Only Government can Create and Enforce a Monopoly

Posted by PITHOCRATES - April 19th, 2014

Week in Review

So many people fear the low prices of corporations.  They say they will put higher priced Mom and Pop shops out of business.  Then when they have a monopoly they will raise their prices and gouge their customers.  Which is silly.  Because corporations can’t create a monopoly.  Only government can grant them one.  Allowing them to charge the high prices once the government eliminates all competition.  But even when the government does if there is a market for lower prices some competition will find a way (see 3 epic fails that prove Uncle Sam is a terrible venture capitalist by Burton W. Folsom Jr. and Anita Folsom posted 4/19/2014 on the New York Post).

After 20 years in Europe perfecting his steamboat, an inventor named Robert Fulton returned to the US in December 1806.

He knew that a legislator, Robert Livingston of New York, would back him to the hilt. Livingston was a Founding Father who believed that steamboats would work well on the wide rivers of North America. Livingston and Fulton obtained a monopoly from the New York legislature for the privilege of carrying all steamboat traffic in New York for 30 years, if they could produce a working steamboat within two years…

One problem with Fulton’s monopoly, however, was that it affected shippers in neighboring states. As steamboats became more common, the Fulton monopoly meant that other companies couldn’t sail in New York waters without fear of fines. The monopoly also kept ticket prices high.

Finally, in 1817, Thomas Gibbons, a New Jersey steamboat man, tried to crack Fulton’s monopoly when he hired young Cornelius Vanderbilt. Gibbons asked Vanderbilt to run steamboats in New York and charge less than the monopoly rates…

For 60 days in 1817, Vanderbilt defied capture as he raced passengers cheaply from Elizabeth, NJ, to New York City. He became a popular figure on the Atlantic as he lowered the fares and eluded the law.

Finally, in 1824, in the landmark case of Gibbons v. Ogden, the US Supreme Court struck down the Fulton monopoly. Chief Justice John Marshall ruled that only the federal government, not the states, could regulate interstate commerce.

This extremely popular decision opened the waters of America to competition. A jubilant Vanderbilt was greeted in New Brunswick, NJ, by cannon salutes fired by “citizens desirous of testifying in a public manner their good will.”

On the Ohio River, steamboat traffic doubled in the first year after Gibbons v. Ogden and quadrupled after the second year. The real value of removing the Fulton monopoly was that the costs of traveling upriver dropped. Passenger traffic, for example, from New York City to Albany immediately dipped from $7 to $3 dollars after the court decision.

Only governments can maintain and enforce a monopoly.  And only a business with a government enforced monopoly can gouge their customers.  For with the government eliminating all competition what else is a consumer to do?  He or she has no choice but to buy from the business with the government enforced monopoly.  The same is true today.

Free market capitalism is always finding a better way to do something that costs less.  But people who enjoy government monopolies try to fight back.  To keep their government privileges.  Just look at the UAW and the automotive industry.  Which used the power of their government privilege to restrict competition.  Such as with tariffs and import quotas.  Which only let the UAW to continue to burden the American automotive industry with ever more costly union contracts that ultimately led to their bankruptcy/government bailout.  All the while keeping cars more expensive than they had to be.  As the UAW used their government privilege to gouge American automotive customers.

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Geopolitics

Posted by PITHOCRATES - March 27th, 2014

Politics 101

Twice in little over One Century an Enemy Invaded and Overran Russia/the Soviet Union

On June 24, 1812, Napoleon’s Grande Armée invaded Russia.  And made it all the way to Moscow.  Which they took.  But the Russian army didn’t want anything to do with Napoleon or his Grande Armée so they kept retreating in front of it.  Foiling Napoleon’s plans of engaging and defeating the Russian army.  While drawing them deeper and deeper into Russia.  In a scorched earth retreat.  Leaving nothing for the French.  Making it difficult to feed his massive army.  Then the bitter Russian winter came.  Having expected the Russians to have sued for peace by then they had no winter clothing.  Leaving Napoleon no choice but to retreat.

On June 22, 1941, Joseph Stalin’s ally, Adolf Hitler, broke the Treaty of Non-aggression between Germany and the Union of Soviet Socialist Republics.  And invaded the Soviet Union.  About one month later than planned due to some trouble their Italian allies were having in the Balkans.  The Nazi armies advanced through the Soviet armies and reached Leningrad, Moscow and Stalingrad.  Then the bitter Russian winter came.  And like the French the Germans had no winter clothing.  Having expected a victory before the onset of winter.  They tried to hold their ground as they froze and starved.  But the Soviets pushed them back.  Eventually all the way to Berlin.  But not after some 20 million Soviets died.

Twice in little over one century an enemy invaded and overran Russia/the Soviet Union.  Never again vowed the Soviets.  So when they chased the Nazis back into Berlin they kept the territory they were on after the war.  Which is why Estonia, Latvia, Lithuania, Poland, East Germany, Czechoslovakia, Bulgaria, Hungary, Romania and Albania became Soviet satellites.  Countries behind the Iron Curtain.  To provide a buffer to slow down another invasion before it reached Soviet soil.

For the Latter Part of the 20th Century the Soviets tried to extend their Communist Revolution to other Nations

Of course, following World War II it was the Soviets that had an expansionist policy.  A little thing called the communist revolution.  The assault on capitalism.  Replacing it with socialism first.  Then communism.  And as revolutions go they are fought.  With guns.  So the communist revolution was a perpetual state of war interrupted with moments of peace.  A war the Soviets forced onto their neighbors to get them to join them in their socialist/communist utopia.  Something their neighbors didn’t want.  And something their other neighbors, the Western Powers, would try to help them avoid.

