As we approach Thanksgiving, you may have heard (or personally experienced) that the cost of Thanksgiving…
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Stat of the Day: Thanksgiving Costs Up a Record 20%, but Prescription Drug Prices Decline

As we approach Thanksgiving, you may have heard (or personally experienced) that the cost of Thanksgiving dinner this year is up a record 20%.

Meanwhile, guess what's actually declined in price, according to the federal government itself.  That would be prescription drug prices, which declined 0.1% last month alone.

Perhaps the Biden Administration should focus on helping everyday Americans afford Thanksgiving, rather than artificially imposing innovation-killing government price controls on lifesaving drugs, which are actually declining in price and nowhere near the inflation rate afflicting other consumer costs.…[more]

November 17, 2022 • 11:48 AM

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Crony Capitalism Looms Large Over Pennsylvania Special Election to Replace John Murtha Print
By Ashton Ellis
Wednesday, April 28 2010
The people of the 12th district have been disserved by decades of crony capitalism, and their economic lives are about to change no matter who wins the May 18th special election.

As with any contested race, there are plenty of differences between Republican Tim Burns and Democrat Mark Critz, the two men vying to replace the late Rep. John Murtha (D-PA), in the May 18th special election.  For all the boilerplate disagreements, though, one issue has the potential to define not just the candidates, but their national parties as well: job creation. 

Specifically, the source of job creation.  To Beltway insiders, John Murtha was known as a member of the congressional version of the “college of cardinals” – a reference to his perch as a powerful subcommittee chairman on the House Appropriations Committee.  When these subcommittee chairmen speak, their colleagues listen.  In Murtha’s case, so did defense contractors.  As chairman of the defense appropriations subcommittee, Murtha funneled $2 billion to his Southwestern Pennsylvania district, directing funds to companies that set up shop in his hometown. 

Some might call that pork barrel spending.  But Murtha’s fellow residents of Johnstown, PA, could be forgiven if they viewed the ex-Marine and Nancy Pelosi confidante as a job creator.  Technically, he was responsible for wooing Concurrent Technologies Corporation and the National Drug Intelligence Center to locate near his hometown.  As of 2007, the companies employed 800 and 300 local workers, respectively. 

So, maybe that’s the dog whistle Murtha’s former staff member, Mark Critz, is trying to blow into the ears of 12th district voters.  Critz is running television and YouTube ads touting his experience as Murtha’s Director of Economic Development, a position it would be hard to interpret as much more than coordinating no-bid contracts to coincide with corporate relocations. 

But Critz’s line of attack is sharpening against his Republican opponent, Tim Burns, a self-made businessman who might be vulnerable on the job creation issue.  After starting a medical technology company in his basement, Burns sold his business for millions only to watch many of the 400 jobs he created be transported overseas by the new owners.  With polling data showing the race to be a toss-up, Critz could make headway if he starts strongly implying that private sector jobs are too illusory when compared to the stability offered by taxpayer-funded, congressman-directed “economic development.” 

That would put Tim Burns in a tough situation.  No politician wants to inform the working public that job creation in a free market responds to the same price signals that communicate good and bad opportunities for other actors.  If the price of doing business in Pittsburgh is more expensive than operating overseas, businesses will relocate.  Ironically, it’s the same incentive structure that made John Murtha the number one job creator in Johnstown.  Except that in Murtha’s case, he was responsible for both the supply and the demand. 

Of course, the problem with allowing politicians to impose contracts the military doesn’t want in areas where they otherwise wouldn’t be performed is that it corrupts the appropriations process, and by extension, the practice of taxation.  While government-generated job growth seems like the gift that keeps on giving, the 12th district’s employment largesse comes at the expense of every other American taxpayer.  And since Murtha-style earmarks are mostly only possible when an enterprising congressman wields a chairman’s gavel, Johnstown residents shouldn’t be surprised when the next “King of Pork” gets rent-seeking defense contractors to relocate to another district.

Not that Burns needs to denigrate major local employers to make the point that what Murtha termed “job creation” and Critz suggests is “economic development” is any more stable than a small business grown in a free market.  Instead, Burns should consider turning the Democrats’ public-private partnership model on its head, arguing that jobs will multiply when companies see the federal government cleaning up its regulations to be clearer, simpler and less hostile to wealth creation. 

Conservatives like Tim Burns owe their voters the truth about the damaging effects of market distorting government interventions.  The people of the 12th district have been disserved by decades of crony capitalism, and their economic lives are about to change no matter who wins the May 18th special election.  Critz lacks the power to keep the contractors near Johnstown, and Burns is unlikely to become the avatar of John Murtha.  In the final push towards Election Day, conservatives would be wise to help Burns test out a theme that will have national appeal come November: congressmen don’t create jobs – entrepreneurs do.   

Quiz Question   
The first U.S. oil-producing well was founded in 1859 near which of the following towns?
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Notable Quote   
 
"Florida is divesting from investment giant BlackRock, becoming the latest state to pull assets from the firm over its environment, social, and governance (ESG) policies.The Sunshine State's chief financial officer, Jimmy Patronis, announced Thursday that the Florida Treasury would immediately begin removing roughly $2 billion in assets from BlackRock's control in a process that should be completed…[more]
 
 
—Breck Dumas, Fox Business
— Breck Dumas, Fox Business
 
Liberty Poll   

Congress is debating adding $45 billion more than requested to defense spending for 2023. Considering a fragile economy and geopolitical threats, do you support or oppose that increase?