Anchor/Passport Babies proof that People wished Britain/America had conquered the World

Posted by PITHOCRATES - February 8th, 2014

Week in Review

The problem with a generous welfare state and porous borders is that they attract a lot of foreign-born people to your country to cash in on those generous welfare benefits.  Some even make the journey while pregnant so their child is born in the country with the generous welfare benefits.  And not the cruel, cold-hearted benefit-free country they are escaping.  Giving them an ‘anchor’ in the country they’d much rather live in than the country they don’t want to live in.  Their native country.

The United States has a porous border with Mexico.  And many Mexicans give birth in the United States while in the country illegally just so their child doesn’t have to grow up in Mexico.  Which when you think about is a statement on how these Mexicans feel about the ‘imperial’ United States.  They must really hate them for not taking the rest of Mexico when they won the Mexican War.  Had the Americans done so there would be no need for anchor babies.  For they would already be enjoying American citizenship south of the Rio Grande.  Based on the number of Mexicans entering America illegally, at least.

The United States isn’t the only country people want to live in.  Canada, too, is a beautiful country with a generous welfare state.  The winters are a little colder, though.  But that doesn’t stop people from trying to become Canadian citizens with anchor babies.  Only they call them ‘passport babies’ in Canada (see Canadian citizenship bill to be tabled Thursday by Susana Mas posted 2/2/2014 on CBC News).

Alexander said the proposed changes to the Citizenship Act would also aim to reduce the current backlog of applications and change the conditions for eligibility.

The government is also considering changes to tackle the problem of so-called “birth tourism” or “passport babies,” but Alexander told CBC News they would not be included in this bill.

Americans and Canadians aren’t better people.  They just live in countries that allow their people to be better.  Which is the problem in Mexico.  Not the people.  As the Americas were colonized Britain was further along in representative government than Spain.  Free market capitalism replaced mercantilism quicker in British America than it did in Spanish America.  And democratic institutions were more developed in British America than they were in Spanish America.  Such that the foundation for representative government, free market capitalism and democracy was more robust in British American than it was in Spanish America.

Because of this when the Americans gained their independence great peace and prosperity followed.  A first following a civil war.  Allowing America and Canada (later granted their independence from the British Empire) to be lands of opportunity.  With strong human rights.  Ironically, in large part to the School of Salamanca.  One of the greatest gifts Spain gave to the world.  Which is why people want to have their babies born in these countries.  So they can be as great as they want to be.  Because only representative government, free market capitalism and democracy can make this possible.  At least based on history.

But you can’t have people entering your country unchecked.  Especially if they’re coming for the benefits.  And your country has annual deficits and a growing national debt.  For adding more people to the benefits roll when you can’t afford it will transform the country from that land of opportunity people want to come to into the country they are fleeing.  Countries with high spending and devalued currencies that lead to black markets and lawlessness.  The very things people want to get away from by having their babies in the United States and Canada.

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Victimization + Demonization + Emotion = Democrat Votes

Posted by PITHOCRATES - February 6th, 2014

Politics 101

Politicians Lie because they will Lose Elections if they Tell the Truth

Politicians lie.  Why?  Simple.  Politicians lie when telling the truth won’t help them win an election.

When President Obama lied the Lie of the Year he lied for a reason.  People didn’t like the Affordable Care Act (aka Obamacare).  They did not want national health care.  And they believed that Obamacare would put them onto the path to national health care.  To allay their concerns President Obama said, “If you like your health care plan, you can keep it.  Period.”  The statement that became the Lie of the Year.  Because a lot of people lost the health care they had and wanted to keep.  In fact, they wrote the Affordable Care Act to make sure that would happen.  As they need to herd as many of the young and healthy into Obamacare as possible to make the thing work.  People who would pay into the program while not collecting any benefits.  So they could subsidize the old and sick.

Had the president told the people that they would lose the health care plan that they liked and wanted to keep there would have been a lot more opposition to the Affordable Care Act.  With constituents pressuring their representatives to vote against it or they would vote against them in the next election.  This is why politicians lie when they do things against the will of the people.  Because they will lose elections if they tell the truth.

Having Victims is No Good unless you have someone to Blame for their Victimization

Democrats lie a lot.  Because their policies have a long history of failure.  Especially their economic policies.  And that’s because Democrats embrace Keynesian economics with a religious fervor.  Despite Keynesian economics giving us the Great Depression, the stagflation of the Seventies, the dot-com bubble recession and the Great Recession.  No, these Keynesian disasters don’t give Democrats any reason to doubt their faith.   Because at the heart of Keynesian economics is an activist government in the private sector economy.

Democrats like to fault capitalism.  Saying unfettered capitalism is unfair.  Unfeeling.  Cruel.  And just plain mean.  So they involve themselves in the private sector economy to even the playing field.  To unrig the rigged game.  To remove the unfair, unfeeling, cruel and mean elements of unfettered capitalism.  By fettering capitalism.  And the first thing they do is identify victims of capitalism.  A secretary who pays a higher tax rate than her boss.  Warren Buffet.  Minimum wage workers who can’t earn a living wage.  And, of course, people who live in fear of losing everything because they don’t have health insurance.

