Venezuela’s Socialism has given it one of the World’s highest Murder Rates

Posted by PITHOCRATES - January 11th, 2014

Week in Review

President Obama is launching a war against income disparity.  Because under his 5 years or so as president the rich got richer while the median family income fell.  This income gap is the source of all our woes.  Or so he says.  And it can lead to other bad things.  Like violence between the classes.  Which is why he’ll say we need to raise the taxes on the rich.  To help everyone else who has suffered under the Obama economic policies.  So everyone has everything they could ever need or want.  And be happy.  Where people will live together in peace and bliss.  Like in socialists countries.  Where they put people before profits (see Former Miss Venezuela Monica Spear slain resisting robbery by Jorge Rueda, The Associated Press, posted 1/7/2014 on The Star).

Assailants shot and killed a popular soap-opera actress and former Miss Venezuela and her Irish ex-husband in the presence of their 5-year-old daughter when they resisted a robbery, authorities said Tuesday.

Monica Spear, 29, and Henry Thomas Berry, 39, were slain late Monday night on a roadside near Puerto Cabello, Venezuela’s main port, after their car broke down, the prosecutor’s office said in a statement…

Venezuela has one of the world’s highest murder rates and violent crime is so rampant that Venezuelans tend to stay home after dark…

According to the non-profit Venezuelan Observatory of Violence, the oil-rich South American country’s murder rate was 79 per 100,000 inhabitants last year.

Hugo Chávez was an extreme anti-capitalist.  And he turned Venezuela into a socialist paradise.  Putting people before profits.  But like all other planned economies it just led to shortages of everything.  And because the state couldn’t provide like a free market could a profitable black market developed.  Where what limited goods there were ended up selling at higher prices.  Leading to great income disparity.  As people with money could buy what they needed from the black markets while the poorer people could not.  And went without.

Deprivation and corruption led to ever greater income disparity.  As criminals and those in government lived well.  While the people suffered abject poverty.  Leading to a society that became so lawless that the people hid in their homes after dark.  This is what you get with socialism.  Well, that.  And an oppressive police state.  To keep those suffering abject poverty from rising up against the government.  So those in government can continue to live the good life.  While they continue to ‘fight for the people’.  Who never seem to escape from their abject poverty.

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Liar, Liar, Pants on Fire, Hang them up on Telephone Wire, President Obama

Posted by PITHOCRATES - December 12th, 2013

Politics 101

Oppression and Lies are Standard Fare for a Communist Dictatorship

Communists are pragmatic.  They know what they want.  And they do what it takes to get what they want.  For them the ends justify the means.  No matter how horrible those means can be.  And they’ve been pretty horrible.  As communists have been among the greatest abusers of human rights.  Something their people are not too keen on.  As well as those living in the free world.  So communists do something else a lot.  They lie.

When you want to do things against the will of the people you need to either lie to the people.  Or oppress the people with a large police state.  Which can be costly.  Because you have to take care of your police apparatus so they oppress the people and don’t turn on you.  That’s how all dictators stay in power.  Life is horrible in their countries.  But it’s pretty good at the top.  And those who protect those at the top.  North Korea still suffers from recurring famines.  Yet those at the top never go hungry.  Or suffer the abject poverty of the people.  And it’s been this way for a long time.  A system maintained with the firm hand of the state.  From Kim Il Sung to Kim Jong Il to Kim Jong Un.  As the Kim family succession continues to keep life horrible in North Korea (see North Korea announces execution of Kim Jong Un’s uncle, Jang Song Thaek by Chico Harlan posted 12/12/2013 on The Washington Post).

There have been no outward signs of instability under Kim Jong Un, and the North has largely maintained its key policies, resisting economic reform, devoting money to its weapons program and maintaining a gulag system for those accused of political crimes.

Kim Jong Un’s uncle was Jang Song Thaek.  I say was for he is no more.  Jang was in the inner circle of Kim Jong Il and thought to be a potential successor.  But that didn’t happen.  As Kim Jong Un had those honors.  But Jang was around a long time.  And knew a lot of people.  Which, of course, made him a threat.  So Kim Jong Un had him arrested, put him on trial for crimes against the state and executed.  Telling the people he was a “traitor for all ages” and was “despicable human scum” and was “worse than a dog.”  He demonized him to get the people to accept that this execution was just.  And to send a message.  He held power.  And anyone thinking otherwise will be demonized and executed.  Standard sort of fare for a communist dictatorship.  Oppression.  And lies.

You get the People to ask for more Government by Buying their Votes with a Cradle-to-Grave Welfare State

A communist state has its drawbacks, though.  The aforementioned abject poverty and recurring famines.  Because as an economic system planned economies just don’t work.  But a free market economy tends to put ideas into people’s heads.  Such as we don’t really need the government as much as the government wants us to believe we need them.  In the movie V for Vendetta this was something Chancellor Sutler impressed upon his lieutenants.  It was imperative to let the people know how much they needed British socialism.  Which is not quite communism.  But it’s anti-free market capitalism just like communism.  And a little easier to sell to the people.  For despite the left’s love affair with communism it is hard to spin that as anything other than it is.  Horrible.  I mean, people aren’t trying to break into North Korea and Cuba.  They’re risking their lives to escape these communist utopias.

