Archive for the ‘Capitalism & Libertarian Philospohy’ Category.

Peak Poop Theory

Donna Laframboise discusses 18th century transportation issues, and particularly the horse manure problem:

The Superfreakonomics authors draw heavily on the work of Eric Morris, whose urban planning Masters thesis explored the reality of horse-based transportation in 19th-century cities. A user-friendly encapsulation of his research appears in an 8-page article here. (It was published in Access, a U of California transportation publication. The entire issue is available here.)

Morris points out that, by the late 1800s, large urban centers were “drowning in horse manure.” Not only were there no solutions in sight, people were making dire predictions:

In 1894, the Times of London estimated that by 1950 every street in the city would be buried nine feet deep in horse manure. One New York prognosticator of the 1890s concluded that by 1930 the horse droppings would rise to Manhattan’s third-story windows.

The automobile helped solve this growing ecological problem.  Back in 2006, I had considered the same thing with a hypothetical blog post from 1870 which is pretty close to the Times of London article quoted above (which I had never seen):

As the US Population reaches toward the astronomical total of 40 million persons, we are reaching the limits of the number of people this earth can support.    If one were to extrapolate current population growth rates, this country in a hundred years could have over 250 million people in it!  Now of course, that figure is impossible – the farmland of this country couldn’t possibly support even half this number.  But it is interesting to consider the environmental consequences.

Take the issue of transportation.  Currently there are over 11 million horses in this country, the feeding and care of which constitute a significant part of our economy.  A population of 250 million would imply the need for nearly 70 million horses in this country, and this is even before one considers the fact that "horse intensity", or the average number of horses per family, has been increasing steadily over the last several decades.  It is not unreasonable, therefore, to assume that so many people might need 100 million horses to fulfill all their transportation needs.  There is just no way this admittedly bountiful nation could support 100 million horses.  The disposal of their manure alone would create an environmental problem of unprecedented magnitude.

Or, take the case of illuminant.  As the population grows, the demand for illuminant should grow at least as quickly.  However, whale catches and therefore whale oil supply has leveled off of late, such that many are talking about the "peak whale" phenomena, which refers to the theory that whale oil production may have already passed its peak.  250 million people would use up the entire supply of the world’s whales four or five times over, leaving none for poorer nations of the world

To the last point, my article on how John D. Rockefeller and Standard Oil saved the whales is here.

Gas Prices

I find it sort of hilarious that it is Conservatives that are demagoguing gas prices and Liberals who are trying to explain that they really are not that high.  Yet another example of the Coke and Pepsi parties swapping political positions based on whose team is in the White House.

But I thought this graph was interesting, and supports a point I have made for years (Via Flowing Data)

I have worked in oil fields drilling miles below the surface and on offshore platforms in mile-deep water.  I have seen the Alaska pipeline under construction and worked in a 400 thousand barrel a day refinery.  And I can say with confidence that no other product on this list even is in the same order of magnitude as gasoline in terms of the capital investment, effort, and technology that does into delivering a gallon of gas.  The ability to deliver gas for even $4.00 a gallon is almost unbelievable.   Yet no other industry on this list or any other list gets 1/100th the grief oil companies do for being rapacious, greedy, and detrimental to society.

By This Definition, the Entire Administration is Full of Terrorists

Via Politico, from the liberty dollar trial

Attempts to undermine the legitimate currency of this country are simplya unique form of domestic terrorism,” U.S. Attorney Tompkins said in announcing the verdict.

“While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country,” she added. “We are determined to meet these threats through infiltration, disruption and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government.

My guess is that QE2 and TARP and the stimulus did a lot more to undermine the US dollar than any efforts by Bernard Von NotHaus.  I would rather accept his silver dollars than, say, the script handed out by the State of California last year when they ran out of money.

The Perfect Story Will Combine Joe Arpaio and Sex with Dogs

This soooo reminds me of Dave Barry's Interview years ago with reason.

​The Maricopa County Sheriff's Office busted two guys -- one of whom was an elementary school music teacher -- last month who allegedly used Craigslist to try and have sex with a dog, and the sheriff seems to think it's becoming a trend -- despite it only happening once.

