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Gov't can provide quality service while saving taxpayers money.


A plan for balancing the Kansas state budget

Kansas Policy Institute President Dave Trabert presents KPI's plan to balance the state's budget without service reductions or tax increases. Trabert spoke a...
Thu, 18 Dec 2014 17:34:52 +0000
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Another reason to watch Seinfeld reruns. Economics lessons taken directly from the "show about nothing." http://yadayadayadaecon.com/clip/67/


The Soup Nazi (The Economics of Seinfeld)
yadayadayadaecon.com
The Soup Nazi makes delicious soup—so good there's always a line outside his shop. He refuses service to Elaine, and by a stroke of luck she comes across his stash of soup recipes. She visits his shop and informs him that his soup monopoly is broken, while waving his recipes in his face. Also in thi…
Wed, 03 Dec 2014 16:15:10 +0000
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Happy Thanksgiving and a hearty huzzah for property rights. https://www.youtube.com/watch?v=66QdQErc8JQ


The Pilgrims and Property Rights: How our ancestors got fat & happy

The Pilgrims founded their colony at Plymouth Plantation in December 1620 and promptly started dying off in droves. As the colony's early governor, William B...
Tue, 25 Nov 2014 16:14:47 +0000
Last Refreshed 12/21/2014 4:00:55 PM
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1 Billion Detriments to Economic Freedom
Posted by Todd Davidson on Friday, December 7, 2012
“In the end, the money that towns across America gave General Motors did not matter.” That’s the conclusion of a New York Times investigation of local subsidies.  They chronicle the proliferation of over $80 billion in local subsidies to businesses of all shapes and sizes across the United States.  (You can search the database for yourself here.)

According to the NY Times investigation, “as [GM’s] financial problems grew, incentives became a big part of its math.”  Put another way - as GM’s ability to build cars people wanted to drive declined; they ramped up the ability to take money from taxpayers.

The Fraser Institute’s Economic Freedom of North America 2012 study argues these incentives diminish economic freedom because“[w]hen the government taxes one person in order to give money to another; it separates individuals from the full benefits of their labor and reduces the real returns of such activity.”  

It’s rather intuitive that when we reward lobbying instead of production we get less production, which is why the Fraser Institute’s study “shows a powerful, consistent, and robust relationship between economic freedom and growth.”

Unfortunately, state and local governments in Kansas have been doling out $1 billion to politically-favored businesses in recent years.  The deterioration of economic freedom over the years has resulted in Kansas dropping below five Canadian provinces in the Fraser Institute’s annual economic freedom rankings.

There is hope!  Now that our state has lowered taxes for all Kansans by $800 million it seems there is hope that leaders in Topeka are less interested in picking winners and losers. So everyone in the state will have a little bit more money in their pocket and a better chance to chase their dreams. In fact, if you eliminate the $1 billion in subsidies Kansas governments give every year, then tax relief is paid for and cronyism is turned back. That is commonly referred to as a “win-win proposition.”

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