Contracts Breeched: Freedom Cancelled

A previous post mentioned trust and the responsibilities of government to keep up their share of their contract to provide safety and the kind of order property rights demand. Such trust comes easily when our respect is internalized. Benjamin Franklin and Jonathan Edwards both spoke of teaching the young “virtuous habits”. In the America in which I grew up that kind of respect was internalized – and not just in towns of 500 in the Great Plains – Thomas Sowell talks of his boyhood in Harlem with such affection. This too, is critical of the broken contract of so many politicians with their citizens surrounded by the rubble of riots.

In Property and Freedom, Richard Pipes examines “property” in terms of land, but also money and goods; what is “proper to man” – including his inalienable rights. I’ve found his journey to follow the historical development of different societies’ definitions of property and man’s relation to it interesting.

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“Follow the Science” on the Corona Virus Pandemic

The Lincoln – Douglas Debate Rematch

As House speaker Nancy Pelosi publically alleged, the Republicans are “domestic enemies of the (deep) state.”

The central campaign issue of the 2020 U.S. Presidential election has been the response to the Corona Virus pandemic, which roughly follows along party lines. Based on the administrative state’s scientific “consensus” Democratic politicians generally argued for a nationwide lockdown of most “non-critical” economic activity as a civic responsibility of all citizens, enforced by state police powers. Republican politicians generally question the “consensus,” reject a one size fits all statist solution, and (mildly) complain about the violation of constitutionally protected individual rights.

In the 1858 Lincoln Douglas debates, Douglas, the incumbent Democratic Senator and Committee Chairman who had extended slavery into Kansas and Nebraska based on majoritarian democracy, i.e., the majority of white male voters, believed in the scientific theory that slaves were inferior and hence property. Lincoln argued that slaves had the same inalienable individual rights as all Americans that “government of, by and for the people” could not take away.

Douglas maintained his incumbency, but a few years later Lincoln became POTUS and in defense of his principles engaged in a Civil War that sacrificed a tenth of his population and devastated the country. The 13th, 14th and 15th Amendments protecting former slaves were passed before Southern Democrats rejoined the Union, further enhanced by the Civil Rights Acts of the early 1960s proposed by a Democratic President but passed only with large Republican support. While the demographics have since shifted dramatically – the Democratic Party is now 40% people of color – the philosophical divide remains unchanged. Contemporary Democrats still argue the state is sovereign, subject to a majority coalition, but governed by an administrative state.

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Saving American Democracy for the Zombie Apocalypse

Within weeks of the 2016 presidential election, the New York Times launched the campaign against President Elect Donald Trump as a racist autocratic Threat to Democracy, followed by the main stream media. Democratic candidate Joe Biden presented a ho hum globalist foreign policy as redressing President Trump’s threat to foreign democracies, conflated with his anti-capitalist domestic policy.

What does “Democracy” Mean to the Democratic Party?

European populations attracted to communism after the devastation of WW II were encouraged, sometimes with the subtle help of America’s CIA, to choose “social democracy,” i.e., a democratically elected central government that provided a welfare state financed by a market economy, over Soviet communism. America adopted social democracy in the 1960’s not out of desperation but capitalist material abundance.

Today after almost six decades of Great Society welfare over three quarters of all democrats are now “democratic socialists, i.e., they prefer socialism to market capitalism. The young party leaders demand “racial and social justice,” a political Jacobin revolution. Democratic officials have actively supported the demonstrators and rioters in the streets celebrating the Meltdown of Capitalism orchestrated by the Marxist Black Lives Matter and ANTIFA groups demanding a majoritarian “peoples’ democracy” like that of prior communist totalitarian regimes.

How Progressive Democrats Became Zombies

Since the takeover of Cornell University and others at gunpoint, most universities implemented black studied programs that indoctrinated the Charlottesville premise that America was born to slavery and American racist oppression never ended, causing the current income and wealth gap with whites. Thomas Sowell, one of the greatest economists of the past 60 years, who is black and was present at Cornell at the time, has a lifetime of scholarship exposing the fallacy of this premise.

