Socialists are wrong 128

Hear, Oh Greece! And Bernie Sanders fans! And Pope Francis!

Margaret the Great on the virtue of inequality and the vice of egalitarian thinking:

Posted under Economics, Greece, Leftism, liberty, Socialism, United Kingdom, Videos by Jillian Becker on Monday, July 6, 2015

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A clean, cool, beautiful, fertile planet – praised be mankind 285

Jorge Mario Bergoglio, an Argentinian Communist and Pope, is telling whoppers.

Fortunately, Christopher S. Carson puts him right with a wonderfully cheerful story. It comes from Front Page. We slightly abbreviate it:

Last week, Pope Francis released his controversial environmental Encyclical, Praised Be, to the public.  It is not simply a matter of global warming endangering the planet, he writes.  The Pope has a comprehensively dark vision of the world.  He writes that

The Earth, our home, is beginning to look more and more like an immense pile of filth … beautiful landscapes are now covered with rubbish … Never have we so hurt and mistreated our common home as we have in the last two hundred years.

In other words, the Industrial Revolution is to blame for covering the planet in rubbish.  But if it’s covered in trash, it’s a strange kind of trash that has caused global crop yields to increase by 160 percent since 1961 and deaths from droughts to be reduced by 99.8 percent since the 1920s.

It’s an odd kind of “mistreatment” of the planet over the life of the Industrial Revolution that’s resulted in the global life expectancy rising from 26 years in 1750 to 69 years in 2009.  This is in spite of the fact that Earth’s population increased from 760 million to 6.8 billion and incomes (in real dollars) rose from $640 to $7,300 during the same period. …

If the globe were truly turning into a great heap of exploited waste, you would expect natural resources to become more expensive as the cost of extracting rises and scarcity becomes the norm.  But natural commodities are cheaper today than ever.  The real price of almost all natural resources – from iron to salt to coal – is cheaper today in than 50 or 500 years ago.  In Britain, artificial light is 20,000 times cheaper per man hour worked than it was in 1300.

On a global scale, with only a few exceptions like China, air and water is cleaner than ever. Since the late 1970s, pollutants in the air have plunged.  In advanced countries, lead pollution declined by almost 100 percent, carbon monoxide and sulfur dioxide by more than 50 percent; ozone and nitrogen dioxide declined as well.

A car today emits less pollution cruising at full speed than a parked car did in 1970.

In the America of 1900, about 25% of all deaths were from contaminated drinking water.  Today, hardly anyone here dies from this scourge.  The Pope seems oblivious to the fact that the richer the nation is, the cleaner its environment.

Despite the masses wading around in the Pope’s seas of “filth,” and despite a world population of 7.3 billion, the poorer countries’ incomes have surged since 1975; since 1981, the number of Earth’s people in extreme poverty fell by an amazing 1 billion, even as the population increased by more than 1.5 billion.

But if there is one environmental issue that most exercises the Supreme Pontiff, it is global warming.  “A very solid scientific consensus,” he writes, “indicates that we are presently witnessing a disturbing warming of the climatic system. In recent decades this warming has been accompanied by a constant rise in the sea level and, it would appear, by an increase of extreme weather events.”

Well, the warming over “recent decades” apparently does not include the last two decades, because over the past 18 years no net increase in global temperature has been recorded, despite the atmosphere’s CO2 content rising by 8 percent.  Both the Arctic Ocean and Antarctica have this year posted record high ice packs.

The Pope’s letter seems quite concerned about the poor of Africa experiencing crop failures as a result of global CO2 emissions.  But the opposite appears to be true: CO2 is plant food, and the rising CO2 levels are helping to water and green the continent.

According to a 2007 study in the science journal Geology, Africa is currently “experiencing an unusually prolonged period of stable, wet conditions in comparison to previous centuries of the past millennium. … The patterns and variability of 20th century rainfall in central Africa have been unusually conducive to human welfare in the context of the past 1400 years.”

If the trends of higher CO2 concentrations continue, and political strife abates, Africa, far from being a ruined land of desiccated drought, could well become the breadbasket of the world.  All it needs from the West is fertilizer and genetically hardened crop strains that resist insect damage.

“Praised be” … Mankind, which has so rapidly improved his lot and that of his Earthly home.

Another inevitable failure of socialism 10

The EU has a flag no one salutes, an anthem no one sings, a president no one can name, a parliament whose powers subtract from those of national legislatures, a bureaucracy no one admires or controls and rules of fiscal rectitude that no member is penalized for ignoring. 

George Will writes at the Washington Post:

Now come Greeks bearing the gift of confirmation that Margaret Thatcher was right about socialist governments: “They always run out of other people’s money.” Greece, from whose ancient playwrights Western drama descends, is in an absurdist melodrama about securing yet another cash infusion from international creditors. This would add another boulder to a mountain of debt almost twice the size of Greece’s gross domestic product. This protracted dispute will result in desirable carnage if Greece defaults, thereby becoming a constructively frightening example to all democracies doling out unsustainable, growth-suppressing entitlements.

In January, Greek voters gave power to the left-wing Syriza party, one third of which, the Economist reports, consists of “Maoists, Marxists and supporters of Che Guevara.” Prime Minister Alexis Tsipras, 40, a retired student radical, immediately denounced a European Union declaration criticizing Russia’s dismemberment of Ukraine. He chose only one cabinet member with prior government experience — a former leader of Greece’s Stalinist Communist Party. Tsipras’s minister for culture and education says Greek education“should not be governed by the principle of excellence . . . it is a warped ambition”. Practicing what he preaches, he proposes abolishing university entrance exams.

Voters chose Syriza because it promised to reverse reforms, particularly of pensions and labor laws, demanded by creditors, and to resist new demands for rationality. Tsipras immediately vowed to rehire 12,000 government employees. His shrillness increasing as his options contract, he says the European Union, the European Central Bank and the International Monetary Fund are trying to “humiliate” Greece.

