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The Fed Plans for the Next Crisis – Article by Ron Paul

The Fed Plans for the Next Crisis – Article by Ron Paul

The New Renaissance HatRon Paul
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In her recent address at the Jackson Hole monetary policy conference, Federal Reserve Chair Janet Yellen suggested that the Federal Reserve would raise interest rates by the end of the year. Markets reacted favorably to Yellen’s suggested rate increase. This is surprising, as, except for one small increase last year, the Federal Reserve has not followed through on the numerous suggestions of rate increases that Yellen and other Fed officials have made over the past several years.

Much more significant than Yellen’s latest suggestion of a rate increase was her call for the Fed to think outside the box in developing responses to the next financial crisis. One of the outside-the-box ideas suggested by Yellen is increasing the Fed’s ability to intervene in markets by purchasing assets of private companies. Yellen also mentioned that the Fed could modify its inflation target.

Increasing the Federal Reserve’s ability to purchase private assets will negatively impact economic growth and consumers’ well-being. This is because the Fed will use this power to keep failing companies alive, thus preventing the companies’ assets from being used to produce a good or service more highly valued by consumers.

Investors may seek out companies whose assets have been purchased by the Federal Reserve, since it is likely that Congress and federal regulators would treat these companies as “too big to fail.” Federal Reserve ownership of private companies could also strengthen the movement to force businesses to base their decisions on political, rather than economic, considerations.

Yellen’s suggestion of modifying the Fed’s inflation target means that the Fed would increase the inflation tax just when Americans are trying to cope with a major recession or even a depression. The inflation tax is the most insidious of all taxes because it is both hidden and regressive.

The failure of the Federal Reserve’s eight-year spree of money creation via quantitative easing and historically low interest rates to reflate the bubble economy suggests that the fiat currency system may soon be coming to an end. Yellen’s outside-the-box proposals will only hasten that collapse.

The collapse of the fiat system will not only cause a major economic crisis, but also the collapse of the welfare-warfare state. Yet, Congress not only refuses to consider meaningful spending cuts, it will not even pass legislation to audit the Fed.

Passing Audit the Fed would allow the American people to know the full truth about the Federal Reserve’s conduct of monetary policy, including the complete details of the Fed’s plans to respond to the next economic crash. An audit will also likely uncover some very interesting details regarding the Federal Reserve’s dealings with foreign central banks.

The large number of Americans embracing authoritarianism — whether of the left or right-wing variety — is a sign of mass discontent with the current system. There is a great danger that, as the economic situation worsens, there will be an increase in violence and growing restrictions on liberty. However, public discontent also presents a great opportunity for those who understand free-market economics to show our fellow citizens that our problems are not caused by immigrants, imports, or the one percent, but by the Federal Reserve.

Politicians will never restore sound money or limited government unless forced to do so by either an economic crisis or a shift in public option. It is up to us who know the truth to make sure the welfare-warfare state and the system of fiat money ends because the people have demanded it, not because a crisis left Congress with no other choice.

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.

Markets Are Breaking Down India’s Caste System, Turning Untouchables into Millionaires – Article by Malavika Nair and G. P. Manish

Markets Are Breaking Down India’s Caste System, Turning Untouchables into Millionaires – Article by Malavika Nair and G. P. Manish

The New Renaissance HatMalavika Nair and G. P. Manish
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This year marks the 25th anniversary of liberal reforms in India that led to the dismantling of many socialist economic policies and the end of the draconian License Raj. Liberalization has changed life for many in India over the past couple of decades, although much more remains to be done. Just the middle class alone has exploded from 30 million people in 1991 to 300 million in 2014.

So this is a good occasion to tell the story of perhaps the most unexpected beneficiaries of these reforms: the rising Dalit millionaires. In recent years, many thousands of so-called “untouchables,” or Dalits, members of the lowest group in the Indian caste order, have risen out of poverty to become wealthy business owners, some even millionaires.

By taking advantage of the greater economic opportunity brought about by market reforms, these Dalit entrepreneurs provide us with an important example of the power of markets, not just to bring about economic emancipation, but to fight deeply entrenched social discrimination.

The Plight of the Dalits

The Indian caste system is an ancient and complex social order that divides society into groups based on a somewhat rough division of labor. The Dalits belong to the lowest group, below the four-tiered hierarchy of priests, warriors, merchants and artisans. Traditionally, Dalits were relegated to a life of doing “dirty” jobs such as cleaning floors and toilets or handling garbage: hence gaining the name “untouchable” as others would refuse to come into contact with them.

