Friday, January 13, 2017

The negative effect of welfare on children's outcomes

Unfortunately time does not permit me to add much commentary but you can go to the link below the graph for more detailed information. Essentially when tracking the progress of children born in 1993 the lines clearly demonstrate the negative influence of welfare on future outcomes:

(left click to enlarge)

Extracted from

NZ Herald coverage of report here

Thursday, January 12, 2017

Quote of the Day

Poverty in a society is overcome by productivity, and in no other way. There is no political alchemy which can transmute diminished production into increased consumption.

– John Chamberlain

(hat-tip FFF)

Wednesday, January 11, 2017

The Left's intransigence over tax cuts

Just home from an Australian sojourn  (during which I managed to read an entire book, a particularly dark Colleen McCullough book), here's an op-ed  from Gordon Campbell you might wish to comment on:

Ever since the world fell prey to the mullahs of the free market in the 1980s, no amount of real world evidence has managed dispel one key tenet of their economic faith. Namely, the idea that if you cut income taxes and taxes on small business, a wave of individual enterprise and entrepreneurial energy will thus be unleashed, profits will rise and – hey bingo! – the tax cuts will soon be paying for themselves via all that extra economic activity that this virtuous cycle will have set in train.
My off the cuff response:

Tax cuts are never significant because state-spending won't allow it.

Insignificant tax cuts will not stimulate entrepreneurship.

Typical governments are in the business of balancing budgets. REAL tax cuts are rare in the developed world.

What I do believe is that the Laffer Curve is real. You can only squeeze a lemon so much.

New blog

Mark Hubbard has started a new blog about art, films and books which looks promising. The art selection so far has introduced me to unfamiliar but attractive paintings. About to add to my blog roll.