Tag Archive 'capitalism'

Athens into Persepolis

Rasmussen has polled the public on whether they agreed with President Bush’s characterization of capitalism as the “highway to the American Dream.” Only 44% voiced support for capitalism, 33% were undecided and 22% expressed opposition. A grim finding. Only Republicans marshaled an absolute majority of support for the system, commendably voting 4:1, independents had a plurality of support, and Democrats were evenly split.

It should be observed that it is not without historical precendent that a victorious power would quickly wish to transform itself into the image of the enemy it proved its system utterly superior to, rejecting the values and virtues which had enabled her to triumph, in favor of those which had condemned her adversary to defeat. Indeed, it’s a bizarre but relatively common historical temptation if considered.

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On Market Forces

cartoon
(via: Inkcinct)

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The Post-Post-American World

So, did you enjoy the much discussed post-American world order? Hope you didn’t miss it. Surely it didn’t lack for advertising.

But if you did happen to step out for a moment, we just lived through the end of market capitalism, the death of the dollar, the collapse of American power, the cultural and political atrophy of the West, the rise of Eastern dictatorships to world leadership, and petrocracy as the vanguard political philosophy of the future.

Bill Emmott notices that a lot of this isn’t exactly plausible in historical context, and that with the collapse in the price of oil, a strengthening dollar, an even worse European recession and the unavailability of predicted competitive alternatives to American power…the post-post-American moment may be upon us.

(HT:

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The Folly of Heroes

What a day for indignity. Just when I’d stopped shaking my head at the image of Paul Krugman accepting the Nobel Prize, I read two of my most cherished heroes offering rather embarrassing endorsements for bad things.

Christopher Hitchens, always aloof from the elderly McCain, has been pushed into a categorical and insulting rejection in Slate, animated mostly by a festering hatred of Sarah Palin that seems to grow more infected by the day. It’s not quite an Andrew Sullivan endoresement in that it lacks the enchanted fascination with Obama, but it’s still advocacy that makes you wince at the superficiality.

But worse is yet to come. Francis Fukuyama, in his most aggressive Obama endorsement yet, reboots history in The Times (adapted from the Newsweek piece) by denouncing the entire edifice of the Reagan-Thatcher revolution for capitalism and democracy as destructive and driven by uneducated American swing voters, who are stupid enough to endorse the philosophy he once championed as the endgame of civilzation itself.

Sad affairs. I suspect I shall have to become an antiquarian for these men’s opinions in order to remain a fan. Their current thinking seems only demonstrative of the strangely stupefying effect partisanship for Obama can have on otherwise able minds.

(ht: Ghost of a Flea)

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Talk about your free markets

neatorama
“We live in a capitalist society,” she tells us. “Why shouldn’t I be
allowed to capitalize on my virginity?”
  Is this a hoax or just free markets?

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Mixed Economies: Efficacy Without Moral Narrative


(photo: Ian Murchison | website)

The nationalization of Fannie & Freddie is often presented as a crisis of faith for the political right, due to its manifest incompatibility with the advertised belief in the “free market.” However, Sunder Katwala at NextLeft cleverly recognizes that it also presents a challenge to orthodoxy on the left, given that the insisted purpose of the nationalization isn’t government ownership, but to rescue businesses for a stable return to the private sector.

(more…)

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The Muffin Mogul

The power of capitalism in a lovely little ad by Nexus Productions for the Royal Bank of Canada:
Quicktime Video via Motionographer.

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The Tidal Empires of War

Bashar Assad stickers in Syria
(photo: Charles RoffeyCharles & Fred)

Someone once said that in Damascus you truly can get a little bit pregnant. It’s a good aphorism, because if you asked the foreign minister of almost any state in the Middle East or the Mediterranean what his government’s policy relationship was with Syria, he would automatically furrow his brow and call it “complicated.” You always seem to be about half-way somewhere with Syria. Lately that appears to be true even for Tzipi Livni. If so for Israel, doubly so for Lebanon.

