Category Archives: Free Markets

Celebrate Private Property & Personhood Today

America, Colonialism, Constitution, Founding Fathers, Free Markets, History, Private Property, Propaganda

If I hear the likes of Michele Bachmann demand that we pay homage to a wonderful country and thank our lucky stars for the wages we are allowed to work for, I’ll hit the roof. If you want to be thankful on Thanksgiving, it is not “The Country” collective—whatever that means—that you should thank. A country is a composite of individuals. To the extent that a preponderance of Americans practice a respect for America’s founding documents—to that extent the collective will reflect this country’s great philosophy. Sadly, the number of individuals who practice our wonderful American creed is diminishing daily.

The Real Story Behind Thanksgiving is the “celebration of the triumph of private property and individual initiative.” Writes Paul Schmidt at Freedomkeys.com:

William Bradford was the governor of the original Pilgrim colony, founded at Plymouth in 1621. The colony was first organized on a communal basis, as their financiers required. Land was owned in common. The Pilgrims farmed communally, too, following the “from each according to his abilities, to each according to his needs” precept.
The results were disastrous. Communism didn’t work any better 400 years ago than it does today. By 1623, the colony had suffered serious losses. Starvation was imminent.
Bradford realized that the communal system encouraged and rewarded waste and laziness and inefficiency, and destroyed individual initiative. Desperate, he abolished it. He distributed private plots of land among the surviving Pilgrims, encouraging them to plant early and farm as individuals, not collectively.
The results: a bountiful early harvest that saved the colonies. After the harvest, the Pilgrims celebrated with a day of Thanksgiving — on August 9th.
Unfortunately, William Bradford’s diaries — in which he recorded the failure of the collectivist system and the triumph of private enterprise — were lost for many years. When Thanksgiving was later made a national holiday, the present November date was chosen. And the lesson the Pilgrims so painfully learned was, alas, not made a part of the holiday.
Happily, Bradford’s diaries were later rediscovered. They’re available today in paperback. They tell the real story of Thanksgiving — how private property and individual initiative saved the Pilgrims.
This Thanksgiving season, one of the many things I’m thankful for is our free market system (imperfectly realized as it is). And I’m also grateful that there are increasing numbers of Americans who are learning the importance of free markets, and who are working to replace government coercion with marketplace cooperation here in America and around the world.

Juxtapose the truth with the official historical version of the Thanksgiving celebration.

It might pique your curiosity to know that Thanksgiving was proclaimed by Diablo himself, in 1863. Read more about “The Most Cynical and Hypocritical Speech Ever Delivered” on that holiday.

My weekly WND.COM column will return next week. Happy private property and personhood day.

‘Math for Morons’

Economy, Environmentalism & Animal Rights, Free Markets, Healthcare, Trade

Having just feasted on an excellent, fresh, Chilean orange, here is a reminder, via the one and only John Stossel, that eating organic, local produce must not turn into an irrational fetish. Read “Math Lessons for Locavores”:

the local food movement now threatens to devolve into another one of those self-indulgent — and self-defeating — do-gooder dogmas. Arbitrary rules, without any real scientific basis, are repeated as gospel by “locavores,” celebrity chefs and mainstream environmental organizations. Words like “sustainability” and “food-miles” are thrown around without any clear understanding of the larger picture of energy and land use.

The result has been all kinds of absurdities. For instance, it is sinful in New York City to buy a tomato grown in a California field because of the energy spent to truck it across the country; it is virtuous to buy one grown in a lavishly heated greenhouse in, say, the Hudson Valley.

The statistics brandished by local-food advocates to support such doctrinaire assertions are always selective, usually misleading and often bogus. This is particularly the case with respect to the energy costs of transporting food. One popular and oft-repeated statistic is that it takes 36 (sometimes it’s 97) calories of fossil fuel energy to bring one calorie of iceberg lettuce from California to the East Coast. That’s an apples and oranges (or maybe apples and rocks) comparison to begin with, because you can’t eat petroleum or burn iceberg lettuce.

It is also an almost complete misrepresentation of reality, as those numbers reflect the entire energy cost of producing lettuce from seed to dinner table, not just transportation. Studies have shown that whether it’s grown in California or Maine, or whether it’s organic or conventional, about 5,000 calories of energy go into one pound of lettuce. Given how efficient trains and tractor-trailers are, shipping a head of lettuce across the country actually adds next to nothing to the total energy bill.

MORE.

Centrally Planned Scarcity

Barack Obama, Business, Capitalism, Economy, Free Markets, Political Economy, Regulation

In a free market, consumers direct supply and demand. And in a free market, increased demand leads to increased supply, as producers compete with one another to meet the demand.

We are being told that there is a “shortage of crucial medicines including cancer drugs,” and that “President Barack Obama on Monday signed an executive order aimed at remedying the shortage.”

Remedying? Really? At least one of Mr. Obama’s regulatory sleights of hand will increase the scarcity it seeks to remedy: hounding drug sellers for “charging exorbitant prices for scarce medicines.” High prices for scarce goods are what help to harmonize supply and demand.

Alas, “You can’t fix stupid”. The reported shortages in 178 drug—most involving older, generic, cancer drugs administered by injection, as well as antibiotics to treat infections and nutritional drugs for patients who can’t eat—would have been rectified in an unimpeded market:

The shortfall of supply has obviously followed a sudden urgent demand for these drug. Large demand and short supply would initially send the prices of these drugs rocketing. Profits in an unhampered pharmaceutical market would signal to the many drug makers that it’s time to enter into production.

Mr. Obama, however, has taken further action to shortcircuit the street signs of the market—profits.

When there is a shortage of a good in a highly regulated market such as ours, it is safe to say that it is a result of government incursion into the economy. Somethings gets between the market and the consumer—in the case of these drugs, the culprits are Food and Drug Administration regulations and the patent system, which gives a drug company a lengthy monopoly over manufacturing.

Regulated Scarcity

Free Markets, Healthcare, Law, Regulation, Socialism

When there is a shortage of a good, it is safe to say that it is a result of government incursion into the economy. And there are reported “shortages—“severe” shortages—in “drugs for chemotherapy, infections and other serious ailments.” The shortages, reports the Richmond Times-Dispatch, are “endangering patients and forcing hospitals to buy life-saving medications from secondary suppliers at huge markups because they can’t get them any other way.”

How would consumer demand have been heeded in an unhampered market?

The urgent demand for a drug would have been followed by a shortfall of supply. Large demand and short supply would initially send the price of the drugs rocketing. Profits in an unhampered pharmaceutical market would signal to the many drug makers that it’s pedal to the metal: time to enter into accelerated production of this scarce commodity.

Walter Olson of CATO provides more details about “the federal government’s widely publicized crackdown in recent years on pharmaceutical manufacturing and quality-control practices” to have played a role in current shortages.