Sheriff Joe Arpaio earlier this week wrote a letter to Craigslist CEO Jim Buckmaster alerting him of his office's findings and advising him to re-examine security policies on the website to make sure people don't use it to coordinate sex with animals -- again, despite it only happening one time that the sheriff knows about.

Here is the quote from Barry's interview: And here is my post on it

John wrote about it and he got into the usual thing where he immediately got to the question of whether or not you can have sex with dogs. The argument was that if it wasn't illegal to have sex with dogs, naturally people would have sex with dogs. That argument always sets my teeth right on edge....

I got a few letters, mostly pretty nice. One or two letters saying, "Here’s why it wouldn’t work to be a libertarian, because people will have sex with dogs." Arguments like, "Nobody would educate the kids." People say, "Of course you have to have public education because otherwise nobody would send their kids to school." And you’d have to say, "Would you not send your kids to school? Would you not educate them?" "Well, no. I would. But all those other people would be having sex with dogs."

Wow! Things I Wish I Had Said

Ross McKitrick on "Earth Hour" via Bishop Hill

The whole mentality around Earth Hour demonizes electricity. I cannot do that, instead I celebrate it and all that it has provided for humanity. Earth Hour celebrates ignorance, poverty and backwardness. By repudiating the greatest engine of liberation it becomes an hour devoted to anti-humanism. It encourages the sanctimonious gesture of turning off trivial appliances for a trivial amount of time, in deference to some ill-defined abstraction called “the Earth,” all the while hypocritically retaining the real benefits of continuous, reliable electricity. People who see virtue in doing without electricity should shut off their fridge, stove, microwave, computer, water heater, lights, TV and all other appliances for a month, not an hour. And pop down to the cardiac unit at the hospital and shut the power off there too.

Update:  Here is the whole thing

Anti-Intellectual

In this article discussed in the last post, the author criticizes the Tea Party as having a worldview that is "anti-intellectual, anti-establishment, anti-elite."  It is interesting that liberals and progressives now suddenly consider being anti-establishment and anti-elite as bad things.  It just goes to show that the progressive movement is a long, long way from its roots, and is more about exercising power than the mythology it developed for itself in the 1960s.  I would gladly accept either of these labels for myself, even when I don't always agree with the Tea Party.

Moreover, when I was thirty years old and holding two Ivy League degrees, I would have jumped in with the author in attacking folks that were anti-intellectual.  But over the years, I have seen too many people exercising naked power in the name of being smarter and better able to make decisions for the rest of us.  I am exhausted with the technocratic governing urge, and while I still would not describe myself as anti-intellectual, I can sympathize with those who might.

Interesting Fellowship

From PERC, a group focused on free-market environmentalism

The Julian Simon Fellowship has an open application process, so applications are always welcome. Review of applications will begin as soon as they are received.

The Julian Simon Fellowship is one of the nation's most prestigious opportunities for scholars to develop policy-oriented research on natural resource and environmental conservation. The in-residence fellowship is intended to continue the legacy of the late Julian Simon, whose research led to a massive re-evaluation by scholars and policy makers of their views on the interplay between population, natural resources, and the environment.

The ideal candidate for this fellowship is someone like Julian; an excellent scholar with a focus on empirical work and an imaginative research agenda that emphasizes natural resource and environmental issues.

Each Julian Simon Fellow is expected to spend at least two months in residence at PERC developing a paper of publishable quality, one that has significant policy implications. During their stay at PERC, Julian Simon Fellows are expected to present a seminar on their work.

Each Julian Simon Fellow will receive an honorarium of $20,000 plus office space, office support, and a congenial, stimulating work environment. Fellows will be responsible for their accommodations in Bozeman, but PERC is happy to assist with arrangements.

Pro Business Not Equal Pro Capitalism

Here is the poster child for 1970's style Republican pro-business anti-capitalism

Cargo Cult Economics

I thought this article interesting - the hypothesis that communist countries pursued a sort of cargo cult economic policy.  Since they did not really understand economics (and as communist countries have banned many of the most important processes for economic growth), communist leaders tried to emulate successful western nations by copying high-profile bits of their economy.  For example, since Western nations were prosperous and had early on built big steel industries, communist leaders decided that building big steel industries would make them prosperous.

It falls somewhat short as a framework for explaining communist economies, but I do think that this cargo cult mentality was an important part of their thinking and even is a part of progressive thinking today.  After all, if you willfully deny classical economic theory as well as the power of individual action and private initiative, you have to fill in the blanks somehow.

