Jun 03 2010

Steyn: We’re too broke to be this stupid

If anyone is counting, this is the 1200th post on this blog.  Or so says the WordPress editor.

I hate to quote only an excerpt of this piece by Mark Steyn, titled We’re too broke to be this stupid.

Back in 2008, when I was fulminating against multiculturalism on a more or less weekly basis, a reader wrote to advise me to lighten up, on the grounds that “we’re rich enough to afford to be stupid.”

Two years later, we’re a lot less rich. In fact, many Western nations are, in any objective sense, insolvent. Hence last week’s column, on the EU’s decision to toss a trillion dollars into the great sucking maw of Greece’s public-sector kleptocracy. It no longer matters whether you’re intellectually in favour of European-style social democracy: simply as a practical matter, it’s unaffordable.
………
… the easiest “solution” to <social problems of all kinds> is to throw public money at <them>. You know how it is when you’re at the mall and someone rattles a collection box under your nose and you’re not sure where it’s going but it’s probably for Darfur or Rwanda or Hoogivsastan. Whatever. You’re dropping a buck or two in the tin for the privilege of not having to think about it. For the more ideologically committed, there’s always the awareness-raising rock concert: it’s something to do with Bono and debt forgiveness, whatever that means, but let’s face it, going to the park for eight hours of celebrity caterwauling beats having to wrap your head around Afro-Marxist economics. The modern welfare state operates on the same principle: since the Second World War, the hard-working middle classes have transferred historically unprecedented amounts of money to the unproductive sector in order not to have to think about it. But so what? We were rich enough that we could afford to be stupid.

The reason I hated to quote only the excerpt is because you should really read it all.

Steyn goes on to make the case that a great deal that is publicly funded, with taxes extracted from average working people, is counterproductive, or at least subsidizes bad behavior.  He is at his usual entertaining and trenchant best.  Read it all at the link above.

What it boils down to is this:  trying to repeal the laws of economics is a luxury for societies with lots of extra cash laying about.  That is no longer the case in pretty much any society, and certainly not in western society.   It’s a bit like pretending you’ve undone the laws of thermodynamics by injecting extra energy from outside the system, so that you can try to convince people that entropy isn’t really happening. 

But there are some laws of economics that apply.  Here are a few:

1)  You will get more of anything you subsidize.
2)  If you increase demand, and don’t increase supply, prices go up.
3)  If you increase demand, and don’t increase supply, and don’t let prices go up, shortages and rationing come next.
4)  If you decrease supply, and don’t decrease demand, prices go up.
5)  If you decrease supply, and don’t decrease demand, and don’t let prices go up, shortages and rationing come next.
6)  If you spend money on things that don’t lead to the production of more money than you spent, then you’re losing money.
7)  Ponzi schemes always collapse eventually, usually sooner than the con artists hoped.

It may not be clear to you, but virtually EVERY regulation has the effect of decreasing supply, and so prices go up.  So we had better have a minimum of regulation, sticking to only the absolutely necessary.  Keep in mind that rich people who own businesses don’t pay high prices.  They just pass them on to consumers.  When they reach a point where they can no longer pass higher prices on to consumers (because consumers won’t pay it, or the government won’t let them raise prices themselves, regardless of their costs), they leave the business, since that means it’s no longer making money.

The single biggest Ponzi scheme in American history is Social Security.  The next biggest is Medicare.  If you aren’t already collecting benefits from one of them, you aren’t going to get nearly as much from them as did your predecessors.  Your children will get FAR less than that.  Check the economies of Greece and Spain for details.

The “tea parties” springing up around the country are evidence that the entire electorate has not lost its mind, but part of the electorate is clearly insane.  Or suicidal, which may be the same thing.

The 2008 election was a prime example of hope (and apparently faith in the tooth fairy) triumphing over clear thinking based on facts and history.

As Dallas Willard says in Knowing Christ Today, people only know what they’re willing to know.  So I suppose that putting this together with Mark Steyn’s observation that “we’re too broke to be this stupid,” we can say that we’re too broke to be willfully stupid.

We’re too broke to decide we just don’t want to know how we got that way.

I think some people are beginning to catch on, finally.  Pray it isn’t too late.


Jun 01 2010

Ronald Reagan’s crystal ball

I’ve had comments to make before about the background of “nationalized healthcare”, what it’s problems are, and so on. Here’s Ronald Reagon in 1961, before there was Medicare or Medicaid, let alone the recent takeover of healthcare by the federal government. He was amazingly prescient, wasn’t he?  He completely nailed the agenda behind Medicare, and the incrementalist approach he predicted is now historical fact.

I miss him.

As for the incremental approach, you don’t think the Left plans to stop here, do you?  Some may cavil at my characterization of Obamacare as a “takeover of US healthcare”, but regardless of where you think that line should be drawn, it is clear that the Democrats intend to cross it.   They are, by their own public pronouncements, not nearly done with the process of socializing American medicine.  This is only the first step.  They’ve said as much.
In the end, if we cannot reverse this monstrosity, we will all suffer for it, including even the now “uninsured”.

Feb 10 2010

Is Obama our Gorbachev?

Tag: Obama,Russia,national security,socialism,societyharmonicminer @ 9:45 am

Is Obama an American Gorbachev?   And if he is, does that make you feel better?  Pravda certainly seems to love the idea:

Former Soviet leader Mikhail Gorbachev believes that US President Barack Obama still has the support of the electorate despite opinion polls showing his support slipping. Gorbachev had positive comments and words recently when discussing nuclear disarmament treaty negotiations.

“The election of Obama was not an accident,” Gorbachev said. “It is true however that there has been some slippage in support for him.” While he said that he liked Obama “a great deal,” Gorbachev acknowledged that Obama faces considerable difficulties as he attempts to change his country’s policies.

