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jobs-fair-weekly-jobs-report

An unemployed American speaks to a recruiter at a jobs fair. (Photo: Mark Ralston AFP/Getty)

A few days ago, we used supply-and-demand curves to illustrate how taxes reduce economic output. Supply-and-demand curves also can be used to examine the impact of minimum wage laws on the labor market.

Workers understandably will be willing to supply more labor at higher wages. Employers are just the opposite. They demand more labor when wages are low. In an unfettered market, the interplay of supply and demand will result in an “equilibrium wage.”

 

But as you can see from the chart, if politicians impose a minimum-wage mandate above the equilibrium level, there will be unemployment. Some folks, though, may not be overly impressed by theory. So how about empirical research.

Other folks, though, may prefer real-world examples rather than academic studies. We’ve already looked at the bad results when the minimum wage was increased in Michigan.

Now we have some more unfortunate evidence from the state of Washington.Seattle Magazine has a story about a bunch of restaurants closing because of an increase in the minimum wage.

The article starts by noting a bunch of eateries are being shut down.

Last month—and particularly last week— Seattle foodies were downcast as the blows kept coming: Queen Anne’s Grub closed February 15. Pioneer Square’s Little Uncle shut down February 25. Shanik’s Meeru Dhalwala announced that it will close March 21. Renée Erickson’s Boat Street Café will shutter May 30… What the #*%&$* is going on?

Hmmm…so what’s changed. It’s not higher food prices. It’s not a change in dining preferences of consumers.

Instead, government intervention is having a predictable effect.

…for Seattle restaurateurs recently, …the impending minimum wage hike to $15 per hour. Starting April 1, all businesses must begin to phase in the wage increase: Small employers have seven years to pay all employees at least $15 hourly; large employers (with 500 or more employees) have three. Since the legislation was announced last summer, The Seattle Times and Eater have reported extensively on restaurant owners’ many concerns about how to compensate for the extra funds that will now be required for labor: They may need to raise menu prices, source poorer ingredients, reduce operating hours, reduce their labor and/or more.

An industry expert tries to explain the new reality of coping with higher costs.

Washington Restaurant Association’s Anton puts it this way: “It’s not a political problem; it’s a math problem.” …he says that if restaurant owners made no changes, the labor cost in quick service restaurants would rise to 42 percent and in full service restaurants to 47 percent. “Everyone is looking at the model right now, asking how do we do math?” he says. “Every operator I’m talking to is in panic mode, trying to figure out what the new world will look like.”

Well, we know what “the new world will look like” for many workers. They’ll be unemployed.

So you can understand why this issue is so frustrating. Politicians posture about helping workers, but they wind up displaying their economic ignorance and real-world innumeracy.

And innocent people pay the price, as shown in the Branco cartoon.

P.S. Walter Williams explains the racist impact of minimum-wage laws.

P.P.S. On a lighter note, here are a couple of additional clever cartoons illustrating the negative impact of minimum-wage mandates.

P.P.P.S. And this video is a must-watch on the issue.

P.P.P.P.S. Shifting to a different topic, I’m not quite sure this guy deserves to be in the Moocher Hall of Fame, but I’m glad he’s going to jail.

Champion golfer Alan Bannister, who played off a handicap of seven, was convicted of benefits fraud after being caught on camera walking around the course on his daily game. He even had a taxpayer-funded mobility car by claiming he was in too much pain to walk. …Inspectors discovered he used his mobility car – intended for people “virtually unable to walk” – to drive to the golf club to play with the “Sunday Swingers” and “The Crazy Gang” players, despite claiming he could barely walk 50 metres at a time. …The court was told Bannister dishonestly claimed £26,090.55 from 2007 until 2012 in Disability Living Allowance.

And while he’s only a borderline case for the Moocher Hall of Fame, he’s a perfect example of eroding social capital.

He’s a dirtbag who decided that it is perfectly okay to scam off taxpayers. When enough of his fellow citizens make the same choice, a society is in deep trouble.

Using supply-and-demand curves to illustrate how taxes

Hillary-Clinton-Watermark-Silicon-AP

Hillary Rodham Clinton jokes during her keynote address at the Watermark Silicon Valley Conference for Women in Santa Clara, Calif., on Feb. 24, 2015.

