Abortion and White Supremacy

Posted by PITHOCRATES - February 27th, 2014

Politics 101

Slavery made the South more like an Old World Aristocracy than a New World Meritocracy

Democrats don’t like people of color.  Never have.  The Democrat Party’s lineage goes back to Thomas Jefferson’s Democratic-Republican Party.  Thomas Jefferson was one of our Founding Fathers who, as the Democrats love to remind us, owned slaves.  In fact, the Democratic-Republican Party was the party of the planter elite.  And of slavery.  While the opposition party, the Federalists, whose members included George Washington, John Adams and Alexander Hamilton, preferred manufacturing and commerce for the future of the United States.  Not just plantations and slavery.

It was these southern planters who made the Three-Fifths Compromise necessary.  Slaves couldn’t vote.  So the North didn’t want to count them in determining the number of representatives a state had in the House of Representatives.  The planter elite did not like this.  As the anti-slave North had more free people and would end up controlling the government.  Possibly passing anti-slave legislation.  Well, without the southern states there would be no United States.  So they compromised and counted some of their slaves.  Giving the planter elite greater power in the new federal government than their population would otherwise have allowed.  And to seal the deal they agreed not to discuss the issue of slavery again for 20 years.

The minority power in the South, the planter elite, who were Democratic-Republicans, brought a lot of slaves to the United States during that 20 year moratorium on the slavery issue.  Swelling the slave population in the South.  But once the 20 years were up Congress banned the slave trade.  So from that point forward all slaves would have to be born on U.S. soil.  But the minority power in the South had built their little fiefdoms by then.  Owning large estates.  With their lands worked by their large slaveholdings.  Making the South more like an Old World aristocracy than a New World meritocracy.  And the planter elite liked having so much power vested in so few of their hands.  From having their few numbers control the federal government.  To their absolute control of so many human lives on their plantations.  They were an elite few.  A superior people.  And they liked it.

The South used the Power of the Federal Government to Suppress States’ Rights in the North with the Fugitive Slave Act

Over time as the north pursued the dreams of Washington, Adams and Hamilton immigration began to swell the population in the industrial North.  Leading to the South losing their control over the House of Representatives.  And threatening their elitism.  By then the Democratic-Republican Party had become the Democrat Party.  Which pushed to protect the institution of slavery.  To protect their southern aristocracy.  And their elevated status as a superior people.  They used the power of the federal government where they could.  Such as passing the Fugitive Slave Act to force free states against their will to return free blacks in their states to slavery.  Then they argued that their states’ rights were at risk with all of the North’s abolition talk.  Where the North might one day do what the South did to them.  Use the federal government to force a state to do something against their will.  Such as they did with the Fugitive Slave Act.

Their fight for the Senate led to further compromises to keep the union together while accommodating the planter elite.  The Missouri Compromise (1820) had prohibited slavery in the new territory in the Louisiana Territory above approximately the southern border of Missouri (but permitted it within the borders of Missouri).  Each state gets two senators.  So with the House lost the Democrats needed more of the new states from the Louisiana Territory entered into the Union as slave states.  Even those above the southern border of Missouri. Which they did with the Kansas–Nebraska Act.  Which repealed the Missouri Compromise and replaced it with popular sovereignty.  Where the people would chose whether they wanted to be a slave state or a free state.  Setting off a mad rush by both sides to get to these territories so they could vote the slave status of these new states their way.  Leading to a bloody civil war in Kansas.

Then another blow fell to the southern aristocracy.  Abraham Lincoln.  With the election of Republican Abraham Lincoln the southern aristocracy lost not only the House of Representatives but the presidency as well.  Worse, the Republicans were an anti-slavery party.  So even if they were somehow able to hold onto the Senate the Republicans in power would challenge the planter elite’s supremacy.  Break up their fiefdoms.  And challenge their power.  Something this elite few were willing to fight to prevent.  Well, they were willing to have others fight for them.  To maintain the social order in the South.  Leading to cries about states’ rights.  And an over-powerful federal government.  Despite their having used the power of the federal government to suppress states’ rights in the North with the Fugitive Slave Act.

Democrats see Benefits for Blacks as a Necessary Evil to keep them in Power

Most southerners were poor farmers.  Who owned no slaves.  Yet they rose to fight for states’ rights.  And to protect the South from northern aggression.  At least, that was what the planter elite had them believe.  Who sent many of these poor farmers to their deaths in the American Civil War.  When it was over approximately 8.6% of the South’s population was dead.  By comparison World War II killed approximately 405,399 Americans.  However, if we had suffered the same death rate as the South did in the American Civil War our World War II dead would have totaled over 12 million.  This is what the southern aristocracy was willing to—and did—sacrifice to maintain their power and privilege.  Their supremacy over other people.  Especially over their black slaves.

Such a feeling of superiority allows you to do some pretty horrible things.  Just review the history of Nazi Germany to see some of the atrocities a ‘master race’ can do.  In the post-war South the Democrats did not lose with grace.  They resented the martial law in the South after the war.  And they hated Republican rule.  Protecting their former slaves.  Even allowing them to run for government office.  It was all too much for the fallen southern aristocracy.  To remind people of the proper order of southern society they formed the KKK.  And unleashed a terror across the South.  Killing their former slaves.  And Republicans.  To codify their white supremacy the Democrats turned to the legislature.  And passed laws to segregate the ‘inferior blacks’ from their superior selves.  Jim Crowe Laws.  Separate but equal.  With the emphasis on ‘separate’.  In time pressure grew against the southern Democrats.  But they held strong in Congress.  Fighting against any civil rights legislation.  Including the Civil Rights Act of 1964.  Where Democrat Senator Robert Byrd (and former Exalted Cyclops of the KKK) filibustered against the Civil Rights Act for 14 hours and 13 minutes.  To keep the blacks segregated from their superior selves.

Things are a lot better these days.  But Democrat feelings of superiority die hard.  Even though they would have us believe they like blacks today.  Despite their past hatred of blacks.  And their seething anger of having lost them from their plantations.  But they found a way to ‘get them back on the plantation’.  By making them dependent on government.  In exchange for their vote.  Which keeps them in power.  Back where they believe they belong.  And are entitled to be.  Because they are a superior people.  So benefits for blacks are a necessary evil to Democrats.  For they still don’t like them.  As evidenced by where they live.  Where some of the richest Democrats (such as Nancy Pelosi) live in the whitest of neighborhoods.  And their apparent racial purification of society.  Through the guise of women’s rights.  The most important thing to women, according to Democrats, is abortion.  And they do their best to make abortion readily available.  Especially to women of color.  Like in New York City.  And Mississippi.  Where black women are having far more abortions than white women.  Making America whiter.  More like the neighborhood where Nancy Pelosi lives.  And more like the color Democrats have fought to keep America since the Three-Fifths Compromise.  The Fugitive Slave Act.  Popular Sovereignty.  The KKK.  And Jim Crowe Laws.



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How Christianity gave us the United States and made the World a Better Place

Posted by PITHOCRATES - December 31st, 2013

History 101

The Pope kept European Rulers from Oppressing their People lest they get Excommunicated from the Church

In 39 AD the Romans crucified Jesus of Nazareth.  Because they said he called himself the King of the Jews.  Or rather those with political power who felt threatened by Jesus’ popularity said this.  His death was to protect power and privilege of those who had it.  Ultimately, though, His death would do more to destroy power and privilege.  For the Golden Rule allowed people to live together in peace.  To build communities.  And to help one another.

Emperor Diocletian split up the vast Roman Empire into four parts.  The tetrarchy.  The rulership by four.  Each of the four parts had its own emperor.  When Diocletian stepped down from power those emperors began vying for power.  By 312 two emperors were in open war with each other.  Constantine.  And Maxentius.  On October 28, 312, they met in battle near the Milvian Bridge over the Tiber.  On the eve of battle Constantine had a vision.  The Christian God would help him win the upcoming battle if he placed the Christian symbol on his soldiers’ shields (accounts differ it was either the Chi-Rho sign or the Latin cross).  He did.  He won.  And became Constantine the Great.  Sole ruler of the Roman Empire.  And because of his victory in the Battle of the Milvian Bridge he began his conversion to Christianity.  Making the Roman Empire Christian.

