Posts Tagged ‘economy’

1984 – Twenty-five Years On

Thursday, November 19th, 2009

In 1949, George Orwell wrote 1984, a chilling tale of life under totalitarianism, 35 years into the future. When that year arrived, our enlightened media scoffed, saying that it had not happened. My own reaction was simply “not yet”. As I argued in a letter to the editor that year, Orwell simply failed to anticipate the drag on technology caused by government regulation. In 1984, we didn’t have the technology necessary for universal surveillance of the citizenry. IBM probably could have provided it, but they had been slowed down by increasing government regulation, not to mention massive antitrust litigation.

But 25 years on, we’re about there. The technology exists, and is being deployed. CCTV cameras cover almost every square inch of London, and are rapidly being installed in most US cities. Worse yet, many people who would have protested such intrusive government surveillance 25 years ago now accept red light cameras, speeding cameras, and massive government eavesdropping on telephones and e-mail as “necessary” security measures. We line up, take off our shoes and submit to totally unconstitutional searches just to get on an airplane. So they not only have the technology, they have our acquiescence.

Think about it. Not a day that goes by without a story in your local newspaper about technology used to ticket a traffic scofflaw, catch a criminal, or bust a cheating spouse. Surveillance videos are reviewed any time something happens, even in seemingly remote locations. No trial lawyer would start a case without demanding e-mail records, even of those thought long since deleted. Passing through a toll booth leaves your presence time- and date-stamped, and don’t even ask about your cell phone records!

And how do they keep us from demanding our freedom back? Fear, the eternal tool of tyrants. In 1984, Orwell spoke of endless wars in far off corners of the earth. Today we have active wars in Iraq and Afghanistan, frequent incursions into Pakistan and daily saber rattling over Iran. And to keep it geographically balanced, we have North Korea.

In case the wars don’t keep us fearful enough, we have terrorist plots and pandemics. I don’t think the terrorist threat level has ever gotten below “Amber”, and the swine flu makes the news daily. The swine flu “pandemic” hasn’t killed nearly as many people as the plain old seasonal flu, but you wouldn’t know it from the main stream media. Before that, it was the avian flu, similarly a non-event, and before that, SARS. Remember SARS? A “totally new” virus, almost always fatal, and against which we had “no natural immunity”. If we had “no natural immunity”, why didn’t we all catch it, and why are any of us still here to read my blog?

In Washington, the fear-mongering goes on. Without health care reform, we can’t possibly continue to afford health care. (I’m afraid we’re about to find out how well we can afford it WITH health care reform!) And just in case the tea bag movement figures out that health care reform is a really bad deal, don’t forget global warming. After eleven years of global cooling, we’re still being threatened with “imminent” catastrophe if we don’t give up our modern way of life and go back to living in caves. As if the government has EVER been the solution, and not the cause, of almost any problem you can think of.

Why are we afraid, and in the light of history, how can we possibly believe that government will protect us? Freedom has blessed America with unimaginable wealth, ever improving standards of living, longer, healthier lives, and countless other blessings. Our government has brought us wars, panics, recessions, bubbles, the Great Depression and very likely another one in the making. They’ve also brought us the public school system, the post office and the DMV. Yet we are about to let that same government take over our health care and tax affordable, reliable energy out of existence.

Even George Orwell would be amazed.

NO Stimulus

Friday, February 6th, 2009

Writing to politicians is not how I usually spend my time, but today I wrote to both of my senators, pleading with them to vote NO on the mis-named “stimulus” bill currently under discussion. This bill is nothing more than an accumulation of some 20 years of old, bad ideas for pork barrel spending. Most of these proposals are so bad, in fact, that they were never able to slide through in some earlier pork-laden bill in Congress, which has been passing pork barrel spending at record levels for years. These proposals would never stand a chance of passing on their own merits, so they have been accumulated and dumped into this disastrous hodge-podge of bad ideas being rushed through when people are frightened enough to swallow almost anything. I know Rahm Emmanuel says “never let a crisis go to waste”, but this bill is far worse than a waste. This bill is using a crisis to do serious damage to our economy for generations to come. I have 5 granddaughters; I do not want to saddle them with this catastrophic burden. While real stimulus might be helpful, our economy would be far better off if the government did absolutely nothing, rather than pass this bill. And if you still think we need a stimulus package, please watch this video for a lighter take on the topic.

We Are Those Who Fail to Learn

Saturday, December 20th, 2008

“Those who fail to learn from the mistakes of history are doomed to repeat them.”

I don’t know who said that first, but we are on the brink of relearning that lessson the hard way. With all of the media clamoring for our attention 24/7, I’m seeing virtually nothing pointing out the many obvious parallels just within the past 100 years. Growing up as baby boomers, we often wondered how the German people could have stood silently by while Adolph Hitler carried out his disasterous plans. Yet apart from the Holocaust itself, most of what Hitler did could be easily compared to the actions being taken by our own government right now. The bank bailouts, the quasi-nationalization of the auto industry, and the massive stimilus programs look very much like steps that Hitler took in his rise to power. (And the inflation that is bound to follow our unprecedented deficit spending may make the Weimar Deutschemark look like a stable currency!) The same could be said comparing today’s actions with those of Benito Mussolini. Yet the only lessons of history even mentioned today are based on complete mischaracterizatons of the actions of FDR. FDR, the president who turned a routine two year recession into a 15 year depression of unprecedented magnitude, borrowed many, perhaps most, of his ideas directly from Hitler and Mussolini. He openly admired both men, and envied the political power which they were able to use to intervene in their own economies. Most of those ideas were initially ruled unconstitutional here, until FDR succeeded in silencing the Supreme Court. But those same interventions are occurring here today, with barely a peep from the people or the media.

