Category Archives: Liberty

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8
Aug, 2017

Civil Asset Forfeiture: Liberty Vocabulary

 

One of the most flagrant attacks upon Liberty and the due process of law is the federal government’s program of civil asset forfeiture.  This program allows the police to confiscate people’s cash and other property if they “suspect” that it is linked to criminal (mostly drug) offenses – even if the subjects are never even charged with a crime!  And, of course, the police have incentives to seize people’s property, since they get to keep part of the booty.  Furthermore, when seizures occur, it is up to the owners of the property to file a lawsuit to get it back, and even then they have the burden of proof to show that it was not gained from a criminal offense.  Some of those programs were pared down under President Obama, but US Attorney General Sessions recently announced a policy that will remove many protections from these “policing for profit” programs.

Most people agree that cash and property gained by illegal means should be forfeited to the government or otherwise returned to the victims.  But that should only occur with two conditions:

  1. First, forfeiture could only occur after the subjects have been charged with and convicted of a criminal offense, with the same jury concluding that the property was obtained as a result of that illegality.
  2. Second, the forfeited property should go into the general fund, and not to any particular agency.

That will remove improper incentives.  Otherwise, at the very least, all of these forfeitures should be considered to be a violation of the Eighth Amendment to the Constitution, which prohibits the imposition of excessive fines.  Liberty demands that Attorney General Sessions rescind this new policy!  Fortunately, all of us have the opportunity to have our voices heard by contacting our members of Congress and demanding the passage of the FAIR Act to reform federal asset forfeiture laws and stop incentivizing law enforcement seizures without a criminal conviction!

-Judge Jim Gray

6
Aug, 2017

Is There Any Such Thing As Race?

 

Lecture (Acton University 2017) by Ismael Hernandez, executive director of the Freedom and Virtue Institute and author of Not Tragically Colored. 

Was very blessed to hear Hernandez’ talk, buy his book, and speak with him afterwards. I had a lot of questions…

One quote was my big takeaway:

If you don’t see my race, you don’t see me. If you see my race first, rather than my humanity, you also don’t see me.

Racism is very real; brutally real. But race, that on which racism is based, is not real.

Biologically speaking, there is no such thing as race. We are all part of the human race. “Race” is just an arbitrary set of traits based on superficial and subjective similarities and offering no objective boundaries.  It is often used by rulers to divide and conquer. Or to curry favor with factions by creating divisions and emphasizing them. Skin color is handy for that. Slavery cannot exist without the sword of government protecting it. If Caesar does not back the slaveholders with iron, the slaves run away and never come back.

For instance, what is a “Latino/Hispanic?” This label is based totally on language and culture, and has nothing to do with physical traits at all. Virtually every skin color can fit under the so-calld race “Hispanic.” And the recent upsurge in genetic information shows that every one of us is a deep blend of all kinds of traits and “races.” Sweet Polly Purebread does not exist anywhere on this planet.

For the record, Hernandez appears to have the physical/linguistic traits of a Black Puerto Rican Hispanic man. He would embrace that heritage. Moving to the US South to go to college created all kinds of tensions for him, and helped him think especially deeply on the topic of race. Of all the thinkers on race, Hernandez makes an unusually stubborn attempt to think clearly. 

All “races” have been hard on people who don’t look like them. There are no “noble savages” out there. Aztecs, Incas, Mayans, and the Cherokee held slaves.

Racialism: Giving too much attention to race. Seeing race as the prime identity of any person. Left-wing/progressive and right-wing have a different (but in some ways chillingly similar) flavor of over-emphasis on race.

Human rights.

The West has been trying to institutionalize human rights since the Enlightenment. Everywhere except in the West, this institutionalization of universal human rights has been systematically resisted.

Personalism.

The Natural Law/integrationist approach to race.

The American Founders put natural law principles in their founding documents; throwing their hats over the fence, forcing us, someday, to go get them. They set the standard for human equality, even though most of them (nor us) live up to it. Something for which we have the opportunity to strive.

