Jobs and Demand

Posted on July 24, 2011 by john

Dear Friends,

It seems to me that the one thing that would improve the lives of every human would be to drive up demand for labor. This would have several positive effects, wages would increase reflecting the sliding demand/supply curve, more people would be sucked into the workplace as a result of the lowering unemployment rate, and the increase both in labor participation rates along with the increase in wages would allow people to invest and spend more, all having a net positive effect on the economy.

Rising demand always, at least in the short run, drives up costs, as supply struggles to catch up with new demand. Labor is no exception. Malthus claimed that the masses would reproduce themselves into poverty, thus his “swamp of humanity,” but we see his conjecture has not come to pass. Along with all the many other anti capitalist theories prognosticating the fall of the market system as a means of production. The fact is that the lot of the worker has improved every decade since the inception of the market system. Since the ejection of the Jews from Spain and their immigration into Denmark. So we can safely say that rising demand for labor, no matter the type demanded, increases the rate at which labor is paid.

The participation rate would increase due to the rising wages. As wages rise those that are only moderately comfortable in the dole will change their status from dependant to producer. This has many positive effects on an economy. As participation rates improve, the GDP per person improves. GDP per person is an important measure of the standard of living in a society. Higher GDP per person equates to better standard of living. Look at it this way, if a person is dependent on the welfare state, he or she lowers personal GDP as much as they get in dole. If that person becomes productive their wages are added to GDP instead of subtracted. So we can see a doubling of the effect on an economy of a person moving into the job market.

The new money that is created in an economy with a rising demand for labor drives up saving and spending. Investment improves the balance of trade of a country. Every Euro, Dollar, Ruble, Peso or Drachma saved goes into the aggregate supply of investment money in a society. If the demand for investment money in a country exceeds it’s native savings rate the investment capital comes from foreign sources. Those foreign monies subtract from the aggregate balance of trade. All demands for capital contribute to this, from a house loan to government deficit spending, they all effect the balance of trade.

Spending creates more demand for products, goods and services. Additional spending in a country drives up demand for everything which drives up demand for labor. Take our long suffering sofa salesman. The sofa he sells had to be made. It had to be packaged, the packaging had to be also made. The sofa had to be shipped to the store. Which requires trucks and men. The sofa has to be shipped to the buyer’s home. Then the packing material must be disposed of. The economic impact of a single purchase goes far deeper into an economy than most people think. So any increase in the purchasing power of the masses translates into a huge economic impact.

Of course all these goods are predicated on an increasing demand for labor. So we must honestly ask, “What gets in the way of increased demand for labor?” Regulation, corruption in the public service sector and too burdensome taxation are the biggies. Notice the first I mentioned was regulation? Regulation is corrosive to the creation of small business. The more rules that a potential small business owner faces the lower the likelihood he or she will take the risk. Every regulation raises the likelihood of a startup failing. Every regulation is a far greater burden for a small business to bear then a giant mega business and regulation drives up the cost of labor subtracting from any increase in wages. All in all regulation is a drag.

If the US government really wanted more jobs and a greater labor participation rate, it would rescind the Healthcare Law in it’s entirety, and to save the dwindling number of small banks, repeal Dodd Frank. These two actions would quadruple the demand for labor in the US overnight. But the Elite prefer to fight over how quickly which side will bankrupt the country. When the truth is, eventually, probably sooner rather than later, the US government will have an auction and no one will come. Then the demand for labor will drop… World wide.

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On Somalian Famine

Posted on July 21, 2011 by john

Dear Friends,

It seems to me, if the Romans had fed, clothed and housed the civilian population of Carthage, history would not have been written in Latin and we might be worshipping Baal. Had the Allies fed, clothed and provided medical care to the German people during WWI or WWII then we would probably be speaking German. It is patent folly and moreover stupidity to provide logistical support to an enemy in wartime. The side that engages in providing logistical support for the enemy’s civilian population may be more civilized, on some level, but is it really civilized to facilitate barbarians wiping out civilization? I, for one, like civilization!

To be human hearted is noble and civilized. We all seek human heartedness in our lives and the good among us seek to bless society with human heartedness. To have empathy for the suffering of others is the table facet of human heartedness. The suffering of people, is the worldly manifestation of evil, and so it is unconscionable. We should all seek to lower the level of suffering in the World. It is in our personal interest to do so even when that suffering seems far away.

