Monthly Archives: February 2014

Ends and Means

Suppose the following: In order to prevent crimes against children there exist laws that require all residences and offices to be wired with cameras that record all activity. Furthermore, this practice has existed for decades and is simply accepted by the populace as a necessary intrusion of privacy. Most feel they have nothing to hide and so quietly accept the intrusion. Occasionally though this tool is used to harass and intimidate those who are out of favor with those running the State. Unfortunately though, in spite of these abuses, the acceptance of a “greater good” arising from this system weakens any widespread dissent. Now suppose an elected official finally objects to this system. Suppose they propose a repeal of the law enforcing this system.  Does this mean they are “for” crimes against children? Or does it simply mean they are against State sponsored violations of basic human rights? To take an even more extreme example: if it were shown that killing all males over the age of 30 entirely eliminates all crimes against children, should we thus enact such a law? If we did so, would the proposed repeal of such a law imply we are “for” those that would commit crimes against children?

It is entirely possible to be unified in the ends we seek while disagreeing over the most appropriate means to achieve those ends. Just because some particular set of means might achieve an end does not imply or prove it is the ONLY or BEST way to achieve that end. Objecting to an odious set of means does not imply an objection to its ends. Those that make such assertions are intellectual midgets, political opportunists all too eager to play upon the fears of the crowd as they employ cowardly straw man attacks.

So what is the point of my little tale above? To wit, Georgia Representative Sam Moore has introduced a bill (HB 1033) that would repeal all state laws related to loitering (defined as being on public property, ejection from private property is always permitted). Such laws empower local authorities to harass and intimidate (also known as profiling) those that they feel “look wrong” or “may be up to no good.” Current anti-loitering laws (GA §16-11-36) impose upon the citizens of this state a duty to produce proof of identity when such an inquiry is made under color of law enforcement. Current law states the officer may graciously allow one to prove their innocence “by requesting the person to identify himself and explain his presence and conduct.” To be clear this does not relate to probable cause (i.e. unambiguous evidence of potential or actual malfeasance), it solely relates to pure gut instinct, and nothing more. That these laws have stood for so many years is a ludicrous offense to a country supposedly founded on individual liberty. Sam Moore should be praised for his courage in opposing the status quo, not vilified with a false narrative.

But that’s not really the part of the bill that has gotten so many fired up. Legislation, like making sausage, is messy. Frequently new legislation that overrides parts of other unrelated legislation is added years later. Although the statutes related to loitering have nothing to do with restrictions on registered sex offenders, those statutes make reference to the loitering statutes so as to supersede any restrictions against them. Thus this bill (HB 1033) repeals those other statutes as well to ensure the complete and absolute abolishment of all anti-loitering laws. What ?!? Police can’t indiscriminately ask anyone for proof of identity just because they happen to be near a school or church? Clearly Sam Moore must hate children. It’s simply not possible that he is just as much against those that would harm children as his critics but simply feels there is a more effective route to achieving this end than maintaining Nazi-esque unconstitutional “prove-your-innocence” laws. These laws are in fact racist holdovers from the Jim Crow era recycled with a new purpose; to fool the credulous into believing the lie that such laws will protect our children. They do no such thing. They simply create a false sense of security that lulls us into complacency, making it more, not less, likely that such a predator will succeed.

 

Unionvergnügen

In the words of Bob King, President of the United Autoworkers Union (UAW), the UAW has no long-term future if they cannot expand their membership into Southern auto plants. And it looks like that day may come sooner than anyone expected: workers at the Volkswagen plant in Tennessee recently voted by a margin of 53-47% against joining the UAW. The loss is even more stunning considering that VW welcomed and actively encouraged the UAW with open arms. Why were they so welcoming? Not only do labor interests make up half of the Germany based VW board, but VW was also keen to establish a German-style “works council” in their American plants. However, American labor law barred them from doing so – unless workers were unionized. Oh the irony; anti-union laws actually induced a company to invite unionization. Talk about unintended consequences!

But all is not lost. Perhaps if Bob King and the rest of the UAW were to adopt a more libertarian stance toward labor laws and thus began a push to have all such laws repealed, the UAW might actually have a fighting chance. Why do I say this? Consider the vote; 47% of the workers actually WANTED union representation, but, as with union voting and democracy the “majority rules” so the desires of the minority are simply squashed and ignored. But what if the 47% that wanted to join were simply allowed to join and the 53% that didn’t want to join did not? Would the sky fall? VW could deal with the 53% just the way they always have and then also deal with the newly unionized 47% however the union wished to proceed. If the union could accomplish those things it claimed for the workers then more workers would join of their own free will. And if the union failed to deliver, then workers would be free to leave as well. If VW wants to establish a “workers council” then let them. Why should some law stand in their way? But this law slashing cuts both ways. If the UAW approached say a Toyota plant but Toyota wanted nothing to do with the union then that is also their right. There should be no law forcing Toyota to negotiate with a union just as there should be no law forcing an employer to hire certain people. Freedom to choose with whom you associate is a fundamental natural right and it should not be abridged for wholly arbitrary and misguided notions of “fairness” implemented by sore losers that didn’t get their way.

