Health insurance is a crime. No, I’m not using a metaphor. I’m not saying it’s a mess, though it certainly is that. I’m saying it’s illegal to offer real health insurance in America. To see why … (more)
I just finished one of the best books I’ve read in a long time, so even though it’s been out since 2007 I’m going to review it: “The Age of Abundance: How Prosperity Transformed America’s Politics and Culture” by Brink Lindsey. A second subtitle reads, “Why the Culture Wars Made Us More Libertarian.” It would be a shame if that subtitle put off some potential readers because the book isn’t a libertarian tract, not by a long shot. It’s a fine piece of sociological analysis, rigorous yet readable.
I lived through the post-war transformation of America but that doesn’t mean I really understood what was going on. I understand a whole lot better now thanks to Lindsey’s book. My mother struggled through the Great Depression, by necessity developing a scarcity mentality, some of which rubbed off on me. But as postwar abundance spread, overcoming scarcity was the driving motivation for fewer and fewer people. Instead, mass affluence became the norm. My cousin in Ohio, for example, spent his entire working life as a diesel mechanic for Ford Motor Co. Over the years he and his wife acquired a nice house, a boat, three cars, and took cruises abroad. He worked very hard, but so did his forebears, and they never had what he had.
Mass affluence gave people free time and energy to explore the meaning of life. The New Age, or the Aquarian movement as Lindsey calls it, burst forth in the 1970’s. Having participated peripherally in some of the “personal growth” movements of the time, I can attest to two things. First, most of it was nonsense. I’m chagrined to look back on some of the groups I got into, and glad that I never went overboard with any of them. Second, I’m grateful for some of the genuine growth I experienced during those times. Crucially, I never questioned the work ethic that I inherited from my mother. I grew a beard, but otherwise dressed conventionally and held a steady job.
Almost nobody in the personal growth movements of the time understood that they owed their newfound freedom to mass affluence and that that affluence resulted from the capitalist system which many of them liked to deride. (An exception would be the tiny libertarian movement of the time which for some people was allied with the personal growth movement.) Most participants looked down their noses at hard workers like my cousin.
As it happens, the capitalist system not only survived the Aquarian onslaught but found ways to make a buck from it, adapting and softening its revolutionary fashions, music, and entertainment for a mass market. Capitalism, far from keeling over, co-opted the movement and moved on.
Then came the evangelical backlash, a movement I never had any truck with. The system survived the evangelicals’ attacks on personal liberties. The upshot, says Lindsey, is that while these two forces pulled at the capitalist center (or the free-market center as I prefer to call it), the system survived and has actually thrived. Out of it all, we are learning to balance liberation and responsibility. Here’s how he puts it on p. 316 of the hardcover edition:
Out of the antitheses of the Aquarian awakening and the evangelical revival came the synthesis that is emerging today. At the heart of that synthesis is a new version of the middle-class morality—more sober, to be sure, than the wild and crazy days of “if it feels good, do it,” but far removed from old-style bourgeois starchiness or even the genial conformism of the early postwar years. Core commitments to family, work, and country remain strong, but the are tempered by broad-minded tolerance of the country’s diversity and a deep humility about telling others how they should live.
As you can tell, Lindsey is a masterful story teller. He adds statistics occasionally; more would have been welcome. I doubt that he will ever get his material published in a sociology journal. Not only is he “politically incorrect” but his writing is too clear and too compelling. By the way, do you see the dialectics in this passage? Lindsey never uses the word, but there it is: Aquarian thesis, evangelical antithesis, libertarian synthesis. Fascinating.
I cast my first vote in 1964, shortly after turning 21, the legal voting age in those days. I voted for Barry Goldwater who, although he described himself as a conservative, didn’t fit that category by today’s standards. He was for free markets but he was not particularly religious and he held a laissez-faire attitude toward alternate lifestyles. He was, unfortunately, a war hawk, so he wouldn’t fit very well into today’s libertarian category, either.
Four years later I voted for Richard Nixon, sad to say. I somehow thought he was for free markets, being a Republican. I was cured of that delusion by a wakeup call at 8:15 AM on Monday, August 16, 1971. That was the moment I saw the headline in the L.A. Times announcing Nixon’s dastardly Sunday evening perfidy: price controls, closing the gold window, and an import tariff surcharge. All of these statist actions very quickly played out disastrously. Their personal import was to cure me of any notion that Republicans were necessarily friends of liberty. I became a libertarian that Monday morning and never looked back.
Of course that decision meant never again voting for a winner. I voted for John Hospers in 1972, and he actually got one electoral vote from a renegade Republican elector, Roger MacBride, who was the LP candidate in 1976. Ed Clark’s 1980 campaign on the Libertarian ticket, generously funded by the Koch brothers, gave me brief hope for the new party, which we all know has come to naught. I’ve “wasted” my vote on Libertarian candidates ever since. Thanks to Proposition 14 in California, I can only vote for Libertarians in the primary elections; minor parties are shut out of the general election. In many races the general election is a contest between two Democrats. I resist any urge to vote for the lesser evil of the two so now I just leave most of my ballot blank and vote against all tax measures.