How could one humiliate a nation that chooses governments committed to Rumpelstiltskin economics, the belief that the straw of government largesse can be spun into the gold of national wealth? Tsipras’s approach to mollifying those who hold his nation’s fate in their hands is to say they must respect his “mandate” to resist them. He thinks Greek voters, by making delusional promises to themselves, obligate other European taxpayers to fund them. Tsipras, who says the creditors are “pillaging” Greece, is trying to pillage his local governments, which are resisting his extralegal demands that they send him their cash reserves.

Yanis Varoufakis, Greece’s finance minister, is an academic admirer of Nobel laureate John Nash, the Princeton genius depicted in the movie A Beautiful Mind, who recently died. Varoufakis is interested in Nash’s work on game theory, especially the theory of cooperative games in which two or more participants aim for a resolution better for all than would result absent cooperation. Varoufakis’s idea of cooperation is to accuse the creditors whose money Greece has been living on of “fiscal waterboarding.’ ” …  His passive-aggressive message? “Play nicely or we will kill ourselves.”

Since joining the euro zone in 2001, Greece has borrowed a sum 1.7 times its 2013 GDP. Its 25 percent unemployment (50 percent among young workers) results from a 25 percent shrinkage of GDP. It is a mendicant reduced to hoping to “extend and pretend” forever. But extending the bailout and pretending that creditors will someday be paid encourages other European socialists to contemplate shedding debts — other people’s money that is no longer fun.

Greece, with just 11 million people and 2 percent of the euro zone’s GDP, is unlikely to cause a contagion by leaving the zone. If it also leaves the misbegotten European Union, this evidence of the EU’s mutability might encourage Britain’s “euro-skeptics” when, later this year, that nation has a referendum on reclaiming national sovereignty by withdrawing from the EU. If Greece so cherishes its sovereignty that it bristles at conditions imposed by creditors, why is it in the EU, the perverse point of which is to “pool” nations’ sovereignties in order to dilute national consciousness? …

It cannot be said too often: There cannot be too many socialist smashups. The best of these punish reckless creditors whose lending enables socialists to live, for a while, off of other people’s money. The world, which owes much to ancient Athens’ legacy, including the idea of democracy, is indebted to today’s Athens for the reminder that reality does not respect a democracy’s delusions.

The EU was formed in the first place because post-war Germany needed to dissolve it’s guilt in a greater political entity, and France wanted to be part of something bigger in order to win its one-sided competition with the United States for clout in the world.

It is an undemocratic, militarily weak, Islam-soiled, bleeding-hearted, oligarchic, dictatorial bureaucracy. It was always a foolish venture, as doomed to certain failure as was Communist Russia.

If Greece’s insolvency makes it drop out and so start the fall of the whole house of cards, that’s one good thing that modern Greece will have done for civilization.

Roman red 44

The Catholic Church is now officially, doctrinally, the Universal Church of Jesus Marxist.

Or the Universal Church of Jesus and Karl.

Which name will it choose? It needs to choose one or the other, or something along the same lines, to describe itself accurately.

It has a Pope who embraces International Communism. Which requires world government. Perhaps Pope Francis sees the Vatican as the Communist capital of the world – rather than the UN, as other world-government campaigners do.

Although as yet he and his fellow performance artists, costumed in their gorgeous gowns and priceless bling, do not allow any of these labels, they are nevertheless accurate.

This is from PowerLine by John Hinderaker:

Pope Francis has become a deeply problematic figure, all the more so after his encyclical on global warming was leaked to an Italian publication. The letter, some 129 pages long, is directed to Catholic bishops, but Francis grandly says that it is intended for every person in the world. The letter has not yet been translated into English in its entirety, but portions of it have been run through Google Translator. Even from these bits, some conclusions are obvious.

First, the Pope has no idea what he is talking about. His letter is full of factual errors. For example:

Scientific consensus exists indicating firmly that we are in the presence of a worrisome warming of the climate system.

This is false. There has been no net global warming for something like 18 years, according to satellite data, the most reliable that we have.

In recent decades, that the heating was accompanied by the constant rise in the sea level….

Sea level has been rising for approximately 12,000 years, first dramatically as the Earth warmed rapidly at the end of the last Ice Age, and much more slowly in recent millennia. Currently, the rate of rise of sea level is not increasing.

…and is also hard not to relate it to the increase in extreme weather events, regardless of the fact that we can not attribute a cause scientifically determined to each particular phenomenon.

Wrong again. Extreme weather events are not increasing. This isn’t an opinion, it is a fact: there is no plausible empirical claim to the contrary. In fact, for what it is worth, the climate models that are the sole basis for warming hysteria predict fewer extreme weather events, not more, because the temperature differential between the equator and the poles will diminish.

It is true that there are other factors (such as volcanism, and the variations of the orbit of the Earth, the solar cycle), but numerous scientific studies indicate that most of the global warming of recent decades is due to the large concentration of greenhouse gases (carbon dioxide, methane, nitrous oxide and other) issued mainly because of human activity.

Putting aside the fact that there hasn’t been any net warming during the last two decades, this is precisely the issue that is the subject of intense scientific debate–a debate that, it becomes increasingly clear, the realists are winning. For the Pope to wade into this controversy would be nearly inexplicable, absent some overriding motive.

That motive is, apparently, hostility toward free enterprise and the prosperity that it creates. Francis has manifested such hostility in previous statements, and it comes through again in his anti-global warming letter. Francis sounds like just another leftist: the solution to global warming is more state control to dictate how people live, and new international organizations to direct vast transfers of wealth and power.

The fact is that through human history, freedom has rarely been popular. That goes for the history of the papacy, too: John Paul II is the most notable exception in modern times. People offer various definitions of American exceptionalism. In my opinion, American exceptionalism resides chiefly in the fact that, for one brief shining moment, at least, a large majority of Americans really believed in freedom. I don’t think Pope Francis has much sympathy with that sentiment.