High speed rail and mass transit strike me as classic modern examples -- great cities of the world have large mass transit systems so therefore if our city builds a rail system we will become great.

Correlation in Political Views

(via Popehat) one of the writers at Balloon Juice offers this test of a "reasonable" Conservative blog

1) Do you believe in evolution?

2) Do you believe that the average temperature on earth has increased over the past 30 years?

A few semi-random thoughts:

  • Count me as a yes for both
  • Is the best test of the likely reasonableness of a political blog really to ask two questions about science that such a blog might never even touch?  This is not an entirely rhetorical question -- just the other day I linked the data that suggested that asking your date about beer might be the best way to test their views on sex.  Sometimes odd cross-correlations exist, but I don't think these would be my first test
  • I find the Left's obsession with evolution as a litmus test for political thought to be funny, as the theory of evolution is largely irrelevant to any political questions except fairly narrowly the question of teaching evolution in schools.   I find it funny as much of the Left does not believe in a science - micro economics (very specifically differentiated from macro) - that is also fairly old and well understood and is much more relevant to typical political blog discourse.  I had a debate on national TV a few weeks ago with a man who claimed, as many on the Left will, that raising the minimum wage will increase employment.   If we want to test blogs based on scientific questions, why wouldn't a far more relevant question in public discourse be "do you believe demand curves slope down" or perhaps something like "do you believe breaking windows stimulates the economy?"
  • The second test is not a bad test of any site writing about global warming and climate change.  I don't know many science-based skeptics who would deny that global temperatures have likely increased over the last 30 years  (from a data base without UHI or alarmist manual adjustments or large data holes, the trend is something like 0.1C per decade).   I say "likely" because it could be argued that 0.1C is within the error bar of the measurement. Even so, this wouldn't be my first test, even for climate sites
  • I would tend to have four tests of the liberal and conservative sites I read
    • Is it interesting to read (after all, this is a freaking unpaid hobby)
    • Is the data-analysis-to-name-calling ratio fairly high
    • Are they willing to step out of team politics and question their own team from time to time
    • Do they have interesting perspectives on individual liberty.  I can plow through Marxist economic posts on progressive sites if from time to time they have a useful perspective on, say, indefinite detentions or gay marriage.  I can plow through some social Conservatism if they have useful posts on economics and fiscal policy.

This post from Nick Gillespie is sort of relevent, in which he talks about CPAC and social conservatives.  One line that struck me

A person's choice of sexual partner in no way means he or she can't be in favor of less spending on farm subsidies.

If I weeded out every blog that held some sort of view with which I disagree (or might even call "unreasonable") I would be down to about 3 blogs in my reader.

The New Pharaohs: Confusing Triumphalism and State Coercion With Progress

My new Forbes column is up, and it discusses an article by Michael Malone that said in part:

The recent quick fade of the Deficit Commission was the latest reminder that America no longer seems to have the stomach for big challenges.  There was a time "“ was it just a generation ago? "“ when Americans were legendary for doing vast, seemingly superhuman, projects:  the Interstate Highway System, the Apollo Missions, Hoover Dam, the Manhattan Project, the Normandy invasion, the Empire State Building, Social Security.

What happened?  Today we look at these achievements, much as Dark Age peasants looked on the mighty works of the Roman Era, feeling like some golden age has passed when giants walked the Earth.

My response includes the following:

The list he offers is a telling one "” all except the Empire State Building were government programs, just as were the "mighty works" of the ancient Romans.  And just like the Romans, these and other government projects have more to do with triumphalism than they do with adding real value.

It is interesting he should mention the Romans.  There were few grand buildings during the centuries when Rome was a republic.  Only in the later Imperial period, when Rome became an autarky, did rulers begin to build the monumental structures that Malone admires.  Emperors taxed their subjects and marshaled millions of slaves to build temples and great columns and triumphal arches and colosseums to celebrate"¦ themselves.  Twentieth Century politicians have done the same, putting their names on dams and bridges and airports and highways and buildings.  They still build coleseums too, though today they cost over a billion dollars and have retractable roofs.  Are these, as Malone suggests, monuments to the audacity of the greatest generation, or just to the ego of politicians?...

