Archive for the ‘Government and Politics’ category

You Can Educate Ignorance; But What About Stupidity?

December 27, 2013
Stupidity is contagious

Stupidity is contagious (Photo credit: AJC1)

BANNING E- CIGARETTES

Here are two examples of bureaucrats who can’t tell their rear ends from a hole in the ground. The first is about E cigarettes..  Vaping Given Politicians the Vapors, by Jacob Sullum, at reason.com. Seemingly intelligent people think that a product that allows people to get their nicotine fix through water vapor, instead of burning tobacco, should be banned. The nicotine in a cigarette isn’t what causes cancer, it’s the carcinogens caused by the burning tobacco that leads to cancer. It would seem to me that people who don’t like smoking would want all cigarette smokers to use the E cigarette because it is a safer delivery system.  Here are some excerpts from the article.

City Council
Speaker Christine Quinn
said
last week. “Because many of the e-cigarettes are designed
to look like cigarettes and be used just like them, they can lead
to confusion or confrontation.”

“You might think that people of ordinary intelligence would
pretty quickly learn to distinguish a burning stick of dried
vegetable matter from an e-cigarette, which contains no tobacco and
produces no smoke.”

“Anyone who is truly concerned
about the health consequences of smoking should welcome this
innovation instead of following New York’s example by making it
less appealing through gratuitous restrictions that discourage
smokers from quitting.”

BURNING WOOD IN FIREPLACES BANNED

In this article,San Francisco Bans Fireplace Use On Christmas, Kristin Tate, at benswann.co, bureaucrats who have power feel they have to make rules no matter how insignificant their decisions are. Do you think the yearly wild fires in California pump exponentially more “pollution” into the air than the people of San Francisco could possibly produce by burning wood in their fire places on Christmas eve and Christmas day? Here are some excerpts from the article.

Bay Area Air District executive officer Jack Broadbent said, “Please respect everyone’s health this holiday by observing the Winter Spare the Air Alert and not burning wood in your fireplace. We don’t want anyone to spend their holiday in the emergency room because they are unable to breathe. In the spirit of giving, please give the gift of clean air.”  This can’t possibly be true, can it?  It sounds like it’s from “The Onion“.

I guess people with power will wield it even if their decisions make no sense.

“I’m From The Government And I’m Here To Help.”

December 16, 2013

We’ve been told that Government workers and bureaucrats are public servants. The stories below show that these public servants aren’t really interested in helping us, there more interested in helping themselves. Government regulations and licensing laws should be done away with because they set up road blocks for individuals to freely exchange on the market. It creates a hampered market. These laws are set up to increase Government power over the individual. What do these laws actually do? Here is a short list,  1) They raise money to fund the bureaucracy through fees and fines. 2) They protect the incumbent businesses from competition. 3) They allow bureaucrats to wield power over the masses.  These interventions in cities and towns across the country is a miniature version of the crony capitalism that happens on a larger scale at the federal level.

BEGGING IS PROTECTED, SELLING IS ILLEGAL

Watch this video below of an 11-year-old girl who was trying to sell mistletoe to help raise money for her braces. The authorities told her she could beg for money but not sell her mistletoe for money. Read article here.

GOVERNMENT IS AN UNWANTED BUSINESS PARTNER

In this video the cops shut down the lemonade stand of 3 girls trying to raise money to go to the water park. They are supposed to have a business license, along with food and vendors permits to operate a lemonade stand. These permits and licenses would cost these girls $50 dollars a day plus $180 dollars a year. How much lemonade do you have to sell in a day just to cover the cost of complying with the bureaucratic rules. These girls didn’t know that they had a not so silent business partner.

 IT’S LIKE A MAFIA PROTECTION RACKET

This creative entrepreneur finally closes the doors on her viable business. Why?  Because the harassment by Chicago bureaucrats was too high a cost to pay for the “privilege” of doing business in Chicago. I don’t think the bureaucrats understand the private sector is what funds their ability to do stupid things, like harassing businesses to the point that they close their doors. Paying bribes to bureaucrats is a consequence of too much regulation. In third world countries paying bribes is considered a cost of doing business. I saw This story at Mark J. Perry’s Carpe Diem Blog.

