There are a few countries that have not been plunged into recession by the almost global economic crisis. Some have prospered in the midst of it, though not because of it.

The fall in US real estate values, unemployment, and deep debt were caused by socialist policies, as Thomas Sowell explains in his new book, The Housing Boom and Bust. Find an excerpt from it here.

The countries that have prospered have done so as a result of sticking to free market policies. Here are two examples:

1.  Chile is a shining model.

From Investor’s Business Daily:

Chile is expected to win entry to OECD’s club of developed countries by Dec. 15 — a great affirmation for a once-poor nation that pulled itself up by trusting markets. One thing that stands out here is free trade.

At a summit of Latin American countries last week in Portugal, Chilean President Michelle Bachelet suddenly became the center of attention — and rightly so. She announced that her country was expected to win membership in the Organization of Economic Cooperation and Development, an exclusive club of the richest and most economically credible nations. …

For the rest of us, it’s a stunning example of how embracing free markets and free trade brings prosperity.

It’s not like Chile was born lucky. Only 30 years ago, it was an impoverished country with per capita GDP of $1,300. Its distant geography, irresponsible neighbors and tiny population were significant obstacles to investment and growth. And its economy, dominated by labor unions, wasn’t just closed, but sealed tight.

In the Cato Institute’s 1975 Economic Freedom of the World Report it ranked a wretched 71 out of 72 countries evaluated.

Today it’s a different country altogether. Embracing markets has made it one of the most open economies in the world, ranking third on Cato’s index, just behind Hong Kong and Singapore. Per capita GDP has soared to $15,000.

Besides its embrace of free trade, other reforms — including pension privatization, tax cuts, respect for property rights and cutting of red tape helped the country grow not only richer but more democratic, says Cato Institute trade expert Daniel Griswold.

But the main thing, Griswold says, is that the country didn’t shift course. “Chile’s economy is set apart from its neighbors, because they have pursued market policies consistently over a long period,” he said. “Free trade has been a central part of Chile’s success.”

Chile has signed no fewer than 20 trade pacts with 56 countries, giving its 19 million citizens access to more than 3 billion customers worldwide. When no pact was in force, Griswold notes, Chile unilaterally dropped tariffs. This paid off handsomely. …

The success belies claims, made mostly by protectionist unions, that free trade is a job killer and source of misery.

It’s also a reminder of how the U.S. has lagged on trade agreements, signing just 11 with 17 countries since 1993 — one reason why its ranks just 17th on Cato’s 2009 Index of Economic Freedom.

Despite the recession, American trade pacts with Colombia, Panama and Korea are languishing into a fourth year, and treaties were nowhere to be found on the agenda at last week’s big White House jobs summit.

By contrast, Chile got to where it is by embracing trade. Its example is a shining lesson of how prosperity can be achieved no matter what the challenges — a lesson the U.S. would do well to relearn as our recovery tries to get traction.

2. Israel is thriving economically, and as a result so is the West Bank.

Here’s an extract from a Wall Street Journal article by Tom Gross, who visited the West Bank recently:

The shops and restaurants were  full when I visited Hebron recently, and I was surprised to see villas comparable in size to those on the Cote d’Azur or Bel Air had sprung up on the hills around the city. Life is even better in Ramallah, where it is difficult to get a table in a good restaurant. New apartment buildings, banks, brokerage firms, luxury car dealerships and health clubs are to be seen. In Qalqilya, another West Bank city that was previously a hotbed of terrorists and bomb-makers, the first ever strawberry crop is being harvested in time to cash in on the lucrative Christmas markets in Europe. Local Palestinian farmers have been trained by Israeli agriculture experts and Israel supplied them with irrigation equipment and pesticides.

A new Palestinian city, Ruwabi, is to be built soon north of Ramallah. Last month, the Jewish National Fund, an Israeli charity, helped plant 3,000 tree seedlings for a forested area the Palestinian planners say they would like to develop on the edge of the new city. Israeli experts are also helping the Palestinians plan public parks and other civic amenities.