So those on the left adopted a new type of socialism.  Social democracy.  Which was communism/socialism lite.  It wasn’t as anti-free market capitalism as communism/socialism was.  So as not to bring about the abject poverty and recurring famines you got with communism/socialism.  And you backed off on the oppressive police state.  Instead, you get the people to ask for more government.  By buying their votes with a cradle-to-grave welfare state.  And a lot of government jobs with decent pay and wonderful benefits.  To make the people love the state.  And impress on them how much they need the state.

Of course this bloated welfare state is costly.  Which they pay for with a progressive tax system.  A tax system that is ‘fair’.  By making the evil rich pay higher taxes so the good poor and the innocent children can have a decent life.  Not just those evil rich people.  And how do you oppose this?  You can’t.  Unless you hate the poor.  And the children.  Which is what the left says about the opposition whenever they oppose new spending.  Or higher taxes.  Of course, having to fight these battles over taxes and spending can be a pain in the behind.  So the state takes care of those in the inner circle of power.  Those who think correctly.  Who help get the people to ask for these taxes and spending.  The media who helps to spread their propaganda.  And the educational system.  That teaches the young to grow up loving government.  And fearing free market capitalism.  Then you add the coup de grâce.  National health care.

President Obama lied over and over again to put America onto the Pathway towards National Health Care

Every communist/socialist dictatorship had/has national health care.  For once the people become dependent on the state for their good health the state has them for life.  And whenever the opposition resists higher taxes for more spending all you have to do is kill some people by making them wait longer for health care that the opposition denied them.  Causing outrage among the people.  Who demand that the opposition stop playing politics with their lives.  The left’s kind of oppression.  Having the people beg for more government.  This is why national health care (or something that will help usher in national health care) is the holy grail of the left.  And why President Obama lied through his teeth to pass the Affordable Care Act (aka Obamacare) into law (see Lie of the Year: ‘If you like your health care plan, you can keep it’ by Angie Drobnic Holan posted 12/12/2013 on PolitiFact.com).

PolitiFact has named “If you like your health care plan, you can keep it,” the Lie of the Year for 2013. Readers in a separate online poll overwhelmingly agreed with the choice…

The Affordable Care Act tried to allow existing health plans to continue under a complicated process called “grandfathering,” which basically said insurance companies could keep selling plans if they followed certain rules.

The problem for insurers was that the Obamacare rules were strict. If the plans deviated even a little, they would lose their grandfathered status. In practice, that meant insurers canceled plans that didn’t meet new standards.

Obama’s team seemed to understand that likelihood. U.S. Health and Human Services Secretary Kathleen Sebelius announced the grandfathering rules in June 2010 and acknowledged that some plans would go away. Yet Obama repeated “if you like your health care plan, you can keep it” when seeking re-election last year…

Also on Oct. 1, insurers started sending out cancellation letters for 2014…

One example: PBS Newshour interviewed a woman from Washington, D.C., who was a supporter of the health care law and found her policy canceled. New policies had significantly higher rates. She told Newshour that the only thing the new policy covered that her old one didn’t was maternity care and pediatric services. And she was 58…

First, they tried to shift blame to insurers. “FACT: Nothing in #Obamacare forces people out of their health plans,” said Valerie Jarrett, a top adviser to Obama, on Oct. 28.

PolitiFact rated her statement False. The restrictions on grandfathering were part of the law, and they were driving cancellations.

Then, they tried to change the subject. “It’s important to remember both before the ACA was ever even a gleam in anybody’s eye, let alone passed into law, that insurance companies were doing this all the time, especially in the individual market because it was lightly regulated and the incentives were so skewed,” said White House Press Secretary Jay Carney.

But what really set everyone off was when Obama tried to rewrite his slogan, telling political supporters on Nov. 4, “Now, if you have or had one of these plans before the Affordable Care Act came into law, and you really liked that plan, what we said was you can keep it if it hasn’t changed since the law passed.”

Pants on Fire! PolitiFact counted 37 times when he’d included no caveats, such as a high-profile speech to the American Medical Association in 2009: “If you like your health care plan, you’ll be able to keep your health care plan, period. No one will take it away, no matter what.”

President Obama lied.  Over and over again.  He lied to get this pathway to national health care into law (for once he destroys the private health insurance industry what will be left but a public option?).  And he lied to win reelection.  President Obama lied.  And his fellow Democrats lied.  Over and over again.  To put America onto the pathway towards their holy grail.  National health care.  The linchpin of the massive cradle-to-grave welfare state.  The one thing that allows the state to tax and spend more than anything else.  And puts the opposition into the position of wanting to kill people anytime they oppose higher taxes and more spending.  Which has a lot more staying power than a government shutdown.

What can you say about someone who lies (at least) 37 times?  That person is a pathological liar.  A pragmatic.  A person who believes the ends justify the means.  That the rule of law is only a suggestion.  A person that will say anything and break any law to get what he wants.  And is willing to kill people by taking away the health insurance they liked and wanted to keep.  By taking away the doctor they liked and wanted to keep.  And by taking away the medication they liked and wanted to keep.  Fear and suffering President Obama and his fellow Democrats and supporters in the media and education are indifferent to.  For their greatest concern is how will this hurt President Obama?  This is what those on the left worry about.  Their dear leader.  Not the people.  Just like the inner circle surrounding every tin-pot dictator worry about.  For if the people turn on the dear leader they may overthrow him.  And with him go their privileged lives amidst the abject poverty and recurring famines surrounding them.

