Of Hostile Invasions and Their Burdens

February 25, 2022 1 Comment

Photo by Nadiia Ganzhyi on Unsplash

It is hard to see what Russians gain from their government’s invasion of its neighbors.  Certainly neither Russian nor Ukrainian soldiers benefit.  That, however, is also true of the people of both nations, now and in the days to come.  How are the leaders of Russia, by recourse to bloody war, serving the people whom they govern?

Vladimir Putin apparently forgot why a prior Russian President, Boris Yeltsin, took Russia out of the Union of Soviet Socialist Republics.  Yeltsin knew, as even Soviet boss Mikhail Gorbachev knew, that the rest of the USSR was a burden and economic drain on Russia.  Supporting and controlling the other Socialist Republics cost more than they returned.  So Yeltsin did what had been until then unthinkable (or unspeakable)—until he did it.  As President of the Russian Soviet Federative Socialist Republic, Yeltsin considered what was best for the people of Russia and exercised the nation’s right under the Soviet Constitution to withdraw from the USSR.  It did not take Gorbachev long to recognize that he could do little about it.  Friendless and no longer fed by Russia, the USSR peacefully dissolved.

Today’s Russian economy is noticeably better than the heavy Soviet socialism.  Yet it continues to strain under weighty government control, corruption, and crony favoritism.  Ask the people in far eastern Ukraine—the part dominated by Russia for the last several years—how well Russian economic policies and promises are working for them?  They will not tell you, because they are not allowed to say.  Ask their neighboring Russians how much they have benefited from Russian control of those eastern provinces.  Take your answer from the looks on their faces.

Are those eastern Ukrainian provinces, with their boarded up windows, idle workplaces, unrepaired buildings and streets, and shortages of much of everything, a model for what Putin intends for the rest of Ukraine?  Ukraine has its economic troubles and corruption and cronyism, too, but the Ukrainians who have voted with their feet show why they have been leaving the Russian “liberated zones” and moving west.

Whatever the Russian government may declare to be success by its invasion, I cannot but think that it will be for naught.  Any bloody ground they seize, any unwilling people they capture, will be a constant drain on Russia, indeed the more the worse.  That is the hostile invaders’ burden and curse. 

After so many are killed and so much is destroyed, how long will Russians think that their government’s adventure was worth it?  What weights will Putin’s escapade be laying upon his people to carry? The longer it goes on, the worse it gets for all concerned.  From the perspective of the people of Russia and Ukraine, I do not see how this ends well.

Filed under international relations, leadership, Russia, socialism, Soviet Union, statism, Ukraine, war Tagged with , , , , , , ,

Of Demagogues and Ideologues

September 29, 2021 Leave a comment

Photo by Natalya Letunova on Unsplash

The demagogue has ever been the bane of democracies.  By definition, democracies rest upon the choices of the people.  When wisdom guides, democracies prosper.  As history shows, wisdom does not always prevail, and it never does when demagogues do.  Since the demagogue seeks his own power by taking power from others, once the people give him their voice they will be hard-pressed to get their power back; the democracy deteriorates into dictatorship, invoked in the name but never the reality of the rights of the people.

So I wrote some time ago.  Experience since then has reinforced the points I raised.  I wish that it had not, as such experience is painful.

On the early side of Summer an insightful essay in the June 2021 edition of The New Criterion illuminated the companion to the demagogue, the ideologue (see, David Guaspari, “Ideologists amok”).  Sometimes they can be the same person, as ideologues frequently employ demagoguery.

Reflecting on demagogues and ideologues, I more recently imagined a conversation with someone who displays characteristics of such a one.  As with a similar conversation of which I wrote in the past, I refer to my interlocutor as Burning Cynders, to preserve the fanciful nature.  I will leave it to you to imagine whether this reminds you of anyone.  It went something like this.

WAA:  I understand that you consider the United States to be a horribly oppressive place.

Cynders:  Horribly oppressive, and practically everyone is a victim.

WAA:  How can everyone be a victim?  If there are victims, there must be oppressors.

Cynders:  There are, but they are victims, too.  The oppression is systemic, that we all inherited.  Even the victims help maintain it.  I pause to allow you to grasp the vastness of the subject.

WAA:  Thank you.  Does that mean that you help to perpetuate the system, too?

Cynders:  I did, until I figured it out.  Now that I understand, I am trying to liberate people from it. 

WAA:  Are the millions of people immigrating to the United States coming here to be liberated from this oppression?

Cynders:  They are coming here because they know that I and those who are with me are working to throw off the oppression.

WAA:  Like why the Founders first came here.  I thought that people want to come to America for a freer, more prosperous life.  Which problems did they miss?

Cynders:  You don’t understand; your thought is distorted by the system.  No single problem can be solved without solving all problems.  You are part of the problem.

