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“The nine most terrifying words in the English language are: I’m from the Government, and I’m here to help. ” — Ronald Reagan
Each time the government tries to improve the lives of Americans, the cost of goods and services generally goes up, and the cost of living rises with it, as well as the rate of inflation.
That much should be obvious to anyone — anyone, that is, other than politicians eager to make a name for themselves.
CBS News made that point pretty clear in two separate stories it ran Tuesday, although that wasn’t their intent.
In one, CBS News Moneywatch correspondent Aimee Picchi reported that “higher minimum wages will go into effect on January 1 across 22 states, giving an economic boost to almost 10 million workers.”
California is one of the 22.
That same day CBS News Los Angeles correspondent Danielle Radin reported that “Pizza Hut is set to lay off more than 1,200 delivery drivers in Los Angeles, Orange and Riverside counties in the coming year, ahead of a new state law that boosts the fast-food minimum wage by $4 to $20 per hour.”
She added that other fast food outlets planned to simply raise their prices rather than lay off employees. As a result McDonald’s “Happy Meals” are expected to cost $16.
Does anyone else remember the 15-cent McDonald’s hamburger?
Sixteen dollars sorta takes the “happy” out of the “Happy Meal.”
The same applies to taxes.
Raising the tax rate to improve the lot of Americans increases the cost of living, decreases income and wealth, and jump-starts the misery index.
But politicians will counter that the taxes are there to help people in need. Author, pundit and columnist John Stossel demonstrated that it’s all nonsense in a recent report.
Five years ago the city of Philadelphia began charging a 1.5-cent tax on each ounce of sweetened beverages sold, such as soda.
One 16-ounce Coke now costs Philadelphians 24 cents more than it does for out-of-town consumers.
The tax was specifically geared to finance pre-kindergarten education programs, things we used to call cowboys ’n’ Indians, cops ’n’ robbers, hide-and-go-seek, and spin the bottle.
Five years later how did it all work out?
“Less than half the money went to” education, Stossel reported. “Most was just dumped into the city’s general fund. As often happens Philadelphia’s soda tax took money, mostly from poor people, and gave it to politicians to spend on whatever they want.”
Sen. Mike Lee wasn’t surprised.
“Essentially every new tax proposal promises a variation of the same thing: ‘We’ll take something away from people who don’t need it to give it to others who need it more,’” the Utah Republican noted.
“Have you EVER seen it work out that way?” Lee asked. “Neither have I.”
That’s especially true at the federal level.
Two years ago President Biden signed the Infrastructure Investment and Jobs Act into law. Of its $1.2 trillion sticker price, $7.5 billion was earmarked to construct 500,000 public charging stations for electric vehicles.
As of Wednesday the total number of chargers actually built is one — one out of 500,000. At this rate it will take an additional 999,998 years to complete the project.
“Where did the money go?” asks Reason. “Seriously, where did it go?”
Ten percent for the big guy?
But that’s the problem with direct government intervention. Everything it touches that it shouldn’t — including energy, pre-k education, and workers’ income — falls apart.
And every issue it doesn’t address that it should — such as border security, police protection, and prosecuting criminals — also turns to garbage.
For some odd reason voters tend to elect an overwhelming percentage of lawyers into public office. People like Joe Biden, Kamala Harris, Barack Obama and Chuck Schumer.
Voters seem to forget that lawyers are often called shysters.
Maybe it’s time to change all that, and start electing economists, accountants, bookkeepers, and business owners.
Just a thought.
Michael Dorstewitz is a retired lawyer and has been a frequent contributor to Newsmax. He is also a former U.S. Merchant Marine officer and an enthusiastic Second Amendment supporter. Read Michael Dorstewitz’s Reports — More Here.