This is the same concern that drives Thomas Friedman to extol the virtues of the Chinese government, where a few men there can point their fingers and make billions of dollars flow from their citizens to the projects of their choice.  This is a nostalgia for coercion and government power, for Lincoln imposing martial law, for FDR threatening to pack the Supreme Court, for the Pharaohs getting those pyramids built.  It is a call for dis-empowerment of the masses, for re-concentrating power in a few smart visionary folks, presumably including Mr.  Malone.

Our Medieval Economy

This is a pretty interesting observation, from Walter Russell Mead via Arnold Kling

Most intellectuals today still live in a guild economy. The learned professions - lawyers, doctors, university professors, the clergy of most mainline denominations, and (aspirationally anyway) school teachers and journalists - are organized in modern day versions of the medieval guilds. Membership in the guilds is restricted, and the self-regulated guilds do their best to uphold an ideal of service and fairness and also to defend the economic interests of the members. The culture and structure of the learned professions shape the world view of most American intellectuals today, but high on the list of necessary changes our society must make is the restructuring and in many cases the destruction of the guilds...

In most of our learned professions and knowledge guilds today, promotion is linked to the needs and aspirations of the guild rather than to society at large. Promotion in the academy is almost universally linked to the production of ever more specialized, theory-rich (and, outside the natural sciences, too often application-poor) texts, pulling the discourse in one discipline after another into increasingly self-referential black holes. We suffer from 'runaway guilds': costs skyrocket in medicine, the civil service, education and the law in part because the imperatives of the guilds and the interests of their members too often triumph over the needs and interests of the wider society.

Progressives and Capitalism

My Forbes post this week is on progressives and capitalism:

Progressives are often as overwhelmed by the world economy as primitive man was by his natural environment.  Just as the primitive man was confused by and fearful of storms and earthquakes and drought and disease, progressives are befuddled by the rise and fall of industries, booms and recessions, wealth and poverty.  And just as primitive men invented gods and myths to help bring order and a sense of controllability to events they didn't understand, progressives create governments in the hopes of imposing top-down order on a chaotic economy....

The children of the 1960's had a number of catch phrases, among them "power to the people."  The irony is that no system in history has ever empowered individuals as much as has capitalism.  Capitalism is the only way to organize economic activity without the use of force, the only approach that does not require that a few human beings be given power over us to guide our activity from above.  This results in an order that is emergent and bottom-up, as beautiful in its complexity as anything in nature.  And, and order that is as terrifying to progressives as nature was to primitive man.  As a result, progressives would trade it all away, would accept a master, would accept impoverishment and stagnation, in order to attain predictability.

I am sure, if asked, most  progressives would profess to desire iPod's and cures for cancer.  But they want these without the incentives that drive men to invent them, and the disruption to current markets and competitors and employees that their introduction entails.  They want to end poverty without wealth creation, they want jobs without employers, they want cars without unemployment for buggy whip makers.  When it comes to actual, real-world legislation, progressives will nearly always embrace predictability and egalitarianism over innovation and growth.

Trading Cribs

Brian Caplan compares his life with that of the richest of the Gilded Age:

I just returned from the Biltmore, America's largest home.  Built by George Vanderbilt between 1889 and 1895, the Biltmore is a symbol of how good the rich had it during the Gilded Age.  I'm sure that most of the other visitors would answer "very good indeed."

But how many would actually want to trade places with George?  Despite his massive library, organ, and so on, I submit that any modern with a laptop and an internet connection has a vastly better book and music collection than he did.  For all his riches, he didn't have air conditioning; he had to suffer through the North Carolina summers just like the poorest of us.  Vanderbilt did travel the world, but without the airplane, he had to do so at a snail's pace.

Perhaps most shockingly, he suffered "sudden death from complications following an appendectomy" at the age of 51.  (Here's the original NYT obituary).  Whatever your precise story about the cause of rising lifespans, it's safe to say that George's Bane wouldn't be fatal today.

I made this observation several years ago, though, though I went west coast railroad entrepreneur rather than east coast.  I showed pictures of a San Francisco mansion and a middle class home of a friend of mine in Seattle.