How the young kids in these videos will be affect by their run in with Government will not be known for many years. They will see Government as an instrument of force used to take their individual liberty away. The question is, will they fight for their individual liberty, or will they go along with Government intrusion just to get along. Actually that is the choice we all have to make. Either stand up and be counted or stay seated and don’t make waves.

In this Related Article by Walter Block, How the Market Creates Jobs, And The Government Destroys Them, he talks about licensing laws and how they affect employment. Here is an excerpt. “When the government bestows legal status on a profession and passes a law against competitors, it creates unemployment. For example, who lobbies for the laws which prevent just anyone from giving a haircut? The haircutting industry—not to protect the consumer from bad haircuts, but to protect themselves against competition.”

The Republican Leadership Doesn’t Like Us.

December 12, 2013
budget

budget (Photo credit: 401(K) 2013)

If you think Democrats and the Republican Leadership are on different sides of the aisle, think again. Both are upset with liberty minded groups because these groups are fighting the growth of Government. Both parties want to expand the size of Government which brings with it a corresponding increase of power. This expansion means the individual will have less freedom. When Government grows the individual shrinks. Here is a video of John Boehner getting upset at the very group of people who have helped keep his rear end in power.

Speaker Boehner said, “If you’re for more deficit reduction you are for this agreement.”

How serious are they at deficit reduction if all they can cut is $23 billion in ten years, with most of the cuts coming in the outer years of the budget (which never happens). The Government spends roughly $3.5 trillion a year. So they can only find $23 billion to cut out of the $35 trillion they will spend in ten years (and that’s if spending remains at $3.5 trillion a year). That’s $23, 000,000,000.00 out of $35,000,000,000,000.00,  or 23 dollars out of every 35,000 dollars, or 2 dollars and 30 cents out of every 3 thousand 5 hundred dollars, or 23 cents out of every 3 hundred 50 dollars, or 2.3 cents out of every 35 dollars. Two pennies out of every thirty-five dollars! Are you kidding me? You wouldn’t even waste the time picking up two pennies if they fell out of your pocket. I guess it all depends on what the meaning of the word “more” is, if this is “more” deficit reduction.

The republicans are not serious about reducing Government, they’re only interested in stopping a potential Government shutdown from happening when the present continuing resolution expires. They think a shutdown will hurt their electoral chances in 2014. Both parties battle each other politically in order to gain control of Government power. The minority party has some limited power in order to be a counter weight against the majority party, but remember, both have power over you. Both parties have power to force you to do things you may not want to do. Every individual and group of individuals who work to roll back the power of Government, are an enemy of not just the democrat party, but also the republican party establishment. This is why both parties are trying to attack the credibility of liberty minded groups, tea party groups, small L libertarians, and any politician who is backed by these groups. But don’t be afraid of their attacks. They attack us because they fear us, and they fear us because they don’t control us. If people like us washed our hands of the republican party, they could never regain the majority position.

Related ArticleLet’s Think About The Shutdown, The Debt Ceiling And Obamacare, at austrianaddict.com.

Related ArticleTed Cruz Is A Thorn In The Side Of Big Government Democrats And Republicans, at austrianaddict.com.

The President and Vice President Don’t Support Ending The Filisterbuster Rule

November 21, 2013
President Barack Obama and Vice President Jose...

President Barack Obama and Vice President Joseph R. Biden, Jr. (Photo credit: Wikipedia)

TWO MEN OF GREAT CHARACTER

The move by the Senate Democrats to end the filibuster rule on Presidential appointees isn’t even supported by the leaders of the Democrat party, President Obama and Vice President Biden. President Obama and Vice President Biden are righteously indignant about the ending of the filibuster rule because it would take away a constitutional check on the majority. I applaud these staunch defenders of the constitution against the tyranny of the majority, and the fact that their own party is in the majority shows real courage. Watch the videos below and be prepared to be inspired by the tough stance these two intrepid leaders take.

