Posts Tagged ‘political favor’

Evil will eventually defeat itself.

Wednesday, June 14th, 2017

Dear Friends,

It seems to me, evil always eventually defeats itself, sadly, never before the cost in human suffering becomes so great… even zealots have second thoughts. This is because evil is repulsive and good is attractive. The advantage evil has is it’s absolute lack of morality, there is not a bridge evil will not cross, then burn to the ground behind itself. Initially, evil always couches itself as good. It claims to represent the downtrodden, the disenfranchised and the poor. Those people are, of course, dupes, mere cannon fodder for evil. Once evil believes it’s position is unassailable the mask comes off and we see just what it is and who they are. Until that time, evil will use every trick in the book to hide, misdirect and accuse whenever it’s true nature is shown. Today we are at the point where the mask is about to come off.

The NAZI party, the German progressive party, came to power “representing” the Volk, the forgotten German people. Initially the NAZI party stood for gay rights, a minimum standard of living for all, nationalized health care, privately owned means of production that was publicly controlled for the good of the volk, a reestablishment of German pride and a future where the German people would never have to suffer through anything like Wiemar again. The head of the Brown shirts was even a gay man. Once Hitler felt he had amassed sufficient power, he ordered the slaughter of the Brown shirts, and their leader. Once that was done he ordered that all the gays who had supported him, sent to concentration camps, forcing gay men to wear upside down pink triangles denoting their homosexuality.

The same paradigm works every time. Evil people know their message of slaughter, suffering and economic catastrophe just will not sell. So they pretend to care more and by extension, anyone who doesn’t agree one hundred percent, clearly, is against progress. Evil normalizes violence against those that stand in the way. The NAZI party normalized violence against the Jews, Gypsies and Slavs. Silencing critics is a sure way to insure their true motives will not be known until it is too late. Even a cursory knowledge of the history of the NAZI party, shows all this to be true, and anyone with that cursory knowledge cannot help but see those same forces at work in the world today.

You can see evil at work in the world if only you open your eyes to the fact it never goes away. Evil is never defeated it only goes underground. Once the conditions are ripe for it’s return, evil rises from the ground, like so many locusts, hatching from pupae to wreak havoc in the world. The machinations of evil are always the same, silence critics by force, initiate violence against their political opponents, normalize violence against politically disfavored segments of the population, and hiding it’s real intentions with censorship. One only need look at the actions of our leaders to see all this happening today.

From the murder of Seth Rich for disclosing DNC emails to the normalization of violence against conservatives, evil is at work in the world today. One of the biggest advantages evil has, is not their willingness to do harm, immorality, ability to lie convincingly or the charisma they exude in their snazzy black uniforms, pajamas, hoods or robes, no, the true power of evil is that people are happy to believe their glittering lies, and turn their heads from the ugly truth. We ourselves are evil’s best friend. It is because of our capacity to embrace a glittering lie that fills the army of evil with people willing to lay down their lives for the lowering of Mankind. How many NAZIs, Jihadists, Klu Klux Clan members, Marxists, Ancient Carthaginians, Philistines, Romans, and other willing dupes have laid down their lives so evil men can have absolute power? The number is uncountable.

The real point here is not that evil is a thing of the past, or of the modern age, but evil is a thing of all time. The future will have to deal with a resurgence of evil as well. Eventually, after millions perhaps billions of deaths, untold human suffering, the destruction of economic prosperity and carnage to make Lucifer blush, the evil rising today will eventually be crushed underfoot. Once that happens, evil will go underground again… until the conditions are ripe for it’s return. We as a human race must learn from our past mistakes. Today we struggle against great evil, in our own governments, institutions, corporations and even religions. Evil is an equal opportunity perverter. It fills anyone, institution or system with putrescence, rotting even the most honorable from the inside out. Yes, we must fight against today’s evil with all our might, to save our children from the agonizing suffering in their future, but future generations will face the same evils. Perhaps we can pass down the means to understand the machinations of evil, so that next time, future generations will be able to snuff it out… before future Seth Rich’s are murdered for showing evil for what it is.

Sincerely,

John Pepin

Distribution of the Goods of Society

Wednesday, March 1st, 2017

Dear Friends,

It seems to me, society functions best when the fruits of the economy are distributed by merit, as in capitalism, rather than force, as in anarchy and corruptocracy, or political favor, as in socialism, communism, feudalism, cronyism and corporatism. While the distribution of the goods of society have been a hot topic for well over a century, the functionality and utility of the economy under each system isn’t actually debated. Those who are connivers prefer arbitrary rule, they fall in the camp of the political distribution of the goods of society, while those with a propensity for violence would rather force be the measure of who gets what, and while each has his or her own natural tendencies, the best for everyone is free enterprise, or in other words… Meritocracy.

Take the example of three mansions. The first is owned by the CEO of a fortune 500 company, the second is owned by a US Senator, the third by the founder of a company. Which mansion is justly got? The politician realized the fortune that paid for his mansion by selling the interests of the nation to special interest and delivering on those sales with regulations. Perhaps the CEO, who did nothing of any notoriety, other than have the good fortune to be born into the clique that sends it’s youth to Harvard and Yale, to be groomed for that position. Certainly not the founder of a company, who by founding a company… created jobs for people, delivered some value to the lives of people and created wealth not only for him or herself but for society as a whole, and did all that by thinking of an idea, taking a chance to make it happen. In the case of the senator, the mansion was won by political favor, the second was also political favor but the third, the founder of a company, was won by improving the lot of Man.

