Wednesday, February 22, 2017

The mayor of Philadelphia proves why liberals should never be in charge of finance, economics, or anything to do with money

For years liberal politicians have used the offer of free stuff to try to entice the voting public into believing that money simply grows on trees and that the laws of economics don't matter if the right party is in office.  Case in point, the fact that Bernie Sanders ran for the Presidency on a platform of free education, free healthcare, and a myriad of other free welfare programs that would have doubled the national debt from $19.5 trillion to right around $40 trillion.

Image result for weekend at bernie sanders
Presidential contender Bernie Sanders' broadly progressive tax and spending proposals would add a whopping $21 trillion to the national debt over the next decade, according to a joint analysis released Monday. 
Sanders' proposals would cost $33.3 trillion in new spending, mostly from his health-care proposals — more than double the $15.3 trillion in new taxes, mostly on wealthier American households, that he proposes if he's elected president, according to the analysis by the Tax Policy Center. - CNBC
Of course, socialists, liberals, and Marxists like Sanders fail to ever look at the long history of nations who implemented their own versions of this, and the graveyard of failed economies that resulted from it.

Their solution?  More of the same, only on a much greater scale.

But liberal economics isn't relegated to just 'taxing the rich'.  And whether it involves trying to bankrupt individuals and economies through moronic schemes such as carbon credits, they have never learned that when governments get involved in an economy, there are consequences that emerge that they never plan for.

Such as in the city of Philadelphia, where the Mayor's push to 'fight obesity' through a beverage tax has now resulted in a massive decrease in tax revenues, and the onset of layoffs in industries that sell soda and other drinks with a modicum of sugar.

Image result for huge big gulp
According to Philly.com reports, two months into the city’s sweetened-beverage tax, supermarkets and distributors are reporting a 30% to 50% drop in beverage sales and - adding insult to injury - are now planning for layoffs. 
One of the city's largest distributors told the Philadelphia website it would cut 20% of its workforce in March, and an owner of six ShopRite stores in Philadelphia says he expects to shed 300 workers this spring. “People are seeing sales decline larger than anything they’ve seen up to this point in the city,” said Alex Baloga, vice president of external relations at the Pennsylvania Food Merchants Association. 
Since all of this is taking place as previewed in a recent post: "The 'Soda Police' Just Learned A Valuable Lesson About Taxes", we doubt it would come as a surprise to anyone, although we are confident that Philadelphia city workers will be amazed by these unexpected developments. 
Sure enough, in response instead of admitting the tax was a bad decision, the city lashed out by launching the latest "fake news" campaign, when it questioned the legitimacy of the early figures and predicted that customers responding to the initial sticker shock by shopping outside the city would return. “We have no way of knowing if their sales figures and predicted job losses are anything more than fear-mongering to prevent this from happening in other cities,” said city spokesman Mike Dunn.
Mayor Kenney harshly rebuked reports of coming layoffs late Tuesday night. 
"I didn't think it was possible for the soda industry to be any greedier," Kenney said in an emailed statement. “…They are so committed to stopping this tax from spreading to other cities, that they are not only passing the tax they should be paying onto their customer, they are actually willing to threaten working men and women's jobs rather than marginally reduce their seven figure bonuses." 
Bob Brockway, chief operating officer of Canada Dry Delaware Valley, which distributes about 20 percent of the city’s soft drinks, said sales were down 45 percent in Philadelphia. The company will lay off 20 percent of its workforce the first week in March. The distributor is a subsidiary of Honickman Affiliates, owned by Harold Honickman, who helped lead the opposition to the tax last summer. The 35 jobs on the line include managers, sales people, and drivers, Brockway said. Sales are up about 20 percent in the suburbs, but that hasn’t helped the business break even, he said. - Zerohedge
The bottom line.  Taxing a product or service to push a political or social agenda simply means people will either quit using it, create a black market for it, or go someplace where there isn't a tax on it.  And all one has to do is look at when states began to tax cigarettes and realize that online sales, and sales of smokes from Indian reservations, would easily defeat the best intentions of liberal economics.

2 comments:

Why is every American city being economically destroyed? Just in Baltimore last month, the uppity places were barren, I mean like 6 people in an establishment capable of holding 100+. This is our national shame, the richest nation in history reduced to soup and crackers.

The whole point of the soda tax was to incentivize people to drink less, so if consumption of sugary drinks has fallen 30% to 50% that would mean the program has been a roaring success. If no one foresaw the layoffs coming, that's a failure of imagination which does not surprise me. Presumably peoples' consumption habits will shift, not disappear, so there should be an equal number of jobs opening up in industries that don't give the customers spare tires around their waist or diabetes. Organic truck gardening, anyone?

Post a Comment