Tag Archives: Free Market

Conservative legislators introduce new consumer-focused replacement for Obamacare

Obamacare premium growth, 2015-2016
Obamacare insurers are dropping out, which raises premiums higher, 2015-2016

I have your Thursday good news ready to go – from the Daily Signal.

This is how you reform health care:

Sen. Rand Paul, R-Ky., and Rep. Mark Sanford, R-S.C., introduced a bill to replace Obamacare on Wednesday, increasing the pressure on GOP leaders who continue to discuss moving the law’s replacement at the same time as its repeal.

The legislation already has the full support of the House Freedom Caucus, a group of roughly 40 of the lower chamber’s conservative members. Conservatives in both the House and Senate have said they want to see repeal efforts move faster, and the lawmakers are hoping that the legislation is a turning point in the repeal-and-replace debate.

“We’re excited about the fact that it will finally be able to address many of the concerns that we’re hearing, whether it’s at town halls or personal calls from our constituents about pre-existing conditions, about how to empower the consumer in terms of their health care choice, and ultimately drive down the price of health care,” House Freedom Caucus Chairman Mark Meadows, R-N.C., said Wednesday.

Called the Obamacare Replacement Act, the legislation shares the hallmarks of other GOP replacement plans, and Paul said it was a “consensus bill” that pulled aspects of other proposals together.

[…]Paul and Sanford’s bill focuses heavily on the expansion of health savings accounts (HSAs), which are medical savings accounts. Their legislation allows consumers to contribute an unlimited amount annually to HSAs. Currently, consumers can contribute a maximum of $3,400 per year.

The Obamacare Replacement Act also creates a $5,000 tax credit for those who contribute to a HSA, and prohibits consumers from using the money in their accounts to pay for elective abortions.

Under Paul and Sanford’s bill, consumers who don’t receive insurance through their employers can deduct the cost of premiums from their taxable incomes, which serves to equalize the tax treatment for individuals and employers.

Additionally, the legislation allows individuals and small businesses to band together through membership in an Association Health Plan to buy health insurance. Paul and Sanford said these pooling mechanisms will decrease costs for consumers.

The bill also allows insurance companies to sell policies across state lines and eliminates Obamacare’s essential health benefits mandate, which is a list of services insurance plans are required to cover without cost-sharing.

If you want to drive down the cost of health care, you let people get covered for only what they need – no abortions, sex changes, IVF, acupuncture, drug rehabilitation, breast enlargements, fertility treatments, etc. Allowing people to buy plans across state lines will mean that consumers in blue states like California and Massachusetts won’t be forced to buy in-state plans that cover all kinds of progressive garbage that they don’t even want.

Look how Obamacare is falling apart:

At the Future of Healthcare event put on by the Wall Street Journal, Aetna CEO Mark Bertolini said that Obamacare was only “getting worse” because there weren’t enough young, healthy enrollees to pay for the sick people covered by the Obamacare exchanges. Bertolini said it was due to “how poorly structured the funding mechanism and premium model is,” as premiums keep increasing with the death spiral, causing less people to sign up, and thus resulting in even higher premiums.

“I think you will see a lot more withdrawals this year of plans,” Bertolini said.

On Wednesday, Humana–which came to a mutual agreement with Aetna not to merge–announcedthat it was withdrawing from Obamacare altogether. In 2016, UnitedHealth also announced that they would be pulling out of the Obamacare exchanges, and Aetna itself said they would only stay in four Obamacare exchanges.

Bertolini stated at the event that the company has not decided if it will remain in these Obamacare exchanges.

“There isn’t any risk sharing going on in Nebraska,” Bertolini said, pointing to the fact that Aetna was the only insurer left in that exchange. “It will cost us a lot of money.”

Now is the time to replace it!

The problem with Obamacare is that it didn’t do anything to leverage the strengths of the free enterprise system. Instead of turning health care purchasing into competitive online e-commerce (i.e. – Amazon), they turned it into the DMV and the post office. What else would you expect from clowns who were born rich, and never held private sector jobs in their entire lives? You don’t expect the people who run the single-payer VA health system that is killing people on waiting lists to do a good job of reforming health care, do you? Let the free market solve it. Choice and competition means lower prices.

