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Johnny must NOT work

It is a common misconception that without child labor laws there would be widespread exploitation of children.

The historical reality is that it is ECONOMIC conditions that determine whether parents will permit their children to work to augment the family income. The evidence for this is the fact that Child labor is high in poor countries irrespective of whether they have Child Labor laws.

Another misconception is that the Industrial Age (and the advent of Capitalism) led to an increase in Child labor. This point is often made by those who view pre-Industrial Victorian England through rose-colored glasses.

Quoting Wikipedia:
"claims of increased misery...[are] based on ignorance of how squalid life actually had been earlier. Before children began earning money working in factories, they had been sent to live in parish poorhouses, apprenticed as unpaid household servants, rented out for backbreaking agricultural labor, or became beggars, vagrants, thieves, and prostitutes (Nutten). The precapitalist "good old days" simply never existed"[7]
"The pre-factory age was not a time of happy, contented kids. From 1730 to 1740, 75 percent of children in England died before age five. From 1810 to 1829, supposedly the evil age of the factory, infant mortality fell to 32 percent and would continue to drop. Capitalism and the industrial revolution gave youngsters a chance to survive. "[8]
Laws were passed to prohibit child labor in the industrialized countries; however it is unclear whether this legislation is the principal cause of the decline in levels of juvenile employment.[9] Research by Clark Nardinelli suggests that child labor was already decreasing in the United States and Western Europe prior to the passage of legislation, due to an increasing demand for educated and literate adults brought about by an increasing technological sophistication of industry. The demand for educated workers also provided an incentive for children to stay in school to meet the new demands of industry.

My point is not that we shouldn't have Child Labor laws - they are necessary to protect children who are otherwise vulnerable to exploitation.

My point is that Leftists who have a 'feel good' law to solve every social problem would be well advised to understand the positive effects of a healthy economy. Most 'feel good' laws create an additional burden on the economy - e.g. the recent increase in the minimum wage. Such laws often harm those that they were supposed to benefit.

In the Wonderland of Washington DC, political rhetoric trumps common sense.
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Johnny MUST go to school

Should every parent be required by law to send their children to school?

Anyone who answers "yes" to that question must accept the premise that Education is a right - it would then follow that it is acceptable to use tax revenues to pay for schools.

My response:
Parents should NOT be required to send their children to school. That is in the same vein that parents cannot be REQUIRED to feed their children nutritious food. With the exception of child endangerment, all these decisions should be left to the discretion (and pocketbook) of the parent. Those who regard education as a value, will send their children to the best schools that they can afford.

Is it worthwhile to consider the application of the Medicare/Medicaid model to education?

In this model, the Govt is a provider of insurance for the elderly or the indigent. Govt insurance is accepted by mostly private medical providers.

In my opinion, this would be a somewhat better system than having the Govt actually own & operate schools - which has been a complete disaster. In some ways, providing school vouchers (for those below the poverty line) that are accepted at private schools would be analogous to the Medicare/Medicaid model. At least there would be a competitive market model for private education system. If our K-12 education were to function at least as well as the Medicare/Medicaid model in healthcare, we would be better off as a country!

After all, the Govt got into the business of education in order to ensure an equality of opportunity for poor children. Unfortunately, despite the laudable sentiments, the worst possible model was chosen, mandating Govt to own and operate schools! Needless to say, the poor children are not getting the best possible education - and neither is anyone else who sends their kids to public schools. So, the Govt accomplished the 'equalization' of opportunity for poor kids - by reducing the quality for everyone.

That said, I think that school vouchers are at best, a half-measure, and would inevitably be prone to similar problems as Medicare/Medicaid. Higher costs and lower quality invariably follow any kind of entitlement (see my blogpost titled "Of Tortillas .. and men").
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Free education - at whose expense?

In my previous post I discussed a common mis-statement by Leftists and liberals that "Brown vs the Board" established education as a 'right'.

But if education is not a right, does that mean that it isn't important - of course not!

