Among the issues most commonly discussed are individuality, the rights of the individual, the limits of legitimate government, morality, history, economics, government policy, science, business, education, health care, energy, and man-made global warming evaluations. My posts are aimed at intelligent and rational individuals, whose comments are very welcome.

"No matter how vast your knowledge or how modest, it is your own mind that has to acquire it." Ayn Rand

"Observe that the 'haves' are those who have freedom, and that it is freedom that the 'have-nots' have not." Ayn Rand

"The virtue involved in helping those one loves is not 'selflessness' or 'sacrifice', but integrity." Ayn Rand

For "a human being, the question 'to be or not to be,' is the question 'to think or not to think.'" Ayn Rand
Showing posts with label government. Show all posts
Showing posts with label government. Show all posts

19 October 2024

Government Spending as a Measure of Individual Freedom

I am a rational individualist.  As such, I cherish the ability to make the decisions of what my own values in life are and how I will achieve them.  Basically, I want as much control over my life as possible, without infringing upon the equal rights of others to life, liberty, property, and the pursuit of happiness.

We are now voting or about to vote in a major national election, which as such elections are wont to do, will bear on the ways and broad degree in which governments will exercise control over our lives.  The core legitimate function of governments is to prevent others from depriving us of our individual rights to life, liberty, property, and the pursuit of happiness.  There is a small sphere of other functions of governments which extends to cover situations in which the scale of resources required to address a problem of the general welfare and/or the range over which that issue extends is so great that only governments can reasonably handle them.  In this set of functions, I would include a role in transportation systems, international trade, pandemics, the mail in the early USA, and dangerous substances and pollutants.  However, our governments are much, much too bossy and controlling today.

Our governments take and spend far too much of the money those of us in the private sector earn through our hard work.  We ought to be very conscious that the money they take is a taking of many hours of our lives.  The taking of those hours represents a very real form of enslavement.  Governments do not stop with taxation.  They require endless paperwork, especially directed at businesses in the private sector.  They also make many irrational laws that limit our choices.  These limitations on our choices may totally deny us the pursuit of perfectly valid values or they make us pursue them in very inefficient ways.

As a rational individualist, when I face an election, my primary focus is on how can I vote to minimize the growth of governments, which I believe are uniformly too damn big.  As the population of a country grows and as its economy grows, it is reasonable that government will spend more money.  Some of the legitimate functions of government grow as the population grows and some grow as the economy grows.  At least prior to the massive illegal immigration under the Biden administration, the economy has grown in the U.S. faster than the population has grown.  Our governments ought not to have grown faster than GDP in that case.

The GDP is the sum of the private sector economy and that of government spending -- federal, state, and local.  A large portion of the control of the governments over the individual can be measured by the amount of government spending.  As noted above, this leaves out the effect of many irrational laws and mandates and of many regulations, so it is only a partial measurement.  Let us examine the size of the federal government and of all government in the United States as a percentage of the GDP:


The most recent data is for the second quarter of 2024.  The Q1 2020 data was used because this preceded the spikes in government spending due to Covid 19.  The Q4 2016 data was chosen since it immediately preceded the Trump administration.  Q1 of 1960 was chosen because that was the earliest Federal Reserve data I readily could find covering All Government Spending and it was within my long memory of life.

I did not think that the U.S. had far too little government in 1960.  If anything, it seemed too big and intrusive even then.  Since then, the federal government percentage of the GDP has grown by a factor of 11.50!  Total federal, state, and local government spending as a percentage of the GDP has increased by a factor of 10.67.  Total government spending is now 43.74% of GDP, while federal government spending alone is 29.56% of GDP.

I very much feel the reduction in my freedom that has been caused by this insane increase in the size of government.  This added spending comes with ever-increasing laws and mandates, regulations, hours of paperwork, and a host of infractions of our many and broad individual rights.  Governments are imposing restrictions on our freedom of speech, our freedom of association, our freedom of assembly and the right to petition governments when they err, our property rights, our privacy, our ability to educate ourselves and our children, our ability to earn a living, our freedom to pursue excellent health care, our freedom to invest money, our independent opinions (pandemics, so-called climate change, history, Marxism, and so-called social justice), and the equality before the law of individuals no matter what their ethnic origins may be.

The private sector allows us the broadest freedom of choice that can be available to us.  Government when expanded beyond its core legitimate functions, reduces that freedom of choice.  Government has the monopoly on the use of force.  When we turn to government to do something, we do so for the purpose of unleashing that use of force or at the least the threat of using it.  I prefer a society in which force plays as minimal a part as possible.  In fact, government is supposed to do just that.  It is supposed to minimize the use of force -- not to become the biggest, most threatening brute in the nation.  Unfortunately, irrational, dangerous brutes are exactly what our governments have become.

Both Democrats and Republicans have been guilty of growing governments way beyond their rational limits.  Nonetheless, it is the Democrats who are almost always seeking to spend the most and seeking the most control over our lives.  The Democrat Party has always been the party of slavery.  When a party acts to prevent another such restriction of our individual rights, it is usually the Republican party.  I believe this is still the current case.  Republicans are usually more interested in individual rights than are Democrats.  The Democrats used the Covid 19 pandemic (even after it was over) and their false claims of catastrophic man-made global warming as excuses to massively expand government budgets and controls.  This is in accordance with their maxim that no crisis should ever go to waste as an excuse to expand the role and size of government.

This expanding role is very evident in the employment statistics that show that most of the hiring for many months has been for government jobs and for the health care industry, now principally run and controlled by governments.  There will be no way to even pretend that the people are not enslaved when governments employ everyone or completely control every industry in America.  We know how that has turned out in the USSR, Nazi Germany, Red China, Cuba, and Venezuela.  Despite all of these historical lessons, the Democrat party is eagerly pursuing a mixed Marxist and Fascist model for governing the United States of America.  This effort must be opposed at the polls if we are not to lose the ability to exercise many more of our individual rights necessary to the management of our lives as rational beings.

10 October 2020

Joe Biden's Infrastructure and Green Energy Jobs Will Force You to Join a Union

Joe Biden gave a talk to a few union workers in Eire, Pennsylvania today.  He spoke about the many jobs he was going to create as our next President.  His plan is simple and very simple-minded.  He will force us to spend huge amounts of money on "green energy."  This will create jobs.  He will spend huge amounts of money building government schools.  This will create jobs.  He will make college educations free, which will create jobs.  He will provide people up to $15,000 as down-payments on new homes.  This will create jobs.  He promises that these jobs will all require union wages.

He could also replace all the bulldozers with shovels and claim he was creating jobs.

Jobs that last are those that increase the productivity of people and raise our standard of living.  So-called "Green Energy" jobs that replace inexpensive, dependable, and in the modern era, clean, coal, oil, and natural gas energy with expensive, intermittent wind and solar energy, do not increase productivity and do not raise our standard of living.  As I have proven over and over, coal, oil, and natural gas energy are not bringing on catastrophic man-made global warming.  That hypothesis has failed to live up to its constant and determined hype by those who are always looking for an excuse to increase the power of governments in the micromanagement of our lives.  "Green energy" has only managed to increase the cost of energy to date and to make our power grids more vulnerable to blackouts.  By raising energy costs, it has reduced employment throughout our economy in all businesses that use electric power.  These reductions tend to be diffuse and hard to point at, but any requirement that raises the cost of doing business has to result in fewer jobs.

Having realized he might lose some states if he maintains his pledge of a few months ago to end fracking, Biden now claims he absolutely will not end fracking.  Though he will rejoin the Paris Climate Accord and eventually end the use of all hydrocarbon fuels, which does sound like the end of fracking to any rational thinker.  His current stance is that he will not allow it on federal lands and since he is largely against allowing pipelines to be built, he will limit its ability to get to markets.  Clearly, Biden cannot be trusted on the fracking issue.

What our education system needs is an infusion of the freedom to choose.  We do not need more government-run schools.  Government-run schools tend to become as well-managed as the Departments of Motor Vehicles, the Veterans Administration, the Social Security Administration, the Postal Service, or Fannie Mae.  We need better teachers.  We need more teachers who are not from the bottom quarter of college graduates.  We need better education curricula.  We need students to learn real history and economics -- not the hysterical fables the socialist left teaches.  We need to teach students to do math and to write coherently on serious subjects.  We need to encourage rational thought -- not simply promote stream of consciousness and to perpetuate childish feelings.