Outsiders are beginning to take note of the turnaround too. The official PLO Wafa news agency reported last week that the 3rd quarter of 2009 witnessed near-record tourism in the Palestinian Authority, with 135,939 overnight hotel stays in 89 hotels that are now open. Almost half the guests come from the U.S or Europe.

Palestinian economic growth so far this year—in a year dominated by economic crisis elsewhere—has been an impressive 7% according to the IMF, though Palestinian Prime Minister Salam Fayad, himself a former World Bank and IMF employee, says it is in fact 11%, partly helped along by strong economic performances in neighboring Israel. …

In June, the Washington Post’s Jackson Diehl related how Palestinian President Mahmoud Abbas had told him why he had turned down Ehud Olmert’s offer last year to create a Palestinian state on 97% of the West Bank (with 3% of pre-1967 Israeli land being added to make up the shortfall). “In the West Bank we have a good reality,” Abbas told Diehl. “The people are living a normal life,” he added in a rare moment of candor to a Western journalist. [Well, this may be partly why, but the main reason is that acceptance of a Palestinian state would entail acceptance of the Jewish state, a reversal of Arab policy which no Palestinian leader would dare attempt – JB]

Nablus stock exchange head Ahmad Aweidah went further in explaining to me why there is no rush to declare statehood, saying ordinary Palestinians need the IDF to help protect them from Hamas, as their own security forces aren’t ready to do so by themselves yet.

The truth is that an independent Palestine is now quietly being built, with Israeli assistance. …

Read it all here.

An editorial in the Wall Street Journal titled The Welfare State and Military Power shows why redistributive domestic policy necessarily leads to the decline of power. In other words, socialism weakens the nation. And that is what Obama and the Democrats want to do.  As we have reiterated (see below, The two-horse rider and Obama’s grandiose equivocation), it is a choice between liberty and power  (and, we should add, prosperity) on the one side, or collectivism and decline (and impoverishment) on the other.

Has the moment of decision come and gone with the election of Obama? Has America already freely chosen to be unfree?

Or is it coming now with the push to nationalize health care, put the economy under government control, and begin the disarmament of America?

If now, which way will  America choose to go?

Here’s an extract from the WSJ article:

Welfare spending [in Europe] has crowded out defense spending. The political imperative of health care and pensions always trumps defense spending, save perhaps in a hot war. Europe may never again be able to muster public support for a defense buildup of the kind the U.S. undertook to end the Cold War in the 1980s, or even the smaller surge after 9/11.

The tragic irony of this year is that Democrats are rushing the U.S. down this same primrose entitlement path. With ObamaCare certain to eat up several more percentage points of GDP as it inevitably expands, we will take a giant step toward European social priorities.

For many Democrats, this is precisely the goal. Many Europeans, such as those at the Financial Times, will also welcome America’s relative decline. But we doubt the American people fully understand what such a gilded entitlement cage means for our national vitality, or for our ability to defend U.S. interests at home and abroad. …

President Obama’s domestic agenda may well mean that his successors lack the option to deploy 100,000 troops to Afghanistan, or to some other future trouble spot. This is the way superpowers lose their superiority.

Obama’s effort at pleasing both the Patriots and the Left in his West Point speech (see below, Obama’s grandiose equivocation) has not succeeded. How could it?

Like a circus performer trying to ride two horses with one foot on each saddle as the steeds canter round the ring, he struggled to maintain his balance, but fell off. His speech was a failure. His announcement that he will send more troops and start retreating on a fixed date is derided by both sides.

The Chicago Tribune has had the bright idea of accosting Bill Ayers, an ever dependable mouthpiece for the Left, and asking for his thoughts. You can see him and listen to his reply here. Predictably he excoriates Obama for pursuing the war in Afghanistan at all. (Note also that he seems to think Aghanistan is in the ‘Middle East’. He’s so far on the left himself, this famous educationist, that all middles most probably seem immensely wide to him.)

Ayers is attending an anti-war rally. How does it feel, Mr President, to have your old anti-war comrades demonstrating against you and your war?

Obama’s entire presidency is doomed to be the same impossible struggle: to keep his balance between the long-established realities of American freedom and power on the one hand and his collectivist idealism – the ‘change’ he promised – on the other. It cannot be done, fortunately. But the very struggle to do the impossible could prove disastrous for the nation.