Is health care a right or a commodity?

I have a key that will unlock a puzzling mystery
I have a key that will unlock a puzzling mystery

Here is a splendid post about the economics of health care from Ben Shapiro, writing for National Review.

He responds to a view held by those on the radical left: people need health care, therefore health care is a right.

Excerpt:

The idea here seems to be that unless you declare medical care a right rather than a commodity, you are soulless — that as Marx might put it, necessity, rather than autonomy, creates rights.

This is foolhardy, both morally and practically.

Morally, you have no right to demand medical care of me. I may recognize your necessity and offer charity; my friends and I may choose to band together and fund your medical care. But your necessity does not change the basic math: Medical care is a service and a good provided by a third party. No matter how much I need bread, I do not have a right to steal your wallet or hold up the local bakery to obtain it. Theft may end up being my least immoral choice under the circumstances, but that does not make it a moral choice, or suggest that I have not violated your rights in pursuing my own needs.

But the left believes that declaring necessities rights somehow overcomes the individual rights of others. If you are sick, you now have the right to demand that my wife, who is a doctor, care for you. Is there any limit to this right? Do you have the right to demand that the medical system provide life-saving care forever, to the tune of millions of dollars of other people’s taxpayer dollars or services? How, exactly, can there be such a right without the government’s rationing care, using compulsion to force individuals to provide it, and confiscating mass sums of wealth to pay for it?

The answer: There can’t be. Rights that derive from individual need inevitably violate individual autonomy.

But there are ways to make a commodity less expensive, and of higher quality. It happens all the times in free markets, where innovators are rewarded with profits – just think of the people who sell smartphones.

More:

To make a commodity cheaper and better, two elements are necessary: profit incentive and freedom of labor. The government destroys both of these elements in the health-care industry. It decides medical reimbursement rates for millions of Americans, particularly poor Americans; this, in turn, creates an incentive for doctors not to take government-sponsored health insurance. It regulates how doctors deal with patients, the sorts of training doctors must undergo, and the sorts of insurance they must maintain; all of this convinces fewer Americans to become doctors. Undersupply of doctors generally and of doctors who will accept insurance specifically, along with overdemand stimulated by government-driven health-insurance coverage, leads to mass shortages. The result is an overreliance on emergency care, costs for which are distributed among government, hospitals, and insurance payers.

So, what’s the solution for poor people? Not to declare medical care a “right,” and certainly not to dismiss reliance on the market as perverse cruelty. Markets are the solution in medical care, just as they are in virtually every other area.

Treating medical care as a commodity means temporary shortages, and it means that some people will not get everything we would wish them to have. But that’s also true of government-sponsored medical care, as the most honest advocates will admit. And whereas government-sponsored medical care requires a top-down approach that violates individual liberties, generates overdemand, and quashes supply, markets prize individual liberties, reduce demand (you generally demand less of what you must pay for), and heighten supply through profit incentive.

It’s always a good idea to look at how health care is working in countries that do have single payer health care systems. Canada has a single-payer system. How is that working out?

The Fraser Institute issued a recent report on health care in Canada:

Waiting for treatment has become a defining characteristic of Canadian health care. In order to document the lengthy queues for visits to specialists and for diagnostic and surgical procedures in the country, the Fraser Institute has—for over two decades—surveyed specialist physicians across 12 specialties and 10 provinces.

This edition of Waiting Your Turn indicates that, overall, waiting times for medically necessary treatment have in-creased since last year. Specialist physicians surveyed report a median waiting time of 20.0 weeks between referral from a general practitioner and receipt of treatment—longer than the wait of 18.3 weeks reported in 2015. This year’s wait time—the longest ever recorded in this survey’s history—is 115% longer than in 1993, when it was just 9.3 weeks.

[…]It is estimated that, across the 10 provinces, the total number of procedures for which people are waiting in 2016 is 973,505. This means that, assuming that each person waits for only one procedure, 2.7% of Canadians are waiting for treatment in 2016.

