Friedman’s Four Classifications of Spending

Milton Friedman was no Austrian, but he was certainly right on a few things.  One of my favorite concepts of his was the four different methods of spending money.  I don’t have a lot to say about this, I’m just throwing it up here mainly so I can reference it later, because it comes up fairly often in debates with statists.

1.  You spend your own money on yourself.  In this case, you have a clear interest to ensure the money is spent wisely, and that you obtain fair value for it.

2.  You can spend your own money on someone else.  In this case, you still have an interest to economize, but the odds of you being able to perfectly satisfy the desires of another person are much smaller.  Efficiency is reduced.

3.  You spend someone else’s money on yourself.  In this case, you will still want to maximize the amount of value you get for your money, but you have no particular incentive to minimize the total amount of money spent.  You will likely spend more of someone else’s money than you would if it was your own money.

4.  You spend someone else’s money on someone else.  In this case, you have no incentive at all to keep spending low, nor is it likely that you will spend the money wisely and obtain full value for it.  This is incredibly inefficient.  Note that virtually all government spending falls into this category.

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Public Corporations Shouldn’t Give To Charity

The inspiration for this post came from a Facebook post by the Motley Fool in which they were advertising one of their articles spotlighting various companies who have donated significant amounts of money to Autism Speaks.  The Facebook post asked a simple question:  “Who doesn’t love seeing big business give back?”

Well, this guy for one!  That’s right, I’m the guy who thinks big businesses shouldn’t “give back” (we’ll save the discussion of how this is a loaded and incorrect term for some other time).  My opposition to this isn’t based on some sort of Randian “charity is evil,” position.  I’m a big fan of charity in general (as a libertarian, you pretty much have to be, as “charity” is the standard answer for “without government what will stop poor people from starving to death in the streets” objections).  I am completely and entirely in favor of individuals choosing to give to charities of their choosing.

My concern when it comes to public corporations doing so stems from the classic principal-agent problem.  These companies do not really have their “own” money to give away.  A corporation does not “own” it’s cash balance, it is merely a custodian of this cash for the real owners, the shareholders.  When Home Depot donates a million dollars to Autism Speaks, it is giving away a million dollars of shareholder’s money.  While this isn’t necessarily the most terrible thing in the world, it begs a simple question.  Why not return this money to the shareholders, so that they can donate to a charity of their own choosing?  Any time a publicly traded company donates money to charity, it is essentially requiring that its shareholders donate to that same charity.  In this case, it is engaging in the least efficient method of spending money possible:  spending other people’s money on other people.

If the directors and officers of publicly traded companies believe in the mission statement of a particular charity, they should donate their own money towards it.  To donate company funds to private charities is essentially forcing minority shareholders to donate to these same charities regardless of whether they desire to or not, which is inefficient, unnecessary, and entirely undermines the concept of charity in general.

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Economists Oppose Immigration Because “Dey Took Our Jerbs!”

The Bogus High-Tech Worker Shortage: How Guest Workers Lower US Wages | The Business Desk with Paul Solman | PBS NewsHour | PBS.

Don’t let the big words and the scientific sounding rhetoric fool you, this piece by Hal Salzman, B. Lindsay Lowell, and Daniel Kuehn is built entirely around fallacies, faulty premises, and good old fashioned nationalism.  At the end of the day, these three highly educated gentlemen advance an anti-immigration position not significantly different from the mob of lower-class townspeople on a widely known episode of South Park.

Essentially, they oppose the expansion of the H-1B work visa program on the grounds that too many foreigners are entering this country legally and stealing jobs away from well qualified, middle-class, white Americans.  The entire piece seems to operate under the premise that computer science graduates are entitled to a job with a high salary.  Oops, did I say computer science graduates, I meant computer science graduates who happen to be American citizens.  The rest of the world can go kick rocks.  Are you a brilliant, well-educated IT professional who has committed no crime other than happening to have been born in India?  Well too bad for you Sonjay, this is our economy and these are our jobs and if we let you in, why you just might commit the terrible crime of doing great work for a low wage.  We certainly can’t have that!  Think of the devastation it would wreak on the economy if the quality of labor was kept constant while the price of labor was able to fall!  (Note:  Don’t actually think about this if you are a Keynesian, you just might get the dry heaves.)

