Posted tagged ‘F.A. Hayek’

Are People Smarter Today Compared To People 100 Years Ago?

December 3, 2014

The Thinker Statue by the French Sculptor Rodin - stock photo

I asked myself this question, “are people smarter today compared to people 100 years ago”, after reading an article titled, Dumb And  Dumber – Scientific Proof  That People Are Getting ‘Stupider’, at zerohede.com. In the article, the writer makes the assertion that people are getting ‘stupider’ {then humorously asks, is ‘stupider’ even a word}. The article states that there is now scientific evidence that this is so. SAT reading and verbal scores have been going down for decades, are examples cited as evidence to support the theory. The article also posts a 1912 eighth grade exam from  Bullitt County Schools in Kentucky. Try to answer some of these questions, you will be humbled.

DEFINE STUPID AND SMART

The question: are people getting stupider, needs to a few qualifying questions asked before we can answer it. 1) What are the standards used for comparing the intelligence of people who lived 100 years ago to people alive today? 2) Who decides what constitutes being smart and being stupid? 3) Does reciting  facts from memory, like a contestant on Jeopardy, show higher intelligence than being able to take facts and logically reason your way from point A, to a conclusion at point Z? 4) Does being smart in your chosen field magically make you smart in other fields? These are just a few questions we need to think about before we make a pronouncement about intelligence or lack of intelligence.

DIFFERENT ERAS REQUIRED DIFFERENT KNOWLEDGE

People today need to know less about some things and more about other things than the people who lived 100 years ago. If you look at the eight grade test in the article linked to above, you will find questions about spelling, arithmetic, grammar, geography, physiology, civil government, and history that not many of us could answer today. However the answers to these questions are just a click on the computer, or a swipe on a cell phone away from getting answered in today’s world. The knowledge that people had to memorize back then is now stored on a computer chip and is able to be called up at a moments notice. Think of the times you have been with people and someone asks a question that no one can answer until someone uses their cell phone to look it up. The ability to write these posts would be exponentially more time-consuming if it wasn’t for computers. The ability to use spelling and grammar checks makes writing so much easier (some times these tools can’t even save me from spelling and grammar mistakes). Think about a sports writer decades ago pounding out his story on a typewriter: talk about having to get it right on the first take. Calculators have made complex math problems easy for dummies like me. You don’t have to know how to read a map today because you have GPS on your phone with the hot British female voice telling you, “in 200 feet turn right”.

The advance in the standard of living since the industrial revolution brought about a situation where more and more people didn’t have to know how to produce food, clothing, shelter, etc in order to win their battle against the planet for their survival. People began to specialize in producing these things more efficiently which freed up time and labor to be used to produce new products and services that were created by entrepreneurs who speculated, but were not assured, that markets existed for these new products and services. Through this trial and error process of becoming more productive, we can safely say that the over all amount of knowledge in society is obviously expanding, while at the same time we can say that an individual needs less over all knowledge to survive. The process of production has become so specialized that an individual can be a welder at a John Deere plant and literally trade his labor for food, instead of knowing how to actually produce food.

THOMAS SOWELLS TAKE

Thomas Sowell writes about what we are talking about in his book, Knowledge And Decisions ( one the best books I have ever read),  was inspired by F.A Hayeks essay, The Use Of Knowledge In Society.

Dr. Sowell writes in Knowledge and Decisions (which was written in 1980), “The growing complexity of science, technology, and organization does not imply either a growing knowledge or a growing need for knowledge in the general population. On the contrary, the increasingly complex processes tend to lead to increasingly simple and easily understood products. The genius of mass production is precisely in its making more products more accessible, both economically and intellectually to more people.”

Think of how much more true this is thirty-four years after Dr. Sowell wrote this. Things we use in our everyday life weren’t around in 1980.