Now some might say “oh that could never work, the non-unionized would “free-ride” off the non-exclusionary benefits of union backed negotiations.” Beyond better candy in the vending machine or more comfortable climate control settings I’m not really sure what these benefits could be, but even if that were the case, surely the value of the exclusionary benefits should vastly outweigh the trivial non-exclusionary fringe benefits of union proximity. One may derive some personal enjoyment benefit from viewing the country club’s grounds but such benefits pale in comparison to the amenities that the paying members may enjoy. If that is not the same situation with a union then that is one pathetic union.

In order for everyone to exercise their right of free association all laws relating to unions and labor must be repealed. Laws that compel union membership are as injurious to liberty as laws prohibiting it.

Defending the Undefendable? Walter Block addresses causes, not effects

On January 25, 2014 the New York Time’s published an article “Rand Paul’s Mixed Inheritance” in which they used highly edited and de-contextualized quotes from Dr. Walter Block (eminent and highly regarded libertarian scholar and economist at Loyola University) from an interview they had with Walter shortly before the article went to press. When The Daily Show makes light and distorts the words of Peter Schiff we understand they are mere clowns and it is their job to distort the truth in order to elicit a humorous response. However, when a publication such as the New York Times engages in such behavior we are slipping into the world of state-sponsored Pravda-esque media that deliberately distorts the truth in order to prop up the statist status quo by painting the picture that anyone who does not believe as they do must be “crazy” and if they do not appear to be “crazy” then it is perfectly acceptable to distort and misrepresent what they say in order to give that appearance (e.g. the Mises Institute comments in that article are so far off the mark it is laughable).

Subsequent to the Times article being published several members of the Loyola faculty as well as its President published open letters denouncing Dr. Block’s words. Tom Wood’s has built an excellent resource page giving all the relevant background for those interested in learning more. As a part of this effort to right the wrong against Dr. Block I submitted my own letter in response to the original knee-jerk finger pointing going on at Loyola. Here is my submission (with some slight style editing here):

15 February 2014

To: President, Faculty and Staff of Loyola University

The fact that you are so aghast at Walter Block’s recent remarks in the New York Times and elsewhere only serves to underscore why it is so important he continues to make the same point again and again. You are not simply missing the point – you are not even aware there was a point. Your indignation is wholly predicated on your (quite correct) disdain for the effects of slavery (violence, exploitation, horrendous living conditions, etc.) But that is not at all what his remarks pertained to. He was addressing the root cause and propagator of slavery: force. And how is such force made manifest both then and now? Government. Government (pre- and post- US revolution) protected, condoned, supported and legalized slavery. All the things you decry in your response were a RESULT of the very thing (force) he was denouncing.

Do you or do you not agree with the following sentence?: “<X> is good, but if <X> is forced upon the individual then it becomes <forced-X> which is bad.” If presumably you agree with this sentiment, then you must agree that by inserting the word “labor” for “X” we are left with nothing other than the very message Dr. Block was conveying. That is all.

Now, with respect to his characterization of slavery (i.e. the effects of slavery) being not “so bad” all I can say is that you clearly have never met the man, read his books or listened to any of his lectures. Were that the case you would realize he was merely engaging in pedagogical hyperbole in order to provoke a response that seizes the attention of the listener. To elicit thoughtful reflection from a student/listener, the deft lecturer will sometimes employ (obvious) exaggeration to invoke an [transitory] emotional response. Your decision to [remain mired in emotionalism] engage in a knee-jerk emotional response rather than [moving on to] thoughtful contemplation says more about your own intellectual intransigence than it does about your mistaken presumptions regarding Dr. Block’s beliefs. His provocation was meant solely to compel the listener to acknowledge the sheer futility of being angered by effects whilst simultaneously ignoring their very cause. Your response has only served to unwittingly demonstrate how correct he is in his efforts to spread this message.

Sincerely,

Dr. Gregory T. Morin

Life, Liberty and Oligopoly for All!

Life, liberty and the pursuit of happiness: the protection of these rights is the bedrock upon which any legitimate government is founded (if such an oxymoron is possible). However, apparently somewhere along the way “oligopoly” was added to the list of inalienable rights. To wit, the latest example of such protectionist behavior was filed in the Georgia House of Representatives on February 5. A bill (HB907) was introduced that would expand the onerous taxicab and limousine regulations in order that they encompass the activities of internet based ridesharing services such as Uber and Lyft. For those unfamiliar with these services, they use a smartphone app based system to connect people that need transportation with those willing to provide it. Like the Internet it is peer-to-peer interaction with the host company merely maintaining the communication backend. It is a lean and efficient system that translates lower operational overhead into lower consumer costs. All drivers undergo a background check and vehicle inspection before they can sign up. To weed out both undesirable drivers as well as passengers these services employ a self-regulating Ebay-style reputation/feedback system.