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North Korea turning to Free Markets to End Famine and Abject Poverty

Posted by PITHOCRATES - June 2nd, 2013

Week in Review

Our public schools are teaching our children that capitalism is evil and unfair.  That government is needed to prevent business owners from making too much profit at the people’s expense.  Our public schools teach our kids this because the left controls our public schools.  And the left hates capitalism.  They would love to replace capitalism with socialism.  An egalitarian system that puts people before profits.  Because putting people before profits is the only way to truly increase the quality of life.  Unless you actually live in a place where they put people before profits (see NKorean farmers planting rice with profits in mind by AP posted 5/31/2013 on Yahoo! News).

Farmers say they have begun working under the new policies, which are designed to boost production by giving managers and workers financial incentives. Foreign analysts say the moves to spur North Korea’s moribund economy suggest Pyongyang is taking cues from Beijing on how to incorporate free market ideas within its rigid socialist system…

Impoverished North Korea suffers chronic food and power shortages and has not released economic data for decades. South Korea’s central bank estimates the North’s gross national income, an indicator of the average standard of living, was $1,250 per person in 2011 compared with $23,400 in South Korea.

In the past, the North Korean state set workers’ salaries. Under new measures announced April 1, the managers of farms, factories and other enterprises have been given leeway to set salaries and offer raises to workers who help drive up production…

Beijing dismantled its centrally planned economy slowly. In the 1970s, it began allowing farmers to keep more of their harvests, giving them an incentive to grow more to sell on newly permitted free markets. Food production soared.

In the mid-’80s, the government gave state enterprises the authority to link bonuses and salaries to better performance. Those changes were mostly aimed at managers, but they cracked a communist-era preference for egalitarianism.

New rules in the early 1990s gave state enterprises full flexibility to set wages, widening the use of performance incentives. In that decade, China truly broke away from its centralized “iron rice bowl” system of guaranteed employment and state-set incomes…

At the Tongbong farm in the eastern city of Hamhung, farmers are in the midst of a busy rice planting season after a long, cold winter.

A long, cold winter?  Guess there’s no global warming in North Korea.

North Korea’s “rigid socialist system” has impoverished and starved her people.  As well as left them in the dark as they don’t have the energy to light up the night.  This is egalitarianism.  Everyone’s life is equally miserable.  This is what socialism gets you.  Countries like North Korea, Cuba, the former Soviet Union and China under Mao.  Countries notable for their abject poverty.  And occasional famine.  This is what the left wants America to be.  Egalitarian.  Where we put people before profits.  Where no one has any incentive to do anything.  Because working harder than the next guy doesn’t improve your lot in life.  So you don’t work harder.  You do the minimum.  Because why work harder when the outcome is always the same?  Misery.

No doubt the American left disapproves of North Korea’s introduction of market forces.  And the profit incentive.  For it puts profits before people.  They’d rather see another layer of bureaucracy.  And another 5-year plan.  Where brilliant government elites think brilliantly to solve the nation’s problems.  Instead of leaving it to the chaos of the free markets.  For what did the chaos of the free markets ever do for the people?  Other than give them an obesity problem while socialism gives her people famine.  Free markets give her people smartphones and the Internet.  While Socialism can’t even light up the night.  And free markets give her people peace and happiness.  While socialism gives her people fear and intimidation.

Of course, the American left doesn’t have a problem giving fear and intimidation to some people.  As the IRS persecution of conservatives shows.  Which is perhaps why the American left admires socialism so much.  Why they insist that we put people before profits.  Because when we do we move closer to a police state like they have in North Korea.  Something the American left no doubt would like.  For it would make it easier for them to persecute their political enemies.

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Marx, Engels, Communist Manifesto, Capitalists, Bourgeoisie, Proletariat, Private Property, Soviet Union, Iron Curtain and East Berlin

Posted by PITHOCRATES - May 1st, 2012

History 101

Nationalism, Socialism and Communism forced a more Fair, Just and Equitable Society onto the People

Karl Marx and Friedrich Engels published the Communist Manifesto in 1848.  Launching a war against capitalism.  And private property.  Intellectuals and those in academia loved this stuff.  And labor leaders.  Because it was a path to power.  Especially for those who could not create wealth.  Unlike the great wealth producers.  Like the industrialists.  The entrepreneurs.  Small business owners.  The productive middle class.  That is, the capitalists.  Who work hard and achieve success.  By using their talent and ability to create wealth.  Moving up the economic ladder.  Creating income inequality.  The ultimate sin of capitalism.  According to Marx and Engels.  Intellectuals.  Academia.  And labor leaders.

