Browsed by
Category: History

The Good Old Days of Poverty and Filth – Article by Sarah Skwire

The Good Old Days of Poverty and Filth – Article by Sarah Skwire

The New Renaissance HatSarah Skwire
******************************

A Cultural Historian Decries Profit and Progress

Standing in a luxury hotel, cultural historian Luc Sante daydreams about the good old days of homeless alcoholics lighting trash fires in the streets of Manhattan’s Skid Row.

“Over there, next to the flophouse hotel,” Sante reminisced to the Guardian, “is where Nan Goldin lived and worked. Forty years ago there were still lots of vacant lofts here that had been burlesque and vaudeville theatres during the era when storefronts were saloons. There were bars solely inhabited by bums, their heads down on the counter. At night they’d be lined up outside the missions and Salvation Army hostels — veterans from World War Two, from the Korean War, from the Vietnam War. At night, trash fires would be lit in oil drums.”

The French have an elegant phrase for what Sante is doing. They call it nostalgie de la boue, “longing for the mud,” which means a romantic yearning for a primitive or degraded behavior or condition.

The phrase, which was coined by a French dramatist in 1855, has been around for a while and usefully describes the very real way in which the wealthier and healthier inhabitants of modernity look back at the past through a misty, romantic haze.

While it annoys historians when we put a soft-focus filter on history, it doesn’t generally do a lot of damage. We don’t need every medieval romance novel to remind us that the heroine’s breath didn’t smell like cool mint Listerine. It’s probably for the best that the historical re-enactors at Colonial Williamsburg don’t actually use authentic colonial medical remedies for their health problems, and visiting tourists are certainly grateful for modern plumbing and street sanitation. Even the BBC’s determinedly authentic 1900 House had a phone and modern fire protection in case of emergencies.

Any lover of history will occasionally find him or herself dreaming about attending a performance in the pit at Shakespeare’s Globe, or roughing it in the saloons and shacks of a gold rush town. Some of us may even have recently spent an entranced hour or two playing with the Victoria and Albert Museum’s “Design-a-Wig” website. But a good student of history will acknowledge that the Globe was undoubtedly loud, smelly, crowded, and occasionally even dangerous for playgoers. And the rugged romance of the gold rush town is offset by the knowledge that you were probably far more likely to die of gangrene or cholera than you were to strike it even moderately rich. And those glorious 18th-century wigs? Heavy, hot, smelly, and prone to harboring bugs.

But a real case of nostalgie de la boue goes further than the soft-focus filter that ignores the unpleasantness of the past. Rather than ignoring the historical “mud,” nostalgie de la boue actively longs for that kind of unpleasantness and insists that without it, life is less authentic, less meaningful, and altogether worse.

And that is where Luc Sante seems to be. While he is quite correct to note that the ribaldry of Paris has long been a desirable antidote to the humorless Puritanism of American cities, Sante goes entirely off the rails when he insists that his praise for the “materially poor but … imaginatively free and creatively rich” inhabitants of Paris is not a romantic vision.

According to Sante, people ask him, “How can you be promoting the life of the poor in the 19th century when so many of them didn’t eat every day?”

Sante concedes, “Well yeah, it’s bad, but is it really any worse than the situation today when everybody’s fed but you have an incredible percentage of New Yorkers who live in the shelter system – including people who have regular jobs?”

The horrors of the shelter system aside, there’s a great deal to be said for a world where more and more people are fed better every year, and my guess is that a great number of the imaginatively free Parisians that Sante dreams of would have enjoyed the occasional extra baguette. It is possible to value historical creativity and intellectual independence without also having to praise historical dietary deficits. (And it is worth noting, should Sante happen to read this, that the feeding of all those extra people is not due entirely, or even primarily, to “the shelter system.” It’s the market economy and all that goes with it that is making the world better fed every year.)

Sante continues his nostalgia for the mud when he argues, “In the Paris I write about, people ran businesses to make a living, not to make a profit. Cafes, bars: they’re no longer public institutions or part of a community. There’s no possibility for eccentric self-determination amongst the shopkeepers.”

The distinction Sante draws between “making a living” and “making a profit” is not particularly clear to me. It suggests, perhaps, an unstated assumption that there is such a thing as an agreed-upon “correct” amount of profit for a business or businessperson to make — beyond which all profit becomes filthy lucre. Possibly he is making an equally indefensible assumption that businesspeople in the past weren’t interested in being as successful as they could be and that it is only our postmodern cynicism that has unleashed the drive for profit.

Maybe Sante means to say that unlike today’s businesses, the businesses of years ago “made a living” by helping to create a community among their customers rather than just “making a profit” by selling stuff. I think that thousands of today’s small business owners and their Facebook pages, Etsy stores, and farmer’s market stands would beg to differ with his assessment of their importance to their communities.

There’s not necessarily always a problem with nostalgie de la boue. It’s how we got Peaky Blinders, the renewed interest in home canning, restaurants that serve bone marrow, and the great revival of folk music spurred by O Brother Where Art Thou?, after all.

Sante, though, has so much mud in his eyes that he is blind to the tangible and important progress that has been made in human wealth and welfare. His mucky nostalgia leads him to claim that our increasing wealth — which has given us more health, more discretionary income, more food, and more free time — is a danger more pernicious than terrorism. “Money, for me, may not immediately kill people in the way terrorism does, but it does certainly change the fabric of daily life in much deeper and more insidious ways.”

That is a statement of such offensive ignorance that it could only be made by a man standing high above the former Skid Row, looking down through glass, with room service and maid service only a phone call away. I wonder if the men and women in the photographs that Sante treasures would have said the same?

Sarah Skwire is the poetry editor of the Freeman and a senior fellow at Liberty Fund, Inc. She is a poet and author of the writing textbook Writing with a Thesis. She is a member of the FEE Faculty Network.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

Good News, Bernie Sanders: Average Workweeks Are Getting Shorter – Article by Chelsea Follett

Good News, Bernie Sanders: Average Workweeks Are Getting Shorter – Article by Chelsea Follett

The New Renaissance HatChelsea Follett
******************************

Capitalism is letting people choose more leisure

Senator Bernie Sanders recently tweeted the following:

sanders.tweetFortunately, the gruelingly long workweek described by Sanders is not the norm. In fact, leisure time has been on the rise. In 1950, an average U.S. worker worked 1,984 hours a year, or about 38 hours a week. In 2015, an average American worker worked 1,767 hours, or about 34 hours a week.

workhours

That means that the average U.S. worker had 217 more hours for leisure or other pursuits in 2015 than in 1950. That is about 9 days of extra time.