The Pope’s letter is full of concern for the poor, of course. But the poor would suffer most from any prohibition against efficient energy (i.e., fossil fuels). Francis’s suggestion that “rich” countries – that means us, how rich do you feel? – should subsidize the majority of the planet, apparently forever, is fatuous. … There is no prospect that leftist energy policies will help poor nations. The poor need, as much as anything, cheap energy, which frees resources for everything else. To deprive poor nations of cheap energy is to condemn them to long-lasting if not permanent poverty.

The Papal flag should be be changed to deepest red.

The 100th Man 129

Here is a refutation of Socialism in under 10 minutes.

An African parable on how profits work to the benefit of all society. Produced by the Free Market Foundation as a gift to African Students For Liberty.

Posted under Africa, Capitalism, Economics, education, Videos by Jillian Becker on Friday, June 19, 2015

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Keynes must die 89

To follow yesterday’s post on the GOP proposals for repealing Obamacare and replacing it with free-market solutions to health care needs (Health in the market place, June 7, 2015), we reproduce a comment made by Tibor Gaspardyn, originally on our Facebook page.

It provides important information on little-known problems of Health Care in America – and prescribes a cure for them.

From its founding in 1846, the American Medical Association (AMA) has been a union … a union by exclusion. It has been less concerned with improving medical practice, which it does, but with advancing professional prestige and economic reward. (Why does it so vigorously hide doctors’ performance information?)

In the 1880s it became one of the first and perhaps the most influential lobbying organizations in the Republic; only the banking lobby had greater influence. With the imposition of the progressive movement, in the American Republic (1890’s into the late 1920s) significantly promoted by Teddy Roosevelt and continuing under and through Woodrow Wilson, the AMA was granted, and it retains, incredible power and control over medical practice. The AMA’s stranglehold on medical practitioners and services was increased under FDR and it continues to grow stronger. There has never been an administration or Congress, since the AMA’s founding, that has ever challenged it’s economically-destructive control.  As with all unions, political contribution and support gains “look-the-other-way” privilege. And the AMA union members have some really deep pockets.

The AMA/political cabal allows the AMA to govern, with power and authority emulating law, the number of hospitals; the number of teaching hospitals; the number of those training as doctor, nurse and other related vocations; what the definitions and responsibilities are of the various medical vocations; the requirements, certifications, accreditations and qualifications for participation in the medical field – and more. In other words, the AMA, not free market capitalism, controls the entire supply, and therefore the quality and COST, of medical delivery, doctor’s incomes, within the USA. 

Too few doctors relative to those seeking medical care means fees go up. Nurses not allowed to perform routine procedures means billings go up. So, any plan to “fix” healthcare must eliminate the control of the AMA. Otherwise, there is no “patient-orientation”, costs will not be market-based; it will still be a union managed for the benefit of the purposefully-limited providers system. Critically, the self-balancing of supply and demand afforded under a real free market system is missing. Who is being served in our current AMA-based system?Consumers don’t count. Are you being made to sit in a  waiting room for an hour and a half? Is ‘house call’ still in the dictionary?

That analysis and description was just about the medical side of healthcare. Insurance and pharmaceuticals are also fully managed for the benefit of the suppliers. Not, however, by a self-serving  wolf-in-sheep’s-clothing union but by the suppliers themselves through their favorite career-politicians.

Health insurance is a government granted monopoly (anti-consumer monopolies and cartels are an impossibility in a free market capitalistic system). By law, only a handful of cartelized-insurers are allowed to operate in a state. No sales are permitted across state lines. That choice is outlawed. Why aren’t there any insurance policies that go with you, cover existing illness, offer all those coverages the liberals demand? Because they don’t have to. The insurers need only contribute to a campaign … serving consumers isn’t required! It is the same for the pharmaceutical industry.

Indeed, healthcare and all industries have become self-serving plunderers through political connection, technically called mercantalism – today wrongfully termed “crony ‘capitalism'”, and managed in an authoritarian – ie. fascist –  manner (the application of legislation, taxes, fees, certifications, inspections, etc. in order to control firms/the economy whilst allowing the appearance of private ownership and control). And, everywhere you turn you hear the cry for even more regulation. Regulation is simply code for anti-competition government intervention for the benefit of a favored company or industry – typically, called for covertly by the industry to be regulated. How many cable companies exist in your area … one? Yet, they claim stiff competition. Like so many, just another government granted monopoly at your expense. Further, incredibly, all the regulators come right out of the industries they are charged to regulate … no conflict there! The bottom line,all this political/re-election-directed economic intervention, healthcare or otherwise, increases costs above market pricing with quality of goods and services well below competition-based offerings.

It needs to be known that the AMA represents only 17% of doctors in the USA. The AMA agenda is not supported by those actually in the profession.  The agenda is supported by the politicians benefiting from the AMA’s substantial financial contribution and their lending of prestige (stooging) to political shenanigans through the 3rd-Party Authority Agrees Deception & Deflection Tactic (to pass a program and then after the program fails –  “Leading doctors agree…I relied on leading doctors”).

Lastly, until the Republic’s leadership is de-careered & un-partied, and the rigged regulation system is disbanded, and the Federal Reserve engine financing corruption and socialism is got rid of, the Republican group can plan all they want … election after election … there will not be change.

Keynes must die … if the American Republic is to live!

Posted under Capitalism, Economics, Socialism, United States by Jillian Becker on Monday, June 8, 2015

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Whose misfortune? 60

What is unique about American foreign policy today is not just that it is rudderless, but how quickly and completely the 70-year postwar order seems to have disintegrated — and how little interest the American people take in the collapse, thanks to the administration’s apparent redeeming message, which translates, “It’s their misfortune and none of our own.”

We quote from an article by Victor Davis Hanson in the National Review.

He sets before us a picture of what passes for US foreign policy under Obama, and the disasters that have ensued from it – and continue to get worse.