“US policy is changing, but it’s a difficult process,” he said. Gorbachev feels that the United States had missed “many opportunities” in the past, but chances are better with Obama. “I am very pleased that now Obama has changed course and has gone back to dialogue and the process of nuclear arms control,” said Gorbachev, speaking through an interpreter.

Some have said they see Barack Obama as the US version of Mikhail Gorbachev. When the United States found itself in the midst of a global economic crisis, the administration decided it was time to launch the dialogue and discussion idea for peace in the world spoken about in the campaign. This is what Mikhail Gorbachev attempted to do during his leadership of the Soviet Union. During his trip to Moscow, Obama met with Mikhail Gorbachev.

The United States is suffering from a worst case of “buyer’s remorse” since the fall of Nazi Germany. President Obama under the circumstances can only really work for change in the health care system, which is a life-and-death matter. The sordid rackets so ostentatiously infecting the system boil down vividly to lives ruined and bankrupted, and a system more frightful to deal with than disease itself. Probably the home truth is that health care will end up being rationed one way or another due to the change in the Democratic Congress.

Economically, the US isn’t in a recession it’s in a collapse. Dmitry Orlov outlined the process in his book “Reinventing Collapse” about the parallels between the dissolution of the Soviet Union and the prospects for demise of the US as currently constituted.

Mikhail Gorbachev presided over the Soviet dissolution. In the USA, the outcome this time might not be very appetizing. It would be one of the supreme ironies of history if it turned out that the US was incapable of ending its most self-destructive rackets peacefully and bloodlessly, while Russia made her transition in a peaceful, orderly manner.

Time will tell. Until then, Russia has proven once again she is a reliable, stable and responsible partner in international relations, has tremendous respect in the international community due to the fact that she honours international law and the agreements she signs and provides a remarkable opportunity for investors, showing signs of increasing strength in the fundamentals which underpin the economy.

The main thing to remember about Gorbachev is that he presided over the dissolution of the government he headed, followed by a considerable period of great instability in Russian society, followed by the current more-or-less dictatorship that masquerades as a democracy.


Dec 10 2009

The new fundamentalists

THE TOTALITIES OF COPENHAGEN: GLOBAL WARMING AND THE PSYCHOLOGY OF TRUE BELIEF

One of the deeper motivations that animate global warming true believers is the totalitarian impulse. This is not to say that global warmists are closet Stalinists, but their intellectual methods are instructively similar, says columnist Bret Stephens.

Revolutionary fervor:

* There’s a distinct tendency among climate alarmists toward uncompromising radicalism, a hatred of “bourgeois” values, and disgust with democratic practices.
* So President Obama wants to cut U.S. greenhouse gas emissions by 83 percent from current levels by 2050, levels not seen since the 1870s — in effect, the Industrial Revolution in reverse.
* Rajendra Pachauri, head of the U.N.’s Intergovernmental Panel on Climate Change, insists that “our lifestyles are unsustainable.”
* Al Gore gets crowds going by insisting that “civil disobedience has a role to play” in strong-arming governments to do his bidding (this from the man who once sought to preserve, protect and defend the Constitution).

Utopianism:

* In the world as it is, climate alarmists see humanity hurtling toward certain doom.
* In the world as it might be, humanity has seen the light and changed its patterns of behavior, becoming the green equivalent of the Soviet “new man.”
* At his disposal are technologies that defy the laws of thermodynamics; the problems now attributed to global warming abate or disappear.

Anti-humanism:

* In his 2007 best seller “The World Without Us,” environmentalist Alan Weisman considers what the planet would be like without mankind, and finds it’s no bad thing.
* The U.N. Population Fund complains in a recent report that “no human is genuinely ‘carbon neutral’” — its latest argument against children.
* John Holdren, President Obama’s science adviser, cut his teeth in the policy world as an overpopulation obsessive worried about global cooling.
* But whether warming or cooling, the problem for the climate alarmists, as for other totalitarians, always seems to boil down to the human race itself.

Today, of course, the very idea of totalitarianism is considered passé. Yet the course of the 20th century was defined by totalitarian regimes, and it would be dangerous to assume that the habits of mind that sustained them have vanished into the mists, says Stephens.

It’s fashionable to speak of “religious fundamentalists” in a phrase designed to obscure the essentially benign intent of Christian fundamentalists (if you can find one anymore), by using a single-breathed phrase that also includes Islamic fundamentalists of the Islamo-fascist variety.  A couple dozen leftist columnists and some government officials have darkly hinted that, before long, “sexist, homophobic, anti-choice Christianists” will be as dangerous as Osama bin Laden, if they aren’t already.  After all, didn’t they just shoot that nice abortion doctor who was just rescuing women from a difficult situation?

I think, however, that the only non-Islamic fundamentalists who pose a real danger to the West are the eco-pagan totalitarians, who believe they have the divine dispensation to control how the rest of us live our lives and conduct our businesses, because only they have the pure vision and the purer hearts to make the judgments about just how we should be using energy, how much we should be using, when we should use it, in what form we should use it, how much we should pay for it, and what our punishment should be if we don’t comply with their enlightened prescriptions…  not to say proscriptions.

It is difficult to think of a more anti-human agenda.

But these particular fundamentalists want a LOT more than a mere tithe.  They mean to control just about every aspect of your life, to one degree or another.

Baptism may continue to be a sacrament in the eco-totalitarian regime…  but it will be in cold water.


Oct 16 2009

The Joy of Central Planning

Tag: socialismharmonicminer @ 8:00 am

China to redress production overcapacity in six sectors

The National Development and Reform Commission (NDRC) will mainly redress production overcapacity in six sectors, said Chen Bin, director of the Department of Industry of the NDRC, Thursday.

The six sectors include steel, cement, plate glass, coal-chemical industry, polycrystalline silicon and windpower equipment.

The NDRC also warns of obvious production overcapacity in sectors like electrolytic aluminum, ship manufacturing and soybean oil extraction, said Chen during an on-line interview on www.gov.cn., the website of China’s central government.