[…]Patients also experience significant waiting times for various diagnostic technologies across the provinces. This year, Canadians could expect to wait 3.7 weeks for a computed tomography (CT) scan, 11.1 weeks for a magnetic resonance imaging (MRI) scan, and 4.0 weeks for an ultrasound.

Research has repeatedly indicated that wait times for medically necessary treatment are not benign inconveniences. Wait times can, and do, have serious consequences such as increased pain, suffering, and mental anguish. In certain instances, they can also result in poorer medical outcomes—transforming potentially reversible illnesses or injuries into chronic, irreversible conditions, or even permanent disabilities. In many instances, patients may also have to forgo their wages while they wait for treatment, resulting in an economic cost to the individuals themselves and the economy in general.

The typical cost of the single-payer health care system to a Canadian family is nearly $12,000.

Socialist Canada has been doing a lot of taxing and spending to try to fix this problem, but the problem is getting worse. And no wonder: when the government controls health care, it becomes a tool for buying votes. Abortions and sex changes are “health care” in Canada. Breast enlargements and IVF are “health care” in the UK. Of course, good luck getting treatment when you are in your old age and will not be voting much in the future : both Canada and the UK have euthanasia programs to get rid of elderly people who are no longer as useful to politicians as young people who still have lots of voting ahead of them.

Thomas Sowell, America’s most influential public intellectual, announces retirement

Economist Thomas Sowell
Economist Thomas Sowell changed the minds of a generation of young people, including me

I had written enough posts to carry me through the Christmas and New Year’s vacation. But then something happened that caused me to come off vacation and postpone today’s scheduled post in order to write about the retirement of a man who influenced my worldview as much as anyone has. And I am not exaggerating when I say that this man contributed the most of anyone to the economic views of libertarians and conservatives. (Although his views on social and foreign policy issues were largely conservative, as well). I never disagreed with his views, or maybe it’s just that he always convinced me to change to agree with him. He’s that kind of man – if you liked having a friend who knew how to think through just about anything, then this was the guy for you.

But now he has announced his retirement. Here is his farewell column. (H/T Mary)

Excerpt:

After enjoying a quarter of a century of writing this column for Creators Syndicate, I have decided to stop. Age 86 is well past the usual retirement age, so the question is not why I am quitting, but why I kept at it so long.

[…]Looking back over the years, as old-timers are apt to do, I see huge changes, both for the better and for the worse.

In material things, there has been almost unbelievable progress. Most Americans did not have refrigerators back in 1930, when I was born. Television was little more than an experiment, and such things as air-conditioning or air travel were only for the very rich.

My own family did not have electricity or hot running water, in my early childhood, which was not unusual for blacks in the South in those days.

It is hard to convey to today’s generation the fear that the paralyzing disease of polio inspired, until vaccines put an abrupt end to its long reign of terror in the 1950s.

[…]Most people living in officially defined poverty in the 21st century have things like cable television, microwave ovens and air-conditioning. Most Americans did not have such things, as late as the 1980s. People whom the intelligentsia continue to call the “have-nots” today have things that the “haves” did not have, just a generation ago.

[…]With all the advances of blacks over the years, nothing so brought home to me the social degeneration in black ghettoes like a visit to a Harlem high school some years ago.

When I looked out the window at the park across the street, I mentioned that, as a child, I used to walk my dog in that park. Looks of horror came over the students’ faces, at the thought of a kid going into the hell hole which that park had become in their time.

When I have mentioned sleeping out on a fire escape in Harlem during hot summer nights, before most people could afford air-conditioning, young people have looked at me like I was a man from Mars. But blacks and whites alike had been sleeping out on fire escapes in New York since the 19th century. They did not have to contend with gunshots flying around during the night.

We cannot return to the past, even if we wanted to, but let us hope that we can learn something from the past to make for a better present and future.

