What is free-market capitalism? 47

This post was born as a comment by our economist reader and contributor, Don L. He expanded it into an article. 

It is addressed to the average American who earns, banks, invests, and pays taxes, but might confess that he doesn’t really understand “the dismal science” (as the Scottish philosopher Thomas Carlyle called Economics). Free-market capitalism is the only system that benefits everybody, and the only economists who were right about this were those of the Austrian School (of which the best known members are, probably, Ludwig von Mises and Friedrich Hayek). The article points the way to finding out what free-market capitalism really is. 

The possibly surprising point the author makes is that the United States is not really the free-market capitalist country it is purported to be …  

**

There’s a tactic employed in the field of Economics, and other corrupted fields of study/“professionalism” (history, law, meteorology/climate, education/compulsory schooling, etc.) that I label the “3rd-Party Authority Justification & Deflection Tactic”.  The tactic invokes authority to implement a plan and the ability to escape blame when it fails: “We relied on the experts.” And, the experts (unjustified) sell their name and authority (the “Top 500”, the “Leading” or the “Council of Advisers”, etc.) for grants, subsidies, a new regulation or a tit-for-tat pay raise. Being right is subordinated to the reward from political benefactors: “We support the Senators program”; which, as all unconstitutional social plans do, inevitably fails with tragic consequences.

It must be understood that in the US of A it is estimated that from 53% to 60% of ALL economists are employed directly by government (split approx. 60/40 percent by federal and state respectively) with another 20% plus estimated to be employed in positions dependent on government support. Upton Sinclair said it best: “It is hard to get a man to understand a thing when his job depends on his not understanding it.”  (Do you think there might be a “favor government” over human beings bias in the profession? DUH)

The challenge stands: The Austrian economist Robert Murphy challenged the icon of leftist economics, Paul Krugman, to debate. The inducement was a prize of $100K to be given to a food bank in NYC if Krugman merely showed up …he has refused. Consider, he refused to just put in an appearance and thereby denied a food bank, the hungry, a windfall of $100K of needed funds/foodstuffs. So much for social justice; even primary leftist cause takes a back seat to being exposed as a fraud. He’s a fraudulent coward!

A debate on what the political economic policy should be has never happened. Indeed, every measure is taken to insure that economics qua economics is never ever exposed to the general public. Mainstream economics is as fake as mainstream news. It is a fraud, sham, scam and lie. What is shoved down our throats as economics is singularly and only government central planning of the economy. Economics qua economics is a descriptive social science requiring thinking. IT IS NOT pretend hard science employing mathematical-modeling of historic, static, limited point-in-time data toward predicting (crystal ball) the future for unconstitutional, politicized, social engineering.

The world has been brought, through ideologically-designed compulsory schooling , to unquestionably believe the lie that the economy is so large and complex that only experts can manage it. Yes, the economy is large and complex … SO? How does “manage it by experts”  follow? IT DOESN’T.

In fact it was at the end of the 19th and into the 20th century that the answers to all the significant questions about economics, after 500 years of scholarship, were finally answered. And, the paramount finding was the irrefutable fact that an economy cannot and ought not be managed at all; by anyone whether “expert” or not.

These findings, however, did not and do not sit well with the rulers … implementation requires  stripping them of their power over the people: He who has the gold makes the rules. Well, simultaneous with the revelations of real economics, the opportunist and clownish son of a noted economist, admittedly fabricated a politician-pleasing economic theory, out of thin air (like the phony money monetary policies he backed – the FED). The sophomoric son was John Maynard Keynes and his ludicrous and wholly incomprehensible theory was presented in his book The General Theory of Employment, Interest and Money.

Keynes’s theory has been totally destroyed, yet it persists because it justifies – absolute nonsensical and proven tragically wrong – government intervention in the economy: social engineering. Marx – also a failed thinker with a failed tragic theory – and Keynes have done more to destroy lives, wealth and natural resources than any other two men. They provided the “3rd-Party Authority Justification & Deflection Tactic” cover, employed by governments around the world, behind which rulers could hide as they engineer “social justice” – i.e. control and manipulate their populations. Like here in the good ol’ US of A.

