A Drip of Local Flavor

Adam Magoon Current Events, Economics, Politics , , , ,

The city of Little Falls, New York is missing nearly 400,000 gallons of water.

Located about twenty-five miles from me; the small central New York city is unable to locate over half of water that had been distributed in 2011. This amounts to about $300,000 dollars in wasted tax payer dollars and on top of that the city is expected to raise water rates.

Unsure whether the losses are caused by leaks, faulty meters or anything else the lead plant operator Daniel Benett says “”Some of it may be going in the ground. Some of it may be not captured by meters. We don’t really know. That’s why we’re out trying to fix as many leaks as we can.”

The cost of replacing the system is reported at a million dollars a mile which Benett assured citizens “The labor is the smallest cost ’cause the guys have to be here to work anyhow.”

Which  leads me to wonder what are those workers doing on a regular basis if it would cost no additional labor hours to do additional work.

Lost Innocence.

Adam Magoon Liberty , , , , , , , , , , , ,

One of the defining features of a “free society” is that the citizens in such a society are innocent of crimes unless proven otherwise by a body that can be trusted to be impartial in its deliberations. In other words, the right to a fair trial and the belief in innocence until guilt is proven. This natural right was guaranteed to United States citizens in the U.S. BIll of Rights under the 4th, 5th and 6th amendments of the Constitution.

Time and again in modern America that right is ignored by those whose job it is to protect it. Recently a particularly vile example took place near Houston, Texas. The article speaks for itself but to make a long story short police invaded the personal lives and property of two individuals under no legal pretense. The message is clear, we are not secure in our persons or our properties if the police decide we are of particular interest to them. These officers will likely go unpunished and even if disciplinary measures are taken they will not be the same measures as if, lets say, I removed two people from a car at gun point, bound them, and held them hostage for eleven hours. There are two sets of laws, one for the people and the other for the state.

Distribution of Wealth — A Distortion of Focus

L. A. Repucci Liberty , , , , , , , , , , , , , , , , ,

A ‘sociology’ paper by LA Repucci

Wealth vs Wages

Much hay is made of the distribution of wealth in the modern United States.  Recently, the Occupy movement has protested the accruing affluence of a shrinking number of individuals that constitute the top ‘1%’ of wealthy within the country.  Data suggests that the top 1% of income earners in the country represent a myriad of professions, investments, and financial instruments as revenue streams, with the largest portion (30.9%) represented as the executive/corporate professionals, as shown by graphic 1.1 below:

1.1: Top 1% of Wage Earners by Profession, US.  Source, Wikicommons

Analyzing the data from this table paints a picture of broad distribution of wage incomes across a myriad of industries, but fails to account for the disproportionately massive amounts of wealth that aren’t generated by salaries at all, nor are they representative of the fact that the wealthiest legal entities within the US aren’t people — they are tax-sheltered corporate entities:

1.2: Corporate Profits vs Tax Liability

The Corporate Model

Corporations are paper entities recognized by the state as legal persons.  They exist in order to generate and accrue revenue, and pay stakeholders.  Unlike natural persons, corporate entities are immortal.  Instead of competing on the open marketplace for revenue, the most successful and largest corporations have discovered a way to cut the market out of their revenue streams altogether.  It is simply easier and more cost effective to lobby the state to enact laws that protect their revenue stream and squash market forces than it is to operate within a competitive market.  Progressive, draconian tax structures enacted as a hedge against corporate domination of wealth may be adopted by government in an effort to increase tax revenue from the corporations, but in reality, simply provide further incentive for corporations to allocate resources in an effort to mitigate or outright eliminate their tax liability within the US.  For example, Google, the fastest growing and wealthiest of the new tech giants, pays a majority of it’s taxes in Ireland and Bermuda — nations with a far friendlier income tax policy than the US — and bypass their US tax liability almost entirely due to the so-called ‘loophole’ in the income tax law, resulting in the federal government’s lost tax revenue from one of the largest US corporations in history. This leads increasingly to a larger percentage of individuals, sole proprietors and small-to-mid cap businesses shouldering an increasing burden within the tax structure as shown in 1.3 below.

1.3

The State’s Culpability

The new corporate model of tax evasion coupled with astronomical growth in profits-to-cost relies heavily on the government’s complicit action with regard to tax policy and recognition of corporate person-hood.  It is in a company’s interest to make money — but to ‘saw the ladder off’ below them, they require government cooperation to enact laws that make tax sheltering and corporate personhood possible.  This culture of lobbying and outright appropriation of the legislative process has progressed to the point that there is little differentiation between the state and the corporation.  Insurance companies write health care laws, and banking institutions write tax laws and set monetary policy.  The roots of this collaboration run deep through US history, crystallized notably by the creation of the Federal Reserve Bank in 1913 on Jekyll Island by J.P. Morgan, Paul Warburg and other global-level financiers with the collusion of Senator Nelson Aldrich, who had close ties to both Morgan and Nelson Rockefeller. (Further reading: ‘The Creature from Jekyll Island’ by E.B. White)  The Federal Reserve Act of 1913 was signed into law by then US President Woodrow Wilson, and effectively turned over control of the nation’s monetary policy, issuance of currency, and anti-market fixing of interest rates to a private bank set up as a for-profit corporation called the Federal Reserve Bank, effectively undoing the American Revolution and the work of his predecessor, President Andrew ‘Old Hickory’ Jackson.  The ‘Fed’ as it is known today, continues to be the sole issuer of paper money accepted for the payment of taxes in the US.  While the people remain ‘free’ to trade in whatever currency or barter they choose, all state and federal taxes in the US must be paid in Federal Reserve Notes, giving the Fed a monopoly on currency.

