The British have a New Heir to the Throne and we in America say God Save the King

Posted by PITHOCRATES - July 27th, 2013

Week in Review

Before the Americans declared their independence from Great Britain they tried to reconcile their differences with Great Britain.  For many believed Great Britain had the greatest form of government in the world.  A constitutional monarchy.  The form of government that vaulted the British Empire into a superpower.  And gave her people more rights and liberties than any nation in the world.

The Americans, rather, the British Americans, were proud to be British.  And would have remained proud members of the British Crown had it not been for the immense cost of the Seven Years’ War.  That the Parliament tried to pay for by taxing the American colonists.  For all the British Crown did to protect the Americans from the French and their Indian allies.  Not asking for much, really.  But the British taxpayers in Great Britain had representation in Parliament.  And had a say in that taxation.  But the British living in North America were not given that British right.  Which was the source of all the friction between the British Americans and Great Britain.  And what brought them to war.

Some of the fighting in the American Revolutionary War was brutal.  But the worst of it was between Patriot and Loyalist.  American against American.  In the civil war that raged in the South.  Which is why the United States and Great Britain resumed relations following the war.  There had plenty of issues but the post-war relationship was far better than any other nation that fought a civil war.  Why?  Because there is a Special Relationship between the British and the Americans.  We come from the same stock.  We share the same values.  And traditions.  The countries around the world that were once part of the British Empire are some of the most advanced nations in the world.  And their people have some of the greatest rights and liberties in the world today.  All because of our British past.

We may never bow to British Royalty again.  Because of our history.  But we can embrace the Royal Family.  Just as the British do.  For it is their tradition.  And a deep part of their glorious history.  As it is ours.  So we welcome the future king into the world.  We wish the best for him and the Royal Family.  And the British people.  Joining them in spirit when they shout God Save the King (see America’s embrace of the Royal Family demonstrates the enduring strength of the Special Relationship by Nile Gardiner posted 7/23/2013 on The Telegraph).

Despite the lukewarm and often insulting approach of the Obama administration towards Britain over the past four and a half years, the Special Relationship between the United States and Great Britain remains extraordinarily strong in terms of defence, intelligence, cultural and trade ties, and is uniquely important to the American people. No other nation in the world holds a place in American hearts as special as Great Britain. And Americans hold an overwhelmingly positive view of the British Royal Family. The most recent poll conducted in the United States on the British Monarchy – a CBS/New York Times poll back in April 2011 – showed that 71 percent of Americans believe the Royal family “is a good thing” for the British people, with only 15 percent against. In the same poll, the Queen held a 61 percent approval rating, at the time about 15 points higher than that of the US president.

There are defeatists who argue that Britain hardly matters anymore to the world’s superpower, and that the UK can only maintain influence in Washington through the lens of the EU. The huge US interest today in events thousands of miles away in London, and the tremendous support for the Royal Family suggests that the Special Relationship is far from dead. With good reason Americans admire the British for their uncompromising defence of tradition, their warrior spirit, and their willingness to uphold national sovereignty.

Britain matters.  And if the Eurozone collapsed as well as the EU they will matter more. Thanks to Margaret Thatcher.  Who reversed their slide into Socialism.  Unlike other European nations.  And of late, the United States.  Sadly.

President Obama insults our greatest friend and ally because Britain bucks the socializing of Europe.  Britain is often the lone rational voice in the European Parliament.  Currently that voice belongs to Daniel Hannan.  Who knows the history of Britain.  The United States.  And our Special Relationship.  Which is conservative.  Not liberal.  Which is why the Special Relationship is anathema to a liberal like President Obama.

God save the future king.  The queen.  The United States of America.  And our Special Relationship.

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Cowboy Coffee, Percolator and Electric Drip Coffee Maker

Posted by PITHOCRATES - June 26th, 2013

Technology 101

Done Right Cowboy Coffee is one of the Finest Cups of Coffee you will ever Have

The British love their tea.  They love it so much they call lunch ‘tea’ in Britain.  Their world stops when it’s time for tea.  As they place a kettle of boiled water, cups on saucers, milk, sugar and lemon on a tray and bring it in to a warm gathering of friends and colleagues.  Then prim and proper British gentlemen and ladies prepare their tea.  Sit with good posture.  And sip their tea with pinky extended.

The British brought their treasured tea to the New World.  And British Americans continued the tradition.  Until the Boston Tea Party and the Revolutionary War.  And the War of 1812.  Interrupting the British-controlled tea trade.  It was these events and a general dislike of all things British during those turbulent times that changed American tea drinkers into coffee drinkers.  Something we didn’t have to do with such dainty British manners.  As Americans were not quite as prim and proper.  Or refined.  Americans were more rough and tumble.  As epitomized by the American cowboy.  (Caution: The following clip from Mel Brooks’ Blazing Saddles has crude and sophomoric humor featuring cowboys breaking wind.)

Not quite the refined British tea.  Note the beverage they were drinking.  Hanging on the tripod over the campfire is a large coffee pot.  Where these cowboys make ‘cowboy coffee’.  Course coffee grounds go into the coffee pot.  Fill with water.  Place over campfire.  Heat water to just below a boil.  Carefully pour out coffee without stirring up coffee grounds from the bottom of the pot.  Enjoy.  Done right and it will be one of the finest cups of coffee you will ever have.  And something that really hits the spot on the trail after a long hard day.  Though not as refined as British tea it is just as comforting.

A Common Complaint about Coffee Percolators was that they made Bitter Coffee

Cowboy coffee can be delicious.  Or it can be horrible.  For temperature and brew time are critical in making coffee.  As well as the proportion of coffee grounds to water.  The proper temperature to brew coffee is between 195 and 205 degrees Fahrenheit.  This will release the oils from the coffee beans.  But if the temperature reaches boiling the coffee will be bitter.  So for good cowboy coffee you needed to put in just the right amount of ground coffee beans with just the right amount of water.  And keep the water just below the boiling point.  And once the coffee brewed you needed to drink it.  For sitting on the heat too long will just evaporate the water away leaving a strong, bitter, muddy water.

Around the time of the American Civil War we started using coffee percolators.  Where instead of placing ground coffee beans in a pot of water we dripped water through a basket that contained the ground coffee beans above the water.  In the center of this basket was a tube that went from the bottom of the percolator to the top.  We placed this percolator onto the stove.  This heated the water.  As the temperature rose the water expanded.  The water in the narrow tube expanded so much in that small tube that it pushed all the way up and out at the top of the tube.  And dripped onto the top of the coffee grounds.  Dripped through them.  And out the bottom into the heated water below.

This cycle continued over and over until the water in the pot started getting darker.  The top of the pot, above the tube, was a glass knob.  Which we could see through.  And observe the color of the water percolating up from the bottom of the pot.  When it turned to the appropriate ‘coffee color’ we removed the percolator form the stove.  And served the brewed coffee.  Using a stove, though, made it easy to boil the water.  Which would make the coffee bitter.  A common complaint about percolators.  As well as some coffee grounds that passed through the basket into the pot.  And poured into our cup.  But some preferred the full robust flavor percolating gave.  Even if it was bitter from overheating the water.

A Quality Electric Drip Coffee Maker can pour 195-205 Degree Water over Coffee Grounds in under 8 Minutes

Thanks to Nikola Tesla and his AC power Americans soon had electricity in their homes.  And a whole sort of electric appliances to use with that electricity.  Including an electric coffee percolator.  Which reduced the chances of boiling the water by controlling the temperature of the water.  There was a temperature sensor that shut off the heating element if the water temperate approached boiling.  When the temperature fell below the optimum temperature range (195-205 degrees Fahrenheit) the temperature sensor turned the heating element back on.  Making it easier to make a good cup of coffee in the home.  Until the Seventies came around.  And the electric drip coffee maker.