Since one’s caste was determined by birth, and it was impossible to switch castes throughout one’s life, being born an untouchable meant a lifetime of being trapped in a low income “dirty” job with very low social status. Marriages would only take place among caste members, and hence one’s children would be faced with the same hurdles brought by the untouchable identity, leading to systematic discrimination locked into place for generations.

It isn’t surprising that the Dalits consistently rank near the bottom of poverty statistics in an already poverty-ridden country. The term “poorest of the poor” would be an apt description of their socio-economic status in general. For decades, this made them the targets of several affirmative-action programs as well as many a politician looking to champion a cause.

While affirmative action has helped some get ahead, it has by no means been a panacea. For as long as all industry was state-controlled and subject to extensive licensing, the state effectively made all production decisions and awarded licenses to a few chosen oligarchs. This meant that opportunities for entrepreneurship and business were slim to none, and affirmative-action programs only served to redistribute pieces of a fixed pie from one to another.

Slumdog Millionaires

But there is a new heartwarming trend of entrepreneurship and self-help among Dalits since the liberal reforms in India, especially in urban areas. A visit to the Dalit Chamber of Commerce website (see also the Facebook page) reveals slogans such as “Fight Caste with Capital” and “Be Job givers, not Job seekers” as well as a spokesperson who favorably cites the invisible hand, a la Adam Smith! This voluntary Chamber of Commerce, set up in 2003 to bring Dalit entrepreneurs together, currently has 5,000 members whose enterprises jointly boast over half a billion dollars in sales revenue. The actual number of entrepreneurs in the population is much higher.

To what do they owe their success? Fascinating new qualitative research that tracks the life stories of several of these Dalit entrepreneurs reveals a common thread. The opening up of production processes to market forces created new opportunities like never before. Starting small and scraping together resources and capital, many of these Dalits now run business empires that actually provide employment to upper caste members.

There is Thomas Barnabas who was born into a family of bonded laborers, all eight of whom lived in a one-room house. Thomas recalls being thrown out of an upper caste friend’s home as a child after eating and drinking there because he was “untouchable.” They then proceeded to purify and wash the floor where he sat and threw away the dishes from which he ate.

Thomas now owns an industrial waste recycling and disposal business that has an annual sales revenue of $2.3 million and employs 200 people (including many upper caste members) outside the city of Chennai. He strove to fulfill an unmet demand for the processing of industrial waste generated by large corporations like Samsung, Dell, and Mercedes that set up manufacturing facilities in India after liberalization.

Or there is M.M. Rao, who was just one of two children to get an education in a family of bonded laborers with eight children. His family was so poor that they could not afford to buy shoes. His mother and sister were forced to walk barefoot to work in a nearby town.

Rao now owns a group of companies that specialize in construction, especially in the telecom sector, with a sales revenue of $7.4 million in 2010 alone. He was able to use his education as a civil engineer to start a small sub-contracting business laying telephone cables for large companies after the liberalization of the telecom sector. Owing to the quality of his work as well as his business acumen, he was able to grow that small sub-contracting business into what it is today.

Sushil Patil grew up in a 200-square-foot house in a slum, and his father was a laborer in a factory where he was discriminated against for his low caste status. Sushil was able to complete his engineering degree only because his father had to request the college dean to waive the fees that they could not afford to pay. He recalls, “I can never forget my father bowing before the dean, that hit me hard.” He now owns a construction and engineering company with revenues of $45 million a year. His main business is to handle the construction of power plants for major power companies. He has friends who still live in the slum that he grew up in and hopes to construct a charitable hospital that will offer medical services free of charge to the poor.

Markets Break Down Barriers

These stories constitute but a tiny sliver of many thousands, if not more. They lead us to an interesting question: how is it exactly that markets fight social discrimination? Markets work in very different ways than the obvious and visible hand of state-driven policies. While the state seeks to outlaw and abolish caste identity by making discrimination illegal, markets work in quiet and invisible ways by making caste identity irrelevant.

Competition brings about the existence of meaningful and relevant alternatives that raise the opportunity cost of discrimination for everyone participating in the market. It is in an entrepreneur’s economic interest to hire and contract with those who have the highest marginal productivity regardless of their caste identity. For if he does not, his competitor might potentially steal away profits that he could have earned. The more open and competitive a market, the more true this holds.

Once liberal reforms were put in place, they created choice and opportunity for many like never before. Market forces unwittingly brought about economic and thus social progress for society’s poorest and most discriminated against.