[PS  The reason we didn’t neatly balance ‘Patriots’ with ‘Revolutionaries’ , or ‘the Left’ with ‘the Right’ is that (i) many on the Left deny that they are ‘revolutionaries’ or even ‘socialists’ although they support collectivist policies which are both, such as nationalized health care and cap-and-trade; and (ii) ‘the Right’ can be made to include non-egalitarian collectivists. ‘Libertarians versus Collectivists’ would be good, but would need to be explained, as neither word is commonly used as we use them. ‘Collectivist’ might be easily enough digested, but ‘Libertarian’ as the word is most often used (especially with its anti-war connotation) does not fit with the way most American patriots think of themselves, even though they love liberty.]

Jillian Becker  December 4, 2009

At last we atheists believe in the existence of a Savior of Mankind. We don’t know his name. We only know he’s a simple hacker.

He’s saved us from incalculable harm.

Or at least we hope he has.

When short-sighted capitalists and blind communist ideologues meet next week in Copenhagen, will they yet succeed in impoverishing and enslaving us in the name of saving the planet from global warming? Even though the hacker has revealed that the ‘science’ is fraudulent?

From Canada Free Press:

The upcoming Copenhagen meeting sponsored by the United Nations had hoped for a global redistribution of wealth over the next 20 years of between $6 trillion and $10.5 trillion, according to the draft treaty, to “Compensate for damage to the less developed countries’ economy and also compensate for lost opportunities, resources, lives, land and dignity, as many will become environmental refugees.” Third world governments see dollar signs.

In the U.S., the Treasury Department estimates that the president’s cap-and-trade approach would “generate federal receipts on the order of $100- to $200 billion annually.” The Congressional Budget Office reports that a 15 percent CO2 reduction would cost an average household $1,600 a year.

The U.N. Intergovernmental Panel on Climate Change (IPCC) is a bureaucrat’s paradise that exists solely to perpetrate the myth, while enjoying frequent meetings at exotic venues throughout the world.

Many governments maintain bureaucracies just to “study” the myth. In the U.S., it’s the Global Change Research Program. NOAA [National Oceanic and Atmospheric Association], the Goddard Institute for Space Studies, the National Climate Change and Wildlife Center of the USGS [US Geological Survey], and the EPA [Environmental Protection Agency] are just a few other federal agencies feeding at the trough.

Over the last 20 years, the US government spent $32 billion on climate research, yet has failed to find any evidence that carbon dioxide emissions significantly affect temperature or represent a danger. Government agencies, the private sector, and universities were the recipients of this money. These organizations have a vested interest in maintaining the myth.

The feds also spent another $36 billion for development of climate-related technologies in the form of subsidies and tax breaks. Solar and wind-power generation of electricity can be a supplemental supply, but these methods could not compete with fossil fuels without a subsidy. These industries have a vested interest in maintaining the myth.

The ethanol industry is founded solely on the myth that we must reduce our use of fossil fuels, even though the U.S. has abundant supplies.

The American Recovery and Reinvestment Act (Bailout bill) contained $3.4 billion for research and experimentation in the area of carbon sequestration – burying carbon dioxide generated by fossil fuel plants. There are also, really wild schemes for geoengineering, schemes to block the sun with mirrors, or seed the atmosphere with sulfur to produce more clouds.

On the world commodities market, trading carbon credits generated $126 billion in 2008, and big banks are collecting fees, and some project a market worth $2 trillion. Al Gore’s venture capital firm, Hara Software which makes software to track greenhouse gas emissions, stands to make billions of dollars from cap-and-trade regulation. If the myth is destroyed, this market will evaporate.

Back in 2007, a coalition of major corporations and environmental groups formed the U.S. Climate Action Partnership (USCAP) to lobby for cap & trade. The companies planned to profit (at least in the short term) from either the cap-and-trade provisions or from selling high-priced, politically-favored (if not mandated) so-called “green” technology to the rest of us — whether we need it or not, and regardless of whether it produces any environmental or societal benefits.