He said China would fight serious overcapacity in sectors like steel industry and offer guidance for new-born industries like windpower equipment to avoid low level repetitive construction.

China has achieved preliminary progresses in fighting the global economic downturn, but the foundation for economic recovery is not stable yet and overcapacity might lead to bankruptcy, unemployment and bad bank loans if it was not checked in time, he said.

Ah, the joys of central planning.   And it seems to be coming to the USA next, despite the proof by Hayek and others that it is impossible to do correctly, for the very good reason that no one can ever have all the information they need to make such decisions.

Soon you can look forward to reading in the New York Times that government has determined that we have an oversupply of MRI machines, cardiologists, emergency rooms, and surgeons.  As you wait for your appointment with someone who will decide if you get to schedule an appointment with someone who will decide if you get to see a medical specialist, you can comfort yourself with the knowledge that someone way up high in the government has determined that this is the very best way to do things.


Jul 21 2009

“Defending” Social Security, and predicting nationalized health care

Tag: Congress,Democrat,government,healthcare,socialismharmonicminer @ 9:05 am

There is an email in circulation that basically gives a moderately inaccurate history of social security in the USA, and makes some statements that are technically incorrect, but still fairly portrays (with a few errors) the broad sweep of changes in the system since it begin in the 1930s under FDR.  It is an example of well-meant and over-the-top reporting that would have done better to be scrupulously accurate.  Scrupulous accuracy would have revealed the situation as bad enough without the errors in the report.

Snopes attempts to debunk the email with a lot of explanation and clarification here.  What’s sadly funny is this:  the Snopes people seem to believe that their explanation somehow makes it all better, when what they end up admitting is nearly as bad as what is alleged in the original email.  Especially risible is Snopes’ attempt to de-link the Democrat party from increases in SSA taxes, increases in SSA benefits/spending, and congressional misappropriation for other purposes than originally intended, by using smokescreens like “borrowing from the social security ‘trust fund’,” etc.  Sure, a few Republicans erred here and there.  But it was overwhelmingly Democrats who pushed the spiraling ponzi scheme.

An example:  FDR did not “promise,” as alleged in the email, that the tax to fund SSA would only be 1% forever.  What he did, in the time-honored, incrementalist tradition of leftist-liberals everywhere, is create a system where the initial tax would be relatively light, and would increase slowly, over several years, so that most people who even understood what was going on at the time thought the tax would only be 1% for the forseeable future.  (How many people in mainstream USA at the time carefully reviewed legislation in detail, with all planned future changes, before forming an opinion of it?)   It is now a total of 15%, half directly out of your check, half “paid by the employer,” but in fact part of the employer’s cost of having you as an employee, by federal law.  It is going to go up, and the income ceiling that will be taxed is going to go up.

I hope you younger folks enjoy paying for my benefits.  Serves you right for voting for Democrats, in a spasm of hopey-changey good feeling.  We’ll see how good you feel when you’re paying for my 30 year vacation after retirement.

Read the Snopes article, and see if you don’t find Snopes’ defense to be nearly as damning as the email was in the first place.

And here is another take on the issue.  And another.

Exit question:  does any person who knows anything about the history of entitlement programs believe that when a national health care system for everyone is created, it will cost as little as proponents claim at its founding?

Only people with their eyes screwed tightly shut, and earplugs snugly in place.


Jun 25 2009

Russians accusing the USA of collectivism… surreal

Tag: Obama,Russia,economy,socialismharmonicminer @ 9:08 am

America walks the road of collectivism

Dear reader, let us first and foremost establish a known fact as our guiding principle: the Principle of American Extremes.

Simply put, in the American culture and government, any law passed and program enacted will be taken to the absolute extreme. Note, I do not say logical extremes but absolute extreme, beyond any measure of logic or hint of common sense or wisdom.

So begins an article in Pravda observing the collectivist tendencies of the American Left, and actually instructing the USA on the dangers of collectivism.

What’s next? A USA newspaper running an editorial accusing the Chinese of “wild west capitalism” a la 19th-century America?  Maybe warning the Chinese about “robber barons” (who pretty much never existed as commonly described)?

The world has become very strange.

The Democrats want to take over US healthcare, and intend to nationalize essentially all of it, all the while protesting they don’t plan to do that, even though that is the logical result of the policies they now pursue.  They want to institute a huge carbon tax (again claiming it will only affect “polluters”) which will affect the prices paid by everyone for everything, and cost the poor the most, because they live on smaller margins.  (The Left is for the “little guy” alright.  That’s why they want him to STAY little.)  The Democrats want union organizers to be able to pressure individuals to sign up for the union (card check legislation pending), and want to put an end to the secret ballot formerly required for unionization.  Would you turn down two huge guys name Guido and Alfonzo standing at your front door, with a few of their friends in the pickup truck on the curb, “just asking for your signature”?  Just about every new policy contemplated by Obama and Democrats is one of decreasing freedom for Americans, and more power for the government.

It is not a given that the USA will be the focal point of freedom in the world forever.  If we continue to abdicate that role by inches, and then by feet, that honor may fall to liberalizing societies to which we now feel superior, but which may be instructing our descendants on the finer points of freedom….  or even the major ones.


Jun 13 2009

The Spiritual Poverty of Socialism? Part 3

Tag: Uncategorized,philosophy,socialism,theologyharmonicminer @ 9:18 am

The previous post in this series is here.

Socialism, for its very existence, depends on powers of the state to make people do things they would not otherwise do (not merely to make them refrain from doing things that harm or threaten specific individuals), in order to achieve goals (outcomes) that seem good to the socialist.  In this sense, all socialists are statists.

