Author: David Housholder

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22
Jun, 2017

How Statism Keeps Poor Countries Poor

 

Acton University Talk by Stephen L.S. Smith of Hope College.

STATISM is an economic system (also called State Capitalism) which allows a private sector but in which many key industries are owned/controlled by the government.

It lies somewhere between communism and European-style social democracy on the economic spectrum.

Smith says we need a “field guide” since most statism is invisible to the casual observer.
So he took us to THAILAND via a slide show.
  • Banks: Easy to use, modern banking all over the place.
  • You need to buy a SIM card for your phone from “AIS.”
  • Transportation (air and rail) is top notch.
  • You have to leave Thailand (flying to the US) at 4am (because of the time change/dateline), and you stay in a Novotel by the airport for a few hours of sleep first.
But in fact….
  • The bank I used (TMB), upon some research is the Thai Military Bank. The army runs it. At a loss. The Siam Commercial bank is owned by the ministry of finance.
  • AIS (SIM card) is subcontracted from the Thai government to the Singapore (!) government, which sells the chip to you.
  • Both the state owned railways and airlines (each) lose over $1 million a day. Many new airliners are mothballed (over capacity). Unused capital (see the new ghost cities of China) is typical in a statist system.
  • The Novotel is owned by the government and just operated by Novotel.
So what?
  • Statism is the default system in the Global South. There are exceptions, but this seems to be the rule.
  • It is almost invisible at the street level, but has major consequences.
  • The government not only issues currency, but controls the flow of it–limiting investment which would compete with state businesses.
  • Very little revenue is left over (because government firms lose so much money) to lend to medium and small businesses. This leads to a growing black market with lots of informal street vendors. They don’t pay taxes which compounds the cycle; with a downward drag on the society.
  • Common in statist societies is weak rule of law and questionable property rights.
  • Insiders and elites benefit, which opens up patronage politics.
  • The highly educated urbanites benefit from statism because of the need for them running these bureaucratic businesses, which put a premium on education and connections.
  • Neglect of core state functions (governments are limited in capacity and spend their time running industries) such as rule of law, civil justice, non-corrupt police, property rights, basic education, and rural infrastructure.
  • State banking skews prices and and natural interest levels. Interest rates are set at a below-market level, discouraging saving. Most people want to save short term and pay off loans long term (People want fast access to their savings). Setting interest rates at an artificially low level creates tension in this natural supply/demand situation.
  • Lending is directed to favored insiders with big projects.
  • Capital is wasted (ghost cities of China where no one lives) because natural market forces are not the primary driving force of construction. State-owned firms serve political ends first.

  • Developing countries have more frequent bank failures, even with the “security” of state ownership.
  • Some countries have it way worse than Thailand. Pakistan and Egypt may be the worst. The Petrobas scandal in Brazil brought down the government.

 

21
Jun, 2017

Hamilton and Jefferson–Beyond the Musical

 

No one can get tickets to the Hamilton musical, but we can get the book and learn how their relationship affects us…

Each was a colossus whose footsteps color our daily lives…

Lecture by John Pinheiro from Aquinas College given at #Acton2017.

 

We can look at Alexander Hamilton and Thomas Jefferson through two lenses:
  • Lived Experience. How their lives and upbringing affected their philosophy.
  • Philosophy and Principle. Whom they were reading and by whom they were influenced.
LIVED EXPERIENCE

JEFFERSON: Born into a planter aristocracy. Mother’s family (the Randolphs) were stratospherically rich and remained his main patrons throughout his career. Father was an educated aristocrat.

Jefferson had a solid classical education and even spoke 8 or 9 Native American languages. In 1775 he was one of the wealthiest men in America and had 200 slaves.

HAMILTON: Very broken home in the Caribbean. Worked hard as a clerk and got a scholarship to King’s (Columbia) in NYC. John Adams called him the “bastard brat.” Saw the bad side of people and slavery. Felt that we needed order and control to curb this.