Many arguments have been made as to the superiority of the planned economy… by those who seek to plan the economy. They all expect us to think they are angels, or saints who are above the common lot of Man, calculating, self interested, untrustworthy, undependable and backstabbing. They, who are the angels, want to plan the economy for “our” good, they will subsist on the scraps, like Kim Un. His people pick their own feces for corn while he scrapes by on caviar and champagne. While there are no examples of a planned economy that created wealth, rather than destroyed it, devout socialists and progressives will lament… real socialism has never been tried! One thing you will not hear a progressive avow, is that the economy be planned by an AI, unless they are the ones to program that AI. What good is a planned an economy if someone else is the one planning it?

Societal cohesion is negatively effected when the goods of society are distributed by either force or politics. Everyone of us has a little hypocrisy detector in our brains. There was a recent study done on dogs to gauge their morality, and it was found in that study that dogs have a similar sense of morality as human beings. Quite interesting that only dogs and some monkeys tested so close to human reactions when presented with a moral question. In the case of the dogs, one human participant was stingy giving out treats to most but favored some dogs, the other human participants gave treats equally to all the dogs. The dogs then reacted, supposedly as a human would, by preferring the human participant who was more fair. We know in our hearts when someone’s wealth is ill got. Even as we are told to despise the founder of a company for her wealth we are told to ignore the riches of the politician, lawyer and the corporate executive.

The productivity of an economy is directly related to how close to meritocracy an economy is. When talking about a macro economic effect it is the small things that count. Small actions done by many people equate to large changes in macro economic outcomes. People are naturally at rest. It takes a force to move and inanimate object, as it does a human being, that force to move a person is an incentive. Where there is an incentive to come up with a better way, invent a new product, create value, help someone in their daily routine or any other way of improving the lot of Man, there will be a commensurate reward, people will act. Where there is a disincentive, the idea will be stolen, the bureaucracy will crush you for even trying, only certain people are allowed to do that, etc… the small things people do in our daily lives will, in the aggregate, change the macro growth of an economy.

In a more productive economy one’s piece of the pie need not get bigger since the pie itself is expanding. This is especially true when the growth rate of the “pie” exceeds the inflation rate by a large margin. Each sector in a fast growing economy will experience some growth, even if tangential or even competing with, the present central driver of that growth. Demand for employees will grow as will as opportunity’s to make an honest living. Why be a criminal when legitimate sources of money are available? The easier it is to make an honest living the fewer people will be motivated to crime. It is human nature to go the easiest route just as electricity will follow the easiest route to ground. Even more like electricity that follows every route to ground even when there is a large shunt, there will be those who follow crime as a means to wealth, but where the means is easier only the sadly deranged will follow the harder path.

All this is why society operates best that is closest to a meritocracy. The small effects of rewarding merit, rather than political favor or propensity to violence makes the economy on a large scale, (the macro economy), grow faster. The obviously more fair distribution of the goods of society, to those who do the most good for everyone and remains open for anyone to become rich, simply by meriting it, creates far less stress in society and gives everyone a stake in society. That growing economy draws in people who otherwise would be unemployable, giving them incentive to become employable, so they too can gather some of that ever expanding pie. While the crime rate of a meritocracy will naturally be lower due to it being easier to get money from legal activities rather than illegal ones. The trouble is, those who are at the top today, like the way it is, political favor being the arbiter of who gets what, that is why the senator’s mansion is twice the size of the CEO’s, while the founder of a company, the hated bourgeoisie, lives in a nice house in a suburban development, not much different than his employees.

Sincerely,

John Pepin

Corruption is the Greatest Threat the Human Race Faces

Thursday, October 13th, 2016

 

Dear Friends,

It seems to me, the greatest threat the human race faces, is corruption in government. That is the wellspring from which all other threats flow. Economic stagnation worry you? That problem is directly caused by government corruption. Terrorism in our streets scare you? That is another issue created by government corruption. Crime, drugs, violence in schools? They all have as their root government corruption. Do you fear your loved one’s might get sick and not have health coverage to provide life saving treatment? Government corruption stands directly in the way of that life saving treatment. In fact, you cannot think of a problem we face as people, that is not because of government corruption. Since government corruption is so destructive of our well being, health and finances, you would think people would vote against those who have shown themselves to be corrupt, sadly, that is not the case.

The case for economic substandard performance as the result of government corruption is pretty obvious. Markets, like environments, function best when competition is free and fair. The less free and fair a market or environment is, the poorer the performance of the inhabitants. In this, government corruption not only warps markets to serve those with political favor, but that very warping creates the conditions where profits come from political machinations, rather than creating products or services people need and want. The more profit moves away from providing value, and toward political favor, the more the corruption feedback loop is strengthened.

How is terrorism fueled by government corruption you might ask? Machiavelli said a corrupt people can never be free, in that where there is violence, average people will give up liberty for security. Of course they are really trading random violence for organized violence. There is no lowering of violence only the marshalling of it for political ends. Violence is a political tool. That is not my theory but Von Clausewitz. He posited that war is the use of violence to achieve a political aim. How is government to create the conditions where people will give up their freedom? By creating violence in society, make everyone feel unsafe in their own homes, create the conditions where going to the mall is fraught with danger, and foment such mind numbing fear that we will happily trade our liberty for slavery. Terrorism is the perfect means. That is why Merkel is importing so many Muslim’s into Europe. She isn’t so stupid she doesn’t know what she is doing. The argument we need more Muslims to prevent terrorist attacks is the same as claiming you need to put a rattlesnake in your bed to prevent snakebite. Terrorism is a means to a political end, both the terrorists know it as do the elite, they just have different political aims.