The government and most other schools too are in the hands of the socialist left, which is not surprising given that the vast majority of the educational establishment is in the hands of government.  As long as its center of gravity is the government, the thinking of education professionals will be dominated by those who want a never-ending increase in the power of government.  There is no surprise that those who want this are always seeking justifications such as group identity politics infused with critical race theory, peak resource production, claims that businesses only want to crush their customers, and predictions of catastrophic man-made global warming.  One has to scare the people into accepting being forced to comply with evermore mandates.

Jobs building more government schools will displace jobs in the private sector devoted to the goods and services individuals choose of their own free will.  It will ultimately take resources away from addressing the real needs of an educational system that would actually prepare students to become productive workers and freedom-maintaining citizens.  Those needs are best met by allowing the education system to become a vital part of the private sector.  Biden and the Democrats want at all costs to prevent that from happening.  The government-run school teachers unions are their strongest supporters.  

Accept a free college education and you are absolutely accepting a curriculum of propaganda approved by the government.  I should not have to say more to a freedom-loving individual.  Furthermore, that which is free, is not valued.  Free college educations will surely become an education in how to party.  Imagine what students will learn about binge drinking, drug use, and promiscuous sex.  All taxpayers should be delighted with the prospect of working hard in their jobs and giving a larger fraction of their pay up so more students can be educated in how they are mostly racist monsters (so-called whites), male chauvinists (all males), mean-hearted and selfish suppressors of the people (all who have above average income or wealth and are in the private sector), or Gaia rapists (all who use the resources of the Earth).  Nonetheless, private sector employers are expected to hire the partying experts and the private-sector business haters the free colleges will produce.  This is Biden's planned future.

New home down-payments up to $15,000:  In a fantasy world in which government can make anything and everything free without hurting everyone, why not?  Sure free education, free homes, free meals, free health care, free jobs  -- in exchange for our votes.  Actually, Biden claims all his freebies will only come from those making more than $400,000 a year, whatever that means.  This comes on the heals of massive, unnecessary business shutdowns in the Covid-19 scare and huge government relief bills that have run up our national debt already to otherworldly levels.  All of this has to be paid for and it will come out of our hides in the future loss of many other values we might have chosen as individuals.  This socialist free lunch is a fantasy with a deep and fearsome bite.

Those jobs Biden promises are promised to be good Union jobs.  Yes, he promised the union leaders he was talking to that he would ensure that the jobs he would create would be union jobs.  Most Americans do not want to be forced to join a union.  I, as an employer, do not want to be forced to share my management judgment with union leaders, almost all of whom are Mafia or Communists and none of whom are suitable partners in my business.  Your future with Biden and his socialist Democrat Party hosts is one of forced union dues and rules or the sharing of the management of your business with corrupt, inept union leaders.

With Biden as President, I see a future in we are all much more subject to the use of government force to make us do the bidding of the Socialist Democratic Party elitists.  Far more often, they will tell you which of your values you will be allowed to pursue and far more often they will take the resources from you that would have allowed you to pursue your own chosen values.  They will use those resources to pursue their values, which will often be designed to hurt you.  If you think that the people, who want the kind of power that characterizes the elite of the Socialist Democrat Party, care about you as an individual, you are incredibly gullible.

Government has a monopoly on the use of force.  This makes government the most dangerous institution we have to live with in our society.  When government takes on functions beyond those of protecting our freedom to exercise our many and broad individual rights to life, liberty, property, and the pursuit of happiness, it necessarily starts choosing who it is going to hurt.  Its justification for hurting some is always couched in terms of helping others.  Most people accept that because they do not understand that the free market private sector is where relationships are based on mutual benefits, not one side wins and one side loses.  When government takes on massive numbers of functions, there are vast numbers of losers and some winners.  The winners are those who make a profession of cozying up to the government elite.  This is why the suburbs of Washington, DC are among the very richest in the nation.  The losers are most Americans, few of whom have any idea how much they have lost.

16 November 2018

Climate Change and Forest Fires - Alarmists Desperation to Promote Fear

The Center for Climate and Energy Solutions says:
Large wildfires in the United States burn more than twice the area they did in 1970, and the average wildfire season is 78 days longer.
Research shows that changes in climate, especially earlier snowmelt due to warming in the spring and summer, have led to hot, dry conditions that boost this increase in fire activity in some areas. For much of the U.S. West, projections show that an average annual 1 degree Celsius temperature increase would increase the median burned area per year as much as 600 percent in some types of forests.
DW.com, a German news organization, says:
Unusually large wildfires ravaged Alaska and Indonesia in 2015. The following year, CanadaCalifornia and Spain were devastated by uncontrolled flames. In 2017, massive fires devastated regions of Chile - and now, a deadly blaze in Portugal has claimed dozens of lives. 
 So, have wildfires actually increased globally, or does it just seem that way because we're tuned in more to bad news and social media? 
Science suggests that over the past few decades, the number of wildfires has indeed increased,especially in the western United States. According to the Union of Concerned Scientists (UCS),every state in the western US has experienced an increase in the average annual number of large wildfires over past decades.
Extensive studies have found that large forest fires in the western US have been occurring nearly five times more often since the 1970s and 80s. Such fires are burning more than six times the land area as before, and lasting almost five times longer. 
National Geographic says:
Fires are natural in California: Many of its ecosystems, from the chaparral of Southern California to the northern pine forests, evolved to burn frequently. But since the 1980s, the size and ferocity of the fires that sweep across the state have trended upward. Fifteen of the 20 largest fires in California history have occurred since 2000

The graphic above shows why: Most of the state’s hottest and driest years have occurred during the last two decades as well.
Over the past century, California has warmed by about three degrees Fahrenheit. That extra-warmed air sucks water out of plants and soils, leaving the trees, shrubs, and rolling grasslands of the state dry and primed to burn. 

Let us provide some perspective and context to the relationship of forest fires to climate change by looking at a graph of US acreage destroyed by forest fires that Prof. Howard "Cork" Hayden drew to my attention:


We see that claims that "wildfires" are at an all-time high in the last couple of decades or that they are more severe in the 1999-2018 period than they were in the 1895-1914 period are clearly cases of cherry-picking the data to make a bogus point.  That bogus point is the claim that man's use of fossil fuels resulting in carbon dioxide emissions is the cause of more "wildfires", a scarier term than forest fires.  To be consistent with the claims, the atmospheric concentrations of carbon dioxide would have had to be at their maximum in the 1930s and they would have had to drop off greatly in the 1940s and 1950s, before rising slightly since 1999.  Unfortunately for these storytellers, carbon dioxide has generally risen throughout this time-frame.  But they count on the public not cross-examining them.  They only care to frighten people to get them to adopt energy policies that will cause energy use costs to soar and make energy supply much less reliable.  Their game is very similar when they claim that severe weather events are on the rise and caused by man's use of fossil fuels as well.

The Catastrophic Man-Made Global Warming and Climate Change alarmists are ever more desperate to create the fear they need to further damage free markets and the voluntary, cooperative associations people form to pursue their own self-chosen values and their own dreams.  A substantial fraction of these environmentalists literally want a planet with billions fewer people on it.  The welfare of mankind is not on their agenda.  The alarmists generally want ever so badly to scare people into giving up the exercise of their individual rights and to subject themselves to the ever-increasing demands of governments controlled by those elitists who claim they know better than we do what is good for us, or if not for us, for the planet.  They are sure that if we will only succumb to their use of force to micromanage our lives, they can provide us with better lives or with worse lives in the name of some planet god.

Of course those of them who actually do gain control of the levers of power do not actually care whether our lives are made better or not.  They have the track record to prove that their priority is power, not the improvement of our lives.  And now Nancy Pelosi is back to tell us that legislation has to be passed so we can find out what is in it.  There could not be a more blatant demonstration that it is the power given the government that is the real reason for the laws the elitist power-lusters want, not the welfare of the people. The Catastrophic Man-Made Global Warming scare is but one of their tools to acquire power, not just national power, but worldwide power.  To gain that worldwide power they must also subvert the U.S. Constitution in the name of a superior globalist law.

09 August 2018

Progressive Experts are Superior to Parents in Raising Children -- So They Claim

The 1930 White House Conference on Child Health and Protection under the Hoover administration claimed that progressive experts were superior to parents in raising children in the Progressive Age because "it is beyond the capacity of an individual parent to train her child to fit into the intricate, interwoven, and interdependent social and economic system we have developed."