ISIS took Ramadi last week. …

On a smaller scale, ISIS is doing to the surge cities of Iraq what Hitler did to his neighbors between 1939 and 1941, and what Putin is perhaps doing now on the periphery of Russia. In Ramadi, ISIS will soon do its accustomed thing of beheading and burning alive its captives, seeking some new macabre twist to sustain its Internet video audience.

We in the West trample the First Amendment and jail a video maker for posting a supposedly insensitive film about Islam; in contrast, jihadists post snuff movies of burnings and beheadings to global audiences.

We argue not about doing anything or saving anybody, but about whether it is inappropriate to call the macabre killers “jihadists”.  When these seventh-century psychopaths tire of warring on people, they turn to attacking stones, seeking to ensure that there is not a vestige left of the Middle East’s once-glorious antiquities. I assume the ancient Sassanid and Roman imperial site at Palmyra will soon be looted and smashed. …

As long as we are not involved at the center of foreign affairs and there is no perceptible short-term danger to our security, few seem to care much that western North Africa is a no-man’s-land. Hillary Clinton’s “lead from behind” created a replay of Somalia in Libya.

The problem with Turkey’s Recep Erdogan is not that he is no longer Obama’s “special friend,” but that he was ever considered a friend at all, as he pressed forward with his plan to destroy Turkish democracy in the long march to theocracy.

There was never much American good will for the often duplicitous Gulf monarchies, so the general public does not seem to be worried that they are now spurned allies. That estrangement became possible because of growing U.S. self-sufficiency in oil and gas (thanks to fracking, which Obama largely opposed). Still, let us hope the Gulf States remain neutral rather than becoming enemies — given their financial clout and the availability of Pakistani bombs for Sunni petrodollars.

Meanwhile, the Obama administration has it in for Israel. Why, no one quite knows, given that the Jewish state is the only democratic and liberal society in the Middle East. Perhaps it resembles the United States too closely, and thus earns the reflected hypercriticism that so many leftists cultivate for their own civilization.

Theocratic Iran has won more sympathy from the Obama administration. No neutral observer believes that the current policy of lifting sanctions and conducting negotiations will not lead to an Iranian bomb; it is hoped only that this will be unveiled on the watch of another president, who will be castigated as a warmonger if he is forced to preempt its rollout.

The current American foreign policy toward Iran is baffling. Does Obama see the theocracy as a valuable counterweight to the Sunni monarchies? Is it more authentic in the revolutionary sense than the geriatric hereditary kingdoms in the Gulf? Or is the inexplicable policy simply a matter of John Kerry’s gambit for a Nobel Peace Prize or some sort of Obama legacy in the eleventh hour, a retake of pulling all U.S. peacekeepers home from a once-quiet Iraq so that Obama could claim he had “ended the war in Iraq”?

Hillary Clinton has been talking up her successful tenure as secretary of state. But mysteriously she has never specified exactly where, when, or how her talents shone. What is she proud of? Reset with Russia? The Asian pivot to discourage Chinese bellicosity? The critical preliminary preparations for talks with Iran? The Libyan misadventure? Or perhaps we missed a new initiative to discourage North Korean aggression? Some new under-appreciated affinity with Israel and the Gulf monarchies? The routing of ISIS, thanks to Hillary’s plans? Shoring up free-market democracies in Latin America? Proving a model of transparency as secretary? Creating a brilliant new private-public synergy by combining the work of the State Department, the Clinton Foundation, and Bill’s lecturing –as evidenced by the Haitian renaissance and nation-building in Kazakhstan?

He also considers the administration’s domestic failures:

Meanwhile, no one seems to much care that between 2009 and 2017, we will have borrowed 8 trillion more dollars. Yet for all that stimulus, the U.S. economy still has staggering labor non-participation rates, flat GDP growth, and stagnant household income. As long as zero interest rates continue, the rich make lots of money in the stock market, and the debt can grow by $500 billion a year and still be serviced. Financial sobriety is now defined as higher taxes bringing in record revenues to service half-trillion-dollar annual additions to an $18 trillion debt.

The liberal approach to the underclass continues as it has been for the last 50 years: The elites support huge, unquestioned redistributionist entitlements for the inner city as penance for avoiding it. Minorities are left to run their own political affairs without much worry that their supposed benefactors live apartheid lives, protected by the proof of their caring. The public is left with the lie “Hands up, don’t shoot” as a construct that we will call true, because the made-up last-seconds gasps of Michael Brown perhaps should have happened that way. As an elite bookend, we have a Columbia coed toting around a mattress as proof of society’s insensitivity to sexual violence, which in her case both her university and the New York City police agree never occurred. In theory, perhaps it could have and thus all but did.

As far as scandals go, no one much cares any more about the implosion of the Veterans Administration. In the public’s defense, though, how does one keep straight the multitudinous scandals — Lois Lerner and the rogue IRS, the spying on and tapping of Associated Press journalists, the National Security Agency disclosures, Fast and Furious, the serial lying about needless deaths in Benghazi, the shenanigans at the General Services Administration, the collapse of sobriety at the Secret Service, the rebooting of air-traffic controllers’ eligibility to be adjudicated along racial and ethnic lines, and the deletions from Hillary Clinton’s private e-mail server, which doubled as her government server.

Always there is the administration’s populist anthem of “You didn’t build that”; instead, you must have won the lottery from President Obama. If his economic programs are not working, there is always the finger pointing at those who are too well off. Michelle Obama lectured a couple of weeks ago on museum elitism and prior neglect of the inner city, in between recounting some slights and micro-aggressions that she has endured, presumably on jumbo-jet jaunts to Costa del Sol and Aspen. I think her point is that it is still worse to be rich, powerful, and black than, say, poor, ignored, and non-black. …

He concludes on a note of despondency not far off from despair:

The center of this culture is not holding. …

More Americans privately confess that American foreign policy is dangerously adrift. They would agree that the U.S. no longer has a southern border, and will have to spend decades and billions of dollars coping with millions of new illegal aliens.

Some Americans are starting to fear that the reckless borrowing under Obama will wreck the country if not stopped.