One house has hot and cold running water, central air conditioning, electricity and flush toilets.  The other does not.  One owner has a a computer, a high speed connection to the Internet, a DVD player with a movie collection, and several television sets.  The other has none of these things.  One owner has a refrigerator, a vacuum cleaner, a toaster oven, an iPod, an alarm clock that plays music in the morning, a coffee maker, and a decent car.  The other has none of these.  One owner has ice cubes for his lemonade, while the other has to drink his warm in the summer time.  One owner can pick up the telephone and do business with anyone in the world, while the other had to travel by train and ship for days (or weeks) to conduct business in real time.

I think most of you have guessed by now that the homeowner with all the wonderful products of wealth, from cars to stereo systems, lives on the right (the former home of a friend of mine in the Seattle area).  The home on the left was owned by Mark Hopkins, railroad millionaire and one of the most powerful men of his age in California.  Hopkins had a mansion with zillions of rooms and servants to cook and clean for him, but he never saw a movie, never listened to music except when it was live, never crossed the country in less than a week.  And while he could afford numerous servants around the house, Hopkins (like his business associates) tended to work 6 and 7 day weeks of 70 hours or more, in part due to the total lack of business productivity tools (telephone, computer, air travel, etc.) we take for granted.  Hopkins likely never read after dark by any light other than a flame.

If Mark Hopkins or any of his family contracted cancer, TB, polio, heart disease, or even appendicitis, they would probably die.  All the rage today is to moan about people's access to health care, but Hopkins had less access to health care than the poorest resident of East St. Louis.  Hopkins died at 64, an old man in an era where the average life span was in the early forties.  He saw at least one of his children die young, as most others of his age did.  In fact, Stanford University owes its founding to the early death (at 15) of the son of Leland Stanford, Hopkin's business partner and neighbor.  The richest men of his age had more than a ten times greater chance of seeing at least one of their kids die young than the poorest person in the US does today.

Hopkin's mansion pictured above was eventually consumed in the fires of 1906, in large part because San Francisco's infrastructure and emergency services were more backwards than those of many third world nations today.

Here is a man, Mark Hopkins, who was one of the richest and most envied men of his day.  He owned a mansion that would dwarf many hotels I have stayed in.  He had servants at his beck and call.  And I would not even consider trading lives or houses with him.  What we sometimes forget is that we are all infinitely more wealthy than even the richest of the "robber barons" of the 19th century.  We have longer lives, more leisure time, and more stuff to do in that time.   Not only is the sum of wealth not static, but it is expanding so fast that we can't even measure it.  Charts like those here measure the explosion of income, but still fall short in measuring things like leisure, life expectancy, and the explosion of possibilities we are all able to comprehend and grasp.

Like a Commercial for Capitalism

This is awesome.

Note the wealth axis is logarithmic, so the rightward velocity is understated

Starnesville, Greece

One of the things that Ayn Rand did particularly well in Atlas Shrugged was to set the rules of collectivism in motion and see them carried to their logical extreme.  To this end,  I have always considered the hobo's tale to Dagny on the train about 20th Century Motors to be the climax of the book.  It pulls a lot of plot threads in the book together, and the story represents the ultimate expression of how a true socialist society would evolve.  "From each according to his ability, to each according to his need" is taken to its extremes, and rather than brotherhood, everyone ends up hating and resenting their fellow workers.  In retrospect, it seems dead-on prescient of this bit about Greece:

The Greek state was not just corrupt but also corrupting. Once you saw how it worked you could understand a phenomenon which otherwise made no sense at all: the difficulty Greek people have saying a kind word about one another. Individual Greeks are delightful: funny, warm, smart, and good company. I left two dozen interviews saying to myself, "What great people!" They do not share the sentiment about one another: the hardest thing to do in Greece is to get one Greek to compliment another behind his back. No success of any kind is regarded without suspicion. Everyone is pretty sure everyone is cheating on his taxes, or bribing politicians, or taking bribes, or lying about the value of his real estate. And this total absence of faith in one another is self-reinforcing. The epidemic of lying and cheating and stealing makes any sort of civic life impossible; the collapse of civic life only encourages more lying, cheating, and stealing. Lacking faith in one another, they fall back on themselves and their families.

The structure of the Greek economy is collectivist, but the country, in spirit, is the opposite of a collective. Its real structure is every man for himself. Into this system investors had poured hundreds of billions of dollars. And the credit boom had pushed the country over the edge, into total moral collapse.

