Real poverty in the United States is largely confined to those individuals who suffer from mental illness or are habitual criminals. Research shows that the U.S. has effectively eliminated true poverty. 

The problem is that politicians still support the welfare state and the Democratic Party wants to dramatically expand the welfare state. Voters need to say “no more welfare.” Tear down the welfare walls that trap generations in cultures of poverty. Welfare perpetuates poverty.

This month, three new papers from the National Bureau of Economic Research reached the same conclusion: more welfare does not break the poverty cycle. The papers also demolish the arguments for universal basic income programs which would take from the most productive and give to the most slothful. 

Researchers examined the effects of a guaranteed income of $1,000 a month. The recipients of the guaranteed income worked less, earned less income, engaged in more leisure time, and did not pursue educational or vocational programs that might improve their long-term economic prospects. Importantly, the guaranteed income also caused the partners of recipients to engage in economically detrimental behavior. In effect, a guaranteed income reinforced personal sloth for the individual and the household. The authors said “we observe no significant effects on investment in human capital.”

Working with the same dataset, economists looked at how a guaranteed income affected health outcomes. Again, a guaranteed income had zero effect on health outcomes. The researchers found “no effect” across several measures of physical health. The academics ruled out even very small improvements in physical health. Moreover, after two years, for the recipients of free money, there was no improvement in mental health. Very importantly, the guaranteed income did not produce more responsible physical behavior: exercise did not increase, quality of sleep did not improve, and overall behaviors remained the same. 

In a separate NBER paper, economists found similar behavior patterns among elderly homeowners who experienced the wealth effect from rising house prices. The elderly beneficiaries of the housing boom did not consume some portion of that additional wealth to improve their overall physical well-being. 

The research papers suggest that people caught in low-income circumstances do not strive to escape. Individuals with poor personal health do not make necessary changes to improve their overall well-being. 

Yet it’s also clear that many households remain stuck in low-income neighborhoods where opportunities are limited and crime is elevated. The federal government should focus on helping responsible families to move from failing communities to vibrant neighborhoods by encouraging zoning reform which would not be a drain on the federal budget. 

Still, data from the papers support the position that the federal government’s welfare programs should be slashed, at least for adults in the prime working ages of 18-65. The U.S. cannot afford to spend money on programs that produce null or minimal positive returns.

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Professor Thomas Sowell is a giant in the field of economics. He should have been awarded a Nobel Prize. He was not, probably because he speaks the language of truth, not woke. Sowell said people are poor because they don’t produce, and not for any other reason. 

The federal government should not subsidize the lifestyles of the nonproductive population. Every person has a responsibility to demonstrate grit and produce.

James Rogan is a former U.S. foreign service officer who later worked in finance and law for 30 years. He writes a daily note on the markets, politics, and society.

2024-07-26 10:00:00, http://s.wordpress.com/mshots/v1/https%3A%2F%2Fwww.washingtonexaminer.com%2Frestoring-america%2Ffairness-justice%2F3097435%2Fstudies-show-guaranteed-incomes-guarantee-slothfulness%2F?w=600&h=450, Real poverty in the United States is largely confined to those individuals who suffer from mental illness or are habitual criminals. Research shows that the U.S. has effectively eliminated true poverty.  The problem is that politicians still support the welfare state and the Democratic Party wants to dramatically expand the welfare state. Voters need to,

Real poverty in the United States is largely confined to those individuals who suffer from mental illness or are habitual criminals. Research shows that the U.S. has effectively eliminated true poverty. 

The problem is that politicians still support the welfare state and the Democratic Party wants to dramatically expand the welfare state. Voters need to say “no more welfare.” Tear down the welfare walls that trap generations in cultures of poverty. Welfare perpetuates poverty.

This month, three new papers from the National Bureau of Economic Research reached the same conclusion: more welfare does not break the poverty cycle. The papers also demolish the arguments for universal basic income programs which would take from the most productive and give to the most slothful. 

Researchers examined the effects of a guaranteed income of $1,000 a month. The recipients of the guaranteed income worked less, earned less income, engaged in more leisure time, and did not pursue educational or vocational programs that might improve their long-term economic prospects. Importantly, the guaranteed income also caused the partners of recipients to engage in economically detrimental behavior. In effect, a guaranteed income reinforced personal sloth for the individual and the household. The authors said “we observe no significant effects on investment in human capital.”