The electric drip coffee maker is a staple of most American kitchens today.  It is now the way we make coffee at home.  By heating water to an appropriate temperature and dripping that heated water through a coffee filter full of ground coffee beans.  Once brewed the coffee drips into a carafe.  Which sits on a warming plate.  Unlike the percolator which sent brewed coffee back through the basket holding the coffee grounds over and over again.  The electric drip coffee maker has a reservoir of cold water.  At the bottom of this reservoir is a tube with a check-valve.  Which allows water to flow only one way through the valve.  Past this check-valve is a horseshoe-shaped metal tube.  Attached to this metal tube is a heating element.  Past this metal tube is a hose that runs up to the top of the coffee maker.  And out through a spray-head onto the coffee grounds.

As the heating element heats the water in the metal tube it expands.  Because it can’t go back into the reservoir thanks to that check-valve the water rises up the tube and out through the spray-head.  As the water moves up the tube the siphon it creates pulls water from the reservoir through the check-valve into the metal tube.  When it heats and expands it rises up the tube to the drip-head.  And this cycle repeats again and again until the water reservoir is empty.  A temperature sensor turns the heating element on and off to maintain the proper water temperature.  Like the electric coffee percolator.  But the addition of a coffee filter prevents any grounds from ending up in our cup.  Also, a well-designed drip coffee maker can pour this properly heated water over the coffee grounds in under 8 minutes.  Another key to making an excellent cup of coffee.  Other advances include a timer.  Allowing us to set up the drip coffee maker the night before so we can have a freshly brewed cup of coffee first thing in the morning.  So we can grab a cup on the way out the door.  American style.  In a hurry.  Unlike the British.  Who stop the world when it’s time for tea.

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FT166: “Multiculturalism celebrates are differences while breeding anti-American terrorists.” —Old Pithy

Posted by PITHOCRATES - April 19th, 2013

Fundamental Truth

The Entrepreneurial Spirit gave America the Economic Prowess to spend the Soviet Union into the Ash Heap of History

Immigrants used to come to the United States with great enthusiasm.  They were excited that they were going to be an American.  They wanted to assimilate.  They learned their American history.  Better than most people born in the United States.  When they took the oath of citizenship a euphoric joy filled them.  For having fulfilled their greatest dream.  If they heard their family members speak the language of their birth country they rebuked them sternly.  And told them, “We’re American now.  Speak English.”

Yes, there was great pride in becoming an American.  As immigrants saw America as Ronald Reagan saw it.  A shining city upon a hill.  Whose beacon light guides freedom-loving people everywhere.  People in the Old World yearned for the freedom of the New World.  Religious freedom.  Freedom from an oppressive government.  Economic freedom.  Where everyone had the same chance to be whatever they wanted to be no matter who their parents were.  For in America there was no privilege.  Just hard work.  And the ability to keep the fruit of all your labors.  This is the American dream.  This is why they came to this shining city upon a hill.

Immigrants wanted to assimilate.  They wanted to think of themselves as Americans.  For it meant something.  Something special.  It meant you were a citizen of the greatest country in the world.  For individual liberty unleashed great prosperity.  An entrepreneurial spirit.  American ingenuity.  Making America the leader in new technology.  Making work less tedious.  And life more enjoyable.  Giving America the highest standard of living.  Great food surpluses that let America feed the world.  And the military power to defeat Nazism and stand up to communism.  And the economic prowess to spend the Soviet Union into the ash heap of history.

Our Public Schools teach our Children that we Stole the Land from the Native Americans and got Rich on Slave Labor

People came to America to be Americans.  They remembered their culture.  But their culture did not identify who they were.  They were Americans.  Not hyphenated Americans.  As Theodore Roosevelt said, “In this country we have no place for hyphenated Americans.”  We were not Italian-Americans.  We were not Polish-Americans.  We were not Irish-Americans.  We were not German-Americans.  We were Americans.

Our public schools once taught our children about the Founding.  The abuses of European monarchies.  Unjust taxation.  And the perverse powers of privilege.  Things the Founding Fathers found abhorrent.  The Founding Fathers knew the history of Greece and Rome.  King John and Magna Carta.  And the English Civil War was not that distant from their time.  They were students of the Enlightenment.  They read Adam Smith.  Believed in laissez-faire economics.  And championed limited government.  When they formed a new country they drew from this vast pool of knowledge.  And made the greatest country in the world.  One with religious freedom but based on Judeo-Christian values.  A country so great that rulers of other nations wanted to hinder its ascension to further greatness.  While the people living under those rulers wanted to be Americans.

This experiment in self-government had some growing pains.  We were not perfect.  But we were far more perfect than any other government out there.  But our public schools don’t teach that today.  Instead, they teach our children that the Founders stole the land from the Native Americans.  That we stole our southern land and California from the Mexicans.  Who gained their independence from Spain who colonized these lands.  Land they had stolen from the native people who were living on it at the time.  (Interestingly, when the Mexicans gained their independence from a European power the land belonged to the Mexicans.  But when the Americans gained their independence from a European power the land belonged to someone else.)  That we stole Cuba and the Philippines from the Spanish.  Who stole it from the people living on these lands when they arrived and stole it.  Yet it is the Americans who were an imperialist power stealing land.  Never the Mexicans or the Spanish.  And, of course, that America grew rich and powerful thanks to free slave labor.  Despite that very same economic system causing the South to lose the American Civil War.

The American Educational System failed to make Dzhokhar Tsarnaev NOT burn with a Seething Hatred of America

Then the attacks on capitalism came.  The system that made America great.  All of a sudden it was unfair.  It was unjust.  And it exploited the poor to help the rich get richer.  A better system was socialism.  For it was fair.  It was just.  Because it put people before profits.  (Just ask those who lived in the Soviet Union, the People’s Republic of China under Mao, North Korea, Cuba and the people who lived behind the Iron Curtain in Eastern Europe how wonderful it was to live where they put people before profits.  Here’s a hint.  A lot of these people were shot while trying to escape their social utopia).  Unlike the most evil thing in the world.  The corporation.  Who underpaid their workers.  Raped the land of its natural resources.  And polluted the environment.  So not only were they evil for pursuing profits they were evil for exploiting both people and the planet.  So we needed more government to regulate capitalism.  And those evil corporations.  So our children learned the evils of capitalism and the goodness of government in our public schools and universities.  Where their teachers and professors taught them all of the badness of the United States.  While glossing over all of its goodness.  Imbuing some shame into our students for being American.  Even making some burn with a seething hatred of the United States.

And so began the diversity movement.  And multiculturalism.  If America was so shameful we should not celebrate what unified us as Americans.  But we should celebrate our differences.  We no longer celebrated the things people immigrated to the United States for.  But the things they fled in the countries they emigrated from.  We are no longer Americans.  We are now hyphenated Americans.  And it was the thing preceding the hyphen that made us great now.  Not being American.  Because America had a shameful past.  And had a long way to go to atone for her sins.  Making a lot of hatred of America now home-grown.  Especially in the American universities.  Where radicals from the Sixties who wanted to overthrow capitalism and replace it with socialism now write the curriculum.  And these radical professors disparaged judgmental Christianity every chance they could.  For they liked the sex and drugs of their Me generation.  Mocking the Judeo-Christian values that made America great.  Something those who were not Christians ate up.

So the American university system is a hotbed of anti-American sentiment.  Perhaps explaining why some of the greatest terrorist attacks on American soil were perpetrated by people educated in the United States.  Such as Khalid Sheikh Mohammed.  Architect and mastermind of a series of terrorist attacks.  Including the attacks on 9/11.  Who attended college in North Carolina.  Earning a degree in mechanical engineering.  And Anwar al-Awlaki.  Who earned a degree in civil engineering from Colorado State University.  He also studied education leadership at San Diego State University.  And worked on a doctorate at George Washington University.  Then moved to Yemen and became the Osama bin Laden of the Internet.  And then we have the Boston Marathon bombers.  Dzhokhar and Tamerlan Tsarnaev.  Who immigrated to the United States about a decade ago.  With Dzhokhar being so young he probably has no memories of his native Chechnya.  A hotbed of radical Islamist terrorism.  Locked in a bitter war with Christian Russia.  Where barbarous acts in that conflict have rivaled the atrocities of the Eastern Front in World War II.  Yet he burned with such a seething hatred of an America founded on Judeo-Christian values that he could place a bomb next to an 8 year old child.  A seething hatred he learned from someone while living in America.  Either directly from the American educational system.  Or indirectly as that educational system failed to make him NOT burn with a seething hatred of America.