The 50-hour workweek described by Sanders is more common in China, where the average worker worked 2,432 hours in 2015, or around 47 hours a week.

This post first appeared at HumanProgress.org.
Compare other countries over time with their interactive dataset.

Chelsea Follett (Chelsea German) works at the Cato Institute as a Researcher and Managing Editor of HumanProgress.org.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

Why Is the Middle Class Shrinking? – Article by Steven Horwitz

Why Is the Middle Class Shrinking? – Article by Steven Horwitz

The New Renaissance HatSteven Horwitz
******************************

Two Arguments in Favor of Economic Inequality

Economic inequality continues to be a major political issue even as the headlines scream about terrorism and climate change. Bernie Sanders has made it a centerpiece of his presidential campaign, and other candidates have addressed it along the way. And a recent study by the Pew Research Center has added new, though misplaced, fuel to the fire of those concerned about inequality.

The Pew study has been discussed in the media, and one key point has been grossly misunderstood. Among other things, the study found that the American middle class is shrinking and is now just under half of the population. Commentators quickly began to refer to the “hollowing out” of the middle class and to tie this study to the concerns about growing inequality.

However, a close look at the data shows that the middle class has shrunk since 1971 because more members of the middle class have moved up the income ladder than down it.

Don’t believe me? Look for yourself at the terrific graphic that the Financial Times created to illustrate the data:

ft2015inequalitygraphYou can watch as the folks on the left slowly slide to the right over 44 years. When you compare the 1971 distribution with the 2015 one, what do you see? A growth in households earning around $80,000 or above, adjusted for inflation, since 1971 and a significant decline in those making less than that amount (with the exception of the folks right around $0). It’s true that there’s not a fat middle class anymore, but why should that trouble us if there are more high-income households and fewer low-income households overall?

The funny part of this is that if you read the story in the Financial Times that accompanies this graphic, it’s as if they never actually looked at the graphic they produced. Their narrative is at odds with it, as the narrative proclaims the doom-and-gloom story that the graphic actually refutes. As they say, never let the facts get in the way of a good story.

This growth in household income may, to some extent, be a by-product of the same economic processes that have produced the concerns about inequality, illustrated in this graphic by the significant growth of the ultra-rich.

There are far more very rich people today than there were 44 years ago, but the growth of the upper class has gone hand in hand with the enrichment of a large number of less-well-off households. Are there ways in which economic inequality is good, then? I think the answer to that question is yes. If so, then, what are they? Here are two defenses of economic inequality that proponents of the free market could make.

First is the more obvious one: growing inequality is good because it might be a consequence of economic institutions that produce all kinds of results that we think are desirable. For example, if competitive markets lead to peace and rising prosperity for all but also create inequality along the way by allowing some folks to get very rich, then we should at least tolerate that inequality because the things that produce it also produce other things we like.

This is the usual defense libertarians invoke, and it’s a good argument. The critic, however, might say that even if the defense is true, it doesn’t prove that inequality is necessary for that result. There’s a difference between saying, “Good economic institutions will produce inequality while creating good economic outcomes for all,” and saying, “Good economic outcomes for all can’t be produced without inequality.” The critic would likely ask how reducing the inequality that markets produce will harm their ability to produce those good results.

And here is where we come back to the Pew study and get a second defense of inequality. One way the middle class (and all of us) has become richer in the last generation is that the cost of so many goods and services has dropped in terms of the number of hours we have to work at the average wage in order to purchase them. The lower price of basic goods has enabled more and more people to afford things like large TVs, smartphones, and new, cheaper medications.

One thing that has made this process happen is inequality. In The Constitution of Liberty, F.A. Hayek argued,

A large part of the expenditure of the rich, though not intended for that end, thus serves to defray the cost of the experimentation with the new things that, as a result, can later be made available to the poor.… Even the poorest today owe their relative material well-being to the results of past inequality.

Having a group of very rich people is what enables yesterday’s luxuries to become today’s basics.

There are two parts to this process: cost bearing and discovery. The very rich are able to afford the high prices of new technologies, thereby providing an incentive for firms to market new and expensive products. Once the rich pay the high initial price and cover the fixed costs of research and development, sellers can begin to price closer to the much lower marginal cost of producing additional units, making the good much more affordable to more people.

But the rich are also an economic canary in the coal mine that informs producers whether they are getting it right.

For example, a critic of inequality might complain that no one “really needs” a $100,000 luxury car with all kinds of new high-tech gadgets on it. But the fact that some can afford it and want to buy it helps the car companies figure out which new features might be popular. Rear-view cameras were once only available on top-end cars, but they have slowly become a standard feature. The same may soon be true of collision warning systems now available on high-end models of some cars.

In fact, everything we think of as basics today was once the province of only the well-off. The first microwaves were expensive and bought mostly by the rich. I can remember my parents paying about $900 for a VCR in the late 1970s. VCRs, of course, fetch a price close to zero these days. The rich who bought the early LCD TVs helped manufacturers defray the fixed production costs and figure out what people wanted, and now these TVs are in the vast majority of houses at a more affordable price.

The inequality at any point in time is a key part of the process that creates wealth for the rest of society over the years to follow. The very rich enable producers to experiment and cover their costs, and that makes more goods more affordable for the rest of us, from fun toys to life-saving necessities.

The inequality produced by the market is a key part of how the market moves forward, enriching all of us in the process. And that’s why the middle class is shrinking: the rich, through the competitive market, have helped make the middle class richer.

Steven Horwitz is the Charles A. Dana Professor of Economics at St. Lawrence University and the author of Hayek’s Modern Family: Classical Liberalism and the Evolution of Social Institutions. He is a member of the FEE Faculty Network.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

America’s Concentration Camps Are a Warning, Not a Model – Article by Gary McGath

America’s Concentration Camps Are a Warning, Not a Model – Article by Gary McGath

The New Renaissance HatGary McGath
******************************

But some politicians are trying to revive their legacy

Woodrow Wilson’s reputation has recently taken a well-deserved beating because of his racial policies. He restored segregation in the federal civil service, and the infamous movie Birth of a Nation highlights his support for the Ku Klux Klan. Those policies are dead today, with very few advocates.

