FT162: “It’s Good to be King or in the Upper Echelons of the Aristocracy or in the Federal Government.” —Old Pithy

Posted by PITHOCRATES - March 22nd, 2013

Fundamental Truth

King Louis XVI of France enjoyed all the Benefits that came with being King until his Arrest and Execution

In Mel Brooks’ The History of the World Part: I we see a satirical look at a broad swath of history.  It’s funny.  And often crude.  Such as the first art critic.  Who is a caveman reviewing a cave painting.  Everyone waits with bated breath for his critique.  After a long and serious consideration of the work of art the critic picks up the front of his animal skin clothing.  And urinates on the artwork.  To the displeasure of the artist.

Then Brooks looked at Rome and the excesses of Caesar.  Roman Emperor.  Absolute ruler of much of the known world.  Who lived in the lap of luxury.  And enjoyed arbitrary power.  Who could do pretty much whatever he wanted to do.  And did.  In the movie we see his legions bringing him treasures from conquered lands.  Which they poured over him in an alabaster bathtub.  Later, when a stand-up philosopher accidentally called the emperor fat and corrupt he sentenced him to death.  As he did to the wine steward who spilled wine on him.  Brooks made this funny in the movie.  But the best comedy is based in truth.  Suffice it to say you wouldn’t insult Caesar if you knew what was good for you.

Then we see Brooks have fun with King Louis XVI of France.  Who ruled just before the American Revolutionary War.  Until his arrest and subsequent execution in the French Revolution.  The French monarchy was an absolute monarchy.  The king could do whatever he wanted.  During his reign France was going broke thanks to his predecessor’s numerous wars.  And Louis’ support and financing of the American Revolution.  Which he paid for mostly with borrowed funds.  Leaving French finances in a mess.  Some bad harvests led to a famine or two.  So the common people were suffering during his reign.  While Brooks showed Louis enjoying his luxurious life at the Palace at Versailles.  With little regard for his people.  Enjoying all the benefits that come with being king.  As he groped the pretty ladies that caught his eye.  And said into the camera, “It’s good to be king.”

A King needs an Aristocracy so he can trade Privilege for Wealth to Secure his Power

The portrayal of Louis the XVI is not exactly accurate.  Or fair.  For he was a decent man.  Who tried to get his people to love him.  He’s greatest fault was probably being a weak and indecisive king.  Something most tyrants aren’t.  And there wouldn’t have been a United States of America without him.  Something else in Louis’ favor.  But the life of luxury he enjoyed at Versailles wasn’t that far off the mark.  For kings lived like kings.  And if you had the right dad that exceptional life could be yours.  Something a lot of people wanted.  Even killing off some heirs to the throne to put themselves next in the line of succession.  For the words of Mel Brooks ring true.  “It’s good to be king.”

But the interesting thing about kings is that they can’t be king alone.  They need an aristocracy.  Rich people who the king allows to get rich.  As long as they share some of their riches with the king.  In the days of kings that meant landowners.  So those in the king’s court who ran the government were wealthy landowners.  They used their positions of power to secure their wealth.  And they used their power to amass more wealth.  Which they shared with the king.  And because they did the king maintained their privilege.  Which secured his power.  So it was not only good to be king.  But it was good to be in the upper echelons of the aristocracy.  Who lived almost as good as a king.

Meanwhile the poor masses toiled on the land.  Enriching the landowners.  And the king.  Who worked hard and got little in return.  For their life was often “solitary, poor, nasty, brutish, and short.”  As Thomas Hobbes wrote in Leviathan.  For the times of kings was the age of feudalism.  Where the masses were attached to the land.  Bonded to it.  And forbidden to leave it.  They were born on it.  They lived on it.  They worked on it.  And they died on it.  As their children would, too.  With no hope of ever doing something different than your father did.  Because in feudalism there was the king.  The aristocracy.  And everyone else.  Those whose lives were “solitary, poor, nasty, brutish, and short.”

There is no way the President can live like a King without the Privilege he gets with his Position of Power

This is what bothered Thomas Jefferson.  The connection between money and government power.  For it was only when they came together could they oppress the masses.  He wanted to keep the money as far away from those in government as possible.  He didn’t want to see only a few rich landowners.  He opposed the expansion of government.  And when he was president he cut government spending.  Not cuts in the growth rate of future spending.  But actual cuts in spending.  Unlike today.  Where government spending only increases.  Even when they cut it.

The country continues to struggle in the worst recovery since the recovery following the Great Depression.  If you look at the labor force participation rate (LFPR) you’d conclude we’re still in the worst recession since the Great Depression.  Yes, the official unemployment rate has fallen some.  But the LFPR has fallen off a cliff.  The only reason why the unemployment rate has fallen is that they have stopped counting hundreds of thousands of people who can’t find full-time work.  People are hurting.  There are fewer jobs now than when President Obama took office.  People are underwater in their mortgage.  The median income has fallen.  While gasoline and food prices soar.  But the stock market is doing well.  Thanks to the quantitative easing.  As rich investors can borrow large sums of cheap money to invest in the stock market.  Especially those with friends in the federal government.  Who don’t even have to risk their own money to get rich.  No.  Like aristocracies of old, they get large sums of taxpayer funds.  In return they collect and bundle money from campaign donors to give back to their friends in power.  To help keep them in power.  So they can continue to get large sums of taxpayer funds.

Meanwhile President Obama and the First Lady have been living it up.  There was the lavish vacation to Spain for the First Lady and her friends. The Christmas vacations in Hawaii.  The summer vacations on Martha’s Vineyard.  Ski trips to Vail.  Golfing with Tiger Woods.  Zipping back and forth across the U.S for fundraisers in Air Force One.  Often hobnobbing with the Hollywood Elite and music royalty.  The National Review Online reports the Obama White House annual household expenses are $1.4 billion.  For these traveling costs add up.  As the president enjoys the trappings of his high office.  And who wouldn’t want to spend $1.4 billion on their household expenses?  With that kind of money we wouldn’t be spending summer vacation in our backyards anymore.  But we don’t get to live like a king.  No.  Our lives are more “solitary, poor, nasty, brutish, and short” these days.  As jobs continue to disappear from the economy.  And median income falls.  So why does the president continue to live like a king when so many of the people are suffering?  Because it’s good to be king.  It’s good to be in the upper echelons of the aristocracy.  And especially good to be in the federal government.  For there is no way the president can live like a king without the privilege he gets with his position of power.