Surveying it, Jihad Yazigi describes the situation that exists between the two countries as customarily “complicated”, but the dimension of complication he’s seeing is something relatively new. Where before thirty years of Syrian military occupation (and often not very covert political subversion) might be the most obvious locus, Yazigi is today talking about labor and direct investment in Syria by Lebanese:

Syria would probably not be liberalizing its economy and going through a revival of its services sector without the thousands of Lebanese managers that are running Syrian firms. Lebanese managerial know-how is being exported throughout the Arab world and Syria will continue to need it if it wants to further the opening up of its economy.
(The Syria Report)

That’s a very new economic relationship, as historically it is Syrian labor that has traveled to liberal and cosmopolitan Beirut. It is Syrian enterprise that has worked to create a paternalistic relationship between the two countries with one-way investment, generally government directed.

(more…)

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Elect Phil Gramm!

From an interview by Stephen Moore (HT: GR):

So what if a President Barack Obama were to impose 50% or 60% tax rates on these CEOs and other big earners? Mr. Gramm pounces: “When you help a company raise capital, to put its idea to work, and you create jobs, those jobs are the best housing program, education program, nutrition program, health program ever created. Look, if a man in one lifetime is responsible for creating 100 real jobs, permanent jobs, then he’s done more than most do-gooders have ever achieved.”

And this:

“Why is America the richest country in the world?” he asks. “It’s not because our people are more brilliant; it’s because we have a better free-market system. Why has Texas created 1.6 million jobs in the last 10 years whereas Michigan has lost 300,000 jobs and Ohio has lost 100,000 jobs? Because governance matters, taxes matter, regulation matters. Our opponents in this campaign are so dogmatic in their goal of having more government because they love the power it brings to them that they’re willing to let it impose costs on the working people that they say they want to help. I am not.”

Gramm is apparently advising John McCain’s campaign. It could use the help.

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Backdoor Kyoto — The Next Chapter

polar bears swimming

The march of the watermelons towards control of US policy continues apace:

Polar bears will now be listed as “threatened” under the Endangered Species Act.

But in announcing the listing, Secretary of the Interior Dirk Kempthorne said the decision should not be “misused” to regulate global climate change.

“Listing the polar bear as threatened can reduce avoidable losses of polar bears. But it should not open the door to use of the Endangered Species Act to regulate greenhouse gas emissions from automobiles, power plants, and other sources,” said Kempthorne.

“That would be a wholly inappropriate use of the ESA law. The ESA is not the right tool to set U.S. climate policy.”

It is certainly an inappropriate tool for shaping such policy. And it just as certainly the tool that will be used quite effectively to do so. Like I wrote over a year ago, this is nothing more than a backdoor way of implementing Kyoto in the US.

If the polar bear were listed as a threatened species, all federal agencies would have to ensure that anything they authorize that might affect polar bears will not jeopardize their survival or the sea ice where they live. That could include oil and gas exploration, commercial shipping or even releases of toxic contaminants or climate-affecting pollution.

Environmentalists hope that invoking the Endangered Species Act protections might eventually lead the government to reduce carbon dioxide emissions and other heat-trapping “greenhouse” gases blamed for warming the atmosphere.

“The Interior Department has pretty much explicitly said that they don’t think they have the authority to regulate greenhouse gas emission, but we know that the Endangered Species Act goes well beyond these walls, that it’s taken into account by other agencies,” said Kert Davies, research director for Greenpeace.

Since the above was written, the Supreme Court has ruled that the EPA does have the authority to regulate greenhouse gas emissions, but more importantly, under the ESA the government is required to evaluate any project that may have an impact on endangered species. Normally this would be limited to such species within the geographical span of the proposed project, but you can bet your bottom dollar that Greenpeace, et al., will attempt to draw a direct connection between whichever new project they are challenging and polar bears using the threat of increased greenhouse gas emissions.

The coup de grace, of course, will be when all private industry and behavior is brought with in the realm of the EPA’s regulation authority (my emphasis):

As Interior Secretary Dirk Kempthorne noted, the 1973 Endangered Species Act is “perhaps the least flexible law Congress has ever enacted.” In 2005, green litigants took advantage of this rigidity, suing the government to force it to label the polar bear at risk for extinction. Since the 1980s, the sea ice that the bears use to hunt and breed has been receding. Although the population has increased from a low of 12,000 in the 1960s to roughly 25,000 today – perhaps a record high – computer projections anticipate that Arctic pack ice will continue to melt over the next half-century. This could, maybe, someday, lead to population declines.