Looking through my archives, Hillary Clinton rarely has been the target of political humor. I did share a quiz last year that definitely had a snarky tone, but the main goal was to expose her extremist views.

Similarly, I mocked both her and her husband that same year for plotting to minimize their tax burden, but I was simply calling attention to their gross hypocrisy.

The only pure Hillary-focused humor I could find was from 2012 and it wasn’t exactly hard-hitting.

Well, it’s time to correct this oversight. Thanks to the bubbling email scandal, we have lots of material to share.

Let’s start with a video from the clever folks at Reason TV.

Needless to say, cartoonists also have had lots of fun with the former Secretary of State’s dodgy behavior.

Here’s Steve Kelley’s contribution.

And here’s how Dana Summers assessed the situation.

And Ken Catalino reminds us that Email-gate is just the tip of the iceberg when looking at Hillary scandals.

And since we’re have some fun with Mrs. Clinton, here’s someone’s clever photo shop exercise, calling attention to her habit of extorting huge payments for platitude-filled speeches.

And here’s a bit of humor that has a PG-13 rating, so in keeping with my tradition, it’s minimized so only folks who enjoy such humor will go through the trouble of clicking on the icon. The rest of you can continue below.

P.S. Hillary Clinton is portrayed as the “establishment candidate” for the Democrats. Some people interpret that to mean she’s a moderate, particularly when compared to a fraudster like Elizabeth Warren. But if you check out these statements, you’ll see that she’s a hard-core statist on economic issues. Indeed, there’s every reason to think she’s as far to the left as Obama.

P.P.S. Bill Clinton, by contrast, did govern from the center.

Sure, his reasonable (and in some cases admirable) track record almost certainly was a result – at least in part – of having a GOP Congress, but you’ll notice that Obama hasn’t moderated since GOPers took control on Capitol Hill.

For more evidence, check out this interesting (albeit complex) graph put together by Professor Steve Hanke. You’ll notice that Bill Clinton’s pro-market record generated results similar to what Reagan achieved (and Michael Ramirez makes the same point in this cartoon).

Needless to say, I fear that Hillary Clinton would be more like Obama and less like her husband.

P.P.P.S. In addition to his decent performance in office, Bill Clinton also has been the source of lots of enjoyable humor. You can enjoy my favorites by clicking here, here, here, here, here, and here.

Looking through archives, Hillary Clinton rarely has

dakota-meyer-bristol-palin

Bristol Palin, left, with Medal of Honor recipient Dakota Meyer, right, pose for a picture with Bristol’s son Tripp. (Photo: Bristol Palin Blog)

Medal of Honor recipient Dakota Meyer and Bristol Palin, daughter to former Alaska governor and 2008 GOP vice presidential candidate Sarah Palin, are engaged to be married. The two announced the engagement this weekend via social media and Palin’s personal blog.

“Last night, Sgt Dakota Meyer proposed and I said yes!” Palin wrote. She said the two met when Dakota traveled to Alaska to film Amazing America with my Sarah Palin last year, where Meyer hit it off with Palin’s son, Tripp.

Meyer took to one knee and popped the question while attending a Rascal Flatts concert, during which the group’s lead singer, Gary LeVox, dedicated “Bless the Broken Road” to the couple.

“It’s amazing to see what happens when you place everything in life in God’s hands,” Bristol Palin said. “He really is good and His plans are so much greater than our own.”

In a statement released Saturday, Sarah Palin expressed her happiness for the couple and her approval of the engagement.

“Our families couldn’t be happier for Bristol and Dakota! We’re honored to welcome Dakota into our family,” the former Alaskan governor said. “He’s an American hero and patriot whose service to our country – like all his fellow Medal of Honor recipients – has been above and beyond the call of duty; but even more important is he’s a good and kind man who loves Bristol and Tripp, and is loved by them.”

Congratulation to the happy couple from everyone at PPD!

