Category Archives: Government

Updated: Your Godless Government At Work

Barack Obama, Bush, Christianity, Economy, Federal Reserve Bank, Government, History, Inflation, Judaism & Jews, The West

The excerpt is from my latest WND column, “Your Godless Government At Work“:

“…Your gut tells you that your government is not only economically bankrupt, but morally bankrupt too—detached from any ethical moorings.

Alas, ‘figures don’t lie, but liars can figure’:

The experts say the complete opposite: The values and virtues ordinary mortals hold themselves to don’t apply to government. The macroeconomic and microeconomic solitudes are governed by separate codes of morality. Never the twain shall meet. Or so the money mavens claim.

Whereas you’ll pay dearly for your profligacy; the government’s recklessness will be rewarded. Whereas your debt will wipe you out; government debt will lift us all up. The latter is ‘stimulating’; the former sapping. …”

The complete column is: “Your Godless Government At Work

Update (Nov. 29, 2008): At the “Secular Right,” John Derbyshire, also the only interesting writer at National Review Online (there you go, Ilana, making friends again), has written a post about “Your Godless Government At Work.

I like the way Derb neutralizes me with the “ravishing and brilliant” appellations. Duly subdued. As one of the few intellectually honest, brilliant, paleo-conservatives around, Derb, naturally, always has my attention. (There are quite a few brilliant paleos, but not all are intellectually honest.)

A couple of comments from one secular rightist (me) to another (Derb): Although not religious, I’m a defender of the so-called Judeo-Christian tradition. I’m not hostile to religion (except to Islam, which is a political system).

The main points of Derb’s post are:

Derb: “Any given theology is of zero interest to anyone outside the tribe.”
Ilana: You don’t need to be an able Talmudist to knock that logic down. Islamic theology, for example, is of considerable interest if only in showing naive westerners that it (and its adherents) is incompatible with their creature comforts and their very continuance. Therefore, Islamic theology is of some, limited interest to those outside the Umah.

Derb: Talmud “is all just tribal chanting.”
Ilana: The little Talmud I learned at school I liked and was good at. It’s fun, and doesn’t involve “elucidate[ing] what Rabbi So-and-so meant back in the 13th century.” At least not when studied in a secular school such as the Israeli secondary school I attended. It involved logic and law. A great deal of the logical method—pilpul—through which Talmudic scholars arrived at the law seemed to me to follow logic, and is thus more universal than tribal. Brilliant too.

For the reductionists who whittle down aggregate, Ashkenazi IQ to exogenous factors—breeding and natural selection—I venture that the study of Talmud must have contributed to innervating those dendritic connections in Jewish brains.

As a secular individual, Thomism and the Talmud interest me both as part of Western tradition. Talmud a little more, maybe, for tribal reasons (grin): in the context of my column, my readers (evangelicals) value the Jewish tradition. If I can show that the latter values freedom, why, then I can turn them against their leaders. I can also try and draw religious Jews away from leftism. That’s why I think JIMS’s impetus is important, because it might help save a few Jewish souls from the sins of leftism and convert them to the righteous philosophy of freedom.

So are Judaism’s texts—theological and other—merely a tribal affair? No. Are all the scholars who busy themselves with the respective texts members of the tribe?

(The same goes for the Hebrew Bible. I’m of a generation of secular Jews which knows and loves the Hebrew Bible as a tremendous literary, philosophical, and historical achievement. It’s unique. Those who have studied it in Hebrew, as I have, know the 39 books for the vital, lively (very Jewish), earthy, pioneering, and fascinating works they are. There is nothing stuffy or pompous about the Hebrew Bible, either. Paul Johnson (is he a member of the tribe?) agrees. In A History of the Jews, he writes: “The Bible is essentially a historical work from start to finish. The Jews developed the power to write terse and dramatic historical narrative half a millennium before the Greeks.”)

The central error of anti-religion crusaders is that they consider the Jewish and Christian traditions systems of ideas, denuded of historical context, to be accepted or rejected on the strength or weakness of their intrinsic logic (or lack thereof). Judaism and Christianity, however, are who we are historically (the same is true, unfortunately, of followers of Islam). One can no sooner denounce them than one can disavow history itself.

And that would be irrational.

Misdirecting Production

Economy, Free Markets, Government, Political Economy

The planned $25 billion to a favored and failing industry, GM, will cause other, perhaps successful, companies to fail. It’s what Frédéric Bastiat referred to as “What Is Seen and What Is Not Seen“:

In the economic sphere an act, a habit, an institution, a law produces not only one effect, but a series of effects. Of these effects, the first alone is immediate; it appears simultaneously with its cause; it is seen. The other effects emerge only subsequently; they are not seen; we are fortunate if we foresee them.
There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.
Yet this difference is tremendous; for it almost always happens that when the immediate consequence is favorable, the later consequences are disastrous, and vice versa. Whence it follows that the bad economist pursues a small present good that will be followed by a great evil to come, while the good economist pursues a great good to come, at the risk of a small present evil.


We are being sapped by bad economists and their political pimps.