Working with the same dataset, economists looked at how a guaranteed income affected health outcomes. Again, a guaranteed income had zero effect on health outcomes. The researchers found “no effect” across several measures of physical health. The academics ruled out even very small improvements in physical health. Moreover, after two years, for the recipients of free money, there was no improvement in mental health. Very importantly, the guaranteed income did not produce more responsible physical behavior: exercise did not increase, quality of sleep did not improve, and overall behaviors remained the same. 

In a separate NBER paper, economists found similar behavior patterns among elderly homeowners who experienced the wealth effect from rising house prices. The elderly beneficiaries of the housing boom did not consume some portion of that additional wealth to improve their overall physical well-being. 

The research papers suggest that people caught in low-income circumstances do not strive to escape. Individuals with poor personal health do not make necessary changes to improve their overall well-being. 

Yet it’s also clear that many households remain stuck in low-income neighborhoods where opportunities are limited and crime is elevated. The federal government should focus on helping responsible families to move from failing communities to vibrant neighborhoods by encouraging zoning reform which would not be a drain on the federal budget. 

Still, data from the papers support the position that the federal government’s welfare programs should be slashed, at least for adults in the prime working ages of 18-65. The U.S. cannot afford to spend money on programs that produce null or minimal positive returns.

CLICK HERE TO READ MORE FROM RESTORING AMERICA

Professor Thomas Sowell is a giant in the field of economics. He should have been awarded a Nobel Prize. He was not, probably because he speaks the language of truth, not woke. Sowell said people are poor because they don’t produce, and not for any other reason. 

The federal government should not subsidize the lifestyles of the nonproductive population. Every person has a responsibility to demonstrate grit and produce.

James Rogan is a former U.S. foreign service officer who later worked in finance and law for 30 years. He writes a daily note on the markets, politics, and society.

, Real poverty in the United States is largely confined to those individuals who suffer from mental illness or are habitual criminals. Research shows that the U.S. has effectively eliminated true poverty.  The problem is that politicians still support the welfare state and the Democratic Party wants to dramatically expand the welfare state. Voters need to say “no more welfare.” Tear down the welfare walls that trap generations in cultures of poverty. Welfare perpetuates poverty. This month, three new papers from the National Bureau of Economic Research reached the same conclusion: more welfare does not break the poverty cycle. The papers also demolish the arguments for universal basic income programs which would take from the most productive and give to the most slothful.  Researchers examined the effects of a guaranteed income of $1,000 a month. The recipients of the guaranteed income worked less, earned less income, engaged in more leisure time, and did not pursue educational or vocational programs that might improve their long-term economic prospects. Importantly, the guaranteed income also caused the partners of recipients to engage in economically detrimental behavior. In effect, a guaranteed income reinforced personal sloth for the individual and the household. The authors said “we observe no significant effects on investment in human capital.” Working with the same dataset, economists looked at how a guaranteed income affected health outcomes. Again, a guaranteed income had zero effect on health outcomes. The researchers found “no effect” across several measures of physical health. The academics ruled out even very small improvements in physical health. Moreover, after two years, for the recipients of free money, there was no improvement in mental health. Very importantly, the guaranteed income did not produce more responsible physical behavior: exercise did not increase, quality of sleep did not improve, and overall behaviors remained the same.  In a separate NBER paper, economists found similar behavior patterns among elderly homeowners who experienced the wealth effect from rising house prices. The elderly beneficiaries of the housing boom did not consume some portion of that additional wealth to improve their overall physical well-being.  The research papers suggest that people caught in low-income circumstances do not strive to escape. Individuals with poor personal health do not make necessary changes to improve their overall well-being.  Yet it’s also clear that many households remain stuck in low-income neighborhoods where opportunities are limited and crime is elevated. The federal government should focus on helping responsible families to move from failing communities to vibrant neighborhoods by encouraging zoning reform which would not be a drain on the federal budget.  Still, data from the papers support the position that the federal government’s welfare programs should be slashed, at least for adults in the prime working ages of 18-65. The U.S. cannot afford to spend money on programs that produce null or minimal positive returns. CLICK HERE TO READ MORE FROM RESTORING AMERICA Professor Thomas Sowell is a giant in the field of economics. He should have been awarded a Nobel Prize. He was not, probably because he speaks the language of truth, not woke. Sowell said people are poor because they don’t produce, and not for any other reason.  The federal government should not subsidize the lifestyles of the nonproductive population. Every person has a responsibility to demonstrate grit and produce. James Rogan is a former U.S. foreign service officer who later worked in finance and law for 30 years. He writes a daily note  on the markets, politics, and society., , , https://www.washingtonexaminer.com/wp-content/uploads/2024/06/iStock-1080411344.webp, Washington Examiner, Political News and Conservative Analysis About Congress, the President, and the Federal Government, https://www.washingtonexaminer.com/wp-content/uploads/2023/11/cropped-favicon-32×32.png, https://www.washingtonexaminer.com/feed/, James Rogan,

What planet does President Joe Biden occupy when he talks about corporate profits and rent controls? At his Thursday press conference, Biden said: “I’m not anti-corporate. But corporate profits have doubled since the pandemic — doubled. It’s time things get back in order a little bit. It’s time — for example, if I’m reelected, we’re going to make sure that rents are kept at 5% increase, corporate rents for … apartments and the like and homes are limited to 5%.”

