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Posts Tagged ‘Thomas Sowell’
March 9th, 2016 at 10:41 am
Quotable: Thomas Sowell on Income Inequality Obsession
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From Thomas Sowell, in his latest commentary entitled “Random Thoughts”:

Here is a trick question:  What percentage of American households have incomes in the top 10 percent?  Answer:  51 percent of American households are in the top 10 percent at some point in the course of a lifetime – usually in their older years.  Those who want us to envy and resent the top 10 percent are urging half of us to envy and resent ourselves.”

December 31st, 2012 at 4:44 pm
Singer: How to Avoid the Next Fiscal Cliff

Want to avoid future “fiscal cliffs”?  Eric Singer, portfolio manager of the Congressional Effect Fund, argues for three reforms.  First, adopt Economist Thomas Sowell’s idea to pay Members of Congress at least $1 million a year, but make the pay subject to all the rules and tax rates experienced by every other taxpayer.  Second, pass Warren Buffett’s proposed constitutional amendment to ban from reelection any current member who presides over a budget deficit.  Third, require members to forfeit any pay increases when there is a budget deficit.  According to Singer, the result would be timely, serious budgets.

Why this approach?

The celebrity life with its fame and wealth requires constant performance, and full engagement in the task at hand. Even the Yankees benched Alex Rodriguez when he stopped doing his job. When lawmakers hide inside the fog of politics and can’t produce serious budgets, keep us safe or meaningfully prevent us from going over the cliff, it’s time to bench them.

After all, it’s not just a game, it’s our country and its future. Let’s see which new players are interested once we align Congress’ interests with those of America.

October 25th, 2012 at 6:32 pm
Income Inequality: It’s Easy to be Poor When We Don’t Count the Safety Net
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The American Enterprise Institute’s Kevin Hassett and Aparna Mathur have an important (and devastating) piece in today’s Wall Street Journal breaking down the misleading facets of the left’s argument that the U.S. is currently suffering through a crisis of economic inequality. Here’s a particularly eye-opening excerpt:

In the first place, studies that measure income inequality largely focus on pretax incomes while ignoring the transfer payments and spending from unemployment insurance, food stamps, Medicaid and other safety-net programs. Politicians who rest their demands for more redistribution on studies of income inequality but leave out the existing safety net are putting their thumb on the scale.

Second and more important, it is well known that people’s earnings in general rise over their working lifetime. And so, for example, a person who decides to invest more in education may experience a lengthy period of low income while studying, followed by significantly higher income later on. Snapshot measures of income inequality can be misleading.

Thomas Sowell frequently makes a point complimentary to Hassett and Mathur’s second observation above: that measuring income inequality over time tends to be deeply misleading because membership in any given income bracket is highly fluid, with people’s income often shifting dramatically over time. Thus, someone who’s in the bottom quintile of income in today’s measurements may be in the second quintile from the top in 15 years’ time. But we tend to analyze these groups as if their composition is static.

Hassett and Mathur’s first point, however, is the one that always bowls me over. If the point of a safety net is to remove people from the perils of indigence, yet the government refuses to factor those provisions into measurements of income, we end up with a perpetually imperiled underclass that only exists on paper. As Mark Twain said (supposedly quoting Disraeli), there are three kinds of lies: “Lies, damned lies, and statistics.”

August 7th, 2012 at 1:54 pm
Feds’ Reliance on Medicaid to Cover More Americans Blowing Up on the Launchpad
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Last week, I posted here about the fact that the growing crisis in the supply of American doctors is driven partially by structural deficiencies in Medicare. A new piece out today in the Wall Street Journal (subscription required) illuminates another key part of the puzzle: the growing tendency of doctors to refuse new patients under Medicaid — the vehicle that the Obama Administration intends to use to insure millions more Americans under Obamacare:

Some 31% of physicians in a sample of 4,326 said they wouldn’t accept Medicaid beneficiaries, economist Sandra Decker of the National Center for Health Statistics reported in an article in the journal Health Affairs published Monday. Most of the doctors cited the low reimbursement from Medicaid.