The German capital, Berlin, fell in East Germany.  Berlin, however, was a city divided between the Western Allies and the Soviet Union.  The Western Allies supplied West Berlin via truck and rail transport.  Until the Soviets closed the borders.  In an effort to force West Berlin into the social utopia that was East Berlin.  Something the West Berliners wanted no part of.  So the Western Powers helped them by supplying the city via the Berlin Airlift.  Eventually the Soviets relented.  And opened the truck and rail transport into West Berlin.

The Soviets tried to spread their socialist utopia to other countries that didn’t want it.  Greece.  Turkey.  Iran.  South Korea.  The United States and the Western Powers helped these countries resist these Soviet advances.  Even fighting a shooting war on the Korean peninsula to push the Soviet and China backed North Korea out of South Korea.  So through the remainder of the 20th century the Soviets tried to extend the communist revolution to other nations.  While the United States tried to thwart their designs.  And stared each other down with their nuclear weapons in the Cold War.  Developing the doctrine of Mutually Assured Destruction (MAD).  Meaning that any country that started a nuclear war was going to lose, too, in that nuclear exchange.  It was mutually assured but it really was a warning to the Soviets.  Who had designs on conquering other nations.  Including the United States.  Who had no designs on waging war with the Soviet Union.

Geopolitics is about the Balance of Power

To balance the threat of the Soviet Union the Western Powers formed the North Atlantic Treaty Organization (NATO).  For Belgium, the Netherlands, Luxembourg, etc., had no chance by themselves against an attacking Soviet Union.  They did as a member of NATO, though.  Where an attack on one was an attack on all.  Which meant if the Soviets attacked the Low Countries they were also attacking France, the United Kingdom, Canada and the United States.  The Americans even deployed armor units in West Germany.  The Soviets replied with the Warsaw Pact.  A NATO-like organization between the Soviet Union and some of those countries in Eastern Europe they never left after the end of World War II.

And there was peace.  What we call the Pax Americana.  The American peace.  For it was the awesome might of the American military that gave NATO its teeth.  With troops deployed around the world.  Air forces stationed within striking distances of potential hotspots.  The mightiest navy ever to ply the oceans.  A huge nuclear arsenal.  And the greatest economy in the world that could pay for all of this while the American people still lived a happy and carefree life with all of the comforts a capitalist society could give.  Something the socialism/communism of the Soviet Union could not.  For the people in the Soviet sphere waited for apartments, cars and groceries.  Large extended families crowded into small apartments.  And people waited in lines at stores with empty shelves.  Which explains why the Soviets required a brutal secret police force.  The KGB.

People in the Soviet sphere who learned of how much better life was in the West tried to escape to the West.  This is why they built the Berlin Wall.  Not to keep West Berliners from sneaking into that socialist utopia inside East Berlin.  But to keep the East Berliners from escaping that socialist utopia.  For the only way you can get people to live in that socialist/communist utopia is by force.  And you have to spread the communist revolution not to make life better for people in capitalist societies.  But to destroy that better life across the border from communist societies.  To extinguish that beacon of liberty that keeps luring their people from their oppressive police state.  Something Russia is returning to.  As Vladimir Putin slowly but surely reassembles the Soviet Union.  Not to reconstitute the buffer to protect Russia from another invasion.  But simply because he wants to.  And can.  So far, at least.

Geopolitics is about the balance of power.  Some like to maintain a balance of power to keep the peace.  Like the Romans, the British and the Americans did with their Pax Romana, Pax Britannica and Pax Americana.  Where the prevailing superpower kept the peace.  While others are more interested in acquiring power than peace.  Like Napoleon Bonaparte, Adolf Hitler, Joseph Stalin and Vladimir Putin.  Who didn’t have strong economies.  And used force to get what they wanted.  Raw materials.  Food.  Or a warm water port in the Crimea.  And they are always looking for a weakness in their enemies to alter the balance of power.  For they were/are masters of geopolitics.  And want to redraw the borders of the world.  To restore the former glory of a past empire.  Or to realize some glorious destiny they believe God has planned for the nation.

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Blended Winglets prove the Superiority of Free Market Capitalism over a Managed Economy

Posted by PITHOCRATES - March 15th, 2014

Week in Review

Too many people still feel that government knows better than market forces.  As if the lessons of the Soviet Union, Eastern Europe, the People’s Republic of China, North Korea, Cuba, the Obama administration, etc., have never been learned.  A managed economy produces inferior results compared to one left to free market capitalism.  Even in achieving the goal of an activist, interventionist government (see Airlines embrace winglets as fashionable fuel savers by Gregory Karp, Chicago Tribune, posted 3/10/2014 on The Seattle Times).

Boeing calls the odd-looking, upturned wingtips on aircraft “blended winglets.” Airbus calls them “sharklets.” And Southwest Airlines, in ads, simply calls them “little doohickeys.”

Whatever the name, these wingtip extensions have become prevalent in aviation, saving airlines billions of dollars in fuel costs…

While winglets could cost $1 million or more per aircraft to install and add several hundred pounds to a plane, they pay for themselves in a few years through fuel savings — about 4 percent savings for the blended winglet and an additional 2 percent savings for the split scimitar…

United expects the new and older wingtip designs on its 737, 757 and 767 fleets to annually save it 65 million gallons of fuel, $200 million worth, and the equivalent of 645,000 metric tons of carbon-dioxide emissions.

That’s not government doing this.  This is the free market.  A design comes along that offers to save airlines money by reducing fuel consumption and the airlines spend money to add it to their fleets.  Thus reducing 645,000 metric tons of carbon-dioxide emissions.  And they do this voluntarily.  This is how free market capitalism works.

