Put your books away, its time for a quiz!

It has been a while since I said that. Of course the line students wish for that follows my heading is: "but it doesn't count!"
So relax, this one doesn't count either, but you will learn something.
The questions in this quiz were used some years ago as part of a Zogby International survey to gauge "economic enlightenment" among Americans based on questions of basic economics that were intermixed among other questions.

Other important data was collected data as well, including: each respondent's 2008 presidential vote, party affiliation, voting participation, race or ethnic group, urban vs. rural, religious affiliation, religious participation, union membership, marital status, membership in armed forces, NASCAR fandom!, membership in the “investor class,” patronage at Wal-Mart, household income, and gender. Thorough eh?

For your amusement, I present to you just the eight salient questions involved. Give them a shot and I'll discuss scoring later.

Please indicate whether you agree or disagree with each of the following statements.

1. Minimum wage laws raise unemployment.
  1. Strongly Agree  2. Somewhat Agree     3. Somewhat Disagree 4. Strongly Disagree       5. Not sure

2. Rent-control laws lead to housing shortages.

  1. Strongly Agree  2. Somewhat Agree     3. Somewhat Disagree 4. Strongly Disagree       5. Not sure

3. Restrictions on housing development make housing less affordable.

  1. Strongly Agree  2. Somewhat Agree     3. Somewhat Disagree 4. Strongly Disagree       5. Not sure

4. A company that has the largest market share is a monopoly.

  1. Strongly Agree  2. Somewhat Agree     3. Somewhat Disagree 4. Strongly Disagree       5. Not sure

5 .Third-world workers working overseas for American companies are being exploited.

  1. Strongly Agree  2. Somewhat Agree     3. Somewhat Disagree 4. Strongly Disagree       5. Not sure

6. Mandatory licensing of professional services increases the price of those services.

  1. Strongly Agree  2. Somewhat Agree     3. Somewhat Disagree 4. Strongly Disagree       5. Not sure

7. Overall, the standard of living is better today than it was 30 years ago.

  1. Strongly Agree  2. Somewhat Agree     3. Somewhat Disagree 4. Strongly Disagree       5. Not sure

8. Free trade leads to unemployment.

  1. Strongly Agree  2. Somewhat Agree     3. Somewhat Disagree 4. Strongly Disagree       5. Not sure 

Remember the Occupy movement, way back last year? One of the criticisms of that group that I supported, was their obvious lack of economic knowledge which was apparent because of their demands. This type of quiz makes that assertion more credible as you will see.

The Zogby researchers Zeljka Buturovic and Daniel B. Klein discovered that of the 4,835 respondents' (all American adults) in their survey, there was a clear association of enlightened answers and self proclaimed political persuasion. The researchers asked the respondents to state their political leanings as either: progressive/very liberal; liberal; moderate; conservative; very conservative; or libertarian. Rather than looking at correct answers, the researchers looked at answers that were clearly "unenlightened."
So, look at the first question above. Minimum wage laws set a floor below which employers are not permitted to pay their employees any less. That means employers either pay that amount to employees, and reduce their own profit, or as often happens, not hire more people and push the extra work onto current employees. So the enlightened answer is to AGREE with question one. When scoring, both "somewhat disagree" and "strongly disagree" were considered unenlightened or incorrect. "Somewhat agree" was accepted as correct in case the respondent thought the question was ambiguous, and "not sure" was not counted.

The researchers discovered that the incorrect responses from 0 to 8 are as follows: Very conservative, 1.30; Libertarian, 1.38; Conservative, 1.67; Moderate, 3.67; Liberal, 4.69; Progressive/very liberal, 5.26. The last two groups were the MOST UNENLIGHTENED.

This is a dramatic difference, and it supports my contention that the economic knowledge of so called "leftists" or better "statists," needs to be upgraded. Libertarians, as I would have guessed, are fairly well grounded in fundamental economics. The Occupy movement, that I believe consists largely of people who think government intervention is the solution to economic disparity, likely belongs to the poorly scoring statists.

