Taxes and the Total State

Biden has proposed a rather draconian tax initiative: you can read some of the details and an analysis here.  It will be justified, of course, by claims about “asking the rich to pay their fair share”, and “equity”…and I’ve already seen arguments that no one should be concerned about this unless they are very high income or soon expect to be, and that there aren’t many people in that category.

Some responses are obvious: Taxes originally targeted at high income levels have a way of migrating downward through the income levels–the income tax itself is an example.  The capital gains rates are in reality much higher than they look, because of the effect of inflation on asset prices.  Corporate income tax increases can affect everybody, regardless of income levels, in their roles as workers, consumers, and/or investors. And there is the matter of fairness–true fairness, not faux fairness:  it is not truly fair, democratic, or even civilized to assume that because there is only a small number of people in a given group, the rest of the society is entitled to do anything to them that they feel like doing.

But there is also, I think, an even more important point to be made.  A tax structure like this Biden plan–with its likely extensions and increases over time–acts to prevent the establishment and sustainment of individuals and families wealthy enough to act as a countervailing force to the government–media–academic complex.  I think the kind of people who inhabit the Biden administration, and who dominate today’s Democratic Party, do not like to see power & influence centers outside of this complex.  They really, really don’t like it, for example, that someone like Elon Musk can bypass their censorship efforts by buying and running a social media company.

Woodrow Wilson disliked the whole idea of separation of powers within government, which seemed to him to violate some kind of organic principle.  Totalitarians of all kinds have striven to eliminate alternative centers of loyalty and influence within their overall societies.  As Benito Mussolini put it:  “Everything in the State, nothing outside the State, nothing against the State.”

Whatever your current and expected income and wealth levels–if you value the continuation of America as a free society, then you have a dog in this fight.

Where Went the Wind?

Honestly, I’ve always been considerably conflicted about Gone With the Wind – both the book and the movie. Yes, best-seller, and loved extravagantly by more readers and movie-goers than partisans of the antebellum South, a gripping tale of a time, a place and a people, in a war that stripped away every shred of that noble and deluded gentility and Southern cavalier-worshipping delusion… shades of Vanity Fair, with a spineless, guileless and gentle supposed-heroine whom we are supposed to sympathize with in the main, contrasted with a conniving, spiteful and yet … entrancing stubborn, gutsy and conniving anti-heroine. I was reminded of all this once again, on reading this recent essay – by another woman and writer, similarly conflicted.

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Ukraine, and the World Outside US Borders

I don’t think I’ve ever seen a worse and more simplistic ‘debate’ than the arguments taking place in the US over aid to Ukraine. There are big quality problems with the level of argumentation…on both sides.

On the anti-funding-Ukraine side: Many commentators say we shouldn’t be funding Ukraine’s efforts to protect their own border because we are failing in protecting our own border.

But can anyone really think that the problems with the US border are primarily a matter of resources?  It should be obvious that these problems are a matter of will: the border is largely open because the Biden administration has wanted it open.  If the Biden administration had been provided with $X billion more available for border enforcement, where X is any number, the situation would have been exactly what it has been.

On the pro-funding-Ukraine side: Many commentators seem unable to imaging why anyone would object to US participation in the war (even if only in the form of aid and weapons) other than being a Putin advocate and/or being paid off by Putin–there are a lot of ad hominem arguments accusing people of being in the pay of Putin, or simply of caring about Russia more than they care about their own country.  But there are wars and injustices all over the world, and the US must carefully choose which ones it gets involved in.  Resources are finite, and almost every military intervention carries at least some risk of undesired escalation. US experience with wars in recent decades has not been terribly encouraging.

On the anti-funding-Ukraine side: Sometimes, the argument goes beyond the US border and the assertion is made that the US should not be doing things like the Ukraine involvement until our own country is fixed.  But will there ever be, has there ever been, a time when everything about the US is ‘fixed’?  I note that the US maintained a higher level of military funding (as a % of GDP) during the Cold War than we do today, and yet public infrastructure–from roads to parks to subway systems to school–generally worked better than the corresponding entities do today.

Also on the anti side, it is observed that there is a lot of corruption in Ukraine, and that it is also far from a perfect democracy. These points seem to be true.  But sometimes one needs to support certain countries despite serious differences in values…as we did in supporting the Soviet Union in WWII and in supporting certain unpleasant regimes during the Cold War. The specific situation needs to be considered and analyzed. (And, Indeed, some of the things now going on in Canada and in Western Europe–not to mention in America itself–seem quite contrary to American ideals.)