Fuel is the greatest cost of airlines.  So there is an incentive for airlines to spend money to reduce fuel consumption.  This one-time investment will reduce fuel consumption in the years to follow.  Making it a very good investment.  Because it is they spend their own money to make this investment.  Unlike solar and wind power.  These are very poor investments.  For the only way anyone builds solar arrays and wind farms is with taxpayer subsidies.  Because the return on investment is so poor they will not spend their own money to build these things.

Good things happen with free market capitalism.  While bad things happen (the Solyndra bankruptcy, for example) when the government interferes with free market capitalism.  Which is why the government should not interfere in the market place.  As blended winglets demonstrate.  Which have reduced far more carbon-dioxide emissions than Solyndra ever did.

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Liberals tend to get Worthless College Degrees that require little Math or Science

Posted by PITHOCRATES - March 15th, 2014

Week in Review

There’s a lot of talk about income inequality these days.  As President Obama wants to raise the federal minimum wage to $10.10 per hour.  Which would raise the earnings from an entry-level, unskilled job to just about what some college graduates earn after taking out huge student loans.  For those college graduates who can find a job, that is.  For it’s pretty bad out there.  Especially for some college majors.  Here are some worthless degrees based on starting salaries and current unemployment rates for these fields (see College Majors That Won’t Land You a Job posted on ChaCha).

Fine Arts

Whoever coined the phrase starving artist must have majored in Fine Arts. Recent graduates of the degree face an unemployment rate of 12.6% and low salaries of around $30,000 when they finally do find a job. Doesn’t sound very fine to me!

Drama and Theater

People who major in Drama and/or Theater generally have dreams of being an actor and that is notoriously hard to do. Recent grads will face an unemployment rate of 8.8% and paltry salaries of $26,000 if they actually do land a bit part in anything. In reality, many people majoring in theater never end up becoming actors of any sort at all and instead find themselves in completely unrelated careers, having wasted a lot of money on college.

English

Those who major in English tend to want to do one of two things, teach or write. Unfortunately this still ends up with about 9.2% of recent grads struggling to find any kind of job. Salaries in this career tend to always be lower than the national average, even if you finally manage to get yourself established with a job for a while.

Anthropology and Archaeology

Do you fancy yourself the next Indiana Jones? Or digging up dinosaur bones like on Jurassic Park? Well, as fun as that might sound, the reality of the situation is that over 10% of graduates can’t find jobs digging anything up and those that do don’t get paid very well, less than $30,000 a year. If you want to increase your chances of getting a job and getting paid better, you’ll probably have to count on getting a graduate degree.

Liberal Arts

Who even knows what a Liberal Arts degree is? Certainly not most employers, probably leading to a 9.2% unemployment rate and an almost 2 times greater than the national average likelihood of working in retail instead of your chosen career. Most people who do end up sucessful in this major, 3 out of 4, go to graduate school as well as a 4 year school, so keep that in mind if you still want to pick it as a degree.

Journalism

With more and more of our news coming from online sources, the need for journalists is actually dropping. About 6 percent of journalism jobs are expected to be cut from the work force by 2020. Currently they already face a fairly higher than average unemployment rate of 7.7 percent.

Notice a pattern?  These are not difficult majors.  You won’t be doing much calculus or quantum mechanics in these majors.  No.  These degrees don’t include much math and science.  But they allow a student to really enjoy his or her time at college.  As the lighter workload allows more time for fun.  It’s sad that colleges sell kids these worthless degrees.  Promising them a higher earning potential with their higher education.  But the colleges really don’t care.  They just want these kids to get student loans.  Because colleges just want the money.

Some of the most vocal opponents of free market capitalism have been college students.  Especially those with degrees in programs like these.  They’re angry and bitter and are more than willing to join in an Occupy Wall Street movement (it’s not like they have a job to go to thanks to their worthless degrees).  To protest against income inequality.  Especially when their worthless degrees have given them very little income.  And large amounts of debt.  But whose fault is this?  One thing for sure it isn’t the taxpayers.  Which is why the taxpayers shouldn’t pay for this outstanding student loan debt.

If the universities and colleges are providing worthless degrees perhaps they should refund that tuition.  At the least they should stop attacking free market capitalism and turning their students into Democrat voters.  For if we had robust economic activity created from low tax rates and less onerous regulation there would be so many jobs that businesses would be hiring even those with worthless degrees.  And the median family income would be rising, not falling.  As it has been during the Obama years.  Because when there are more jobs than people to fill them employers bid up salaries and wages.  As they try to get people to work for them instead of someplace else.  Something else they don’t teach in these worthless degrees.

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Capitalism gives New York City a Night Life while Communism gives Pyongyang only Night

Posted by PITHOCRATES - March 1st, 2014

Week in Review

The American left has long had a love affair with communism.  They loved Joseph Stalin.  Until he made a nonaggression pact with Nazi Germany that allowed Hitler to wage World War II.  Which devastated the left.  For they felt their true love betrayed them.  But they rejoiced when Hitler invaded the Soviet Union.  So they could love Uncle Joe Stalin once again.  Even though some 20 million Soviets died because of Stalin’s nonaggression pact with Adolf Hitler.

All during the Cold War the left urged détente with the Soviet Union.  They wore t-shirts with pictures of Che Guevara.  They carried pictures of Chairman Mao.  They admired Ho Chi Minh.  They wanted to normalize relations with Cuba.  They liked Daniel Ortega in Nicaragua.  And just loved Hugo Chávez in Venezuela.  When it came to communist/socialist regimes nationalizing industries and oppressing their people the left professed their undying love.  Why?  Because they hate capitalism.  Just like these communist/socialist dictators.  Who put their people ahead of profits.  Like they do in North Korea (see NASA photo shows North Korea is in the dark by Dylan Stableford posted 2/26/2014 Yahoo! News).