I also find little support for the allegation that recent graduates won’t be able to find “the types of jobs that will allow these graduates to pay off student loans, much less enter the middle class,” while the piece links to a chart showing that the average salary for programmers and computer and IT professionals has never dipped below $50,000 since 1992.  According to the census bureau, median household income (keep in mind that many households have more than one individual who works) was about $53,000 from 2007-2011.  In this exact period of time, the “Computer and IT Salary” was over $70,000.  I think that safely puts computer and IT professionals well into the middle class.  There are plenty of college graduates out there with just as much student loan debt who will be entering fields with significantly lower prospects of employment and high pay, yet this piece somehow expects us to cry for the poor IT professionals who are only making $70,000 a year because those dastardly foreigners are coming over here and are willing to do the same jobs for less than that amount.

Of course, nothing is stopping any American college graduate from accepting the same “lower” amount that foreigners accept.  Foreigners are at a natural disadvantage in the American job market.  The average hiring manager would almost certainly prefer an equally qualified American to a foreigner, assuming the costs were equal.  The American is almost certainly fluent in English, and familiar with the cultural and social norms of the United States.  Because of this disparity, foreigners have to be willing to accept lower wages in order to compete in this job market.  They are not evil for doing so.  They are simply acting according to their own rational self-interest.  That said, there is nothing stopping an American graduate from accepting a job offer at the same rate of pay that foreigners are typically willing to work for (well, other than a sense of entitlement that is).

The authors ask:   Can anyone argue that prioritizing access to good employment for high-skill domestic workers is not in the national interest?”

Why yes, I most certainly can.  You see, labor is a good just like any other.  Restrictions on immigration are the direct analogue to tariffs on physical goods.  A protective tariff is designed to make foreign imports more expensive for the direct purpose of making domestic goods more competitive than they otherwise would be.  This, of course, has the effect of raising the price of these goods for the population as a whole.  Small groups of producers benefit at the expense of the entire population who consumes the good in question.  The authors of this piece are demanding that immigration into the United States be restricted on the same grounds, for the same reasons.

The reason that it is “not in the national interest” to protect domestic IT professionals from the “threat” of low-cost foreign competition is that lower labor costs in the IT industry will lead to one of two outcomes (likely a mixture of both).  Either the savings can be passed on to the consumer (thus lowering the cost of all products which depend on skilled IT personnel, which is basically everything), or the firms themselves can keep the savings as retained earnings, (thus increasing the wealth of stockholders, either through dividend payments or re-investment into the company, potentially leading to new products and innovation).  “Protecting” us from low-cost foreign labor serves the exact same purpose and function as “protecting us” from low-cost foreign imports.  It benefits a very small and select group of people at the expense of society as a whole.  I wonder if the authors of this piece would so enthusiastically argue in favor of high protective tariffs on physical goods…

Another quite stupefying aspect of this piece is the repeated insistence that somehow, allowing more immigration violates “market” principles.  This is an absurdity.  The market has absolutely no regard for imaginary lines drawn on a map.  Markets have no use for various political jurisdictions, which offer nothing but restrictions on market activity.  One of the headings of the piece asks: “Isn’t Ours a Market Economy?”  Well, in terms of the labor market, the answer is no.  Immigration restrictions of any kind represent government interference into the labor market.  In a true free market, laborers would be able to enjoy complete freedom of movement, and employers would enjoy the freedom to hire whomever they please, regardless of their nation of origin.  They wouldn’t have to go begging Congress to allow them to hire more foreigners, they’d be able to just do it.

The article closes by stating:  “Before asking government to intervene in labor markets by handing out more guest worker visas and green cards to STEM graduates, we should ask for audits of shortage claims and workforce impacts as a first step toward developing evidence-based policy on this issue, an issue critical to the nation’s future.”

In this case, they have it completely backwards.  Crafting a more liberal immigration policy is not an “intervention” into labor markets.  It is the exact opposite.  The fact that skilled workers from other countries must obtain special permission from the government to come work for American companies is the intervention into the labor markets.  Any action that increases the freedom of movement among laborers in any field is the exact opposite.  It is the removal of a government intervention.

It’s quite a shame to see such a profound misapplication of basic economic principles appear in an article by three men who almost certainly should know better.  I’d like to give them the benefit of the doubt and assume that they do in fact know better, they’re just attempting to confuse and mislead the general public in order to advance their political ends, but I’m not entirely certain.  Either way, this article completely misrepresents the concept of “intervention,” argues in favor of protective tariffs known to reduce economic efficiency, and appeal to nationalistic and xenophobic urges to stop foreigners from “taking our jobs.”  It is disappointing that such a piece can be considered legitimate economic analysis.