Of course having victims is no good unless you have someone to blame for their victimization.  Such as the 1% who are extremely wealthy but don’t pay their ‘fair share’ of taxes.  Even though they pay over a third of all federal income taxes while totaling only 1% of the population.  Greedy business owners who’d rather pocket millions while depriving their workers from earning a living wage.  Even though most business owners are not millionaires and probably could earn more by working for someone else.  And evil corporations who force people to work against their will or lose their health insurance and other benefits.  Even though people tend to work where they receive the best pay and benefit package their skill and experience can get.  And will leave one job in a heartbeat for a job with a better pay and benefit package elsewhere.

The Affordable Care Act is an Economic Model that cannot deliver on its Promise

Once they have their victims and their villains all they need to do is pull on the heartstrings.  To generate sympathy for the victims.  While getting these same people angry at the villains.  Which they do by avoiding facts.  Instead, they tune in to people’s emotions.   Victims are sad.  And we should do something to help them from their victimization.  Villains are bad.  And we should do something to punish them.  So they demonize these villains.  Getting the people to believe that punishing them, say, with higher taxes will somehow improve their lives.  Which it won’t.  In fact, they could take all the wealth away from the 1% and imprison them but it won’t make a difference in the lives of the 99%.  For if the 1% are no longer creating wealth they would be unable to pay over a third of all federal income taxes anymore.  Requiring higher taxes on the 99%.  Or a drastic cutting of government benefits.

If people understood sound economic principles (and not the Keynesian nonsense our power-hungry politicians favor) they would not be so emotionally manipulated.  In fact, if people had a solid understanding of history they would never vote for anyone attacking capitalism.  As unfettered capitalism is the only economic system that allows people without privilege to be as successful as anyone else in the country.  Whereas the most anti-capitalistic countries have had the greatest poverty and human rights abuses.  Such as the former Soviet Union, the People’s Republic of China, the former Eastern Bloc countries, North Korea, Cambodia, Cuba, etc.  So for emotional manipulation to work they need a not so educated public. Which is why the Democrats control public education and our universities.  And champion pre-K.  To get control of our kids as soon as possible.  To dumb them down.  And program them into good Democrat voters.

This is the formula the Democrats use to win elections.  Victimization + Demonization + Emotion = Democrat Votes.  For they can’t win by telling the truth.  Or having informed voters.  So they use their control of our educational system to make more emotionally pliable voters.  Ones that are easier to lie to.  And that they can sway with fiery rhetoric.  Which is why we have Obamacare today.  Because the Affordable Care Act is an economic model that cannot deliver on its promise.  To provide a higher quality health care to more people while costing less.  Which is impossible.  Just as it is impossible to draw a square circle.  It’s either a square.  Or a circle.  It cannot be both.  Ditto for the promise of Obamacare.  Which is why to get people to believe that it was possible to give them more for less required telling a lie so big that it was voted the Lie of the Year.

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Health Care Economics

Posted by PITHOCRATES - January 20th, 2014

Economics 101

Because Obamacare Insurance pays for everything Under the Sun it is anything but Insurance

Do you know what the problem is with health care?  Insurance plans that give away free flu shots.  Not that flu shots are bad.  They’re not.  And it’s a good thing for everyone to get one every year at the onset of the flu season.  For it does seem to limit the spread of the flu virus.  It’s because we get a flu shot every year is why insurance shouldn’t pay for it.  Because we know about this expense.  And we can budget for it.  Just like we can budget for our monthly cellular bill.  Which is in most cases more than ten times the cost of one annual flu shot.

When Lloyds of London started selling marine insurance at that coffee shop they were selling insurance.  Not welfare.  Losing a ship at sea caused a huge financial loss.  And shippers wanted to mitigate that risk.  So every shipper paid a SMALL premium to protect against a LARGE loss.  A POTENTIAL sinking and loss of cargo.  Not every ship sank, though.  In fact, most ships did not.  Which is why that little bit from everyone was able to pay the financial loss of the few shippers that lost their ship and cargo.  But that’s all that Lloyd’s of London paid for.  They didn’t pay a dime to shippers whose ships didn’t sink.  No, those shippers paid every cent they incurred (crew, food, rum, etc.) to ship things across those perilous oceans.  Because they could expect those costs.  And they could budget for them.

This is how insurance works.  Which isn’t how our current health insurance system works.  No.  Today people don’t want to pay for anything out-of-pocket.  Not the unexpected catastrophic costs.  Or the EXPECTED small costs that everyone can budget for in their personal lives.  Like an annual flu shot.  Childhood vaccinations.  Annual checkups.  Childbirth.  Etc.  Even the unexpected things that aren’t that expensive.  Like the stitches required when a child falls off of a bike.  Things that would cost less than someone’s monthly cellular bill.  Or things that people can plan and save for.  Like a house.  A car.  Or a child.  Which is why Obamacare insurance is not insurance.  It pays for way too many expected costs that we can budget for.  And because it does it only increases the cost of our health insurance policies.  Which are now anything but insurance.

Free Market Forces and Insurance for Catastrophic Costs will Fix any Problems in our Health Care System

When we pay these things out-of-pocket there are market forces in play.  For a doctor is not going to charge someone they’ve been seeing for years as much as he will charge a faceless insurance company.  Even today some doctors will waive some fees to help some of their long-time patients during a time of financial hardship.  Because there is a relationship between doctor and patient.  And they want to help.  Which is why they sometimes overcharge insurance companies to recover costs they can’t recover in full from other patients.  (Which is why insurance companies are vigilant in denying overbillings).  Especially those things government pays for.  Medicaid.  And Medicare.  Which the government discounts.  Leaving health care providers little choice but to overbill others to pay for what the government does not.