Personalism: Ethnicity/race is not the heart of human identity. Not intrinsic to who we are. It is a result of the Fall and of Babel. Pentecost overcomes Babel. Reverses the downward slide. Ethnic and racial chasms can be bridged.

The heart of human identity is the IMAGO DEI (We are made in the image of God, both male and female). The peronalist/integrationalist view is optimistic. The spark of God in us will prevail. Tikkun Olam–the creation will be healed.

Our duty as Christians is to invite ourselves and others to live up to these ideals. We must also challenge our leaders to do so.

Dialectical/Separationist Approach

A form of collectivism. In conflict with Personalism/Integrationist view. Personhood is the goal, not the a priori state of the human being.

Oppression obscures the person, so justice must prevail first before personhood can emerge.

“Sovereignal Freedom” releases the oppressed individual from isolation/marginalization in exchange for service, deference, and loyalty.

Departure point is the collective, not the individual. This is a pessimistic worldview. Martin Luther King was an integrationist. Malcolm X was a separationist. With the death of King, the civil rights movement gave way to a sublimated form of Marxism based on race, not class (as Marx envisioned).

This has manifested itself in diversity training throughout corporate America, assuming falsely that more information will lead to more appreciation of others. This doesn’t work in this case, because the difference between races and cultures is over-emphasized (with separationist assumptions) to start with in such sessions; creating even more division and sending honest conversation underground.

Conclusions

We do need more conversations about racism, etc. The world is getting smaller–but all such conversations need to be based on the dignity of the individual. And the identity of the individual being much more than just “race” or ethnicity.

All of us need to acknowledge:

  1. The beauty of true diversity
  2. The very real history of systemic oppression

Also, we should be able to challenge anyone’s assumptions. Many collectivist/separationists get super-defensive if anyone challenges their dialectical assumptions. It can go ad hominem really fast.

Truth is, everyone’s assumptions are fair game for rational challenge…

23
Jul, 2017

“Public Choice” -Liberty Vocabulary

 

If you listen to political or economic podcasts, read blogs and journals, or go to lectures, the phrased “public choice” will be bandied about.

Once we get a working knowledge of any topic (say….econ or politics) we often stop learning terminology, because we can gather the gist of what is being said by the context.

Pubic Choice is a microeconomic tool used to critique political structures, especially constitutions and the like.

It is a peer-reviewed science, and tries to understand, in economic terms, why people do what they do and vote the way they do.

How does consensus work? And how much unanimity do you need? Does the Pareto Principle (80/20 rule) affect group decisions, and if so, how? Is utility for the majority, or a sense of justice which drives most people in public decision-making?

One of the problems with “majority rules” voting is that, scientifically speaking, decisions are more often than not favored which are less beneficial and cost more, rather than the other way around. Hello, $20 trillion deficit. 

Public Choice thought has exposed the idea of rent seeking (which I will explore soon in Life & Liberty). Rent seeking happens when incentives get mixed up when the government can offer certain advantages to certain individuals or groups. These protected entities tend to become monopolies. Thus the government, rather than protecting us from monopolies, is often tempted (by self interest) to go on multiplying and creating them, knowing that people would rather earn rent (cash flow from a stake in something) than work for money.

Public Choice thought tends to have an anti-statist bent, mostly because of its ongoing critique of the misplaced incentives in public bureaucracies as opposed to those in private corporations. Bureaucrats owe their allegiance to those above them who appoint them, and they lead a large, protected class of civil servants below them. Their tendency (behaviorally) is to please their appointers rather than the public which they “swear” to serve. Whereas no one on the private sector food chain, from CEO to laborer, can afford to take her/his eyes off of the well-being of the customer for very long.

It is especially controversial right now, because of Nancy McLean’s jeremiad against libertarianism, Democracy in Chains.