Corporate USCAP members include: Alcoa, BP America, Caterpillar Inc., Dow Chemical, Duke Energy, DuPont, FPL Group, Exelon, General Electric, Lehman Brothers, John Deer & Co, PG&E Corporation, and PNM Resources. …

The vested interests are strong and many. Is the global warming industry “too big to fail?” It remains to be seen whether those interests, and [collectivist] political ideology will triumph over truth and common sense.

With his usual incisive clarity, Thomas Sowell asks:

Since this is an era when many people are concerned about “fairness” and “social justice,” what is your “fair share” of what someone else has worked for?

It would be fascinating to hear a redistributionist’s attempt to answer the question.

Muslims of the Middle East, Far East, North Africa and anywhere else, your attention please!

Great good news – if you haven’t already heard it! Just get yourself into Britain and say you’re a ‘refugee’ and ask for ‘asylum’, and you will immediately be given money and a place to live; you can import a wife or several wives, and they’ll all be given ‘benefits’ including ‘child-support’; your children will be given a free education and all of you will have free medical treatment. When you feel nicely settled you can carry out your duty of jihad by demanding that Britain adopt sharia law, or, if you fancy martyrdom, by suicide-bombing trains and buses to kill some British infidels.

From the Mail Online:

Migrant gangs [of Muslims – JB] in Calais are targeting British holidaymakers in terrifying ‘highway robberies’.

Would-be illegal immigrants are forming human roadblocks to force motorists passing through the French port town to stop. Travellers are then robbed at knifepoint by the migrants, who are desperate for funds to help them sneak into the UK. …

Since the closure of the Red Cross refugee centre at Sangatte in 2002, would-be migrants have been sleeping rough in and around Calais while they attempt to sneak on board cross-Channel trains and ferries. There are currently around 2,000, many living in a squalid camp known as the Jungle, which the French government has said will not be cleared away until next year.

In April immigration minister Eric Besson vowed to bulldoze the litter-strewn shanty town … after admitting it had become a hotbed for people smugglers and criminal gangs. But he has now said the camp must remain in place until it can be dismantled ‘in a dignified manner’.

French politicians have blamed Britain for the return of migrant camps to Calais.

The mayor of Calais, Natacha Bouchart, said the lure of the UK’s ‘enormous’ state handouts to asylum-seekers was the reason why thousands of foreigners are using the French port as a staging point to get across the Channel.

Mrs Bouchart said the UK Government’s policies were ‘imposing’ thousand of migrants on the town, costing the local economy millions of pounds.

Barack Obama’s autobiographical book Dreams from My Father is a quietly self-vaunting ‘tell-all’ mixture of narrative, nostalgia, apparent confession, disguised complaint and unfocussed accusation. As the self-portrait of a young man it is fondly self-indulgent, allowing a few small warts – or perhaps one should say acne spots – to show, just enough to deflect accusations of self-flattery. It emerges from the narrative, rather than it is said, that the young Obama resented being black. He implies that someone must be to blame for his having to feel like that. The self-pity is kept, however, as subdued as the self-flattery.

The story wears a candid expression on its face, so to speak, but gives itself away by inevitably raising questions which beg for answers not given. For instance, and significantly, Obama does not say who paid him to work as a ‘community organizer’, or why. A man, an ‘organizer’, named Marty Kaufman phones him out of the blue, meets him at a coffee shop and offers him the undefined job for a rather low wage. What this man’s interest in the work might be is not explained, other than that he’s been vaguely idealistic ever since the student protest movement of the 1960s. One is left to assume that this fellow ‘in a rumpled suit’, although he shows no signs of having disposable funds of his own, is some sort of selfless philanthropist nobly intent on alleviating difficult living conditions for the poor black tenants of a crumbling building in a seedy area of Chicago.

Now the truth is out. David Horowitz is providing the answer.

Since taking office Barack Obama, who promised during his campaign to create a moderate, inclusive administration, has engaged in actions that have created division and fear because they are meant to radically change America, not improve on what has always worked.  As a result, David Horowitz writes in Barack Obama’s Rules for Revolution: The Alinsky Model, “Many Americans have gone from hopefulness, through unease, to a state of alarm as the President shows a radical side only partly visible during his campaign.”