Education is a VALUE, something that all well-intentioned Americans realize is extremely important.

Leftists often interchange 'rights' with 'values' - an honest mistake, but one that should be examined.

A 'value' is that which we seek to gain or retain. To those who value it, Education is a 'value'. Education has to be acquired, usually at a considerable cost.

A 'right' is a claim that cannot be taken away. Education cannot be 'claimed' without the enslavement of its providers. Similarly, neither affluence, food, shelter, transportation and medical care are rights.

I've found that if you ask the question "at whose expense?", it becomes easy to identify 'rights'. If a particular right comes at the expense of someone else, then it is probably NOT a right.

You may apply the "at whose expense?" test on all of affluence, food, shelter, transportation and medical care , and you will find that they fail. So, if you claim 'medical care' as a right, ask the question - and you will see that if you claim medical care as a 'right' you are effectively enslaving doctors, nurses, hospital administrators, insurance companies, pharmaceutical companies and others.

So, education is a VALUE and not a RIGHT. Despite the euphemistic rhetoric of 'free public education' we are all paying for it now via taxes.

Education is (and has always been) a VALUE in America. There has always been a considerable cost to attaining this value, a cost that parents are always prepared to pay.

BTW, the 'values vs. rights' discussion is more important than the semantic differences implied.

That is because many Leftists BEGIN with a false premise, e.g. 'education (or health care) is a right'. Armed with that erroneous position, they set national policy and create Govt funded bureaucracies to administer those flawed policies.

I am vehemently opposed to public funding of education. I oppose it on moral grounds (the enslavement argument) as well on pragmatic grounds (it doesn't work).

Education, like most other things that have value, is a scarce commodity. Central planning, the panacea of Statists, has been the worst solution to just about every problem. So, by choosing a 'central planning' solution to education, we are giving tacit approval to the placement of education at a very low priority.

Q) How much importance do I give education?
A) So much that I want to see it done well - and therefore seek to privatize it.
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Brown vs. the Board: is education a RIGHT?

"Brown vs the Board" was indeed a landmark case.

There are many myths surrounding that case. One of those myths is that this case established education as a RIGHT.

Here's what the case DID accomplish:

* it dismantled the legal basis for racial segregation in schools and other public facilities.

* By declaring that the discriminatory nature of racial segregation ... "violates the 14th amendment to the U.S. Constitution, which guarantees all citizens equal protection of the laws," Brown v. Board of Education laid the foundation for shaping future national and international policies regarding human rights.

* It reaffirmed the sovereign power of the people of the United States in the protection of their natural rights from arbitrary limits and restrictions imposed by state and local governments. These rights are recognized in the Declaration of Independence and guaranteed by the U.S. Constitution.

BTW, in the interest of intellectual honesty, I must confess that I am not an expert in constitutional law. I found the above points after a quick Google search led me to: http://brownvboard.org/summary/ from which I 'borrowed' freely!

Nowhere in this case was the "right to Education" mentioned.

The only 'right' that is mentioned is the 'right of equal protection'.
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Successful Soviets - an oxymoron?

The Soviet Union had some significant accomplishments, including putting the first man in space.

The Soviets also had pretty good universities, particularly in the pure sciences.

Do these achievements cast Socialism (or its older brother, Communism) in a different light?

The stated goals of the Soviets were to have a self-sufficient system which produced an abundance of products and services for the Comrade Proletariat Toilers - instead of an accumulation of wealth in the hands of the bourgeoisie. The reality: famine in the Ukraine, breadlines in Moscow, empty grocery stores, chronic shortages everywhere.

Their (limited) early success in the Space Program came at the cost of a massive mis-allocation of resources. Central planners in Moscow literally gave the shirt off their citizens' backs to make that achievement possible. It is fitting therefore that in 1961, the same year that Yuri Gagarin became the first man in space, the Soviets also built a wall in Berlin to keep capitalist W. Germans from escaping to the E. German paradise.