I realize that the definition I gave of “socialism” in the previous post is not the textbook one.  That’s because it is not an ideological definition from the point of view of economic or political theory.  It is an operational one, since no significant strand of socialism avoids the attempt to disconnect outcomes for individuals from the efforts made BY those individuals, and to do so with money and other resources taken in the form of taxes, fees, restrictions, regulations, and sometimes outright confiscation, by the state.  Some will cavil that “socialism” requires “state ownership of the means of production.”  See the previous post in the series for discussion about why that is not a useful standard.

On the continuum of socialism (as operationally defined above), nearly every government/economic system has *some* element of socialism/statism.   The very nature of government involves some degree of collective action towards common goals, which will dilute the effect of any given individual’s participation on the outcome for that individual.  It is a matter of degree, and context.

Let’s start with the easy, noncontroversial stuff.  Public funding of roads is socialist.  So are government funded militaries, court systems, police and fire fighting agencies, schools, etc.   While extreme free market fans may theorize otherwise, these are things which are commonly conceived to be the province of government, even though government may execute them via private parties.  That is, governments usually hire private contractors to build roads (though cities often have a “roads department” for minor repairs).  On the other hand, judges, police, and fire fighters are usually government employees.  Oddly, K-12 teachers are either public employees in publicly funded schools, or private employees in privately funded schools, while college and university professors may be employed by private or public institutions, and the private ones often receive a good deal of government money, at least in the form of student financial aid.

What’s characteristic about all of these services (with the possible exception of schools) is that virtually everyone uses them at one time or another, in one way or another, and they are services that no individual COULD provide privately.  That is, no one could afford to build a road from New York to Los Angeles.  Who could afford to maintain their own private police force, court and prison system, just in case they needed it, or keep a fire department standing by locally, just in case?  Maybe Bill Gates or Warren Buffet, but that’s about it.  And, in any case, no one would want ANY private person to have judicial powers, the complete panoply of police powers, etc.  Nor would we want any private person, no matter how wealthy, to be able to decide just where roads would be built.

So, the defining characteristics of “socialist” policies and programs that virtually everyone will accept are:

1)  They provide services that virtually no person could supply for themselves.

And,

2)  They provide services that would require a person to have so much personal power that we would not trust anyone to possess it.

Note that libertarians, radical free market believers, etc., may even complain about these.  But in general, most people who are suspicious of “socialism” — being suspicious of the statism in requires — will not complain too much about about these kinds of things.  Call it “socialism lite.”

These are areas where reasonable people can disagree.  How much should the state be involved in providing utilities?  How much should the state be involved in determining which cars are safe to drive?  What levels of risk are acceptable?  Any brief review of history of such things will reveal that various attitudes have existed, though the trend towards more and more statism in these areas is clear.  In any case, these are essentially pragmatic matters.  What will work best?  What will cost the public least, for the most benefit?

It is certainly not a “spiritual challenge” to seek or accept clean water delivered by a publicly owned utility with state supervision and management.

But, as we will see, greater levels of socialism/statism are clearly dangerous to the spritual health of the person, particularly those that intrude into matters that individuals ARE competent to deal with themselves, and which do not require the exercise of great personal power on the part of the individual.

That will be the topic of the next post in this series.


Jun 06 2009

Combat Power, Capitalism and the real enemy

Tag: capitalism,economy,government,liberty,socialismharmonicminer @ 9:00 am

To win battles, you have to achieve adequate combat power in relation to your enemy:

… Combat power is created by combining the elements of maneuver, firepower, protection, and leadership. Overwhelming combat power is the ability to focus sufficient force to ensure success and deny the enemy any chance of escape or effective retaliation. … Overwhelming combat power is achieved when all combat elements are violently brought to bear quickly, giving the enemy no opportunity to respond with coordinated or effective opposition. …

Commanders seek to apply overwhelming combat power to achieve victory at minimal cost. … They attempt to defeat the enemy’s combat power by interfering with his ability to maneuver, apply firepower, or provide protection.

Four primary elements – maneuver, firepower, protection, and leadership – combine to create combat power – the ability to fight. Their effective application and sustainment, in concert with one another, will decide the outcome of campaigns, major operations, battles, and engagements. Leaders integrate maneuver, firepower, and protection capabilities in a variety of combinations appropriate to the situation. …

The idea of combat power may seem a bit abstract, so a few examples may help.

If you have a combat force of 100 soldiers, how should you distribute weapons?   How should you distribute ammunition?   How should you distribute the soldiers in the battle space?  The answer can be stated generally this way:  you want the best, most powerful weapons to be gathered at the point where they will be most effective, with the most available ammunition, supported by as many soldiers as necessary to use the weapons, protect the weapons, and protect the soldiers who are USING the main weapons until those weapons have been effectively employed and the enemy is destroyed or neutralized.

Here is what you don’t do.  You don’t automatically distribute the ammunition evenly to each soldier.  You don’t just spread the soldiers out and hope that one of them runs into the enemy.  You don’t hold a lottery to decide who gets the biggest guns, or the ones with the highest rate of fire.  You don’t give all the soldiers identical training, and you don’t place soldiers in particular roles without primary regard for their achievement and acquired skills.

Combat power is the idea of focusing energy and resources where they will do the most good in defeating the enemy.  Somebody has to be in command, to make the decisions that will lead to that timely concentration of power.  It won’t happen by accident.  Ideally, an officer moves up through the ranks by demonstrated success against the enemy, although in this imperfect world, other criteria will sometimes be applied.

There is a strong relation between the concepts of combat power and capitalism.  Capitalism gets its name from the fact that it involves building up sufficient resources to accomplish economic tasks that are beyond the “average resources” of individuals.  An important point:  although “capital” is analogous to “combat power,” the enemy for capitalists is poverty.   This fact is not obvious, on the surface, to anti-capitalists, including socialists, who also claim that their enemy is poverty.  But consider: there is an upper limit (and it’s pretty low) to how rich a person can be in a poor society.