But can we go as far as saying the caste system has withered away? Not at all. It is unfortunately alive and well, especially in the rural areas where 68% of the population still lives, despite its being legally “outlawed” for decades.

Can we say that discrimination melts away in a market setting? Not necessarily. Anyone is free to discriminate on the basis of caste identity, even in a market. However, the greater the economic opportunity out there, the greater the chance that the cost of discrimination will be borne by the discriminator himself, not the one being discriminated against.

This is not true under socialism. When the state has a monopoly over all production and its chosen oligarchs (employers) sell to a captive market, discriminating against a certain group of people does not have negative economic consequences for the employer, but only for the ones being discriminated against. Naysayers claim that this rise among Dalits is marginal and not representative of Dalits as a proportion to the total population of the country. Some are getting ahead, but most are still left behind.

While this may be true in terms of numbers, the fact that this has happened at all is nothing short of marvelous. It’s not a coincidence that there were no Dalit millionaires emerging under socialism. It is a direct consequence of the underlying institutional setting. The Dalits exemplify the theory of the so-called poverty trap: being locked into a low-income equilibrium for generations. And yet, given a little opportunity and choice, we see many leaving a life of poverty and social discrimination behind to become well-respected business leaders and philanthropists.

Most encouraging is the recognition among them that it is the invisible hand of the market that has been instrumental for social and economic progress in their community. It is a step in the right direction for the future of classical liberalism and its role in alleviating poverty at a time when many who are more fortunate seem to be forgetting or ignoring its importance.

References

  1. The unexpected rise of Dalit millionaires: Swaminathan Aiyar
  2. Capitalism is changing caste much faster than any human being: Shekhar Gupta
  3. Defying the odds: The Rise of Dalit Entrepreneurs: Devesh Kapur, D Shyam Babu, Chandra Bhan Prasad
  4. Capitalism’s Assault on the Indian caste system: Swaminathan Aiyar, Cato policy paper
  5. 5. Dalit Chamber of Commerce website: www.dicci.org.

Malavika Nair is an Assistant Professor of Economics in the Johnson Center for Political Economy at Troy University. She is also an associated scholar of the Ludwig von Mises Institute.

G.P. Manish is an Assistant Professor of Economics in the Sorrell College of Business and a member of the Manuel H. Johnson Center of Political Economy at Troy University.

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 authors.

Don’t Lose Friendships Over Politics – Article by Jeffrey A. Tucker

Don’t Lose Friendships Over Politics – Article by Jeffrey A. Tucker

The New Renaissance HatJeffrey A. Tucker
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Has election season always been this rough on friendships?

So many people I know are getting into Facebook fights, Twitter wars, Instagram arguments, and Snapchat squabbles. What begins as an ideological dispute ends in bitterness. People are provoking others, demanding those who do or don’t support their candidate leave their networks, cutting ties with friends and family, and all because of political differences.

I can’t even imagine what the Thanksgiving table will be like this year!

People perceive the stakes this year to be that high. To be sure, political philosophy does matter and does carry high stakes. However, the partisan struggle for the control of the state apparatus by this or that temporary manager doesn’t matter as much as election season seems to suggest. You might be being manipulated, and friendships and families are actually too precious to throw away for transient reasons.

It’s a pity to cause permanent rifts, and so unnecessary. The people who rearrange their personal relationships for the election imagine that they are taking control of their lives. They don’t seem to realize that they are actually letting strangers control their lives – strangers who care nothing for them in a system that actually seeks to divide people so it can conquer them. To permit politics to fundamentally alter something so important as friendship is to give politicians more importance than they deserve.

Trolling and Banning

Now, of course there is a proviso here. If there is someone in your network who is deliberately trolling you, harassing you, and goading you to respond, the best possible response is to block them. Not talk back. Not engage in a tit for tat. Just quietly block, without drama or announcement, much less denunciation.

Most public people I know have blocked as many as one hundred plus people over the past year, simply because this election season has been so contentious, with the alt-right and alt-left (who oddly agree on so much) battling it out on social media. Blocking is the far better path than engaging them. Vicious back and forths on the Internet can be life-consuming and draining. People who are trying to do that to you deserve exclusion from your conversation circle.

Apart from these cases, it strikes me as pointless to hurl someone out of your life because of political differences.

First, by denying yourself access to different points of view, you risk isolating yourself from a critic who might teach you something you need to know, maybe about anything in life, but maybe even about politics.

Second, talking to people with different opinions keeps you making sense and speaking in a civil way, addressing others in a way that could persuade them.