The scourge of drugs is due entirely to corruption in government. In 1900 all drugs were perfectly legal. You could buy marijuana at the drugstore, opium was available, cocaine was put in soft drinks and laudanum was sold over the counter. Even with the availability of drugs there wasn’t a huge drug problem. That is because people had a stake in society. As Veblen said, people don’t bristle at income inequality, because everyone in American knows he or she could become rich. In other words, people had a stake in society. Corruption in government has taken away that stake in society. Our young people graduate school without hope they ever can get ahead. The ability of the common man to become rich by the sweat of his brow has been eliminated by corrupt government, as is our stake in society. When someone looses hope, the temporary relief from a drug induced haze becomes possible, it seems like the only way to cope.

This year we are looking at electing someone who is obviously corrupt, has used her connections to enrich herself, destroying anyone who stands in her way, lying under oath on multiple occasions and has a public and private position on every question. Her candidacy is a sign of the times. The elite would like to forgo the election process and have set themselves to that task with an epidemic of vote fraud. The number of dead people who will cast ballots cannot be tallied because the elite have so perverted the election process. Illegally cast ballots from non citizens may swing the election, especially in close states and so with so much corruption undermining our democracy, and thereby the very foundation upon government stands, the consent of the people.

People go where our leaders lead us. When the leaders are corrupt, the people will follow their example and become corrupt, when our leaders are virtuous, the people will follow and become virtuous. We can live as virtuously as we want, but in the end, the actions of the elite will always and everywhere be a far more powerful example to our fellows. As I have shown, corruption is the greatest threat we face on planet Earth. Our economic well being, our safety, our children’s future, even our very lives, all are negatively impacted by the epidemic of government corruption sweeping across the globe. This will not be fixed by electing a strongman who will “get them.” The answer is to police the elite. Create an agency within government that has the authority, power and incentive to bring the elite to task. To think the elite will give up their power, privilege and prestige of their own free will, is to believe the Mexican drug cartels will decide they have made enough profit, and turn to charity instead. The vote has been perverted, our economy has been made a slave, there is ever increasing violence on our streets and our children are subjected to a drug culture that is pervasive. It’s past time to put your foot down and demand change…. demand a NUMA!

Sincerely,

John Pepin

Meritocracy… The Justice of Class Mobility.

Monday, October 12th, 2015

 
Dear Friends,

It seems to me, the real measure of justice in any society is the ability to get ahead, to move out of the social strata one is born into, and either up or down depending on the merit of the individual, and not because of their political favor. That used to be the case in the US for example, so much so that back in the late 19th century the lack of interest of Americans for socialism was explained by the socialist “economist” Thorstein Veblen, Americans don’t want to damage the interests of the rich, because every American knows he or she could become the rich, and no one wants to damage their own interests… Of course many did become rich and many more did not. Yet everyone understood the path was open for them. Opportunity has been the draw for people the world over to immigrate to the US. People would come so they could just have a chance to get ahead if they worked hard and were smart. Many did get rich and many did not but the opportunity was there. During that time, the standard of living of the American citizen rose in a way that has never been seen before, not only elevating the lot of Americans but spilling over into the rest of the world. Today that distinctly American dream, meritocracy, has been effectively crushed by our education system, regulations and cronyism.

Joseph Schumpeter said that as soon as someone becomes rich their first order of business is to close the door behind them, so no one else can come through that door and become rich. The reason is that the newly wealthy don’t want to have to face competition. Competition that lowers profits, makes one work harder for those lower profits and worst of all, creates the potential the wealthy could slide back into the middle class. The means at their disposal to close that door is regulations. Cronies use the straw dog of public safety to get regulations passed the create a barrier to entry. While an established company, with all the accouterments, can easily meet even draconian regulations, someone trying to get a business off the ground cannot. The door has effectively been closed.

Cronyism is an offshoot of closing the door. The wealthy have the money and connections to effect laws and regulations and so they use them to make easy profits. In his famous film series, Free To Choose… Milton Friedman said, if someone opens a business that sells it’s product at a lower price and has better quality, the old business owner has two options, they can lower their price and raise the quality of their product, or they could go to government and get the competitor shut down. The first option is out of the question as it requires hard work and smarts, while the second option is a no brainer. When they can they use government to ensure your profits and crush competition. Moreover, those same government connections that were formed by crushing competition can be used to get direct government money in the forms of grants and subsidies. What nation wants to loose it’s steel industry? Since every industry must corrode from within, whenever cronyism is used, it needs more and more “assistance” to stay in business, else that industry will be lost.

Regulations are the means to cronyism. Since regulations are made by unelected bureaucrats, they bypass the normal system for making laws, and can be wielded with impunity and with great effect. In addition, the cost to the economy and class mobility is irrelevant. A law is publicly debated and is subject to public scrutiny, but a regulation is passed in the dark of night, the only ones with input are the cronies who stand to gain or loose by that regulation. Examples abound, especially recently, like the new rules for the Internet, most of which are still secret, the new Pacific trade agreement, etc… the most pernicious effect of regulation however, is to limit the mobility of the population to rise above, or drop below the position they are born into. The intent and effect of regulations is to stifle class mobility.

The government monopoly education system limits our children, instead of teaching them anything is possible, it teaches them to be robots. Everyone needs to get the same education, go to the best college they can get into, take on so much debt they have to get a job and closes off both their motivation and ability to become entrepreneurs. Common core is the perfect example of this in action. Imagine trying to figure the yardage of concrete needed for a basement using common core math? It teaches the wonders of socialism where there is no possibility of class mobility, class under a socialist state is decided by political favor. The history of mankind is perverted to equate individual liberty with atrocities, when the direct opposite is true, overly powerful governments commit atrocities, while limited government is limited in it’s ability to commit atrocities. The education system has become a way for the state to remove the people’s belief in class mobility, and so make us willing to do damage to politically disfavored groups, because we have been taught… we can never become rich ourselves.

