Category Archives: Economy

Dipstick Depression

Barack Obama, Communism, Debt, Economy, Federal Reserve Bank, Free Markets, Regulation, Socialism

Following the deductive genius of Austrian economics, many of us have been warning that Obama’s policies are plunging the country into a depression. The best book on the topic, of course, is America’s Great Depression By Murray N. Rothbard. Now, in a study endorsed by Nobel laureate James Buchanan, economists Charles Rowley of George Mason University and Nathanael Smith of the Locke Institute contend that Obama’s “policies even have the potential to consign the US to a similar fate as Argentina, which suffered a painful and humiliating slide from first to Third World status last century.”

According to the British Telegraph, “There are ‘troubling similarities’ between the US President’s actions since taking office and those which in the 1930s sent the US and much of the world spiralling into the worst economic collapse in recorded history, says the new pamphlet, published by the Institute of Economic Affairs.”

“… the White House’s plans to pour hundreds of billions of dollars of cash into the economy will undermine it in the long run. They say that by employing deficit spending and increased state intervention President Obama will ultimately hamper the long-term growth potential of the US economy and may risk delaying full economic recovery by several years.

“The study represents a challenge to the widely held view that Keynesian fiscal policies helped the US recover from the Depression which started in the early 1930s. The authors say: ‘[Franklin D Roosevelt’s] interventionist policies and draconian tax increases delayed full economic recovery by several years by exacerbating a climate of pessimistic expectations that drove down private capital formation and household consumption to unprecedented lows.'”

The researchers err in their support for “the Federal Reserve’s moves to slash interest rates to just above zero and embark on quantitative easing, pumping cash directly into the system.” That goes against the grain of what the authors have contended.

Truly scary, but nothing that Austrians have not been bracing for, is the warning “that greater intervention could set the US back further. It is also not impossible that the US will experience the kind of economic collapse from first to Third World status experienced by Argentina under the national-socialist governance of Juan Peron.”

“The paper … recommends that the US return to a more laissez-faire economic system rather than intervening further in activity.” Dah!

Said James Buchanan: “We have learned some things from comparable experiences of the 1930s’ Great Depression, perhaps enough to reduce the severity of the current contraction. But we have made no progress toward putting limits on political leaders, who act out their natural proclivities without any basic understanding of what makes capitalism work.”

Read “Voodoo Child Talks Up A Storm,” and “The Commie Who Controls the Economy From the Grave.”

Update II: Warning: Postal Worker Coming to A Clinic Near You (The Race Rot)

Affirmative Action, Debt, Economy, Film, Political Correctness, Race, Regulation, Socialism, The State

This week’s column, “Warning: Postal Worker Coming to A Clinic Near You,” is too lyrical for my liking. Nevertheless, if I’ve learned anything as a writer, it is the power of a personal story.

So do read about the latest incident in “a seven-year saga” at my local branch of the United States Postal Service.

The incident “was no more than a sadistic display of power, honed in a state monopoly, where captive ‘customers’ are pinned down like butterflies by ‘service providers.’ The discretion left to such petty tyrants is wide—fear of being fired minimal, if non-existent.”

“Just you wait until a postal worker of this caliber, subject to the same disincentives, is in charge of determining whether to schedule your emergency CAT Scan (or maybe not). You don’t wish to set that cat among the poor pigeons. These will be the very beasts rising out of the sea of statism unleashed by a government-controlled healthcare system.”

To get a glimpse of President Camacho’s post office, read “Warning: Postal Worker Coming to A Clinic Near You,” now up on WND.COM, and on Taki’s Magazine every weekend.