The Man Who Saved the Whales

My new Forbes column is up, and discusses two of the most vilified men in history.  One ended (at least for a while) the blight of government enforced monopoly in industry.  The other saved the whales.

Incredible Bread Machine

I thought this was ironic....

Germany--Standing in Aisle 1 of a local Aldi supermarket, between the €2.59 ($3.62) bottles of sparkling wine and the packaged bread, German master baker Wolfgang Schäfer is in enemy territory.

The third-generation baker lobs 15 cents into the massive, beige-colored automat before him, presses a button and cocks his ear to the machine for any clues to what's transpiring inside. Almost instantly, a warm wheat roll plunks into the bin below.

"Not even two seconds," says the 55-year-old Mr. Schäfer, who had switched out of a white shirt embroidered with his family bakery's insignia into a less conspicuous checkered button-down for the stealth fact-finding mission. "Whatever goes on in there, it's certainly not baking."

What exactly does happen inside the automats has become a matter of dispute between Aldi Süd, a discount supermarket chain, and most of Germany's 15,000 traditional bakeries, since the company began installing the machines in hundreds of its German stores this year. The automats are emblazoned with the word Backofen, or "baking oven," and pictures of bowls of whole grain and bouquets of wheat. Aldi markets the rolls and bread the machines dispense as "fresh out of the oven--direct into the bag."

But to thousands of German bakers, Aldi's freshness claim is half-baked. Worse, they charge, it misleads customers who might equate the German discounter's baked goods with the bread they and their employees knead, shape and bake through the wee hours of every morning.

The German Bakers' Confederation, steward of the country's centuries-old bread-making tradition, is taking Aldi Süd--one of the two companies that make up the Aldi empire--to court on claims of deceptive advertising. Aldi Süd says it rejects the claims in the lawsuit.

...in the context of this (see part IV)

This is a legend of success and plunder
And a man, Tom Smith, who squelched world
hunger.
Now, Smith, an inventor, had specialized
In toys. -So, people were surprised
When they found that he instead
Of making toys, was BAKING BREAD!

The way to make bread he'd conceived
Cost less than people could believe.
And not just make it! This device
Could, in addition, wrap and slice!
The price per loaf, one loaf or many:
The miniscule sum of under a penny....

If you never have read the whole poem, do so.  In concludes thus:

Price too high? Or price too low?
Now, which charge did they make?
Well, they weren't loath to charging both
With Public Good at stake!
In fact, they went one better They
charged "monopoly!"

No muss, no fuss, oh woe is us,
Egad, they charged all three!
"Five years in jail," the judge then said.
"You're lucky i's not worse.
Robber Barons must be taught
Society Comes First!"

Now, bread is baked by government.
And as might be expected,
Everything is well controlled;
The public well protected.
True, loaves cost a dollar each.
But our leaders do their best.
The selling price is half a cent.
(Taxes pay the rest!)

Radley Balko is Freaking Brilliant

His response to a commenter should not be missed.  An excerpt:

Let's move on. I'm going to get a bit more critical now, so prepare yourself. Let's start with this:

What a sniveling little shit of a post from a sniveling little shit of a man.

This really feels lazy to me. You can do better. "Sniveling little shit" is already overused to the point of cliche. It is evocative, so I probably could still have lived with it had you only used it once. But to use it twice, and in the same sentence, really left me wishing you had come up with something more creative. Perhaps you were using repetition as a rhetorical device, but it really reads as if you just got tired of coming up with colorful ways to express your contempt for me. Which is disappointing, because those first couple lines really had me wanting to believe that you hated me. If I could offer a suggestion: This might be a good time to return to the puss-oozing lesion metaphor. I think it serves you well in a couple ways: It vividly and luridly conveys your disgust for me, and it links me in the minds of your readers to something quite unpleasant"”a festering wound. And a call-back is always a good way to keep your audience on its toes. You might even add some extra ickiness the second time around. For example, you might set the sore on someone's genitals, or perhaps on an anus. That's the beauty of writing! You are in control!

What Both the Coke and The Pepsi Parties Have In Common

Legislators in both parties share one common belief -- that after millions of dollars and years of effort getting elected to their position, they don't want to hear anyone tell them their power is somehow limited.

