Letter: "Unexpected consequences" of economic policies

Published: 4/8/2021 11:02:05 AM

Economics are not intuitive. An economy is a multivariate function. In other words, for most people changing one thing results in many other things changing unexpectedly. Shutting down projects for “climate change” results in job losses. Raising corporate income taxes will both cause businesses and jobs to leave the country and raise prices. Rising prices basically reduces real incomes, that is, your pay can’t buy as much. And the hits on Wall Street now hurt most retirements, 401(k)s and IRAs of the common folks.

Raising minimum wages will have some people being paid more while other jobs will be automated or replaced, and those jobs will tend to be the lower paid. Overly compensating out-of-work people gives little incentive to obtain employment. I am not saying what to do, but understand that just because a policy seems directed at someone else, it is very likely to bite you in the butt. And the politicians are not likely to warn you if they are smart enough to even know. Remember that how we want things to work doesn’t make them so. Real, honest cost-benefit analysis needs to be done and shown to the American citizens. So far, it doesn’t happen. For voters to have a true voice and a true choice, it must.

John Brandte

Concord




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