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John Mackey on the Morality of Business
Students For Liberty and the Atlas Network have just released a video interview with Whole Foods CEO John Mackey in conjunction with their new Morality of Capitalism project. Check out the video, and order your free books here: The Morality of Capitalism: What Your Professors Won't Tell You.
Absurdity of Government Intervention
McDonald's has recently announced major voluntary changes to one of its staple items: Happy Meals. On the flip side, Campbell's is putting salt back into its soups, based on customer feedback. Cato senior fellow Walter Olson explains the correlation between these two changes: "In a sense, both these stories illustrate a basic process of capitalism at work: Businesses are always experimenting with their offerings in hopes of staying current with consumer trends." Contributing to the health of their customers is a driving force in a business, and they have the incentive to make the right decision even without government intervention. Unfortunately, government meddlers continue to intervene in regulating food items based on so-called scientific results that are far less than definitive.
Uncle Sam and Big Business: Enemies or Allies?
Some politicians claim to be both "pro-business" and "pro-market" — as if they're the same thing. Yet today's largest corporations often stifle market competition and reap billions of dollars through a complex web of high taxes, strict regulations, and government handouts. Are government and business inherently at odds with each other? Cato On Campus hosted a lively debate on this subject on Friday, June 24th at the Cato Institute. Stay tuned for the archived version of the event, here.
The Morality of Profit
The morality of profit-making has long been a subject of extensive debate, with religious and moral philosophers falling on both sides of the issue. In the below video, Cato senior fellow Tom Palmer clearly provides a defense of profit as a moral act.
'Cash for Clunkers' Still Clunking
In a recent Cato post, senior fellow Walter Olson explains how a popular government program continues to damage the poor, and increasingly threatens the middle class, too. In the wake of the "cash for clunkers" program and record high gas prices, more Americans are burdened with financial woes regarding transportation (in fact, some used cars are worth more now than they were new). When it’s already hard to find a job, facing additional barriers to transportation imposed by ill-advised government programs is not a comforting thought. This leaves Olson saying, facetiously, “Nice going, Washington.”
Are Soccer Stars Inherently Libertarian?
What does soccer have to do with libertarian principles? Apparently, the world's most popular sport proves free market economic theories correct. Dan Mitchell, Senior Fellow at the Cato Institute, explains that a recent study by scholars (who usually write about un-libertarian social welfare issues) shows that international soccer stars are very sensitive to nation's tax policies. Since soccer stars can vote with their feet, watching their behavior as it relates to shifting policies provides a clear lesson: countries with low, flat tax rates attract better soccer players. The study even shows that lowering taxes can in some cases actually raise total tax revenue because of the influx of high earning players. The Laffer Curve scores again.
Against the Four Loko Ban
As featured in last month's Liberty Wire newsletter, Will Massey, a Hampden-Sydney College junior, created this video in response to the banning of the party-friendly beverage Four Loko. It lays out a persuasive argument on the basis of both liberty and logic.
Will Massey won the YouTube Contest of the month and will be a contestant to win a trip to Cato University this summer. Find out how you can do the same on our Contest page.
Deregulation Works: Mobile Phone Industry
Mobile phones have exploded with capabilities and features over the past few years, and quality of service has increased dramatically since those vogue bag phones of the 80s. But as Adam Thierer of the Mercatus Center notes, we've seen those increases in performance without an increase in monthly bills. In fact, the average price of mobile phone service has plateaued or even fallen since the 80s. Thierer explains that a "lighter regulatory touch" has led to lower bills and higher capital investment in the industry.
Story of Business: Competing for a Future
In part 3 of their "Stories of Business" series, the folks at Bankrupting America highlight Mike, a small business manufacturer. Mike describes the uncertainty and negative reality of government overreach into the economy, while also demonstrating the American spirit and entrepreneurism that has contributed so much to economic growth.
Consumerism Is Keynesianism
"One of the most pernicious and widespread economic fallacies is the belief that consumption is the key to a healthy economy," says economics professor Steven Horwitz, explaining that, in fact, "this belief is an inheritance of misguided Keynesian thinking." Horwitz goes on to demonstrate that the real way to drive an economy is to provide producers -- who develop products, provide jobs, and supply our needs -- with the proper system of confidence. "Wealth is created through acts of production that rearrange resources in ways people value more than alternative arrangements," not by encouraging people to spend all their (our?) money on what already exists. At its root, consumerism was fostered by Keynesian ideas. Therefore, those who equate capitalism with consumerism need some education.
Government Doesn't Create Jobs, Silly
Former Cato intern and current George Mason University economics student, Meg Patrick, gives a real quick lesson in why the general public (and the government) should respect private enterprise. She also explains what happens when the government prints money and taxes people. Check out GMU's Students For Liberty blog here!
Private Enterprise Does It Better
"Free enterprise does everything better," is the claim John Stossel makes in an article on privatization. The government is often seen as the default provider of all sorts of so-called public goods. Stossel uses the example of privatization in the transportation industry to show how entrepreneurs improve social well-being by taking risks that pay off. From toll roads, to maintenance, to accident prevention, private parties demonstrate that private entrepreneurs improve conditions and save money in the process. Government acts on the premise of making social order, while the free market relies on catering to the people. Stossel's examples demonstrate that "freedom and responsibility triumph." If we could get government out of the way, imagine the better services, lower taxes, and fewer intrusions in our lives.
What Drives the Economy?
Consumer spending, often heralded as the leading indicator of an economy's health, is nothing more than an indicator of real driver of the economy: investment. Long time investment advisor and former Foundation for Economic Education president, Mark Skousen explains how, when counted correctly, "consumption represents only about 30 percent of the economy, while business investment represents over 50 percent." Consumers are the ones who ultimately buy things businesses produce, but entrepreneurs rely on investment to discover new markets and to develop new technologies. In fact, Skousen remarks, we have personal savings and investment to thank for such things as personal computers, SUVs, the Internet, and the iPhone.