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States’ Rights, Debt, Interstate Commerce, Russia, Barbary Pirates, Spain, Britain, Shays Rebellion and Miracle of Philadelphia

Posted by PITHOCRATES - July 19th, 2012

Politics 101

After Winning their Independence from Great Britain the Common Enemy was no more Leaving them Little Reason to Unite

The South lost the American Civil War for a few reasons.  Perhaps the greatest was the North’s industrial superiority.  Her industry could make whatever they needed to wage war.  While the South suffered behind the Union’s blockade.  Unable to trade their cotton for the means to wage war.  And then there was the fact that the North was united.  While the states’ rights issue that they were fighting for prevented the South from being united.  The southern states (whose governments were dominated by the planter elite) did not like the federal government in Washington (except when they forced northern states to return southern slaves).  And as it turned out the states didn’t like the federal government in Richmond any better.  They fought Jefferson Davis from consolidating his power.  They put the states’ interests ahead of the national interest.  Such as winning a war to secure their states’ rights.  And any supplies a state had they wouldn’t share them with another state.  Even if they had a warehouse full of surplus shoes while troops from another states fought barefoot.

So the North won the American Civil War because they were united.  They had an advanced economy based on free market capitalism and free labor.  And they were wealthy.  Basically because of the prior two statements.  But it wasn’t always like this.  The United States of America is a large country.  Even before it was a country.  When it was only a confederation of sovereign states.  With independent republican governments.  Still it covered great tracts of land.  Allowing the states to keep to themselves.  Much like it would be some 75 years later in the South.

After winning their independence from Great Britain the common enemy was no more.  And they had little reason to unite.  Which they didn’t.  For the several states included a lot of disparate people.  Who agreed on little with the people beyond their state’s borders.  Which was one of the criticisms of republican government (i.e., an elected representative government).  And one held by perhaps the greatest influence on the Framers of the Constitution.  French philosopher Charles de Montesquieu.  Who believed that the larger the geographic size the more dissimilar the people’s interest.  And therefore making republican government more difficult.  As it was too difficult to arrive at a consensus with such a large electorate.  Which James Madison disagreed with, making this a heated topic during the Constitutional Convention and the ratification process.  But before that convention it would appear to be incontrovertible.  The United States were anything but united.

The Americans defeated one Distant Central Power and were none too keen on Answering to a New Central Power

The first American identity appeared in the Continental Army.  Where soldiers came from different states and fought together as Americans.  General Washington fostered this spirit.  Forbidding any anti-Catholic displays.  One thing that all the Protestant American colonists enjoyed.  No matter which state they came from.  But to fight the British Empire they needed a large army drawn from all the states.  And to get the French Canadians living in British Canada to join them they needed to embrace religious freedom.  Even for Catholics.  Which was even more important if they had any chance of getting support from the most likely foreign power.  The eternal enemy of Britain.  Catholic France.  Washington, as well as those who served in the Continental Army, understood the success of their cause required less infighting and more uniting.  That it was imperative to set aside their sectional interests.  Only then could the new nation join the world of nations.  Strong and independent.  And avoid the European nations pulling them into their intrigues.

But of course that wasn’t going to happen.  After the war no one called themselves American.  Except for a few.  Like Washington.  And some other veterans of the Continental Army.  No.  The country people belonged to was their state.  Thomas Jefferson, the author of the Declaration of Independence, called Virginia his country.  As did most if not all of the Patriots of ’76.  The war was over.  They defeated the distant central power.  And they were none too keen on a new central power to answer to.  Even if it was on their side of the Atlantic.  To these Revolutionary Patriots the Continental Congress was just another foreign legislature trying to infringe on their sovereignty.

The national congress had no power.  Delegates didn’t always show up leaving the congress without a quorum.  Which didn’t matter much as they couldn’t pass anything when they had a quorum.  For any legislation they wanted to pass into law required a unanimous vote of all thirteen states.  Which rarely happened.  They couldn’t levy taxes.  Which meant they couldn’t fund an army or navy to protect their states from foreign aggressors.  Or protect their international trade on the high seas.  Which was a problem as the British no longer provided these services.  And they couldn’t repay any of their debts.  Their prewar debt owed to a lot of British creditors (which they had to repay according to the treaty that ended the war and gave them their independence).  Or their war debt.  States owed other states.  And the Congress owed foreign creditors in Europe.  Especially their war-time ally.  France.  Who they owed a fortune to.  The states charged duties and tariffs on interstate commerce.  They made their own treaties with the Indians.  Some states defaulted on the debt they owed to out of state creditors.  States even fought each other over land.  The Untied States were anything but united.  And it showed.

The Delegates of the Continental Congress agreed to meet in Philadelphia in 1787 to revise the Articles of Confederation

Europe watched the Americans with amusement and contempt.  The Americans didn’t get much respect from Catherine the Great, tsarina of Russia.  The ruler of the world’s largest country viewed the Americans as a bit uppity and not worthy to join the European courts.  Besides, she was more interested in expanding her powers into Turkey.  And into Poland.  Who caught some of that spirit of liberty from the Americans.  That Catherine wanted to squelch.  Making her less of an America fan.  But it wasn’t only Russia.  The Barbary pirates were targeting American shipping in the Mediterranean.  Selling their crews to the slave markets of North Africa.  Western settlers using the Mississippi River to ship their produce were denied passage through the Port of New Orleans by Spain.  The British refused to vacate their forts in the Northwest.  Even worked with the Indians to cause some mischief in the borderlands.  Why did the Europeans do these things?  Because they could.  For the Americans could not stop them.

To make matters worse the Americans were drifting towards civil war.  The northern provinces were talking about leaving the confederation and forming their own.  The North feared the South would do the same.  Even aligning itself more with Europe than the American states.  Meanwhile the economy was tanking.  Trade was down.  People were out of work.  Farmers were unable to pay their debts.  Even losing their farms.  In western Massachusetts Daniel Shays gathered together disgruntled veterans and rebelled.  Again.  Only this time it wasn’t against the British.  It was against the legal authorities in Massachusetts.  Shays Rebellion spread to other states.  And grew violent.  Massachusetts asked the Continental Congress for help.  And the Congress asked the states for $530,000 to raise an army to put down the rebellion.  Twelve of the thirteen states said “no.”

With no other choice Massachusetts went to rich people for funding.  Used it to raise a militia of some 4,400 men.  In time and after some bloody fighting they put down this rebellion.  But some of the rebels continued a guerilla war.  Making many in the new United States live in fear.  Washington, despondent of what was happening to the republic he had fought for so long to secure, pleaded, “Let us look to our national character and to things beyond the present moment.”  And so they did.  The delegates of the Continental Congress agreed to meet in Philadelphia in 1787.  To revise the Articles of Confederation.  To reign in the chaos.  To get their finances in order.  And to gain the respect of the world of nations.  But to do that would require s stronger central government.  And that is exactly what emerged from Philadelphia.  So they did what the Confederates did not do nearly 75 years later.  Which is the reason why they lost the American Civil War.  Because of an ideal.  States’ rights.  That was so absolute that it weakened the Confederacy to the point she could not survive.  Something the Miracle of Philadelphia prevented in 1787.  Which left the states sovereign.  And the new federal government only governed that which extended beyond the states’ borders.  And it worked well.  For some 75 years.  When it hit a road bump.