What about the vaunted halls of academia that one hears about in Socialist countries?

Well, in a sort of back-handed way, the lack of private enterprise actually helped make their Universities better .. and this applies to countries like China, India etc.

How, you ask?

Due to the lack of opportunities, the top tier of every graduating class went into relatively well paid teaching jobs at Govt-run universities. So, their best minds, lacking other productive avenues available to their counterparts in Capitalist-oriented countries, went into teaching (or into very few, select, Govt-paid projects such as their Space, Nuclear or Defense Programs).

Iterate that concept over a few generations, and you have universities with brilliant professors, that produce good students with few productive avenues after graduation.

So, not only do Socialist/Communist systems mis-allocate materials, they do the same (or worse) with their human resources!

They did well in a few 'Govt select' professions such as Rocket Scientists, Nuclear Engineers and Professors.

What they lost were generations of Inventors, Doctors, Engineers, Businessmen, Dentists, Technicians, Mechanics, Assemblers, Farmers, Truckdrivers, .. , and yes, lawyers!

What's the lesson here? When we increase the size and scope of our Govt, we increase our PUBLIC sector at the expense of our PRIVATE sector. In addition to the higher taxation that acts as a millstone around the productive sectors of our economy, it also leads to the severe mis-allocation of people.

In the PRIVATE sector, a failed entity (e.g. a corporation that suffers sustained losses) dies a natural death.

However, it is very difficult to shrink failed PUBLIC sector programs that are already in existence. Usually that is because of a false sense of entitlement that invariably sets in after generations of dependence. There is a hoping-against-hope mentality that persists as programs that are known to be broken receive more funding every year (e.g. Public Education). After a few generations, even rational, well-meaning people think that it is impossible to consider any alternatives to those programs.

How many times have we heard "If the Govt didn't provide K-12 education, our children would not be well-educated"? Strangely, this question is asked by people who KNOW that our children are not receiving a satisfactory education in our K-12 system.

Let's keep all these facts in mind during the upcoming debates on Universal Health Care.
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Of Tortillas .. and men

An recent article in the Washington Post caught my eye.

Here is the short version (click here to read the WaPo article):

* Ethanol is made from corn
* Mexico (and other countries) convert to Ethanol as a fuel, mostly due to well-intentioned mandates from various green-keen Govts. It is useful to note that Mexico is an oil-exporting country.
* As a result of the increased demand, the global price of corn goes up
* Since corn tortillas are made from .. uh .. corn, the price of tortillas is going through the roof
* Tortilla manufacturers, long beloved by the populace, are now becoming targets of hatred
* Within one year, Mexico has gone from being an exporter of corn to an importer
* Mexico, being a socialist country, deems tortillas to be an indispensable product
* The Govt of Mexico embarks on a plan to CAP the price of tortillas

Guess what the 'well-intentioned' policy of the Govt of Mexico will do to Tortilla mfrs and to their employees?

If the price of their product is capped by Govt fiat, and the price of their main raw material (corn) goes up, their profit margins will shrink. Some mfrs may also go out of business. Many of those who were previously employed by Tortilla mfrs will be unemployed. Since there are 65,000 - 200,000 Tortilla mfrs in Mexico, the impact could be significant.

With the price of tortillas capped, consumers will be immune to the effects of the shortage. So, the demand will remain high, which ensures that the price of corn remains high. Without adequate incentives to produce more tortillas at their low profit margins, the demand will outstrip supply - causing shortages. By next year, we will probably see people in the streets, protesting the shortages that their well-intentioned Govt has caused.

> Click here for a link to the WaPo story. I'm sure that many TH readers will get a chuckle out of it.

