Category Archives: Economy

David (Brooks) Discovers The Managerial State

Economy, Fascism, Old Right, Political Economy, Pseudoscience, Regulation, Socialism, The State

David Brooks, via Vox Day, makes a welcome discovery: The technocratic or Managerial State, a foundational concept among Old Right thinkers, Paul Gottfried, most recently. In my review of Gottfried’s superb After Liberalism, I explained:

The present managerial state certainly is not an instantiation of the liberalism of the American Founding Fathers. The post-revolution federal government was not to levy any taxes, and an expansion of its power required the consent of every sovereign state. “The American Revolution,” writes economist Murray Rothbard, “was against empire, taxation, trade monopoly, regulations, militarism and executive power,” all now implicitly embraced by the US and its Western allies.
Undergirding our public administration is an unyielding ideology bolstered by a monolith of toadying journalists and intellectuals. The dubious precepts of social psychology and the enforced “public philosophy” of pluralism have become means through which bureaucrats, educators and state-anointed experts embark on crusades against “prejudice”. Together with official multiculturalism they form an instrument of control, designed to privilege a certain position and to stigmatize those who think differently. By extension, speech codes, human rights legislation, employment quotas and other infringements, contradict the classical liberal espousal of rights to property and freedom of association.
“Unlike the communist garrison state or the Italian fascist “total state,” the managerial state succeeds by denying that it exercises power. It conceals its operation in the language of caring. But “behind the mission to sensitize and teach “human rights” lies the largely unacknowledged right to shape and reshape people’s lives. Any serious appraisal of the managerial regime,” cautions Gottfried, “must consider first and foremost the extent of its control—and the relative powerless of its critics.”

AFTER summarizing the Republican and Democratic expansion of “a vast national security bureaucracy,” and the latter’s bureaucracy accreting health care and financial reform laws, BROOKS concludes:

When historians look back on this period, they will see it as another progressive era. It is not a liberal era — when government intervenes to seize wealth and power and distribute it to the have-nots. It’s not a conservative era, when the governing class concedes that the world is too complicated to be managed from the center. It’s a progressive era, based on the faith in government experts and their ability to use social science analysis to manage complex systems.
This progressive era is being promulgated without much popular support. It’s being led by a large class of educated professionals, who have been trained to do technocratic analysis, who believe that more analysis and rule-writing is the solution to social breakdowns, and who have constructed ever-expanding networks of offices, schools and contracts.

Vox adds by alluding to the impossibility of economic calculation in a socialist system:

“The Misean [sic] concept of central information deprivation – not to be confused with F.A. von Hayek’s later refinement – first foresaw and explained this certain failure not long after the Progressive era began, in a monograph entitled Economic Calculation In The Socialist Commonwealth, published in 1920.”

UPDATED: Gold Is Bad For Government Health (Remember Executive Order 6102)

Business, Debt, Economy, History, Individual Rights, Inflation, John McCain, Regulation, Rights, Socialism, The State

The health scare bill is the gift that just keeps giving—giving-up individual freedoms to government. From a “TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE” to a “SURCHARGE ON HIGH INCOME INDIVIDUALS” to “STUDENT LOAN REFORM”; it’s all there, designed to leave little room for voluntary, peaceful exchanges. But we missed another provision among the thousands of sections the H.R.4872 Reconciliation Act of 2010 sports:

A “tack-on provision to the law that puts gold coin buyers and sellers under closer government scrutiny.”

Gold is a necessary financial hedge in the survival on the road to serfdom.

UPDATE (July 24): Gold Confiscation coming? FDR, idolized by BHO and McMussolini alike—by almost all offshoots of the duopoly, in fact—forbade “the Hoarding of Gold Coin, Gold Bullion and Gold Certificates” at pains of punishment: a fine of “not more than $10,000, or “imprisoned for not more than ten years or both.”

To Spend Or Not To Spend: That’s The American Question

Debt, Economy, Labor, Political Philosophy, Republicans, Socialism, Welfare

Can there be a real intellectual debate with respect to spending money not your own, which you don’t have a snowball’s chance in hell of repaying? Sure there can. In the US, that’s what goes for a serious debate of political philosophy. The country carries upwards of $100 trillion of debt, counting its unfunded promises. Yet here we are, bickering again about extending unemployment benefits.

In June, in what was his finest hour, Jim Bunning held up a vote on a $10 billion spending bill to extend unemployment benefits. Instead of standing tall and explaining the principle of not committing theft, he spent his days ducking a hand bagging from the bug-eyed Dana Bash of CNN.

A month on, and we’re clearly overdue for a repeat performance (this is, after all, the “Age of the Idiot”).

Can we hope that Senate Minority Leader Mitch McConnell (R., Ky.) will remain steadfast? So far he has been “defiant.” After President Barack Obama accused the Republican leadership Saturday of obstructionism, … McConnell told CNN’s ‘State of the Nation’ that the administration needed to end its ‘incredible spending spree.'”

I repeat, “the welfare state is intractable. The pigs outnumber—or are stronger electorally than—the productive. The first are feeding off the second and will not let up. Try to put distance between the state’s dependents and their Big Teat, and they’ll tear you to pieces.”

Libertarian (Trade) Deficits

Business, Debt, Economy, Free Markets, libertarianism

The following is from my new, WND.Com column, “Libertarian (Trade) Deficits”:

“… I am confident the legendary Lou Dobbs understands that voluntary exchanges are by definition advantageous to their participants. Costco, my hair stylist, and the GTI dealer—all have products or skills I want. Within this voluntary, mutually beneficial relationship, I give up an item I value less, for something I value more: a fee for the desired product or service. My trading partners, whose valuations are in complementary opposition to mine, reciprocate in kind. Silhouetted by the force of the state, this synchronized, magic market starts to splutter, and people suffer. That’s a no-brainer.

However, when it comes to the glories of an aggregate, negative balance of trade, allow me to respond to the typical libertarian post-graduate cleverness, as evinced by Dr. Boudreaux. In one respect libertarians are right: there is nothing wrong with my running a trade deficit with Costco, my hair stylist, or my GTI dealer, as I do—just so long as I pay for my purchases. The data demonstrate that Americans, in general, don’t.

All in all, by Vox Day’s account, ‘U.S. households, corporations and various levels of government’ owe fifty three trillion dollars! The consumption being lauded by libertarians is debt-driven consumption. In this context, a trade deficit is significant, inasmuch as it reflects not an increase in wealth but an increase in indebtedness.

To dismiss the gap between U.S. exports and U.S. imports as an insignificant economic indicator—now that’s silly. ” …

The complete column is “Libertarian (Trade) Deficits”

Read my libertarian manifesto, Broad Sides: One Woman’s Clash With A Corrupt Society.

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