The lawsuits were hardly motivated by concern for polar bear welfare. Instead, environmentalists asserted that the ice is thinning because of human-induced global warming. A formal endangered listing is one more arrow in their legal quiver as they try to run U.S. climate policy through the judiciary.

They’ll argue that emissions from power plants, refineries, automobiles – anything that produces carbon – would contribute to warming, thus contributing to habitat destruction, and thus should be restricted by the Endangered Species Act. This logic could be used to rewrite existing environmental policy to accommodate greenhouse gasses, purposes for which they were never intended but with economy-wide repercussions.

Is there any doubt that granting full regulatory control over all productive activities is the ultimate goal of these lawsuits? I’m sure that some in the movement are motivated entirely by their heart-felt concern for the welfare of animals and the environment. But the vast majority of these environmental activists are driven by the desire to bring capitalist forces to heel, towards which end their totalitarian instincts guide them. Passage of the ESA in 1973 was the first step in that cause. The combined forces of the AGW movement with this latest court victory may be all that’s needed to achieve their goal.

See also: McQ, who has more on the listing of polar bears as a threatened species.

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The Blessing of our Vice

The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery.

 

-Winston Churchill

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The Ecumenical Reform Coalition Strikes Back

McCain Huckabee 2008

With Romney’s odds of winning the nomination now highly improbable, and the press directly asking Huckabee if he wants to be Vice President, the McCain-Huckabee alliance many of us have longed feared is now quite visible on the horizon. Even worse though, is the distinct possibility that this ghastly marriage of factions is in fact representative of the party.

(more…)

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Noneconomic Man in Modern Europe

Pipe
photo: Tal Bright

Thomas Barnett bemoans the grotesque state of economics education in Europe, which often ranges from the anti-capitalist to the simply fatuous. But consider this item he cites:

Great French HS textbook: “Globalization implies subjugation of the world to the market, which constitutes a true cultural danger.”
(Thomas P.M. Barnett)

Somewhat bemused by this, Barnett asks “why is Europe so antagonistic on capitalism?” Perhaps the better question is why is Europe so antagonistic toward economics, because the item above isn’t really criticism of an economic philosophy. By elevating the primacy of culture over the market, we’re looking at the rejection of the economic premise, which is a concern for the material welfare of mankind. This is what Peter Drucker used to call the dream of “noneconomic man” and in his early work The End of Economic Man, he supplied some explanations for this impulse which might be of enduring relevance to Barnett’s question. (more…)

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“We are tired of leaders who rather than asking what we can do for our country, ask nothing of us at all.”

That’s part of Kansas Gov. Kathleen Sebelius’ response to the SOTU last night.

Jim Hoft’s reaction: “Huh?” and drawing the obvious comparison to another famous redistributionist.

My first thought was: “Ask? Well I’d be much happier if they’d ‘ask’; that implies I can say no. Instead they all seem to pretty much insist while staring down the barrel of a gun.”

As a bonus, I can pretty accurately predict what Milton Friedman would have said:

President Kennedy said, “Ask not what your country can do for you – ask what you can do for your country.”… Neither half of that statement expresses a relation between the citizen and his government that is worthy of the ideals of free men in a free society.

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Gates Capitalism

Commenting on Bill Gates’ advocacy for “kinder capitalism,” Steven Bainbridge notes:

But when did Bill Gates ever believe in capitalism? He’s an inveterate monopolist and has been since the beginning. Monopolists hate real capitalism, precisely because they hate competition. Monopolists love corporate social responsibility because it creates barriers to entry. So of course Bill Gates is going to turn “a cold shoulder to the blessings capitalism bestows.”

His follow-up is here.

Needless to say, Prof. Bainbridge is exactly right. In fact, it was something that Adam Smith warned of long ago:

To widen the market and to narrow the competition is always the interest of the dealers … The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted, till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it.

The Wealth of Nations, Book I Chapter XI

Another Smith quote seems appropriate to this situation as well:

I have never known much good done by those who affected to trade for the public good.

Here, here.

[HT: Instapundit]

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Privatization Under Thatcher

Short video clip on Maggie’s privatization efforts in the 1980s, and the intellectual rationale behind expanding the investor class. It’s not about creating prosperity, it’s about educating a nation in what makes prosperity possible.