When we pay out-of-pocket doctors can’t charge as much.  Because they need patients.  If they charge too much their patients may find another good doctor that charges a little less.  Perhaps a younger one trying to establish a practice.  These are market forces.  Just like there are everywhere else in the economy.  Even a cancer patient requiring an expensive miracle drug benefits from market forces.  If there was true insurance in our health care system, that is.  Cancer is an unexpected and catastrophic cost.  But not everyone gets cancer.  Just as every ship does not sink.  Everyone would pay a small fee to insure against a financial loss that can result from cancer.  Where that little bit from everyone buying a catastrophic health insurance policy was able to pay the financial loss of the unfortunate few that require cancer treatment.  Even one including a costly miracle drug.  Because only a few from a large pool would incur these financial losses insurers would compete against other insurers for this business.  Just like they do to insure houses.  And ships crossing perilous oceans.

Health care would work better in the free market.  It doesn’t today because government changed that.  Starting with FDR putting a ceiling on wages.  Which forced employers to offer generous benefits to get the best workers to work for them when they couldn’t offer them more pay.  This was the beginning.  Now the health insurance industry is so bastardized that it doesn’t even resemble insurance anymore.  It’s just a massive cost transfer from one group of people to another.  Instead of a pooling of money to insure against financial risk.  For the few unexpected and catastrophic costs we cannot afford or budget for to pay out-of-pocket.

Because our Health Care System is the Most Expensive in the World it is the Best in the World

The American health care system is the finest in the world.  When you have a serious health care issue and you have the wherewithal there’s only one place you’re going for your medical care.  The United States.  And the best costs.  And it’s because it is so costly that people enter into the health care industry to do wonderful things.  Such as pharmaceutical companies.  Who many rail against for charging so much for the miracle drugs only they produce.  It’s a free country.  Anyone could have created that miracle drug.  All they had to do was to spend a boatload of money for years on other drugs that were losers.  Until they finally found one that wasn’t a loser.  That’s all you had to do.  Yet few do it.  Why?

Because creating miracle drugs is an extremely expensive and often futile endeavor.  Which is why we award patents to the few who do.  Which is the only reason they pour hundreds of millions of dollars into research and development and pay massive liability insurance premiums for taking a huge risk to put a drug onto the market that may harm or kill people.  They do this on the CHANCE that they may develop at least one successful drug that will pay for all of the costs incurred to develop this one drug, the costs for the countless drugs that failed AND provide a profit for their investors.  Who took a huge risk in paying their employees over the many years it took to come up with at least one drug that wasn’t a loser.  Their investors do this only because of the CHANCE that this pharmaceutical will develop that miracle drug that everyone wants.  But most don’t.  And investors just lose their investment.  But it’s the only way miracle drugs become available to us.  Because of rich investors who were willing to risk losing huge amounts of money.

This is what the profit incentive gives us.  The best health care system in the world.  Why the countries based on free market capitalism have the finest health care systems in the world.  And why North Korea, Cuba, the former East Germany, the former Soviet Union, Venezuela, etc., have never given us miracle drugs.  There never was an economic incentive throughout the economy to do so.  Like there is in countries with free market capitalism.  Where everyone at every level pursues profits that result overall in a pharmaceutical industry that produces these miracle drugs.

There is an expression that says you get what you pay for.  Our health care system is the most expensive in the world.  And because it is it is the best in the world.  Trying to inhibit the profit incentive for research and development and forcing medical providers to work for less (steeper Medicaid, Medicare and now Obamacare discounts) will change that.  Because you do get what you pay for.  And those who live/have lived in North Korea, Cuba, the former East Germany, the former Soviet Union, Venezuela, etc., can attest to.

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Union Cabbies want you to wait Longer for a Ride

Posted by PITHOCRATES - January 19th, 2014

Week in Review

Today there is an app for everything.  Have smartphone will travel.  Literally.  Unless, that is, union cabbies want to make you stand in the rain/snow and cold for an hour in a bad neighborhood (see Why a taxi driver protest turned violent in Paris by Dylan Stableford posted 1/14/2014 on Yahoo! News).

The attacks by striking cab drivers on Uber cars in Paris on Monday — with protesters shattering windows, smashing mirrors and slashing tires — appear to be the first violent clashes in the ongoing battle between local cabbies and app-based car services.

But tensions, in Paris and elsewhere, have been brewing for months. Cab drivers say Uber and apps like it, which allow customers to hitch rides nearly instantly from their smartphones, create unfair competition and undermine the traditional cab-hailing business…

In Portland, Ore., Uber has urged lawmakers to change an ordinance requiring town cars to wait an hour before picking up would-be passengers.

In Paris, a “15-minute law” went into effect on Jan. 1, requiring all Uber drivers to wait 15 minutes after a request is placed to pick up a passenger — a move aimed at leveling the competition for traditional Parisian cabbies.

Nonetheless, hundreds of unionized cab drivers participated in Monday’s protests in Paris, demanding a 30-minute delay, minimum fares and a driver recruitment ban. At least 12 Uber cars were targeted, according to local reports.