The richest man in a third world country may still have to spend a lot of time in considerably less luxurious circumstances that most American inner cities, where no one spends much time bouncing over dirt roads, rarely has to smell open sewage, can safely drink water from pretty much any tap, and so on.  You know all those rich people you read about in third world countries?  They are often rich only because they have managed to sell a product into a developed middle-class economy (think Saudis selling oil to the USA), or because they just plain stole it by means of military force, or maybe both.  Would you rather be the richest guy in Zimbabwe, or comfortably middle-class in Topeka?  The richest guy in Zimbabwe has to watch his back….  In any case, the best way to STAY rich (and alive) is to be rich in a middle-class economy.  Globalization has masked the fact that the rich in third-world countries are often dependent on the middle-class of developed nations, again proof that capitalists need markets with disposable income, while statists/socialists need a lower class to justify themselves.

It took capital to build the first railroads, the first airlines, the first automobile factories, and the first computer businesses, not to mention electronics factories, farm equipment factories, hospitals, pharmaceutical companies, clothing factories, retail outlets for all of these, and more. In each case, poverty was the enemy of the capitalists who funded these things, who took risks to make them happen.  If your society is poor, its members don’t have the resources to buy whatever you’re selling.  It really is that simple.  (A secondary enemy of capitalists is people whose power is threatened by them, mostly statists/socialists/royalists/entrenched privilege…  but even then, the major enemy is still poverty, which limits the ability to market what you make or do.)

John D. Rockefeller ruthlessly suppressed his competition by the simple expedient of finding every possible way to deliver his product at a lower price than his competitors.  But he depended on a technological infrastructure that created a need for the product he wanted to sell.  That is, if people hadn’t needed kerosene and oil, Rockefeller couldn’t have sold it to them.  They needed oil because they lived in a society that was rich enough to afford devices that required oil.

The enemy of capitalists is poverty, not other capitalists.

Let’s make this a little clearer this way:  the enemy of professional baseball team owners is not other baseball teams; it is an apathetic public that no longer cares to watch baseball.  Of course, there is competition, with “winners” and “losers,” but even the losers win if the public keeps coming to watch them lose.

No capitalist is required to stay a “loser,” because in a free system they are allowed to adjust their activities until they are winners.  That is the original meaning of “win-win.”  If I can’t make a particular widget that you want to buy at the price I can sell it, then I’ll find something you DO want enough to pay me for it, and we’ll both “win.”

The enemy of capitalists is poverty, not other capitalists, because it is only poverty that makes it unlikely for captalists to be able to sell anything at all.

Committed egalitarians would have us believe that the real enemy is the “gap between rich and poor.”  This is ludicrous on historical grounds.  Would these people prefer us to live in a society where everyone is equally poor?  The very, very exciting thing about a free, capitalist society is that no one has to STAY poor.  And there is no capitalist who WANTS the poor to stay poor, for the simple reason that it’s impossible to sell much to poor people, unless the government has required lending institutions to make loans to them that can’t be repaid.   And we all know how that ends.

Just as you don’t win battles or wars by equal distribution of troops, weapons and bullets, you don’t win the struggle against poverty by equal distribution of income or goods.  Instead, you let natural forces and markets encourage the concentration of those resources in the hands of the most productive among us, to the betterment of us all, as they produce goods and services we would never have had otherwise, and offer us choices we would never have had without them.  Successful capitalists are those whose products and services make the lives of the rest of us much better than they would have been without them.  It makes no more sense to resent fabulously successful capitalists than it makes to resent the success of Alexander the Great, or General Eisenhower.  Would you rather have fought on the side of Darius?  Or Hitler?  Would you rather be equally poor with everyone else, everywhere else?

Capitalism WAS the original war on poverty, and it is a war that was being won, pretty much on all fronts, right up until the government decided to hogtie its best commanders, divert resources used in weapons production to planting daisies in the park, send half the army on furlough, sound the retreat and sue for peace.  Peace with poverty, that is.  It is one of the great achievements of the Left that the only war that can go on forever, without a significant change in strategy or tactics, and with no strategy for withdrawal, is the publicly funded “war on poverty.”  Call it The Forever War.  It is the war that socialists/statists can never allow to be won.

Conjecture:  if there had never been anti-monolopy laws, but if the rule of law was scrupulously enforced, if corporations were not penalized for success, if government did not try to pick winners and losers, if government did not allow itself to be bought BY capitalists (no one said capitalists were angels), if government did not see the success of capitalists as a source of unearned income for itself (the only reason capitalists CAN try to buy government), if bad personal behavior wasn’t rewarded by government largess, if people were not conditioned to see “the safety net” as a hammock, if government did not promise things it can’t deliver forever, and in particular, if the presidencies of Franklin D. Roosevelt and Lyndon B. Johnson hadn’t happened (and their allied Left political constituencies), we would be richer now than most folks can possibly believe.  We would not now be just getting around to returning to the moon in 15 years or so, we would have permanent colonies there.  The standard of living of virtually all Americans would be higher, much higher.  We would have even more medical and pharmaceutical innovation, and it would cost us less.  Fuel would be cheaper, energy in general would be cheaper, and we would have more leisure time.  And paradoxically, the air and water would probably be cleaner.  We would be profiting, all of us, from economic expansion that would dwarf what actually happened.

The reason is simple: the diversion of resources away from focused, productive use, by the programs of anti-capitalist government, has made us all poorer, because those resources did not produce greater “capital power,” and diverted many, many people away from being productive themselves.  To put it simply, we ate our seed corn, instead of planting it.

We are now hip deep in another presidency that has the ambition to make as permanent a mark on America as those of FDR and LBJ.  I have no doubt that it will be possible to reduce the average gap between “rich” and “poor,” but it will not be done by making the poor any richer, and the price will make it even harder for the poor to change their circumstances.

It’s very, very simple.  Capitalists need a middle class into which to sell their goods.  Socialists need a lower class in order to justify their existence and political power.  Socialists, if they ever succeeded in eliminating poverty, would immediately lose power.  Who would need them anymore?  Capitalists can win forever, as we all just keep getting richer, and richer.  Statists/socialists see the resources generated by a period of successful capitalism, and they lust after them.