Biden does not understand economics. Profits help make America great. The Left’s supporters are apoplectic when former President Donald Trump exaggerates, but when their hero, good old Joe, lies about the corporate sector, they are OK. That’s because business is bad and profit is evil. 

But profits have not doubled since the COVID-19 pandemic. According to the Federal Reserve Bank of St. Louis, corporate profits are up about 50% since Trump’s Operation Warp Speed saved the nation from COVID-19. The profit data from the St. Louis Federal Reserve include inflation that was caused by the Biden administration’s embrace of Modern Monetary Theory, which says deficits and too much money don’t matter. Biden and the Federal Reserve unleashed inflation, not the corporate sector. Under Biden, the country experienced the highest inflation in 40 years. Without Biden’s inflation, corporate profits as a percentage of gross domestic product would have been relatively flat. 

Economic research from the Federal Reserve says point blank: After adjusting for poor fiscal and monetary policy, profit margins appear much less notable. Under Trump, Congress passed the Tax Cuts and Jobs Act of 2017. Wages increased across the board. Business investment surged. The economy operated at full employment, and inflation remained under the Federal Reserve’s 2% price target for all of Trump’s time in office. 

Put simply, Biden and COVID-19 wrecked the strong Trump economy. Biden’s talk about corporate greed is nonsense. Business is not greedy. When a business engages in monopolistic behavior, its goodwill, its corporate reputation, suffers. Consumers push back. Households substitute consumption choices. The market determines prices. Business accepts the prices determined by the market. 

Corporate profit margins have been stable over the past decade. Biden does not understand that profits are a necessary component of capitalism. A business that does not generate profit goes bankrupt. Corporations need profits to invest in more productive assets and in more efficient business operations. Corporations need profits to raise wages. After the TCJA, corporate after-tax profits increased. Economic models demonstrate that fully half of the increase in corporate profits was distributed to labor in the form of higher wages. 

What about rent control?

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Nonpartisan economic research shows that price controls reduce supply, create shortages, and raise prices. A negative flywheel effect occurs, and inflation follows. Economic data demonstrate beyond debate that rent controls exacerbate the current housing crisis that so many communities and the nation are experiencing.

Top line: Greed is not good, but corporate profits are very good. Profits help make America great. 

James Rogan is a former U.S. foreign service officer who later worked in finance and law for 30 years. He writes a daily note on the markets, politics, and society.

The history of modern Europe is heavily defined by often brutal war. America, via the NATO alliance, was able to turn the tide of war to the benefit of hundreds of millions of people. Since the birth of NATO in 1949, the peoples of Europe have enjoyed a peace and prosperity unprecedented in the history of the continent. There are few better examples of American exceptionalism.

History tells the tale.

The major nation-states of the continent, Great Britain, France, and Germany, were created by conflict between powerful land owners and hereditary rulers. In 1485, modern England came into existence with the victory of Henry VII over Richard of York at the Battle of Bosworth Field. Henry became king, establishing dominance over the other feudal lords for the first time.

France became a unified nation-state with the reign of Louis XIV, the Sun King. He ruled for 72 years and established France as the dominant power on the continent. He came close to being an absolute ruler, not confined by other landowners or the Catholic Church. 

The third major power of the continent took form much later when Otto von Bismarck, through war and diplomacy, created the nation-state of Germany. He was first the prime minister of Prussia, the dominant state of the German people, and later became the first chancellor of modern Germany. 

For the first several hundred years of the history of modern Europe, the largest countries battled for supremacy against the Church of Rome. Only with the Treaty of Westphalia did the nation-state supplant the Vatican as the primary political organization of the continent. The treaty also established the principle of religious self-determination. But war was frequent in Europe. England fought France several times, and true peace between the two countries was only established with the Duke of Wellington’s victory over Napoleon Bonaparte at Waterloo in 1815. 

