John Tamny, Forbes columnist and editor at RealClearMarkets, joined the Federalist Radio Hour to explain misconceptions about trade, banking, the Fed and the housing market. Tamny’s new book is titled Who Needs the Fed?: What Taylor Switft, Uber, and Robots Tell us about Money, Credit, and why we should Abolish America’s Central Bank.
Tamny explains why Uber’s surge pricing is actually a good thing and how it compares to the way the Fed operates. “If you don’t allow price signals to work, then no one is served, and applied to Uber, if surge pricing didn’t exist it wouldn’t be in business today,” he said. “In the real economy, the price of credit floats up and down as though there is surge pricing.”
The problem with the government having a revenue after taxes is that it gives politicians more money to grow federal programs. “What we’ve found is higher revenues never lead to paying off debt, they just lead to more programs,” Tamny said. “Think about how much better your life would be if government spent less so that people like Jeff Bezos and the late Steve Jobs could spend and invest more. Your lives are much worse because of the big tax that is government.”