Racial tensions, all concede, are reaching dangerous levels, and Americans do not know what is scarier: inner-city relations between blacks and the police, the increasing anger of the black underclass at establishment America — or the even greater backlash at out-of-control violent black crime and the constant scapegoating and dog whistles of racism.

Whatever liberalism is, it is not working.

It’s certainly not “liberal” in the real meaning of the word. It is the opposite – dictatorial.

We call it Leftism. It has the Western world in its crushing grip.

“I, Pencil” forever 104

We posted this classic essay by Leonard E. Read at least twice before, but it seems to have dissolved in the mists of time. We were recently reminded of it by our contributing commenter, Don L.

It needs to be known by all generations down through the ages.

So here it is, or most of it. (We have made a few small cuts to appease our prejudices.)

As I sat contemplating the miraculous make-up of an ordinary lead pencil, the thought flashed in mind: I’ll bet there isn’t a person on earth who knows how to make even so simple a thing as a pencil.

If this could be demonstrated, it would dramatically portray the miracle of the market and would help to make clear that all manufactured things are but manifestations of creative-energy exchanges, that these are, in fact, spiritual phenomena. The lessons in political economy this could teach!

There followed that not-to-be-forgotten day at the pencil factory, beginning at the receiving dock, covering every phase of countless transformations, and concluding in an interview with the chemist.

Had you seen what I saw, you, also, might have struck up a warm friendship with that amazing character, I, PENCIL.

Being a writer in his own right, let I, PENCIL speak for himself:

I am a lead pencil — the ordinary wooden pencil familiar to all boys and girls and adults who can read and write.

Writing is both my vocation and my avocation; that’s all I do.

You may wonder why I should write a genealogy. Well, to begin with, my story is interesting. And, next, I am a mystery — more so than a tree or a sunset or even a flash of lightning. But, sadly, I am taken for granted by those who use me, as if I were a mere incident and without background. This supercilious attitude relegates me to the level of the commonplace. This is a species of the grievous error in which mankind cannot too long persist without peril. …

I, Pencil, simple though I appear to be, merit your wonder and awe, a claim I shall attempt to prove. In fact, if you can understand me — no, that’s too much to ask of anyone — if you can become aware of the miraculousness that I symbolize, you can help save the freedom mankind is so unhappily losing. I have a profound lesson to teach. And I can teach this lesson better than can an automobile or an airplane or a mechanical dishwasher because — well, because I am seemingly so simple.

Simple? Yet, not a single person on the face of this earth knows how to make me. This sounds fantastic, doesn’t it? Especially when it is realized that there are about one and one-half billion of my kind produced in the United States each year.

Pick me up and look me over. What do you see? Not much meets the eye — there’s some wood, lacquer, the printed labeling, graphite lead, a bit of metal, and an eraser.

Just as you cannot trace your family tree back very far, so is it impossible for me to name and explain all my antecedents. But I would like to suggest enough of them to impress upon you the richness and complexity of my background.

My family tree begins with what in fact is a tree, a cedar of straight grain that grows in Northern California and Oregon. Now contemplate all the saws and trucks and rope and the countless other gear used in harvesting and carting the cedar logs to the railroad siding. Think of all the persons and the numberless skills that went into their fabrication: the mining of ore, the making of steel and its refinement into saws, axes, motors; the growing of hemp and bringing it through all the stages to heavy and strong rope; the logging camps with their beds and mess halls, the cookery and the raising of all the foods. Why, untold thousands of persons had a hand in every cup of coffee the loggers drink!

The logs are shipped to a mill in San Leandro, California. Can you imagine the individuals who make flat cars and rails and railroad engines and who construct and install the communication systems incidental thereto? These legions are among my antecedents.

Consider the millwork in San Leandro. The cedar logs are cut into small, pencil-length slats less than one-fourth of an inch in thickness. These are kiln dried and then tinted … [because] people prefer that I look pretty, not a pallid white. The slats are waxed and kiln dried again. How many skills went into the making of the tint and the kilns, into supplying the heat, the light and power, the belts, motors, and all the other things a mill requires? Sweepers in the mill among my ancestors? Yes, and included are the men who poured the concrete for the dam of a Pacific Gas & Electric Company hydroplant, which supplies the mill’s power!

Don’t overlook the ancestors present and distant who have a hand in transporting 60 carloads of slats across the nation.

Once in the pencil factory — $4,000,000 in machinery and building, all capital accumulated by thrifty and saving parents of mine — each slat is given eight grooves by a complex machine, after which another machine lays leads in every other slat, applies glue, and places another slat atop — a lead sandwich, so to speak. Seven brothers and I are mechanically carved from this “wood-clinched” sandwich.

My “lead” itself — it contains no lead at all — is complex. The graphite is mined in Ceylon. Consider these miners and those who make their many tools and the makers of the paper sacks in which the graphite is shipped and those who make the string that ties the sacks and those who put them aboard ships and those who make the ships. Even the lighthouse keepers along the way assisted in my birth — and the harbor pilots.

The graphite is mixed with clay from Mississippi in which ammonium hydroxide is used in the refining process. Then wetting agents are added such as sulfonated tallow — animal fats chemically reacted with sulfuric acid. After passing through numerous machines, the mixture finally appears as endless extrusions — as from a sausage grinder — cut to size, dried, and baked for several hours at 1,850 degrees Fahrenheit. To increase their strength and smoothness the leads are then treated with a hot mixture that includes candelilla wax from Mexico, paraffin wax, and hydrogenated natural fats.

My cedar receives six coats of lacquer. Do you know all the ingredients of lacquer? Who would think that the growers of castor beans and the refiners of castor oil are a part of it? They are. Why, even the processes by which the lacquer is made a beautiful yellow involve the skills of more persons than one can enumerate!

Observe the labeling. That’s a film formed by applying heat to carbon black mixed with resins. How do you make resins and what, pray, is carbon black?