Lets say you have a full water skein. You notice it has a leak. Does it make sense to put your hand in and plug the leak? No, your hand will displace far more water than the small leak will loose in an hour. With dubious results of actually fixing the leak. We can safely say that the repair will do more harm than the problem. If we can adhere some material to the outside, temporarily, we can use the skein until it is empty then we can repair it properly.

The same is true of human suffering. It doesn’t make sense to magnify suffering, to diminish it, especially when it creates much more misery then the original problem would have. The intervention in Libya is an example. Had the war ended months ago, (as it would have), the suffering would be over and the people would be rebuilding. But the intervention, to fix a problem of suffering, has led to far more suffering, now the Elite must save face, so the war goes on…

Lets examine the misery in Somalia today. The war and a drought have led to… hard to believe… a famine. Apparently, a state of perpetual warfare and a people who rely on a mix of subsistence farming and international handouts, is not a path to prosperity. The International community is sending aid. Mostly Britain and the US. But the war with the radical Islamic movement, Al Shabab, is hampering efforts to feed clothe and provide medical assistance to the civilians under the control of Al Shabab.

Meanwhile people are starving who are not within the sphere of influence of Al Shabab. Why not simply feed the people who do not support Al Shabab? Why is it so important to provide logistical support for the radical Islamist movement trying to conquer the country and instill Sharia? Why not defeat them first then feed the people who emerge. To provide medical supplies, food, and other essentials, to the civilians under a tyrannical military is not feeding the people, it is feeding their tormentors. The supplies will never get to the people and if some does it will be seized and sent to the fighters extra will be sold to provide ammo and guns.

The food sent to Al Shabab will also be a terrific recruitment tool for them. Join and you will be fed. Not hard to comprehend. No way that could be a bad thing huh? Until the war is over and the country has a functional State, that can protect the property of the people, there will be no end to the famines. Providing logistical support to the civilians within the sphere of influence of Al Shabab will only lead to more war, famine and suffering and perhaps, Al Shabab’s victory. Doesn’t it make sense to provide support for the free people of Somalia and eschew supporting Al Shabab?

In the longer term the answer to permanently ending the cyclic famine in Somalia, is to defeat Al Shabab and establish a stable government. Then keep regulation low, taxes low, and keep a tight grip on public servants and government with a NUMA. If this is done the economy of Somalia will grow rapidly. Industrializing Somalia will break the cycle of famine there forever. What could be more human hearted than that?

When a country or ideology is engaged in an existential war then that ideology or country must engage in war. This is simply the framework of reality we have to work within. Civilized suicide is a sin. The loss of civilization to barbarism compounds the vice and is no virtue no matter the intentions. Clausewitz would be indignant at the notion of providing logistical support to the enemy population during wartime. Hsun Tzu would be clicking his tongue like a school marm at a rascally student…

By the way, “Death to Carthage!”

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Politics and the US Debt Debate

Posted on July 18, 2011 by john

Dear Friends,

It seems to me extremely disingenuous for the politicians to have created this budget problem and are now using it to attack each other. The ramifications, for not only the US economy, but for the World economy as a whole is enormous. We have watched them nail this problem together plank by plank for years, and now they stand astride their creation, claiming it will destroy the universe unless the are given even more power. Taxes must be raised and investments must be made else it is woe to us all!

When George HW Bush was elected he ran on a pledge, “Read my lips, No new taxes!” But the first thing he did, was negotiate with the democrats to control the deficit… and raised taxes. The tax hike lowered the economy a bit, but the greater result was, that his political base lost trust in him. Bush lost the election to Clinton largely as a result of stabbing his base in the back.

The modern analogy is the newly elected republicans, the Tea Party republicans. They were elected on a platform of no new taxes and even pledged as much. To get them to turn on their base and raise taxes is a suicidal to their political careers. Since they are the biggest roadblock to the progressives dismantling of the Capitalist system in the US that is a great motivation to Obama and his progressive friends. So we can see the stakes are very high.

That is why the Tea Party caucus in the republican party are so insistent and the reason the progressive caucus in the democrat party are so insistent, Both side of the political spectrum see this as a existential issue to them. The democrats believe that they can effectively vilify the Tea Party caucus as unreasonable, and responsible for all the economic problems facing the World today, in this way the progressives can regain total power for another election cycle or two, furthering their plan to bankrupt the US and blame Capitalism.

Finally however, the republicans are doing… something. They are supposed to pass a bill and send it to the Senate. The Senate can then reject it, amend it or pass it as they see fit. It is about time the republicans acted spending bills must come from the House. The democrats demagogue the bill as a nonstarter but they conveniently forget they can amend the parts they see as deficient. After all, isn’t that the way divided government is supposed to work?