Incidentally, the supposed icon of Free-Markets, Milton Friedman, was NOT!  In fact, Friedman naively supported the worst and most deleterious of the government interventions, thereby negating his promotion of free enterprise (curiously not free-markets): monetary manipulation (inflation) for the benefit of government – not the governed!

Austrian economics, for those who do not know, is the only school of economics that does NOT incorporate any notion of government intervention in the economy – ALL OTHERS DO! Austrian Econ is the only school that advances Free-Market Capitalism; which mirrors, coincidentally, the Founder’s principles of individual sovereignty and government by the consent of the governed.

It is the only school that has been proven correct, 100% of the time, in projections and warnings for more than 100 years. Name one economist from any other school that has ever been right. That was rhetorical as one cannot find any other school of economics that has ever been correct …PERIOD. All they offer is the fake cover for fraudulent banking schemes that benefit politicians and their cadres of sycophants.

If you don’t know what free-market capitalism IS, you can be made to believe it is the economic system in America when it isn’t; and, IT ISN’T!

If you don’t know what free-market capitalism IS, you can be made to believe it is the cause of all manner of horrific and immoral human tragedy when it isn’t; and, IT ISN’T!

If you do not know what centralized fractional reserve banking is then you have to begin to ask yourself: “How have I been made to not care about my own best interests?” Why? Because centralized fractional reserve banking IS the fascistic political economic system of the united States of America NOT Free-Market Capitalism! It was enacted as law in 1913. It replaced Free-Market Capitalism with what can only be described as Centrally-Planned “Debtism” (dollars do not represent wealth but, rather, DEBT). You may know it’s intended-to-deceive name: The FED – not a federal government entity. How is it you have never been taught this?

Economic tragedies cannot be blamed on an economic system that does not exist. Every economic turn down in America’s history is directly and demonstrably the fault of government intervention in the economy; specifically, monetary manipulation by the FED. And, not one bit of it is FREE-MARKET CAPITALISM! So, why is it blamed? Well, the planners aren’t going to blame themselves … are they?

If life, liberty and prosperity are inextricably linked to the economy and there can be no exercise of rights, unalienable or otherwise, without economic freedom, how is it over 95% of Americans, including bankers and top CEOs, do not know what centralized fractional reserve banking is or does – to their detriment.

NOTE: Centralized fractional reserve banking IS the system by which purchasing power (wealth) is stripped from those on the lowest rungs of the economic ladder and transferred to those already up the ladder and standing on the roof: currency inflation is the FED’s ONLY function.

It is time that every citizen fulfilled his duty to give INFORMED consent. First, each individual must take the time to discover Free-Market Capitalism – Austrian economics. Once done, the informed citizen will never be Lulled, Gulled & Dulled by duplicitous and/or dangerously ignorant career-politicians, their army of cronies and their deceptive 3rd-Party Authority Justification & Deflection Tactic ever again … GUARANTEED!

Here’s some further “discover” info:

Keynes The Man by Murray N. Rothbard

Where Keynes Went Wrong: And Why World Governments Keep Creating Inflation, Bubbles, and Busts by Hunter Lewis

A Free-Market Monetary System and The Pretense of Knowledge by F. A. Hayek

Recovering Economics by Harry C. Veryser

The Red Prussian by Leopold Schwarzschild

QUICK INTRODUCTION TO AUSTRIAN ECONOMICS:

Why Austrian Economics Matters by Llewellyn H. Rockwell, Jr

What is Austrian Economics? — The Ludwig von Mises Institute

Economic Policy: Thoughts for Today and Tomorrow by Ludwig von Mises

Liberty and Property by Ludwig von Mises

 

Don L     April 5, 2018

(For more books that will aid discovery in the field of of Economics, please see The Atheist Conservative’s (starter) reading list, under Pages in the margin.)

Posted under Economics by Jillian Becker on Thursday, April 5, 2018

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Libertarianism the wave of the future? 9

The Left likes to believe – as Obama and Harry Reid often iterate – that it is “on the side of history”.