Barack Obama’s Rules for Revolution: The Alinsky Model provides an understanding of the roots of the current administration’s effort to subject America to a wholesale transformation by looking at the work of one of the President’s heroes — radical Chicago “community organizer” Saul Alinsky.  The guru of Sixties radicals, Alinsky urged his followers to be flexible and opportunistic and say anything to get power, which they can then use to destroy the existing society and its economic system.  Alinsky died in 1972, but left behind an organization in Chicago dedicated to his malicious ideas.  This team hired Barack Obama in 1986 when he was 23 and taught him how to organize for radical transformation.

In this insightful new booklet, Horowitz discusses Alinsky’s work in the 60s — and his advice to radicals to seize any weapon to advance their cause.  This became the philosophy of Alinskyite organizations such as ACORN and to Alinsky disciple Van Jones, a self described “communist” who served as President Obama’s “Green Czar” until he was forced to resign when his extremist ideas became public.

After his analysis of Saul Alinsky, Horowitz points out what the grandfather of “social organizing” created “is not salvation but chaos.” Then he asks the crucial question: “And presidential disciples of Alinsky, what will they create?”

Obama’s puerile, sentimental, ignorant foreign policy weakens and potentially endangers America, but more immediate calamity threatens from his domestic policies.

At the Commentary-contentions website, Peter Wehner  writes:

In a front-page Washington Post story today — headlined “Angry Congress lashes out at Obama” — we read this:

Growing discontent over the economy and frustration with efforts to speed its recovery boiled over Thursday on Capitol Hill in a wave of criticism and outright anger directed at the Obama administration. Episodes in both houses of Congress exposed the raw nerves of lawmakers flooded with stories of unemployment and economic hardship back home.

What is happening is that the myriad troubling signs for Obama over the past several months — crumbling support for his health-care efforts, a huge loss of support among independents, a dispirited base, an energized opposition, growing approval of the GOP’s agenda — are now manifesting themselves in election results (see the Virginia and New Jersey governors’ races) and unhappiness among Democrats on Capitol Hill. …

Obama’s signature domestic initiative, health care, is deeply unpopular. Unemployment is above 10 percent and won’t be dropping significantly any time soon. The issues the country is focused on are ones that play to the advantage of the GOP. The nation is becoming more conservative in the Age of Obama. His party is increasingly nervous and restive as its members see what awaits them in 2010. … It wasn’t supposed to be this hard for liberalism’s “sort of God,” was it?

And this is only the beginning. As long as Obama is in power, things can only get worse.  If Wehner is right that Obama is making the nation more conservative in reaction, then the rescue posse might get here in the nick of time. But a terrible lot of – maybe irreparable – damage will have been done by then.

From The Heritage Foundation:

A report released Friday by the non-partisan and independent Centers for Medicare and Medicaid Services, the agency in charge of running Medicare and Medicaid, blows the lid off of every one of Obama’s claims. All of the following quotes are from the report itself:

Health Care Costs Increase: “In aggregate, we estimate that for calendar years 2010 through 2019 [national health expenditures (NHE)] would increase by $289 billion, or 0.8 percent, over the updates baseline projection that was released on June 29, 2009.” In other words, Obamacare bends the cost curve up, not down.

Millions Lose Existing Private Coverage: “However, a number of workers who currently have employer coverage would likely become enrolled in the expanded Medicaid program or receive subsidized coverage through the Exchange. For example, some smaller employers would be inclined to terminate their existing coverage, and companies with low average salaries might find it to their – and their employees’ – advantage to end their plans … We estimate that such actions would collectively reduce the number of people with employer-sponsored health coverage by about 12 million.” In other words, Obamacare will cause millions of Americans to lose their existing private coverage.

Millions Pay Fines Yet Remain Uncovered: “18 million are estimated to choose not to be insured and to pay the penalty associated with the individual mandate. For the most part, these would be individuals with relatively low health care expenses for whom the individual or family insurance premium would be significantly in excess of the penalty and their anticipated health benefit value.” In other words, 18 million Americans will either face jail time or be forced to pay a new tax they will receive no benefit from.