While you were sleeping, North Korea disappeared.

Well, not exactly. But a recent image taken from the International Space Station shows the mysterious, dictator-ruled country almost completely in the dark…

Even the capital of Pyongyang (population: 3.26 million) is a relatively dark, compared with smaller cities in neighboring South Korea and China.

The reason? According to a recent report by the Korea Institute for National Unification, electricity in North Korea is “sporadic and unreliable, with homes that have electricity often receiving just a few hours per day.” About half of North Korea’s 24 million people live in extreme poverty, with most homes and apartments “heated by open fireplaces burning wood or briquettes.” And many “lack flush toilets.”

The North Korean regime hates capitalism.  Just like the American left. Because capitalism puts profits before people.  Which is why New York City has an incredible night life unlike Pyongyang (or any other North Korean city).  Not to mention cellular networks and smartphones.  Broadway and night clubs.  Times Square and Greenwich Village.  Saturday Night Live and The Tonight Show.  Trains and air planes.  Allowing anyone to get where the party is.  New York City.  Things they don’t have in North Korea.  Because North Korea doesn’t have capitalism.  Like New York City.  The city that never sleeps.  Thanks to electric power lighting up the night.  Something North Korea doesn’t have.  Because North Korea doesn’t have capitalism.  Or lights.

The American left loves liberal New York City.  It is the center of their world.  Even though it was built with capitalism.  But the left loves socialism.  And communism.  Where they put people before profits.  And those people sit in the dark doing nothing once the sun sets.  And defecate in holes in the ground because they have no flush toilets.  Something else you can do all night long in heated buildings throughout New York City.  Because New York City has capitalism.  Which makes life better.  At least according to the American left.  For their favorite city is a city that capitalism built.  Unlike that communist city they’re not flying to for a good time.  Pyongyang.

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Henry Ford, Bill Hewlett & Dave Packard, Steve Jobs & Steve Wozniak, Howard Schultz, Ray Kroc and Richard Branson

Posted by PITHOCRATES - February 25th, 2014

 History 101

(Originally published May 8th, 2012)

Capitalism allows Entrepreneurs to bring their Great Ideas to Life

Entrepreneurs start with an idea.  Of how to do something better.  Or to create something we must have that we don’t yet know about.  They think.  They create.  They have boundless creative energies.  And the economic system that best taps that energy is capitalism.  The efficient use of capital.  Using capital to make profits.  And then using those profits to make capital.  So these ideas of genius that flicker in someone’s head can take root.  And grow.  Creating jobs.  And taxable economic activity.  Creating wealth for investors and workers.  Improving the general economy.  Pulling us out of recessions.  Improving our standard of living.  And making the world a better place.  Because of an idea.  That capitalism brought to life.

Entrepreneurs Risked Capital to bring Great Things to Market and to Create Jobs

Henry Ford established the Detroit Automobile Company in 1899.  Which failed.  He reorganized it into the Henry Ford Company in 1901.  Ford had a fight with his financial backers.  And quit.  Taking the Ford name with him.  And $900.  The Henry Ford Company was renamed Cadillac and went on to great success.  Ford tried again and partnered with Alexander Malcomson.  After running short of funds they reorganized and incorporated Ford Motor Company in 1903 with 12 investors.  The company was successful.  Some internal friction and an unexpected death of the president put Ford in charge.  Ford Motor built the Model A, the Model K and the Model S.  Then came the Model T.  And the moving assembly line.  Mass production greatly increased the number of cars he could build.  But it was monotonous work for the assembly line worker.  Turnover was high.  So to keep good workers he doubled pay in 1914 and reduced the 9-hour shift to 8 hours.  This increased productivity and lowered the cost per Model T.  Allowing those who built the cars to buy what they built.  In 2011 the Ford Motor Company employed approximately 164,000 people worldwide.

Bill Hewlett and Dave Packard established Hewlett-Packard (HP) in 1939.  In a garage.  They raised $538 in start-up capital.  In that garage they created their first successful commercial product.  A precision audio oscillator.  Used in electronic testing.  It was better and cheaper than the competition.  Walt Disney Productions bought this oscillator to certify Fantasound surround sound systems in theaters playing the Disney movie Fantasia.  From this garage HP grew and gave us calculators, desktop and laptop computers, inkjet and laser printers, all-in-one multifunction printer/scanner/faxes, digital cameras, etc.  In 2010 HP employed approximately 324,600 employees worldwide.  (Steve Wozniak was working for HP when he designed the Apple I.  Which he helped fund by selling his HP calculator.  Wozniak offered his design to HP.  They passed.)

Steve Jobs had an idea to sell a computer.  He convinced his friend since high school, Steve Wozniak, to join him.  They sold some of their things to raise some capital.  Jobs sold his Volkswagen van.  Wozniak sold his HP scientific calculator.  They raised about $1,300.  And formed Apple.  They created the Apple I home computer in 1976 in Steve Jobs’ garage.  From these humble beginnings Apple gave us the iPad, iPhone, iPod, iMac, MacBook, Mac Pro and iTunes.  In 2011 Apple had approximately 60,400 full time employees.