Imagine that.  Because someone else found a better way to do things union cabbies want new laws to prevent that better way.  They want to make a person wait for an hour before anyone picks them up.  An Uber car could be around the corner when they get the request.  They could drive around the corner and pick this person up within three minutes.  But if the union cabbies get their way the Uber car will have to sit there for an hour before moving.  To give a union cabbie a chance to drive by and get hailed.  Leaving that person in the rain or snow.  Or in a bad neighborhood.  Just standing there.  Vulnerable.  Just so someone providing a poorer service can get his or her business.

This is the difference between free market capitalism and crony capitalism.  In free market capitalism the consumer is number one.  And gets the highest quality at the lowest price.  In crony capitalism unions, businesses and government are number one.  For they are cronies and look out for each other.  At the expense of the consumer.  Who gets lower quality and higher prices.  As unions, businesses and governments collude together to enrich themselves by forcing people to pay more for less.

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China’s Fettered State-Capitalism puts Poisonous Gutter Oil on Store Shelves

Posted by PITHOCRATES - January 11th, 2014

Week in Review

There’s a myth in America that if we don’t have government food inspectors that evil corporations will sell poisonous food to unsuspecting Americans.  As if people will keep buying from a food manufacturer who has a reputation of poisoning their customers.  They won’t.  For every food brand has a competitor just waiting to take their business away.  Which they will do if the people believe they sell a higher quality product.  So there is a huge incentive to sell people nothing but the best and safest food they can.  For without government limiting a business’ competition it is only their good name that keeps customers coming back.  Unlike in China (see Ten jailed for producing, selling ‘gutter oil’ posted 1/7/2014 on China Daily USA).

A man was given a suspended death sentence and two others life in jail for producing and selling poisonous food, a court in east China ruled on Tuesday…

In 2006, they began to produce “gutter oil”, which refers to oil illegally made by reprocessing waste oil or even leftovers from restaurants. It was then marketed and re-used as cooking oil.

They then sold the “gutter oil” to 17 edible oil dealers in Shandong and Shanxi provinces, with a sales value of 52.4 million yuan…

China has been clamping down on “gutter oil” as part of its food safety efforts. The oil, which contains carcinogenic substances, is dangerous if consumed.

This is what happens when you fetter unfettered capitalism.  And transform it into state-capitalism.  Or a planned economy.  Where the government picks winners and losers.  Favoring their friends.  And hurting their competition.  Such as by limiting competition to protect their friend.  Giving them a state-enforced monopoly.  The only way a monopoly can exist.

Without competition you can sell crap and the people have little choice but to buy it.  Which is why a lot of businesses in a planned economy like China do things like this.  Because they can get rich.  Until someone catches them.  Because without unfettered capitalism other competitors can’t enter the market to keep them honest.  Leaving you to rely on a bloated, ponderous and often corrupt public sector to police that planned economy.  And because they aren’t that good you get people trying to sell gutter oil in China.  While food manufacturers police themselves in the United States.  Because they know their brand is not the only brand on supermarket shelves.

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FT204: “The young and dumb vote liberal while the old and wise vote conservative.” —Old Pithy

Posted by PITHOCRATES - January 10th, 2014

Fundamental Truth

Having the Ability to give Beautiful Young Women Nice Things helped Charlie Harper get them in Bed

On the show Two and a Half Men there was an episode where Charlie (played by Charlie Sheen) was having a conversation with someone where he was trying to defend himself and the choice he makes in women.  In broke off in mid sentence and said something like, “Yeah, you got me.  Young and dumb.  That’s how I like them.”  Or something like that.

Charlie Harper was about 40 years old.  Rich.  He drank to excess.  Smoked cigars.  Gambled.  Enjoyed strip bars and prostitutes.  And he womanized.  Getting beautiful young women back to his Malibu beach house for one night of passion.  Which was all he wanted.  One night.  The ladies thought he wanted more.  Because of the lies he told them to get them to his Malibu beach house.  And when they left in the morning they expected Charlie to call them.  But he never did.  Which is why he liked his women dumb.  For it was easier getting them into bed.  And out of it.

Charlie was skilled in the art of picking up women.  And what to do with them after picking them up.  Skill gained over years of experience.  And being rich helped, too.  Because being able to give beautiful young women nice things (expensive dinners, going to the best clubs, spending the night at a Malibu beach house, gifts, etc.) got their attention.  They liked that life.  And wanted more of it.  So they went to his bed with him.  Thinking that by doing whatever he wanted there would be more of this glamorous life to come.  But before that could happen Charlie was telling his lies to another young and dumb woman.

Every Communist Dictator that promised a Utopia to their People made their lives Absolutely Horrible

Charlie was engaged a few times.  The last time he was engaged to Chelsea (played superbly by Jennifer Taylor).  Who was a little older than most of the women he took to his bed.  Smart.  And wise.  She had a career.  Though he had a long engagement (for him) it did not last.  Because she could do better.  Eventually leaving him for someone more mature.  In fact, every age-appropriate relationship he had failed.  Because he did not do well unless they were young and dumb.  As Chelsea said one time when leaving after a breakup, “We both knew you were going to blow it eventually.”