Christianity spread throughout and united Europe.  And the Pope kept European rulers from oppressing their people.  Lest they get excommunicated from the Church.  In time, though, some resented rule from Rome.  In particular when Pope Leo X sold indulgences (a way to help purify one from sin) to fund the rebuilding of St. Peter’s Basilica in Rome.  This was one of many problems that had many calling for a reform of the Church.  One in particular, Martin Luther, published his The Ninety-Five Theses in 1517.  Kicking off the Protestant Reformation.

Plymouth Colony succeeded when Communal Property became Private Property

Henry VIII, King of England, was a good Catholic.  But his wife wasn’t giving him any sons.  And he wanted a male heir.  So he asked the Pope for an annulment from his wife.  Catherine.  So he could marry Anne Boleyn.  The Pope refused.  So Henry left the Catholic Church.  And initiated the English Reformation.  Making England Protestant.  England would swing back and forth between Catholicism and Protestantism without being either but something in between.  Making a group of Protestants very unhappy.  As they felt the English Reformation did not go far enough.  A group referred to derisively as Puritans.  They were so hated that they were being persecuted along with the Catholics.  So they left England.  Landing in the Netherlands first.  Then they sailed across the Atlantic.  They sighted land on November 9, 1620.  They eventually came ashore and established Plymouth Colony.

About half of Plymouth Colony died within the first few years.  From disease.  And hunger.  The economic system they were using was killing them.  Communal property.  Everything the colonists produced belonged to everyone.  People produced according to their ability and took from the common store according to their needs.  A sort of Marxism.  Before there was even a Karl Marx.  To save the colony Governor William Bradford abandoned the idea of communal property in 1623.  Communal property became private property.  And the colony was saved.  As people worked twice as hard to produce more on their land than they did on communal land.  And because they did they replaced famines with bumper crops.  So instead of dying off the American colonies became the prosperous New World.

The Seven Years’ War (1756–1763) came to the New World.  By the time it ended Catholic France lost its North American possessions to Protestant Great Britain.  To pay off the enormous debt of that war Parliament decided to tax their British American colonists.  Who made out very well in the conflict without the costs the British incurred.  But they did this without discussing it with the colonists.  Treating them as second-class citizens in the British Empire.  Who had no representation in Parliament.  Which led to anger over taxation without representation.  Leading to the Boston Tea Party (December 16, 1773).  Which led to the Intolerable Acts and the Quebec Act (1774-1775).  Which led to the shot heard ’round the world.  The Battles of Lexington and Concord (April 19, 1775).  Which ultimately led to July 2, 1776.  When the Continental Congress voted to adopt the Declaration of Independence.  After a few revisions it was formally passed 2 days later.  On July 4, 1776.  Known forever after as Independence Day in the United States.

In the United States your Last Name does not Determine the Quality of your Life

The American Revolutionary War did not start out well.  As the British pushed them back with little effort.  Until Benedict Arnold (future traitor) did some superb soldiering.  Impeding the advance of General Burgoyne.  The Americans met him in battle for the last time on October 7, 1777.  On the second day of fighting in the Battle of Saratoga.  And won.  Forcing an army in the mightiest empire in the world to surrender.  Shocking the world.  And getting the French to take notice.  Who then entered the American War of Independence.  The turning point of the war.  And world history.  For France was anxious to get back what they had lost to the British.  As was Spain.  Who joined the conflict as France’s ally.  Turning the American War of Independence into a world war.  And a war of attrition.  As their new foes forced them to send British forces all around the globe.  Leaving fewer to fight in North America.  With a British public growing weary of the war in North America.

America won.  Eventually.  Taking 8 years until the Treaty of Paris officially ended the conflict (September 3, 1783).  And peace and prosperity followed.  Thanks in large part to Jay’s Treaty (ratified by the Senate in November 1794).  Which improved relations between Great Britain and the new United States of America.  And began a Special Relationship between two nations of a common people, culture, religion and tradition.  When the treaty expired there was a minor hiccup in that Special Relationship that resulted in war.  The War of 1812 (1812-1815).  But peace and prosperity soon resumed.  With the South having a larger say in the national direction thanks to the Three-Fifths Compromise in the United States Constitution (1787).  Giving the South greater representation in the House of Representatives as they counted 3/5 of each slave to determine their number of representatives.  As the North industrialized and immigration filled their factories and swelled her population the South was losing that larger say.  One thing led to another that eventually resulted in the American Civil War (1861-1865).

The agrarian South had more in common with feudal England than they did with the industrial North.  Rich landowners (the planter elite) comprised an aristocracy that controlled politics.  While peasants/slaves worked the land.  The South was holding onto the Old World.  Where there was power and privilege.  While the North was building the New World.  Though the South talked about states’ rights they used the power of the federal government wherever they could.  Such as the Fugitive Slave Act (1850).  When war broke out the South won most battles.  Until General Grant started his great advance down the Mississippi River.  With the Vicksburg Campaign (May 18 – July 4, 1863) culminating in the capture of Vicksburg.  And control of the Mississippi River.  Severing the Confederacy into two.  Pretty much guaranteeing a Union victory.  It was just a matter of time.  In the east the Battle of Gettysburg (July 1–3, 1863) also ended in a Union victory.  President Lincoln went to the Gettysburg battlefield for the dedication of the Soldiers’ National Cemetery there.  Where he gave his Gettysburg’s Address (November 19, 1863).  Which ended with “we here highly resolve that these dead shall not have died in vain—that this nation, under God, shall have a new birth of freedom—and that government of the people, by the people, for the people, shall not perish from the earth.”  And so far it hasn’t.  Remaining that shining city upon a hill.  The destination of people everywhere yearning liberty.  And a better life.  Where all men are created equal.  And your last name does not determine the quality of your life.



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Constantinople, Byzantine Empire, Ottoman Empire, the New World, Tobacco and Slavery

Posted by PITHOCRATES - July 16th, 2013

History 101

With the Fall of Constantinople to the Ottomans in 1453 Islam spread Unchecked into Christian Lands

Constantine the Great moved the capital of the Roman Empire to a place on the Bosporus.  Where the ancient city of Byzantium once sat.  Where Asia met Europe.  Where the Mediterranean Sea met the Black Sea.  And the great rivers beyond.  The Danube.  Dnieper.  And the Don.  Constantine named his new city Constantinople.  And made it a jewel.  With great Christian churches.  To celebrate his new conversion to Christianity.  Which started following the Battle of the Milvian Bridge.  Where on the eve of battle Constantine and his soldiers had a vision of the Christian God.  Promising them victory if they placed His symbol on their shields.  Which they did.  And they won.

Constantine spared no expense in his new city.  Which was easy to do because it was a very wealthy city.  For the greatest trade routes went through the Bosporus.  Which is why when the western half of the Roman Empire fell the eastern half, or the Byzantine Empire, carried on for another thousand years.  Give or take.  As it thrived on that trade pouring through it.  Especially from the Far East.  Along the Silk Road.  Which peaked during the Byzantine Empire.  Bringing the exotic goods of the Far East west.  From silk to porcelain to spices.  Which flowed unhindered to Christian Europe while the Christians still controlled the Byzantine Empire.

But all good things must come to an end.  Thanks to the Seljuk Turks.  And the rise of the Ottoman Empire.  Islam had united the Arab people.  And with the fall of Constantinople to the Ottomans in 1453 Islam spread unchecked into Christian lands.  Up through the Balkans into southern Europe.  Lands they would contest for time and again.  Making for some bitter Christian-Muslim animosity that continues into modern times.  But more crucially at the time was the loss of control over that trade from the Far East.  Making those goods not as reasonably priced as they once were.  Which proved to be quite the problem.  As the European Christians had grown quite fond of them.  Luckily for them, they could do something about that.  Thanks to all of those wars they fought with the Muslims.  The Crusades.  Which brought back a lot of Greek books of science that were collecting dust in some of the old great Greek cities all around the Mediterranean.  Founded during the Hellenistic period.  Which came before the Roman Empire.  Thanks to a fellow by the name of Alexander the Great.  Who spread Greek learning throughout the known world after he conquered it.