The Corporate-State Combine

A century of the above-outlined activities of corporate entities have led to an overlap between the banking community and government that often goes understated.  JP Morgan/Chase market their banking services directly to government, as clearly outlined in their marketing materials: https://www.jpmorgan.com/pages/jpmorgan/cb/government. It is no surprise that most of the nominees for president, cabinet members, the Fed and legislators exist in a professional ‘revolving door’ environment that moves them from banking to high office and back over the course of their careers.  For example, both major party candidates for president in the last 20 years have had direct professional ties to JP Morgan and Goldman Sachs.  This ‘partnership’ has led to a century of collusion between government and banking, taking an ever-increasing cut of the total wealth out of the real market, and enriching our legislators to the point that many of the wealthiest counties in the nation now surround Washington DC as evidenced in the data provided.  This corporate-government combine acts as a siphon, sucking wealth out of the population through inflation, currency devaluation and increased tax burden, and enriches the corporate interest through outright gifting (TARP, Stimulus, Bailouts, etc) to the wealthiest of the wealthiest of the 1%.  Warren Buffett, one of the wealthiest men in the world and owner of Berkshire Hathaway Ltd. championed bailouts while his firm received the largest portion of us taxpayer money from the TARP program. Buffett himself pounds the table for higher tax rates, while he and his company manage to ‘limit’ their tax liability and avoid paying taxes owed back to 2002.  Mr. Buffett is a major campaign contributor to our current President, Barack Obama.

Solutions

With the compound factors of massive increases in government spending (roughly $20,000 annually per citizen), and the steady evaporation of corporate tax liability (less than 40% of the total tax base of businesses in the US is covered by large-cap corporations) the problem of the distribution of wealth in the US is starkly apparent.  To identify what is going wrong in the economy is one thing — providing real solutions is another entirely.  Both major political parties offer their version of the fix — the right would suggest cutting government spending on services and lowering the tax base to broaden it and encourage large cap corporate interests to pay their income taxes in-country.  The left advises steeply progressive tax laws on private citizens (one would assume the left would suggest tax reform for large corporations, but the democrat party has been in charge of the tax law for decades with no such legislation to speak of), and consumption and indulgence taxes on goods and services, combined with further devaluation of the dollar through Quantitative Easing (QE) and raising (or outright elimination of) the debt ceiling.

While it would seem that these two paths are the only potential ‘fixes’ to our nation’s distribution of wealth problem, neither of these plans would provide real, permanent relief to the average citizen who is continually squeezed out of the middle of the economy, with an ever-increasing portion of their revenue taken by the state through tax, and devalued by the state through inflation.  Indeed, it would seem that our problem is not ‘distribution of wealth’, but rather, the redistribution of wealth through taxation and devaluation of the dollar.  Looking at the problem from this perspective, the solutions become simpler and multi-fold.

Monetary Policy/END THE FED

Should the Federal government enact law that checks the monopoly power of the Fed to issue currency by accepting in payment of taxes any and all used currencies in the market, the nation would be free to adopt currencies other than the dollar.

Bitcoin, a decentralized crypto-currency, is a notable example of a market solution to the problem of distribution of wealth.  Though Bitcoin has it’s detractors and a relatively small market cap, it’s value has continued to skyrocket on the open market, and is in the early stages of large-scale adoption and public use.  Bitcoin requires no bank or government to ‘mint’ it as a currency, and is freely traded electronically between users with no bank needed.

Similarly, gold and silver have been used for thousands of years the world over as viable hard currencies.  Hard currencies cannot be devalued through running of a printing press like paper currencies, nor through the click of a button like crypto-currencies.  As there is a finite amount of gold and silver in the market, it’s value has a ‘hard floor’ — it is always worth at least it’s value as a raw material.

The fact that the Federal government will only accept Federal Reserve Notes (which, in itself violates the constitutional directive for the US Treasury to mint coin, not a private bank) in payment of taxes effectively gives the FED a monopoly on currency.  The last US President to order the Treasury mint silver certificates was John F. Kennedy.

Commercial Policy/END CORPORATE PERSON-HOOD

Corporations are legal ‘persons’ with the ability to lobby the legislature directly, resulting in tax laws and policies that favor them over natural citizens of the US.  This has resulted in laws being written directly by corporations, including insurance companies’ authorship of the Affordable Healthcare Act.   The insurance companies’ stock has risen by a factor of 2-5 due to the implementation of the law, while the cost of health insurance for the average citizen has skyrocketed.  Ending corporate person-hood would go a long way to ending the power of lobbyists to purchase legislators, and result in elected officials representing the people who elect them.

Tax Policy/END THE TAX

‘Taxes’, ‘tariffs’, or any other name the state wishes to apply, are simply pseudonyms for extortion — that is, the violation of individual property rights through threats of aggressive reprisal.  When private entities such as a thief or mob perform the same action, we rightly call it theft.  It is completely inconsequent what a thief does with your money once he has violated your rights to acquire it, even if he assures you that it is to your personal, direct benefit that he take your property from you by force.  To fix the distribution of wealth, and as well to return to a moral society where one does not live on the property of his neighbor through state-sponsored theft, all taxes should be eliminated.  If a portion of the population would like to provide a service or product to their neighbors, let them do so legitimately through voluntary free association and exchange.  The state spends more than it takes in in taxes, and floats the rest on credit.  This activity has crippled the purchasing power of the dollar, which has lost 99% of its total purchasing power on the market in the 100 years the Fed has controlled the nation’s currency.

Bibliography:

Wikimedia Commons. N.p., n.d. Web. 04 Dec. 2013.

JP Morgan.com “State and Local Government.” N.p., n.d. Web. 06 Dec. 2013.