Third, and most critically, to isolate yourself, hate others for their views, and regard people with different points of view as less deserving of dignified treatment, plays into exactly what the political system wants for you to do.

But Aren’t They Aggressors?

A counter to my point was offered by a friend of mine last year. Speaking as a libertarian, he said, he regards anyone who supports some government action – even just casually and without much thought – as wittingly or unwittingly contributing to an opinion culture that supports rising political violence. The only friends he believes deserve the time of day from him must hold steadfastly to his voluntarist perspective, else he regards them as a direct threat to his life and liberty.

Now, this strikes me as vastly too severe. The truth is that most people who support some government action do not regard themselves as violent people. They believe that they are favoring something that is good for others, perhaps fostering the better life for the community.

For example, if a person favors higher spending on public education, they believe that they are pushing for policies that are good for others, not calling for violence against taxpayers to support unworkable programs. How can you possibly persuade them otherwise if you cut off all ties?

And it’s not just libertarians who can be this way. A good friend of mine was a casual lefty and, like most from his tribe, he was dead serious about the issue of climate change. I had no idea until the subject came up over coffee. I expressed some doubt that the science was truly settled concerning all causes and effects, solutions, costs and benefits, and so on. I was actually very measured in my comments, but somehow they caused him to blow up, call me a science-denying, tin-foil-hat-wearing capitalist apologist, and then actually leave the conversation. And that was it.

I was stunned. I was merely disagreeing with him, however cautiously. But somehow, he had come to believe that anyone who disagreed with him bears some responsibility for the rising sea levels, the melting of the polar ice caps, and the gradual disintegration of the planet, even though I’ve written very little on the topic at all.

He was letting politics control his life and even determine his friendships. Both of us are spiritually poorer as a result of this friendship loss.

And consider the toxic effect the rising politics of personal identity – on the left and the right – are having on the ability of people to find value in each other. Imagine how you would make me feel if you believed my whiteness represents a continuing stain on the world order. There is no chance for any kind of engagement; after all, I cannot change my race. Or what if I believe your blackness or gayness or atheism or whatever is leading to demographic or cultural destruction – how can we possibly be civil to each other? The politics of identity is causing precisely these sorts of irrational and pointless splits among us.

What Is the Point of Friendship?

What the libertarian and the lefty I mentioned above do not realize is that they are guilty of the same error of allowing politics to invade the conduct of their lives and determine the conditions of their personal happiness. Once this kind of thing starts, there is truly no end to it.

Must everyone agree with you on every jot and tittle of your ideology to be your friend? Must there be zero tolerance for even the slightest difference in outlook, priority, application, and goal of your particular political outlook? In other words, must all your friends believe exactly as you believe?

If this is your perspective, you might consider: there is not much point to being friends and engaging in conversation with someone who has the exact same view on all things that you have. It seems rather boring. Might as well stay home and reflect on your own infallibility.

I like to think of friendship much the way we think of economic exchange. In economics, goods and services do not exchange in the presence of perfect sameness. They exchange because each party to the exchange believes himself or herself will be better off than he or she was before the exchange. It is only in the presence of unequal expectations that exchange becomes mutually rewarding.

It is the same with friendship. We need to hear different points of view. We need the insights of others. Even if we don’t accept them in total, we can still hope to understand people and the world better by considering what others have to say – with sincerity, warmth, and honesty. In other words, friendships like this help us have an open mind and keep us all humble and teachable.

Candidates Will Betray You

Neither is it a good idea to give up a friendship based on loyalty to a particular candidate. The top two contenders for the presidency have held many different and conflicting views on a huge range of political issues, from taxation to immigration to war. These people are wired to be adaptable based on the polls. To follow one or the other all the way to the point that it affects your associations is to risk compromising your own intellectual integrity.

Neither is worth that.

One of the great tragedies of politics is that it can take people who in real life would be peaceful and loyal and loving friends and turn them into bitter enemies. I’m always struck by this when I see a political rally, with face offs between backers and protesters. What exactly is gained by this? If you put these same people in a shopping mall or movie theater or restaurant, they would have every reason to get along and no reason to be screaming obscenities at each other.

We should hold on to that realization. Each of us is a human being with feelings, hopes, dreams, and a vision of a life well-lived – every single person, regardless of race, religion, gender identity, or ideology. Politics should change nothing about that.

If we long for a better world of mutual understanding and peace, one way to help achieve it is to live as if it already exists. Above all, that means never letting politics get in the way of rewarding human relationships.