 

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The “Crack Baby” Myth

‘Crack baby’ study ends with unexpected but clear result – Philly.com.

This is another story that doesn’t really have much to do with freedom; I just find it interesting when studies come out that reveal widespread beliefs to be entirely in error and without factual support, especially when they get relatively little mainstream media attention.

Perhaps they’re ignoring it because it casts doubt upon the war on drugs?  Perhaps they’re ignoring it because the belief that “mother on drugs = baby with learning disability” is just so ingrained in our culture that they don’t expect anyone to believe the study at all?  Perhaps they’re worried that if this becomes well known, mothers will be more likely to continue to use drugs while pregnant?

Regardless of the reason, it’s important that we have our facts straight.  In this case, the facts seem to be that socioeconomic conditions and location are the factors that influence child development, not whether the mother happened to be smoking crack while pregnant.

I’m particularly interested in knowing how this knowledge might affect individuals who were “crack babies.”  Those who, throughout their entire life, have had lowered expectations from society, and have lived with a certain amount of shame due to a perceived shortcoming that might not actually exist at all.  It’s certainly an interesting situation to consider.

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“But What About People Who Make Bad Decisions?”

Mises-thumbs-upRecently, I was involved in a debate in which the following criticism was made (obviously I’m paraphrasing here):  “Sure, the free market sounds good and all, but how can it possibly correct itself and allocate resources efficiently when some people make poor decisions, or are ignorant of certain facts that might cause them to choose differently?”

The simple answer is that this is entirely irrelevant.  Advocating for free markets absolutely does not require “perfect knowledge” by any stretch of the imagination.  As far as people making “bad decisions” goes, Mises addresses this right away in Part 1 of Human Action.

“Human action is necessarily always rational. The term “rational action” is therefore pleonastic and must be rejected as such. When applied to the ultimate ends of action, the terms rational and irrational are inappropriate and meaningless. The ultimate end of action is always the satisfaction of some desires of the acting man. Since nobody is in a position to substitute his own value judgments for those of the acting individual, it is vain to pass judgment on other people’s aims and volitions. No man is qualified to declare what would make another man happier or less discontented. The critic either tells us what he believes he would aim at if he were in the place of his fellow; or, in dictatorial arrogance blithely disposing of his fellow’s will and aspirations, declares what condition of this other man would better suit himself, the critic.”

This is just the opening paragraph of the section titled “Rationality and Irrationality; Subjectivism and Objectivity of Praxeological Research.”  I strongly suggest anyone who is interested to go read the entire section (don’t worry, it’s not very long).  Given that this is established so early in the text of Human Action, it becomes an established axiom that Austrian Economics is constructed upon.  The fact that occasionally, individuals guess incorrectly as to how certain expenditures of time, labor, and money will maximize their psychic profit is wholly irrelevant to the basic principles of economics, because economics is concerned with decisions at the moment they are made.

What economics does not offer are value judgments.  Consider two brothers who each inherit $50,000 from their deceased father.  The first brother spends his entire inheritance on a giant party, where the resources are immediately consumed for the purposes of momentary entertainment and satisfaction.  The second brother invests his inheritance into a start-up firm, hoping his investment will grow and that he will have $100,000 within two years.

The economist is in no position to tell us which of the two brothers spent their money more wisely.  Any commentary on which brother made the “best” decision is purely his own opinion based on his own personal values, and not on any sound economic principles.  The job of the economist is to merely explain what will likely happen as the result of either particular decision.  The economist could sit down with the first brother and explain to him that if he spends all of his money on a party today, he will have no money tomorrow.  He could explain to the second brother that this type of investment is risky, and although he might double his money within two years, he might also lose his entire investment.  But he cannot declare that one use of money is “better” than the other, as this is entirely a value judgment.

The free market in no way depends on perfect knowledge or correct forecasting by all parties in order to be the best possible system for promoting efficiency and maximizing human happiness and quality of life.  The basic principles laid out by Mises in Human Action can walk you through, step-by-step, why this is the case.

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The “Fair Trade” Myth

Here at DWMF, we use 100% fair trade, cruelty free, organically grown, non-GMO words.