Christopher Columbus sailed West to establish Far East Trade without going through Muslim-Controlled Constantinople

From those books the Europeans were able to become better sailors.  On ships that could catch the wind and navigate their way great distances.  Portugal and Spain led the way.  Prince Henry (1394-1460), the Navigator, trained navigators in Portugal.  His students pushed further and further down the African coast until Bartholomeu Dias rounded the Cape of Good Hope (1486).  Vasco de Gama would round the Cape of Good Hope and sail up the eastern coast of Africa all the way to India (1498).  Pedro Álvares Cabral was heading south to round the Cape of Good Hope in (1500).  Swung out too far west.  And ran into Brazil in South America.

Spain then financed the voyages of Christopher Columbus.  Who had read that the earth was round.  And wanted to prove it.  As well as spread Christianity.  Columbus wanted to find a way west to the Far East.  Sure it was just beyond the horizon of the Atlantic Ocean.  After a voyage longer than his near mutinous crew expected they finally landed on San Salvador Island in the Bahamas (1492).  Thinking he found an ocean passage to the Far East.  Around the Muslim controlled land route.  He would later understand that he had found the New World.  Which we would be calling Columbia.  Had his dispatches beat a Florentine passenger’s on a Portuguese ship who wrote about what he saw.  Amerigo Vespucci.  Which is why there is not a North Columbia, a Central Columbia and a South Columbia.  Instead, there is a North America, a Central America and a South America.

With Columbus’ success Spain financed others.  Vasco Núñez Balboa.  Who crossed the Isthmus of Panama and reached the Pacific Ocean (1513).  Ferdinand Magellan.  Who sailed around South America through the Straits of Magellan and into the Pacific Ocean.  Sailing on to the Far East.  And back home.  Being the first to circumnavigate the globe (1519-1522).  Hernán Cortés.  Who conquered the brutal Aztec regime in Mexico (1521).  Eventually the Spanish would bring great riches of gold and silver back to the Old World.  Meanwhile France financed Jacques Cartier in his attempt to find a Northwest Passage to the Pacific.  Who sailed up the St. Lawrence River to Montreal (1534).  Then Samuel de Champlain founded Quebec (1608).  Where they established a lucrative fur trade with the native Indians.

Cultivating Tobacco took Large Tracts of Farmland which required more Laborers that they had in the Colonies

Queen Elizabeth of England financed Walter Raleigh.  Who explored the coast of North America (1584).  Looking for a place to settle a colony.  On a subsequent voyage he brought 100 settlers with him.  And settled a colony at Roanoke, North Carolina (1585).  Which became the Lost Colony of Roanoke (1591).  The Virginia Company of London, a joint-stock company, would have better luck.  They raised financing by selling stock shares to investors who would share in any profits of the colony.  Christopher Newport led a voyage that established the first permanent English settlement in the New World.  At Jamestown (1607).

Though the Americas were not the Far East it was a vast landmass with inexhaustible resources.  And endless tracts of fertile soil.  The possibilities were endless.  The marriage of John Rolfe to Pocahontas (1614) provided an uneasy peace between the settlers and their Indian neighbors.  Then Rolfe figured out how to cure tobacco (1612).  Something the English began smoking after Columbus observed the Cubans sticking burning rolls of tobacco in a nostril.  The English refined smoking with a pipe.  And they really enjoyed it.  Importing vast quantities from the Spanish colonies in America.  Thanks to Rolfe, though, the English could produce their own tobacco.  Once they worked out a few problems.

Cultivating tobacco took large tracts of farmland.  But to put large tracts of farmland into production you needed laborers.  And in 1612 Virginia there just weren’t a lot of colonists living there yet.  The demand for labor far outstripped the supply.  So they tried to satisfy that demand with indentured servants.  Preferably from Europe.  Even criminals from English jails.  As well as from Africa.  Who worked in bondage during their indentures.  Then went free.  Until around the 1660s.  When things changed.  Starting in the southern colonies.  Where slavery became hereditary.  For Africans, at least.  Like it was in the Old World.  Where peasants and serfs were bonded to the land.  Once a slave.  Always a slave.  And if your parent was a slave so were you.  Like it was in ancient Athens.  At the end of the Western Roman Empire.  And in the Muslim world.

Muslim didn’t only enslave Christians.  They also established slave markets with African slave traders.  Who opened their markets to the Portuguese, the Spanish, the French and the English.  To help them meet that soaring demand for labor during the early days of the New World colonies.  When there were so few colonists.  Who found their way to the New World in the first place because of the Muslim conquest of Constantinople.  Which sent the Europeans to the seas to find a western way to the Far East.  And when they did they discovered the New World.  Creating the largest market ever for African slaves.  And the greatest convulsions in the New World as they struggled to end slavery in the Americas.



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Paid Labor vs. Slave Labor

Posted by PITHOCRATES - July 15th, 2013

Economics 101

Paid-Laborers are Rented as Needed while Slave-Laborers are Owned even when not Needed

There is a common misconception that slave labor was free labor.  The argument goes that the United States got rich because of all their free slave labor.  They’ll say this despite knowing of the immense suffering of African slaves on the slave ships.  Who came to the New World where slave traders auctioned them off.  This was the slave trade.  The key word in this is ‘trade’.  African slave traders sold them to European slave traders.  Who auctioned them off in New World slave markets.  To feed a labor-hungry market.

People bought and sold slaves.  And anything you buy and sell is not free.  So slave labor wasn’t free.  It was a capital cost.  Let’s explain this by comparing leasing and owning.  Businesses can buy buildings.  Or lease them.  If they buy them they own them.  And are responsible for them.  They add a large asset on their balance sheet that they depreciate.  And add new debt that they must service (making premium and/or interest payments).  They also must pay expenses like taxes, insurance, maintenance, supplies, utilities, etc.  Things owners are responsible for.  When they lease a building, though, they don’t add an asset to depreciate.  And they don’t pay any expenses other than a lease payment.  The owner, the lessor, pays all other expenses.  When you lease you pay only for what you use.  When you buy you pay for what you use now.  And what you will use for years to come.  We can make a similar comparison between paid-labor and slave-labor.

Paid vs Slave Labor 1 of 3

For this exercise let’s take a factory today with 125 employees.  We’ll look at the costs of these laborers as paid-laborers versus slave-laborers.  We assume that the total labor cost for everything but health care/insurance is $65,000 per paid-laborer.  And an annual health care expense of $5,000.  Bringing the total annual labor and health care/insurance costs for 125 paid-laborers to $8,750,000.  For the slave laborers we assume 47 working years (from age 18 to 65).  But we don’t multiple 47 years by $65,000.  Because if we buy this labor there are a lot of other costs that we must pay.  Slave traders understand this and discount this price by 50%.  Or $32,500 annually for 47 years.  Which comes to $1,527,500 per slave-laborer.  Bringing the annual total cost for all 125 slave-laborers to $4,062,500.  And, finally, because they own these laborers they don’t have to offer premium health insurance to attract and keep employees.  So we assume health care/insurance expense is only half of what it is for paid-laborers.

Slave-Labor Overhead included Food, Housing, Clothing and Interest on Debt that Financed Slave-Laborers

If we stop here we can see, though not free, slave-laborers are a bargain compared to paid-laborers.  But if they own these people they have to take care of these people.  They have to provide a place for them to live.  They have to feed them.  Clothe them.  As well as pay interest on the money they borrowed to buy them.  And the building to house them.  For if they are not fed and protected from the elements they may not be able to work.

Paid vs Slave Labor 2 of 3 R1

A slave-owner will try to keep these overhead costs as low as possible.  So they won’t be feeding them steaks.  They will feed them something inexpensive that has a high caloric content.  So a little of it can feed a lot of people.  In our exercise we assumed a $1.25 per meal, three meals daily, seven days a week, 52 weeks a year.  For a total of $170,625 annually.  We assumed a $500,000 building to house 125 slave-laborers and their families.  The depreciation expense (over 40 years), taxes, insurance, supplies (soap, toilet paper, laundry detergent, etc.) and utilities come to $24,100 annually.  For clothing we assume a new pair of boots every 5 years.  And 7 inexpensive shirts, pants, tee shirts, underwear and socks each year.  Coming to $10,094 annually.

