Around the Web

Be back to blogging soon. Hope these tide you over.

Speaking of tides, co-editor Fred Foldvary on regulations and swimming pools.

NAFTA has reduced income inequality in Mexico. Just think of what could be created if we continued to liberalize our relations with our neighbors (especially our labor markets).

Hypocrisy in the Democratic Party. See if you can spot it!

The myth of socialist Sweden. Libertarians have been saying this for years, and yet…

May Day: The Conspiracy of Silence Around the Romance of Evil. A nice debunking of the persistent lure of Communism.

The Future of ObamaCare: Massachusetts Edition

I apologize for the lack of activity on this blog lately. School is either just out or finishing up, so I’m sure blogging will pick up in a few days or so.

Anyway, I found this article via Twitter the other day. It’s about the debate going on in Massachusetts about RomneyCare and how to control the costs that are spiraling out of control. Unfortunately, the article is a bit skinny on details and I am sure the debate is focused on keeping the status quo or giving the government an even greater role in health care markets, but I found this line from a state representative (and Democrat) to be most informing:

“The market is most certainly not working. The market is absolutely broken. Health care costs have been rising at 6.7-8% annually over the past decade.”

Yikes. I have a question: if you break a man’s legs and then tell him to run a five-minute mile, will he succeed? The rising costs, of course, are the real problem here, and one that won’t be fixed by introducing more incentives to keep prices both ambiguous and in some cases arbitrary.

RomneyCare, for those of you who don’t know (on this blog? yeah right!) has served as the blueprint for ObamaCare and it involves a nasty combination of forcing people to buy to buy insurance and subsidizing those who do not (or cannot due to the predictable price increase of insurance after the mandate went into effect).

There is no doubt in my mind that actual market-based solutions were proposed in the debates. Here are a couple via economist Tyler Cowen: Continue reading

“Stocks Slammed as Dow Erases 2012 Gains”

That’s the title to a headline piece over at CNN.

The Dow Jones industrial average (INDU) plunged 275 points, or 2.2%, the biggest one-day drop since November. The blue-chip index gave up all its gains for the year, and is now 99 points below where it finished 2011. The S&P 500 (SPX) lost 32 points, or 2.5%, and the Nasdaq (COMP) dropped 80 points, or 2.8%.

Ouch. The cause of the plunge?

“The U.S. employment report was simply terrible,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.

The May jobs report showed only 69,000 jobs were added to payrolls, less than half the 150,000 jobs forecast by economists surveyed by CNNMoney. The unemployment rate ticked higher for the first time in a year, rising to 8.2%.

I take three things away from this: Continue reading

Immigration and the Welfare State: Incompatible (With A Comment on the Middle East Too)

A Facebook friend of mine (who I met at a FEE seminar a couple of years back) posted the following link in Forbes about British plans to begin targeting certain citizens of states within the EU in regards to immigration. Individuals from states in the troubled Latin region of the EU would no longer be welcome to reside in Britain. The cause of this:

However, immigration is a sensitive issue for Britain which runs one of the most generous health and welfare protection schemes in Europe.

Can’t be much clearer than that. Along with the fiscal problems that welfare programs create for societies, there are also political and social consequences to be had. For one thing, the very notion of a welfare state creates a type of “ours, not theirs” mentality within a populace, which no doubt contributes the shocking nationalism and racism to be found everywhere in Europe.

Although welfare programs in the US, Australia and Canada have to deal with these social consequence, in the Old World the welfare state also taps into a sort of tribal conscience that the Anglo world cannot really fathom. I hypothesize that the “tribal identity” is actually the main factor behind the stubborn refusal of the welfare to state to go away not only in Europe but throughout the entire Old World. Continue reading

Some Mistakes Have Been Made

I just finished up the readings for a class on the history of the modern Middle East. The main book issued is one conveniently written by the professor of the course (James Gelvin) and is aptly titled The Modern Middle East: A History. Below is an excerpt that I think sums up the problems facing the Middle East today:

American policy towards the Middle East [after World War 2] was instrumental in promoting both development and the civic order development was to sustain […] To promote development, the United States adopted a multifaceted approach derived, in good measure, from its own Depression-era wartime experiences.

Ooops.

Here is Murray Rothbard’s America’s Great Depression. Now, I know libertarians are infamous for condescending suggestions to “go read a book”, but I don’t think we can really help it sometimes. Hoover’s interventionist policies and Roosevelt’s New Deal were disastrous for the American economy. Most, if not all, of the Middle East’s problems today can be traced to the institutions currently in place, and these institutions in their turn were created and codified based upon models that had entirely failed the West.