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Free Shipping Illegal in France

I’m a big Amazon user. I think it’s a lazy guy thing. I know what I want, I don’t want to window shop at the mall or go to the hassle of actually driving and parking and wandering around in the mall lost (and I don’t even have any kids). What really got me using Amazon big time though, was their Amazon Prime program where you pay $79 a year for free shipping on everything sold by Amazon (though not some third party sellers). It’s simply a great site, great idea, and has completely revolutionized the way I shop.

France, however, doesn’t see it the same way. Michael talked about France’s aversion to capitalism and the free market a few days ago, and now we see it in action. France has declared free shipping illegal. In 1981 France passed a law making it illegal for book sellers to offer more than 5% discount on the list price, (who wants big discounts on books right?). This was done to protect French book stores from competition from supermarkets and other new retailers. Amazon.fr has run into trouble with their offering free shipping on orders of €20 or over (it’s $25 in the US), and a court has ruled that this violates their protectionist law.

Amazon, however has opted to continue offering the free shipping, and is choosing to violate the law and pay the €1,000 a day fine. After 30 days though, the court can revisit the fine and will undoubtedly increase it greatly given Amazon’s open defiance of it. It also owes €100,000 to the French Booksellers’ Union for the court battle and for the losses it has apparently caused them. Imagine if Dell was forced to pay HP for the losses it cause them with their new computer manufacturing model. Doesn’t really spur lower prices and innovation does it?

So who is hurt by this? Amazon obviously, but also the consumers in France, who have plenty of time to read with their 35 hour work week. According to Cédric Manara, a law professor and e-commerce specialist at Edhec, a French business school in Nice, Germany has a similar law regulating the price of books, but Amazon.de remains unaffected. But I wonder how long that will be true given what’s happening in France.

(H/T Slashdot)

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Capitalism Primer

Courtesy of Bookwork Room comes this 1948 classic “Fun and Facts about American Business.” It’s a cartoon short that portrays the birth of an entrepreneur, and how bringing his idea to fruition through hard work pays off not just for him, but also for his local community, and anywhere else his business expands to, bringing jobs, wealth and higher standard of living.

Enjoy (below the jump).

UPDATE: Related item at The Corner suggesting that Gov. Huckabee needs to have a gander at this video. It might explain to him just where he’s going wrong:

Governor, I didn’t have silver spoons or boarding schools or a verb summer, but I know enough to thank God for the job creators, the natural economic stimulators, capitalism.

(more…)

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Liberal Fascism: The Secret History of the American Left, From Mussolini to the Politics of Meaning

Echoing a wonderful discussion we had in the fall of 2006 on the nature of Fascism (see here, here and here) Jonah Goldberg writes a book which bristles at the use of the term by the contemporary left. I would really be interested in picking that discussion back up. So anybody interested, please read the previous discussions and tell me what you think. In the meantime, here is the description from Amazon:

Book Description
“Fascists,” “Brownshirts,” “jackbooted stormtroopers”—such are the insults typically hurled at conservatives by their liberal opponents. Calling someone a fascist is the fastest way to shut them up, defining their views as beyond the political pale. But who are the real fascists in our midst?

Liberal Fascism offers a startling new perspective on the theories and practices that define fascist politics. Replacing conveniently manufactured myths with surprising and enlightening research, Jonah Goldberg reminds us that the original fascists were really on the left, and that liberals from Woodrow Wilson to FDR to Hillary Clinton have advocated policies and principles remarkably similar to those of Hitler’s National Socialism and Mussolini’s Fascism.

Contrary to what most people think, the Nazis were ardent socialists (hence the term “National socialism”). They believed in free health care and guaranteed jobs. They confiscated inherited wealth and spent vast sums on public education. They purged the church from public policy, promoted a new form of pagan spirituality, and inserted the authority of the state into every nook and cranny of daily life. The Nazis declared war on smoking, supported abortion, euthanasia, and gun control. They loathed the free market, provided generous pensions for the elderly, and maintained a strict racial quota system in their universities—where campus speech codes were all the rage. The Nazis led the world in organic farming and alternative medicine. Hitler was a strict vegetarian, and Himmler was an animal rights activist.