Do not wonder why the public schools to which parents are forced to send their children are so disdainful of parents and their values and their attempts to play an important role in the education of their own children.  If individual parents were incapable of performing these roles in 1930 because society and our economic system was so complex, then in 2018 parents must be vastly less capable.  Indeed, that job is a hard one.  Yet, I have seen no evidence that Progressive Experts are better able to handle that difficult task.  Indeed, they have proven themselves to be unusually blind to the reality of our society and of our economic system.  If the average parent is wanting in this task, it does not follow that the Progressive Expert is not vastly more wanting in the job of raising children.

The public schools are used as a wedge between parents and their children.  Many parents are inclined to forfeit much of their role as parents to the schools and in some cases to government agencies other than the schools.  In effect, the government becomes a force that diminishes the role of parents and substitutes its one-size-fits-all ideas for raising children.  This control over children allows them to form children as willing subjects of ever-increasing government incursions against individuality, independent and rational thinking, and individual rights in favor of collectivism and a willingness to accept the authority of government officials.

But since the Progressive Experts (Elitists) have declared the parents incompetent in the raising of their own children, this is all done for the good of the child.  The parents have been designated the Deplorables since at least 1930 by the Progressive Elitists.  Actually, they were so designated by some socialists in America about 100 years before that.  Never mind the wondrous claim that these Progressive Experts implicitly make that they do not even have to know any more about your child than will fit into a simple classification system.  Every child is a stereotype of that simple classification system.  What decent parent can tolerate this treatment of our children?  We, unlike the Progressive Elitist Education Experts, at least know our children as individuals.  What could be more important than that knowledge in educating children and preparing them for adulthood?

03 February 2017

Thoughts on Collectivists and Progressive Elitists from Notes to a Friend

In the reaction to President Trump's efforts to reduce the scope of government, some key characteristics of the collectivists, socialists, and Progressive Elitists are more openly clear than usual.

The socialists are going berserk.  Hysteria is a key component of socialism.  The madness of crowds, the imagined evils of business, the fears for the environment, the dislike for mankind and man's need to control his environment, the dislike for unequal accomplishment and award, fear of uncertainty, and the fear of being independent or of having to think independently.  Hysteria, alarmism, fear -- they all make the socialist want to trust his life and its care to government and to the collective.


Collectivists and Progressive Elitists are known to be less charitable than conservatives are and I am sure than libertarians are as well.  They look into their own souls and they see a lack of benevolence.  They are ashamed. They seek a cheap and easy way to convince themselves that they are benevolent.  By using the force of government, they can choose the causes of "benevolent" action and dilute the cost to themselves in time and money by making everyone contribute to their chosen causes.  Despite putting a gun to the head of others to achieve their goal, they convince themselves to an extent that they are now benevolent, but that conviction is most uncertain and uneasy.  It is difficult to completely evade the fact that they have done harm to some in order to fill the hole in their own souls.  They are cursed with at least the vague notion, that unlike them, the good man finds it easy and natural to view most other men in a benevolent manner because he sees introspectively his own good and noble soul and naturally tends to project that evaluation of what it is to be a man onto others.


25 October 2016

A Government Fraud - Take a Bonus to Re-enlist for the CA National Guard

Government lawyers in the Pentagon are demanding that California National Guard members who took bonuses to sign up for re-enlistment and future possible deployments to Iraq and Afghanistan ten years ago, now have to pay back those bonuses.  The government was not authorized to make them.

Now, how likely is it that the service members knew that government officials were unauthorized to offer the bonuses that helped the government to solve its shortage of war-fighters?  Of course most people hearing about this wonder how hard it would be for them if the government asked them to pay back $15,000 the government may have given them 10 years ago for any reason.

But worse than that, the government is compounding its mere incompetence with a very dramatic fraud.  Men extended their enlistments knowing they would likely be sent to Iraq or Afghanistan and might lose their lives or their limbs or their minds fighting there. But now they learn that the bonuses were a case of fraud upon their trust in their government!  Effectively, it was just a trick to help the government steal their labor, their lives, their limbs, and their minds.

Well, what can you expect of a government that expects everyone except high politicians and high bureaucrats to obey the laws?  It is government by fraud for the fraudsters laid heavily upon the defrauded.  This is a fine substitute for the Rule of Law.  The People are now no more than fleeced sheep in the hands of these monstrously evil rulers.  There is a multitude of such frauds, but this is one of the more egregious of that multitude.

Update:  Today, 27 October 2016, the policy of recovering the bonus money was revoked due to complaints by some Congress members, at least some of whom recognized the offering of bonuses to be later taken back as fraud.

23 April 2016

Dr. Allen on The Great Green Fleet, Chicken Fat, and Hillary Rodham

Dr. Steven J. Allen's article on the green energy deception called The Great Green Fleet, Chicken Fat, and Hillary Rodham is a good read.  You will learn that the Protecting Americans From Tax Hikes Act of 2015 hides green energy special treatment in plain view.  The name of every law produced in Washington is designed to hide a plethora of harmful actions in the bill.  The green energy industries are almost entirely predicated on special interest legislation at the federal and state government levels, whether it be subsidies, mandates, or tax advantages.  Very little of the green energy industry can stand on its own two feet.  Or is it its own hundred feet like the nasty insect it is?

25 February 2016

The Educational Attainment of Americans Before 1850

It is widely assumed that few Americans prior to 1850 and the development of government-run school systems were capable of reading and that knowledge was sparsely distributed.  This is a myth which there is much evidence to refute.

Here is an excerpt from an article by Andrew Berstein which was published in The Objective Standard, Vol. 5, No. 4 (2010) under the title The Educational Bonanza in Privatizing Government Schools.

Prior to the mid-19th century, government schools did not exist in America. All schools were private, and education was widespread and outstanding. For example, in the Middle Atlantic colonies during the pre-Revolutionary period, professional educators established numerous schools to satisfy the demand for education.15 Philadelphia, for instance, boasted schools for every subject and interest. Between 1740 and 1776, 125 private schoolmasters advertised their services in Philadelphia newspapers—this in a city whose population was miniscule relative to today. Professional educators provided mentoring services in English, contemporary foreign languages, science, and a wide variety of other topics.16 Children who grew to be such brilliant scientists, writers, and statesmen as Benjamin Franklin, Thomas Jefferson, and George Washington received their education at home or in private schools.
(As to higher education, by the late-18th century six private colleges operated in the colonies: Yale, the College of New Jersey [Princeton], the College of Philadelphia [Penn], Dartmouth, Queen’s [Rutgers], and Rhode Island College [Brown].)17
Predictably, the educational results of such a free educational market were superb. The literacy levels of Revolutionary America were remarkably high. For example, Thomas Paine’s book, Common Sense,written in plain style but enunciating sophisticated political principles, sold 120,000 copies during the colonial period to a free population of 2.4 million (akin to selling 10 million copies today).18 The essays of The Federalist, written by Hamilton, Madison, and Jay in support of a Constitution for the nascent republic, were largely newspaper editorials written for and read by the common man.
Sales of American books and educational materials in the early- and mid-19th century likewise indicate a high national literacy rate. Between 1818 and 1823, while the U.S. population was under 20 million, Walter Scott’s novels sold 5 million copies (the equivalent of selling 60 million [actually more than 77.5 million] copies today). Early in the 19th century, The Last of the Mohicans by James Fenimore Cooper likewise sold millions of copies.19 The McGuffey’s Readers, first published in 1836, routinely used such terms as “heath” and “benighted” in third-grade texts. They asked such questions as “What is this species of composition called?” and gave such assignments as “Relate the facts of this dialogue.” The fourth-grade reader included selections from Hawthorne, and the fifth-grade text, readings from Shakespeare. “These were not the textbooks of the elite but of the masses,” explains Thomas Sowell. “[F]rom 1836 to 1920, McGuffey’s Readers were so widely used that they sold more than 122 million copies.”20
Given the high quality of education in early America, it is no surprise that two renowned French visitors observed and reported on the phenomenon. In an 1800 book Vice President Thomas Jefferson commissioned, titled National Education in the United States of America, Pierre Du Pont de Nemours reported that Americans received an education far superior to that of other peoples. “Most young Americans,” he wrote, “can read, write, and cipher. Not more than four in a thousand are unable to write legibly.”21 Several decades later, Alexis de Tocqueville wrote in Democracy in America that Americans were the most educated people of history.22
The bracketed text in red is my correction.  Footnote 17 explains that Harvard College, King's College in New York City (now Columbia University), and William and Mary College in Williamsburg, Virginia, which are all private colleges now, were founded by governments.  Harvard was founded by the Massachusetts Bay Colony and King's and William and Mary Colleges were founded under Royal Charters in the colonial period.  It is clear that the 1800 book Vice President Thomas Jefferson commissioned, titled National Education in the United States of America, Pierre Du Pont de Nemours stating that "not more than four in a thousand are unable to write legibly" did not include slaves.

