Category Archives: political-economy
Why “security” is a hoax
The TSA has been a pointless, useless, unconstitutional organization from its very inception. Preventing another 9/11 required two things, and we’ve already done them both: strengthen cockpit doors so hijackers can’t force their way in, and let passengers know the old conventional wisdom “During a hijacking, the best course of action is to be quiet and do what the hijackers tell you” is wrong.
Everything else since then has been pointless: the bans on tweezers and similar grooming items, the restrictions on toiletries, all these and more have done nothing but erode the fourth amendment protection against unreasonable search and seizure. Back in September 2006 I said of the TSA: “these stupid rules aren’t meant to make us safer, but only train us in habits of evermore mindless obedience.”
via Ravings of a Feral Genius: Fiddle About With Uncle Ernie Sam.
The rest of the post is more awesome, but I wanted to relate this observation which seems completely obvious to me.
Education is subsidized and/or debt-financed consumption
The bubble in student loans has nothing to do with education. Institutions are seeing students’ desire for a TV college experience and up-selling them since it can be financed by debt. It’s not higher-education that’s a bubble, it’s a ridiculously high standard of living for 18-22 year old kids on borrowed money student loans and on-campus CC sign-ups that’s causing this.
This is not investment in our future. This is consumption. Dane Cook coming to speak on campus is consumption. A huge fancy gym is consumption. Apartment-style dorms are consumption. Super high-tech classrooms that get used for plain-old lectures are underutilized capacity. Top-of-the-line computers in labs that get used for browsing facebook are consumption.
I graduated in ’08 and most people I know talk endlessly of how much they miss college. They lived well and didn’t work and now they work hard and live poorly. A good-chunk went to grad-school to live the life again after not being happy with life as a 40k entry-level office-drone paying student loans and living in a sh@##y apartment.
All the student-loan boom is is anticipated consumption. That’s it. Nothing to do with education. For a lot of kids it’s simply 4 years of partying/socializing/indulging while also going to school
via Disrupting the Higher Education Bubble | The Big Picture.
Economic suicide policy and promoting foolishness
Notice the misguided policies of the Fed and FDIC though. By preventing all bank runs for decades, the Fed instilled an artificial and undeserved confidence in banks.
It would be far better to disclose banks in trouble, let them go under one at a time quickly, rather than have a gigantic systemic mess at one time.
Secrecy, in conjunction with fractional reserve lending is an exceptionally toxic brew. Overnight trust can change on a dime, system-wide, and it did.
Moreover, by keeping poor banks alive (and my poster-boy for this is Chicago-based Corus Bank for making massive amounts of construction loans to build Florida condos), more money pours into failed institutions further increasing toxic loans.
I’ve been trying to avoid political posts but I think this point by Mish deserves some thought.
According to Solomon, “If you are wise, you are wise for yourself; if you scoff, you alone will bear it.” Public policy for the last century seems to be aimed at disproving Solomon on this point. The state claims it can protect us from bad economic choices and promote growth.
In the first place, as Mish points out in the case of banking, these interventions seem to have the effect of delaying small crises until they form one massive financial tsunami. The boom-bust mini-cycles are smoothed over until we have a massive crash.
But secondly, the real social safety net is destroyed in favor of a state safety net that cannot fail to cause extreme depression-level problems. The real social safety net was people learning to look after themselves. People new banks were not that reliable so they spread out their risk. They kept cash and used other means to diversify their savings. An occasional bank failure would reinforce this wisdom and cause people to adopt behaviors that would ameliorate the effects of these failures.
Something similar could be said for a continual boom-bust cycle (even thought that cycle itself is due to the State’s fiat currency). If people know that there will be economic downturns every three years then they will use the “fat years” to save for the “lean years.” By producing decades of artificial growth, the state has discouraged this basic rational and wise behavior.
Humans are treated by their governments like animals kept in a zoo. They are bred in captivity and never develop the survival habits they would need to live on their own. The difference is that while humans can provide for animals, they cannot turn the globe into a zoo for humans with any chance of actually continuing to provide for their wards.
Sooner or later, whether we like it or not, we are going to be turned loose. Learn wisdom now.
An instance of government-produced Hell
My students often become curious about my personal life. The question most frequently asked is, “Do you have kids?”
“Two,” I say.
