I Don’t Understand Higher Level Economics, So Here Are Victor's Economic Principles

By Victor J. Ward

Any person who walks the face of the earth can understand basic economics. You do not have to be a genius.

I know, because I understand basic economics, and I am not a genius.

Maybe the really “smart” economists would say that I only “think” that I understand economics. But, they would say, in reality, since I don’t know the mathematical economical underpinnings of an Edgeworth Box or Reaction Functions or Nonlinear Programming, I can’t really know what is going on in the higher-level world of economics. (I just looked up Mathematical Economics on Wikipedia and copied some of the concepts. Before looking, I didn’t even know something like an Edgeworth Box existed.)

Fair enough. The only basic economics I know are the day-to-day economics of my life.

Here are Victor’s Economic Principles.

Babysitting

If I need to hire a babysitter, and I post the job on Care.com or UrbanSitter.com, you should know that I am NOT going to hire you if you are a man.

Got that? I promise you that I am going to discriminate against you because of your gender.

The only men that will ever watch my son are men that I have built a relationship with over the course of several years. 

Other than that, don’t even bother asking. Even if I were in dire need of a babysitter, there is no way that any MALE babysitter from Care.com or UrbanSitter.com is watching my kid.

Again, am I discriminating because of gender?

Yes, you better believe it.

Equal Pay For Babysitters

So count out equal pay for babysitters. Male babysitters are not going to get in the door so they will get $0.00 from me compared to what I pay female babysitters.  

And I don't pay the female babysitters equally based on the hourly work they put in female babysitters. Take that Karl Marx.

I have a few women that I call when I need someone to watch my son. Let’s call them Angelica, Betty, and Cathy.

Is the job the same? Yes, watch our son; feed him dinner; make sure that he stays out of trouble; and put him to bed if it’s a late night.

That sounds like equal work, right? Do I pay Angelica, Betty, and Cathy the same amount?

Of course not.

My son likes Angelica. When I offered to give her the wifi password, she said, “No, I won’t need it. I will be playing Legos with your son and then we will go outside in the backyard.”

Angelica gets the most per hour. She didn’t charge that much, but I tip very well, especially for excellent service.

My son really likes Betty as well. She’s not quite as good as Angelica, but she’s still pretty good. She’s very punctual and responsible. 

Betty gets the second most per hour, also because I tip very well.

Cathy gets the least. I only call her when I can’t hire Angelica or Betty. Do I give her a tip? Sure, but it’s somewhat half-hearted. I want her to feel good about watching my son so that she will continue to do a decent job, but, I don’t want her to feel *that* good because I don’t plan on using her that much.

Equal work, but nothing close to equal pay.

A person can legislate it all they want. It will never happen in my world.

House Cleaning

My wife and I hired a small, family run cleaning crew that cleans our home. Let’s call it Bill’s Cleaning Service.

I would give them a B-. They don’t cost that much, and they do an OK job; it hasn't been bad enough for me to fire them, but not good enough for me to give them a tip outside of a healthy Christmas bonus.

Recently, though, they broke my kitchen faucet. The faucet is expensive.

According to the smart economists, this type of destruction helps the economy. I am going to buy a new faucet. Because I am going to spend money, this helps the economy. Or so the smart economists say.

It may help the economy of the place where I am going to buy the faucet, but it hurts my wallet and it definitely isn’t going to help Bill, because I am going to fire him.

Minimum Wage

My family is going on a trip, and we need someone to walk our four dogs. We are going to offer the job to a child of one of our friends.

His pay will be $10/hour.

What is the minimum wage? I have no idea, but let’s say that it is $15/hour.

If my friend’s son charged me that much, then why would I hire him? He’s never walked our dogs before and he is not a professional.

I have as much experience with him walking our dogs as I do the “Paw Patrol Professional Dog Walker Service.”

But, at least the Paw Patrol has a full-blown business based on dog walking. Dog walking is not a hobby for them; if they don’t do things correctly, they don’t get paid and they don’t eat.

If my friend’s son does not do things correctly, then he may not walk my dogs again, but that is probably the end of the story. His incentives are much different.

I am willing to take a chance on the kid walking my dogs. If I am going to have to pay him $15/hour in consideration of him walking my dogs, then he is going to need to pay me $5/hour in consideration of the risk that I am taking in hiring someone with less experience.

And, by the way, this seems like an easy solution around your typical Minimum Wage Law. If an enterprising youth wants to get hired, then they should contract with the employer. The employer will pay the entrepreneurial but inexperienced and somewhat untrustworthy youth the minimum wage in exchange for the youth scooping ice cream.