Capitalists need middle classes, and capitalist activity tends to promote the growth of them.  Socialists/statists need lower classes, and socialist/statist activity tends to promote the growth of them.  The fact that socialists/statists seem always to manage to take over, just as capitalism starts to succeed, is all the proof anyone should require of original sin.

It is as if socialists/statists went to the front line of battle, just as their own general’s brilliant strategy is about to win a great victory, and insisted on unloading the weapons of some of their own soldiers, just to make it fair.


May 17 2009

The Spiritual Poverty of Socialism? Part 2

The previous post in this series is here.

First, in order to be able to talk about this, let’s agree that no purely socialist society has ever existed.  Nevertheless, it’s reasonable to observe that some government policies and programs are more socialist than others.  So it’s the morality of socialist policies and programs in general that is in question, without regard to whether they exist in a purely socialist system.  In any case, experience suggests that it’s a smokescreen to argue that particular politicians or governments “aren’t socialist” in some absolutist sense.  What’s very clear is that some policies are socialist.  Governments and politicians who primarily pursue those policies can reasonably be called “socialist” in normal speech.

So what ARE socialist policies?  Basically, socialist policies attempt to disconnect outcomes for individuals from the efforts made BY those individuals, and to do so with money and other resources taken from other individuals in the form of taxes, fees, restrictions, regulations, and sometimes outright confiscation.   This isn’t a theoretical economic definition, but is rather an observation of what animates socialist policies (the disconnection of outcomes from individual efforts) and the means by which socialist policies are carried out (taxes, fees, restrictions, regulations, and confiscation).  Call it an operational definition that allows the correct identification of “socialists in the wild” without first capturing them, checking their DNA and doing a complete morphological exam of their complete economic policy.  If it walks like socialist, talks like a socialist, and generally acts like a socialist….

You can look up socialism in several online references and get various definitions, some requiring “state ownership of the means of production” and “central planning of economic activity” and other things.  The problem:  the definition of “state ownership” is vague.  If I theoretically own something, but the state can tell me IF I can use it, how to use it, when to use it, who I have to pay to use it, how much I have to pay them to use it, who I have to hire to use it, where I can sell it, IF I can sell it, perhaps price limitations on what I can sell it for, what kinds of conditions I am required to provide for those I hire, etc., and after all that the state confiscates a large percentage of whatever money I can make using it, even with all those restrictions, regulations and requirements, at what point does my putative “ownership” cease to mean “ownership” in the normally accepted sense?   Particularly if the next “owner” to whom I sell it has the same relationship with the state that I did when I owned it? And now, what if all the people who (theoretically) don’t own my property are still allowed to vote for regulations and policies and taxes that impose all the restrictions I just listed, for their own benefit as they see it?  Who, exactly, owns my property?  Well, quite a few of us, apparently.

This is why those textbook definitions are of little benefit in really identifying “socialism on the ground.”  When someone tells you that European nations “aren’t really socialist,” it means they are looking at the textbooks, instead of the realities on the ground.  It’s like saying that the Soviet Union wasn’t really a dictatorship because they had elections.

So, while textbook definitions of “socialism” often obscure more than they reveal, it’s easy to see that socialist policies attempt to disconnect outcomes for individuals from the efforts made BY those individuals, and to do so with money and other resources taken in the form of taxes, fees, restrictions, regulations, and sometimes outright confiscation.

Statism and socialism have much in common.  It’s pretty safe to say that socialism requires statism to function; if there isn’t much statism going on, there won’t be much socialism, either.  On the other hand, some forms of statism (the purely kleptocractic dictatorship, for example) aren’t particularly socialist, because they have no intent to secure ANY particular outcome for individuals other than those in power.  So:  all socialists are statists, but not all statists are socialists, although in the modern world most are.

In what follows, therefore, everytime I use the word “socialist” it would be good to remember that it means “socialist and statist.”  I just don’t want to say it that way everytime.

Most people who reject socialism are really rejecting statism, its unavoidable symbiote.  I am one of those.  If there was some way of having an entire culture participate in “voluntary socialism,” where everyone worked as hard as if they were working only for themselves, and behaving as responsibly with public resources as if they were personally owned, I might be willing to consider it (though I would have several reservations…  and since we don’t live in Heaven yet, and the Fall happened, this is a ludicrous conjecture anyway).  For me, the deal breaker is the degree of statism that must accompany socialism.

In the next post in this series, I’ll discuss the continuum of socialism/statism, i.e., starting with those “socialist” policies that most of us agree about, and moving to those that are more controversial.   Then, we can get to the spiritual implications of all this, the moral questions, the really interesting stuff.  Stay tuned.  I know this has been a bit dull, but it’s about to get much more interesting.

The next post in this series is here.


May 08 2009

The Spiritual Poverty of Socialism? Part I

Tag: capitalism,economy,government,religion,socialismharmonicminer @ 9:46 am

In a brilliant challenge to social theorist Charles Murray, Greg Forster points to the incompleteness of Murray’s argument that socialism is spiritually negative on moral grounds.

Faced with Charles Murray’s argument that the welfare state makes everything too easy, a socialist could ask: Should everything therefore be made more difficult? How can Murray say the welfare state is bad for making life easier while praising other state functions that make life easier, like the police? Only a moral perspective can oppose socialism while affirming legitimate state functions.At the American Enterprise Institute’s annual black-tie shindig on March 11, Charles Murray gave an outstanding lecture on the spiritual (as distinct from economic) dangers of the European-style social welfare state. But Murray’s analysis, though otherwise excellent, is missing a crucial element: an appreciation that these spiritual dangers ultimately arise from disregarding the moral law. And just as a small curve in a funhouse mirror changes the whole image, the single missing piece in Murray’s logic bends his whole argument ever so slightly, but crucially, out of shape.