Medal of Honor recipient Dakota Meyer and

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Iraqi military forces and Iran-backed Shiite militias entered central Tikrit last Tuesday, declaring it “liberated” from the Islamic State of Iraq and Syria (ISIS). The battlefield success, which came just 10 days after launching the major offensive, marks Iran’s latest victory in what has thus far been an unimpeded effort to rebuild a lost Persian empire.

Marwan al-Jabara, a tribal spokesman in the Salaheddin province, told Al Arabiya News Channel that Iran’s Shiite-trained forces managed to reach the center of Tikrit after heavy clashes in which “dozens of ISIS militants were killed.”

IRGC Major General Qassem Suleimani, a man also known as the “Dark Knight” and commander of the Quds force, is no longer in hiding but rather openly being celebrated by Iraqi forces following the victory. Suleimani, who directed Iranian proxies fighting against U.S. troops during the second Iraq War, can be seen posing in battlefront photos with Iraqi and Shiite fighters, sipping tea, and hanging out with Iraq’s elderly.

At the height of the Iraq War, Iran was estimated to have roughly 30,000 agents in the country helping to plant IEDs and carry out attacks on coalition troops. Suleimani is responsible for the deaths of hundreds of American soldiers in Iraq, yet today he is the liberator of Tikrit.

While we often hear media outlets refer to Tikrit as the birthplace of Iraq’s former dictator Saddam Hussein, for both Shiite and Sunni Muslim fanatics it has the far more important distinction of being the birthplace of famous Muslim military commander Saladin. A Muslim of Kurdish origin, Saladin founded the Ayyubid dynasty in the 12th century, led Allah’s armies in the Levant, and defeated the Crusaders at the Battle of Hattin in 1187. The victory was so decisive it paved the way for the Muslim recapture of Palestine.

The battle for Tikrit, including the presence and role of Suleimani, marks a turning point for Iran’s role in Iraq and the entire Middle East region. For onlookers and experts, the regime’s play for Tikrit — and, soon Baghdad — is all too familiar. It is the same “highly organized geo-strategic and ideological effort by Iran to protect its ally in Damascus and project power within Syria, Iraq, and across the Middle East,” says Phillip Smyth, a researcher at the University of Maryland and policy expert on Shiite Jihad.

This Shiite jihad engineered by Iran has not stopped in Syria,” Smyth said. “When the Islamic State of Iraq and al-Sham (ISIS) made its startling gains in Iraq earlier this year, many Shiite veterans of the war in Syria redeployed to Iraq.”

While Iraqi forces alongside Iran’s Shiite militias today celebrate their military successes at Tikrit, Iranian officials see a string of both strategic military and political victories as evidence they are winning a decades-long struggle with a now-tired West.

Ali Younesi, an adviser to current Iranian President Hassan Rouhani and former Minister of Intelligence under former President Mohammed Khatami, said that Iran’s historic Persian empire has been restored with Baghdad as its capital.

“Iran today has become an empire like it used to be throughout its history and its capital now is Baghdad,” Younesi said during a talk in the Forum of Iranian Identity in Tehran on Sunday. “It [Baghdad] is the center of our civilization, culture and identity, today as it was in the past,” adding “the geography of Iran and Iraq is not to be divided and our culture is not to be separated.”

Indeed, in Iraq many former Shiite fighters have “traded in their fatigues for tailored suits,” using their jihad resume in Syria as a powerful campaign message to win seats in Iraq’s parliament. As a result, the Iraqi legislative body established and stabilized by the U.S. is now being used to further policies that benefit Iran’s Pan Shiism ideology.

“That’s why either we fight together or become united,” Younesi said. “All of the area of the Middle East is Iran, we shall protect all of the nationalities in the area because we consider them to be a part of Iran and we shall stand against [Sunni] Islamic extremism, takfirism, atheism, neo-Ottomans, the Wahhabis, the West and Zionism.”

He pointed to Tehran’s influence and support of Iraq’s Shiite government, adding “our historic rivals which include the successors of the eastern Byzantines and the Ottomans are not satisfied with our support to Iraq,” a blatant reference to Turkey’s concern over Iran’s expansionism.

Younesi’s remarks may sound like nothing more than rhetorical token throwbacks to the Persian Sassanid Empire, but he isn’t the first official — Iranian or American — to make such a claim regarding Tehran’s growing influence and power in the region.