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FT139: “The political debate has evolved from no taxation without representation to representation without taxation.” —Old Pithy

Posted by PITHOCRATES - October 12th, 2012

Fundamental Truth

Because the Romans debased their Silver Coin they Required the People to Pay their Taxes in Gold or in Kind

High government spending caused the fall of the Roman Empire.  When the Roman Empire no longer expanded through military conquest it could no longer use the spoils of war to pay for the cost of empire.  Which presented some fiscal problems.  As the empire was never bigger.  Covering most of the civilized world.  Which they needed to protect with a vast army.  And governed through a vast bureaucracy.  Both of which cost lots of money.  Lots and lots of money.

So how did they replace the spoils of war?  Taxes, of course.  Starting small.  And growing lager.  To pay for the cost of the expanding state.  Government bureaucrats.  City improvements.  Food for the poor.  Food for the army.  And, of course, the mighty Roman legions.  Later, as citizens avoided serving in the Roman legions, the Romans turned to hired mercenaries to guard the frontier.  And the problem with sprawling empires?  They have very long borders to protect.  And that ain’t cheap.

To help pay for all of this the Romans turned to some bad monetary policy.  In addition to taxation.  Because their tax revenue just wasn’t enough.  So they started debasing their silver coins.  Putting more and more lead into the coins.  And less and less silver.  But this caused another problem.  Inflation.  As the currency became worth less it took more of it to buy anything.  So prices rose.  Making the silver coin pretty much worthless for taxes.  So the Romans required that people to pay their taxes in gold.  Or in kind.  If you grew wheat you gave a percentage of your harvest to the state.  If you made shoes you gave a percentage of all the shoes you manufactured to the state.

A King ruled over the Landed Aristocracy who Lived the Good Life as long as they were Loyal to their King and paid their Taxes

As the tax burden grew small business declined.  Small farmers and manufacturers said enough was enough.  They were working more for the state than for themselves.  So they quit their businesses and worked for someone else.  Because it was easier.  But this caused another problem for the Romans.  No one was making the stuff the Roman Empire needed anymore.  Food and manufactured goods were becoming scarce.  Which made it difficult to maintain their armies on the frontier.  And to provide the massive welfare state in the cities.  So the Romans addressed this problem with new laws.

If you didn’t like working your farm or your business and giving all the proceeds to the state, tough.  You no longer had a choice.  And neither did your children.  If you made shoes you were going to continue to make shoes.  And when you no longer could make shoes your children would continue in the trade.  Those working on farms became attached to the land.  And could never leave.  Regardless of who owned the farm.  If you farmed you would forever farm.  As would your children born on that land.  Allowing the landowners to raise their crops.  And pay their taxes.

So this led to a few rich landowners.  And impoverished masses working the land.  Sound familiar?  This would evolve into European feudalism.  Medieval manors.  The landed aristocracy (the few).  Peasantry (the many).  And, of course, kings (the one).  The basis of medieval governance.  Lasting thousands of years.  Where a king would rise to rule over the landed aristocracy.  Who he allowed to live the good life as long as they were loyal to their king.  And paid their taxes.  The nobility received certain privileges for this arrangement.  While the peasantry considered themselves lucky if they didn’t die from hunger.  And everyone lived happily ever after.  If you were lucky enough to be the one.  Or the few.

Representation without Taxation allows Government to Spend as Irresponsibly as They Please

Up until the 1200s a lot of France belonged to England.  Or, rather, the English nobility.  The barons.  But King John changed all of that.  For he liked to do what kings are wont to do.  Conquer.  And he tried to conquer a lot.  Only he wasn’t very good at it.  He blew a lot of the nobility’s taxes on failed adventures.  And lost a large chunk of France in the process.  So the taxpayers, the ones bearing the brunt of the king’s follies, reigned in King John’s powers.  The barons made John place his great seal on Magna Carta at Runnymede in 1215.  Which didn’t do a whole lot at the time.  But it ushered in the era of representative government.  And taxation only with representation.

England would become a constitutional monarchy with Parliament to limit the power of the king.  To sit in Parliament you had to have skin in the game.  That is, you had to be a taxpayer.  For this was taxation with representation.  Where those paying the taxes had a say in how the government spent those taxes.  And only those who paid the taxes.  To keep governments from irresponsibly spending those taxes.  A new system of governance that changed the world.  One that once people experienced they demanded for themselves.  As the American colonists demanded.  When Great Britain wanted to tax the Americans even though they had no say in how the British government spent that money.  Something very un-English.  And something that would become very un-American (which led to American independence).

For awhile, at least.  For soon governments found a way to return to their dictatorial ways.  By getting around that annoying taxation only with representation.  Which governments found insulting to their privileged status.  For it galled them that they had to let these taxpayers limit their powers.  But what choice did they have?  Governments must take money from others to establish their nobility.  As it was no longer their divine right to take what they wanted.  Thanks to those barons in 1215.  And Magna Carta.  Which opened the sluice gates to a lot of limitations on absolute power.  But two can play at that game they found.

Their answer?  Representation without taxation.  Allow people to vote who have no skin in the game.  To help the government take what they want.  And to spend it as they wish.  By simply giving those who don’t pay taxes government benefits.  Who will always vote for those who promise to give them more government benefits.  And if you get enough people on these government benefits you can overcome any limitations the taxpayers try to enforce on you.  Currently in the U.S about half of the population pays no income taxes.  While the top 10% of all earners pay approximately 70% of all federal income taxes.  So you have approximately 50% of the population who pay no taxes voting on tax policy for the 10% who pay most of the taxes.  Allowing government to spend as irresponsibly as they please.  Like in pre-Magna Carta days.  Thanks to representation without taxation.

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FT124: “Liberals use the courts to give them what the people won’t.” -Old Pithy

Posted by PITHOCRATES - June 29th, 2012

Fundamental Truth

Magna Carta led to Constitutional Monarchy and Representative Government

Medieval kings liked doing as they pleased.  From living well.  To expanding their kingdoms by force.  Or trying to.  As kingdoms got larger, though, this was more difficult to do.  Because the larger the kingdom got the more food they had to produce.  And kings didn’t feed their kingdoms from their castle vegetable gardens.  They needed the wealthy and powerful landowners.  Who owned the land.  Grew the food.  And provided the kingdom’s wealth.