More from Dr. Sowell. “…Matthew Brady required far more knowledge of photographic processes to take pictures with his cumbersome equipment during the Civil War than a modern photographer requires to operate his automated cameras…..The printing press performs daily communications miracles beyond the ability of an army of the most highly trained and dedicated scribes of the Middle Ages….An ordinary individual can easily arrange travel across thousands of miles through cities he has never seen by tapping the knowledge of travel agents and/or the American Automobile Association.”

Photographic equipment? The printing press? Travel agents? Seriously. We take pictures with cell phones. We have the internet and inkjet printers. We don’t call Triple A to make travel arrangements, we call Triple A if we need a tow.

THE ONE AREA IN WHICH WE ARE CERTAINLY DUMBER

If you haven’t seen the eighth grade exam from 1912 in the Dumb and Dumber article above you should go look at it. The civil government and history part of the eighth grade exam is where we have become woefully ignorant. Unfortunately these two areas are the most important areas we as individuals need to be smart about if we want to have continued prosperity. Being smart in these areas would have kept us vigilant about the incremental taking of individual freedom by people in Government that has happened over the last 50 plus years. Two questions from the civil government part of the exam prove my assertion. How many adults, let alone eighth graders today, could get these two questions right. 1) Name three rights given Congress by the Constitution and two rights denied Congress,  and 2) Define the following forms of Government: Democracy, Limited Monarchy, Absolute Monarchy, Republic. Give examples of each.

These questions aren’t even asked today. The first question, “name three rights given congress by the constitution…and two rights denied congress”, speaks volumes about what was understood about the constitution in 1912 that isn’t even taught in schools today. The fact that congressional powers are limited is stated in the question. Today most people think congress has unlimited power to make any law individuals in congress wish to make. Most people today think the President has unlimited power to decree what he wishes. But I bet most eight graders in 1912 knew that the President had limited powers.

CONCLUSION

The amount of over all knowledge has expanded exponentially over the last 100 years, while at the same time the amount of knowledge an individual needs to survive is less, and also the kind of knowledge each individual needs to survive is different.

The real question is not; are we smarter today than 100 years ago,? The real question is; are we smart enough to understand that the process that produced today’s standard of living stretches far back in time? Free individuals cooperating in free markets produced the standard of living we enjoy today. Central planning by Governments didn’t produce it, in fact, it has hampered our advance. The passage of time has separated us from the founding principles of our country.  If we aren’t smart enough to understand this, we will continually allow democratically elected tyrants to incrementally crush our individual freedom under the heel of their central plans.

Related ArticleWe’re All Born In The Middle Of The Story, by austrianaddict.com.

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

Related ArticleSpontaneous Order = Free Markets, by austrianaddict.com.

 

 

 

Observations From The Margin

November 6, 2014

Observation Tower

 

OBSERVATIONS ABOUT THE ELECTION

What does the Republican party gaining control of the Senate, increasing their majority in the House, and winning Governorships in Democratic strongholds like Illinois, Massachusetts, and Maryland tell us?

-Maybe a growing number of individuals are finally seeing what big Government central planning really looks like, and they don’t like it. The President’s interventionist policies over the last 6 years made him the face of big Government. This made it possible for Republicans to run against him specifically, instead of running against a faceless entity called big Government.

– When the President said “his policies were on the ballot”, no truer statement has ever come out of his mouth. In his press conference the day after the election though, he tried to spin his way out of that statement. It didn’t work. He said the election showed ” the people” wanted their Government to “get stuff done”. No Mr. President, with all due respect, many people want You to get out of their lives and leave them alone. They want the Government to stop “doing stuff”, and/or repeal “the stuff” you have already implemented.

-I love how politicians say “the people” as if it’s a monolithic entity that has a single mind. “The People” is made up of millions of unique individuals. This fact is the reason why Big Government central planning won’t work, because one plan can’t please millions of individuals. Individuals are only happy when they are allowed to make choices based on what they value, not “the” choice that some totalitarian politician tries to force on them.