You can learn a lot by watching Two and a Half Men.  For the world is full of Charlie Harpers.  People that lie and manipulate people to get what they want.  Who depend on people being young and dumb.  This is how liberals have risen to power.  By selling their utopian world view to the young and ignorant.  Before they get old and wise.  And learn the truth of their liberal utopia.

There was an article in Rolling Stone saying what America needs is full-blown communism.  The author is a young guy.  An academic type.  Knows everything.  But has experienced nothing.  His head was filled with communist ideals from his leftist professors.

Imagine no possessions
I wonder if you can
No need for greed or hunger
A brotherhood of man
Imagine all the people
Sharing all the world…

But what John Lennon doesn’t sing about in Imagine is that every communist dictator that promised these things to the people made their people’s lives absolutely horrible.  Where people lived in fear of the secret police.  Were tortured at the hands of the secret police.  And died at the hands of the secret police.  Communism as an ideology has killed more people than any other dictator or ideology in all of history.  Yet college kids everywhere still imagine a world where all the people live as one.  Under the boot of an oppressive police state.  That forces the people to live in a brotherhood of man.  Or die.

Liberals are in a lot of ways like Charlie Harper because they like their Electorate Young and Dumb

Joseph Stalin terrorized his people with the KGB.  The East Germans shot their own people who tried to escape climbing over the Berlin Wall.  Cambodia’s Pol Pot killed a greater percentage of a nation’s population than any other dictator in history.  Cubans risk their lives to float from Cuba to the United States.  The masses in North Korea still suffer famine because of their oppressive Stalinist state.  Where it’s the military first.  Then the people.  And so on.  Yet college students still wear shirts with pictures of Che Guevara wearing his beret.  This hero of ignorant college students.  A guy who had urged the Soviets to launch their nuclear missiles at the United States during the Cuban Missile Crisis.

And when the secret police wasn’t killing their people the people were going without the most basic necessities.  For their planned economies could not keep their store shelves stocked.  So people went without many of the things people in Western capitalist economies take for granted.  Things even ignorant college students take for granted.  Things they just couldn’t get in their beloved communist utopias.  Ronald Reagan won the Cold War not by waging nuclear war.  He won it by creating an arms race that the Soviet economy could not keep up with AND feed her people.  Like the Americans could.  In fact, the American economic output was so great that they could feed all Americans with enough left over to export to the Soviet Union.  So the Soviet people did not die from famine.

All throughout history free market capitalism provided a better life than any planned economy.  Even in the United States.  When FDR increased government spending to end a recession it only stretched out that recession into the Great Depression.  Excessive government spending didn’t work in the 1970s for Nixon, Ford or Carter.  Nor did it work during the Great Recession for Obama.  But cuts in tax rates provided explosive economic growth for Warren Harding/Calvin Coolidge in the 1920s, JFK in the 1960s, Ronald Reagan in the 1980s and even George W. Bush in the 2000s.  Yet the young and dumb buy the liberal lie that government spending can provide a better life for all despite history proving otherwise.  And keep voting liberal.  Until they get old and wise, that is.  And start voting conservative.

Liberals are in a lot of ways like Charlie Harper.  For they like their electorate young and dumb.  So they can more easily lie to them.  To get what they want.  By making promises they never intend to keep.  Such as that brotherhood of man sharing all of the world.  For after a century or so of promising this the only people who ever enjoyed the liberal/communist utopia were those few in power.

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Crony Capitalists paid their Friends in Government to Ban the Incandescent Lamp

Posted by PITHOCRATES - January 5th, 2014

Week in Review

Competition makes everything better.  For consumers.  That’s you and me.  For it’s that competition that makes business give us more for less.  To please us.  And to persuade us to give them our dollars for their products.  It’s a great system.  It prevents businesses from giving us shoddy goods at high prices.  For if they did they would lose their customers.  And go out of business.  So competition in free market capitalism gets businesses to choose to please their customers.  By giving them more for less.  Which allows them to stay in business.  Unless they have corrupt friends in government (see Industry, not environmentalists, killed traditional bulbs by TIMOTHY P. CARNEY posted 1/1/2014 on the Washington Examiner).

Say goodbye to the regular light bulb this New Year.

… Starting Jan. 1, the famous bulb is illegal to manufacture in the U.S., and it has become a fitting symbol for the collusion of big business and big government.

The 2007 Energy Bill, a stew of regulations and subsidies, set mandatory efficiency standards for most light bulbs. Any bulbs that couldn’t produce a given brightness at the specified energy input would be illegal. That meant the 25-cent bulbs most Americans used in nearly every socket of their home would be outlawed…

Competitive markets with low costs of entry have a characteristic that consumers love and businesses lament: very low profit margins. GE, Philips and Sylvania dominated the U.S. market in incandescents, but they couldn’t convert that dominance into price hikes. Because of light bulb’s low material and manufacturing costs, any big climb in prices would have invited new competitors to undercut the giants — and that new competitor would probably have won a distribution deal with Wal-Mart.

So, simply the threat of competition kept profit margins low on the traditional light bulb — that’s the magic of capitalism. GE and Sylvania searched for higher profits by improving the bulb — think of the GE Soft White bulb. These companies, with their giant research budgets, made advances with halogen, LED and fluorescent technologies, and even high-efficiency incandescents. They sold these bulbs at a much higher prices — but they couldn’t get many customers to buy them for those high prices. That’s the hard part about capitalism — consumers, not manufacturers, get to demand what something is worth.

