FUNDAMENTAL TRUTH #25: “War is costly. Peace, too.” -Old Pithy

Posted by PITHOCRATES - August 3rd, 2010

ONE OF THE lasting consequences of war is the feminization of men.  War makes widows.  And fatherless sons.  Their mothers raise them the best that they can.  But women tend to be kinder and gentler than men.  More nurturing.  Fathers are, after all, the disciplinarians.  “Just wait until your father gets home.”  Sons with fathers knew what that meant.  And it wasn’t kind, gentle nurturing.

The American Civil War killed some 600,000 men.  A generation of fathers was lost.  When their sons came of age, they were more sensitive to the suffering of others.  And they felt a mothering urge to do something about it.  In politics they became Progressives.  They grew government.  Because government knows best.  Well, mother knows best.  And a government that mothers would solve all our social ills.  And these men would mother.  Compassionately.  And they thought all that rugged individualism was overrated.

World War I killed some 9 million men in uniform and about another 7 million in civilians.  These fatherless sons would rise in power and help create the cradle-to-the-grave welfare state known as European Socialism. 

World War II killed some 400,000 American men.  And their sons would follow the European’s lead.  They would attend the universities where the progressives taught.  They came out with heads filled with caring and compassion for victims everywhere.  LBJ’s Great Society would grow out of this movement.  As well as a hatred for American rugged individualism.  And anti-war fervor.

AND THEN YOU had the filthy, maggot-infested hippies.  South Park is a crude comedy.  And Cartman has few redeeming qualities.  But he’s right about hippies.  They ruined this country.  Born in the baby boom following World War II, most had the benefit of a father.  However, by the 1960s, the universities they attended were a lost cause.  Their professors would attack whatever their parents taught them.  They would learn to hate.  In a kind, gentle, nurturing way.

They hated America.  How it became.  What it did.  What its values were.  Are.  Instead, they would embrace America’s enemies.  Have kind, gentle, nurturing compassion for them.  They were proud Marxists.  And Communists.  They relished their First Amendment right to attack the American Republic that gave them that right.  While they supported oppressive regimes where you had no such right.  And spoke ill of the government at your own peril.  Oh, they damned America and its allies for all of their ‘crimes against humanity’.  But they said nothing about the reigning co-champions of human rights abuses.  The Soviet Union.  And Communist China.  No, they wanted to extend the proletarian revolution to America.  So more could suffer the worst of human rights abuses.  Why would anyone adopt such a conflicting course of political action?  Because they’re idiots.

Power to the People.  Give Peace a Chance.  All You Need is Love.  They knew all the answers.  John Lennon et al.  War was business.  Nothing more.  Or the folly of kings.  As the Monkees sang about in this anti-war song:

They met on the battlefield banner in hand.
They looked out across the vacant land.
And they counted the missing, one upon one,
None upon none.
The war it was over before it begun.

Two little kings playing a game.
They gave a war and nobody came.

(from Zor and Zam by Bill Chadwick and John Chadwick
Album: The Birds, the Bees and the Monkees)

This is what the anti-war people believe.  Either war is business.  Or the folly of kings.  That there is no ‘bad guy’ in war.  Just pawns.  And units of production.  Because human nature is peaceful.

WHO DID THE high school bullies pick on?  Who did they pansts?  Steal their lunch money from?  Give a wedgie to?  A swirlie?   Beat up.  Belittle with name calling?  Not tough guys.  Weak guys.  This is human nature.  The strong feed on the weak.

WHEN GUN OWNERS discovered a ‘loophole’ in Floridian law about carrying concealed weapons, they started carrying concealed weapons.  What happened?  Crime on Floridians dropped.  Crimes on tourists rose.  Why?  Because the bad guys knew that tourists didn’t carry concealed weapons.  This is human nature.  The strong feed on the weak.

BACK WHEN DETROIT was the murder capital of the U.S., a friend traveled there and bought a t-shirt.  It read, “Detroit:  Where the Weak are Killed and Eaten.”  Now I don’t recall reports of cannibalism in the Motor City, but the message was clear. Figuratively, of course.  Human nature was becoming animal nature.  The strong feed on the weak.

MANY ANIMAL SPECIES have large litters.  Or numerous litters.  Like bunnies.  Cute little, fluffy, harmless bunnies.  But bunnies are tasty.  They’re low on the food chain.  They are food to almost every carnivore in the wild.  Including man.   Few bunnies live long before becoming a meal.  This is animal nature.  The strong feed on the weak.

“IN EVERY GENERATION there is a chosen one.  She alone will stand against the vampires, the demons and the forces of darkness.  She is the slayer.”  (From the television show Buffy the Vampire Slayer.)  In the world of vampires, demons and the forces of darkness, it’s kill or be eaten.  It’s even the nature of the supernatural.  The strong feed on the weak.

