​As 2024 ends, let’s reflect on a year filled with significant progress and challenges. From the election results to bold policy initiatives and much-needed conversations about sound money and inflation, this year has highlighted the ongoing need for fiscal conservatism and economic freedom. Here’s an overview of the year’s biggest stories, key wins, and essential reads to carry us into 2025. 

Watch the episode on YouTube below, listen to it on Apple Podcast or Spotify, and visit my website for more information.

​Originally published at American Institute for Economic Research.

President-elect Donald Trump recently reignited the minimum wage debate, calling the current federal minimum of $7.25 an hour “a very low number” and saying, “I would consider” raising it. He also acknowledged that a one-size-fits-all approach “wouldn’t work,” pointing to vast differences in living costs between states like Mississippi and California. 

These comments, made during a recent interview, highlight the ongoing tension surrounding wage mandates and their nationwide impact on workers and businesses. While some states are moving aggressively toward higher pay floors, the consequences of these policies remain deeply problematic.

In 2025, 23 states and 65 cities and counties will raise their minimum wages. Three states — Illinois, Delaware, and Rhode Island — will reach $15 an hour for the first time, joining seven others already there or above. Local jurisdictions are pushing even further, with some, like Burien, Washington, setting minimum wages as high as $21.16 for large employers. These increases aim to help workers keep up with the cost of living, but they come with significant unintended consequences.

Higher minimum wages often accelerate automation as businesses seek alternatives to paying higher labor costs. Fast-food chains, for instance, are replacing cashiers with self-service kiosks, which don’t require benefits, breaks, or overtime. This shift creates opportunities for higher-paying jobs in designing and maintaining these machines but eliminates entry-level positions that many low-skilled workers rely on. The same trend is in other industries, from warehousing to customer service, where robots and AI tools are increasingly replacing human labor. 

Policymakers unintentionally fast-track this transition by mandating higher wages, leaving many workers behind.

At the same time, rising labor costs make outsourcing and offshoring more attractive to businesses. Manufacturing jobs face additional pressure as domestic wages climb artificially based on government mandate rather than profitability. Even customer service roles are increasingly outsourced to countries with lower wages, reducing opportunities for American workers. Instead of lifting people out of poverty, these policies often shift jobs to foreign markets, undermining their intended purpose.

The consequences of wage mandates don’t stop there. Higher minimum wages act as a cost-of-living floor, driving up prices for goods, services, and housing. Businesses pass on the increased costs to consumers, and in states like California, where fast-food workers now earn $20 an hour in some cities, this dynamic is particularly stark. The result is a higher cost of living that erodes any gains from larger paychecks, leaving workers no better off than before. 

These pressures are especially acute for small businesses operating on thinner margins and struggling to absorb rising labor costs.

One often-overlooked consequence of minimum wage hikes is their impact on illegal immigration. As businesses face higher labor costs, some turn to undocumented workers who accept wages below the legal minimum. This practice distorts the labor market and creates unfair competition for lawful employees. By incentivizing illegal hiring, wage mandates contribute to a cycle undermining the workers they are meant to protect.

Unemployment is another harsh reality of wage mandates. When businesses can’t afford to pay workers at mandated rates, they cut jobs, reduce hours, or halt hiring. The minimum wage becomes irrelevant if low-income and entry-level workers can’t find employment. Many are pushed toward government assistance, perpetuating cycles of dependency. This outcome is a stark reminder that wage mandates often harm the people they intend to help.

These consequences underscore the flaws in a federal minimum wage. Trump was right to note that economic conditions vary dramatically between states like Mississippi and California, making a uniform wage floor untenable. States with lower living costs often have smaller business margins, and higher wage mandates can force closures or relocations. Even in high-cost states, wage mandates face resistance. In 2024, voters in California and Massachusetts rejected proposals to raise the minimum wage for specific groups of workers, citing concerns about higher prices and job losses.