WAA:  That might be debatable.  How about we discuss what this land offers that attracts so many people.

Cynders:  The debate is over.  I’m here to teach you.  I know why they are coming.  They sense that I am working to throw off the oppression, to change the system, to change America.  Traumatized by their journey, the trauma raises their consciousness to the need for transformation.

WAA:  What key reforms do you have in mind?

Cynders:  I’m not interested in reform.  You cannot reform this system.  It is fundamentally corrupt and oppressive.  It must be torn down and built anew.  There will be a new system, without oppressors or oppressed.

WAA:  It seems to me there was a lot of tearing down in the twentieth century by the Lenins, Stalins, Hitlers, the Mussolinis, the Maos, Pol Pots, and many others.  History shows us the ruins, but I don’t see the end of oppression in the experiments in bread-rationing socialism.

Cynders:  There were bold efforts, but they didn’t try hard enough or long enough.  As I said, oppression is in the whole system.  It’s in our culture, our religion, our laws, our families, our healthcare, our schools, in the language we use. 

WAA:  What will this new world look like? 

Cynders:  No one knows.  No one can tell you.  It may take generations to break down and build right.  This generation may not see the fruits of its work; still, it will bless future generations.  But can there be any sacrifice too great for a world without any oppression, with no victims, no oppressors?

WAA:  Sounds like you are out to alter the very nature of humanity.

Cynders:  You are not as hopeless as I feared.  Maybe you can be educated yet.

I pause the conversation there.  Time to play with my grandsons.

Filed under America, communism, demagoguery, hubris, immigration, socialism, statism, tyranny

Of Platitudes and Political Attitudes

October 17, 2020 Leave a comment

Photo by Tim Mossholder on Unsplash

I am naturally optimistic.  So you will understand that I rejoiced to see several of my friendly neighbors, who sometimes disagree with me politically, place signs in their yards supporting positions consistent with the views of free market liberty-loving constitutionalists like myself.  That would appear to bode well for candidates in this election who also tend to trust markets, liberty, and constitutional rights.

I will confess that to some the signs might read like a public creed of platitudes.  Perhaps they are intended to present an impressionist attitude of some kind.  Here are the phrases, written in bumper sticker style.  See what you think.

To begin with, who could argue with the obvious truth that “Black Lives Matter”?  I personally know no one who does not naturally embrace the idea.  I do notice that those who in published media lionize the eponymous organization laying claim to the title reveal little material interest in the lives of black police officers, black small business owners, or unborn black children.  That may be why the lady running for Congress in Baltimore’s 7th Congressional District emphasizes that “all black lives matter.”

Next on the signs is the phrase, “No Human Is Illegal.”  That is surely the case in the United States as long as it remains a nation of law and order.  Things that some people do are illegal, but enshrined in the Declaration of Independence and the Constitution is the concept of individual worth.  The notion that people themselves can be illegal is reserved for socialist governments and monarchies, where large portions of the population can find themselves illegal.  That is a crucial reason why the American founders broke from the monarchy and why applying socialism here terrorizes lovers of liberty.

Third on the signs is the bromide, “Love Is Love.”  Surely it is.  Perhaps it appears because love is the core principle of many religions, such as Christianity, which rests on two commandments (also taught in the Old Testament):  Love God, and love your neighbor as yourself.  As Jesus taught, on these rest “all the law and the prophets.” (Matthew 22:40)  Jesus also taught that with the breakdown of law and order, “the love of many shall wax cold.” (Matthew 24:12)  I am thrilled that churches are being allowed to open again so that they might continue to teach their doctrine of love.

The phrase, “Women’s Rights Are Human Rights,” is given fourth billing on the signs.  That is absolutely true, even if it is violated in many parts of the world.  I am reminded, by my neighbors who have come to the United States from such nations where women’s rights are routinely violated, why I am grateful that my daughters and granddaughters live in a country where their rights are real and protected.

I am grateful that the signs include what is in danger of becoming a meaningless cliché, “Science Is Real.”  Our nation was midwifed by the enlightenment, a rejection of the medieval notion that scientific verities were determined by government or ecclesiastical agencies and votes of councils.  We are all indebted to courageous scientists who stood alone and refused to accept any scientific debate as “final,” who asked more questions that often led to better answers that have made mankind healthier, wealthier, and more flourishing.  May our nation of freedom encourage the continuation of that story.

The penultimate phrase on the signs is the prosaic declaration, “Water Is Life.”  I remember Barry Goldwater, Senator from Arizona, explaining to a skeptical Senate the importance of water rights.  There would appear to be a longtime tug of war in our government agencies about the importance of water management.  As with many important issues, relying upon our federal system of state and national interaction is most likely to give us the best management answers.  National mandates are likely to leave local communities dry.