My bit of metal — the ferrule — is brass. Think of all the persons who mine zinc and copper and those who have the skills to make shiny sheet brass from these products of nature. Those black rings on my ferrule are black nickel. What is black nickel and how is it applied? The complete story of why the center of my ferrule has no black nickel on it would take pages to explain.

Then there’s my crowning glory, inelegantly referred to in the trade as “the plug,” the part man uses to erase the errors he makes with me. An ingredient called “factice” is what does the erasing. It is a rubberlike product made by reacting rapeseed oil from the Dutch East Indies with sulfur chloride. Rubber, contrary to the common notion, is only for binding purposes. Then, too, there are numerous vulcanizing and accelerating agents. The pumice comes from Italy; and the pigment that gives “the plug” its color is cadmium sulfide.

Does anyone wish to challenge my earlier assertion that no single person on the face of this earth knows how to make me?

Actually, millions of human beings have had a hand in my creation, no one of whom even knows more than a very few of the others. Now, you may say that I go too far in relating the picker of a coffee berry in far-off Brazil and food growers elsewhere to my creation; that this is an extreme position. I shall stand by my claim. There isn’t a single person in all these millions, including the president of the pencil company, who contributes more than a tiny, infinitesimal bit of know-how. From the standpoint of know-how the only difference between the miner of graphite in Ceylon and the logger in Oregon is in the type of know-how. Neither the miner nor the logger can be dispensed with, any more than can the chemist at the factory or the worker in the oil field — paraffin being a byproduct of petroleum.

Here is an astounding fact: neither the worker in the oil field nor the chemist nor the digger of graphite or clay nor any who mans or makes the ships or trains or trucks nor the one who runs the machine that does the knurling on my bit of metal nor the president of the company performs his singular task because he wants me. Each one wants me less, perhaps, than does a child in the first grade. Indeed, there are some among this vast multitude who never saw a pencil nor would they know how to use one. Their motivation is other than me. Perhaps it is something like this: each of these millions sees that he can thus exchange his tiny know-how for the goods and services he needs or wants. I may or may not be among these items.

There is a fact still more astounding: the absence of a mastermind, of anyone dictating or forcibly directing these countless actions which bring me into being. No trace of such a person can be found. Instead, we find the Invisible Hand at work. This is the mystery to which I earlier referred.

… I, Pencil, am a complex combination of miracles: a tree, zinc, copper, graphite, and so on. But to these miracles that manifest themselves in nature an even-more-extraordinary miracle has been added: the configuration of creative human energies — millions of tiny know-hows configurating naturally and spontaneously in response to human necessity and desire and in the absence of any human masterminding! …

The above is what I meant when writing, “If you can become aware of the miraculousness that I symbolize, you can help save the freedom mankind is so unhappily losing.” For, if one is aware that these know-hows will naturally, yes, automatically, arrange themselves into creative and productive patterns in response to human necessity and demand — that is, in the absence of governmental or any other coercive masterminding — then one will possess an absolutely essential ingredient for freedom: a faith in free people. Freedom is impossible without this faith.

Once government has had a monopoly of a creative activity such, for instance, as the delivery of the mails, most individuals will believe that the mails could not be efficiently delivered by men acting freely. And here is the reason: each one acknowledges that he himself doesn’t know how to do all the things incident to mail delivery. He also recognizes that no other individual could do it. These assumptions are correct. No individual possesses enough know-how to perform a nation’s mail delivery any more than any individual possesses enough know-how to make a pencil. Now, in the absence of faith in free people — in the unawareness that millions of tiny know-hows would naturally and miraculously form and cooperate to satisfy this necessity — the individual cannot help but reach the erroneous conclusion that mail can be delivered only by governmental “masterminding.”

If I, Pencil, were the only item that could offer testimony on what men and women can accomplish when free to try, then those with little faith would have a fair case. However, there is testimony galore; it’s all about us and on every hand. Mail delivery is exceedingly simple when compared, for instance, to the making of an automobile or a calculating machine or a grain combine or a milling machine or to tens of thousands of other things.

Delivery? Why, in this area where men have been left free to try, they deliver the human voice around the world in less than one second; they deliver an event visually and in motion to any person’s home when it is happening; they deliver 150 passengers from Seattle to Baltimore in less than four hours; they deliver gas from Texas to one’s range or furnace in New York at unbelievably low rates and without subsidy; they deliver each four pounds of oil from the Persian Gulf to our Eastern Seaboard — halfway around the world — for less money than the government charges for delivering a one-ounce letter across the street!

The lesson I have to teach is this: Leave all creative energies uninhibited. Merely organize society to act in harmony with this lesson. Let society’s legal apparatus remove all obstacles the best it can. Permit these creative know-hows freely to flow.

Have faith that free men and women will respond to the Invisible Hand. This faith will be confirmed. I, Pencil, seemingly simple though I am, offer the miracle of my creation as testimony that this is a practical faith, as practical as the sun, the rain, a cedar tree, the good earth.

Posted under Capitalism, Commentary, Economics by Jillian Becker on Monday, May 18, 2015

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Hayek the Great and the invisible hand 39

Today is the 116th anniversary of the birth of F. A. Hayek. (Friedrich August von Hayek.) 

He is one of the greatest defenders of liberty in the history of the enlightened West.

His work as an economist is enormously important.

Milton Friedman said of him:

No person had more of an influence on the intellectuals behind the Iron Curtain than Friedrich Hayek. His books were translated and published by the underground and black market editions, read widely, and undoubtedly influenced the climate of opinion that ultimately brought about the collapse of the Soviet Union.

An article at Townhall by David Boaz lists some of the plaudits and honors he received:

Who was Hayek? He was an economist born and educated in Vienna. After the Nazi conquest of Austria, he became a British citizen and taught there [in Britain] and at the University of Chicago for most of his career.

He was awarded the Nobel Prize in Economics in 1974.

President Ronald Reagan called him one of the two or three people who had most influenced him

President George H. W. Bush awarded him the Medal of Freedom.