One side passes something, the next body amends it then the two get together in committee to reconcile their version of the bill. Then the reconciled bill goes to the President for his signature. (That was the gist of the cartoon I watched as a child on bills and Laws). The republicans are supposed to pass a spending bill on Tuesday. Then send it to the Senate. We will see if it gets any consideration at all.

As for the democrat plan to cut some perks for the “rich.” The most advertised example is the corporate jet “loop hole.” It is vilified as a way CEO fat cats can get a corporate jet at taxpayers expense. While it may be true that a corporation that pays a 25% tax rate would have 25% of a corporate jet covered at taxpayers expense the rest would be at the shareholders expense. This argument misses the fact, however, that there is an industry that derives it’s income from the purchase and sale of corporate jets.

The effect on this largely US industry is never examined. The possible effect on the well paid jobs is not even considered. How many fewer jets will be sold if the ‘Loop hole” is closed? How many jobs lost? But, is it even really a loop hole? For it to be a legitimate loop hole it must not have any reasonable purpose except to enrich a few at the expense of the many. In this case the question we must ask ourselves is, “Is there a legitimate corporate reason to have a corporate jet?” Because if there is, then it is no a loop hole at all, but if there is no legitimate reason for a corporation to ever have a corporate jet, then it is a loop hole and should be closed.

We have to examine these questions in the light of the fact that the people that run the show are responsible for the outcome. They love to create a problem and then blame others. If we want to really decide what party or faction is working for the benefit of the people or are merely egoists we can ask ourselves this question, “What side or faction is taking political risks by voicing their ideas and writing them into bills and actually voting on them, and which party or faction is only making speeches, threatening old people and simply demagogue any idea they hear?” The answer to that question will clarify this one, “What is the actual goal of the progressives?”

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“rights” vs Rights

Posted on July 14, 2011 by john

Dear Friends,

It seems to me, many people believe that food, clothing, shelter, and healthcare are human rights. While it is absolutely a fundamental human right to have access to them, it is not a right to have someone else pay for them, unless the payers so will it i.e. alms. The difference is not only important because it has implications for meeting the needs of people but it has even deeper implications for liberty in a society.

The right to access all the things that are necessary for life, is fundamental in that, for one thing, if anyone is denied access to them, it is always for a wicked purpose. From racism or religious intolerance to mere larceny it is incompatible with a civilized society. If a person who has every history of careful use and responsible citizenry tries to purchase a good, product, service or rental, in a true capitalist society, one that values the rights of Man, they must be serviced. There can be no other way in a civilized society. Civilization being the operative concept in any true consideration of our fundamental human rights, ie whether a “right” is fundamental or serves a nefarious purpose.

Take the generally recognized right to freedom of religion. It is a right that need not conflict with anyone else’s liberty or actions. If a group gathers for mass they do so as a group. No one is forced to attend, (accept for a few impish kids). No person who is not of that flock is forced to pay for the heat, water, air-conditioning or priestly pay. Those that follow pay and society is enriched at their expense.

Take the “right” to food. The person who holds up his fist and demands others pay for his food or he will muster an army and take what is “rightfully” his is a criminal (unless the food was taken from him or her in the first place, but that is a different blog…). Demanding then taking for his pleasure what is not his makes him no different than Jeffrey Dahmer. There is no difference between a single robber in an alley putting a gun to your back and taking your wallet, a mob beating you because you are, a Jew, Black, White, Asian, a capitalist, a communist or a Presbyterian, an army confiscating your food, or a tyrant simply taking your home. As Tzu Ssu basically said, for a person to see a black dot and call it black but to see many black dots and call them white, well, that person’s eyes must be aflutter.

Take the generally recognized Right of freedom of speech. It demands nothing of anyone else. A flyer I post may be read, or not, at the will of the passersby. I can speak to my friends of whatever we feel like without imposing on anyone else. If our voices are too high and we are asked we can lower them to keep within the civilized norm. The Right to freedom of speech does not require the government to rifle through my things looking for anything I may have hidden from them. Freedom of speech actually requires the government to stifle it’s predilection to impose on it’s citizens.

Take the “right” of clothing. In order to have all people clothed in a society requires, as a prerequisite, a means to provide the clothing, for those that will divert that income to fun instead of needs, letting the system intercede to cloth them at the level that is appropriate for the society in which they live. This necessitates whatever system that is set up to gather substantial income, to pick up the slack for people who will see that it is in their self interest, to have others pay for their necessities and use their income for frivolity. Substantial Income, no matter the source, comes from the common font.