Cogan, John F. Federal Budget Deficits: What’s Wrong with the Congressional Budget Process. Stanford, CA: Hoover Institution, Stanford University, 1992. Print.

The Unwritten Rules of Integrity in the Free Market

Wood Liberty

Benjamin Franklin is quoted as saying, “Only a virtuous people are capable of freedom.” The Founding Fathers alleged many times that liberty would not work unless they had a morally righteous citizens, and well-informed intelligent citizens. Part of economic liberty and the free market, and the way to ensure it works, runs by unwritten rules. It assumes that people will take responsibility for their own negative actions.

According to studies done by the Huffington Post and other sources, it can be estimated that almost one half of Wal-Mart employees live off of public assistance because their wages are too low to function in today’s society (food costs, rent costs, etc.). As a result, the petite bourgeoisie, middle-middle class, and blue-collar working-class fund the public assistance through tax dollars for employees of a one-percenter, the Walton family. The Waltons are number six on Forbes list of American billionaires, and yet the middle classes have to fund the survival of their proletariat abyss.

The behavior of the Walton family is inherently no different than a man who impregnates a woman, and abandons her and the child, causing the child and its mother (in many situations) to require a subsidized income from the taxpayers. The father’s behavior is now at the expense of everyone else. The child’s father cannot just walk away and say “oh, don’t infringe on my liberty,” and neither should the Waltons (and other shareholders) be able to.

In the United States, the Founding Fathers intended for a particular code of ethics to be followed. Keep in mind that ethics is not synonymous with morality. It should be assumed that a free market capitalist will practice ethics by taking responsibility for his actions, cleaning up after himself, and taking care of his workers as needed. This has nothing to do with either social justice or human rights, but is simply a civic responsibility to prevent a burden on society. Here is the economic libertarian argument in favor of self-regulation, and eventually raising of the minimum wage.

No matter how many times an Ayn Rand libertarian simply screams, “economic liberty, economic liberty,” or “the Walton family owes nobody higher wages in a free market,” we are still living in the cynical real world that exists as of now. And in this world, the reality is that the middle classes are paying for the public assistance of Wal-Mart employees because the shareholders and executives do not want to raise their wage. Forbes list billionaires are embezzling money from the working US taxpayer. That means that the Waltons are objectively a parasite on the economy.

Of course there are many other things that must be taken into account for the bigger picture. Raising wages always inevitably means raising prices, no matter what. Wage-raising means nothing, because the product purchased will take the same percent from the wage as it did when the wage was low. It causes inflation. Many Ayn Rand fanboys and Austrian economists would also make the argument that, “the Waltons pay so much in taxes for people’s food stamps that they can’t afford to pay workers any more. If food stamps were cut, they would pay more.” This is an issue involving serious mathematical analysis of markets and economics and cannot be fixed with a simple world view, whether it is blind faith in Atlas Shrugged or the bleeding heart of a social justice activist.

Well Atlas has not shrugged as of yet, and public assistance is not going away anytime soon. Until it does go away, then all capitalist bosses who underpay their workers causing them to get on public assistance, must be viewed as economic parasites, and the enemy of economic liberty and the middle classes. This is not small mom-and-pop business, but big, heavily regulated corporations, especially Wal-Mart and McDonald’s.

Just because a capitalist SHOULD do something does not mean that the Federal government should MAKE him do something. Here is an example of the civic responsibility of a successful capitalist. If a worker breaks his leg on the job, that capitalist employer should pay to fix his leg, so the worker he can get back to work, and provide for himself. A.S.A.P. If the capitalist just says “oh sorry… it’s economic liberty,” then the worker will get let go, will get on public assistance, and will objectively become a burden on the taxpayer. But that capitalist who caused that situation is the far greater parasite.

Costco is known to pay their workers a fairly high wage. They also sell more expensive, high quality products wholesale. That is simply called a high standard of living. A well-paid worker buying a well-made product. This is also known as a first world economy. You can be an economic capitalist and still a social collectivist. McDonalds and Wal-Mart produce a third world product. As a result, they pay a third world wage, they sell to third world markets, and create a third world society. They deteriorate American society and make it rot. In order to make a little extra profit, Wal-Mart and McDonalds are literally willing to let the US devolve into a cesspool.

There are many different ideologies on the left and the right who support this idea. Just because a market is free does not mean the market is free to take a dump everywhere and turn society into a cesspool for the sake of “economic liberty”. For example, Dr. Ron Paul, as would be expected of someone his age, believes in American-made, and an end to outsourcing. That does not mean he believes in federal regulations enforcing that scenario, but it is still the world he WANTS to see. Pat Buchanan, who identifies as paleoconservative instead of libertarian, believes in US non-intervention, closed borders, and economic nationalism. He ran for president unsuccessfully on the Reform Party ticket in 2000, like Ross Perot did in 1996, who also cannot be called a libertarian. On what is known as the “far right fringe,” or ultra-nationalism, there is great hatred towards free markets, libertarianism, Ayn Rand, and borderless capitalism, mostly due to illegal immigration, outsourcing, and backroom corporate deals with China.

One such capitalist from the 20th century was Mr. Henry Ford, a right-wing extremist with voluntarily progressive economic practices. Henry Ford is well-known for his paranoid rants about “the Jews” infiltrating labor unions to bring the communist revolution to the US, as was a typical canard from the era. The way he dealt with his Red Scare paranoia, however, was peculiar, yet constructive. He began paying his workers at the motor plants higher wages, so he could build a product that his workers could afford. He wanted to give the communist-infiltrated unions no excuse to organize and agitate on his plant grounds. As a result, he could not be the evil, greedy capitalist they wanted to paint him as. With happy, well-paid workers, professional labor leaders from communist or socialist organizations had no audience at Ford’s motor plant.