Millions Lose Medicare Advantage: “Section 1161 of Division B of H.R. 3962 would set Medicare Advantage capitation benchmarks … We estimate that in 2014 when the MA provisions would be fully phased in, enrollment in MA plans would decreased by 64 percent (from its projected level of 13.2 million under current law to 4.7 million under the proposal).” In other words, 8.5 million seniors who currently get such services as coor dinated care for chronic conditions, routine eye and hearing examinations, and preventive-care services would lose their existing private coverage.

Millions Placed on Welfare: “Of the additional 34 million who are estimated to be insured in 2019 as a result of H.R. 3962, about three-fifths (21 million) would receive Medicaid coverage due to the expansion of eligibility to those adults under 150 percent of the FPL.” In other words, more than half the people who gain health insurance will receive it through the welfare program Medicaid. 

Seniors Access to Care Jeopardized: “H.R. 3962 would introduce permanent annual productivity adjustments to price updates for institutional providers… Over time, a sustained reduction in payment updates, based on productivity expectations that are difficult to attain, would cause Medicare payment rates to grow more slowly than and in a way that was unrelated to, the providers’ costs of furnishing services to beneficiaries. Thus, providers for whom Medicare constitutes a substantive portion of their business could find it difficult to remain profitable and might end their participation in the program (possibly jeopardizing access to care for beneficiaries).” In other words, the Medicare cuts in the House bill are so out of touch with reality that hospitals currently serving Medicare patients might be forced to stop doing so. Thus making it much more difficult for seniors to get health care.

Poor’s Access Problems Exacerbated: “In practice, supply constraints might interfere with providing the services by the additional 34 million insured persons. …providers might tend to accept more patients who have private insurance (with relatively attractive payment rates) and fewer Medicaid patients, exacerbating existing access problems for the latter group.” In other words, those 21 million people who are gaining health insurance through Medicaid are going to have a very tough time finding a doctor who will treat them.

…  in Western democracies.

From the Heritage Foundation:

Last month when the White House released its visitor log for the first six months of the Obama presidency, one name appeared far more often than any other: Service Employee International Union (SEIU) President Andrew Stern. Stern has every right to expect to be welcome in the Obama White House. He has repeatedly bragged about the fact that under his leadership, the SEIU spent $60.7 million to elect Barack Obama president. And what is Stern buying with his $60.7 million besides White House tours? Ever expanding federal government programs and state government bailouts which are rapidly bankrupting our country.

Unlike his predecessor, John Sweeney, who came up the ranks after starting with the International Ladies Garment Workers Union, Stern entered the labor movement when the SEIU organized his shop when he was working as a welfare case worker for the State of Pennsylvania. Stern’s public sector entrance into labor is by no means an anomaly. In fact, for the first time ever in American history, preliminary estimates of union membership for 2009 show that most union members now work for either the local, state, or federal government.

Heritage scholar James Sherk has the numbers: “The overall unionization rate between January and September 2009 stood at 12.4%, unchanged from last year. However, this difference masks a large difference between unions in the private and public sectors. Union membership has fallen to 7.3% of private sector workers – the lowest rate since Roosevelt signed the National Labor Relations Act into law. But it is a completely different story in the public sector: 37.6% of government employees belong to unions, up almost a percentage point since last year. Those 7.9 million unionized government employees are 51% of all union members nationwide.”

The days when “union member” meant an American working in a steel plant, or coal mine, or auto factory are gone. Today, unions are dependent on government, not the private sector, for their livelihood. Therefore, unions like the SEIU have little interest in private sector job growth. Private sector jobs don’t help fund $60.7 million political campaigns. But government jobs do. The change in incentives has been devastating to American taxpayers. Manhattan Institute senior fellow Steven Malanga explains why:

In the private sector … employers who are too generous with pay and benefits will be punished. In the public sector, however, more union members means more voters. And more voters means more dollars for political campaigns to elect sympathetic politicians who will enact higher taxes to foot the bill for the upward arc of government spending on workers.