England also waged maritime wars against Spain, France, and the Netherlands as it established primacy at sea. France and Germany also engaged in violent conflict. Prussia was part of the English alliance that defeated Napoleon. In the Franco-Prussian War of 1870, Prussia humiliated France. France repaid that humiliation with the harsh Treaty of Versailles, ending the slaughter of World War I. 

War is so common in European history that just 20 years after the end of World War I, a war that took approximately 15 million to 20 million lives, the German people willingly followed Adolf Hitler into World War II. Hitler’s fanaticism led to the deaths of tens of millions of Europeans. That terrible conflict proved that slaughter was part of the fabric of Europe.

Only when the United States entered World War II and destroyed Nazi Germany did the continent of Europe find lasting peace among its major nations. Since 1945, Great Britain, France, and Germany, democratic powers of the continent, have resolved their differences peacefully. This history matters. And Americans should be very proud of it.

From Tuesday to Thursday, the 32 nation-states that make up the alliance of NATO will gather in Washington to celebrate the 75th anniversary of the organization.

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NATO and the Pax Americana are imperfect. Too many European nations, such as Belgium, Spain, and Germany, continue to freeload off the back of the American security umbrella. They do so even as the U.S. is forced to divert resources to confront the rising risk of war with China. However, NATO is essential to the national security of the U.S. A peaceful and economically successful Europe is essential to U.S. prosperity.

If nothing else, however, NATO’s 75th anniversary offers a chance for Americans to consider Europe’s history before and after our military involvement in it — and, in doing so, be very proud.

James Rogan is a former U.S. foreign service officer who later worked in finance and law for 30 years. He writes a daily note on the markets, politics, and society.

As the nation celebrates the 248th birthday of the Declaration of Independence, it is appropriate that the U.S. Supreme Court has restrained a rising administrative state. That’s the result of the court’s 6-3 decision in Loper Bright Enterprises v. Raimondo.

In the decision written by Chief Justice John Roberts, the court overruled the so-called “Chevron Doctrine,” by which the judiciary deferred to administrative agencies on interpreting ambiguous statutory language by Congress. Going forward, courts will decide what Congress means when it writes less than straightforward legislation. The courts have expertise in law — administrative agencies do not. Administrative agencies are supposed to implement laws passed by Congress, not make law themselves. Long ago, Chief Justice John Marshall wrote that it is “emphatically” the duty of the courts to say what the law is.

The Roberts Court has reaffirmed the fundamental constitutional principle of separation of powers. Congress writes laws. Under the Administrative Procedure Act of 1946, administrative agencies implement legislation written by Congress.

The APA never gave government agencies the power to make laws or establish how businesses operate. But over time, it became accepted practice by agencies to make new laws according to the politics of the sitting president. As a general rule, Republican presidents directed agencies to be pro-capitalism and to maximize liberty for the people. But beginning with President Franklin Delano Roosevelt, Democratic administrations tried to expand the size and scope of government.

Under the Administrations of Presidents Obama and Biden, government has become increasingly left-wing. Administrative agencies tell businesses who to hire. The progressive agenda of diversity, equity and inclusion becomes stitched into the fabric of our lives. But racial quotas are unconstitutional. Americans are free to choose how to conduct their lives. With the overturning of judicial deference, liberty is restored. Liberty is the defining purpose of the nation.

The left-wing media interpret the Loper Bright decision as emasculating the federal government’s power to ensure that our “navigable” waters are clean. The left-wing media say the government no longer has the authority to ensure that the air we breathe is fresh. They say that under the doctrine of Loper Bright, government no longer has the power to address monopolization.

The left-wing media are badly wrong.

What Loper Bright actually means is that the federal government cannot interfere with residential construction if the construction does not affect a navigable waterway. Navigable means a boat can navigate the water. Loper Bright means that the Environmental Protection Agency cannot destroy hundreds of thousands of jobs in the oil, gas, and coal industries without precise legislative language written by Congress. Loper Bright means that people cannot be forced to purchase and drive electric vehicles. Oh, and that vehicle companies cannot be forced to lose billions of dollars building vehicles that people don’t want to buy.

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The true meaning of overturning the Chevron doctrine of judicial deference is a restoration of the constitutional principle of separation of powers. Congress makes laws. The President executes laws made by Congress. The Supreme Court says what the law is. Let the European Union strangle innovation and dynamic capitalism. Let America thrive.

As we celebrate this July 4, let’s cheer the restoration of our Constitution and our liberty.

James Rogan is a former U.S. foreign service officer who later worked in finance and law for 30 years. He writes a daily note on the markets, politics, and society.