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A Proper Perspective of Industry Bailout

03.26.2012 by Matt Jabs //

I’m rereading Economics In One Lesson by Henry Hazlitt – an absolute must read.

I was compelled to share his explanation of industry bailouts to shed light on a topic that has stolen the wealth of the American people.

This is an excerpt from the book concerning the bailout of The X industry (any industry).

After showing how a bailout of The X industry can only be done at the expense of all other industries, Hazlitt goes on to say…

Similar results would follow any attempt to save the X industry by a direct subsidy out of the public till. This would be nothing more than a transfer of wealth or income to the X industry. The taxpayers would lose precisely as much as the people in the X industry gained. The great advantage of a subsidy, indeed, from the standpoint of the public, is that it makes this fact so clear. There is far less opportunity fro the intellectual obfuscation that accompanies arguments for tariffs, minimum-price fixing, or monopolistic exclusion.

It is obvious in the case of a subsidy that the taxpayers must lose precisely as much as the X industry gains. It should be equally clear that, as a consequence, other industries must lose what the X industry gains. They must pay part of the taxes that are used to support the X industry. And consumers, because they are taxed to support the X industry, will have that much less income left with which to buy other things. The result must be that other industries on the average must be smaller than otherwise in order that the X industry may be larger.

But the result of this subsidy is not merely that there has been a transfer of wealth or income, or that other industries have shrunk in the aggregate as much as the X industry has expanded. The result is also (and this is where the net loss comes in to the nation considered as a unit) that capital and labor are driven out of industries in which they are more efficiently employed to be diverted to an industry in which they are less efficiently employed. Less wealth is created. The average standard of living is lowered compared with what it would have been.

These results are virtually inherent, in fact, in the very arguments put forward to subsidize the X industry. The X industry is shrinking or dying by the contention of its friends. Why, it may be asked, should it be kept alive by artificial respiration? The idea that an expanding economy implies that all industries must be simultaneously expanding is a profound error. In order that new industries may grow fast enough it is necessary that some old industries should be allowed to shrink or die. They must do this in order to release the necessary capital and labor for the new industries. If we had tried to keep the horse-and-buggy trade artificially alive we should have slowed down the growth of the automobile industry and all the trades dependent on it. We should have lowered the production of wealth and retarded economic and scientific progress.

We do the same thing, however, when we try to prevent any industry from dying in order to protect the labor already trained or the capital already invested in it. Paradoxical as it may seem to some, it is just as necessary to the health of a dynamic economy that dying industries be allowed to die as that growing industries be allowed to grow. The first process is essential to the second. It is as foolish to try to preserve obsolescent industries as to try to preserve obsolescent methods of production: this is often, in fact, merely two ways of describing the same thing. Improved methods of production must constantly supplant obsolete methods, if both old needs and new wants are to be filled by better commodities and better means.

Hazlitt goes on to explain how nearly all forms of government interference in the free markets are harmful, and he does so with such ease and clarity.

The book is easy to understand and fun to read; which is saying a lot for an economics book.

It’s a must read for anyone looking to understand the desperate situation our economy is in after a century of increased bureaucratic interference. It should also be required reading for anyone looking to serve in public office.

Check if your local library has a copy or buy it on Amazon.

*******

Resources and further reading

“I strongly recommend that every American acquire some basic knowledge of economics, monetary policy, and the intersection of politics with the economy. No formal classroom is required; a desire to read and learn will suffice. There are countless important books to consider, but the following are an excellent starting point: The Law by Frédéric Bastiat; Economics in One Lesson by Henry Hazlitt; What has Government Done to our Money? by Murray Rothbard; The Road to Serfdom by Friedrich Hayek; and Economics for Real People by Gene Callahan.

If you simply read and comprehend these relatively short texts, you will know far more than most educated people about economics and government. You certainly will develop a far greater understanding of how supposedly benevolent government policies destroy prosperity. If you care about the future of this country, arm yourself with knowledge and fight back against economic ignorance. We disregard economics and history at our own peril.”

