In praise of the rich 263

Communism:  “From each according to his ability, to each according to his need”.  A central authority with a monopoly of force – which is to say the state – must gather and distribute resources. Condition of the nation: serfdom and poverty.   

Capitalism: “From each according to his need, to each according to his ability”. You decide what you need and work for it by providing others with what they’ll buy. The amount you get will be the measure of your ability. Condition of the nation: freedom and prosperity.

 

Collectivism: Economic equality achieved at the cost of liberty. 

Individualism: The only desirable equality is an equality of liberty. My liberty should be limited by nothing except everyone else’s. 

 

Walter Williams writes at Front Page:

Thomas Edison invented the incandescent bulb, the phonograph, the DC motor and other items in everyday use and became wealthy by doing so. Thomas Watson founded IBM and became rich through his company’s contribution to the computation revolution. Lloyd Conover, while in the employ of Pfizer, created the antibiotic tetracycline. Though Edison, Watson, Conover and Pfizer became wealthy, whatever wealth they received pales in comparison with the extraordinary benefits received by ordinary people. Billions of people benefited from safe and efficient lighting. Billions more were the ultimate beneficiaries of the computer, and untold billions benefited from healthier lives gained from access to tetracycline.

President Barack Obama, in stoking up class warfare, said, “I do think at a certain point you’ve made enough money.” This is lunacy. Andrew Carnegie’s steel empire produced the raw materials that built the physical infrastructure of the United States. Bill Gates co-founded Microsoft and produced software products that aided the computer revolution. But Carnegie had amassed quite a fortune long before he built Carnegie Steel Co., and Gates had quite a fortune by 1990. Had they the mind of our president, we would have lost much of their contributions, because they had already “made enough money.”

Class warfare thrives on ignorance about the sources of income. Listening to some of the talk about income differences, one would think that there’s a pile of money meant to be shared equally among Americans. Rich people got to the pile first and greedily took an unfair share. Justice requires that they “give back.” Or, some people talk about unequal income distribution as if there were a dealer of dollars. The reason some people have millions or billions of dollars while others have very few is the dollar dealer is a racist, sexist, a multinationalist or just plain mean. Economic justice requires a re-dealing of the dollars, income redistribution or spreading the wealth, where the ill-gotten gains of the few are returned to their rightful owners.

In a free society, for the most part, people with high incomes have demonstrated extraordinary ability to produce valuable services for — and therefore please — their fellow man.

People voluntarily took money out of their pockets to purchase the products of Gates, Pfizer or IBM. High incomes reflect the democracy of the marketplace. The reason Gates is very wealthy is millions upon millions of people voluntarily reached into their pockets and handed over $300 or $400 for a Microsoft product. Those who think he has too much money are really registering disagreement with decisions made by millions of their fellow men.

In a free society, in a significant way income inequality reflects differences in productive capacity, namely one’s ability to please his fellow man. …

Stubborn ignorance sees capitalism as benefiting only the rich, but the evidence refutes that. The rich have always been able to afford entertainment; it was the development and marketing of radio and television that made entertainment accessible to the common man. The rich have never had the drudgery of washing and ironing clothing, beating out carpets or waxing floors. The mass production of washing machines, wash-and-wear clothing, vacuum cleaners and no-wax floors spared the common man this drudgery. At one time, only the rich could afford automobiles, telephones and computers. Now all but a small percentage of Americans enjoy these goods.

In a free country, the rich are not rich because the poor are poor;  nor are the poor poor because the rich are rich.

Those are richest who serve others best. (In general, that is. There are of course exceptions, like George Soros.)

They create wealth.

So that, among free countries, where the rich are richest the poor are least poor.

As in the United States of America.

Wrong state of mind 76

Why do economic achievers, like George Soros for instance, who made their splendid fortunes because they had the freedom to do so, want to close that freedom to others? Or to put it another way, why do some who have benefited spectacularly from capitalism then go and vote for socialism and promote anti-free market causes?

We don’t know the answer to that question. There are a number of possible reasons, one of them being that a person might be very good at making money and yet be quite stupid.

Here’s an example of a German magnate who believes that individuals should not be allowed to make decisions for themselves, that bureaucrats know what is best for everybody, and the state should control and distribute the resources of the nation. He speaks for hundreds of millions of Europeans, which is why many European countries – Greece is a case in point – are facing economic ruin.

The story is told in Investor’s Business Daily. We emphatically agree with the editorial opinion.

An ultrawealthy German criticizes private charity, saying it takes “the place of the state.” More disturbing than the statement itself is the sad fact that many in the Western world agree with him.

Der Spiegel reported last week that “Germany’s super-rich have rejected” an invitation to join Bill Gates and Warren Buffett’s “Giving Pledge,” in which the wealthy promise to give away a majority of their fortunes “either during their lifetime or after their death.” Wealthy Germans, Spiegel says, believe “donations shouldn’t replace duties that would be better carried out by the state.” Among them is a bitter Peter Kramer.