Capitalism ruining their party, the bulb-makers turned to government. Philips teamed up with NRDC. GE leaned on its huge lobbying army — the largest in the nation — and soon they were able to ban the low-profit-margin bulbs.

When you have collusion between big business and big government you no longer have free market capitalism.  No.  Instead you have crony capitalism.  Where rich people both in business and government collude with each other to make themselves even richer.  While making consumers poorer.

The lamp manufacturers got new laws that forced consumers to pay the higher prices they wouldn’t without a law compelling them to do so.  Making the lamp manufacturers richer.  And the lobbyists poured lobbying money over their friends in government.  Who probably stripped naked and rolled around on it, rubbing that cash all over their naked bodies.  And said God bless global warming.

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FT202: “You can’t indulge selfishness, narcissism and hedonism and expect the young to give up their life of consumption and gratification.” —Old Pithy

Posted by PITHOCRATES - December 27th, 2013

Fundamental Truth

The Generation that won World War II Sacrificed and Saved for the Future

The generation that lived through the Great Depression and World War II were a hardy people.  They knew a thing or two about sacrifice.  And going without.  For their wants often went unfulfilled.  And they were a skinny people.  As there was not a lot of food to eat.  First because of the Great Depression.  When people could barely afford to stay alive.  And then World War II.  Where the government rationed almost everything for the war effort.

So they spent little.  Saved what they could.  Got used to not having what they wanted.  And always worked hard for a better future.  Sound familiar?  No.  Of course not.  No one’s like this today.  That hardy generation survived the Great Depression and won World War II.  Making the world safe for democracy to flourish.  Their free market capitalism made a prosperous world of plenty.  So their children would never have to live in a world they had lived in.  As it turned out, though, that was a mistake.

Their children were not like their parents.  These baby boomers were not as hardy as their parents were.  While they struggled and went without the baby boomers didn’t.  The baby boomers became the Me Generation.  Because it was all about them.  They rejected the hard work and sacrifice of their parents.  And didn’t save for a better tomorrow.  No.  For them it was all about the here and now.

The Me Generation rebelled against their Parents and became Anti-Parents

The Me Generation didn’t save like their parents.  They spent.  Changing the economy forever.  From one made strong and healthy driven by private savings that banks converted into investment capital.  To a Keynesian one.  Where Keynesian economists viewed savings as economic leaks from the economy.  No.  Spending was better.  Consumption was better than saving.  Besides, what did we have to save for anymore with the Federal Reserve printing money?  And the government paying our way for us in retirement?

The Me Generation was only too happy to help transform the government from one of savings and investment to one of consumptionand gratification.  And they lived Life in the Fast Lane (by Joe Walsh, Glenn Frey and Don Henley, recorded by the Eagles in 1976 on the studio album Hotel California).   “Everything all of the time.”  And when that wasn’t enough there was cocaine to fill the remaining emptiness.  “There were lines on the mirror, lines on her face.”  Sometimes the drug use became so intense it interfered with another past time of the Me Generation.  Sex.  “He was too tired to make it, she was too tired to fight about it.”

So while their parents won the Second World War they were partying and getting high and having as much casual sex as their excessive drug use allowed.  And because of it the Seventies gave us a new drug in the Eighties.  Crack.  And a war on drugs.  As well as AIDS.  Thank you, Me Generation.  For rebelling against your parents and becoming anti-parents.  Destroying our past culture and traditions.  And our religion.  Just so you can have “everything all of the time.”  Right now.  Without ever waiting to gratify an urge or desire.

Obamacare will Fail because the Young won’t give up their Life of Consumption and Gratification

The counterculture (i.e., the anti-parents) movement then entered academia.  Took over the curriculum in our public schools.  And our colleges and universities.  Where they taught our kids that everything their parents told them was wrong.  That they are destroying the environment.  That American imperialism is the greatest threat to world peace.  That the Founding Fathers were rich white slave owners who wrote the Constitution to further their greed.  That free market capitalism is cruel, callous and unfair.  While government is kind, feeling and fair.

The Me Generation learned something valuable as they entered academia.  And government.  That there are a lot of young people who vote.  And because many of them grew up already rebelling against their parents they pushed these people closer to them.  The anti-parents.  Helping them to hold on to political power.  So they appealed to all the things young people want.  Such as sex.  By providing free birth control and access to abortion.  They attack Christianity and tell their students there is nothing wrong with their life of consumption and gratification.  And, of course, they favor decriminalizing drugs.  And are making great headway in that area with marijuana.  I mean, kids just love the Democrats.  For they indulge their every want and desire.  Without parenting them to sacrifice and save for their future.  Like their insufferable parents.

So our young have never been defined more by selfishness, narcissism and hedonism.  Always living for the moment.  Without a care in the world for the future.  Making even the Me Generation seem selfless.  Who lived in relative anonymity in their narcissistic world.  Unlike today’s youth.  Who can’t survive without Instagram, Twitter and Facebook.   And must share every iota of their existence with the entire world.  Because it’s all about them.  The world revolves around them and the pursuit of their life of consumption and gratification.  So it is rather ironic that the very thing that keeps Democrats in power—indulging in the youth voters’ selfishness, narcissism and hedonism—could deal such a threatening blow to their power.  For Obamacare to work they need these young voters to be more like their parents and less like the people they are.  Thanks to the Democrat indoctrination in our public schools, colleges and universities.  To sacrifice some of their wants and desires to help their parent’s generation.  To consume less.  So the people they rebelled against can have free medical care.