Jeffrey Tucker

Jeffrey Tucker

Jeffrey Tucker is Director of Content for the Foundation for Economic Education and CLO of the startup Liberty.me. Author of five books, and many thousands of articles, he speaks at FEE summer seminars and other events. His latest book is Bit by Bit: How P2P Is Freeing the World.  Follow on Twitter and Like on Facebook. Email. 

This article was originally published on FEE.org. Read the original article.

Bring Back Classical Feminism – Article by Eileen L. Wittig

Bring Back Classical Feminism – Article by Eileen L. Wittig

The New Renaissance HatEileen L. Wittig
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As a college-educated, employed young woman with Opinions, my conversations and social media posts should be filled with angry tirades against The Oppressive Male and strong words demanding Women’s Rights, preferably at the expense of Men’s Rights. Right?

How sexist of you to assume so. Or it would be, if third-wave feminism hadn’t declared that anyone without those opinions is himself (or herself, to be fair) sexist.

Flipping the Tables

Feminism, as with all movements, has become more and more radical with each wave. Members see themselves go from -5 to 0 to break even, and they decide they want to try to get to +5. Sometimes this escalation is good; or, at least, not harmful. But when it progresses to the point where it commits all the wrongdoings it was originally meant to protest, it becomes a problem.

Feminism has gone from being a movement for equality, to a movement for supremacy. What was feminism, originally? It was a movement that advanced “the radical notion that women are people”: individuals just as deserving of life, liberty, and property as men.

What does feminism mean, now? It is a movement that advocates the radical notion that men are lesser than women as people; that men are less deserving of life, liberty, and property than women; that they are entitled to things just for being women; that one sex is better than the other, just ‘cause. It has gone from being a movement for equality, to a movement for supremacy.

This is stupid.

It seems counterintuitive that I, a woman, who would profit from this inequality, thinks that this is stupid. But I don’t profit. No one does. Moreover, it makes my life complicated, and the whole thing is insulting.

The Modern Manifestations

According to third-wave feminism, I should want to be paid more for simply being a woman; possibly to make up for the many years that women were paid less than men as a matter of course. But the whole idea of being given a raise or promotion based on gender is insulting to my abilities as a person (yes, and as a woman).

I do not need to be given that promotion thanks to something I can’t even help. I can earn it, thank you very much. My brain is more than capable; I don’t need the physical attributes of my double-X chromosomes to do it for me.

Third-wave feminists intimidate me. Just as men do, I get a little nervous when a woman emphatically identifies herself as a feminist to me. I spend the rest of the time waiting to be accused of hating my sex, being a barnacle on the wheel of progress, and just generally being a horrible example of womanhood.

I’m a feminist, but I’m a “classical feminist” – I am all for voting rights and equal pay and the cultural destruction of everyday sexism. I get mad when a man praises me in a voice dripping with patronage, all but resisting the urge to vocalize the implied clause, “…for a girl.”

I’m tired of the double standard we have for sexual promiscuity, one that blames and even attacks women while men are excused for “just being men.” But don’t lower your expectations for me to the standards for men – raise theirs to mine!

I ardently want real equality between the sexes. But to third-wavers, that often does not make me feminist enough.

Third-wave feminists intimidate men, too. That’s the point. But then what happens? Men stop stepping up. They back off, they stop trying, they become enfeebled. Suddenly humanity’s “other half” becomes less productive, less interesting, and more pathetic. Women, feminists included, then have to contribute much more heavily to the economy and society to support the weaker, less productive half they created. They would hate that. So would I.

Men descending to a lower level does not raise women to a higher one: quite the opposite.

Third-wave feminism says I should hate men. I’m supposed to think they’re big, stupid oafs. I don’t. I think men are wonderful. I have a lot of close male friends who I would trust with my life if I had to. I don’t understand them all the time, but I don’t understand women all the time either. I don’t even understand myself all the time. But I don’t hate myself.

Peaceful Feminism

As Ludwig von Mises said in 1922, when my classical feminist forbears were paving the way for their radical followers, “So far as Feminism seeks to adjust the legal position of woman to that of man, so far as it seeks to offer her legal and economic freedom to develop and act in accordance with her inclinations, desires, and economic circumstances – so far it is nothing more than a branch of the great liberal movement, which advocates peaceful and free evolution.”

Fighting for women’s equality is a wonderful thing. But it only works if it’s fighting for equality, not total dominance, to the detriment of everyone else, without earning it. It’s a fine line that needs to be walked in every aspect of life. We need to get used to doing it, but it is possible.