The health law passed by Democrats in March 2010 was supposed to expand coverage to around 16 million low-income people by signing them up for Medicaid. The Supreme Court decision in June effectively gave states the chance to opt out of the expansion. It isn’t yet clear how many will do so, although it’s likely to be a hot political issue. Either way, the coverage gained by low-income Americans could be less useful if they are unable to find a doctor to see them.

There are problems at the macro level too. Consider what Democratic(!) governors have been saying about the Medicaid expansion. Kentucky’s Steve Beshear has said “I have no idea how we’re going to pay for it.” California’s Jerry Brown has called it “devastating.” And Montana’s Brian Schweitzer — a man often touted by Democrats as a potential presidential candidate — has warned, ” I’m going to have to double my patient load and run the risk of bankrupting Montana.”

As Thomas Sowell is fond of saying, one of the hallmarks of liberalism is judging intent rather than outcomes when it comes to public policy. Thus do we get decades-long wars on poverty that do next to nothing for the impoverished, and stimulus programs of which it is always claimed that they would have worked if they only been a little bit bigger.

I’m not sure the abject failures of Obamacare will get a free pass based on good intent though. Theses sorts of consequences — patients unable to find doctors, states teetering on the verge of bankruptcy — are nearly impossible to ignore … no matter how desperately the White House will try.

June 1st, 2012 at 11:14 am
Thomas Sowell Blasts Holder for Rank Dishonesty

On a subject near and dear to my heart, protecting the country from massive vote fraud of the sort actively encouraged by the Obamites in and out of government, columnist Thomas Sowell lays it on the line:

When a white man with no identification can go to a voting site, impersonate a black man who lives in that district, and get his ballot offered to him, then it is far too easy to commit voter fraud.

Does not Attorney General Eric Holder understand that? Of course he understands it! The man is not stupid, despite his other failings.

Holder’s pooh-poohing of voter fraud dangers, and hyping the “threat” of denying minorities “access” to the voting booth, are completely consistent with his drive to (1) maximize the number of votes by black Democrats and (2) spread as much fear as possible among minorities that they are under siege, and that the Democrats are their only protection and salvation.

It is a political protection racket, with payoffs in votes.

Sowell also promotes the single most important book released in the past year:

The book is titled “Injustice: Exposing the Racial Agenda of the Obama Justice Department.” It names names, dates and places around the country where the Department of Justice stopped its own attorneys from pursuing cases of voter fraud and intimidation, when it was blacks who were accused of these crimes.

If Mr. Adams is lying, he has taken a huge risk in citing individuals by name and quoting them directly. Yet, despite the fact that most of those he accuses are lawyers, apparently no one has sued him. Moreover, Adams has also testified under oath before the U.S. Commission on Civil Rights, on the racial double standard at the Department of Justice, when it comes to voting rights.

Not a single word of Adams’ book has come close to having been refuted. Everybody should read it. It will make you fear for our republic — unless we stop the deliberate lawlessness of Eric Holder’s [In]Justice Department.

May 2nd, 2012 at 12:07 pm
The Reality of “Fair Pay” for Women
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Last weekend, liberal MSNBC talk show host Rachel Maddow and Republican political consultant Alex Castellanos got into a dustup on MSNBC’s “Meet the Press” over pay disparities between men and women in the workplace.

Maddow, working from the first principle of modern American liberalism, assumed that the absence of pure equality is de facto proof of systemic oppression. Here’s part of the exchange (note the utter failure of NBC host David Gregory to moderate impartially):

Since Castellanos didn’t get much a chance to get a word in, allow me to augment his remarks with the observations of Thomas Sowell, writing in his book, “Economic Facts and Fallacies”:

The empirical fact that most male-female economic differences are accounted for by factors other than employer discrimination does not mean that there have been no instances of discrimination, including egregious instances. But anecdotes about those egregious instances cannot explain the general pattern of male-female economic differences and their changes over time. Those changes are continuing. While in the period from 2000 to 2005 most women were still holding jobs making less than the weekly median wages, women were also 1.7 million out of 1.9 million new workers earning above the median wages.

Given the numerous factors that impact the incomes and employment of women differently from the way they impact the incomes and employment of men, it can hardly be surprising that there have been substantial income differences between the sexes. Nor can all these differences be assumed to be negative on net balance for women — that is, taking other factors into account besides income. For example, the wives of affluent and wealthy men tend to work less and therefore to earn less. But the wife of a rich man is not poor, no matter how low her income might be.