This is why Obamacare (the Affordable Care Act) will fail.  The young and healthy do not want to give up their life of consumption and gratification.  Which means they’re not buying health insurance.  Only the old and sick are.  Because they need health care.  While the young and healthy don’t.  So they are not going to buy costly health insurance policies that they feel they will never use.  Instead they’ll pay the lower-cost fine.  So they can continue to live their life of consumption and gratification.  That the Democrats told them all their life was what they should do.  Not to save for the future.  Or sacrifice.  For their parents.  Their community.  Or their God.  So the Affordable Care Act will fail.  Because you can’t indulge selfishness, narcissism and hedonism and expect the young to give up their life of consumption and gratification.

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The Chinese Communists to embrace Free Market Capitalism more than President Obama

Posted by PITHOCRATES - December 21st, 2013

Week in Review

During the Eighties Democrats said the Japanese economy was the smart way to go.  Government partnering with business.  With government helping to make that messy capitalism more ordered and manageable.  Improving economic efficiency.  And economic output.  But all that government intervention and cronyism brought on a deflationary spiral.  Japan’s Lost Decade.  Which they’re still trying to recover from.

Over the last decade Democrats said the Chinese economy was the smart way to go.  Government partnering with business.  With government helping to make that messy capitalism more ordered and manageable.  Improving economic efficiency.  And economic output.  But it doesn’t appear the Chinese agree with them (see China factories stuck in cruise control by Charles Riley posted 12/15/2013 on CNNMoney).

After a long period of steady progress and faster growth, China’s factories have lost some momentum in the final months of the year…

…analysts said that sluggishness in the manufacturing sector suggests economic growth has started to weaken, a trend that will continue into next year…

China’s party leaders have spent much of the year plotting a course for economic reform that aims to deliver results by 2020.

Beijing’s plan calls for opening its financial markets and promoting greater foreign investment. The leadership also hinted at changes in how companies file for stock market listings, the introduction of a bank deposit insurance scheme and an acceleration of interest rate liberalization.

The roadmap seeks to roll back government control of state-owned enterprises and allow for greater competition with private firms.

The Chinese export economy created economic activity.  But the key to that was their low labor costs.  With the power of the state keeping labor costs low.  Which helped to make their exports inexpensive.  But it did not help grow a middle class.  Which meant all of China’s economic growth relied on those exports.  And when nations were suffering anemic economic growth those export sales fell.  And without a prosperous middle class there was nothing to replace those sales.  Causing the Chinese economy to lose momentum.

And what is China doing to regain that momentum?  Reduce the role of government in the economy.  Unlike President Obama.  Which could forever change the balance of power in the world.  For if the Chinese privatize their economy while the Americans strangle theirs with more government involvement the Chinese economy will grow greater and overtake the American economy.  Allowing the Chinese communist do something the Soviets could never do.  Beat America economically.  Because the Chinese communists embraced free market capitalism more than President Obama.

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FT200: “Only force can make people live in a world without choice.” —Old Pithy

Posted by PITHOCRATES - December 13th, 2013

Fundamental Truth

College Students and Hippies of Yesteryear have a Soft Spot for their Communist Heroes

The hippies in the Sixties saw a brotherhood of man.  They wanted to link arms and sing Kumbaya.  Live in their communes.  Get high.  Have unprotected sex with multiple partners who bathed infrequently.  While being one with nature.  And poop and pee in the great outdoors.  Like the animals.  Only with less grooming.  For they hated the Man.  And didn’t want anything to do with their parent’s generation.  They protested any figure of authority.  Protested the Vietnam War.  And protested against their government.  Speaking truth to power.  And yearned to bring the Marxist-Leninist revolution to America.

The hippies were rabid anti-capitalists.  Which is why they loved communism.  Where there were no possessions.  No religion.  Or greed or hunger.  Just imagine all the people sharing all the world.  Words from John Lennon’s song Imagine).  Former Beatle.  And one of the leaders of the counterrevolution.  Not to be confused with the other Lenin.  Vladimir Ilich Lenin.  Of Soviet Marxism-Leninism fame.  Or, rather, infamy.  One of many icons of the counterrevolution.  Along with Mao Zedong.  Ho Chi Minh.  Fidel Castro.  And, of course, Che Guevara.  Whose bearded and beret-wearing image adorns many a university dorm room wall and student t-shirt to this day.

College students today, just as the hippies of yesteryear, still have a soft spot for their communist heroes.  Thanks to many of these hippies of yesteryear having joined the establishment.  And are now teaching our kids in college the evils of capitalism and the goodness of government.  Despite their one-time fierce opposition to the Man.  Guess things change once you get money.  Like someone in the rock band The Who said when asked if he still hopes to die before he gets old (a line from My Generation-a song about youthful angry rebellion against their parent’s generation).  The reply was that being old wasn’t all that bad when you were rich.  Something the old hippies of the Sixties no doubt discovered.  And best of all they got rich by taking money from the capitalist pigs.  Their students’ rich parents.  Or the taxpayers who worked in that detested capitalist system.