MacLean focuses on James Buchanan, her “bete noir,” who was prominent proponent of Public Choice thought. Buchanan and four other Public Choice scholars have won Nobel Prizes in Economics, including Vernon Smith whom I was privileged to meet in 2016 at Acton University.

MacLean sees a vast right-wing conspiracy, masquerading as science, which uses Public Choice data as a way to keep African Americans from voting. She presents no evidence for this; in fact, many Public Choice scholars were strident activists against Apartheid in South Africa.

This should be enough to get you started. But certainly not enough to explain it. Have a look around and let me know what you find.

For a great, simple slide show on Public Choice, click HERE.

For more info, check out the Wikipedia entry on Public Choice.

There is a Journal called Public Choice.

19
Jul, 2017

TrumpCare? ObamaCare? No thank you…

 

Both TrumpCare and ObamaCare are disasters.

Put together by politicians who have Cadillac health care plans and zero professional experience in medicine or insurance (with tiny exceptions like Rand Paul, an ophthalmologist). It’s ironic that John McCain could not make it to the vote because he was enjoying co-pay-free surgery at the time.

And what does Trump know about these things? He doesn’t even HAVE insurance because billionaires are simply self-insured by their net worth.

TrumpCare and ObamaCare are horrifically bad compromises between government control and free enterprise, somehow managing to avoid the benefits of either school of thought!

The benefits of socialized medicine:
  • It’s universal. Everyone has it and no one is left out. ObamaCare fails here, and TrumpCare leaves an even bigger “coverage gap.”
  • It’s streamlined. No layering of private/public bureaucracies which just over-feed each other and drive down efficiency and transparency, and drive up costs.
The benefits of a free enterprise health care system:
  • Competition. Which creates innovation and improvements. Look at the explosion of cell phone technology once government got out of the phone business.
  • Cost. What are the two fastest-improving segments of health care with dramatically falling prices? Lasik eye surgery and cosmetic surgery. Why? Because they aren’t under the control of government/insurance juntas.
  • The free market makes a huge effort to serve everyone (notice the dollar menu at the drive thru), and it is not incompatible with a basic social safety net for the poorest of the poor.
We end up with the worst of both systems with ObamaCare AND TrumpCare:
  • We have capitalism without competition (because of government control) which leads to price gouging and a total lack of pricing transparency. Heavy regulation favors the big boys of insurance and health care chains, because no startups can afford regulatory compliance. This is known as “regulatory capture” and monopolization.
  • We have “socialized” medicine without total coverage of the population; and so many layers of administration that the average person has no clue how to navigate the system.
  • The “Affordable Care Act (ACA)” has universally and dramatically driven up prices for both health care and insurance. It has been the polar opposite of “affordable.”
  • The truth is, it may not be feasible to administer any total-care system in a vast, continental empire of 335 million people. The necessary hierarchical layers would choke the whole thing. Poster-child examples tend to be little nations in Europe with the population of Orange County.
We have three options outside of the hideously dysfunctional non-option of ObamaCare or TrumpCare.
  1. Single-payer government health care. Even those who hate socialism can grant that it would be better than what we have now.
  2. A total free market. Don’t underestimate the power of the market to try to serve everyone, and to do it in better and better ways. The incentives are in the right place.
  3. Something way more creative which preserves competition and total coverage in a creative blend. That’s above my pay grade and certainly above the pay grade of your average senator.
11
Jul, 2017

Judaism and Natural Law (Daniel Mark, Villanova U)

 

What follows are my notes (with some editorializing on my part) of Daniel Mark’s lecture at the Acton University in 2017. Mark, who is Jewish, is professor of political science at Villanova University.

Why do Jews so seldom talk about natural law?

Let’s go back to Genesis. For one thing, Jews don’t extrapolate (as many Reformed and Roman Catholic theologians do) original sin out of the Adam and Eve story.

But natural law is “built in.” Adam was obligated to obey the command of God.