THE CAPED CRUSADERS FOR TRUTH AND JUSTICE

I’M SORRY I GOT THIS WRONG. MY BAD

I want to sincerely apologize for getting this post wrong. I thought these two videos were responses to todays vote in the Senate which ended the filibuster rule for appointees. These videos are actually from 2005 when both men were in the Senate and both were righteously indignant over the Republican controlled Senate talking about getting rid of the filibuster. Why would anybody believe anything a politician says after what has gone on the last two months?

Related ArticleThe Most Recent Arbitrary And Unrestrained Exercises of Power By The Federal Government, by austrianaddict.com.

Related ArticleWhat Is Tyranny? The President Should Know The Definition, by austrianaddict.com.

Related ArticleJuly 4th, Declaring Independence From Tyranny, by austrianaddict.com.

Related ArticleThomas Sowell Explains How Democracy And Freedom Are Not The Same Thing, at austrianaddict.com.

The Reality Of Obamacare

October 28, 2013

“SOCIALISM BY INSTALLMENTS”

Ludwig von Mises said, “The middle-of-the-road policy is not an economic system that can last. It is a method for the realization of socialism by installments.” The middle ground between free markets and socialism is chaotic, with the only stable ground being free markets, on the one end, and socialism on the other. The free market being stability in wealth, and the latter being stability in poverty. Our current and impending healthcare debacle is an example of what Mises is saying in the quote.

We haven’t had anything close to a free market healthcare system since government put a freeze on wages during WWII. The unintended consequence of this action was employers started giving health insurance as a benefit, in order to attract labor for employment, because they couldn’t pay higher wages. Up to this point individuals payed for their health insurance out of the wages they earned. The individual was insuring himself against financial ruin in case their was a catastrophic situation with his health. He paid for all other health care problems out of his earnings. Over the years the unintended consequences of  increased Government regulations has moved our healthcare system into the chaotic middle ground we are experiencing.   Obamacare has and will make our health care system more chaotic. It was designed as the next step toward a single payer health care system. Single payer is simply the Government controlling all decisions about the production and consumption of healthcare (aka socialism).

THE ECONOMICS OF HEALTHCARE AND HEALTH INSURANCE

Understanding health care becomes easier when you know a few things about it. 1) Health care is a good of service produced and exchanged in the free market, and is therefore not a free good. 2) Health insurance is a good or service produced and exchanged in the free market, and therefore not a free good. 3) Health insurance is not health care. Health insurance is just one of many arrangements, an individual can make to pay for healthcare. Health care is the good that health insurance pays for. 4) Even if someone thinks having health insurance or health care is a right, it doesn’t change the fact that both are economic goods, that have to be produced before they can be exchanged and consumed.

Scarcity is what dictates if something is an economic good. If a particular thing is available naturally, like the air we breath, it isn’t scarce and therefore doesn’t have to be produced before it is consumed. Scarce goods have to be rationed because the demand for the good is greater than our ability to produce it. Prices ration scarce goods in a free market. The price of a good is the result of every individual making decisions on what they produce, exchange and consume. Each decision every individual makes, even if it has nothing to do with a particular good, has an effect on the production and consumption of that particular good. The reason it has an effect is because the scarce means of production have alternative uses. For example a barrel of oil doesn’t just produce gasoline, oil is used to produce dyes, rubber, resins, adhesives, asphalt, solvents, lubricants, nylon, polyester, acrylic, pharmaceuticals, and plastics. The means (resources, labor, time, capital) used to produce healthcare can be used for other purposes. If the compensation for their use in healthcare doesn’t cover the cost of production, they will be employed in uses that are more profitable. This scarce good (healthcare) will be made scarcer still. In our new socialized healthcare system, Government will have to ration healthcare because the artificially set prices will be meaningless for the purpose of rationing.