Eileen_WittigEileen L. Wittig

Eileen Wittig is the Associate Editor at the Foundation for Economic Education.

This article was originally published on FEE.org. Read the original article.

Witness to the End of Soviet Power: Twenty-Five Years Ago – Article by Richard M. Ebeling

Witness to the End of Soviet Power: Twenty-Five Years Ago – Article by Richard M. Ebeling

The New Renaissance HatRichard M. Ebeling
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Twenty-five years ago, on August 22, 1991, I stood amid a vast cheering crowd of tens of thousands of people outside the Russian parliament building in Moscow, the capital of the Soviet Union. They were celebrating the failure by diehard Soviet leaders to undertake a political and military coup d’état meant to maintain dictatorial communist rule in the Union of Soviet Socialist Republics.

The Soviet regime had ruled Russia and the other 14 component republics of the U.S.S.R. for nearly 75 years, since the Bolshevik Revolution in November 1917 led by Vladimir Lenin and his communist cadre of Marxist followers. During that almost three-quarters of a century, first under Lenin and especially Josef Stalin and then their successors, historians have estimated that upwards of 64 million people – innocent, unarmed men, women and children – died at the hands of the Soviet regime in the name of building the “bright, beautiful future” of socialism.

Millions Dead

The forced collectivization of the land under Stalin in the early 1930s, alone, is calculated to have cost the lives of nine to twelve million Russian and Ukrainian peasants and their families who resisted the loss of their private farms and being forced into state collective farms that replaced them.

Some were simply shot; others were tortured to death or sent to die as slave labor in the concentration and labor camps in Siberia or Soviet Central Asia known as the GULAG. Millions were slowly starved to death by a government-created famine designed to force submission to the central planning dictates of Stalin and his henchmen.

Millions of others were rounded up and sent off to those prison and labor camps as part of the central plan for forced industrial and mineral mining development of the far reaches of the Soviet Union. In the 1930s and 1940s, Stalin’s central plans would include quotas for how many of the “enemies of the people” were to be arrested and executed in every city, town and district in the Soviet Union. In addition, there were quotas for how many were to be rounded up as replacements for those who had already died in the GULAG working in the vast wastelands of Siberia, northern European Russia and Central Asia.

By the 1960s, 1970s, and early 1980s the Soviet system had become increasingly corrupt, stagnant, and decrepit under a succession of aging Communist Party leaders whose only purpose was to hold on to power and their special privileges. In 1986 a much younger man, Mikhail Gorbachev, who had worked his way up in the Party hierarchy was appointed to the leading position of General Secretary of the Communist Party of the U.S.S.R.

Gorbachev’s Attempt to Save Socialism 

Gorbachev believed that the Soviet Union had taken several serious wrong turns in the past. But he was not an opponent of socialism or its Marxist-Leninist foundations. He wanted a new “socialism-with-a-human-face.” His goal was a “kinder and gentler” communist ideology, so to speak. He truly believed that the Soviet Union could be saved, and with it a more humane collectivist alternative to Western capitalism.

To achieve this end, Gorbachev had introduced to two reform agendas: First, perestroika, a series of economic changes meant to admit the mistakes of heavy-handed central planning. State enterprise managers were to be more accountable, small private businesses would be permitted and fostered, and Soviet companies would be allowed to form joint ventures with selected Western corporations. Flexibility and adaptability would create a new and better socialist economy.

Second, glasnost, political “openness,” under which the political follies of the past would be admitted and the formerly “blank pages” of Soviet history – especially about the “crimes of Stalin” – would be filled in. Greater historical and political honesty, it was said, would revive the moribund Soviet ideology and renew the Soviet people’s enthusiastic support for the reformed and redesigned bright socialist future.

However, over time the more hardline and “conservative” members of the Soviet leadership considered all such reforms as opening a Pandora’s Box of uncontrollable forces that would undermine the Soviet system. They had already seen this happen in the outer ring of the Soviet Empire in Eastern Europe.

The Beginning of the End in Eastern Europe

In 1989 Gorbachev had stood by as the Berlin Wall, the symbol of Soviet imperial power in the heart of Europe, had come tumbling down, and the Soviet “captive nations” of Eastern Europe – East Germany, Poland, Czechoslovakia, Hungary, Romania and Bulgaria – that Stalin had claimed as conquered booty at the end of the Second World War, began to free themselves from communist control and Soviet domination. (See my article, “The Berlin Wall and the Spirit of Freedom.”)

