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Socialist Supremacy’s Dark History of Culling the Race

26 Wednesday Feb 2020

Posted by pnoetx in racism, Socialism

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Adolph Hitler, Che Guevara, Class Struggle, Disparate impact, FEE, Fidel Castro, Foundation for Economic Education, Friedrich Engels, Joseph Stalin, Karl Marx, Liberalism Unrelinquished, Marion Tupy, National Socialism, racism, Sidney and Beatrice Webb, Socialism

Can you think of a social philosophy steeped in many years of blame-making and hatred for “others”, including massive persecution, more than a passing flirtation with racism, and genocide. Why, that would be socialism! Marion Tupy’s 2017 article on racism and socialism at the Foundation for Economic Education (FEE) blog is a good reminder, just in case you know anyone having a romantic fascination with collectivist ideology. I know too many! And if they subscribe to the notion that socialism eschews racism, they are sadly mistaken. In fact, to put it kindly, socialists ultimately eschew anyone standing in their way. Here are a few excerpts from Tupy’s article:

“… Sidney and Beatrice Webb, who were both socialists and eugenicists, bemoaned the falling birthrates among so-called higher races in the New Statesman in 1913. They warned that ‘a new social order [would be] developed by one or other of the colored races, the Negro, the Kaffir or the Chinese’.

Che Guevara, the Argentine revolutionary and friend of the Cuban dictator Fidel Castro, offered his views on race in his 1952 memoir The Motorcycle Diaries, writing, ‘The Negro is indolent and lazy and spends his money on frivolities, whereas the European is forward-looking, organized and intelligent.’ …

In the New York Tribune in 1853, Karl Marx came close to advocating genocide, writing, “The classes and the races, too weak to master the new conditions of life, must give way.” His friend and collaborator, Engels, was more explicit.

In 1849, Engels published an article in Marx’s newspaper, Neue Rheinische Zeitung. In it, Engels condemned the rural populations of the Austrian Empire for failing enthusiastically to partake in the revolution of 1848. …

‘The Austrian Germans and Magyars will be set free and wreak a bloody revenge on the Slav barbarians,’ he continued. ‘The next world war will result in the disappearance from the face of the earth not only of reactionary classes and dynasties, but also of entire reactionary peoples. And that, too, is a step forward.’

Here Engels clearly foreshadows the genocides of the 20th-century totalitarianism in general and the Soviet regime in particular. In fact, Joseph Stalin loved Engels’ article and commended it to his followers in The Foundations of Leninism in 1924. He then proceeded to suppress Soviet ethnic minorities, including the Jews, Crimean Tatars, and Ukrainians.”

As Tupy notes, socialists are given to dressing-up their repressions as “class struggles”, as opposed to racism when it suits them, ideological eliminationism, and genocidal paroxysm. And these fits have often had pronounced “disparate impacts” on ethnic, racial and national minorities. In this sense, Hitler, the national socialist was no exception. Again, from Tupy:

“Hitler’s hatred of the Jews, for example, was partly rooted in his belief that capitalism and international Jewry were two sides of the same coin. As he once famously asked, ‘How, as a socialist, can you not be an anti-Semite?'”

Socialism is not an ideology of “kindness”. As a practical matter, it is an ideology of coercion, control, and extreme inequality of outcomes. It is antithetical to the ideal of personal liberty, not “liberal” in any real sense of the word. It should come as no surprise that the practitioners of socialism have indulged in virulent intolerance and racism. And it’s not simply a matter of “my way or the highway”. It’s often my way or death for those who don’t fall in line, and a highway to hell on earth for those who do.