These landowners made land valuable.  By growing food on it.  As famine was no stranger during the Middle Ages there was nothing more important than growing food.  Those who did became wealthy.  And their estates became mini kingdoms.  With lots of peasants working the fields.  And lots of soldiers to defend their land.  And to fight for their king in times of war.  Kings needed to maintain good relationships with these wealthy landowners.  To keep them supporting their kingdoms.  And to prevent any one of them from rising up and challenging the king for his throne.

King John of England was hurting his relationships with the wealthy landowners.  He fought a lot of expensive wars across the English Channel in France.  Which required high taxes on the English landowners.  The barons.  Worse, King John lost a lot of his battles in France.  Losing the barons some of their Normandy lands.  So the barons were becoming a little disgruntled with their king.  And they rebelled.  Eventually forcing the king to place his Great Seal on Magna Carta.  Limiting his powers.  It didn’t change things much at the time.  But it would lead to constitutional monarchy.  And representative government.

The Patriots of 1776 were none too keen on Creating a New Central Power

Kings don’t like limits on their power.  King John would go on to renounce Magna Carta.  And got the Pope’s approval to not honor the promises he made with the barons.  But these barons sowed the seeds of representative government in England.  And the Western World.  Greatly influencing the Founding Fathers in America.  Whose Constitution placed great limits on the government’s power.

The Americans were having some problems with their Articles of Confederation.  The sovereign states were taking care of themselves.  Sometimes at the expense of the other states.  Or the new nation.  And the new nation wasn’t making much progress in the international community.  A bit of a laughing stock to other nations.  Who were all sure it was only a matter of time before the American colonies would be British again.  For once the war was over there was little united about the states anymore.  So James Madison urged a meeting of the several states to revise the Articles of Confederation.  To help make a more perfect union.  And to move the new nation forward.  They met in Philadelphia in 1787.  And caused a firestorm.  For they didn’t revise the Articles.  They threw them away.  And wrote a brand new Constitution.

This inflamed a lot of the Patriots of 1776.  Who had voted to sever the bonds from a distant central power about a decade earlier.  And they were none too keen on creating a new central power to replace the one they just banished.  It took awhile but with the presence of George Washington and some words from Benjamin Franklin, two of the most trusted and experienced Americans who sacrificed a lot in securing their independence, they completed their task.  It wasn’t a perfect document.  But it was the best they were ever going to produce considering the sectional differences in the country.  And they sent it to the states for ratification.  James Madison, Alexander Hamilton and John Jay helped to secure ratification by writing a series of articles that we know today as the Federalist Papers.  Some of the finest Constitutional scholarship ever written.

As Few as Five People in Black Robes can Fundamentally Change the Nation

Key to the Constitution was the separation of powers that restricted the power of the new federal government that no one trusted.  There was a legislature to write law.  An executive branch to enforce law.  And a judicial branch to interpret law.  To make sure that the other two branches did not violate the Constitution.  Such a system would have really crimped King John’s style.  For the law was above all the people.  Including the executive.  He could only do the things the laws allowed him to do.  And the things the laws allowed him to do he could only do if the legislature agreed to pay for them.  It was a system of checks and balances that helped the nation to grow while maintaining personal liberty.

King John would have been particularly irked by the legislature.  Made up by representatives of the people.  Who enacted legislation that was in the best interest of the people.  Not him.  Fast forward to modern times and you find history littered with people who wanted to expand their power only to have that representative body of the people foil them.  Ruling elites.  Modern aristocrats.  Those who feel an entitlement due to a superior education.  A superior bloodline.  Or simply like-minded people who would rather have the days of unlimited power like they had in Medieval Europe.  Before the barons had to muck up the works with Magna Carta.

Over time they learned how to bring back some of the old ways.  The easiest way was just to get people to vote for them.  And they did this by giving them a lot of free stuff.  But there were some things that they just couldn’t bribe out of the people.  So they turned to the courts.  And did a little legislating with activist judges.  Sometimes bringing a suit all the way to the Supreme Court to create a law where there was no law.  Abortion is now legal even though there was never any federal legislation addressing it.  While there was plenty of state legislation forbidding it.  Until seven men in black robes overruled the will of the people in those states.

The Supreme Court is powerful.  For as few as five people in black robes can fundamentally change the nation.  Which is why presidential elections are so important.  Because presidents nominate judges to the Supreme Court.  And those on the Left depend on the timely deaths and/or retirements of Supreme Court judges so they can nominate activist judges.  To get a majority on the high court to rule in their favor on bad law.  Such as Obamacare.  An unpopular law.  A law the majority of the people want repealed.  A law that became law only with subterfuge (the mandate is not a tax).  A law that clearly violated the Constitution (forcing people to buy something).  Yet five people in black robes just fundamentally changed the nation by voting that Obamacare was Constitutional (the mandate is a tax).  Which just goes to show you that where there is a will there is a way.  A way to rule like a king.  Against the will of the people.

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Mercantilism, Royal Navy, Napoleon, Pax Britannica, Corn Laws, David Ricardo, Comparative Advantage, European Union and NAFTA

Posted by PITHOCRATES - May 22nd, 2012

History 101

Mercantilism gave Britain the Royal Navy which Ushered in the Pax Britannica

Great Britain had a rough go of it at the end of the 18th century.  They lost their American colonies in the American Revolutionary War.  A war that started over the issue of taxation to pay for the previous Seven Years’ War.  So instead of securing new revenue to pay down old debt they incurred new debt.  The French Revolution closed out the century.  Causing concern for some in Britain that their monarchy may be the next to fall.  It didn’t.  For the constitutional monarchy and representative government in Britain was a long cry from the absolute monarchy that they had in France.  So revolution did not come to Britain.  But war did.  As the French expanded their revolution into a European war.  Pulling the British back into war with their old enemy.

With a large conscripted French Army and the concept of total war France made total war.  Napoleon Bonaparte won a lot of battles.  Conquered much of Europe.  Even marched back and conquered Paris.  Proclaimed himself emperor of France.  And continued waging war.  Including an ill-conceived invasion of Russia.  Which marked the beginning of the end for Napoleon.  And the French Empire.  Weakened from war France saw her old nemesis, Great Britain, rise as the first superpower since the Roman Empire.  And like the Romans’ Pax Romana Britain entered a century of peace.  Pax Britannica.