Is history then stuck with those stale and failed ideas of a Marxian stamp propagated by the likes of Kenneth Galbraith, John Maynard Keynes, or the bone-headed strategies of Richard Cloward and Frances Fox Priven?

Or tending back to the Dark Ages with a resurgence of Islam?

Surely not. A civilization that has put a man on the moon; has invented the computer, the internet, the driverless car; that watches the expansion of the universe; that can replace a faulty human heart with a new one; that has used liberty to become rich, knowledgable, and ever more inventive, is not going to go back to communism or the law of the seventh century desert?

Quo vadis then?

The maliciously lefty and deeply nasty New York Times notices a rise in libertarian opinion in America.

Libertarianism has been touted as the wave of America’s political future for many years, generally with more enthusiasm than evidence. But there are some tangible signs that Americans’ attitudes are in fact moving in that direction.

The NYT goes on to substantiate its claim with figures and a chart.

It defines a libertarian, fairly enough, as “someone who believes that the government is best when it governs least”.

There have been visible shifts in public opinion on a number of issues, ranging from increasing tolerance for same-sex marriage and marijuana legalization on the one hand, to the skepticism over stimulus packages and the health-care overhaul on the other hand, that can be interpreted as a move toward more libertarian views.

The Tea Party movement also has some lineage in libertarian thinking. Although polls suggest that many people who participate in the Tea Party movement have quite socially conservative views, the movement spends little time emphasizing those positions, as compared with economic issues.

The perception that the Tea Party – whose chief issue is the need for fiscal responsibility – has “some lineage in libertarian thinking” is remarkable for that newspaper. It seldom removes its red blindfold long enough to replace it for a short time with blinders. For it to see something that is actually there but not obvious is a lucky moment of illumination worth a cheer or two. The author of the article is Nate Silver. Perhaps he found some cunning way to let that uncongenial revelation slip past editorial oversight.

Or perhaps he and his editors think that libertarian thinking is bad anyway. If we didn’t know that to be the case already, there’s a hint of it in what comes later.

The libertarian opinions, revealed by a CNN poll and quoted in the article, are these:

Some 63 percent of respondents said government was doing too much — up from 61 percent in 2010 and 52 percent in 2008 — while 50 percent said government should not favor any particular set of values, up from 44 percent in 2010 and 41 percent in 2008.

The author, apparently not happy to accept what the poll reveals, comments:

Whether people are as libertarian-minded in practice as they might believe themselves to be when they answer survey questions is another matter. Still, there have been visible shifts in public opinion on a number of issues, ranging from increasing tolerance for same-sex marriage and marijuana legalization on the one hand …”

So a tolerance with which he has sympathy …

 … to the skepticism over stimulus packages and the health-care overhaul on the other hand …

So a skepticism he condemns  …

 … that can be interpreted as a move toward more libertarian views.

How confusing for Nate Silver! Libertarians like some of the things he likes. But they also dislike things that he holds dear.

Well, actually, that is the case with us too.

We welcome the spread of libertarian sentiment.

We too see no reason why marijuana should be illegal.

As for same-sex marriage, we think it is an hilarious farce, but would on no account oppose it. A 12-year old boy once defined marriage for us as “a legal union between two or more things”.  Why not  more than two? Why not things or beasts as well as humans?  If – as the argument goes – they love each other? (Well, we said it’s a farce.)

Where we are strongly with libertarians is on the issue of economic freedom. As our contributing commenter Don L often recommends: accept that the Austrian School is right and allow no government interference whatsoever in economic activity – and abolish the Fed. We also advocate keeping taxes (flat-rated) very low. So low that they cannot sustain a government that does much more than it absolutely has to do – protect the liberty of the people, from outside enemies, and domestic criminals. And enforce the law of contract.

But we too have some quarrels with libertarians.