The common font is the national money supply. No matter whom the money the common supply of money for investment, demand or new supply cannot be made if it is taken from the common font. Someone might say, “the money is put back in in the purchasing of garments and the other money is used to promote a lighthearted lifestyle.” – That is absolutely true, that the money is put back in purchasing garments, but, the money is not best spent on allowing people to divert income from necessities, to enjoyment. It is better invested in efficient demand, investment or new supply. Money that is probably better, (more efficiently) spent is diverted to the egoist.

The efficiency of a dollar spent in an economy is important to the increasing standard of living. The less efficient a dollar is spent the less it improves GDP. If a dollar is sufficiently misspent it actually diminishes GDP. A dollar spent buying a slave is an example of money spent that actually diminishes GDP. Money spent to purchase the means of production is generally the most efficient money spent. Money spent to purchase the production of the machine earlier purchased is well spent in terms of efficiency, (as long as it meets an actual need).

It seems clear that what is a “right” and what is a Right can be determined in several ways; if it requires, enlarging the powers of government, someone else paying for it without their consent, forces another to cede an actual Right, makes the receiver of the right dependent, gives people stuff, requires government intercession into the lives of it’s citizens or violates civilized behavior then it is not a right at all, but a trap. If however it, gives people power over government, stifles governments negative predilections, gives people freedom of (action, thought and values), demands nothing of others but tolerance and/or protects people from persecution, they can be rightfully called, Human Rights.

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The US Debt Ceiling

Posted on July 10, 2011 by john

Dear Friends,

It seems to me that the US debt problem is secondary to the jobs problem. The continued loss of jobs has a tremendous effect on workers today but the effect magnifies over time. If you are a worker or know a worker this effects you deeply. The debt negotiations, while extremely important for mid term problems, are overwhelmed by the oceans of new red tape this administration, along with the last Congress passed, has effectively chained the economy and small business.

Regulation effects small business much more than large business. A small business owner has all he or she can handle keeping it from flying apart. Payroll, taxes, workers comp, accounts payable and accounts due are only a small fraction of the headaches of the small business owner. When this enterprising individual is also loaded up with new and changing regulation it effects this profits, time management and overall profitability. The regulatory ground literally moves beneath his or her feet. This is profoundly impacting the job gain and loss in the US. But the political rhetoric goes on. So here’s some…

President Obama claiming the Republicans are obstructing real negotiations on raising the debt ceiling is like a guy walking up to you in a crowd, then demanding your wallet, with the treat of shooting a random person in the crowd, you refuse and he shoots someone, then he charges you for obstructing him and causing the bystander to get shot. Obama holds the gun… Congress the wallet…

The Democrat argument about taxes on the rich ring hollow to me. What they really mean, is they want to raise taxes on those that are trying to get rich, not on those who are rich. The difference is that those who are rich derive their taxable income as trusts which are taxed at 15%, the people the Democrats are proposing raising taxes on, are the entrepreneurs of our society, taxes on their productive income are 33%, the administration wants them higher. How, may I ask, is punishing the job producer going to lower the unemployment rate? It is apparent the entrepreneur is the real enemy of this administration. With war being waged on them on two fronts.

The one thing everyone is talking about is taxes and spending but the more important one is regulation. Every time the Congress passed a two thousand page bill in the last Congress, it fluffed up into ten thousand or more pages of regulation, once it came out of Cass Sunstien’s office. Regulation is not threat to the uber rich. (The enemy according to Obama). They produce nothing, and to most of them there is a total disconnect from the US economy, as their investments are global and they often have assets of real value like gold as a backup. Usually held in banks not subject to US confiscation rules. But they uber rich have done very well under this administration while the entrepreneur has done poorly. The economic numbers lately have reflected this fact.

Stores and businesses that cater to the uber rich are extremely profitable in this business cycle. While stores and businesses that cater to the average person are struggling. So empirically we can say,, the rich are doing great under this administration, but those that are workers or people trying to run businesses are struggling. (unless their business caters to the rich).

“Now come on,” someone might argue. “why would this administration and the rich hate the entrepreneur?” I would argue that Joseph Schumpeter made a much better argument then I could ever muster. Boiled down it is: the entrepreneur is a threat to the established rich. He causes the established rich much fuss, the established rich must improve their products lest they go out of business, they must stay up late to keep up with the hungry entrepreneur, profits are lowered and in the end… he is usually supplanted by the entrepreneur.

