Category Archives: Free Markets

UPDATED (12/22/019): Little Guy Shoulders Costs Of Crony Capitalism: Pollution, Red Tide, Ground-Water Contamination…

Business, Capitalism, Donald Trump, Economy, Environmentalism & Animal Rights, Free Markets, Globalism, IMMIGRATION

Paul Craig Roberts gets to the nub of American crony capitalism: profits are privatized; external costs are socialized. In other words, The Little Guy bears the brunt of the pillage, be it reckless commercial farming or rampant real-estate pillaging (“development”), fueled by endless immigration central-planning.

External or social costs are costs of producing a product that the producer does not incur but imposes on third parties or on the environment. For example, untreated sewage dumped into a stream imposes costs on people downstream. Runoff of chemical fertilizers from commercial farming produces dead zones in the Gulf of Mexico and toxic algal blooms such as Red Tide that result in massive fish kills, make seafood unsafe, cause human ailments and adversely impact the tourist trade of beach areas. The result is lost incomes, ruined vacations, health expenses, and none of these costs are born by the commercial farmers.

Real estate development produces massive external costs. Scenic views from existing properties are blocked, thus reducing their values. Construction noise and congestion impose costs on existing residents and reduces the quality of their lives. Water runoff problems are often created. Infrastructure has to be provided, such as larger highways to provide evacuation from hurricane-impacted areas, usually financed by taxpayers. …

the external costs of coal-fired power plants being built in India by the Indian conglomerate Tata with a loan from the International Finance Corporation, a branch of the World Bank. The ground water in the area has been ruined and is no longer drinkable. Farmers are no longer able to grow crops on half of the area farmland. Heated wastewater that is dumped into the Gulf of Kutch is destroying fishing. The ecology and the livelihoods of the population are essentially destroyed. None of these costs are born by the private power companies.

Tired of being doormats for capitalists and the World Bank, the residents of the affected provinces rebelled. They have succeeded in getting their case before the US Supreme Court. It seems that the International Finance Corporation is so accustomed to financing projects that produce large external costs that it overlooked its obligation to examine the environmental impact of the projects it finances. This oversight resulted in Indian farmers and fishermen getting their case before the US Supreme Court. The International Finance Corporation’s lawyers argued that the World Bank lending agency had “absolute immunity.” The Supreme Court said no and remanded the case to the circuit court to rule on the damages.

Perhaps the most surprising thing about this apparent victory for ordinary faraway little people in an American court against the World Bank, a principle instrument of American imperialism, is that the Trump administration appeared in court as a friend of the Indian farmers and fishermen. The US Solicitor General, represented by Jonathan Ellis, rejected the notion that international orgnizations have absolute immunity. The Establishment exists on its immunity. Here we see the ultimate reason that the ruling Establishment wants rid of Trump.

Already the senior staff of the International Finance Corporation have come to the realization that they have other responsibilities than just to shuffle money out the lending shute. If the Indian farmers and fishermen succeed in protecting themselves from ruination by external costs, perhaps Americans who suffer external costs will follow their lead.

[SEE: “US Supreme Court rules against World Bank’s claim of absolute immunity.”]

No wonder Paul Craig Roberts—he served in the Reagan administration—has been expunged from official Conservatism’s polite circles. All good people have been. Fortunately, we have the Unz Review.

RELATED are my pieces on homelessness and high-tech.

 

As I wrote in “Why The H-1B Visa Racket Should Be Abolished, Not Reformed:

Barricaded in their obscenely lavish compounds—from the comfort of their monster mansions—these social engineers don’t experience the “environmental impacts of rapid urban expansion”; the destruction of verdant open spaces and farmland; the decrease in the quality of the water we drink and air we breathe, the increase in traffic and traffic accidents, air pollution, the cellblock-like housing erected to accommodate their imported I.T. workers and extended families, the delicate bouquet of amped up waste management and associated seepages. For locals, this lamentable state means an inability to afford homes in a market in which property prices have been artificially inflated.

* Image of the Tata Mundra power plant is courtesy of Joe Athialy

UPDATE (12/22/019): And now “Mysterious greenish-yellow liquid [is] gushing from walls on I-696.” Goo will probably contaminate drinking water.

Chile: A Well-To-Do People That Wants MORE … Socialism, Not Capitalism

Capitalism, Culture, Democracy, Economy, Egalitarianism, Elections, Free Markets, Race, Socialism

Chile is the country with the highest per capita income and least inequality in all of Latin America,writes Pat Buchanan. “Yet the protesters have succeeded in forcing the elected government to capitulate and write a new constitution.”