The libertarian in me knows all too well that Wal-Mart and McDonalds are ALREADY meeting the tax bracket and red tape that federal regulations are throwing up, which kill mom-and-pop businesses in record numbers. Progressives must understand that just “raising the minimum wage”, because their hearts bleed for human rights will not be a long-term solution. The populist in me however, realizes that corporate shareholders evading a living wage is not a long-term solution either. Any Atlas Shrugged disciple who puts the “economic liberty” of the Waltons above the well-being of the working-middle classes who have to pay taxes for Wal-Mart employees’ public assistance is just as delusional and ignorant as liberal activists who support policy based on emotion.

Equality and Fairness

Jacques Delacroix Current Events, Philosophy, Politics , , ,

Yesterday, President Obama gave a stirring speech on income inequality and he declared war on it. The President is a rich man who was abandoned by his drunken immigrant father. He was brought up by his hippie mother. She had a doctorate. It took her twenty years to earn it. (I don’t mean to say that she was idle during most or any of these twenty years.)

I am an immigrant myself. I came to this country with no money (that’s NO money), no degree, no skill, nothing. (I was white, it’s true, still am.)

(By the way, about half the people with African blood in the US have zero American slave ancestry. Yes, like the president. They are descendants of immigrants like me, people who volunteered to come to this allegedly racist country.)

I have an American doctorate too. It did not take me twenty years.

Fifty years after reaching this country , I live modestly but with no serious wants. And I live in a very desirable place, even by world standards.

I bet you filled in the blank: “Poor guy, poor immigrant worked hard all his life, blah, blah…”

But I didn’t. Nearly every time I found myself at a crossroad, I chose the other path; I selected psychic income over money income; I wanted more free time rather than a bigger car, or a bigger house. Now, does President Obama mean that I should feel bitter toward the other guy in initially similar circumstances who chose the income, who put in fifty hours weeks, and who is now worth several times what I am worth?

Does the President mean that I should be bitter because so many men my age are richer than I am ? Men who live in Cleveland and such?

Does President Obama really mean that I should enlist the services of government to take that other old guy’s money by force to give it to me? And next, will they take from me, equally by force, my golden memories of the three months I spend spear-fishing on the Caribbean coast of Mexico?

That would be fair, or would it?

And do we prefer to live in a society that gives even a poor immigrant the kind of choices I had or in a society where nearly everyone gets about the same regardless of personal preferences?

Is there such thing as Conservative Liberalism?

Rick Weber Liberty, Philosophy , , , , , , ,

A friend sent me an email expressing confusion at the idea of Conservative Liberalism, which is apt because it combines two frequently misused words in a confusing way. Let me offer my views/definitions of important political terms to shed some light on this. This post will almost certainly raise more questions than it answers so disagree with me in the comments!

Hayek contrasted conservatism with liberalism and socialism, though a restatement would replace socialism with interventionism. My views are roughly in line with Hayek’s on what these terms mean, with an important caveat (below).

Conservatism is a support for the status quo, and is inherently anti-radical. But that status quo is a historical phenomenon and so conservatism isn’t per se pro- or anti-liberalism. So Conservative Liberalism is possible, just not in America today.

Liberalism is almost synonymous with goodness. It’s a big concept and trying to describe it adequately requires a whole library. All forms of liberalism are essentially concerned with freedom (from the latin Liber, i.e. liberty).

Interventionism is a belief that the government can usefully intervene in society and/or the market. Be that outlawing homosexuality or regulating hotels, this view has a distinctly illiberal flavor, though it’s essentially an orthogonal concept.

Hayek describes these categories as though distinct ideal types and with good reason. There are recurrent divisions along these lines that support thinking of politics in three dimensions, and lead to the formation of three groups (libertarians, conservative Republicans, and liberal [though not classically so] Democrats in the U.S., and similar factions elsewhere). However, I think it makes more sense to think of these as dimensions than ideal types. This adds some vagueness and makes it more difficult to put people in boxes. There can be Conservative Liberals (just not following the last few increasingly illiberal decades), and modern liberals can be understood as being descendant from classical liberal. Ideally everyone would be happy with this vagueness and instead of using labels as short-hand we’d discuss these sorts of things in depth.

But alas, it’s not so easy and even three dimensions is too many for most people, so we’ve got Left and Right wings. Us versus them! Good and evil! Which puts libertarians in the awkward position of not quite fitting in with Democrats on the left or Republicans on the right. I think the Nolan Chart is a step in the right direction. It makes Libertarians (top of the chart!) equidistant from left and right, but not really centrist either. It strips out political labels and gets to the principles at hand. And it’s ahistorical so it leaves room for radicalism and conservatism.

But then we’re left with a tricky situation because we’ve just eliminated an important dimension! And that leads to confusion when we discuss left and right because the ideas aren’t quite as simple as just particular bundles of policies, and that’s especially obvious in a two dimensional graph. If someone asks a libertarian if they’re left or right they should respond “freedom top!” and a neo-con should respond “power bottom!” I view Leftism as being an approach that is radical (i.e. anti-status quo) and Rightism as being pro-established interests. But it isn’t as simple as that either because the historical origins of the terms, and every day practice involves self-identification. The Tea Party is definitely in the Right but their views are typically radical (either radically small-government-liberal, or radically socially-conservative). There are right-wingers who are pro-market (a liberal position) and those who are pro-business (a pro-established interest position). 

