Income inequality: Social justice or crony capitalism?

The political movement Occupy Wall Street has shaped the tax and spending proposals of the Obama administration’s budget and political debate on the premise that our capitalist economic system is rigged to favor the top-earning “one percenters.” But income inequality can result either from capitalism or politics, each for better or worse.

Historically, political elites focused on enriching themselves at the expense of the general public: In 1773 patriots threw the tea into Boston Harbor of the East India Tea Company, granted a “royal charter” in 1600. The U.S. system was founded not just on the principles of democracy but on limited government complementing private market capitalism that encouraged individuals to “pursue happiness” — accumulate wealth — on merit rather than political connections. Support for the less fortunate was provided by family members, religious and other charitable organizations.

Believing (wrongly) that class envy against the new economic elites — innovative entrepreneurs — would cause revolution, Karl Marx offered the socialist alternative “from each according to his ability, to each according to his need” with politics supplanting merit. Despite totalitarian methods universally employed by governments seriously pursuing the socialist model leading to the murder of tens of millions, one historian recently concluded that communism reduced workers “to shiftless, work-shy alcoholics.”

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Afghanistan and Pakistan.

I have been unhappy about our role in Afghanistan for several years. This goes back to at least 2009. Then there was this.

Watching the last two weeks or so in the White House, gives me the sense that the decision is going to be the wrong one. There are three possible choices that Obama has; one is to take his hand-picked general’s advice and send 40,000 more troops. It will stress our military and the logistical challenges are serious. Afghanistan is land-locked and the neighbors are not friendly. Russia will try to create problems, as they already have in Kyrgyzstan. They do not want us to succeed yet they may fear total failure. In the meantime, they are making serious trouble.

And then, this development.

it’s an open secret the Taliban are headquartered across the border in the city of Quetta, Pakistan, where they operate openly under the aegis of Pakistani intelligence — and the financial sponsorship of the Saudis.

Sending more troops to Afghanistan is a necessary, albeit unfortunate, rear-guard action against marauding Taliban fighters armed, trained, supplied and deployed from Quetta — and funded from Riyadh.

NATO and U.S. military command know this. They’ve complained about it over and over in military action reports. So have Treasury officials regarding Saudi funding of the Taliban.

“Saudi Arabia today remains the location where more money is going to terrorism — to Sunni terror groups and the Taliban — than any other place in the world,” testified Stuart Levey, Treasury undersecretary.

This is Viet Nam all over again. The enemy has a sanctuary and our allies are siding secretly with our enemies.

Well, today, there is another bit of information

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Give Me Land, Lots of Land

This would appear to be the new theme song for the Fed-Gov’s Bureau of Land Management that bane of ranchers like Cliven Bundy as well as a whole lot of other ranchers, farmers, loggers, small landowners, and owners of tiny bits of property on the edge of or in areas of spectacular natural beauty, west of the Mississippi and between the Mexican and Canadian borders.

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Paying Higher Taxes Can be Very Profitable (rerun)

(Originally posted in January 2010now an April perennial)

Chevy Chase, MD, is an affluent suburb of Washington DC. Median household income is over $200K, and a significant percentage of households have incomes that are much, much higher. Stores located in Chevy Chase include Tiffany & Co, Ralph Lauren, Christian Dior, Versace, Jimmy Choo, Nieman Marcus, Saks Fifth Avenue, and Saks-Jandel.

PowerLine  observed that during the 2008 election season, yards in Chevy Chase were thick with Obama signsand wonders how these people are  now  feeling about the prospect of sharp tax increases for people in their income brackets.

The PowerLine guys are very astute, but I think they’re missing a key point on this one. There are substantial groups of people who stand to benefit financially from the policies of the Obama/Pelosi/Reid triumvirate, and these benefits can greatly  outweigh  the costs of any additional taxes that these policies require them to pay. Many of the residents of Chevy Chasea very high percentage of whom get their income directly or indirectly from government activitiesfall into this category.

Consider, for starters, direct employment by the government. Most Americans still probably think of government work as low-paid, but this is much less true than it used to be. According to  this, 19% of civil servants now make $100K or more. A significant number of federal employees are now making more than $170,000. And, of course, the more the role of government is expanded, the more such jobs will be created, and the better will be the prospects for further pay increases.

If one member of a couple is a federal employee making $100K and the other is making $150K, that would be sufficient to allow them to live in Chevy Chase and occasionally partake of the shopping and restaurants. But to make the serious money required to  really  enjoy the Chevy Chase lifestyle, it’s best to look beyond direct government employment and pursue careers which indirectly but closely benefit from government activity…which are part of the “extended government,” to coin a phrase.

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Attack of the Robot Bureaucrats

Via Bookworm, here is a truly appalling story from Minnesota. When the fire alarm went off at Como Park High School, a 14-year-old girl was rousted out of the swimming pool, and–dripping wet and wearing only a swimsuit–directed to go stand outside were the temperature was sub-zero and the wind chill made it much worse. Then, she was not allowed to take refuge in one of the many cars in the parking lot because of a school policy forbidding students from sitting in a faculty member’s car. As Bookworm notes:

Even the lowest intelligence can figure out that the rule’s purpose is to prevent  teachers  from engaging sexually with children.   The likelihood of a covert sexual contact happening between Kayona and a  teacherunder the actual circumstances is ludicrous.   The faculty cars were in full view of the entire school.   There was no chance of illicit sexual congress.