This story is obviously indicative of the failures of central planning over a market based economy. But is there a lesson in this 'Tortilla Flat' tale for our 'central planners'? Well, how about applying a similar model to Universal Health Care:

* During the 1950s (and prior years), the US employed the 'old-fashioned' fee-for-service approach
* Prices rose moderately, but the increases did not significantly outpace inflation
* In the 1960s, the US Govt mandated the creation of Medicare to ensure that seniors didn't have to worry about paying for healthcare in their declining years. A new voter bloc was born, one that everyone would belong to eventually - so, there were few protests.
* The costs of health care went up due to the increased demand - and since there was no longer any rationing of this scarce commodity, for a significant portion of the population that was the largest consumer of health care.
* The US Govt passed laws that led to the creation of HMOs -  that capped costs, limited access etc.
* Prices continued to rise, offset only by lower quality and rationing of access
* Now (circa 2007) health care is deemed to be an indispensable right
* There is a clamor from Socialist politicos to apply the 'successful' Medicare model to all
* After the 2008 elections, Congress with an acquiescent President passes a landmark UHC law
* Circa 2015: America faces a shortage of qualified doctors. The Govt nationalizes drug companies that make 'essential' drugs, but, absent a profit motive, few new drugs are created. Private pharmaceutical & medical technology companies produce only 'luxury' or vanity products such as Viagra & Silicone breast implants that are exempt from Govt control. In addition to the black market in prescription drugs, a black market springs up for private practice physicians who are willing to skirt the law to make a living.

Not so funny anymore, eh? Sorry, that's a terrible impersonation of a Canadian 'accent'! Needless to say, our Canadian 'comrades' have been down this path before us!

Oh, and don't think that it will only be a Democrat President who signs onto the UHC law .. observe the recent actions on the part of Arnold in California.

We should all remember this when we hear people demonize insurance companies, affluent doctors, pharmaceutical companies, hospitals and other free-market agents that play an important role in making health care available. Although there are numerous examples of mistakes made by those entities, let's be aware that Govt meddling is the largest single reason for most of the problems in this industry.
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A stumbling giant with it's LEFT brain tied behind it's back!

I do not question the patriotism of those who seek to end this war. After all, war is NOT the natural state of a free, productive people. Despite the Dr. Strangelovian caricature of Americans in some movies and cartoons, we are not a belligerent lot! We spend most of our time working hard, creating a wealth of products & services for ourselves - and for a sometimes ungrateful world.

In SHARP contrast to other ideologies, capitalism does not rely on conquest for its growth. Think about that, and you will grasp the nature of this fight.

Our past enemy, the Soviet Union, required a constant succession of conquests. Militant Islam also seeks to conquer (restore, by their way of thinking) an empire. Going back somewhat in history, feudal systems also grew only by conquest. Note that all of these ideologies are bankrupt in their ability to foster productive economies; their parasitic nature demands a periodic supply of new victims - hence their need for conquest and subjugation.

Capitalism grows by trade, which involves mutual consent of both parties. No sacrificial victims are required!

As tempting as it is to be 'for peace' (and who isn't?) there is a reality that must be confronted. Even if we concede that the US has made many mistakes in this conflict, we STAND ALONE in this fight, against an enemy who uses our desire for peace against us.

In the past, America was a giant, unified in its purpose and with unmatched intellect.

Unfortunately, that time has long gone!

America today finds itself:

* disunited and divided

* lacking moral clarity

Political dissent, always a welcome commodity in America's freewheeling debates, has sunk to the level of treason.

The 'opposition', once meant to provide a differing viewpoint - or, even to play devil's advocate - now seeks political gain from America's missteps.

ON THE PLUS SIDE: We're lucky that our current enemies are mired in the mystical muck of the 7th century! It is telling that we are unable to muster a united front against these cave dwellers. If they had HALF A BRAIN, we would be in real trouble ..

ON THE OTHER HAND: The current enemy - while intellectually and morally bankrupt - has time (and demographics) on its side.

If you have doubts about the long-term danger of militant Islam, or if you want to educate yourself about the demographics - read the book titled: America Alone - by Mark Steyn.