Jerry Baldwin, Zev Siegl, and Gordon Bowker opened the first Starbucks in 1971 in Seattle, Washington.  About 10 years later Howard Schultz drank his first cup of Starbucks coffee.  And he liked it.  Within a year he joined Starbucks.  Within another year while traveling in Italy he experienced the Italian coffeehouse.  He loved it.  And had an idea.  Bring the Italian coffeehouse to America.  A place to meet people in the community and converse.  Sort of like a bar.  Only where the people stayed sober.  Soon millions of people were enjoying these tasty and expensive coffee beverages at Starbucks throughout the world.  In 2011 Starbucks employed approximately 149,000 people.

Ray Kroc sold Prince Castle Multi-Mixer milk shakes mixers to a couple of brothers who owned a restaurant.  Who made hamburgers fast.  Richard and Maurice McDonald had implemented the Speedee Service System.  It was the dawn of fast food.  Kroc was impressed.  Facing tough competition in the mixer business he opened a McDonald’s franchise in 1955.  Bringing the grand total of McDonald’s restaurants to 9.  He would go on to buy out the McDonald brothers (some would say unscrupulously).  Today there are over 30,000 stores worldwide.  In 2010 McDonald’s employed approximately 400,000 people.

Richard Branson started a magazine at 16.  He then sold records out of a church crypt at discount prices.  The beginning of Virgin Records.  In 1971 he opened a record store.  He launched a record label in 1972.  And a recording studio.  Signing the Sex Pistols.  And Culture Club.  In 1984 he formed an airline.  Virgin Atlantic Airways.  In 1999 he went into the cellular phone business.  Virgin Mobile.  In 2004 he founded Virgin Galactic.  To enter the space tourism business.  His Virgin Group now totals some 400 companies.  And employs about 50,000 people.

The Decline of Capitalism and the Rise of the Welfare State caused the European Sovereign Debt Crisis

And we could go on.  For every big corporation out there will have a similar beginning.  Corporations that use capital efficiently.  Bringing great things to market.  Introducing us to new things.  Always making our lives better.  And more comfortable.  One thing you will not find is a great success story like this starting in the Soviet Union.  The People’s Republic of China (back in the days of Mao Zedong).  East Germany (before the Berlin Wall fell).  North Korea.  Or Cuba.  No.  The command economies of communist countries basically froze in time.  Where there was no innovation.  No ideas brought to life.  Because the government kind of frowned on that sort of thing.

There is a reason why the West won the Cold War.  And why we won that war without the Warsaw Pack and NATO forces fighting World War III.  And why was this?  Because we didn’t need to.  For the communist world simply could not withstand the forces of living well in the West.  Whenever they could their people escaped to the West.  To escape their nasty, short and brutish lives.  In the command economies of their communist states.  Where the state planners failed to provide for their people.  Even failing to feed their people.  The Soviet Union, the People’s Republic of China and North Korea all suffered population reducing famines.  But not in the West.  Where we are not only well fed.  But our poor suffer from obesity.  Which is not a good thing.  But it sure beats dying in a famine.

Sadly, though, the West is moving towards the state planning of their one time communist foes.  Social democracies are pushing nations in the European Union to bankruptcy.  Japan’s generous welfare state is about to implode as an aging population begins to retire.  Even in the United States there has been a growth of government into the private sector economy like never before.  Which is causing the Great Recession to linger on.  As it caused Japan’s lost decade to become two decades.  And counting.  As it is prolonging the European sovereign debt crisis.  With no end in sight.  The cause of all their problems?  The decline of capitalism.  And the rise of the welfare state.  Which just kills the entrepreneurial spirit.  And the creation of jobs.  Which is one cure for all that ails these countries.  And the only one.  For only robust economic activity can pull a country out of recession.  And for that you need new jobs.  And the entrepreneurial spirit.  In short, you need capitalism.

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FT210: “Vanity, thy name is liberalism; Liberty, thy name is capitalism.” —Old Pithy

Posted by PITHOCRATES - February 21st, 2014

Fundamental Truth

Christians believe in the Reward of Hard Work and Shun Idleness for it tends to Invite Trouble

Liberals are very confident people.  As well as arrogant.  Narcissistic.  And condescending.  Which is why they are so secular.  Wanting to take the separation of church and state argument to the extreme.  Attacking and mocking Christianity every chance they get.  As they don’t like anyone judging them.  Or setting some moral standard.  For liberals are a sinful people.

The Seven Deadly Sins are wrath, greed, sloth, pride, lust, envy, and gluttony.  Christians try to avoid these.  They forgive their enemies instead of getting angry at them.  They tithe to their church instead of keeping all of their money greedily for themselves.  They believe in the reward of hard work and shun idleness for it tends to invite trouble.  They are humble and don’t strive for attention.  They have strong self-control and make sacrifices for a better future instead of giving in to current wants and desires.  They tend to be happy with what they have however modest their lives may be.  Instead of being envious of others.  They don’t eat, drink or live to excess, preferring to do everything in moderation.  Things you just don’t associate with liberals.

Now think of some liberals you know of.  Think of the vicious things liberal Democrats say about Republicans (such as a campaign commercial showing a Republican pushing ‘Grandma’ off a cliff).  The vulgar things some liberal commentators say about Republican women.  And the ridicule of conservatives on late-night television.  Rich liberals who want to raise taxes on the rich (which includes the middle class) to pay for a generous welfare state while giving little to charity themselves.  As they are far more generous with other people’s money than with their own.  And never risk their own money in risky investments such as Solyndra.  Preferring to risk the taxpayers’ money.

Liberals attack the Rich because they are Envious of their Hard Work and Success

Liberals always want a bigger federal government with an ever-growing bureaucracy.  So they can be career politicians without ever getting a real job where they have to work hard to earn a living.  Liberals like to brag about how smart they are and how brilliant their legislation is.  Taking credit for things they didn’t even do.  Such as President Obama taking credit for the surge in natural gas production done on private land by private companies.  Or boasting how their economic policies are working even though the real unemployment rate is in excess of 13% (when you count those who have left the labor force and those who can only find a part-time job).  And their refusal to admit they wrote a terrible law.  Such as Obamacare.