There are those among them who outrageously condone the corruption of children, even the use of them for pornography “as long as they are willing and are paid for their services”!*

Quite a large number of libertarians are historical revisionists, and some who ridiculously and with evil intent deny that the Holocaust ever happened.**

And most libertarians want America to take no notice of what’s going on in the world beyond its borders, except for trade and vacations. As if ignorance is a protection from a world full of expansionist tyrannies and ideologies.

No. None of that.

But a libertarianism that holds individual freedom as the highest value, and knows that it is only possible under the rule of law; and at the same time is committed to preserving the best of everything America has achieved in the past, is a libertarianism that we can – and do – embrace.

 

NOTES:

* We cannot link to articles that discuss this. Access to them is “forbidden”.

**Although the article we link to here does endorse what we say that some libertarians deny  the Holocaust, it goes too far in criticizing Reason and its sponsors.

White? Be ashamed and repent 1

It’s probably from Christianity that Socialism derives the idea that it’s virtuous to abase oneself. Sociological thinking and the leftist collectivist ideal of leveling require self-abasement.

Sometimes we come across statements or practices by leftist ideologues that sample for us all that is repulsive, anti-human, narrow and dumb about the Left.

Here for instance is a report, by Kyle Olson at Townhall, of just such a sample. It is about education officials prescribing self-abasement for Whites – as St. Paul did for Christians.

Wisconsin Education Officials Want Students to Wear “White Privilege” Wristbands.

The Wisconsin Department of Public Instruction runs several programs that heavily emphasize racial issues in public schools …

Some feel that one of those programs – an Americorps operation called VISTA (Volunteers in Service to America) – may go a bit overboard by encouraging white students to wear a white wristband “as a reminder about your (white) privilege.”  …

A  Gloria Steinem quote on the top of VISTA’s Facebook page reads ominously:

 “The first problem for all of us, men and women, is not to learn, but to unlearn.”

The webpage also offers a series of suggestions for high schools students to become more racially sensitive. They include:

Wear a white wristband as a reminder about your privilege, and as a personal commitment to explain why you wear the wristband.

Confess, confess. Confess to being white. Hang your head and be ashamed. Make amends by abasing yourself.

Set aside sections of the day to critically examine how privilege is working.

Put a note on your mirror or computer screen as a reminder to think about privilege.

Examine your conscience. Repent being white.

The Wisconsin DPI also sponsors several similar programs, including CREATE Wisconsin, an on-going “cultural sensitivity” teacher training program which focuses largely on “whiteness” and “white privilege.”

Hating whitey sessions? After which the teachers will be better able to educate the children of Wisconsin?

An opposite way of thinking about race may be found in a column by the wise and great Thomas Sowell. He writes:

There are so many fallacies about race that it would be hard to say which is the most ridiculous. However, one fallacy behind many other fallacies is the notion that there is something unusual about different races being unequally represented in various institutions, careers or at different income or achievement levels.

A hundred years ago, the fact that people from different racial backgrounds had very different rates of success in education, in the economy and in other endeavors, was taken as proof that some races were genetically superior to others.

Some races were considered to be so genetically inferior that eugenics was proposed to reduce their reproduction, and Francis Galton urged [in tune with Marx and Engels – ed] “the gradual extinction of an inferior race.”

It was not a bunch of fringe cranks who said things like this. Many held Ph.D.s from the leading universities, taught at the leading universities and were internationally renowned.

Presidents of Stanford University and of MIT were among the many academic advocates of theories of racial inferiority — applied mostly to people from Eastern and Southern Europe, since it was just blithely assumed in passing that blacks were inferior.

This was not a left-right issue. The leading crusaders for theories of genetic superiority and inferiority were iconic figures on the left, on both sides of the Atlantic.

John Maynard Keynes helped create the Cambridge Eugenics Society. Fabian socialist intellectuals H.G. Wells and George Bernard Shaw were among many other leftist supporters of eugenics.