IT GETS WORSE

The health care website “glitch” isn’t even a cup of water in the ocean of problems that awaits us as this ever-expanding law begins implementation. The Government health insurance exchange is not health insurance. The exchange is playing the role of a broker trying to help individuals find “affordable” health insurance  from participating insurance companies. What happens when the 2500 plus pages of regulations gets unleashed on what’s left of the market system? 1)  Businesses have started to protect themselves against the future cost of the law in a number of ways: Keeping their number of employees under 50. Larger companies are cutting employers hours to under thirty per week. They’re getting rid of employer paid health care plans altogether because it’s cheaper to pay the fine (tax) instead of paying the insurance premiums. They’re making their employees pay more toward their insurance. 2) Insurance companies have been protecting their bottom line by increasing premiums in anticipation of higher costs. Some insurance companies have decided not to supply health insurance because it won’t continue to be a viable business model down the road. 3) Healthcare providers from doctors to medical device manufacturers have started to change how they do business because they know they will not be compensated enough to cover the cost of producing their good or service.

CONCLUSION

The cost of our “new” healthcare system is already going up. We changed the whole system because there were supposedly 30 million Americans without health insurance, although these uninsured people could go to the emergency room to receive healthcare. The prices charged by hospitals and the prices charged by insurance companies are what cover the cost of treating these uninsured people, just like the cost of shoplifting is factored into the prices you pay at a store. This old way of paying for the uninsured is less expensive than the cost of insuring them under Obamacare.

Obamacare incentivizes an increase in the demand for a scarce good, and a decrease in the supply of this same good. The scarce good becomes more scarce as supply and demand move in opposite directions. Government decisions will have to ration healthcare, but as the years pass the ultimate rationing mechanism for our socialized healthcare system will be waiting in line and death. Fortunately for us we have a culture of freedom. We will figure out a way around the government obstacles that have been placed in the way of us getting what we want, even if it’s an illegal black market for healthcare. Freedom is in the DNA passed on by our founding fathers, and I think we’re in the process of rediscovering it.

Ten Things to Expect From Obamacare, by Elizabeth Lee Vliet M.D., at caseyresearch.com.

SOME HEALTHCARE HUMOR

More cartoons here from theburningplatform.com.

139127 600 HealthCaregov cartoons

139206 600 Web Site cartoons

Ted Cruz Is A Thorn In The Side Of Big Government Democrats and Republicans

October 17, 2013
Dawn at the Alamo: Crockett

Dawn at the Alamo: Crockett (Photo credit: Travis S.)

SENATOR CRUZ vs. RULING ELITE

You know you are doing something right when guys like Harry Reid and John McCain hate you. For a guy who has been a senator for not even a year, Ted Cruz has sure ruffled a lot of senior senators feathers and has become the most despised man inside the D.C. beltway. I get the impression he wears it as a badge of honor. He has put himself in this position because he is standing up for the right of the individual to be free to make his own decisions about his healthcare. This position automatically puts him against the status quo big Government power structure that wants to make healthcare decisions for each individual. The fact that Senator Cruz is being scolded by members of his own party tells us more about them than it tells us about Senator Cruz. They want to maintain and grow their power, and this new insider isn’t suppose to upset the status quo. Doesn’t he understand what a sweet gig it is to be a senator. He probably thinks he’s here to serve the people, doesn’t he know we’re the ruling aristocracy. The people serve us.

THE R. AND D. PARADIGM

All of us were born into a world where the battle lines had already been drawn between the Democrat and Republican positions relating to politics, government power, and economic theory. This D and R reality has been so ingrained in us, if anyone takes a position different from the two parties, he is considered kooky.  If you blindly follow the D’s or the R’s without any analysis of the actual party positions concerning government power and economic theory, you will be susceptible to the political sleight of hand that politicians are known for. Politics is a “method an individual uses to exercise or seek power in the governmental or public affairs of the state”. Lying, or telling the truth, are tactics used in the political process, although lying is preferred. Being clever with words is another important skill, because it gives the politician the ability to paint a verbal picture of a utopian world that could exist if lead by the right person. It doesn’t matter that a utopian world can’t actually be achieved, what matters is, if the public can be fooled into thinking it can.