PHILOSOPHY and INFLUENCERS

JEFFERSON: The French Enlightenment. People naturally good unless corrupted by commerce. Yeoman farmers are the key to freedom because they don’t have employers. Thus, have a small and weak central government and an agrarian paradise. Disperse the population westward. Emmerich de Vattel’s The Law of Nations influenced Jefferson–how sovereign states can participate in a union. Jefferson always used plural verbs and pronouns with “United States.” The Physiocrats (France) also influenced Jefferson. They stressed agriculture and coined the term “laissez-faire.” Land is the source of all wealth.

HAMILTON: The Scots Enlightenment. Especially Adam Smith. Looked not to France, but rather the British Empire. Always accused of being a royalist. Capital and division of labor, not land, are the source of wealth. Bernard Mandeville wrote the Fable of the Bees, which influenced Hamilton. Where do you look for a financial model? London! Protective tariffs. Centralized bank. Financed national debt a good thing. Hard work and ambition, not inheritance, is the path to power and wealth.

Conclusion

Jefferson and Hamilton continue to be the twin pillars of American social, political and economic thought. Jefferson’s party won most of the elections for the next couple of generations. His expansionist/agrarian vision led to the purchase of Louisiana. Enhanced by Jackson and Polk who steamrolled the country to the Pacific with “Manifest Destiny.” Homesteading and the checker boarding the Midwest USA are monuments to this thinking.

Hamilton won the economic battle however, with New York being a second London in terms of global finance, and the industrial north beat the agrarian south in the Civil War. Lincoln was a Hamiltonian and used his principles to further unite and solidify central authority.

Both believed that a virtuous society is necessary to maintain a republic.

 

21
Jun, 2017

How Far Does Religious Freedom Go?

 

According to the First Amendment, do we Americans have the right to freedom of worship? Or something more: freedom of conscience and freedom to ACT upon that conscience…..

Sam Gregg, Director of Research at the Acton Institute in Grand Rapids, kicked off the 2017 Acton University with a plenary talk about religious freedom and truth.

Some of his main points:

  • The agenda of secularists is to soften freedom of religion into “freedom of worship.” In other words, you can praise God behind closed doors of the church, but don’t bring this into public life. Full freedom of religion is:
    • Liberty to search for and teach the full truth
    • Liberty to act according to this truth
  • “Power corrupts and power point corrupts absolutely.” Thus, no power point. But hey, he only had one day notice as the main speaker was not able to be here because of weather delays.
  • Religion/Truth/Freedom is being replaced with Caesar/Lies/Slavery
  • “Progressive theologians who read way too much Karl Rahner….”
  • In 2016, 96,000 Christians were killed (!) for their faith. One every six minutes. We must remind people of this persecution, which for whatever reason is not covered by the mainstream media.
  • Secularists are trying to marginalize and stigmatize our teaching.
  • Why should we accept that happiness = hedonism? Why should we accept a dictatorship of relativism?
  • Be careful when you take government funds. It comes with a leash. Tell Pharaoh to keep his money.
  • We must always remember that there is such a thing as truth and religious liberty without a search for truth is not helpful. Religious freedom means liberty to search for the truth free of coercion from the government in any direction.
  • Without freedom from government in searching for truth, we cannot have free assent. Without free assent we cannot have true faith.
  • Martyrdom (not always deadly–sometimes just social) must become a real option again.

My thoughts:

  • Gregg seems to be good at playing a “Home Game.” I would be interested in hearing his “Away Game” when he’s not among like-minded people.
  • “Thomas Jefferson was not a Christian.” I beg to differ. Jefferson was the biggest proponent of Natural Law on earth at the time, and a great admirer of Aquinas. Of course, he was not a conservative Evangelical. but he insisted on grounding our natural rights in the “Creator” as he penned the Declaration. If you aren’t conflicted about Jefferson, you aren’t paying attention. Was he a Christian? Yes and no.
  • “Muslims, Jews and Christians have a different concept of God.” Yes and no. Sure their view of God is different but there is only one God; only one God of Abraham, and many Christians waffle on this monotheism. Not sure if Gregg is waffling or not. There’s only one mailbox with “God” on it. One Creator, one creation. False gods? How does that square with one God? Do the false gods exist? Sure, our VIEW of God varies. But I don’t believe that God is all that impressed with our constructs, which theologians tend to glorify.