Margaret Thatcher banged his great book The Constitution of Liberty on the table at Conservative Party headquarters and declared “This is what we believe.” …

He is the hero of The Commanding Heights, the book and PBS series on the battle of economic ideas in the 20th century.

His most popular book, The Road to Serfdom, has never gone out of print and saw its sales explode during the financial crisis and Wall Street bailouts.

John Cassidy wrote in the New Yorker that “on the biggest issue of all, the vitality of capitalism, he was vindicated to such an extent that it is hardly an exaggeration to refer to the 20th century as the Hayek century”. 

If only! No Western country, even under leaders that held him in the highest esteem, put his theory into practice. Every one of them is a welfare state to some degree. In all of them government is an agency that redistributes wealth. Hayek believed the business of the state is to protect liberty with the rule of law, not to plan the economy, or intervene in the working of the free market. He taught that only the free market can provide the signals that make for the most efficient use of resources. Central planning is socialism – and socialism, Hayek explained, tends towards totalitarianism.

Here is Hayek, champion of free market capitalism, talking about Maynard Keynes, advocate of government intervention in markets and the economist whom Western states have preferred to follow:

In The Wealth of Nations, Adam Smith wrote:

“Every individual necessarily labours to render the annual revenue of the society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it … He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for society that it was no part of his intention. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good.”

Hayek (we quote from here) “called the free market system a ‘marvel’ because just one indicator, the market price of a commodity, spontaneously carries so much information that it guides buyers and sellers to make decisions that help both obtain what they want. The market price of a product, a component of the invisible hand, reflects thousands, even millions, of decisions made around the world by people who don’t know each other or what the others are doing”.

Hayek’s most popular and least technical books The Road to Serfdom and The Constitution of Liberty ought to be prescribed reading in every high school and every university in the world.

We doubt they will be. The socialists have won. The decline of the West may be irreversible.

What needs to be known about the Clintons’ charities 196

The Bill, Hillary and Chelsea Clinton Foundation is nominally a charitable institution.

We listed some of the “charities” it supports or has supported in our post The great good works and wonky dilemmas of William J. Clinton (April 18, 2015). The list includes a grant to China for its electricity grid, and a few to Ulrainian politicians to “modernize Ukraine”.

Apparently 15% of the hundreds of million that pour into the Foundation are dispersed to such good causes.

According to Wikipedia (see the entry on the Clinton Foundation):

Between 2009 and 2012, the Clinton Foundation raised more than $500 million dollars according to its IRS filings. 15% of that, or $75 million, was spent on charitable activities. More than $25 million was spent on travel expenses. Nearly $110 million went toward employee salaries and benefits.

Investigative reporting on who sends in the money and in return for what favors has been begun, astonishingly, by Left-biased media, The  New York Times, The Washington Post, Reuters.

Now a report is needed on what is done with that money.

We don’t have the resources to find out. But even the sort of superficial research that’s within our capability turns up information that cries out for deeper, wider, professional exploration.

The very easily accessed Wikipedia entry on the Clinton Foundation and the Clinton Global Initiative is a window-display of curiosities.

We select a few of them.:

The Clinton Global Initiative (CGI)  is a non-partisan organization that convenes global leaders to devise and implement innovative solutions to the world’s most pressing problems.

Each year, CGI hosts an Annual Meeting in September, scheduled to coincide with the U.N. General Assembly.

At the Annual Meeting, CGI members discuss major global issues, share ideas and knowledge about effective solutions, and form partnerships that enable them to enhance their work.

Each CGI member develops a Commitment to Action – a plan to take specific action to make the world a better place.

What work?

Commitments generally fit within one of CGI’s nine tracks:

The Built Environment

Education & Workforce Development

Energy

Solar and wind?

Environmental Stewardship

Girls & Women

Global Health

By “Global Health” is meant what? The health of the globe, or the health of all the people on the globe?

Market-Based Approaches

A “commitment” to “approaches”?

Response & Resilience

Response to what? Whose resilience?

Technology

Commitments must be new, specific, and measurable, but beyond those three criteria, members have wide latitude to determine which actions to take. CGI then monitors the progress and success of these commitments throughout the year.

So there should be lots of reports on the progress and success of the “commitments”.

Funding pledged through commitments does not come through CGI, and is not donated to CGI. Rather, organizations commit to raise and distribute money on their own.

Since 2005, CGI members have made more than 2,300 Commitments to Action, which have improved the lives of over 400 million people in more than 180 countries.

Throughout the year, CGI helps its members – primarily corporations, NGOs, and government leaders – maximize their efforts to create positive change. CGI is not a grant-making organization. CGI Annual Meetings have brought together more than 150 heads of state, 20 Nobel Prize laureates, and hundreds of leading CEOs, heads of foundations and NGOs, major philanthropists, and members of the media. As of 2013, CGI members have made more than 2,300 commitments, which have improved the lives of over 400 million people in more than 180 countries. When fully funded and implemented, these commitments will be valued at $73.5 billion.

So the CGI makes no grants. It does not itself disperse funds. It is for influence peddling. What it does is get powerful and/or celebrated people together once a year to “make commitments”. At the same time they make themselves more powerful and/or more celebrated. For which they reward Bill Clinton by making lavish donations to his Foundation?

In addition,it “helps” those people, “throughout the year”, to “maximize their efforts to create positive change”. When funded and implemented by others – not the Clinton Global Initiative – these “commitments” will be valued at $73.5 billion. Indeed, 2,300 such commitments have already “improved the lives of over 400 million people in more than 180 countries”.

Who are the 400 million people? How have their lives been improved? How do the improvements stem from the “commitments” made at the annual convention organized by the Clinton Global Initiative? .

On June 13 and 14 of 2013, President Clinton hosted the third meeting of CGI America in Chicago, an annual event focused on finding solutions that promote economic recovery in the United States. This working meeting purportedly brought together leaders from the business, foundation, NGO, and government sectors to develop solutions to increase employment, advance access to education and skills development, strengthen energy security, and promote an environment for business growth and innovation.