The idea that a private education system would leave many Americans less educated than the government-run education system of today is belied by this history and by the fact that the approximately 11% of schools today that are private out-perform the government schools readily.  Home-schooled children also greatly out-perform government-schooled children.

The government-run schools have little reason to teach children good reasoning skills, the knowledge they need to earn a living, and the habit of independent, critical thinking.  Without these attainments, it is a very uphill battle for individuals to achieve wisdom and the necessary skills to make their own value choices well.  Government-run schools have a tendency to propagate myths that support Big Government and diminish the exercise of individual rights.  Government-controlled education endangers children, future adults, and our constitutionally limited republican government of a few enumerated powers.  Government-educated students generally have no idea what purposes and achievements define a legitimate government, no sound understanding of individual rights, no thoughts about the intelligibility of laws and regulations, and no commitment to the Rule of Law.  Because the People are divided about ideas of morality, the government schools downplay moral principles.  They have little knowledge of history and the many lessons of how governments have deprived their citizens of their rights.  They have no understanding of basic economics and are taught to believe in policies that deny the basic Law of Supply and Demand and the importance of production itself.  They massively promote group identifications and victim-hood and victimizer status for these groups in a highly divisive manner.  They systematically undermine the much greater diversity and wealth of individual choices provided by the private sector in favor of the rigid, group oriented controls of the government sector.

The government-run education system wallows in a profound conflict-of-interest and because it is coercive and tax-funded, it has no reason to improve.  In fact, the schools are more commonly provided with more money the more they fail, providing them with no incentive to provide a decent education.  Government-run and controlled schools very commonly put the welfare of their under-performing employees well ahead of that of their under-performing students.

The state of education in America today is tragic and is much of the reason that the state of government in America today is increasingly harmful to the freedom, security, and general well-being of Americans.

23 February 2016

An 1840 Massachusetts Legislature Committee Prediction on a Government-Controlled Education System

In 1840, Horace Mann was pushing the state of Massachusetts to establish a government-run education system after the model of the state-run schools of Prussia and France.  A legislative committee upon evaluating this proposal made three predictions:
  • It would destroy America's republican principles.
  • It would be a tool to increase government power.
  • It would spread propaganda and diminish the influence of parents on their children.
All of these predictions have come true.  The committee appears to have failed to anticipate how broadly incompetent a government-controlled education system would be, however.

10 July 2015

Skin Color Identifications and the Washington Redskins

A federal judge has ruled that the Washington Redskins cannot be allowed trademark protections for the name Redskins because that name is offensive to some native Americans of ancient stock and apparently to many Socialist Elitists.  This ruling was not impeded by the fact that one of the states of the union, Oklahoma, has a name meaning Home of the Red People, which was given to it by native Americans.

It is somewhat offensive by means of the omission of far more essential and important characteristics whenever anyone is identified by the color of their skin.  Despite this, federal government forms, forms for government contractors, many forms for sub-contractors of government contractors, and many forms of local governments all require that individuals be identified as black, Hispanic, white, Asian, or some other descriptors of groups indicating ethnic ancestry.  The black and the white descriptors are clearly both based on some crude approximation of skin color, just as redskins is.  On these federal forms, Reds are allowed to check a box with the somewhat more dignified identifier of Native American.  Asians are not forced to check a box that says Slanty-Eyed or Yellows.

It is not any of the government's business what my skin color is.  No law and no government action should ever be conditioned on the color of anyone's skin or on their ancestry.  There should be a complete separation of state and skin color.

What is more, I am not white.  I am too healthy to be white and I am not a ghost.  So stop offending me by calling me white.  If you cannot think of any way to describe me but as white, then have the common decency to say nothing at all about me.  That would be a proper admission that you were either not interested in me or you knew nothing about me.  It is your right to know nothing about me and it is your right to be uninterested in me.  I am fine with that.  But do not call me names implying I am an insubstantial ghost.

Now, back to the Washington Redskins.  I am fine with this judge's ruling provided it is based on a general principle that government will not identify any individual by their skin color or some general approximation to it.  Unfortunately, our governments and the Socialist Elitists who mostly control them do not recognize moral and political principles in most cases.  They do not feel compelled to act consistently upon a rational and coherent moral and political code of principles.  This case on the trademark protections of the Washington Redskins name is a case in point.  Until and unless the government treats this issue as a general moral and political matter of principle, I will continue calling the Washington Redskins, the Washington Redskins and Oklahoma, Oklahoma.


17 November 2014

Mid-Term National Elections Have Fewer Uninformed Voters - Let Us Have More Mid-Term Elections

Only a small fraction of the US adult population know who the first President of the United States was.  No, I am not even talking about the first President under the 11 years of the Confederation of the United States.  I am saying they cannot name George Washington as the first president.  Most also do not know that we gained our independence from Great Britain, cannot name the original 13 states, do not know who the combatants were in the War of 1812 or in World War I, do not know the enumerated powers that Congress has under the Constitution, do not know how many justices serve on the Supreme Court, and have a greatly exaggerated idea of the powers of the President under our Constitution.

Now we ask these same people to follow and understand the operations of their local and state governments and of the federal government and cast an informed vote at least every two years.  Is there even a bit of realism in such an expectation?  The Framers of the Constitution certainly knew there were limits on the wisdom and knowledge of the People.  They were fully aware of the short lifespans of earlier democracies.  Indeed, they believed a short lifespan and great instability was a characteristic of any democracy.

Ben Franklin said:
Democracy... Is two wolves and a lamb voting on what to have for lunch.
John Adams said:
Remember democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide.
The Framers of the Constitution were familiar with mobs in the streets, which we still have to this day in Ferguson, Missouri and not long ago had in many cities, such as Watts, California.  But 1789 and the 124 years that followed, government was much simpler to understand.  Government still paid attention to the enumerated powers of the Constitution.  The power to tax in order to fulfill the functions enumerated had not become a power to do anything which might be supported by a tax.  ObamaCare was recently ruled by the Supreme Court to be justified because it was so supported by a tax.  The interstate commerce regulation authority had not then been expanded to allow the regulation of all commercial activity.  The power and scope of government were much smaller then.  This was not only at the federal level, but also at the state and local level.  Yet, the People were not to have their intelligence and their diligence to inform themselves so taxed that they were to choose their own Senators.  Until 1913, Senators were chosen by state legislatures, which represented a body of people who were more interested in and informed about government.

Because so many of the People have an exaggerated expectation of the power of the President and so few appreciate the real power of Congress, they turn out to vote in much larger numbers for presidential national elections than they do for the mid-term elections.  Let us examine the voter turnout in the last few elections:

2014, 36.3%
2012, 53.6%, presidential
2010, 37.8%
2008, 56.8%, presidential
2006, 37.1%
2004, 55.3%, presidential
2002, 37.0%
2000, 51.3%, presidential

The average presidential year turnout was 54.25%, while the mid-term election turnout was 37.05%.  In presidential election years the turnout is 17.2% higher on average.  The significance of this is more readily seen by noting that presidential elections have 1.46 times as many voters.  I would maintain that in a presidential election year this means that for every 3 voters there is one voter who is less informed than the average voter in a mid-term election.

We made the federal government excessively democratic when we made Senators stand for popular election in 1913.  This also decreased the power of the states in the state - federal balance of power.  This loss of state power is now clearly seen to be ill-advised and has greatly contributed to the political divisiveness of the present times.  While I think it would be wise to remove the 17th Amendment that unbalanced our federal system of government, there is more that we can do to rectify the ills that plague our federal government.

Government is now so powerful, so into everyone's pocket and business, that it is no wonder that even fairly intelligent people do not have the time or the will to devote effort to understanding what it is doing and what the consequences of those actions are.  Even full-time politicians are overwhelmed and uninformed.  Just in the last day or so, Obama said in a press conference that he had just become informed that Jonathan Gruber had spoken about how the framers of the PPACA, more accurately the Patient Subjugation and Unaffordable Care Act, had purposely deceived the voters, who Gruber called stupid in a too forthright admission of the Progressive Elitist assessment of others.  Of course, that infamous bill was passed by a Democrat Congress few, if any, of whose members who had read the bill.  Other such examples abound.  So if the full time politicians are so uninformed, how can the People generally be expected to make rational choices at the polls?