Nations with the Marxist Brotherhood of Man with No Possessions have been the Worst Places to Live

It is ironic that without capitalism these communist-loving parasites could not be parasites.  For if no one was creating economic activity there would be no income to tax.  Or to pay for the one thing growing more expensive than health care.  College tuition.  Interestingly, there is no ‘Obamacare’ for our colleges and universities.  No.  They never label them greedy despite their being the greediest of them all.  But you know who they do label as greedy?  The taxpayers who oppose higher taxes to pay for the ever higher cost of higher education.  They’re the greedy ones.  Not the old hippies of the Sixties.  And their fellow anti-capitalists.

Another interesting thing about these anti-capitalists?  They yearn for one-party rule.  Which is why public education teaches our kids to distrust capitalism and to trust government.  And our colleges and universities teach our kids to be ashamed of their nation’s past.  And the importance of diversity.  Which is code for anything that isn’t American.  For America was founded by rich white slave-owners who stole the land from the Native Americans.  And America’s imperialist aggression is the only source of strife in the world today.  While ignoring the expanding communist revolution that was spreading out from the Soviet Union into the Eastern Europe, Asia, the Middle East, Africa and the Americas.  The one ideology that has killed more people than any other.  Through state oppression, wars and famine.

Yes, this brotherhood of man where there are no possessions have been in fact the worst places to live.  The Soviet Union, Eastern Europe, Mao’s Peoples Republic of China, North Korea, Vietnam, Cambodia, Cuba, etc.  These are all nations that had gulags or reeducation camps for political prisoners.  Those people who spoke—or thought—truth to power.  They all had police states where the people lived in fear of their government.  They suffered for the want of the most basic items (soap, toilet paper, etc.).  There was state censorship.  They persecuted anyone practicing any religion.  The people suffered from constant hunger.  And the occasional famine.  They killed anyone trying to escape their communist utopia.  Or sent them off to hard labor and torture.  If they escaped successfully then the state punished any family remaining behind.  To warn others what would happen if they escaped their communist utopia.

The Great Flaw of Socialism is being unable to Determine What is the Greater Good

Why did these communist states have police states and brutally oppress their people?  Because they had to.  When the communists built the Berlin Wall it wasn’t to keep people from West Berlin out of East Berlin.  It was to stop people escaping from East Berlin to West Berlin.  For the East Germans were suffering a terrific brain drain.  Capitalists believe in liberty.  The freedom to do what they want.  And to get paid for their services.  A highly skilled doctor expects a higher salary than a janitor.  And that just isn’t going to happen in a communist state.  You get what the state gives you.  No more.  Creating a heck of a free rider problem.  When your economic system works based on the Marxist premise from each according to ability to each according to need what you get is a lot of people showing little ability and a lot of need.  For the more ability you had the harder they forced you to work.  While the greater your need the more you got.  Such a system encourages people to do the minimum and not be extraordinary.  Which is why Sony, Samsung, Microsoft, Apple, The Beatles, etc., did not come from communist countries.

A communist state has a planned economy.  Instead of a free market economy.  Communist state planners manage the economy from top down.  Telling the raw material industry what materials to extract.  They tell what factories get these raw materials and what they are to build.  Etc.  Whereas in a free market economy the economy is driven bottom up by the consumers.  When consumers start buying a lot of one thing the price for that one thing rises.  Attracting other businesses into the market to meet that rising demand.  Who place orders with their wholesalers.  Who place orders with their manufacturers.  Who place orders with their industrial processors.  Who place orders with their raw material extractors.  Hundreds of thousands of decisions happen as this consumer demand travels up the stages of production in a free market economy.  Giving the people what they want.  And not what a state planner decides to give to the people.

This is why communist (and socialist) states are oppressive dictatorships.  Because state planners decide for the people.  Which must start with the supreme decision maker.  The Joseph Stalin, the Mao Zedong, the Ho Chi Minh, the Kim Jong Un, the Raul Castro, the Hugo Chávez, etc.  And these people don’t take polls or hold elections.  Well, at least elections that are legitimate.  Kim Jong Un continues the state policy of his predecessors.  No economic reform.  Money goes to the military first (especially for his nuclear toys) and whatever is left over may go to the people.  And anyone who disagrees with him or thinks wrong goes to the gulag.  Or is executed.  Like his uncle.  While the people suffer the want of the most basic things.  Like food.  North Korea to this day still suffers the occasional famine because of its economic policies.  But one problem the North Koreans don’t have?  Deciding where to go for lunch.

“Where do you want to eat?  I don’t know, where do you want to eat?”  This can go on until someone forceful makes the decision for the group.  Often making no one happy.  But it will end the endless “where do you want to eat?”  This is the great flaw of socialism.  Being unable to determine what is the greater good.  Because people rarely agree on what’s best for other people.  Just look at the recent budget agreement that made few people happy.  They were unhappy because they disagreed on what was the greater good.  People are different.  One size does not fit all.  You just can’t please all of the people all of the time.  So you have to force your will on the people.  The only mechanism that makes socialism work.  Force.  Because people can rarely agree on where to go to lunch let alone national policy.  And this is why all communist/socialist states end in brutal dictatorships.  Because only force can make people live in a world without choice.

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