So what’s the solution? Libertarians would probably like to see an accurate taxonomy that accounts for a wide variety of political and moral dimensions, but left/right has adequate for many for so long. I think the Nolan Chart is a good first step to breaking this false dichotomy, but I also think that using terms like classical liberal is a good choice when it invites conversation with people who aren’t familiar with these ideas. And Conservative Liberalism? It’s a paradoxical term that would also invite discussion, but it’s irrelevant since in the current historical context, the status quo is illiberal.

Inequality

Jacques Delacroix Current Events, Politics , , ,

President Obama’s signature achievement is in shambles. He believe himself that it cannot be saved. He is going for left-radical broke. Today he denounced “inequality.”

I am not sure younger people have the sophistication to realize that there are thousands of ways to measure inequality and that, therefore, you can always find one that serves your political purpose.

I don’t know how many could tell me what’s wrong with inequality.

By the way, I am far from rich myself, although I have worked all my life, not very hard, it’s true. (Did you notice how I often give you the answers to the questions I raise?)

Climate Change and the First Amendment

Jacques Delacroix Current Events, Religion , , , , , , , , , , ,

Like nearly everyone in the world, I don’t have the training to judge directly the pronouncements of organizations that affirm that there is:

a) Serious temperature rise on a global scale (“global warming”).

b) That it is caused by human activity (such as burning fossil fuels or keeping too many belching cattle).

c) That human beings must quickly reverse manufacturing growth and driving (and growth in cattle) or suffer devastating consequences.

Instead, I have to rely on indirect evidence to judge the claims of specialists and to decide what the appropriate action would be (including deliberate inaction). This is not a new situation. We all do this all the time. So, I am unable to assess the talent of the surgeon who is going to open up my chest but I can sure smell the booze on his breath and make the logical jump that it’s not good news. Similarly, I know little about the care of automobile engines but when I see a car mechanic banging on an engine with the back of a screwdriver, I am alerted.

The quality of specialists is not the only way indirectly to gauge the quality of a viewpoint. It’s also legitimate to infer the seriousness of a claim by assessing the quality of its believers. Thus, I am leery of so-called “alternative medicine” and other “informal” health perspectives because many of their proponents seem to live in la-la Land in matters other than health. And if marathon runners kept falling dead at 39, I would have good reason to wonder if running is that good for you. (I said “if.”) If the proponents of Chinese traditional medicine turned out to be sick all the time, I would have to think twice (thrice) about its merits. (I know, there is a causation issue in this sentence. It’s not a solution; it’s part of the problem.)

The quality of its followers say something about the credibility of a creed, I believe.

Here is an anecdote about the credibility of climate change proponents, “ccprops.” It’s only an anecdote. It may be isolated. It may represent no one but those involved. Or, it may sound familiar. Think!

I live in the Green People’s Socialist Republic of Santa Cruz. My wife and I may be the only residents with anti-Obama bumper stickers. (There is a good chance we only get away with it because leftists can’t spell: “Obamination,” mine says.) Those residents who are not greenies or leftists of some kind tend to observe a discreet silence. The voice of rationalists like me who oppose big government and the myths that support it is muffled to the point of being mostly inaudible. I am not saying that I am a victim; I am suggesting a minor degree of heroism.

One ordinary day, I am peacefully drinking coffee at my downtown coffee shop. My daughter and my five-year old grand-daughter are with me. There is a demonstration on the other side of the street, yards away, of about 200 people, most young, a few of retirement age. They have placards and they sing slogans against pipelines, all pipelines, against global warming, for the environment. I notice that some of them wear what I think is a fairly witty t-shirt sign: “Don’t frack your mother.” The usual collection of Mother-Earth loving catastroph-tropic semi-educated Santa Cruz crowd, I think.

When the demonstration disperses because of rain (the environment does not cooperate), a group of five demonstrators comes to sit under an umbrella of my coffee shop. After a while, they start making ingratiating noises toward my attractive, impossibly cute grand-daughter. I tell them in a calm voice that they may not talk to the child because I think they carry a bad, morally objectionable message.

I am just tired of letting my enemies go unchallenged. I believe they have enough influence collectively to sap what’s left of the economic life of California. They are precisely endangering my grand-daughter’s future with their anti-economic mindless message. There is no reason to waste an opportunity to show some unkindness here.

They are stupefied. This is Santa Cruz, California, after all. It’s one of the world centers of foo-foo-headedness. By locals standards, these people are 100% virtuous. More importantly, in their parochial minds, they are 100% right. They have never encountered hostility before, not even opposition. No one has ever treated them that way. They did not know anyone actually could, even legally. They kind of believe that the First Amendment protects them against criticism. They don’t know that it only enjoins the government. (“Congress shall make no law … abridging the freedom of speech, or of the press….”) They don’t know that the First does not guarantee against a private person making you cry with unkind comments. Nowhere does the First say or suggest: “Dr D shall not say hurtful things to silly Luddite greenies.”

Many young people are in the same state of ignorance nowadays. It may be because they don’t read much. It may be because they believe wrongly that they already know the Constitution. It’s the result of many years of left liberal education that is both biased and lazy. Even a friend of mine accuses me of “starting a fight.” I did no such thing. I was peacefully drinking my coffee while reading the WSJ. A bunch of strangers began yelling empty and offensive slogans near my face and I replied very moderately. “But they have a right….” Of course, they have a right; I did not say otherwise. I only instructed them to not speak to the child for whom I am responsible. I told them why in a brief and moderate way.

Immediately, the demonstrators start using religious-sounding language: You are “deniers” they say. Boy, that hurts! Boy, I am glad there is not much firewood handy! (I am not that stupid. I know well that they are trying to compare me to with theory of evolution “deniers.”)