Then comes one of the largest expense.  The interest on the money borrowed to buy these slave-laborers.  Here we assume they own half of them free and clear.  Leaving $95,468,750 of debt on the book for these slave-laborers.  At a 4.25% annual interest rate the interest expense comes to $4,057,422.  We also assume half of the debt for the housing still on the books.  At a 4.25% annual interest rate the interest expense comes to $10,625.

George Washington was Greatly Bothered by the Contradiction of the Declaration of Independence and American Slavery

These overhead expenses bring the cost of slave-laborers nearly to the cost of paid-laborers.  Almost making it a wash.  With all the other expenses of owning slaves you’d think people would just assume to hire paid-laborers.  Pay them for their workday.  Their health insurance.  And nothing more.  Letting them go home after work to their home.  Where they can take care of their own families.  Provide their own food.  Housing.  And clothing.  Which they pay for out of their paycheck.  Of course, this wasn’t quite possible in the New World.  There weren’t enough Europeans living there to hire.  And the Native Americans in North, Central and South America were more interested in getting rid of these Europeans than working for them.  Which left only African slaves to exploit the natural resources of the New World.  But that slave-labor could grow very costly over time.  Because when you own people you own families.  Including children and elderly adults who can’t work.  By the time of our Founding this was often the case as some slave owners owned generations of slave families.

Paid vs Slave Labor 3 of 3 R1

In our exercise we assume an equal number of men and women working in the factory.  Assumed these men and women married.  And half of these couples had on average 3 young children.  We’ve also assumed the current working generation is a second generation.  So their surviving parents live with them.  We assumed half of all parents are surviving.  These children and the surviving parents cannot work.  But they still must eat.  And require medical attention.  Using the costs for the workers these non-workers add another $845,469 to the annual labor cost.  Brining the cost of the slave-laborers greater than the cost of the paid-laborers.

George Washington was very conscious of history.  Everything he said or did was with an eye to future generations.  And their history books.  One of the things that greatly bothered him was the contradiction of the Declaration of Independence declaring all men equal while the institution of slavery existed.  But to form a new nation they needed the southern states.  And they wouldn’t join without their slaves.  So they tabled the subject for 20 years.  Sure by then that the institution would resolve itself and go away.  Washington believed this because he had many generations of slaves on his plantation.  And desperately wanted to sell them and replace them with paid-laborers.  Because he was feeding so many slaves that they were eating his profits.  But people wanted to buy only those who could work.  Not the children.  Or the elderly.  Unable to break up these families he did what he thought was the honorable thing.  And kept using slaves.  To keep these families together.  Making less money than he could.  Because slave-labor was more costly than paid-labor.  Contrary to the common misconception.



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FT176: “The left instigates and exacerbates discrimination to increase their power.” —Old Pithy

Posted by PITHOCRATES - June 28th, 2013

Fundamental Truth

The Institution of Slavery was Dying Out in the U.S. before Eli Whitney and his Cotton Gin

Discrimination is wrong.  And it doesn’t belong in a meritocracy.  Which is what the United States is.  Here it doesn’t matter who your father is.  There is no nobility.  No aristocracy.  Here everyone is equal.  It’s why people came here with pennies in their pocket.  So they could work hard and live the American dream.  Having the liberty to do whatever they wanted to do.  Which many did.  Starting out sweeping floors for a boss.  And going on to be boss in their own business.

The Founding Fathers weren’t perfect.  But they were as close to perfect as you can get.  Selfless.  Disinterested.  Principled.  And, yes, some were slave owners.  But they didn’t invent slavery.  Or bring it to the New World.  It was part of the times they lived in.  And already well entrenched in the colonies before they entered into the history books.  The southern economy was already dependent on slave-labor during the writing of the Declaration of Independence.  And the U.S. Constitution.  Some of the Founding Fathers wanted to get rid of the institution.  But to form a new nation they needed the southern states.  And they wouldn’t join without their slaves.  So they tabled the subject for 20 years.  Trusting that it would resolve itself by then.  But then Eli Whitney gave us the cotton gin.  And, well, the rest is history.

The institution of slavery was slowly dying out before the cotton gin.  George Washington wanted to replace his slaves with paid-laborers.  For he wanted to change up his crops.  Grow many different crops instead of one large cash crop.  Something paid-labor was ideally suited for.  As he could hire people with a particular crops’ skill-set and they could hit the ground running.  But when you had slaves working the same large cash crop year after year such as tobacco change didn’t come easy.  For you had to retrain your slaves.  And with training there is a learning curve.  It was just so much easier to hire well-skilled paid-laborers.  And the fact that they wanted to work for you helped, too.  For when forcing people to work for you against their will all you’ll get from them is the bare minimum that lets them escape brutal punishment.  Which does not bring out a person’s latent talents.  It just prevents these talents from ever seeing the light of day.  No.  Slave-labor as an economic model was a horrible one.  As well as being immoral.

Abraham Lincoln and the new Republican Party ended Slavery in the United States

Slavery in the United States was concentrated in the South.  On the plantations.  Where they had a single, large cash crop.  And thanks to Eli Whitney that crop was cotton.  Because the cotton gin could so quickly comb the cotton fiber to remove the seeds and stems the sky was the limit.  The only thing holding back your profits was the amount of land you put in production.  And the only limit on that was the number of slaves you had to make land productive.  Which is why the institution of slavery didn’t die out in 20 years time.  Which really wasn’t overly optimistic.  Because in the grand scheme of things there weren’t that many slaves in the United States to begin with.

Of all the slaves brought to the New World only about 6.5% ended up in British North America (according to Wikipedia).  Another 18% went to other British colonies.  Another 18% went to Spanish colonies.  About 14% went to French colonies.  While the vast majority of those slaves went to Portuguese colonies in the Americas.  Approximately 39% of all African slaves.  Most landing in Brazil.  Which is why the Portuguese language is one of the top ten most spoken languages in the world today.  Because Brazil is a very large country.  Thanks to all of those slaves the Portuguese brought there.

Slavery was wrong.  And it is America’s original sin.  But it wasn’t what made America great.  Or rich.  Contrary to what our public schools are teaching our kids.  If it was the South would have won the American Civil War.  But they didn’t.  The industrial North did.  With her factories filled with paid-laborers.  This was the New World.  The South that lost the Civil War was the last remnants of the Old World in the New World.  Where it mattered who your father was.  Abraham Lincoln and the new Republican Party ended slavery in the United States.  And the Republican Party would eventually put an end to Jim Crowe laws in the south.  And passed the Civil Rights act (a larger percentage of Republicans voted for it than Democrats).

The Racial Divide has never been Greater despite electing a Black President Twice

So the Republicans have done more to end discrimination in the United States than the Democrats have.  Who have actually spent more time opposing civil rights.  But you wouldn’t know that.  Not with all the disinformation the left puts out.  Today the left claims they are the party that fights discrimination.  When in actuality they instigate and exacerbate discrimination.  Because it gives them power.  For trying to end discriminations is very lucrative.  Some have made careers and have grown quite wealthy trying to end discrimination.  You know who they are so there’s no point in naming them here.  But these people never end discrimination.  For while there’s money in fighting discrimination there’s no money in ending it.

If there are always examples of discrimination in our society then there is always a need for those who fight it.  There’s always a reason for new legislation.  To right past wrongs.  And make things fair.  So the Democrats increased the size of the welfare state.  To make the discriminated dependent on the state.  To keep them on the plantation.  Concentrating them in housing projects.  In the inner city.  Away from the Democrats’ nice neighborhoods.  They broke up their families with AFDC.  Replacing fathers with the state.  Who failed these kids miserably.  They implemented affirmative action.  Where some game the system and get a free pass.  Because of lower standards.  Getting entrance to a college or a job over someone more qualified.  Fomenting new racial unrest.  As some complain about being passed over despite being more qualified.  Which the left jumps on as proof of overt racism.  And the need for them to do something more to end it.