Chairman of the Joint Chiefs of Staff General Martin Dempsey said under oath this week at a Senate hearing that Iran’s proxy Shiite militias accounted for the overwhelming majority of forces fighting ISIS to take back Tikrit. Out of roughly 25,000 fighters, 20,000 are from militias funded and trained by Iran.

Smyth estimates the number of Shiite fighters in Iraq today falls somewhere between 70,000 to 100,000, noting “they run ministries in Iraq today with their own security apparatus.” He cites the appointing of Mohammad Ghabban from Suleimani’s Badr militia as the new Iraqi interior minister as evidence their efforts are bearing fruit.

“Iran has taken full advantage of the collapse of the Iraqi army in Mosul,” Smyth said, which only became possible after the Islamic State last June took full advantage of the early U.S. troop withdrawal.

Iran parliament member Ali Reza Zakani touted last September that Iran now rules four Arab capitals: Baghdad, Damascus, Beirut and Sanaa.

Iran-backed Shiite Houthi rebels, whose official slogan is “Death to Israel. Death to America,” seized control of Yemen’s capital and forced the resignation of U.S.- and Saudi-backed former President Abed Rabbo Mansour Hadi. Sources at the State Department told PPD in February that Obama administration officials believed they had successfully negotiated a deal with the Houthi rebels through Iran to keep the U.S. Embassy open in Sanaa.

In exchange for allowing U.S. intelligence and State Department personnel to remain at the U.S. Embassy in Sanaa — with the primary purpose to conduct counterterrorism operations targeting al Qaeda in the Arabian Peninsula (AQAP) — the Obama administration, desperate to strike a nuclear deal with Iran, agreed not to interfere with the Iran-backed coup.

The sources, who were validated by leaked emails, indicated the Obama administration not only sold out an important ally in the war on terror, but also that they did so behind the back of another key Arab ally — Saudi Arabia.

The death of Saudi King Abdullah and the fall of Yemen to Iran’s proxy militia group was characterized as a “worst case scenario” by one top Saudi diplomat, as Iran’s ability to extend its reach and influence in the region has never been so great. Abdullah’s biggest priority was to confront Iran across the Gulf, and he was extremely concerned regarding Iran’s nuclear program. In a leaked document, he warned the administration not to trust the talks, but rather urged them to take military action to “cut off the head of the snake.”

Abdullah served as an important Arab voice for U.S.-Arab allies, who are long-frustrated by the administration’s inaction on Syria, Iran and Iraq. Despite the best efforts of Egyptian President el-Sisi and Jordan’s King Abdullah, the possibility of raising an Arab army to confront the Islamic State hinges upon a commitment by the U.S. and the West to deal with the Syrian regime, a commitment that would certainly serve as a deal-breaker for Tehran regarding the nuclear talks.

“King Abdullah did not like President Obama,” said NBC News’ Chief Foreign Correspondent Richard Engel. “In fact, a lot of people I know who are quite close to the late King Abdullah said that the King could not stand President Obama because the president was supportive of the Arab Spring, and because the president did not support Hosni Mubarak in Egypt, in fact turned his back on Hosni Mubarak in Egypt.”

According to officials, Hadi received the same treatment as Mubarak from the Obama administration in order to preserve the nuclear negotiations with Iran. Unfortunately, Iran did not deliver on their promise to allow the U.S. Embassy in Sanaa to remain open, raising several equally disturbing questions, including whether the Obama administration has prioritized a nuclear deal that contains a sunset provision and threshold nuclear capabilities, over the defeat of the Islamic State.

U.S. allies in Egypt, Jordan, and Saudi Arabia all appear convinced the administration has already made that call, a call that ensures Tehran will have the ability to build both a bomb, and a new Persian empire in the Middle East. When historians peer back at the battle for Tikrit, they will certainly view it to be a pivotal turning point for Iran in the region.

“Indeed,” Smyth said. “The real victor of the Syrian war and in Iraq has been Iran, a triumph for which the Islamic Republic has its militia forces to thank.”