“Fair Trade” products have carved out a decent little niche for themselves in the market, and are becoming increasingly popular among guilty white liberals.  Anytime I hear anything described as “fair” my instinct is to immediately become suspicious, as “fair” is a completely and totally subjective term.  Of course, praxeology tells us that every voluntary transaction is fair by definition, otherwise one party or the other would not have agreed to it.  The existence of “fair trade” products then implies that there is something unfair about the other products in the market.  Given that fair trade products universally cost more (costing more seems to be the entire point) than the going market rate for a particular product, the implication is that voluntary market transactions are inherently unfair.  So already, without any serious analysis, you can tell that the entire premise of “fair trade” products is anti-market, and depends on subjective values of what is “fair” rather than market forces.  After reading up a little bit on the practice on Wikipedia, I’ve found three different issues I immediately have with “fair trade” products:  they’re inefficient at achieving their stated goals, they benefit the somewhat poor while not benefiting the desperately poor, and that the definition of “fair” (and the consequent above-market premium) are completely arbitrary.

When you purchase a fair trade product, you are essentially engaging in an act of charity.  You are knowingly paying an above-market price for a particular good, gaining a psychic benefit from the fact that the premium you are paying is going to some farmer in South America.  Keep in mind that these are essentially two separate transactions.  If you purchase $5 worth of “fair trade” coffee and similar coffee is available for $4, you aren’t really buying $5 worth of coffee, you are buying $4 worth of coffee and donating $1 to the farmer.  Of course, there’s virtually no way to track exactly which farmers it goes to, or have any real knowledge on their relative wealth, status, etc.  As far as charitable giving goes, this seems to be a highly inefficient way of accomplishing it.  I would recommend that anyone who wants to help the world’s poor buy regular coffee, and donate the difference to a well-run charity.  Charities are much more accountable for their money, and it is far easier to track than trying to follow the “fair trade” chain.

One other thing to keep in mind, as this video from LearnLiberty points out, the above-market premium that you pay for “fair trade” goods is usually paid to the farmer directly.  Whether any of that gets passed down to the farm hands that do the actual physical labor is unknown (Personally, I assume that not much does.).  Just like in America, there are plenty of poor farmers in the developing world who could use some assistance.  Of course, also like in America, there are also plenty of much poorer people who don’t own any land at all, and make their living traveling from farm to farm doing backbreaking physical labor all year round.  Presumably, these people deserve your charity more than the farmers themselves do, but there is no way possible to ensure that they benefit from “fair trade” agreements.

Finally, let me once again emphasize that “fair” is a completely subjective term.  Who decides whether an agreement is fair?  We can assume that every voluntary transaction is fair, otherwise one party would not agree to it.  The idea that some bleeding-heart liberal CEO of an American company that imports food can determine (and dictate) what the “fair” price of a commodity is better than the market itself can is absurd.  When you pay the market price for a particular good, the price has been determined collectively by all the buyers and sellers in the market bidding against each other.  That is the fairest possible way to determine a “fair” price.  While individuals are certainly free to pay more than the market price if they desire, the illusion that paying some completely arbitrary amount over the market price is required for “fairness” is ridiculous.

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Eric Holder Seeks To Make Juries Irrelevant

 

A tyrant who is actively working to subvert the rule of law.

Eric Holder promises “compassion” and “truth” in Zimmerman case – CBS News.

It should be obvious to everyone at this point that the race-baiter who runs the Department of Justice (Orwell would be proud of that name) has absolutely no intention of respecting the practice of trial by jury, and fully intends to do absolutely everything within his power to ensure George Zimmerman is sent to prison for something, anything, in order to appease the bloodthirsty masses of people who haven’t bothered to examine the case and notice that there isn’t a shred of evidence indicating Zimmerman committed any crime whatsoever.

You don’t have to be some sort of genius to realize that Zimmerman, at this point, is a victim of political pressure.  That is to say, any time he has spent in jail thus far, and any time he may spend in jail in the future, is for political reasons unrelated to any supposed crime he has committed.  This would make him, by definition, a political prisoner.  I would seriously suggest that he consider following in the footsteps of Julian Assange and Edward Snowden, and apply for political asylum in a foreign country.  Even putting aside the issue of death threats received by private citizens, George Zimmerman is not safe in the United States, because his own government is clearly out to get him and will not rest until they find some way in which to punish him for lawfully protecting himself during a violent attack.