Ideology and the Public School Monopoly

15 Tuesday Oct 2019

Posted by pnoetx in Education

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Claremont Institute, Common Core, Cory Koedel, Darleen Click, Deep State, FEE, Foundation for Economic Education, Horace Mann, J.D. Tuccille, James G. Martin Center, Jay Schalin, John Hinderaker, Justin Spears, Michael Crichton, Mike Margeson, Multiculturalism, Public School Monopoly, Rob Dreher, Ryan P. Williams, School Choice, SJWs, Social Justice, TFP Student Action, Victory Girls, White Privilege, Woke Teachers, Zero-Sum Society

I toured our local public high school not long ago after some renovations. It’s my old school and my kids attended there as well, though it’s been largely stripped of its old character. Our sweet tour guide, when asked about school security and whether any staff are armed, said no, and then proudly informed us that the temperament of the school was “pretty progressive”, and that sort of thing would not go over well. Later, as I stepped into the new library, I happened to notice a table right up-front intended to showcase several books. The first title I laid eyes on was “Social Justice”, a topic emphasizing all manner of grievances, current and historical, the identification of culpable parties (and their unworthy descendants), and presumed correctives. The latter include reparations, redistribution, control of speech, criminalization, and often shaming. At best, these correctives deliver palliatives to the aggrieved that must be forcibly extracted by the state from others, with little consideration for the predictably disastrous second-order effects they engender.

The prominent display of the social justice book and our tour guide’s attitude regarding security were unsurprising manifestations of the educational emphasis our kids get today: the public schools have become indoctrination camps. Of course, a good class in American history will leave no doubt about the injustices that have occurred in our nation over 250 years. There were many individual victims and many groups were victimized. We could say the same about a good class in European history, or the history of events in any region of the world. However, the social justice doctrine being peddled to our children today assigns blame for victimhood to anyone deemed not to be a victim, as well as the growth and very success of western civilization, including capitalism, this despite the unprecedented comforts available today across the socioeconomic spectrum. It’s as if the SJWs wish to convince our children that all economic gains are of the zero-sum variety.

The politicization of the curriculum in our schools is an extremely dangerous phenomenon. Many schools are banning literature, distorting history, subverting science in favor of politicized orthodoxy, and teaching “social justice math“, which I’m sure is heavy on zero-sum word problems. And how about this “Run from the cop” worksheet given to first graders in a Pittsburgh school! Federal and state education authorities are taking an active hand in much of this. For example, a new ethnic studies curriculum for California high schools proposed by the state Department of Education takes a notably anti-Israel perspective. At the federal level, there is the Common Core initiative (and see here) which, in addition to educational inefficacy, is a source of many of the same concerns cited above. President Obama’s school discipline policy, heavy in its emphasis on “disparate impact”, was perhaps even more disastrous (and see here).

Social studies textbooks today are increasingly written by leftist authors who distort U.S. history, present anti-science viewpoints on environmental topics, and promote the divisive tenets of multiculturalism. The U.S. history covered in this prominent textbook is subject to a variety of left-wing biases, but it is not unique in that regard. And it’s not only a matter of bias in favor of collectivist philosophy and leftist interpretations of historical events. For example, it’s way over the top to teach public school children that Christians are bigots.

But God bless the teachers, many of whom are indeed wonderful people, and many of whom are very good at what they do (my daughter being a prime example!). There is little doubt, however, that leftism dominates the faculty in most public schools. John Hinderaker writes of the political activism practiced by the faculty at a high school in Edina, Minnesota, where lessons about “white privilege” are part of the curriculum even in the feeder schools. It’s a travesty that many of our nation’s public school teachers are products of university schools of education with extremely low academic standards relative to other academic divisions within those universities. And these schools of education have been thoroughly politicized. Needless to say, a good many of their graduates are easily cowed by the typical “feel-good”, free-lunch, social justice arguments made by the Left.

In a sense, these civil servants are a local counterpart to the army of federal bureaucrats sometimes known as the “deep state”. They are funded by taxpayers and are often represented by powerful unions. Under-performing teachers are difficult to dismiss, and they are able to exercise great discretion in the messages they deliver to students. As Darleen Click writes, “The ‘woke’ want your children“.

