Posted tagged ‘Friedrich Hayek’

Must Reads For The Week 8/15/15

August 14, 2015

The pen is mightier than the sword...

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

Fed Finally Figures Out Soaring Student Debt Is Reason For Exploding College Costs, at zerohedge.com. The Fed has figured out that when money, from debt and money printing, is injected into a particular area of the economy, it raises the price (creates a bubble). Does this revelation hold true for all of the Feds printed money that has gone into the stock market?

The Doctor Won’t See You Now, at Forbes.com.  The laws of economics will be strictly obeyed.  The money quote from the article, “Many exchange policies limit patients’ choices of doctors and hospitals in order to keep premiums down in the face of Obamacare’s intrusive regulations and costly mandates.”  Who could have predicted that?

Navajo Nation Vows To Hold EPA Accountable, at zerohedge.com.  The EPA is responsible for releasing 1 Million, 3 Million gallons of toxic waste water into Colorado’s Animus River.  Like all Government agencies they are currently blaming the contractor for the accident.  Tough luck for New Mexico and Utah who are downstream from the toxic release.  I haven’t heard a peep from the media or environmental groups about this.  I guess it’s neither illegal nor a big deal if the government does it.  I wish the Navajo nation good luck in any lawsuit.  It’s great to be the tyrant, king!

Did EPA Intentionally Poison Animus River To Secure SuperFund Money?, at zerohedge.com.  It appears that a retired geologist predicted that the EPA would foul the Animus River a week before it actually occurred.  The implications of his accusations are chilling.  Never let a good crisis go to waste?

The Battle Intensifies: Police Raid Uber’s Hong Kong Office, at economicpolicyjournal.com.  Car Wars! Return of the Jitneys continues.  At this point, a rational government would realize they can’t put the genie back in the bottle.  Protecting special interests always trumps rationality but it can’t defeat the basic laws of economics.

Going Breadless in Venezuela, at economicpolicyjournal.com.  Socialism and price controls rear their ugly head again as bread shortages are the new norm in Venezuela.  Weren’t there food riots last week?  Don’t they have a toilet paper shortage as well?  Hey, let them eat cake!  Sorry, that’s reserved for the rulers.

Minimum Wage Effect?, at Carpe Diem Blog.  January to June job losses for Seattle area restaurants reaches 1300.  While there are many reasons for declining employment, artificially raising the price of labor means you will have less of it.  Businesses must make adjustments to increased costs.  My guess is that one unintended consequence will be less tipping for servers.

China’s Currency Policy: Devastating Manipulation or a Form of Generous Foreign Aid to Americans?, at Carpe Diem Blog.  This is a very different take on China’s recent efforts to devalue their currency.  Government intervention in currency whether it is printing counterfeit money, zero point interest rates, fractional reserve banking, or devaluing will always have unforeseen and negative consequences.  As for devaluing currency, how do you jump off a cliff halfway?

The Disturbing Messages In Police Recruiting Videos, at The Washington Post.  You don’t have to watch all the videos to get the point.  Why would you stress violent confrontation in your recruiting videos?  Even the Marine Corps doesn’t do that and they have the best military recruiting videos bar none.  If it is part of the recruiting tactics then it is likely the emphasis of their training.  When the only tool you have is a hammer, everything looks like a nail.  Make sure you check out the last recruiting video by the Decatur Alabama police.  Quite the difference!

Serfdom USA!, at economicpolicyjournal.com.  Let’s end the week with some laughs.  This is for all of the true Austrian Economics Addicts out there.

 

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Must Reads For The Week 11/23/13

November 23, 2013
The pen is mightier than the sword...

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

This first article and video is a must!

The War Against Achievement, by Thomas Sowell, at jewishworldreview.com. When individuals achieve at a higher level than you, are you envious and try to tear them down, or do you use their achievement as motivation of what is possible if you work hard? Watch this video about Richie Parker, the young man Thomas Sowell is talking about in his article.

Mother Charged $10 dollars After Lunch Of Pot Roast, Potatoes, Carrots, And An Orange Deemed “Unbalanced” By Daycare, by Liz Klimas, at theblaze.com. If you want to look where the road we’re traveling leads, look at countries who are farther down this road. Oh yeah I forgot, “this can’t happen here”.

The Obamacare Time Bomb, by Marc A. Thiessen, at economicpolicyjournal.com. In the words of the great F. A. Hayek, “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”

Census “Faked” 2012 Elections Jobs Report, by John Crudele, at nypost.com. Most of us knew the number was fudged when it came out.

I Can’t Call You Sugar, Cause Sugar Never Was So Sweet, by Angus, at mungowitzend.blogspot.com. This is what we mean when we talk about crony capitalism. In a free market, unhampered by Government regulations, businesses will succeed or fail based on their ability to sell a good or service at a price that covers the cost of production.

Nancy Pelosi Doesn’t Think She Said Anything Wrong About Keeping Health Plan, by Robert P. Murphy, at consultingbyrpm.com. My apology for wanting you to watch a video of Nancy Pelosi. I don’t know what is more amazing, watching Nancy try to spin her way out of her own pile of #%&*, or watching David Gregory try to act like a journalist asking tough questions.

The Treasury Federal Reserve Naked Tango, by Lawrence Kotlikoff, at economicpolicyjournal.com. Counterfeiting and money laundering are legal activities for Government, but not for us. Counterfeiting is theft whether it’s legal of illegal.

School Heaves Obama Lunch Menu, at ohiolibertycoalition.org. Students force Obama’s school lunch program to face economic reality. Read this post from a year ago titled, Healthy, Hunger-Free Kids Act, Doesn’t Work As Planners Planned, at austrianaddict.com.