In the Communist Manifesto Marx and Engels single out the accumulation of private property as the source of all our problems.  The capitalists, the bourgeoisie, have an insatiable appetite for private property.  They just can’t get enough of it.  And therefore oppress their workers, the proletariat, to maximize their property.  By paying them less and less to maximize their profits.  So they can use those profits to buy more and more property.  Which keeps the proletariat in perpetual and abject poverty.  And concentrates all the wealth into the few hands of the bourgeoisie.  And the only way to correct this great inequity was through a worker’s revolution.  Where the proletariat rises up and takes the private property of the bourgeoisie and gives it to the state.  So it belongs to everyone.  Especially to those who did not create it.  A very popular idea among those mired in perpetual and abject poverty.  Who are easily swayed to support this more fair, just and equitable distribution of other people’s wealth.

These progressive views enthralled Europe.  Especially after the Industrial Revolution created some appalling conditions for workers.  And they took this opportunity to put them into practice.  It was the 19th century that gave us the ‘fair’ political systems of nationalism, socialism and communism.  That began the process of transferring wealth from the capitalists to the anti-capitalists.  Precipitating the economic decline of Europe.  Making America the new economic superpower.  Which still maintained the principles of free market capitalism throughout the 19th century.  Until the anti-capitalistic teachings of Marx and Engels took hold in the progressive government of Woodward Wilson.  Bringing back the federal income tax Abraham Lincoln used to pay for the Civil War.  But unlike Lincoln Wilson had no intention of repealing it.  The federal income tax was here to stay.  As progressives began building that more fair, just and equitable society.

The Soviet Union Depended on the West for Food because their Forced Collectivized Farms couldn’t Feed their People

But the equitable movement in America was not as intense as it was in Europe.  Or Russia.  Which was taking the teachings of Marx and Engels to their logical end.  They had a worker’s revolution.  They became communist.  And forced that more fair, just and equitable society on their people.  Whether they wanted it or not.  And those who objected they systematically killed.  Or exiled to a Siberian gulag.  For Joseph Stalin’s rise to power was brutal.  As was the Soviet Union.  Even making a deal with Adolf Hitler to split Poland after the Nazi-Soviet invasion of Poland that launched World War II.  Then Hitler double-crossed their Soviet ally and attacked the Soviet Union.  And the Nazis nearly overran them.  The Nazis were in Leningrad (present day St. Petersburg).  At the gates of Moscow.  And in Stalin’s city.  Stalingrad.  The Soviets were unable to resist the Nazi onslaught.  The only thing that saved them was material aid from the capitalist West.  The Soviet T-34 tank (the best in the war).  And, of course, the millions of Soviet people the Soviet generals could throw into the Nazi killing machine to wear the Nazis down.

No one suffered like the Soviet people did during World War II.  The US and the UK each lost about a half million people.  A terrible loss.  The Soviets, though, lost about 25 million people.  A number that just numbs the mind.  This was the second Russian invasion that had brought an enemy to the gates of Moscow.  The first were the French a century earlier under Napoleon.  There wasn’t going to be a third.  Wherever their armies were at the end of World War II they pretty much stayed.  Turning Eastern Europe into a communist bloc.  And to make the Soviet Union a mightier nation they embarked on a rapid industrialization program.  To make it a modern power like those great nations in the West.  But unlike them they were going to do it the ‘smart’ way.  With their command economy.  Where their brilliant state planners would marshal their resources and do what the free market economies did in the west.  Only instead of taking about a century their Industrial Revolution would take only 5 years.

With no industrialists, entrepreneurs, small business owners or a middle class it fell upon the state planners to industrialize the Soviet Union.  As well as feed the Soviet people.  Well, they industrialized the Soviet Union.  But never brought it up to par with the industrialized West.  Worse, they couldn’t feed their people.  Despite having some of the most fertile farmland in all of Europe in the Ukraine.  The Soviet Union depended on the West for food.  Because their forced collectivized farms didn’t work like Marx and Engels said they would.  And they didn’t work in China, either.  Where another brutal communist dictator, Mao Zedong, killed tens of millions of his people by starving them to death.  By forcing a more fair, just and equitable society onto the Chinese.

Time Froze behind the Iron Curtain and People Lived pretty much Forever in the 1940s

At the end of World War II, like at the end of World War I, no one wanted to think about war anymore.  Winston Churchill, though, did.  For he saw what the Soviet Union was doing.  And saw the spread of their communism as a threat to Western Civilization.  He gave a speech at Westminster College in Fulton, Missouri, in 1946.  And said, “From Stettin in the Baltic to Trieste in the Adriatic an iron curtain has descended across the Continent. Behind that line lie all the capitals of the ancient states of Central and Eastern Europe.”  There was now an Eastern Europe.  An East Germany.  And an East Berlin.  All behind the Iron Curtain.  All in the Soviet sphere.  All communist.  Where they all suffered under a more fair, just and equitable society.  Whether they wanted it or not.  And they clearly did not.  For the Soviets had to build a wall in Berlin to prevent those in East Berlin from escaping to West Berlin.

