Visual Explanation Of The Deficit And The Debt

Posted November 1, 2013 by austrianaddict
Categories: Econ. 101

Tags: , , , , , , , , ,

The visual of this chart is outstanding, it jumped off the page when I saw it. The chart shows our Governments yearly revenue, yearly deficit, and total debt. This is from an article titled Great News! The Fiscal Crisis Is Over! by Jon Gabriel, at ricochet.com. I got there from this article at theburningplatform.com.

https://i0.wp.com/cdn1.ricochet.com/var/ezwebin_site/storage/images/media/images/debtchart/4700766-1-eng-US/debtchart_lightbox.png

Here is a quote from Mr. Gaberiel, “…imagine the green is your salary, the yellow is the amount you’re spending over your salary, and the red is your MasterCard statement.”

What is sobering about this chart is how a seemingly small yearly deficit compounds into a massive amount of debt over time. What is it going to look like in three more years if we continue our $1 trillion yearly deficit?

THE REAL DEBT TOTAL

Unfortunately the $17 trillion is really not the actual debt. If you factor in the unfunded liabilities for Social Security, Medicare, and Medicaid, which have been estimated to be between $55 to $222 trillion, look at chart here, the problem gets exponentially worse. What do you think Obamacare will add to this unsustainable mountain, or valley, of debt?

THE FED RIDES TO THE RESCUE?

Fortunately we have the Fed which can electronically print counterfeit money to pay our way out of this mess. Oh yeah, I forgot, the only way a Government can accumulate this amount of debt is because its Central Bank funds the expansion in the first place by buying Government bonds. Without the ability to electronically print counterfeit money, Governments can only grow to the size of what they can steal or mooch through taxing and borrowing. At a certain point, individuals won’t produce above a certain level if they can’t enjoy the fruits of their labor, and they won’t purchase bonds from a seller whose level of debt makes the transaction seem to risky. The Fed can’t print its way out of the economic reality of scarcity. Their denial of this reality is why they printed us into this mess in the first place.

Related ArticleLet The Counterfeiting Continue! The Fed Is Stuck In Their Feedback Loop, at austrianaddict.com.

Related ArticleThe Fed As Giant Counterfeiter, by Robert P. Murphy, at mises.org.

The Reality Of Obamacare

Posted October 28, 2013 by austrianaddict
Categories: Econ. 201, Government and Politics

Tags: , , , , , , , , ,

“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

Must Reads For The Week 10/26/13

Posted October 26, 2013 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , , , , , ,
The pen is mightier than the sword...

The pen is mightier than the sword… (Photo credit: mbshane)

Yale Professor Surprised: Tea Party Supporters More Scientifically Literate, by Kyle Becker, at ijreview.com. From the article, “…all my impressions come from watching cable tv…..and reading the paper…I’m a little embarrassed, but glad…I no longer hold this particular mistaken view.”

Obamacare Tech Firm (CGI) Tried, Failed To Build Gun Registry In Canada, by Joel B. Pollak, at breitbart.com. Does the choice of CGI to build the website tells us the administration is either less scientifically literate than the average person, corrupt, incompetent, or just unlucky?

Why The Fed Will NEVER End Quantitative Easing, by Patrick Barron, at patrickbarron.blog.blogspot.com. An excellent one paragraph analysis of why the Fed can’t escape the Groundhog Day movie it created for itself.

Alan Greenspan Warns Of Double Digit Price Inflation, at economicpolicyjournal.com. Former fed chairman warns, “the feds balance sheet expansion may unleash inflation.” A moment of candor from an insider.

With Debt Ceiling Lifted, Federal Government Resumes Borrowing Spree, by J. D. Tuccille, at reason.com. The “kick the can” debt ceiling deal, allows the U. S. Treasury to borrow as much as it wants until February 7th 2014. I Guess this shows how serious “socialists of both parties” are about controlling spending.

Debt Limit: A Guide To American Debt Limit Made Easy, youtube video. I found this at Carpe Deim Blog, This is a short video that puts the Governments debt problem in perspective.

The Diverse Beer Economy As An Ecosystem, by Mark J. Perry, at Carpe Deim Blog. Explains how brewpubs and microbreweries are finding a niche market among all the big beer makers.

Higher Education: The Conventional Wisdom Is Wrong, by George Leef, at faculityrow.com. Here’s the money quote, “….for many students, their K-12 years leave them pitiably unprepared, both for post-secondary education and the world of work.”  And this, “Any increase in college enrollment will overwhelmingly come from such academically marginal students.”