Had Ms. Maddow hoped to have a real conversation about the causation of pay disparities, there was a rich body of research available to her. She didn’t of course. That wouldn’t make for nearly as good television.

December 20th, 2011 at 8:49 pm
Thomas Sowell Endorses Newt Gingrich
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Newt Gingrich has had a rough time of it the past week or so. The press is all over him for his hard-line stance on the federal judiciary (including abolishing the Ninth Circuit Court of Appeals), his poll numbers are slipping, and some of the brightest lights in the conservative commentariat (including Charles Krauthammer, Mark Steyn, and George Will) have been taking him out to the rhetorical woodshed.

Newt’s due a little holiday cheer then, and it comes in the form of Thomas Sowell’s new column, which essentially provides an endorsement from one of conservatism’s leading intellectuals. Sowell begins with the premise I expressed in an October column. I wrote at the time:

It represents a healthy political idealism for Republicans to search for the second coming of Ronald Reagan. But it’s a bit tiresome when they become inconsolable at his absence. Reagan was of a class alone, not only in his combination of political skills and ideological bearings, but also in the way that his abilities uniquely met his moment in history.  Cursing the whole enterprise just because you can’t find his carbon copy is akin to writing off a Super Bowl win because you didn’t have a perfect season.

Sowell applies this principle to the Gingrich candidacy:

Do we wish we had another Ronald Reagan? We could certainly use one. But we have to play the hand we were dealt. And the Reagan card is not in the deck.

While the televised debates are what gave Newt Gingrich’s candidacy a big boost, concrete accomplishments when in office are the real test. Gingrich engineered the first Republican takeover of the House of Representatives in 40 years — followed by the first balanced budget in 40 years. The media called it “the Clinton surplus” but all spending bills start in the House of Representatives, and Gingrich was Speaker of the House.

Speaker Gingrich also produced some long overdue welfare reforms, despite howls from liberals that the poor would be devastated. But nobody makes that claim any more.

Did Gingrich ruffle some feathers when he was Speaker of the House? Yes, enough for it to cost him that position. But he also showed that he could produce results.

In a world where we can make our choices only among the alternatives actually available, the question is whether Newt Gingrich is better than Barack Obama — and better than Mitt Romney.

Sowell is certainly an outlier amongst the right-leaning intelligentsia. The question now is whether he’ll also be in the minority when it comes time to vote.

July 28th, 2011 at 10:39 pm
Thomas Sowell and Charles Krauthammer Agree … Pass the Boehner Plan
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At this hour — as recalcitrant Tea Partiers look bent on defeating the Boehner Plan in the House — two of the great minds of modern conservatism are issuing a sagacious clarion call: don’t make the perfect the enemy of the good.

In his syndicated column today, Thomas Sowell writes:

Now that the Republicans seem to have gotten the Democrats off their higher taxes kick, the question is whether a minority of the House Republicans will refuse to pass the Boehner legislation that could lead to a deal that will spare the country a major economic disruption and spare the Republicans from losing the 2012 elections by being blamed — rightly or wrongly — for the disruptions.

Is the Boehner legislation the best legislation possible? Of course not! You don’t get your heart’s desire when you control only one house of Congress and face a presidential veto.

The most basic fact of life is that we can make our choices only among the alternatives actually available. It is not idealism to ignore the limits of one’s power. Nor is it selling out one’s principles to recognize those limits at a given time and place, and get the best deal possible under those conditions.

That still leaves the option of working toward getting a better deal later, when the odds are more in your favor.

Meanwhile, in his syndicated piece, Charles Krauthammer opines:

The sausage-making may be unsightly, but the problem is not that Washington is broken, that ridiculous, ubiquitous cliché. The problem is that these two visions are in competition, and the definitive popular verdict has not yet been rendered.

We’re only at the midpoint. Obama won a great victory in 2008 that he took as a mandate to transform America toward European-style social democracy. The subsequent counterrevolution delivered to that project a staggering rebuke in November 2010. Under our incremental system, however, a rebuke delivered is not a mandate conferred. That awaits definitive resolution, the rubber match of November 2012.