The intellectuals, academia and labor leaders loved Joseph Stalin and the Soviet Union.  They thought communism was the enlightened future.  Probably because they didn’t have to live in it.  But what is surprising is that a lot of college students have this affection with communism.  To this day they still wear t-shirts emblazed with the beret-wearing Che Guevara.   Who helped Fidel Castro bring that more fair, just and equitable society to the Cubans.  Who have been trying to escape it ever since by practically swimming to Florida and free market capitalism.  But the college students and their professors still yearn for a Soviet-style economy in the United States.  And condemn capitalism as they sit in coffee bars sipping their lattes.  Enjoying social media on their smartphones.  Wearing the latest fashions.  Enjoying the latest movies.  The newest music.  And dream of that more just society.  Where they redistribute wealth fairly and equitably.  And the rich pay their fair share.  Just like in East Berlin.  Where life was fair.  But it was nowhere as enjoyable as in the unfair West.

Time froze behind the Iron Curtain.  When West Berlin enjoyed the best Western Civilization had to offer in music, fashion, food, entertainment, etc., East Berlin didn’t.  For they were frozen in the 1940s.  Western music was decadent.  So instead of rock and pop music you listened to classical music.  Instead of the latest Hollywood movies you went to the ballet.  You didn’t watch Western television.  Read Western books.  Or newspapers.  No.  You only saw things approved by state censors.  And that were patriotic.  Why?  To prevent their people from seeing how much better life was on the other side of the Iron Curtain.  Where they enjoyed the latest and the best of everything.  Whereas inside the Iron Curtain you went to the black market for any real luxuries.  Like a pair of blue jeans.  Which they didn’t sell in East Berlin.  Because they were decadent.  Why, they wouldn’t even sell a t-shirt with a communist icon on it.  Because you just didn’t wear something like that in the 1940s.  But college kids will attack capitalism.  And support the fairness of socialism and communism.  Even though the things they enjoy come from free market capitalism.  And are simply not available in the communist command economy.  Because the accumulation of private property is the greatest sin of capitalism.  And not allowed under communism.

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FT114: “One of the most effective ways to get privilege is to force fairness on others.” -Old Pithy

Posted by PITHOCRATES - April 20th, 2012

Fundamental Truth

Voters are so Greedy and Selfish with their Hard-Earned Money that they’re not going to Vote to be Subjugated

History is strewn with people oppressing others to gain privilege for themselves.  Kings, emperors and nobles were always a small minority of civilizations.  But they had the power.  And the wealth.  While the masses suffered abject poverty and went hungry.  Or suffered through famines.    And died.  With early civilizations this was just the way of life.  Because there was no middle class.  No free market capitalism.  And no rule of law.  Life was for the most part subsistence farming.  Where most ate only what they grew.  While the kings, emperors and nobles enjoyed lots of food and drink.  Even enjoyed having a little fun.  Unlike the impoverished masses.  Having privilege made life better.  Which is why the privileged worked hard to keep it.  By forcing others to work hard to provide that better life for them.

But times change.  Privileged ruling classes fall.  And middle classes rise.  Creating vibrant economies.  And representative government.  Then one day the privileged find that they are no longer privileged.  That wealth isn’t automatically theirs.  Instead it belongs to the people who earn that wealth.  And if the once-privileged want wealth then they, too, have to work to get it.  So they, too, can have nice things.  And that they can only have these things if they earned enough to afford them.  Which is a great problem if you don’t want to work.  Don’t have any ability to earn a high income.  Or if you have a feeling of entitlement.  Like in days of yore.  Where you didn’t need anything but a good last name to live the good life.  On the backs of those who didn’t live the good life.

Feelings of entitlement don’t die, though.  They don’t go away once the middle class starts sharing the wealth.  Well, not so much sharing it but earning it.  And keeping it.  Instead of giving it to a privileged ruling class.  Which poses a problem for those who aspire to join a ruling class.  Especially now that we have those pesky elections.  Because voters are so greedy and selfish with their hard-earned money that they’re not going to vote to be subjugated.  They’re not going to vote in a privileged ruling class so they can live like royalty.  While those who pay for that royal lifestyle don’t.  ‘Vote for me so I can live better than you’ is just not a winning political platform.  So that’s why politicians lie.

The Privileged Elite uses Class Warfare to take other People’s Wealth

What do you need to live a privileged life?  Lots of money.  No secret here.  But the secret is how to get that money.  In particular, how do those who don’t want to work or have no talent or have no ability create wealth?  Here’s the secret.  They don’t create wealth.  They take wealth.  By going into government.

Only government has the power to tax.  Which can be a great source of wealth.  Other people’s wealth.  Which is any privileged class’ second favorite kind of wealth.  Second only to the wealth they already took from others.  Because that’s what they want.  Other people’s wealth.  And they’ve found a clever way of taking it.  By making the world a fairer place.  And who’s against fairness?  They’re going to make sure that the poor and children have access to food and affordable housing.  And who’s against the poor?  The children?  You’d have to be a pretty vicious, heartless bastard to be against the children.  And the poor.  They’re going to make sure that women have access to reproductive health care.  For who hates women?  I’ll tell you who.  Anyone that opposes raising taxes.  They hate women.  Children.  The poor.  For the world is full of haters.  And just who are these haters?  Aanyone that earns a lot of money and doesn’t want to pay higher taxes.  These people hate anyone not as wealthy as they are.  Because they hate fairness.  And paying their fair share.  Because they’re greedy.  And hate women and children.  And puppies, too.

