Important Miscellany on Economics and Some Geopolitics From All Over.
March 22, 2012 2 Comments
This is sort of a round-up from the last couple of days, I had a lot of work to get done, so this kind of got put aside.
On Capitalism, and why we should be proud Capitalists
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.” — Winston Churchill
Saying that capitalism is better than socialism is like saying that winning a million dollars is better than being in a high impact car crash. In other words, if you have an open mind, a good grasp on human nature and economics, and a passing knowledge of world history, there’s absolutely no question that capitalism is superior to socialism.
Unfortunately, this lesson has been lost on a lot of people because our school systems have become so mediocre, there are no pure capitalist and socialist systems, and there are a lot of people who promote socialism for reasons that have nothing to do with economics. Is it surprising, for example, that politicians prefer an economic system that concentrates power in their hands as opposed to a system that makes them less relevant? Would anyone be shocked to find out that there are people who like the idea of making money based on whom they know and where they put their campaign contributions as opposed to slugging it out in the free market?
So with all that in mind, it is worth explaining, once again, why capitalism is absolutely, undeniably, unquestionably superior to socialism.
As for the practical effects, we can thank Judson Phillips from Tea Party Nation for some insight in how it works.
Remember 2008? John Edwards was running for President, becoming a baby daddy with his mistress, pretending to be the dutiful husband to a wife dying from cancer and giving a speech claiming there were two Americas. Edwards could not get anything right back then and his two Americas speech was about as wrong as it could be.
While there are not two Americas, perhaps the question needs to be asked, should there be two Americas?
Of course there needs to be two Americas. Obama and the Party of Treason would certainly like to stop this and that is even more reason we should push for two Americas.
What is two Americas?
In some ways we already see this. Look at the States that are doing the best job of surviving the Great Obama Depression. These are the Red States. The states that are doing the best have been managed well. Texas is one of the best examples. Companies and individuals are fleeing California at a record pace to go to the Lone Star State.
Continue Reading at GDS 44
This could be pretty much summed up as: Leave us the Heck Alone, if you want jobs that will outlast the latest round of stimulus money. We could probably note that FDR killed the recovery in 1936, thereby prolonging the depression till Mr. Hitler ended it. However, I don’t think Mr. Imadinnerjacket has enough power to end a depression, and I’d rather not test it.
Part of the case for free trade
Jacques Delacroix over at Notes on Liberty is doing some very good work (and has been for a while) on how the export of manufacturing job is basically a strawman, and how to take that argument apart. A very good read.
I had a troubling encounter in the past few days. It was on Facebook and it was with a stranger. Here is how it went: I patronize several organizations’ and people’s Facebook pages, to stay informed and also to learn from them. There is a man, X, who is my Facebook “friend” and whose page I like because he is a libertarian, or a libertarian conservative like me, who knows useful things I don’t know. X has a talent for firing up debates on Facebook. In one debate a propos of I don’t remember what, one person, followed by several others, kept referring to the de-industrialization of America, its putative loss of manufacturing industries specifically.
I intervened calmly and politely to point out that there was no such thing. I remarked that the height of American industrial production was either 2008 or 2007, or maybe even 2006, not 1950 as they seemed to believe. I directed the debate participants to a couple of government sources. One woman responded almost insultingly, alleging that I was trying to send her on a wild goose chase. She appeared to think that I was referring her to the whole Census with its thousands of pages of documents. I took the trouble – obligingly, if I say so myself – to direct her through Facebook to a source I though was easy to read, NationMaster. In addition I summarized what NationMaster had to say on the topic.
Here is the summary:
The total value of the production of American manufacturing keeps going up except for small annual variations.
The woman on Facebook answered with vulgar statements including: “… just poop off,” “I don’t do stupid.” …
Continue Reading at Notes on Liberty
Sino-American relations and the Economy
Beaufortninja at Wandering American has some words of wisdom on why America doesn’t really have to take much nonsense from the Chinese, if we’re willing to stand up for ourselves, anyway.
Taken from The Carolina Patriot
There’s a lot of talk in the media about how China is fast approaching the point when it will overtake the US as both the dominant economic and military power in the world, most of which is highly over-exaggerated and misunderstood or is just being used as a fear tactic. The fact of the matter is that America has carried out a brilliant plan to hedge China in where it matters the most.
Since 2001, most people in America, and indeed the world, assumed that the US was just stumbling around the Middle East from warzone to warzone with no idea what it was doing. It’s widely accepted that one of the main goals of the Afghan and Iraqi wars were to establishment a greater foothold in the region to secure the oil. The only piece currently not in America’s pocket is Iran and it looks like they could be knocked into place sometime in the near future. China currently gets a huge chunk of its oil from the Middle East and with the massive US presence in the area, Washington has the oil on tap. If China does something they don’t like then the oil will not flow and China’s economy will grind to a halt. The Chinese have made a great effort to diversify their energy sources by developing indigenous industries and importing from several countries, most notably from Russia, who has the largest fossil fuel deposits in the world. But even Russia, with it’s vast resources, won’t be able to supply it’s domestic energy needs along with Europe’s advanced economies and China’s insatiable appetite.
And that’s not all. An oil embargo from the Middle East could be very damaging but that might not necessarily lead to the complete and utter defeat of China. To find that out, first you must learn what kind of economy China has. The answer? Exports. Exports are the key and the reason why China has grown so quickly. And the US has quietly shifted its pieces into place to halt most Chinese exports if conflict ever breaks out.
Continue Reading at Wandering American.
A quick note, if we are worried about Iran closing the Straits of Hormuz, and we are, what would happen to Asia if the United States closed the not only the Straits of Hormuz but also the Straits of Malacca? Think Asia might notice?
An update here, also from Beufortninja: A Possible Military Coup in Beijing. Read his story here.
Beer and Taxes
And just so you can understand this absurdity better: The Tax System Explained in Beer – Daniel J. Mitchell – Townhall Finance Conservative Columnists and Financial Commentary
Then there is this: North Korea plans to launch a satellite. From AP
PYONGYANG, North Korea (AP) — North Korea vowed Sunday to go ahead with plans to launch a long-range rocket, rejecting criticism in the West that it would scuttle recent diplomacy.
North Korea said Friday that it would fire an observation satellite into space on a new rocket as part of celebrations next month of the 100th anniversary of late President Kim Il Sung’s birth.
The announcement came about two weeks after the North agreed to suspend long-range missile tests and make nuclear concessions in exchange for much-needed food aid from the United States. The agreement was seen as a promising step toward improved relations between the two wartime enemies.
It’s been years since I studied any of this but it sticks in my mind that there is a direct correlation between being able to place a satellite in Earth orbit and certifying an Intercontinental Ballistic Missile (ICBM). Given that we have a rogue regime with nuclear weapons and an ICBM (maybe) perhaps we ought to pay attention.
It seems like it’s been a busy week, doesn’t it
- Thoughts On Capitalism (samuelatgilgal.wordpress.com)