The leftist thrust of public education today descends from a long evolution shaped by “progressive” education reforms, and most reforms receiving attention within today’s education establishment fail to address the single biggest problem: the public school monopoly. That inattention is reinforced by attempts to maintain ideological purity among participants in the debate over school reform. Social studies teachers Mike Margeson and Justin Spears, writing for the Foundation for Economic Education on the motives for establishing public education, say the following about historical reforms:

“The objective was to nationalize the youth in a particular mold. … From Luther to Fichte, the idea to use the coercive power of the state to force kids into schools and indoctrinate them was clear. Horace Mann became instrumental in importing this system and helping it spread throughout the United States.”

Breaking the public education monopoly is imperative to improving both the quality and cost of education. That means choice, in all it’s liberating glory. J.D. Tuccille has a great take on this issue: choice is the only way we can assure that our children are taught from a perspective that parents most prefer. Many parents know that they must take an active part in educating their children. That includes their role in selecting the school they believe will be best for their kids, as well as ongoing scrutiny of the school’s performance. A simple by-product of choice is that schools and their faculties might be more circumspect about shading their instruction with their own political agendas.

 

 

Amazon Fire Fraud

03 Tuesday Sep 2019

Posted by pnoetx in Forest Fires, Global Greening

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Al Gore, Alexander Hammond, Amazon Basin, Amazon Fires, Brazil, Climate Change, Coyote Blog, Deforestation, FEE, Global Fire Emissions Database, Jair Bolsonaro, Leonardo DiCaprio, Michael Shellenberger, P.T. Barnum, Reforestation, Sugar Cane, U.S. Ethanol Mandates, Warren Meyer

Leftist activists recently pounced on another opportunity to mischaracterize events, this time in the Amazon Basin, where recent fires were held to be unprecedented. The fires were also characterized as evidence of a massive conspiracy between capitalists and the new government of President Jair Bolsonaro to open the rain forest to commercial exploitation. Warren Meyer squares away the facts at this Coyote Blog post, which is where I found the chart above. Forest clearing in Brazil has been much lower over the past 10 years than during period 1988-2008. It stepped-up somewhat during the first half of 2019, but it still ran at a rate well below 2008. A key reason for the increase is fascinating, but I’ll merely tease that for now.

As for the fires, Meyer provides the following quote about this year’s fires from NASA in a statement accompanying a satellite photo:

“As of August 16, 2019, satellite observations indicated that total fire activity in the Amazon basin was slightly below average in comparison to the past 15 years. Though activity has been above average in Amazonas and to a lesser extent in Rondônia, it has been below average in Mato Grosso and Pará, according to the Global Fire Emissions Database.“

So what was the cause of all the alarm? Meyer points to a August 22 story in the Washington Post, though WaPo might not have been the first. The article was either poorly researched and “fact checked” or it was a deliberate attempt to raise alarm. The sloppy story was picked up elsewhere, of course, and distorted memes spread on social media condemning the Brazilian government and capitalism generally.

The burning that is taking place has been started by farmers preparing land for crops, a process that occurs every year. Meyer quotes the New York Times on this point, which noted that very little of the burning was taking place in old-growth forests.

What’s really ironic and crazy about all this is that U.S. environmental policy is responsible for some of the burning that is taking place in the Amazon. Meyer notes that U.S. ethanol mandates have subsidized a years-long trend of increased sugar cane production in the Amazon Basin. Of course, burning is a regular part of the normal sugar cane harvest. Moreover, that production has contributed to land clearance, offsetting some of the forces that have brought the rate of deforestation in Brazil down overall.

The whole episode dovetails with the ongoing narrative that fires are burning out of control across the globe due to climate change. We heard similar propaganda last year after several large fires in California. Michael Shellenberger does his best to set the record straight, demonstrating that the annual land area burned worldwide has declined by 25% since 2003. He contrasts that record with the hopelessly errant reporting by major media organizations.

As P.T. Barnum once said, a sucker’s born every minute. He might as well have been talking about the armies of well-meaning but gullible greenies who fall for every scare story told by the likes of Al Gore and Leonardo DiCaprio. And scare stories are exactly what these tales of a global conflagration amount to. Meanwhile, as Alexander Hammond explains, global reforestation has taken hold. In what is apparently a paradox to some, this is largely the result of economic growth. Hammond discusses the logical connections between economic development and environmental goods, including reforestation and biodiversity. The bottom line is that the best policies for reforestation are not those imposing obstacles to growth, as the environmental Left would have it. Rather, it is policies that promote development and income growth, which are generally more compatible with individual liberty, that will encourage growth in the world’s forests.