A  frumpy woman in her forties presents herself as an expert because she is making a documentary on climate change, she says. This leaves me cold. Santa Cruz is full of self-declared, self-admiring artists. (I know this for sure, I am one.) I am thinking that if I worked on a movie about human female sexuality it would be no evidence that I know anything on the topic. Am I right?

For some mysterious reason, the film-making housewife insists on treating me as if I were a born-again Christian. Again, I have no idea what she would have done that. I don’t look the part in any way. I am sure I don’t act Christian, whatever that may be. I am absolutely certain I did not say anything leading to that kind of identification. I am an atheist of the calm, non-militant kind. Religion is not at the forefront of my preoccupations except sometimes, the silly Earth worshiping of her gang, precisely. As I said, the madness is close to the surface. The woman appears a little strange, a little twisted.

Temperatures have already risen by 1.4 degrees – the woman experts asserts in a loud voice.

Centigrade or Fahrenheit – I ask?

Yes – she says.

I ask again.

I don’t know – she brushes off my question.

In how long – I ask viciously – in what period?

I don’t know, she says with disarming honesty.

I am under the impression that her ignorance about the things she, herself, chose to evoke does not trouble her a bit.

Are you smarter than the 95.5% of scientists who believe in climate change – she challenges me with finality?

I refrain from answering out of humility. (Could well be that I am; I wouldn’t be that surprised; depends what you call a scientist; I have been reading for more than a half century; I read well; I retain better than most – not better than most at Harvard, better than most in the street. I went to an excellent or maybe just good graduate school, etc.) Also, I was seized like an overworked engine by this affirmation. I have encountered it for years with some variations in digits. I will just make again the obvious point the statement calls for:

If it were true that 95.5 % of scientists believed that there was man-made global warming that will have disastrous consequences, if it were true in reality, how in the world would anyone know this? Has there been a worldwide poll with strict definitions of who is a “scientist”? Was it conducted according to all the known intricate rules of polling including careful, neutral wording? What qualified pollster organization accomplished such a big difficult task? Why isn’t the pollster bragging about it? 95.5% is obviously a bogus number some one made up years ago and that keeps being repeated by believers. Its precision itself cries out, “Phony.” People who assert it are asserting that they don’t know what they are talking about, that they lack ordinary criticality. They are asking to not be believed.

The woman is joined by two younger people who appear to be her children. (Craziness might be hereditary.) A young man of about twenty is using the F word loudly five feet from my grand-daughter they all thought so cute three minutes ago. I am not a prude; I am not especially clean talking but there is no chance, zero chance that I would use such language in the presence of a small child. These people are insane. I don’t mean this figuratively. I mean literally. I mean that if they showed the same loud zeal in connection with say, parking, or house painting, they would risk being institutionalized.

In addition to factual waywardness and bad logic ccprops demonstrate their moral blindness in small ways as well as in big ones. They insist on their right to kill birds, for instance, including the legally protected bald eagle, in order to continue installing wind mills that contribute essentially nothing to the resolution of the imaginary problem of global warming (WSJ 10/11/13 “Fighting Climate Change by killing Eagles,” Robert Bryce.)

I listen to them calling the local talk shows. (I used to have a local talk show radio program myself.) They sound insane even if they are right. Most callers of talk shows are perfectly reasonable. Left-oriented ccprops are of a feather with rightists Bildeberg conspirators. Why do both kinds of callers sound regretful that it’s not yet technically feasible to murder over the airways?

Notice what I am not doing: They can go on demonstrating their irrationality, their lack of trustworthiness, their ignorance. It’s protected by the First Amendment. I will continue to try to make them cry every chance I get. It’s protected too.

Anti-Tesla bill rejected by Ohio Senate.

Adam Magoon Liberty , , , , , , , , , , ,

On December 3rd, an amendment to Ohio Senate Bill 137 failed to pass. The amendment would have required Tesla Motors to sell its electric cars through a third party rather than directly to consumers. Ohio is number two in auto manufacturing in the midwest and Tesla’s new line of ultra-efficient electric vehicles are a threat to the entire automotive industry. Contrary to what those in Detroit and Ohio would have you think, this is a good thing.

For far too long the automotive unions and automotive industry lobbyists have suckered the individuals in this country into believing they were the backbone of American manufacturing when in fact they were a leech sucking money from more productive uses. For example through the years 2008 to 2011 Ohio granted $80.8 million in subsidies to General Motors, $54.4 million to Ford, and $28.7 million to Chrysler. This is ignoring the billions of dollars spent on the auto bailout last decade which, much like Chrysler bailout in 1980, simply saved failing corporations from their own shoddy business practices. While Tesla gets its own fair share of subsidies any threat to the auto industry is a positive thing for consumers.

The Tyranny of Ambiguity: “Hate Speech” laws in Japan and subtle Western imperialism

Brandon Christensen Current Events, Politics , , , , , , , , , , , ,

Economist Tyler Cowen linked to the following report in the Washington Post about a supposed increase in enmity between Japanese citizens and Korean expats in Tokyo’s Koreatown. Setting aside all of the hyperbole on the part of the Post concerning rising tensions, and setting aside the interesting fact that there is a Koreatown in Tokyo, and setting aside the fact that there seems to be an increase in nationalism throughout the developed world, I’d like to focus on the Post‘s advocacy of “hate speech” laws. The Post reports:

“Japan is right now at a crisis point,” said Yoshifu Arita, a [Left-wing] lawmaker who is campaigning for new laws to regulate hate speech. “A situation like this — people getting so publicly hostile — never happened in the seven decades after the war until now.” […] In 1995, Japan did accede to the United Nations’ convention to eliminate racial discrimination, including hate speech, but its parliament has not passed legislation to enforce that treaty commitment. Its reluctance, experts and politicians say, stems from a separate war-era legacy — the wholesale suppression of anti-government dissent. Japan created free-speech laws to prevent a repetition of that censorship, and many still oppose the idea of regulating speech, said Kenta Yamada, a media law professor at Senshu University. The Japanese government’s hope, Yamada said, is to reduce hate speech with education and enlightenment, not with new laws.

