. But the media’s focus on the presidential elections seems to keep Americans from discussing the ongoing economic disaster we haven’t had the time to deal with since 2008. But as the Federal Reserve chairwoman shows signs of mild nervousness, more news outlets begin to pay attention. Still, few choose to dig deeper, and the great majority of the American electorate remains oblivious to the root causes of the problems they are dealing with now.

Walter E WilliamsIn order to help his fellow Americans understand the realities of government-management of economic policies, economist and professor Walter E. Williams wrote an article discussing the shift in unemployment rates and demographics over the past decades, helping us understand how bad the consequences of government interference are.

According to Williams, the unemployment rate of African American teenagers in 1948 was 9.4 percent while in 2016, the black teenage unemployment rate is about 30 percent. Still in 1948, the unemployment rate of white teens was higher, at 10.2 percent, while in 2016, it’s at 14 percent.

To the libertarian economist, what has caused this problem we have at hand is the elitist mentality.

In his article, Williams points out to comments made by another economist, David Howell, to illustrate the shifting mentality.

When talking about minimum wage laws and the reasons why we should embrace a higher minimum wage policy, Howell, who Williams calls a New School economist, says that we should not be worried about one of the most devastating consequences of raising the minimum wage: job losses. “Why shouldn’t we in fact accept job loss?” Asked Howell. But it was another scholar, Economic Policy Institute economist David Cooper, whose comments appeared to have truly triggered Williams.

“What’s so bad about getting rid of crappy jobs,” Cooper says, “forcing employers to upgrade, and having a serious program to compensate anyone who is in the slightest way harmed by that?” To Cooper, working fewer hours but making more money is all that matters, even if millions end up struggling to have access to entry level jobs due to the tough wage requirements.

To Williams, a “crappy job,” economically speaking, is a job. And being unemployed means being out of a job.

Whether Americans do not look fondly back to the 1940s and 1950s, Williams explains that, back when wage policies weren’t as interventionist, teens took jobs that would seem undesirable to the New School economists of today.

When Williams was a teen, he explained, he and his buddies would rise early during summers to board farm trucks headed to New Jersey. His jobs then varied a great deal. At times, Williams would pick blueberries, but sometimes he washed dishes and mopped floors, but he also worked unloading trucks at Campbell Soup.

Unfortunately for many teens living in poverty nowadays, the same jobs are either unavailable or not “good enough” for big city kids. Instead of allowing people to choose what job they are willing to take in order to make some kind of money, those who support interventionism in the economy prefer to see the poor unemployed and unskilled to see them fend for themselves.

If Williams is correct and current black leadership is all in favor of this view, things are only going to get worse.

Pennsylvania School Bus Waste Story Nothing New

in Economic Liberty, Education, Liberator Online, News You Can Use, Personal Liberty, Taxes by Advocates HQ Comments are off

Pennsylvania School Bus Waste Story Nothing New

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

Another day, another story of government waste.

School BusEach year, reports, Pennsylvania school districts spend over $54 million of taxpayer money on transportation services provided by contractors who do not have to compete for exclusive contracts with the state and local education agencies. Due to the state’s lack of rules regarding competitive bids, many are calling for an audit and a change of rules.

But would opening up the districts to a competitive bidding process alone do the trick?

According to late free market economist Milton Friedman, there are at least 4 ways money can be spent. “You can spend your own money” on things and services you consider important to yourself, trying to “get the most for your money.” You may also spend your money on somebody else, forcing yourself to look for something that will be meaningful or useful to the recipient while remaining mindful “about the cost.” Or you can either spend somebody else’s money on yourself or others.

According to Friedman, when you spend money earned by somebody else on other people, you’re not “concerned about how much it is,” and that, he concluded, is what government does.

While the waste promoted by Pennsylvania school districts is nothing unheard of, media outlets seldom discuss the lack of incentives in keeping a budget among government officials, whether they are local, state, or federal employees.

If bureaucrats are not concerned about the source of resources, they won’t be concerned with how much they spend. Opening the state’s districts to a competitive process might be of help, but it still won’t solve the government’s money spending problem.

In an article for the Mises Institute, Ryan McMaken makes the case that government is never able to allocate tax money efficiently.

He justifies his argument by claiming that once money is taken from an owner through taxation, the coercive nature of the transaction keeps those allocating it from learning just how valuable roads, law enforcement, and even public education truly are to those paying for them. He also argues that, when government spending is not limited by tax revenues alone, government officials have an endless source of revenue, either in the form of cheap money coming from a central bank or a federal government grant. And that alone is enough incentive to keep government employees from acting responsibly.

Without a free and unrestricted market in business transactions between service providers and consumers, transactions are imposed by the government, not sought after by the individual. Therefore, government cannot assess just how much those services are worth if they do not have a way to gauge demand.