California Rejects Proposed One-Year Plan Extension, at zerohedge.com. The pesky free market won’t cooperate with the central planner and chief’s plans concerning Obamacare.

Guest Post: The 5 Economic “Big Lies” The Government Is Telling You, by Micheal Snyder, guest post on zerohedge.com. This post is so

Thomas Sowell’s Random Thoughts.

July 29, 2013

Thomas Sowell gives us some Random Thoughts (read here) from wise thinkers. Here are a few examples.

“We shall not grow wiser before we learn that much that we have done was very foolish.” (F.A. Hayek)

“There is no safety for honest men, but by believing all possible evil of evil men, and by acting with promptitude, decision, and steadiness on that belief.” (Edmund Burke)

“The study of history is a powerful antidote to contemporary arrogance. It is humbling to discover how many of our glib assumptions, which seem to us novel and plausible, have been tested before, not once but many times and in innumerable guises; and discovered to be, at great human cost, wholly false.” (Paul Johnson)

As a bonus, here are some short videos of Thomas Sowell, from commonsensecapitalism.com.

Equality As A False Norm.

We Can’t All Be Made The Same.

Thomas Sowell Discusses His Ideology.

The Tollkeepers On The Road To Serfdom, by D. W. MacKenzie

June 21, 2013
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The Road to Serfdom, by Hayek.(Photo credit: UniversidadFrancisco Marroquin)

In this article by D.W. MacKenzie titled,The Tollkeepers On The Road To Serfdom, at mises.org, he explains that when bureaucracies grow, “democracies could not be relied upon to hold it in check”. He calls the IRS the toll keepers on the road to serfdom, and we are  the tollpayers on this same road.This is an outstanding article and a must read. Here are some excerpts from it.

“Elected Federal officials can be voted out of office. But the entrenched army of empowered, unelected Federal bureaucrats remains to wield its power, and the Internal Revenue Service bureaucrats are some of the worst.”

“Politicians see the IRS and its tax code as a means of fixing perceived political problems…. Yet, regardless of the legislative agenda, it is largely unelected bureaucrats who decide where tax money goes.

“The potential for bureaucratic abuse is pervasive. The worst rise to the top of bureaucracies in part because the people who want power most are, as Hayek put it, single-minded idealists. Single-minded idealists are intolerant, by definition, believing that their plans for society are objectively superior to any competing plans. Those who have a comparative advantage at acquiring and wielding power are the most ruthless and insensitive people in society.”

“Hayek pointed out that people complete the path from citizenship to servitude only after a psychological (or sociological) change occurs. Today’s change is from a free people believing in the primacy of individuals to make their own choices to dependence and acceptance of government as the entitled class.”

“Once people accept bureaucrats as authorities, as persons who should direct the actions of others, and reject dissenting views as illegitimate or illegal, they have taken up the mantle of serf.”

“Obama most likely did not directly order Lois Lerner or Holly Paz to “punish enemies” in the Tea Party movement, but Tea Party members were singled out. Since Tea Party groups oppose the current Federal tax/spending system, the single-minded idealists at the IRS thought these targeting actions to be justifiable.”

I have said that the President is just the face of the problem. The expansion of Government power is the problem. The bureaucracy has an inertia of its own, no matter who is elected. Bureaucrats are self-interested individuals like the rest of us, which is why they will try to use their power to undermine any person, or group of people, who talk like they want to cut the size of Government. Politicians and bureaucrats both want power, the difference is politicians can at least get voted out if they abuse their power. A bureaucrat is immune from losing his position, and may even get a promotion for abusing his power.

Related article,  America’s Road To Serfdom? by Richard Ebeling, at mises.org.

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

Milton Freidman, Moving Toward Serfdom.

January 11, 2013

Not much more can be added to what is said in this video. This video I’m sure was made in the 80’s, how much farther down the road do you think we are today.

Here is an excerpt from the video, “We are getting what the public at large is asking for, and the public is asking for it , I believe, because they do not understand where it’s going to lead them, because they are misinformed and they are being led that way.”

We have to get people to understand that government regulation takes away individual freedom no matter how insignificant we may think a regulation is.

Read previous post, “We’re All Born In the Middle Of The Story.”

For more analysis read, “America’s Road to Serfdom?“, by Richard Ebeling at Mises.org.

Milton Friedman on Market Failure vs. Government Failure. Which Has a Higher Cost?

December 3, 2012

The highest cost is in our loss of individual freedom, which happens incrementally with each encroachment into the free market by government.

Francisco Capella, ” Markets are never perfect because human beings are limited in their abilities; proposing state fixes to alleged problems that individuals cannot solve freely seems to forget that the state is also made up of humans; and perhaps not the best ones. Bureaucrats are not disinterested angels, and the worst might get to the top.”

Milton Freidman is not a favorite of many Austrian thinkers mainly because of his ideas on monetary policy, and I agree on that point. Personally, I think he (more…)

Keynes vs. Hayek Round II, The Fight Of The Century.

November 19, 2012

Mises states, “The issue is always the same: the Government or the market, there is no third solution.” This has been the fight of the century, and will be the fight of the next century. Top down central planning by the state vs, bottom up voluntary cooperation in the market.

Central planning by the State sounds so logical and reasonable if analysed on the surface. Spending creates demand and people will produce to supply this demand. That’s simple and easy to understand on the surface, but a deeper analysis reveals that the structure of production is a very complex process. This complex structure of production was created by the spontaneous ordering processes in the free market not (more…)