For the record, the developmentalist approach led directly to, you guessed it, economic nationalism and political despotism. You can find a convenient ranking of the world’s states based off of GDP (PPP) per capita here. According to the IMF, the US ($48,387) is ranked 6th in the world (the US also repealed or rebuked many of the Depression-era policies of the Hoover and Roosevelt administrations; the few that remain are among the most pressing problems American society faces today). The world average is $11,489. Egypt is ranked 104th, Iraq is 128th, Iran is 69th (coming in slightly above the world average at $13,053), and Syria is 118th.

The Future of NATO

The recent NATO summit in Chicago that produced absolutely nothing has opponents of the alliance smelling blood. Indeed, the only thing that the Chicago summit may have produced is a healthy recognition by many factions that the future of NATO itself is increasingly in doubt. This should come as no surprise to any of us here at the Notewriter’s consortium, but in some ways this development is surprising.

Even mainstream pundits, ensconced as they are in Beltway ideology, have begun to notice that the alliance is on its way out. From CNN’s Security Clearance blog (“security clearance”? Really?):

Europe’s collective fatigue with NATO’s globetrotting has often left the United States shouldering most of the burden, which is considered one of NATO’s greatest shortcomings. The United States now covers 75% of NATO defense budgets, while the majority of allies don’t even allocate NATO’s benchmark 2% of gross domestic product to defense.

Sharp reductions in European defense budgets have only increased dependence on the United States.

While realists have been bemoaning the alliance for decades, it has become apparent that the reality of the situation has finally smacked some sense into the Beltway consensus. This must be kind of like how libertarians felt after the collapse of the Berlin Wall in the late 1980’s.

Like the collapse of the Soviet Union, though, there are many things to be worried aboutwith the impending collapse of NATO. The major issue that the US should be worried about is deteriorating relations with Europe. While the American taxpayer got stuck subsidizing the defense of Europe for well over half a century, the relationships brought about by working together have proved fruitful, and in order to keep these relations on good terms, Washington should undertake policies that will further integrate American and European societies: freer trade.

There is no reason why there shouldn’t be a free trade zone between the whole of the US and Europe on the scale of the US itself or the EU (the same goes for the US and its nearest neighbors: Canada, Mexico, and the Caribbean).

One thing that American policymakers should not fear is the rise of a competitor in the form of a European superstate. This fear (or hope, if you are an American socialist) is off-base. Just think of Europe’s sclerotic answers to the worst economic crisis in its history, and then imagine a European Union trying to implement a common, cohesive foreign policy on a global scale like that of the US.

It isn’t possible. Not even states with highly centralized power structures like China can compete with the US in this regard, and the thought of Brussels actively trying to compete with the US in international relations is ludicrous.

The demise of NATO is ultimately a good thing. There is no need for a collective security alliance to combat a menacing Russia any longer. Moscow’s empire of Soviets is long gone, and its focus in the near future will be domestic and along its borders. NATO’s demise will also save the US a lot of money, and will spare the European people from the negative effects (like terrorist attacks) associated with supporting a worldwide hegemon. We can only hope that NATO’s demise comes sooner rather than later, and that each party involved will recognize that continued relations with each other, especially in regards to trading policy, are still vital to peace and prosperity.

What Would You Do?

I picked up a five things to-do list from Grover Cleveland over at Pileus Blog if he were supreme ruler of the land. He in turn got his 5 from a prompt by Angus over at Kids Prefer Cheese. If readers have any more Top 5 lists they’ve come across let me know and I’ll link them accordingly.

Anyway, here are Angus’s Top 5: Continue reading

Farewell Lecture (Congratulations!)

Hey everybody,

Co-editor Fred Foldvary is retiring from Santa Clara University and will be giving a farewell lecture on June 6th. The details:

Dear CSI personae,

Fred Foldvary, CSI Director, will retire from SCU on June 2012.

 

His farewell CSI public lecture will be held

on June 6, 7-8:30 PM, Lucas Hall 126 the Forbes Family Conference Center.

 

Foldvary’s lecture will be on the question:

“What gives you the right to exist?”

If you had to prove it on the penalty of death,

how would you answer?

 

See you there,

Fred Foldvary

ffoldvary@scu.edu

We hope everybody who is in the Silicon Valley at the allotted time can attend. Here is CSI’s website. Here is a partial list of Dr. Foldvary’s academic publications over the years (hopefully they are ungated). Here are his writings in the Freeman. Here are his writings in the Progess Report.

Congratulations Dr. Foldvary, you finished the rat race in one piece!

Jacques Delacroix, 9/11, and Ron Paul the Truther

Hey all,

I am in the midst of midterms, but I thought I’d direct you to our blogger’s most recent charges against Congressman Ron Paul: he is a “truther”!

I don’t have much to say on the topic, because Delacroix has been known to exaggerate when it comes to Ron Paul, but I thought I’d give his views a shake.  If any of our readers are “truthers”, by the way, you should probably get your head checked.  If you think have a good case for an inside job, though, be sure to lay it out here on this humble blog.  We like controversy and discussion!