This is the way the privileged take other people’s wealth.  Class warfare.  And it’s very effective.  By being the party of the poor, disadvantaged, children, women and puppies, they’re kind and benevolent.  With other people’s money, of course.  But those people are evil so it’s okay.  People hate them.  But they like their kind government benefactors.  Who are looking out for their best interests.  Not rich people.  Or corporate profits.  No, our kind government benefactors make sure those greedy rich people and corporations pay their fair share.  Because that’s all that they want.  It’s all anyone wants.  To be fair.

North Korea is pretty much at the End of the Fairness Road

Later incarnations of the privileged ruling class used the fairness approach to give themselves a better life.  While oppressing their people.  Even killing them.  Through famine.  Or deliberate acts of violence.  All in the name of fairness.  And nothing better epitomizes this than communism.  Where everyone was equal.  Brothers.  Comrades.  There were no profits.  No capitalism.  No competitiveness.  No.  Everyone was equal.  They paid everyone the same.  They dressed everyone the same.  They housed everyone the same.  They fed everyone the same.  Very little.  For one thing you never saw in a communist country was obesity.  Instead you probably heard the rumbling of tummies as most people were hungry all of the time.  There was no income inequality.  No gender inequality.  No.  In communism they had nothing but equality.  Life was fair.  Because no one had anything more than anyone else.  As they perfectly distributed the misery and poverty equally among the impoverished masses.

That was for the masses.  It was quite a different thing for the privileged ruling elite.  Those in the party apparatchik.  And the inner party members themselves.  Who were more equal than others.  These people dressed better.  They had better housing.  Even cars.  They ate better.  Some so well that they grew obese.  North Korea suffers from recurring famines to this day but Kim Jong IL had a bit of a weight problem.  As his son does.  Kim Jong-un.  No, life is very good for the privileged ruling elite.  And hell for those living under them.  Who the ruling elite let die of hunger.  And send to concentration camps if they dare speak of their displeasure.  For only under communism is life fair.  And they just can’t risk the unhappy masses to spoil it for the privileged few.

North Korea is pretty much at the end of the fairness road.  The country is so poor and impoverished and hungry that people will risk their lives to try and escape this land of fairness.  To get somewhere that isn’t so fair.  Like South Korea.  Where they have capitalism.  And inequality.  Where someone can come with nothing, work hard and earn a better life.  Allowing them to pay for housing.  And put food in their rumbling bellies.  For a fair and oppressive government surely cannot.  All they can do is create great inequality between the people and the ruling class.  Far greater than that between the rich and poor in any capitalist country.  For the poor in countries like the UK, Canada and the United States are living far better than anyone outside the ruling elite in North Korea.  This is where the fairness road ends.  But it starts with class warfare.  Where a privileged few live the good life through high taxes.  Taxes they use to force fairness on others.  While those at the top manage that fairness.  Skimming a lot off the top of those taxes for themselves.  And what’s left they spend on the poor, disadvantaged, children, women and puppies.  Just enough to make sure the people love their very rich and wealthy government benefactors.  So they can win the next election.  At least while they still have to deal with those pesky elections.

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Monetarism, Laissez-Faire Capitalism, Augusto Pinochet, Chile, Hyperinflation, El Ladrillo, Chicago Boys, Milton Friedman and Miracle of Chile

Posted by PITHOCRATES - March 6th, 2012

History 101

During the 19th Century Mercantilism gave way to Laissez-Faire Capitalism and Free Trade

Portugal and Spain were superpowers around the 16th and 17th centuries.  Great monarchies with mercantilist economic policies.  Which was all about trade.  Maximize exports.  Minimize imports.  Settle colonies to mine/harvest raw material.  To ship back to the mother country.  Where they manufactured goods from the raw materials.  And exported them to other countries.  Selling them for gold and silver.  Which was key.  Maximizing the trade surplus in the balance of trade.  Finished goods going out.  Gold and silver coming in.  For the nation that gathered the most gold and silver won in the zero-sum game of mercantilism.  Where the monarchy works with business.  Picking winners and losers.  And rewarding the winners who help enrich the monarchy.

Of course, these policies force a kingdom’s subjects to pay higher prices.  By keeping out lower-priced imports.  And with special deals favoring some domestic industries so they can sell at monopoly prices.  They nationalized their Industries.  Creating an aristocratic class.  Composed of government officials.  And their partners in the nationalized industries.  Living the good life on the backs of the poor.  Who paid high taxes.  And high prices.  To support those mercantilist policies.  And it was these policies that settled South America.  Taking all of their gold and silver (bullion).  Shipping it back to the mother country.  The surge in bullion in Europe made it less scarce.  And less valuable.  Meaning it took more of it to buy the same things it once did before this surge.  Resulting in higher prices.  And inflation.  Hurting the consumer more.  And leading to the development of the quantity theory of money.  And monetarism.  Which held that the amount of money in circulation had a direct impact on prices.  The more money the higher the prices.