So, armed with taxation and regulation, the established rich slam the door of prosperity shut behind them. ‘There is no sense anyone else becoming rich, to want to do so is to be greedy, but to be born rich is to simply live in the state of affairs as they are.” This self serving logic is the reason the unemployment rate is so high.

But most of us are workers. We have the political power in the form of the suffrage. We suffer those who rule us to rule us. If we want different results maybe it is time to try different tactics. Tax and spend has always worked… to keep the established rich, well rich, but never to expand an economy. Maybe raising taxes, spending more and increasing regulation may not help with the job numbers… but don’t we hate those rich people. Er. Not the really rich, only the guy who gives us our job…

By The way, I just read that the government is looking into new regulation on the US chemical industry. I expect a few thousand pages or so of new regulation will ramp up competition and hiring in that industry as well…

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Self Interested Voting

Posted on July 7, 2011 by john

Dear Friends,

It seems to me that what the people of the Middle East need, far more than democracy, (if what they want is liberty), is a functional market system. Not only the Middle East but all over the World. People are better served to have a functional market system than to be given democracy. It is like giving someone with no experience… a loaded gun. If you grew up with a gun in your home then you are familiar with safe gun handling but if you have never held a gun it is pretty dangerous.

Democracy is the same way. Safe in hands that are used to it but dangerous in hands that are unskilled or simply negligent. Capitalism trains people to handle democracy safely. If you grew up in a capitalist society and have had access to historical information, you know that to vote for the communist party is absurd and patently not in your personal interests or the interests of society.

But if you grew up in tribal society and lived by subsistence farming with no knowledge of the historical precedents then a vote for the communist party seems to be a self interested vote. Not much different from scratching your back with a loaded gun… it may go off and blow out the back of your head, it may go of and blast a passerby or it may not go off at all, but the best thing that can happen, is you get an itch scratched…

When a person lives in a market based society he or she learns at an early age to weigh costs and benefits. This type of pragmatic philosophy is emblematic of a capitalist mindset. The cost of a given action are weighed against the potential benefits. People who never lived under such a system have a totally different means of weighing up actions. What is in the individual’s interests is the same as the tribal interests there is no distinction made.

To live in a democratic republic an enlightened citizen must be pragmatic. To vote for the lunatic fringe is to pull society towards lunacy. History shows us unequivocally how that turns out. Only free market capitalism has made people free. Free by also giving us all a measure of independence.

Independence! An anti capitalist might yell. You are dependent on the market for your goods, food, clothing, even water and waste removal. – But is not everyone at every time and every where in exactly the same circumstance? Even the subsistence farmer is dependent for his needles, dishes, clothes etc? No one can produce everything he or she consumes unless he or she is willing to retire to a stone age existence.

The worker in a capitalist society is independent because we earn the money we spend. We add our productive capacity to the aggregate and we are compensated with money. That money can be then used to purchase our needs and wants. The person who gets his or her needs met by someone else’s labor is dependent. Dependent, on that person or people, but what if the dependent’s supporters loose their ability to work for their masters. If that happens the dependent hopes to find another supporter else all is lost.

If that supporter is a tribe then the dependent supports the tribe even when it is not in his or the societies best interest to do so. The Hutu massacre of the Tutsis would not have been possible had not this been the case. People have their allegiances where they believe their interests lay. Today in Libya we have the international community getting into what is largely a tribal war. Attacking the only Middle East tyrant who gave up nuclear weapons. Interesting incentive there don’t you think?

Ataturk had the right idea, institute a market based liberal society, and freedom will follow. No matter that he was a tyrant. He considered the World as it was an astutely summed up the reason his people were backwards. He set himself to rectify the situation. It is unfortunate that his heirs, modern Turks, lack the wisdom he showed and are turning from free markets and liberty towards theocratic socialism and theocratic tyranny.

So I guess even if you grew up in a market based society it is no certainty that you will not willingly vote in tyranny. The sirens song of tyranny is lovely as it is self destructive. It is only those that are not negligent in their duty to vote and studious in their duty to vote well that protect the rights of those the are not. If too few do, tyranny is the wages, for us and our children.

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American Societal Myth

Posted on July 4, 2011 by john

Dear Friends,

It seems to me that the only Societal Myth, that is not in fact a myth, is the US Societal Myth. A Societal Myth is an underlying foundational ethos or philosophy that is a primary motivator of the individual to transmit the society largely intact to the next generation, saving and protecting the few gems of wisdom the society has got. It is called myth in that it is mythical in scope, i.e. the Roman, death in battle is the most glorious or the Mongol’s invincibility myth, that once shattered led to the total collapse of the society. Of them all, it is only the US Societal Myth, that is mythical in scope but factual in function to philosophy. The original US Societal Myth was, of course, “Liberty of the individual is the best means to societal prosperity; limited government being the means to liberty of the Individual.”

