Some Chicago Boyz know each other from student days at the University of Chicago. Others are Chicago boys in spirit. The blog name is also intended as a good-humored gesture of admiration for distinguished Chicago School economists and fellow travelers.
The ancient Greeks gave us “democracy,” a set of rules for candidates to compete for the right to rule. They also gave us the Olympics, a set of rules for individuals, teams and ultimately countries to compete in athletic events. The Olympics outlawed certain drugs, standardized the technology and separated males from females (historically) due to genetic differences, but otherwise there is no favoritism due to race, ethnicity, family history, country of origin, etc. Medals are awarded only to the top performers, gold/silver/bronze (all formerly used for money). Capitalism is a comparable set of rules for competition among individuals, teams and countries. Technology and management differences are allowed, even encouraged, as all contestants share in it over time. Similarly, capitalist competition is the source of virtually all human improvement for winners and losers alike. The US Constitution uniquely established rules for a competitive democracy and competitive market economy, historically the source of US economic growth.
The Olympics is a big business, with a history of scandals relating to kickbacks to judges, host country officials or Olympic Committee Members that corrupts the competition. Similarly, politicians who make the rules for a market economy that show favoritism to particular industries, firms or people, i.e., crony capitalism, is the corrupt antithesis of competitive market capitalism.
Competing with Olympic coverage in France, ironically under the French banner of “equality,” is the current political competition for the US presidency, which both sides agree is “pivotal” for democracy’s future, but the democracy spectrum runs from a limited government representative republic on the right to a majoritarian “peoples democracy” on the left. Each campaign accuses the other of hate, fear mongering, political pandering and the usual lies and misinformation (political spin). So far it has been an entertaining tag team mud wrestling match (even these have rules and limits).
But for over a century the fundamental economic choice has been between competitive market capitalism and egalitarian socialism, growth versus stagnation. The divide has never been more clear, although the Democratic Party eschews the socialist label. In 2020, when openly socialist Democratic candidate Bernie Sanders appeared a certain victor, the Party pulled the candidate, but adopted his “democratic socialism” platform. Current candidate Harris, similarly anointed, has either agreed with or been to the left of that platform on every issue, recent flip/flops notwithstanding. Their radical distributional “democratic socialism” goes beyond “to each according to his needs” to require “to each equally.” Their production ideology, eschewing state ownership, calls for a fair degree of state control.
That is the title of a book about the first US Civil War that resulted in the assassination of President Lincoln. The soldiers in the South hated those in the North and vice versa. Northern soldiers have since been credited with undeserved virtue while Southern rebels were labeled racist enemies of the state, a moniker that still survives in the present day. But neither side was fighting over the abolition of slavery.
Trump’s opponents claim he will re-institute Jim Crow oppression, put black people back in chains, end democracy and put people in Hitler’s concentration camps. The continuous character assassinations, legal persecutions, numerous impeachments, unfounded accusations and insinuation caused what has been called Trump Derangement Syndrome (TDS), a disease of the public mind resulting in a recent assassination attempt.
Follow the Money
The Constitution the North and South agreed upon in 1788 enshrined the economic principles of Adam Smith’s Wealth of Nations, fostering equality under the law, individual sovereignty and limited government. Slavery was still too contentious an issue to settle. Starting in the next century the British led a moral crusade to eliminate slavery globally. While politically virtuous, Britain could afford to pay off slave owners and generally didn’t face the the vexing question for US plantation owners of whether freed slaves could support themselves and, if not, whether this would lead to murderous riots as had happened elsewhere. Abolition was a contentious issue everywhere slavery was practiced, typically with long drawn out steps to complete. But the long simmering political dispute that came to a head in 1860 wasn’t about abolition, but money. The federal government relied almost exclusively on tariffs raised in Southern ports – most of which went to northern states – on imports financed with the fruits of slavery, cotton exports.