The final phrase on the signs is the catchall, “Injustice Anywhere Is a Threat to Justice Everywhere.”  An unlimited aspiration, mankind has wrestled with it from the earliest times.  As this is to be an ongoing struggle of which we should not tire, the question is how best to proceed?  Our founders asked that question.  They recognized that arbitrary governments were the worst offenders.  The structure of liberty they established has fostered the multitudinous avenues for virtue that have not ceased to make progress in combating injustice.

I cheer such display of worthy attitudes of support for our nation’s growth in liberty.

By the way, there is a website where you may go to purchase these signs, $10 each.  Free enterprise is wonderful.

Filed under charity, Constitution, Declaration of Independence, freedom, individual worth, justice, markets, rights, rule of law, science, socialism Tagged with , , , , , , , , , ,

Of Caricatures and Reality

February 19, 2016 1 Comment

Dirt&Grass

Photo Credit:  Elizabeth Lies

It was a long commute home today.  I think that most people are all out of vacation days, and perhaps saving up what they have for the Easter holidays.  Almost everyone went to work, and a lot of them chose to go home at the same time and on the same roads as I.  In the slow motion on the expressway there was ample time to think and muse.

Among my musings, and considering the ongoing presidential campaign, I imagined a conversation with one of the leading Democrat candidates.  I will refer to the candidate as Burning Cynders, to preserve anonymity.  I will leave it to you to imagine whether this reminds you of anyone.

WAA:  I understand that you want to buy votes with my money.

Cynders:  I don’t buy votes.  That’s what my opponents do.

WAA:  You just promise them free stuff, like free college tuition and free healthcare, to be paid for out of my pocket.

Cynders:  Everyone has a right to an education.

WAA:  And apparently you claim the right to pick my pocket to pay for it.  Sounds like you have learned how to buy votes with other people’s money.

Cynders:  It’s called leadership.  Someone has to stand up for people who are not as fortunate as you are.

WAA:  You don’t make me feel fortunate at all.

Cynders:  You are fortunate to be able to help your fellow man.

WAA:  You mean, I am fortunate to have you help yourself to what I have earned so that you can give it to your cronies.

Cynders:  Giving to cronies is what my opponents do.  I want to give the money to young people so that they can get an education.

WAA:  You, personally, are going to give the money to each of the wannabe students?  You will be very busy.  It’s a big country.  You may find a lot of hands stretched out.

Cynders:  I certainly hope so.  And I will have plenty of people who will help me, who will administer the programs, people who believe in what I am trying to do.

WAA:  That’s wonderful.  So you will give the money to them, and they will make sure that some of it gets to the students to pay for their free education.  Sounds like the happy marriage of cronyism and vote buying.

Cynders:  No, these are real patriots, people who really understand what America is all about.

WAA:  America is about free handouts?  And taxing successful people to pay you and your cronies?  Are the professors and school administrators working for free to help provide this free college tuition?

Cynders:  Of course not.  We need the best to teach our children.  They deserve the best, and we need to invest in the best.

WAA:  But I thought that you said that education is a right.  How can these professors make merchandise of the students and their rights by insisting on being paid to honor those rights?

Cynders:  The professors have a right to be paid, and paid commensurate with their ability and skill and knowledge.

WAA:  And commensurate with their connection to you and your plan.  I apparently have no right, except to let you pick my pocket to pay them so generously.  Sounds like more of your cronies.  I could never vote for you on such a plan.

Cynders:  You don’t have to vote for me.  You just need to work and make a lot of money so that I can use it to . . .

WAA:  To buy the votes of the people to whom you want to give all the free stuff.

Some may think that this conversation is a caricature, but it is hard to make a caricature of someone who is himself a caricature.  This is closer to reality than what emanates from such presidential candidates.

As I said, this conversation formed in my head as I was in traffic on my way home, home from Washington, D.C.  All around me were BMWs, Mercedes, Infinitis, Lexus, Acuras, and more than the occasional Jaguar and Porsche.  These are the people, living in what have recently become some of the wealthiest counties in America.  These are the people who would be paid by Burning Cynders to administer his free programs.

Filed under cronyism, demagoguery, elections, politics, rights, socialism, taxes, Uncategorized Tagged with , , , , ,

Of Warming Planets and Cooling Economies

May 31, 2015 Leave a comment

Did you notice when the Obama Administration paused in its ballyhooing about global warming? President Obama and his officials had been busily hustling the warming of the planet and its attendant disasters—which they insist can only be fixed by increasing government control of our lives, from birthing to breathing. The President was in Florida, blaming the future hurricane season—which has not yet happened—on global warming. “The best climate scientists in the world are telling us that extreme weather events like hurricanes are likely to become more powerful.” What President Obama did not mention—anywhere in his speech at the National Hurricane Center in Miami—was that the scientists predicted a “below-normal” hurricane season for 2015. Was that mercy because of or in spite of global warming?