As I said “was,” the new Societal Myth, that a faction of the Elite are trying to supplant the original with is, “only government can guarantee just distribution of wealth.” I hear it every time I listen to NPR. They keep up the drumbeat that government is the best corrective for every situation. The thrust of every piece is how the Democrats are correct and the Republicans are wrong. No doubt excellent journalism in the eyes of Politico or Media matters, the “unbiased” arbiters… Makes me wonder what NPR stands for National Progressive Radio maybe?

We can clearly understand that limited government leading to individual liberty has led to the greatest standard of living the World has ever seen. No society on the face of the planet, in the history of mankind, has ever had as a problem of the poor, obesity. It is unheard of in the annuls of time that the poor in a society must suffer the ill health effects of obesity. Yet in the US today obesity is a major problem facing the poor.

Some would argue that this is because of the modern welfare state. That the goods of society would not be so “fairly” distributed if not for the power of the welfare state to redistribute wealth. – But if not for the tremendous advances in the productive capacity of man, (due to the market system), the ability of so many to remain idle would be impossible without mass starvation. It is only in the fact that the modern market system has so raised the productive capacity of the individual that society is able to support a large and growing faction of the people under it’s care allowing them to remain indigent and obese.

Limited government giving rise to individual liberty create the conditions for the market system to function. By engaging capitalism or the market system, individuals see a very human need and fulfill it. By doing so they earn a living or get rich. As the large needs are met, the smaller needs become more pressing, and someone steps in to help us meet them as well. Prior to the invention of the automatic washing machine people didn’t change their cloths daily it was at least weekly. The invention of the washing machine didn’t actually lead to less work for the housewife of the time but to the better hygiene of the general populace.

The advantages to the people and to society when the societal Myth is that liberty is the best means to universal opulence can be seen everywhere. In the need for diversion the market system has provided us with every form of diversion possible given our level of technology. From remote controlled model dirigibles to Dungeons and Dragons online the options available to the individual are endless. Actual wealth is created thereby.

The options for enlightenment abount under limited government. The great works of the ancient World are freely available online, as are the works from the Enlightenment and Aquinas, through Bastiat to Hayak and Alinski. The individual, allowed his or her liberty, has at his or her disposal the ability to become a sage or a villain, it is only at his or her discretion. The market system makes available the means to satisfy every human need be it noble or foul. Therefore the US Societal Myth is in fact true in that it leads to universal opulence and actual liberty of the individual.

But if the Societal Myth of the US is changed then what can we logically expect? What has happened before when power has been amassed in government is the first place to look. Some examples are, the Bolshevik revolution of 1917, the National Socialist Workers Party election victory of 1932, Mugabe’s revolutionary victory or the Khmer rouge in Cambodia. History is unambiguous about the results of government, (politics), being the adjudicator of the just distribution of the goods of society. History is also unambiguous about the results of individual liberty from limited government…

So, why would anyone fall into the trap of government arbitrating the just distribution of the goods of society? Especially when the original Societal Myth has been so fruitful.

But moreover, wouldn’t it behoove countries and societies to change to the American Societal Myth, and reap the rewards for themselves?

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Greece and Their Spending

Posted on June 30, 2011 by john

Dear Friends,

It seems to me that when governments get into predicaments like Greece they are acting very much like alcoholics. They display the same behaviors and attitudes. The descent path is even similar. It’s funny how macro economic phenomenon can mimic individual human behaviors. I suppose this is a synchronicity that arises from the fact that macro economics is at heart a complex mechanism and human behavior is also a complex mechanism. Perhaps if the analogy holds up we can take lessons from the arena of human behavior modification and apply it to the Greek situation.

The “alcohol” that a government gets addicted to is government spending. There are several reasons spending gets out of control in modern governments most of them involve some aspect of welfare state capitalism. The Greek situation is no different. The Greek government Elite have a decided anti capitalist bent and it is born out by the fact that 40% of the economy of Greece is government controlled. This profound level of inefficiency, coupled with insane government benefits for the indigent, wed to form a perfect union of uncontrollable government spending and shrinking GDP.