-If Republicans think that “the people” are now on their side, they are sadly mistaken. I think many individuals understood that the only way to stop the current Government intervention into their lives was to vote in Republicans and try to hold their feet to the fire. Many of us know there is no chance that the Democrat party will ever be for smaller Government. But that doesn’t mean the Republicans are for smaller Government. If establishment Republicans don’t try to stop the growth of Government, if they won’t stand up to the President, guess what happens in the next election.

-If the implementation of Obamacares employer mandate had been implemented in 2014, instead of unconstitutionally delaying it until 2015; if the shale oil revolution hadn’t created a vast majority of the new jobs the President is taking credit for; how much worse would Nov. 4th had been.

-Republican analysts  moan about the fact that Romney got 4 million fewer Republican votes than Bush got in 2004, and crow about the fact that they got 5% more votes from Independents than Obama. They say if the Republicans had turned out, they would have won. Did they ever consider that the 4 million Republican votes they didn’t get are actually the 5% increase in independents. Many Independents used to be Republicans and probably still vote Republican.

-The Republican establishment doesn’t like the tea party and the libertarian wing of their party. Why? Because the tea party and the libertarians want Government to shrink while the establishment just wants to win elections so it can take big Government for a test drive. Do we realize that we are putting individuals in power and asking them to give up some of the power they wield? How hard is it to get rid of entitlements? Being in power is the ultimate entitlement.

-Alaska (69%), Arkansas (65%), South Dakota (55%), and Nebraska ((59%), all passed laws that increased the minimum wage. How can voters in these states who voted against expanding Government on the one hand, vote for Government intervention on the other? We know that economic reality won’t allow minimum wage laws to work like the central planners planned (Read: Minimum Wage Laws Create Unemployment). But, from The stand point of individual liberty, do these voters understand that they are interfering with a contract to which the employer and the employee voluntarily agreed. Do they realize that on the same ballot they voted to intervene in individuals lives, and to stop individuals in Government from interfering into their own lives. We have a lot of work to do in educating individuals about economics and individual liberty.

-It has taken 100 years of progressivism to get to this point in time where Government is involved In every aspect of our lives. How long do you think it will take to turn the ship around? It will take more than a few elections cycles. As F. A. Hayek said, “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 battle for individual freedom is going to be won at the state and local levels. Governors have to have the stones to stand up to the Federal Government. Rolling back Government is going to happen from the bottom up not from the top down in D.C.

LET’S LAUGH!

 

 

 

 

 

 

 

 

 

 

 

Walter E. Williams Explains The Long, Tragic, Ugly Story Of Government,

April 15, 2014

In a recent article by Walter Williams titled, How To Assist Evil, he makes the point that since the beginning of the 20th century,  170 million people have been killed by their own government, where as only 60 million were killed in wars. When it comes to killing your own citizens we always think of the Holocaust in Nazi Germany. Unfortunately it was just one of the many examples of Government atrocities against their citizens.

Here are some excerpts from the article.

THE HOLOCAUST

“Though the Holocaust ranks high among the great human tragedies, most people never consider the most important question: How did Adolf Hitler gain the power that they needed to commit such horror?

“Through the Enabling Act (1933), whose formal name was “A Law to Remedy the Distress of People and Reich,” Hitler gained the power to enact laws with neither the involvement nor the approval of the Reichstag, Germany’s parliament……It was decent Germans who made Hitler’s terror possible – Germans who would have never supported his territorial designs and atrocities.”

OTHER ATROCITIES IN THE 20th CENTURY

“….since the beginning of the 20th century, governments have killed 170 million of their own citizens. top killers were the Soviet Union, which, between 1917 and 1987, killed 62 million of its own citizens, and the People’s Republic of China, which, between 1949 and 1987, was responsible for the deaths of 35 to 40 million of its citizens. In a distant third place were the Nazis, who murdered about 16 million Jews, Slavs, Serbs, Czechs, Poles, Ukrainians and others deemed misfits, such as homosexuals and the mentally ill.”

“We might ask why the 20th century was so barbaric. Surely, there were barbarians during earlier ages. Part of the answer is that during earlier times, there wasn’t the kind of concentration of power that emerged during the 20th century.”