For instance, consider the many questions raised in the Jewish tradition about the justice of what happens in the Bible:

  • The binding of Isaac and the command to kill him
  • The conquest of Canaan
  • God harding the hearts of people so they don’t understand/hear.
  • The wiping out of the Amalekites.
  • And many more…

Where are these questions coming from? Not from revealed law, but from NATURAL LAW.

Leviticus 18:4–“Do my judgments and keep my statutes.”

Do my Judgments:  אֶת־מִשְׁפָּטַי תַּעֲשׂוּ  Mishphatim (pl). Having more to do with natural, rational, reasonable thought. What a judge does when she/he has to decide/discern. “Common law.”

And keep my Statutes:  וְאֶת־חֻקֹּתַי תִּשְׁמְרוּ Khuqim (pl). Written statues, clearly defined. Not from human reason. Often used for revealed law as opposed to natural law. “Statutory law.”

Was natural law assumed and never made explicit? Is it true because it’s in the Bible, or in the Bible because it’s true (natural)? The Jewish tradition, unlike the Greco-Roman Catholic tradition, never wrote out extended proofs.

Judaism is less consistent with natural law than Roman Catholicism. RC thinking has “exceptionless norms.” There is daylight between Jewish ethics and natural law.

Whether or not the Torah is fully rational, the goal of Judaism is to spread ethical monotheism, not to make everyone Jewish. Truth cannot contradict truth.

Many fundamentalisms (of all kinds) teach some kind of anthropological ‘total depravity’ which robs us of our ability to reason. Human rationality is judged guilty and not redeemable.

++++++++

My comments: the entire oral Torah tradition (the original “Wikipedia” spanning centuries) is a skyscraper of natural reason interacting with the rugged fabric of the biblical narrative. As the Jewish tradition paralleled the Greek tradition, rather than flowing out of it, as the Roman Catholic tradition was birthed, it uses different vocabulary not dependent on Greco-Roman philosophical grammars.

Reading contemporary-friendly “plunges” into the oral Torah (see, for instance the work of Avivah Zornberg) is one of the most intellectually refreshing journeys one can make, and a feast of reason meeting narrative.

3
Jul, 2017

Daryl Charles: Natural Law in our Post-Consensus World?

 

What do you get when you listen to a spry little guy with a Duck Dynasty beard (who was a street mime) whose topic is Natural Law?

J. Daryl Charles PhD, of the John Jay Institute, may just be one of the most gifted lecturers on the Acton University circuit.

What follows are my notes on his presentation with some of my own thoughts thrown in…

Today’s prevailing thought patterns:
  1. Metaphysical Naturalism. A rigorous denial of the transcendent, placing the burden of proof on everyone else.
  2. Fixation with rights divorced from duties or common good.
  3. Denial of morally fixed reference points. (However, these same people complain that things are not “fair” or “just.” Where did they get such “absolute” ideas?)
How should we respond to these trends?
  1. Resign to the impossibility of countering this thinking. Why polish the deck on the Titanic. Enter permanent “grievance mentality.”
  2. Isolation. The “Benedict Option.” Amish. Monastic thinking. Circle the wagons.
  3. Get absorbed into the culture. If you can’t beat them, join them.
  4. Being committed to the task of engaged citizenship. Be stewards of this cultural moment. To whom much is given….
Of course, Charles is advocating for door #4….

We must cultivate the art of translating our moral convictions in the public square. This is hard work and will require almost infinite creativity. We can call this BRIDGE BUILDING.

