Must Reads For The Week 11/28/15

Posted November 27, 2015 by austrianaddict
Categories: Must Reads For The Week

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A New Social Engineering Mission Won’t Save Postal Service, by Andrew Quinlan, at Even with a government sanctioned monopoly, and billions of tax payer subsidies, the U.S. Postal Service has lost money every year since 2007. The losses are in the billions. The waste of scarce resources wouldn’t have been allowed to go on this long in a free market. These resources would have been allocated to a more productive use based on consumer demand. Propping up losses hurts the economy as a whole which means it hurts all of us.

New Tax Payer Bailout To Cover Up Obamacare’s Failures, by Betsy McMaughey, at Insurance companies are losing money selling Obamacare policies. (This is not a shock to people who understand that Obamacare is not insurance, but a pay as you go system). I don’t feel bad for these companies because they were all for Obamacare because they thought it would provide them with 30 million new government mandated customers. They are looking to get out of the “health insurance” business, but the Obama administration is promising them tax payer funded bailouts. This is a move to a single payer (you the tax payer) system which is what Obamacare was about in the first place.

Obama’s “Clean Power Plan” Should Be Called The “Costly Power Plan“, at New EPA regulations would only reduce CO2 emissions 1% world-wide by 2100. The cost of this is in the multiple of billions of dollars that will be paid by American electricity users. The reliable lower cost electricity that is produced by fossil fuels will be replaced by unreliable higher cost electricity produced by “green energy”. We are chasing infinitesimal decreasing amounts of a gas that is not a pollutant (CO2), at an ever-increasing cost. It doesn’t make sense unless you’re President Obama.

Cuomo Orders Censorship Of ‘Man In The High Castle’ Ads, by Mollie Hemingway, at “The Man In The High Castle” is a new show about what 1960’s America would look like if the U.S. had lost the second world war. Ads for the show depicting Nazi imagery were taken off of NYC subway system by Governor Cuomo. Money quote from the article, “Fascism is so bad that the ruling authority needs to decide what commercial speech is acceptable in public spaces? The governor ordering the ads pulled is exactly the kind of government control the show warns about.

“Carbon Charge”: Yale Plans To Institute Global Warming Fee, by Rebecca Downs, at I thought this might be from the Onion.  Can anyone say increasing student loan debt. There is nothing like paying interest on a global warming tax over a 15 to 20 year period.

Hillary Clinton, Donald Trump Slam Pfizer Moving To Ireland For Lower Taxes, by James O’Shea, at The high cost of doing business in America because of taxes and regulations incentivizes companies to move to more business friendly places. To stop this kind of activity, Hillary and Trump want to pass more regulations. Even though it is the original regulations that forced these companies to leave in the first place. Why don’t they want to get rid of the regulations that created the incentives in the first place.

Eliminating Cash Makes It Easier Silence Critics, by Ryan McMaken, at Every transaction can be monitored in a cashless society. Access to money can be stopped by freezing bank accounts and credit cards. This is a  constraint on peoples actions. Its another way government can coerce people to do what they want.

Letter To Philadelphia Inquirer About Article On The Fed Helping Teachers Learn Finance, by Patrick Barron, at “Pushing back on the frontiers of economic ignorance”.

Emails Show DOD Analysts Told To ‘Cut It Out’ On ISIS Warnings, IG Probe Expands, by Catherine Herridge, at No comment needed.

DC Police Chief Who Advocated Taking Down Mass Shooters Has Approved Few Gun Permits, by Cody Derespina, at I applaud the police chief for saying your best option is to try to take the gunman down because the  cops can’t get there in time. But on the other hand she won’t allow individuals the means to take the shooter out.

At Least 40 School Districts In Ohio Allow Teachers To Carry Permitted Concealed Hand Guns, by John Lott, at If the only thing that stops a bad person with a gun is a good person with a gun. The logical thing to do is make sure the good person is allowed to have a gun in the first place.

American Cops Now Steal More Property Than All US Burglars Combined, by Matt Agorist, at Civil Asset Forfeiture laws allow the cops to legally steal from American citizens in violation of their fourth amendment rights.


Political Cartoons by Henry Payne


President Obama vs. Marcus Luttrell: If You Were ISIS Who Would You Fear More?