BIG GOVERNMENT AND UNIONS grew big and powerful in the 20th century to protect the little guy.  They said that Big Business and the free market favored the rich and powerful.  At the expense of the poor and weak.  They said it was human nature.  For the strong to feed on the weak.

DURING THE TIME of America’s involvement in Vietnam, the Communist Party of Kampuchea went on a killing spree.  While the hippies protested Vietnam, they praised the social compassion of anti-capitalistic communism.  Power to the People.  Baby.  Meanwhile, the Khmer Rouge killed their own people wholesale (by a percentage of population killed, the greatest in history).  Included in the genocide lists were students or people with glasses.   They killed any ‘educated’ person.  And those who even looked educated.  So, yes, the hippies supported a movement that would have killed their own worthless selves if given the chance.   Human nature at its worse.  The strong feed on the weak.  And the stupidity of hippies.

THERE ARE BAD guys in the world.  And there’s no denying it.  Human nature is not peaceful.  It is anything but.  Darwinian Theory never played out so fiercely.  The strong feed on the weak.  They seek them out.  Like a predator in the wild, they seek out the weak and maimed and move in for the kill.  You can’t reason with them.  Just like you can’t reason with a bully.  Those who think that we can need to man-up and face facts.  And if you can’t, don’t worry.  We have others that are more than willing to man-up and fight our battles for us.  To keep America strong.  If we let them.

Predators don’t respect weakness.  They respect power.  And power is the only thing that will deter them.  The bad guys have attacked American soil few times.  Because America is powerful.  You mess with the big dog and it’s going to bite you.  And maul you.  So the bad guys don’t mess with the big dog often.  Because they pay dearly when they do.

America has known peace and prosperity like few other people can possibly imagine.  And the reason for that is that we have the biggest and baddest military in the world.  It kept the Soviets at bay in Europe.  It thumped Iraqi’s vaunted million-man army in less than 100 hours of combat.  It then thumped them again with a smaller force.  (That display of power cowed Libya from sponsoring terrorism for fear of that awesome power thumping them next.  And it got the Saudis to do the politically unthinkable – take on Al Qaeda in their kingdom.)  It ran bin Laden deep underground leaving him more impotent than threatening.  It held the line in Korea.  And it won every battle it fought in Vietnam.  (Of course, everything went to hell in a handbasket when we left.  But that’s another story.)

But that kind of power doesn’t come cheap.  And you gotta have the will to use it.  But when you do, you get peace.  An expensive peace, yes.  But peace is always cheaper than war.  Especially when that peace deters war.

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FUNDAMENTAL TRUTH #20: “It is never a consumer that complains about ‘predatory’ pricing.” -Old Pithy

Posted by PITHOCRATES - June 29th, 2010

LOW PRICES.  GOD help me, I do hate them so.  I hate them with every fiber of my body.

Who says this?  Do you?  I don’t.  Of all the times I’ve spent shopping, I have never heard anyone bitch about low prices.  I’ve heard people bitch about high prices.  But never about low prices.  When gas approached $3/gallon, people bitched about that being too high and drove 10 miles to find ‘cheap’ gas to save a few pennies per gallon.  Let it approach $4/gallon and they’ll want Congress to take action.  To attack Big Oil.  To seize their oil and their profits and give us cheap gasoline in return.  But when gas was cheap, no one ever bitched about it being ‘too’ cheap.  It just doesn’t happen that way.  People bitch about high prices.  Not low prices.

So who bitches about low prices?  Competitors.  There’s a saying that competition makes everything better.  And it does.  It lowers prices.  And raises quality.  And who is looking for lower prices and higher quality?  Consumers.  Who isn’t?  Competitors.  Especially competitors with political connections.

WHEN THE BIG 3 were putting out crap in the 1970s, they did so because they could.  I mean, who else were you going to buy a car from?  So what if your car breaks down and the fenders and quarter panels rust away?  That just means you gotta buy another car sooner rather than later.  A pretty sweet deal.  Especially when there are only three places to go to buy a car.  And each of the Big 3 is selling the same crap.

Then the Japanese had to go and ruin a good thing.  They started selling cars in America.  These cars were smaller than your typical American car.  But there were other differences.  They didn’t rust like the American cars.  They didn’t break down as much.  And the imports were cheaper than the American cars.  Lower price and higher quality.  More bang for the buck.  Exactly what consumers were demanding.

So what was the response of the Big 3?  Did they rise to the level of their new competitors and deliver what the consumer wanted?  No.  They ran to government for help.  For protection.  And they got it.  Voluntary Export Restraints (VER).  The government negotiated with the Japanese to ‘voluntarily’ limit the number of cars they exported to the United States.  Or else.  So they did.  To avoid worse protectionist policies.  Problem solved.  Competition was limited.  And the Big 3 were very profitable in the short run.  Everyone lived happily ever after.  Until the Japanese refused to play nice.