 

7
Jun, 2017

Bob Dylan Driven by Melville and Homer?

Bob Dylan has been driven by serious literature? Really?

As an American literature fan, I was thrilled by his recap of Melville’s Moby Dick. As a classics and “dead language” nut, his overview of the trials of Odysseus brought me to tears. As an anti-imperialism activist, his raw look at All Quiet on the Western Front gave me depth insight into Dylan’s lyrics.

The polar opposite of a brainless celebrity.

Well done, Mr. Dylan, well done.

“Listen to the songs….however songs are listened to these days…”

6
Jun, 2017

NATO Expands…Again

 

Great.
Just great.

We continue to gobble up former East Bloc nations; incorporating them into NATO.

Montenegro (with the double-eagle flag) is as of yesterday the newest member of the Western military alliance which was formed after World War 2 to contain the expansionist Soviet Union.

Used to be part of Stalinist/Communist Yugoslavia under strongman ruler Tito.

Go back to the fall of the Berlin Wall in 1989. Before that, Western Europe was protected by NATO and the Americans, and Eastern Europe was occupied by the Soviet Union and organized into the Warsaw Pact. These two forces faced off along what Churchill called “The Iron Curtain.”

When Germany was reunified, we promised Russia that in return for their allowing the new Germany (both East and West) to be a part of NATO, we would not expand the alliance to former Warsaw Pact nations, because that would remove the buffer on which Russia relies, geopolitically, for security. Unlike the US, they don’t have oceans on both sides and have been brutally invaded twice (Napoleon and Hitler) costing millions of Russian lives.

Well, we lied.

Now virtually all the former communist nations (Russia’s buffer states) have come into the American military orbit.

So foolish.

Russia and the US could be the best of allies. We both want the same things:

-To curtail Islamic extremism.

-To explore space together (we are the “space superpowers”)

-To keep our vast nuclear arsenals from getting into the wrong hands.

-For free trade giving us access to each other’s resources.

For whatever reason, insecure nations (like the US) don’t seem to be able to function without an enemy. A bogeyman.

And for that matter, NATO is clearly obsolete. Since about 1990 when the Soviet Union (the whole point of NATO) disintegrated.

“But we need NATO to fight terror together.”

Nope. Our mutual NATO interventionism in the Middle East has given us ZERO results in several decades of military meddling. In fact, you can make an argument that 9-11 would never had happened without the NATO led crusade to topple Saddam Hussein, which ticked off many Saudis, who manned the planes which destroyed the world trade center.

NATO is just an excuse for our military industrial complex to sell more weapons to more countries–and make the world less safe by doing so.

And, the scary thing is that the mission statement of NATO is “An attack on one member is an attack on all.” Are you really wiling to commit our nation to war over….Montenegro….or Latvia?

 

6
Jun, 2017

Easy Fix for the Salton Sea

The Salton Sea is dying.

The result of an irrigation accident over 100 years ago, the Salton Sink (below sea level) started filling with water, and having no natural outlet, the water’s getting pretty stagnant, toxic, and just plain yucky.

But the fix is easy.
  1. Run a high-capacity aqueduct inbound from the Gulf of California which lies to the south. Control the flow level from a valve at the seashore. No need to pump–water runs downhill.
  2. Choose a water level for the Salton Sea and keep it there by varying the flow of the inbound water.
  3. Build a parallel siphon water pipeline going uphill to the Gulf of California. Thus, creating an outlet for the Salton Sea. Continuously pump water out into the world’s oceans.
  4. Over time, the salinity will match that of the Pacific Ocean. Over time, the outlet will dilute toxins and return the region to ecological health. If necessary, water leaving the Salton Sea for the Gulf of California could be treated at the Ocean shore before flowing out.
  5. Seafront property will be created, ready for development and recreation. Fish and birds will thrive once again.
31
May, 2017

Pope Invites Charismatics and Pentecostals to Celebrate in Rome

Pope Francis, whose closest colleagues in his homeland of Argentina may have been Alpha Course Anglican Charismatics, has invited Protestant Charismatics and Pentecostals to join him in Rome to celebrate the 50th anniversary of the Roman Catholic Charismatic renewal.