There will be a second contract. The entrepreneurial but inexperienced and untrustworthy youth will pay the employer the delta between whatever the youth is really worth and the minimum wage in consideration of the employer taking the risk of hiring someone who is inexperienced and somewhat untrustworthy.

This seems like an effective workaround of the Minimum Wage Laws for anyone who wants to use it. For those seeking an entry level job, It’s either use my workaround or get replaced by a robot.

Conclusion

I don’t understand higher level economics, just Common Sense Economics---and that works for me.

Victor J. Ward  first came across libertarianism by reading Murray Rothbard's Ronald Reagan: An Autopsy and Walter Block's Defending the Undefendable. He holds a law degree from the University of California, Hastings College of the Law and an MBA from Santa Clara University. He is author of The Smartest Christian In Babylon: why and how faith trumps science -- a common man's journey towards God

On Trump's 'Central Park' Trademark

By Victor J. Ward

I love the concept of entrepreneurship. I subscribe to the Kiznerian school of thought; that is, entrepreneurship is about recognizing and acting on opportunity, not necessarily taking risks.

Take Trump's trademarking of the words "Central Park." Was it really taking risk for him to pay the filing fee in order to get the trademark? I say no.

Sure, he stuck the trademark on things that he may have already been producing, like furniture, but that's part of entrepreneurship: Seeing opportunities. He saw an opportunity to make his furniture more desirable by calling it the Central Park furniture line.

Trump also aligned himself with the trademark, making the Trump name even more valuable.

Any person could have done this if they had seen the opportunity. If someone had beaten Trump to the punch, either he would have paid them for the name or he would have licensed it from them

I Am Still A Freedom Addict

By Victor J. Ward

EconomicPolicyJournal.com ran an article about a recovering Libertarian -- specifically a Ron Paul addict. (http://www.economicpolicyjournal.com/2014/09/strange-confessions-of-recovering.html#comment-form.)

Since my addiction continues, I thought that I would address some of the relevant points.

Escaping From The Land Of Urban Primitivism

By Victor J. Ward

EPJ has published articles on Urban Primitivism. (See http://www.economicpolicyjournal.com/2014/08/urban-primitivism-and-violet-oppressive.html.)

It's true: The public education system, minimum wage laws, drug laws are working together to keep the Black man down. I will address these at another time.

In this post, however, I want to talk to the Urban Primitives that want to escape the Land of Urban Primitivism (LOUP). Even when the state is working against you, there are certain things that you can do to help you get out of LOUP and into a more civilized society.

A Few Lessons Courtesy of Ferguson, Missouri

By Victor J. Ward

I  agree with EPJ's take on the violent confrontation with the state: In short, don't do it because they have more guns than you do.

But, if you really want to involve yourself in civil disobedience, you should do it the right way. The people of Ferguson are NOT doing it the right way when they

Thank God for Elizabeth Warren

By Victor J. Ward

I have been working on a piece regarding reparations. That, plus the general busyness of life has kept me from writing. But, a couple of articles on EPJ got me thinking about some things. One was Bob's post about Ron Paul's comment that people are born libertarians. The other was the post about Elizabeth Warren's 11 rules for Progressives.

I like to say that I graduated in the top 99% of my law school class. Some people get confused and think that that is really good. If you graduate in the top 10% of your class, that's really good. If you graduate in the top 25%, that's pretty good. If you graduate in the top 50%, you usually don't talk about it. If you graduate in the top 99%, well, enough said.

When I was in law school, there were many opportunities that I could have taken -- even for a poor student -- and those opportunities could have paved the way for my legal career. But, I did not know of said opportunities, and I was too ignorant or proud or embarrassed or some combination of the above to ask about said opportunities.

I took the Bar exam six times before I finally passed.

Before passing, I can remember driving around

Is EPJ Breaking The Law?

By Victor J. Ward

A couple of days ago, Chris Rossini wrote an excellent post about internships, and it made me think about some of the articles that I have written and that EPJ has posted.

Some of my articles have generated positive comments. Some commenters have even asked to read more of my writing.

Personally, that has been very encouraging. I am glad that something that I wrote made a positive contribution in someone's life. It has also been encouraging because my wife reads all of my posts and all of the comments. (In fact, she may be more interested by the comments than by the article. After all, she knows what I am going to say; she's does not know how it will be received.)

My wife has responded to the calls for more writing by, in effect, telling me: "Get after it and answer the call!"

I don't get paid by EPJ. I have never asked to get paid, and I will never ask EPJ to pay me. I am honored that I get to express my thoughts and that my thoughts get distributed to many people. As I said above, I am honored that some of you have found my writing enjoyable.