If you don't have the time (or the inclination) to read a book on the subject, at the very least read an article that Steyn wrote in the Wall Street Journal - Opinion Journal; his article lays out the main thesis, which is presented in more detail in the book:

http://www.opinionjournal.com/extra/?id=110007760
Please click on the above link for this 'must read' article.

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Why some good, religious people are Liberals

 Socialism and Communism have a seductive appeal, since they are the political embodiment of altruistic (selfless) ideological principles. In those systems each person works for the common good and the State looks after every one! What could possibly be wrong with that?

After all, Judeo-Christian belief systems (and almost all religions) view altruism as a virtue.

So, if Religion is good, a system that is based on altruism must also be good. How can Religious people remain consistent and object to a selfless economic system?

Observe that you will often hear well-meaning people say that "Communism is good as an ideal, but it just wasn't properly implemented in Soviet Russia".

And this is exactly why socialism finds a fertile soil in Religious countries. It isn't surprising that America has a large percentage of socialists - we usually call them liberals.

Religious Conservatives have to use the "but, it doesn't work" argument against socialism. And, they're right! Socialism DOESN'T work.

But that is a weaker argument based on pragmatism - and it lacks moral conviction.

So, some religious conservatives (who can't shake off the intuitive feeling that their argument is without moral strength) attempt to say that they are FOR altruism, but they are for Capitalism (not socialism) because it's success provides benefits to their fellow man.

That's when they have to come up with pretzel-like contortions like "Compassionate Conservatism".

A liberal might say the following (imagine these words from a moist-eyed Bill Clinton, upper lip fully a-quiver during a SOTU speech):

"Our Govt funded public schools are meant to provide a great education for all poor Americans - and we must not rest until every poor child is college educated.

[Bipartisan rumble of applause; after all, who can disagree with such laudable sentiments?]

"Yes, sadly (deep sigh, wiping a tear), the system isn't working despite the selfless service of our teachers. Teachers like Ms. Marsha McLiberal [points to a photogenic teacher, seated next to Hillary]

[More bipartisan applause, because everyone applauds the 'selfless' sacrifice of public school teachers]

"My fellow Americans, I call upon this generous and caring nation to sacrifice until we can achieve this worthy goal."

[Tumultuous applause; after all don't we ALL agree that we should be generous, caring and willing to sacrifice?]

Once we agree to this kind of humbug in principle, we are fighting a losing battle on 'methods' rather than principle.

The principle that we should follow is that no political system should require enslavement or human sacrifice!

No, I'm not referring to the kind of human sacrifice that ends up with shrunken heads, or missionaries in a cannibal's cooking pot. I'm talking about the enslavement of one person for the benefit of another. So, when we are told to sacrifice for the sake of "public education", or "universal health care", we should be able to reject it on MORAL grounds AS WELL AS pragmatic grounds.

When a politician calls for higher taxes to fund one of those 'feel-good' programs, s/he is promoting a coercive confiscation of our money. Since money is obtained from work, such coercive taxation is synonymous with enslavement.

Incidentally, this is not a argument against charity - which is a VOLUNTARY form of altruism.

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Q) How do we fight 'feel-good' legislation?

A) Excise that 'feel good' gene, and replace it with the 'thinking' gene.

Apply this liberally (may be even literally) to:

* the minimum wage bill

* college loan bill

* almost any other tax-increase or entitlement

Rinse and repeat!

Jokes aside, folks - how do we bring 'reason' back into our electorate?

We have to throw out the mooching faith-healers (on both sides of the aisle) who know that we're on to the real motives behind their noble sounding, teary eyed, lip quivering, smarmy rhetoric.

The alternative is that America, a giant among countries, will succumb to a slow death by a thousand sound-bites.

==============

On the subject of college loans, some TH readers may want to look up Charles Murray's three-part article that appeared recently in the WSJ-Opinion Journal.

BTW, these are not 'feel-good' articles, but written by someone who has researched the subject at considerable length.