Since the Civil War, limited government has given way to big government. The Democratic Party has created many dependent constituencies whose continued prosperity depends upon continuing Democratic power and largess: the bureaucracy, the government at all levels, teachers, labor leaders, academic educators and administrators, trial lawyers, government contractors, social security recipients and what are still euphemistically called journalists, among many others. The current Civil War is also about money. Trump has been in both political parties, fits in neither. But ”you are fired” represents an existential threat to Party members.
For contemporary Democratic politicians, almost all trained as lawyers, money beyond what is available by taxing the rich exists in banks, especially the Federal Reserve Banks, to be distributed according to the spoils system. For Republican politicians (but not RINOs), mostly former businessmen, prosperity comes from productive work and from savings productively invested. For those businesses and workers who are not on the receiving end of the spoils system, whose taxes pay for political largess, limited government is the only solution. There is very little middle ground.
Economic policy determines whether economies, and hence citizen real income grows nationally and how that income is distributed. The invisible hand of a market economy guides investment to its most profitable, hence most productive uses. Not so for the heavy hand of the state. The Soviet Union saved and invested five to six times as much as the US, but productivity lagged and the economy eventually collapsed. Taxpayers have some control over “public” investment performance at, e.g., the small private level (condo, coop) but voter influence declines as the distance and size of the governing body increases. Making national investment policy even more difficult is the fact that even highly productive public investment may not pay off until well into the future. While rational economic policy would devolve decision-making and funding to the lowest possible level, the federal government’s lack of a hard budget constraint allows it to fund without accountability. The Constitution’s enumerated powers has proven an insufficient constraint on this perverse political incentive.
During President Trump’s term, pre-pandemic, real wages rose steadily at about 2% reflecting the steady real economic growth, but fell under Biden by over 2% due to inflation. Black unemployment and poverty fell under Trump, and continued to fall under Biden. While Trump proposed deep budget cuts, the Congress passed essentially the Democrats’ budget under both Ryan and Pelosi. Trump passed what in the ’60s under Kennedy was called a Keynesian tax cut, now called a “voodoo economics” supply-side tax cut for the rich to spur business investment, that worked essentially as planned.
Trump takes undue credit for the good performance during his term, for which the main stream media (MSM) accuse him of lying. Biden does the same, for which the MSM cheers. Independent voters favor Trump over Biden by 45% to 34% on the management of the economy. Numerous Democratic commentators have speculated that voter mistrust of Biden reflects FOX fake news popping up on TV sets uninvited to brainwash unsuspecting viewers.
Playing fast and loose with the definition of “ode,” this was an annual Independence Day tradition on the long-neglected blog. The original was posted July 4, 2002. Most years a change or addition was made. This is the most recent incarnation.
Scenes from “John Adams” showing the meeting of the Second Continental Congress, at which the vote for independence from Great Britain is conducted, and the public reading of the Declaration of Independence. [Original video with both scenes is now a dead link, new videos have been found.]
The Declaration formally proclaimed our independence – the Battle of Yorktown won it.
Through these fields of destruction Baptisms of fire I’ve watched all your suffering As the battle raged higher And though they did hurt me so bad In the fear and alarm You did not desert me My brothers in arms
Dire Straits, “Brothers in Arms”
“Then I will live in Montana, and I will marry a round American woman and raise rabbits and she will cook them for me. And I will have a pickup truck, or possibly even a recreational vehicle, and drive from state to state. Do they let you do that?”
Vasili Borodin (played by Sam Neill), The Hunt for Red October
“‘We hold these truths to be self-evident… That all men are created equal, that they are endowed by their Creator with certain inalienable rights… That among these are Life, Liberty and the Pursuit of Happiness… That to secure these rights, governments are instituted among men …’. And this paper that from the French Revolution on the whole West has copied, from which each of us has drawn inspiration, still constitutes the backbone of America. Her vital lymph. Know why? Because it transforms the subjects into citizens. Because it turns the plebes into people. Because it invites, no, it orders the plebes turned into citizens to rebel against tyranny and to govern themselves. To express their individualities, to search for their own happiness. (Something that for the poor, for the plebes, means to get rich). The exact contrary, in short, of what the communists used to do with their practice of forbidding people to govern themselves, to express themselves, to get rich. With their practice of installing His Majesty the State on the throne.”