The reason the British could do this was because of their mercantile past.  They set up colonies and international trade networks.  And they used the proceeds from that lucrative trade to finance the greatest naval power then in the world.  The Royal Navy.  And the Royal Navy would help keep the peace in the Pax Britannica.  She became the world’s policeman.  Making the world safe for trade.  Especially on the high seas.  But then something interesting happened.  She broke from her mercantile past.  Because they saw the shortcomings of mercantilism.  One of which produced wealthy landowners at the expense of a hungry population.

When the British repealed the Corn Laws in 1846 Food Prices fell and the Standard of Living Rose 

The British Corn Laws were a series of laws protecting those who grew cereal crops.  The stuff we grow that has edible grains.  Corn, rice, wheat, barley, etc.  What we call staple crops as they form the basic sustenance of humans everywhere.  We grow these in greater abundance than all other foods.  And when you look at the grain size you come to one realization.  It takes a lot of land to grow these crops.  And who owns large tracts of land?  The landowning aristocracy.  A small group of people with a lot of wealth.  And a lot of political influence.  Hence the Corn Laws. 

The Corn Laws were legislation with one goal.  To prevent the British people from buying less expensive food.  By either forbidding any importation of cheaper grains until the domestic price had reached a certain price level.  Or adding tariffs to the less expensive imports so the landowners could still sell their grains at higher prices.  Thus preserving their wealth.  And they made specious arguments about how lower-priced food was actually bad for the people.  For it was just a way for manufacturers to maximize their profits.  For if food was cheaper they could pay their workers less.  Being the greedy bastards that they were.  So the only fair thing to do was to keep food prices high.  To keep the living wage high.  To force manufacturers to pay their workers more.  You see, the only way to help the poor and middle class was to let the wealthy landowners become even wealthier.  By keeping the price of the food they sold high.

Opposition grew to the Corn Laws.  People studied the works of their fellow countrymen.  Adam Smith and David Hume (both Scottish).  And the Englishman David Ricardo.  All great economists and thinkers.  Who were all proponents of free trade.  Ricardo’s Comparative Advantage basically proved the case of free trade over the protectionism of mercantilism.  Eventually the political power of the landowners could not overcome the economic arguments.  Or a famine in Ireland.  And, in 1846, they repealed the Corn Laws and adopted free trade.  Food prices fell.  Leaving people with more disposable income.  To purchase the goods the Industrial Revolution was making.  Increasing their standard of living.  While small famers had to leave their farms being unable to farm efficiently enough to pay their bills at the prevailing prices.

The Success of NAFTA proves David Ricardo’s Comparative Advantage

Mercantilists and other opponents to free trade like to point at the human costs.  Small farmers losing their farm.  Just so they can preserve some semblance of privilege to protect the high prices in their industry.  But it was becoming more and more difficult to make the argument that the masses were better off paying higher prices.  Because they’re not.  Lower consumer prices increase the standard of living for everyone.  Higher living standards create healthier living conditions.  And reduces child mortality.   For the greatest killer of children in the world is poverty.

The British were both a military and an economic superpower during the 19th century.  But someone was chasing her.  The Untied States.  Who was feeling her economic oats.  Her economy would catch up and surpass the British.  Making it the mightiest economic power of all time.  How did this happen?  Two words.  Free trade.  The United States was the largest free trade zone in the world.  The economic advantages of all those states trading with each other freely across their state borders made Europe stand up and take notice.  And in response created treaties that ultimately led to the European Union and the Eurozone.  To replicate the large free trade zone of the United States.

Back across the Atlantic the Americans, Canadians and the Mexicans took it up a notch.  And created the North American Free Trade Agreement.  NAFTA.  Extending the free trade that existed in each of their countries across their international borders.  The mercantilist fought against this.  Because protectionism, restrictions and tariffs helped the privileged few protect the high prices in their industry.  In America they talked about a great sucking sound as all American jobs went to low-wage Mexico.  Some manufacturers did move to Mexico.  Primarily because like the small farmers in Britain after the repeal of the Corn Laws they could no longer sell at prices to meet all of their costs.  But it was not as the mercantilists predicted.  Yes, imports increased.  In 2010 they were up 235% from pre-NAFTA 1993.  But exports were up, too.  Some 190% for the same period.  Proving Ricardo’s Comparative Advantage.  By focusing on what we do best and trading for everything else all countries do better.

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Aristocracy, the Old World, the New World and the American Civil War

Posted by PITHOCRATES - December 6th, 2011

History 101

General Robert E. Lee represented the Old World, General Ulysses S. Grant represented the New World

General Robert E. Lee represented the Old World.  The last of a long line of wealthy landowners.  The finest of inherited wealth.  With a lineage that went back to George Washington.  The Father of our Country.  On his wife’s side.  Through the Custis ancestry.  Lee fought to continue the old ways.  Magnificent landholdings.  Grand mansions.  Servants.  Balls.  Gentlemen.  And ladies.  None who worked.  But who enjoyed the very best of lives.  Because of a very good last name.  And Lee wanted to pass this life on to his heirs.

General Ulysses S. Grant represented the New World.  His father was middle class.  A tanner.  And Grant worked in his father’s shop.  But hated the blood.  And the horrific odors.  He left and went to West Point.  Saw combat in the Mexican War.  After the war he served in some lonely posts.  Away from his family.  And started to drink.  He missed his family so much that he eventually left the Army.  Tried and failed in some business ventures.  And ended up a clerk back at his father’s tannery.  Working for his younger brother.  To support his family.

Grant and Lee actually met once in the Mexican War.  When Lee visited Grant’s unit.  Lee remembered the visit.  But he didn’t remember Grant.  For Grant was a rather plain soldier.  When war came between the states the North offered Lee command of all Union forces.  But Lee could not draw his sword against Virginia.  His beloved country/state.  So he resigned his commission and joined the Confederate Army.  Grant raised a regiment so he could rejoin the army.  Lee won many victories against the Army of the Potomac.  Grant advanced Union forces to a series of victories in the West.  His successes earned him command of all Union forces.  And he travelled east.  To ride with General George Meade and the Army of the Potomac.  As it pursued General Lee’s Army of the Northern Virginia.

The Planter Elite had Poor White Southerners who did not Own Any Slaves Fight to Maintain the Institution of Slavery

Until Grant took over Lee had many successes besting the Army of the Potomac.  In Virginia it became routine.  After the Union suffered yet another defeat the Army would turn and head back north.  Not so with Grant.  When he came to that fork in the road, he turned south.  To try and outflank Lee.  And face him in battle again.  And again.  Until Appomattox Courthouse.  Where Lee found himself outmanned.  And surrounded.  Lee and Grant met to discuss terms of surrender.  Lee arrived first.  Expecting to be taken prisoner and possibly hung for treason, he arrived resplendent in his finest uniform.  Grant arrived later.  Muddied.  And wearing a private’s jacket.