The topic of Murray’s talk was well chosen. Whatever one thinks of its virtues, socialism on a scale that would have been unthinkable just two years ago is already the law of the land. We see government asserting de facto rights of ownership over our largest financial firms. We have seen a sizeable portion of the economy being brought under direct government control, financed by trillion-dollar borrowing. We have made steps to undermine the Fed’s independence that could bring about inflation that would make the 1970s look tame. Some are beginning to raise tentative but credible questions about the security of America’s sovereign debt. And the top two items on the legislative agenda this year will be near-irreversible first steps toward socialized medicine and a giant new energy tax disguised as environmental regulation.

Murray argues that, even aside from its demographic and economic flaws, the European welfare state undermines the aspects of civilization that make for “a life well-lived.” By a life well-lived, he means a life characterized by a lasting and justified satisfaction that one’s life was worth living. He identifies himself with the Aristotelian preference for seeing human beings fully “flourish,” and argues that this, as opposed to mere hedonism, is what Madison had in mind when he wrote that “the object of government” is “the happiness of the people.”

Only a limited number of human activities can serve as sources for this kind of deep satisfaction. Murray identifies three characteristics that all such activities must have: they must be important, they must be difficult, and they must involve individual responsibility for consequences. Activities that are trivial, effortless, or disconnected from consequences can be fun, but cannot make for a life well-lived.

Murray asserts that there are only four areas of life where such activities take place: family, community, vocation, and faith. The assertion is plausible, if only because Murray is careful to define these concepts broadly—a “community” need not be a neighborhood but can be geographically expansive, and “vocation” can include avocations or, more nebulously, “causes.”

The crux of Murray’s case is that the European-style welfare state undermines all four of these areas of life—and on a deeper level than even most conservatives now appreciate. The welfare state doesn’t just eat away at the material preconditions of these activities, but also detracts from their ability to provide a life well-lived.

—-In the lecture’s most powerful passage, Murray discusses how this deeper dynamic has been at work destroying the family in America’s poor urban communities—where something approaching a European-style welfare state already exists. Welfare makes it much harder for the family to be a source of deep satisfaction for men in these communities:

A man who is holding down a menial job and thereby supporting a wife and children is doing something authentically important with his life. He should take deep satisfaction from that, and be praised by his community for doing so. Think of all the phrases we used to have for it: “He is a man who pulls his own weight.” “He is a good provider.”

If that same man lives under a system that says that the children of the woman he sleeps with will be taken care of whether or not he contributes, then that status goes away. I am not describing some theoretical outcome. I am describing American neighborhoods where, once, working at a menial job to provide for his family made a man proud and gave him status in his community, and where now it doesn’t.

Welfare removes the difficulty from providing for the family, and therefore the importance of the husband and father.

And notice how, once family is undermined, two other areas of deep satisfaction—vocation and community—are undermined as well. The menial job loses its significance, and the now-superfluous father is no longer an important part of his community.

Murray is not saying that the welfare state removes absolutely all deep satisfaction from these areas of life. But the empirical evidence before our eyes, both in Europe and in our own poor urban neighborhoods, ought to convince us that the negative impact of the welfare state is extremely damaging.

—-…. faced with Murray’s argument that the welfare state makes everything too easy, a socialist might well retort: Should everything therefore be made more difficult, so you can have the deep satisfaction of overcoming difficulty? If the welfare state is bad, why are police good? Why not abolish the police so that walking home safely requires more effort (such as arming yourself) and can thereby become a source of deep satisfaction?

We can’t ultimately answer this question without distinguishing between morally legitimate and illegitimate ways of making things easier. Policing the streets makes our civilization more conducive to deep satisfaction because it is right. Coercive redistribution of wealth makes our civilization less conducive to deep satisfaction because it is wrong. Able-bodied people who live on welfare for extended periods are cheating—just as much as an athlete who bribes the judges. That’s why the welfare state has the corrosive effects it does.

—-Those who are now building the socialist utopia around us are convinced that their way is morally superior, and increasing numbers of Americans (especially in the rising generation) are beginning to think that they’re right—especially as they come to see unbridled capitalism as morally hollow and corrosive. The moral case for economic freedom—the rightness of capitalism in the context of an ethical culture—is indispensable if the disaster Murray rightly warns us against is to be averted.

It’s more or less received wisdom on the Christian Left that its socialist leanings are morally superior to those of the selfish, capitalist Right.  After all, didn’t Jesus come to minister to the poor and downtrodden?  Wasn’t His ministry about challenging everyone else to care for the poor?  Isn’t selfishness evil?  Aren’t we supposed to “give till it hurts”?  What about “widows and orphans” in the New Testament?  Aren’t Christians morally required to vote for politicians and policies that will provide more resources for the poor?  Wasn’t a form of communism the pattern of the early church?

These are serious questions, of course, and I plan to treat them seriously in upcoming posts.  If you’ve been lurking around this blog for awhile, you probably know what my general position is, but you may be surprised at some of the reasons.

The next post in this series is here.


Apr 26 2009

And Speaking of Janet Napolitano…

I was puzzled this morning while listening to the radio news.  That moral beacon for our time, Janet Napolitano, was issuing a statement concerning the recent outbreak of the new swine flu strain.  What puzzled me is why the Department of Homeland Security would be issuing statements concerning disease outbreaks.  Don’t we have a Federal Department of Health & Human Services, and under it’s auspices the Centers for Disease Control?  Call me silly but if there is going to be a government statement about a disease outbreak wouldn’t it come from the CDC?  Without doing any checking the whole thing seemed a bit strange to me.

