Friday, September 9, 2011

The Mobius Strip of Politics: Sarah Palin’s Comments and Mine

Thanks to a Facebook post by Joshua Zader I read the New York Times article about Sarah Palin's recent speech on the pitfalls of our current political scene. I posted this in response.


I agree with Palin's points although the NYT writer is probably right. Many people won't consider her points because it's Palin who uttered them, not someone considered more "reputable" Eisenhower warned of the military-industrial complex but we're seeing a different threat: a government-crony business complex. We used to have just Fannie Mae and Freddie Mac as GSEs (Government Sponsored Enterprises). We saw how well that worked out. With the bailouts and other programs we have a growing collection of what amount to new GSEs which further isolates them from market competition (which should be driven by the wants and needs of individuals). As Rand said the political spectrum should be collectivism versus individualism not socialism versus fascism which are just two forms of collectivism. Today we have a political spectrum where the ends of the traditional political band have twisted, like a perverted Mobius strip, to join in an unholy alliance of government/business corporatism. The individual (and small business entrepreneurs) are left in the middle so to speak. Meanwhile Republican and Democrat voters argue with each other while our Ruling Class of politicians and their cronies laugh all the way to the bank and to the public trough. What a system! ;-)

Saturday, September 3, 2011

Economic Recovery Stalled After Obamacare Passed by James Sherk


James Sherk of the Heritage Foundation released a report which indicates that Economic Recovery Stalled After Obamacare Passed. The primary reasons are outlined below.

The law discourages employers from hiring in several ways:
§    Businesses with fewer than 50 workers have a strong incentive to maintain this size, which allows them to avoid the mandate to provide government-approved health coverage or face a penalty;
§    Businesses with more than 50 workers will see their costs for health coverage rise—they must purchase more expensive government-approved insurance or pay a penalty; and
§    Employers face considerable uncertainty about what constitutes qualifying health coverage and what it will cost. They also do not know what the health care market or their health care costs will look like in four years. This makes planning for the future difficult.

There is a telling graph showing how job growth per month flattened almost immediately after the passage of the bill. Admittedly that by itself doesn't prove that Obamacare was the culprit. I think Sherk's explanation makes sense though. In addition in discussions with my accounts almost every one has said their sales have improved but they're reluctant to start hiring again because of the uncertainty of what other regulations might be imposed on them. The known affects of Obamacare and the unknown future regulations make for a potent double whammy on job creation.

When I mention this to liberal friends here in Massachusetts their typical reaction is to shrug it off as if to say “Oh well, too bad. Those businessmen will think of something.” It’s as though they believe businesses have unlimited resources, an infinite capacity to bear any burden and an unfair advantage over us proles. In one sense this is true, for those crony capitalists who curry the favor of their government buddies to form an unholy alliance that protects the businesses from competition. But I don’t believe this applies to most businesses who don’t have an inroad to the Capitol and who have to find ways to absorb the constantly increasing financial and regulatory demands while still making a profit and declaring a dividend (if they’re a publicly held company) to their shareholders.

Wednesday, August 10, 2011

Sunday, August 7, 2011

If we are to survive the looming catastrophe, we need to face the truth - Janet Daley

It's refreshing to see someone finally talk about the cause of the financial crisis in Europe and the U.S. I've been saying something very similar: that the decades of welfare statism followed by Keynesian attempts to stimulate our way out of this mess have failed. As Daley says:

We have arrived at the endgame of what was an untenable doctrine: to pay for the kind of entitlements that populations have been led to expect by their politicians, the wealth-creating sector has to be taxed to a degree that makes it almost impossible for it to create the wealth that is needed to pay for the entitlements that populations have been led to expect, etc, etc.

Thursday, June 23, 2011

Jon Stewart versus Chris Wallace

I happened to find the link to Jon Stewart’s appearance on Fox’s Chris Wallace show and watched the entire interview. Before I start let me say that I’ve watched Stewart occasionally and enjoy his show. I even went to watch him when he performed at UConn several years ago and laughed at most of his material.


Overall I though Wallace did a fair job challenging Stewart’s claims about how biased Fox News is. When challenged Stewart hid behind the “I’m a comedian” shield. Although to be fair (and balanced) Stewart admitted “the bias of the mainstream media is toward sensationalism, conflict and laziness.” While I partly agree with his assessment I don’t agree with his denial that the mainstream news outlets don’t have their own political agenda. (See more below.)


NewsBusters’ analysis covers most of the points I would have made so instead of repeating them here I’ve provided the link.


http://newsbusters.org/blogs/noel-sheppard/2011/06/19/jon-stewart-tells-chris-wallace-fox-news-biased-rest-media-arent


And in the interest of being objective here is the link to PolitiFact, “a project of the St. Petersburg Times to help you find the truth in politics.” When you look closely they have their own bias but I’ve found some useful analyses. http://politifact.com. They take Stewart to task over his claims about Fox.