Posted November 27, 2015 by austrianaddict
Categories: Miscellaneous

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Who do you respect more, President Obama or Lone Survivor Marcus Luttrell?

Obama: U.N Climate Change Conference A ‘Powerful Rebuke To The Terrorists’.

Marcus Luttrell: ‘I Cower To No One’


Thanksgiving Proclamations

Posted November 25, 2015 by austrianaddict
Categories: Miscellaneous

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George Washington made the first Proclamation of Thanksgiving in 1789 (read here). But Thanksgiving wasn’t made an official holiday until Abraham Lincoln proclaimed it in 1863 during the middle of the Civil War. Here is Lincoln’s proclamation.

Washington, D.C.
October 3, 1863

By the President of the United States of America.

A Proclamation.

The year that is drawing towards its close, has been filled with the blessings of fruitful fields and healthful skies. To these bounties, which are so constantly enjoyed that we are prone to forget the source from which they come, others have been added, which are of so extraordinary a nature, that they cannot fail to penetrate and soften even the heart which is habitually insensible to the ever watchful providence of Almighty God. In the midst of a civil war of unequalled magnitude and severity, which has sometimes seemed to foreign States to invite and to provoke their aggression, peace has been preserved with all nations, order has been maintained, the laws have been respected and obeyed, and harmony has prevailed everywhere except in the theatre of military conflict; while that theatre has been greatly contracted by the advancing armies and navies of the Union. Needful diversions of wealth and of strength from the fields of peaceful industry to the national defence, have not arrested the plough, the shuttle or the ship; the axe has enlarged the borders of our settlements, and the mines, as well of iron and coal as of the precious metals, have yielded even more abundantly than heretofore. Population has steadily increased, notwithstanding the waste that has been made in the camp, the siege and the battle-field; and the country, rejoicing in the consciousness of augmented strength and vigor, is permitted to expect continuance of years with large increase of freedom. No human counsel hath devised nor hath any mortal hand worked out these great things. They are the gracious gifts of the Most High God, who, while dealing with us in anger for our sins, hath nevertheless remembered mercy. It has seemed to me fit and proper that they should be solemnly, reverently and gratefully acknowledged as with one heart and one voice by the whole American People. I do therefore invite my fellow citizens in every part of the United States, and also those who are at sea and those who are sojourning in foreign lands, to set apart and observe the last Thursday of November next, as a day of Thanksgiving and Praise to our beneficent Father who dwelleth in the Heavens. And I recommend to them that while offering up the ascriptions justly due to Him for such singular deliverances and blessings, they do also, with humble penitence for our national perverseness and disobedience, commend to His tender care all those who have become widows, orphans, mourners or sufferers in the lamentable civil strife in which we are unavoidably engaged, and fervently implore the interposition of the Almighty Hand to heal the wounds of the nation and to restore it as soon as may be consistent with the Divine purposes to the full enjoyment of peace, harmony, tranquillity and Union.


Even though it seems we are in conflict about everything. Each of us should be thankful that we live in a country that protects our right to complain. We should be thankful our founding principles have led to the creation of a standard of living that other countries could only dream of.

We take our individual freedom and our countries wealth for granted, even though they are rare indeed when compared to other countries throughout the history of the world. Be Thankful!


Last Years Thanksgiving PostThe Real Thanksgiving Story. Excerpt from article.

“In the harvest feasts of 1621 and 1622, “all had their hungry bellies filled,” but only briefly. The prevailing condition during those years was not the abundance the official story claims, it was famine and death. The first “Thanksgiving” was not so much a celebration as it was the last meal of condemned men.”

“To rectify this situation, in 1623 Bradford abolished socialism. He gave each household a parcel of land and told them they could keep what they produced, or trade it away as they saw fit. In other words, he replaced socialism with a free market, and that was the end of the famines.”

“Thus, the real meaning of Thanksgiving, deleted from the official story, is: Socialism does not work; the one and only source of abundance is free markets, and we thank God we live in a country where we can have them.”

Cuba’s Black Markets Show Mans Desire For Liberty

Posted November 24, 2015 by austrianaddict
Categories: Econ. 101

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Cuba has had a centrally planned communist economy ever since Castro took over in 1959. The videos below show a few things. 1) Look at how poor these people are. 2) Black markets will spring up even under a communist dictatorship. 3) People will always try to find ways around intrusive laws. 4) Black markets are more productive than centrally planned systems. 5) The totalitarian State Needs to control information if it is to survive.