These services are faster, often cheaper and can quickly respond to increases in demand, so it should come as no surprise that they’ve been having an impact on the bottom line of the traditional taxi services – many of which still don’t even accept credit cards in the cab. Taxi companies don’t like competition. So what do they do? Do they turn to government and ask “Why don’t you remove all your burdensome regulations so we too can operate more efficiently and at lower costs?” No. Instead they demand that if they must drag a 100-lb boulder everywhere they go, then so too must everyone else. In reality they never would ask for regulations to be repealed. Many had a hand in crafting them. These regulations artificially suppress the supply of service (oligopoly) so as to maintain elevated prices. As an industry, taxis operate nationwide under a byzantine set of rules that permit the local government (and often competitors as well) to determine, in their sole discretion, the precise perfect quantity of taxis needed in their jurisdiction. Once that is determined, taxi owners are allowed to purchase from the government that quintessential symbol of their “public necessity” role – the taxi medallion. The medallion is nothing more than a glorified business license, albeit an artificially limited license. To imagine how limiting the quantity of licenses issued for a service might affect prices paid by the consumer, imagine if, say, another occupation that is also bizarrely licensed by the state – barbers – (really? we really need government to ensure we get a good haircut?) were restricted to just one barber per town. Sure that one barber earns more, but everyone else loses. In the same way, the taxis that already have their medallion stand to benefit by using government to artificially limit who can participate in the taxi market.

When discussing this bill in public the taxi companies are not foolish enough to divulge it’s all about protecting their oligopolistic profits; no, they claim, (as do all politicians looking for an excuse to control our lives), it is about “public safety.” Yes, because clearly when someone is paying you for a lift you lose all ability to competently operate an automobile. Cars function completely differently when a paying passenger is in them as opposed to a non-paying passenger. Yes, how stupid of me to not realize this fact.

It’s a good thing we have government, otherwise how else would we be protected from the evils of innovative businesses attempting to compete with ossified fascist oligopolies.

President’s Ponzi Pontifications: MyRA

Amongst the expected ideologically partisan propaganda trotted out by President Obama during his recent state of the union address was a rather interesting proposal: MyRA. It reveals something we knew and something we didn’t know. We knew the President is so hopelessly ignorant of basic economics that he can’t possibly understand why people are insufficiently saving for retirement. What we didn’t know, however, is how perilously close we are to a federal government implosion (this is actually good news!).

In his address he says, “Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension.”  So, his proposal is to create what is essentially a new kind of retirement account (cleverly dubbed “MyRA”) as though a lack of IRA options currently presents a barrier to retirement savings. Please. Saving (for anything) necessitates a deferment of present gratification. That is a hard sell since basic human instinct is to “live for today” (just ask a child to wait to open their presents). As adults we understand that the future is uncertain and therefore saving is prudent, but we never completely shed our preference for present goods versus future goods. So with the deck already stacked against us, is it any wonder that an incentive-distorting program such as Social Security would decrease rather than increase rates of saving? Under the (false) assumption that we are “guaranteed” Social Security for retirement the natural instinct then is to save less. Even if one is still inclined to save in spite of Social Security promises, the ability to do so is made that much more difficult by virtue of Social Security & Medicare’s 8% confiscation of gross income. This of course ignores all the other federal, state and local taxes we pay on top of that. To put it bluntly Mr. President, there just isn’t that much left to save thanks to government interference.

Even setting aside the adulteration of normal incentives, as a retirement option the MyRA is a terrible choice. Given the multiple flavors of privately managed, tax-favored IRA plans already in existence, why exactly do we need a government managed plan? What benefit(s) does this government plan offer the consumer? None. Conversely though it offers one key benefit to the government: instantaneous use of the “invested” funds (please note mechanistic parallel to a Ponzi scheme). The retirement investment market is measured in trillions of dollars and the government would like nothing more than to divert some of that their way. But even beyond the ideological choice of not lending money to a bankrupt regime this investment fails. It is not a real investment. You are simply loaning money to the government. They do not create anything of value from it; they simply consume it (rather inefficiently). On top of that they only promise a paltry 2% return (that doesn’t even keep up with inflation). In order for you to get your money back the government has to pick the pockets of everyone else through taxation and/or inflation. The MyRA program amounts to nothing more than a voluntary (for now) extension of Social Security. Social Security funds are exchanged for treasury notes and immediately spent. MyRA funds too will be exchanged for treasury notes and immediately spent. A MyRA owner and Social Security recipients are left with but a handful of paper treasury notes whose only value is derived from the fact that the US government has the military might to extract those resources out of its citizens in a demographically collapsing Ponzi scheme.

This desperate act is good news though. This penultimate plea to the public to lend them money is the death rattle of a dying, amoral, bankrupt regime. As history has shown, all empires ultimately collapse due to financial, not military, plundering. Death always comes from within, not without.