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Treason, Benjamin Franklin, William Franklin, Reconciliation, Hutchinson Letters, Boston Tea Party, The Cockpit, Patriot and Loyalist

Posted by PITHOCRATES - May 10th, 2012

Politics 101

The Hutchinson Letters and the Tea Act put the Americans firmly on the Path to Independence

There’s a fine line between treason and loyalty.  Some people cross that line.  Some people don’t.  Some people wait to see which side of the line their best interests lay.  Some like to straddle the line.  Either unable to commit.  Unwilling to commit.  Or unwilling to give up profiting from both sides of that line.  Such it was during the American Revolutionary War.  A very unique conflict.  That pitted colony against mother country.  New World against Old World.  American against Brit.  Brit against Brit.  And American against American.

The American Revolutionary War was a smorgasbord of antagonism.  What started out as a dispute over taxation escalated into world war.  And into civil war.  To settle old scores.  And to settle new ones.  Upon the signing of the Declaration of Independence the American colonies were in open rebellion against their sovereign.  The ultimate act of treason.  Yet they committed this act of treason to live a more British life.  For Britain’s constitutional monarchy gave unprecedented rights to British subjects.  And the highest standard of living then known to a middle class.  Most knew what the rest of the world was like.  And they wouldn’t trade their British way of life for any other.  So rebellion undoubtedly made a great many nervous.  For many were happy and comfortable living under the British sovereign.  Benjamin Franklin, for one.

Franklin was a Loyalist.  At first.  He knew how to work the system.  And did.  Even achieving the post of American postmaster.  And he made it profitable.  Very profitable.  Even his son, William Franklin, was governor general in New Jersey.  So he was very connected to the British Empire.  And saw it as the best system of government ever developed.  Which is why he sought reconciliation.  He was in England when tensions were increasing between the colonies and the mother country.  He then came into the possession of some private correspondence that he passed along to his contacts in Massachusetts.  The Hutchinson letters.  As in governor general of Massachusetts Thomas Hutchinson.  Which basically said that the way to subdue the unrest over recent Parliament actions (i.e., taxation without representation) was to deprive the colonists of some of their English liberties.  Franklin asked that they not publish these letters.  His intent was to calm the more radical in America.  Proving that these misguided policies were the result of some bad advice from a few people.  There was no general animosity towards the American colonies in Great Britain.  And that reconciliation was possible.  Which is what Franklin wanted.  But they published the Hutchinson letters.  And the Americans were not pleased.  Then one thing led to another.  After Parliament passed the Tea Act Franklin was anxious of the American response.  Hoping for calm.  But the response was anything but calm.  And did nothing to aid reconciliation. 

The Humiliation in the Cockpit helped Push Franklin from Reconciliation to Independence

When the first tea arrived following the Tea Act the Patriots threw it in Boston Harbor.  Forever known thereafter as the Boston Tea Party (1763).  This destruction of private property shocked Franklin.  For this was not an act against Parliament.  But an act against a private company.  The East India Company.  This did not go over well in England.  Which was pretty agitated over the publication of those private Hutchinson letters.  People accused each other of being the source of the leak.  It got so bad that two men dueled in Hyde Park.  Each blaming the other for the dishonorable act of leaking those private letters.  Not being a very good duel both men survived.  When they were going to have at it again Franklin publically stated that he was the leak.  Explaining his intentions. 

Though Franklin sought reconciliation he had his enemies in England.  Who thought he was more of rabble rouser on the other side of the pond.  And pounced on this opportunity to disgrace him.   They summoned him to appear before the Privy Council.  On the pretense to hear testimony on the petition from the Massachusetts Assembly to remove Hutchinson as governor general.  But when Franklin arrived in the ‘Cockpit’ he found that he was on trial.  For leaking the Hutchinson letters.  News of the Boston Tea Party had by then reached England.  And the newspapers attacked Franklin without mercy.  All of England was turning against the man who wanted reconciliation more than any American.  It even looked like Franklin could end up in an English jail. 

It was an all out assault on Franklin in the Cockpit.  Where his enemies packed the room.  While few of his friends sat in.  Such as Edmund Burke.  Lord Le Despencer.  And Joseph Priestly.  One after another his enemies took their turn lambasting Franklin.  Blaming him for the agitation in the American colonies against British rule.  They attacked him personally.  And besmirched his honor.  Humiliated him.  During it all Franklin stood silent.  Refusing to partake in this farce.  When Wedderburn called Franklin as a witness his counsel stated that his client declined to subject himself to examination.  In the end they rejected the Massachusetts petition.  And his friend Lord Le Despencer had no choice but to relieve Franklin from his post as American postmaster.  He wrote his son William and urged him to quit his post as governor general of New Jersey in order to pursue more honorable work.  He would not, though.  And thus began the breach between father and son.

Franklin and William were no longer Father and Son but Patriot and Loyalist

William would stay loyal to the crown.  While Franklin was moving closer to the side of the Patriots.  In response to the Boston Tea Party Britain planned a blockade of Boston Harbor.  In response the colonies united behind Boston and formed the First Continental Congress.  Which William said was a mistake.  And that Boston should make good on the tea they destroyed.  Which would be the best way to calm the situation.  And reopen Boston Harbor.  Exactly what Franklin had earlier suggested.  But after the Cockpit and the loss of his post as postmaster Franklin was losing his love for the British Empire.  But he still tried while he remained in England with no official duties.  He even played chess with Caroline Howe.  Sister of Admiral Richard Howe and General William Howe.  Who would later command the British naval and military forces in the opening of the Revolutionary War.  But at the time they were both sympathetic to the American cause.  Despite of his shameful treatment in the Cockpit she and other friends urged him to put pen to paper.  And try to mediate a peaceful solution to the breach between the American colonies and Great Britain.  He tried. 

But all efforts came to naught.  He worked on a bill with Lord Chatham.  Which Lord Sandwich attacked with a fury when introduced into the House of Lords.  And they publicly attacked Franklin again.  They rejected the bill.  And Franklin booked passage home.  He met with Edmund Burke before leaving.  Discussed with him one last plea for reconciliation.  He spent his last day in London with his friend Joseph Priestly.  And discussed the future.  The coming war.  Reading the papers.  Priestly later wrote that the thought of that dismal future brought Franklin to tears.  After Franklin was on a ship sailing west Burke rose in Parliament and gave his famous speech On Conciliation with America. Where he said, “A great empire and little minds go ill together.”

The move to independence accelerated after arriving home.  Thomas Paine, who Franklin helped to bring to America, wrote Common Sense.  Which Franklin read before it was published.  Even offered a few revisions.  As he would offer later to Thomas Jefferson’s Declaration of Independence.  Then the Continental Congress scheduled a vote for independence.  General Washington was preparing to fight General William Howe on Long Island.  Supported by his brother Admiral Lord Richard Howe.  Who made one last attempt at conciliation with Franklin.  But things had already progressed too far.  Franklin had crossed that fine line.  The time for peace had passed.  On June 15, 1776, the new American provincial government in New Jersey ordered the arrest of William Franklin.  On the day of his trial Benjamin Franklin wrote General Washington.  He did not mention William.  Nor did he say anything when the Continental Congress voted to imprison him in Connecticut.  The breach between father and son was complete.  No longer father and son.  But Patriot and Loyalist.  As families throughout the colonies similarly tore asunder.  Setting the stage for the civil war within the world war that was the American Revolution.

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Continental Army, Continental Congress, Inflation, Wage & Price Controls, Paper Money, Specie, IOUs, Impressment and Repudiation

Posted by PITHOCRATES - May 3rd, 2012

Politics 101

The Articles of Confederation made the United States of America a Confederacy of Sovereign States that had Little Power to Raise Revenue

By the time the Continental Army left Valley Forge they could hold their own against the British Army.  The British couldn’t push them around any longer.  They became so good that they fought the war to a standstill.  They came close to some major wins on the field of battle.  But close didn’t diminish the staying power of the British Army.  And they stayed.  On the battlefield.  And in their cities.  Dragging the conflict out for a total of 8 years.  And no matter what era of warfare you use to measure war-years 8 years of war is very costly.  Someone has to pay for it.  And, ultimately, it’s the people.  Either through taxation.  Or the loss of wealth through inflation.  Or simply the loss of wealth through the losing of your stuff.  And going without.  Because the army fighting for your liberty had no choice but to take what was yours.