Class, caste, position, social strata, etc… are mere artificial constructs to pidgin hole people and limit them. It should be obvious to anyone with an open mind, therefore, in a society where you are stuck in the caste, class, position or social strata you are born into, regardless of your individual merits, is unjust. Justice by definition, is the equal treatment of people, where people are treated unequally, depending on some artificial construct of the elite, trapping people in the circumstances of their birth, is therefore by definition unjust. Those institutions that enforce class immobility then are damaging to the lot on mankind. Cronyism, regulations, personally limiting monopoly education system, unlimited government, socialism, etc… are by design, created to limit class mobility, and must be eliminated if we are to advance to a place where there is real justice, actual opportunity and a rising standard of living. You know in your heart this is true… speak the truth for others to hear, act so that others may follow and vote with your rightly understood interests at heart, and not out of envy or hate, and together we could restore opportunity to our kids.
Sincerely,

John Pepin

Good Intentions, Bad Ones, and Avarice… the Road to Tyranny

Thursday, April 9th, 2015

Dear Friends,

It seems to me, the road to hell is paved with good intentions, bad ones and avarice. Through a sense of altruism, watchers will want to help those they watch, more than they can now, because to do that they always need more power, when they get that power, they find it is insufficient and so… thereby advancing inevitably to tyranny. Tyranny doesn’t require as a prerequisite, malevolent thought, not at all, tyranny can arise from perfectly altruistic intentions. Each man and woman having different tolerances for despotism will wake up and find themselves in tyranny sooner or later, but all eventually will, once it has got too late.

In our modern surveillance state there are watchers, this is a new fact of life, and if they have a sense of compassion, which is a perfectly human quality, those they watch will become like pets, to be protected, nurtured and fed. Imagine having a beloved pet and you can only splash water at it’s dish? Wouldn’t you want the power to pour water directly into it’s dish? Now that you can pour water directly into it’s dish, shouldn’t you have the power to clean it? Isn’t it cruel to force it to drink from a filthy dish? You could minimize the violence it faces by collaring and leashing it. It would get the benefit of not fighting as much and the wounds that come with fighting.

When the watchers have no one to watch them their other human traits come to the fore. Vice, avarice and opulence creeps into the lives of the watchers, with no immediate direct negative consequences, because they are above being watched. No matter if it is personally immoral, socially immoral or just plain uncivilized behavior, the whole of the nation must suffer when the watchers become corrupt. Like a volcano spewing lava from the top, society vomits corruption from the top, and it oozes from the top down, covering the rest of the mountain in due time. Once corruption has reached the lowest echelons of the bureaucracy, you know every inch is saturated.

Our watchers have no one to watch them, the proof is where there have been attempts to limit the actions, even in extreme cases, the watchers have marshaled their political power, through their unions, the political faction that derives it’s sustenance from those unions, the judicial faction that sees our Constitution as liquid, and the unbiased media… to push back those limits. During the financial crisis of 2008, it was discovered that the very people who were supposed to watch over the banking system, were instead, watching porn. When it came out that they were derelict in their duty, their right to watch porn instead of work, was upheld in the arena of political power and they enjoy their right to watch porn at work today.

Which presents us with a second means a watched society can devolve into tyranny, if the first is through a sense of compassion, the second through corruption, and a third a sense of superiority. Sitting in a dark cubicle watching the comings and goings of other people, all day and all night, either directly or indirectly using meta data, can only lead to a sense of superiority. If I am setting there watching some person make the same mistakes over and over, even if I make those same mistakes myself, gives me a sense of superiority. That is human nature.

A sense of superiority dehumanizes those the superior person oversees. They become less than a human being in his or her eyes, they may be beloved pets, chumps to be fleeced or maybe just an ant farm. If you are overseeing an ant farm, you want your ant farm to be bigger than other people’s, don’t you? That would be the goal of an ant farm. So you would do everything you could to make your ant farm bigger. You might find a better medium for the ants and so transfer them into the better sand. They might outgrow the terrarium so you might move them to a larger terrarium. Maybe, you could add some plants for your ants to crawl around on, because it amuses you to watch them crawl around plants.

There is no possible way a system where there is a caste of people who watch the rest of society, enforcing every law, rule, regulation, either civic, social, or criminal, at every moment of the day, everywhere… that doesn’t lead inevitably to despotism and is itself tyranny. If the watchers were computers, programmed to watch everyone, all the time, no matter where they are, would remove the human element. But that would not be acceptable to the elite, who make those laws, rules and regulations. Such a system would enforce their own rules on the elite, which is unacceptable, so they need a group of humans to stand in the way. But even a cursory look at a computer driven system, shows it is utter tyranny of the highest order, it’s one redeeming feature is that even the elite would chafe under it’s provisions, showing that while not being liberty itself, it would lead to liberty in short order.

While the benefits of being watched over, might seem like a good thing to some people, random violent crime would become regular, plenty of soylent green for everyone, parks to crawl around on, everyone could live in Cabrini Green, a vibrant vice economy would employ many, etc… the inevitable tyranny that would result isn’t as rosy. No matter the nature of our watchers, and the likelihood is that every type will be represented, it will initiate a slide to tyranny that will be hard to stop. A Fourth Branch, or NUMAfourth branch, might mitigate the negative side so we could get some of the positives, but that is for another blog. The takeaway point of this article, is that a system where some watch others is a path to tyranny, no matter if the watchers are virtuous or villainous. The road to Hell is paved with good intentions, bad ones, and gluttony.