The next question is always heartbreaking.
“Do they live with you?”
Every fall, new education theories arrive, born like orchids in the hothouses of big-time university education departments. Urban teachers are always first in line for each new bloom. We’ve been retrofitted as teachers a dozen times over. This year’s innovation is the Data Wall, a strategy in which teachers must test endlessly in order to produce data about students’ progress. The Obama administration has spent lavishly to ensure that professional consultants monitor its implementation.
Every year, the national statistics summon a fresh chorus of outrage at the failure of urban public schools. Next year, I fear, will be little different.
Read the whole horrible thing: “Nobody Gets Married Any More, Mister” by Gerry Garibaldi – City Journal.
The population bomb was a hoax but the depopulation singularity is gathering strength
I’s now official. Japan’s demographic time bomb has gone off. However, don’t look for a big crater, at least just yet, because this has started off with a whimper and not a bang.
Inquiring minds note the World’s Biggest Pension Fund May Sell Japan Bonds.
Read the whole thing.
And then read America’s One-Child Policy!
Overspending on mandated boredom
There’s no way I can cheer for a bunch of government workers protesting against some of their perks being taken away. I’d like to see their jobs ended. But I can’t cheer on a Governor who doesn’t show the slightest clue that he understands that public education makes education a bureaucratic monstrosity that turns curious by nature children into bored stiffs
via EconomicPolicyJournal.com: Wisconsin in Perspective on the Protest-Revolution Scale.
Why did Obama decide to stop defending the DOMA now?
What Obama always believed about the DOMA is not an issue to me. The question is: Why not wait until his second term?
One answer is that he doesn’t believe he will have a second term and wants to make the most of his time.
I doubt that.
I think a better answer is how “religious right” issues keep being used to obscure Tea Party concerns about the economy–the budget deficit, the national debt, and the coming financial depression which has not hit us yet. If someone opposes abortion or doesn’t believe in evolution, we are far more likely to see the media give time to those issues when the person in question is worried about and taking action about an entirely different issue.
As I see it right now, the most likely reason to change course on DOMA at this time is to distract from the fact that no one in power wants to face up to our economic situation.
When you think about it, It gives the GOP an out as well.
But I’m just guessing. What do you think?
In the long run, who cares about the certainty of law!
How the Athenians tried to protect their freedom from their democracy:
Law-making was the business of popular legislative assemblies, and the general rules laid down in written form by those assemblies were contrasted with the arbitrary orders of tyrants. But the Greeks, and particularly the Athenians, were to realize fully in the second half of the fifth and in the fourth century before Christ the grave inconveniences of a law-making process by means of which all the laws were certain (that is, precisely worded in a written formula), but nobody was certain that any law, valid today, could last until tomorrow without being abrogated or modified by a subsequent law. Tysamenes” reformation of the Athenian constitution at the end of the fifth century offers us an example of a remedy against this inconvenience that could be usefully pondered by contemporary political scientists and politicians. A rigid and complex procedure was then introduced in Athens in order to discipline legislative innovations. Every bill proposed by a citizen (in the Athenian direct democracy every man belonging to the general legislative assembly was entitled to present a bill, whereas in Rome only the elected magistrates could do so) was thoroughly studied by a special committee of magistrates (nomotetai) whose task was precisely that of defending the previous legislation against the new proposal. Of course, proponents could freely argue before the general legislative assembly against the nomotetai in order to support their own bills, so that the whole discussion must have been based more on a comparison between the old and the new law than on a simple oration in favor of the latter.
But this was not the end of the story. Even when the bill had been passed at last by the assembly, the proponent was held responsible for his proposal if another citizen, acting as a plaintiff against the proponent himself, could prove, after the law had been approved by the assembly, that the new legislation had some grave defects or that it was in irremediable contradiction with older laws still valid in Athens. In that case, the proponent of the law could be legitimately tried, and the penalties could be very serious, including the death sentence, although, as a rule, unfortunate proponents suffered only fines. This is not a legend. We know all this from Demosthenes’ accusation against one of these unfortunate proponents named Tymocrates. This system of fining proponents of unsuitable legislation was not in opposition to democracy, if we mean by that word a regime in which the people are sovereign and if we admit that sovereignty means also irresponsibility, as it does in many historical interpretations of it.