The problem was what the Big 3 did with those profits.  Or, rather, what they didn’t do with them.  They didn’t reinvest them to raise themselves up to the level of the Japanese.  Protected, they saw no incentive to change.  Not when you have Big Government on your side.  And how did that work for them?  Not good. 

So look, the Japanese said, the Americans like our cars.  If the American manufacturers won’t give them what they want, we will.  While honoring the VER.  We won’t export more cars.  We’ll just build bigger and better cars to export.  And they did.  The Big 3 were no longer up against inexpensive, higher quality subcompacts on the fringe of their market share.  Now their mid-size and large-size cars had competition.  And this wasn’t on the fringe of their market share.  This was their bread and butter.  What to do?  Build better cars and give Americans more bang for their buck?  Or run to government again?  What do you think?

The Big 3 assaulted the Japanese under the guise of ‘fair trade’.  The cry went out that unless the Japanese opened up their markets to American imports (in particular auto parts), we should restrict Japanese imports.  To protect American jobs.  To protect the American worker.  To protect the children.  This was code for please make the Japanese cars more unattractive to purchasers so they will settle for the more costly and lower quality cars we’re making.  (Let’s not forget the reason Americans were buying the Japanese cars in the first place).

The Japanese response?  They took it up a notch.  They entered the luxury markets.  They launched Acura, Lexus and Infiniti.  They competed against Cadillac and Lincoln.  And well.  The quality was so good they even affected the European luxury imports.  More attacks followed.  Americans were losing their jobs.  Soon there would be no more American manufacturing left in the country.  So the Japanese built plants in America.  And Americans were now building the Japanese cars.  The Japanese actually created American jobs.

SON OF A BITCH!  So much for the loss of American jobs.  The Japanese threw a wrench in that argument.  So now the argument became about the loss of ‘high paying’ American jobs.  For the Japanese plants were non-union.  Didn’t matter that their workers were making better pay and benefits than many in their region.  No.  What mattered was that they were building a better product.  And they didn’t want THESE jobs in America.  But if they couldn’t get rid of these new workers, they should at least unionize them so their cars cost more.  To make them a little less appealing to the American consumer.  So far they have been unsuccessful in this endeavor.  The workers are happy as they are.

Well, these cars just weren’t going away.  So the Americans surrendered car manufacturing to the Japanese.  They couldn’t beat them.  (Of course, it’s hard to do that when you don’t even try).  They, instead, focused on the higher profit truck and SUV markets.  Then the Japanese entered those markets.  And at every level they competed with the Americans, the Japanese gave more bang for the buck.  And the consumers responded.  With their hard-earned wages.  It just wasn’t fair.  The Japanese kept giving the American consumer a better product.  No matter what political action the Big 3 took or demanded.

And there’s the problem.  They sought their answers from government.  Instead of making a better car.  They wanted to stop the Japanese from giving the American consumer what they wanted so they could force Americans to pay more for less.  All the while the economy was forcing the majority of consumers to get by on less (the majority of consumers do not have the wage and benefit package the ‘select’ few had in the Big 3). 

Fast forward to 2008 and we see the ultimate consequence of their actions.  Bankruptcy.  GM and Chrysler had to grovel for a federal bailout and in the process become Washington’s bitch.  Ford survived on her own.  As did the Japanese.  You can bitch all you want about costs, but if you have the revenue you can pay your costs.  And the Americans just couldn’t sell enough cars to maintain the revenue they needed for their cost structure.  By refusing to address the core problem (they weren’t making cars Americans wanted to buy), they only made their competition stronger and more entrenched in the U.S. market.

IT’S ALL POLITICS.  Political cronyism.  And crony capitalism.  It all comes down to political spoils and patronage.  That’s what happens when politics enter capitalism.  Big Business partners with Big Government and they enter into relationships.  You scratch my back and I’ll scratch your back.  But when government protects a business for political expediency, the industry suffers in the long run.  As the U.S. automobile industry has.  Ditto for the U.S. textile industry.  And the U.S. steel industry.

So what goes wrong?  When you protect an industry you insulate it from market forces.  You can build crap.  The problem is, consumers don’t buy crap.  So, for awhile, politics intervene and makes the crap more favorable.  Whether it’s predatory pricing, monopolistic pricing or collusion, business can’t win.  Big Government is there.  If your prices are too low, government will intervene.  If prices are too high, government will intervene.  If prices are too similar, government will intervene.  To make things ‘fair’.  And by fair they mean to reward those who play the game and to punish those who don’t.  And the spoils go to those large voting blocs they need.  And in return for their votes, they can count on patronage.  Government jobs.  Political positions.  Favorable legislation and regulation.  If you got the vote out, you were rewarded quite nicely. 

And consumers be damned. .

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