This made the Revolutionary War unlike other wars.  For this war was about liberty.  Property rights.  The tyranny of a distant power.  And unjust taxation.  In other words this war was against all the things that made fighting a war possible.  You can’t really draft men to fight in a country that stands for liberty.  You just can’t confiscate the things you need to wage war from your people in a country built upon the principle of property rights.  You can’t declare martial law and suspend the rule of law on people you deem not to be patriotic enough in supporting the cause when you’re fighting the tyranny of a distant power that does.  (Even the Americans gave British soldiers a fair trial for the Boston Massacre).  And taxes?  The people that dumped tea into Boston Harbor over the principle of no taxation for revenue purposes without representation in Parliament was not going to be able to tax their people on a federal level.  Which proved a big obstacle in paying for the war to win their liberty.

The Articles of Confederation made the United States of America a confederacy of sovereign states.  And those sovereign states held the real power.  Virginia.  Massachusetts.  Pennsylvania.  New York.  And the other 9 sovereign states.  Not the United States of America.  That confederation that was waging war against the mightiest power in the world.  Which made raising funds difficult.  For without the power to levy taxes all they could do was ask.  Just like George Washington did all of the time.  Especially during that horrible winter at Valley Forge when his army was naked and starving.  He asked the Continental Congress for provisions.  And the Continental Congress asked the several states for their apportioned funds raised by their state legislatures.  Per the Articles of Confederation.  If they didn’t pay these funds timely or in full (or at all) they could ask again.  And that’s all they could do.  Which is why George Washington’s army suffered through that horrible winter.  Because the funds weren’t there to buy Washington the provisions his army needed.

Thanks to Inflation the Continental Army often had No Choice but to Take what they Needed from the People they were Fighting For 

The Americans never had enough money.  Which makes it amazing that they held off losing for 8 years.  Eight very costly years.  And won.  Especially considering how bad the economy was during the war.  Unable to tax or get sufficient loans from Europe they had little choice but to print money.  Which caused a whole lot of trouble.  For the more money they printed and put into circulation the more the value of their currency fell.  And soon a Continental was “not worth a Continental.”  And when the currency lost its value it took more of it to buy things.  Which led to price inflation.  The price of material and parts grew so high that it increased the cost of American manufactured muskets over the cost of imported French muskets.  Which they had to bring in through a British blockade.  Giving what should have been a cost advantage to the Americans.  Had it not been for the inflation.

To try and keep prices under control they implemented wage and price controls.  Which didn’t work.  The continued devaluation of the currency forced sellers to raise their prices to cover their rising costs.  Forcing them to sell below their costs would just put them out of business.  Voluntarily.  Or involuntarily.  Creating shortages in the market place.  Some offered lower prices for specie (gold and silver coins).  You can’t print hard money (specie).  So it held its value.  Unlike the paper money.  So a little of specie went a long way compared to paper money.  Of course, this didn’t help their wage and price controls.  It just made the paper more worthless.  And raised prices further.

There was yet another ugly side to this sordid business.  High prices and shortages created opportunity to profit handsomely.  There was speculation and market manipulation (hoarding, cornering the market, etc.) to take advantage of those highly priced items that were in scare supply.  Further raising prices for the people.  And compounding the problems of provisioning the army.  Which infuriated the low-paid soldiers.  Who the Continental Congress paid in that worthless paper money.  Angry mobs arose to address this profiteering.  As well as new laws and enforcement.  But they helped little.  The army often had no choice but to take what they needed from the people they were fighting for.  Either outright.  Or in exchange for IOUs.   Promises that the Continental Congress of the United States of America would make good on.  Just as soon as the several states paid their apportioned funds raised by their state legislatures. 

If you Violate the Ideals you’re Fighting for while Fighting for those Ideals it can Complicate the Peace

Fighting for an ideal makes war complicated.  If you’re just a tyrannical dictator looking to rape and pillage it makes things easier.  You don’t have to worry about liberty.  Property rights.  Debt.  Or taxes.  In the short term.  Or the long term.  Which made the American Revolutionary War a very difficult war to fight.  Because at the heart of the United States of America were those ideals.  To win this war to grant liberty to the people required taking their liberty away.  A little.  To win this war to guarantee property rights you had to violate property rights.  A little.  To win this war against tyranny you had to use excessive force against your people.  A little.  To win this war to establish taxation only with representation caused the destruction or personal wealth.  A lot.  Through impressment (taking things from the people).  Borrowing from foreign countries.  Or through inflation.

When the French joined the Americans in 1778 inflation was already out of control.  They printed twice as many Continentals in 1778 as they did in the last three years combined.  And there was serious discussion about doing the unthinkable.  Repudiation.  To simply escape the inflation by escaping the currency.  To retire the bills from circulation.  At a fraction of their value.  And that’s what they did in 1780.  Issuing new currency based on specie for the old currency at a 40 to one ratio.  The states were to tax their people to raise the funds for the new currency.  So the people took a huge short-term loss.  For a stable long-term future.  Based on specie.  That they couldn’t inflate.  This hard money would come from in large part the Spanish and the French.  The Spanish in Cuba buying American flour with specie.  And French aid.  As well as their army and navy spending their hard money in the American economy.

Wars are costly.  And they are rarely nice.  Trying to make them nice can make them last longer.  Which will make them more costly.  Of course, if you violate the ideals you’re fighting for while fighting for those ideals it can complicate the peace.  Luckily, for the Americans, they won their peace.  Their allies, the French, were not so lucky in their revolution.  The French Revolution.  Fought less than a decade after the American Revolution came to a close.  And unlike the Americans the French peace that followed was a bloody one.  That would eventually replace the king they executed with an emperor.  Napoleon Bonaparte.  Who the Americans helped bring to power in part due to the crushing debt King Louis XVI incurred supporting the Americans in their revolution.

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Benjamin Franklin, Bon Homme Richard, John Paul Jones, Whitehaven, Dominica, Rhode Island, Count d’Estaing, Anti-French Riots and Serapis

Posted by PITHOCRATES - April 26th, 2012

Politics 101

The First French Action in the New World that was in Support of their New American Allies was in Rhode Island

The French loved Benjamin Franklin.  He was America personified.  They loved his science.  And his Poor Richard’s Almanac.  In 1779 King Louis XVI of France bought a merchant ship from the French East India Company and gave it to the Americans to use in their common war with Great Britain.  The U.S. captain fittingly named the Duc de Duras the Bon Homme Richard.  Which translates to Good Man Richard.  Richard as in Poor Richard’s Almanac.  To make it a favorite of the French.  Who were already quite enthused by this young American captain.  Who was a Scotsman by birth.  John Paul Jones.  From his actions off (and on) the British coast the previous year.  In the first year of the Franco-American alliance in the American Revolutionary War (1775–1783).

With the French on board Benjamin Franklin wanted to capitalize on this new alliance.  With friendly ports on the far side of the Atlantic Franklin instructed John Paul Jones to harass the British coast.  To bring the war home to the British people.  And that’s exactly what Jones did.  Then in command of the Ranger.  Coming ashore at Whitehaven in April of 1778.  A seaport on the north east coast of England.  His intent was to set fire to the ships and port facilities.  To disrupt British shipping.  He didn’t do the great damage he had hoped.  But it really brought the American Revolutionary War to British soil.  And the British were not amused.  But the French were.