This is no longer a nation of laws.  It is a nation of men in power who make the laws up as they go along, and who are not accountable to the laws they enforce on others.  Zimmerman should flee America, because his freedom is in serious jeopardy here, threatened by power-hungry dictators who couldn’t give a flying crap what a jury has to say about the facts of a case.

This issue is certainly worth keeping an eye on, because it has the potential to become much bigger than any concerns about Zimmerman himself.  This case is quite clearly an example of the government becoming enraged and throwing a hissy fit because the jury didn’t arrive at the “correct” verdict.  It’s quite obvious that Holder was openly rooting for Zimmerman to be convicted.  He didn’t get his way, so now he will attempt to subvert the jury system entirely, and keep throwing charges at Zimmerman until he finds one that will stick.  The right to trial by jury and the right to avoiding double jeopardy are fundamental to American freedom, clearly established in the constitution, and have been consistently protected throughout American history.

Allowing the state to continually harass Zimmerman until they can find a charge that sticks would set quite a dangerous precedent, particularly for those of us who advocate jury nullification as a check on government power.  The entire premise behind jury nullification is that the jury has the final say in the matter.  That once a jury finds you not guilty, the game is over.  The government has lost, and they are now forced to move on.  This tactic will become null and void if the state is allowed to continually re-try someone with slightly different crimes, all related to the same general incident, until they get the verdict they prefer.  It would be a gross perversion of justice, as well as an incredibly large threat to our freedom and liberty in general.

Once again, this is something we should all keep an eye on, because the issue is much larger than George Zimmerman.  Even if you happen to disagree with the verdict in this case, all Americans should come together in support of the right to trial by jury, which means that once the jury decides, the trial is over.  We should all reject Eric Holder’s transparent attack on one of our most fundamental liberties, and demand that the government immediately put an end to its continued harassment of George Zimmerman, who was found to be an innocent man by a jury of his peers.

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Modern Day Social Crusaders Are Unpopular Extremists

 

An extremist

Hey, Everyone, Look at Me: I’m Against Slavery! | Tom Woods.

This entire piece by Tom Woods is well worth reading, but I want to concentrate on the excellent point he makes in the first couple paragraphs.  Tom writes:

“It took a lot of courage to oppose slavery in, say, 1855. It takes zero courage to oppose it today. This is one reason I am convinced that those who are most ostentatious in their aversion to slavery in 2013 are the least likely to have opposed it at the time. Their excessive eagerness to disassociate themselves from perceived “extremism” would not have served them well in the 1850s, when abolitionism, which had zero electoral success, was the most notorious extremism of the day.

Who in 2013 ever found himself dismissed from his post, or held up to scorn, for opposing slavery?”

This really cannot be stressed enough, but I’d like to extend it to issues far beyond the most commonly cited examples, such as opposing slavery, or being against Hitler.

Today, it seems as if the vast majority of wannabe political activists desire to have it both ways.  On the one hand, they want to portray themselves as the heroic reincarnation of abolitionists and civil rights demonstrators, working tirelessly at great personal risk in order to advance an unpopular, but morally correct agenda.  On the other hand, they want to convince you that their views are perfectly mainstream, and only opposed by crazy and/or dangerous “extremists.”

As Woods correctly points out, by any reasonable definition, the abolitionists were extremists.  Civil rights demonstrators in the south in the 1950s were extremists.  Their views were very unpopular and they were regularly met with violence, both from private citizens, and from government agents.  In the 1830s, many southern states passed laws making it illegal to even discuss emancipation, under the premise that doing so might incite slave rebellions.  Presumably, any publicly known abolitionist in the south was in direct violation and contempt of state law.

Let’s talk for a moment about one of the most famous early American abolitionists, William Lloyd Garrison.  Arguably the most famous abolitionist of his day, Garrison founded an anti-slavery newspaper, The Liberator, in the 1830s.  He argued for the immediate and unconditional emancipation of all slaves, a wildly “radical” and extremely unpopular position at the time.  He also favored granting blacks enjoy full societal equality (including the legalization of interracial marriage), a position that wouldn’t become “mainstream” until well after his death. 