Grant offered very generous terms.  Which had a very positive effect on Lee.  And his men.  There would be an end to the war.  And there would be no guerilla war.  Instead, Lee would do everything within his power to help bring the South back into the Union.  With Lee being more important than the president of the Confederacy, this mattered.  The people respected Lee.  And if he said the war was over the war was over.  It was time to be good citizens of the United States again.

The South fought valiantly.  For what turned out to be a dying cause.  Old World aristocracy.  Based on the institution of slavery.  Which is why the cause failed.  But before we get to that consider who fought for the confederates.  Like in the Old World, the majority of the people in the South were those who worked the land.  Black slaves.  Unlike feudalism, though, these black slaves did not fill the ranks of the armies led by their landowners.  So those responsible for war, the Planter Elite, did not risk their ‘property’ during the war.  Instead, they had poor white southerners who did not own any slaves fight to maintain the institution of slavery.  Who they lied to.  By saying the war was about states’ rights.  Or that it was to repel the Northern aggressors who wanted to change the Southern way of life.  But that’s not why the Planter Elite seceded from the Union.  It was to maintain their way of life.  An Old World-style of aristocracy.  Perhaps the greatest lie in all U.S. history.  Considering the Planter Elite killed some 618,000 trying to maintain that way of life.  Which was 2% of the total population.  Today 2% of our approximate 312 million population would be 6.2 million dead.  Just to give you an idea of how big killing 2% of your population is.

The American Civil War was the Final Battle between the Old World and the New World in the United States

So why did the South lose?  Because the world changed.  There was now a middle class.  Creating and innovating.  Expanding the Industrial Revolution to the New World.  In the northern states.  Where factories hummed with efficiency.  And produced a modern economy.  Whereas the South stayed primarily an agricultural economy.  Based on King Cotton.  With the majority of their population being slaves working in the fields.

The northern population swelled as immigrants filled their factories.  Railroads crisscrossed the North.  Steam-powered ships plied the rivers and coastal waters.  There was economic activity everywhere.  And free laborers earning wages everywhere.  And spending their wages.  Taking part in economic exchanges.  The North became advanced.  Efficient.  And wealthy.  Whereas the only wealth in the South was on the plantations.  Confined to the landed aristocracy.  And King Cotton.  When war broke out there was no way that the economic powerhouse that was the North would not prevail.  Especially when their factories could make rifles and cannon.  And ships to bottle up Southern harbors.  Making all that cotton in the South worthless.  And irrelevant.  As the British just turned to India to feed their textile industry.

The American Civil War was the final battle between the New World and the Old World in the United States.  Between the middle class of Ulysses S. Grant and the aristocracy of Robert E. Lee.  Between free market capitalism and the landed aristocracy.  And capitalism won.  Because it was the better system.  To produce wealth.  And to improve the quality of life.  For those free laborers who participated.   Allowing anyone to have a  better life.  Unlike the peasants, serfs and slaves of the Old World.

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Free Labor

Posted by PITHOCRATES - December 5th, 2011

Economics 101

Unlike Slaves Paid-Laborers Worked, Went Home and Fed & Housed their Own Families

Agriculture advances gave us food surpluses.  Food surpluses gave us a division of labor.  The division of labor gave us trade.  Money made that trade more efficient.  Religion and the Rule of Law allowed great gatherings of people to live and work together in urban settings.  Free trade let us maximize this economic output and elevated our standard of living.  And to sustain this economic growth we needed something else.  Free labor.

Slavery as an economic model has serious defects.  For one the labor is not free.  People are restrained against their will.  And only work to minimize their pain and suffering.  They do not think or innovate.  Their human capital is wasted.  Because no one voluntarily thinks and innovates to make a better life for others.  Especially if it  won’t improve their own life.  A slave, then, has little incentive to think or innovate.  Their incentive is to follow orders.  Because that was the proven way to minimize their pain and suffering.

Buying human beings is also less efficient than renting them.  Not everyone in a slave family was in their working prime.  The elderly couldn’t work the fields anymore.  Neither could the infant children.  But they all needed room and board.  Unlike a paid laborer.  Who you paid only for the hours they worked.  You didn’t feed or house them.  They worked and went home.  And fed and housed their own families. This is why George Washington wanted to sell his slaves and replace them with paid laborers.  To increase his profits.  But he found people were only interested in buying slaves in their working prime.  He could sell some.  But not all of them.  Which meant breaking up slave families.  Something he couldn’t do.  So he kept his slaves.  Settled for lower profits.  And kept the slave families together.

The Slave-Economy in the New World was a Step Backward toward Old World Aristocracy

Not everyone was as kind as Washington.  Some people had no problem breaking up families.  Or abusing their slaves.  But they all had to exercise restraint.  Because a maimed or a dead slave couldn’t work.  A problem for slave owners because they bought their slaves.  Often borrowing money for the purchase.  So it was costly to replace them.  As well as to train them.  One skilled in picking cotton may not readily take to harvesting and drying tobacco.  Whereas you could simply advertise for a hired hand who was skilled in harvesting and drying tobacco if you used free labor.

Free labor added to the economy.  Because they had earnings for economic exchange.  Slaves didn’t.  The slave owner provided their room and board.  So they were not only enslaved they were also dependent on others for everything free laborers bought with their earnings.  Economic exchanges in a slave economy, then, were limited to the wealthy landowners.  Making it a system much like European feudalism or Russian serfdom.  Only instead of peasants or serfs there were slaves.  Who were less free.  And even poorer.

Thus the slave-economy in the New World was a step backward toward Old World aristocracy.  (And a little beyond it.)  Where there were a few rich and a lot of poor.  Agricultural reform came with the help of the Black Death.  When the balance of power tipped from the landed aristocracy to the much thinned out labor force.  Who could then demand wages and better conditions.  And then came capitalism.  For those new wage-earners had money for economic exchanges.  Which they made.  Thus producing a prosperous middle class.  Which took root in the New World.  At least, in the parts of the New World that used free labor.