These videos are by Vox.

Why Cuban Cab Drivers Earn More Than Doctors

Castor Hates The Internet, So Cubans Created Their Own


Must Reads For The Week 11/21/15

Posted November 21, 2015 by austrianaddict
Categories: Must Reads For The Week

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Krugman: Terrorism Will Be Good For The French Economy, at You can’t make this stuff up. Here is a quote from the maestro: “[I once] facetiously suggest[ed] that we fake a threat from space aliens, to provide a politically acceptable cover for stimulus. Now France has been attacked, unfortunately by real terrorists instead of fake aliens, and Hollande is declaring that security must take precedence over austerity. Is this the start of something big? OK, obligatory disclaimer that will do no good in the face of the stupidity. I am NOT saying that terrorism is a good thing……..We’re just trying to think through some side effects of the atrocity.

The money used for Government spending to fight terrorism (aka stimulus) has to come from some where. The money is just transferred from the private sector to the public sector. Which means actual resources are moved out of the productive private economy and into the unproductive Government economy. This is just a version of the Broken Window Fallacy. Here is an article I wrote in September of 2013 which explains the Keynesian stimulus dream, A Keynesians Dream, Cruise Strikes In Syria.

Roubini Says Paris Attacks Could Boost Eurozone Economy, at Another Keynesian economist Nouriel Robini says these attacks could boost Euro zone economy if the European Central Bank increases its monetary stimulus by a larger amount than it would have before the attacks. Comments from above apply to this article.

Mass Exodus! U.S. Doctors Fleeing Medicine, by Greg Corombos, at Experienced doctors are quitting their private practices and either retiring or going to work for a hospital. The number of doctors is decreasing because of retirement, and the doctors who go to work for the hospitals aren’t as productive as they were when they worked for themselves. We are losing the quantity, quality, and productivity. Didn’t we say this would happen in this post, The Reality Of Obamacare, and The Economics Of Healthcare vs. The Right To Healthcare.

Forget Insurance. These Doctors Only Take Fees, by Jen Fini, at Obamacare is creating a free market in healthcare. The question is will the Government allow this market, or will it stop this market?

Hillary Clinton Threatens Comedy Club For Making Fun Of Her, by Robert Gehl, at Is she acting like a college student who doesn’t like free speech when it offends them. Or is she acting like the totalitarian that she has always been? There is only a difference in degree not kind, because both are totalitarians.

Comedy, Outrage, and College: What We Saw At The “Can We Take A Joke Premiere, at reason tv.

Colleges students don’t want to be challenged by diverse opinions. Only people who agree are allowed free speech, diverse opinions are verboten.

A Legacy Of Liberalism, by Thomas Sowell, at Must read of the must reads. Once again Thomas Sowell hits it out of the park. Here is an excerpt, “The current problem facing blacks in America owe more to the great society than to slavery……Liberals have wreaked more havoc on blacks than the supposed “legacy of Slavery” they talk about.”

The Myths Of The Industrial Revolution, by Richard Ebeling, at Excerpt from the article, “First, before the Industrial Revolution, life for everyone in all parts of the world, was “nasty, brutish, and short,” in terms of life span and the standard and quality of life. This was transformed by emergent industrial capitalism that offered an escape from the poverty, hardships, and class-based oppressions of feudal society.

Extra Pay For Chicago Police And Fireman Is Excessive, Unsustainable, by Austin Berg, at 32 percent of 35,000 Chicago city workers made six figures last year. Public employees wouldn’t be able to get these kinds of salaries in the free market. It’s easier to strong arm politicians who have no incentives to say no to these public employees.

How Puppy Love Becomes Sexual Harassment, at Are we losing our minds?

LED Hand Lights Are The Latest Trend Among Biohackers, at  Why would you do this?



Observations From The Margin

Posted November 20, 2015 by austrianaddict
Categories: Observations From The Margin

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Observation Tower

-Did the Democrats schedule their recent debate on a Saturday evening so no one would watch it?

-I never thought I’d see the day when an avowed socialist would run for the Democratic presidential nomination. Their candidates have always tried keep that hidden.