Perhaps we should not blame the President for leaving that little item of information out, since for each of the last several years the cited “best climate scientists” (whoever they are) had predicted extraordinarily active and destructive hurricane seasons. Since each season turned out to be unusually mild, the official forecasters have now changed their tune, putting themselves solidly in-sync with recent trends. Do not put yourself at risk with a long investment on it either way.

As for global warming, however, the President and those who say they agree with him insist that the debate is over (in either science or a free nation can the debate ever really be over?), meaning that it is unacceptable to disagree with them. If you can’t say something calamitous, then don’t say anything at all.

Then, suddenly and quite unexpectedly, the global warming talk stopped. There was a mercifully, if brief, moratorium on warming warnings. Instead of predicted calamity, a real calamity was at hand that required some ‘splaining. The most recent report on the nation’s economic growth was announced. Not only had growth slowed, as measured by government number crunchers, the economy had actually declined in the first 3 months of 2015. That seemed to come as a surprise to no one who is either without a job or working in a job that is something less than the job held before 2009. But it was unwelcome news to the Administration that has been working on economic revival for going on seven years.

Instead of global warming, the Administration needed cold weather to blame for the decline in economic activity during January, February, and March. The lead official White House explanative was, “harsh winter weather”. I did not make this up, and you are not supposed to notice how convenient White House excuses are. It was better that global warming talk was cooled for a moment lest people recognize the contradictions in the official propaganda and begin to wonder whether White House policies were working.

Winter weather is not a novel excuse for failed government programs. The old Soviet Union blamed repeated crop failures on harsh winters (in Russia? Who knew?). The similarity in excuses used by the Obama White House and the Soviet Politburo is not accidental. Central planners can survive only if they have at the ready a list of excuses of things beyond their control. The list could be a long one, since in the end there is not very much about the economy that central planners can control, if control means making things go they way intended. To quote the character Jayne Cobb, in Serenity, “what you plan and what takes place ain’t ever been exactly similar.”

Filed under Barack Obama, communism, demagoguery, economic growth, economics, environmentalism, free speech, freedom, future, global warming, government, jobs, recession, Russia, science, socialism, Soviet Union, statism Tagged with , , , , , , , , , , , , , ,

Of the Federal Reserve and Taking from Savers

April 4, 2015 Leave a comment

Ben Bernanke has a blog. You can find it here, courtesy of the Brookings Institution. Of course, what would the former Chairman of the Federal Reserve Board write about, other than decisions he made as Chairman, and why people who take issue with them are wrong? One would expect no less, and reading the light he sheds on previous decisions—offered in Fedspspeak at the time that they were made—is surely the chief lure of Ben Bernanke’s blog. Allowed to communicate in regular English, not worried about how Fed Watchers might construe or misconstrue everything he says and does not say, Ben is more able to speak his mind clearly.

The former Fed Head chose for his first blog post a vigorous defense of price controls on interest rates. In the process Bernanke demonstrates the assumption that we are safe letting government economists control the economy—an assumption continually disproven by real-world experience.

In fact, as a result of entrusting much of our economic freedom in the United States to government economists, we do not have a free market for interest rates, at least not short term rates, and we pay for that every day. The Federal Reserve sets short term rates in this country, and so far the market has had zero success in moving rates from the near zero interest rate range that the Federal Reserve has decreed and maintained for some years. Keep that in mind the next time you wonder why you earned $1.73 in interest on your savings account last year.

If you borrow money—when you can get a loan—then you might consider yourself lucky. The biggest borrower of all, in the whole world, is the United States Government. Uncle Sam must be feeling very lucky, because he is paying comparatively little on the $18 trillion of U.S. Government debt, increased by another half trillion dollars last year.

If you save money, though, especially for your retirement—and if you have to live off of those savings in retirement—you might not feel so fortunate. By keeping interest rates lower than the market would set them, the Federal Reserve is daily transferring many billions of dollars from savers to the Federal Government. And you thought that only the IRS takes your money.

Let me illustrate with an example. For the last three months of 2014, all of the banks in the United States, all of them together, paid no more than $11 billion to people who had their money in banks. Is that a lot of money? It depends. When that is the interest paid on nearly $12 trillion in deposits, the answer is, no, that is not very much money at all.

Do not blame the banks, though. They are in the saving and lending business, too. Try as they might, with the Federal Reserve controlling interest rates, banks could not pay any more interest to depositors. If a bank did, it would have more money than it could lend as people shifted their deposits where they could get a better return. To pay interest on deposits, banks cannot get much more interest from the loans they make than the Federal Reserve price controls allow, and many relatively good loans present more repayment risk (banks do need to be paid back) than those low interest rates would cover. Low interest earned means low interest paid.