"That somehow or other these are unconstitutional because they're not enumerated within the powers of the constitution, that somehow or other we should just be eliminating these, I think that is out of the mainstream," Sen. Lisa Murkowski (R-AK) said on MSNBC.

No campaign rules or financing "reform", or even a wholesale change in Congressional makeup from the Pepsi to the Coke party, is going to change anything unless the fundamental problem of the expansion of government power is addressed.

GRRRRRR. Commerce is Not a "Privilege"

The government terminology that tends to tick me off the most is calling commerce a "privilege" that can only be granted to the state and therefor must be licensed with appropriate tribute paid to the state for the "privilege."  Here in Arizona our sales tax is called a "transaction privilege tax."  Here is a story about licensing bloggers in Philly:

Between her blog and infrequent contributions to ehow.com, over the last few years she says she's made about $50. To [Marilyn] Bess, her website is a hobby. To the city of Philadelphia, it's a potential moneymaker, and the city wants its cut.

In May, the city sent Bess a letter demanding that she pay $300, the price of a business privilege license.

Selling one's labor, and conducting commerce to the mutual interest of two parties are fundamental rights rather than artificial constructs granted by the state.

Libertarians, In Case You Didn't Know This About Yourselves

From JM Berstein in the NY Times, via Kevin Drum, this is about Tea Partiers, but since it addresses the Tea Party distrust and disdain for government, I suppose it applies equally well to we libertarians:

My hypothesis is that what all the events precipitating the Tea Party movement share is that they demonstrated, emphatically and unconditionally, the depths of the absolute dependence of us all on government action, and in so doing they undermined the deeply held fiction of individual autonomy and self-sufficiency that are intrinsic parts of Americans' collective self-understanding.

....This is the rage and anger I hear in the Tea Party movement; it is the sound of jilted lovers furious that the other "” the anonymous blob called simply "government" "” has suddenly let them down, suddenly made clear that they are dependent and limited beings, suddenly revealed them as vulnerable.

Do you get that - we oppose the overwhelming size of government not for any rational reason, but out of a psychological need to deny that the government is inevitably going to grow larger and increase its control over our lives.   This is so absurd it is freaking hilarious.  This is what Louis the XVI's sycophants were telling him to make him feel better in 1789.  I mean, after 200 years of only limited government interference in health care, how is it that a law passed over majority opposition for government takeover of healthcare somehow "demonstrates the absolute dependence of us all on government action?"  Why doesn't it reasonably demonstrate the depth of risk we all face from a minority who have constantly through history been bent on wielding power over us.

Kevin Drum, sort of to his credit, rejects this thesis in favor of his own

So then: why have tea partiers gone off the rails about the federal deficit? It's not because of something unique in their psyches. And it's not because they're suddenly worried that America is going to go the way of Greece. (The polls I linked to above show that tea partiers care more about cutting taxes than reducing the size of government.) It's because they're the usual reactionary crowd that goes nuts whenever there's a Democrat in the White House and they're looking for something to be outraged about

So while he rejects the goofy psychobabble, he accepts the underlying premise, that any opposition to expansion of government and its power of coercion over individuals is irrational.

So take your pick -- libertarians are either a) advocating limited government only as a psychological crutch to hide from ourselves that Obama is really our daddy or b) scheming reactionary nuts.  Whichever the case, remember that there can be no principled opposition to Big Brother.

Chinese Factories

TJIC writes:

Chinese factory conditions may not be the exact cup of tea for a San Francisco graphic designer or a Connecticut non-profit ecologist grant writer "¦ but they're, by definition, better than all the other alternatives available to the Chinese workers (or the factories would find it impossible to staff up).

I wrote previously:

One morning, a rice farmer in southeast Asia might faces a choice.  He can continue a life of brutal, back-breaking labor from dawn to dusk for what is essentially subsistence earnings.  He can continue to see a large number of his children die young from malnutrition and disease.  He can continue a lifestyle so static, so devoid of opportunity for advancement, that it is nearly identical to the life led by his ancestors in the same spot a thousand years ago.

Or, he can go to the local Nike factory, work long hours (but certainly no longer than he worked in the field) for low pay (but certainly more than he was making subsistence farming) and take a shot at changing his life.  And you know what, many men (and women) in his position choose the Nike factory.