Iraqi military forces and Iran-backed Shiite militias

Liberal mediate Lawrence O’Donnell continues to perpetuate ignorance over the “hands up, don’t shoot” narrative that evidence proves never happened.

While appearing on Morning Joe Friday morning, O’Donnell interrupted host Joe Scarborough and Jeff Roorda of the St. Louis Police Officers Association. Scarborough asked Roorda whether, “since Eric Holder agreed with your side of the story,” he had received an apology from the St. Louis Rams for the “hands up, don’t shoot” display by several of its players.

O’Donnell jumped in with the equally false claim that “Eric Holder doesn’t agree with the officers’ side of the story,” claiming instead the report merely found that “hands-up” couldn’t be proved “beyond reasonable doubt.” O’Donnell then condescendingly told Scarborough he didn’t “understand what reasonable doubt is.”

Scarborough, who slammed the Rams and the media last December, responded with a saracastic “thank you so much for giving me a lecture on the law.”

Wide receivers Tavon Austin, Stedman Bailey, Kenny Britt, Chris Givens, and tight end Jared Cook all exited the tunnel with the “hands up, don’t shoot” display in Dec. in what was a distasteful show of support for the rioters.

Liberal mediate Lawrence O'Donnell continues to perpetuate

us consumer sentiment

Shoppers look over the offerings at the new Trader Joe’s store in Boulder, Colorado February 14, 2014.
(Photo: REUTERS/RICK WILKING)

A gauge of consumer sentiment from Thomson Reuters and the University of Michigan fell to 91.2 in March from a prior reading of 95.4 in February. The reading missed Wall Street expectations for an increase to 95.5.

“Consumer optimism slipped in early March among lower- and middle-income households,” said Richard Curtin, chief economist at Michigan’s survey of Consumers. “The renewed concerns expressed by lower- and middle-income households mainly involved income declines and higher utility costs–as well as disruptions to shopping and businesses due to the harsh winter.”

The report, which showed declining sentiment was concentrated in lower-income households, came after the Commerce Department said this week U.S. retail sales fell for the third consecutive month, indicating a slowdown in consumer spending.

With consumer sentiment still at healthy levels but appearing to weaken, the index is the latest piece of data making the case for a downward revision to gross domestic product in the first quarter.

This month’s preliminary current conditions index fell to 103.0 from 106.9 at the end of February. The expectations index declined to 83.7 from 88.0.

The Thomson Reuters and the University of

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“Every account of a higher power that I’ve seen described, of all religions that I’ve seen, include many statements with regard to the benevolence of that power. When I look at the universe and all the ways the universe wants to kill us, I find it hard to reconcile that with statements of beneficence.” — Dr. Neil Degrasse Tyson

A man can only say he truly believes in what he experiences himself.

Another individual or group of individuals can put words down on paper about a subject but that is not proof, it is opinion. Whether that opinion is based on measurable facts or subjective opinion is not relevant– if a person has not experienced with their own 5 senses that issue at hand, all information is merely conjecture.

I believe in God.

I say this based on firsthand experience. I have been witness to many miraculous things and experiences in the last 10 years that have drawn me to this conclusion. I don’t believe in God because of what a person or persons have written down in a book in the Middle Ages (The Bible). That is religion, not God. I am also aware that my numerous experiences with the divine could be explained by one or many scientific or coincidental circumstances. This does not preclude or prove or disprove the existence of a divine being, either.

It is a matter of faith. I understand that.

It is not a lack of scientific knowledge that drives me to the conclusion that God exists. Nor is it an acknowledgement or disavowment of the secular aspects of evolution.

It’s faith.

One cannot prove or disprove the existence of God with science, if science and physics are the tools God has used as his method for creating the firmament, and to argue that it does, as people such as Dr. Neil DeGrasse Tyson does, that is a denial of the truth. It is a limitation placed upon discovery and truth that a reasonable man would not do, nor should any self-professed intelligent man do.

One cannot deny what one does not know.

I therefore acknowledge the existence of God. I do not know whether there is a heaven or hell or even if its wrong to eat meat on a Friday. I can only state that I have faith that something or someone is more powerful and knowledgeable than mankind, and in all likelihood is trying to communicate or direct mankind.