Liberals never want to wait for anything.  They don’t believe in hard work.  They believe in early retirement and generous pensions.  For their friends in the union.  Like the UAW.  In the public sector unions.  And those in government jobs.  They attack the rich because they resent their hard work and success.  Are envious of them.  And want to punish them because they were never as good as they are.  With higher tax rates.  And punishing regulations.  Hollywood celebrities and the Washington elite live the most extravagant lives.  In some of the most expensive homes which are filled with the finest food, drink and toys.  And when that’s not enough some further their excess with drugs.

These are things you just don’t associate with Christians.  In fact, these are things Christians frown upon.  Even telling their congregation not to live lives like these in their church services.  For these are not Christian lives.  Some people could have everything they could possibly want or desire but are still not happy.  Or are bored because it came too easily.  Or too soon.  Turning to other outlets to excite them.  Alcohol and drugs.  Drag-racing in expensive sports cars on neighborhood streets.  Partying all night in the hottest clubs.  Or blowing a lot of money gambling.  Anything to escape the boredom of an idle life.

For a Better Life we should Shun Liberalism and Embrace Free Market Capitalism

This is why liberals attack Christianity so much.  As well as one other reason.  Because they don’t like believing in a higher being.  For they are so arrogant and narcissistic that they can’t stand the thought of some being that is greater than themselves.  For they hold liberalism sacred.  And if anyone worships anything they want the people to worship them.  Because they believe they are the smartest and the most insightful people in the universe.  Yes, vanity, thy name is liberalism.  Which is why they believe they should control government.  And our lives.  Because they’re smarter and wiser than business owners.  Bankers.  Entrepreneurs.  And market forces.  For they are the higher being.  Not what those silly Christians worship.

A lot of people have felt like this throughout history.  Adolf Hitler.  Mao Zedong.  Saddam Hussein.  Benito Mussolini.  Muammar Gaddafi.  Kim Il-sung.  Kim Jong-il.  Kim Jong-un.  Fidel Castro.  Supreme leaders and ruthless dictators who preferred their people to worship them like a god.  And imposed socialism, fascism or communism on their people.  Using their supreme intelligence and insight to make the state a better place for the people.  Making the state supreme.  While subordinating the individual.  And elevating the supreme leader above everyone.  Something liberals have been trying to do all their lives.  Only without the torture and genocide.

But their efforts share a similar trend with these ruthless dictators.  The quality of life declines under their rule.  Some of the worst places to live when it comes to human rights have been in Nazi Germany, the People’s Republic of China, Iraq, Fascist Italy, Libya, North Korea and Cuba.  While some of the best countries to live in are the United States, Canada, the United Kingdom, Australia and Hong Kong.  All once part of the Christian British Empire.  An empire that embraced free market capitalism.  And when people practice self-control and make sacrifices for the future engage in free market capitalism they make a better place to live.  At least this is what history has shown us.  So if we want a better life we should shun liberalism.  And embrace free market capitalism.  For liberty, thy name is capitalism.

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Marx, Lenin, Trotsky, Stalin and the Soviet Union

Posted by PITHOCRATES - February 18th, 2014

History 101

Marx called for a Dictatorship of the Proletariat where the Workers controlled the Means of Production

Karl Marx did not like capitalism.  Or middle class people that used money to make money.  The bourgeoisie.  Who exploit the working man.  The proletariat.  The bourgeoisie used their capital to exploit the labor of the working man (i.e., taking a risk and investing in land, factories, machinery, labor, etc.) to make money.  While the working man slaved away at slave wages creating all the great things we have in the world.  Of course, the proletariat could not do any of this unless others took risks and invested in land, factories, machinery, labor, etc.

This was just not fair to Karl Marx.  Because the industrial bourgeoisie had all the power.  And their exploitation of the proletariat was nothing more than a dictatorship of the bourgeoisie.  So Marx created a socio-economic philosophy to address this dictatorship.  Marxism.  And called for a social transformation.  For working men everywhere to unite.  And break the chains that bound them in the dictatorship of the bourgeoisie.  Calling for a dictatorship of the proletariat.  For the workers to control the means of production.  In a new system that replaced capitalism.  Socialism.  Until they could usher in the true ideal.  Communism.

In capitalism the bourgeoisie get rich creating neat things people discover and want to buy.  In communism there would be no bourgeoisie using the means of production to make a buck.  Instead, wise and selfless people would determine what was best for the people.  Instead of free markets allocating scarce resources economic planners would.  And they’d do it better.  Because they are selfless.  Creating large surpluses that would go not into some rich capitalist’s bank account.  But they would fairly distribute this surplus among the working class.  So society as a whole would be better off.  Sounds great.  But if the market didn’t make the decisions of what to produce who did?  As it turned out for Marxism that was a very difficult question to answer.

Leon Trotsky was a Like-Minded Marxist and the number two Communist behind Lenin

The Russian people were growing tired of World War I.  And Tsar Nicholas.  In fact they had it with the Russian Empire.  Even before World War I.  Although serfdom was abolished in 1861 the lives of peasants didn’t improve much.  There was still famine.  And the serfs had to pay a lot to their former landlords for their freedom.  So there was revolutionary fervor in the air.  And a few peasant uprisings.  As well as a few revolutionaries.  Such as Vladimir Ilyich Lenin.  Who was a Marxist.  His anti-Tsarist political activity got him arrested and exiled a few times.  In fact, during World War I he was living in exile in Switzerland.  Hoping that the Germans would weaken Tsarist Russia enough to kick off a socialist revolution in Russia.

