Timmy elsewhere

Can We Get This Straight Please: Jobs Are A Cost, Not A Benefit, Of Doing Something

The Excellent Part Of Ben Carson’s Tax Plan: Abolish The Mortgage Interest Deduction

How do we get the adults into government?

Lots of people wish to live in parts of the country where there are not many bedrooms. Therefore people are living in small bedrooms rather than large ones: that’s just what happens. If there’s a shortage of food then people eat smaller meals, if the pub runs out of beer then everyone drinks shorts. Shortages lead to smaller measures.

Government would not ban the consumption of gin if beer were to go short, government would not ban smaller plates if food were to be short, so quite why government thinks that the banning of small bedrooms is going to increase the supply of bedrooms is unknown to us.

Yes of course Thomas Piketty is wrong, why do you ask?

9 thoughts on “Timmy elsewhere”

  1. You’ll always struggle to make the jobs=cost argument, Tim. It’s right, but it shades into “robots/foreigners are taking our jobs” territory.

    Many people can’t afford to believe that they’ll always be able to retrain into new jobs, or otherwise keep up with the average gain in wealth so as to retain their quality of life.

  2. Re jobs being a cost not a benefit. Isn’t it a bit of Bastiats ‘That Which is Seen, and That Which is Not Seen’ thingy?

    This wind farm or whatever will create some productive work for some people making ‘x’. People can see that, it’s obvious. That it will destroy unknown production of ‘y’ where as a society we could have had both x and y instead of only x cannot be seen.

    I’ve had this discussion before with lefties and made a point that by their logic we should destroy all the tractors and other farm equipment so we could all have jobs as agricultural labourers. Apparently now, and only now in the present time, “things are different”.

  3. One of the arguments I hear from lefties is that government spending, even if spent on something utterly useless creates this ‘multiplier effect’ where the beneficiaries of said spending go out and then spend that on stuff etc etc. Ok… What I don’t get is how is this any different to the private sector being allowed to keep more of their hard earned and spending or investing that? What’s special about getting money from the government that makes a bigger multiplier?

  4. I lived in London in a tiny bedroom once. It was crap, and expensive for its size. But if it hadn’t been available, I would have either been homeless for a while (because finding a shared place in London is very difficult due to the shortage of budget rooms), or I would have had to spend an even greater percentage of my meagre money to get a bigger bedroom that I didn’t need and couldn’t afford to pay for for long.

  5. We should get rid of the charitable tax break now that it’s obvious that so many charities are corrupt and corrupting. Tough luck on the honest ones; maybe if the reason for scrapping the break were well publicised, people would divert their remaining contributions to them.

    Duck, the pigs are coming!

  6. ‘He said explicitly that he would eliminate the mortgage-interest deduction and the tax break for charitable contributions, which, combined, will save Americans over $100 billion this year.’

    Ambiguous. Which Americans? How?

    As the mortgage interest deduction is deeply embedded in the economy already, it’s withdrawal, while probably a good idea, should only be implemented over time.

    One should be able to rely on one’s government, even if it is a bad policy.

  7. Dongguan John

    I think Bastiat should be compulsory reading in secondary education – unquestionably one of the most influential authors I have read.

    In answer to your second post, apparently Government spending is better because (And I quote Murphy on a specific day of the week) ‘the State can direct expenditure better and more in the interests of “civil society” than Private agents will’.

  8. The fundamental sticking point with Worstall. Paying wages is a cost on production: No it isn’t. As Ford found (by accident) pay good wages and workers can buy your products. If everybody pays good wages (the opposite of UK obviously) all businesses make good profits .Good wages = good profits.

  9. Reed, I ran cost accounting systems for 18 years. Labor was in there. It’s a cost, your fairy tale economics not withstanding.

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