All the banks in the nation have a little over $15 trillion in loans and other assets, on which they earned last year about the same amount as they did five years ago, when they had $2 trillion less in loans and other assets. In an environment of low interest rates, banks have to concentrate their lending on the safest borrowers.

That is how the low interest rates controlled by the Federal Reserve are oppressing the economy. When savers and lenders can only get a few cents on a hundred dollars lent, they place their money with the very safest of borrowers, since they cannot afford to take any losses. Someone who has a really good idea—which like all good ideas may or may not succeed the first time—has trouble getting the money to give his idea a go and hire people to help him try.

Ben Bernanke claims that the Federal Reserve’s near zero interest rate policy—called ZIRP—has been stimulating the economy. If so, where is the stimulation? Why has the recovery been so weak? There has been stimulus, but it has gone primarily to support Federal Government spending and to pay down the debt of the largest and healthiest businesses that can trade in their higher cost loans for the Federal Reserve’s lending bargains. The biggest increases in bank loans have been in Treasury debt and deposits at the Federal Reserve.

Ben Bernanke, in his blog, reminds me of the story of the lawyer representing a client charged with stealing a car and returning it damaged. The lawyer says, first, that his client never had the car; second, that he returned it in perfect condition; and, third, that it was already irreparably damaged when his client took it.

Bernanke begins by explaining that the Federal Reserve does not set interest rates, or that at most its ability to do so is only “transitory and limited.” He pleads that the Fed can only affect short term rates “in the short run.” He does not explain how seven years of ZIRP can be considered the short run. Then he progresses in his blog to describe how the Federal Reserve “influences” interest rates and then how the “Fed’s actions determine” interest rates. His argument, after denying that the Fed can set rates, is that the economy has been so weak that the Fed has had to lower interest rates for the nation’s own good. Bernanke next argues that the economy has remained so troubled (he does not say, despite ZIRP) that the Federal Reserve has had no choice but to continue with ZIRP, concluding that it is the economy after all the forces the Fed to do what it does. Do not blame the Fed Governors, they had no choice but to continue doing what they cannot do because it has not done any good so far. I think you need to have a Ph.D. in economics to make such an argument.

We cannot do it, we did what we had to do, and since it has not helped we cannot stop. I wonder how he reacted to those kind of explanations from his teenagers. Any responsible parent would reply, no, you cannot have the car, give me back the keys.

Filed under banking, economic growth, economics, Federal Reserve, government, interest rates, markets, personal finance, recession, socialism, statism, Treasury debt Tagged with , , , , , , , , , , ,

Of the Soviet Union and the European Union

April 8, 2014 Leave a comment

Do you remember when the Soviet Union disappeared? Do you recall how and why? I hope that Vladimir Putin does. An accompanying question that needs to be considered is, why is Ukraine so attracted to the European Union?

To answer the first question briefly, we have to turn our attention to the final days of the old USSR, then led by Michael Gorbachev. Russia, the largest member of the 15 “Republics,” was led by Boris Yeltsin. Under Yeltsin’s leadership, Russia chose to withdraw from the Soviet Union. He said that Russia was weary of carrying the burden—economic, military, and otherwise—for the others. Russia just left, and after a brief try there was nothing that Gorbachev could do to make Russia stay. Without Russia, there was not much left to the Soviet Union, and the other members said “enough,” too. The Soviet Union was gone with hardly a whimper and little lamented except by the class of privileged communist leaders.

The word is that current Russian President, Vladimir Putin, wants to put the band back together, that he wants to reassemble the old Soviet Union, with the coercive influence of the Russian military as his chief tool. Not that he wishes to recreate the communist paradise of Lenin and Stalin. His vision reportedly reaches back to the great days of the czars—though presumably without the trappings of monarchy and royalty. Putin is through and through a Russian, so he wants to recreate a Russian Empire. Continuing along the path that he has set out, the path of creating an empire of the czars after the mode of the Caesars, he is unlikely to succeed. Been there. Tried that. Did not work.

It is hard to understand why Putin would choose that model. Why would he want to deal himself and the Russian people a losing hand? The Russian-dominated Soviet Union, assembled by the Red Army, failed. It did not fail because the Soviet leadership did not try hard enough, or was stingy in expending resources, or showed too little military muscle, to hold it together. It failed because—as Yeltsin recognized—it was costing too much to hold it together, draining too much life from Russia. The USSR was a bankrupt model (morally and financially) for building an empire, especially for keeping an empire. There were not enough hands to hold on tight to everything and everyone.

Perhaps Putin figures that without the burden of communism a strong Russian government could hold and control successfully where the commissars could not. In other words, he would reject the model of Soviet communism and embrace the model of a modern non-communist authoritarian regime, like the Third Reich. That one did not work so well, either.