Those opposed to funding Ukraine often assert that the aid is being provided in order to support American arms manufacturers–Raytheon, especially, tends to be mentioned for some reason–really, this is reminiscent of the 1920s and 1930s denunciations of arms manufacturers as ‘merchants of death.’  But if the political goal was to keep arms manufacturers happy, there are plenty of other projects available, such as the badly-needed building of more ships for the Navy.  And when people denounce arms manufacturers, I always wonder: Are they absolute pacifists? Do they favor having all arms manufacturing done by government agencies?  What would be their plan for ensuring that our forces have what they need to win conflicts and minimize their own casualties?

On the pro-funding-Ukraine side:  It is argued that if Putin isn’t stopped in Ukraine, he will likely invade other European countries. I think this is a very legitimate fear. But it needs to be traded off against the threats from the larger and much more economically dynamic nation of China.  I note that many of the people who harp on the threat from Russia never (or very rarely) have anything to say about China. Does investing resources in Ukraine reduce the threat of, say, a Chinese invasion or blockade of Taiwan? If it points in the direction of reducing the threat for US credibility reasons, how does this trade off against the consumption of US munitions?

Someone said at Twitter that he doesn’t see how anyone who knows the history of the 1930s and 1940s can oppose supporting Ukraine.  But it’s not always 1939, sometimes it’s 1914.  Also, history didn’t stop at the end of the 1940s, and many people have observed the poor outcomes of US military interventions in our century, not to mention the Vietnam War.

The pro-Ukraine people, especially politicians, have been arguing that the money spent mostly goes to US arms manufacturers…this is kind of the flip side of the “it’s all to benefit Raytheon” argument.  If the only objective is to “create jobs” and “put money in circulation”, then that could be achieved equally well by paying people to dig ditches and then fill them up again. There has to be some other benefit.

On the anti-funding Ukraine side, there actually are some people who glorify Russia…not the majority of the anti-Ukraine people, certainly not enough to support a generalized ad hominem argument against the antis–but there are indeed some in that category. The argument that Russia under its current regime is the defender of civilization is not to my mind a very convincing one, unless one’s definition of ‘civilization’ is a pretty strange one. The main effect of these people has been to further poison the entire debate.

Above and beyond the particular issue of Ukraine: there is a world beyond US borders. We don’t get to call ‘time’ just because we have serious internal issues.  When France and Britain decided not to intervene at the time of the German Rhineland incursion in 1936, one of the arguments made by some French politicians was that it would be unwise to interfere with the economic recovery. How did that work out for them?

My own view: We do need to be supporting Ukraine, and we should be doing so a lot more effectively than the Biden administration has chosen to do.  Biden’s initial reaction to the invasion–suggesting that it might be OK if Putin didn’t take too big a bite, and then offering Zelinsky a ticket out–didn’t exactly sound a Churchillian note of defiance. Arms supply has been too little, too late, and not nearly enough has been done to increase US defense-industrial output potential, especially of consumables such as artillery shells and missiles, and to provide better supply-chain resilience against components and materials cutoffs by other countries.  My sense is that the Biden strategy is not to achieve a Ukraine victory, or to force a negotiated settlement on favorable terms, but to drag the war out with the goal of bleeding Russia while minimizing domestic political risk…a cynical and cruel strategy, in my opinion.

The main purpose of this post, though, is not to argue for or against any particular policy, but rather to express concern and disappointment…even dismay…over the extremely poor quality of the arguments being made on both sides of the issue and the generally toxic tone of the debate.

To the Great Surprise of Many…

… It turned out that there was one genuine, for real, professional old-line journalist still working at National Public Radio. Was being the operative word, as business reporter Uri Berliner quit, after spectacularly blowing up any lingering pretense of the publicly financed institution being an impartial and unbiased news-gathering organization, reporting on news without fear, favor or partisanship. Frankly, anyone claiming to be the teeniest bit rightish of center and believes that load of codswallop is likely too innocent to be let out in public without a dedicated keeper. They probably believe every word in the NY Times, as well – although as Agent K of Men in Black observed – that publication stumbles into the truth on rare occasions.

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