Now I think we can all agree that ethno-nationalism is a bad thing, and there has been a rise in ethno-nationalism throughout the world since the 2007-2008 economic crisis began. However, I hope we can all equally agree that squelching free speech in the name of an imposed tolerance would be a much, much worse outcome.

“Hate speech,” of course, is ambiguous and invites arbitrary censorship. The fact that the Leftist politician pushing for the assault on free speech is employing the language of crisis does nothing to relieve my suspicions of her intentions.

This piece brought up three more quick thoughts in my mind:

  1. The report states, in the above quoted passage, that Japan created free speech laws after the war. This is all well and good for the most part, but I’ll never tire of reminding people that the right to free speech cannot be created by government. Free speech is a natural human right, and as such it is impossible for governments to create free speech. For example, what would happen if Japan had not created free speech laws after the war? Would free speech not exist? It’s possible, but this could only be true if governments had laws in place prohibiting free speech.
  2. Is it just me, or did the reporter – a Western Leftist – come off as sounding a bit imperialistic in his subtext?
  3. Imagine what a federal incorporation with the US would do for ethnic relations between Koreans and Japanese.

College Football Blurb

Brandon Christensen Current Events ,

Ohio State versus Florida State for the national championship? What a joke. The national championship should be played between the SEC and PAC-12 champions. These champions play the toughest schedules in the nation by virtue of their conferences, and it is ludicrous when the shot at a title is awarded to schools that are not in these two conferences. Remember last year’s “championship” game between Alabama and Notre Dame? Just imagine what would’ve happened if Alabama had to play Oregon instead. There might’ve been a game to watch.

We now return to your regularly scheduled programming.

Here’s what I knew about education when I was 18

Rick Weber Current Events , , ,

Fresh out of 12+ years of high end public education in Canada I had learned two (and a half) things about education. These two bits of information are relevant for understanding the closely related problems of poor academic performance and school violence.

1) Education means going to a school where bundles of knowledge are presented to students who are compelled by law (and subsidy, but I figured that out later) to be there. This learning occurs while sitting quietly at desks in rows, listening patiently to a teacher (most of whom genuinely care) teaching a standardized curriculum (the best!). Smart students will get good grades without much effort, “dumb” students will pass without much effort (because they need that education to succeed it would be unfair to deny them their future).

1.5) Europe’s version of this system has higher standards and works better some how.

2) The above I learned from experience and discussion with my peers, the following from watching discovery channel and in science class: all mammals learn by play fighting. Bear cubs gnaw on each other’s faces, squirrels chase each other, and in this constant movement they learn how to survive.

This second stylized fact about education points to a deep systemic cause for gruesome violence in schools. School is not the same thing as education. By confusing the two and establishing policy to dramatically increase schooling, we are essentially bear baiting teenagers and being left with predictable results.

Around the Web

Brandon Christensen Current Events, Links , , , , , , , ,
  1. Spontaneous Order and Social Justice
  2. Persuading the Scots in regards to secession from the UK
  3. The prospects of Scottish secession from the UK
  4. The waxing and waning schools of economics: Chicago, Vienna and San Francisco
  5. Cooperation Emerging: Institutional diversity and the history of the West

From the Comments: Secession and Nationalism in the Middle East

Brandon Christensen Liberty , , , , , , , , , ,

My dear, brave friend Siamak took the time to craft a very insightful rebuttal to my argument on supporting decentralization in the Middle East. He writes:

Brandon,

First of all thanks a lot for your attention to my comment…

You know that I have problems in English and maybe that’s the cause of some mis-understandings…

Look my friend. I did understand what you mean but the problem is sth else… As a libertarian I’m not completely against decentralization in the method you mentioned (I mean dealing with new nations)… USSR was a great example for this… My problem is that you can’t compare today’s med-east with USSR. Soviet Union was a country formed by some “nations”. Nation has a unique meaning. I think the best meaning for that is a set of people with close culture and common history which “want” to stay together as a nation. A country like Iran is formed of many ethnics including: Fars, Azeri (I’m Azeri), Kurd, Mazani, Gilani, Turkemen, Balooch, Sistani, Arab, etc. If you come and visit the whole part of this country you can see that all of them believe that they are Iranian. I don’t know that much about Arabian countries but I think that’s the same. Even all of them are Arabs and speak the same language but there are big cultural differences between for example Egypt and Saudi Arabia!

My reaction to your post has got a reason. 8 years of Ahmadinejad presidency, not only killed the economy, culture and any kind of freedom, But made us a weak country in mid-east. What I see today is that some little groups created and supported by Azerbaijan, Turkey, Qatar and Emirates are working so hard to make Arabian and Azeri groups to separate from Iran. They even do terrors for their aims. What I see is decentralization in mid-east not only doesn’t solve any problem but makes new problems! Makes new never-ending ethical wars.