But they never end anything.  Because ending it would take away their power.  Which is why despite everything they’ve done since the Sixties things have never been worse.  And more policies and legislation to end discrimination have never been needed more.  Because the racial divide has never been greater.  Despite this country electing a black president.  Twice.



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Roman Denarius, New World Gold and Silver, American Continental and German Mark

Posted by PITHOCRATES - June 25th, 2013

History 101

Money that is not Scarce is a Poor Temporary Storage of Wealth

They say money doesn’t grow on trees.  And it’s a good thing it doesn’t.  For money is a temporary storage of wealth.  It temporarily stores value.  And one if its attributes is that it has to be scarce.  For example, let’s say you are a highly skilled tomato grower.  And you work in your garden 12 hours each day weeding, fertilizing, watering, tying, pruning, etc., your many fields of tomato plants.  Producing beautiful tomatoes that everyone just loves.  You love your tomatoes so much that you actually gave up your day job to grow them full time.  And support your family with the proceeds from selling your tomatoes.  Which you will exchange with others for money.  Provided that money is scarce.  And will hold the value of your tomatoes.  Until you can exchange that money for something you want.

Now let’s assume money grows on trees.  Anyone can plant one in their backyard.  And it grows like a weed.  That is, you don’t have to fertilize it or water it or do anything else for it.  And anytime you want something you just walk to your money tree and pick the bills you need.  We would never have to work again if we all had money trees in our backyard.  Wouldn’t that be great?  Or would it?  What would happen if everyone quit working because they, too, had a money tree in their backyard?  If no one worked then there would be nothing to buy with the money from your money tree.

But there is another problem.  If everyone had a money tree there would be such much money in circulation that it would no longer be scarce.  And if it’s not scarce it isn’t money.  It isn’t a temporary storage of wealth.  It won’t temporarily store value.  Because someone that has something of value, say delicious tomatoes, won’t want to trade them for something that he or she can just pick off of his own money tree.  Instead, he or she would rather trade those tomatoes for something that does have value.  Like, say, mozzarella cheese.  So a skilled cheese-maker and the skilled tomato-grower can meet to trade things of value with each other.  Tomatoes and mozzarella cheese.  And then each can make a delicious Caprese salad.  Which also has value.  Unlike money that grows on trees that anybody can pick whenever they want to.  Filling the world with people with lots of money but nothing to buy.  Because no one works to grow or make anything.

When Spain brought back New World Gold and Silver it unleashed Inflation in the Old World

For anything to be money it must be scarce.  Just think of the laws of supply and demand.  If there are droughts all summer long farmers have smaller harvests.  Which raises the price of what they bring to market.  Because demand is greater than the supply.  If there was a great growing season they have bumper crops.  Which lowers the price of what they bring to market.  Because supply is greater than demand.  So the scarcer something is the more valuable it is.  And so it is with money.

The main Roman coin was the silver denarius.  As the Roman Empire reached its zenith her borders stopped moving out.  The Roman legions stopped conquering new lands.  And without new conquest there were no spoils to send back to Rome.  So the Romans had to raise taxes to pay for the cost of empire.  The administration of it.  The protection of it.  And a growing welfare state to keep the people content.  To help with these great expenditures they began to debase the denarius.  Mixing more and more lead into the coin.  Reducing the silver content.  So they could make more coins with the available silver.  Thus making these coins less scarce.  And less valuable.  Unleashing an inflation so bad that it devalued the denarius so much that no amount of them could buy anything.   Eventually even the Roman government would refuse to accept it in payment of taxes.  Demanding gold instead.  Or payment in kind.

When Spain arrived in the New World they found a lot of gold and silver.  Which Europeans used as money in the Old World.  The Spanish brought so much gold and silver back to the Old World that it greatly expanded the money supply.  Making gold and silver less scarce.  And less valuable.  Requiring more of it to buy the things it once bought.  So prices rose.  Because of the inflation of the money supply.

The War Reparations the Versailles Treaty imposed on Germany led to their Hyperinflation

During the American Revolution there was little specie (i.e., gold and silver coin) in the colonies.  As wars are expensive this made it difficult to finance the war.  The Continental Congress asked for contributions from the states.  And could only hope the states would give them some money.  For they had no taxing powers.  But they never were able to raise enough money.  So they borrowed what they could.  And then started printing paper money.  The continental.  But they printed so many of them that they were far from scarce.  The massive inflation devalued the continental so much that it created the expression “not worth a continental.”  Which meant something was absolutely worthless.  The people would refuse to accept them as legal tender from the Continental Army because they were worthless pieces of paper.  So the army took what they needed from the people.  And gave them IOUs that Congress would settle at some later date.

The Germans paid for World War I by borrowing money.  The increased debt of the nation during the war devalued the currency.  The German mark.  It took more and more of them to exchange for stronger currencies.  Like the U.S. dollar.  The Versailles Treaty that ended the war saddled Germany with the responsibility for the war.  And made them pay enormous amounts of war reparations.  In gold.  Or foreign currency.  So the Germans turned up the printing presses.  And printed marks like there was no tomorrow.  Making them less scarce.  And worth less.  It took more and more of them to exchange for foreign currency to make their reparation payments.  But they didn’t care what the exchange rate was.  For whatever amount of devalued marks they needed to exchange they just turned to their printing presses.  And printed whatever they needed.  This rapid inflation devalued the mark more.  Requiring them to print more.  Which just fed into the inflation.  Eventually bringing on a hyperinflation where it took enormous amounts of marks to buy anything.  For example, it was cheaper and easier to burn marks than it was to buy firewood to burn.

Anytime you make money less scarce you make it worth less.  The inflation of the money supply devalues the currency.  Which raises prices.  Because it takes more of the devalued currency to buy what it once did before the inflation.  So expanding the money supply leads to price inflation.  Good if you’re a rich investor.  But if you’re someone just trying to buy firewood to keep from freezing to death during the winter?  Not so good.  The Romans, the Europeans, the Americans and the Germans all suffered from bad inflation.  Some worse than others.  If the inflation is so bad, such as in the case of hyperinflation, people may lose all confidence in the currency.  And simply stop using it.  Going to a barter system instead.  Like when a tomato-grower trades his tomatoes for a cheese-maker’s mozzarella cheese.



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Slavery, the Cotton Gin, the Jacquard Loom, Punch Cards and Computers

Posted by PITHOCRATES - June 12th, 2013

Technology 101

(Originally published December 7th, 2011)

African Slaves came to the New World because the Colonists needed Laborers

The Europeans didn’t invent slavery when they introduced it to the New World.  It’d been around since the dawn of civilization.  And it’s been a way of life in many civilizations for thousands of years.  Where no one was safe from the slave traders.  Some were born into slavery.  Some were simply soldiers captured in battle.  Even children were bought and sold.  Perhaps the saddest story is the Children’s Crusade of 1212.  When about 50,000 poor Christian kids walked from Central Europe to free Palestine from Muslim control and return it to the Christians.  They got as far as boarding ships in Italian ports.  But those ships did not deliver them to Palestine.  They delivered them instead into the Muslim slave markets of Northern Africa and the Middle East.  Where they were never heard from again.

African slaves came to the New World because the colonists needed laborers.  They tried enslaving the Native Americans.  But it was too easy for them to escape back into friendly territory.  And blend in with the indigenous population.  Not the case with black Africans.  Who didn’t know the surrounding country.  Or the languages.  What they knew was an ocean away.  Also, the locals had a tendency of dying from European diseases.  Especially smallpox.  Whereas the Africans were long exposed to smallpox.  And built up some resistance to this scourge of European colonialism.

So the New World colonies began with slaves harvesting their crops.  Slaves that the Europeans bought from African slave traders.  Who had long been selling captured Africans to the Arabs.  And had no problem selling them to the Europeans.  And so began the problem of slavery in America.