The French were eager to get some payback for their embarrassing defeat in the Seven Years’ War (1756–1763).  And to recover some of their lost New World territories.  Beginning in the West Indies.  On the island of Dominica in September of 1778.  The first of a series of victories in the West Indies where the French navy began helping the Americans in their War of Independence.  By taking these islands from the British.  Which helped the Americans by keeping the British busy.  And depriving the Royal Navy of some useful ports.  But these actions benefited the French more than the Americans.  Which was keeping with French interests in joining this war.  Payback for their prior defeats at the hands of the British.  And regaining lost territory.  The first French action in the New World that was in support of their new American allies was in Rhode Island.  In the first Franco-American combined action in the war.  Which didn’t go well.  Or end well.

The French arrive with a Fleet Including some 16 Warships and about 4,000 French Soldiers

1777 ended well for the Americans.  They defeated a British Army at the Battle of Saratoga.  Because of this the French joined in alliance with the Americans in their war against Great Britain.  Valley Forge followed.  Which was pretty horrible.  But Baron von Steuben drilled the Continental Army.  Made them as good as any European Army.  And when General Clinton was moving his army from Philadelphia back to New York in the Spring Washington wanted to go on the offensive.  His chance came at the Battle of Monmouth.  Washington ordered an attack on the rearguard of Clinton’s army.  General Charles Lee hesitated.  Then ordered a retreat.  Which Washington turned around.  As had the British in their retreat to New York.  The Americans and the British then engaged in a long day of attacks and counterattacks.  Stopping only after exhaustion set in.  Von Steuben’s trained Continental Army fought the British Army to a draw.  As impressive a feat as the win at Saratoga.  Perhaps more so.  And so close to a win.  Had Lee followed Washington’s orders perhaps it would have been.  But, alas, it wasn’t.  And in the morning the British were gone.

The French were on their way.  But they did not arrive early enough to prevent Clinton from getting his army across to Manhattan.  But the appearance of the French fleet did paralyze the British into inaction.  The French fleet included some 16 warships and about 4,000 French soldiers.  With some 50,000 British regulars in New York surrounded by a fleet of 100 or so made New York NOT the best place to test the grand Franco-American alliance.  Instead the first test of that grand alliance would be in Newport, Rhode Island.

The plan was to land the French soldiers to join an American force to assault the British forces with the support of the guns of the French fleet.  What happened was a tragic comedy of errors.  A militia force arrived late.  While the Franco-American force was waiting a British naval squadron appeared.  Count d’Estaing, the French naval commander, re-embarked the French troops and prepared for battle.  Then a violent storm blew in.  Scattering the opposing naval forces.  The British then limped back to New York to refit.  And the French limped to Boston to refit.  The American commander was furious at the French.  He published an order condemning the French.  American morale fell.  Militia went home.  The British seeing this decided to attack.  The Americans held their ground.  Fought to another draw.  Then slipped away under the cover of night.  Yet another missed opportunity.

When the Serapis asked the crippled Bon Homme Richard if she was striking her colors Jones replied, “I have not yet begun to fight.” 

The Americans were not amused with the French actions.  Anti-French riots broke out in Boston where the French fleet was refitting.  All the old animosities from the previous war resurfaced.  When the Americans fought alongside the British against the French.  It took the combined efforts of d’Estaing, John Hancock, Nathanael Greene and Alexander Hamilton to maintain the peace between the Franco-American alliance in Boston.  Their counterparts in Charlestown, South Carolina, were not so successful.  Where the French and the Americans fired upon each other with cannon and small arms.  And there was blood.  Dead and wounded.  Not the greatest of beginnings between the grand alliance.

While the French fleet failed to pay any dividends for the Americans some other naval action was.  Harassing the sea lanes between London and the West Indies.  Causing great headaches to British commerce.  Harassing the fisheries off of Nova Scotia.  Capturing enemy ships.  And who was doing all of this damage to the British fleet?  And to British pride?  That Scotsman fighting for America.  John Paul Jones.  Who did not know the meaning of the word ‘surrender’.

In September of 1779 Jones came into contact with a convoy of 40 British merchant ships coming from the Baltic under the protection of the 44-gun Serapis and the 28-gun Countess of Scarborough.  Jones commanded a 4-vessel squadron including the Bon Homme Richard and the Alliance captained by French Captain Pierre Landais.  And engaged.  The battle lasted some three and a half hours.  And into the night.  The Bon Homme Richard and the Serapis rammed into each other yet still continued the fight.  The Alliance fired broadside after broadside into the Bon Homme Richard and yet Jones continued the fight.  When the captain of the Serapis asked the crippled Bon Homme Richard if she was striking her colors (surrendering) Jones reportedly replied, “I have not yet begun to fight.”  And he kept fighting until the captain of the Serapis struck his colors sometime after 10 PM.

Again, not an auspicious start for the Franco-American grand alliance.  But a pretty impressive one for a nearly nonexistent U.S. Navy.

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Declaration of Independence, George Mason, John Adams, State Constitutions, Constitutional Convention, Thomas Jefferson and Virginia Statue of Religious Freedom

Posted by PITHOCRATES - March 15th, 2012

Politics 101

The Declaration of Independence declared that Government should be By the People, Of the People and For the People 

Tearing down the old order is one thing.  Building a new one is something completely different.  For there’s been a lot of tearing down throughout history.  And rarely does peace and prosperity spontaneously follow.    Which is something that no doubt weighed heavily on the minds of those who voted on July 2, 1776, to declare formerly their independence from Great Britain.  What, exactly, were they to do next?  The most powerful navy and army in the world no longer protected them.  Instead, they were now the enemy of the most powerful navy and army in the world.  Which meant they couldn’t protect themselves.  Their international trade on the high seas.  Or even protect their own people from each other.  For if the British constitutional protections no longer applied to them, what did?  Anything?  Or would anarchy rule?

The Americans declared independence because they were not getting equal treatment under British law.  Much of which they liked.  The execution of it is what they had a problem with.  That and the built-in privileges for some.  And, of course, the established state religion.  Which made many of them come to the colonies to escape in the first place.  So there was a lot in British law they could use.  And some that could do with a little tweaking.  Which is something they could do now that they were starting from scratch.

They had just renounced the royal authority in their states.  Which left these states without a formal framework of law.  And the opportunity to make new law.  Based on the principles in the Declaration of Independence.  That government should be by the people, of the people and for the people.  So when the Continental Congress adjourned after committing their high treason (declaring their independence) the delegates went home.  Back to their states.  To begin the building process of the new order.

The Vehicle for Peaceful Change of Government was and is the Constitutional Convention

Virginia was first.  George Mason drafted their new constitution.  And included a Bill of Rights.  George Mason was a leading mind of the day.  And produced a document that served as a template for other states.  As well as other countries.  It did away with privilege.  And the state established Anglican religion.  Among other reforms.  In Massachusetts the process was a little different.

Thomas Jefferson wrote the Declaration of Independence.  He voted for independence.  And supported the violent revolution that followed.  For he believed when a government harms the people that these people have a right and a duty to abolish that government.  But that didn’t mean a violent revolution whenever the people disagreed with government policy.  Because that would lead to anarchy.  And this was an issue that weighed heavily on the brilliant mind of John Adams.  Who created the procedure of overthrowing a government without suffering through a period of anarchy.  The vehicle for this peaceful change of government was the constitutional convention.  Which provided the framework for the states to develop their constitutions. 

The Massachusetts House appointed a committee to draft their constitution.  When they finished their draft they submitted it to a constitutional convention made up of elected state delegates.  Who approved it and sent it to the towns for approval.  They rejected it.  For it lacked a bill of rights.  Among other required features.  So they started the process again.  They called another constitution convention.  This one included John Adams.  Who had just returned from France.  He took an active part of the deliberations.  And the drafting of the second constitution.  They then submitted this constitution to the towns for approval.  The towns approved it.  And the state of Massachusetts had a new government.  New Hampshire followed this process.  As did the other states.  But it just wasn’t in the American states.  Nations throughout the world have adopted this process ever since.