Our Capacity to Think is the Key to Unlocking our Human Capital, Economic Growth and the Quality of Life

The great problem of slavery (other than the moral one) is that it excluded a great part of the population from the economy.  Slavery excluded millions of people from making economic exchanges.  And millions who might have thought and created didn’t.  Their human capital was wasted.  Setting economic development back.  As well as the quality of life.

In a modern capitalistic economy there must be no slavery.  Or dependency.  Because those enslaved or dependent do not create.  Or innovate.  They just exist.  And do not maximize the gift of being human.  Our capacity to think.  Which is the key to unlocking our human capital.  Economic growth.  And the quality of life.

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British Corn Laws and Empire, the U.S. Free Trade Zone and the Eurozone

Posted by PITHOCRATES - November 29th, 2011

History 101

With the Royal Navy, the Steamship, the Railroad and the Telegraph, Great Britain Peacefully Ruled and Led the World

The British Corn Laws were on the books from 1815 to 1846.  To protect domestic cereal farmers from less expensive food imports.  By adding a tariff to these grain imports.  Increasing their price.  So they weren’t any cheaper than the domestically grown grain.  Interestingly it was the few great landowners who wanted these tariffs.  Not the people who had to buy the food.  For paying more for food meant they had less to spend on clothing and other things.

When it came to consumer prices the people were always for free trade.  Because whatever they earned it never seemed enough.  So paying more in taxes was never a good thing.  These wealthy landowners even put forth the argument that paying higher food prices meant higher wages.  In a feeble attempt to maintain these tariffs.  They said that manufacturers just wanted cheaper food so they could pay cheaper wages.  Because if food wasn’t that expensive their workers wouldn’t need as much pay.  And, of course, the greedy manufacturers would just pocket more profits.  Much like the greedy landowners were doing thanks to the Corn Laws.  But their greed was somehow different.

Well, free trade won out.  Eventually.  And they repealed the Corn Laws in 1846.  And, as expected, food prices plummeted.  Soon they imported more food than they grew.  Because it was cheaper.  And it freed up more money for use elsewhere in the economy.  Stimulating innovation and invention.  Taking the Industrial Revolution to new heights.  And raising the standard of living for all people.  Not just the wealthy landowners.  The British Empire reached its zenith in the 19th century.  After the defeat of Napoleon there was about a century of peace called the Pax Britannica.  Where Great Britain became the global policeman.  With the Royal Navy, the steamship, the railroad and the telegraph, Great Britain peacefully ruled and led the world.

The U.S. was a Large Free Trade Zone with a Common Currency, Language, People and Customs

The British were the most advanced nation in the 19th century world.  And the richest.  Her empire dominated trade.  Her rule of law and common currency made that trade efficient.  It was a giant free trade zone within her empire.  But it couldn’t last.  The cost of maintaining the empire, plus a world war, was just too much.  Her economic might faded.  While another rose.  In a former colony.  The United States.

The sun never set on the British Empire.  Because it was that big.  Reaching around the globe.  Connected by long lines of communication.  And an imperial British culture uniting different peoples.   Who knew different cultures, laws and money.  Whereas as the United States had all the advantages of empire (size and range of resources) without any of the disadvantages.  The U.S. was a large free trade zone with a common currency, language, people and customs.  The states comprising the U.S. were as big as countries in other parts of the world.  But trade could flow between any two states without custom duties, tariffs or even inspections.  It was truly free.

When the Industrial Revolution reached the United States, the economy took off and never looked back.  By the end of the 19th century she was challenging the British Empire.  And rapidly overtook her.  There was another global policeman in town.  All because of a giant free trade zone that was as big as a continent.

The ‘United States’ of Europe created the Eurozone and a Common Currency (the Euro) to Compete with the U.S.

The United States is such the perfect model of free market capitalism that Europe created the Eurozone and a common currency (the Euro) to compete with the U.S.  And it worked.  For awhile.

The ‘united states’ of Europe as a whole has a larger economy than the U.S.  But they have their problems.  For a common currency is only part of America’s success.  The U.S. is a united federation of states with one set of federal laws, language and culture for interstate commerce.  Something Europe doesn’t have.  And probably never will.  European countries have far too much history and culture.  And nationalism.  They will never unite politically.  Like the United States.  Or the British Empire, for that matter.

The key to the British Empire was that it was British.  One currency.  One language.  One set of laws.  One culture.  For interstate trade, at least.  Just like in the country that surpassed her.  The United States.  Still, there’s nothing wrong with being a smaller economic power than the U.S.  As long as you have free trade your people can enjoy a high standard of living.  Without the added responsibility of being the global policeman.

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FUNDAMENTAL TRUTH #83: “Those who don’t pay taxes will always approve higher tax rates on those who do.” -Old Pithy

Posted by PITHOCRATES - September 13th, 2011

The Allies were Commanded by an American because they had the Greatest Skin in the Game

During World War II, SHAEF stood for the Supreme Headquarters, Allied Expeditionary Forces. This was the top command of the Allies fighting on the Western Front during World War II. In the European Theater of Operations (ETO). The Soviet Union fought on the Eastern Front. Neither front was subordinate to the other in the command structure.

The supreme allied commander of SHAEF was General Eisenhower. An American. Why? Well the Nazis conquered France early in the war. Thanks to blitzkrieg. Which the Allies weren’t ready yet to battle. So the SHAEF commander wasn’t French. But the British were in the war from the beginning. They and their commonwealth put some 11 million into the field of battle. And suffered about a million killed and wounded. But the SHAEF commander wasn’t British either. Even though we couldn’t have defeated Nazi Germany without the British.

No, the SHAEF commander was an American because they put some 16 million into the field of battle. So excluding the Soviets, the Americans had the greatest skin in the game. Literally. And figuratively. It was the American Arsenal of Democracy that furnished the implements of war. Financed by the American taxpayer. Via bonds. Rationing. And inflation.

Those who Risk their Wealth should have a Say in How it is Risked

There were a lot of service flags hanging in American windows during World War II. And far too many of them had gold stars on them. One gold star represented the loss of a son or daughter in the war. There were about 417,000 gold stars in American windows. Not quite as many as the approximately 580,000 British dead. And a long way from the approximately 8,600,000 Soviet dead. But as America entered the war, the sheer numbers of man and material America provided made it America’s war. Which is why there was an American commanding SHAEF. Because even though Nazi Germany didn’t attack America, it was her blood and treasure leading the war against Nazi Germany.

