A recent article about the current economic meltdown on Mises.org opened with the claim, “Far from being prosperous, our America is now being buffeted by the worst financial tsunami in generations.”
The folks at Mises don’t usually travel along with the mainstream media, but in this case they did. Sensational claims that things haven’t been this bad since the Great Depression are being commonly made. But this just isn’t the case. We only have to go back to the early 1980’s to find times that are much worse than today.
It was only in December that unemployment rose above 7%—the first time it reached this level in over 15 years. Back in 1980, unemployment crossed the 7% mark in May; however, it had been above 7% as recently as 1977—a respite of only three years.
And once over the 7% mark in 1980, unemployment didn’t stop rising until it registered 10.8% in November and December of 1982, and didn’t fall below 7% to stay for a while until November 1986. So during the recession on the early 1980s, unemployment stood above 7% for 76 of 78 months, or six and a half years.
Today, we’ve been over 7% for only three months. The unemployment rate in February was 8.1%.
Inflation was no better n the early eighties. It moved into double digits in March 1979, reached 14.76% in March 1980, and didn’t get back to single digits to stay until October 1981—32 months later. Contrast that to this year, with inflation in February at less than one percent, after averaging only 3.85% last year.
The misery index (unemployment plus inflation) in January 1980 was 20.21%. In September 1982 it still stood at 15.14%. In February it was 8.34%.
So while times are hard, they don’t yet compare to the pain of the early 1980s. And remember, the 1980’s didn’t start out bad on their own. The tough times were a result of the bad public policies of the 1970s.
So there is hope ahead. We can reject the big spending, big government ways that hurt so many people almost 30 years ago. By reducing government mandates that increase consumer costs, rejecting uncontrolled spending, and opposing high taxes, we can give the decade beginning in 2010 a fighting chance to start out better than the 1980’s.
Monday, April 13, 2009
Coming to Texas
Dear Mr. Limbaugh:
I noted your evident frustration this week with the high tax policies of New York that subject you to a punitive income tax rate anytime you step foot in the state to perform your show. I was delighted that you expressed an interest in making Texas the home of your alternate studio whenever hurricanes chase you out of Florida.
If you come to Texas to do business, you wouldn’t be alone. Texas has ranked in the top five states for the last five years when it comes to attracting new and expanded facilities, according to Site Selection magazine.
In fact, our success has come at the expense of your soon-to-be-former workplace. Last year, Texas surpassed New York as home to the most Fortune 500 companies. Texas now boasts 58 Fortune 500 headquarters, ahead of New York's 55 and California's 52.
Why is Texas forging ahead of the competition? Well, you hit the nail on the head when you mentioned that Texas doesn't have a state income tax. The people of Texas still have the same spirit of independence that attracted folks from all over the U.S. to fight at the Alamo so long ago. We don't believe that the government is the solution to all the world's problems and we'd just as soon leave people’s money in their own pockets where it will be the most productive.
A recent Texas Public Policy Foundation study showed how this attitude has made Texas a better place than California to do business. California's overall tax burden is $118.33 per $1,000 of personal income. Texas' is $99.49. California government spends $9,448.26 per capita. Texas spends $6,652.11.
And the kicker: California's personal income tax progressivity is $33.58. Texas'? Try zero.
I suspect the results would be similar in a head-to-head competition with New York. And the way things are going in Florida these days, it may not be long before you start thinking about moving your studio to Texas on a permanent basis.
It is true that Florida doesn’t have an income tax. But that may not last long. Florida's ill-considered decision to get into the homeowners' insurance business has the state facing bankruptcy if a major hurricane makes landfall there this summer. With a potential liability of $32 billion, Florida will have to turn to either its citizens or the federal government to make up the shortfall. I am fairly certain, Mr. Limbaugh, you will be on the short list of those solicited to contribute.
Businesses are noticing this too. Florida bounces in and out of Site Selection's top 10 ranking and is only 11th on the Fortune 500 list.
So if you come to Texas, where should you live? While Texas is a great place, we do have our flaws like everywhere else. So let me provide you with some local knowledge that may help in your decision about where to relocate.