What are our resources?
  1. Abraham Kuyper (see my previous post on him) was ambidextrous. He articulated and affirmed general revelation and common grace which are available to all people, regardless of worldview. He could operate deftly in the public arena, cooperating with all as needed, but not forgetting who he was and why he thought differently that the “world.”
  2. The IMAGO DEI. We are all (believers, ‘other’ believers, and non-believers) created equally in the image of God, according to the way we see the universe.
  3. Commonly held beliefs on human nature and “self-evident truths.”
  4. The acknowledgment that all thought systems, sacred and secular, have quite a few unprovable postulates/axioms (see Euclid) at their foundation. At least 5 and more like 20 even in the leanest of epistemological skyscrapers.
Why is general revelation so important?
  1. There is reasonable evidence to see order and beauty in the creation, a sense of solidarity with all people, and at least some moral common ground.
  2. Universal possession of minimal moral knowledge.
  3. General revelation gives knowledge of creation, the self, and moral truth
The challenges before us
  1. We are not the first to face this. Every generation must polish up Natural Law, and re-present it to the human race.
  2. We must keep an eye on the progress of religious freedom (un-coerced conscience and corresponding action upon it) throughout the world. The first freedom without which the others are meaningless.
  3. Resist the temptation to “opt out” of the current political climate. There is a growing tendency to become disenchanted with the tone out there. Netflix and chill becomes more and more tempting as escapism.
  4. Content of our social ethic is important. It must contain charity, in the broadest sense of the word. People (left and right) often use “justice” as an excuse to be an a**hole.
  5. Manner of persuading (tone) is important. Religious faith is no guarantee of good manners. Let the message, not the method, offend. Then we will be focusing on real issues.
  6. C.S. Lewis was a master at moral persuasion. Adapting to the host culture. Learning the lingo. Read his works The Abolition of Man and Mere Christianity (chapter 1) to see this kind of persuasion at its finest. Lewis: Why do we ALL (without exception) react when we are slighted by others? Because there is a natural moral law….
  7. Ask others: On what basis can you argue for justice? We may draw the line in different places, but we all draw the line. A law has to be the same for both you and me for it to be just.
  8. Abortion issue. At conception, the DNA of a human is set. All other “lines” that are drawn are arbitrary and thereby plagued by inaccuracy.
  9. Sexuality. A good question: On what basis is your homosexuality natural? Is human nature based on design or passion? If our sexuality is based on biological design, then what constitutes disordered sexuality? Can rejection of created order ever be normative?
  10. Thoroughgoing pacifism. Does extreme pacifism make the world unsafe for all? Is force not proportional and relative? Can pacifism lead to the innocent being punished?
  11. Euthanasia. Is life extrinsically (value to others) or intrinsically (“an sich”) valuable?
  12. John Paul II: Only with some fixed norms is freedom and justice possible. Jefferson also: “These truths we hold to be self-evident….”
You can catch Daryl Charles surfing on the East Coast if you want to discuss this with him…

 

 

3
Jul, 2017

Why hate the Koch brothers?

The Koch brothers are the devil incarnate to many progressives.

But do you actually know their positions on immigration, prison reform, drug legalization, police violence, war in the Mideast, and urban education?

These two podcasts are from the Freakonomics Radio Show. Live interviews with Charles Koch.

I guarantee they will surprise you….

28
Jun, 2017

The Most Influential Man About Whom You Have Never Heard. #AbrahamKuyper

The Social Vision of Abraham Kuyper

Insights from a lecture given by Vincent Bacote of Wheaton College at Acton University 2017.

Abraham Kuyper (b. 1837 in Holland) is one of the most influential practical theologians of all time.

A parish pastor who ran for congress (Tweede Kamer), transformed Dutch society, and ended up prime minister, Kuyper (pronounced, BTW, COW-puhr, not KY-phur) enlisted almost superhuman dynamic energy to create space for Christians and others to thrive alongside one another.

He’s really only well-known in the Netherlands and in circles worldwide made up of enthusiastic Reformed/Gereformeerde/Hervormde theologians.

He was a progressive, “modern” theologian and pastor as a young man, who underwent twin conversions:

  1. Ethical. Became more humble and teachable.
  2. Confessional. Kuyper started attending prayer meetings of church members who were staying away from his “revisionist” sermons and discovered something of true substance there. He ended up aligning himself with the “kleine luyden” (the marginalized, less-socially-important people, many of whom could not vote). He ended up seeing himself as their leader and champion.