The “Cold War” against Soviet communism lasted from 1945 to 1990. The Communist Party was outlawed in the United States in 1954 with progressive political support out of fear that voters could be too easily seduced by the meretricious promises of socialism – where income equality is achieved by impoverishing all but its leaders – without understanding the inherent totalitarianism that led to communist atrocities under Stalin and Mao, murders and deaths measured in the tens and hundreds of millions. The claim by democratic socialists of western democratic countries with a socialist economy, e.g., Sweden, is a myth. 

A century of progressive mis-education explains the zombies’ attack on capitalism. Primary education peddles soft socialism while universities are populated by “effete intellectual snobs,” the label given by VP Spiro Agnew to “national masochists” i.e., intellectuals who would bring national ruin, written a half century ago by the New York Times writer William Safire. American historians have generally been biased against market capitalism. The term “Robber Baron, first used by the New York Times in 1859 to describe Cornelius Vanderbilt, was popularized during the Depression by a disciple of socialist/progressive writer Charles Beard. America’s dark history has been made hopeless to many millenials through the lens of socialist sympathizer Howard Zinn and racist through the lens of the New York Times 2019 revisionist 1619 Project, with the Democratic Party re-writing its’ own racist past. Economists have been the most easily seduced by the attraction of state power, finding “market failures” at both the macro and micro level to justify their intervention. The Austrian economists Schumpeter and Hayek recognized socialism’s masochistic appeal to “intellectuals” who felt that they could run the world better than those chosen to do so.

After the Zombie Apocalypse: the Pigs Rule

Accusations of autocratic behavior by Trump are mostly in response to micro-aggressions of politically incorrect tweets and comments. Coups that overthrow representative democracy from the right generally start with the armed military taking over the media, the bureaucracy, the universities, the unions and all the other sources of political power. The idea that President Donald Trump could direct any of those sources of political power is ridiculous: the deep state has been trying to take him down since he took office. (If the accusations against his AG had any merit, the Democrats would have conducted a real hearing instead of a five hour show trial – a bit long by Stalin’s standards).

Democrats on the other hand are the Party of the deep state. It has been cultivating those sources of political power for a century, and now controls them with the “carrot and stick” method that was so successful for Mexico’s one party PRI for almost a century, suppressing free speech. It’s only a small additional step from social democrat to one-party democratic socialism.

Winning this election (fairly or not) provides the Democratic Party the opportunity for one party rule if their agenda faces any serious opposition. They have already discussed many tools at their disposal, e.g., eliminating the Electoral College, further lowering the voting age to 16, packing the Supreme Court (again), mail in ballots, etc. But Barack Obama’s demand at John Lewis’s recent funeral to end the filibuster and announce four new (almost assuredly democratic) senators from the new states of Puerto Rico and the District of “Columbia” (to be renamed of course) in the name of racial and social justice would likely be more than sufficient, maybe even just the threat.

What Good is the U.S. Constitution?

The founding fathers didn’t anticipate political parties, so it isn’t an obstacle to one-party rule. Franklin’s Republic of limited powers was replaced by an all-powerful administrative state rather like Hemingway’s character went bankrupt: “gradually, then suddenly.”

The first necessary condition was to amend the constitution. The end of the Civil War enabled the 13th, 14th and 15th Amendments extending voting rights to blacks. The 16th Amendments in 1909 enabling a federal income tax and the creation of the Federal Reserve System in 1912 provided the funding for President Woodrow Wilson’s entry into the European war and “make the world safe for democracy” the rationale. The direct election of Senators in the 17th Amendment of 1912 limited potential state opposition. All these changes shifted power to the federal government.

Second, the specific enumerated powers of the Constitution have been mooted through Supreme Court political nominations, legal manipulation and intimidation producing “creative” decisions subsequently protected by a convenient legal doctrine of stare desisis, i.e., protection of past progressive Court victories that enable meretricious populist promises. Supreme Court resistance to the New Deal withered in the wake of FDR’s failed attempt to pack the Supreme Court. The subsequent Great Society of the 1960’s, also designed by socialists and implemented by FDR’s protégé President LBJ, substituted federal government funding and decision making not only for states and localities, but for most of civic society and eventually the family.