Do these striking parallels mean that today’s liberals are genocidal maniacs, intent on conquering the world and imposing a new racial order? Not at all. Yet it is hard to deny that modern progressivism and classical fascism shared the same intellectual roots. We often forget, for example, that Mussolini and Hitler had many admirers in the United States. W.E.B. Du Bois was inspired by Hitler’s Germany, and Irving Berlin praised Mussolini in song. Many fascist tenets were espoused by American progressives like John Dewey and Woodrow Wilson, and FDR incorporated fascist policies in the New Deal.

Fascism was an international movement that appeared in different forms in different countries, depending on the vagaries of national culture and temperament. In Germany, fascism appeared as genocidal racist nationalism. In America, it took a “friendlier,” more liberal form. The modern heirs of this “friendly fascist” tradition include the New York Times, the Democratic Party, the Ivy League professoriate, and the liberals of Hollywood. The quintessential Liberal Fascist isn’t an SS storm trooper; it is a female grade school teacher with an education degree from Brown or Swarthmore.

These assertions may sound strange to modern ears, but that is because we have forgotten what fascism is. In this angry, funny, smart, contentious book, Jonah Goldberg turns our preconceptions inside out and shows us the true meaning of Liberal Fascism.

(more…)

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Milton Friedman vs. Naomi Klein

Happy New Year! To start off the year right, let’s have a look at a mock-up of a debate between Naomi Klein, reporter-activist extraordinaire, and Milton Friedman, king of economic liberty (via Instapundit).

This video was put together by Devil’s Advocate at Copious Dissent, where you can find the others in this series.

This is the fifth, and possibly final, compilation of videos that I titled, “Naomi Klein: Shockingly Ignorant.”

Since she loves to distort what Milton Friedman stood for, I thought I would let Milton debate her in his own words. He makes her look like a fool.

Good stuff, and highly recommended.

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“Small-Government Libertarian”

I seem to have caused some confusion with my previous post, “Putting the Question to the Bishop,” by an inartful use of the term “small-government libertarian.” The more I think about, the clearer it becomes to me that this term is redundant — libertarians are, by definition, in favor of small government. To me, the term has always been a way to distinguish between the minarchist (such as Hayek or Friedman styled libertarians) and anarcho-capitalist (such as fans of Murray Rothbard or Robert Nozick) flavors of libertarianism. Minarchists find value in some minimal level of government, whereas anarcho-capitalists are usually anti-state in nearly every form. However, when the term “small-government libertarian” is used in any other context it just becomes confusing. Frankly, I was simply wrong to employ it the way I did.

The intended point of my previous post was to highlight the choice being forced on the Democratic Party by the netroots crowd — those who support the war vs. those who don’t — and to suggest an alternate choice: the anti-war left vs. the pro-small government electorate. The choice I envision does not involve the war, but instead hinges on how one views the State. Of course, anti-war views are well represented amongst those who prefer small government, and that’s fine. A good argument can (and has been) made that if Congress and the Executive branches were filled with small-government types, there would be no War in Iraq. But, in my view, the Democratic Party needs to focus less on netroots voters who would hold their support of the war against them, and more on voters who are (justifiably) wary of the Democrats’ propensity for big government. The latter have been abandoned by the Republican Party. If the Democrats decided to occupy that small-government ground that the Republicans vacated, such small-government voters could easily be swayed to vote Democratic.

In short, instead of “small-government libertarian” I should have simply said “small-government voters.” My underlying premise is this: as the two major parties continue to cater their policies of governance to increasingly smaller and divisive, albeit increasingly more vocal, special interest groups, they are creating an ever-growing swath of independent voters.

If you think about it, don’t you hear more and more people claiming to be libertarians today, despite their seemingly disparate views? I surely do. I believe this is the natural result of the Democrats and Republicans being more concerned with single-issue voters (e.g., pro-choice vs. pro-life; homosexual rights vs. anti-gay marriage; anti-war vs. pro-strong defense; etc.), than with broad policy measures. Eventually all you have left are moneyed special-interests who promise to get out the vote. Left in the wake of this rush to divvy up the battleground into pro and anti groups are those who feel the government is foisting itself too much on ordinary citizens. Most people just want to be left alone, even though they gladly take free goodies when they are a member of a favored interest group (which is, of course, quite rational). In my opinion, a significant number of voters are out there who will choose small-government policies over single-issue candidates (such as pro-defense/anti-war). I only wish one of the two parties would act on that.

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