There is an entitled mentality that is epidemic in Greece. I figure the Greeks have decided to follow the example of Thrasymachus. This is again born out by the fact that there are demonstrations in Greece at any hint of a diminishment of government largess. (By the way, I would never own a McDonald’s franchise in any country other than the US, apparently rioters hate cheap food served quickly). I have no idea what logical point the general strikers could be making…

Maybe; lets have a total and catastrophic collapse of our economy? Hunger and starvation for everyone? Crash smash, bus crush, we want to feel jack boots on us? Where do the rioters believe the money is going to come from? Or do they think they are entitled to the labor of Germans?

I would say at this point. Greece is the guy who was keeping it together at work. but now he is screwing up badly. Late for work, drunk, and is a drag on moral, he is dancing with termination. Before, everyone loved him, always drunk and happy. Giving away money and buying lunch like there was no tomorrow. And now there really is no tomorrow unless he gets sober. But he is MAD. Mad that anyone would have a problem with his drinking. Even as he goes to the bathroom and pulls a flask from the toilet tank. “What is wrong with them!” Thinks the alcoholic who’s problem has moved up to the next level.

Soon he is out of work and soon Greece will be bankrupt. Even as the people riot in the streets and the government “invests” in “infrastructure.” As I have written before, even if a benevolent alien space people landed on Earth and gave he government of Greece the equivalent of their total debt today, every year for ever, adjusted for inflation, Greece would be in default eventually, and I bet sooner rather than later. Then there would be rioting in the streets over the greediness of those Aliens!!!!

What would a loving family do for a person who has such a powerful drinking problem? They would intervene. On the surface that is what the European Union seems to be doing. But, is giving a drunk keg in his basement… really helping? I don’t think so and I bet most other people don’t either. But as the problem grows bigger and bigger and more and more money is thrown at he problem, when the eventual fall comes, it will cross State lines. Growing in magnitude every time Greece is bailed out.

So here we are, Greece is reeking of liquor and getting bailed out again. They promise not to stop at the bar on the way home… We’ll see. The term kicking the can down the road is used to the point of becoming trite. I think a better term would be enabling.

Unfortunately Greece is not the only drunk at work…

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Political Standards

Posted on June 26, 2011 by john

Dear Friends,

It seems to me that if one set of standards is good two must be better. Holding one political philosophy to a much different standard of personal conduct is one example. Holding the different political philosophies to multiple standards in rhetoric is another example, but having two standards of political attack depending if the person is pro capitalist or anti capitalist is the best example. Two sets of standards must be better because it encourages fair debate which affects all of our rights and prosperity.

Michele Bachman is a pro capitalist politician who is credited with multiple gaffs. One is that she once said that there are members of Congress who hold anti American views. She has been roundly criticized for it and is called a nut by the unbiased media for it.

It is empirically true that; there are Congressmen and women who hold the US Constitution in absolute disdain. Many openly claim as much. Many members of the US Congress are anti capitalists and avow it. There are members of the US Congress who believe that it is wrong the US is a superpower and seek to lower the status of the US to something less then a “superpower.” It is also patently true that anyone who holds these beliefs are anti American to the core. To openly admit to be an anti capitalist who thinks the Constitution is an impediment and seeks to lower the power and status of the US is obviously an anti American Congressman or woman. So Congresswoman Bachman must be called a nut to protect her political adversaries from themselves.

But no unbiased media person holds that an anti capitalist, who is running for the presidency should have a grip on such arcane knowledge as… how many States comprise the US. This is such esoteric knowledge about America, that to hold an anti capitalist politician who says there are 57 States in the US, (instead of 50), as being a nut for not knowing this, would be wrong. This is why there needs to be two sets of standards. To have only one and hold every politician to it is patently unfair. Especially to those who are so ignorant they do not know how many States are in the Union, because how can someone so obviously stupid, thrive under an honest system with only one standard everyone is held to?

Another reason why having two sets of standards is important, is to foster rigorous political debate. Imagine if pro capitalists were given the free reign to place the vitriolic rhetoric in political ads the anti capitalists are. That would be as unfair as possible. How can you hold People who regard the US as evil to the same standard you hold pro American politicians? Tossing an old woman off a cliff is acceptable political rhetoric because it is produced by anti capitalist politicians. But if a pro capitalist politician made a political ad showing an anti capitalist tossing a farmer onto the street because he couldn’t pay his taxes or axing workers because of regulation… that would be unconscionable.