If lawmakers and officials want what’s best for Pennsylvania’s children and their taxpaying parents, the only way to give them what they need—and want—is to remove perverse incentives from the equation, allowing parents to act on their ability to choose what’s best, and most valuable, to their children.

What are the Hidden Costs of Sending Children to Government Schools?

in Children's Rights, Conversations With My Boys, Liberator Online, Marriage and Family, Personal Liberty by Advocates HQ Comments are off

What are the Hidden Costs of Sending Children to Government Schools?

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

Editor’s Note: Although this isn’t strictly a conversation, it’s something to think about when weighing the educational options for one’s children. 

School If I took a blow to the head and decided to go to a 9-5 j.o.b. and tried to provide something close to what the boys get at home now I’d have to pay for the following:

–Private school
–Hidden costs associated with school (projects, parties, fund raisers, etc.)
–Someone to run them to activities
–Additional medical due to increased sickness in self and children
–Sick child care
–Testing for BA
–OT for auditory processing/sequencing (I wouldn’t have time)
–Tutoring for reading (I wouldn’t have time)
–Sports for both boys
–Sports equipment
–Professional wardrobe for me
–Uniforms for boys
–Dry cleaning
–Additional meals out
–Help in the shop–boys do this now
–Help with yard maintenance –boys do this now

That’s just off the top of my head. The private schooling, the nanny/child care, OT, tutoring, and sports alone would eat anything I brought in. And that’s just the money.

I suspect if they were in school there would be a fair amount of despair in the life of my oldest who is independent and sets his own path. Despair in the life of an adolescent who lives big is usually expensive. Emotionally expensive and monetarily expensive. I’ve seen it end in therapy for anger. I’ve seen it end in a trip to the hospital for a child who was acting out. There’s worse. Best not to go there.

I can’t imagine what would happen to BA in the hands of even the most caring teachers. He’s, frankly, our child to raise. There is no outsourcing him and keeping him whole. That’s all there is to say about that.

Raising and educating our sons takes up a lot of room in my head. Room that would be taken up by work if I were going to a 9-5. I wouldn’t be able to devote as much time to observing them and figuring out what was really happening developmentally, intellectually, emotionally, physically. I couldn’t set up independent studies, mentoring, apprenticing. There simply wouldn’t be as much time for me to be the expert on our sons. That’s work that can’t be sent out.

That’s my work to do. Besides their dad, there’s no one in the world who has as much skin in the game as I have.

Sometimes the parent who stays with the children wonders what it would be like if they worked a 9-5 j.o.b.. If you do that, make sure you put everything on the scales. Being away from your children will have hidden costs and unintended consequences, good and bad.

New Jersey’s Takeover of Camden Proves Freedom is Better Than Taxpayer-Backed Revitalization Projects

in Economic Liberty, Liberator Online, News You Can Use, Personal Liberty, Taxes by Alice Salles Comments are off

New Jersey’s Takeover of Camden Proves Freedom is Better Than Taxpayer-Backed Revitalization Projects

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

Governor Chris Christie has recently announced that the state will take control of Atlantic City’s finances. As the city’s huge debt looms over its residents and the state vows to take over, critics and experts take a closer look at a previous major takeover of the city of Camden. And since many argue that state intervention ended up failing some of Camden’s most vulnerable residents, the promise of a better Atlantic City after intervention seems somewhat unrealistic.

In 2002, the state of New Jersey poured millions of taxpayer dollars into one of the largest takeover projects in US history. At least one law school, an aquarium, and a hospital were updated. But despite the taxpayer-backed incentives, the lives of residents did not improve. Instead, poverty and crime rates in the city remain high.


Despite the interventionist failures since 2002, the state announced in 2013 that it had decided to take over the education in Camden. As you will see, the results were equally disappointing.

According to a report from 2009, the initial revitalization campaign in the city counted with $175 million in bonds and loans and a one-time $7.5 million appropriation from the state budget. Shortly after, the then-Governor Jim McGreevey appointed a chief operating officer to take over the local government and the school board. The plan was to create jobs, bring in new businesses, fix the schools and the sewers, and demolish unsafe vacant businesses.

But as the takeover came to an end in 2010, Camden remained one of the most dangerous cities in New Jersey. And despite the state’s repeating efforts to reform the education system in the city, Camden school districts remain problematic.

The New Jersey government has been responsible for running the Paterson, Newark, and Jersey City school districts for more than 20 years. In 2013, it took over Camden’s as well. During the first years under state control, Camden failed to meet performance requirements in at least five areas.

While Paterson, Newark, and Jersey City report that their graduation rates had improved, local educational leaders claim that the improvement is due to the work members of the community have been doing in partnership with educational groups.