It’s a tragedy that Thomas Sowell is not more recognized in our culture. Thomas Sowell makes public appearances, but mostly to conservatives. Although I am not a Rush Limbaugh listener, I once heard Thomas Sowell sitting in for Rush, and he had another conservative black economist Walter Williams on with him. Rank-and-file conservatives bought Sowell’s books by the bushel and we went through them one after another. The first girl I ever dated went though 6 Thomas Sowell books in 2 months, then enrolled in university to study economics. That’s the kind of effect that Thomas Sowell had on people – you couldn’t read just one of his books. You read as many as you get from the public library, then you read all could afford to buy. Then you asked for them on birthdays and Christmases from your dumbfounded liberal relatives. It was fresh air – you read Thomas Sowell to get the lies and dishonesty of the progressive culture out of your mind.

But most people on the left have never heard of Thomas Sowell. Despite Sowell’s splendid scholarly credentials and academic publications, the leftist gatekeepers don’t want their liberal followers to know that the real intellect behind economic conservative is a black economist. Instead of fighting against Sowell’s ideas, their response has been to ignore him.

Let’s take a quick look at some of the institutions who are recognizing the great man’s retirement.

The American Enterprise Institute called it “the end of an era”:

In my opinion, there is no economist alive today who has done more to eloquently, articulately, and persuasively advance the principles of economic freedom, limited government, individual liberty, and a free society than Thomas Sowell. In terms of both his quantity of work (at least 40 books and several thousand newspaper columns) and the consistently excellent and crystal-clear quality of his writing, I don’t think any living free-market economist even comes close to matching Sowell’s prolific record of writing about economics. And I don’t think there is any writer today, economist or non-economist, who can match Thomas Sowell’s “idea density” and his ability to consistently pack so much profound economic wisdom into a single sentence and a single paragraph.

Even at 86 years old, Thomas Sowell has remained intellectually active with his syndicated newspaper columns and the publication last year of his 40th book — Wealth, Poverty and Politics: An International Perspective — which was, amazingly, his 13th book in the last decade! To honor Thomas Sowell’s well-deserved retirement from writing his invaluable weekly column for the last quarter century, I present below some of my favorite quotations from Dr. Thomas Sowell (most were featured on a CD post in June on Sowell’s birthday) and a bonus video of the great economist:

I had to choose just a few of these, so here goes:

6. Politicians as Santa Claus. The big question that seldom— if ever— gets asked in the mainstream media is whether these are a net increase in jobs. Since the only resources that the government has are the resources it takes from the private sector, using those resources to create jobs means reducing the resources available to create jobs in the private sector.

So long as most people do not look beyond superficial appearances, politicians can get away with playing Santa Claus on all sorts of issues, while leaving havoc in their wake— such as growing unemployment, despite all the jobs being “created.”

If you show or read the quote below to anyone who is a serious conservative, they will immediately tell you that the author is Thomas Sowell, or someone summarizing Sowell’s work:

10. The Anointed Ones. In their haste to be wiser and nobler than others, the anointed have misconceived two basic issues. They seem to assume: 1) that they have more knowledge than the average member of the benighted, and 2) that this is the relevant comparison. The real comparison, however, is not between the knowledge possessed by the average member of the educated elite versus the average member of the general public, but rather the total direct knowledge brought to bear through social processes (the competition of the marketplace, social sorting, etc.), involving millions of people, versus the secondhand knowledge of generalities possessed by a smaller elite group.

The vision of the anointed is one in which ills as poverty, irresponsible sex, and crime derive primarily from ‘society,’ rather than from individual choices and behavior. To believe in personal responsibility would be to destroy the whole special role of the anointed, whose vision casts them in the role of rescuers of people treated unfairly by ‘society.’

Celebrating entrepreneurs:

12. Helping the Poor. It was Thomas Edison who brought us electricity, not the Sierra Club. It was the Wright brothers who got us off the ground, not the Federal Aviation Administration. It was Henry Ford who ended the isolation of millions of Americans by making the automobile affordable, not Ralph Nader.

Those who have helped the poor the most have not been those who have gone around loudly expressing “compassion” for the poor, but those who found ways to make industry more productive and distribution more efficient, so that the poor of today can afford things that the affluent of yesterday could only dream about.