Socialism Is Concentrated Power

10 Thursday Mar 2016

Posted by pnoetx in Big Government, Capitalism, Markets

≈ 1 Comment

Tags

Charles Tiebout, Chelsea German, Concentrated Power, crony capitalism, Don Boudreaux, FEE, Foundation for Economic Education, John D. Rockefeller, Marian Tupy, monopoly, Police Power, Privilege, rent seeking, Richard Rahn, State Control, Tiebout Hypothesis, Vote With Their Feet

Power

Nobody likes to defend concentrated power, yet socialists earnestly crave power concentrated in the state. And state power is absolute power. They must imagine that those wielding state power, now and always, will be the sort of nice, benevolent folks they imagine themselves to be. Well, if only more power can be concentrated in the state, it will be alright. Good luck with that! Once granted, watch out.

While this sort of magical thinking might seem naive, another paradox of leftist thinking is even more befuddling: the never-yielding distrust of capitalism and private initiative, a system under which power is largely dispersed. The attitude is more than a little misanthropic. It’s as if socialists expect us to believe that someone forces us to engage in transactions with private sellers, transactions that are always unfavorable in some way. But every transaction in a private economy is voluntary, dependent only on how both parties assess benefits relative to costs. Anyone can make a bad deal, of course, and you might get ripped off by an unscrupulous buyer or seller from time-to-time. But you are free to perform due diligence. You are free to assess risks.

The left goes so far as to blame capitalism for poverty, demonstrating a complete disconnect with reality. For a better perspective on the economic miracles made possible by capitalism, I  recommend a few timely pieces of reading: economist Richard Rahn makes note of the incredible bounty of products and technology brought to us by capitalism. This includes transformative breakthroughs in almost every area of life: communication, computing, transportation, refrigeration, safety, food, medicine and on and on:

“Almost all of the great innovations came from those in the private sector who created them out of the desire for more wealth or just intellectual curiosity. The socialist countries have produced almost nothing — except for bread lines, coercive and destructive taxation and regulation, and gulags. Yet politicians all over the world proudly proclaim themselves to be socialists and attack the capitalist wealth creators and innovators — as if the real world had never existed.“

At the Foundation for Economic Education (FEE), Chelsea German and Marian L. Tupy offer ample evidence of capitalism’s successes as they shred an absurd opinion piece in Forbes magazine claiming that  capitalism “will starve humanity“:

“Throughout most of human history, almost everyone lived in extreme poverty. Only in the last two centuries has wealth dramatically increased. Early adopters of capitalism, such as the United States, have seen their average incomes skyrocket.“

German and Tupy have a more detailed post here with statistics showing dramatic increases in the standard of living enjoyed by poor households in the U.S., increases for which capitalism is largely responsible.

Last month, Don Boudreaux reflected on the well being of average Americans today compared to an individual at the extreme high end of the wealth distribution 100 years ago. Boudreaux catalogues the many ways in which John D. Rockefeller’s comforts were drastically inferior to those available today. He concludes that trading places with Rockefeller would be a questionable deal:

“Honestly, I wouldn’t be remotely tempted to quit the 2016 me so that I could be a one-billion-dollar-richer me in 1916. This fact means that, by 1916 standards, I am today more than a billionaire. It means, at least given my preferences, I am today materially richer than was John D. Rockefeller in 1916. And if, as I think is true, my preferences here are not unusual, then nearly every middle-class American today is richer than was America’s richest man a mere 100 years ago.“

I maintain that even when power is concentrated in large private companies, the situation is far preferable to concentrated power in government. First, private companies do not have the police power necessary for absolute government authority. They cannot force you to do anything. Second, private companies do not simply shuffle resources and up-charge, as the left might have you believe; they innovate and create value as an inducement to trade, a concept that is rare in state-controlled activities. When any form of competition is present, private companies discipline each other, encouraging better quality and restraint on the prices charged for their wares. Even trading with a monopolist confers gains from trade, despite its drawbacks relative to trade in competitive markets.