What if EPJ had to pay for everything that I submitted? What if EPJ had to choose between Thomas Sowell, Walt Williams, or Victor J. Ward? I am pretty sure that that would be the order: Sowell, Williams, then Ward. Sowell and Williams are both tried and true. You know what you are going to get: Great analysis and great writing.

With me, who knows? It's a little bit of catch-as-catch-can.

But, because Robert/EPJ did not have to pay me, they were free to take a small gamble. And now, a new profession -- one in which I have always wanted to explore -- is a little closer to becoming a reality.

Forcing employers to have to pay for interns and preventing employers from accepting volunteers and enjoining employers from paying people below a certain amount hurts the employer. But, it also hurts the intern/volunteer employee.

Because I have been able to write for EPJ, I have been able to see the public manifestation of my thoughts. When you get a chance to see your ideas/thoughts turned into something more tangible, you learn from the entire process. In my case, I have learned something about the way I think. I have learned about the way I write. I have learned about the way I read and proof-read. I have learned about how I take a compliment and how I take criticism.

I have learned more than just the practice and skill of writing. I have learned about myself.

Have I been paid for my articles and posts? Yes, in ways that are more valuable than money.

So, when the state prevents people from interning or volunteering and when the state prevents people from working below a certain wage, they are doing damage far beyond just that of the economic and the financial.

Victor J. Ward  first came across libertarianism by reading Murray Rothbard's Ronald Reagan: An Autopsy and Walter Block's Defending the Undefendable. He holds a law degree from the University of California, Hastings College of the Law and an MBA from Santa Clara University.

Libertarian-Socialism = Righteous-Wickedness

By Victor J. Ward

I agree with everything mentioned in the post: It's Here: Libertarian-Socialism. But I wanted to comment on one section of Will Moyers' article.

Moyers says:

How can we combat racism? Property rights and non-agression. How should humans approach sexuality and gender? Property rights and non-agression. What is the place of hierarchies in society, whether it's families or workplaces or financial classes? Property rights and non-agression. What role -- if any -- should religion and superstition play in society? Property rights and non-agression.

And to Moyers, I say: Yes, that's correct.

Moyers writes in an attempt to say that libertarians have an extremely limited answer to some of life's most pressing questions. In truth, however,

"No Race Can Prosper Till It Learns that There is as Much Dignity in Tilling a Field as in Writing a Poem"

By Victor J. Ward

Cliven Bundy, the Nevada cattle rancher who had a run-in with the Bureau of Land Management, is old news -- at least until the feds come back and begin to harass him again. But, I am reading a book, and something that the author wrote reminded me

When a Black Person Wears a Hoodie

By Victor J. Ward

I just listened to the Stephen A. Smith/ESPN First Take video. Stephen A. Smith is an entertaining, loud, and opinionated person when he is talking sports. When he steps on his race soapbox, he works my last nerve.

But, in the video posted on EPJ, Smith speaks with passion and reason.

The sad thing is that after Smith spoke

Donald Sterling Snatched Defeat From The Jaws Of Victory

By Victor J. Ward

When the Economic Policy Journal ran its first post about Donald Sterling, Robert Wenzel stated that Sterling's comments were not those of a racist but instead the comments of a jealous man.

Initially, I thought Robert was wrong. I thought that Sterling's comments were racist. Upon further reflection, I realized that they were not. I still, however, did not think that he had made the comments because he was jealous.

A recent conversation helped me to see that Bob was right about Sterling's jealous streak.

Last week, my wife and I had dinner with

Are Rothbard, Rockwell and Hoppe Racists? The Charges Examined

By Victor J. Ward

My last post prompted two comments that I want to include in this post.

The first was by an anonymous poster who provided a definition of racism:

Walter Block Comments on the Latest Victor Ward Essay

Dr. Block emails:

Dear Victor:

This is just about the most magnificent essay I have ever read about racism. Imagine, truth as a defense against that charge. Go figure.

Best regards,

Walter

Walter E. Block, Ph.D.
Harold E. Wirth Eminent Scholar Endowed Chair and Professor of Economics
Joseph A. Butt, S.J. College of Business                
Loyola University New Orleans

Be sure to read Ward's essay here.

UPDATE

Lew Rockwell writes in an email:

I love Victor Ward!

A Few More Thoughts on Race, Racism, the Government and the Racsim Police

By Victor J. Ward

I have read what Cathy Reisenwitz said, and then I read that Roderick Long agreed with her. Long included a link that purportedly backed up her (and his) claim of racism.