Distinctions like this is what gave so many ordinary people the desire to read more and more of Thomas Sowell to clean popular culture socialist pablum out of their minds:

13. Income Mobility. Only by focusing on the income brackets, instead of the actual people moving between those brackets, have the intelligentsia been able to verbally create a “problem” for which a “solution” is necessary. They have created a powerful vision of “classes” with “disparities” and “inequities” in income, caused by “barriers” created by “society.” But the routine rise of millions of people out of the lowest quintile over time makes a mockery of the “barriers” assumed by many, if not most, of the intelligentsia.

Everything becomes clear – as spiderwebs – with a little Thomas Sowell. And for evidence, he used the best studies from all over the world, from across all different times and places, so that you always had the evidence at your fingertips. His books are filled with footnotes for further study.

The Weekly Standard

The Weekly Standard has an article entitled “Thomas Sowell, America’s Greatest Public Intellectual, Says ‘Farewell'” by Fred Barnes.

Excerpt:

Thomas Sowell is giving up his column. I can think of lots of columnists whose writing we wouldn’t miss. Sowell isn’t one of them. Every column he wrote in a quarter-century career as a columnist was eminently worth reading. I say this having read nearly every one of them.

What made his columns so good? He wrote with sparkling clarity. He relied on facts. He didn’t showcase his scholarship, but his range of subjects was impressive. He understood his readers and didn’t write down to them. He was prolific. He wrote two columns a week and, when he had more to say, sometimes three or four. Best of all, he analyzed things from conservative—and somewhat libertarian—perspective better than anyone else and in fewer words.

If you wanted more words, you could always look to his books, and that’s what my friends and I did.

National Review

National Review has an article entitled “Thank You, Professor Sowell” by Michelle Malkin. They also re-posted an article from 2011, entitled “A Lion in High Summer”.

One quote from Michelle Malkin:

I first read Thomas Sowell in college — no thanks to my college.

At the majority of America’s institutions of “higher learning,” reading Thomas Sowell was a subversive act in the early 1990s when I was a student. It remains so today. Why? Because the prolific libertarian economist’s vast body of work is a clarion rejection of all that the liberal intelligentsia hold dear.

[…]The former leftist playwright David Mamet, in his 2008 manifesto “Why I Am No Longer a Brain-Dead Liberal,” cited his exposure to Sowell, whom he dubbed “our greatest contemporary philosopher,” as a critical factor in his conversion. Whether tackling the “bait and switch media,” the “organized noisemakers,” or the lawless enablers of “social disintegration,” Thomas Sowell’s dozens of academic books and thousands of newspaper columns have sparked generations of his readers across the political spectrum to think independently and challenge imposed visions.

Asked once how he would like to be remembered, Sowell responded: “Oh, heavens, I’m not sure I want to be particularly remembered. I would like the ideas that I’ve put out there to be remembered.” Mission accomplished. Though it has been decades since he taught in a formal classroom, his students are legion.

This is where today’s conservatives came from – we read the Thomas Sowell. Many conservatives (e.g. – Michelle and myself) came from non-white families and cultures, just like Sowell. We were convinced to give up on the socialism popular in our families and cultures by his writing. He convinced himself, then he convinced us. In contrast, there isn’t much convincing on the secular left – most people just accept secular leftism in order to be liked – it’s not cognitive, it’s just virtue signaling. Conservatives are convinced by Thomas Sowell’s writing, whereas liberals blindly follow Hollywood celebrities. It’s just tribalism.

Ben Shapiro

Jewish conservative Ben Shapiro wrote an article in The Daily Wire entitled “Farewell to Thomas Sowell, Dean of Conservative Columnists”.

One excerpt:

In what we can only hope is the final heartbreak of 2016, Senior Fellow at the Hoover Institution Thomas Sowell announced his retirement from his syndicated column. Sowell isn’t just one of the great thinkers of our time. He’s a genuine voice of decency and truth in a time when screaming and hysterics gain headlines. His voice will be missed every week.

