Support the rap video and more

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

Alena

http://grantfoundation.net

This rap seems like such a terrible idea.. It'll be a miracle if you pull it off, but I am sincerely hoping you do. A very fine line must be struck for it even to be okay.

I'm not saying this to be a jerk - I love your blog and podcast. I've learned so much from you. By, my God, this rap... It sounds like a Stephen Colbert gag. I don't think this is going to help your cause. I'm not sure if it's supposed to be funny or appeal to people who aren't interested in economics but it's just going to lead to ridicule.

I don't even like "real rap", but I owe Russ something for all the great podcasts.

"real rap",

I’m unfamiliar with this term. Please elaborate.

The kind I'm more likely to see on MTV than the NewsHour. Not knockin' it. Just sayin'.

Plus, has McNeil/Lehrer degenerated that far? Geez....

No, please, knock away. As Wynton Marsalis said to me, “Anyone can curse over a backbeat.”

To paraphrase Orwell, "All rap sucks, but some rap sucks more".

We'll see. Not sure how it will be received. The project it will be a part of is going to be very serious--video interviews with macroeconomists on Keynes, Hayek and the issues of the day.

You could also do an updated version on fungible currency:

Pink Floyd - Money

I was thinking you could follow it up with maybe some Ayn Rand/John Galt speed metal bit, or maybe a Milton Friedman prog rock piece.

Let me know if I can help with production (professional experience).

Have you heard it?
I understand what you're saying, and thought the same thing, but the bits that I've heard were pretty good.

umm, don't mean to rain on the parade, but ...

With great respect to Russ (also Don and others), Professors at GMU average about $125k annually. That's pretty good pay for a 9/10 month contract. Far above what my employee's (high school graduates) make.

Yet, you ask for a "tax deductible" donation which means some of the taxes my guys pay out of their hard earned $30k, $40k or $50k goes to benefit everyone who donates. And my guys don't even get a say. Isn't this a market oriented, capitalist, anti-government web site?

Sell something! Run the site as a business. Why is a tax supported charity your vehicle of choice when nearly every post denounces governmental activity and extols private activity?

I was tempted to ignore this but couldn't let it go. The whole idea of Cafe' Hayek being a tax deductible activity associated with a state supported university just seems so out of synch with the content that I couldn't leave it alone.

Nope, sorry I won't donate. Sell me something. Run a business. Be a capitalist not a statist.

Putting aside all of the tax policy arguments, you guys really should consider selling stuff, here or through Mercatus or GMU. I'd love to buy Austrian school paraphernalia and help out the cause at the same time.

"Be a capitalist not a statist."

We’re about peace and voluntary, decentralized decision-making. Not “markets”. Private altruism is every bit as libertarian as private profit and loss. There’s not an ounce of “statism” is anything that’s going on.

"Yet, you ask for a "tax deductible" donation which means some of the taxes my guys pay out of their hard earned $30k, $40k or $50k goes to benefit everyone who donates”

Surely you’re not confusing someone not having to give some of their property to the government as a transfer from those that do. Tax deductions are not a wealth transfer. Considering the composition of the actual taxpayers vs. tax consumers, I’d say that it’d take a whole lot more than a small donation to a worthy cause before the scales tip.

"Yet, you ask for a "tax deductible" donation which means some of the taxes my guys pay out of their hard earned $30k, $40k or $50k goes to benefit everyone who donates. And my guys don't even get a say. Isn't this a market oriented, capitalist, anti-government web site?"

I'm trying to digest this paragraph but I'm not getting it.

What if I decided to not got to work today? That would mean I'd earn less money and thus pay less taxes. If I did so, would I be exploiting your workers?

Or is it only if I go to work and then donate it to Russ's charity, leaving the same tax burden, that I'm exploiting your workers?

Anyway, concerning the role of charity in a free market, since this is a blog in the name of F.A. Hayek, I'll leave you with a quote from him:

"By common opinion our chief concern...[is] the welfare of our family. But we also show our appreciation and approval of others by making them our friends and their aims ours. To choose our associates and generally those whose needs we make our concern is an essential part of freedom and of the moral conceptions of a free society. General altruism, however, is a meaningless conception. Nobody can effectively care for other people as such; the responsibilities we can assume must always be particular, can concern only those about whom we know concrete facts and to whom either choice or special conditions have attached us. It is one of the fundamental rights and duties of a free man to decide what and whose needs appear to him most important."