Of course, government is generally not confronted with competition, unless it’s prompted by citizens who “vote with their feet”, as described by Charles Tiebout. That kind of responsiveness argues for decentralized government, however. Government services are typically monopolized, but the “terms of trade” are often worse than a monopolist would offer. It’s difficult to refuse a government service or your obligation to pay, no matter how much you abhor it, and quality usually suffers due to the extreme lack of accountability to citizen-consumers.

Capitalism gets a bad rap when private businesses engage in rent-seeking. That behavior is characterized by attempts to influence government policy for the business’ own benefit, promoting subsidies, other public spending or tax policies that go to the bottom line, and regulatory actions that disproportionally harm competitors. Those efforts put the crony in crony capitalism. But note that rent seeking is not an inherent feature of capitalism. It is enabled by the existence of activist government, its control over resources and its police power. What this means is that cronyism is fostered by power concentrated within the halls of government. In other words, private power becomes more concentrated and more impervious to competitive forces when it is favored by government. That is pure privilege.

If you dislike concentrated power, then vote for small government!

 

Dismal Implications of Aggregate Analysis

12 Thursday Feb 2015

Posted by pnoetx in Macroeconomics

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Aggregate demand, Aggregation, Collectivism, FEE, Gary Galles, I Pencil, incentives, Interventionism, Keynesians, Leonard Read, Macroeconomics, Mises Institute, Scarcity, Stabilization policy, statism

keynesian cartoon

Economic aggregation is basic to traditional macroeconomic analysis, but it distorts and drastically oversimplifies the enormous number of transactions and the vast network of decision-makers that comprise almost any economic system, especially a market economy. There are some basic problems with aggregating across individuals and markets, but these are typically glossed over in macro-policy analyses. Instead, the focus is on a few key outcomes, such as aggregate spending by sector and saving, masquerading as collective “decisions” amenable to behavioral analysis. In this kind of framework, the government sector occupies an equal place to consumers and business investors. It is usually depicted as a great exogenous demander of goods and services, capable of “stabilizing” demand in the event of underconsumption, for example.

An insightful post by Gary Galles at the Mises blog drives home the inherent distortion involved in the analysis of macro-aggregates: “How Economic Aggregation Hides the Problems of Interventionism“.  The problems start with a nearly complete misapplication (if not neglect) of the basic problem of scarcity, as if that problem can be solved via manipulation of aggregate constructs. Galles offers a simple example of the macro distortion of “net taxes,” or aggregate taxes minus government transfer payments. Both taxes and transfers are complicated subjects, and both are subject to negative incentive effects. The net-tax aggregation is of little use, even if some rudimentary supply function is given treatment in a macro model.

By its very nature, aggregate government activity is distorted by the prices at which it is valued relative to market activity, and intervention in markets by government makes market aggregates less useful:

“For example, if government gives a person a 40 percent subsidy for purchasing a good, all we know is that the value of each unit to the buyer exceeded 60 percent of its price. There is no implication that such purchases are worth what was paid, including the subsidy. And in areas in which government produces or utilizes goods directly, as with defense spending, we know almost nothing about what it is worth. Citizens cannot refuse to finance whatever the government chooses to buy, on pain of prison, so no willing transaction reveals what such spending is worth to citizens. And centuries of evidence suggest government provided goods and services are often worth far less than they cost. But such spending is simply counted as worth what it cost in GDP accounts.”