The present system of too much democracy has led us into a morass of tyrannical government.  People vote on the basis of their wishes after buying into undeliverable promises by politicians.  They do not critically evaluate the promises for their supportability or their consequences.  To be sure, some major element of democracy is unavoidable if one is to avoid a tyranny of an oligarchy or of a despot.  So, how can we adjust the system modestly so that the People may still exercise their vote and make their corrections to the system?

I propose that we have more mid-term elections and fewer presidential elections.  Let us allow a President one and only one six-year term of office.  With government as complex as it is today, the demands placed on a President are much greater than they were in the early years of our Republic.  Yet, when I read biographies of our early Presidents, even with much smaller governments, they were extraordinarily busy men, beset with huge burdens of worries.  Most who served even four years in office were worn out.  Eight years in office is too much for mortal man and very few of our Presidents are really extraordinary men.  They come into office with a few core ideas and those that are politically palatable are commonly put into place in the first couple of years they are in office.  After that they seem to tire out, run out of ideas, and certainly lose touch with the People.  At the end of six years, it is time to send them back to their plows.

Yet, it is not the worn-out President that is the chief reason for this proposal.  The chief reason is that having two mid-term elections for every presidential election would tend to keep that one out of three voters who is least informed away from the polls for two elections for every time they vote.  Everyone who is a citizen would still have the right to vote just as often, but he would have to motivate himself to come to the polls even when no one was up for the office of the now Imperial Presidency.  This would give us more of the outcomes for smaller government that the 2014 and 2010 elections provided.  This would give us a less tyrannical set of governments at all levels of government, since it is clearly the less informed and less motivated voters who are most susceptible to the empty promises of politicians who would grow the governments at the expense of the private sector and our individual rights.

Frankly, it would help to diminish the power of the Democratic Party, the party Franklin and Adams might name the Murder or Suicide Party.  Government is never a proper means of association unless it is necessary that force be used and supplant voluntary cooperation.  Whenever an individual asserts his individual rights as justification for not obeying the dictates of government, government replies that it is ready to use deadly force to command obedience.  When government fulfills its legitimate function of protecting individual rights and does no more, there is no conflict with the rational individual.  But when government tries to take the life, or the hours of the life, or the income of one's work, or the property acquired through prior work, it is actively using force to deprive one of what is one's by right.

Such governments are prepared to murder citizens and in so doing or threatening to do, they do great harm to many of the People.  They are weakening the society.  Big Governments put different groups with special interests at one another's throats and cause a general breakdown in cooperative, private sector associations.  Such governments murder some minorities and even the more favored minorities suffer the general losses due to a weakened society.  In the end, a society so ruled commits suicide.


09 June 2014

Maintaining Climate Change Alarmism: Replacing Cool Weather Station Data with Warm Station Data

Steven Goddard at Real Science has lately had a series of posts on the effects of a very large reduction of temperature data reported from many weather stations since 1990.  The effect of the data loss and its replacement with massaged data, turns out to be a considerable artificial warming effect.  His most recent post is here.

The following plot by Steven Goddard of the older and generally complete temperature data in the USHCN temperature record kept by National Oceanic and Atmospheric Administration (NOAA) until 1990 shows the separated data from the stations still reporting complete data and compares that to the temperature data, then complete, of the stations which are missing much of their temperature data since 1990:


Clearly the stations reporting complete data since 1990 are the stations that were warmer prior to 1990 than those which have been reporting incomplete data since 1990.  The temperature differences between the two data sets prior to 1990 are very substantial.

In an earlier post, Goddard presented the percentage of the NOAA USHCN temperature data for which there was no raw data in the record by year:


Note the increase in the missing raw temperature data since 1990, which became a particularly rapid increase in lost raw temperatures after 1994.  The rate of loss of raw data is really remarkable in the recent years of stagnant temperature reports, indicating that there is a greater and greater need by the alarmists to hide the cooling that must really be going on of late.

Steven Goddard then presents the data as reported since 1990 from these same two sets of stations on the basis of the raw data that actually was reported in the raw data record.


So it becomes very clear that NOAA is preferentially losing the raw temperature data since 1990 from the cooler stations.  The final massaged data that they report to everyone replaces the missing cooler temperatures with temperatures interpolated geographically from the warmer data from the stations with complete raw temperature data records.  That is, NOAA is not just losing cooler raw temperatures, but it is adding in warmer temperatures as though that comes from the cooler stations!

It is clear that many of the NOAA warm stations are warm because of urban and suburban locations, airport locations, and massive heat absorbing or even heat-emitting objects at the immediate site.  The Urban Heat Island Effect has corrupted much of the NOAA weather station network data.  Far from correcting the data from overly warm sites downward, NOAA is correcting the cooler and usually better station data upward.  See Anthony Watts' recent evaluation of the USHCN weather stations.

Over and over, I am asked scornfully by believers in the catastrophic man-made global warming hypothesis if I believe that the government and many climate alarmist scientists are lying to us.  There are many temperature records that have clearly been adjusted with great bias of heart to exaggerate or manufacture a warming trend to support this hypothesis.  I have discussed this in many prior posts.  This very interesting sleuthing by Steven Goddard into the NOAA USHCN temperature data and what NOAA has villainously and corruptly done to the temperature record makes it very clear that our government and its scientists are very determinedly lying to us.  Apparently, the lust for power is overwhelming for many government scientists and for many scientists funded by the power lusting government.

04 November 2013

The Critical Factor in American Politics: Who Owns Your Body and Mind?

The critical question whose answer determines the balance of power in American politics today is: Who owns your body and mind?

There are three answers to this question which are given by significant numbers of Americans.  They are:

1) I own my own body and mind.

2) God owns my body and mind.

3) The collective, effectively the government, owns my body and mind.

The idea that an individual owned their own body and mind was essentially a cornerstone idea of the Enlightenment and one which played a critical role in the thinking of the minds of the Founders of the United States of America and the Framers of the Constitution.  The purpose of government was to protect the individual rights of  the people.  Only if an individual owned their own mind and body did such an idea make sense.  Only then could a person have a sovereign right to life, liberty, property, and the pursuit of his own happiness.

Yes, some of them thought that God also owned their minds and bodies, but that even then an individual had a right to acknowledge that or to deny that ownership.  The individual, in their minds, could either freely give themselves to God or they could sin.  They believed in free will.

Some who believed that God owned their minds and bodies believed the state must help God assert this ownership.  Many a nation had established a religion and was all too committed to using government power to force others to make value choices these people believed God wanted them to make.  In America, the early Pilgrims were such an example.  Later many Calvinists in New England had similar ideas.  The colony of Virginia had an established religion, The Church of England, which was funded by the colonial government.  In addition to establishing churches, the colonies frequently codified many of their religious beliefs into laws.  By the time of the American Revolution and in the decade that followed, many of the thinking Americans came to the conclusion that government should not play this role of trying to force people to act within the confines of religious beliefs.  The need for a broader freedom of conscience was becoming widely recognized by thinking Americans.

The idea that the collective owned one's mind and body has been around probably as long as people have associated in bands or tribes.  Medieval European city and nation states used this idea to build hierarchical societies in which the serf served the local aristocratic lord and that lord served the King.  The King pretended to serve God, built and protected the state, and pretended to be the caretaker for the poor, dumb serfs.  The serfs were to devote their lives to the nation, the King, and God. 

The socialists extended this ancient idea to the state alone with no particular pretense that they depended upon God's authority to take control of the masses of the people.  As socialists became more and more common, thanks largely to government controlled education, the demands of the state based on collectivist ownership increased.  The Prussian government began such an expansion of the state based on socialist ideas of collective ownership of the people's minds and bodies.  It provided schools, medical care, and retirement benefits to the people in exchange for fairly complete control of their lives.  The Marxists advanced their version of such claims, as did the fascists and the National Socialist German Workers Party.  The Progressives in America borrowed the idea of the socialist government-run state schools, heavy regulation of productive labor, control of medical care and retirement benefits, and have created their own socialist variant.

As I have noted many times, ObamaCare is based on the assertion that the collective owns every individual's body and mind.  There can be no other basis for a governmental demand that each American must care for the maintenance of his or her mind and body in accordance with rules established by the government.  The government is claiming the right to have its property maintained.  It is telling Americans what medical care they must pay for coverage on in their insurance whether any particular individual has any need for that coverage or not.  The government is doing this very explicitly on a collectivist basis.  Someone needs that coverage and therefore every individual will pay for it.  This requirement is so important to the government that ObamaCare will actually cause many millions of individuals to lose the insurance they have and were happy with.  After all, there is nothing so important to the socialist as the principle of collective ownership and its assertion.  This is not actually being done for the sake of the welfare of each American individual.  No, it is being done to create a strengthened mandate that every individual's mind and body belongs to the government.