So an American general would lead the Allies. Because the Americans had the most skin in the game. They were now bearing the greatest costs for the war. So they had the ultimate say in how the Allies waged war. I mean, no one would expect a Belgian general to command those 16 million Americans. No offense to the Belgians. I mean, I like their waffles and all. It’s just that Belgium wasn’t America. They didn’t have the resources. Nor the distance from the Third Reich.

Risk and wealth. Those who risk their wealth should have a say in how it is risked. Because it takes wealth (blood and treasure) to wage war. And this goes back to the birth of limited government. The Magna Carta. When the feudal barons of England met King John on the fields of Runnymede. And said, “Look, yeah you’re king and all but that doesn’t give you the right to do as you bloody well please.” I’m paraphrasing, of course. You see, the king was being rather oppressive. And fighting a lot of wars. Costly wars. And the funny thing about kings? They don’t have wealth. They get it from the landowners. The landed aristocracy. Those feudal barons. The men and material to fight wars, and the money to pay for them, came from them. So these barons were saying, “In the future, you clear things with us first, okay?” And constitutional monarchy was born.

Thanks to the Magna Carta those Paying the Taxes would have a Say in How the King Spent those Taxes

In the days of feudalism we defined wealth by land holdings. Because back then the most important industry was growing food. To prevent famine. And you needed land to grow food. So wealth concentrated to the land owners. The landed aristocracy. Who provided the food for the realm. Soldiers. And taxes.

Thanks to the Magna Carta, things changed. Those paying the taxes would have a say in how the king spent those taxes. He couldn’t wage endless war anymore. Or spend it all on royal accouterments. No. From then on, spending would have to be responsible. We take it for granted in the West today. And call it taxation with representation. But it was a BIG deal back then. And mostly only in England. France had an absolute monarchy. And the king did whatever he bloody well pleased. And you see how well that turned out for King Louis XVI. Ask Marie Antoinette. Of course you can’t. Because they were both executed by the people during the French Revolution.

The British took their representative government to the New World. And after the American Revolution, that was one of the British things the Americans kept. At the heart of the American populace was a hatred of taxation. And arbitrary rule. So they kept a tight grip on the government. And their wealth. There were no kings in the new United States of America. But there was still government. And a strong distrust of government power. So they were going to write their constitutions very carefully. And restrict the vote only to those who had skin in the game. Land owners. Who were paying the taxes.

Figuring out how to Amass Power despite the Inconvenience of Elections

Of course this changed over time. Nowadays, people who pay no taxes whatsoever can vote. We’ve come a long way from Runnymede. And returned a lot of power to government. In America, about half of all people pay no federal income tax. Yet they can vote. And they do. For the party that promises them more free stuff. By taxing ‘the rich’ to pay for it. And you know what these non-taxpayers say? “Raise tax rates? Absolutely. I mean, what do I care? It’s not like I’m paying them.” I’m paraphrasing, of course. But you can see the problem.

They have no skin in the game. And the only reason they don’t is because ‘the rich’ have been keeping them down. At least that’s what they believe. Because those in power told them this. So they can keep raising taxes. And keep increasing the power of government.

It’s nothing new. There are those who just want power. Kings often took power by force. When it was clear that the rich barons were more important to the king than the king was to them, though, things changed. There were limits on absolute power. So those who coveted power had to be creative. And figure out how to amass power despite the inconvenience of elections.

Politics Today: Buy Votes with State Benefits and scare the Bejesus out of Old People

The answer was the welfare state. And class warfare. Buy votes. And demonize ‘the rich’. Get the people dependent on government. And anytime there is political opposition, tell the people that the opposition wants to cut your state benefits. To scare the people into voting for you.

We call Social Security and Medicare third-rail issues in America. Because if you threaten to cut them (i.e., touch them), you will die politically. As you would die if you touched the electrified third rail in the subway. Because the recipients of those programs live in fear of losing their benefits. And will always vote for the candidate who promises not to cut them.

And this is how you amass power when saddled with the inconvenience of elections. Buy votes with state benefits. And scare the bejesus out of old people. Telling them the political opposition wants to take your benefits away. Attack the rich. And tax them. To pay for the ever bloating welfare state.

And if at least half of the people pay no taxes, you’re golden. Because when that many people have no skin in the game, you can get away with just about anything you want.

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FUNDAMENTAL TRUTH #32: “America is great but it can’t make bad ideology good.” -Old Pithy

Posted by PITHOCRATES - September 21st, 2010

We’ve Always Done Things This Way

The Old World was set in her ways.  Change didn’t come easy.  When it came it often spanned centuries.  But not always.  As the Roman Empire incorporated new territories into the empire, she modernized those new territories.  Roads.  Fresh water.  Sanitation.  Rule of law.  Markets.  The things that made cites better.  Civilizations better.  But as a civilization grows, so does its government.  And as government grows, taxes inevitably become more onerous.

A sprawling empire required a sprawling bureaucracy to control it.  And a huge standing army to protect it from without.  And to police it from within.  When you expand and conquer new territory, the spoils of conquest can fund your empire.  When your borders are relatively static, though, you have to use alternative sources of funding.  Taxation.  As the tax burden grew, dissatisfaction grew.  Fewer citizens volunteered to serve in Rome’s legions.  So Rome relied more and more on hired armies.  This increased the cost of empire.  And it increased taxation.  The tax burden grew so great that people gave up their small farms and worked for the bigger farms.  Worked for the rich landowners.  Some tried to quit farming all together.  This caused problems in trying to feed Rome’s legions.  And her bureaucracy.  The food supply became so critical that the Romans wrote new laws forbidding people to leave their farms.  Farmers were bound to the land.  They could never leave.  If you were born on the land you would farm the land.  Forever.

During the decline of the Western Roman Empire you saw the rise of the economic system that would dominate the Middle Ages.  Feudalism.  As the Western Empire declined, the power began to shift to the rich landowners.  As did loyalties.  As the empire further disintegrated, the power of Rome could no longer protect you.  Or feed you.  And thus food and protection became the foundation of feudalism.  Land owners, the nobles (i.e., lords), would let you work their lands.  The bulk of the proceeds went to the landlord.  But you also had a portion of the manor to farm for yourself.  In exchange for the use of a lord’s land you provided military service to the lord.  When needed to protect the lord and his lands.  Property rights allowed the lord’s sons to inherit the estate upon his death.  So property ownership became hereditary.  As did the nobility.   And so it would be for centuries.