“I find the U.S. initiative highly problematic,” Kramer, a Hamburg-based shipping magnate, said in a Spiegel interview. “You can write donations off in your taxes to a large degree in the U.S.A. So the rich make a choice: Would I rather donate or pay taxes? The donors are taking the place of the state. That’s unacceptable.

What is apparently acceptable to these wealthy Germans is the unlimited authority of the state and the prerogative it’s given itself to restrict people’s choices.

“It is all just a bad transfer of power from the state to billionaires,” Kramer continues. … “What legitimacy do these people have to decide where massive sums of money will flow?”

Is it legitimate for the state to demand wealth from some so it can give it to others? …

Money handed out by the state is taken from productive citizens, then distributed through the corrupt and inefficient system of politics … It’s a system based on coercion.

Even better than private charity is private enterprise. Markets meet needs by creating wealth and growing economies. No system can match capitalism in its ability to bring prosperity to so many.

While there’s a place for charity, it’s merely a patch and should be used with great care. There’s no place, though, for forced redistribution. What’s chilling is that so many still believe there is.

Posted under Commentary, Conservatism, Economics, Europe, Germany, liberty, Socialism, United States by Jillian Becker on Tuesday, August 17, 2010

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Health derangement syndrome 401

If starving isn’t unhealthy, what does the word ‘unhealthy’ mean?

There are powerful persons who believe with fanatical conviction that (other) people should starve to death rather than eat something ‘unhealthy’.

As a result, millions are deprived of food.

Even Bill Gates protests about this state of affairs. We say ‘even Bill Gates’, because he usually goes along with the thinking of those who believe in government control of individual lives, aka socialists. (See in the quotation below a list of lefty organizations he supports.)  He doesn’t seem to realize that he is one of the greatest benefactors of mankind ever, through supplying billions of people with something they want: the products of Microsoft, which are put to trillions of productive uses throughout the world. Doing so –  as a model capitalist – has rightfully made him rich, and he has no moral obligation to redistribute his wealth in a secondary and much feebler attempt to do good. But he apparently thinks there is, perhaps out of some unwarranted feeling of guilt.

Whatever prompts him, he has undertaken to alleviate the chronic hunger of whole populations in Africa. And he has run into an impediment: the adoption, by stupid African rulers, of two Western ‘progressive’ notions: that people must be made to eat healthy food, and that genetically modified foods are unhealthy.

This article is from FrontPageMag:

The left-of-center philanthropist says starving Africans should be allowed to eat genetically modified foods.

Bill Gates took on the Famine Lobby while addressing a forum on the world food supply in Iowa. Speaking at the World Food Prize Symposium in Des Moines, Gates took aim at the chorus of environmental leftists and organic food advocates who believe Africans should starve rather than eat genetically modified (GM) foods. “Some voices are instantly hostile to any emphasis on productivity. They act as if there is no emergency, even though in the poorest, hungriest places on earth, population is growing faster than productivity,” he said.

The opposition is significant, because Gates is left-of-center himself. The Bill and Melinda Gates Foundation, with assets of $29 billion as of 2005, has focused on the “population” side of the “problem” in the past, sending billions of dollars in grants to such pro-abortion groups as Planned Parenthood; Population Action International, Population Services International, the Alan Guttmacher Institute, and the Population Resource Center. Gates has also financed such organizations as the [Soros supported] Tides Center, the Tides Foundation, the National Council of La Raza, and has supported a gun control initiative in Washington state.

However, Gates announced he will issue a $120 million grant to increase food productivity in sub-Saharan Africa through the planting of genetically modified seeds. In Des Moines, Gates cited a Stanford study from 2008 concluding African farmers will lose one-quarter of their productivity within 20 years if they continue to plant the same strains of corn. However, “If the seeds perform well, African farmers can expect to produce two-million more tons of maize in a year of moderate drought.” Radio Iowa reports Gates has “committed more than a billion dollars” in all.

In proposing this initiative, he is standing up to the Green Left, which has long favored environmental “purity” [over] human well-being. Greenpeace cooked up the term “Frankenfood” to demonize genetically modified foods a decade ago. …

Dire predictions aside, GM foods not only potentially increase food production but have replaced the need to spray crops with chemical pesticides, which sickened or killed Africans. Those farmers who spray can now streamline the process, saving them much time and money. The modified crops are more resistant to cold, drought, herbicides, pests, and disease. They also supplied nutritional gaps in the consumption patterns of the poor. For instance, so-called “golden rice” spliced Vitamin A into rice, which could stave off blindness among the world’s poor who eat little more than rice. …

Greenpeace has long claimed GM foods increase allergies; however, the World Health Organization – hardly a corporate, capitalist shill – concluded, “No allergic effects have been found relative to GM foods currently on the market.” Although six EU nations ban GM foods, Jaap Satter, a senior policy adviser at the Dutch Agriculture Ministry, has said, “You cannot say anymore that there is a scientific reason to be against genetic modification.” The National Research Council summed up the situation: “no conceptual distinction exists between generic modification of plants and microorganisms by classical methods or by molecular techniques that modify DNA and transfer genes.”