I'd avoid downtown El Paso at all costs. That city is prepared to use eminent domain to reshape parts of the area into a livable, workable urban utopia. Never mind the forced dislocation of the thousands of people who already live and work there.
The Metroplex is a great area, but may be getting much more expensive pretty soon. Local business and government "leaders" are proposing hundreds of millions of dollars in new taxes to fund rail and other transportation projects. This is the same group, of course, that agreed to limit transportation options in the area through restrictions on air travel through Love Field.
Houston might be a good choice for you. Though its moniker of "free market city" may be something of an anachronism, it still doesn't have zoning, so you could build your new home and studio together in the location of your choice.
Wherever you wind up, Rush, we'd welcome your entrepreneurial spirit to Texas. Let’s hope that you join with another famous Texas transplant and freedom fighter, Davy Crockett, in saying, "You can all go to hell; I am going to Texas."
I noted your evident frustration this week with the high tax policies of New York that subject you to a punitive income tax rate anytime you step foot in the state to perform your show. I was delighted that you expressed an interest in making Texas the home of your alternate studio whenever hurricanes chase you out of Florida.
If you come to Texas to do business, you wouldn’t be alone. Texas has ranked in the top five states for the last five years when it comes to attracting new and expanded facilities, according to Site Selection magazine.
In fact, our success has come at the expense of your soon-to-be-former workplace. Last year, Texas surpassed New York as home to the most Fortune 500 companies. Texas now boasts 58 Fortune 500 headquarters, ahead of New York's 55 and California's 52.
Why is Texas forging ahead of the competition? Well, you hit the nail on the head when you mentioned that Texas doesn't have a state income tax. The people of Texas still have the same spirit of independence that attracted folks from all over the U.S. to fight at the Alamo so long ago. We don't believe that the government is the solution to all the world's problems and we'd just as soon leave people’s money in their own pockets where it will be the most productive.
A recent Texas Public Policy Foundation study showed how this attitude has made Texas a better place than California to do business. California's overall tax burden is $118.33 per $1,000 of personal income. Texas' is $99.49. California government spends $9,448.26 per capita. Texas spends $6,652.11.
And the kicker: California's personal income tax progressivity is $33.58. Texas'? Try zero.
I suspect the results would be similar in a head-to-head competition with New York. And the way things are going in Florida these days, it may not be long before you start thinking about moving your studio to Texas on a permanent basis.
It is true that Florida doesn’t have an income tax. But that may not last long. Florida's ill-considered decision to get into the homeowners' insurance business has the state facing bankruptcy if a major hurricane makes landfall there this summer. With a potential liability of $32 billion, Florida will have to turn to either its citizens or the federal government to make up the shortfall. I am fairly certain, Mr. Limbaugh, you will be on the short list of those solicited to contribute.
Businesses are noticing this too. Florida bounces in and out of Site Selection's top 10 ranking and is only 11th on the Fortune 500 list.
So if you come to Texas, where should you live? While Texas is a great place, we do have our flaws like everywhere else. So let me provide you with some local knowledge that may help in your decision about where to relocate.
I'd avoid downtown El Paso at all costs. That city is prepared to use eminent domain to reshape parts of the area into a livable, workable urban utopia. Never mind the forced dislocation of the thousands of people who already live and work there.
The Metroplex is a great area, but may be getting much more expensive pretty soon. Local business and government "leaders" are proposing hundreds of millions of dollars in new taxes to fund rail and other transportation projects. This is the same group, of course, that agreed to limit transportation options in the area through restrictions on air travel through Love Field.
Houston might be a good choice for you. Though its moniker of "free market city" may be something of an anachronism, it still doesn't have zoning, so you could build your new home and studio together in the location of your choice.
Wherever you wind up, Rush, we'd welcome your entrepreneurial spirit to Texas. Let’s hope that you join with another famous Texas transplant and freedom fighter, Davy Crockett, in saying, "You can all go to hell; I am going to Texas."
About ExcellentThought
ExcellentThought’s “raison d’etre” is to illuminate the truth about our world and our Creator to help us be "transformed by the renewing of our minds.” I'll be commenting on religion, economics, politics, culture, and life in general.
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