With the Cotton Gin Separating the Seed from the Cotton Fiber became not so Labor Intensive

When the British American colonists started talking about liberty the slavery problem was the elephant in the room that they were reluctant to talk about.  When Jefferson wrote that all men were created equal they knew that meant those enslaved against their will, too.  Yet here they were.  These liberty-seeking people were enslaving people themselves.  But there was a problem.  To form a united country the Founding Fathers needed the southern states.  Who used slaves as the basis for their economy.  And they weren’t going to join a union without their slaves.  So they wouldn’t talk about the elephant.  Instead they tabled that discussion for 20 years.  With the population growing they didn’t need slaves anymore.  There were few in the North.  And the South should follow suit.  It was inevitable.  Leaving just one problem to solve.  What to do with their slaves as they transitioned to paid laborers.  Which the Founding Fathers were sure the southern slave owners could solve within those 20 years.

Slave-labor was not efficient.  George Washington wanted to sell his slaves and replace them with paid laborers.  Because paid laborers cost less.  You only paid them for their labors.  And then they went away.  And if you changed your crops you could easily hire new laborers skilled in the new crop.  Not quite so easy with a large slave labor force.  So those in the North had good reason to believe that slavery would slowly give way to paid laborers.  Even in the South.  Or so they thought.  But one of the staple crops of the South started to shape events.  Cotton.

Cotton was a labor-intensive crop to harvest.  And separating the seed from the cotton was even more labor-intensive.  Until someone mechanized this process.  With a cotton engine.  The cotton gin.  Patented in America by Eli Whitney.  A hand-cranked device that used hooks to pull the cotton fiber through a screen.  The holes in the screen were small enough to let the cotton fiber through.  But not large enough for the seeds to pass.  With the cotton gin separating the seed from the cotton fiber became not so labor intensive.   In fact, these little machines could clean cotton faster than the slaves could harvest it.  Which meant, of course, there was a lot more cotton that could be grown and harvested.  Which created a new slavery boom.  And dashed all the hopes of the Founding Fathers.

Cheap Cloth Unleashed a lot of Economic Activity which Improved the Quality of Life

Many blame the cotton gin for extending the institution of slavery in America.  And the bloody American Civil War that ended it.  But apart from this the cotton gin was a fundamental step in modernizing economies everywhere.  And helped to spur the textile industry forward.   By creating an abundant source of material for weaving looms everywhere.

The textile industry was important because everyone wore clothes.  And we made clothes from cloth.  Once upon a time people made their own clothes.  Or spent a lot of money for store-bought clothes.  Leaving them with little time or money for other things.  So cheap cloth unleashed a lot of economic activity.  Which improved the quality of life.  The Chinese started this process.  By giving us an advanced loom that used foot-power to lift thread.  And the spinning wheel to make yarn.  All the weavers needed were abundant sources of fiber to feed these machines.  Such as American cotton.

The Chinese also made some beautiful silk tapestries with complex patterns.  Which were very difficult to reproduce by hand in the West.  Until the French automated this process.  When Joseph Marie Jacquard improved on the works of Basile Bouchon, Jean Baptiste Falcon and Jacques Vaucanson.  And created the Jacquard loom.  This automated the pattern process coming from those Chinese looms.  By using punch cards to automatically lift the proper threads to reproduce that complex pattern.  An impressive advance.  But one that did not impress the French.  Who were busier with revolution than fancy weaved patterns.  But the British were interested.  And they used the Jacquard loom in their booming textile industry.  Fed largely by that abundant American cotton.  Until the American Civil War, at least.

An Advanced Automated and Mechanized Economy has no Room for Slavery

The British also used this punch card idea to automate their shipbuilding industry.  To speed up the riveting process.  By automating riveting machines.  To make ships that carried immigrants to the new world.  Who swelled the American population.  Making the census taking more and more complex.  And another punch card system made counting these people simpler.  The tabulator.  Where an operator punched holes in a card to represent information for each person.  Age.  Marital status.  Country of origin.  Etc.  IBM would use this idea of punching information into a card later.  To program some of the first computers.  Machines that increased efficiencies further.  By replacing ever more people with machines.

So it is an interesting turn of events.  Eli Whitney created the cotton gin in America.  A machine that was part of a series of technological developments that increased efficiencies and reduced the number of workers needed to perform once labor intensive tasks.  All during this process fewer people were able to do more things.  Except one thing.  Planting and harvesting cotton.  That would take first a civil war.  And then steam-powered farming equipment.  To automate farming.  Which came later to the South than it did in the slavery-free North.  And other parts of the world.

Life got better for everyone the more advanced the economy became.  Sure, a lot of people lost jobs.  But that’s progress.  A few lost jobs is a small price to pay when the masses can enjoy a better life.  Thanks to automation and mechanization.  And that includes slaves.  Or, rather, former slaves.  For an advanced automated and mechanized economy has no room for slavery.



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Cane Sugar, Crystallized Sugar, Sugar Trade, West Indies, Wealth and War

Posted by PITHOCRATES - May 7th, 2013

History 101

As Muslim displaced Christians from the Lands of the Roman Empire Sugar moved West

There is a war on sugar.  It’s making us fat.  And it’s making us sick.  Because it tastes so damn good.  We crave it.  And always have.  Since the first days we chewed on sugarcane.  Sucking out the juice.  Which was where that sweet delight was.  It was so good that the people in New Guinea (just north of Australia) learned how to plant it and raise it themselves.  Instead of just looking for it in the wild.  Around the eighth millennium BC.  From there it spread.  North.  To Southeast Asia.  Southern China.  And into India.  Where they took sugar to the next level.  They didn’t just chew on sugarcane to suck out the juice in India.  They refined it into a crystallized substance.  Around 350 AD.  Concentrating that sweetness.  And making it portable.  Then the Arabs entered the picture.

The Arabs took the Indian sugar-making technique and made it into big business.  They established plantations to grow it in tropical climes.  Where the two things that made sugarcane grow best—heat and water—were plentiful.  They built the first sugar mills to refine the cane.  Basically presses to squeeze out the juice.  Which they then boiled the water out of.  Leaving behind sugar crystals.  And added it to their foods.  As Muslim Arabs displaced Christians from the lands of the Roman Empire sugar moved west.  The Arabs introduced sugarcane plantations as far west as southern Spain.  When Christian Crusaders returned from fighting Muslims in the Holy Land they brought back crystallized sugar to Europe.  And they quickly fell in love with those white crystals.  By the late 13th century even England had grown a sweet-tooth.  Who would go on to consume so much of the stuff that they would rot their teeth away.

Then the Europeans entered the sugar business in the 15th century.  At first it was just the wealthy that enjoyed sugar.  Then it spread to the common people.  As demand grew they established new plantations to meet that demand.  In southern Spain.  The Atlantic island of Madeira.  The Canary Islands.  The Cape Verde islands off the west coast of Africa.  All had good growing climates for sugarcane.  And each plantation had its own processing plant.  For a ship’s hold full of crystallized sugar was far more valuable than a ship’s hold full of harvested sugarcane.  Making these plantations labor intensive endeavors.  And working the fields was backbreaking work.  To step up production required a larger labor force than was available.  And to meet that demand they turned to using African slaves.

Sugar was a Turning Point from an Agrarian World of Slaves and Indentured Servants to the Modern Industrial World

By the 16th century the Europeans were taking sugarcane across the Atlantic.  And African slaves.  The Portuguese, Spanish, Dutch, French and British brought sugarcane and slaves to Brazil, Cuba, Jamaica, Barbados, the Virgin Islands, Guadaloupe, Saint-Domingue (present day Haiti) and elsewhere in the Americas.  With the Caribbean Islands becoming the sugar capital of the world.  France’s Saint-Domingue being the single largest producer in the world.  Until their slave uprising.  It was France’s wealthiest possession in the Western Hemisphere.  And its loss changed French ambition in the New World.  For Napoleon had his eyes on rebuilding the French Empire in North America that was so rudely interrupted by France’s loss in the Seven Years’ War.  But with the loss of Saint-Domingue and all that sugar wealth Napoleon lost all interest in the New World.  And sold the Louisiana Territory to the United States.  To prepare for war with Britain.  Again.

