Dear Friends,
It seems to me, Canada is on the path to Venezuela. Venezuela was the richest country in South America after the oil boom. Once the communists gained power it went from the richest to the poorest. Not because the oil dried up, but because communists are great at usurping power but can’t run a spoon. Regardless of the intention, good or bad, of the goal, or of the people in charge… the policies of socialism always and everywhere create poverty, crime, and despotism. Venezuela, North Korea, and Cuba are a few examples. For some inexplicable reason, Canadians saw the poverty, crime, and despotism that socialist central planning brings, and thought to themselves, “I want some of that!” Then they set themselves to getting it.
Socialism or central planning is a system where those who are unable tell those who are able how to do their job. The problem is that the ability to usurp power is a different skill set than that of being able to build, innovate, and create. Those who can do, and those who can’t demand those who do… to submit. Is it any wonder then that central planning always results in poverty, crime, and despotism? How could it not? Those in charge force those who do things, to do them as the central planners demand, at the point of a gun. So those who do must do what they do burdened by ever-growing stupid regulations. The people at the center get an ever-bigger cut of the constantly shrinking pie as well. As a result, all forms of socialism produce suffering… Canada is no exception.
The thing about central planning and socialism is that on paper they sound great. The central planner looks at a factory and thinks, “Look at how efficient that factory is, if only I could apply that to the economy, scientifically, the economy would be that efficient!” It makes perfect sense to them. The problem with that thinking is it’s a category error. A factory is a Mount Fuji problem. That’s a problem where there is one peak that all upward movement is towards that peak. An economy, however, is a different category. It’s a complex system, or a dancing landscape. This is one which upward movement may be away from the optimal solution. There may be peaks and valleys between where one is and the ideal. The Canadian economy then is in a different category than a factory.
As well as being a categorical error, central planning’s vexing and uncanny ability to draw poverty from plenty leads to crime and then despotism. As the pie gets smaller and the government’s share gets bigger, little people fight over the scraps. Moreover, the hoi polloi look up at the elite and see them get more corrupt by the day. Since people follow their leaders, the whole of society becomes corrupt. This can only lead to crime and more economic disruption. To stem the crime the elite pass more and more draconian laws. Then lead the people to more crime by example. Eventually the people become fed up with their leadership and the central planner has to resort to canceling elections, banning candidates, and defrauding elections. Soon the gloves come off and despotism is undeniable, like in Canada.
You can vote your way into central planning but you have to fight your way back out. Unless someone else is willing to fight for you. That only happens when they have something to gain… and it usually doesn’t include your best interests. I have to wonder if Pierre Poilievre gains traction in the polls whether the elite will ban him from running for being a right wing extremist? After what they did to the truckers’ protest, and got away with, nothing is off the table. Canada is showing signs of being in the later stage of central planning’s catastrophe. The EU is ahead in that regard but Carney has got the pedal to the metal. The Canadians, however, seem to like their despotism. Maybe they were cowed by the response to the Truckers protests. The Soviet Union, Iran, and Venezuela are likely Canada’s future.
Sincerely,
John Pepin
Lessons From Iran
Dear Friends,
It seems to me, people are people and if you push them far enough, they will erupt. Even a rabbit will bite. I have to wonder if that’s what’s happened in Iran? The recent turmoil with hundreds perhaps thousands of protesters carelessly shot by the regime to regain control… shows that things are getting out of hand. For once it appears the ruling elite there are feeling the terror they inflict on the people. Almost everyone will tolerate insanity fluttering around them, as long as it doesn’t directly interfere with their lives. Once it starts interfering with their lives they notice it. When that interference becomes life altering, it infuriates. If you have ever dealt with an angry person, further infuriating them is a suboptimal strategy to calming them down.
Most people couldn’t care less what system, rulers, or government they live under, as long as it stays out of their hair. That’s where most governments get it wrong. The ideal government from the citizen’s point of view, is one that is the least intrusive possible. The masses want laws that no one is above and the assurance that they are not below its protections. In this at least the appearance must be kept up. If those appearances fall, the people will see the hypocrisy and can’t but be incensed. Regular people really hate it when the elite are not only above the law, but if they profit from being above the law. What really gets people’s goat, however, is when a man’s wife or daughter comes home beaten or molested because a lock of hair fell out of her scarf. That really irks people at a deep level.
More often than not the elite in the center want to plan everyone’s life. So they set themselves to hobble the productive, subsidize the lazy, and flip incentives upside down. This kind of system can’t but interfere with people’s lives. The more licenses, permits, and hoops to jump through, the more people notice the government. Next comes the grift that’s bound together with red tape. As the regulations grow, so does the grift and at the same time, the economy falters. This yields poverty. Those in an ivory tower don’t see let alone feel the pain they inflict. They only feel the glee of power and the joy of abusing it. They gift themselves the luxury of inflicting suffering. That suffering, in and of itself, is a source of great societal pressure.
In most despotic governments there is a relief valve… emigration. The angry can leave. In others emigration is limited else everyone would go. The Soviet Bloc erected razor wire topped fences and machine gun guarded gates to keep people in. North Korea punishes people’s families for three generations should someone flee. So in many places that pressure relief valve of emigration is closed. This can only lead to a rise in pressure and temperature. The more trapped in an intolerable situation people feel then, the more likely they are to explode in anger. The sweetest dog can be made into a vicious mauler by his environment. So too can people be made into beasts by their government… especially if it leads by example.
So we have the example of the Iranian Regime. A group that usurped power in a coup, has ruled the Persian people by terror, and drove insanity down their throat’s, with the barrel of a gun as a ramrod. Clearly, they were following Mao’s advice. As those once wealthy people watched their fortunes dwindle, their sons killed in stupid wars, and their government bent on destroying the universe, their wives and daughters came home beaten and molested for some infraction of an absurd law… I’m sure anger grew. One reason I am very careful never to allow myself to experience blind anger is because I know how dangerous I am in that state… just as every other human being is. Terrorize, abuse a loved one, then corner a person and he or she becomes something else. They could become a revolutionary.
Sincerely,
John Pepin