Political Philosophy

Dodd-Frank, Obamacare grew out of same faulty reasoning

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The current partisan war over the Dodd-Frank Act is just one dispute in a broader ideological divide about the government’s role in industry. This dispute, which has deep historical roots, includes a similar battle over Obamacare. The common disagreement at issue with both laws — now in the cross hairs of a GOP-controlled Washington — is the extent to which politicians should subsidize their constituents indirectly through regulation of private companies.

The Affordable Care Act governing health insurers was about 1,000 pages, and Dodd-Frank governing most other financial institutions was more than twice that. Both stopped short of nationalizing their respective industry, instead generating more than 10 pages of regulation for every one page of legislation, although many view nationalization as an eventual but inevitable consequence, particularly for health care.

The distinction between public control and public ownership is the primary distinction between the competing mid-20th-century ideologies of fascism and communism. In contemporary terminology, this distinction is between crony capitalism and nationalization, neither of which can be reconciled with competition and freedom of choice.

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What are the Limits of the Alexander Analysis?

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Edward Porter Alexander, who was Lee’s artillery commander at Gettysburg, became a railroad president after the war.  His experiences in running a major transportation system probably had something to do with the evolution of his thoughts regarding state’s rights:

Well that (state’s rights) was the issue of the war; & as we were defeated that right was surrendered & a limit put on state sovereignty. And the South is now entirely satisfied with that result. And the reason of it is very simple. State sovereignty was doubtless a wise political instution for the condition of this vast country in the last century. But the railroad, and the steamboat & the telegraph began to transform things early in this century & have gradually made what may almost be called a new planet of it… Our political institutions have had to change… Briefly we had the right to fight, but our fight was against what might be called a Darwinian development or an adaptation to changed & changing conditions so we need not greatly regret defeat.

I think a lot of the belief in unlimited globalization is implicitly driven by an extension of Alexander’s argument, with the jet plane, the container ship, and the Internet taking the place of the railroad, steamboat, and telegraph.

How far does this extension make sense?  If the ability of locomotives could pull trains across the United States in three days meant that full sovereignty for individual states was obsolete, does the ability of jet airplanes to carry passengers and freight anywhere in the world in less than one day similarly imply that full sovereignty for nations is obsolete?

I suspect that most people at this site will not agree with a transportation-based argument for the elimination of national sovereignty.  So, what is valid and what is invalid about Alexander’s analysis, and what are the limits for the extension of its geographical scope?  Discuss.

An Interesting Story About Government Funding

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If the government wants to give money to your organization, that’s a good thing, right?

Here’s a letter to the editor that recently appeared in the Financial Times:

Sir, I was raised in a Catholic orphanage, along with 800 boys and girls, pre-kindergarten through high school. It was established in 1883. I experienced none of the “abuse, neglect and trafficking” JK Rowling talks about (“Rowling shines a light on the false incentives distorting aid”, Gillian Tett, November 19). That is, until the orphanage began accepting funds from the state rather than via charitable donations from religious organisations.

Once government money began flowing in, the orphanage had to adhere to all the latest politically correct modalities then in vogue: no more dormitories, only small “cottages” of 10 with live-in grievance counsellors rather than nuns; no more in-residence classrooms — the kids now had to be bussed to the nearest school; no more football and basketball teams — everybody had to get a trophy; and no more need to work on that 850-acre farm, or to work in the kitchen, in the bakery, in the dairy, in the powerhouse shovelling coal, or in the shoe and carpenter shops — these things would be provided by state subsidies.

Knock on the door of any one of its graduates and you would find that person a veteran of the second world war, the Korean war, Vietnam, the Gulf war, simply working in the corporate world as a productive member of our society. Now, its graduates are wards of the state.

In time, the orphanage dwindled from 800 children to 80 — the rapacious after-effects of public funding. Most recently it became entangled in equal rights abuses, the legal costs absorbing scare funds for upkeep and maintenance, before finally sinking into insolvency and closure. That orphanage out on the Illinois prairie is now surely one of Rowling’s “fairy tales”.

Jeremiah Norris (Hudson Institute)

As Rose Wilder Lane wrote, a long time ago:

Nobody can plan the actions of even a thousand living persons, separately. Anyone attempting to control millions must divide them into classes, and make a plan applying to these classes. But these classes do not exist. No two persons are alike. No two are in the same circumstances; no two have the same abilities; beyond getting the barest necessities of life, no two have the same desires.

She was talking about individuals, but a similar point could be made about organizations.

The people who talk so much about ‘diversity’ rarely seem to understand (or at least to care) that top-down government management is a destroyer, not an enabler, of true diversity.

Don Beaudreaux Supports Government by Experts

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…which doesn’t mean what it sounds like it means

Similar points are made in Sarah Hoyt’s post makeup, mate choice, and political philosophy

Quote of the Day

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J. E. Dyer:

Conservatism itself is paralyzed by the nervous moral fear induced in people by cultural Marxism which has been meant from the beginning to undermine moral confidence at the most basic level. Conservatism’s problem isn’t Donald Trump. Conservatism’s problem is that Donald Trump isn’t paralyzed by the guilt-mongering of cultural Marxism but conservatism is.
 
The answer is not for conservatism to insist that nothing move out there, until we decide what forms of paralysis will continue to suit us. The answer is that conservatives must fearlessly reclaim the necessary social concepts of authority and common expectations, and start producing results.