-Does anyone other than the President believe that global warming is the biggest threat to the world?

-Here is my solution to the “illegal immigration” problem. 1) Enforce the existing laws pertaining to immigration and the border. 2) As illegal immigrants come in contact with our government systems ( legal system, welfare system, and educational systems), deport them. 3) Make it less costly and time-consuming to become a legal immigrant to the U.S. If you change the incentives, you will change behavior.

-After the attacks in Paris, I thought President Obama would suggest that the French pass stricter gun laws. You never let a serious crisis go to waste.

-A lesson from the attacks in Paris: The first responders are the people involved in the incident. The police and firemen are the second responders. So each of us should be aware of our surroundings, and be prepared to take the proper action (fight or flight) if a situation arises. And everyone who has a concealed carry permit, should carry.

-The unrest on college campuses over the last few weeks is an example of colleges reaping what they have sown. Political correctness,  multiculturalism, and diversity have produced ignorant unrealistic kids.

-I drove my truck to the auto repair shop last week without any brakes because a brake line ruptured. I found out the only reason you can go fast is because of brakes?


Political Cartoons by Chip Bok


Must Read “Leftovers”

Posted November 17, 2015 by austrianaddict
Categories: Leftovers

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Student Wants Free College, Debt Forgiveness, and $15 Minimum Wage, at foxbusiness.

I remember when I was in High School I thought that socialism (taking from people who I thought had a lot of money and “giving” it to those who don’t have much) was a good idea. Once I started working I realized how ignorant I was. I feel sorry for the student in this video because she doesn’t even realize how ignorant she sounds. Unfortunately the democrat presidential candidates are saying the same thing. They are just better at hiding the message with verbal slight of hand.

Academic Welfare Queens, by Tho Bishop, at Easy money creates bubbles. Bubbles create malinvestment. “Educational malinvestment creates college degrees that are worthless to the students, on the one hand, but profitable to professors and the colleges on the other.

The Fly In The Buyback Ointment: Corporate Leverage Is At Record Levels, at Corporations are propping up their stock prices by borrowing money at zero percent interest and buying back their stocks. A shorter supply raises the price of the remaining shares. At some point a companies revenue won’t be able to service their debt. The problem accelerates if there’s a stock holder sell off. The high price shares bought back with debt would now have a lower price. If they have to sell shares to raise revenue, they would be selling at a huge loss.

Managing The Risk Of Hydraulic Fracturing: An Update, at There is risk in anything man does. The real question is always; does the benefit out weigh the level of risk. When it comes to fracking the answer is yes it does.

News Stories Of At Least 18 Defensive Gun Uses By Concealed Handgun Permit Holders During October, by John Lott, at No comment necessary.

Scrapped: Maryland Ends Bullet ID Program After 15 Years, $5 Million, and Zero Cases Solved, by John Lott, at Excerpt from the article, John Lott-“It was clear 10 years ago that this program was not going to work….Millions were spent on funding this program, money that could have been better used for actual police and law-enforcement resources.”

A Tale Of Two Shootings, by Victor Davis Hanson, at The differences between the shooting of Michael Brown in Ferguson and Kate Steinle in San Francisco. It’s politics, race, twisted logic vs. the facts.

Obamacare: It Doesn’t Work Because It Couldn’t Work, by Kevin D. Williamson, at Great analysis of why Obamacare doesn’t work. At it’s core Obamacare isn’t insurance even it tries to be. Insurance is about calculating the risk of what will happen. Obamacare is a pay as you go system for what has happened.

Star Trek’s Pseudo-Economics, By Robert P. Murphy, at Excerpt from the article: “It is true that Roddenberry thought, and others still think, that high productivity will eliminate the necessity of money for economic coordination. But Roddenberry was simply mistaken on this point — as were the socialist theorists who thought the modern computer would make socialism “work.” Ironically, the socialist theorists (and Gene Roddenberry) got things backwards. In a primitive Robinson Crusoe or Swiss Family Robinson environment, people can make decisions without recourse to money prices, because the system isn’t very complicated; a person can “see” the trade-offs involved. Yet, in a modern economy based on the division of labor, money prices are indispensable. The possible uses of resources become greater — and the economic problem more difficult to solve — as technology expands.


HT –









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