Part1: http://www.opinionjournal.com/extra/?id=110009531

Part2: http://www.opinionjournal.com/extra/?id=110009535

Part3: http://www.opinionjournal.com/extra/?id=110009541

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The United States of .. Consistency?

 
What factors are responsible for the success of America? Remember, the emergence of America as a powerhouse began in the mid/late 1800s and continues to this day.

If (as many conservatives do), we find the answer to the above ONLY in the word "Religion", we are deluding ourselves.

After all, Religion was quite a dominant factor in Europe, Asia and other parts of the world. Why didn't their success mirror ours?

That is because America was built on the premise that the individual is free and the Govt is bound.

For the first time in human history, there was a system that was aligned perfectly with the motivations of real humans. Such a system doesn't require human sacrifice. It's success also doesn't rely on humans attaining some impossible (and actually immoral) altruistic standard.

The right to "Pursue Happiness", when applied consistently to humans, is the philosophical basis for the economic system that goes by the name of Capitalism.

On the non-economic front, our system consistently gives us individual freedom. Remember that our system simultaneously gives us the Freedom of Religion AND Freedom from Religion!

Many of our laws derived from Judeo-Christian principles - but does that make America a Christian country? If that were true, then we are conveniently forgetting that similar principles also exist in other religions - some of which are also prevalent in 'failed' states. And, yes, there are quite a few fervently Christian countries that fall in the category of 'failed' states.

As an example, consider the Christian countries in Europe that our Founding Fathers fled.

A mathematician could write that equation as:

Christianity + Feudal System = Failure
That should be enough to convince us that it is not axiomatic that Christian countries are automatically successful.

So, what's the point in all this?

Let's give thanks to the 'good' laws that our Founding Fathers derived from Religion. But lets not forget the uniquely CONSISTENT quality of our ideology that gave (and continues to give) us immeasurable economic and social benefits.

For further proof, the antithesis of Capitalism - i.e. Communism/Socialism is inconsistent with the human desire to work towards one's self-interest. If only scientists were able to excise that 'self-interest-gene' from humans, well then ..

As it is in science and mathematics, so is it in ideology. Consistency rules! Hey, that would make for a nice bumper sticker ..
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What kind of FOUR LETTER conservative are you?

 A test for you FOUR LETTER conservatives and liberals. Given the mix in our country, I believe that it is useful to have a methodology that allow individuals and politicians to 'calibrate' themselves.

One interesting idea is to have a 4-letter word that spans the entire conservative-liberal spectrum, with more 'shades of gray'.

For example, people can fill out a multiple choice questionnaire that is scored against a national average. Each of the 4 letters could be from A-Z, with A-M representing liberal and N-Z representing conservative viewpoints.

Political leaders could be scored using their voting records in addition to their response to the multiple choice questionnaire.

A fifth letter could be added - that represents the PRIORITY that an individual ascribes to a particular aspect. For example, does the individual make his/her defining choice based on religious beliefs - or economics.

It will be interesting to see the actual diversity of thought in our country (even within self-styled Republican and Democrat voters and politicians) - and would be more effective than issue-specific polling.

Can you imagine if instead of the letters 'R' or 'D' next to a politicians name, if we found the letters (ABAA), and could be fairly certain about their viewpoint?
----------------------
The following is a simplified version of the above concept.

Pick one position in each of the above groups - the resultant FOUR LETTER WORD would be a way to identify your particular mix of values.

Can you imagine an election in which candidates could choose freely from the following mix (choose ONE in each category):

A)Economic right wing (laissez faire capitalism)
B)Economic center (mixed economy)
C)Economic left wing (socialism)

A)Nationalist right wing (nationalism to the point of isolationism, protectionism, preserving 'identity')
B)Nationalist center (nationalism based on self interest)
C)Nationalist left wing (internationalism, UN uber alles)

A)Religious right wing (fundamentalism)
B)Religious center (often influenced by religion, but skeptical of its value in public policy)
C)Religious left wing (atheism)

A)Social right wing ('family values', pro-life, anti-gay - usually based on religious beliefs)
B)Social center (pro-family but sympathetic to alternative lifestyles, pro-gay - but anti-gay-marriage)
C)Social left wing (pro-choice, pro-gay, pro-minority to the point of anti-majority, seek to legalize euthanasia, drugs, prostitution)

For example, I identify myself as 'ABCB'

So, what kind of FOUR LETTER WORD conservative are you?
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Two "off-the-wall" suggestions!