Three months ago, it would have been preposterous to suggest that the federal government would take control of the banks. Yet they have done so, and nobody said a word. The nationalization of the auto industry is taking place right before our eyes, and the best we can do is debate whether taxpayer dollars should be used to do it! Instead of defending our freedom, we appear to be clamoring for more regulation.

Apparently when we elected Barack Obama, we bought the “change” message hook, line and sinker. Somehow, despite all the lessons of history, the total and complete abject failure of socialism anywhere and everywhere it has ever been tried, we seem to think that The One can somehow turn that thoroughly discredited concept into a viable model for the American economy. I have great respect for Mr. Obama’s intelligence, but our complex economy is far beyond the comprehension of even the most brilliant central planners. Apparently our socialist schools have succeeded in their mission of whitewashing that incontrovertible (and inconvenient) truth.

I do not believe that we must go through an Even Greater Depression, but we are staring into the abyss. So at the risk of being redundant, I can only repeat, “Those who fail to learn from the mistakes of history are doomed to repeat them.”

A Ton of Prevention is NOT Worth a Pound of Cure

Tuesday, April 22nd, 2008

The global warming hysteria is truly amazing to anyone who steps back and views the issue objectively. We all learned in childhood that “an ounce of prevention is worth a pound of cure”, but when did it become mandatory that the government “do something” about every issue that comes along? I’m sure most of us have heard the chain of causation whereby a single butterfly flapping its wings over the Rocky Mountains might trigger a hurricane over the Atlantic. It’s an interesting mental exercise, but I doubt that anyone would seriously suggest government regulation of wing flapping by every butterfly in the world. Far fewer resources would be much better spent preparing for the inevitable hurricanes which would strike even if butterflies were eradicated. But this is America. We let our federal government provide subsidized flood insurance in places where no private insurance company would write coverage, encouraging people to build in harm’s way and maximizing damage when the inevitable occurs.

Getting back to global warming, many people are convinced that the government must “do something” about that too. The big villain is supposedly carbon dioxide, and we are supposed to “cut emissions” regardless of the economic cost. One recent study concluded that if we reduced emissions to ZERO, it would reduce global warming by a fraction of one degree Fahrenheit over the next hundred years. The people calling for such drastic reductions have no idea what they are asking for. We are already paying dramatically higher prices for food and energy, but that is nothing compared to what they are asking for. Zero emissions would essentially return the economy to living in caves, BEFORE the discovery of fire. If we do that, we’ll need a lot more global warming!

Damaging the economy to “do something” is not just giving up our SUVs, or drinking fewer lattes at Starbucks. We are condemning hundreds of millions of the world’s poorest people, those most at risk of the predicted dire consequences of warming, to remaining in abject poverty and unable to adapt if any of those predictions actually come true. Is that the socially responsible thing to do?

Objective risk-benefit analysis is almost completely lacking from the entire debate. Skeptics are vilified as flat earthers, Holocaust deniers, or believers in the stork bringing babies. Projected consequences are grossly exaggerated, while the economic costs are minimized. Even Al Gore and the IPCC admit that the “20 foot sea level rises” of An Inconvenient Truth are well beyond the realm of probability. Yet they persist, apparently in the belief that people must be terrified into demanding action.

But why? What is it about global warming that exempts it from rational, factual discussion and resolution? Could it be – a hoax? Most people with facts on their side welcome debate. Certainly on an issue as serious as they say this is, we need all of the ideas and input that we can get. Yet the alarmists want no part of debate. Apparently they think they not only have all of the facts, they have all of the solutions. Even if I had no skepticism on the science, I would have to be skeptical of anybody who thinks that they know how to control the weather. Not even the weatherman is that arrogant!

Freedom creates, government destroys

Friday, March 7th, 2008

This morning the government released its monthly jobs report, a “net” loss of 63,000 jobs. But that included an increase of 38,000 government jobs. That means we lost 101,000 productive jobs and “gained” 38,000 parasitic jobs. So we really suffered a loss of 139,000 jobs – 101,000 real jobs, and 38,000 more that we taxpayers now have to pay for.

Of course, that’s just the salary cost. If those 38,000 people actually show up for work, the private sector will have to hire at least that many more to comply with the new regulations they hand down. Given the millions of businesses that must comply with regulations written by a single bureaucrat, ten times that many new overhead jobs would probably be conservative. And regulations are forever, and cumulative. Those 38,000 new bureaucrats will be piling on ever more burdensome restrictions for the next 30 years – and then collecting pensions for another 30 years! God only knows how much those 38,000 new “jobs” will cost our children and grandchildren.

The truth is, only productive labor and capital create jobs. Presidential candidates constantly promise to “create new jobs”, but it doesn’t work that way. Government hiring represents a net subtraction from the productive work force, just as government spending is a direct reduction of our personal wealth. So when you hear the politicians talk about “fiscal stimulus”, hang on to your wallet. Spend your tax rebate check as you see fit, but don’t for one moment be grateful to Washington. It’s your money, and it cost you a lot more than you got back!