Economic Fallacies and the Case for Free Markets

On November 14, 2023, Kim Monson opened with analysis of Colorado’s property tax crisis following Proposition HH’s defeat, the state’s fourth-highest crime rate ranking, and rising energy costs. In the second hour, Producer Luke Cashman joined Kim for a thoughtful book report on Henry Hazlitt’s ‘Economics in One Lesson,’ examining the unseen consequences of government intervention in housing and employment markets. Free Market Economics and the Hazlitt Framework Start listening at 61:20 – Hour 2 Luke Cashman joined Kim to discuss Henry Hazlitt’s classic work on economic thinking. The conversation centers on Hazlitt’s core thesis that sound economic analysis must consider both immediate and long-term consequences, and must account for effects on all groups rather than just the intended beneficiaries. Cashman highlighted Hazlitt’s central argument about government spending: when the state builds public housing or infrastructure, it creates visible jobs and projects, but simultaneously destroys invisible opportunities in the private sector. Those tax dollars, if left with citizens, would have created private homes, manufactured goods, and service jobs that never come into existence. The discussion evolved into a spirited debate about subsidized housing policy. While Hazlitt argues that public housing merely diverts resources rather than creating new wealth, Cashman offered a counterpoint, suggesting that housing the homeless transforms tax liabilities into potential taxpayers. Kim responded by invoking the Hegelian dialectic, noting how government often creates problems through regulation, then offers more government as the solution. “The government sitting here going, yeah, you overpaid, but we’re going to use it anyway, is flat out wrong on all levels. And I think everyone pretty universally agrees that that’s not a good move.” – Luke Cashman, Producer, Crawford Broadcasting The conversation touched on the Colorado Taxpayer’s Bill of Rights (TABOR) and how Proposition HH’s defeat reflected widespread agreement that government should not retain excess tax revenue without voter consent. Cashman noted that despite different political perspectives, the principle of taxpayer control over their own money transcends partisan lines. Colorado Policy Challenges: Taxes, Crime, and Energy Start listening at 4:23 – Hour 1 Kim opened the show with analysis of several pressing Colorado issues. The Common Sense Institute’s data revealed Colorado has the fourth-highest crime rate in the nation, with property crime ranking third and violent crime eighth. Unlike neighboring states, which saw crime decreases of 26-37% since 2012, Colorado experienced a 21.6% increase. The U.S. Energy Information Administration report showed that electric heating costs 77% more than natural gas this winter, averaging $462 per household compared to significantly less for natural gas users. Kim connected this to the Biden administration’s push toward electrification and net-zero policies by 2030, arguing these mandates squeeze working families already dealing with inflation. Following Proposition HH’s defeat at the polls, Governor Polis called a special session beginning November 17 to address property tax relief. Kim urged listeners to attend the Capitol hearings, noting that the 48-page proposition had created four new property classes, which she argued undermined the American principle of equal treatment under the law.