 1) FIVE YEAR PLAN (with a twist)

Adopt a different model to our foreign policy. Offer the 'failed' states of the world the opportunity to temporarily become the Nth state of the US.

If a majority of people in a country accept this, that country will adopt our Constitution and our system of laws for 5 years.

During that period, the US will provide security and law-and-order. The new 'citizens' will live and work as 'Americans' for 5 years, and see if laissez-faire capitalism and individual freedom make sense. At the end of 5 years, have a referendum on the type of system to follow for the future.

PS: we could try this in Iraq. If successful, people in other countries will compete with each other to try the same experiment!

2) eBAY IN IRAQ vs AL QAIDA IN IRAQ

Imagine this: a well guarded Fort Knox-style Bank in downtown Baghdad (and other major Iraqi cities), built around oil revenue credits and voluntary (not tax coerced) funds by American citizens, Iraqis and anyone else who wants to invest in the Iraqi experiment.

The Bank lends money at market-determined rates to Iraqis (and others) that have credible business plans and decent credit. Borrowers lacking credit histories would begin with 'micro' loans and establish themselves gradually, monitored eBay-style, via feedback from previous transactions! People with criminal records - or those who violate laws, are automatically 'dinged' on their credit scores!

Yes, it is the eBay model!

In addition to such a private bank, it would be necessary to have a Government that provides law-and-order, defense & the protection of property rights (but not much else). Yes, this is easier said than done - but it is an improving capitalist economy that provides the 'carrots', while the Govt (as the sole initiator of force) provides the 'sticks' for those who do not comply.

To be sure there will be some circumstances that may seem anomalous to Westerners, e.g. Militias transformed into private security forces, funded by insurance companies! However, market forces will determine their success or failure.

The idea is to infuse a capitalist mentality into a region that has not benefited from such practices as saving money, investment capital, free trade, etc. Shiites, Sunnis and Kurds who are trading goods and services with each other are not as likely to shoot at each other, when they are too busy working hard and getting ahead.

People who are investing for their own future are more likely to step up and oppose the violent few who create problems. If an increase in violence causes risk-averse investors to change their investment terms (higher interest rates, for example), the Iraqi beneficiaries of such investments would take to the streets and unite against the violence.

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Ain't mediocrity grand?

 That should be the motto of Union supporters.

After all, their chickens are coming home to roost. For years, Union bosses have placed a stranglehold on businesses.

Consider the double-edged obscenity perpetrated by the Union bosses:

  1. they threaten to withhold labor from the business by threatening to strike, if their demands are not met
  2. they threaten to withhold employment from workers if they don’t join the Union

A free country and a free labor force (aren’t the terms synonymous?) would accept such immoral actions on the part of Big Labor Unions if the results were positive. Let’s examine those results:

For the companies:

  • Higher labor costs without increased productivity
  • Higher costs translate to higher prices without a competitive advantage
  • Antagonistic work force
  • Mediocrity instead of a meritocracy

For workers:

  • Fewer jobs
  • Less incentive for individual performance leads to lower wages for the best workers
  • Mediocrity instead of meritocracy

So who exactly benefits from all this? In the long run, nobody benefits. But there is a seductive appeal in Unions, one that the bosses exploit. Its not unlike the seductive appeal of socialism to those who believe that you can have your cake and eat it, too.

Some people report their own positive personal experiences with their unions as a justification for maintaining Unions in general.

However, we have to consider the role of Unions in a macroeconomic sense.