Sincerely,

John Pepin

Net Neutrality and the Corruption of Regulation

Thursday, March 5th, 2015

Dear Friends,

It seems to me, if “net neutrality” was a standard, it would only require a page at most to explain it, it would be open to the public and would actually standardize access for new businesses, since it is over three hundred pages, is not available to the public, even for comment, and passed by the bureaucracy in darkness, shows it is regulation that should have been forcefully condemned by everyone. The unbiased media claim the regulation will force internet providers, like the politically disfavored firm Comcast, to allow all data to go through their networks without bias. Of course, that description only took one sentence. The regulation took over three hundred pages which can only make us ponder what else is in it? Furthermore, the regulation was and is not open to the public for review, so one must wonder, how does the unbiased media know anything at all about it? The government claims the regulation will help protect free speech… by regulating it. Because nothing is as free as when you have to get permission from government to do it. The only entity it seems that was allowed, not only to see the regulation, but change it to suit their needs… was Google. All of which illustrates the point I have made many times in my articles, that regulation is destructive of the market while standardization is helpful.

If the regulation was “neutral,” then why was the largest internet company on the planet, allowed to change it to suit their wants and needs? Proving it is not neutral but biased. Regulation, as I have said before, is by design a means for politically favored companies to avoid competition (crony capitalism), to give politically favored groups a leg up on an otherwise free interaction (state discrimination), protect politicians ambitions (enshrine political power) or to establish a politically favored company’s monopoly. Regulation never goes away it only gets more convoluted and destructive of market interactions as time goes on. Those who pass regulation don’t ever want people to understand what it is really for, so they always couch it in good sounding terms like, neutrality, when nothing could be further from the truth. But then again, truth has nothing to do with politics… does it?

A standard is simple to understand. All standards are this way, a gallon is a fixed amount, a mile is a fixed distance, HDTV is a fixed way of encoding video and sound, etc… A standard applies equally to everyone, and as such, is a benefit to the market. Confucius called it, rectifying terms. Imagine if a gallon was a regulation instead of a standard… How would that work, well a gallon of oil would be different from a gallon of milk which would vary depending on who the buyer was or the seller was. The volume of a gallon of water would vary depending on it’s purity content. The regulation of a gallon would run into the hundreds or thousands of pages of regulation… to protect the interests of politically favored people, groups and companies. Imagine how hard it would be to do business in liquids if that was the case? Every firm would need armies of accountants to comply with the regulation. That net neutrality took over three hundred pages is proof it is a regulation not a standard.

How does the media know… that which we are not allowed to know? Obama has prosecuted and jailed more whistle blowers than every other administration combined. His iron fisted hold on information is legendary. Since that is the case, how is it the unbiased media have information that is not in the public domain? …and are not being hounded for it, like Cheryl Atkinson? The only answer is, they are reporting press briefings on the regulation, and not on the actual content. They are merely parroting the propaganda that those who seek to regulate the internet want them to parrot. If the media took their station as the fourth estate seriously, they would verify the party line independently, that they didn’t, shows they are the willing dupes, or cronies, of nefarious government officials.

In what universe has regulation ever made anything more free? Regulation creates barriers to entry, it increases the cost of doing business, it requires government permission to do business, it crushes firms that are not politically favored and it drives up the cost of products and services. Regulation is the opposite of free, it is designed to regulate that which otherwise would be free! When government decides what you can and cannot say, is that more free or less free? Is an open forum where anyone can say anything they want, more or less free, than one where government permission is required first? When government decides what data is given priority, do you honestly think politically unfavored speech is going to be given equal access? Like the tax free status of Tea party groups under the IRS was protected by regulation?

Lastly, what grows in the dark of night… mold, fungus, bacteria and corruption, that is all. That Net Neutrality was written, passed and now is being implemented, in the dark of night, is proof enough it is corrupt, else the regulations would have been published for anyone to see and comment on. The only one to get a say is the giant internet company Google, and does anyone more than a year old, believe Google would change regulation to benefit it’s customers or competitors? Of course not! The changes Google put in the three hundred page regulation, was to benefit Google, at the cost to the public and it’s competition. Corruption piled upon corruption, and the unbiased media sang the party song, like the good little propagandists they are.

Perhaps standardization of access might be helpful but the debate would have to be open with everyone having a say before we knew. The final standard would have to be simple to understand and public knowledge. To now… the internet has been an open forum for anyone to access and get their message out. In that way the internet has been the most democratizing instrument ever devised by mankind. Now that the door has been opened to regulation, it will be used to protect those in political power, politically favored groups, people and businesses, while smothering the availability of information government doesn’t want out. Very soon there will be calls to license bloggers and internet sites, (if it isn’t already in the regulation), for the benefit of “openness.” Because nothing is more free than when government regulates it. Now that governments, the world over, are regulating the internet… the goose that laid the golden egg is being slaughtered, not for the gold inside, but to keep it from laying any more of those damnable golden eggs.

Sincerely,

John Pepin

Inflation and the Gap Between the Rich and the Poor

Thursday, February 26th, 2015

Dear Friends,

It seems to me, Keynesian economists constantly tell us that inflation is necessary, for a host of reasons, but what they don’t tell us is that one of inflation’s primary attributes… is to exacerbate the gap between the rich and the poor. Deflation is the norm in a laissez faire economy. In order to have inflation it must be created by money printing. But where there is deflation the new class elite’s interests are harmed, while the interests of the vast majority of the population is improved. Governments are one of the primary beneficiaries of inflation but large businesses also benefit from it. Inflation is a way to lower wages, it diminishes the value of savings and it makes GDP growth appear better, or worse, than it is. These benefits accrue to the elite at the cost to the people. Since the primary role of government today, is to benefit those who are politically favored, inflation is here to stay.