Of course this idea was asserted already in many other laws.  For instance, Progressive governments have long asserted that almost any activity that earns income or salary comes under its powers of regulation, control, and taxation.  American governments also believe they have the right to dictate minimum wages, which means they assert that they have the right to prevent individuals from earning a living at all.  Progressive governments have long levied taxes on an individual's pay from their own labor.  These are very blatant claims that an individual's labor belongs to the government.  Now what is your labor but one of the most critical ways you use your mind and body to support and maintain your own life.  Yet, these same governments pretend they are not violating anyone's right to life.  Controlling and taxing your labor is effectively a claim of ownership of your mind and body.

The balance of power in America today is the result of a two-party system in which one party, the Democratic Party, is wholly of the belief that every individual's mind and body belongs to the collective, or effectively to the government.  The other party, the Republican party, is more disparate in its parts.  It is composed of three major factions, which either hold that:

1) An individual's body is only self-owned.

2) One nominally owns one's own body and mind, but ought to give them to God of one's free will.

3) God owns everyone's body and mind, but God is too weak or lazy to force everyone Himself to obey his will and acknowledge his ownership, so the government must perform this task of forcing obedience for Him.

As far as the use of government power through its monopoly on the use of force is concerned, there is little friction and little difference between Factions 1 and 2.  The consequences on the use of force by government of Faction 3, however, are profound.  The most critical and common issues affected are government policies with respect to sex and procreation.  The portions of our society most directly affected are women and those who are lesbians, gay, bisexual, or transgender.  Many American women and LGBTs find the use of force by Faction 3 of the Republican Party to be extremely threatening.  More often than not, these groups find this threat more frightening than the broader and more equally applied, by gender and sexuality at least, threats to self-ownership of the Democratic Party.

I am fully in agreement that the use of government by Faction 3 for its purposes is highly immoral and highly irrational.  It is threatening.  But, I see the claim of collective ownership by the Democrat Party as even worse.

First, the collectivist agenda of the Progressives, in full control of the Democratic Party, has been very successful in getting the government to control our daily lives in many ways.  It dictates what values we are free to pursue and it takes many hours of our time and effort from each of us by force.  The amount of our labor it commands has steadily increased, but for secondary fluctuations such as major wars.

Second, more and more Americans, especially younger Americans, find the claims of Faction 3 to be wrongheaded, even as many of them embrace the idea of collective ownership of our minds and bodies.  Faction 3 has poor prospects of controlling the government to do its will on a national level, because many Republicans oppose them, as do all of the Democrats.  Only a very few states are so dominated by Faction 3 that there is a practical likelihood of their enacting their program.  At the national level, even when the Republicans controlled the House, the Senate, and the presidency, this faction was never able to accomplish much of anything toward their agenda.

Third, the range of those aspects of human life claimed as the purview of government control by force is much larger on the part of the Progressive collectivist agenda of Democrat Party.  It applies to everyone and to almost anything we do.  It is without any real boundaries at all.

Most Americans say they want smaller government, yet the dominion of government keeps growing.  The Republican Party is clearly the party of at least less massive government, though it is not really the party of smaller government as it ought to be.  Yet most Americans favor the Democratic Party in Generic Congressional Polls.  The reason is primarily due to the fear of many women and almost all LGBTs of the agenda of Faction 3 of the Republican Party.  If this agenda were to be put into effect, that fear would be well-justified, but it has almost no chance of being put into effect.  Yet because so many women and LGBTs vote for the Democratic Party out of this exaggerated fear, the less massive Republican Party is unable to attain enough offices to prevent the Progressive collectivist attack upon our individual rights which has been very successful in many ways.

At this time, the biggest issue of government is the repeal of ObamaCare with its takeover of 16 to 18% of the US economy, its many harmful effects on medical care and its cost to individuals, and its blatant claim of government ownership of our bodies and minds.  Most Americans recognize that ObamaCare is a massively troublesome program, even if most underestimate its harms.  Yet, we have seen anti-ObamaCare candidates for the Senate defeated by Democrat collectivists who favored ObamaCare and the rest of the Progressive collectivist agenda because women, young people, and LGBTs found the ideas of Faction 3 Republicans abhorrent.  And even though Ken Cuccinelli, a Republican candidate for Governor in Virginia, has vowed that he will not try as Governor to implement his previous Faction 3 agenda as required by his support from the Tea Party, he is likely to lose that election to a highly corrupt collectivist, Terry McAuliffe.

There are many who believe that the Tea Party is a movement of Faction 3 Republican types.  It is not so.  It is primarily people more aligned with Factions 1 and 2.  There are also a few Faction 3 types who have agreed that the threat of the Progressive collectivist agenda has become so great in America that they will give up trying to codify their religious beliefs in the law at least until the collectivist threat is defeated.  Ken Cuccinelli is a man who has made this pledge.  He has fought ObamaCare with more determination and effect than almost any politician.  He is strong in his support that we each own our own labor and should be free to cooperate with others to our mutual benefit in the private sector.  He understands that government should be smaller.  It should be dictating fewer of our values to us and less involved in our lives.  He is a strong Tea Party promoter and candidate who has agreed to live by the rules of the Tea Party to leave his religious beliefs in the private sector and not use the force of government to promote them.

It is a serious mistake to allow the Progressive collectivist Terry McAuliffe to become governor of Virginia.  His strong support of ObamaCare and all things collectivist will do serious harm to the people of the state of Virginia.  If you value your rights and you are voting in this election, it is a serious mistake to vote for McAuliffe or even to vote for the Libertarian candidate.  The Democrat will bring nothing but evil accomplices into the state government, while Ken Cuccinelli will bring in many Faction 1 and Faction 2 Republicans instead.  This will be very good for the people of the state of Virginia.



20 October 2013

A Comment on the Constitution and its Role

I just left this comment on the Constitution and its legitimate role in a discussion in another blog:

Obama said he did not like the Constitution in a Chicago radio interview when he was a state Senator in Springfield, IL.  The reason: It did not allow the redistribution of income that he favored.  So of course, he and the other Democrat Socialists such as Justice Ginsburg, simply ignore the Constitution.

The Declaration of Independence clearly states that the legitimate purpose of government is the protection of individual rights, broadly defined as to life, liberty, and the pursuit of happiness.  The Preamble to the Constitution sets the terms of the contract the People have mandated that the government will observe, namely that the government will insure domestic tranquility, provide for the common defense, promote the General Welfare, and secure the blessings of liberty to ourselves and to our posterity.  It then enumerates a very few powers of government designed to make its sphere of influence small and that of the individual in the private sector much, much larger.

This is consistent with a government just big enough to defend us, but not big enough to use a great deal of force, as is the essential nature of government, to control our lives and deprive us of our liberties.  Government was small so the use of force and the fight over the power that represents would not divide the People and cause the destruction of the domestic tranquility.  The General Welfare then was understood to mean that government was to function so that everyone's welfare was promoted, not just that of a majority, or that of the poor, or that of the middle class.  Everyone's interest, which was mostly in their liberties, was to be promoted.  That understanding of the General Welfare has been horribly corrupted.

30 April 2013

Federal Reserve Joins Vendetta Politics of Obama Regime

Steve Forbes discusses the Federal Reserve action on its latest stress tests of the nation's 18 largest banks in his Fact & Comment in the 6 May issue of Forbes.  Of the 18 biggest banks, the Federal Reserve claimed four had serious problems which it said must be cleared up.  Ally Financial is the present name for GM's bankrupt and reorganized financial services arm.  It is in real trouble.  But Steve Forbes claims that JPMorgan Chase, Goldman Sachs, and BB&T were named as having problems purely for small-minded political reasons.

JPMorgan's Jamie Dimon has expressed displeasure with the Obama administration, but it is a well-run company with a good balance sheet.  Goldman Sachs was too close to Romney and Lloyd Blankfein also made it clear he is not happy with Obama.  So, the Federal Reserve concocted reasons to fault these two institutions.

Most troubling was the claim that the best run major bank in the entire nation had serious problems because it uses its own economic models and judges its own loan portfolio differently than the Federal Reserve wants it to.  Independent thinking is discouraged, even when a company's track record justifies it to any rational observer.  In fact, if all banks work on one model, the risks of a systemic banking failure go up.  This is especially true when the dictated model is designed by bureaucrats for their purposes, not those of the private sector.  It is even more true when the appointments to the Federal Reserve are poisoned by Obama appointees.