Around the Web

Co-editor Fred Foldvary on the Buffet Misrule.

Mona Eltahaway, an Egyptian-American columnist who was detained and sexually assaulted by Egyptian security forces during the uprisings, writes about Why They Hate Us.

In the Atlantic, Conor Friedersdorf explains how student debt forgiveness is just another subsidy to the rich.

Will Wilkinson, writing in the Economist, on how Fair is Fair.

Guess who else got their hands on Libyan weapons?

Around the Web

Co-editor Fred Foldvary is participating in a symposium over at Bleeding Heart Libertarians.  Check him out.

Michael Mungowitz bags on Greece and the Euro Zone.

Zach Gochenour has a complimentary follow-up piece on Dr. Foldvary’s essay: Progress or Poverty: The Economics of Land and Discovery.

All Hail Azawad.  A blogger obsessed with maps from the New York Times writes about the new state’s prospects .  I have written about Azawad here, here, here, and here (oh God I hope I don’t sound like Walter Block!).

Jacques Delacroix provides even more insights into the French elections and its implications for the Euro Zone.

The collapse of the Euro Zone is kind of a big deal.  Personally, I hope the collapse only destroys the currency of the zone, and not the ability of its members to trade and work freely anywhere throughout the zone.  I also want a pony and never-ending supply of really good weed.

The European policymakers and technocrats should not have been so brash as to believe that they could unify Europe politically.  Not only is that bad for democracy, but it has also given the underlying principle behind the EU – free trade – a very bad name.  Repeat after me: large polities that are economically united and politically divided are good for everybody, but large polities that are economically and politically united are bad for everybody.

It’s even worse when you throw in concepts like Old World identities such as ethnicity into the mix and try to get everybody to play nice through the democratic process.

French Elections: Redux

French elections are ongoing.  Here is Dr. Delacroix one more time:

The first thing to know is that France is a country where common conservative and libertarian ideas about market efficacy are rare. A conservative stance is absent from the public discourse.

I think Hollande is going to be elected. He is the worst the French Socialist Party has to offer. He has never done anything in his life, like our current president, or worse. He does not even have the merit of being a member of an interesting minority. He is the pale consort of a former big loser in a French presidential election (Segolene Royal). How much lower can you get?

All this because Sarkozy annoyed too many people, swing voters, with his bad manners and because Strauss-Khan couldn’t keep his second thinking tool where it belongs long enough. Yes, Strauss-Khan was going to be the Socialist candidate. He understands money, unlike Hollande who knows nothing about money except that the “rich” have too much of it and that it’s the root of all evil.

Hollande is the worst of a Socialist Party that has had few new ideas, has not updated itself, in the past thirty years. However, his colorlessness, the fact that he barely exists may be a blessing. It’s possible that economic technocrats in his Continue reading

Around the Web

At Last, Some Bright Spots in Indian Country (if you can’t view it, just copy and past the title and Google it).

The enduring failure of democracy promotion abroad.

Borderlines. A blog about maps.

Secession, Small States, and Decentralization: A Rejoinder to Dr. Ayittey

Dr Ayittey has kindly responded to my rebuttal.

You can’t mix secession with decentralization of power; oranges and apples. Your statements that “Smaller states would be much better for Africa than the large ones in place” and “The more “Little Djiboutis” there are, the better” are ridiculous. At a time when small countries are coming together to form larger economic blocs – EU, AU, ASEAN, Mercosur, etc. – you recommend going in the other direction: The creation of more little states that are not economically viable. Would you recommend the break-up of the US into 50 little states? Check your own history.

The original US Constitution was inspired by the Iroquois Confederacy. Under that Constitution, the South elected to secede, which led to the Civil War (1861-1865). Why didn’t the US allow the South to secede? It would have led to GREATER decentralization of power.

Now, I want to let everybody know that this exchange is happening over Twitter, so be sure to take Dr. Ayittey’s response in stride and in context.

First up are his first and last statements: Continue reading

Scotland, the Sudan, and Federalism Done Right

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I have been blogging a lot lately on political decentralization and secession as tool for furthering this process.  I am one of those people who thinks that Karl Marx had a lot of stuff right, even though he got some other important stuff very, very wrong.  His prediction of the withering away of the state is something that I think will eventually come true, and I hope it does, too.

Anyway, I don’t mean to suggest, when I advocate secession as a way to further political decentralization, that every time secession does happen that it will turn out great.  Just look at the US Civil War.  Or we can look at what is going on in parts of the world today.  Here is an excerpt from an Economist report on the latest developments between Sudan and South Sudan (what an incredibly dull name for a new country, by the way…): Continue reading