The British and the French both had lucrative sugar plantations in the West Indies.  When the American Revolutionary War turned into a world war the British and French squared off once again.  Especially in the West Indies.  Where they wanted to protect their possessions producing that valuable sugar.  And take the other’s possessions.  So they could expand their holdings.  And their wealth from the sugar trade.  As well as put down any slave uprisings.  Such as would later happen in Saint-Domingue.  Some say the reason the British lost the American Revolutionary War was because they diverted too much of their military resources to the Caribbean.  But the French were diverting a lot of their military resources to the Caribbean, too.  Which is one reason why the war lasted 8 years.  As the French were more interested in taking the British possessions in the West Indies than American independence.  Their first efforts fighting alongside the Americans (Rhode Island in 1778.  Savannah, Georgia, in 1779) did not help the cause.  It was only when the French fleet could be spared from the action in the West Indies that they joined General Washington in trapping General Cornwallis at Yorktown in 1781.  With Cornwallis’ surrender effectively ending the war.  Even though they wouldn’t sign the final peace treaty until 1783.

By the end of the international slave trade Europeans sent approximately 10 million Africans to the New World.  Mostly to Brazil and the Caribbean.  To work in the sugar plantations.  Where slave ships left Africa.  They unloaded slaves in the New World.  Loaded the sugar these slaves grew.  Shipped the sugar back to the Old World.  Unloaded the sugar and loaded on finished goods.  Then sailed back to the African slave stations.  Where they traded their finished goods for more slaves.  There was big money in The Trade Triangle (trade from Africa to the New World to the Old World and back to Africa).  But sugar also helped to kick off the Industrial Revolution.  For the iron industry grew to make the machinery of the sugar mills.  As each plantation processed their sugarcane into crystallized sugar that was a lot of cast iron gears, sprockets, levers, axles, boilers, etc.  Basically a turning point from an agrarian world of slaves and indentured servants.  To the modern industrial world and wage-earners.

There is a Correlation between America’s Obesity Problem and the Switch from Cane Sugar to Corn Sugar

By the 19th century technology was making better sugar at lower costs.  The British designed a low-pressure boiler.  As water boils at a lower temperature when at lower pressure they were able to refine sugar with less energy.  Cutting production costs.  And waste.  As higher temperatures caramelized some of the sugar.  Though caramelized sugar can be delicious on crème brûlée you don’t want it when you’re producing crystallized sugar to sell.  Then the Americans improved this process by creating the multiple-effect evaporator.  A multi-stage device where the pressure is lower in each successive stage.  They use steam to boil water in the first stage.  This vapor then provides the energy to boil water in the next stage.  Which is at a lower pressure.  And, therefore, has a lower boiling point.  That vapor then boils water in the next stage which is at a lower pressure.  And so on.  Where one energy input creates a lot of useful work cost-efficiently.

With the advance in refining equipment refinery plants grew more complex.  And expensive.  So instead of building one on every plantation they built fewer but larger ones.  And shipped raw product to them.  Modern ships and economies of scale made this the new business model.  Companies grew and opened other refineries.  And expanded vertically.  Growing sugarcane as well as refining it.  One of the best at this was the American Sugar Refining Company.  That at one point controlled 98% of the sugar processing capacity in the United States.  Which earned it a spot on the original Dow Dozen.  The first 12 industrial stocks the Dow used in calculating their Dow Jones Industrial Average in 1896.  And remained a component of the Dow Jones Industrial Average until 1930.

Eventually the Americans couldn’t compete with foreign sugar producers any more.  They enlisted the help of Congress to impose tariffs on cane sugar imports.  Forcing Americans to pay more for their sugar.  Then they started making sugar out of government subsidized corn.  High-fructose corn syrup.  Which pretty much sweetens anything manufactured in the United States today.  That some say causes more health problems than cane sugar.  Including obesity.  Those in the high-fructose corn syrup business vehemently deny this.  But there is a correlation between America’s obesity problem and the switch from cane sugar to corn sugar.  Because of the different way the body metabolized corn sugar it did not satiate our appetite.  Leading us to over consume.  Such as with sugary drinks.  Which have gotten so large in size that New York City Mayor Bloomberg tried to make these large sizes illegal.  Because America’s over consumption of sugar was making us obese.  While Britain’s over consumption of cane sugar only rotted their teeth away.  It didn’t make them obese.  Which makes the case that corn sugar is less healthy than cane sugar.  Despite what the corn sugar lobby says.



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Coin Debasement, Currency Inflation and the Loss of Purchasing Power

Posted by PITHOCRATES - April 16th, 2013

History 101

The Roman Citizens welcomed the Barbarian Invaders as Liberators from the Oppressive Roman Regime

The Roman Empire pushed its borders out for centuries.  And when they did their legions conquered new territories.  And other civilizations.  Allowing them to send a lot of spoils back to Rome.  Providing the necessary funds for the empire.  With this lucrative stream of wealth flowing back to Rome they could leave the economy alone.  And did.  Economic activity was pretty much laissez-faire.  Then something happened.  The Romans had conquered pretty much all of the known civilized world.  And they stopped pushing their borders out.  Putting an end to that lucrative stream of wealth flowing back to Rome.

This created a problem.  For the empire was never larger.  With a greater border to protect than ever before.  And more territory to administer.  Which meant more soldiers.  And more civil servants.  Neither of which worked for free.  Which changed how the Romans handled the private sector economy.  They began to tax and regulate the hell out of it.  To raise the funds to pay the costs of empire.

Things got so bad that some people just started disappearing.  So the Romans introduced something that would evolve into European feudalism.  They forbade people from leaving their jobs.  Ever.  They even forbade the children from leaving their father’s profession.  While they were doing this they were debasing their coins.  The gold a little.  As it paid the soldiers and the civil servants.  And the silver a lot.  The money of the common people.  Who weren’t as important as the soldiers and the civil servants.  Until their silver was nothing but worthless slugs.  Causing prices to soar.  And the economy to collapse back into the barter system.  Hastening the fall of the Roman Empire.  As the Roman citizens welcomed the barbarian invaders as liberators from the oppressive Roman regime.

The Spanish brought back so much Gold and Silver from the New World that it actually Depreciated the Money Supply

Europe met Asia on the Bosporus.  The straits that connected the Black Sea and the Mediterranean Sea.  And it was where the Silk Road brought the exotic goods of the Far East into Europe.  Which the Europeans just couldn’t get enough of.  Making the Mediterranean powers the dominant powers.  For they controlled this lucrative trade.  Until, that is, the European nations made better ships.  Ships that could cross oceans.  And were bigger than the ships that plied the Mediterranean.  So they could bypass the Mediterranean powers.  And sail directly to the Far East.  Fill their large holds with those goods the Europeans couldn’t get enough of.  Getting rich and powerful.  And shifting the balance of power to these European nations.

But the Europeans just didn’t go east.  They also went west.  And bumped into the New World.  The Dutch, the French, the British, the Portuguese and the Spanish all had colonies in the New World.  It was the age of mercantilism.  Colonies sent raw materials to their mother country.  Who manufactured these raw materials into finished goods.  And shipped them from the mother country on the mother country’s ships through the mother country’s ports.  For the name of the game was balance of trade.  Which meant you imported lower-valued raw materials and you exported higher-valued finished goods.  And because the value of their exports was greater than the value of their imports there was also a net in-flow of gold and silver.  Which was what mercantilism was all about.  Trying to accumulate more gold and silver than your trading partners.

And the Spanish hit mercantile pay-dirt in the New World.  Gold and silver.  Lots of it.  So they loaded it up on their ships.  And sent it back to Spain.  Where it entered the European money supply.  And none too soon as the Europeans were cash-starved.  Because of all those exotic goods the Europeans couldn’t get enough of.  While those in the Far East had no interest whatsoever in European goods.  Which meant that European gold and silver went to the Far East to pay for those exotic goods.  Leaving the Europeans starving for gold and silver.  But thanks to the New World, they were able to reverse that net outflow of gold and silver.  In fact, so much gold and silver arrived from the New World that it actually inflated the money supply.  Which actually devalued the currency.  And because the currency lost purchasing power prices rose.  Making food more costly.  And life more difficult.

President Andrew Jackson joined the Hard-Money People and refused to renew the Charter of the BUS

Responsible nations have chosen gold and silver as their currency as it is difficult to increase the money supply and cause inflation.  Because mining these precious metals, refining them and minting coins is very costly.  Unless you discovered a New World with gold and silver paving the streets.  But that didn’t happen every day.  The irresponsible government, though, figured out a way to make that happen every day.  By just getting rid of the responsible gold and silver.  And replacing it with paper notes.  Fiat money.