However, a more recent president implemented an even worse race-based policy against Americans, and some politicians say we should emulate it today. Franklin D. Roosevelt’s executive order forcibly removed about 120,000 Japanese-Americans, mostly US citizens, from their homes.

After the bombing of Pearl Harbor, people feared a Japanese attack on the West Coast, and many regarded the Japanese American population in California as disloyal. On February 19, 1942, Roosevelt issued Executive Order 9066, which authorized the military to remove people from designated military areas.

As explained in Greg Robinson’s By Order of the President, Roosevelt’s language was broad, but everyone understood “any and all persons” to mean Japanese-Americans and “military areas” to mean the West Coast. The removals included “Issei” — resident immigrants — as well as “Nisei” — native-born Americans with Japanese parents. Immigration from Japan had been banned since 1924, and all Japanese immigrants were ineligible for citizenship, although all had been living in America for at least eighteen years.

They were forcibly removed to ten concentration camps. The government officially called them “relocation centers,” but Roosevelt himself used the words “concentration camp” in a recommendation as early as 1936, as did a military proposal in 1942. The occupants were kept behind barbed wire, and armed guards kept them from leaving.

The mass displacement of Japanese-Americans, but not people of German or Italian extraction, was the result of racial rather than security considerations. Roosevelt showed a lifelong hostility toward the Japanese. Robinson states:

FDR had a long and unvaried history of viewing Japanese-Americans in racialized terms, that is, as essentially Japanese in their identity and emotional allegiance, and of expressing hostility toward them on that basis.

In the years before World War I, Roosevelt considered immigration part of the Japanese threat to the West Coast. During the 1920s, when Roosevelt urged better relations with Japan, he supported immigration restriction and legal discrimination in order to deter Japanese-American settlement.

A report commissioned by Congress concluded that

Executive Order 9066 was not justified by military necessity, and the decisions that followed from it — exclusion, detention, the ending of detention and the ending of exclusion — were not founded upon military considerations. The broad historical causes that shaped these decisions were race prejudice, war hysteria and a failure of political leadership.

As documented by Thomas Fleming in The New Dealers’ War, Roosevelt proposed removing an even larger number of Japanese and Japanese-Americans in Hawaii. The military objected because so many of them were skilled workers who were necessary to the war effort.

The order banning Japanese-Americans from the West Coast was lifted in January of 1945, and the camps were shut down soon afterward. Many returned to find they couldn’t reclaim their property or return to their homes.

These events should be a shameful chapter in America’s past, but even today people cite them as an example to follow. David Bowers, mayor of Roanoke, Virginia, ordered the city government to stop helping Syrian refugees, citing Roosevelt’s internment order as justification.

Al Baldasaro, a New Hampshire state representative and co-chair of Donald Trump’s state veterans’ coalition, has defended Trump’s proposal to ban Muslim immigration by citing World War II internment: “What he’s saying is no different than the situation during World War II, when we put the Japanese in camps.”

Trump has made the connection between his call for banning Muslim immigrants and creating a national registry and FDR’s policies explicit:

What I’m doing is no different than FDR’s solution for German, Italian, Japanese, you know… They stripped them of their naturalization proceedings. They went through a whole list of things; they couldn’t go five miles from their homes. They weren’t allowed to use radios, flashlights. I mean, you know, take a look at what FDR did many years ago and he’s one of the most highly respected presidents.

Trump evaded the question of whether he would have supported Japanese internment, saying, “I would have had to be there at the time to give you a proper answer.” He wasn’t there, but there are still living Americans who were. One was George Takei, who played Lt. Sulu on Star Trek and was sent off at the age of five. He recalls how it happened:

Without charges, without trial, without due process — the fundamental pillar of our justice system — we were summarily rounded up, all Japanese-Americans on the West Coast, where we were primarily resident, and sent off to 10 barb wire internment camps — prison camps, really, with sentry towers, machine guns pointed at us — in some of the most desolate places in this country.

For the sake of a false sense of security, the US government ruined countless lives, imprisoned tens of thousands without charges, without even accusation, with only the mere fact of their skin color and ancestry. The internment stoked hatred against a minority group, squandered potential assets in the war, and fueled the Axis’s anti-American propaganda.

The lesson that America’s concentration camps should have burned into our national consciousness that we must never do that again — not to a racial, national, or a religious minority, nor anyone else — no matter how afraid we are. They are a warning, not a model.

Gary McGath is a freelance software engineer living in Nashua, New Hampshire.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

Science Fiction and Communist Reality – Article by Lawrence W. Reed

Science Fiction and Communist Reality – Article by Lawrence W. Reed

The New Renaissance HatLawrence W. Reed
******************************

Real Heroes: Stanislaw Lem

Each week, Mr. Reed will relate the stories of people whose choices and actions make them heroes. See the table of contents for previous installments.


Polish science fiction writer Stanislaw Lem (1921–2006) “skillfully dissected the 20th century’s foolhardy efforts to create utopias by stifling individuality and economic freedoms.” So said cultural critic Bruce Edward Walker. Lem was best known internationally as author of the classic Solaris — twice adapted for the silver screen — but the majority of his fiction featured damning allegories against the suppression of the human spirit.

Lem ranks high in the Polish pantheon of independent thinkers and dissidents, any list of which would be long and distinguished. Poland’s role in the historic unraveling of the Soviet empire was pivotal by any measure. And while world leaders from Pope John Paul II to Ronald Reagan to Margaret Thatcher played a part, the audacity of the homegrown resistance is a story that is still underemphasized to this day.

In November 1986, I spent nearly two weeks in Poland with the anticommunist underground. This was five years after the Warsaw government declared martial law and threw many pro-freedom activists in jail. It was still many months before the big changes of 1989 that would liberate Eastern Europe from the communist yoke. One night during my visit, I met in a private home with a half-dozen underground printers. They were eager to impress me with examples of many great pro-freedom books they had illegally translated, printed, and distributed throughout the country.

I asked, “Where did you get the paper to publish all this stuff?”