SENATOR CRUZ REFLECTS BOTTOM UP CHANGE

Progressives in both parties don’t like Cruz because he is one of the few who is starting to tell the truth about how the machinery of government really works. Just as sleight of hand artists don’t want the secret of the trick to be revealed, so to politicians don’t want anyone, especially an insider, giving away secrets concerning the inner workings of politics and government. Senator Cruz is an example of bottom up change that top down insiders don’t like because it isn’t under their control. He wasn’t supposed to beat the republican insider in the primary, but he did because of grass-roots efforts to effect change. The liberty and tea party movements are slowly moving the political battle away from the R and D model, and toward those who believe in individual liberty vs. those who believe in government planning for individuals. This is the same fight that brought about the American Revolution. It was tyrannical government, resting in the crown of England, vs. the sovereignty of the individual to order his life as he saw fit. This is summed up in a quote by F. A. Hayek, “The battle for freedom must be won over and over again, the socialists of all parties must be persuaded or defeated if they and we are to remain free men.”

THE APPLE DIDN’T FALL FAR FROM THE TREE


Here is a video of a speech by Ted Cruz’s father, Rafael. Watching his father’s speech gives me hope that Senator Cruz may be the real deal. Ted’s father Rafael is an immigrant from Cuba who understands the road to tyranny when he sees is. Here is some excerpts from the video.

Talking about growing up in Cuba he said,  “….I remember that time, he mandated that public schools had to teach Marxist ideology. My Mother was a 6th grade elementary teacher. She refused to do so and she was fired for it. She said I would rather suffer the consequences, than poison the minds of children with communist indoctrination……..”

Talking about his son Ted he said, “I remember when my son was still in Jr. high I introduced him to an organization called the Free Enterprise Institute. He began reading Milton Friedman, von Mises, Hayek, Adam Smith, Frederic Bastiate, the federalist papers, the anti federalist papers…….”

When I heard this reading list, I knew he had a solid back ground in economic theory and individual freedom. How many politicians in D. C. have read any of these authors writings? Not many (probably none). The thing I worry about is if he gets corrupted by the system; but having seen his father in the video above, he’s probably more afraid of his father than he is of progressive Democrats and Republicans. The grass-roots have to send more people like this to Washington to clean up the cesspool.

Related ArticleSenator Ted Cruz Stirs Up A Hornets Nest, at austrianaddict.com

Let’s Think About The Shutdown, The Debt Ceiling, And Obamacare.

October 15, 2013
Former logo

Former logo (Photo credit: Wikipedia)

The President and Congress are the actors and we are the audience as the shutdown, debt ceiling, and obamacare political theater is being played out in Washington D. C. We must always remember that everything a politician does and says has to be analyzed from the stand point of what each politician values most. For most politicians they value staying in, and gaining more power above everything. Some may have other motives, but, if we start with this basic understanding of what they are really trying to accomplish instead of believing what they say they are trying to do, our odds of seeing through the political B. S. go up exponentially. Let’s take a look the shutdown, the debt ceiling, and Obamacare from the perspective of their political self-interest.

THE SHUTDOWN

The U.S. hasn’t passed a budget since the President signed an omnibus spending bill in April of 2009. Since then we have been operating on continuing resolutions. When a budget is passed it recommends spending levels for mandatory and discretionary programs. In order for a discretionary program to be funded, an appropriations bill has to be passed, but a mandatory program, like social security, is funded without an appropriations bill. When an appropriations bill runs out and there has been no budget passed, a continuing resolution (CR) is passed which funds discretionary programs at current or expanded levels. If a CR isn’t passed, discretionary programs are cut to essential personal only. Mandatory programs are always funded. As boring as that was, we should have a basic understanding of how your tax dollars are appropriated. Now let’s look at this through the political theater prism.

Each actor is trying to convince you, the audience, that the other actor is responsible for the Government shutdown. They think winning this blame game helps them in their quest to stay in, and gain more power. The President is attempting to make the shut down have as negative  an effect on as many people as possible because he feels he can convince us, with the help of the main stream media, that republicans are responsible for all the negative effects that he chose to inflict on us. He probably never thought he would be in this position because he figured the republicans would surrender like they always do when they get attacked. The only reason they haven’t surrendered is because Senators Ted Cruz and Mike Lee have inspired small Government individuals to let their voices be heard. If public opinion wasn’t so strong this would have been over weeks ago.