With the rise of Parliament in Britain power shifted from the king to the people.  Via their representatives in Parliament.  Instead of rule by dictate there was rule by consent.  Which made the business of choosing winners and losers more difficult.  Parliament had the power.  But Parliament was more than one person.  It was full of special interests.  Which made it more and more difficult to choose any one special interest over another.  Unable to curry favor for one’s own interest one didn’t support another’s interest.  At least not when that support came at the expense of your interests.  So there was another power shift in addition from the king to parliament.  There was also one from the king to the markets.  So during the 19th century mercantilism gave way to laissez-faire capitalism.  And free trade.  An economic system that let the British Empire dominate the world during the 19th century.  Making it rich.  And powerful.  Thanks to that vigorous economic activity that could build the world’s most powerful navy.  And pay for an army to garrison an empire.  Meanwhile the old school mercantilist empires fell from superpower status.  And became shadows of their former selves.  Soon the Spanish and Portuguese colonies would gain their independence from these dying empires.

Milton Friedman’s Monetarism turned the Chilean Economy Around

The South American nations may have hated their European masters but they liked one thing about them.  Their mercantilist policies.  Which survived into the 20th century.  Where government partnered with business.  In the worst of crony capitalism.  Where special interests that favored the ruling powers received government favors in return.  Usually protected markets.  And favorable legislation.  That allowed them monopoly prices.  Giving them great profits.  Generous union wages and benefits.  And generous health care and pensions.  At least, for those politically connected.  So the government rigged the game for them.  And they made it worth the government’s while to rig the game.  All of this paid for on the backs of the poor.  Who paid high taxes.  As well as high prices.  And suffered abject poverty.  Which made for an unhappy people.  And a large amount of government turnover through revolution as dictatorships and military juntas overthrew other dictatorships and military juntas.

In 1973 it was Augusto Pinochet’s turn in Chile.  Who came to power in a military coup.  At the time the country wasn’t doing so well.  And in full mercantilism.  The economy was in the toilet.  There was abject poverty.  And hyperinflation (peaking at 1000% or so) as the government printed money to pay for its out of control spending.  To try and bribe the angry mob and keep them from overthrowing the latest dictatorship.  Pinochet was the guy to fix that.  Like everybody that came before him.  And after his military junta failed as the previous military juntas failed, he tried something new.  Thanks to something called El Ladrillo.  And economic plan so thick and heavy they called it ‘the brick’.  A plan prepared by the Chicago Boys.  Chilean economists schooled in the Chicago school of economics.  Pinochet even met with Milton Friedman.  Prominent economist of the Chicago school.  And monetarist.  Who came down to give a speech.  (Interestingly, for the American left roundly criticized Friedman for giving a speech in a right-wing dictatorship.  Though he received no such criticism for giving the same speech in a left-wing dictatorship – communist China.  Showing that the political left was okay with human rights violations as long as they were committed in the left-wing dictatorships they so admired). 

Pinochet asked for some economic advice.  Friedman gave it.  And Pinochet followed it.  He ditched the mercantilist policies.  Embraced laissez-faire capitalism.  Privatized the state industries.  Established free trade.  Cut government spending.  And stopped printing money.  Ending the hyperinflation.  Replacing it with a strict monetary policy.  This didn’t please the politically connected as they lost their privilege.  But Friedman’s monetarism turned the Chilean economy around.  Creating a prosperous market economy.  With a growing middle class.  The strong economic growth led to some healthy tax revenue.  Which in later years funded antipoverty programs.  The Miracle of Chile even replaced the military junta with a democratic government.  Chile now has one of the healthiest and freest economies in the world.  An economy better and stronger than their former colonial master.  Spain.  Who maintained enough of their mercantilist policies to pull them into the Eurozone debt crisis.  And probably could learn a thing or two from their one-time colony.  Who is doing very well these days.  Thanks to the Miracle of Chile.  Milton Friedman.  And the Chicago Boys.  Those great Chilean economists given a chance by of all people a military dictator.

Everyone does Better under Free Market Capitalism, not just the Politically Connected

In 2010 a 7.0 earthquake hit Haiti.  A country rife with political corruption.  With little, if any, free market capitalism.  And even less rule of law.  Where most people live in abject poverty.  In ramshackle housing.  This earthquake claimed 230,000 lives.  A heart-wrenching loss of life.  Especially sad because the impoverished masses suffered the most.  As is often the case in countries with poor economic and political institutions. 

Later that same year, an 8.8 earthquake hit Chile.  Thanks to the economic reforms that rebuilt Chile into a healthy and prosperous democracy, Chileans did not live in ramshackle housing.  The higher standard of living created by the Chicago Boys’ economic reforms created better housing.  And safer cities.  Because of this the far stronger earthquake in Chile killed far fewer people than the lesser earthquake in Haiti.  The death toll in Chile was less than 1,000.  Which is impressive considering that was one of the most powerful earthquakes in recorded history.

Economics matter.  Say what you want about free market capitalism.  Malign it all you will.  But you can’t change some facts.  In particular, everyone does better under free market capitalism.  Including the poor.  For if this wasn’t the case Chile would have seen the loss of life Haiti saw.  But they didn’t.  Because there were no impoverished masses living in ramshackle housing in Chile.  Because those economic reforms improved the standard of living for all Chileans.  Not just the politically connected. 

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LESSONS LEARNED #45: “The bluest of cities in the bluest of states have the most activist governments, the deepest recessions and the most abject poverty.” -Old Pithy

Posted by PITHOCRATES - December 23rd, 2010

Detroit – The Motor of the World

Detroit.  Do I need say more? 