How Bitcoin Will Be Neutralized By The Government, at economicpolicyjournal.com. The Gov. will do anything to protect its monopoly on money creation.

Which One Doesn’t Belong?

Posted October 23, 2013 by austrianaddict
Categories: Econ. 201

Tags: , , , , ,
Which one doesn't belong?

Which one doesn’t belong? (Photo credit: VerismoVita)

This post from zerohedge.com titled, Spot The Odd One Out, needs little explanation. But you know I can’t let it go without putting my two cents in.

The charts in the post are easy to follow as they lead up to this last chart which shows the Feds balance sheet (in red), compared with the S&P 500 (in green) over the last year. Let’s talk about what the Feds balance sheet is and what it represents.

The Feds balance sheet shows the amount of assets, in dollars, purchased by the Fed. The bulk of these assets are government securities and mortgage-backed securities. Government securities are government bonds and t-bills. Purchasing government securities is the purchasing government debt or, put more clearly, financing the ability of the Government to grow beyond what it confiscates in taxes. This is how the Fed Finances the debt.

Purchasing mortgage-backed securities is the purchase of mortgages created and held by banks. This purchase exchanges the mortgage for counterfeit dollars. Because of our 10% fractional reserve banking system, banks can loan out 10 times what they hold in dollars, if they so choose. This means that the bank can loan 1 million counterfeit dollars for every $100 thousand held in reserve, This is how the Fed injects counterfeit money into the economy.

Here is a look into the Feds balance sheet, courtesy of The Wall Street Journal, wsj.com.

The balance sheet above shows that a little under $1 trillion dollars have been injected into the economy in the last year. This money is finding its way into the financial markets, and is pushing the stock market bubble higher. The other charts show the recent movement of many indicators in the opposite direction of the S&P 500. When the Fed hints of tapering their securities purchases, the stock market starts to sell of like a child throwing a tantrum when mom threatens to take away the oreo cookies. So in order to keep the stock market bubble pumped up, the Fed has to inject increasing amounts of counterfeit money. But just like the bursting of the Fed created tech and housing bubbles, in 00 and 08, this financial bubble will eventually burst although no one knows when the correction will happen.

Related ArticleLet The Counterfeiting Continue! The Fed Is Stuck In Their Feedback Loop, at austrianaddict.com.

Related ArticleA Tornado vs. The Fed, Which Id More Destructive? at austrianaddict.com.

Observations From The Margin

Posted October 21, 2013 by austrianaddict
Categories: Observations From The Margin

Tags: , , , , , ,
Observation Tower

Observation  (Photo credit: mooglet)

– If you were a number one draft choice, and you hired the republican leadership to negotiate your contract with the team that drafted you. You would probably have to pay the team a signing bonus to play for them.

– What a sweet deal Government workers have. They will receive back pay for not working for two weeks. Maybe they should ask for unemployment compensation to go along with their two week paid vacation.

– The republicans were convinced they would lose seats in the 2014 election if they continued the shutdown and didn’t extend the debt ceiling. The deal they agreed to just delays dealing with the problem for three months. I have to ask, If you were afraid of losing seats a year out from the election, how much more afraid will you be nine months out? Do you think the republicans will be more eager to surrender or fight?

– The administration wouldn’t pay death benefits to families of soldiers killed in combat during the shut down. When they finally passed the CR to fund Government, section 134 specifically gives a death benefit for the widow of Senator Frank Lautenberg (his net worth is $56.8 million). What’s the difference between being a serf and being member of the ruling aristocracy? A serf is used as a pawn to be sacrificed in the political chess game, and nothing can be denied what is the birth right of the ruling class.

– During the shut down, I heard people talk as if the Government is the economy. Question, does the Government produce what it consumes, or does the private sector produce everything and Government confiscates what it consumes? Who is the parasite and who is the host in this relationship?

– When a politician uses the phrase, “the American people” want or need or think something, he is presuming more knowledge about how individual Americans think than he can possibly know. It’s a phrase designed to stop arguments that are counter to his position, by claiming a majority agree with him.

– Some related cartoons from, The Burning Platform. See more here.

138981 600 Congress kicks the can cartoons

Must Reads For The Week 10/19/13

Posted October 19, 2013 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , , , , ,
The pen is mightier than the sword...

The pen is mightier than the sword… (Photo credit: mbshane)

Less Government! Not, at Kids Prefer Cheese, at mungowitzend.blogspot.com. The only thing worse than an honest Democrat is a dishonest Republican.