But the whole nature of bureaucratic rules, of course, is to forbid human judgment based on actual context.

Fortunately for Kayona, her fellow students hadn’t had human decency ground out of them by rules: “…fellow students, however, demonstrated a grasp of civilized behavior. Students huddled around her and some frigid classmates [sic], giving her a sweatshirt to put around her feet. A  teacher  coughed up a jacket.”  As the children were keeping Kayona alive, the  teachers  were  workingtheir way through the bureaucracy.   After a freezing ten minutes, an administrator finally gave permission for the soaking wet, freezing Kayla to set in a car in full view of everybody.

As Bookworm notes, this sort of thing is becoming increasingly common. In England in 2009, for example,  a man with a broken back lay in 6 inches of water, but paramedics refused to rescue him because they weren’t trained for water rescues. Dozens of similar examples could easily be dredged up.

The behavior of these bureaucrats is very similar to the behavior of a computer program confronted by a situation for which its designers did not explicitly provide. Sometimes the results will be useless, sometimes they will be humorous, often they will be harmful or outright disastrous.

Last year in Sweden, there was rampant rioting that included the torching of many cars.  The government of Sweden didn’t do a very good job of protecting its citizens and their property from this outbreak of barbarism.  Government agents did, however, fulfill their duty of issuing parking tickets…to burned-out cars.  Link with picture.  In my post The Reductio as Absurdum of Bureaucratic Liberalism, I said…

I’m reminded of an old SF story, “Dumb Waiter,” written by Walter Miller, who is best known for his novel  A Canticle for Leibowitz. This story, which dates from 1952, lacks the philosophical depth of  Canticle, but seems quite relevant to the events in Sweden. (update: and Minnesota, and …)

In the story, cities have become fully automated—municipal services are provided by robots linked to a central computer system.  But when war eruptedfeaturing radiological attackssome of the population was killed, and the others evacuated the cities. In the city that is the focus of the story, there are no people left, but “Central” and its subunits are working fine, doing what they were programmed to do many years earlier.

The radiation levels have died down now, and the city is now habitable, from a radiological standpointbut the behavior of the automated systems, although designed with benign intent, now makes entry to the city very dangerous.

Mitch, the protagonist, resolves to go into the city, somehow get control of Central, and reprogram it so that it will be an asset rather than a hazard for future human occupants of the city.  The first thing he sees is a robot cop, giving a ticket to a robot car with no human occupants. Shortly thereafter, he himself is stopped for jaywalking by another robot cop, and given a summons to appear in traffic court. He also observes a municipal robot mailing out batches of delinquent utility-bill notices to customers who no longer exist.

Eventually Mitch establishes contact with Central and warns it that a group of men are planning to blow it up in order to have unhindered access to the city for looting…that the war is over, and Central needs to revise its behavior to compensate for the changed situation. The response is that he himself is taken away for interrogation. He hears a woman crying in an adjacent cell—she has been arrested by a robot cop for some reason or other, and her baby was separated from her and is being held in the city nursery.

“They won’t take care of him! They’ll let him die!”

“Don’t scream like that. He’ll be all right.”

“Robots don’t give milk!”

“No, but there are such things as bottles, you know,” he chuckled.

“Are there? ” Her eyes were wide with horror. “And what will they put in the bottles?”

“Why-” He paused. Central certainly wasn’t running any dairy farms.

“Wait’ll they bring you a meal,” she said. “You’ll see.” “Meal?”

“Empty tray,” she hissed. “Empty tray, empty paper cup, paper fork, clean paper napkin. No
food.”

Mitch swallowed hard. Central’s logic was sometimes hard to see. The servo-attendant
probably went through the motions of ladling stew from an empty pot and drawing coffee from
empty urn. Of course, there weren’t any truck farmers to keep the city supplied with produce.

Mitch observes that inmates in the surrounding cells have all starved to death while Central and its subunits went through the motions of feeding them.

Mitch and Marta manage to escape, as Central calls in vain for human guardswho don’t exist anymoreto assist its unarmed robots. Eventually, Mitch is able to reach the house of the former mayor, assert (via code-cracking) the mayor’s authority over Central, and gain control of the system.

The behavior of Miller’s automated city-system…feeding people with trays that contain no food, arresting people for minor offenses and putting them into an environment in which a child could see that they would starve, sending out utility bills to nonexistent customers, calling for assistance from personnel who haven’t been around for years or decades…closely models the state to which bureaucraciesie, robots made of  human  componentstend naturally to evolve.

And, of course, the human components of those bureaucracies–the individual bureaucrats–can usually feel confident that as long as they follow the rules, they will be personally protected from adverse consequences–no matter how much harm is perpetrated by the bureaucracy’s operations. As the mother of the girl in the Como Park incident commented, if she as an individual parent had made her daughter stand outside in freezing weather, she almost certainly would have been in big legal trouble. But it is quite likely that any consequences for the school’s teachers and administrators, operating as cogs in a machine, will be much less serious than they would have been for an individual parent who did the same thing.

Many Germans in the Nazi era had learned the principal of bureaucratic invulnerability, indeed had learned it so well that they believed it was a postulate never to be challenged–and were no doubt quite surprised when their defense of “only following orders” did not work and they were given a date to meet the hangman.

I expect that most Americans at the time of the Nuremberg Trials would have found it difficult to believe that, in the America of 2014, the practice of following procedures at the expense of humanity and common sense would have become as common in this country as it indeed has.