It was much the same story on this side of the Atlantic. President Woodrow Wilson, like many other Progressives, was solidly behind notions of racial superiority and inferiority. He showed the movie “Birth of a Nation,” glorifying the Ku Klux Klan, at the White House, and invited various dignitaries to view it with him. …

Now, instead of genes being the overriding reason for differences in outcomes, racism [has become] the one-size-fits-all explanation …  [for]  the same false premise — namely, that there is something unusual about different racial and ethnic groups having different achievements. …

Not only different racial and ethnic groups, but whole nations and civilizations, have had very different achievements for centuries. China in the 15th century was more advanced than any country in Europe. Eventually Europeans overtook the Chinese — and there is no evidence of changes in the genes of either of them.

Among the many reasons for different levels of achievement is something as simple as age. The median age in Germany and Japan is over 40, while the median age in Afghanistan and Yemen is under 20. Even if the people in all four of these countries had the same mental potential, the same history, the same culture — and the countries themselves had the same geographic features — the fact that people in some countries have 20 years more experience than people in other countries would still be enough to make equal economic and other outcomes virtually impossible.

Add the fact that different races evolved in different geographic settings, presenting very different opportunities and constraints on their development, and the same conclusion follows.

Yet the idea that differences in outcomes are odd, if not sinister, has been repeated mindlessly from street corner demagogues to the august chambers of the Supreme Court.

*

Here’s Thomas Sowell, with Peter Robinson, talking good sense on race, racism, and discrimination

The invisible hand 5

Obama’s chief economic adviser, Christina Romer, admits that the Keynesian economic policy she (among others) advised Obama and the Democrats to adopt and implement, which they did eagerly as it was the redistributionist policy they wanted, was wrong and has failed.

The Washington Post reports:

Christina Romer, chairman of President Obama’s Council of Economic Advisers, was giving what was billed as her “valedictory” before she returns to teach at Berkeley, and she used the swan song to establish four points, each more unnerving than the last:

She had no idea how bad the economic collapse would be.

She still doesn’t understand exactly why it was so bad.

The response to the collapse was inadequate.

And she doesn’t have much of an idea about how to fix things.

What she did have was a binder full of scary descriptions and warnings, offered with a perma-smile and singsong delivery: “Terrible recession. . . . Incredibly searing. . . . Dramatically below trend. . . . Suffering terribly. . . . Risk of making high unemployment permanent. . . . Economic nightmare.” …

At week’s end, Romer will leave the council chairmanship after what surely has been the most dismal tenure anybody in that post has had: a loss of nearly 4 million jobs in a year and a half. … She was the president’s top economist during a time when the administration consistently underestimated the depth of the economy’s troubles – miscalculations that have caused Americans to lose faith in the president and the Democrats.

Romer had predicted that Obama’s stimulus package would keep the unemployment rate at 8 percent or less; it is now 9.5 percent. … The economy lost 350,000 jobs in June and July. …

When she and her colleagues began work, she acknowledged, they did not realize “how quickly and strongly the financial crisis would affect the economy.” They “failed to anticipate just how violent the recession would be.”

Even now, Romer said, mystery persists. “To this day, economists don’t fully understand why firms cut production as much as they did or why they cut labor so much more than they normally would.” Her defense was that “almost all analysts were surprised by the violent reaction.”

That miscalculation, in turn, led to her miscalculation that the stimulus package would be enough to keep the unemployment rate from exceeding 8 percent. Without the policy, she had predicted, unemployment would soar to 9.5 percent. The plan passed, and unemployment went to 10 percent. …

The truth is that the Obama administration is pretty much out of options. … “What we would all love to find – the inexpensive magic bullet to our economic troubles – the truth is it almost surely doesn’t exist,” Romer admitted.

Okay, there is no magic bullet – but there is the invisible hand.

It’s also called the free market.

Free marketeers would lower taxes, remove the minimum wage and the multifarious bureaucratic burdens on employers, and above all forbid government interference in the market. That is to say, they would reverse the policy of high spending by the state which Romer advised, Obama and the Democrats wanted, and even President Bush was seduced into attempting.

Economically wise conservatives have been telling liberals for decades, Keynes was wrong, Hayek was right.

Will the Republicans remember that when they regain Congressional power in November?

Posted under Commentary, Economics, United States by Jillian Becker on Thursday, September 2, 2010

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