I find it interesting how much ire Fox stirs among the left. It’s almost as if they’re saying, “How dare you call yourselves fair and balanced? You’re biased!” By implication they’re saying that the mainstream news media outlets are paragons of objectivity. Stewart provides a prime example when Wallace presses him whether The New York Times is “pushing a liberal agenda.” His answer: “Do I think they're relentlessly activist? No. In a purely liberal partisan way? No, I don't.” For an analysis check out http://politifact.com/truth-o-meter/statements/2011/jun/20/jon-stewart/jon-stewart-says-those-who-watch-fox-news-are-most/. Their conclusion: “The way Stewart phrased the comment, it’s not enough to show a sliver of evidence that Fox News’ audience is ill-informed. The evidence needs to support the view that the data shows they are ‘consistently’ misinformed -- a term he used not once but three times. It’s simply not true that ‘every poll’ shows that result. So we rate his claim False.”

I’d say Stewart is too intelligent and informed to make a “mistake” like this. I think he threw this claim out to see if Wallace would challenge him on it. Unfortunately Wallace let this claim slide. I gather he was more interested in drawing Stewart out regarding the bias of other news media rather than getting bogged down in refuting Stewart’s claims about Fox.

Thursday, June 16, 2011

When Government Jumps the Shark and FannieGate by Walter Russell Mead



Mead’s insightful analyses explain how the housing mess imploded our economy and how various government “entitlement” programs evolved through various stages until they grow to be too large to dismantle and so charged that they become the “third rail” of politics (meaning, untouchable unless you want to be electrocuted). However, like the mainstream media Mead misses a moral point: the welfare state depends on the moral premise that people are “entitled” to benefits regardless of the consequences. I put the word entitled in quotes because I disagree with this designation. To me saying I’m entitled to something means I can morally demand that someone else provide it to me against their will.

Mead points out that most programs like Social Security start out small then grow to the point that many people depend on its continuation while being supported by a declining base. In addition a continent of special interests consisting of politicians, lobbyists, etc. sprouts to cater and foster this group. The scope and target population of these programs expands in order to increase the “customer base” (i.e., potential voters who will support the politicians who curry their favor) until they become an increasing burden on those who foot the bill.

Here is another way of putting it by using a different animal metaphor. After decades of welfare statism (and crony capitalism) the chickens are coming home to roost. Unless we acknowledge and deal with the trillions of dollars of unfunded liabilities which loom in the future I’m afraid that the unrest we’re currently seeing in Greece will turn into a feeding frenzy of unsupportable demands that spread to Europe and the U.S.

In any case I highly recommend reading Mead’s two essays.

Saturday, May 14, 2011

Reactions to Bin Laden's Demise

Of all of the various posts I read on the Bin Laden assassination this one by the Maverick Philosopher comes closest to my reaction. While I don't agree with his introductory paragraph about God and mercy I lean towards his sentiment on how he feels about OBL's demise.

Anyone who doesn't see that capital punishment is precisely what justice demands in certain circumstances is morally obtuse. I agree with Prager on that. I also agree with his statement this morning that pacifism is "immoral" though I would withhold his "by definition." (I've got a nice post on the illicit use of 'by definition.') And of course I agree that terrorists need to be hunted down and killed. But there should be no joy at the killing of any human being no matter who he is. It would be better to feel sad that we live in a world in which such extreme measures are necessary.

The administration of justice ought to be a dispassionate affair.

I know Bin Laden's death carries symbolic weight because of his role as planner of the September 11 attacks. For that reason I'm pleased, even happy, that he met his just deserts. The best way I can describe how I reacted to this would be if the local animal control officer found a rabid dog in my neighborhood and put it to sleep. I can't say that I felt the need to dance in the streets as some chose to do. (And, like others, I noticed that those shown on TV cavorting in celebration were too young to even remember the 9/11 attacks. As one wag said, maybe they were celebrating that "their" President finally did something right. Related to this I've read several stories that the decision to attack came about due to intense pressure from military and intelligence experts who were urging the hit before OBL was warned of his impending doom. We'll probably never know if this truly was the case.)

For another interesting perspective check out Jonathan Haidt’s Why We Celebrate a Killing.

For the last 50 years, many evolutionary biologists have told us that we are little different from other primates — we’re selfish creatures, able to act altruistically only when it will benefit our kin or our future selves. But in the last few years there’s been a growing recognition that humans, far more than other primates, were shaped by natural selection acting at two different levels simultaneously. There’s the lower level at which individuals compete relentlessly with other individuals within their own groups. This competition rewards selfishness.

But there’s also a higher level at which groups compete with other groups. This competition favors groups that can best come together and act as one. Only a few species have found a way to do this. Bees, ants and termites are the best examples. Their brains and bodies are specialized for working as a team to accomplish nearly miraculous feats of cooperation like hive construction and group defense.