I am not one to say the measure of a society’s fairness and justice, is the gap between the rich and the poor, I am of the opinion that the standard of living of the poor, compared to the rich is. The new class uses the “gap,” as a hammer to bash in the head of anyone seeking laissez faire however, and so I thought pointing out the hypocrisy would be informative. The reason I don’t believe the gap is the right measure is because, in a society where the poor have everything a rich person does, even where the rich person has a trillion times the wealth, is just, and in a society where the poor have very low standard of living, while the rich live like kings, even where the gap in actual wealth is small, is fundamentally unjust. Many things can effect the difference in the standard of living of the poor compared to the rich, a few are… political favor, (as in South American countries), access to the goods of the economy, (as in socialist countries), and inflation.

In a laissez faire economy productivity gains drive down the cost of producing goods and services. When the mechanical loom came out Marx said it would lead to the mass starvation of the workers. But what it did was drive down the cost of a wool coat so the average worker could buy one. The electric light didn’t benefit the rich, who have sufficient means to buy candles and pay people to maintain them, it helped the worker who could afford to have light in their homes after dark. When Ford started making cars en masse he drove down the cost of a car so anyone could afford one. The examples of market driven deflation would fill libraries. But deflation has a cost to the elite.

To many who are rich, it isn’t what they have that is important, it is what they have that we cannot, that floats their boat. In the 1980’s the most popular vehicle among the rich in the US was the Suburban. A behemoth of a vehicle, it towered over the smaller cars, and was too expensive for the regular guy or gal to get. But when average people started buying them, the rich were incensed, maybe that is why the fiction of global warming was created. That is one problem with deflation, it lowers the cost of products so anyone can buy them. That is unacceptable to many of the uber rich, because what good is all that money if the regular working man or woman can get anything the rich can? What good is it to have Ferrari if anyone can work hard and save the money to buy one? If anyone can fly to Europe, that lowers the relative value of having a private jet, when even the hoi polloi can lunch on the Place Saint German in Paris! Inflation helps solve this dilemma.

Keynesian economists maintain a constant panic over what they call, “sticky wages.” That is the theory that businesses are loath to lower wages, even in economic downturns, and so inflation is a way to lower wages stealthily. It constantly corrodes the earnings of workers so firms have a greater control on the wages of their employees. In a downturn, they simply don’t give raises and so in reality they cut the wages of workers. By giving wage increases at less than the rate of inflation the worker’s wages are cut by dribs and drabs. Inflation lowers wages by taking away the buying power of the money businesses pay.

Gross Domestic Product, (GDP) or the amount of goods and services produced in an economy, can be skewed by inflation. Under counting inflation, makes GDP appear to grow faster than it really is, and over counting inflation, makes it appear to grow slower than it really is. This is a handy tool for the new class elite to massage GDP depending on if they like the party in power or dislike them. Since GDP is often looked at, as how a President is doing on the economy, a little under counting inflation can make him or her a hero, and a bit of over counting it, makes them a villain. Tricking the people into voting against our self interests is one reason we have a Central Bank. Inflation is a great tool for just that.

Out of control government spending could not happen without inflation. Inflation lowers the real value of the money government borrows over time. Since all of that borrowing goes to help the rich, in a variety of ways, that spending must be maintained. At first glance some might argue that the welfare state, that is only possible by inflationary government spending, helps the poor… but it doesn’t. The welfare state is the modern equivalent of Roman Bread and Circuses. It keeps a large and growing segment of people poor and dependent on the charity of government, and shuts down dissent, and so everyone on assistance is a slave to the State. Moreover, much of that spending goes to the boondoggles of the rich with political favor, like George Kaiser of Solyndra, Warren Buffet’s trains carrying Canadian oil, etc… and leaves you and I on the hook.

When… inflation cuts the wages of the workers, our standard of living is undermined by inflation, the buying power of those wages we have left is diminished by inflation, our savings are eroded by inflation, and the politicians are picked for us by artifice… the gap between the rich and poor grows. It becomes impossible to save for a Ferrari, struggling to make ends meet we cannot take vacations to Paris, and expensive gas forces us to buy microscopic cars. The rich, who have political favor, need not worry about inflation diminishing their wealth however, their businesses are protected by cronyism and their savings, by offshore accounts, while higher costs for goods and services just keeps them out of the grubby hands of us. Even as inflation diminishes the standard of living of the working class, and especially the poor, inflation has no such negative effect on the purchasing power of those who are rich, and so the real gap in the standard of living grows… as is intended. That is why the elite go into panic mode at any sign of deflation, it changes the paradigm, because deflation allows you and I to buy the same things as the rich… and that is unacceptable!

Sincerely,

John Pepin

Abuse of Power…

Monday, September 8th, 2014

 

Dear Friends,

It seems to me, changing our Constitution for naked political advantage, is not only corrupt but it actually endangers our republic. This week the Democratically controlled senate is taking the initial Machiavellian steps to amend our Constitution, so they can decide who can give and how much money that can be spent on political and public service campaigns. This is so clearly a dishonest political move, the unbiased media has given it a good leaving alone, so as not to awaken the American people. Since our government prefers to work in the dark of night, passing bills to regulate every aspect of our lives and enrich themselves, I am not at all shocked. They have been playing the despotism game for a century , while we play tiddlywinks. I do wonder however, who in their right minds would think this power would not be abused immediately?