“From two places,” replied a young man named Pavel. “One, we smuggle it in from the West. Two, we steal it from communists.”

When I asked him to explain the second source, he revealed that many of the workers in the communist government’s publishing houses were sympathetic to the resistance. When those workers saw the opportunity, they smuggled the paper out or even printed resistance literature on the government’s own printing presses.

The impressive stack of illegally printed books those printers showed me included works by great scholars of liberty from the West — Freeman writers F.A. Hayek, Ludwig von Mises, and Murray N. Rothbard, to name just three. I later raised $5,000 for the underground to translate, publish, and distribute Milton Friedman’s classic Free to Choose, a copy of which I proudly display today in a glass case in my study. But there were books, essays, and ideas by native Poles that the underground took risks to disseminate as well. Stanislaw Lem was one of them.

Born in 1921, Lem survived both Nazi occupation and Soviet rule in the town of his birth, which was known alternately as Lwów in free Poland, Lvov in the Soviet Union, and Lviv in modern Ukraine. His father was a doctor, and Lem was poised to follow in his footsteps until Hitler’s invasion in 1939. He was forced to work as a mechanic but became a crack saboteur: “I learnt to damage German vehicles in such a way that it wouldn’t be discovered,” he said.

Lem resumed his medical studies following the war, eventually finishing his degree in Cracow in 1946. He intended to pursue a career in theoretical biology, but abandoned his plans rather than adhere to the since-discredited practices of Soviet geneticist Trofim Lysenko. He turned to writing, only to have his first novel, The Hospital of the Transfiguration, banned by communist censors for nearly a decade.

By 1951, Lem realized that his only hope of publishing was to mask his views as allegorical works of science fiction. State apparatchiks in charge of expunging subversive works from the public square were too stupid to appreciate his subtlety, but Polish intellectuals and many ordinary readers knew full well what the underlying message was. What Lem did with a wrench to German vehicles, he later did with pen and ink to the communist state.

Lem used his considerable intellect (he reportedly had an IQ of 180) and writing skills to parody Soviet and Polish leaders and subtly convey the torments of communist life. He is seen as in the same mold as satirical fantasists Jonathan Swift, George Orwell, and Franz Kafka. In the estimation of many who took great risks to criticize the Soviet and allied Eastern European regimes, his work sits comfortably alongside such anti-totalitarian classics as Arthur Koestler’s Darkness at Noon and Alexander Solzhenitsyn’s The Gulag Archipelago.

Lem’s writings have been translated into at least 40 languages, have sold nearly 30 million copies, and span a wide range from screenplays, short stories, and mystery novels to more serious matters of philosophy, cybernetics, and the nature of intelligence itself.

The Astronauts, published in 1951, was followed by Time Not Lost, a fictionalized account of Nazi occupation of Poland. Return from the Stars, published in 1961, presented a world devoid of “the hell of passion, and then it turned out that in the same sweep, heaven, too, had ceased to be. Everything now is lukewarm.” This bland reality, noted reviewer Marilyn Jurich, “reduces the possibility of individuals accepting personal risks,” resulting in “a monotone, denatured safe world at the cost of direct experience in a nature that is open, unknown, risky; a world where wild animals have disappeared along with human emotion and initiative. Individuals have few means left to test physical capacity or mental endurance.”

Nightmarish Conformity

The short story “The Thirteenth Voyage,” in the collection The Star Diaries, depicts the totalitarian urge at its most invasive. In that story, the Angelicans, a group of social engineers, determine that all human foibles can be solved by collectivization, producing a nightmarish, stagnant conformity. Having lived through collectivism of both the national socialist and communist varieties, Lem knew his subject well.

Lem published his last collection of fiction in 1988, before the collapse of the Berlin Wall and the subsequent implosion of the Soviet Union. He told interviewer Istvan Csicsery-Ronay Jr. in 1985,

The literature of the 20th century has lost its battle, or at least finds itself in retreat.… The tales of refugees from totalitarian countries reduce themselves to an exhaustive catalogue of social and psychological suffering that such systems treat their citizens to. These books cannot pick their readers up, and the lessons they teach are not pleasant. One could say that the job of literature is not primarily to entertain, move, and cheer us up, but as [Joseph] Conrad said, to ‘bring the visible world to justice.’ Well, in order to bring this world to justice, it is first necessary to understand it with one’s intellect, to appreciate the wealth of its diversity.

Another Polish dissident, Stefan Kisielewski, was once jailed for an eloquent three-word sentence: “Socialism is stupidism.”

As a rule, dictators understand the power of ideas better than most people, which is why they often make it illegal to simply harbor a certain thought or give that thought expression in ink on paper.

Thankfully, courageous men and women like Stanislaw Lem found creative ways around evil regimes — a key reason those very regimes now exist, with a few exceptions, only in the history books.

For further information, see:

Lawrence W. (“Larry”) Reed became president of FEE in 2008 after serving as chairman of its board of trustees in the 1990s and both writing and speaking for FEE since the late 1970s. Follow on Twitter and Like on Facebook.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

Benjamin Franklin: Pioneer of Insurance in North America – Video Presentation by G. Stolyarov II

Benjamin Franklin: Pioneer of Insurance in North America – Video Presentation by G. Stolyarov II

The New Renaissance HatG. Stolyarov II
November 6, 2015
******************************

Mr. Stolyarov discusses Benjamin Franklin’s multifaceted contributions to combating the threat of fire, including the founding of the first fire insurance company in North America – The Philadelphia Contributorship for the Insuring of Houses from Loss by Fire.

This presentation was originally prepared for and delivered at the October 26, 2015, educational meeting of the Sierra Nevada Chapter of the CPCU Society. This video and enhanced slideshow are a slightly expanded version of that presentation.

The slides can be downloaded in PowerPoint format  and PDF format.

Portrait of Benjamin Franklin by David Martin (1767)
Portrait of Benjamin Franklin by David Martin (1767)
Save The Apologies, Just Stop Promoting War! – Article by Ron Paul

Save The Apologies, Just Stop Promoting War! – Article by Ron Paul

The New Renaissance HatRon Paul
November 2, 2015
******************************
Usually when politicians apologize it’s because they have been caught doing something wrong, or they are about to be caught. Such was likely the case with former British Prime Minister Tony Blair, who recently offered an “apology” for the 2003 invasion of Iraq. Blair faces the release of a potentially damning report on his government’s conduct in the run-up to the 2003 US/UK invasion of Iraq.