The “mainstream” of American society wasn’t just opposed to Garrison’s point of view; they were violently opposed to it.  On one occasion, he was tied up and dragged through the public streets by a mob fully intent on killing him, eventually being rescued by the police and lodged in jail overnight (because that was the only place where his safety could be guaranteed).  Where did this astounding and embarrassing event take place?  Not Alabama, not Georgia, not South Carolina.  It happened in Boston.  Wikipedia provides more information:

Garrison’s outspoken anti-slavery views repeatedly put him in danger. Besides his imprisonment in Baltimore, the government of the State of Georgia offered a reward of $5,000 for his arrest, and he was the object of vituperation and frequent death threats. On the eve of the Civil War, a sermon preached in a Universalist chapel in Brooklyn, New York, denounced “the blood thirsty sentiments of Garrison and his school; and did not wonder that the feeling of the South was exasperated, taking as they did, the insane and bloody ravings of the Garrisonian traitors for the fairly expressed opinions of the North.”

Garrison knew his views were unpopular, and that expressing them put him at great personal risk.  He intentionally embraced the mantle of “extremist” in an attempt to wake the American public up to exactly what their society supported.  He countered arguments that slavery was protected by the constitution by burning a copy of the constitution in public.  He even went as far as to advocate secession… of New England, under the premise that it was morally unjust to be in a political union with slaveowners.  Think that’s extreme?  Oh, he was just getting started.  Perhaps you’ve heard that many southerners defended slavery on religious grounds, stating that it was provided for in the Bible?  Guess how Garrison reacted to that.  He proclaimed that if the Bible was pro-slavery, then it was to be rejected entirely, that it had no moral authority and should therefore be ignored.

Enough of the history lesson, let’s come back to today.  Given what we just discussed about Garrison, my question is:  Who do you think are the “extremists” of today?  Who, in our current day, might possibly be compared to a man with such radical and unpopular positions?  Those who support gay marriage (now favored by 50% of the country, and overwhelmingly favored in certain areas)?  Those who support abortion on demand (44% oppose a ban on abortion after 20 weeks)?  Please.  These very same people, who attempt to draw parallels between themselves and the civil rights advocates of the past, also insist that opponents of gay marriage and abortion are dangerous extremists.  But, at the risk of repeating myself, let me say it again:  the civil rights advocates of the past were “dangerous extremists.”  I must have missed the time in San Francisco when the gay pride parade was interrupted by attack dogs and fire hoses, and all of the organizers were rounded up and thrown into prison.

So, who are today’s “extremists?”  What sort of positions do you have to hold today in order to be socially castigated, targeted by the government, and regularly exposed to threats of physical violence?

How about Adam Kokesh?  Police SWAT teams broke down Adam’s door, threw a flash-bang grenade in the house, and entered with automatic weapons drawn and pointed at everyone present.  Why?  Because he posted a video of himself loading a shotgun in the nation’s capital.  He did not assault anybody, threaten any individual, or cause any conceivable harm to any person whatsoever.  Instead, he knowingly, publicly, violated a law he perceived to be unjust.  And now he is in jail.  Does that sound familiar to anyone?

Sorry, but if you hold political positions that are supported by more than 10% of the American population, you have absolutely no business comparing yourself to abolitionists, or civil rights leaders.  You are not some crusader for justice, bravely and selflessly raging against the political machine.  You are a part of the political machine.  It is those individuals whose opinions are dismissed entirely, those whose views are not permitted on Fox News or MSNBC, those who regularly stand up and argue for individual freedom in all cases, those who reject the authority of government entirely, who are the real crusaders.  They put themselves at great personal risk to advocate something they truly believe in, with little hope of any measurable success occurring in their lifetime.  The very least we could do is recognize it, and give them a little “street cred” in exchange for the assaults, arrests, and constant attacks in the media they receive, while fighting for the right of every individual to be free.

 

(Note:  If you went to public school, this information about abolitionism and Garrison may surprise you, as you’ve likely never heard it before.  Although I cite Wikipedia, I first heard of this man and his story at Tom Woods’ Liberty Classroom, of which I am a member, and which I highly recommend to anybody searching for the untold stories of American history.)

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The Keynesian Solution To Malware

US agency baffled by modern technology, destroys mice to get rid of viruses | Ars Technica.