The economic issues propelling workers into the streets to protest inequalities of wealth and income are occurring at a time when our world has never been more prosperous. …
Neither authoritarians nor the world’s democracies seem to have found a cure for the maladies that afflict our world’s unhappy citizens. …

What we have in reality is what Pat Buchanan has always warned of:

The ethnic and racial clashes within and between nations seem increasingly beyond the capacity of democratic regimes to resolve peacefully.
As for matters of fundamental belief — political, ideological, religious — the divides here, too, seem to be deepening and widening.

The Economist concurs that Chile has it quite good, writing that it “is the second-richest country in Latin America, thanks in part to its healthy public finances and robust private sector”:

Sebastián Piñera, Chile’s centre-right president, at first took a tough line with the malcontents. “We are at war,” he declared during the rioting. The state’s response was heavy-handed. Although most of the deaths occurred because of arson …

What the people of Chile want, it would appear, is less capitalism and MORE socialism:

Under a model developed by free-market economists during the dictatorship of Augusto Pinochet, who ruled from 1973 to 1990, citizens are expected to save for their own retirement. … In many other countries, public pensions are financed by taxing current workers and giving the money to current pensioners—a system that comes under strain when the population ages. Chileans, by contrast, invest the money they save in privately managed funds. This system has helped Chile manage its public finances and encouraged the development of long-term capital markets, which in turn has boosted economic growth.

IS this good? You bet it’s good.

The conservative Mr Piñera is unlikely to scrap a system which in many ways has served Chile well. It is the second-richest country in Latin America, thanks in part to its healthy public finances and robust private sector.

BUT the people are not interested.

* Image courtesy The Economist.

NEW COLUMN: Trump Barters For Borders — And Wins, Big Time

Democrats, Free Markets, IMMIGRATION, Justice, Nationhood, Natural Law, Republicans

NEW COLUMN IS “Trump Barters For Borders — And Wins, Big Time.” It’s currently on the Unz Review and WND.COM.

RELATED at Townhall.com: “Why The Mighty USA Must Beg Mexico To Police Its Border.”

Excerpt:

If President Trump doesn’t waver, his border deal with Mexico will be a victory. The Mexicans have agreed to quit serving as conduits to hundreds of thousands of central Americans headed for the U.S.A.

Despite protests from Democrats, stateside—Mexico has agreed to significantly increase enforcement on its borders.

At first, Mexico was as defiant as the Democrats—and some Republicans.

Democrats certainly can be counted on to argue for the other side—any side other than the so-called sovereign people they swore to represent.

In fairness to the Democrats, Republicans are only notionally committed to the tough policing of the border. And certainly not if policing the porous border entails threatening trade tariffs against our neighborly narco-state. Some Republican senators even considered a vote to block the tariffs.

Nevertheless, to the hooting and hollering of the cretins in Congress and media, Trump went ahead and threatened Mexico with tariffs.

More than that. The president didn’t just tweet out “strong words” and taunts.

Since Mexico, the party duopoly, and his own courts have forced his hand, the president proceeded to “retrieve from his arsenal a time bomb of ruinous proportions.”

Or, so the Economist hyperventilated …

READ “Trump Barters For Borders — And Wins, Big Time,” on the Unz Review and WND.COM.

RELATED at Townhall.com: “Why The Mighty USA Must Beg Mexico To Police Its Border.”

* Image courtesy of the Unz Review.

UPDATE (5/27/019): Will Dave Rubin Let Richard Spencer Do Business On His New, ‘Free,’ Crowd-Funder?

Celebrity, Free Markets, Free Speech, Political Correctness, The Establishment

YouTuber David Rubin is leaving the crowdfunding site Patreon, after Patreon unveiled its bizarre new ‘hate speech’ policy.” Rubin spoke to Tucker Carlson about his plans to launch his own version of the online donation site.

This is all well and good—but will Rubin allow true freedom on his business, or is the Rubin venture to be reserved only for an acceptable range of expression? Will Rubin allow Richard Spencer, for example, to transact on his site? That would be a real measure of freedom.

Let’s see.

But any time the truly great Tucker has the likes of Dave Rubin on; it’s time to stop listening. Rubin is interchangeable with other, standard issue, left-leaning Republicans or right-leaning Democrats.

If this is his usual white noise, it might just turn out to be a safer version of Patreon, reserved  for establishment Republicans and slightly off-beat, but acceptably, others.

HERE.

UPDATED (5/27/019):