Or what about this, what if I donated my TIME to Russ's charity rather than money. Thus, all my production from my donated time goes untaxed. Is that exploiting your workers?

Well, if it makes you feel better, don't take the deduction.

Charity is a very important part of the free-market.

Excellent point Marcus. My first donation has been made. I will claim the deduction.

I am looking forward to the visually compelling set of resources.

Fact check: Is Cafe Hayek a tax deductible activity? I thought the donation was to support a Marcatus Center project.

I do not see this as a 'market-oriented, capitalist, anti-government' site. I see this as a site that points out the better outcomes that result from voluntary activity vs. coerced activity.

Donating is a voluntary activity. If you have a problem with the tax deductible nature of the donation, I believe the proper place to raise that concern is with your Congressman. I am going to donate to the Marcatus project. I think it's an extremely worthwhile cause.

That being said, Russ and Don, I think he's onto something. I think there could be a market for some products. I would love to purchase a Cafe Hayek t-shirt. Maybe those are available and I haven't found them.

I also had an idea for Austrian and Keynsian "School of Economics" college wear. I actually took a meager try at the Austrian school apparel. It's available on Cafepress. I'm not graphic artist and it shows. It reads "Austrian School of Economics: There are macroeconomic problems, but only microeconomic solutions." I heard that from Russ. Not sure if that's who I need to attribute the quote to.

Here's an idea for a more serious product line: Have you thought about making some econ courses available online? Being able to earn a GMU Econ "certificate" or something of the sort might be appealing to some, or maybe just me.

This is a Mercatus Center project. Contributions are tax deductible.

Didn't know I said that. I don't think I made it up. It's a nice quote.

Russ - I thought I heard you say that in a podcast. I think the time frame was around the beginning of this year. Maybe it was your guest. Either way, I like it too.

I also like your quote on capitalism. "Capitalism is a profit and loss system. The profits are there to encourage risk taking. The losses are there to encourage prudence." Very much the same, but better way of saying what George Schultz said during his Solmon interview, that removing accountability from the system is dangerous. Losses are one of the trueest measure of accountability around.

Your guys making $30-50K aren't paying income taxes after taking into account all of their deductions and credits. They are heavily subsidized by professors making $125K per year.

BTW, I love how you think being a professor is a like teaching high school. I don't think you understand just how difficult it is to get a Ph.D. and how many long hours academics put into research and how difficult it is to get published. Without publications, you're toast. If you don't distinguish yourself as a scholar, you don't get tenured and you have to uproot your family, move to another institution and start all over again. And you spend your entire career working with small minded, petty, mean little ivory tower types.

@Methinks1776 - I just ran a hypothetical TurboTax for a family of 3 with one spouse (say one of my higher paid guys) at $20/hr working 40 hr weeks w/10hrs/wk of overtime ($30/hr) and the other spouse (a waitress) at $7.5/hr working 30 hr weeks with an estimated $102/wk in tips. They have one school age child and rent their home. This is a typical scenario in my world. Not sure where you work/live. And, yeah we give the employee paid health care, two weeks paid vacation and 5 sick days a year plus regular paid training. Company is fully insured (up the ying yang in fact) to protect ourselves and our guys.

Gross income: $68,900 Adjusted gross income: $68,900
Personal exemptions: $10,500 Standard deduction: $10,900
Net taxable income: $47,500 Taxes before credits: $6326 (Federal only)
less child tax credit of $1000 and ignoring the one time "Recovery Rebate" of $1500 leaves a tax of $5326. Don't forget to add the state tax to this amount.

Where exactly is their subsidy? And, do you really want to make a case about how hard it is to be a professor? Golly, (no disrespect meant to Russ, Don, et al) they actually have to work? Want to try the work my guys do? Want to get called out on the occasional weekend or late at night? Want to sometimes work in sewage or mold or dirt? Want to work in the heat of summer and the cold/wet of winter? Want to put in long, physically hard days? You think they/we don't have to deal with "small minded, petty, mean" customers some of whom think they can just ignore us when payment is due?

Give me a break Methinks1776. I don't really give a damn how hard it is to be a professor. My guys and I know what hard work is. The point stands that tax deductible means everyone who pays a tax has part of their payment taken to benefit the one who gets the deduction. And they don't get a say in it.