The Soviet hardliners were now convinced that a new political treaty that Gorbachev was planning to sign with Boris Yeltsin, president of the Russian Soviet Federation Republic and Nursultan Nazarbayev, president of the Soviet republic of Kazakhstan, would mean the end of the Soviet Union, itself.

Already, the small Baltic republics of Estonia, Latvia, and Lithuania were reasserting the national independence they had lost in 1939-1940, as a result of Stalin and Hitler’s division of Eastern Europe. Violent, and murderous Soviet military crackdowns in Lithuania and in Latvia in January 1991 had failed to crush the budding democratic movements in those countries. Military methods had also been employed, to no avail, to keep in line the Soviet republics of Georgia and Azerbaijan. (See my article, “How Lithuania Helped Take Down the Soviet Union.”)

Communist Conspirators for Soviet Power

On August 18, 1991, the hardline conspirators tried to persuade Gorbachev to reverse his planned political arrangements with the Russian Federation and Soviet Kazakhstan. When he refused he was held by force in a summer home he was vacationing at in the Crimea on the Black Sea.

Early on the morning of August 19, the conspirators issued a declaration announcing their takeover of the Soviet government. A plan to capture and possibly kill Boris Yeltsin failed. Yeltsin eluded the kidnappers and made his way to the Russian parliament building from his home outside Moscow. Military units loyal to the conspirators ringed the city with tanks on every bridge leading into the city and along every main thoroughfare in the center of Moscow. Tank units had surrounded the Russian parliament, as well.

But Yeltsin soon was rallying the people of Moscow and the Russian population in general to defend Russia’s own emerging democracy. People all around the world saw Yeltsin stand atop an army tank outside the parliament building asking Muscovites to resist this attempt to return to the dark days of communist rule.

The Western media made much at the time of the apparent poor planning during the seventy-two hour coup attempt during August 19 to the 21. The world press focused on and mocked the nervousness and confusion shown by some of the coup leaders during a press conference. The conspirators were ridiculed for their Keystone Cop-like behavior in missing their chance to kidnap Yeltsin or delaying their seizure of the Russian parliament building; or leaving international telephone lines open and not even jamming foreign news broadcasts that were reporting the events as they happened to the entire Soviet Union.

The Dangers If the Hardliners had Won

Regardless of the poor planning on the part of the coup leaders, however, the fact remains that if they had succeeded the consequences might have been catastrophic. I have a photocopy of the arrest warrant form that had been prepared for the Moscow region and signed by the Moscow military commander, Marshal Kalinin.

It gave the military and the KGB, the Soviet secret police, the authority to arrest anyone. It had a “fill-in-the-blank,” where the victim’s name would be written in. Almost 500,000 of these arrest warrant forms had been prepared. In other words, upwards of a half-million people might have been imprisoned in Moscow, alone.

The day before the coup began, the KGB had received a consignment of 250,000 pairs of handcuffs. And the Russian press later reported that some of the prison camps in Siberia had been clandestinely reopened. If the coup had succeeded possibly as many as three to four million people in the Soviet Union would have been sent to the GULAG, the notorious Soviet labor camp system.

Another document published in the Russian press after the coup failed had the instructions for the military authorities in various regions around the country. They were to begin tighter surveillance of the people in the areas under their jurisdiction. They were to keep watch on the words and actions of everyone. Foreigners were to be even more carefully followed and watched. And their reports to the coup leaders in Moscow were to be filed every four hours. Indeed, when the coup was in progress, the KGB began to close down commercial joint ventures with Western companies in Moscow, accusing them of being “nests of spies,” and arrested some of the Russian participants in these enterprises.

Fear Underneath a Surreal Calm

During the coup attempt Moscow had a surrealistic quality, as I walked through various parts of the center of the city. On the streets around the city it seemed as if nothing were happening – except for the clusters of Soviet tank units strategically positioned at central intersections and at the bridges crossing the Moscow River. Taxi cabs patrolled the avenues looking for passengers; the population seemed to go about its business walking to and from work, or waiting in long lines for the meager supplies of everyday essentials at the government retail stores; and motorists were as usual also lined up at the government owned gasoline stations. Even with the clearly marked foreign license plates on my rented car, I was never stopped as I drove around the center of Moscow.

The only signs that these were extraordinary days were the grimmer than usual looks on the faces of many; and that in the food stores many people would silently huddle around radios after completing their purchases. However, the appearance of near normality could not hide the fact that the future of the country was hanging in the balance.