Galles article emphasizes the unintended (and often unpleasant) consequences that are bound to flow from policies rationalized on the basis of aggregate macro variables, since they can tell us little about the impact on individual incentives and repercussions on the ability of markets to solve the problem of scarcity. In fact, the typical Keynesian macro perspective lends itself to slow and steady achievement of the goals of collectivists, but the process is destined to be perverse: more G stabilizes weak aggregate demand, or so the story goes, but as G expands, government entwines itself into the fabric of the economy, and it seldom shrinks. Taxes creep up, dependencies arise, regulation grows and non-productive cronies capture resources bestowed by their public sector enablers. At the same time, the politics of taxes almost ensures tat they grow more slowly that government spending, so that the government must borrow. This absorbs saving that would otherwise be available for productive, private investment. As investment languishes, so does growth in productivity. When economic malaise ultimately appears, we hear the same policy refrain: more G to stabilize aggregate demand! All the way down! Perhaps unemployed dependents are simpler to aggregate.

Aggregation masks the most basic issues in economics. A classic lesson in the complexity of creating even a simple product is told in “I, Pencil“, by Leonard Read. In it, he allows the pencil itself to tell the story of it’s own creation:

“Here is an astounding fact: Neither the worker in the oil field nor the chemist nor the digger of graphite or clay nor any who mans or makes the ships or trains or trucks nor the one who runs the machine that does the knurling on my bit of metal nor the president of the company performs his singular task because he wants me. Each one wants me less, perhaps, than does a child in the first grade. Indeed, there are some among this vast multitude who never saw a pencil nor would they know how to use one. Their motivation is other than me. Perhaps it is something like this: Each of these millions sees that he can thus exchange his tiny know-how for the goods and services he needs or wants. I may or may not be among these items.

There is a fact still more astounding: The absence of a master mind, of anyone dictating or forcibly directing these countless actions which bring me into being. No trace of such a person can be found. Instead, we find the Invisible Hand at work. This is the mystery to which I earlier referred. “

How many individual decisions and transactions are involved, throughout all intermediate and final stages of the process? How many calculations of marginal value and marginal cost are involved, and ultimately how many prices? While the consumer may think only of the simple pencil, it would be a mistake for a would-be “pencil czar” to confine their planning to final pencil transactions. But macro-analysts and policymakers go a giant leap further: they lump all final transactions together, from pencils to pineapples (to say nothing of the heroics involved in calculating “real values”, an issue mentioned by Galles). They essentially ignore the much larger set of decisions and activities that are precedents to the final transactions they aggregate.

“Credit” On Nanny’s Terms

19 Sunday Oct 2014

Posted by pnoetx in Uncategorized

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CFPB, Credit, Dodd-Frank, Elizabeth Warren, FEE, Layaway, regulation, The Freeman

dentures_on_lay_away

Senator Elizabeth Warren would have you believe that buying on layaway is a wonderful deal. In “Layaway: Live After Death” in The Freeman, the authors discuss the horrible economics of layaway, Warren’s predilection for the practice, and the reason why it has risen from the dead.

First, the economics: these programs allow consumers to defer possession but “keep the dream alive” for a limited time, for a small down payment, which might be forfeited if the balance isn’t paid by the deadline. What a deal!

“In a sense, customers do not actually need Walmart to offer a layaway program; they can simply start saving the money themselves. Layaway essentially offers Walmart an interest-free loan. Put another way, while credit cards allow consumers to enjoy their goods today and pay later, layaway reverses this transaction by allowing Walmart to enjoy the customer’s money today and pay back the customer in the form of goods later. Layaway thus represents a shift in credit away from consumers and toward corporations. So much for consumer protection!”

But will supplies last? Usually they do. What if the availability of a “hot new item” is limited? That’s when the availability of credit can be extremely valuable. It’s up to the consumer as to whether the cost of buying the product on credit is worthwhile, but immediate possession is certainly of value. Ah, but statists like Warren want to intrude, er… help, so Congress passed the Dodd-Frank Act. It established the Consumer Financial Protection Bureau’s (CFPB) to regulate the financial industry, and in so doing, the agency has succeeded in limiting the availability of many forms of credit, especially to potential borrowers who pose high risks. The increasing availability of layaway programs is an attempt to fill the breach, though their similarity to real credit is slight. Or perhaps “slight of hand” is a better description.

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