Category Archives: Private Property

Circumscribing Gouging = Circumscribing Private Property

Business, Capitalism, Economy, Ethics, Individual Rights, Objectivism, Political Economy, Private Property, Reason

Rights-based arguments are seldom made by members of the media and their guests. In explaining what a (semantic) aberration the term gouging is John Stossel opted to privilege the utilitarian angle. So did his guests.

Like any voluntary exchange of goods, “gouging” amounts to free people exchanging property to which they hold title. Each relinquishes something he values less (money/goods/labor) for something he values more (money/goods/labor).

John Stossel and guests prefer to stick to purely utilitarian economics. That’s the mindset that prevails.

I’d like to hear our side argue for freedom by saying that, whether free markets work or not is secondary to the unalienable, immutable, rights of men. It so happens that—surprise!—upholding the absolute rights of the individual to life, liberty and property works very well. Wealth redounds to all.

Bless Stossel for his efforts to promote economic literacy, over decades. However, I listened to Steve Horowitz last night, and then “muted” when Stossel made the perennial decision that guides the dueling perspectives political panel.

Rather than let Steve enlighten, Stossel allowed the reality denier to hog the stage with a perversion, not a version, of the truth.

“By presenting the public with two competing perspectives—you mislead viewers into believing that indeed there are two realities, and that it is up to them to decide which one is more compelling.”

This positively postmodernist format would be fine were Rome not burning. However, “a Homeric contest is underway in the USA. Rome is burning. Now is not the time to fiddle or to unwittingly defraud the public.”

As I wrote in “More Chris Christie Cretinism*: Outlawing Price ‘Gouging,’” in addition to acting as “the street signs of the economy,” “prices are the prerogative of private property”:

In a free market, the institute of private property ensures that we have prices. “Prices are like a compass: pegged to supply and demand they ensure the correct allocation of resources. Without market prices, supply and demand cannot be brought into balance and, by extension, consumer needs cannot be satisfied. Conversely, in socialized systems there are no prices because there is no private property. Absent such knowledge, misuse, misallocation and mismanagement of capital are inevitable.”

UPDATED: More Chris Christie Cretinism*: Outlawing Price ‘Gouging’ (Befriending Obama)

Business, Economy, Free Markets, Private Property, Socialism

In the previous post, we mentioned an economic fallacy that gets floated during major disasters. It is that “Storms Create Jobs.” The idea of price gouging is another example of erroneous economic thinking that creeps into the discussion, especially during natural- and government-generated disasters.

Writes Salon’s Matthew Yglesias:

… there are some things politicians of both parties can agree. Price gouging, for example, is wrong. New York Attorney General Eric Scheiderman, a Democrat, wants you to know it. But this isn’t just for soft-hearted liberals. New Jersey’s notoriously tough conservative governor, Chris Christie, also put out a weekend press release warning that “price gouging during a state of emergency is illegal” and that complaints would be investigated by the attorney general. Specifically, Garden State merchants are barred from raising prices more than 10 percent over their normal level during emergency conditions (New York’s anti-gouging law sets a less precise definition, barring “unconscionably extreme” increases).

Even a progressive like Yglesias is able to grasp some of the natural laws of economics. A sharp rise in prices to coincidence with reduced supply and an increased demand for a good signals the need to conserve scare resources:

The basic imperative to allocate goods efficiently doesn’t vanish in a storm or other crisis. If anything, it becomes more important. And price controls in an emergency have the same results as they do any other time: They lead to shortages and overconsumption. Letting merchants raise prices if they think customers will be willing to pay more isn’t a concession to greed. Rather, it creates much-needed incentives for people to think harder about what they really need and appropriately rewards vendors who manage their inventories well.

Still, some truths escape liberals (and most conservatives). Prices are the prerogative of private property.

In a free market, the institute of private property ensures that we have prices. “Prices are like a compass: pegged to supply and demand they ensure the correct allocation of resources. Without market prices, supply and demand cannot be brought into balance and, by extension, consumer needs cannot be satisfied. Conversely, in socialized systems there are no prices because there is no private property. Absent such knowledge, misuse, misallocation and mismanagement of capital are inevitable. Prices are the street signs of the economy.”

* Chris Christie has shown himself to be more of an opportunistic lowlife than expected..

UPDATE (Nov. 1): Obama’s New BFF (Best Friend Forever):

Every day that Christie is rhetorically hugging Obama is a day when he’s not making the case for Romney. Christie went even further in an interview on Fox and Friends Tuesday morning, professing little interest when told Romney might visit to tour some of the damage in his state. “I have no idea” [if Romney is coming], “nor am I the least bit concerned or interested,” Christie said. “I have a job to do in New Jersey that is much bigger than presidential politics.”

UPDATED: Orgasmic And Idiotic For Obama (Brave Boeremeisies)

Africa, Ann Coulter, Constitution, Democracy, Elections, Feminism, Gender, Intelligence, Private Property, South-Africa

Way back (in 02.13.08), I mentioned a very old suggestion I had made on a discussion list of unconventional individualists. It was this: “I’d give up my vote if that would guarantee that all women were denied the vote.” (Also here, under “Feminism & Feminization.”)