So I decided to visit the Department of Homeland Security website and try to find an explanation.  This led me to a link called “National Strategy for Homeland Security”.  All well and good.  I find that there is overlap between CDC and Homeland Security, which I suppose makes sense in case of a biological or chemical attack (though I don’t think that is the case with swine flu).  What I found was more than an explanation about disease.  What I found was rather chilling, in fact.  At the bottom of the document was this statement:

In this spirit, it is important to acknowledge that this Strategic Plan is a living document and will be revised as needed to guide a dynamic Department and its ever-changing requirements.

I think I know what the government means when they call something a “living document”.  It means the government can interpret it to be anything they want it to be, anytime they want. (Similar applications have been used by members of the judiciary to find things in the Constitution that don’t exist.)

This certainly explains Napolitano’s statement about the swine flu.  It also explains her statement about “Right-Wing Extremists”. But I must admit I get a chill when I see the Department of Homeland Security also has a hand in immigration (wait.. don’t we have a Department of Immigration & Naturalization?).  Given this administrations propensity toward centralized governmental control, (read as “tyranny”)  is it unreasonable to think the Department of Homeland Security might simply declare amnesty for all illegal aliens claiming it would make it safer and easier to reduce potential illegal activity by members of the immigrant community?  That would certainly avoid those pesky votes required to pass amnesty legislation.  And I get a bigger chill when I read about these 70 new data collection centers known as Fusion Centers going up in every state, (do we have terrorist cells in every state?).  It is, after all,  just one small step to go from collecting data on potential terrorists to collecting data on dissenters, (or right-wing extremists – see my previous post).

Couple this with Obama’s almost entirely ignored campaign comment about a “civilian national security force” and I begin to understand a little more about how people become conspiracy theorists.

I admit I may still be suffering from a lingering case of post-election frustration.  Or do I see the framework of an Orwellian Big Brother system in the making that rivals anything the Soviet Union ever had?

Someone please tell me I’m paranoid and delusional!  (You don’t have to tell me I’m an extremist – Napolitano already took care of that!)


Apr 09 2009

Random & Sporadic Thoughts

Obama is proceeding with “immigration reform” (spelled a-m-n-e-s-t-y) in spite of the fact the American people clearly and unequivocally voiced their opposition to this the last time it was proposed.  Why?  Because amnesty and citizenship for illegals qualifies them for union membership.  And an increase in union membership is an increase in Democrat voters.  Obama has made no effort to disguise this as his motivation.

Obama is radically pro-abortion.  He is in favor of the killing of unborn infants with no restrictions, paid for with a government check.  He is also in favor of killing children born alive as a result of a botched abortion.  He is in favor of forcing doctors to perform abortions even if those doctors have a moral objection.

Does anyone remember Obama’s soft-spoken, relaxed and seemingly innocuous little comment to Joe the plumber?  “When you spread the wealth around, it’s good for everybody”.  We now see that what he meant was a wholesale destruction of capitalism and a premeditated effort to replace it with socialism.

Obama is robbing our future generations of any hope of prosperity by an orgy of federal spending unheard of in our country.

Obama is reaching into the board rooms of private companies and firing employees.  He has crossed a line between public and private sectors that is unprecedented.

Obama has just completed an international trip with the message of appeasement to our enemies.  When, in the course of human history, has appeasement ever worked?

Iran is on the threshold of becoming a nuclear power.  Is there ANYONE who thinks this is a good thing?

The laundry list of Obama appointees who were revealed to have unpaid taxes is shameful.  Is there ANY private citizen who could get away with this wanton disregard for tax laws by simply saying “Oops, I’m sorry”?

The Republican Party is currently populated with political eunichs.  Where is the voice of opposition?

Obama wants to socialize medicine.  If this happens it will complete his coup d’état and America as we know it will be gone forever.

Many citizens of this great country are simply left speechless by this apparently unstoppable. radical, ultra-liberal assault on America.  So many of us feel a combination of powerlessness and outrage in the face of what is happening.  Many are asking, “What can I do to stop this madness?”  Not all of us have a public forum from which to vent our frustrations.  Not all of us are eloquent of speech or skilled in writing.  But we all have family and friends.  We all live lives that are made up of relationships.  This is where the battle must be fought – one friend, one family, one realtionship at a time.  Those of us who do believe America is essentially good – that it was founded and made great on a firm foundation of Judeo-Christian beliefs, that it is a place where people can be free, that perserverance and hard work will be rewarded and that anyone can acheive the American dream – must share our convictions and persuade our family and friends that it is an America worth fighting for.  For outrage is not enough, feeling helpless and powerless is no excuse, and inaction is not an option.

Yeah, I know it’s starting to sound like there should be a choir humming “My Country Tis Of Thee” in the background.  I don’t care. It is a battle worth fighting…but we had better start now.


Apr 07 2009

Socialism in class

Tag: economy,humor,socialismharmonicminer @ 8:42 am

The following came to me in email.  I don’t know if this really happened, but it SHOULD be true, since, from what I know about college students, this is exactly what would happen:

An economics professor at Texas Tech said he had never failed a single student before, but had once failed an entire class. The class had insisted that socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, “OK, we will have an experiment in this class on socialism.”  All grades would be averaged, and everyone would receive the same grade so no one would fail and no one would receive an A.

After the first test the grades were averaged, everyone got a B. The students who studied hard were upset, and the students who studied little were happy.  But, as the second test rolled around, the students who had studied little, studied even less, and the ones who had studied hard decided they wanted a free ride too, so they studied little..

The second test average was a D!   No one was happy.  When the 3rd test rolled around the average was an F.

The scores never increased as bickering, blame, name calling all resulted in hard feelings, and no one would study for anyone else.  To their great surprise,all failed, and the professor told them that socialism would ultimately fail because the harder to succeed the greater the reward, but when a government takes all the reward away, no one will try or succeed.


Jan 28 2009

Forms of government, some truth about left and right

Tag: capitalism,constitution,government,left,politics,right,socialismharmonicminer @ 10:53 am
Not a perfect presentation, but much better than what’s typically on offer in the schools, or the media.

H/T: Jonah Goldberg


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