The Founding Fathers gave their People Great Power and hoped their Religious Institutions would help them act with Great responsibility

Most colonies disestablished the Anglican Church.  Including the taxes that supported it.  And the oaths of Anglican faith required for public office.  But that didn’t mean the states wouldn’t establish their own religions.  Or force the support of it through taxation.  Which is what Massachusetts did.  Either for the preferred Congregational Church.  Or any other Christian religion.  As long as everyone attended church.  For as the Massachusetts Bill of Rights states, “the happiness of a people and the good order and preservation of civil government essentially depend upon piety, religion, and morality…”

Of course the Quakers and Baptists in Massachusetts objected to paying taxes for what they saw as a violation of conscience.  In Virginia the Anglican Church of England was still supported by the state.  Supported by taxation.  And the state penalized dissenters.  Particularly the Baptists (something James Madison remembered well when later working for the passage of the Bill of Rights to the U.S. Constitution).  In direct violation of their own Virginian Bill of Rights.  The Virginian Assembly would subsequently pass an act exempting all dissenters from taxation and abuse.  Thomas Jefferson would take this a step farther with his Virginia Statue of Religious Freedom in 1786.  A piece of legislation that he was particularly proud of.  Even included it on his gravestone.

With great power comes great responsibility.  The Founding Fathers gave their people great power.  Representative government.  And a means to overthrow that government.  The constitutional convention.  That they hoped their religious institutions would protect.  And help their people act with great responsibility.

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American Colonies, Freedom to Worship, East India Company, Tea Tax, Tea Act, Boston Tea Party, Intolerable Acts, Continental Army and an American Nation

Posted by PITHOCRATES - March 1st, 2012

Politics 101

As Parliament passed additional Revenue Acts Anger grew in the Colonies, especially in Boston

Prior to 1775 the American colonies were many things.  But there was one thing they were not.  United.  Many people went to America to escape religious persecution.  To live with people of their own faith.  To practice their faith without fear of reprisal or oppression.  And that’s exactly what they did.  Often oppressing fellow colonists who didn’t practice the established faith of the colony.  But they were united in one area.  Their hatred of Catholics.  Papists.  Those who lost their way and began to worship not Jesus Christ but the Pope.  That Whore of Babylon.  The seller of indulgences to buy your way out of purgatory.  And virtue.  So they had that to unite them.  But not much else.

Live and let live, they said.  As long as you worshipped Jesus Christ you were okay.  And weren’t a Jew.  Or a Catholic.  So the different denominations of the Protestant faith lived among their own.  In their own colony.  Their country.  The only sense of country they had.  Virginians weren’t American colonists.  They were Virginians.  Who didn’t much care what was going on up there in Massachusetts.  In fact, they didn’t much like what was happening up there in Massachusetts.  For Virginians were planters.  Yeoman farmers.  People who put their back into their living.  Not like those northern merchants.  And money handlers.  Who reeked just a little too much of the Old World they left.  Sitting on their backsides and making money just by buying and selling the products of other’s labors.

Life in the New World was good.  Yes, there was famine.  Disease.  And the occasional massacre.  But they could live with that.  As long as they had the freedom to worship as they pleased.  But then all that trouble started up there in Boston.  Over taxed and broke Parliament turned to their American colonies to raise some revenue.  Which angered the British Americans.  Because they didn’t sit in Parliament.  The Americans had no representation.  And according to British law taxpayers had to approve all new taxes.  Giving consent to those taxes in Parliament.  The problem with the Americans, apparently, was that they were on the ‘wrong’ side of the Atlantic.  For Britons living on the far side of the Atlantic had those rights.  They didn’t.  As Parliament passed additional revenue acts anger grew in the colonies. Especially in Boston.  Where Parliament installed British administrators to enforce these new revenue acts.  To protect their agents the British sent in the Red coats.  A peacetime occupying army.  Something very un-English that the British Americans did not like.

In Response to the Boston Tea Party Parliament passed the Intolerable Acts and closed the Port of Boston  

But the trouble didn’t end there.  The British made further attempts to raise revenue from the American colonists.  And from the British East India Company.  By taxing their tea.  Making it more expensive than the tea you could buy in the Netherlands.  Where there was no such tax.  So people did what people do with high taxes.  They didn’t pay them.  And smuggled Dutch tea into Great Britain.  And the American colonies.  Which left the East India Company with some warehouses full of tea.  So Parliament cut the tea tax due in Britain to help them.  And tried to make up for these lost revenues by taxing the Americans.  One of the new taxes included in the Townshend Revenue Act of 1767.  In response to the new tea tax the Americans boycotted tea.  Which didn’t help sell any of that warehoused tea.  So Parliament repealed the Townshend Revenue Act.  Well, all of it except the tea tax.  For they didn’t want to appear that they didn’t have the right to tax their subjects.  Represented or not.  And Parliament taxed the tea in Britain again.  This, of course, resulted in lower tea sales.  And the mighty East India Company, that made Britain so wealthy with its vast trade network, was in some serious financial peril.

Lord North, British Prime Minister, didn’t much like this uppity attitude of the Americans.  The East India Company desperately wanted to see those tea taxes cut.  But Lord North did not want to give the Americans that victory.  It was a matter of principle.  At least for him and his fellow Tories in Parliament.  As well as the Crown.  For King George III and Lord North were pretty close.  The Whig opposition was much more sympathetic to their British Brethren on the other side of the Atlantic.  But Lord North was adamant.  They had the right to tax the Americans.  And tax they would.  Besides, cutting the taxes in the Townshend Act caused other problems.  It would also eliminate the revenue it raised to pay the salaries of the colonial officials enforcing these new acts.  And it was important to keep them loyal to the Crown.  No.  The taxes in America would remain.  So their answer was, instead, the Tea Act of 1773.  Which removed the taxes due in Britain.  And allowed the East India Company to ship directly to the America colonies.  Cutting out the middleman.  And bringing the price of British tea below that of the smuggled Dutch tea.  Problem solved.

Well, not exactly.  Because the one thing they did share on both sides of the Atlantic was principle.  And even though British tea was cheaper they didn’t want anything to do with it.  On principle.  Because those Townshend tea taxes were still in force.  And paying them was a tacit admission that Parliament had the right to tax the Americans.  Despite not having any representation in that esteemed assembly.  And this they could not do.  Then came the day three little ships came to Boston harbor in 1773.  Their holds full of that detested British tea.  And a mob in the guise of Mohawk Indians descended to the docks.  Boarded these ships.  And tossed the tea overboard.  In what we call the Boston Tea Party.  Infuriating Lord North, Parliament and King George III.  Who all agreed it was time to act against these uppity Americans.  And act they did.  Passing the punitive Intolerable Acts of 1774.  That closed the Port of Boston.  Replaced the Colonial government in Massachusetts with representatives of the Crown.  Royal officials accused of committing a crime against any American would receive a ‘fair’ trial…in Great Britain (pretty much giving them a license to kill).  Forced the Americans to find room and board for the British Army occupying their cities.  And gave large swaths of land around the Great Lakes and Ohio River Valley to the Province of Quebec.  Recently added to the British Empire during the Seven Years’ War.  After they defeated their most hated and foul enemy.  The French.  Who were very, very Catholic.  As were their colonists who remained in these once French lands that were now British lands.  So to keep them from causing trouble the Quebec Act made things very comfortable for Catholics.  Right in the backyard of Protestant British North America. 

It was in the Continental Army the Country united and fulfilled the Words of the Declaration of Independence

In April of 1775 General Gage heard that there were some arms stored in Concord, Massachusetts.  So he sent some Red coats to go capture or destroy these arms.  Things did not go well for the British.  Militia gathered and stood their ground.  Shots rang out.  No one is sure who fired first.  But whoever did fired the shot heard ’round the world.  On the march back to Boston the British were harassed and picked off by sharpshooters.  Until they limped back into the safety of their Boston garrison.  Where the militia fell upon them and laid siege.  These uppity Americans for all intents and purposes had just declared war against the world’s greatest superpower.  And there was no going back.