Some environmentalists seem concerned the foods will be too successful at feeding the poor. Al Gore has worried, “The most lasting impact of biotechnology on the food supply may come not from something going wrong, but from all going right…we’re far more likely to accidentally drown ourselves in a sea of excess grain.” Given the environmentalist movement’s hatred of population – best exemplified by Obama Science Czar John Holdren’s justification of compulsory abortion in the United States – this may be the real locus of their disdain.

So deep is the Green Left’s hatred of GM foods that even an organization Gates founded has given genetically modified food a chilly reception. “The Alliance for a Green Revolution in Africa was established by the Bill and Melinda Gates Foundation” and the Rockefeller Foundation in 2006 “with the objective of improving agriculture in Africa.” However, its leader, former UN secretary-general Kofi Annan, vowed in 2007: “We in the alliance will not incorporate GMOs [genetically modified organisms] in our programmes. We shall work with farmers using traditional seeds.”

The scare tactics and shunning of American and Euro-socialist leftists is theoretical and faulty – but their mania has reaped a deadly harvest among the world’s most vulnerable people.

In 2002, Zambian President Levy Mwanawasa refused to accept tons of U.S. food aid for his starving nation, because the aid contained genetically modified food (maize, specifically). “Simply because my people are hungry, that is no justification to give them poison, to give them food that is intrinsically dangerous to their health,” he said. The deluded president continued, “I will not allow Zambians to be turned into guinea pigs no matter the levels of hunger in the country.”

The levels of hunger were staggering. Nearly one-third of Zambia’s 10 million people faced famine. Some 14 million Africans faced starvation region-wide. Nonetheless, the president privately upbraided officials in the UN World Food Programme for distributing GM foods, which fed 125,000 people in five camps. The WFP reported some impoverished Zambians “resorted to eating little more than twigs and ash from the fire in a brown soupy concoction.” Desperate, rural villagers broke into the palace where the stockpiles were rotting and stole 2,000 bags of maize.

In response, the World Summit on Sustainable Development, held in Johannesburg in 2002, signed a “statement of solidarity” with Zambia. Charlie Kronick of Greenpeace went further, alleging the humanitarian aid constituted a sick capitalist ploy. “There is a constant drip of pressure from the U.S. government and biotech industry to make sure Africa is softened up for GM,” he theorized. “Europe is closed to them and they need a market for it.”

Others offered more than ideological support. Zimbabwe joined the boycott, preventing GM grain’s importation. Angola followed suit in 2004. Lesotho and Mozambique milled all such grain so it would not be planted and “infect” other crops.

Not all were limited to the EU and Africa. In 2004, Venezuelan strongman Hugo Chavez passed “possibly…the most sweeping restrictions on transgenic crops in the western hemisphere.”

At home, the opposition has been remarkably well-heeled. National Review’s Deroy Murdock found:

In 2001, the 30 leading anti-biotech groups…spent $341.4 million, including Greenpeace USA’s expenditure of $23,748,737, Environmental Defense’s $38,794,150 and the Natural Resources Defense Council’s $41,625,882. Between 1996 and 2001, this crusade’s lavish underwriters included the John D. and Catherine T. MacArthur Foundation ($11,906,500), the Ford Foundation ($39,978,020) and the Pew Charitable Trusts ($130,996,900).

It also included a large portion of the organic food market. Somehow, this story of an industry trying to spike a competitor did not make MSNBC or the pages of Mother Jones.

Whatever the dangers, the prohibition of GM foods is a moral issue. As Velasio De Paolis of the Pontifical Urban University has said, it is “easy to say no to GM food if your stomach is full.” However misled he is on other issues, Bill Gates deserves credit for standing up against the Green Left on this point.

But on another, closely related, issue he has so far failed to take the right stand:

The question remains, will he do so on the issue that seems closest to his heart: the eradication of malaria in sub-Saharan Africa? In a recent speech on the topic Gates admitted, “two tools helped to bring the death rate down: One was killing the mosquitoes with DDT.” Before Rachel Carson’s crusade – based entirely on scientific theories that never panned out – DDT use had nearly eradicated malaria. Now, according to one report, “there are approximately 350 to 500 millions cases of malaria, killing close to one million people” annually. “Every day, malaria takes the lives of 2,000 children in Africa alone.” Yet instead of backing DDT use, Gates has sought to find a vaccine.

If Gates truly wants to put the well-being of Africans above political correctness, DDT is the best place to start.

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