If you want to see the ultimate destination of liberalism, go to Detroit.  The Motor City.  The birthplace of the assembly line.  Mass production.  The veritable axle of the Industrial Revolution redux.  Detroit put the nation in motion.  In cars.  And in diesel-electric trains.  If it was big and powerful and moved the world, it came from Detroit.  The Arsenal of Democracy.  Detroit could mass produce trucks and tanks and airplanes to win world wars.  And did.  There was nothing Detroit couldn’t do.

Henry Ford.  Thomas Edison.   Albert Kahn.  Some of the greatest names in science and industry called Detroit home.  That place you can point to on your hand.  With pride.  The city grew and became one of the greatest and grandest cities in the nation.

And look at it now. 

Detroit and Government Grow Big

The population of Detroit grew up to and through the 1950s.  That changed in the 1960s.  When Big Government arrived.

Mayor Jerome P. Cavanaugh started it.  He implemented the city income tax in 1964.  The spirit of government spending was in the air.  The Great Society would follow at the federal level.  Government spending upon government spending.  Translation?  High taxes in the city of Detroit.

Then there was all the social engineering.  Lots of rules and regulations.  Some of it good.  But all of it complex.  And costly to business.  Compliance costs and taxes.  Not things that attract businesses.  Not a big deal when the Big Three rule the automobile world.  But that would change.  In fact, that would change because of the compliance costs and taxes.  The Japanese entered the market.  And they were selling better cars for less.  Add all of this together and you get the 1970s.

The Fall of Detroit

Detroit grew to be business unfriendly.  So business left.  And then the people left, following the jobs out of Detroit.  Then some of the social engineering made others leave the city.  School bussing, for one.  Families choose their houses based on the school district the house is in.  Of course, poor families can’t afford to live in those nice neighborhoods with the nice schools.  And Big Government thinks this is just not fair.    So they bussed the poor kids to the nice schools.  And bussed the kids from the nice schools to the not so nice schools.  Thus encouraging the people from the nice neighborhoods to leave Detroit.

They call it white-flight.  A lot of jobs and affluent people left Detroit.  Leaving behind the less affluent in the not so nice neighborhoods with no jobs.  Not good for any city.  Government services grew to help care for the poor.  The Great Society offered Aid to Dependent Children.  Which, according to noted economist Thomas Sowell, destroyed the black family.  Fathers ran away from their responsibilities.  And the state stepped in to raise their children.

Add all this together and you get a lot of people with no money and a lot of idle time on their hands living in rundown neighborhoods wanting for the basic necessities of life.  And that’s never good.  Detroit became infamous.  Crime and drug problems.  Devil’s night arson.  Street gangs.  Murder capital of America.  Crime and drug infested public housing.  Decrepit schools.  Truancy.  Low graduation rates.  And to solve these problems caused by Big Government, one man turned to Big Government.

Culture of Corruption

Coleman A. Young was mayor forever.  From 1974 to 1993.  And he was a Big Government guy.  He took the city from bad to worse.  And he fixed the racism problem.  By implementing racist policies.  After the white-flight, the city was predominately black.  And so would their police, fire department, public sector employees, etc.  They based hiring on color.  Not merit.  This accelerated the white-flight.  And set up a culture of corruption.  Which usually happens when you hire people based on who they know or who they are rather than on merit.

Young was hostile to the suburbs surrounding the city.  He called them hostile suburbs.  Why?  Well, that’s the problem you have with socialism (Young was an admitted socialist).  It just doesn’t work in an open society.  If the tax and compliance costs are too great in Detroit, people can move out of Detroit.  And they did.  Even the city cops didn’t want to live in the city.  They moved out if they could (by concealing their actual residency).  Or they lived clustered together in the city.  The real estate community called one such cluster Copper Alley.  It was near one of those hostile suburbs.  And it was one of the good areas in Detroit to live in.  Young hated this.  And the suburbs that offered safe sanctuary from oppressive, socialist policies.

Detroit was one of the most corrupt cities during Mayor Young’s tenure.  It was crony capitalism at its worst.  Everyone was corrupt.  Even the authorities were forever investigating the mayor.  (A later mayor was doing a lot of the same.  And he went to jail.)  It was during the Young administration that a couple of humorous slogans started to appear on T-shirts.  “Welcome to Detroit.  Now get the hell out.”  And “Detroit.  Where the weak are killed and eaten.”  High praise indeed for the Murder Capital of America.

Detroit’s Future – Returning to the Plow

So what happens after a city suffers at the hands of Big Government for a few decades?  Well, the population declines.  Because no one wants to live in the city.  About a million people have left Detroit since its peak in the 1950s.  And if that ain’t a repudiation of Big Government, I don’t know what is.

So what is the current mayor doing?  Well, the city is broke.  City services are in shambles.  So they’re going to move people out of sparsely populated neighborhoods.  Pack them closer together.   And abandon large tracts of land.  Just let the land return to nature.  Or plow it into farmland.  If anyone wants to buy it.

Ironic, really.  The city that made the world move forward is moving backward.  A sad ending indeed for the Motor City.

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