England Leads the Way

From the nobles arose one.  A dominant one.  A ruler of nobles.  A king.  A king consolidated the many nobles’ estates into a kingdom.  A country.  And the king became sovereign.  The supreme authority.  The nobles pledged their loyalty to the king.  Provided for the king.  And fought for him when necessary.  Thus the few, the many and the one.  The masses (the many) served the lords and worked on their estates.  The lords (the few) were the wealthy land owners who served the king.  The king (the one) ruled the kingdom.

Thus the European monarchy was born.  In France it was absolute.  In England, in 1215, the nobles met King John on the meadow at Runnymede.  And the king reluctantly set his seal to the Magna Carta.  In England, there would be limits to the sovereign’s power.  The king may be king, but the nobles held the wealth.  And with it a lot of power.  Sometimes they saw things differently.  And the little people, the masses, often saw things differently than did the king and lords.  These different interests were reconciled, in time, by king and Parliament, a two-house or bicameral legislature (comprised of the House of Commons and the House of Lords). 

England was the place to be.  Rule of law.  Bill of rights.  Commerce.  Banking.  Capitalism.  Liberty.  Food.  Security.  Your common everyday Englishman had a better quality of life than your common everyday [insert any other European national here].  As transoceanic trade took off, the great European powers collided with each other.  Fought for that lucrative trade.  In the Old World.  And in the New World.  These wars became very expensive.  And some lasted for years.  Like the Seven Years War.  Which the British won.  And took many French possessions throughout the world.  But at a huge cost.  She incurred a great debt.  Especially in securing one of her colonies.  British North America.

Tea Anyone?

So England taxed her British American subjects.  Only problem was, these English subjects had no representation in Parliament.  And this was very un-English.  Taxation without representation.  This caused tension.  Also, Great Britain’s mercantilist policies were also rubbing the colonists the wrong way.  America was growing.  And she wanted free trade.  But that was impossible when the home country maintained a favorable balance of trade at your expense.  And had the Royal Navy to enforce it.  As a colony, everything had to ship to/from England ports on English ships so England could accumulate bullion.  The British protected their industries.  Her colonies fed raw materials to these industries.  And that’s all they did.

Trouble brewed for a while.  When Great Britain legislated what type of tea they could drink (only British East Indian tea), the American colonists had had enough.   There was a tea party in Boston, a revolution and formal independence.  And then a new nation.  With a bicameral legislation.  An executive.  And a judiciary.  It wasn’t quite Parliament, but was very similar in function.  The president was the one.  The Senate was the few.  And the House of Representatives were the many.  But there were key differences.  There was no king.  No hereditary nobility.  And there would be no mercantilism.  Despite Alexander Hamilton’s best efforts.

Let’s Just Agree to Disagree

Getting the colonies to come together to declare their independence was not easy.  It helped that there was already a shooting war going on.  Lexington and Concord.  Bunker Hill.  The coastal towns the British burnt and left in ruins.  They were already fighting a rebellion.  The declaration was almost a moot point.  But it was important.  And, after some arm twisting, they voted for independence and posted their Declaration of Independence.  But that was then.  After the Revolutionary War, there was no such unifying force.  Everyone was back to looking out for number one.  Well, most. 

Locked in a Philadelphia hall during a sweltering summer thick with horseflies, a collection of America’s finest worked to create a new government.  George Washington, Ben Franklin, Alexander Hamilton, James Madison, to name just a few, could hardly agree on anything.  The Constitution they created was not great in their eyes.  But it was probably the best that they could do.  So acknowledged, they sent it to the states for ratification.  The odds were against them.  It would take some persuading.  And persuading they did.  Hamilton and Madison (and John Jay) wrote a series of essays appearing in newspapers to make the case for ratification.  They addressed and answered all arguments against ratification.  (You can read these today in the Federalist Papers.)  And this effort was successful.  The states ratified the constitution.  There was now a nation known as the United States of America.

Our first Secretary of the Treasury was Alexander Hamilton.  A capitalist genius.  And a great admirer of the British Empire.  Being a recent transplant to the American Colonies, he had no deep-seated resentment of the former mother country.  In fact, he wanted to emulate her.  She was the greatest empire in the world.  She was obviously doing something right.  But he pushed too far.  His mercantilist plans were a bit much for some.  Especially the ‘simple’ farmers of the South.  The planter elite.  Led by Thomas Jefferson (covertly) and James Madison (overtly), they fought Hamilton tooth and nail and did everything to destroy him.  (After seeing his plans Madison switched to the opposition.)    And ultimately, did.  When Aaron Burr shot him in a duel on the field of honor at Weehawken, New Jersey, across the Hudson from New York City.  All because Hamilton tried everything within his power to keep him from becoming president of the United States and governor of New York.  Because he was on unprincipled man.  Burr took offense to that.  And, well, the scoundrel challenged him to a duel and killed him.  But I digress.

The American Ideology

The American ideology is simple.  It includes things that have been proven to work.  And excludes things that have been proven not to.  A large, diverse people make up America.  So at the heart of our ideology is that we agree to disagree. 

We don’t have kings or nobility.  We don’t have an entitled class.  No hereditary rights.  Here, it doesn’t matter who your father was.  Or what group you belong to (religious, societal, etc.).  No one person is better than another. 

We have property rights and live under the rule of law.  We honor legal contracts.  We built our nation on laissez faire capitalism.  Free markets.  With a minimum of government interference.  We do what we want and respect that others do what they want.  And we are free to do this as long as we play by the rule of law.

It was a long road getting here.  We took the best history had to offer.  And rejected the worst that history included.  Nations who did likewise went on to greatness, too (like the United Kingdom and Northern Ireland, Canada, Australia, etc.).  Those who didn’t have been repositories of great suffering and human bondage (North Korea, Cuba, The People’s Republic of China, the Soviet Union, etc.).  Of the latter nations, please note that life is getting much better in China and the former Soviet Union with the introduction of capitalism and free markets.  And it’s not in North Korea and Cuba where these governments stubbornly cling to failed policies to keep their governments in power.  Whatever the cost is to their people.

It’s the Ideology, Stupid

Good ideology makes good nations.  Bad ideology makes bad nations.  A good nation can NOT take bad ideology and make it good.  A good nation that implements bad ideology will only make that good nation bad.  All people have the capacity for greatness.  And that greatness will shine through if the government doesn’t suppress it.   To see this all we have to do is look to history.  It’s all there.  The good.  The bad.  And the ugly.

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