Update I (Sept. 4): Presumably, everyone who reads this blog has watched “Idiocracy.” It’s compulsory. I mention in “Warning: Postal Worker Coming to A Clinic Near You,” that the dialogue with “sour-Asian-lady-who-speaks-in-tongues” and “rude-African-American-guy” was precisely the kind of dialogue Joe Bauers, the protagonist in Mike Judge’s superb satire “Idiocracy,” had conducted with the “‘tarded” doctor character. Here’s a snippet (make sure to click on the sound clips for full effect):

Doctor (Justin Long): “Hey, how’s it hang, ese?”
Doctor: “Well, don’t wanna sound like a d-ck or nothin’, but, uh, it says on your chart that you’re bleeped up. Uh, you talk like a fag, and your sh-t’s all retarded. What I do is just like, like, you know… like, you know what I mean? Like– (chuckles)”
Joe: “No, I’m serious here.”
Doctor: “Don’t worry, scrot. Now, there are plenty of ‘tards out there living really kick-ass lives. My first wife was ‘tarded.” She’s a pilot now.
Joe: “I need for you to be serious for a second here, okay? I need help.”
Doctor: “There’s that fag talk we talked about.”

Update II (Sept. 5): THE RACE ROT. Before I address Mr. Davis’ fabulous letter, hereunder, which also rejects the “bigot” epithet another reader attached to me, check the column on Taki’s Magazine, where Richard Spencer, the young, hip (and dashing) editor posted a picture of the “‘tard” doc, screaming when he discovers Joe is an “unscannable.” I can’t get enough of “Idiocracy.”

Back to the cast in the column. “Sour-Asian-lady-who-speaks-in-tongues”: Yes, too many native Americans speak bad English, but not all speak in tongues. Ignoring her “heritage” would have made the column forced, artificial and phony.

Next: “Who ya gonna call? Ghost Busters!” Indeed, who did I call on to rescue me from the Asian service clerk? The African-American gentleman. At least I thought he was one. I asked sourpuss to call him because he had struck me on a previous session in the “coven” as standing head-and-shoulders above the rest in his pleasant, professional demeanor (and he was certainly buff). He turned out to be a “‘tard.”

Had I been concerned with race—or even prone to thinking in such terms—I would have mentioned that the “feral female PO devotee” who accosted me on my way out was white. Or that the sweet young woman who took the initiative and rescued me was Hispanic.

I did neither. When you tell a story, some facts contribute to the narrative; others don’t. If anything, shying away from these descriptions rings false and racist. I wrote spontaneously. I was plotting neither a PC or an un-PC piece.

I’m an individualist. However, I have also said the following in this interview with Dr. David Yeagley:

“Broad statements about aggregate group characteristics, provided they are substantiated by hard evidence, not hunches, are not incorrect. Science relies on the ability to generalize to the larger population observations drawn from a representative sample. People make prudent decision in their daily lives as to where to invest scarce and precious resources—to wit, one’s life and property—based on probabilities and generalities.”

So while I treat each and every person on his merit, I do not shy away from speaking openly about demographic data.

I once lamented that, “We used to be able to joke about stereotypes without shrieking, ‘racism, Anti-Semitism,’ ‘Occidentalism,’ ‘Orientalism,’ ‘Eurocentrism,’ and that, “There is some truth to them.”

Updated: Those Invisible Jobs

Economy, Federal Reserve Bank, Labor, Political Economy, Propaganda

The excerpt is from my new WorlNetDaily.com column, “Those Invisible Jobs”:

“Let’s suppose a business employed ten workers in June. Along came Barack Obama and huffed and puffed and blew six jobs away. Four employees now run a pared-down operation. The next round of retrenchments will invariably entail fewer than six people. The president, or any other wolf in sheep’s clothing, may declare that our proprietor has shed fewer jobs in the month of July. But he may not frame a mathematical inevitability as a sign of economic recovery.

Fewer jobs lost probably means that there are fewer jobs to lose.

Nevertheless, this is exactly how the president spun the static employment market—and, to be fair, this is the way all presidents, aided by statisticians at the Bureau of Labor, finesse unemployment. …

The fig leaf of a “jobless recovery” is yet another unbeatable bit of political fraud.

A jobless economic recovery is the equivalent of a housewarming for the homeless. …

READ THE COMPLETE column, “Those Invisible Jobs,” on WND.COM. And on Taki’s Magazine, every weekend.

