The America Political Chernobyl

The meltdown wasn’t caused by engineers but by the Soviet political system’s dogma.

 

Nothing enrages my family, friends and colleagues more than when I assert that contemporary US political divisions are the same as those since the beginning of recorded history: ideology, race, and religion, rather than (easily ignored) Trump tweets (or the political spin thereof). So I will proffer that his tweets were divisive in that they challenged Progressive Democratic beliefs regarding these factors, but neither should be accepted on faith if America is to avoid an economic meltdown.

 

Empires and State Religions

The Soviet System’s accomplishments from Stalin’s time industrialization and WW II, urbanization, restoration and expansion of Imperial Russia, etc., and the space achievements under Khrushchev were so impressive that American intellectuals generally agreed with Khrushchev’s “we will bury you” right up to Chernobyl in 1986. The plant failed because the Soviet system of top-down authority and suppression of the truth forced operators to ignore the inevitable failure and instead follow orders that guaranteed a meltdown.

 

Gorbachev’s glasnost” (openness) and perestroika (restructuring) in response to the disaster removed the pillars of the Soviet system adherence to beliefs given the status of religious dogma – causing it to collapse, something   Austrian economists had considered inevitable. Russia restored the Orthodox Church, but without any historical political legacy based on individual sovereignty, it morphed into a kleptocratic autocracy and a return to Russian Imperialism and military aggression.

 

Whether or not China discovered America in 1421 (or had a greater Empire than the Incas) it was a mercantilist empire several centuries ahead of the British in scope, science and technology, requiring “tribute” (kowtow) in return for protection and trade. Religion wasn’t an obstacle to entrepreneurial capitalism until Mao replaced de fact religious freedom with communist ideology in the early 20th century. China’s economic liberalization begun in 1978, that eventually led to a flowering of entrepreneurship in China’s attempt to restore and expand its earlier mercantilist empire, was accompanied by some religious freedom. Had political liberalizations followed, China’s demographics a population four and a half times that of the US might have already buried us.

 

Churchill may not have saved the British empire in the world wars, but the Empire saved his little island nation. At its 1920 peak it controlled about a quarter of the world’s land mass and population. Britain is a protestant Christian nation, which most analysts conclude fosters property rights and capitalism. The Church of England seceded from the Roman Catholic Church to eliminate the sovereignty of the Pope common to European empires at the time. The British legacy of democratic government and individual freedom and responsibility, the cornerstone of a market economy (admittedly at times too crony and mercantilist) is the source of its economic success and that of its former colonies, including the United States.

 

Uniting church and state elevates political ideology to infallible dogma accepted on faith. The U.S. Founding Fathers, following Britain’s lead, founded a Christian nation that guaranteed individual freedom of religion but forbade the formal establishment of a state religion.

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Inflation…or Deflation? The Debate

Financial writer John Mauldin has two pieces: the first one, with the argument that we should expect inflation, and the second one, arguing that the case for deflation is stronger.

Read, consider, and comment if you feel so inclined.

Soviet Socialism Was a Bad Joke; Sanders/Biden Democratic Socialism is a Comical Tragedy

The Soviet era joke “we pretend to work and they pretend to pay us” has been replaced by the Biden joke “they pay us more not to work so we don’t.” Democrats’ complete denial that the refusal to accept job openings is in any way related to their pay to stay home policies is comical. To admit such spending is not only unnecessary but counterproductive represents an existential threat to their Party’s agenda, but to ignore their denial that incentives matter will end in tragedy.

 

Democratic Socialism isn’t Socialism, It’s a Rent-Seeking Extortion Racket

Socialists promised “to each…” but repressed consumer demand with queues lasting years and often decades. Democratic socialists aren’t socialists in that they don’t promise to work or produce anything. Sopranos’ aficionados recall the high paying “no-show” and the “no-work” union jobs sitting at the construction site in lawn chairs smoking, drinking and playing cards while laughing at the actual exhausted workers. Since incentives don’t matter, democratic socialists believe they can provide higher paying jobs just like the mafia with no loss of production. And, like the   mafia’s benevolent political acts such as delivering Thanksgiving turkeys, capitalists will still deliver the goods for them.

Rent-seeking (living off the work of others, generally payback for political bribery and protection) appeared free to the young Bernie Sanders for a few weeks, until his commune threw him out. What do democratic socialists propose in place of a hundred million deaths from Stalin’s Soviet Gulag and Mao’s Great Leap Forward and the scenes of mafia beatings, sometimes fatal, to extort business? They promise to squeeze “big business” with taxes, regulation and threats to match socialist demand with capitalist supply.

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Thrift and the Virtue of Home Made

It amused me this week, to read of the list of professions which have proved historically to always provide a living of sorts to those who practice them; fine carpentry, construction carpentry, metalworking, innkeeping and I don’t know what-all. Seamstressing was not among them, which is a pity … but since it his historically been an almost exclusively female-practiced profession/hobby/amusement, perhaps it’s one of those things that we can really blame the patriarchal establishment for. Women could make a living, even if relatively a barely marginal one from sewing, although if you glommed onto a high-visible and high-value client who patronized you extravagantly, a certain degree of prosperity would be assured  … but I think mostly that it was one of those things that women were expected to do anyway as part of keeping and maintaining a house, which brought the wages down for those exercising the skill professionally. Eh … never mind.

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The Logic of Insatiable Centralization

People and businesses have been leaving New York City, and the state of California, at a considerable rate. Some of these people/businesses are *resources* from the standpoint of government and its leaders: they are tax money on the hoof.   Cuomo, de Blasio, and Newsome would surely like to have a way of keeping them there.  Would these leaders, if they were allowed, favor a legal prohibition on exits, or at least a prohibitive tax penalty for such exit? This is the logic of the Berlin Wall, or of the Reich Flight Tax, the Reichsfluchtsteuer.    Such things may seem impossible in America, but the Dems have pushed for a lot of things that would have previously been considered impossible in America.

Comes now Janet Yellen of the Biden administration, with a proposal for a global minimum tax on businesses, thereby nailing the feet of companies to the floor and keeping them from going elsewhere to avoid excessive exactions.  Just as Blue-city mayors would rather not have to worry about offering a tax system that is fair and economically-rational, the same is true of the Blue Biden administration.

As a writer at Ricochet has pointed out:

(Yellen’s proposal) is a terrible idea, for a very simple reason: “harmonizing” between governments eliminates competition between them. And it locks in the kind of bloated incompetence that is a feature of even the best governments out there.

We want companies to be able to shop for their preferred home, just as we want Americans to be able to move to low-tax states. Similarly, if a poor country is trying to attract tenants (companies), why should they not be able to offer advantageous tax rates or less bureaucratic overburden?

It would not just be a matter of keeping companies from moving–the proposal would also tend to reduce or eliminate pressure to keep taxes low and minimize government waste.

Basically, this global minimum tax would represent the collusion of the political and bureaucratic classes against everybody else.

And against diversityany diversity of political and economic philosophies.

“Progressives” don’t like fine-tuning incentives; they like issuing prohibitions and giving orders.