This weekend is Pentecost (see Acts 2 in the Bible). The celebration original outpouring of the Holy Spirit upon the infant Christian Church in Jerusalem 50 days after the Resurrection of Jesus.

Pope Francis will be hosting a huge gathering outdoors at the Circus Maximus on Saturday night.

Let’s see if he sings in tongues…..

Full story in the Catholic Herald: LINK

http://www.catholicherald.co.uk/news/2017/05/03/pope-plans-pentecost-celebrations-with-charismatics-and-pentecostals/

29
May, 2017

My Seven Secrets Book Made the Top 500

Was surprised to see my fourth book, The Seven Secrets of a Meaningful Life, on the top 500 list for self-help books.

Kinda like making the Fortune 500 in this field.

I will be doing a book signing at Hosanna! Lutheran Church in Lakeville, Minnesota, on Father’s Day weekend in just a few weeks (June 17-18 after each service) as long as supplies last.

You can find the church at: http://hosannalc.org

The website for my book is: http://sevensecretsbooks.com

You can see the whole list of 500 self help books at: https://websitefinder.wordpress.com/2017/05/27/500-motivational-and-self-improvement-books/

 

17
May, 2017

Get US Out of the Middle East

Do no harm.

A good guideline when you are thinking about intervening in the affairs of another country.

The truth is, there is a gigantic civil war going on in the Middle East, engulfing many nations.

Basically, it’s between Sunni and Shiite Muslims, although it seems none of our leaders see it this way. Islam split into Sunni and Shiite factions soon after Mohammed’s death, mostly because of the death of Ali. You can look that up on your own.

Many hotter fighting areas…

-Yemen

-Syria

-Internal Iraq violence

…can be framed in these “greater regional civil war” terms.

So who are these groups?

SHIITES: Led by Iran, Shiites make up a majority of the population in Iraq, Yemen, Hisbollah, and have a hold on power in Syria (whose leaders are backed by Russia).

SUNNIS: Let by Saudi Arabia, this gang includes ISIS, the wealthy smaller Gulf States, most Palestinians, Al Qaeda, and large minorities in Yemen and Iraq.

This fight has been going on for almost 1,400 (!) years. We Americans aren’t aware of it, don’t understand it, and our current foreign policy (since Bush II) has been to fight against both (!) sides.

Basically our bogeymen are ISIS/Al Qaeda (Sunnis) and Iran (Shiites). We are against both sides. Thus we blunder along, escalating and adding lethal US firepower to the centuries-old civil war by attacking both sides.

We try to get our “ally” Saudi Arabia to help us fight ISIS, which is never going to happen. Those are their brothers in faith; their allies against Iran in the big chess game for Middle East leadership. Remember, the 9/11 attackers were all Saudi Al Qaeda operatives. Saudi Arabia’s national interest is to block Iranian expansion by supporting Sunnis (wherever they are) as they fight Shiites. And we give them money and arms to do so.

In Iraq and Syria, on the other hand, we are (strangely enough) ALLIES with Iran. Iran props up the (Shiite) Iraqi government that emerged after we got rid of the Sunni leader, Saddam Hussein. ISIS (Sunnis) formed itself to push back on Shiite domination of Iraq.

I won’t even start on Syria. In order to fight ISIS there, we have to ally ourselves with….Assad and the Russians who are fighting ISIS.

As there are no good guys in this fight to be found, we continue to complicate and escalate the situation with every action we take over there. Often arming both sides.

It’s time to get out of the Middle East altogether. We can’t solve the Sunni/Shiite fight. “Do no harm” would be a better foreign policy in the region. Israel can take care of itself–no one has attacked them since 1973 (about the time they got nukes).

I love the words of Phil Robertson (Duck Dynasty) on the Middle East: “We need to get out of there–most of them are mean.”

Could not have said it better myself.

 

 

13
Jul, 2016

Copyright Law is Censorship

Someone tells you a joke.

You think it’s funny.

You repeat it to some people a week later?

Is this theft?

No.