Similarly, a batch of emails released from the private server of former Secretary of State Hillary Clinton show Blair pledging support for US military action against Iraq a full year before the decision to attack had supposedly been made. While Prime Minister Blair was assuring his constituents that he was dedicated to diplomacy in the Iraq crisis, he was communicating through back channels that he was ready for war whenever Bush decided on it.

A careful observer of public opinion, Blair took the surprising step of “apologizing” for the Iraq war during an interview on CNN last month.

However, there are two other characteristics of politicians’ apologies: they rarely take personal blame for a misdeed and rarely do they atone for those misdeeds.

Thus Tony Blair did not apologize for his role in pushing the disastrous Iraq war. He did not apologize for having, as former head UN Iraq inspector Hans Blix claimed, “misrepresented intelligence on weapons of mass destruction to gain approval for the Iraq War.”

No, Tony Blair “apologized” for “the fact that the intelligence we received was wrong,” on Iraq. He apologized for “mistakes in planning” for post-Saddam Iraq. He boldly refused to apologize for removing Saddam from power.

In other words, he apologized that the intelligence manipulated by his cronies to look like Saddam had weapons of mass destruction and posed a threat to the UK turned out to not be the case. For Blair, it was someone else’s fault.

But if we are waiting for any kind of apology from George W. Bush for Iraq, we shouldn’t hold our breath. Likewise if we are looking for any kind of apology from President Obama for a similarly disastrous war on false pretext against Libya, we shouldn’t bother waiting.

If they ever did apologize, we can be sure that like Blair they would never really confess to their own manipulations nor would they seek to atone for the destruction their manipulations caused.

In fact, far from apologizing for leading the United States into the Libya war based on a false pretext, President Obama is taking US ground troops into Syria on a false pretext. Let’s not forget, this US military action was sold as a limited operation to save a small religious minority stranded on a hilltop in northern Iraq. After one year and thousands of bombing runs against Iraq and Syria, Obama announced last week he is sending US ground troops into Syria after promising no fewer than seven times that he would not do so.

Here’s an idea: instead of apologies and non-apologies from politicians, how about an actual debate on the policies that led to such disasters? Why not discuss why the US keeps being drawn into wars on false pretexts? But that is a discussion we will not have, because both parties are in favor of these wars. They are ready to spend us into Third World status to continue their empire. When we get there, we will never hear their apologies.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

Central Banks and Our Dysfunctional Gold Markets – Article by Marcia Christoff-Kurapovna

Central Banks and Our Dysfunctional Gold Markets – Article by Marcia Christoff-Kurapovna

The New Renaissance Hat
Marcia Christoff-Kurapovna
July 23, 2015
******************************

Many investors still view gold as a safe-haven investment, but there remains much confusion regarding the extent to which the gold market is vulnerable to manipulation through short-term rigged market trades, and long-arm central bank interventions. First, much of the gold that is being sold as shares, in certificates, or for physical hoarding in dubious “vaults” just isn’t there. Second, paper gold can be printed into infinity just like regular currency. Third, new electronic gold pricing — replacing, as of this past February, the traditional five-bank phone-call of the London Gold Fix in place since 1919 — has not necessarily proved a more trustworthy model. Fourth, there looms the specter of the central bank, particularly in the form of volume trading discounts that commodity exchanges offer them.

The Complex World of Gold Investments

The question of rigging has been brought to media attention in the past few months when ten banks came under investigation by the US Commodity Futures Trading Commission (CFTC) and the US Department of Justice in price-manipulation probes. Also around that time, the Swiss regulator FINMA settled a currency manipulation case in which UBS was accused of trading ahead of silver-fix orders. Then, the UK Financial Conduct Authority, which regulates derivatives, ordered Barclays to pay close to $45 million in fines against a trader who artificially suppressed the price of gold in 2012 to avoid payouts to clients. Such manipulations are not limited to the precious-metals market: in November of last year, major banks had to pay several billion dollars in fines related to the rigging of foreign-exchange benchmarks, including LIBOR and other interest-rate benchmarks.These cases followed on the heels of a set of lawsuits in May 2014 filed in New York City in which twenty-five plaintiffs consisting of hedge funds, private citizens, and public investors (such as pension funds) sued HSBC, Barclays, Deutsche Bank, Bank Scotia, and Société Génerale (the five traditional banks of the former London Gold Fix) on charges of rigging the precious-metals and foreign-exchange markets. “A lot of conspiracy theories have turned out to be conspiracy fact,” said Kevin Maher, a former gold trader in New York who filed one of the lawsuits that May, told The New York Times.

Central Banks at the Center of Gold Markets

The lawsuits were given more prominence with the introduction of the London Bullion Market Association (LBMA) on February 20, 2015. The new price-fixing body was established with seven banks: Goldman Sachs, J.P. Morgan, UBS, HSBC, Barclays, Bank Scotia and Société Génerale. (On June 16, the Bank of China announced, after months of speculation, that it would join.)While some economists have deemed the new electronic fix a good move in contrast to behind-closed-door, phoned-in price-fixing, others beg to differ. Last year, the commodities exchange CME Group came under scrutiny for allowing volume trading discounts to central banks, raising the question of how “open” electronic pricing really is. Then, too, the LBMA is itself not a commodities exchange but an Over-The-Counter (OTC) market, and does not publish — does not have to publish — comprehensive data as to the amount of metal that is traded in the London market.According to Ms. Ruth Crowell, the chairman of LBMA, writing in a report to that group: “Post-trade reporting is the material barrier preventing greater transparency on the bullion market.” In the same report, Crowell states: “It is worth noting that the role of the central banks in the bullion market may preclude ‘total’ transparency, at least at the public level.” To its credit, the secretive London Gold Fix (1919–2015) featured on its website tracking data of the daily net volume of bars traded and the history of gold trades, unlike current available information from the LBMA as one may see here (please scroll down for charts).