Our government has derailed from our Constitution. That cannot be debated. With the absurd postulation of the New Class progressives that run the DNC and the RNC, that our Constitution is a “living breathing document,” our only real bulwark against tyranny has been mutated into a chimera, designed to do the opposite of what it was intended. Progressives have doubled down on their scheme to wrest power from the Constitution and place it firmly and forever in their greasy hands. Even when the New Class controlled Supreme Court doesn’t pervert the Constitution, to give the statists a leg up, the New Class will take matters into their own hands by amending our Constitution. Since arbitrary power is the end goal of New Class Progressives, and to them the end justifies the means, changing the Constitution for political power is merely par for the course.

To argue that the political elite will not misuse the new power to control political thought through legislation is to argue fish don’t swim and birds don’t fly. The scandals of the past few years have been as breathtaking in their scope as they were in their audacity. The IRS targeting politically disfavored groups, like the Tea Party, pro Israeli groups and conservative republicans, is so corrupt… in a sane world people would already be in jail. The intentional destruction of government property and erasing of emails by the IRS is a clear sign to all but the most willfully blind, that our government has disconnected from any Constitutional, legal or moral restraint.

When someone has proven, over and over, they cannot be trusted, to trust them is just plain stupid. Our political elite have been caught in so many lies only the most imbecilic among us believe them. The cover up of the botched kidnapping of Ambassador Stevens in Benghazi is but one terrifically egregious example. The Obama administration sent Susan Rice on a lying tour of the Sunday talk shows. The story they peddled was such obvious fiction, I was flabbergasted that they thought so little of our intelligence they would come up with such a lame excuse for a terrorist attack on a US embassy, on the anniversary of 911. In a blog that I wrote that day I said as much. Now that the lie has been exposed for what it is there are no consequences for it. This shows the lengths our government will do to cover up their misdeeds and is indicative of how low in esteem they hold us.

In the last election, where Obama won his second term, government pulled out all the stops to convince the American people up is down and right is left. The Benghazi cover up was only one example. The Federal reserve enacted QE3 just prior to the election of 2012, to gin the stock markets and give the American people a false sense of economic growth. Even the Census bureau got in on the act. A year before the election a famous CEO, Jack Welch, said the unemployment rate would be below 8%, an unemployment number requisite for a sitting President to be reelected. The unbiased media turned on him like a pack of rabid dogs. Then, like clockwork, as the election neared amazingly enough the unemployment figures dropped exactly as he had said they would. The numbers were later shown to be as false as a Chinese government GDP figure, but Obama had won… the election and the ruses had worked.

The political elite have proven over and over they cannot be trusted. Our founding fathers as much as told us this would happen, but we have been so stupefied many of us don’t even care, as long as we get their welfare check, food stamps, hack job or crony capitalism kickbacks. Let me ask you this, answer it honestly, (if only to yourself), would you believe your husband or wife if they had been caught cheating on you over and over, when you caught them posting an ad on the internet for a hooker… that they were actually looking for a maid? Only a fool believes someone who is incapable of telling the truth, and those who do believe a known liar, deserve what they get. Changing our Constitution so the political elite can have more power to lie, control the narrative and shut down debate, is so obviously corrupting to any political system the American people should roar in anger, but instead, so many of us dilute our righteous indignation with their complacence, the roar will be quieted to a low hum, and the political elite will move the ball of tyranny further down the field. We have no one but ourselves to blame though… for allowing it.

Sincerely,

John Pepin

Tesla, Crony Capitalism and Creative Destruction

Thursday, July 31st, 2014

 

Dear Friends,

 

It seems to me, an excellent illustration of political favor at work, the type of political favor that is destroying our economy… is the scuffle between Tesla Motor Cars and the Dealerships in New Jersey. Everyone agrees it is about politics and we also tacitly agree the question will come down to which side has the most political favor. Free market consideration is not made at all. This small set to, between the dealerships and Tesla over whether Tesla can sell it’s cars directly to consumers, is all about stopping the free market from innovating and to protect the profits of politically connected dealerships. The best interests of the consumer is not even at question! No one in the media cares if the consumer is hurt or helped by direct sales, only which side has sufficient political favor to push their argument through the New Jersey legislature, because that is all that really counts. This is very damaging to our economy, because the interest of the people is not even a factor, simply the will of the political elite. This shows how far from free market principles we have strayed. Your job, wages, benefits and standard of living are in the balance, but bear no weight on how it turns out.

 

Tesla wants to sell it’s cars directly to the consumer, bypassing the traditional dealership network. The dealerships have asked a court to force Tesla to sell their cars through dealerships and as a result Tesla doesn’t sell cars in New Jersey. Tesla has gone to the New Jersey legislature to get a law passed allowing them to sell their cars direct to consumers. Of course, politics came into it as soon as the smell of money wafted around, and justified by the fact Tesla wanted to do something different then is traditionally done. Because, as Milton Friedman said… when a firm faces competition that sells it’s products at a lower price and better quality, the firm can increase it’s quality and lower prices, or it can go to the government to force the competition closed. That is exactly what the car dealerships have done, they went to government to force Tesla to use them, to protect their profits.

 

The problem is that this strategy always results in stifling innovation, which has a profoundly negative effect on present, and especially future GDP growth, due to the compounding effect of past growth, or lack of it. Schumpeter coined the term, “Creative Destruction” to explain the cycle of growth under the capitalist mode of production. He explained that, as a new idea is implemented, units of production are drawn into realizing that new idea. This results in GDP growth, as more labor, productive facilities and ingenuity are utilized. As the innovation matures, the old systems that are rendered redundant go bust. They go out of business and the recession part of the cycle comes in. As the cost of the units of production become cheaper due to the recessionary pressures, a new idea becomes possible to implement, starting the virtuous cycle again… unless it is short circuited by well meaning but pernicious government programs to protect older more established firms from competition, (like is done in Japan…).