Four quotes from H.L. Menken of about a century ago sum it up:

  1. Democracy is a pathetic belief in the collective wisdom of individual ignorance.
  2. Democracy is also a form of worship. It is the worship of jackals by jackasses.
  3. Democracy is the art and science of running the circus from the monkey cage.
  4. Democracy is the theory that the common people know what they want, and deserve to get it good and hard.

Kevin Villani

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Kevin Villani was chief economist at Freddie Mac from 1982 to 1985. He has held senior government positions, has been affiliated with nine universities, and served as CFO and director of several companies. He recently published Occupy Pennsylvania Avenue on how politicians and bureaucrats with no skin in the game caused the sub-prime lending bubble and systemic financial system failure.

Quote of the Day

Helen Pluckrose, quoted in Spiked:

Despite what the backing of prominent institutions might imply, I think these woke causes are supported by only a minority of people. It is not so uncommon for society to work this way. Look at theocracies, where perhaps only five per cent of people are theologians who teach the core values, but they are accepted by wider society as a benchmark for showing goodness and virtue. People either accept it without really understanding it, or just refrain from arguing with it. There are definitely parallels between that scenario and society today.

Nowadays non-leftists hesitate to express non-leftist views publicly, either from fear of retaliation or because they don’t think it’s worth the hassle. Leftists probably feel the same way. However, the situation is asymmetrical because so many prominent institutions and big businesses are controlled by leftists or by people who are afraid not to make at least a show of fealty to leftist ideas.

How Much Do Black Lives Matter?

Ask Mr. Jones

Mr. Jones – the title of a movie released last year now playing on Amazon Prime – discovers that the New York Times’ Moscow Bureau and its Pulitzer writer Walter Duranty is covering up Stalin’s starvation of 4 million Ukrainians (16 million relative to today’s global population) to protect the gloss of socialism, later explaining “You can’t make an omelet without breaking eggs”. All the other journalists except Jones apparently go along for the same reason. The death toll of socialist ideology would reach 100 million (300 today) during the next several decades in the pursuit of Utopia. There were no omelets.

Only a few thousand (almost all black) deaths have as yet resulted from prior Black Lives Matter (BLM) Movement protests, but this is only the beginning. The question is, what is their leaders’ version of Utopia and how many lives are they willing to sacrifice to achieve it?

Socialism, Fascism and Crony Capitalism are Sisters

Over the past several centuries two systems of political economy, socialism and capitalism, have competed. The distinguishing characteristic of all socialist variants is the authoritarian hand of politicians, whether or not “elected.” The distinguishing characteristic of capitalism is the invisible hand guiding the competitive market. Neither system promises “equal” outcomes: capitalism “fair” outcomes based on individual merit without eyesight to discriminate by color or sex, socialism in theory based on need as determined by politicians and bureaucrats.

Jonah Goldberg in Liberal Fascism (2008) argues that fascism is a sister to Soviet socialism. What the U.S. has called “crony capitalism” has different features than the fascism of Hitler and Mussolini, but includes authoritarian control over business and markets. Similarly, the welfare state democratic socialism has different features than Soviet socialism, but shares state control over income. The Progressive Movement in the U.S. has historically used the authoritarian political hand to benefit not just the rent-seeking cronies at the top (politicians, the intellectual elite, etc.) but also the working and under-class. The competitive market system that remained somewhat out of the state’s reach produced most of the income and wealth that funded this progressive largesse.

What is Racial and Social Justice?

Political power – in the hands of the Democratic Party – was indisputably the source of racist oppression from its founding through the Great Society. The black/white wage gap has remained unchanged since for those employed. What has changed is black participation in the labor force. The old generation of eminent Black economists Tom Sowell (90), Walter Williams (84) and Shelby Steele (74) have, in hundreds of books and thousands of articles, many addressing the issue of race in America, argued that the Great Society has been the source of income and wealth disparities by creating dependence on the welfare state, massive penalties for marriage (raising the percent of live births outside of wedlock from 10% to over 70%) and work (a marginal tax rate over 100% on earned income), restrictive policies such as minimum wage, and opposition to charter schools.

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