Fiat money dates back to 11th century China.  To the Song Dynasty.  Which allowed the government to spend more money than their taxes raised.  Especially during war time.  But printing money devalued the currency.  And when you make the currency worth less it takes more of it to buy the things it once did.  Reducing purchasing power.  And unleashing price inflation.  Making food more costly.  And life more difficult.  During the American Revolutionary War there was so little gold and silver available that the Continental Congress turned to printing money.  And they printed so much that they unleashed a punishing inflation.  Causing prices to soar because the money became so worthless.  People wouldn’t accept it for payment.  So the Continental Army had to take the provisions they needed.  Leaving behind IOUs for the Continental Congress to make good on.  Later.

Of course, not everyone suffered during times of inflation.  Speculators did very well.  For their friends in the government’s central bank could print money and loan it to them on very favorable terms.  The speculators then used this cheap money and bought and sold assets.  Pocketing handsome profits in large part because of that inflation.  As the currency depreciation raised prices.  Including the prices of the assets they were selling.  So the rich got richer during periods of inflation.  While the working class just lost purchasing power.  Which is why President Andrew Jackson joined the hard-money people.  Those who favored gold and silver over paper currency.  And refused to renew the charter of the Second Bank of the United States (BUS).  Being one of the first world leaders not to choose destructive inflationary policies.  Instead choosing policies that favored the people.  Not the state.



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Prevailing Winds, Channel Markers, Buoys, Portage, Canals, Locks, Niagara Falls and the Welland Canal

Posted by PITHOCRATES - January 30th, 2013

Technology 101

The Lateen-Rigged Sail allows Ships to Maneuver onto the Prevailing Winds Superhighways

Oceans are deep.  Allowing ships to cross them without fear of striking bottom.  Which helped the age of sail.  As sailors could use the prevailing winds to fill large masts of square-rigged sails to blow them across oceans.  Sailing to the New World with the trade winds (near the equator) and polar easterlies (near the poles) filling their sails.  And sailing from the New World with the westerlies (in the middle latitudes in both hemispheres) filling their sails.  The deep oceans let these sailing vessels move unrestricted to find the best wind.

That is, once these sailing vessels got to the proper latitude.  Getting there they had to use another kind of sail.  A lateen-rigged sail.  A triangular sail with a leading edge that cut into the wind.  Splitting the wind so part of it filled the sail.  The sail blew out and redirected the wind to the stern of the ship.  While the wind passing over the top of the curved sail created lift.  Like on an aircraft wing.  Pulling the ship forward.  This allows a wind blowing in from the side of a ship to propel it forward.  Which allows a sailing vessel to sail into the wind.  By sailing in a zigzag path.  Or beating.  After sailing in one direction they come about.  Or tack.  Turning the bow through the wind so it blows in from the other side of the ship.

The wide open and deep oceans let these sailing vessels maneuver at will to catch the wind.  Propelling them forward at speed.  Without fear of grounding out on the bottom.  Taking them to the great superhighways across the oceans.  To the trade winds and polar easterlies to sail west.  And to the westerlies to sail east.  Where these winds could fill multiple squared-rigged sails on a single mast.  On ships with multiple masts.  Allowing them to catch a lot of wind.  And to drive them forward to their destination.

Channel Markers and Buoys are Color-Coded telling Ship Captains ‘Red Right Returning’

Of course it’s these destinations that really matter.  For sailing around in the middle of the ocean is worthless unless you can load and unload cargo somewhere.  Getting to these ports was a little trickier.  Because it required sailing closer to land.  Where the ocean floor rises up quickly from great depths.  Making sailing near shores hazardous.  As hidden shoals and reefs hide just below the surface.  Threatening to cut a deep gash in a ship’s hull.  Or a ship could run aground in the shallows.  Where they may have to wait for a rising tide to free them.  All the while risking being damaged by any storm that blew in.

The first sailors who arrived in the New World had no navigational aids like we do today.  Often having to rely on the experience of a grizzled captain who could see and smell dangers in the water.  Or they dropped anchor away from the shore and explored the coast in smaller boats to sound out sea approaches to a deep-water harbor.  As time passed lighthouses dotted the shoreline.  And other navigational aids guided ship captains.  To warn them of dangerous waters.  And show safe channels to navigate.    Channel markers and buoys are color-coded.  With paint for day navigation.  And lights for night navigation.  In the New World (and Japan, South Korea and the Philippines) the colors are red and green.  When entering a harbor or river from the sea the red is kept on the right of a ship.  Mariners learn this with the memory device ‘red right returning’.

When the French sailed up the Saint Lawrence River they founded the oldest walled-city in North America.  Quebec City.  They then sailed as far upstream as they could.  Founding the city of Montreal.  Going beyond Montreal required portaging around the rapids at Montreal.  And a few others until they got to Lake Ontario.  Where they could re-embark ships and sail across Lake Ontario and into the Niagara River.  Where they had to portage around the rapids.  And Niagara Falls.  Where they once again could re-embark ships and enter Lake Erie.  Then sail up the Detroit River.  Across Lake St. Clair.  Up the St. Clair River.  And into Lake Huron.  Where they could sail through the Straits of Mackinac and into Lake Michigan.  Or up the St. Marys River.  Where they could portage around the rapids in the St. Marys River.  Reentering the river upstream of the rapids to let them sail into Lake Superior.  Where they could sail all the way to Minnesota.  And take on iron ore.  Mined from the great iron ore deposits beyond Lake Superior.  To feed the blast furnaces of America’s steel industry.

A Lock consists of a Chamber with Watertight Gates at each end and some Valves

Of course, iron ore is heavy.  As is a lot of the bulk freight shipping on the Great Lakes.  Making those portages around rapids and falls difficult and costly.  They needed to find a better way.  And they have.  Which is why Great Lakes freighters can travel from the western end of Lake Superior to the Saint Lawrence River.  And ocean-going freighters can enter the Saint Lawrence River and travel to the western end of Lake Superior.  Without a single portage.  Thanks to canals.  And locks.

A canal provides a passage around rapids or falls.  And locks in the canal can raise or lower a ship to the water level at either side of the rapids or falls.  Getting around the rapids between Montreal and Lake Ontario and in the St. Marys River didn’t require long canals.  Just enough to provide a passage around the rapids.  The Niagara River posed a bigger problem.  For there were both rapids.  And Niagara Falls.  As well as a great change in water levels.  The level in Lake Erie is 326.5 feet above the level in Lake Ontario.  As the typical lock doesn’t raise and lower water 326.5 feet one lock just wasn’t a solution.  So they used 8 (7 for raising and lowering ships and the 8th as a control lock).   And dug a canal across the Niagara peninsula.   The Welland Canal.  From Port Weller on Lake Ontario to Port Colborne on Lake Erie.  Interconnected by 26 miles of canal.  Allowing fully loaded bulk freighters to travel between Lakes Erie and Ontario.  And ocean-going freighters to travel from the Atlantic ocean (and the world beyond) to the western end of Lake Superior.

So how does a lock work?  Are there massive pumps to pump in water to raise a ship?  No.  There are no pumps.  Just a couple of valves.  A lock consists of a chamber with watertight gates at each end.  The gates swing open towards the upstream side.  When they close they form an 18-degree angle that points upstream.  So when the water level is higher on the upstream side the force of the water presses the gates closed and makes a watertight seal.  When the water level is equal on both sides of the gate they can easily open the gates.  When a ship enters a lock both gates seal.  If they are lowering a ship they open valves between the chamber and the canal on the downstream side.  The high water level inside the chamber drains until the water levels equalize.  If they are raising a ship they open valves between the chamber and the canal on the upstream side.  Water from the canal enters the chamber until the water levels equalize.  Then the appropriate gate opens and the ship goes on its way.  A very simple and low-tech process.  Allowing ships with deep drafts to travel the oceans.  Rivers.  And inland lakes.  Thanks to navigational aids.  Canals.  And locks.



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