There is a model available, tried and tested, that would work. It would unleash the power and greatness of the Russian people and at last make the most of the amazing resources of the Russian land. The results would exceed by far even the exaggerated dreams of czars and commissars. Does Putin have the vision?

I refer to the model of freedom, only briefly known to the Russian people, only occasionally offered in limited experiments, experiments that were always wildly successful, surprising only to the governmental leaders who tried them and then abandoned them, frightened by the successes. Applied boldly, we would see a Russian miracle that would change not only Russia but the world—all for the better. Free men and women, operating in free markets, protected by the rule of law enshrining individual rights, erected on the foundation of a constitutionally limited government, would be a model offering limitless growth and prosperity. Moreover, the variety of peoples and cultures in a land as vast as Russia could be recognized and accommodated, attracted and joined together, within a strong but genuine federation, united by the ties of thriving national markets, reassured by the rule of law supported by a just and independent judicial system to safeguard fundamental rights.

A dream? Perhaps it is, but a realistic one. This offers the answer to the second question. Why is Ukraine attracted to the European Union? Does not the European Union offer just such an option? Is not the economic prosperity and individual freedom—and room for national expression—found in the European Union obviously different from the offering of today’s Russia and the memory of the old empire? Is it not fear of the specter of the czars and commissars that haunts Ukrainians?

Was not the creation of the European Union once just such an impossible dream as a truly free and just Russian federation? For hundreds of years the fathers and mothers of the peoples of the European Union made war, large and small, upon each other, French against Germans, Germans against Austrians, Austrians against Poles, Poles against Germans, and round and round again. Today such wars among these same people are unthinkable.

Assembling such a federation takes time, patience, and skill. It may be too tempting for an impatient Putin to rely on his military muscle to make an empire. Perhaps for a brief time he could succeed by force to reassemble much of the old Soviet Union as a greater Russia. The greater challenge, the one that has proven impossible, is to hold such an empire together by force.

Such empire of force would very soon prove ungovernable, with rebellions large and small flaring up constantly. The brutality exerted to try to hold it all together would make the task of unity even harder and progress nigh impossible. It would drain away, once again, Russia’s strength in an unending effort, just as it eroded the strength of the USSR. Maintaining greater Russia by force has always proven a burden far greater than its worth, in the long run a losing effort that has collapsed in a weaker and vulnerable Russia. World War I was one example, the end of the Cold War yet another.

The people of Russia—along with its neighbors—can have a better and brighter future. A Russia built on individual freedom, free markets, free peoples, would unleash a new era of prosperity. Russia would become a beacon of wealth and success, with all Russians participating. Instead of Russians leaving to find their future, they would return to their homeland. If Japan can prosper on islands scarce in natural resources, imagine what free Russia could do, rich in resources, harnessed efficiently by the discipline of the markets.

Instead of an empire of force, a free and flourishing Russia would draw its neighbors to it as the European Union beckons to them today. No longer facing Russian fists, neighboring nations will come knocking at the door, eager to associate with Russia voluntarily, attracted by opportunities for betterment.

Of course, that is the theory. In practice, the more that Russia seeks the path of freedom and abandons the chimerical lure of military conquest, it will succeed. Russia would then achieve its real greatness in the world, the only way that it ever really could.

Filed under communism, economic growth, European Union, federalism, freedom, markets, military, prosperity, rule of law, Russia, socialism, statism, Ukraine

Of Panic and Complacency

March 8, 2014 2 Comments

I wrote the following a few days after the election of Barack Obama in 2008. I was not in despair then, and I do not despair of finding some value even today in the thoughts expressed just before the dawn of the Obama Administration.

First of all, do not panic. Second, do not take it easy.

This is in line with another piece of advice I came across a few years ago (attributed to Austrian statesman, Clemens von Metternich): “Let us not consider ourselves victorious until the day after the battle, nor defeated until four days later.” Well, it has been more than four days since the November elections, and I believe that it is safe to say that the Republicans were defeated.

There are other things, however, that are not safe to say. It is not safe to say that the Democrats won an overwhelming victory. In fact, their margin of victory was fairly narrow, less than 7% separating the Republican and Democrat candidates for President, a number that only looks large when compared with closer recent Presidential races. Senator Obama’s percentage of victory was a little less than George Bush’s (the father) over Michael Dukakis, 6.7% versus 7.8%. The Democrats also picked up significant gains in their numbers in the Senate and House of Representatives, but in both cases they fell short of the overwhelming victories for which they had hoped. The results of the election were neither overwhelming nor underwhelming—just whelming.