Now, don’t get confused. From the fact that one acknowledges that most women should not have the vote—it doesn’t follow that certain individual ladies are not blessed with great intelligence and should be respected for it. (This is the error of some ultra-conservatives in conceptualizing about certain women.)

On the topic of vaginas voting, the highly intelligent Ann Coulter counseled the same, during a riveting TV segment with the “retarded” and insufferably pompous Piers Morgan. (At one point, Ms. Coulter just glared at this idiot, who refused to talk about anything other than one of her tweets, and who, whenever she spoke, stopped the conversation to demand why she could not be as reasonable all the time, as if cerebrally compromised liberals like himself could detect reason.)

What prompted Ms. coulter’s comment on female suffrage (how we suffer for it) was the Hos for O commercial, in which a representative of the pox of a cohort known as young women (Lena Dunham) likened voting for Obama to her first sexual experience. (Do you allow your daughters to carry on like this?)

The whole thing is repulsive down to the exaggerated, affectatious hand movements (what’s with that bit of bad breeding?).

Watch:

To the Nineteenth Amendment, which granted women the vote, add the 26th Amendment. It was smuggled into the Constitution by statute, and it artificially swelled the ranks of Democratic voters by millions of 18-, 19-, and 20-year-olds. While they don’t work for a living, youngsters get to vote for dibs on the livelihood of those who do.

Naturally, CNN, which employes an army of “Harpies Hot For Big Daddy O,” went and axed a segment that offered up evidence that hormones sway female voting patterns. Hormones and a propensity for sentimentality sway most decisions women make. And this proclivity is encouraged in a culture that equates whimsy, capriciousness and silliness with creativity and individualism.

UPDATE (Oct. 28): In response to a fascinating thread on Facebook (stimulated by Brian James Smith’s comments).

BJS: Sigh.. big sigh…. I’m glad I don’t live there anymore. Rather the uncertainty of Africa then the completely plasticized construct of american political/social thought and action. We have no leadership and a pate’ -brained populace, so it seems.
IM: BJS: Perceptive points you make. Thanks. I must say that I understand what you say when I listen to your average SA little (black) girl speak about her future, usually in good English and with the sweet innocence our kids have lost (thanks to their parents and pedagogues).

AND, checkout the brave Boeremeisie (Afrikaner lass).

Mourn The Death Of Mining In South Africa (The Canary In The Proverbial Mine)

America, BAB's A List, Elections, Federal Reserve Bank, Founding Fathers, Inflation, Labor, Private Property, Socialism, South-Africa

A close acquaintance writes from South Africa: “With the unrest in mining, cash flow has gone for a ball of sh-t. No one can hire. Practically all mining has come to a halt. Bloody f-ucking Malema [ANC Youth League president]! Into The Cannibal’s Pot [my 2011 book] says it all. Thank you.”

[SNIP]

I don’t expect Americans to comprehend the loss of South Africa. Americans are, as Pat Buchanan once put it so well, a silly people living through serious times. Other than adjectival overkill (“a deeply silly people in deadly serious times), I’d add to Buchanan’s aphorism that, like Esau did, Americans have squandered their birthright—“the Old Republic of property rights, freedom of association, and radical political decentralization”—and replaced it with a mess of pottage.

Americans, moreover, lack an understanding of the philosophical inheritance they’ve frittered away. How then can such a silly people comprehend the loss of South Africa?

Mining has been “the main driving force behind the history and development of Africa’s most advanced and richest economy.”

Mining is dying in South Africa.

The mining sector is the canary in the proverbial mine.

Barry Downs is an American who knows better. Formerly based in South Africa, this mining sector investor knows a thing or two about what matters and what creates value. He emails with these invaluable insights:

“The mining industry unrest in South Africa is deepening, with militant senior trade unionist even talking about expropriation of assets and nationalization.

Shares of SA gold and Platinum mining companies remain under pressure as many miners remain on strike and non striking miners are being intimidated. The ANC government, meanwhile, appears powerless to turn the deteriorating situation around.

Just think: South Africa, over a 100 year span, produced 41,000 metric tons ( 1.3 billion ounces) of the only real money in the world, i.e., gold, and they still have identified 6,000 metric tons of mineable gold and with some high powered exploration will only increase reserves.

The ANC government and Reserve Bank regime fails to understand that the continuing global economic crisis will ultimately be focused on the global fiat paper money system, which is breaking down, and in the end there will be a massive run from paper and into gold.

There has been talk in this country about the US being eventually forced to stabilize the American economy by backing the dollar again with gold, and they will use the 1933 Bretton Woods formula that came up with $35 an ounce. To come up with the new gold price, they will take the US monetary base, which is $2.7 trillion, and divide it by the US Treasury gold holdings, which is 262 million ounces. The number becomes $10,300 and ounce.

The ANC government, if it had any smarts, should be going everything possible to protect it’s gold mining industry, knowing that future revenues from the industry will likely expand many times over as the gold price rises.

Nationalization will mean that the 6,000 metric tons of gold reserves may never be mined and the industry will just end up closing down. The 1,000 metric tons of gold South Africa produced, annually, 40 years ago, has declined to only 200 tons annually. It may end up at zero. Is it possible that the ANC government will just watch the goose that lays the golden egg killed off?

Given the mentality illustrated throughout your book, Into the Cannibal’s Pot,, I think the answer is yes.”