According to Paterson Education Fund’s executive director Rosie Grant, the state takeover meant little to the community.

“The gains that we have made,” she told The Record, “have been for the most part despite the state takeover.” Instead, Grant believes that the city’s decision to break the region’s largest high schools to form smaller academies is what made Paterson great.

But not all is lost in Camden.

When it comes to education, the real revolution arrived in the form of school choice.

According to a 2015 video by Jim Epstein, school choice gave local families in Camden the ability to choose. Instead of relying solely on state-run schools that continue to fail Camden’s children to this day, the implementation of charter schools has given residents the opportunity to enroll their children in institutions where children actually learn, despite their economic background.

If the state’s intervention in Camden has anything to teach other cities across the country is that pouring taxpayer money into an issue won’t make it better. Boosting choice—and freedom—on the other hand, usually works.

If the current administration is serious about saving Atlantic City, it will avoid pouring money into the problems the city is facing. Opening its doors for businesses and competition, however, may just do the trick.

American Taxpayers on the Hook for $6 Million to Promote the Beautiful Albanian Countryside

in Business and Economy, Economic Liberty, Liberator Online, News You Can Use by Jackson Jones Comments are off

American Taxpayers on the Hook for $6 Million to Promote the Beautiful Albanian Countryside

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

You’ve got to hand it to the federal government; they really know how to throw away taxpayers’ hard-earned money. Just last week, Congress passed a budget that increases spending by some $80 billion and raises the debt ceiling for the rest of Barack Obama’s presidency.


Of course, it’s too much to ask, apparently, that lawmakers and the Obama administration take an axe to some of the wasteful spending that could take some of the burden off of taxpayers. Take the $6 million the U.S. Agency for International Development plans to give to Albania to promote tourism in the tiny Southeastern European nation, which was recently the subject of by Sen. Rand Paul’s, R-Ky., “Waste Report.”

Albania’s economy is experiencing turmoil because of the economic crisis that has ravaged Greece, its neighbor to the south. In May, for example, the World Bank backed a five-year, $1.2 billion loan program to try to boost the country as it tries to enter the European Union. The United States is, apparently, pitching in to boost Albania’s burgeoning tourism industry.

“To restart their economy, the Albanian government is hoping to capitalize on the country’s tourism potential, but it is the U.S. taxpayer who is footing at least part of the bill,” Paul’s office explains. “Amazingly, tourism is already a major contributor to the Albanian economy. According to the grant description, tourism (in total) currently accounts for 17 percent of the nation’s economy.”

“By comparison, The World Travel and Tourism Council reports that tourism contributes 9.5 percent to the worldwide economy and 8.4 percent to the U.S. economy. This means Albania’s tourism economy, as a percent of GDP, is already larger than the U.S,” it adds.

The problem for the United States is that much of what we’re spending in terms of foreign aid, such as the $6 million to promote tourism in Albania, is part of the increasing river of red ink that flows from Washington.

Albania may be a beautiful country worthy of a visit, but that doesn’t mean American taxpayers should be footing part of the bill to promote it. The national debt – currently north of $18.5 trillion – keeps growing while the federal government doles out goodies for other countries.

Not to come across overly nationalistic here, because there are many wasteful and unauthorized domestic programs that taxpayers are compelled to fund. The guide should be the United States Constitution. After looking it over, one will be shocked – absolutely shocked to discover – that there isn’t a “Promote Tourism in Other Countries” Clause.

Silicon Valley Innovators: Gov’t Is Biggest Barrier to U.S. Innovation

in Liberator Online by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 21 of the Liberator Online. Subscribe here!)

Innovation's biggest barrierWhat’s the worst drag on American technical innovation?

According to some of the most creative and successful people in America, it’s… government.

In a new “Silicon Valley Insiders Poll,” The Atlantic asked 50 “Silicon Valley Insiders” — described as leading “executives, innovators, and thinkers” — this question: “What’s the biggest barrier to innovation in the United States?”

The top three answers:

  1. “Government regulation/bureaucracy” — cited by 20% of respondents. 
  2. “Immigration policies” — cited by 16%.
  3. “Education” — yet another thumping government failure — cited by 14%. 

As Reason’s Nick Gillespie notes in the Daily Beast: “Given the role it plays in setting immigration policy and controlling education at all levels through a mix of money and mandates, that means government takes the gold, silver, and bronze medals at making life harder.”

(Fourth place was “Talent Shortage,” cited by 10% of respondents, which is also at least in part a consequence of the second and third government-created barriers.)