Another story involving a sequence of events so entirely idiotic, it could only possibly occur in a government agency.  In the private sector, something like this would never happen.  At some point, a non-idiot would question the decision, and order more research before something as colossally stupid as destroying mice would be approved.  While the good little statists at Ars Technica seem to be shocked by this outrageous example of waste and stupidity, I don’t find it shocking at all.  This is about the sort of thing we should expect from the government, for a wide variety of reasons…

Government employees are generally incompetent.  They are typically paid a salary well above market wage rates that has absolutely nothing to do with their performance, and is based entirely on seniority.  Obtaining government employment often requires you to “know someone” already on the inside.  Cronyism is rampant.  Oppressive bureaucratic rules stifle creativity, and make it a generally unappealing place to work, meaning that bright and creative minds are almost impossible to recruit.  It is virtually impossible to get fired, regardless of how terrible you are at your job (I just about guarantee you the CIO in this story who single-handedly cost the taxpayers $2.7 million will keep his job, in the private sector, do you think this would be the case?)

Government employees have no incentive to manage resources efficiently.  Nobody is ever really held accountable for resources under their control.  Funding has nothing to do with results, and everything to do with how much you spend.  Employees are never really encouraged to save money or minimize costs.  In fact, if you don’t spend all the money you are allocated every year, you receive less money the following year.  This results in a bizarre situation where at the end of the fiscal year, agencies often order a bunch of frivolous, unnecessary items, solely to ensure they spent all the available money they received, thereby justifying demanding even more money in next year’s budget.

Given that this took place at the “Economic Development Administration,” we can probably safely assume that most of the people working for this agency are committed keynesians.  They probably can’t even understand what they did wrong.  After all, by destroying a bunch of computer equipment, they provided much needed financial stimulus and created new private-sector jobs in the information technology industry!  This is surely a net boon to the country, and a fulfillment of the agency’s goals and objectives.  I’ve heard that Paul Krugman personally called the CIO to congratulate him on this creative and unique solution to our economic woes.

One last thing I’d like to point out here, we aren’t talking about a nuclear warhead storage facility… this is the economic development administration.  Even IF the malware was the result of some coordinated attack by those evil Chinese computer hackers, exactly what classified information can an economic development agency possibly have?  What critical secrets could the Chinese learn by accessing these systems?  How to ruin an economy and prolong a depression?  We can only hope that the secrets of keynesian economics would fall into the hands of our enemies.  Maybe they might implement them, thereby destroying their economies in a similar fashion to the way we destroyed ours.

 

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CDC Study Confirms: John Lott Was Right

 

CDC study agrees with the main premise of this book.

Handguns, suicides, mass shootings deaths, and self-defense: Findings from a research report on gun violence. – Slate Magazine.

Rare indeed is the article that will somehow manage to surprise both the pro and anti-gun crowds at the same time, but this one at Slate probably does just that.  Of course, it surprises the different groups for slightly different reasons.  You see, Obama directed his minions at the CDC to conduct a study to research gun violence, supposedly to lead to recommendations regarding legislation.  Well the results are now out, and they are truly shocking.  Shocking to the pro-gun crowd because a government entity that was obviously supposed to declare guns evil and recommend a ban actually re-affirmed what most of the pro-gun crowd has been saying all along.  Shocking to the gun-grabbers on the left (such as everyone employed by Slate) because… well, it re-affirmed most of what the pro-gun crowd has been saying all along.

That said, this particular article still occasionally attempts to frame the issue in an inaccurate and incomplete way.  Here are some brief highlights, followed by my response:

“the U.S. rate of firearm-related homicide is higher than that of any other industrialized country: 19.5 times higher than the rates in other high-income countries.”

Irrelevant.  What matters is the overall homicide rate.  There are plenty of other industrialized countries with higher homicide rates than the U.S., their murderers just use weapons other than guns.  Also, the “19.5 times higher than the rates in other high-income countries” is incomplete and misleading.  Which other countries?  Surely they don’t mean 19.5 times higher than every other industrialized country.  I’d also be interested to know how they determining which countries count as “industrialized.”  None of those questions are clarified in the report itself, this statistic comes from another report they cite.  For the record, according to Wikipedia, the overall homicide rate in Russia is over twice that of the U.S., despite handguns being illegal.  Brazil’s homicide rate is four times that of the U.S. (in Brazil, all guns must be licensed).

“Overall crime rates have declined in the past decade, and violent crimes, including homicides specifically, have declined in the past 5 years,”

Meanwhile, “firearm-related death rates for youth ages 15 to 19 declined from 1994 to 2009.” Accidents are down, too: “Unintentional firearm-related deaths have steadily declined during the past century. The number of unintentional deaths due to firearm-related incidents accounted for less than 1 percent of all unintentional fatalities in 2010.”