For example, there are no doubt some great teachers in our public education system - and a few high-performing schools. That doesn't take away from the fact that in a 'macro' sense, public education in the US is a failure.

What should worry all of us about Unions is that their purported benefits have always come at the cost of less productivity, because Unions constitute an anti-market force. And, they are coercive (both to workers and companies), since they squeeze on both ends of the balloon simultaneously.

In the past, the US could get away with anything, being the world leader in almost all markets. The additional costs caused by anti-productive, feel-good policies could be buried in the profit margins. With globalization comes more competition, leading to shrinking margins. Our well-intentioned mistakes can now make the difference between profit and loss. Previously profitable companies become marginal - and that costs all of us our standard of living.

Observe the mess in which companies like Ford (and some of the major airlines) find themselves. Policies that were framed decades ago are now killing the company. The balloon that is being squeezed on both ends (employers and workers) is about to pop!

Can Unions help restore productivity to these companies? Only if they stop squeezing - and by going the way of the dinosaurs!

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Blame it on Medicare!

Most advocates of 'single payer healthcare' (a euphemism for Nationalized Health Insurance) tout the Medicare model.

That takes a particular brand of brass-balled chutzpah!

Before Medicare, most medical care in America was the old-fashioned kind. You went to the doctor when needed, s/he treated you, you paid for the services.

Medicare - which was introduced in the 1960s with much fanfare - relieved a significant portion of the population (age 65+) of the burden of worrying about paying for health care.

Although it was well-intentioned, here are the unintended consequences:

* More demand for health care - after all, why NOT visit your doctor when you have the sniffles? There's no cost involved (to the patient)?

* Higher prices for those who are not eligible for Medicare

Here is an interesting analogy that someone used to describe the harmful effects of such 'feel-good' policies - note, this isn't original, I read it in a published essay!

Imagine a law, that allows everyone with last names beginning A-D to send their restaurant bills to Uncle Sam.

If your name is Donald Duck, life is great! You eat all you want, at the best restaurants. Caviar, pate foie gras and filet mignon - no worries, just send the bill to Uncle Sam!

If you are a restaurant owner, great! Keep raising prices, inventing new exotic dishes - life is good, because you have a guaranteed demand, and a good, creditworthy customer.

Prices go up - but, why should you care, if your name is Donald Duck, or if you own a restaurant?

The increased prices impact those with last names beginning E-Z.

In the Medicare application of this analogy, everyone EVENTUALLY gets to partake of the free feast - and that is why it has such appeal.

But, it does raise the cost of healthcare. So, what do the proponents of Medicare suggest - more of the same! Medicare for EVERYONE!

Many suggest that this type of policy will reduce prices. They forget that the prices will actually be driven higher by the laws of supply and demand. However, Nationalized Health Care can keep prices under check ONLY by reducing the quality of services!

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Racism = Collectivism

Racism is a form of Collectivism.

A racist doesn't see an individual, but sees his/her 'group', and infers that the individual must possess the characteristics (real or perceived) of the group (or collective).

Racism (and all other forms of collectivism) are incompatible with American concepts of individual freedom. However, one can't deny that it exists.

Does affirmative action help eliminate racism? No, it actually increases racism - as seen in some well-intentioned (but racist sounding) posts on this site, written by people that have suffered 'reverse' discrimination.

How do we eliminate racism? Not by using unfair and weakness-inspiring practices like affirmative action, but by using the 'strength' of our laissez faire C A P I T A L I S M.

Here are some steps that can be contemplated:

* eliminate welfare

* eliminate affirmative action

* privatize education

* drastically reduce the employment sectors in which ABILITY is no longer the criterion. Examples include Govt employment, unionized labor etc.

Racism is inconsistent with the concept of 'individual rights' that is the philosophical basis of Capitalism. If the US were to adopt a truly Capitalist model (sans affirmative action, welfare, public education, bloated public sector etc), racism would die out after a few generations.

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