Category Archives: Socialism

A Pit Of Perverse Incentives

Free Markets, Government, Political Economy, Regulation, Socialism, The State

Any government-controlled system is a pit of perverse incentives. It’s hard to get kinkier than to make failure tantamount to success. If an airplane crashes, in the US, because an air-traffic controller was napping, his bosses have cause to celebrate. Why? Because they will be rewarded with more funds to ostensibly “fix the problem,” and more staff, whether they need it or not. Failure is defined as success in a socialized system.

No wonder the FAA, and Ray LaHood, the US transportation secretary, flailed about aimlessly when a US air traffic controller was caught sleeping “while a medical flight was landing in the state of Nevada, marking the fifth lapse so far this year among controllers at American airports.” They faffed because they have no way of “diagnosing” the problem in an unaccountable system, which is not subject to the controls imposed by private property: an owner furious at the looming loss of contracts, law suits, and bankruptcy.

Show me a company in the private sector (which is not the recipient of government handouts) that is shielded from bankruptcy. An audit would reveal that most government departments, the FAA included, are insolvent, yet the fact that the taxpayer is forced to bankroll them indefinitely with tax dollars, immunizes these systems against all forms of accountability, fiscal and other.

Why do some of you want your doctor operating under the same set of incentives, where the doctor gets off scotfree for the odd slip of the scalpel; the taxpayer (you) pays.

UPDATE III: Bar (State) Monopolies From Extortion (Reagan PATCO Remarks)

Business, Education, Elections, Free Markets, Government, Labor, Socialism, The State, Uncategorized

By the look and sound of the striking educators on the streets of Madison, Wisconsin (here), the kids (plenty stupid in their own right), are not missing much. Chaos theory aside, the public sector was never supposed to be able to strike; that’s a later socialistic privilege they were granted (See “Regulation of unions and organizing.”) The absence of these coercive cretins in the classroom is no loss. Still, The government education cartel should not be permitted to hold taxpayers hostage. Collective bargaining in general ought to be outlawed unless workers and employers are free to associate and dissociate from one another at will. Otherwise, it’s extortion. Here, the monopolist has, in effect, the right to shake down the taxpayer, who has no recourse; cannot opt out of the abusive relationship, or protect himself from the extortionist.

THIS IS THE LAW OF RULE, NOT THE RULE OF LAW.

(To clarify: The only true monopolies are government monopolies. A company is a monopoly only when it can forcibly prohibit competitors from entering the market, a feat only ever made possible by state edict. In the free market, competition makes monopoly impossible. A large market share is not a monopoly.)

I would have no objection to unions were they voluntary, non-coercive associations that looked out for the needs of workers without trampling the rights of other non-aggressive parties.

While we’re meting justice (in theory, at least), government employees, politicians included, should not be allowed to vote. This is because they are paid from taxes garnished by force from taxpayers, and will always vote to increase their own powers and wages. They have always so voted! The other option is that they keep the vote and accept volunteer, unpaid status.

The moochers and the looters are upon us. Moochers “will claim your product by tears” and manipulation. The rioters among them will “take [your product] from you by force.” Both versions have been loosed upon us.

During the Greek wilding, I warned (as many others) that it was a minor event compared to the events that’ll unfold should we quit funding our federal behemoth’s bacchanalia. The sound and fury of the American public sector unions is going to be like Tyrannosaurus (T-Rex) tearing through Jurassic Park.

UPDATE I: Obama waded right into the affairs of Wisconsin, stating superciliously that “the new Republican governor, Scott Walker, [was] launching an ‘assault’ on unions with his emergency legislation aimed at cutting the state budget.” Obama had once before meddled in a state’s affair and was badly burned. Remember the case of the bad ass, race-baiting Harvard professor, Henry Louis Gates Jr.? BHO’s full-throated reaction in that case was in his capacity as the president of Black America (“the Cambridge police acted stupidly,” he asserted, “in arresting somebody when there was already proof that they were in their own home.”)

But Barack wears many hats. And today, he responded to the “oink sector” strike in Madison, Wisconsin, as a union man, a man beholden to “Organizing for America, the successor to President’s Obama’s 2008 campaign organization. It helped fill buses of protesters who flooded the state capital of Madison and ran 15 phone banks urging people to call state legislators.”

UPDATE II (Feb. 20): Larry Kudlow on a “European-style revolt”:

The Democratic/government-union days of rage in Madison, Wis., are a disgrace. Wisconsin congressman Paul Ryan calls it Cairo coming to Madison. But the protesters in Egypt were pro-democracy. The government-union protesters in Madison are anti-democracy; they are trying to prevent a vote in the legislature. In fact, Democratic legislators themselves are fleeing the state so as not to vote on Gov. Scott Walker’s budget cuts.
That’s not democracy.
The teachers’ union is going on strike in Milwaukee and elsewhere. They ought to be fired. Think Ronald Reagan PATCO in 1981. Think Calvin Coolidge police strike in 1919.
The teachers’ union on strike? Wisconsin parents should go on strike against the teachers’ union. A friend e-mailed me to say that the graduation rate in Milwaukee public schools is 46 percent. The graduation rate for African-Americans in Milwaukee public schools is 34 percent. Shouldn’t somebody be protesting that?