The Problem with Paper Gold

There is further the problem of what is being sold as “paper” gold. At first glance, that option seems a good one. Gold exchange-traded funds (ETFs), registered with The New York Stock Exchange, have done very well over the past decade and many cite this as proof that paper gold, rather than bars in hand, is just as sure an investment. The dollar price of gold rose more than 15.4 percent a year between 1999 and December 2012 and during that time, gold ETFs generated an annual return of 14 percent (while equities registered a loss).As paper claims on trusts that hold gold in bank vaults, ETFs are for many, preferable to physical gold. Gold coins, for instance, can be easily faked, will lose value when scratched, and dealers take high premiums on their sale. The assaying of gold bars, meanwhile, with transport and delivery costs, is easy for banking institutions to handle, but less so for individuals. Many see them as trustworthy: ETF Securities, for example, one of the largest operators of commodity ETFs with $21 billion in assets, stores their gold in Zurich, rather than in London or Toronto. These last two cities, according to one official from that company, “could not be trusted not to go along with a confiscation order like that by Roosevelt in 1933.”Furthermore, shares in these entities represent only an indirect claim on a pile of gold. “Unless you are a big brokerage firm,” writes economist William Baldwin, “you cannot take shares to a teller and get metal in exchange.” ETF custodians usually consist of the likes of J.P. Morgan and UBS who are players on the wholesale market, says Baldwin, thus implying a possible conflict of interest.

Government and Gold After 1944: A Love-Hate Relationship

Still more complicated is the love-hate relationship between governments and gold. As independent gold analyst Christopher Powell put it in an address to a symposium on that metal in Sydney, October 2013: “It is because gold is a competitive national currency that, if allowed to function in a free market, will determine the value of other currencies, the level of interest rates and the value of government bonds.” He continued: “Hence, central banks fight gold to defend their currencies and their bonds.”It is a relationship that has had a turbulent history since the foundation of the Bretton Woods system in 1944 and up through August 1971, when President Nixon declared the convertibility of the dollar to gold suspended. During those intervening decades, gold lived a kind of strange dual existence as a half state-controlled, half free market-driven money-commodity, a situation that Nobel Prize economist Milton Friedman called a “real versus pseudo gold standard.”The origin of this cumbersome duality was the post-war two-tiered system of gold pricing. On the one hand, there was a new monetary system that fixed gold at $35 an ounce. On the other, there was still a free market for gold. The $35 official price was ridiculously low compared to its free market variant, resulting in a situation in which IMF rules against dealing in gold at “free” prices were circumvented by banks that surreptitiously purchased gold from the London market.

The artificial gold price held steady until the end of the sixties, when the metal’s price started to “deny compliance” with the dollar. Still, monetary doctrine sought to keep the price fixed and, at the same time, to influence pricing on the free market. These attempts were failures. Finally, in March 1968, the US lost more than half its reserves, falling from 25,000 to 8,100 tons. The price of other precious metals was allowed to move freely.

Gold Retreats Into the Shadows

Meawhile, private hoarding of gold was underway. According to The Financial Times of May 21, 1966, gold production was rising, but it was not going to official gold stocks. This situation, in turn, fundamentally affected the gold clauses of the IMF concerning repayments in currency only in equal value to the gold value of such at the time of borrowing. This led to a rise in “paper gold planning” as a substitution for further increases in IMF quotas. (Please see “The Paper Gold Planners — Alchemists or Conjurers?” in The Financial Analysts Journal, Nov–Dec 1966.)By the late 1960s, Vietnam, poverty, the rise in crime and inflation were piling high atop one another. The Fed got to work doing what it does best: “Since April [1969],” wrote lawyer and economist C. Austin Barker in a January 1969 article, “The US Money Crisis,” “the Fed has continually created new money at an unusually rapid rate.” Economists implored the IMF to allow for a free market for gold but also to set the official price to at least $70 an ounce. What was the upshot of this silly system? That by 1969 Americans were paying for both higher taxes and inflation. The rest, as they might say, is the history of the present.Today, there is no “official” price for gold, nor any “gold-exchange standard” competing with a semi-underground free gold market. There is, however, a material legacy of “real versus pseudo” gold that remains a terrible menace. Buyer beware of the pivotal difference between the two.

Marcia Christoff-Kurapovna is at work on the biography of a prominent European head of state and businessman.  Her work has appeared in such publications as The Wall Street Journal, The Economist and Foreign Affairs.

This article was originally published by the Ludwig von Mises Institute. Permission to reprint in whole or in part is hereby granted, provided full credit is given.

Imagine a Political Party That Really Supports Equal Rights – Real Heroes: William Leggett – Article by Lawrence W. Reed

Imagine a Political Party That Really Supports Equal Rights – Real Heroes: William Leggett – Article by Lawrence W. Reed

The New Renaissance Hat
Lawrence W. Reed
July 10, 2015
******************************

Each week, Mr. Reed will relate the stories of people whose choices and actions make them heroes. See the table of contents for previous installments.


Death from yellow fever complications claimed journalist William Leggett at the tender age of 38, days before he would have assumed his first political office. President Martin Van Buren had just named Leggett US ambassador to Guatemala. In the early 19th century, as temptations were rising to divert Americans’ constitutional framework toward bigger government, Leggett (to borrow a phrase from 20th-century journalist William F. Buckley) stood athwart history yelling, “Stop!”

Leggett’s fame is inextricably intertwined with the term Locofoco. Here’s the story.

Imagine a political movement that says it’s committed to “equal rights” — and means it. Not just equality in a few cherry-picked rights but all human rights, including the most maligned: property rights. Imagine a movement whose raison d’être is to oppose any and all special privileges from government for anybody.

When it comes to political parties, most of them in recent American history like to say they’re for equal rights. But surely the first lesson of politics is this: what the major parties say and do are two different things.

In American history, no such group has ever been as colorful and as thorough in its understanding of equal rights as one that flashed briefly across the political skies in the 1830s and ‘40s. They were called “Locofocos.” If I had been around back then, I would have proudly joined their illustrious ranks.

The Locofocos were a faction of the Democratic Party of President Andrew Jackson, concentrated mostly in the Northeast and New York in particular, but with notoriety and influence well beyond the region. Formally called the Equal Rights Party, they derived their better-known sobriquet from a peculiar event on October 29, 1835.

