Wall Street Journal columnist Matthew Hennessey summons more people to the cause of basic economic enlightenment. A slice:
Yet each generation somehow produces naïfs who are certain that collectivism is the true longing of the human heart. They know they can make it work this time. The young voters who supported Mr. Mamdani were primed by their expensive educations to buy his line that capitalism is rigged in favor of the rich. All they’ve ever been told—by teachers, professors, TV and TikTok—is that markets are inhumane. Capitalism is rapacious and bad for the climate. They may never have heard a single word to the contrary.
This is a failure of education, yes. Basic economics is rarely taught in high school or required in college. But it’s equally a failure of public relations. Who is making a sustained and coherent public case for American-style capitalism? The field is wide open. We need new Milton Friedmans and Thomas Sowells.
The product itself isn’t the problem. Free markets have made life better, healthier and more prosperous in demonstrable ways for billions of people. Anticapitalists on both left and right struggle to make a serious case that things are worse now than they were 100 or 150 years ago. Take a moment to imagine life without washing machines or chemotherapy.
Competitive markets foster innovation and allocate resources with remarkable efficiency. They work. Even when markets come up short or create externalities like pollution, the incredible wealth they generate can be used to fill the gaps. When socialism fails, as it inevitably does, the only option is brutality. This always gets glossed over on MSNBC and CNN. I’d like to hear Mr. Mamdani explain how he plans to keep New Yorkers captive when his experiment goes south.
Markets are more than efficient, which would be argument enough in a head-to-head competition with socialism. They’re also moral. Markets enable willing and mutually beneficial exchange among free people. They abominate coercion. They encourage a belief that tomorrow will be better than today. No one would bother investing absent an expectation that it will pay off. Capitalism is synonymous with confidence in the future.
Arnold Kling shares insights about AI and productivity.
James Pethokoukis explains that “markets are good for a country’s pocketbook and its soul.”
Who’d a-thunk it?: “US manufacturing mired in weakness as tariffs bite.” (HT Scott Lincicome)
My intrepid Mercatus Center colleague, Veronique de Rugy, is understandably dismayed at the calamity that is the so-called “One Big, Beautiful Bill.” A slice:
Meanwhile, the bad amendments were made worse. For all the complaints and the “green new scam” label, the Senate utterly failed to terminate the Biden administration’s green subsidies. Read Alex Epstein’s summary and weep. And Senator Susan Collins (R., Maine) got all the subsidies she wanted and will pay for them by taxing the rich.
With Republicans like this, who needs Democrats?
For those of you who believe that the One Big Beautiful Bill Act will produce enormous growth, as projected by the Council of Economic Advisers, I have a bridge to sell you. There is only so much that the few good tax provisions in the bill can do.
GMU Econ alum Dominic Pino reports that the Trump administration is working to reduce the transparency of labor unions. A slice:
When President Trump appointed the Teamsters’ preferred nominee for secretary of labor, that meant unions were going to have access in a Republican administration like they haven’t had in decades.
One of the first pieces of evidence for that has surfaced in a proposed rule published Tuesday that would reduce union transparency. The administration wants to reduce the number of unions that have to file the most detailed public disclosure reports by raising the threshold for which such reports are required by law.
Bradley Smith is correct: “Campaign regulations are unconstitutional.” A slice:
But the problem goes deeper than the need to define “corruption” and balance it against the “urgency” of political speech. There is no constitutional basis for government to regulate political speech through campaign-finance laws.
When Congress passed the Federal Election Campaign Act in 1971, it claimed authority under its constitutional power to regulate the “time, place and manner” of elections. The Supreme Court accepted this premise without analysis in Buckley v. Valeo (1976). But political campaigns aren’t “elections,” and campaign-finance laws obviously don’t regulate the time and place of an election. But neither do they regulate the manner of holding an election. Dating may precede marriage, but it isn’t marriage. Similarly, campaigns precede elections, but those campaigns aren’t elections. They are speech: Americans are debating and talking about the candidates.
Elections are the casting and counting of votes. To run an election, the government must choose the date and polling places, manage voter registration, tally ballots and so on. Administering an election is far different from regulating a political campaign—a candidate or party’s conversations with voters. Campaigns consist of speech, publishing and assembly, three fundamental rights enshrined in the First Amendment.
When government regulates campaigns, it is directly and explicitly regulating protected First Amendment activity. Debate about issues and candidates happens every day in America, with or without an election pending. It isn’t possible to cabin off “election” speech from general political discourse, and there is nothing about regulating the manner of an upcoming election that allows the government to interfere in that public discussion. Congress not only lacks the enumerated power to do so but is specifically prohibited from doing so by the First Amendment.
Washington Post columnist Megan McArdle joins with the critics of Zohran Mamdani’s foolish proposal for government-run grocery stores. Two slices:
Even saving New Yorkers that percentage would be a challenge, because it’s really hard just to break even in the grocery business. It takes extensive experience and a relentless focus on implementation to keep the right stock on the shelves, to prevent theft while providing attractive and easily accessible displays, to cultivate workers who provide excellent customer service, and to keep spoilage down to acceptable levels. Order too few perishables, such as meat and produce, and your disgruntled customers will leave empty-handed; order too much and you’ll have to throw it away after it passes its expiration date, eating those narrow margins and plunging the business into the red.
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What’s that I hear from the back? They can save on rent by parking stores on city-owned land? My friend, let me introduce you to the economic concept of opportunity costs: A “free” location isn’t actually free if it means forgoing money you could have collected by leasing it, not to mention the tax revenue you’ll lose by substituting a city operation for a successful business.
GMU Econ alum Benjamin Powell makes the case that “Trump’s travel ban will not make Americans safer.”