 

The best way would be to let the free market sort it all out. If Tesla’s plan results in angry customers then Tesla will retreat to the traditional strategy of using dealerships to sell it’s cars. Considering the recalls recently on Tesla cars, this might have proven the dealerships argument, without having gone to court and enriching lawyers for nothing. We’ll have to wait and see how the consumer reaction is to how the recalls are handled. If Tesla’s plan does work however, it will have staked out new ground undermining the market reason for dealerships to exist, which would incentivize other companies to stop using dealerships. Either way the market will show the efficiency of the present system or the potential innovative efficiency that could result in creative destruction. With the oceans of paperwork, regulations and political favor that is needed to cross before an innovation can be implemented, the innovative part of the business cycle is drowned.

 

As government policies smother innovation creative destruction is stymied. Lower present GDP growth can be expected, and will be magnified over time due to the effect of compounded growth. That damage to the innovation process by government derails the creative part of the creative destruction by protecting the firms that would face destruction, and so to keep the old inefficient crony capitalism going government destroys the very mechanism of growth of the capitalist system, and by doing that, they lower everyone’s standard of living… but the political Elite get a ton of money and power by doing it.

 

 

Sincerely,

 

John Pepin

 

Our Catch Me if You Can Form of Governance

Monday, June 30th, 2014

 

Dear Friends,

 

It seems to me, no law that is enforced on the people, when broken, has the negative effect on our society, culture, economy and good government, than when our lawmakers violate Our Constitution and their own laws. To argue that robbing a liqueur store has anywhere near the profoundly destructive effect on our society, as an elected leader breaking his own law, is absurd. I challenge anyone to argue differently. To claim that a person speeding along in a car on the highway is a greater threat to public safety than a lawmaker who undermines our Constitution for political expediency, is to assert that up is down and down is up. We all know this instinctively, but we happily go along when the liqueur store bandit is punished with years behind bars, while the lawmaker sees no negative consequences for his much more destructive actions. We shake our heads as we pass the guy or gal pulled over for speeding, and ignore the direct assaults on our Constitution, by those very people who have sworn an oath to protect it. Then we wonder why our prisons are full, our economy is shrinking and we are not even safe in our own homes.

 

We all have a sense of justice. As I wrote in a previous article, justice is a state of mind not a state of being. Justice is treating everyone the same. The speeder faces negative consequences for speeding, in the form of fines, points on their licenses and increased insurance costs. A lawmaker who undermines the protections guaranteed to us by our Constitution faces no negative consequences at all. The worst that can happen to him or her, is to have their usurpation of our collective Rights overturned by a court, and that is only temporary until the court can be stacked with people who also want to undermine that facet of our rights. Clearly, of the two, the speeder faces far more punishment for his minor infraction than the politician who damages our very Constitution and way of life. This is the definition of injustice.

 

The damage to our society, economy, culture and good governance is far worse when a lawmaker violates his own laws. This is because people are far less likely to mimic a masked bandit holding up a liqueur store than we are to follow the example of a leader violating his own laws. The bandit is a person who is outside society, but the political leader is at the top of society. Moreover, no matter how draconian the punishment for holding up a liqueur store is, if people watch their political leaders violating their own laws with no punishment at all, there will be more crime. As Confucius said, “we follow our leaders.” If they are corrupt, especially if they face no real consequences for it, we will follow them and be corrupt ourselves. We don’t follow the lone gunman into criminality we follow our leaders into crime. That is why our jails are so full and we are not safe in our own homes.

 

As lawmakers use their positions of authority to enrich themselves and their patrons our economy is damaged exponentially more than a liqueur store robbery. The thief damages a small segment of our economy, but the lawmaker who passes laws and regulations, to protect some politically favored industry or patron, damages the entire economy, not only now but forever. The market system depends on equal treatment of people, (justice), but when the politically favored get special treatment, nations become polarized into the haves and the have nots. It is not a government bureaucrat that ensures economic fairness, they destroy economic justice, because they treat people differently. Eventually, government does so much damage to the economy, people become stuck in the station they are born into, the poor have no way out because the rich are the only ones who can get through the regulations. The gap grows ever larger and the poor are tricked into supporting a system, socialism, where they are forever poor and the powerful are forever wealthy.

 

You and I are forced to follow every law to the letter, even if we are ignorant of it, but the lawmaker, those who actually write laws, can simply claim ignorance… this is a clear injustice. We have a gut understanding of that injustice, but instead of holding our political leaders to their own laws, we hold them in awe. As our Constitutional Rights are crushed under the jack boot of ever more tyrannical authority, with no negative consequences, the usurpation of them will grow ever more bold and ever more destructive. We are held to the law so our society can function, but when our leaders are not, the functioning of society and the economy, are damaged far worse than any liqueur store robbery. As we look around ourselves, at our crumbling standard of living, the high crime rate, the scourge of drugs, school shootings, the rise of existential threats and general malaise, we must remember, it is not the speeder, the thief or the madman who is responsible, it is the corrupt lawmakers and those who allow and embrace their corruption, who are the real villains. Until we as a society and people learn this, and demand consequences for the political elite who violate their own laws and our Constitutions, the slide to despotism, poverty and chaos will accelerate.

 

 

Sincerely,

 

John Pepin