Democrats in New York City were scrapping over how far to extend Jackson’s war against the federally chartered national bank at a convention controlled by the city’s dominant political machine, Tammany Hall. (Jackson had killed the bank in 1832 by vetoing its renewal.) When the more conservative officialdom of the convention expelled the radical William Leggett, editor of the Evening Post, they faced a full-scale revolt by a sizable and boisterous rump. The conservatives walked out, plunging the meeting room into darkness as they left by turning off the gas lights. The radicals continued to meet by the light of candles they lit with matches called loco focos — Spanish for “crazy lights.”

With the Tammany conservatives gone and the room once again illuminated, the Locofocos passed a plethora of resolutions. They condemned the national bank as an unconstitutional tool of special interests and an engine of paper-money inflation. They assailed all monopolies, by which they meant firms that received some sort of privilege or immunity granted by state or federal governments. They endorsed a “strict construction” of the Constitution and demanded an end to all laws that “directly or indirectly infringe the free exercise of equal rights.” They saw themselves as the true heirs of Jefferson, unabashed advocates of laissez-faire and of minimal government confined to securing equal rights for all and dispensing special privileges for none.

Three months later, in January 1836, the Locofocos held a convention to devise a platform and to endorse candidates to run against the Tammany machine for city office in April. They still considered themselves Democrats: rather than bolt and form a distinct opposition party, they hoped to steer the party of Jefferson and Jackson to a radical reaffirmation of its principled roots.

“We utterly disclaim any intention or design of instituting any new party, but declare ourselves the original Democratic party,” they announced.

The “Declaration of Principles” the Locofocos passed at that January gathering is a stirring appeal to the bedrock concept of rights, as evidenced by these excerpts:

  • “The true foundation of Republican Government is the equal rights of every citizen, in his person and property, and in their management.”
  • “The rightful power of all legislation is to declare and enforce only our natural rights and duties, and to take none of them from us.”
  • “No man has a natural right to commit aggression on the equal rights of another; and this is all the law should enforce on him.”
  • “The idea is quite unfounded that on entering into society, we give up any natural right.”

The convention pronounced “hostility to any and all monopolies by legislation,” “unqualified and uncompromising hostility to paper money as a circulating medium, because gold and silver are the only safe and constitutional currency,” and “hostility to the dangerous and unconstitutional creation of vested rights by legislation.”

From affirmative action to business subsidies, today’s Congress and state legislatures routinely bestow advantages on this or that group at the expense of others. The Locofoco condemnation of such special privilege couldn’t be clearer:

We ask that our legislators will legislate for the whole people and not for favored portions of our fellow-citizens, thereby creating distinct aristocratic little communities within the great community. It is by such partial and unjust legislation that the productive classes of society are … not equally protected and respected as the other classes of mankind.

William Leggett, whose expulsion from the October gathering by the Tammany Democrats sparked the Locofocos into being, was the intellectual linchpin of the whole movement. After a short stint editing a literary magazine called the Critic, he was hired as assistant to famed poet and editor William Cullen Bryant at the New York Evening Post in 1829. Declaring “no taste” for politics at first, he quickly became enamored of Bryant’s philosophy of liberty.

He emerged as an eloquent agitator in the pages of the Post, especially in 1834 when he took full charge of its editorial pages while Bryant vacationed in Europe. Leggett struck a chord with the politically unconnected and with many working men and women hit hard by the inflation of the national bank.

In the state of New York at the time, profit-making businesses could not incorporate without special dispensation from the legislature. This meant, as historian Richard Hofstadter explained in a 1943 article, that “men whose capital or influence was too small to win charters from the lawmakers were barred from such profitable lines of corporate enterprise as bridges, railroads, turnpikes and ferries, as well as banks.”

Leggett railed against such privilege: “The bargaining and trucking away of chartered privileges is the whole business of our lawmakers.” His remedy was “a fair field and no favor,” free-market competition unfettered by favor-granting politicians. He and his Locofoco followers were not anti-wealth or anti-bank, but they were vociferously opposed to any unequal application of the law. To Leggett and the Locofocos, the goddess of justice really was blindfolded. His relentless rebukes of what we would call today “crony capitalism” are well represented in this excerpt from an 1834 editorial:

Governments have no right to interfere with the pursuits of individuals, as guaranteed by those general laws, by offering encouragements and granting privileges to any particular class of industry, or any select bodies of men, inasmuch as all classes of industry and all men are equally important to the general welfare, and equally entitled to protection.

The Locofocos won some local elections in the late 1830s and exerted enough influence to see many of their ideas embraced by no less than Martin Van Buren when he ran successfully for president in 1836. By the middle of Van Buren’s single term, the Locofoco notions of equal rights and an evenhanded policy of a small federal government were reestablished as core principles of the Democratic Party. There they would persist for more than half a century after Leggett’s death, through the last great Democratic president, Grover Cleveland, in the 1880s and 1890s. Sadly, those essentially libertarian roots have long since been abandoned by the party of Jefferson and Jackson.

Upon Leggett’s untimely death in 1839, poet William Cullen Bryant penned an eloquent obituary in which he wrote, in part, the following tribute:

As a political writer, Mr. Leggett attained, within a brief period, a high rank and an extensive and enviable reputation. He wrote with great fluency and extraordinary vigor; he saw the strong points of a question at a glance, and had the skill to place them before his readers with a force, clearness and amplitude of statement rarely to be found in the writings of any journalist that ever lived. When he became warmed with his subject, which was not unfrequently the case, his discussions had all the stirring power of extemporaneous eloquence.

His fine endowments he wielded for worthy purposes. He espoused the cause of the largest liberty and the most comprehensive equality of rights among the human race, and warred against those principles which inculcate distrust of the people, and those schemes of legislation which tend to create an artificial inequality in the conditions of men. He was wholly free — and, in this respect his example ought to be held up to journalists as a model to contemplate and copy — he was wholly free from the besetting sin of their profession, a mercenary and time-serving disposition. He was a sincere lover and follower of truth, and never allowed any of those specious reasons for inconsistency, which disguise themselves under the name of expediency, to seduce him for a moment from the support of the opinions which he deemed right, and the measures which he was convinced were just. What he would not yield to the dictates of interest he was still less disposed to yield to the suggestions of fear.