It is also not safe to say that President-elect Obama and the Democrats do not mean to do what they said they wanted to do during the election. They plan to raise taxes. These higher taxes will be felt by everyone, but they will fall most heavily on businessmen and entrepreneurs, exactly the people whose efforts we need to restore economic growth. So as Obama and his team work to spread the wealth around, there will be less of it to spread, and less and less as time goes by. There are many other like-minded plans of the change team arriving in January.

Elected with the embarrassingly undisguised support of the mass media, the new leadership will continue to rely upon the media, this time to hype the “mandate” from the voters and to try to cower the remaining Republicans in town into timidity. The early effect of this can be seen in the hushed conversations of “people in the know” trying to convince themselves that Obama is really more moderate than he appears, that he will try to “govern from the center.” Maybe that will be true, but there is nothing either in Obama’s brief but clear far left voting record or his statements during the election to support the theory.

There remains powerful virtue in the Constitution (which the President-elect considers to be a flawed document), in which we can take comfort. The founding fathers wisely diffused power, because they were rightly afraid of what concentrated political power would do to individual liberty. While it is frustrating to new politicians in Washington, there is not a lot that one man can do—for good or ill—in our system of government, and that should be more of a source of solace than of worry.

We need not buy into the slogans that we should rise above partisan politics (which usually means that the other party should keep quiet and become politely ineffective) in order to wish the new President and the congressional leadership well so long as they propose to do good. Neither do we need be devotees of political parties in order to speak up when policies are proposed that will make things bad. In the land of “We the People,” it is our job not to be complacent. It is our job to remind the authorities in government who they work for. Otherwise, as we approach the holiday season in 2009, things will be much worse than they are already today.

(First published November 16, 2008)

Filed under Barack Obama, Congress, Constitution, economic growth, elections, government, investment, media, politics, socialism, taxes

Of Plumber Joe and Community Organizer Barry

March 1, 2014 Leave a comment

I first published this before the 2008 presidential election. In the years since, President Obama’s community organizer background has faithfully exerted itself.

It took a real life example to give life to the key difference between the two candidates for president. When Plumber Joe met Barack Obama campaigning in his neighborhood, Joe asked the would-be president, why do you want to tax my small business? Actually, more precisely, Joe wants to buy the plumbing business he has worked at, and Obama wants to raise taxes on it, and Joe asked Obama, why? At first, Obama equivocated and mumbled something about getting some tax breaks to offset the tax hikes. When Joe refused to buy into that sleight of hand trick, Obama fessed up. Obama admitted that he wanted to spread the wealth around. In other words, he said that Joe would be making too much money, so Obama wanted to take from him and give to someone else.

Why would Obama want to do that? Because, unlike Plumber Joe, who has a real job, Obama’s career experience came as a “community organizer” (when he was known in Chicago as Barry). Taking money from people and giving it to others is what community organizers do. Barry the Community Organizer now wants to organize a big community, of over 300 million people, and he wants to keep spreading the wealth around. Community organizers like to do that, because they like to get the credit for being compassionate and generous, compassionate and generous handing out other people’s money.

Joe has worked hard as a plumber. Joe has saved and prospered. Now Joe wants to own his own business and provide work for other employees. The employees, these plumbers, would provide plumbing services and get paid by their customers. Barack Obama wants to take some of that money—O.K., a lot of that money—and spread it around to people who would get their money from Barack, people who have not been as “lucky” as Plumber Joe.

Lucky? My guess is that it was not luck that made Joe work hard over the years and save his money to be in a position to own a business and provide real jobs to other people. Under a President Obama, Joe and others like him would become unlucky.

John McCain has been trying to point out for weeks that the change offered by Barack Obama is a big time return to the tired old tax and spend politics of the big government politicians. John McCain is not the most eloquent campaigner, and the mass media has been doing its best to bury his message anyway. McCain finally found a real life example, and that is the most eloquent statement of all. At the last national debate, on a stage that the mass media could not ignore, McCain introduced us to Joe the Plumber (who by the way did not ask for all the attention and is a bit embarrassed by it), and McCain asked, why raise his taxes? Why raise anybody’s taxes going into an economic downturn?

If you do not raise the taxes, you cannot keep spending other people’s money and winning praise for your compassion and generosity. And that is the point of this election.

(First published October 16, 2008)

Filed under Barack Obama, compensation, economic depression, elections, fairness, government, jobs, politics, recession, socialism, statism, taxes, tyranny

Of Washington and the Life of the Nation

November 22, 2013 1 Comment

Washington, D.C., is a strange place. I speak from experience. My whole working career has been in Washington. In many meetings with people visiting Washington I have explained to them that Washington is not America. Few have been surprised by the remark. In many visits away from Washington (and in connection with my work I accept nearly every invitation to leave town and be among those whose lives too many in Washington try to run) I am ever and powerfully reminded how different the rest of America is from Washington. I have not been surprised. Kansas City is much closer to America than Washington ever was or will be.