That is God defined, and I believe that no thinking man, if he is honest about his own thoughts, can deny it.

Thomas Purcell is nationally syndicated columnist, author of the book “Shotgun Republic” and is host of the Liberty Never Sleeps podcast. More of his work can be found at LibertyNeverSleeps.com.

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I don't believe in God because of

Barbara_Lee_Congressional_Caucuses

Rep. Barbara Lee, D-Calif., speaks during a Congressional Black Caucus press conference.

The latest Democratic brainstorm is a “got to see it to believe it” piece of legislation aimed at stopping wars around the world – by creating a Department of Peacebuilding.

How very forward-thinking of the left. Or perhaps, more specifically, how forward-thinking of Rep. Barbara Lee, the California Democrat who devised the piece of legislation, H.R. 1111, with the creative fortitude to begin its descriptive text with reference to our Founding Father’s vision for our nation, followed closely by quotes from the Declaration of Independence and the Preamble of the U.S. Constitution.

Only the boldest of Democrat could suggest the establishment of such a massively bureaucratic government venture by waving the very founding documents that pressed limited federal powers.

Points for Lee for the sheer impudence of it.

The bill then goes right into the number of war-related kills America has seen in the 20th century, as well as the number of deaths due to gun-related violence, murders, and child abuse and neglect – and their costs, as borne by each taxpayer.

“On April , 2012, the Institute for Economics and Peace released a United States Peace Index, which assessed peacefulness at the state and city levels and analyzed the costs associated with violence and the socio-economic measures associated with peace,” the text of the bill stated. “While violence within the United States had declined over the year 2011, violence and violence containment still cost the average taxpayer $3,257.”

The total cost for the entire nation to counter violence for that year was “conservatively calculated to be over $460 billion,” the bill went on. Thus, “violence prevention is cost-effective,” it concluded. And therefore, there is “hereby established a Department of Peacebuilding … dedicated to peacebuilding, peacemaking and the study and promotion of conditions conductive to both domestic and international peace and a culture of peace,” the bill stated.

The cost?  This bill calls for “such sums as may be necessary” for the newly created department, including what’s needed for the various created offshoot offices to give out grant dollars to those schools and non-government groups desiring to be trained on all matters of peace.

The bill only has a handful of cosponsors – all Democrats, and more to truth, all the most leftist-of-left Democrats. And it’s probably not going anywhere near the full House floor for a vote, at least while Republicans still hold the majority. But that’s not really the point.

The larger issue is: Why do politicians always think they can solve all the world’s problems?

Lee and her Department of Peacebuilding supporters no doubt truly believe that simply spreading the word of peace – by getting together and sitting down in a group, identifying problems, rationalizing solutions, hashing out consensus and shaking hands on an agreement – will somehow, miraculously, bring about a peaceful coexistence among all of humanity. But that’s just naïve to the level of ridiculous. Not to mention dangerous; that’s the mentality the Obama administration touts on all its foreign policy dealings with even those nations that want to harm the West.

It’s that line of thinking that defies the truths about war and peace and the matters and motivations of human hearts. It negates the fact that true evil exists – and fails to recognize evil as the springboard for war. And it outright ignores common sense principles and biblical wisdoms. Take a look at this, from James 4: “What causes wars and what causes fightings among you? Is it not your passions that are at war in your members? You desire and do not have; so you kill. And you covet and cannot obtain; so you fight and wage war.”

In Lee’s mind, and those of her cohorts, the solution to war is building a new government facility and creating a new federal bureaucracy and hiring new government workers who will talk and meet and give out taxpayer dollars so more government workers can talk and meet. But James 4 lays it out much more simply, and cost-effectively: “You do not have, because you do not ask. You ask and do not receive, because you ask wrongly, to spend it on your passions. Unfaithful creatures! … Humble yourselves before the Lord and he will exalt you.”

It just doesn’t make sense that making a new federal department — and throwing money at a new government bureaucracy — will purify the human heart to the point that worldwide peace prevails.