Rather than imposing wage floors, policymakers should focus on pro-growth solutions that allow wages to rise naturally. Spending, taxing, and regulating less fosters competition so businesses thrive and workers benefit. When businesses grow and compete for employees, wages rise organically, reflecting productivity and market conditions. These increases are sustainable and equitable, avoiding the unintended consequences of mandates.

When labor costs are artificially inflated, businesses must adapt, often in ways that harm workers. A better strategy is to create opportunities for skill development and innovation, ensuring workers can earn more through higher productivity rather than government intervention.

Trump’s suggestion that federal wage mandates “wouldn’t work” reflects an important truth. Allowing states — or better yet, markets of people negotiating voluntarily — to determine wages ensures they reflect local realities. By removing wage mandates, businesses and workers could negotiate pay based on skills, experience, and regional costs, creating a more dynamic and inclusive labor market.

The minimum wage hikes set to take effect in 2025 will undoubtedly impact millions of workers, but they also serve as a reminder of the economic trade-offs involved. From job losses and automation to higher costs and illegal hiring, these policies carry unintended consequences that undermine their intended benefits. A better path forward lies in market-driven solutions empowering workers and businesses.

​In this episode of the Let People Prosper Show, Vance Ginn sits down with James Hohman, director of fiscal policy at the Mackinac Center for Public Policy, to discuss Michigan’s fiscal policies, corporate welfare, the real impact of business subsidies, and the Sustainable Michigan Budget. We explore how corporate welfare programs often fail to deliver on job creation promises and analyze the political dynamics that prioritize select companies over taxpayers. Together, we advocate for transparency, accountability, and a better business climate for sustainable economic growth.

(0:00) - Introduction to the Let People Prosper ShowVance introduces James Hohman and outlines the episode’s focus on Michigan’s fiscal policies and corporate welfare.
(4:57) - Motivations Behind Public Policy AdvocacyJames discusses his early interest in fiscal policy and the importance of understanding public sentiment to drive meaningful reform.
(10:58) - The Reality of Job Creation PromisesAn in-depth look at the gap between promised and actual job creation in business subsidy programs highlights the inefficiency of corporate welfare.
(18:58) - The Future of Corporate Welfare in MichiganExploring recent legislative changes in Michigan and the growing influence of interest groups on budget priorities.
(26:51) - The Need for Transparency in Subsidy ProgramsJames and Vance stress the importance of transparency and accountability in business subsidy programs to ensure taxpayer money is spent wisely.
(34:44) - Michigan's Budget and Political LandscapeAn analysis of Michigan’s shift toward corporate welfare and how these decisions impact economic growth and public trust.
(41:12) - Fostering Economic Growth Without Corporate WelfareJames and Vance advocate for fair and free-market policies that enable businesses to thrive independently of government handouts.

Originally published at American Institute for Economic Research. 

​Friday’s rejection of the continuing resolution (CR) in the US House underscores Congress’s glaring dysfunction. This bill wasn’t just bad — it was emblematic of a systemic failure to restrain federal spending. The proposed measure continued unsustainable spending levels and piled on additional increases without the spending cuts necessary to offset its fiscal recklessness.

The House vote failed 174-235, a stunning defeat for President-elect Donald Trump and Speaker Mike Johnson. This chaotic episode highlighted deep divisions within Congress, with Democrats refusing to accommodate Trump’s sudden demands and many Republicans expressing frustration over internal disarray.

Congressman Chip Roy (R-TX) aptly called out his fellow lawmakers, stating, “I am absolutely sickened by a party that campaigns on fiscal responsibility and has the temerity to go forward to the American people and say you think this is fiscally responsible. It is absolutely ridiculous.” He’s right. For years, Congress has operated with bipartisan disregard for fiscal restraint, perpetuating a cycle of overspending that jeopardizes America’s economic future.

Outrageous Spending Items in the CR
The latest CR is packed with bloated spending measures that reveal Congress’s skewed priorities and increase spending by trillions of dollars over the next decade:

• Disaster aid: $100.4 billion for disaster relief, including hurricane-hit states, without offsetting cuts elsewhere.
• Debt ceiling suspension: Allows borrowing through January 30, 2027, a move many Republicans opposed without structural spending reforms.
• Infrastructure projects: Includes funds to rebuild Baltimore’s Key Bridge but omits bipartisan proposals like land transfers for new projects.