Steve Forbes notes that the Basel Accords required banks to have heavy reserves for loans to even the best commercial companies, but none for loans to Greece or Iceland or Ireland.  Those government accords also enshrined mortgages for special low reserve treatment.  Look where these imposed government models led the world financial institutions in 2008 and 2009.

BB&T bank CEO John Allison IV, now retired and heading the Cato Institute, opposed the TARP program and was most forcefully forced to take that money in 2008-2009.  His bank was so well run it had no need for the money.  The Federal Reserve wanted to hide the worst banks by making sound banks take the money and it was hiding potential losses on its loans by making a forced profit in interest from sound banks that did not want the money in the first place.  Allison further earned the enmity of the Federal Reserve and the Obama Regime by writing The Financial Crisis and the Free Market Cure - Why Pure Capitalism is the World Economy's Only Hope, published in 2013 by McGraw Hill.

Government thugs cannot stand the heat of criticism, especially when it is well-stated.  In the Obama Chicago style, they strike back brutally with the misuse of government power.  You do as they say, or they will breaka you knee caps.

24 April 2013

Tough Massachusetts Gun Controls Ignored by Tsarnaev Brothers and Criminals Generally

Massachusetts passed a very tough gun control law in 1998.  The results have thoroughly pleased the supporters of tough gun control laws and those who wish to infringe upon the right of self-defense protected by the 2nd Amendment.  In 1998, there were nearly 1.5 million gun owners in Massachusetts.  The draconian gun control law of 1998 reduced the number of registered gun owners to only 200,000 by June of 2002.

Of course, the 65 murders with firearms in 1998 in Massachusetts became 122 murders with firearms in 2011.  The number of armed robberies increased by 20.7% and aggravated assaults increased by 26.7%.  And, surprise, surprise, the Boston Marathon bombing Tsarnaev brothers' revolvers and rifle were not registered.  The adjacent states with less strict gun control laws have seen their crime rates go down.

Of course the strict gun control advocates claim that the reason for the high crime rates in Massachusetts is the failure of the lower crime rate states to enact stricter gun controls!  Some people are really, really unable to draw logical conclusions from their observations.  Have not those who are better armed often preyed upon those who are less well armed throughout human history?  Sometimes it was roving bands of marauders, sometimes it was the local warlord, sometimes it was the criminals who defied the law and armed themselves to the teeth, and sometimes it was the government itself that preyed upon those who would not or could not defend themselves.

27 March 2013

The Falsely Framed Moral Evaluation of Capitalism

The Washington Post ran a long article on page 1 of its Outlook section on Sunday, 17 March 2013 entitled Is Capitalism Moral?  It was written by Steven Pearlstein, a Post columnist.  He claims that much of the reason for the stalemate in Washington is because the Republicans and Democrats have not really faced up to the question of whether Capitalism is moral or not.  He says that

The grand experiment with communism has been thoroughly discredited, a billion people have been lifted from poverty through free-market competition, and even European socialists have given up on state ownership and the nanny state.  Here at home, large swaths of the economy have been deregulated, and tax rates have been cut.  A good portion of what is left of government has been outsourced, while even education is moving toward school choice.  In embracing welfare reform, Americans have acknowledged that numerous programs meant to lift up the poor instead trapped them in permanent dependency and poverty.
This introduction to the Pearlstein article seems to bow to the power of Capitalism to do good, though it is always jarring to read that deregulation characterizes our government's efforts when about 80,000 pages of new regulations are added each year and the EPA is carrying out the Obama threat to kill the coal industry and coal-fired electric plants and to give us skyrocketing European gasoline prices.  The outsourced government continues to grow its many tentacles and keeps developing new tentacles such as those that sprout from the recent and still developing ObamaCare and Dodd-Frank "Too Big to Fail" acts.

Pearlstein notes that books by Arthur Brooks, of the American Enterprise Institute, and John Allison, of the Cato Institute, make a moral case for "even-freer-market capitalism than we have now."  The books he is referring obliquely to are:

Arthur C. Brooks, The Road to Freedom: How to Win the Fight for Free Enterprise, Basic Books, 2012.

John A. Allison, The Financial Crisis and the Free Market Cure: Why Pure Capitalism is the World Economy's Only Hope, McGraw Hill, 2012.

Pearlstein characterizes their argument for capitalism as
As they see it, regulation is an infringement of individual liberty, while income redistribution, in the form of a progressive tax-and-transfer system, is nothing more than thievery committed against the most talented and productive by those who are not.  Regulation and redistribution, they contend, also undermine the vital incentives that drive capitalism, which throughout history has been the best system for freeing large masses of human beings from lives of misery and poverty.  What could be more moral, they ask, than that?
 Pearlstein even credits John Locke, Adam Smith, and Ludwig von Mises for their moral defenses of capitalism, before noting that the novels and writings of Ayn Rand really caused the idea of the morality of Capitalism to catch hold among "right-leaning intellectuals and politicians."

The remainder of this article mostly examines whether Capitalism is moral from Pearlstein's and frankly that of most people's perspective.  That perspective is implicit in the question he asks at the end of the article in his very last sentence:
If our moral obligation is to provide everyone with a reasonable shot at economic success, within a market system that, by its nature, thrives on unequal outcomes, then we ought to ask not just whether government is doing too much or too little, but whether it is doing the right things.
Basically, Pearlstein and most people believe that Capitalism is moral only if it is fair.  The bulk of the article is devoted to his belief that it is not really fair and loaded with implications that it must be controlled by government to see to it that it is as fair as possible.

One problem with judging the morality of Capitalism on the basis of whether it is fair or not is that even a toddler soon has a concept of fairness which need not have firm roots at all in a deep moral understanding.  It is extraordinarily common for the child to complain that it is not fair that her older brother always wins when they play Monopoly.  It is common that the younger sibling claims it is unfair that the older sibling can stay out to midnight on a Friday night with his friends or maybe even until 3 AM.  For many people, that concept of fairness evolves very little as they become adults.

The Founding Fathers and the Framers of the Constitution understood that what government should do was not governed by fairness.  They understood that the legitimate role of government was, as stated in the Declaration of Independence, the protection of our equal, inalienable individual rights to life, liberty, and the pursuit of happiness.  The role of government was simply to see that we were not forced by government or by others to give up making our own choices of values and prevented from taking action to try to acquire and keep our values, so long as we did not initiate the use of force against others.  Government had no role in deciding what values we should seek and no role in the distribution of those values among the people.

Those, who like Pearlstein, claim that the central government role is to ensure fairness in the distribution of values among the people must push government to decide what values really matter and how they will be distributed.  Commonly, they then think almost entirely in terms of income and worldly goods as the values of importance and those to be redistributed.  To concede that government has such a fairness role, is to concede that the Nanny State is proper.  It is to concede that the less developed person is right to constantly challenge the more developed person, or at least that those who have fewer worldly goods are right to challenge the government to redistribute those goods more in their favor or even totally unto equality in the distribution.

Of course a more developed concept of fairness might recognize that someone who chooses to watch NBC and CBS every evening for hours rather than working 12 or 14 hours in a day does not have a moral claim on the earnings or wealth of a person who did make the choice to work the longer hours.  After all, the TV watcher does not trade his relaxation and laughter in front of the TV in any meaningful way for the proceeds of the many additional hours worked by someone making a very different value choice.  Yet, most Americans exercise their limited sense of fairness to think that the TV watcher deserves to have a significant part, maybe even more than half, of what the hard worker made in his additional hours of work.

To a large degree, most people think fairness is about equality.  Yet, people are too complex and too highly differentiated for them to be equal.  They may have equal rights, but that is about the only way in which people are equal.  The Founding Fathers understood this, but they feared democracy largely because they understood that most people are governed too much by a desire for a simple-minded fairness, which drove them to desire equality and the redistribution of money and goods.  Yet, it cannot be fair to deprive the person who has acquired income and goods without the use of force of what he has acquired.  No system based on a forced redistribution can be fair.  Why set out in the name of fairness to redistribute income and goods when this necessarily means that one is unfairly doing harm to many and that fairness cannot be achieved?  Even Pearlstein allows that it is hard to know when to stop the process of redistribution.