He eventually stepped away from vocational church life to run for congress, finding himself in the “Anti-revolutionary Party.” They were fighting against the secularist/laicist aftermath of the French Revolution (100 years prior).

You might say: “Why fight against something that happened 100 years ago?” Well, a Chinese historian was asked recently what he thought of the French Revolution. His answer (in 2015): It’s too early to tell (!).

Kuyper landed a seat in the Tweede Kamer (lower house), and began re-making the country. His writing output was beyond prodigious. He wrote daily and weekly columns for De Standaard and De Heraut. Much like Martin Luther, he used waterfalls of the printed word to bathe his nation in new ways of thinking. It led to several nervous breakdowns.

A parishioner, early on in his career, asked Kuyper: “Why can’t I send my child to a school with the bible?” This “School met de Bijbel” idea never left him; subconsciously, he turned it into brick and mortar, opening the Free University of Amsterdam (Conservative Christian) in 1880, and fighting for radical school choice for all (not just the rich) throughout his life, culminating in the 1917 educational pluralism law in the Netherlands, which has produced thriving primary schools of all ideologies to this day, all on an equal playing field, and at a cost of about half per student of what American taxpayers pay.

SPHERE SOVEREIGNTY

This will be the topic of another post, but AK developed sophisticated thinking around what he called sphere sovereignty. At the risk of over-simplifying, family, government, and church should stay out of each other’s business. The rules vary from sphere to sphere and one sphere doesn’t tell the other sphere what to do–thus it is fundamentally anti-totalitarian. Kuyper’s concepts around this idea had a huge effect on the large “Christian Democrat” political parties in Europe, and in a way, led to the welfare state which developed after WW2.

There are two kinds of Kuyper fans, in the 21st Century, and yes, they sometimes wear Kuyper T-shirts:

  1. Common Grace fans.
  2. Antithesis fans.
COMMON GRACE

A major theme in AK’s thinking, common grace is available to everyone. Dutch: gratie (rhymes with “Yahtzee”). Because God rules over all creation and all humankind, he gives them grace to live in his world and carry out their calling. God shows all men favor by holding their sin in check so that they are able to live together in society and so that His church can live and grow in the world (a quote from Charles Terpstra).

AK had practical reasons for creating the common grace canvas on which to paint his public engagement in politics. It gave him backing for working with all kinds of groups, Christian and secular, since everyone has access to gratie. He needed allies in order to form a coalition government and get some of his ideas passed into law.

Kuyper’s famous quote, “There is not one square centimeter of creation where God does not say: That’s mine!” reflects his understanding of common grace.

ANTITHESIS

Regenerated Christians, on the other hand, are recipients of special saving grace. Kuyper: genade. This sets them apart from all the rest of the human race. All facts can only be seen from two perspectives: regenerated and secular. This antithesis means, that although we share common grace, the regenerated Christian acts differently in the world than a secular person.

As Bacote summed it up: Go ahead and get out in the world, but remember who you are (a child of God) when you get there. We Christians will come to different conclusions about everything.

CONCLUSION

Kuyper never wanted a theocracy, because regenerated Christians will always be in the minority. But we are not to separate out into monasteries. Like Jesus and Paul, we are to engage the culture.

Special grace (genade) creates regenerated Christians who engage the culture with a different worldview, and engage others with our common grace to move God’s will forward in the world.

Also, AK was down on slavery, pro-women, had a huge effect on Dutch education, and set Dutch verzuiling (sovereignty n one’s own circle) in motion. He said some very racist things, was a workaholic, never groomed a successor, and wasn’t fully aware of how overbearing he was.

But he also is among the most creative Christian leaders of all time in describing how best to be “in the world but not of the world,” and far from being an ivory tower theologian, he walked his talk and set out to transform his nation.

 

 

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.

 

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