We sorrow that such a man, so clear-sighted, strong minded and magnanimous has passed away, and that his aid is no more to be given in the conflict which truth and liberty maintain with their numerous and powerful enemies.

If you’re unhappy that today’s political parties give lip service to equal rights as they busy themselves carving up what’s yours and passing out the pieces, don’t blame me. I’m a Locofoco and a fan of William Leggett.

For further information, see:

Lawrence W. (“Larry”) Reed became president of the Foundation for Economic Education (FEE) in 2008. Prior to that, he was a founder and president for twenty years of the Mackinac Center for Public Policy in Midland, Michigan. He also taught Economics full-time and chaired the Department of Economics at Northwood University in Michigan from 1977 to 1984.

He holds a B.A. degree in Economics from Grove City College (1975) and an M.A. degree in History from Slippery Rock State University (1978), both in Pennsylvania. He holds two honorary doctorates, one from Central Michigan University (Public Administration—1993) and Northwood University (Laws—2008).

This article was originally published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.
Rise to Meet the Enemies at the Gates: Join the Battle against Disease and Death – Article by Eric Schulke

Rise to Meet the Enemies at the Gates: Join the Battle against Disease and Death – Article by Eric Schulke

The New Renaissance HatEric Schulke
June 25, 2015
******************************

A lot of your great-grandfathers and great-grandmothers have prepared and gone through the fire of war. This happened time and time again over the centuries. It was nearly routine.

The video “World Battleground, 1000 Years of War in 5 Minutes” adds some good perspective to the frequency of larger-scale conflicts.

If you didn’t have the genes for it, didn’t have it in you to put up a staunch defense or go on a successful offense when necessary, then you and your people didn’t survive as often. It is unfortunate that such a terrible trait has played such a fundamental role in shaping who we are, but that seems to be the way it is.

It is in us to adrenalize in the face of battle and do what it takes to find victory. Most of us don’t directly chase it, and we shy away from it when necessary, but when cornered or challenged, when our towns are burned down or our family and neighbors are murdered on the trails, we draw our weapons and pursue the enemy to the corners of the lands, taking them dead or alive.

Aging and diseases have us cornered. So what are we to do? Should we approach it like it is peacetime? Should we get up in the morning and think of aging and disease as another day at the office or another bill to pay, another fish to be caught for supper or another window to be boarded up for a storm?

When an adjacent empire marches in and demands allegiance to expand its power, with the alternative of impalement or crucifixion for everybody you’ve ever known, you churn out ramparts, build your defenses, get the trenches dug, get the spit and sweat out, and make a stand for life against a bunch of killing scum-bags like you’re supposed to do. There is a time for the industry of peacetime, and there is a time for war.

It is like wartime right now.

In this war against aging, other diseases, and death in general, we don’t need guns, and – it’s incredibly lucky for us – we don’t even need to spill guts. Our enemy causes our guts to be spilled, but these gutless intruders don’t even have them to spill. They are microscopic misalignments, cellular maladjustment, biological disrepair, but they are terrible opponents nonetheless. They snatch our lives away from us. That’s why we put up staunch defenses, and beyond that, prepare a fierce, forceful, battering offense in the form of a worldwide expedition in support of the philosophy and research of indefinite life extension – of extended healthy longevity.

If winning a war involves spilling forth solutions from your head and not guts from people’s bodies, and you won’t do it, then we can only be left to assume that winning isn’t worth it for you unless you can dismantle flesh. That’s not the case, is it? It is catastrophic to the outcome of an urgent fight for life if we can’t recognize that a deadly enemy that doesn’t bleed is still an enemy.

Comanches on the warpath had a lot less to lose than you do, and yet they put up a lot more of a fight. Match them, at the least. You have it in you, and we desperately need you at these front lines of the diseases of aging and general death.

We can’t win this unless we expedite, instill energy, move fast, work hard – work wartime hard. And why shouldn’t we get serious if it means a great shot at winning this? Indifference is one of our biggest obstacles here, and that indifference comes in large part from this phenomenon of the children of warriors not recognizing war without enemy blood. As more battle cries go up around the world, those centuries-old frequencies of battle will begin to ring in the DNA of more brave new life-extension advocate centurions and soldiers like you. With a little time, a great army can be raised up in this showdown with the Grim Reaper and its despicable harbingers of aging, and other forms of diseases and death.

Attack disease and death with this attitude. Get pumped up: it’s the only way to accelerate the pace and save life. Join the battle.

You weren’t bred to back down and wimp out. You are the sum total of the survivors of thousands of years of constant brutal wartime. Respect your ancestors by harnessing that fury and stepping up to this call of duty. Report to your nearest life-extension organization or project. Fight for the Movement for Indefinite Life Extension with everything you’ve got.

Pick your legion, be it Fight Aging, the Methuselah Foundation, Longecity, the SENS Research Foundation, Foresight Nanotech Institute, the California Life Company (Calico), the Institute for Ethics and Emerging Technologies, the Longevity Party, the Transhumanist Party, the Buck Institute, Alcor Life Extension Foundation, the Life Extension Foundation, or another, and report.

The Movement for Indefinite Life Extension supports and lists as many of the core, main organizations as possible on this page.

The world is at stake. We all need you.

This song, not affiliated with this movement (yet. Call us, Rammstein), illustrates the concept well.

Translated lyrics:

Even on the waves there is fighting
Where fish and flesh are woven into sea
One stabs the lance while in the army
Another throws it into the ocean

Ahoy

Arise, arise seaman arise
Each does it in his own way
One thrusts the spear into a man
Another then into the fish

Arise, arise seaman arise
And the waves cry softly
In their blood a spear is lodged
They bleed softly into the ocean

The lance must be drowned in flesh
Fish and man sink to the depths
Where the black soul dwells
There is no light on the horizon

Ahoy

Arise, arise seaman arise
Each does it in his own way
One thrusts the spear into a man
Another then into the fish

Arise, arise seaman arise
And the waves cry softly
In their blood a spear is lodged
They bleed softly into the ocean

Arise, arise seaman arise
And the waves cry softly
In their heart a spear is lodged
They bleed themselves dry on the shore

Eric Schulke was a director at LongeCity during 2009-2013. He has also been an activist with the Movement for Indefinite Life Extension and other causes for over 15 years.