When revolution did break out Lenin was anxious to return to Russia.  But being in Switzerland posed a problem.  It was surrounded by warring countries.  Lucky for him, though, the Germans were anxious to close the eastern front of the war.  And a little revolution in Russia could do just that.  So they transported Lenin through Germany and helped him return to Russia.  They travelled north.  Took a ferry to Sweden.  Then by train to Petrograd.  Formally Saint Petersburg (Peter the Great’s new capital on the Baltic Sea).  Which was later renamed Leningrad.  And then later renamed Saint Petersburg.  Where he would lead the Bolshevik Party.  And the world-wide socialist revolution against capitalism.

Leon Trotsky was a like-minded Marxist.  And an anti-militarist.  He had a falling out with Lenin but eventually reunited.  With Trotsky becoming the number two communist behind Lenin.  Trotsky addressed a problem with Marxism for Russia.  Socialism was to be the final step AFTER capitalism.  Once there was a strong industrial proletariat.  Russia didn’t have that.  For it was one of the least advanced countries in the world.  An agrarian nation barely out of the Middle Ages.  So Russia had to industrialize WHILE the proletariat took over the means of production.  Which brought up a big problem.  How could a backward nation industrialize while having a revolution?  How could they do this without other advanced capitalistic countries coming to the aid of the bourgeoisie?  Which Trotsky answered with his Permanent Revolution.  For the Russian socialist revolution to be successful there had to be socialist revolutions in other countries, too.  Thinking more in terms of a worldwide revolution of industrialized states.  And not just in Russia.  Something another Marxist disagreed with.  Joseph Stalin

Communist States have Guards on their Borders to prevent People from Escaping their Socialist Utopia

During these revolutionary times workers’ councils were appearing throughout the country.  Soviets.  Which helped stir up the revolutionary fervor.  In 1917 the imperial government fell.  The Bolsheviks killed the Tsar and his family.  And Russia fell into civil war.  Which the Bolsheviks won in 1922.  And formed the Soviet Union.  Or the Union of Soviet Socialist Republics (USSR).  That stretched from Eastern Europe to the Pacific Ocean.  Under the rule of Vladimir Ilyich Lenin.  Until he died in 1924.  Then Joseph Stalin took over after a brutal power struggle.  Even exiled Leon Trotsky.  And established totalitarian rule.  Stalin created a planned economy.  Rapid industrialization.  And collectivization.  As well as famines, forced labor, deportation and great purges of his political enemies.  To strengthen his one-party rule.  To protect the socialist revolution from a return of capitalism.

The Russian Revolution was the only successful socialist revolution in Europe.  The dictatorship of the proletariat did not happen as Lenin and Trotsky had envisioned.  So Stalin abandoned the idea of Permanent Revolution.  And adopted Socialism in One Country instead.  To strengthen the Soviet Union.  And not support a world-wide socialist revolution against capitalism.  In direct opposition of Trotsky.  To aid in the USSR’s industrialization Stalin made a pact with the devil.  Adolf Hitler.  And entered an economic agreement that would allow Hitler to build and test his war machine on Soviet soil that he would use in World War II.  Then came the Treaty of Non-aggression between Germany and the Union of Soviet Socialist Republics.  And the secret protocol.  Where Nazi Germany and the Soviet Union agreed to conquer and divvy up the countries located between them.

Trotsky did not like what the Soviet Union became under Stalin.  An oppressive dictatorship of Joseph Stalin.  Not the dictatorship of the proletariat envisioned by Karl Marx.  And he didn’t like that pact with a militarist Nazi Germany.  He predicted that Stalin’s USSR would not last.  Either suffering a political revolution like Tsar Nicholas suffered.  Or it would collapse into a capitalist state.  Stalin disagreed.  And killed him and his family.  Getting rid of the last of the old Bolsheviks.  Leaving him to rule uncontested until his death in 1953.  Exporting communism wherever he could.  Where it killed more people than any other ideology.  Until the great and brutal socialism experiment collapsed in 1991.  For Trotsky was right.  It could not survive when a better life was just across a border.  Which is why all of the communist states have guards on their borders.  To keep their people from escaping their socialist utopia.

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Canadian Liberals don’t Like Wal-Mart Either

Posted by PITHOCRATES - February 15th, 2014

Week in Review

People just don’t hate Wal-Mart in the United States.  The Canadians don’t like them either.  Or, at least, some Canadians (see Developer backs away from plan to put Walmart in Kensington Market by BRUCE LAREGINA AND TARA PERKINS posted 2/13/2014 on The Globe and Mail).

Kensington Market appears to have won the war against Walmart.

The latest pitch to the city from RioCan, the real-estate company developing a site near Bathurst and Nassau streets, no longer includes a big-box Walmart and would shrink the project’s retail area…

“We pushed back hard on this,” said Mr. Layton, who has advocated against Walmart for nearly two and a half years. “The pressure put on Walmart and RioCan from our community backed them off from putting it in our area…”

“As a resident of Kensington Market for my entire life, it looks like a wonderful compromise,” she said. “They were potentially a threat for the businesses in not only Kensington, but in Little Italy and Chinatown as well.

Social democracies everywhere decry capitalism.  And businesses.  Because all they care about are profits.  Which they amass by gouging people with high prices.  This is unfair. And cruel.  People deserve low prices.  Enter government to fetter unfettered capitalism.  To make it fair.  And in the case here that means making sure the local businesses can continue to sell at higher prices.

