Category: Current events

The Rise or Fall of Socialism

Countries that exert a high degree of control (totalitarian) over their citizens will always experience less “success” than those that exert little control. Less control means greater freedom to innovate and solve problems from the bottom up rather than the top down. Formerly socialist/communist countries (China, Vietnam) that have embraced the benefits of freedom (that is, free vs. state managed markets) within their borders have seen improved standards of living relative to those that have not (Cuba, North Korea, Venezuela).

False Equality

The irony of that position is that if the wage gap were employer driven, their supposed vice (greed) would quickly neutralize it. A properly “greedy” employer would seek out every women they can find in order to achieve a 20% discount on their payroll. In turn the unemployment rate for women would be 0%. But of course it is not.

Honey I Shrunk the Seat!

Such reflexive urges to regulate by those “in charge” of our lives are a predictable outcome of their glaring ignorance of basic economics. It is the usual story: government engages in Practice A which stealthily causes Harm B and so our great benefactors must now step in to save us from the very harm they caused in the first place. For example, the federal government, through its puppet the Federal Reserve, is constantly inflating the US dollar. This steadily erodes the value of said dollar until after many years the drips of annual inflation have carved a canyon of lost value. There are two ways to respond to this declining value: raise prices, or, maintain prices while reducing quantity/quality. For example, boxes of cereal now contain 15% less than they did only a few years ago but are marketed at the same price point. It is a surreptitious form of inflation that consumers don’t immediately recognize but is just as injurious to their buying power as is rising prices.

Policy by Prediction

EPA determined that flubendiamide could break down in the environment and potentially cause harm to a few aquatic species. Ok, sounds like some dangerous stuff, fair enough. But, it turns out this alleged harm is not based on empirical studies but is rather based on computer models that attempt to predict toxicology – “predictive toxicology” they call it. BayerCropScience, the manufacturer of flubendiamide, went on record stating that such models “exaggerate environmental risk.” Well imagine that, a computer model overstates the likelihood of a deleterious outcome in order to justify governmental intrusion into the market. Although science cannot be manipulated to service political interests, models surely can – click, click, here comes the desired result.

Trade Balance

The current trade deficit between the US and Mexico is $58 billion. That means that Americans purchased $294 billion in goods from Mexico but Mexicans purchased “only” 236 billion in US goods. In Trump’s mind (and many others) this constitutes a loss. Well if that is so I guess I had better stop buying my groceries from Publix – my family’s trade deficit with Publix is thousands of dollars every year! Yes, I would be much better off if I grew all my own food, than my trade deficit with Publix would be zero.

Trading Places

Sanctions or trade embargos are often put in place in order to influence the actions of the leaders of another country. Although there is not a single historical precedent for this ever working, it remains the most popular passive-aggressive tool in the arsenal of the state. The language used to speak of such embargos employs the ruse of anthropomorphization (“America” cuts off trade to “Iran”) in order to hide the underlying reality that rather than the target country being harmed it is the individuals that constitute that country that are harmed. See, it’s not millions of people being made to suffer; it’s just a nebulous non-human “country”.

Fighting against 1984

The State is getting nervous. Technology has a way of disrupting institutional power. … Encryption of our digital lives (personal electronic devices) is now threatening the power and relevance of the State. Encryption means we can manage our own security; we don’t need some nebulous State apparatus to keep us safe and secure. Nearly everything that is important to us (photos, messages, financials, medical info, etc.) is locked away securely in our digital treasure chest….But the State will have none of that. They demand the key to that treasure chest.

February 23 / 2016

Lost in Translation

Politicians are by and large disingenuous peddlers of envy, fear, and blame. Once having convinced their customer (the voter) to swallow that message they then proceed to sell them the cure: hope. And naturally they are the only ones that can turn that hope into a reality….The most successful candidate is the one who effectively deliver that formulaic message. To be clear, one can be elected without following this approach. But as soon as someone sets up this model, they are virtually guaranteed to come out on top. Witness both Trump and Sanders, two politicians who are deftly employing this message.

February 17 / 2016
Author Greg Morin
Comments 1 Comment

Called to serve?

Top military leaders this past week called for expanding the Selective Service System (the registration wing of the currently idle, but easily re-activated, draft) to include women. Their narrative is that it is simply a matter of fairness. Women currently serve in all branches of the military just as capably as men, so at face value there really is no practical reason to continue excluding them from registration. The fact that this is being brought up now may be entirely innocuous; it was bound to happen sooner or later. Or, it could be an omen that signals this country is setting down a path of expanding, not contracting, its role of interfering in the affairs of foreign nations. An expanding global empire after all requires an expanding police force to maintain order. After more than ten long years of endless warfare our currently all volunteer armed forces is thinning out as they are stretched like an ever expanding net around a globe that refuses to be tamed by American hegemony.

February 08 / 2016

Waterworld

By now many of you are likely aware of the contaminated water fiasco in Flint, Michigan that has apparently resulted in 77 cases of Legionnaire’s disease (and 10 deaths). It is indeed a tragedy of shattered trust. It is also darkly humorous to witness the acolytes of Statism (i.e. the faith that The State can protect us from all harms and correct all wrongs) are apoplectically flummoxed as to how such a thing could happen: “But, but, the state is supposed to protect us from the depredations of cost cutting profiteers!” The state is supposedly there to protect the weakest among us – so how ironic that those most harmed by this incident is the predominantly poor population of Flint. How could such a thing have happened? The problem is structural. Private ownership weeds out failure; public ownership protects it.

Now one might argue that since there are thousands of municipal water systems across the country that operate without any problems this is simply a fluke, an outlier and is not indicative of any sort of problem with government run water systems. That is a dangerous premise. It’s like arguing that one doesn’t need a seat belt because they’ve never been in an accident. The problem is not that random groups of people do not know how to provide clean water. The problem is that humans are imperfect and eventually a perfect storm of errors will accumulate until a calamity results. This can happen in both public and private entities. It is the response to the calamitous event that distinguishes public from private entities.

February 02 / 2016
%d bloggers like this: