Category Archives: Socialism

Dazed And Confused

Debt, Economy, Federal Reserve Bank, Media, Socialism

Glenn Beck “interviewed” these two Keynesian clowns, without so much as challenging them. Beck wanted to badly, but lacked the intellectual tools to counter their revival of Keynes’s anodyne “Animal Spirits” concept.

Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism, By George A. Akerlof and Robert J. Shiller, is being studied and followed by Obama.

As is my habit, I preempted this issue some time ago in “Voodoo Child Talks Up A Storm”:

“The Economist’s A-Z of Economics quotes Keynes’ convoluted explanation of the concept of ‘animal spirits.’ I won’t; like his theorizing, Keynes’ writing is incoherent. (See for yourself.) So too is ‘Economics A-Z’ perplexed by Keynes’ whimsy: ‘Where these animal spirits come from is something of a mystery. Certainly, attempts by politicians and others to talk up confidence by making optimistic noises about economic prospects have rarely done much good.'”

“Because consumption is its be-all and end-all, consumer confidence is crucial to the Cult of Keynes. If the consumer is not crazy confident—even when he ought not to be—goes the ‘thinking,’ he’ll quit consuming until he drops. In short, our economic animists are hoping that the holy spirit of ‘confidence’ will enter the once bitten, twice shy lender, and make him lend. The same spell is supposed to mysteriously move the unemployed and penniless to spend.

I sincerely hope not.”

Had Glenn read the column, he might have had a bit of an angle. Is it my imagination, or is “Good Guy Glenn” becoming a lot like O’Reilly: guest are welcomed on so that he can talk at them/bounce his “ideas” off them, as they smile, nod and say stuff like, “Good question/you raise an important point.”

Update IV: Cooking The Books To Make Cuba-Care Come True

Debt, Economy, Elections 2008, Fascism, Healthcare, Individual Rights, Objectivism, Politics, Propaganda, Republicans, Socialism

To listen to the reports by the malpracticing media, health care lobbyists have volunteered, for the good of all, to pay for a large portion of the so-called health care reforms: “Representatives from hospitals, the insurance industry, medical device and pharmaceutical companies, labor and physicians came to the White House to discuss major steps being taken to lower health care costs across the board” by $2 trillion.

That’s the narrative coming from the White House and the cretinous press corp.

Yep, that’s how the “market” works: the president sweet talks “stakeholders” in an industry, and, before you know it, they’re cutting costs and improving delivery. And Meghan McCain will grow a brain.

“A good rule in politics,” explains Cato’s Michael Cannon, “is that if something sounds too good to be true, it usually is. Lobbyists don’t simply propose to reduce their members’ incomes. If they did, they would be fired and replaced with different lobbyists.”

“According to the Urban Institute, covering the uninsured would cost a minimum of $120 billion per year. Over 10 years, the cost could easily hit $2 trillion.That money’s gotta come from somewhere. And that’s where politics comes in. Everybody wants that money to come from someone else.” …

“Another possibility is that the industry – which would get more customers under universal coverage – wants to help the president and Congress ignore the math.”

“Democrats have offered reforms that they claim would reduce health care spending over time, including more coordinated care, preventive care, and disease management. The industry endorsed those reforms in its recent letter to President Obama. But the number-crunchers at the Congressional Budget Office say there’s little to no evidence that those measures will produce savings. And unless the CBO agrees, Congress has to cut payments or raise taxes.”

“Senate Finance Committee chairman has spoken openly about getting the CBO to change its mind. If reformers can say that even the industry is committed to achieving savings with these reforms, that might make it easier to get the CBO to relent, and allow health care reform to pass without the necessary payment cuts or tax increases – even if there’s still no evidence that the assumed savings will appear.”

Cannon, director of health policy studies at the Cato Institute, doesn’t call it “cooking the books”; he calls it “the new math of universal coverage.”

Update I: Myron, last I checked, procuring private care in Canada was against the law. Socialized medicine—more often than not analyzed only from a utilitarian point of view—is coercion and tyranny that criminalize consensual, naturally licit contracts. If Obama is indeed building-up to Cuba-cum-Canada care by increments, it’ll end in coercion of the worst kind. Canada, North Korea and Cuba do not have second-tier medicine.

Update II (May 12): My man Myron again: In Canada, politicians jump the queue or hop over to the US. The rich and powerful are seldom without. Obama may be an operational centrist, but he’s all about heavy-duty planning. The guy can’t conceive of anything but a planned economy.

As bad as the Democrats are, let us not forget the quintessential con men and women: the Republicans. They’ve just about to compromise on a credit-card bill of rights. As you know, the right to carry debt with no penalty is enshrined in the Constitution.

Yaron Brook of the Ayn Rand Institute details the Republicans’ contribution to socializing American health care:

“[A]lthough they claim to oppose the expansion of government interference in medicine, Republicans don’t, in fact, have a good track record of fighting it.

Indeed, Republicans have been responsible for major expansions of government health care programs: As governor of Massachusetts, Mitt Romney oversaw the enactment of the nation’s first ‘universal coverage’ plan, initially estimated at $1.5 billion per year but already overrunning cost projections. Arnold Schwarzenegger, who pledged not to raise any new taxes, has just pushed through his own ‘universal coverage’ measure, projected to cost Californians more than $14 billion. And President Bush’s colossal prescription drug entitlement–expected to cost taxpayers more than $1.2 trillion over the next decade–was the largest expansion of government control over health care in 40 years.”

“The solution to this ongoing crisis,” writes Brook, “is to recognize that the very idea of a ‘right’ to health care is a perversion. There can be no such thing as a ‘right’ to products or services created by the effort of others, and this most definitely includes medical products and services. Rights, as our founding fathers conceived them, are not claims to economic goods, but freedoms of action.

You are free to see a doctor and pay him for his services–no one may forcibly prevent you from doing so. But you do not have a ‘right’ to force the doctor to treat you without charge or to force others to pay for your treatment. The rights of some cannot require the coercion and sacrifice of others.

So long as Republicans fail to challenge the concept of a ‘right’ to health care, their appeals to ‘market-based’ solutions are worse than empty words. They will continue to abet the Democrats’ expansion of government interference in medicine, right up to the dead end of a completely socialized system.

By contrast, the rejection of the entitlement mentality in favor of a proper conception of rights would provide the moral basis for real and lasting solutions to our health care problems…”

[SNIP]

The Republicans—who, as I’ve joked quite seriously, need a giant tin-foil hat; not a bigger tent—have never made an argument from rights. I doubt they know what a negative individual right is.

With the exception of Meghaaan McCain and Carrie Prejean, of course.

Update III (May 13): LEONARD PEIKOFF is still the best at battling the enslavement of doctors.

Update IV (May 14): A correction to the low-ball guesstimates hereunder as to the amount of debt carried by each American: “Every American is now burdened, most of them unknowingly, with $184,000 in federal liabilities and unfunded government promises.”

Update III: Survival On The Road To Serfdom

Barely A Blog, Business, Economy, Ilana Mercer, IlanaMercer.com, Intelligence, Israel, Socialism, Taxation, The State

At this time on our road to serfdom, reader Michel Cloutier requests a little less platonic theorizing. He writes:

I’d like to read discussions about what we can do on the individual, or maybe local, level to help weather the storm. And please, let’s stay off the usual ’stockpiling of ammo and canned food’ thread.

Well, I’m glad “stockpiling of ammo and canned food” is what Michel has come to expect from BAB contributors. That’s a good start. A Mormon worth his salt will second that.

Seriously, we’re all doing the best we can to try and protect what is becoming harder by the day to protect: our livelihoods and property. So I’m game. Let’s discuss this. (And consider helping your host defray the costs associated with providing what she hopes is a helpful; supportive, instructive; educational, and prescient forum, for like-minded freedom lovers–a community.)

Update I: I’d like to thank you all for your very generous support in these hard times. Centuries ago, artists—among other creative folks—relied on discerning patrons to keep their work alive. Nothing has changed.

Mainstream intelligentsia is dishing out dirt, as usual. It is not only festooned with arrogant liars, but, worse: intellectual sloths; idiots bereft of the slightest affinity for reality, much less the natural laws of justice. Our side can begin to gain a rightful market share in the miasma that is the market place of ideas. But we need to work overtime at supporting and disseminating the truth and dissociating from the dreck. Out of chaos, some new, not-necessarily bad order may just emerge.

I know I nag, but if you have not yet signed up for the Mercer weekly e-newsletter, you can do so HERE.

Back to Surviving On The Road To Serfdom: I personally have quite a bit of faith in Peter Schiff, an investment adviser who follows the Austrian school of economics. What you have to understand is that, while Austrians are the only analysts to have both predicted and explained the meltdown, they cannot provide a timeline. For example, before house prices began to fall, my husband wanted to know when they would plummet. All could say was that prices would go down, although I could not say when, given that the crooks who’ve usurped the power of the purse would keep trying to re-inflate the bubble and keep prices high.

If you can, plan on surviving for two years without employment.

Update II (March 30): We spoke of understanding how easy Federal-Reserve credit leads to violent cycles of malinvestiment. Or as the inimical Peter Schiff puts it “The Government Liquored Them Up”:

Update II (March 31): TO SUM, here are some of your and my thoughts. (This is not investment advice; I do not, and am not qualified to dispense it):

• Gold

• Frugality

• Debt free

• Savings

• Refinancing mortgage at lower interest rates now on offer to those with good credit.

• Self-defense: if you dislike fire arms, consider an alarm system. It’s a deterrent. Mr. Van Wijk’s comment about not relying on The Powers is demonstrated daily. Residents of an old-age home in North Carolina are slaughtered by a gunman. The cop who did his professional duty and barged in, instead of waiting for backup, is hailed a hero. Yes, the default position is not to defend the folks. Also, remember that you don’t have the right de jure to self-defense in most states; if you defend yourself in your home you’re the one needing to justify your actions.

• Self-employment: our heroic South African readers have shown the way on this front. Also: chaos often leads to a reordering and to new opportunities. For example: my column is drawing more people now than during the halcyon years of free credit.

• Emergency supplies

• Tax revolt; I especially would like to see the property tax shakedown exposed in an organized, methodical way, resulting in repeal, preferably— but if not, a reduction of such taxes commensurate with the steep drop in the value of property. Property prices are going down; property taxes up.

• Educate others about liberty: ilanamercer.com is a great resource to turn people onto freedom. I’m doing the work; all you need to do is spread it.

• Keep fit; it helps with stress.

On a personal note: when we first arrived on this continent, and especially when we migrated from Canada to the US, we were convinced we were vastly poorer than the locals. We lived so much more modestly. In Canada, we were able to afford an apartment only. We clipped coupons and ate out for the first time two years after arriving in our new home. Until 2007, we had never owned a new car.

Things improved in the US. We purchased a home.

I had read a Fraser Institute paper that said immigrants took ten years to catch up to the locals. I put down our modest circumstances to that fact: we were still playing “catch up.” Now I know that this research, at least in our case, was bogus. The locals were living in Hog Central. We had practiced the frugality my in-laws (depression babies) had taught my husband.

Cars were bought cash (and hence; second hand, or used). The locals’ penchant for entering exorbitant leasing arrangements was a mystery to us. The credit card was treated as nothing more than a convenience, to be paid off in full every month (interest is horrendous if this is not done).

We’ve discovered that the locals are not that much wealthier, but, rather, more wasteful and credit happy.

A Republican Warns … Two Years Late

America, Debt, Economy, EU, Europe, Republicans, Socialism

Since the crowning of Obama, Republicans have begun to cultivate a convenient awareness of the weight of the federal debt on the American economy.

Penned in February of 2007, my “Inflation 101 For Women Pundits And Other Tyrants” put the burden Dubya’s “national debt of $9 trillion” had placed on “America’s $12.98-trillion economy” in perspective:

As the American national debt stands, we would not be admitted into the company of socialists: The European Union. The EU expects member nations to hold debt below 60 percent of GDP.

Two years later, in March 26, 2009, Sen. Judd Gregg (R-N.H.) claims the same, and makes headlines in The Hill.

A little late, don’t you think?! (Where do you go for the truth years ahead?)