Why not? Because spoken words are plentiful and abundant. There is no shortage of them.

Any shortage makes something valuable; and worth money. It’s all about the market.

All about supply and demand.

Pictures used to be valuable. Typed out words used to be valuable. Recorded music used to be valuable.

Why? They were difficult (and expensive) to reproduce. This made them scarce. Thus valuable. Supply and demand.

You wanted that new Pink Floyd LP in 1975 because there was no way to hear the music without buying the album. You did not have the means to stamp out “copy records” in your basement. And recording it to a reel-to-reel tape did not give you something that was handy to sell or give to others.

The market determines the value of things. Things that are plentiful (verbal jokes) are free. As is the air you breathe. Water is almost free.

Gold is scarce. Impossible to reproduce. Thus immensely valuable.

The internet is a gigantic copy machine. With mass use of social media, WordPress, and blogging, you can copy a song, a picture, or an essay with the click (or maybe two clicks) of a button.

Thus these things are no longer, by the laws of economics, valuable or expensive.

But wait! Artists want to maintain what they had before the internet; total control of the means of production. Their business partners owned the printing presses, the record stamping machines, and the ability to copy photos. The supply was naturally limited and the price was slightly steep–accordingly.

Within a few years, you will be able to print solid objects at home, and print a high quality book for less than a dollar’s cost in materials. This is good news, not bad news. If we could do the same for food and clothing, poverty would disappear.

Artists and writers got used to this. And feel entitled to be able to make a living from their creativity just as they used to. Even if their goods are no longer structurally scarce (they can only be made scarce by coercion and control).

Sorry.

The economics of creativity have changed. Structurally speaking, creative goods are rarely valuable anymore–most of them are approaching zero economic market price.

The only way to preserve the old way of making a living is to impose antiquated copyright mentality (based on a time when content reproduction was expensive and the prices of such goods was naturally high) with the government as a partner. The government, of course, has the monopoly authority to lock people up in iron cages and/or confiscate their wealth. Coercion.

Thus copyright law is outdated and, since the coercive monopoly (government) can enforce at will, can be used as a club to censor and to silence free speech. Why? Technically, you are at risk of a $150,000 government fine if you repeat something in writing or other media that someone has shared on the internet. And how many of any of our ideas are not just really “passed-along” or “borrowed/upgraded” ideas from someone else?

Censorship. If the government doesn’t like what you are saying about them, they can (with today’s technology) find the “ancestry” of your idea and then ruin your finances and/or lock you up for copyright infringement.

But isn’t owning your “intellectual property” just like owning a car or a ranch–if someone uses it without paying you, isn’t that stealing? Of course not. It was only intellectual property in the past because it was valuable. Now the value is approaching (if not already at) zero. Simply a matter of supply and demand. If you owned a Ferrari and someone could, with a click of a button, point a smart phone at it and create one just like it without taking away your “copy”….. Well, then, it would be his or hers, not yours.

In fact, in “influence” terms, you ideas are more (intellectually, not economically) valuable the MORE they get copied for free. It’s even been turned into a measurement called “Klout.” If you’re smart, you WANT people to copy your stuff and pass it on!

The maintenance of an old model by coercion (fines and jail), when it is clearly outdated, is like subsidizing blacksmiths in every town. Or insisting that everyone gets a copy of Britannica rather than using Wikipedia (Or else you put them in prison).

But won’t aggragate creativity be hurt if people don’t get paid for producing art? Quite the contrary; there is a global explosion of creativity in writing, photography (see Instagram) and music. And the quality is going up; not down.

There is also an explosion of political/social expression and free speech. No longer do three TV networks control what we see and think.

It’s a great time to be alive. The world is rapidly unfolding and opening up with information available to everyone, and there is no evidence that the removal of all copyrights would slow it down in the least. All evidence points to the opposite.

Technology and the free market have brought us to the point where you don’t own your published creativity any more than you own that joke you passed on last month…

Copyright Censorship

PS: Everything on Life & Liberty is open source. Take it. Run with it. Improve it. Whatever. We are here to contribute to the “ideas culture” of the world….

Featured image by George Hodan. Public Domain.

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