Also, Red, even if you don't donate and instead pay the full tax, your hypothetical employee still doesn't get a say in how its' spent and his income tax burden is neither reduced nor increased because of your tax deduction. Wouldn't you rather the money go a Mercatus project than some pork project?

latest data available on effective tax rates from the CBO

http://www.cbo.gov/ftpdocs/98xx/doc9884/12-23-E...

Effective taxes include payroll taxes, of course. The tax burden of the "rich" is twice the middle class when all Federal taxes are included.

I can't track it down right now, but the latest income tax data shows that the top 1% pays more income tax than the bottom 97% combined. The bottom 50% pay virtually nothing (less than 1% of all personal income tax collected if memory serves).

And you're saying there's no subsidy?

BTW, what does Russ' income have to do with anything? Russ is not asking you to make a tax deductible donation to support his lifestyle. He's asking for donations to fund a Mercatus Center project. Lots of people from from all income brackets are going to donate money and all of them will get a tax deduction - including your hypothetical employee.

I'm sure you and your employees are fine, hard working people and I know just how hard it is to run a business (I've run several, including the current one). I was taking issue with your assumption that a professorship is like getting a teaching certificate and teaching second grade for $125K. My parents spent their lives in this profession. IMO, it's worse than working with mold (which, I have done, BTW. There was pretty much no dirty job I didn't take to put myself through college - they paid better than the clean ones). You pay your employees the least amount that is required to acquire their labour, surely you understand that universities do the same with professors?

@Methinks1776 - I just completed the hypothetical TurboTax for the state tax and my hypothetical worker and spouse owe an additional $3576 in state taxes. Add this to their $5326 in Federal taxes and their total tax bill is $8902 on total gross income of $68,900 for two working parents. Wait, don't forget the mandatory FICA that takes another $5270 or so out of their paychecks.
Yep, that's some subsidy.

I don't know a lot of people who get pay less taxes than they get back.

I feel I owe somebody something for all of these great podcasts. I'll donate to ease my conscience and support the message.

I was listening to some of the rhymes, and they actually flow pretty well. Great job!

Merry Xmas

Great idea! While I am a poor graduate and do not always agree with Libertarian ideals, I can agree with this one. I'll give what I can...

I'll only donate if you start posting as the Pro-fe$$ah.

If I were singing, I'd consider it. It's very nice. But I am merely the co-creator with John Papola.

Oh come on! You could wear a clock like Flav.

Sorry. All of my money is tied up paying for Stimulus I-XXI. Try Soros.

I'm kidding of course - Soros doesn't find free markets a worthy cause. I will be making regular donations. Thanks for the information, the effort and the link. I can hardly think of a more worthy cause.

RE: "I'm kidding of course - Soros doesn't find free markets a worthy cause."

Of course - he only contributed millions to opening up Eastern Europe. What an anti-freedom bastard THAT guy is.

dar, soerose hel p fr33 markits in indokneesea

And then he contributed still more millions to create a more centralized economy here. Oh, the cognitive dissonance and moral relativity of the left is truly astounding.

Your heroes don't need you to defend them, Danny. They are much larger than you are.

Just to herd you back to the point of this thread, can the professors count on your financial support?

I find nothing especially heroic in Soros. I'm just amazed at the way you can demonize just about anyone that rubs you the wrong way.

Unfortunately, they cannot count on my financial support, but they can count on my moral support. To the extent that I have latitude to contribute to charities, I usually have other priorities than educational donations - and to the extent that I have donated to educational institutions in the past it's been to the economics department at my alma mater (the first political economy department in the United States, for interested history buffs).

What's amazing is how you can't pass by a little joke without getting your panties into an itchy twist.

Relax. It was a rhetorical question.

No twist - you run hot and cold so often that it's hard to tell so I figured I'd just be up front. If I didn't answer you'd probably push and push until I did.

Good luck with the new site Russ!

Oh, you poor thing.

???

exactly.

the way your mind works is an endless puzzle to me, methinks - have a good weekend, regardless.

That's funny, because yours is not.
You are as predictable as the tide.

Many thanks, Methinks.

The pleasure is entirely mine. I will literally be giving back. You and Don have kept me thinking about and in touch with a discipline I loved as an undergraduate. I regularly read your blog throughout the day (obviously) quote you and send your links and posts to others. I'm just glad that I finally have a chance to make a contribution to support your work and I will definitely pass the link on to others who will also be happy to lend their financial support.