Update: In an interesting question of incentives, Foxconn, the manufacturer much in the news for a rash of suicides at its plant in China, apparently pays about 10-years salary to the families of workers who kill themselves.  They have ended the practice, worried that they are incentivizing some of the suicides.

I'm Pretty Sure We Are Not Going to Get Any Deficit Reduction

Via Reason, from the man Obama personally appointed to lead the Deficit Commision

"America needs a 21st century economic plan because we now know the market-worshipping, privatizing, de-regulating, dehumanizing American financial plan has failed and should never be revived, worshipping the market again," Stern said in remarks at the annual conference of the liberal activist group Campaign for America's Future in Washington on Monday."It has failed America and everyone that works here," Stern said.

Stern said the changes that Obama and Democrats in Congress have made are nothing short of a "revolution" that will move the American economy from national to international.

"This not our father's or our grandfather's economy," Stern said. "We're as far today from the New Deal as the New Deal was from the Civil War. And we cannot drive into the future looking in the rear view mirror."

He said the progressive movement must build on the past and look to the future as the economy is transformed "from a manufacturing base, to a service, finance, knowledge, green, Internet, and bio-science economy."

"This revolution's going to only take 30 years," Stern said. "No single generation of people have ever witnessed this much change in a single lifetime. [...] And as we've witnessed now in the absence of a simple and realistic way forward, people "“ even us "“ sometimes resist the future or try to turn back the clock to days that are now long gone."

I am not sure I have ever heard anyone sound more like a scabby beauracrat in Atlas Shrugged.  Can you believe this dweeb along with Barrack and the gang who can't shoot straight taking credit for the transformatoin of the economy?  As if these guys have anything to do with the rise of new industries and technologies, except to make their birth and growth more difficult through strangling regulation and taxes.

The last paragraph about progressives and change is an interesting one in the context of this old post of mine, where I discuss how progressives most hate free markets for their constant change and unpredictability. Here is an excerpt:

Beyond just the concept of individual decision-making, progressives are hugely uncomfortable with capitalism.  Ironically, though progressives want to posture as being "dynamic", the fact is that capitalism is in fact too dynamic for them.  Industries rise and fall, jobs are won and lost, recessions give way to booms.  Progressives want comfort and certainty.  They want to lock things down the way they are. They want to know that such and such job will be there tomorrow and next decade, and will always pay at least X amount. ...

Progressive elements in this country have always tried to freeze commerce, to lock this country's economy down in its then-current patterns.  Progressives in the late 19th century were terrified the American economy was shifting from agriculture to industry.  They wanted to stop this, to cement in place patterns where 80-90% of Americans worked on farms.  I, for one, am glad they failed, since for all of the soft glow we have in this country around our description of the family farmer, farming was and can still be a brutal, dawn to dusk endeavor that never really rewards the work people put into it.

This story of progressives trying to stop history has continued to repeat itself through the generations.  In the seventies and eighties, progressives tried to maintain the traditional dominance of heavy industry like steel and automotive, and to prevent the shift of these industries overseas in favor of more service-oriented industries.  Just like the passing of agriculture to industry a century ago inflamed progressives, so too does the current passing of heavy industry to services.

In fact, here is a sure fire test for a progressive.  If given a choice between two worlds:

  1. A capitalist society where the overall levels of wealth and technology continue to increase, though in a pattern that is dynamic, chaotic, generally unpredictable, and whose rewards are unevenly distributed, or"¦
  2. A "progressive" society where everyone is poorer, but income is generally more evenly distributed.  In this society, jobs and pay and industries change only very slowly, and people have good assurances that they will continue to have what they have today, with little downside but also with very little upside.

Progressives will choose #2.  Even if it means everyone is poorer.  Even if it cuts off any future improvements we might gain in technology or wealth or lifespan or whatever.  They want to take what we have today, divide it up more equally, and then live to eternity with just that.   Progressives want #2 today, and they wanted it just as much in 1900 (just think about if they had been successful "” as just one example, if you are over 44, you would have a 50/50 chance of being dead now).

Update: What does the line about shifting form a national to international economy mean?  It must be some kind of progressive code phrase that does not mean what it sounds like, since most progressives and this administration tend to be opposed to free trade and have a strong tendency towards protectionism.  After all, these are the same guys that sympathize with the anti-globalization rioters at various G8 conferences.

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