Oriana Fallaci, The Rage and the Pride
“With this faith we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood.”
Martin Luther King
“There is an inverse relationship between reliance on the state and self-reliance.”
“The State exists simply to promote and to protect the ordinary happiness of human beings in this life. A husband and wife chatting over a fire, a couple of friends having a game of darts in a pub, a man reading a book in his own room or digging in his own garden – that is what the State is there for. And unless they are helping to increase and prolong and protect such moments, all the laws, parliaments, armies, courts, police, economics, etc., are simply a waste of time.”
C. S. Lewis, Mere Christianity
“Funny that the same people to whom diversity is a holy word so often bemoan diversity of opinion as divisive. But in a democracy, politics are naturally divisive: you vote for this candidate and someone else votes for that one; you vote yes (or no) on a proposition and other citizens disagree. What’s not divisive? Saddam and his 99.96% of the vote. That’s how it went during the previous Iraqi election — an illustration of the Latin roots of the word fascism, which actually means a bunch of sticks all tied together in one big unhappy unified bunch, and not (despite what many assume) any variation from p.c. received-wisdom regarding gay rights, affirmative action, bilingual education, etc. This election was different because it was divisive, which means it was better.”
“It’s all wrong. By rights we shouldn’t even be here. But we are. It’s like in the great stories, Mr. Frodo. The ones that really mattered. Full of darkness and danger they were. And sometimes you didn’t want to know the end. Because how could the end be happy? How could the world go back to the way it was when so much bad had happened. But in the end, it’s only a passing thing, this shadow. Even darkness must pass. A new day will come. And when the sun shines it will shine out the clearer. Those were the stories that stayed with you. That meant something. Even if you were too small to understand why. But I think, Mr. Frodo, I do understand. I know now. Folk in those stories had lots of chances of turning back only they didn’t. Because they were holding on to something…That there’s some good in this world, Mr. Frodo. And it’s worth fighting for.”
Sam Gamgee (played by Sean Astin), Lord Of The Rings: The Two Towers
“[W]e recognize that we are living in the middle of the most overwhelmingly successful experiment in human history. Not perfect. Just the best place in the world to live in, that’s all.”
“I will not be pushed, filed, stamped, indexed, briefed, debriefed or numbered! My life is my own.”
Number Six (played by Patrick McGoohan, “The Prisoner” TV series)
“Patriotism means to stand by the country. It does not mean to stand by the President or any other public official save exactly to the degree in which he himself stands by the country. It is patriotic to support him insofar as he efficiently serves the country. It is unpatriotic not to oppose him to the exact extent that by inefficiency or otherwise he fails in his duty to stand by the country.”
Theodore Roosevelt
This Tea Party protest sign illustrates Roosevelt’s musings on patriotism – and the powers of the citizen as exercised via the ballot box:
“So this Jefferson dude was like, ‘Look, the reason we left this England place is ’cause it was so bogus. So if we don’t get some primo rules ourselves – pronto – then we’re just gonna be bogus, too.”
Jeff Spiccoli (played by Sean Penn), Fast Times at Ridgemont High
“Democracy extends the sphere of individual freedom, socialism restricts it. Democracy attaches all possible value to each man; socialism makes each man a mere agent, a mere number. Democracy and socialism have nothing in common but one word: equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.”
Alexis deTocqueville, Democracy in America Vol. 2
“We who lived in concentration camps can remember the men who walked through the huts comforting others, giving away their last piece of bread. They may have been few in number, but they offer sufficient proof that everything can be taken from a man but one thing: the last of the human freedoms — to choose one’s attitude in any given set of circumstances, to choose one’s own way”
Given the uncertainties, one can say nothing more definite than that "something will happen"; where, when is unknown. The most important question to answer is what set of people we want in charge on the day. Or stated in the negative, who don't we want in charge?
Through these fields of destruction 