[…]For years, I’ve named Sowell as the man I’d most love to see as president. That doesn’t end just because his column has.

At the end, he lists his favorite Thomas Sowell books.

That’s to show you how real conservatives like Ben Shapiro who are having a real influence (his podcast is the #1 conservative podcast, it has exploded in popularity) were influenced by Thomas Sowell. Shapiro always says that people new to conservatism should always start with a study of basic economics, e.g. – books by Thomas Sowell. No one in my own family started out conservative. I read Thomas Sowell, then they read Thomas Sowell. That’s how we became conservatives.

Wintery Knight

I’m busy cleaning stuff out of my parents basement this holiday season. This trip, I am taking some of my books back with me. I made the choices about what to take before I saw Sowell’s retirement. Without any sentiment at all, I chose:

  • Basic Economics, 4th edition
  • Applied Economics, 2nd edition
  • Economics Facts and Fallacies, 2nd edition
  • Intellectuals and Society, 2nd edition
  • The Housing Boom and Bust, 2nd edition
  • Inside American Education
  • A Personal Odyssey
  • A Conflict of Visions
  • The Vision of the Anointed (best book for beginners)
  • Barbarians Inside the Gates
  • Black Rednecks and White Liberals

I am leaving my second edition of Basic Economics for my Dad. I understand that a new 5th edition is now out, and I might get that. I have many, many more on audio books – I buy all the audio books editions that I can get, and listen to them over and over. This is where my worldview on economic issues (not to mention marriage, gun rights, education, war, etc.) came from.

Donald Trump’s plan to introduce tariffs is just a tax on consumer goods

I have a key that will unlock a puzzling mystery
I have a key that will unlock a puzzling mystery

What are the consequences of adopting tariffs for all of the people who are affected? What happens next, after stage one?

Here’s a lesson in basic economics from Joe Carter, writing for the Acton Institute.

He writes:

Both Sanders and Trump propose increasing tariffs on goods imported from other countries — and increase them significantly.* This isn’t that surprising for Sanders, a socialist who, on the issue of economics, is one of the most ill-informed candidates in modern history. But Trump should (and probably does) understand the detrimental impact tariffs have on the poor. And yet he has proposed an economy-crippling, poverty-increasing tariff.

In 2012, Trump proposed a tariff on China of 25 percent. In 2016 he bumped it up to 45 percent. (He later tried to lie and say he never proposed the 45 percent increase, but there is audio of him making the proposal.) A tariff is simply a tax on imports or exports, so Trump is proposing to raise taxes on imported goods by 25 to 45 percent. (To keep this point in mind, I’ll hereafter refer to tariffs as “taxes.”)

You might be thinking, “ So what? That’s a tax the Chinese have to pay.” But that’s not the way tariffs works. China doesn’t pay the tax — you do. If a tariff on Chinese goods is increased by 25 to 45 percent then you pay 25 to 45 percent more for those goods.

Here’s a way to think about it. Imagine there are two hamburger stands in town. One is owned by the mayor’s wife, Veronica, and one is owned by a woman who lives in the next town over, Betty.

Of the two, Betty makes the tastier burger. She is also able to charge $1 a burger since she is able to buy her supplies in her own hometown for much cheaper. Veronica’s burgers aren’t quite as good and cost more to make. She has to charge $1.30 per burger.

The mayor decides to implement a new tax of 45 percent on producers (like Betty) who don’t live in the city limits. Since Betty’s profit margin is already low, she has to pass the bulk of the 45-cent tax on to her customers. Instead of $1 she now has to charge $1.35.

So who is better off in this scenario? The only winner is Veronica. Since her burgers are now cheaper, she is likely to sell more. And who is worse off? The customers who now have to pay 30 to 35 cents more for every burger. That is money they could have used to buy other products or services. Now they have to spend additional money on this new tax.

The same principle applies to taxes on goods and services imported from other countries. Customers simply have to pay more for goods and services they used to get much cheaper.