All things the pro-gun lobby has been emphasizing, which the media have largely ignored.  While the gun-grabbers try their best to paint the picture that crime, gun crime, children dying from guns, and accidental shootings are becoming increasingly more prevalent every year, the actual reality is that they are all in decline.  Right now is the safest time to be alive in America (at least in terms of your likelihood to get shot) in at least 50 years, despite the fact that over the last few decades, access to guns and the ability to carry guns has been greatly enhanced in most jurisdictions.  The left offers no reasonable explanation for this trend.

“handguns comprised 72.5 percent of the firearms used in murder and non-negligent manslaughter incidents.”

 “The number of public mass shootings of the type that occurred at Sandy Hook Elementary School accounted for a very small fraction of all firearm-related deaths,”

More evidence that the government/media obsession with “assault rifles” is a complete and total smokescreen.  Banning so-called assault rifles would have absolutely zero effect on over 70% of gun deaths.

From 2000 to 2010, “firearm-related suicides significantly outnumbered homicides for all age groups, annually accounting for 61 percent of the more than 335,600 people who died from firearm-related violence in the United States,” says the report.

Lumping suicides in with victims of “firearm-related violence” is a pretty cheap and sleazy way to over-inflate the numbers.  Nobody claims that someone who slashes their wrist is a victim of knife-related violence.

“Almost all national survey estimates indicate that defensive gun uses by victims are at least as common as offensive uses by criminals, with estimates of annual uses ranging from about 500,000 to more than 3 million per year … in the context of about 300,000 violent crimes involving firearms in 2008,” says the report. 

This one right here really should end the debate once and for all.  This is basically the entire premise of the pro-gun argument, as made by John Lott in his amazing book “More Guns Less Crime.”  Guns save more lives than they end.  Period.  Even the CDC now admits it.  Statistically, Americans are more likely to use a gun to protect themselves than they are to be killed by one.

“Studies that directly assessed the effect of actual defensive uses of guns (i.e., incidents in which a gun was ‘used’ by the crime victim in the sense of attacking or threatening an offender) have found consistently lower injury rates among gun-using crime victims compared with victims who used other self-protective strategies.”

Absolutely destroys the leftist myth that having the gun in the house or introducing one into a violent situation “escalates” the situation and makes it more likely that you will be seriously injured or killed.  Statistically, attempting to use a gun in self-defense is a winning proposition.  I’m not sure exactly what counts as “other self-protective strategies.”  This is also not explained in the study, as it comes from a different report the study cites.  Assuming it covers absolutely every other strategy (attempting to defend yourself with a different kind of weapon, attempting to flee, attempting to obtain help from a third party such as the police, etc.) then we would have a situation where the absolute safest thing you could do if you are the victim of a crime is pull out a gun.

The prevalence of firearm violence near “drug markets … could be a consequence of drug dealers carrying guns for self-defense against thieves or other adversaries who are likely to be armed,” says the report.

They don’t provide a lot of statistics on this particular point, but generally speaking, gun violence is much higher when drugs or gangs are involved.  So, if you happen to own a gun and are not involved in any drug or gang activity, and avoid locations where drug or gang activity are present, you are even less likely to be a victim of gun violence than the “average” statistics might indicate.  Also of note:  the overwhelming majority of drug-related violence is caused by the prohibition of drugs and could be instantly reduced if the government would admit that we own our own bodies.

“In locations where individuals under restraining orders to stay away from current or ex-partners are prohibited from access to firearms, female partner homicide is reduced by 7 percent.”

This paragraph falls under the heading “Denying guns to people under restraining orders saves lives.”  The obvious inverse, given the defensive gun use statistics explained above, would be that denying guns to those who file restraining orders costs lives, but this is not mentioned.  Often, when restraining orders are involved in domestic situations, time is a critical factor.  A potential victim might need a gun to protect themselves right away, and might not have the time to get a license, get a background check, sit around for the waiting period, get required training, purchase trigger locks, etc.

 

Slate’s author concludes the article by stating:

These conclusions don’t line up perfectly with either side’s agenda

He may be right if you demand “perfection,” but I would say that these conclusions are about 90% in support of what responsible gun owners have been saying all along.  This article basically reads like a summary of John Lott’s work, and this study (let me remind you again, it was conducted by Obama’s cronies at the CDC) should be considered a complete confirmation and validation of Lott, the NRA, and everyone who has ever argued that guns save lives and reduce crime.

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