Only about 20% of the Government is shut down, and if the shut down continues, people will begin to figure out we can get along just fine with smaller Government. Government is not the end all and be all that politicians try to convince us it is.

THE DEBT CEILING

Most of the R’s and D’s, in this recent debt ceiling debate, have been on the other side of the debate during previous debt ceiling debates. This point shows it’s all about politics. We are told by central planning progressives, that the U.S. will default when the debt ceiling is reached, this is a lie. The Government is legally bound, by section 4 of the fourteenth amendment of the constitution, to pay the interest on their debt. The Government takes in over $200 billion a month in taxes and pays close to $20 billion a month in interest on the debt. They will have more than enough to pay off the monthly interest on the debt. Politicians want the debt ceiling raised because they don’t want to make the hard decisions about what they will have to cut out of a $3.7 trillion budget, if they are forced to only spend the $2.5 trillion confiscated from taxpayers. This is the equivalent of  passing a balanced budget amendment without passing a balanced budget amendment. Our credit rating would be better because we wouldn’t be going deeper in debt, and the Fed wouldn’t have to electronically print the counterfeit money that is presently being used to purchase Government debt. These are all good things for the country as a whole, but not being able to spend would be the last thing a politician wants. Their power comes from their ability to make rules, and redistribute money. Less money leads to smaller Government and neither party wants less power.

OBAMACARE

Here is the simple truth about Obama care. It is the final step to a single payer government-run health care system. That is the progressives ultimate goal. These central planners want insurance premiums to rise. They also want employers to drop their insurance plans, dump their employees onto the Government exchanges, and pay the fine, or tax, or whatever it is. They want private health insurance to go by the wayside and be replaced by Government insurance, although Government insurance isn’t insurance in the true sense of the word. Government insurance is nothing more than a transfer payment from producers to nonproducers.

Single payer is something progressives have wanted for decades, so it’s more important to them than their political skins. They will do anything, lie, cheat, beg, borrow or steal, (oh yeah, they already have), to implement a single payer system.

CONCLUSION

When it comes to politicians, you have to know what they value most in order to understand what they’re doing. Politicians, 1)  value their power most and will do anything to keep it, 2) value their ideology or vision above everything, including keeping their position of power, or 3) honestly think they are doing what is right. Keep these in mind every time you here a politician open his mouth.

Related ArticleFiscal Cliff or Political Theater? by austrianaddict.com.

Related ArticleA Look Behind The Curtain At The Fiscal Cliff Theater, The Jokes On You, by austrianaddict.com.

Related ArticleHuman Action Reveals The Reality About Political Decisions, by austrianaddict.com.

Thoughts After Attending A Liberty Workshop

October 9, 2013

I was able to attend a liberty workshop hosted by Liberty On The Rocks and Libertas Found this past weekend, with the keynote speaker being Libertarian Girl. What stands out about going to a liberty event as opposed to a tea party event is the age of the crowd. The liberty groups are a generation, or more, younger than the tea party groups. Because they grew up with modern technology, the younger liberty groups  understand how to utilize computers the internet and social media, way better than the older people in the tea party. The R and D paradigm has no meaning to liberty groups, where as the tea party people have a hard time seeing anything outside of the R and D model which they grew up under. The liberty groups have a degree of confidence about what they know concerning individual liberty, where as the tea party groups years of real world experience brings a kind of knowledge that the younger groups can’t know. The knowledge and human capital of both groups combined is enormous. I wish they could work together more on defeating the real enemy, which is progressive democrats and progressive republicans. The battle against the progressives is going to take decades and both groups will play their part, but the younger liberty groups are the ones who are going to have to teach the next generation that individual liberty, not Government promised security, is the way to a better life for them and a better world for us.

Here is a repost of an article I wrote on 4/24/13.

Are You a Democrat, a Republican, or a Libertarian?