I have every sympathy with the conservative counterrevolutionaries. Their containment of the Obama experiment has been remarkable. But reversal — rollback, in Cold War parlance — is simply not achievable until conservatives receive a mandate to govern from the White House.

Lincoln is reputed to have said: I hope to have God on my side, but I must have Kentucky. I don’t know whether conservatives have God on their side (I keep getting sent to His voicemail), but I do know that they don’t have Kentucky — they don’t have the Senate, they don’t have the White House. And under our constitutional system, you cannot govern from one house alone. Today’s resurgent conservatism, with its fidelity to constitutionalism, should be particularly attuned to this constraint, imposed as it is by a system of deliberately separated — and mutually limiting — powers.

At this moment of maximum import, these are words to live by. Sober, principled and deliberative. House Republicans should aspire to be the same.

August 24th, 2010 at 5:01 pm
Conservative Ammunition for the Health Care Debate
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Unless they’ve got a job at a Washington think tank, it’s difficult for conservatives (a tribe best known for working hard and supporting their family) to find the time to rebut every piece of misinformation coming from the left and their allies in the mainstream media. Thus, when you hear about the wonders of socialized medicine in Canada or Great Britain, you may instinctively know that the claims are inaccurate but not immediately be able to rebut them. This is why God created Thomas Sowell.

In his newest column, the Sage of Palo Alto takes aim at some of the most pernicious health care fallacies. Consider for instance, his rebuke to misinformation on American life expectancy:

… the media spin is that various countries with government-run medical systems have life expectancies that are as long as ours, or longer. That is very clever as media spin, if you don’t bother to stop and think about it.

Author Sally Pipes did bother to stop and think about it in her book, “The Truth About ObamaCare.” She points out that medical care is just one of the factors in life expectancy.

She cites a study by Professors Ohsfeldt and Schneider at the University of Iowa, which shows that, if you leave out people who are victims of homicide or who die in automobile accidents, Americans live longer than people in any other Western country.

Doctors do not prevent homicides or car crashes. In the things that doctors can affect, such as the survival rates of cancer patients, the United States leads the world.

Sowell’s ability to pierce liberal shibboleths through sheer empiricism is second to none. Read the whole column and then consider picking up a copy of his “Economic Facts and Fallacies” to further build your arsenal for your next encounter with a liberal friend.

August 17th, 2010 at 2:02 pm
The Tea Party Movement’s Cliff’s Notes
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Nearly 25 years ago, Thomas Sowell wrote “A Conflict of Visions: Ideological Origins of Political Struggles”, perhaps the single best volume on the fundamental philosophical differences between modern liberals and classical liberals (the progenitors of today’s libertarians and most conservatives). If your summer schedule doesn’t allow time for Sowell’s 350-page treatise (and it should), then you could do worse than turning to today’s Wall Street Journal.

Today’s edition of the Journal’s opinion section carries a piece entitled “A Tea Party Manifesto” by former House Majority Leader Dick Armey and FreedomWorks President and CEO Matt Kibbe (authors of the new book “Give us Liberty”). Contained therein is the best concise distillation of how Sowell’s conflict is playing out in Tea Party America:

The many branches of the tea party movement have created a virtual marketplace for new ideas, effective innovations and creative tactics. Best practices come from the ground up, around kitchen tables, from Facebook friends, at weekly book clubs, or on Twitter feeds. This is beautiful chaos—or, as the Nobel Prize-winning economist F.A. Hayek put it, “spontaneous order.”

Decentralization, not top-down hierarchy, is the best way to maximize the contributions of people and their personal knowledge. Let the leaders be the activists who have the best knowledge of local personalities and issues. In the real world, this is common sense. In Washington, D.C., this is considered radical.

The big-government crowd is drawn to the compulsory nature of centralized authority. They can’t imagine an undirected social order. Someone needs to be in charge—someone who knows better. Big government is audacious and conceited.

It’s a war of voluntarism and freedom on one side against coercion and statism on the other. The Tea Party crowd should prepare for battle. Armey and Kibbe will provide the ammunition (as will other Tea Party authors, like CFIF’s own Ashton Ellis). Come November, it will  be time to take to the field.