Further, it’s not just the tech sector reporting serious damage from government. A 2010 survey conducted by the National Federation of Independent Businesses asked small business owners to identify the biggest problems they face. Twenty-two percent of respondents said the single most important problem facing small businesses was “Taxes. Another thirteen percent said “Government Regulations and Red Tape.” Both, of course, are direct manifestations of Big Government. Combined, they add up to 35% — making Big Government the biggest problem small businesses say they face.

And Americans in general seem to agree. As we reported earlier this year, a Gallup poll found a record 72% of Americans picked big government as “the biggest threat to this country in the future” compared with big business or big labor.

Robbery With a Badge: Shocking New Report

in Criminal Justice, Liberator Online by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 16 of the Liberator Online. Subscribe here!)

Asset forfeiture is a dull name for a shocking little-known legal device Civil Asset Forfeiturethat allows law enforcement officials to take your cash and property — without a warrant or criminal charges of any kind — and keep most of the proceeds.

That’s right: they can do this even if you have not committed a crime. Even if you’ve never been charged with one.

The only way you can get back your money or property is to go through an exhaustive legal process to prove that your property was legally acquired. Yes, in essence, you must prove to the government that you are not guilty. And the process is so difficult, time-consuming and expensive that most don’t attempt it.

Even if you think you know about this vile practice, a new report by the Washington Post entitled “Stop and seize: Aggressive police take hundreds of millions of dollars from motorists not charged with crimes” has uncovered new information that will shock you.

Among the Post’s findings:

* Asset forfeiture has risen dramatically in the past decade. Thousands of Americans have had billions of dollars stolen by police — again, without being charged or convicted of a crime.

* The federal government has given millions of dollars to non-government organizations to train police officers in aggressive use of asset forfeiture. An estimated 50,000-plus police officers have had such training in the last decade.

* Says the Post: “Behind the rise in seizures is a little-known cottage industry of private police-training firms that teach the techniques of ‘highway interdiction’ to departments across the country.

“One of those firms created a private intelligence network known as Black Asphalt Electronic Networking & Notification System that enabled police nationwide to share detailed reports about American motorists — criminals and the innocent alike — including their Social Security numbers, addresses and identifying tattoos, as well as hunches about which drivers to stop. …

“A thriving subculture of road officers on the network now competes to see who can seize the most cash and contraband, describing their exploits in the network’s chat rooms and sharing ‘trophy shots’ of money and drugs…”

* “Some police advocate highway interdiction as a way of raising revenue for cash-strapped municipalities. ‘All of our home towns are sitting on a tax-liberating gold mine,’ Deputy Ron Hain of Kane County, Ill., wrote in a self-published book under a pseudonym. Hain is a marketing specialist for Desert Snow, a leading interdiction training firm based in Guthrie, Okla., whose founders also created Black Asphalt. Hain’s book calls for ‘turning our police forces into present-day Robin Hoods.’”

There’s much more in the Washington Post’s multi-part series, now online.

Would Religious References Be Removed from Money, Courts and Schools in a Libertarian Society?

in Ask Dr. Ruwart, Communicating Liberty, Liberator Online, Libertarian Answers on Issues, Libertarian Stances on Issues by Mary Ruwart Comments are off

(From the Ask Dr. Ruwart section in Volume 19, No. 6 of the Liberator Online. Subscribe here!)

QUESTION: I want to see the removal of all references to a god from money, courts, and schools, as I believe these are a violation of the separation of church and state. What is the libertarian stance on this?

MY SHORT ANSWER: In a libertarian society, all schools would be private. You could send your children to a school that catered to your tastes (i.e., no references to a deity or religion) and religious people could send their children to a school devoted to Him (or Her as the case might be).

Competition in currency, which would be most likely in a libertarian society, would probably result in some private currencies without a religious reference and others with one.

Some libertarians believe that courts should compete as well; others want a monopolistic system like we have today. Since a libertarian society’s code would be ‘honoring our neighbor’s choice,’ it’s likely that courts would offer both Bible-based oaths and secular ones.

It’s a matter of choice. You choose what you want; others choose what they want. The market gives multiple choice; the government usually gives a one-size-fits-all monopoly.

If someone wants to use government to outlaw religious references, he can only do so by giving the government power to impose religious references. Rather than advocating such a win-lose situation, libertarians promote the win-win options that occur when we honor our neighbor’s choice, rather than imposing our own.

(For a more detailed explanation of what the phrase “honoring our neighbor’s choice” entails, see my book, Healing Our World, available from the Advocates. The earlier 1992 edition can be read online free at my website.)

* * * * * * * * * *
Short Answers to Tough QuestionsGot questions?  Dr. Ruwart has answers! If you’d like answers to YOUR tough questions on libertarian issues, email Dr. Ruwart

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 latest book Short Answers to the Tough Questions, Expanded Edition is available from the Advocates, as is her acclaimed classic Healing Our World.