Were the effects noticed by the people of the United States? Were they noticeable at all?

Responding to increasing interest among business and governments around the world, President Clinton launched CGI International to supplement the Annual Meeting in New York with additional meetings in various regions of the globe.

In December 2008, President Clinton convened the first CGI International meeting in Hong Kong to address local, regional, and global challenges. The focus of the CGI meeting in Asia was on three main areas: education, energy and climate change, and public health. The two-day meeting attracted over 3,000 accredited delegates, a record number for a nongovernmental organization gathering in Asia.

One thing is certain. Bill Clinton is having a whale of a time being important at vast gatherings in many places round the world.

Prominent participants included … thought leaders such as … Ban Ki-moon, Secretary-General of the UN.

We await the Little Red Book of the Thoughts of Ban Ki-moon.

Remember, all this costs the Clintons, the Clinton Foundation, and its Global Initiative nothing. How much the meetings gather in for the Clintons it would be interesting to know.

The CGI does give awards. To whom do they go? For what?

The Clinton Global Citizen Awards are a set of awards which have been given by the Clinton Global Initiative every year since 2007. The awards are given to individuals who, in the opinion of the Clinton Foundation, are “outstanding individuals who exemplify global citizenship through their vision and leadership“.  

Past recipients of the award include Mexican business magnate and philanthropist Carlos Slim …

.. who is said to be the richest man in the world …

 Moroccan entrepreneur Mohammad Abbad Andaloussi, Rwandan President Paul Kagame, Afghan women’s rights activist Suraya Pakzad, and Dominican Republic President Leonel Fernández.[35]

What did they do? Of what did the award consist? If money, how much? And does that money come from CGI itself, or from whom?

As you might expect, struggling against an alleged threat of “climate change” is central to this enormous, planet-wide, big-power enterprise presided over by Bill Clinton, the most important person in the world.

Building on his long term commitment to preserving the environment, President Clinton launched the Clinton Foundation’s Climate Initiative (CCI) in August 2006, with the mission of applying the Foundation’s business-oriented approach to fight against climate change in practical, measurable, and significant ways.”

Recognizing the opportunity to fight climate change in the world’s cities, CCI is working with 40 of the world’s largest cities to reduce their greenhouse gas emissions through a variety of large-scale programs, a purchasing alliance, and measurement tools to track progress and share best practices.

What best practices? We are told that part of this scheme to “help some large cities cut greenhouse gas emissions” is being carried out by “facilitating retrofitting of existing buildings”.

Insulating them against heat loss? Putting solar panels on their roofs? Who is paying?

Five large banks committed $1 billion each to help cities and building owners make energy-saving improvements aimed at lowering energy use and energy costs.

And what was the quid pro quo for the banks? We’d very much like to know.

And to be one of those lucky building owners – do you have to be a friend of the Clintons? Are you obliged to give a large donation to their Foundation?

At the 2007 Clinton Global Initiative, President Clinton announced the 1Sky campaign to accelerate bold federal policy on global warming. The 1Sky campaign supports at least an 80% reduction in climate pollution levels by 2050.

The CGI is going to “accelerate federal policy”? How? Is it perhaps relying on Hillary Clinton being president in 2017 for that?

On May 19, 2009, CCI announced the global Climate Positive Development Program where it will work with the U.S. Green Building Council to promote “climate positive” city growth.

Ah, the Clintons have their fingers in many pies and cookie jars. And they stir many pots.

Now we come to what may be an actual “good cause”, for which yet another initiative – the  Clinton Development Initiative (CDI) – has been launched …

… to target the root causes of poverty in Africa and promote sustainable economic growth.

The initiative will invest $100 million over the next 10 years in projects that will improve food security, clean water and sanitation, and quality health care. Right now, these programs are focused in Rwanda and Malawi, but can potentially be expanded to other countries in the future.

What is the Clinton role in this?

Together with the governments of these two countries, CDI has had such successes as helping farmers access fertilizer, disease-resistant seeds, irrigation systems, advanced planting techniques and micro-credit. This assistance has led to a record harvest in eastern Rwanda. CDI has also helped Partners in Health build new health care facilities in Neno, Malawi. In 2007 and 2008, CHDI assisted in the training of thousands of farmers on advanced planting techniques, helped to strengthen the organization, operations and sales of Rwandan coffee manufacturers and Malawian cotton farmers and partnered with local governments in large-scale developments including irrigation, hospital and school projects.

Excellent work. But as far as we can make out, not a cent of Clinton money has been spent on it.

There are many more Initiatives. There are conferences, strategies, the convening of “national thought leaders” to “discuss ways in which individuals, communities, and corporations can contribute to the health of others“. Aims include, f0r instance, getting American children to consume fewer calories; “increasing  the access of unbanked populations to starter bank accounts”; establishing a bus system in Rio de Janeiro whereby “four express corridors for articulated buses will connect the whole city”.

Who supplies the buses? Is the company that gets the contract duly grateful? Does it send a check to the Clinton Foundation to prove its gratitude? Or rather, of course, to suppport some good cause?

Still not a cent of Clinton money is said to have been given. We are assured, however, that 15% of $500 million has been spent on “charitable activities”.

If only someone would tell us how much on which.

What the Clintons want us to understand is that without them there are commitments that would not be made, advice that would not be given, thoughts that would not be thought, promotions that would not be promoted, strategies that would not be devised, buses that would not connect parts of cities, farmers that would not use advanced planting techniques. 

All that must surely make us feel how small and petty are our efforts to expose the Clintons’ corruption and malfeasance – as petty and pointless as shooting peas at a monument. The Clintons are too big to fail.

For pity’s sake, stop fooling about and elect Hillary Clinton to the presidency so that the Clintons, re-installed in the White House with the furniture and china they stole from it when they had to leave it for a while, can get even richer, be as powerful as anyone could possible get, and do even more good to mankind.

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