We must infer that the Athenian democracy at the end of the fifth century and during the fourth century before Christ was obviously not satisfied with the notion that the certainty of the law could be equated simply with that of a precisely worded formula in a written text.
Through Tysamenes’ reform, the Athenians discovered at last that they could not be free from the interference of the political power only by obeying the laws of today; they also needed to be able to foresee the consequences of their actions according to the laws of tomorrow.
This is, in fact, the chief limitation of the idea that the certainty of the law can be simply identified with the precise wording of a written rule, whether general or not.
But the idea of the certainty of the law has not only the above-mentioned sense in the history of the political and legal systems of the West. It has also been understood in a completely different sense.
The certainty of the law, in the sense of a written formula, refers to a state of affairs inevitably conditioned by the possibility that the present law may be replaced at any moment by a subsequent law. The more intense and accelerated is the process of law-making, the more uncertain will it be that present legislation will last for any length of time. Moreover, there is nothing to prevent a law, certain in the above-mentioned sense, from being unpredictably changed by another law no less “certain” than the previous one.Thus, the certainty of the law, in this sense, could be called the short-run certainty of the law. Indeed, there seems to be a striking parallel in our day between short-run types of provisions in matters of economic policy and the short-run certainty of the laws that are enacted to secure these provisions. In a more general way, the legal and political systems of almost all countries today could be defined in this respect as short-run systems, in contrast to some of the classic long-run systems of the past. The famous dictum of the late Lord Keynes that “in the long run we shall all be dead” could be adopted as the motto of the present age by future historians. Perhaps we have become increasingly accustomed to expect immediate results from the enormous and unprecedented progress in the technical means and scientific devices developed to perform many kinds of tasks and to achieve many kinds of results in material ways. Undoubtedly, this fact has created for many people who ignore or try to ignore the differences the expectation of immediate results also in other fields and in regard to other matters not dependent at all on technological and scientific progress.
I am reminded of a conversation I had with an old man who grew plants in my country. I asked him to sell me a big tree for my private garden. He replied, “Everybody now wants big trees. People want them immediately; they do not bother about the fact that trees grow slowly and that it takes a great deal of time and trouble to grow them. Everybody today is always in a hurry,” he sadly concluded, “and I do not know why.”
Lord Keynes could have told him the reason: people think that in the long run they will all be dead. This same attitude is also noticeable in connection with the general decline in religious belief that so many priests and pastors lament today. Christian religious beliefs used to emphasize, not the present life of man, but a future one. The less men believe now in that future world, the more they cling to their present life, and, believing that individual life is short, they are in a hurry. This has caused a great secularization of religious beliefs at the present time in the countries of both the Occident and the Orient, so that even a religion as indifferent to the present world as Buddhism is being given by some of its supporters a mundane “social,” if not, in fact a “socialist,” meaning. A contemporary American writer, Dagobert Runes, says in his book on contemplation, “Churches have lost the touch of the Divine and turned to book reviews and politics.”
This may help to explain why there is now so little attention given to a long-run conception of the certainty of the law or indeed to any other long-run conception that relates to human behavior. Of course, this does not mean that short-run systems are, in fact, more efficient than long-run ones in achieving the very ends that people endeavor to attain by devising, say, a new miraculous full-employment policy or some unprecedented legal provision or simply by asking from growers big trees for their gardens.
The short-run concept is not the only notion of the certainty of the law that the history of political and legal systems in the countries of the West presents to a student patient enough to recognize the principles that underlie institutions.
Bruno Leoni, Freedom & the Law, chapter 4, “Freedom & the Certainty of Law”
Review of Tom Wood’s Nullification (offsite)
I generally avoid talking politics. But you all already know that. It’s not so much that I find the topic irrelevant, as it is that I find it exacerbating beyond belief! The falsification of facts, the vitriolic rhetoric, the hypocrisy and inconsistency, the finger-pointing, the lack of common sense and decent discourse…on and on it goes. I become overly emotional and emphatic if I think on it too long, so I generally avoid it altogether.
HOWEVER…Thomas Woods came along and wrote a book too intriguing for me to avoid. The concept made perfect sense to me and I wanted to learn more about it. That concept is: NULLIFICATION.
Read the rest: She’s No Lady: Nullification.