Update (August 28): Today, on Chuck Wilder’s nationally syndicated CRN show, “Talkback,” we briefly discussed “Those Invisible Jobs.” I immediately tackled, without being asked to, a possible argument against the case I make in the column’s first paragraph:

Let’s suppose a business employed 10 workers in June. Along came Barack Obama and huffed and puffed and blew six jobs away. Four employees now run a pared-down operation. The next round of retrenchments will invariably entail fewer than six people. The president, or any other wolf in sheep’s clothing, may declare that our proprietor has shed fewer jobs in the month of July. But he may not frame a mathematical inevitability as a sign of economic recovery.

Fewer jobs lost probably means that there are fewer jobs to lose.

The employment market is not static; it’s dynamic. Jobs are destroyed and created all the time. Efficiencies and productivity also reduce and improve the labor force. However, it’s safe to say that if ever the labor market was static, it’s now. And for a good reason. As a snapshot in time, the logical example I give above holds. Because—again, for good reasons—there are fewer jobs to be had, the number of jobs lost will also diminish. But this is because of 1) a relatively static job market. 2) A private economy, “penetrated and enervated by a tentacular bureaucracy.”

For ideologues out there slowly learning, on BAB, to meld reason, reality and ideology, don’t be rigid Postrelians (from Virginia Postrel’s dynamism folly).

Update II: The French Revolution Revived

Conservatism, Debt, Economy, Europe, Federal Reserve Bank, Founding Fathers, Inflation, Liberty, Political Philosophy

“Everything human and divine sacrificed to the idol of public credit,” is how the Brilliant Edmund Burke, supporter of the American colonists, described the illiberal, irreligious, intolerant French Revolution. In return, the punk Thomas Paine spat worthless venom at Burke for his devastating critique of that blood-drenched Revolution. Like contemporary Americans, Paine’s fealty was to the Jacobins, who, for his troubles, almost had him guillotined. The Rights of Man, in particular, is intended as a refutation of Edmund Burke’s critique. Naturally, it does nothing of the sort.

There is no affinity between the French and American founding ideas. And Paine’s proto-socialism—he advocated welfare financed by taxes—is quintessentially unAmerican. Yet Paine is beloved of Americans; of Burke I seldom hear. I intend to change that here on BAB.

Let me begin with an excerpt from Reflections on the Revolution in France, where Burke speaks about the proliferation of fiat money (“fictitious representation”). He does so a great deal in this magnificent tract. Burke hammering on about “current circulating credit,” “defiance of economical principles,” and “bankruptcy” could not be more germane in fin de siècle America:

“At present the state of their treasury sinks every day more and more in cash, and swells more and more in fictitious representation. When so little within or without is now found but paper, the representative not of opulence but of want, the creature not of credit but of power, they imagine that our flourishing state in England is owing to that bank-paper, and not the bank-paper to the flourishing condition of our commerce, to the solidity of our credit, and to the total exclusion of all idea of power from any part of the transaction. They forget that, in England, not one shilling of paper money of any description is received but of choice; that the whole has had its origin in cash actually deposited; and that it is convertible at pleasure, in an instant and without the smallest loss, into cash again. Our paper is of value in commerce, because in law it is of none. It is powerful on ‘Change, because in Westminster Hall it is impotent. In payment of a debt of twenty shillings, a creditor may refuse all the paper of the Bank of England. Nor is there amongst us a single public security, of any quality or nature whatsoever, that is enforced by authority. In fact, it might be easily shown that our paper wealth, instead of lessening the real coin, has a tendency to increase it; instead of being a substitute for money, it only facilitates its entry, its exit, and its circulation; that it is the symbol of prosperity, and not the badge of distress. Never was a scarcity of cash and an exuberance of paper a subject of complaint in this nation.”

[SNIP]

Readers: search the online volume, posted on Bartleby.com, and post comments excerpting your favorite tracts.

Update I (August 26): Prof. Dennis O’keeffe is the author of Burke, due out in October of this year.

Update II: Russell Kirk on Burke:

“Written at white heat, the “Reflections” burns with all the wrath and anguish of a prophet who saw the traditions of Christendom and the fabric of civil society dissolving before his eyes. Yet his words are suffused with a keenness of observation, the mark of a practical statesman. This book is polemic at its most magnificent, and one of the most influential political treatises in the history of the world.” (The Essential Russel Kirk, 2007, p. 144)