Ludwig von Mises wrote this in Interventionism: An Economic Analysis:

“In the unhampered market, forces are at work which tend to put every means of production to the use in which it is most beneficial for the satisfaction of human wants. When the authority interferes with this process in order to bring about a different use of the productive factors it can only impair the supply, it cannot improve it.” (P. 17)

Beat This, Barack

Barack Obama, Bush, Economy, Foreign Policy, Government

Obama apparatchiks of change like to accuse Bush of starving state programs when in fact he has presided over the greatest expansion of government since Lyndon B. Johnson. The truth is that Bush’s party, the Republicans Party, has always come through as a “reliable engine of government growth.”

Since 2001, reports the Wall Street Journal, federal outlays have increased to the tune of 16 percent on energy, 91 percent on “community development,” 22 percent on highways and mass transit, 57 percent on education, 55 percent on health research, 58 percent on veteran benefits, 51 percent on Medicare, 16 percent on social security, and a walloping 64 percent on national defense.

In case you forget the costs of America’s crumbling empire: economist Robert Higgs has pegged all “defense-related” spending at approximately $1 trillion per year.

Sadly, Barack will best Bush in spades.

Updated: Predicted Meltdown

Business, Communism, Economy, Government, Ilana Mercer, Inflation, Private Property, Socialism, The State

The brilliant Bob Higgs on the crumbling capital markets (read my comments following the “Snip”):

“The failure of Fannie Mae and Freddie Mac, setting in motion the biggest government bailout/takeover in U.S. history, brings a grim sense of fulfillment to competent economists. After all, what did people expect, that water would flow uphill forever?

This financial mega-mess is the same sort of event as the collapse of the USSR’s centrally planned economy, another economically unworkable Rube Goldberg apparatus that was kept going, more or less badly, for decades before it fell apart completely. Along the way, of course, famous (yet actually unsound) economists assured the world that everything was working out splendidly. As late as 1989, when the pillars were crumbling on all sides of the temple, Nobel Prize winner Paul A. Samuelson informed readers of his widely used textbook, “The Soviet economy is proof that . . . a socialist command economy can function and even thrive.”

In the future, we will see a similar breakdown of the U.S. government’s Social Security system, with its ill-fated pension system and its even more inauspicious Medicare system of financing health care for the elderly. These government schemes are fighting a losing battle against demographic realities, the laws of economics, and the rules of arithmetic. The question is not whether they will fail, but when—and then how the government that can no longer sustain them in their previous Ponzi-scheme form will alter them to salvage what little can be salvaged with minimal damage to the government itself.

Our political economy is rife with such catastrophes in waiting, yet the public always seems startled, and outraged, when the day of reckoning can no longer be deferred, and another apartment collapses in the state’s Hotel of Impossible Promises, loading onto the taxpayers more visibly the burden of sheltering the previous occupants.

Call it democracy in action or utterly corrupt governance; they are the same thing.

Each of these time bombs has at least one element in common: it promises current benefits, often seemingly without cost; but if it must acknowledge a substantial cost, it places that burden somewhere in the distant future, where it will be borne by somebody else. From the standpoint of society in general, every such scheme is a species of eating the seed corn. It satisfies the public’s appetite to consume something for nothing right now, with no thought for the morrow. It represents the height of irresponsibility by permitting people to live higher today than they can truly afford, financing this profligacy by borrowing recklessly and by taxing politically weak and ill-organized people in order to shower benefits on politically strong and well-organized special interests. …

The architecture of the Hotel of Impossible Promises is not arcane. All competent economists understand these things. Ludwig von Mises explained as early as 1920 why a centrally planned economy could not work as a rational system of allocating resources. The reasons why Social Security, especially its Medicare component, and many other such government programs contain the seeds of their own destruction have been explained time and again. Are the politicians who construct these structures really such idiots that they cannot understand the logic of what they are doing? Not at all. …”

[Snip]

The complete article is “Ticking Time Bomb Explodes, Public Is Shocked.” Read it. I disagree with the sentiment expressed in the last paragraph. Bob Higgs would find it hard to comprehend how stupid the corporate, political and academic elites truly are. This is the age of the idiot. Obama is an ass with ears. Ditto McCain. Take them at face value, Bob. Believe their idiocy. As hard as it may be for a man of your intelligence to grasp, they truly do not understand Mises and Hayek and Rothbard or even Friedman. The idea that misallocation of capital is inevitable in socialized systems is anathema to the incontinent legislators and the other cognoscenti. Psychologizing about their motives gives these intellectual tabula rasa more credit than they deserve. (Michael Rebmann of “North Buffalo Journal and Review” liked this rant.)

Update: I just saw CNN’s Campbell Brown, who, as I already noted, is not working with much, and her panel, laud the massive bailouts. Why? Because, as all agreed, the returns on this “investment” will be many times the investment. This is beyond rank utilitarianism. The concept of private property eludes Campbell and her commies. The risks in a bailout are socialized and the profits privatized. Theft is what this is all about–unconstitutional, criminal taking.