As Senators Joe Manchin (D - West Virginia) and Kyrsten Sinema (D - Arizona) betray their "moderate"…
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Image of the Day: Prescription Drug Prices Aren't the Inflationary Problem

As Senators Joe Manchin (D - West Virginia) and Kyrsten Sinema (D - Arizona) betray their "moderate" charade and join Senate Majority Leader Chuck Schumer's (D - New York) latest tax-and-spend monstrosity, we've highlighted the preposterousness of the claim that imposing drug price controls will in any way address out-of-control inflation.  Price controls will kill innovation, but do nothing to reduce inflation, because prescription drug prices simply aren't the problem.  Once again, economist Steve Moore offers a handy illustration of that truth:

[caption id="" align="aligncenter" width="554"] Prescription Drug Costs Aren't the Problem[/caption]…[more]

August 10, 2022 • 09:13 AM

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Dems' Socialist Ideas Will Tank Economy Print
By Betsy McCaughey
Wednesday, October 10 2018
These changes will tank the economy and hurt the very workers the party claims to represent.

The most striking difference between Democrats and Republicans is not their views on #MeToo, affirmative action or the Supreme Court. It's how they view the economy. Republicans deplore socialism. But more than half of Democrats view socialism favorably, according to a recent Gallup poll.

The Democratic Party's left flank is turning the midterm elections into a referendum on capitalism. Sens. Bernie Sanders and Elizabeth Warren, New York congressional candidate Alexandria Ocasio-Cortez, and dozens of other federal and state candidates protest that our economic system is unjust and needs an overhaul.

They demand radical changes like giving workers control of 40 percent of corporate board seats and making boards serve vague goals of social justice instead of maximizing profits. They're also pushing for huge minimum wage hikes.

These changes will tank the economy and hurt the very workers the party claims to represent. The Democrats' extreme proposals are handing Republicans a powerful election counterattack. At a weekend rally in Kansas City, President Donald Trump slammed Democrats as "an angry left-wing mob" pushing for Venezuela-style socialism.

The left is revving up attacks on capitalism just as workers on the bottom rungs are beginning to benefit from the booming U.S. economy. According to last week's jobs report, unemployment has been pushed back to its lowest level since 1969. Wages in blue-collar industries, such as construction and maintenance, are rising faster than for white-collar workers. Pay for people without a college education jumped almost 6 percent since last year  triple the overall wage gain.

Last week, the stock market, up by 42 percent since Trump was elected, reached record highs. According to Gallop, more than half the nation (54 percent) owns stock or rides the market indirectly through their pensions and 401(k)s. We're a nation of shareholders more than a beleaguered proletariat.

Tell that to Sanders. He waged a blistering attack against Amazon and its subsidiary, Whole Foods, until last week, when the giant retailer buckled and announced a minimum $15 an hour wage for all workers.

Don't worry about Amazon. The giant retailer can pass its costs onto consumers, and is now in a rosy position to lure scarce seasonal workers for Christmas and outperform smaller competitors.

But Amazon employees lose. Amazon canceled performance bonuses and stock awards for hourly workers to offset the minimum wage hike. That replaces a culture where employees who work hard can share in the company's success with an adversarial situation pitting labor against owners. Which is just what Sanders and the left prefers.

The biggest losers are low-skilled job seekers priced out of the market. Large minimum wage hikes result in lost entry-level job opportunities, research shows. Minorities are hit hardest. Having a $10 an hour job and relying on Medicaid and food stamps to get by isn't a perfect life, but it's a start. And it's far better than having no job.

On the other hand, Trump is getting tough on low wages where they hurt American workers the most  in foreign countries. Trump's revised trade agreement with Mexico stipulates that more than 40 percent of auto manufacturing work must be done by workers who earn $16 an hour. Former U.S. presidents bought into the notion that outsourcing production to poor countries promotes global prosperity and equality. True, but low foreign wages undercut American workers. No more.

Meanwhile, Democratic presidential wannabe Elizabeth Warren has introduced the Accountable Capitalism Act, which would give workers control of 40 percent of corporate board seats and a veto over many corporate decisions. It would also compel boards to focus on murky "community and societal factors" instead of maximizing profitability. Investors won't put their money into an enterprise under those conditions. Warren's legislation would cause the stock market to plummet, taking down millions of people's retirements and wiping out the capital needed to create future growth and jobs. Shockingly, this woman wants to be president.

Democrats in favor of socialism need to take a hard look at the results in Venezuela and Cuba. Is that what they want for America?


Betsy McCaughey is a senior fellow at the London Center for Policy Research and a former lieutenant governor of New York State. 
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"Everyone should be deeply troubled by the recent report that the Army is on pace to miss its recruiting goal by dozens of thousands of troops and by the report that followed a few days later, alleging that the Border Patrol is running short of agents in Arizona and Texas. The border is so porous these days that even mayors of sanctuary cities are starting to complain about illegal immigration.So,…[more]
 
 
—Stephen Moore, Co-Founder of the Committee to Unleash Prosperity and a member of President Trump's Economic Recovery Task Force
— Stephen Moore, Co-Founder of the Committee to Unleash Prosperity and a member of President Trump's Economic Recovery Task Force
 
Liberty Poll   

Do you believe the tax increases and hundreds of billions of dollars in new spending in the so-called ‘Inflation Reduction Act of 2022’ - negotiated behind closed doors by Senators Manchin and Schumer - will increase or decrease inflation if passed?