In support of the point I offer a few painful examples. I see one each day that I drive into the city. Looking at the cars around me I note that very few are more than a few years old. At the same time I am impressed by how many of the cars are foreign luxury models. It is typical, when paused at a stop light, to notice that many of the surrounding cars are BMWs, Mercedes, Lexus, Acuras, Audis, and not an insignificant number of Jaguars, high end Range Rovers, and Porsches. I also see a lot more Prius cars and other hybrids. This is not to say that there is anything inherently wrong with driving any of these or any other late model high-priced cars. I merely note it as very different from what I see when paused at a typical traffic light in other cities and towns in America.

As an aside, I am grateful to the people who buy and drive a Prius or other model of hybrid, because they subsidize my purchase of gasoline. Their cars do use less gasoline (though not enough less to compensate their owners for paying so much more for their cars), leaving more for people like me who drive regular gasoline-consuming vehicles. That reduction in gasoline demand helps reduce the price.

The Prius drivers might be offended were I to tell them, however, that I am entirely unimpressed by their conspicuous token of environmental sensitivity. Their purchase and operation of a Prius, after all, is very likely more harmful to the environment than is my more conventional automobile. First of all, they pay $10,000 or more extra to buy their hybrid, and if the price system works at all efficiently that means that making a Prius or other hybrid consumes far more in resources than making a conventional car. Second, the hybrid car fans and their coteries in the D.C. area have convinced the masters of the highway networks to create special less-traveled commuter lanes that the hybrid drivers are permitted to use, meaning that they reduce the efficiency of the highway infrastructure. So, to the Prius drivers of the world I say, thanks for the subsidy, but save your enviro lectures for when you are looking in the mirror.

The automobiles of the nation’s capital region are a sign of an even more painful reality of how Washington is different from the rest of America. It is also the wealthiest part of the nation, by far. On April 25, 2013, Forbes magazine published an article about the richest counties in the United States in terms of average income (Tom Van Riper, “America’s Richest Counties”). Six of the ten richest counties are in the Washington, D.C. region, including the top two and one more out of the top five. While recession lingers in the rest of the nation, Washington and its suburbs are doing rather well, with unemployment down to 5.5%, well below the national average.

I will also say that I am not opposed to wealth and wealthy people. I wish all of the world to be wealthier and rejoice that it is far wealthier today than people of just a few generations ago could have dreamed. But we could all live so much better still. I ache that the policies of governments around the world stifle economic growth and development and hold so many of their people down in poverty. The poor nations of the world are not poor because their people are less talented and intelligent than others, but because their governments are so oppressive and have been for generations.

Therein lies my beef with the wealth of Washington and its environs and the key to its estrangement from America. That wealth is hard to explain from the perspective of value added to the rest of the nation. Washington is basically a one-company town. Unlike other one-company towns, however, it produces little that adds enough value to the lives of others that would allow it to prosper in open competition in free markets. The product of Washington instead is forced upon the rest of the nation, whose productive income is confiscated to keep the Washington wealth-eating machine going.

Try to name an economic product or activity that is not somehow subject to special handling by or permission from someone in Washington or controlled from Washington. After the Dodd-Frank Act, for example, all financial activities have become more subject to direction by Washington bureaucrats than ever before. Today, a bank has to pay more attention to its regulators than it does to its customers. Who gets the best attention out of that arrangement? The same is true for energy producers, communications firms, health care providers, and you can continue the list. All that special handling comes with a toll, payable in taxes, or borrowed from the financial markets, or layered upon private incentive and individual initiative. Today in Washington the most convincing argument for new rules and laws is to announce that something is “unregulated.” When you regulate liberty, how much liberty survives? How much of America survives?

Next year, 2014, will mark the 200th anniversary of the burning of Washington by the British in the War of 1812. The curious thing about the burning of Washington was that it did not make a lick of difference. The rest of the nation went on about its business, little harmed or even affected. The same was true during the Revolutionary War when the British occupied Philadelphia. Rather than end the war it did nothing to bring the British victory. In America the nation was not run by its government, and in fact government was mostly irrelevant to the daily life of the people. That was very different from European experience, where nations were so dominated by their rulers that capturing the capital was tantamount to beheading the country.

Washington is strange to America. That can be tolerable, but only if it is smaller and less significant. Let the real nation draw its life from the people and live where they live their lives without direction from their rulers. Let us have a Washington whose disappearance would not mean much to the rest of the nation.

(First published May 18, 2013)

Filed under America, banking, Dodd-Frank Act, economic growth, environmentalism, exceptionalism, federalism, freedom, government, poverty, productivity, rule of law, socialism, statism, taxes, tyranny, Washington, wealth

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