Elon Musk highlighted the drastic reduction in the bill’s length — from 1,500 pages to 116 pages — on his platform, X. But let’s be clear: it’s not about the number of pages. It’s about the number of taxpayer dollars being spent. Trimming a bill’s word count while not dramatically cutting spending is no win for the American people.

Families Live Within Their Means. Why Can’t Congress?
American families know what it’s like to live within a budget. Most work hard to stay within their credit limits, ensuring they don’t jeopardize their financial futures. Politicians, however, seem to have no such discipline. They spend other people’s money recklessly, ignoring the long-term consequences.

Adding insult to injury, the CR would have extended the debt ceiling for two years — until after the midterm elections — removing a check on runaway federal borrowing. This two-year extension, supported even by President-elect Donald Trump, was a slap in the face to those advocating for fiscal discipline. Rep. Roy and others in the House Freedom Caucus are right to demand structural reforms to spending before agreeing to any increase in the debt ceiling. Without such reforms, we’re simply enabling the same destructive cycle.

A Nation on the Brink
The United States is teetering on the edge of major fiscal, monetary, and economic crises. Federal debt exceeds $36 trillion, inflation remains a persistent threat, and rising interest rates are squeezing household budgets and business investments. More government spending — as proposed in this CR — will only exacerbate these problems.

Americans care about their income, prosperity, and financial security — not the page count of a bill. Excessive government spending undermines all three. It fuels inflation, weakens the dollar, and leaves future generations saddled with debt. We need sustainable budgets that cut spending today and limit future growth to no more than the combined rate of population growth and inflation. This approach would help stabilize the economy while reducing the burden on taxpayers.

Shutdowns Aren’t the Problem; Overspending Is
Critics often use the threat of a government shutdown to push through irresponsible spending bills. But let’s be clear: politicians have already shut down schools, economies, and entire communities in recent years. A temporary federal government shutdown, by contrast, might be the best thing to happen right now. It would force a much-needed reckoning with the root of our problems: Congress’s addiction to deficit spending.

A shutdown would allow the American people and their representatives to step back and address the elephant in the room: spending. It’s an opportunity to demand real solutions, not half-measures or hollow promises. For a resilient, pro-growth economy, prioritize structural reforms like spending caps and deregulation.

Looking Ahead: A New Era of Fiscal Restraint?
There are signs of hope. The incoming administration has signaled more fiscal restraint and deregulation, which is questionable given the CR efforts. With Musk and Vivek Ramaswamy leading the Department of Government Efficiency (DOGE) efforts, there’s potential for meaningful change. But actions speak louder than words, and this CR’s failure is a stark reminder that reform won’t be easy.

The next year will bring multiple fiscal cliffs, including debates over the debt ceiling, expiring Tax Cuts and Jobs Act provisions, and new spending bills. Policymakers must seize these moments to enact lasting reforms. That means standing firm against the pressures of Washington’s spending culture and prioritizing the long-term prosperity of the American people over short-term political gains.

Conclusion: A Call to Action
Rep. Roy’s critique of the CR highlights a broader truth: the federal government is failing its citizens. It’s time for lawmakers to stop negotiating with themselves and start delivering on their promises of fiscal responsibility. This means rejecting bad bills, demanding meaningful spending cuts, and embracing sustainable budgeting practices.

Balanced budgets are achievable—with faster economic growth and significant spending restraint. By implementing meaningful reforms today, we can create opportunities for prosperity tomorrow. The stakes couldn’t be higher. The time for excuses is over.

Originally published at Texans for Fiscal Responsibility. 

Texas shines as a top contender for economic freedom, ranking 5th in the United States in the latest 2024 Economic Freedom of North America (EFNA) report. Its lower-tax environment and flexible labor market have made the Lone Star State a top destination for businesses and families. ​

However, looming challenges--excessive government spending, skyrocketing property taxes, and burdensome occupational licensing—threaten its standing. These issues must be addressed to solidify Texas’s status as a leader in economic opportunity.