IT CAN’T HAPPEN HERE

“….The more power a government has, the more it can act arbitrarily according to the whims and desires of the elite, and the more it will make war on others and murder its foreign and domestic subjects…..the elite’s use government to dupe and forcibly impose its will on the masses. The Masses are always duped by well-intentioned phrases….what German could have been against “A Law to Remedy the Distress of People and Reich”?….and who could be against the “Patient Protection and Affordable Care Act”?” 

“We Americans ought to keep the fact in mind that Hitler, Stalin and Mao would have had more success in their reign of terror if they had the kind of control and information about their citizens that agencies such as the NSA, the IRS and the ATF have about us…”

The Road To Serfdom, by F.A. Hayek was written in 1944. It is a book that answers the question Dr. Williams asks in his article. Hayek lived in Germany during the time before Hitler came into power. He explains how the concentration of power just doesn’t lead to serfdom, it is the road to serfdom.

Related Article, Terminus On The Road To Serfdom, by D.W. MacKenzie, at mises.org.

Here is The Road To Serfdom, at mises.org.

Here is The Illustrated Road To Serfdom , at mises.org.

 

 

 

 

 

 

 

 

 

 

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

Richard Ebeling: “How The Fed Goes Bust”, Interview on RT’s Prime Interest.

August 15, 2013

Economics professor Richard Ebeling is interviewed on a show called Prime Interest, which is produced by RT, formerly known a Russia Today. It is a Russian based television network that is a non-profit organization funded by the federal budget of Russia. It is hard to believe you have to go to Russian television to find an Austrian economist give an outstanding analysis of how the Federal Reserves policy of low-interest rates, and electronically printing counterfeit money, created the artificial economic boom that led to the 08 bust, and how this same policy has them in a box from which there is probably no escape. They have to keep counterfeiting money or their will be a huge correction. Because they injected ever-increasing amounts of counterfeit money, in order to keep the correction from happening in 08, the inevitable correction will be much worse, and more painful, than if they would have let the correction run its course.

The interview starts at 2:48 and ends at 13:50, and is well worth it. He also talks about his interactions whth F. A. Hayek and Murray Rothbard two of the three most well-known Austrian economists, the other being Ludwig von Mises.

http://www.youtube.com/watch?v=yp2Ns4T0cOE

You can’t find this on American television news. Is American television the new Pravda? Pravda, which means “Truth”, was the state news paper of Russia.

Related Article – Federal Reserve Money Injections Since 00 Haven’t Worked As Advertised, at austrianaddict.com.

Related Article – Dallas Fed President Fisher Points To The Feds Real Problem, at austrianaddict.com.

Related Article – Real Savings vs. Counterfeit Savings, at austrianaddict.com.

Ted Cruz Lets Us See The Magic Show From Behind The Curtain.

May 31, 2013

Magicians hate it when someone shows the audience how a magic trick works. Ted Cruz is showing us how the verbal sleight of hand artists in the Senate perform their misdirections. Big Government Senators from both parties have to be upset with him, which is great for liberty and bad for arbitrary power by Government [tyranny].

As F.A. Hayek stated, “…The battle for freedom must be won over and over again, the socialists of all parties must be persuaded of defeated if they and we are to remain free men.”

If you want to know who a man really is, find out who his enemies are.

Milton Friedman vs. Phil Donahue, Greed Is In The Eye Of The Beholder.

April 16, 2013

Hayek’s quote, …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, is never more true today. This battle Hayek talks about has been  going on constantly since the beginning of recorded history, and will continue to go on till the end of time. Watch this video of Milton Friedman, in either 79 or 80, when he was on the Donahue show, it is an example of the two different visions of how the world works.

 

Since we know humans by their nature are self-interested (greedy), ask yourself which economic system deals with self-interested individuals better, the free market or central planning? Read this previous post, Why Socialism Won’t Work? Human Nature.

Related post, We Can’t Recreate The Garden Of Eden, by austrianaddict.com