You mentioned about US Imperialism. (I hate this word, Because when the leader speaks from three words he speaks two is “Enemy” and one is “Imperialism”! :D ) One of the biggest problems in mid-east is Al-Qaida, which everybody knows that without the support of the united states they couldn’t be this big. You in your post didn’t say that you think US should start the decentralization of mid-east, But you believe decentralization and Schism is good for the peace of mid-east. My objection is to this belief. Arabs are very nationalist. Iranians and Afghans are nationalists too. Changing the current map of mid-east will bring new problems. A big problem of mid-eastern countries is their governments. But Governments are not the only problem… The problem is not “just democracy”, It’s not even “Just modernism”! In some parts the problem is “Savagery”! The people are a big problem. If anybody wants peace for mid-east they should economic relationships more and more… We libertarians know the power of free business. Don’t be afraid of central powerful governments. Even sometimes their power is useful. We are in a Transient status between “Savagery & Civilization”, “Tradition & Modernism” and “Dictatorship (Even Totalitarianism) & Democracy”.

If the western countries want to help Democracy, Modernism, Civilization and peace they should make economical relations. Sanctions just gives the right to Islamic Radical groups and makes them stronger… As you mentioned Imperialism just gives them credit. Any decentralization makes new problems. The Communist Soviet Union was a block of different nations that their only common point was Communism. New Nations that are formed on the basis of ethnics just makes new dictator governments and new enemies. Mid-east is different from Soviet Union. I hope that this time I have less grammar mistakes! :)

Siamak, by the way, is a citizen of Iran and ethnically an Azeri. I always prize the views and arguments of foreigners in matters of philosophy, culture and policy. All individuals bring diversity to my world, but when the voice speaks with an accent and carries experience that I know nothing about, it – well – it makes my world and my life that much richer.

With that being said, I don’t buy Siamak’s argument. largely because I don’t see much of a difference between the Soviet Union and Iran ethnically-speaking. That is to say, I think Siamak’s argument falls flat because both the Soviet Union and Iran have numerous nations within their borders, so the distinction between the two states doesn’t quite add up.

I think the rest of Siamak’s argument stands up pretty well.

Blind Faith

Adam Magoon Current Events, Liberty, Politics , , , , , , , , , , ,

By Adam Magoon

On November, 26th Eric Liu, founder of “Citizen University”, a pro-government think-tank, wrote a telling article about having faith in government on the CNN opinion page. He begins the piece with a story about leaving his suitcase in a New York City cab saying:

“I had an experience recently that reinvigorated my faith in humanity — and bureaucracy.”

Keep that equivalency in your mind for a few minutes. Humanity and bureaucracy.

He goes on to explain that he did not even realize he left the suitcase in the cab for twenty minutes and only then began calling people for help. He explains this process in detail, emphasis mine:

“For almost three hours, various people tried to help me — two folks at my bank, whose credit card held the only record of the cab ride; three people at two yellow cab companies based in Long Island City; a service rep at the New York City Taxicab & Limousine Commission; people in my office back in Seattle.”

So Eric was helped by no less than eight individuals (counting the cab driver) in his successful search for his luggage. Eight people helped improve Eric’s business trip. He then claims this experience taught him three lessons.

First:

“Always, always get a receipt.”

This, as he says, is obvious.

Second:

“Another is that New Yorkers, contrary to popular belief and their own callous pose, are essentially nice.”

As someone born in New York I would like to think this is true, but I adhere to the maxim that terms such as “New Yorker” can only describe places where someone lives or is born. Saying “all New Yorkers are nice” is equivalent to saying “all Scots are drunks” or “all Scandinavians are attractive”. Essentially it is a non-statement that is easily refuted. There are just as many people who would have taken anything of value from his case and threw it into the nearest dumpster.

That is just the appetizer though, here is the main course.

His final lesson, and where the train totally leaves the rails, is this:

“But the third, even more deeply contrary to popular belief, is that government is not the enemy.”

Wait, what?! What kind of logic is Mr. Liu using? Of the eight people who helped him only one (the service representative at the New York City Taxicab & Limousine Commission named Valerie) even worked for a governmental organization and “she insisted she was just doing her job”. How did Mr. Liu get to “government is not the enemy” from that series of events? He goes on to claim that:

“Government is not inherently inept. It’s simply us — and as defective or capable of goodness as we are”.

Mr. Liu tries to rationalize his faith in government with a single good experience with a few select people. What he ignores though, is that many people are not “essentially nice”. If that were the case crime, corruption, and violence simply wouldn’t exist. There are people in the world who only seek to exploit and profit from the work of others and to quote the great classical liberal theorist Frédéric Bastiat:

“As long as it is admitted that the law may be diverted from its true purpose — that it may violate property instead of protecting it — then everyone will want to participate in making the law, either to protect himself against plunder or to use it for plunder”

Even if we were to assume that most people in the world are “essentially nice” the very nature of government attracts precisely the opposite type; the corrupt, the malevolent and the lazy. His agenda finally becomes clear nearly two-thirds of the way through the article when Mr. Liu unabashedly asks us to not wonder what our country can do for us, but rather what we can do for our country in response to the failed Obamacare launch.

Individuals are expected to bail the government out when it fails at intruding into our lives? How can we expect the government to run healthcare without kickbacks and corruption when they cannot even get someone to build the website without it being a disaster?

Mr. Liu fails to offer any helpful advice on how to improve things but he does offer one revealing suggestion. He says that citizens should not expect the “state…to serve us perfectly” and that individuals should not “forget how to serve”.

The argument often goes that taxes pay for services provided by the government but Mr. Liu suggests we shouldn’t expect too much from those services. That we shouldn’t get upset when we pay a third of our labor to the government and it spends that money on things we do not want; in fact he implies we should fix for free the broken things they have already spent our money on.

If Mr. Liu goes out to dinner and his silverware is dirty when he sits at the table does he go back to the sink and wash them? Or does he expect more from the things he spends his money on? At least in that situation Mr. Liu could choose to spend his money elsewhere. With the government spending our money for us we aren’t even afforded that meager victory.