– Ron Paul, Representative from Texas

Categories // Reviews Tags // books, economics, government

Interview with Crown Financial CEO Chuck Bentley on The Root of Riches

07.11.2011 by Matt Jabs //

We have a special treat today folks, an interview with Crown Financial Ministries CEO Chuck Bentley about his insightful new book The Root of Riches.

The Root of Riches

“For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.”  1 Tim 6:10

In the interview Chuck shares how our Lord revealed to him what the root is and what a crucial part it plays in our lives.  Chuck’s life was change and now his personal testimony centers around this concept of keeping our hearts and motives pure in relation to money, possessions, and any other idol that gets in the way of us loving Christ fully.

The book focuses on matters of the heart rather than on financial behavior.  This sets it apart from much of the Personal Finance advice given these days, and helps us better understand what a proper relationship with riches should be.

Please enjoy the 12 minute video and head on over to the RootofRiches.org website where you can download a sample chapter of the book for free.  You can also purchase the book to help to support the awesome ministry Chuck and Crown Financial have been doing for decades.

(If you are unable to see the video in your email click here to view it on the web.)

Thanks again to Chuck for sharing his time and ministry with all of us here at Debt Free Adventure.

Categories // Spirituality Tags // books, interview, jesus

Sell Your Crap – Make Some Money

09.22.2010 by Matt Jabs //

Sell your Crap and Turn your Clutter into Cash

That is the battle cry of Mr. Adam Baker folks.  He lives this stuff… he breaths this stuff.  If anyone can help us trim the fat of possession, it is Adam.  He has done it and is still doing it – and now his new guide Sell Your Crap can help you do it too… so read on!

Some history on Adam Baker

After years of chasing the dream of consumerism, credit, and Stuff, Adam and his wife Courtney didn’t like the direction they were headed and decided it was time for a drastic change.  Unimpressed by the status quo, they carefully inventoried their possessions, their paths, and their purpose.  All of a sudden the things that were holding them back were plain as day… too much Stuff and too much debt.  Armed with this realization they committed to free themselves by living deliberate and passionate lives of purpose.

The Baker’s sold the things they no longer wanted, cut the expenses they could do without, and focused their energies on smashing their debt.  Before long their sacrifice and hard work begat opportunity and freedom of choice.

A passion to help others

If you know Baker at all, then you know he is an inspiration to many.  Born to teach and lead, that inspiration comes from a passion to see others succeed.  For more than a year now Adam has been chronicling his battle against Stuff and debt over at ManVsDebt.com, and just yesterday released an information gem he has been slaving passionately over for months.  Sell Your Crap – A guide to help others let go of what’s holding them back, and reclaim control of their time, energy, and money from their suffocating clutter.

So what’s in the guide?

There are two different packages to choose from to help better serve the need.

Sell Your Crap – “Barebones Edition” ($37)

  • The primary Sell Your Crap guide
  • The Definitive Step-by-Step Guide to Selling Your Crap an eBay
  • $100 Effectiveness Guarantee

————————————————————————————————————

Sell Your Crap – “Clutter Crusher Edition” ($47)

  • The primary Sell Your Crap guide
  • The Definitive Step-by-Step Guide to Selling Your Crap on eBay
  • The Definitive Step-by-Step Guide to Selling Your Crap an craigslist [added value]
  • The Definitive Step-by-Step Guide to Selling Your Crap an Amazon [added value]
  • Special access to all11 Bonus Interviews [added value]
  • $100 Effectiveness Guarantee
  • 30-Day email support [Limited Time bonus]

Review forthcoming

I received this guide yesterday, and although I have not yet read through every page – I love what I have studied so far.  Beyond that, I have yet to read a piece of Adam’s writing that was not useful and entertaining… that’s just the way he writes folks.

When I am done devouring the package in its entirety and have further implemented its wisdom into my life, I will write a complete  review.

Categories // Debt, Earn Money, Reviews Tags // books, ebook, enough, money, stuff

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Content on Debt Free Adventure is for entertainment purposes only. Rates & offers from advertisers shown on this website may change without notice: please visit referenced sites for current information. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. We respect your privacy. Privacy policy.

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