Take the debate about the US national debt. An apt analogy is a mini van racing at a stone wall. The van is doing 100MPH at the wall. Everyone in the van sees the wall approaching fast but no one can see exactly how far away it is. So a debate breaks out. The debate is whether the driver, (the political Elite) should hold the accelerator to the floor or lift up a tiny bit. Those who argue to lift the foot a bit are vilified as hate mongers who want grandma to go without her social security check. Those that want to hold the peddle firmly to the floor are depicted as caring for grandma, children and little dogs.

No matter because, when the mini van hit’s the wall and everyone (except the Elite) are killed or maimed, the call will go out that it was the fault of those that wanted to lift the foot a bit off the accelerator. Not those that held it to the floor and steered at the wall. But the rhetoric will not matter because grandma will not get her check anymore. She will probably starve. Universal nationalized healthcare will no longer be dispersed because no one in their right mind will buy US bonds to pay for it. The economy will collapse because there will be no capital available for investment in plant and equipment, so the unemployment rate will necessarily skyrocket, along with the costs of everything due to the devaluation of the US dollar.

So you see, it is important that we have at least two sets of standards. If we only had one then those that seek to destroy the US Constitution and all capitalism would have a much harder time of it. Multiple standards allows the corrupt Elite to escape any meaningful scrutiny of their actions. But most importantly it is all important to hold those that are pro capitalists to a much different standard, else the logic of their position might be actually examined by the people at large.

Therefore anyone who is anti capitalist and anti American must agree… Two sets of standards are much better than one. There is no better way to lower the lot of Mankind. (If that is your goal).

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My Confession

Posted on June 23, 2011 by john

Dear Friends,

It seems to me that there can be an effective ad homonym attack made on me and my motives in writing my blogs. The assault could be that I stand to gain materially if the ideas that I write about are implemented. Unfortunately this is true. I do stand to gain if the ideas that I write about are implemented. Lets look further into it…

Take for example if the NUMA were implemented in some country other than the one I live in. The people of that country would enjoy genuine liberty because their government would be actually yoked. The Elite would be harnessed to the interests of the society as a whole instead of a faction only. This would indirectly benefit me in that if the tyranny of the World’s people is lowered then, as a member of the human race, I stand to gain as well. So in this example I can be vilified.

Another example is if Capitalist Social Security were implemented in some other country than that which I live. The people in that country would start building societal/generational wealth. The prosperity and economic stability that such a system would provide would boost the economy of that country. As the years go on and the fund builds the amount of money available for starting a firm would grow to be enormous. This would allow large projects to be initiated locally with local resources. The increase in economic activity this would generate would directly benefit every one ion the planet and I live on the planet…

As the economy of any country is improved World aggregate demand is driven up. As World aggregate demand is driven up supply must necessarily be driven up to meet the demand. This is the basis of the aggregate supply aggregate demand model of macro economics. So even in this I would directly benefit. Again opening me to criticism that all I do is try to get people to implement ideas that are actually in my self interest.

Woe to me if regulation was periodically washed of redundant rules. This would again drive up economic activity in any country that did it. Again opening me to the criticism that I write in my self interest only. Regulations being as pernicious as they are a source of friction.

Greece being the poster child of stupid regulation. When regulation in a country becomes so onerous that economic activity must cease people go around it. When they do, as they must, they become more and more egoistic and less and less individualistic. This is the fundamental problem in Greece. The corruption in the society is manifested in endemic tax evasion, scoff law behavior, etc… All because regulation is out of control. The first step to repairing the problem is to overhaul regulation in Greece. Until that is done the Greek sovereign debt crisis will be combed over with less and less hair.

So here is another example of me writing in my own self interest! If the Greek sovereign debt crisis is solved I stand to personally gain money! Yes it is true. If the Greek sovereign debt crisis is actually resolved the US stock market would rise dramatically. I am invested in the US stock market so I stand to materially gain if my idea is implemented.

Never mind if my ideas are implemented in my own country! The added prosperity for the entire country would go up. I am a member of that society, so I would gain from it, directly and materially. Damming evidence to be sure.

Even my posterity would directly benefit from the implementation of my ideas. So even in this I have potentially corrupt motives. To improve the lives of my family and extended family. But even the lives of people that I know and even friends would be better off. You see; there is no bottom to my corrupt motives.

So in the glaring light of scrutiny, of my motivations in writing this blog and founding this party, I must be found guilty. Yes I admit it. I am guilty of wanting to personally benefit from improving the lot of Mankind. It is unfortunately true, that if my ideas are implemented the lot of humanity will improve, and I being a human will have my personal lot improved as well. I beg your forgiveness and understanding.

But the blogs will continue…

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