In response to the British actions in Boston the colonies assembled in congress.  The Continental Congress.  To discuss what they as a united people should do.  For if these outrages could happen in Boston they could happen in any of the colonies.  And now that they spilled blood they needed someone to lead the American forces in their fight against the Crown.  They selected George Washington.  Who left the Congress to take charge in Boston.  And as he walked the lines at Boston he saw Americans.  And when his army marched to Quebec (to get the now British French-Canadians to join in the good fight) he saw Americans.  It was in the Continental Army the country united.  Fighting alongside in the ranks Washington saw Virginians.  Massachusetts men.  Farmers.  Merchants.  Puritans.  Baptists.  Catholics.  Jews.  Even free blacks.

There was nothing a British American enjoyed more than burning an effigy of the Pope.  That would change in the Army.  And the Army would change the country.  Especially the men who served in the Army.  Men like Washington.  Who first glimpsed a new nation.  A united nation.  That transcended religion.  The states.  Even race.  Which really brought home the words of the Declaration of Independence.  That all men are created equal.  And there’s nothing that makes men more equal than suffering the privations and horrors of war.  Sadly, after the war when the common enemy was no more the spirit of these words became a little more symbolic for some.  But these army veterans would leave their mark.  And their vision would eventually become reality for everyone.

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FT106: “You can’t have high paying jobs with generous benefits and low consumer prices.” -Old Pithy

Posted by PITHOCRATES - February 24th, 2012

Fundamental Truth

To give Workers High Wages and Generous Benefits a Business has to sell their Goods at High Prices 

The problem with politics is that voters don’t understand economics.  And they demonstrate this by demanding mutually exclusive things all of the time.  Where having one thing makes it impossible to have the other thing.  Like that old saying that goes like this.  You can’t have your cake and eat it, too.   You can have cake.  Or you can eat cake.  But you can’t have cake after eating it.  Because once you eat your cake it is gone.  And there is nothing to have.  These things, then, are mutually exclusive.  You can have one or the other.  But you can’t have both.

Now let’s transfer this train of thought to economics.  And to its most fundamental element.  The demand curve.  Which represents people in the economy.  Consumers.  And the stuff that they buy.  And at what prices they will buy the stuff that they buy.  Let’s take large flat-screen televisions.  The big ones.  Over 60 inches in size.  If they cost the price of a luxury car few consumers will buy them.  But if they only cost the price of a pack of gum consumers will buy them until they have one for every room in their house.  And consumers will buy various amounts at the prices in between.  But in general this one truth holds true.  People will buy more televisions as their prices fall.  And they will buy fewer televisions as their prices rise.  When we show this graphically by plotting how many televisions they sell at various prices we get a demand curve.

Well, you think, why can’t we just sell televisions at the price of a pack of gum?  More people will have televisions.  That’s good.  Because people just love watching television.  And television makers will make more televisions.  Creating more jobs.  And jobs are good.  Everyone says so.  So why not just sell televisions for the price of a pack of gum.  Well, I suppose if we pay the people who make these televisions a wage and benefit package closer to the price of a pack of gum, we could.  But who wants to work for a paycheck that can only buy a pack of gum?  Which brings us back to wanting mutually exclusive things.  To give workers high wages and generous benefits we have to sell goods at high prices.  Which is mutually exclusive to the low prices consumers demand.

Big Oil’s Exxon Mobil was not as profitable as GE and Apple in 2010

Yes, you can’t have low consumer prices and high pay and generous benefits.  Because, per the demand curve, higher prices mean fewer things sold.   And fewer things sold mean lower sales revenue.  And sales revenue pays for everything in a business.  Including wages and benefits.  Which means lower sales revenue means less money available to pay wages and benefits.  And any company that tries to pay high wages and provide generous benefits has to do one of two things.  Have a product they can sell a lot of at high prices.  Or go bankrupt.  Two of the Big Three Detroit automakers tried to do the former and failed.  So they went bankrupt.  And the government bailed them out.

So to pay employees well these companies need to be profitable.  Unlike the Big Three.  And to be profitable you have to have sales revenue large enough AND prices high enough to generate profits.  Profits so large that they can provide high wages and generous benefits.  Unlike the Big Three.  Because they couldn’t sell enough cars at high enough prices to pay those high union wages and generous union benefits.  But some companies have been profitable.  Including one corporation liberal Democrats love to hate.  Exxon Mobil (a member of a group liberal Democrats derisively call Big Oil).  One company that the current liberal Democrat administration loves and partners with in green energy technology.  General Electric.  And one corporation liberal Democrats just love period.  Until Steve Jobs died, at least.  Apple. 

In the fourth quarter of 2010, the profits for Exxon Mobil, GE and Apple were, respectively, $9.25 billion, $4.46 billion and $4.31 billion.  The first thing that jumps out at you is that Big Oil is making twice as much money as the corporations liberal Democrats love.  Which is why they hate them.  And why they love to bitch about high prices at the gas pump.  While at the same time they are rejoicing about those high prices.  Because those high gasoline prices help push their green energy agenda.  But these profit numbers are misleading.  Because they don’t factor in the cost of producing those profits.  And the most common way we do that is by dividing these profits by the sales revenue that generated them.  Giving us net profit margin.  When we do this for Exxon Mobil, GE and Apple we find their net profit margins on those profits were, respectively, 8.79%, 10.8% and 21.2%.  Of the three Big Oil is the least profitable.  And Apple is the most profitable.  In fact, nearly 2.5 times more profitable than Exxon Mobil.  But no one is demanding that the government step in and lower the price of Apple’s products.  Unlike they do with Big Oil.

The Government’s Regulatory and Compliance Costs increase the Price of Gasoline at the Pump

So why is Big Oil less profitable than those other businesses?  Well, for one, you can’t drill for American oil in China.  Like GE and Apple can build products in China.  And by working in the United States Big Oil is subject to massive regulatory and compliance costs.  And government regulates few things more than the oil industry.  The permitting process alone just to drill an exploratory well can take years for approval.  And millions of dollars.  It wasn’t like this when gas was cheap in America.  Before all of this regulation.  In the days when John D. Rockefeller was refining petroleum no one was complaining about high prices.  In fact, his competition complained about his low prices.  Prices they couldn’t match.  Asking for the government to investigate them for antitrust violations.  Which they did.  And busted up Standard Oil.  So they could sell their products at higher prices.  But when you can manufacture goods in China you can escape all of these regulatory and compliance costs.  And governmental insanity of protecting consumers by raising consumer prices.

Some may counter that the net profit percentage isn’t the important number.  But the dollar amount of their profits.  The same people who say we shouldn’t look at the dollar amount rich people pay in taxes.  But what they pay as a percentage of their income.  Which is an example of a double standard.  Determining how much profit is too much by one standard for Big Oil (dollars).  But determining by another standard how much rich people should pay in taxes (percentage).  It doesn’t make good sense.  But it makes good politics.  Especially when you have nothing but class warfare to rely on to win an election.

The attack on Big Oil is also irrational.  For Big Oil can do one thing that even GE and Apple can’t do.  Provide high wages and generous benefits to American workers.  Because American oil deposits can only be extracted in America.  By American workers.  If only government will cease their attack on Big Oil.  And allow people to drive gas guzzlers if they want to.  Let them fill up those tanks.  Increase the demand for gasoline.  If they did and we got rid of the anti-gasoline policies Big Oil will go after that oil and bring it to market to meet that demand.  Making it inexpensive and plentiful just like John D. Rockefeller did.  Before government stepped in to ‘protect’ consumers.  And added so many regulatory and compliance costs that has since jacked up the price at the pump so much that it is eating away an ever larger share of a family’s budget.  And ultimately reducing their standard of living.  Without even getting any high paying jobs with generous benefits in the bargain.  And if you ask me that’s a pretty sad job of protecting consumers.

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