posted June 08, 2010 10:48 AM         

We see the results of Marxist Socialist economic policies around the world. They always fail and fall flat on their faces the minute other people's money runs out.

The biggest sin of America may well be that we propped these Socialist economies up and bailed them out over the years...and we're still doing so.

Now, we have our very own home grown Socialist Progressive economic dunces in charge of the US government in the person of Barack Hussein O'Bomber and the dunces he's appointed to high level government positions. Not to mention the Socialist Progressives in the Congress who never saw a spending bill they didn't slobber over as they've spent America into virtual bankruptcy.

Question:

Who is going to bail America and Americans out?

Greece?
Europe?
Russia?
China?

Don't count on China. Their economy is dependent on America continuing to buy their manufactured junk. Without America, China's economy goes down the tubes in about 6 months.

June 08, 2010
The left flunks Econ 101
Rick Moran

Which side is better able to understand and evaluate the choices facing America in these perilous times?

Daniel Klein in the Wall Street Journal:

Zogby researcher Zeljka Buturovic and I considered the 4,835 respondents' (all American adults) answers to eight survey questions about basic economics. We also asked the respondents about their political leanings: progressive/very liberal; liberal; moderate; conservative; very conservative; and libertarian.
Rather than focusing on whether respondents answered a question correctly, we instead looked at whether they answered incorrectly. A response was counted as incorrect only if it was flatly unenlightened.

How did the six ideological groups do overall? Here they are, best to worst, with an average number of incorrect responses from 0 to 8:

Best to worst.
Very conservative, 1.30
Libertarian, 1.38
Conservative, 1.67
Moderate, 3.67
Liberal, 4.69
Progressive/very liberal, 5.26

Americans in the first three categories do reasonably well. But the left has trouble squaring economic thinking with their political psychology, morals and aesthetics.

To be sure, none of the eight questions specifically challenge the political sensibilities of conservatives and libertarians. Still, not all of the eight questions are tied directly to left-wing concerns about inequality and redistribution. In particular, the questions about mandatory licensing, the standard of living, the definition of monopoly, and free trade do not specifically challenge leftist sensibilities.

We already know the left cares little for basic economics. If they did, people like Paul Krugman who wants trillions more in "stimulus" spending would be standing on a street corner with a sign saying "The End is Near" rather than appearing in august publications like the New York Times.

posted June 10, 2010 07:57 AM         

Economics professor Daniel Klein has apparently found a significant blind spot in the progressive intellect. Ignorance of basic economics seems to be a consistent trait in the ultra-liberal mind, a place where ideology trumps reason and logic.

In his June 8 Wall Street Journal article, "Are You Smarter Than a Fifth Grader", Klein explains:

Who is better informed about the policy choices facing the country-liberals, conservatives or libertarians? According to a Zogby International survey that I write about in the May issue of Econ Journal Watch, the answer is unequivocal: The left flunks Econ 101.

The Zogby survey asked 4,835 American adults to identify their political ideology as either libertarian, very conservative, conservative, moderate, liberal, or progressive/very liberal. They were then provided eight fairly basic economic assertions, and asked to respond to each statement.

Consider one of the economic propositions in the December 2008 poll: "Restrictions on housing development make housing less affordable." People were asked if they: 1) strongly agree; 2) somewhat agree; 3) somewhat disagree; 4) strongly disagree; 5) are not sure.

The correct response, of course, is to agree with the statement. After all, fewer available houses will naturally make them more expensive. This is simple supply and demand economics. In this survey question, the only incorrect responses counted were "somewhat disagree" and "strongly disagree". "Not sure" was not an incorrect answer for any of the questions.

The other questions were:

1) Mandatory licensing of professional services increases the prices of those services (unenlightened answer: disagree).

2) Overall, the standard of living is higher today than it was 30 years ago (unenlightened answer: disagree).

3) Rent control leads to housing shortages (unenlightened answer: disagree).

4) A company with the largest market share is a monopoly (unenlightened answer: agree).

5) Third World workers working for American companies overseas are being exploited (unenlightened answer: agree).

6) Free trade leads to unemployment (unenlightened answer: agree).

7) Minimum wage laws raise unemployment (unenlightened answer: disagree).

How did the six ideological groups do overall? Here they are, best to worst, with an average number of incorrect responses from 0 to 8:

Very conservative, 1.30
Libertarian, 1.38
Conservative, 1.67
Moderate, 3.67
Liberal, 4.69
Progressive/very liberal, 5.26

Based on party affiliation...
Democrats averaged 4.59 incorrect answers, Republicans averaged 1.61 incorrect, and Libertarians 1.26 incorrect.

As Mr. Kline states, "The pattern was not an anomaly." It is compelling evidence that the further you lean left, the more ignorant you are of basic economics.

This test appears to be a wonderful indicator of political ideology. Ask your friends and family these questions and see where they stand. They may learn something in the process.

While we're at it, I can think of a few more. Ask if they agree with the following statements:

"We can borrow our way out of debt."

"Higher taxes on the ‘wealthy' will revive the economy."

"Government control of health care will improve quality and reduce costs."

"Taxing carbon dioxide production will lead to energy independence."