One of the researchers, Daniel Klein, wrote about his work in the Wall Street Journal, and did an analysis of the questions which is interesting:

"To be sure, none of the eight questions specifically challenge the political sensibilities of conservatives and libertarians. Still, not all of the eight questions are tied directly to left-wing concerns about inequality and redistribution. In particular, the questions about mandatory licensing, the standard of living, the definition of monopoly, and free trade do not specifically challenge leftist sensibilities.
Yet on every question the left did much worse. On the monopoly question, the portion of progressive/very liberals answering incorrectly (31%) was more than twice that of conservatives (13%) and more than four times that of libertarians (7%). On the question about living standards, the portion of progressive/very liberals answering incorrectly (61%) was more than four times that of conservatives (13%) and almost three times that of libertarians (21%)."

Check your own score - Enlightened answers:

1. AGREE, 2. AGREE, 3. AGREE, 4. DISAGREE, 5. DISAGREE, 6. AGREE, 7. AGREE, 8. DISAGREE

H/T Claude Lesperance

Canadian Healthcare - Waiting Your Turn

There are nights when there is nothing worth watching on television and a few like last night. There were the results from the Iowa Caucuses, disappointing, the Canadian Juniors playing Russia, disappointing, and an interesting spin on Canadian healthcare, all going on at the same time.

Radio talk show host Jerry Agar was doing a substitution stint for Ezra Levant on the SUN NEWS channel, and the entire show was devoted to Canadian healthcare. Mr. Agar elaborated on two myths about healthcare:

• Government is the only entity caring and efficient enough to offer health care to Canadians.
• Canada provides the same healthcare service to the poor as to the rich.

He used a report produced by the Fraser Institute recently, titled Waiting Your Turn, and pointed out that monopoly services are controlled by making customers wait. Who can forget the long lines for bread and toilet paper in the former Soviet Union which monopolized the production and distribution of goods? In Canada, healthcare is a monopoly, and too many Canadians suffer from a nationalistic, chauvinistic attitude that somehow our healthcare system makes us better than our American neighbours. Its past time to stop that silliness. 

Watch the video here and then you may want to watch HEALTHCARE HULLABALOO, afterward with Dr. Roy Eappen, familiar to many of us, as he comments on this issue.   

Ron Paul on to New Hampshire

Funding faith-based schools, good?

Conflicted, that was my initial reaction when I read that the Government of Saskatchewan has decided to fund faith-based schools this year. I have several conflicts about that.
I'm not a fan of religious anything (except maybe foods), let alone education, and governments shouldn't be funding education or even involved in it. Of course when governments do fund education, as they do in most jurisdictions, there is also the conflict that religious teaching should not be something that taxpayers are forced to support - that's the church and state conflict. So you might be surprised with my considered opinion on this issue. I think this new funding is a step in the right direction. Why?

Where I live in Ontario, the provincial government funds the public system and since the mid-1980's it also funds all Roman Catholic Schools. Of course this is controversial, but it's a constitutional issue that goes back to the founding of Canada. That doesn't make it right, thats just the way it is. Why not fund all religions?

In an editorial today the Globe and Mail disagrees with Saskatchewan's decision. Its chief concern is that this new funding emphasizes the "separateness" in the schools, in what is becoming a very diverse population. This is very typical of the statist view in Canada. On the one hand Canadian governments encourage bilingualism, and multiculturalism because diversity brings new ideas, and new viewpoints to the Canadian population - its good. On the other hand the statists, including the major political parties, advocate 'sameness' in education to unify the country. As the Globe suggests: "A diverse population needs strong core institutions. It needs rallying points and meeting places, especially for its young people." So, separate schools are bad....unless of course they're Catholic...in Ontario. Confused yet? I am.

Why wouldn't it be a good thing to have diversity of choice in the schools, with competitive curriculums? Wouldn't that encourage schools to develop best practices that maybe produce better students and maybe give parents more options for their coerced tax dollars? I think it might. Would atheist/secular schools be funded?

It seems to me that if diversity of the population is good, so is diversity of the educational institutions, unless there is an ulterior motive, and of course there is. The state may not want competition of thought in the younger population, it wants unity, sameness of thinking. That is the best way to keep the ship of state from being rocked in the future. Or am I wrong? Why should their be more freedom of choice when the state can arbitrarily create less? That's really the issue isn't it, more freedom or less. The Globe suggests in the final line of its editorial:    "Diverse public schools are a multicultural society’s best way to promote unity, while still preserving difference." That almost sounds like Newspeak.