Cheryl Chumley, a writer for WND.com and former news writer for The Washington Times, is also the author of “Police State USA: How Orwell’s Nightmare Is Becoming Our Reality.” She may be reached at [email protected] or through her blog, cherylchumley.blogspot.com.

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The latest Democratic brainstorm is a “got

al-baghdadi-boko-haram

Islamic State leader Abu Bakr al-Baghdadi, left, and Boko Haram leader Abubakar Shekau, right.

A spokesman for the ISIS terror group said Thursday that it had accepted a pledge of loyalty from Nigeria-based Boko Haram that was made last weekend.

ISIS’ media arm, al-Furqan, released an audio statement by spokesman Abu Mohammed al-Adnani that claimed the group’s self-proclaimed caliphate had expanded to West Africa. In previous declarations, al Adnani had urged fighters from around the world to migrate and join Boko Haram.

More – Audio: Boko Haram Swears Allegiance To ISIS, The Islamic State

“We announce our allegiance to the Caliph of the Muslims … and will hear and obey in times of difficulty and prosperity, in hardship and ease, and to endure being discriminated against, and not to dispute about rule with those in power, except in case of evident infidelity regarding that which there is a proof from Allah,” said the message.

A spokesman for the ISIS terror group

tax policy

A young couple during tax season tries to navigate an over-complicated tax code. (Photo: Shutterstock)

While I sometimes make moral arguments against the current tax system (because it is corrupt, because it doesn’t treat people equally, because it provides unearned wealth for insiders, etc), my main arguments are based on economics.

tax codeHigh tax rates on workers and entrepreneurs discourage productive behavior.

Double taxation on income that is saved and invested discourages capital formation.

Tax preferences and other loopholes bribe people to use resources inefficiently.

These are the principles that explain why I like tax reform, why I promote the Laffer Curve, and why I advocate for tax competition.

Maybe it’s time, however, for a back-to-basics primer on taxes and behavior. That’s why I’m very glad that Professors Tyler Cowen and Alex Tabarrok of George Mason University (and the Marginal Revolution blog) are producing videos on various economic principles.

And I particularly like a video they produced which uses supply and demand curves to show how taxes reduce economic output.

But before we watch that video on taxes and “deadweight loss,” here’s a video on how supply and demand curves interact.

Feel free to skip this video if you feel confident in your understanding of these economic concepts (and also feel free to watch this video on the demand curve and this video on the supply curve if you don’t have any background knowledge and need to start at the beginning).

Now let’s look at their first-rate video on how taxes lead to less economic output and foregone value for both buyers and sellers.

Very well done. I particularly like the closing example showing how the so-called luxury tax backfired.

Here are a few of my thoughts to augment Professor Tabarrok’s analysis.

1. The video looks at how taxes affect the equilibrium level of output for an unspecified product. Keep in mind that this analysis applies to “products” such as labor and investment.

2. It should go without saying (but I’ll say it anyhow) that ever-higher tax rates impose ever-higher levels of deadweight loss.

3. The point about avoiding taxes on goods where there is high “elasticity” has important lessons for why it is foolish to impose class-warfare tax rates on people who have considerable control over the timing, level, and composition of their income.

4. This analysis does not imply that all taxes are bad. Or, to be more precise, the analysis does not lead to the conclusion that all taxes are counterproductive. If government uses money to provide valuable public goods, the overall effect on the economy may be positive.

P.S. I’ve shared a couple of tests that allow people to determine their philosophical/political leanings, including the libertarian/anarchist purity quiz, the circle test to see where you are on the spectrum from socialism to voluntarism, and a candidate affinity test.

I’m a sucker for these quizzes, even when they don’t make sense.

And if you like these tests (particularly one that does make sense), then you’ll enjoy this quiz from David Boaz’s new book, The Libertarian Mind: A Manifesto for Freedom.

You’ll be shocked to learn I got a perfect score. Which is probably a good thing since David is one of my bosses.

The Princess of the Levant will snicker at the thought of me being described as “cosmopolitan,” but I’ll tell her that even a rube can have a cosmopolitan vision of society.

And remember, libertarians also have the self-confidence to enjoy self-deprecating humor, so we must be good folks.

While I sometimes make moral arguments against

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