Democrats Get Economics Exactly Wrong on Government, Business, and Taxes

On this Friday, August 25, 2023 broadcast, Kim Monson examines how progressive economic policies undermine free markets and burden everyday Americans. Featured guests include author Rick Turnquist discussing his essay on Democrats and economics, HVAC business owner John Lennon exposing Denver’s costly heat pump regulations, and mortgage expert Lorne Levy explaining creative financing options in the current high-rate environment. Progressive Economic Policies Harm Free Markets Start listening at 34:11 – Hour 1 Rick Turnquist, author and essayist at To Advance Freedom, breaks down why Democrats fundamentally misunderstand economics. Turnquist argues that government has strayed far from its core function of protecting life, liberty, and property, pointing to the Lahaina wildfire tragedy as evidence that government fails even at basic protective duties while simultaneously trying to control every aspect of citizens’ lives. Turnquist explains that businesses exist for one purpose: making money for their owners. Along the way, they provide jobs, products, and tax revenue. When government imposes minimum wage laws and excessive regulations, it prices lower-skilled workers out of the market entirely. He notes that Colorado signed over 500 new laws in the last legislative session, making the state measurably less free than before. The discussion turns to taxation, with Turnquist citing data showing the top 10% of earners pay 70% of all income taxes while earning only 48% of adjusted gross income. Meanwhile, the bottom 50% pay just 3% of income taxes. He challenges the progressive narrative that the wealthy do not pay their fair share. “The government is a blunt force, and it’s an unintelligent blunt force. And it often fails at its core duty, which is to protect life, liberty, and property.” Rick Turnquist, Author and Essayist Denver HVAC Regulations Burden Homeowners Start listening at 24:56 – Hour 1 John Lennon, owner of Johnny Stubbs Heating and Air Conditioning Services, reveals how Denver’s new regulations require heat pump systems in buildings three stories or higher. For one condo owner whose air conditioner failed, this regulation would have added $2,800 to her replacement cost, pushing the total from $8,000 to $10,800. Lennon describes how his company switched manufacturers from Rheem to Bosch to offer better pricing, but regulations still force extensive retraining. Eight technicians must attend an eight-hour factory training session, representing significant payroll expense that cannot be passed to customers. Equipment costs have nearly doubled due to new efficiency standards, with units that cost $6,500 last year now running $8,000 or more. “The government just thinks that, well, whatever. You’re a small business owner. You’re rich. You’ve got all the money. You’ll be fine. Yeah, you’ve got that money tree in the backyard.” John Lennon, Owner, Johnny Stubbs Heating and Air Conditioning Navigating the Mortgage Market Start listening at 61:48 – Hour 2 Lorne Levy of Polygon Financial Group explains that mortgage rates crossed back above 7% after the 10-year Treasury broke through 4.30%. Federal Reserve Chairman Powell’s speech at the Jackson Hole meeting may signal whether rate increases will slow. Levy describes how buyers are using interest rate buydowns, where sellers help reduce the buyer’s rate for the first one or two years. Lenders must qualify borrowers at the highe...