A business making a profit with high prices is a bad thing.  Unless a Wal-Mart threatens to come in and offer a greater variety of goods at lower prices.  Which will benefit the people.  By proving jobs with better benefits than most Mom and Pop shops can provide.  And allowing people’s paychecks to go farther thanks to those low prices.  But they can’t have that in Kensington Market.  Or any big Democrat U.S. city.  Because Wal-Mart does these wonderful things with a nonunion workforce.  And that’s something liberals just can’t have.  Even if it means higher prices for the people.

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Knowledge + Experience + Reason = Republican Votes

Posted by PITHOCRATES - February 13th, 2014

Politics 101

The Democrat Party is the Cool Uncle that buys Booze and Cigarettes for his Nieces and Nephews

People characterize the Republicans as being a bunch of old fogies.  Out of touch.  Who don’t have a clue about the world today.  Unlike their children do.  Who are wise beyond their years.  For they know there is nothing really bad with underage drinking and smoking.  Smoking marijuana.  Or doing other drugs.  And there is nothing wrong with casual sex.  Sexting.  Or nude selfies.

This is why the children of old fogies like the Democrat Party.  Because the Democrats get them.  Unlike their parents.  Their parents tell them they shouldn’t stay out late, drink, smoke, do drugs or have sex.  While the Democrats decriminalize marijuana and work to decriminalize other drugs.  Provide free birth control.  And abortion without parental notification.  Making the Democrat Party the cool uncle that buys booze and cigarettes for his nieces and nephews.  So is it any wonder that the youth vote goes Democrat?

The ironic thing, though, is that these old fogies were once young themselves.  And some were pretty wild in their youth, too.  But once they became parents things changed.  For when it’s their daughter they don’t want her being objectified.  Encouraged to explore her sexuality by having so much casual sex that she catches a sexually transmitted disease or gets pregnant.  Especially if they did in their youth.  Which is the last thing they want for their little girl.  Who is and will forever remain their little girl.

Keynesian Economics conditioned People to accept that Government knows Best

This is the rule.  Not the exception.  As kids grow up fighting their parents they reach a point in life where they realize that their parents were right all along.  That if they had only spent more time on their homework and less time partying things would have turned out better.  Life may have been less fun in the short-run but much better in the long-run.  They’d had an earlier start in their career.  A career with better pay and benefits.  They could have bought a house sooner.  Met someone to marry and start a family with sooner.  Instead of finding themselves at 25 buried under student loan debt for a degree that can’t get them a job.  And a decade or so of hooking up having conditioned men to shun any serious commitment.  Leading their daughters to turn to serial dating and online dating.  As they struggle to find someone else who has grown up, too.

This is what the old fogies know.  That their kids don’t.  You get wiser with age.  Thanks to education.  And experience.  Two things the young just don’t have.  And never will.  Because by the time they grow wise from education and experience they are no longer kids.  But well on their way to ‘old fogery’.  Which is, of course, a problem for the Democrat Party.  For a wise voting public will not help them win elections.  As their Keynesian economic policies have nothing but a long record of failure.  Giving us the Great Depression, the stagflation of the 1970s, the dot-com recession and the Great Recession.  To name a few bad economic times Keynesian economics have given us.  Things older people know from education and experience.  But the kids voting Democrat don’t.

Keynesian economics ushered in the era of Big Government.  And did something the Socialists could not.  Conditioned people to accept that government knows best.  Especially young people.  Uneducated and inexperienced young people.  Despite the Democrats’ horrible record concerning things economic.  Because of this record the Democrats use lies and deceit to attack free market capitalism.  That economic system that worked better than any other.  To get people who knew no better to mistrust free market capitalism.  And ask for the government to fetter unfettered capitalism.  To make the world a fairer place.

The Democrats use Public Education to teach our Kids to Distrust Capitalism and to Trust Government

It sounds good to the inexperienced and uneducated.  Because it feels good to think in terms of fairness.  And if there is one thing the young have are emotions.  They like to use their hearts.  Not their brains.  As they are idealistic and naïve.  Unlike those old fogies who are realists.  They can’t be fooled or swayed by the Democrat lies because they have learned and experienced a lot in their long lives.  And heard the same old Democrat lies all through those long lives.  Which is why the Democrats work so hard on the youth vote.  The War on Women, their lax drug attitudes, birth control, abortion, gay rights…all of these are to get the young to think in terms of fairness.  To tug on their heartstrings.  To get them emotional.  And keep them emotional.  As well as ignorant.

The more ignorant people are the easier it is to lie to them.  Anyone who knows the history of Western Civilization will understand how life became better for people as we moved closer to free market capitalism.  Anyone who knows classical economics will understand how thrift, savings, free trade, sound money, etc., made America the number one economy in the world.  While the Keynesian policies of today are threatening to knock America out of that number one spot.  People who understand these things are not going to vote Democrat.  Which is why the Democrats work hard to keep people from learning these things.  By constantly lying about them.  And not teaching them in the institutions they control.  Our public schools.  And our institutions of higher education.

The Republican equation for winning votes is a difficult equation.  Knowledge + Experience + Reason = Republican Votes.  It’s difficult because the Democrats have long controlled public education.  Thanks to their friends in the teacher unions.  And their friends running our institutions of higher education.  Which spend more time teaching our kids to distrust capitalism.  And to trust government.  To feel more.  And think less.  To live for today.  And not worry about tomorrow.  Making it very difficult for the Republicans to get young voters to vote for them.  As they are unknowledgeable (thanks to our public schools), inexperienced (because they are young) and prefer emotion over reason (because feeling is more fun than thinking).  Which is why old fogies (the knowledgeable, experienced and thinking) vote Republican and the youth vote does not.

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