To understand how Trump’s tax increase would affect consumers, take a trip to Target or Wal-Mart and add 45 percent to almost all the prices. That’s money that comes directly out of your pocket into the hands of the federal government — all to punish you for buying goods that are cheaper to make in China.

Harvard University economist Greg Mankiw explains what most professional economists agree on. The economic benefit of free trade tied for first place, with 93% agreement:

The recent debate over the stimulus bill has lead some observers to think that economists are hopelessly divided on issues of public policy. That is true regarding business cycle theory and, specifically, the virtues or defects of Keynesian economics. But it is not true more broadly.

My favorite textbook covers business cycle theory toward the end of the book (the last four chapters) precisely because that theory is controversial. I believe it is better to introduce students to economics with topics about which there is more of a professional consensus. In chapter two of the book, I include a table of propositions to which most economists subscribe, based on various polls of the profession. Here is the list, together with the percentage of economists who agree:

  1. A ceiling on rents reduces the quantity and quality of housing available. (93%)

  2. Tariffs and import quotas usually reduce general economic welfare. (93%)

He is the author of his “favorite textbook”, which is published by Harvard University Press.

This is not controversial among professional and academic economists. Economists across the ideological spectrum understand that free trade lowers the prices of consumer goods, and allows individuals, families and businesses to get more quality for their dollars. We can do better than Donald Trump and his naive, populist economic pablum.

Related posts

Does the free market work to reduce poverty?

Economist Walter Williams
Economist Walter Williams

From Investors Business Daily.

Excerpt:

There has never been a purely free market economic system, just as there has never been a purely communist system. However, we can rank economies and see whether ones that are closer to the free market end of the economic spectrum are better than ones that are closer to the communist end.

Let’s try it.

First, list countries according to whether they are closer to the free market or the communist end of the economic spectrum. Then rank countries according to per capita gross domestic product. Finally, rank countries according to Freedom House’s “Freedom in the World” report.

People who live in countries closer to the free market end of the economic spectrum have far greater income than people who live in countries toward the communist end — and enjoy far greater human rights protection.

According to the 2012 “Economic Freedom of the World” report by James Gwartney, Robert Lawson and Joshua Hall, nations ranking in the top quartile with regard to economic freedom had average per capita GDP of $37,691 in 2010 compared with $5,188 for those in the bottom quartile.

In the freest nations, the average income of the poorest 10% of their populations was $11,382. In the least free nations, it was $1,209.

Remarkably, the average income of the poorest 10% in the economically freer nations is more than twice the average of those in the least free nations.

Free market benefits aren’t only measured in dollars and cents.

Life expectancy is 79.5 years in the freest nations and 61.6 years in the least free.

Political and civil liberties are considerably greater in the economically free nations than in unfree nations.

Leftists might argue that the free market doesn’t help the poor. That argument can’t even pass the smell test.

Imagine that you are an unborn spirit and God condemned you to a life of poverty but gave you a choice of the country in which to be poor. Which country would you choose?

To help with your choice, here are facts provided by Robert Rector and Rachel Sheffield in their report “Understanding Poverty in the United States: Surprising Facts About America’s Poor.”

  • Eighty percent of American poor households have air conditioning.
  • Nearly three-fourths have a car or truck, and 31% have two or more.
  • Almost two-thirds have cable or satellite TV.
  • Half have one or more computers.
  • Forty-two percent own their homes.
  • The average poor American has more living space than the typical non-poor person in Sweden, France and the U.K. Ninety-six percent of poor parents stated that their children were never hungry; in other words, they could afford food.

The bottom line is that there is little or no material poverty in the U.S.

At the time of our nation’s birth, we were poor, but we established an institutional structure of free markets and limited government and became rich.

This might be a good article send along to people who want to bash our free-market system. It’s easy for them to make assertions that we have to do this or that policy to redistribute wealth. But the real solution to helping the poor is not to take from one and give to another, it’s to put into place a system that causes wealth to be created for all. That’s what happened in the United States, and you can see how it happened in other capitalist economies like Chile, Hong Kong and Singapore. Capitalism turns poor nations into rich nations.