Economics 101: Nothing is free

Sister Toldjah tweeted:

Which brings us to this one:


An 8.25% “Living Wage” surcharge? But, but, but I thought that increasing the minimum wage wouldn’t hurt consumers! It would only be those greedy capitalist CEOs who might have to make do with less.

Most amusing, though, is an article on Sis’ site, about a good-hearted liberal from Austin, Texas, who has “voted for every park, every library, all the school improvements, for light rail, for anything that will make this city better” but now “can’t afford to live (t)here anymore.”

Gretchen Gardner, an Austin artist, has seen her property tax bill soar to $8,500 this year. I prefer to look at it as $708.33 a month, on top of her mortgage payment. Or, put another way, assuming a full-time job, with no overtime, her taxes come out to $4.09 per hour. It’s difficult for me to have much sympathy for her, given that she voted for all of the stuff that requires tax dollars to pay, but I do have some sympathy for the poorer people of Austin, who have also been saddled with higher local tax bills due to Miss Gardner’s votes.

Nor is it just the homeowners: renters pay property taxes just like homeowners do, as their landlords have to pass on their taxes in the rents that they charge. In fact, since landlords have to account for the expenses of vacant properties — the taxes don’t stop accruing just because an apartment is vacant — a smart landlord is going to calculate what his average vacancy rate is, and make sure that his total tax bill is covered by the rents he can expect at his normal occupancy levels. Thus, renters will be paying not only the property taxes on the units they occupy, but a premium to cover the taxes on vacant units!1

As we have noted previously, the end consumer, for anything, pays all of the costs for whatever it is he is buying. Everything for which Miss Gardner voted has to be paid for, and it has to be paid for by the taxpayers of the city .  .  . and that means everybody.

This is why we have said that liberals do not understand economics; if they did, they wouldn’t be liberals anymore!  Miss Gardner is getting, has gotten, a very hard lesson in Economics 101, that nothing is free, that somebody, somewhere, has to pay for everything.  It’s not always someone else; sometimes it’s you!

  1. The same logic applies to cities as well. City officials know that they will not be able to collect 100% of taxes due, so when they set tax rates, they must set the rates high enough that the anticipated percentage of people who actually do pay their taxes pay enough to cover the needed revenues. If the city can increase its collection rate to higher than what was anticipated, well, that’s just gravy.

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