Excessive State and Local Government Spending
Texas has long been known for its fiscal restraint, tying state budget growth to population increases and inflation. Yet, recent trends show a troubling deviation from this principle. The 2024-25 state budget, approved by the 88th Legislature, marked the largest spending increase in Texas history. Total appropriations (state and federal funds) soared by 21.3% to $321 billion, with state-funded spending increasing by 31.7% to $219 billion.

This level of spending far exceeds sustainable growth benchmarks, threatening fiscal stability. It creates a ripple effect, with local governments also failing to curb their budgets. The result: rising property taxes, mounting local debt, and increased financial burdens on taxpayers.

Unchecked spending risks undermining economic freedom by forcing future tax hikes or service cuts. Solutions like Texans for Fiscal Responsibility’s Frozen Texas Budget—which would freeze spending growth at current levels—offer a pathway to restoring fiscal discipline. These measures and priority-based budgeting are critical for curbing unsustainable spending.

Skyrocketing Property Taxes
While Texas benefits from its lack of a state income tax, property taxes—particularly school district maintenance and operations (M&O) taxes—are among the highest in the nation. These taxes act as a progressive levy on unrealized capital gains, forcing homeowners to pay higher taxes as property values rise, even if their income does not. For businesses, high property taxes deter investment in property, equipment, and facilities, slowing economic growth.

Texans need bold solutions to alleviate this burden. With an expected $18 billion for the upcoming session, the state can leverage its record budget surpluses to put ISD M&O property taxes on a path to elimination, a critical step toward reducing the overall property tax load. Texas can encourage investment, boost economic mobility, and alleviate financial strain on families and businesses by taking aggressive action.

Excessive Occupational Licensing
Although not directly measured by the EFNA report, occupational licensing remains a major hurdle to economic freedom in Texas. Licenses are often required for professions ranging from barbers to electricians, creating unnecessary barriers to entry for workers and entrepreneurs. These licensing requirements increase costs, restrict competition, and limit workforce participation, particularly for low-income Texans and those trying to transition into new careers.

Streamlining and eliminating occupational licenses is essential to improving Texas’s economic mobility. Policymakers should evaluate the necessity of existing licenses and eliminate those that serve no legitimate public safety purpose. Expanding reciprocity agreements for out-of-state licenses can also attract skilled workers to Texas while reducing bureaucratic barriers.

Texas vs. Its Neighbors and National Leaders
Despite its high ranking, Texas trails competitors like Florida (3rd) and Tennessee (4) in economic freedom. Florida and Tennessee benefits from lower property taxes and tighter state and local spending control.

In contrast, Texas remains far ahead of states like California (49th) and New York (50th), which are plagued by excessive taxes, spending, and regulation. Louisiana (23rd) and Arkansas (24th), neighboring states, struggle with restrictive labor policies and excessive government spending, reinforcing Texas’s competitive advantage. However, Texas risks falling further behind national leaders without addressing its weaknesses.

A Roadmap to Reforms
To reclaim the top spot in economic freedom and secure long-term prosperity, Texas must focus on three key areas:

• Curb Spending Growth: Adopt the Frozen Texas Budget to cap state and local spending growth to zero increase without taxpayer approval. 
• Eliminate Property Taxes: Leverage surplus tax revenues by the state to phase out school district M&O property taxes and by local government to reduce property tax rates.
• Reform Licensing Laws: Simplify and eliminate occupational licensing to remove barriers for workers and entrepreneurs, fostering a more dynamic workforce.

Conclusion
Texas’s success as an economic powerhouse is no accident. Its low taxes, flexible labor market, and pro-growth policies have propelled it to national prominence. However, challenges in government spending, property taxes, and occupational licensing threaten to erode these advantages.
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By addressing these issues head-on, Texas can reaffirm its leadership in economic freedom, set an example for other states, and ensure prosperity for generations to come. Now is the time for bold action. Texans deserve nothing less.