The morality of Capitalism has the same basis as the morality of the entire private sector, only some of whose activities are devoted to the values of income and worldly goods.  There is no role for government in choosing who my friends will be and how many hours I am to spend with each of them for our mutual enjoyment.  The government that tried to redistribute my friendship time and effort would clearly be recognized as a tyranny.  There is no role for government in determining how fair it is that a woman of good character may or may not be loved by the man she wants to love her.  There is no role for government in deciding who we may choose for our domestic partner or partners, though that issue is still hotly debated with respect to same-sex marriage.  Many of the greatest values in each of our lives are properly seen by most of us as beyond the sphere of government rules for distribution.

Yet, for some childish and foolish reason, most adults do think that government has a role in re-distributing income and wealth.  I believe this is in large part because they ignore the fact that this is really a theft of the time an individual put into acquiring that income and wealth, including the time he may have spent preparing himself for earning it, as in his studies, his thinking about markets over many years, and his careful attention to details in his work.  Many seem to think that they have not subjected someone to slavery just because they are taking by force only half of every added dollar he earns rather than all of it.  In fact, a paper by Peter Diamond (MIT) and Emmanuel Saez (UC Berkeley) is making its rounds among the Progressive Elitists now that claims that the correct marginal tax on high income people is 73%.  I frankly cannot understand how they so deceive themselves that taking half or 73% of every additional hour worked from someone is not the moral equivalent of slavery.

Most slave owners in the Antebellum South allowed their slaves to spend a few hours working in their own gardens to grow some of their own food.  Did this mean that they were really not slaves because the slaveholder did not have them in his cotton or rice fields 100% of the time?  The Progressive Elitist might argue that they only make slaves of those who choose to be very productive in the marketplace, so if you participate in the market you are choosing to be a slave.  Of course they fear to be that honest, but they do say that if you make a lot of money you are choosing to pay the progressive taxes.

Yet, the person who spends time on other values, such as watching TV, going fishing, running, or spending time with friends or family is not taxed in any way.  That is not fair.  If it is right to progressively tax the person who chooses to spend time making money, then it is unfair to give the person who could have made money, but did not, a tax deduction for the money he failed to make.  Fairness demands that he be taxed for the value of his time that he spent in a different choice of values.  Yet, government knows that people will not stand for it to discourage other values such as time with family with a tax, so it acts in a manifestly unfair way on those who spend productive time making money through voluntary trades with others.  It does this even though it is generally recognized, even by Pearlstein, that such economic activity has done wonders in improving the standard of living for almost everyone, even the inveterate TV watcher.

Pearlstein's characterization of the market as much more free than it is provides him with some of his arguments that free markets do not work so well.  He also treats the arguments of people like Allison  unfairly.  For instance, he says
The conservative case against regulation, for example, is premised on the proposition that everything that has gone wrong with the markets is the government's fault.
 Well no, free market advocates realize that many businesses will fail in a perfectly free market and that there will be a business cycle in a free market with recessions from time to time.  They just object to the fact that government action in the market has the consequence of causing more business failures, more frequent and deeper recessions, and in the present case a recession that seems to have no foreseeable end.

Pearlstein claims that free market advocates say that
Because pursuit of self-interest is the essential ingredient in a market system, it somehow follows that individuals and firms are free to act as greedily and selfishly as they can within the law, absolved from any moral obligations.
I do not think there are many who believe they are "absolved from any moral obligations" in their actions.  Pearlstein in particular seems to imply that Allison holds this view.  I have not read his book, but the way Pearlstein describes Allison's viewpoint leaves quite a large leap to the conclusion that Pearlstein seems to impose on Allison's viewpoint.  I surely do not believe that a businessman is only morally obliged to obey the law and that he is morally allowed to otherwise act immorally.  Indeed, that is a clearly immoral viewpoint, which an advocate of Capitalism on moral grounds is most unlikely to make.  But Allison correctly notes that when government uses a heavy hand in making moral decisions in the marketplace, the many laws that claim to define moral actions and value choices in the marketplace will naturally become a substitute morality for many people.  If Pearlstein wants everyone in the market to act morally, then he should remove the government from the market as much as possible so that people will understand that they must act morally in the market, rather than just obeying the laws.  Government morality acts as bad money does to drive good money out of the market.

Pearlstein repeats the liberal argument that economic success often is due to dumb luck.  Some have the good fortune to be born with the right genes and the right parents, to grow up in a good community, to be better educated, to be better mentored, and to be at the right place at the right time.   They argue that the market should reward virtue, not dumb luck.

Well OK, we like to see virtue rewarded.  But, in a system in which market success means that everyone involved in a voluntary transaction has entered into it because he believes he is better off for having participated in it, how is anyone hurt if someone in the transaction was lucky?  Everyone still benefited.  We all want the freedom to be lucky, do we not?  We may be lucky in a business transaction one day also.  Or, maybe we were lucky enough to meet the love of our lives 40 years ago.  Apparently liberals believe that luck should be re-distributed also.  So, why is it only luck in financial terms to be redistributed?  Did I not realize a greater value in having the luck to meet Anna than someone else has had who is unhappily married for the third time?  As in the marketplace, virtues and luck both play roles in our love lives.  Luck is not something to be redistributed and rationed among us.  Our luck and misfortunes are generally properly beyond the reach of government.  Yes, we may well choose to recognize that some people have suffered more misfortune in life than others in our private charity work or contributions, but this is not a proper function of government.  Rightly, there is no grant of power for the purpose in the Constitution.

Pearlstein continues to argue against the perceived fairness of the marketplace.  He says that 20 years ago wage and salary earners reliably captured about 75% of the national income, with the rest going to capital providers.  More recently, labor has only received about 67%.  I expect there are reasons for such a shift that make sense.  One is that there is a decrease in union labor in the private sector.  Another is that there is an increase in the importance of knowledge and professionalism and both are more and more often tied to capital and the founders of businesses.  Still another is that complex law and regulation has insulated very large companies from upcoming competition.  Another is the huge influxes of taxpayer money to companies such as Goldman Sachs, CitiBank, Bank of America, GE, GM, Lockheed Martin, Solyndra, and A123 Systems in recent years.  Corporate welfare seems to be a staple of Progressive Elitist government even as it pretends it is not.

Pearlstein claims that 50 years ago, the typical corporate executive earned less than 50 times the pay of the average front-line worker.  He says the ratio is now 350 to 1.  He implicitly believes this is a statement that morality is defied here.  I expect he is comparing the few large corporations of 50 years ago in a much smaller US economy with today's corporations acting in a much larger US economy and in a much larger world economy.  If he chose to compare the mid-sized companies and large small businesses today with similar sized businesses by income of 50 years ago, the ratios would be much more similar.  That is, compare the ratio in a $100 million income company today with a $100 million income company of 50 years ago and the ratio will be much less dissimilar.  Neither 200 years ago, 100, 50, or last year did most companies even have a 50 to 1 ratio.  That ratio is a phenomena of size.

Pearlstein laments the fact that inequality of income in the market threatens to overwhelm the ability of a progressive tax-and-transfer system to keep up with it.  So yes, Pearlstein simply assumes that income equality is a requirement of a moral economic system, despite the fact that almost no one advocates equality in other aspects of our private lives.  His, and that of most Progressive Elitists, is a very childish moral code.  It is manifestly biased in the application of equality and it absolutely refuses to recognize that individuals are highly complex and differentiated.  It refuses to recognize that as a result, we make very different value choices and bring very different abilities to bear on acquiring the values we choose.  It just assumes that using force to redistribute income and wealth is good.  It just assumes that largely enslaving those who make good money in the voluntary and mutually beneficial marketplace is justified as for the greater good.  It also assumes that it is right and proper to redistribute luck, but only luck operating in the market.  What an absolutely weird, yet common, idea of morality this is!

A society with a very limited government whose only function is to protect our equal, sovereign individual rights to life, liberty, property, the ownership of one's own body, mind, and labor, and the pursuit of personal happiness is the only society in which people are free to be moral.  They are then free to be moral in the entire private sector of their activities, including that subset of economic activities in the market.  Capitalism is moral for the same reason that other human action dedicated to the free choice of values and the freedom to pursue them is moral.  Capitalism is moral because it allows these choices of value by each individual in the marketplace.  It is moral as an exercise in our individual right to freedom of association to cooperate with others as we choose for financial reward, just as in other aspects of our lives we are free to associate with others as friends and lovers and family.  Our labor belongs to each of us by right and we trade it with others in some cases for monetary gain and in other cases as part of a family to instruct a child or to do the dishes and laundry.  Government has no moral obligation to equalize any of the rewards that we get from exercising our freedom of association or the use of our time.  Indeed, if it tries to do so, it has violated our individual rights and done an evil deed.