I do firmly believe in the Party

I do firmly believe in the Party (Photo credit: Alex Panoiu)

It’s difficult to discuss issues calmly and logically because all of us plant our ideological flag on one of these three hills [ D,R, or L, or liberal, conservative, or libertarian]. If we see the other person’s flag, we automatically place them under that banner, and think there is no chance to reach common ground on any issue. The fact that each group has painted themselves into an ideological corner, because they demand a degree of  ideological purity, is what makes it easier to place the other person under a particular banner. This post titled, “You Are Not A REAL Libertarian”, by Mungowitz at Kids Prefer Cheese, poking fun at  libertarians for not accepting anyone who isn’t 100% pure in thought. But I have seen the same thing from liberals and conservatives, so no one is immune from this disease.

What we have to understand about party politics is, the rank and file have different incentives for identifying with a party, then the incentives of the establishment for being members of the party. The establishment’s sole purpose is to maintain the power of the party at all cost. It’s easier to keep and grow power if you have an enemy to demonize, and therefore party propaganda tries to get the rank and file to think of the other side as evil, misguided, or stupid. The rank and file are willing to think this way for two reasons. 1) They don’t have enough time to read about, and understand, the complex economic ramifications of their parties policies. Which leads to. 2) They trust  the establishment of their party is telling the truth, because it costs less in time to trust than it does to verify.

Another reason people are attracted to certain parties is because of the benefits promised by that particular party once it gets into power. There is no shortage of politicians who will promise anything to anybody in order to get their vote. Politicians are always trying to talk about group interests; black white, rich poor, male female, old young, etc, because it is more cost-effective for politicians to convince people that they are a part of a special interest group, rather than to have each voter think of himself as an individual. This is the reason politics always seems to be “a strife of interests masquerading as a contest of principle“.

If each person thought of himself as an individual, he would understand that individual freedom is in his best interest. When Government power grows, individual freedom shrinks, so the only way to have more individual freedom, is to shrink Government. The establishment elite’s only interest, is in growing Government power, so they can sit in the driver seat when their party is given the keys by the voters. The vast majority of the rank and file, whether D’s, R’s, or L’s, have to understand that their enemy is not the rank and file of the other parties, it is the establishment elite of the parties. The party machine has swallowed up many a young politician who was elected because of his promise to shrink Government. If all the rank and file who understand that Government is an impediment to their individual freedom got together, not to form another party; but to persuade politicians in their party that freedom is in their best interest, or defeat them if they can’t be persuaded, we could begin to shrink this enemy of the individual.

I try to think of everything that is political, through the lens of Austrian economics. These principles clear up every issue, and they will for you if you invest some time to learn. If you already understand economic principles form the Austrian perspective, then you have an obligation to persuade others. Remember, you don’t persuade people by beating them over the head, and you don’t give a child a rare steak when they are on baby formula. You have to start where they are, lead them to the door and let them walk through. This costs more in time then hitting them with a club, but if you truly believe in individual freedom, you will be willing to pay the price. Remember, hitting them over the head is about you, leading them to the door is about them.

Related VideoWalter E. Williams. “Are We Moving Toward More Personal Liberty, Or More Government Control Over Our lives.” at austrianaddict.com.

The Market (Individuals) Finds Ways Around Govenment Intervention.

October 7, 2013
600 mm by 300 mm (24 in by 12 in) emergency pl...

(Photo credit: Wikipedia)

INDIVIDUAL DECISION MAKING vs. GOVERNMENT DECISION MAKING

I’ve always thought free market capitalism would always out pace the interventions of Government, but when the bubble burst in 08, I started to change my mind as I began to educate myself about the interventions by the Fed via the double edge sword of low-interest rates and electronically printing counterfeiting money. I had never understood the ramifications of these policies until I started reading about the Austrian Business Cycle Theory. We have talked about these ramifications in these posts: The Role Of Interest Rates In A Market Economy, Thomas Woods Explains The Austrian Business Cycle Theory, Keynes Was Correct In 1919!,  A Look Over The Horizon At What Lies Ahead If We Continue Down The Central Planning Road, What Comes First Production Or Consumption,

I had become more pessimistic about the chances of the market regaining the lead over Government intervention, but recently I’m seeing signs of the market starting to reassert its dynamism. Two examples are the shale oil boom and another is the plummeting sales of electric cars. The oil boom is happening in spite of the best efforts of Government to get in it’s way, and electric car sales prove the consumer ultimately makes the decision on what succeeds and fails in the market, and not the Government. I should never have been pessimistic in the first place because the market is always attempting to correct the interventions perpetrated on it by the Government.