If we must have voting, I offer a couple of common-sense reforms:
- Raise the voting age to 30. People under that age are clueless.
- Require voters to pass a stiff qualification exam, something far more rigorous than the simple literacy tests of yore.
- Institute a stiff poll tax, at least enough to cover election costs. Why force non-voters to pay?
I’m tempted to throw in land ownership as another criterion, but the foregoing should suffice. Of course this reform would leave many people feeling disenfranchised, but so what? Most people are far too ignorant to judge issues and candidates rationally and should be kept away from voting booths at all costs. Anyway, the system would leave a path open for people to earn enfranchisement by working hard to satisfy the above criteria.
Would I apply for enfranchisement under my proposed system? No way; I have better things to do. Will I vote this year? I suppose so. I have no idea what will be on the ballot, but there will doubtless be some lame-brain propositions to vote against.
Since only individuals act, only individual actions can be judged. Groups, governments, corporations, etc. are not acting entities and therefore cannot be judged. The individuals who act under the aegis of such groups can, of course, be judged. So what could social justice possibly mean?
Along comes the redoubtable Wendy McElroy with an answer. It is “forced distribution of ‘privileges’ across society with an emphasis on providing wealth and opportunity to classes of people who are considered to be disadvantaged.” It matters not whether a particular set of circumstances is the result of voluntary interactions. Individuals who are female, have dark skin, low income, etc. qualify automatically as victims. Examples of redress include affirmative action and progressive taxation.
Enough from me. Please go read Wendy’s post.
That’s because the vaccine didn’t exist when I was a kid. I got the disease instead, leaving me with natural immunity. I think my chums all got it too and it amounted to a few days of discomfort, no big deal. But there must have been some who got it and suffered serious consequences, even death. News just didn’t get around in those days (ca. 1950) like it does today.
It’s terrific that a vaccine now exists, but like all vaccines it entails perverse incentives. When nearly everyone is vaccinated, there is little incentive for an individual parent to get it for his child because the disease can’t spread through a vaccinated population, and at least some incentive not to get it: cost, bother, and a remote chance of ill effects. And if enough parents skip the vaccine, the percentage of vaccinated children may fall low enough to permit the disease to propagate as, in fact, it has begun to do lately in some areas.
The solution for public schools is simple: require vaccination for all entering school children. As long as we have public schools, there have to be rules and this would be a quite sensible rule. For private schools the situation is trickier. Should the government require private schools to require vaccination? I think not. Most parents would have sense enough to keep their kids away from such schools. A no-measles policy would be a selling point for private schools.
News from the department of “life is bigger than art:” A few days ago I posted a fictitious account of a future Wells Fargo Bank operating on a revived gold standard. Turns out the real Wells Fargo, now a regular large commercial bank with its roots in the California gold rush, has a branch in downtown San Francisco at the site where the bank was first opened in 1852. The branch had an exhibit of historic artifacts, including gold nuggets from the gold rush era. I say had, because last night thieves rammed an SUV into the lobby and made off with the nuggets!
All of which underscores the fact that security is among the real costs associated with a gold standard. There is no law of nature that says free banking has to be based on gold, as I pointed out in my post. The market would, if free to do so, sort out costs and benefits and find the sort of system or systems that best satisfies consumers.
I love Wells Fargo; They Hate Me.
While I have this blog window open I’ll add some unrelated comments about Wells Fargo. I am a happy customer and I credit this to the stiff competition among banks at the retail level. I regularly get solicitations from banks offering $100 bonus to open an account, with strings attached, of course but I stick with Wells Fargo. At the macro level our current banking system is gravely flawed but it works well for us retail customers.
I get free checking, a handy web site, and ATMs all over the place. When my credit card was hacked recently, they replaced it promptly and took my claims about false charges at face value. My average credit card balance last year was nearly $4,000 and I paid zero interest. That’s because I pay it off at the last possible date, which is 25 days after billing. I pay an $18 annual fee but got $300 in cash rebates last year. I never pay late fees or penalties of any kind.
I do not have a savings account with Wells Fargo because those accounts are a joke. Their most popular savings account yields (drum roll) 0.01%. Not one percent, but one hundredth of one percent. For every thousand dollars I might keep in a savings account, I would get ten cents in annual interest, taxable. I do, however, hold shares of Wells Fargo preferred stock which pay 6.8% current yield (for you experts, a somewhat lower yield to call). The shares appreciated about 70% since I bought them at the bottom of the Great Recession.
So I am a money loser for Wells Fargo. They earn merchant fees from my credit card use and that’s about it. They count on their average customer’s ignorance and lack of financial discipline to generate fee income and to carry high-interest balances on their credit cards. Dear reader, if that describes you, don’t despair. You can get out in front of the wave and let the banks work for you, not the other way around. It just takes a little knowledge and some discipline. Most important: if you can’t pay cash for a purchase (or use a credit card paid off before interest kicks in), you can’t afford it! That includes cars. Save up your money and buy a junker. Mortgages are OK for home purchases because of tax breaks, but even there, start with a healthy down payment.
Here endeth today’s sermon. Go in peace and freedom!