House CR Forks Over $174 Thousand Dollars For Late Senators Wife, by Matt Fuller, at rollcall.com. It must be wonderful to be a member of the ruling aristocracy. The $174 grand is taken from yours and my production. Oh by the way, the late Senator Lautenberg had a net worth of $56.8 million

Nobel Prize Winner Is A Keynesian Crackpot, at economicpolicyjournal.com. Robert Shiller says unemployment is a product of capitalism, and the cure is, you guessed it, fiscal stimulus, deficit spending, and raising taxes. Awarding the Nobel Prize must be a way to give status to ignorance.

Special Needs Child “Suspended indefinitely” For Drawing A Cartoon Bomb, by Kristin Tate, at benswann.com. School officials told the mother, “……they could not go without making an example of him…….”.  Have we lost our minds.

Video:  Woman’s Face Shattered After Cop Throws Her Into Concrete Bench, by Kristin Tate, at benswann.com. This woman was defenseless. Is this just a case of one bad apple, or is this a trend? The more law enforcement uses it’s badge to shield them when they trample on individual rights, the less respect people will have for their authority. This leads to the break down of the rule of law.

Rep. Trey Gowdy Questions NPS Director Jonathan Jarvis On Barricading Monuments, youtube video. Rep Gowdy won’t let director Jarvis dodge the questions. Maybe the main stream media should take lessons on how to get to the truth.

Dallas Cop Shoots Mentally Ill Man, by Kristin Tate, at benswann.com. The mother called 911 because she was worried about her son after they had gotten into an argument earlier in the day. The lesson we should learn form this, don’t call the cops for help on anything except felony activities.

Greek Government Refuses To Economize, at patrickbarron.blogspot.com. From the article, “The Greek government is more concerned about its own electoral success than solving the nation’s financial problems.” Does that sound familiar?

No Cause For Celebration, by Monty Pelerin’s World, at economicnoise.com. What’s the meaning of the deal that was struck between the D’s and R’s. It means more spending by Government, and more financing of the debt by the Federal Reserve. It’s the same old song.

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

Posted October 17, 2013 by austrianaddict
Categories: Government and Politics

Tags: , , , , , , ,
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.

Posted October 15, 2013 by austrianaddict
Categories: Government and Politics

Tags: , , , , , ,
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.

Must Reads For The Week 10/12/13

Posted October 12, 2013 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , ,
The pen is mightier than the sword...

The pen is mightier than the sword… (Photo credit: mbshane)

Treasury Secretary Lew Refuses To Discuss Obamacare Enrollees, youtube.com. At least he didn’t lie, he just filibustered the answer.

Debt Ceiling Humor: Obama opposed the debt ceiling increase in 2006, at zerohedge.com. The President was against raising the debt ceiling, before he was for it.

The Second Battle Of Yorktown: Defying The Park Service, by Gary North, at lewrockwell.com. Restaurant owner defies Park Service, reopens after he is told to shut down. Let’s all take a stand against Government force.

Dr. Ben Carson’s IRS Audit Can’t Possibly Be Coincidence, at investors .com. Using Government coercion to punish critics, on the one hand, and  to constrain future criticism on the other.

Runner Fined $100 At Valley Forge Amid Government Shutdown, at philadelphiacbslocal.com. We don’t have enough money to keep the park open, but we have enough money to pay police to watch over a shutdown park.

laziest Postal Worker Ever, Youtube video. I saw this and thought it couldn’t possibly be real. I thought someone had paid a postal worker to use the mail truck for half an hour just to make this video. “Neither snow nor rain nor heat nor gloom of night stays these carriers from the swift completion of their appointed rounds.”

Inarticulate Republicans, by Thomas Sowell, at jewishworldreview.com. Quote from Thomas Sowell, “Democrats….could sell refrigerators to Eskimos before Republicans could sell them blankets.The reason establishment Republicans can’t articulate individual freedom and free markets is because they don’t believe in or understand individual freedom and free markets.

Are Guns The Problem, by Walter E. Williams, at jewishworldreview.com. Quote from Walter Williams, “Customs, traditions, moral values and rules of etiquette, not just laws and government regulations, are what make for a civilized society, not restraints on inanimate objects.”  Guns don’t behave, people behave.

Thoughts After Attending A Liberty Workshop

Posted October 9, 2013 by austrianaddict
Categories: Government and Politics

Tags: , , , , , , ,

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.