THE BUST IS THE CURE FOR THE PRINTED BOOM

If we look at the case of the housing boom that lead to the 08 bust, the boom was out pacing the corrections by the market, much like the story of the tortious and hare, but once economic reality finally caught up to the fake reality created by Government, the bust in housing occurred. The bust was the cure for the artificial boom created by the Government and the Fed, and should have been allowed to run its course in order to wring out all the misallocations that had been allowed to grow during the boom. From the politicians stand point this much-needed cure was a political nightmare, because they were in the driver seat when the crash happened. So instead of letting the market cure the problem they created, the Government and the Fed stepped in and “saved” the too big to fail banks by lowering interest rates to near zero and injecting close to $3 trillion into the economy through the purchase of mortgage-backed securities and treasury bills. This doesn’t even count the TARP bailout under Bush or the $900 billion economic stimulus package under Obama. What the Fed and the Government did to grow the boom and then “save’ the economy from the bust, was like a doctor prescribing steroids to his young patient in ever-increasing amounts to help build a big strong body. Everyone could see him growing because of his outward appearance, but no one could see what was happening on the inside. When his organs began to fail, and his body began to break down, the doctor prescribed more steroids to try to keep his body growing. This isn’t a perfect analogy but it’s close to describing what the Fed and the Government has done to the economy over the last 15 plus years. Unlike the patient, who will eventually die, the economy won’t die, it will continually keep trying to make corrections for all the interventions by the Fed and the Government. Why won’t the economy die? Because an economy is simply the result of all the decisions made by each individual as they cooperate and compete with other individuals on how to use scarce resources for production and consumption. Government intervention is just one variable that has to be considered when individuals make decisions. When Government intervention grows to a certain point, individuals start spending more time protecting what they have rather than spending  time producing more. The standard of living begins to stagnate as we start to consume more than we produce.

Here is a chart that shows that debt doesn’t create growth. The G7 nations consist of US, UK, France, Germany, Italy Canada, and Japan. The debt that was created to grow these economies has only marginally increased GDP compared to the growth in debt. In fact the GDP number is fake because the electronically printed counterfeit money that gets used for consumption is counted when GDP is calculated. You could say the central banks are counterfeiting a positive GDP number. Read article here.

CONCLUSION

This debt has to be paid back by future production. Future production also has to sustain future consumption by Government and private individuals. If production can’t cover all three (debt, Government consumption, and individual consumption), who do you think will have to sacrifice for the other two? The upcoming debt ceiling fight will answer that question. My prediction is the debt ceiling will go up and there will be no actual cuts in Government spending, just minor reductions in the rate of growth. I hope I’m wrong.

Checkers Or Chess, Who Got Played In Syria? You Did

September 18, 2013
Chess game and play clock with the pieces in t...

Chess game and play clock with the pieces in their initial position. (Photo credit: Wikipedia)

I saw this at Kids Prefer Cheese, It is a tweet from Russian chess grandmaster and former world chess champion Garry Kasparov. I’ve thought of our President as a grandmaster community organizing checkers player who got stuck playing foreign policy chess. He doesn’t think any intelligence exists beyond his own brilliance. This tweet by Kasparov shows that maybe our checker player got checkmated, or maybe he thinks he got enough political cover from Putin to come out of this smelling like a rose. We must understand he is not just playing a foreign policy chess game, he is playing this foreign policy chess game inside of what he considers a bigger and more important game, which is getting us to see him as a believable and trust worthy leader which would help him further advance his domestic agenda. Having foreign countries think of him as a strong leader on the world stage is secondary (more…)