The link was to a speech given by Hoppe. In the speech, Hoppe talks about the Welfare State and those that live off of and profit from the Welfare State. Hoppe also makes some positive mention of eugenics.

Hoppe never specifically addresses race or Blacks or minorities, but to the Racism Police, any mention of

Always Trust Your Own Judgment and Do Not Rely on the So-Called Experts

By Victor J. Ward

The NBA/Donald Sterling situation has been a great reminder of a very valuable lesson: Never trust the media, and, when possible, always think for yourself and don’t trust so called experts.

The NBA imposed three penalties on Sterling:

1. A lifetime ban from NBA games;
2. A $2,500,000 fine; and 
3. Forced sale of the Los Angeles Clippers

Number 3 will happen if/when 75% of the owners vote to eject Sterling from the ranks of NBA owners.

In a previous post, the author mentioned why #3 was unlikely to happen. But, the NBA case is even weaker than I first thought:

The first two penalties come from Article 24 of the NBA Constitution. The pertinent part reads:

The Commissioner shall, wherever there is a rule forwhich no penalty is specifically fixed for violation thereof, have theauthority to fix such penalty as in the Commissioner’s judgment shallbe in the best interests of the Association. Where a situation ariseswhich is not covered in the Constitution and By-Laws, theCommissioner shall have the authority to make such decision,including the imposition of a penalty, as in his judgment shall be in thebest interests of the Association. The penalty that may be assessedunder the preceding two sentences may include, without limitation, afine, suspension, and/or the forfeiture or assignment of draft choices.No monetary penalty fixed under this provision shall exceed$2,500,000. (Emphasis added.)

Note the wording in bold: “Where a situation arises which is not covered in the Constitution and By-Laws.” Obviously, the Commissioner used this section because there is nothing in the NBA Constitution (that I have read) which prevents an owner from having a private conversation that may have racist overtones.

Now, take a look at Article 13, the section authorizing the termination of Sterling’s ownership:

"The Membership of a Member or the interest of any Ownermay be terminated by a vote of three fourths (3/4) of the Board ofGovernors if the Member or Owner shall do or suffer any of thefollowing:(a) Willfully violate any of the provisions of theConstitution and By-Laws, resolutions, or agreements of theAssociation.” (Emphasis added.)

The Commissioner wants to use this section to completely remove Sterling. For this section to have any merit, there must be a willful violation of the provisions of the Constitution and By-Laws.

So, in order to impose the $2,500,000 fine, the Commissioner must show that Sterling’s actions are not covered in the Constitution and By-Laws. But, in order to force the sale, the Commissioner must show that Sterling’s actions violated provisions of the Constitution and By-Laws.

How can Sterling do something not covered by provisions in the Constitution and, simultaneously, have this same action violate a provision of the Constitution?

If anyone in the media or any legal expert had bothered to do a little bit of investigation rather than breathlessly cry “Racsim!” they would have recognized the NBA’s dilemma.

I don’t know how hard Sterling wants to fight his penalties. He may decide to sell and make a really, really nice profit. But, if he does decide to fight, my money is on him.

Victor J. Ward is a long-time EPJ reader, who first came across libertarianism by reading Murray Rothbard's Ronald Reagan: An Autopsy and Walter Block's Defending the Undefendable.

My Thinking About Sterling Has Done a Complete 180 as to Whether He Made Any Racist Comments

By Victor J. Ward

I agree with Robert Wenzel about thought control and opinion control. Sure, the NBA is a private market participant, and they should be able to do what they want as long as they do not violate the NAP. But, what's scary about this whole thing is how quickly the masses have run to get the wood and the nails and crucify Donald Sterling. It's scary because there does not seem to be much thought or mental reflection given to the situation.

I used to work for an organization as their HR representative responsible for employee discipline. Specifically, I would investigate problems -- either poor work performance or unprofessional conduct -- and then mete out what I deemed to be the appropriate amount of discipline. The discipline ranged from a gently worded email to suspension to termination.

From my experience, I really doubt that

Racism From This Black Person's Perspective

By Victor J. Ward

Dear Bob,

I wanted to give you my brief thoughts on the Donald Sterling recording:

1. I agree with you: If someone wants to pay me $1M, then they can be as racist as they want to be. The typical, yet specious, counter to this statement is that I would be a sellout.

A sellout is someone who sacrifices their principles for the sake of money. They funny thing is, the people that will  yell, "Sellout!" will never ask me what my principles are. They will assume that since I am a Black man, I must have race as a principle to be valued over money. In other words, the people yelling, "Sellout!" have made a determination about me based solely on my race; that is, the yellers are racists.

2. Why get angry at Sterling? Clearly, the man did not