23. Struggle Is Real: Paths to Prosperity
In this newsletter, I discuss the U.S. and Texas economic situations, the need for spending restraint, how Congress is expanding welfare, and how COVID-19 restrictions may never end.
Hello Friend!
I hope you had a prosperous week! As always, please reach out to me through Twitter or elsewhere with your feedback, questions, or to catch-up. I appreciate the feedback and will improve this newsletter. I’ve received positive comments so far with some good constructive criticism, so please keep it coming!
This week has been a busy one for me and in Texas. The family and I had a nice time relaxing (Friday movie night with the boys was Beauty and the Beast), playing soccer (Bricen won his third game and his team remains undefeated), having dinner with friends, and serving at church. It’s always my plan to get more rest than I do on the weekends so that I’m prepared for the week, but with two little ones running around, that’s not how it usually happens which is perfectly fine because my time at home with them is less with session going on. More time with them and less sleep is a marginally beneficial combination given my preferences. I also keep my mind on another huge goal to Let People Prosper during legislative sessions so that my kids and future generations can experience the freedom and flourishing that comes with such an amazing place as Texas. As I like to say, the legislative session is my Super Bowl as it is the time to turn all of the hard work on research, building relationships, and strategy into policy that limits the size and scope of government so we can better meet our unique needs and thrive.
There were a lot of fireworks in hearings on election integrity, taxpayer-funded lobbying, homelessness, and regulatory reforms. I won’t go into these, but let’s just say that session has finally started to pick up in terms of bills being heard by committees and the political tension around Austin. The tension is a positive part of our Republic and helps to keep things moving along, though it can be excessive at times. Please keep your prayers going for me and for things going on at the Legislature as I’ll be testifying on at least four bills this week.
I ran across this nice depiction of the differences between socialism and capitalism. Unfortunately, the U.S. and even Texas have been plagued with too many extractive institutions like in socialism and we should remove those and replace them with inclusive institutions like in capitalism so we have better opportunities for success.
But that struggle is real, which is why it’s perfect timing for me to be reading my next book: The Struggle for a Better World by Peter Boettke. Pete is one of my favorite economists and people. I’ve learned much from him over the years and I have no doubt that I’ll learn more from this book.
Last week, TPPF had an excellent Livestream event where I moderated a panel with my colleagues Erin Wilcox, Andrew Brown, and Richard Johnson. We discussed facets of our new Opportunity Project that searches for unique ways to let people prosper by improving workforce development, removing barriers to entrepreneurship, and reforming social safety nets. Look for more on this endeavor soon, but in the meantime, please watch this:
Sit back and relax while we dive into more specifics on ways to let people prosper.
TEXAS ECONOMIC AND FISCAL SITUATION
New economic data were released for states by the U.S. Bureau of Economic Analysis and Bureau of Labor Statistics on Friday. These data showed that Texas certainly picked up economic steam at the end of 2020 but has struggled some in the first couple of months of 2021.
Good bills to put much of TPPF’s Conservative Texas Budget into statute in Texas are making their way through the Legislature, which I’ll be testifying for SB 1336 on Tuesday. Fortunately, other states are also using this productive approach with more likely joining soon. (And then on to the Responsible American Budget!)
Another good bill this past week was a bill that increases price transparency at hospitals. It’s unfortunate that a bill needs to do this in a government-dominated health care market, but prices convey too much information to not be available in something as important as health care services.
Other bills making their way through the Legislature aren’t so good, as I’ll be testifying on Monday against HB 1556 that would extend the Ch. 313 property tax abatements for school districts. It’s time to stop picking winners and losers with taxpayer dollars.
The plot continues to thicken regarding power outages in Texas and too many see it as another way to expand the role of government when the answer is to limit it or even eliminate it so that the free market can keep the lights on and people alive.
I’ll be testifying on a couple of bills this week before the Texas Legislature, so please check for updates on my Twitter page.
U.S. ECONOMIC AND FISCAL SITUATION
Here’s my take on how excessive government spending and bad monetary policy are destroying prosperity.
President Biden’s recently passed $1.9 trillion bill and the potential $3 trillion infrastructure plus tax hike bill are really about expanding the size and scope of government. We should find ways however possible to reject this poverty-ridden direction for our country. I’ll have a piece out on this soon.
The more I learn about the $1.9 trillion ARPA, the more I believe states should reject it.
And it may be weeks or months until we really know what’s going on with it from Treasury’s guidance, though states shouldn’t just sit by but rather should to about responsible fiscal policy and deal with D.C. later.
I’m for eliminating the federal state-and-local-tax (SALT) deduction. I’m also in favor of essentially ending the federal tax code and having only a final sales and use tax, similar to the FairTax.
TEXAS OPEN, NOW OPEN AMERICA
Summary of COVID-19 Situation in Texas: TX DSHS Data Here
As of Mar. 21, no Trauma Service Area (TSA) is on Texas Governor Greg Abbott’s watch list, with the statewide rate of hospitalizations at 4.7%, ranging from 9.0% in TSA R (Galveston) to 0.6% in TSA C (Wichita Falls) and TSA K (San Angelo).
On March 10, 2021, Governor Abbott implemented Executive Order GA-36, which ordered that on March 10 there are no longer restrictions on business operating capacity and no mask mandate. A county judge has the authority to restrict the business capacity of up to 50% only if the COVID-19 hospitalizations as a share of total hospital capacity in that TSA are above 15% for seven consecutive days, but cannot mandate wearing a mask.
EO GA-36 opening Texas is welcome news as the data have been showing substantial improvement in the COVID-19 situation, and freedom is the best way to deal with a pandemic while concentrating resources where they’re needed most without blanket restrictions that have hurt lives & livelihoods.
The next policy step is to promoting and passing pro-growth policies so employers can expand their business, workers can return to work, and families can regain prosperity experienced before the pandemic. TPPF’s Responsible Recovery Agenda would help achieve this through less spending, taxing, and regulating.
More on how too many local governments in Texas aren’t looking at the facts but are rather stuck on politics.
Good points here.
More good news.
Bring on herd immunity!
Unfortunately, some restrictions may stay for years because of the incorrect perception that people have of the COVID-19 situation due primarily to political and media bias.
Closing Thoughts
Let us focus on these Godly words this week on Palm Sunday:
And finally, here’s a quote from one of my favorite economists Ludwig von Mises:
Thanks again for reading! If you haven’t signed up for my newsletter yet, please subscribe here at no charge and share with others. Many blessings to you and yours.
Vance Ginn, Ph.D. | www.vanceginn.com | #LetPeopleProsper