UPDATE III (Feb, 22): PEW AND THE PUBLIC. Pew Research cautions that “it is not clear whether the public nationally will support Wisconsin Republicans’ efforts to prevent government workers from unionizing. In the Pew Research survey, which was conducted before the Wisconsin protests drew national headlines, people were asked for their reaction when they hear of a disagreement between a labor union and a state or local government: 44% say that when they hear of such a dispute they side with the unions while 38% say they side with the governments.”

This, even though “organized labor is in a much weaker position today than it was during the air traffic controllers’ strike.” Back in August of 1981, the public solidly supported Reagan’s “reaction to the PATCO (Professional Air Traffic Controllers Organization).” He fired the controllers, and banned the government from ever rehiring them.

WE ARE DOOMED.

Here are Reagan’s memorable remarks on the air traffic controllers’ strike. Note this president’s clear reference to the burden the oink sector imposes on its fellow citizen; notice his allusion to the government’s monopolist position. Reagan was capable of clearly articulating the principles of freedom, and, in this case, he also acted on these principles.

Fire Wisconsin’s government employees.

“The Great American Waiver Act”

Government, Healthcare, Regulation, Republicans, Socialism, The State

With a title such as “Repealing the Job-Killing Health Care Law Act,” you’d think the House Republicans’ plan to kill HealthScare would find its way onto the front pages of the parrot press. Alas, unless the migraine I’ve suffered for the past two days has interfered with my vision, I saw no exclusive report on the bill over the website pages of the New York Times, TIME magazine, Newsweek, Orange County Register, or the Los Angeles Times.

Luckily, there is Michelle Malkin, who covers the news exceptionally well.

Befitting a Republican political ploy is how the Obama houseboys of Hardball saw this simple Bill and its title.

From the hulking horror itself I had originally excerpted here, so that you could get a feel for the impenetrable legalese the Managerial State has evolved over time to ensure the people have not the faintest notion what’s upon them.

If the H.R.4872 Reconciliation Act of 2010 was not cause for revolution, I don’t know what is. It has thousands of sections. Green provisions, early learning fund, promotion of employment experience, translation or interpretation services, whistle blower provisions—all sub-chapters in what is a violative bill by every conceivable criterion.

The two pages endeavoring “to repeal the job-killing health care law and health care-related provisions in the Health Care and Education Reconciliation Act of 2010” are indeed too sweet and simple to be true. Not in Washington.

The Wasteland Of Central California

IMMIGRATION, Regulation, Socialism, The State

Victor Davis Hanson crisscrossed central California, looking at the lay of the land, and the ineluctably intertwined effects of statism and rampant illegal immigration:

“The last three weeks I have traveled about, taking the pulse of the more forgotten areas of central California. I wanted to witness, even if superficially, what is happening to a state that has the highest sales and income taxes, the most lavish entitlements, the near-worst public schools (based on federal test scores), and the largest number of illegal aliens in the nation, along with an overregulated private sector, a stagnant and shrinking manufacturing base, and an elite environmental ethos that restricts commerce and productivity without curbing consumption.

During this unscientific experiment, three times a week I rode a bike on a 20-mile trip over various rural roads in southwestern Fresno County. I also drove my car over to the coast to work, on various routes through towns like San Joaquin, Mendota, and Firebaugh. And near my home I have been driving, shopping, and touring by intent the rather segregated and impoverished areas of Caruthers, Fowler, Laton, Orange Cove, Parlier, and Selma. My own farmhouse is now in an area of abject poverty and almost no ethnic diversity; the closest elementary school (my alma mater, two miles away) is 94 percent Hispanic and 1 percent white, and well below federal testing norms in math and English.

Here are some general observations about what I saw (other than that the rural roads of California are fast turning into rubble, poorly maintained and reverting to what I remember seeing long ago in the rural South). First, remember that these areas are the ground zero, so to speak, of 20 years of illegal immigration. There has been a general depression in farming — to such an extent that the 20- to-100-acre tree and vine farmer, the erstwhile backbone of the old rural California, for all practical purposes has ceased to exist.

On the western side of the Central Valley, the effects of arbitrary cutoffs in federal irrigation water have idled tens of thousands of acres of prime agricultural land, leaving thousands unemployed. Manufacturing plants in the towns in these areas — which used to make harvesters, hydraulic lifts, trailers, food-processing equipment — have largely shut down; their production has been shipped off overseas or south of the border. Agriculture itself — from almonds to raisins — has increasingly become corporatized and mechanized, cutting by half the number of farm workers needed. So unemployment runs somewhere between 15 and 20 percent.

Many of the rural trailer-house compounds I saw appear to the naked eye no different from what I have seen in the Third World. There is a Caribbean look to the junked cars, electric wires crisscrossing between various outbuildings, plastic tarps substituting for replacement shingles, lean-tos cobbled together as auxiliary housing, pit bulls unleashed, and geese, goats, and chickens roaming around the yards. The public hears about all sorts of tough California regulations that stymie business — rigid zoning laws, strict building codes, constant inspections — but apparently none of that applies out here.

It is almost as if the more California regulates, the more it does not regulate.” …

MORE.