Russians Run the Risk for Freedom

During the three days of that fateful week, Russians of various walks of life had to ask themselves what price they put on freedom. And thousands concluded that risking their lives to prevent a return to communist despotism was price they were willing to pay. Those thousands appeared at the Russian parliament in response to Boris Yeltsin’s appeal to the people. They built makeshift barricades, and prepared to offer themselves as unarmed human shields against Soviet tanks and troops, if they had attacked. My future wife, Anna, and I were among those friends of freedom who stood vigil during most of those three days facing the barrels of Soviet tanks.

Among those thousands, three groups were most noticeable in having chosen to fight for freedom: First, young people in their teens and twenties who had been living in a freer environment during the previous six years since Gorbachev had come to power, and who did not want to live under the terror and tyranny their parents had known in the past. Second, new Russian businessmen, who realized that without a free political order the emerging economic liberties would be crushed that were enabling them to establish private enterprises. And, third, veterans of the Soviet war in Afghanistan, who had been conscripted into the service of Soviet imperialism and were now determined to prevent its return.

The bankruptcy of the Soviet system was demonstrated not only by the courage of those thousands defending the Russian parliament, but also by the unwillingness of the Soviet military to obey the orders of the coup leaders. It is true that only a handful of military units actually went over immediately to Yeltsin’s side in Moscow.

But hundreds of Russian babushkas – grandmothers – went up to the young soldiers and officers manning the Soviet tanks, and asked them, “Are you going to shoot their mother, your father, your grandmother? We are your own people.” The final act of the coup came when these military units refused to obey orders and seize the Russian parliament building, at the possible cost of hundreds or thousands of lives.

Freedom! Freedom! Freedom!

On that clear, warm Thursday of August 22, that huge mass of humanity that had assembled in a large plaza behind the Russian parliament stood and listened as Boris Yeltsin told them that that area would now be known as the Square of Russian Freedom. The multitude replied in unison: Svoboda! Svoboda! Svoboda! – “Freedom! Freedom, Freedom!”

A huge flag of pre-communist Russia, with its colors of white, blue and red, draped the entire length of the parliament building. The crowd looked up and watched as the Soviet red flag, with its yellow hammer and sickle in the upper left corner, was lowered from the flagpole atop the parliament, and the Russian colors were raised for the first time in its place. And again the people chanted: “Freedom! Freedom! Freedom!”

Not too far away from the parliament building in Moscow, that same day, a large crowd had formed at Lubyanka Square at the headquarters of the KGB. With the help of a crane, these Muscovites pulled down a large statue of Felix Dzerzhinsky, the founder of the Soviet secret police that stood near the entrance to the KGB building. In a small park across from the KGB headquarters, in a corner of which rests a small monument to the victims of the Soviet prison and labor camps, an anti-communist rally was held. A young man in an old Czarist Russian military uniform burned a Soviet flag, while the crowd cheered him on.

The seventy-five-year nightmare of communist tyranny and terror was coming to an end. The people of Russia were hoping for freedom, and they were basking in the imagined joy of it.

Freedom’s Hope and Post-Communist Reality

The demise of the Communist Party and the Soviet system was one of the momentous events in modern history. That it came about with a relatively small amount of bloodshed during those seventy-two hours of the hardline coup attempt was nothing short of miraculous – only a handful of people lost their lives.

The last twenty-five years have not turned out the way that many of the friends of freedom in Russia had hoped.

Indeed, post-communist Russia saw a contradictory, poorly organized, and corrupted privatization of Soviet industry, plus a high and damaging inflation in 1992-1994; a severe financial crisis in 1998; a return to authoritarian political rule following Vladimir Putin’s rise to power in 1999; two bloody and destructive wars in the attempted breakaway region of Chechnya; widespread and pervasive corruption at all levels of government; state controlled and manipulated markets, investment, commerce, and the news media; assassinations and imprisonments of political opponents of the regime; and significant nostalgia among too many in the country for a return to “great power” status and the “firm hand” of the infamous Stalinist era. Plus, Putin’s recent military adventures in Crimea, Ukraine, and Syria.

Nonetheless, for those of us who were fortunate enough to be in Moscow in August 1991, it remains in our minds as an unforgettable historical moment when the first and longest-lived of the twentieth century’s totalitarian states was brought to the doorstep of its end. The Soviet Union, finally, disappeared off the political map of the world on December 24, 1991 with the formal breakup and independence of the 15 Soviet republics that had made up the Union of Soviet Socialist Republics.

The Soviet nightmare of “socialism-in-practice” was over.

Richard M. Ebeling is BB&T Distinguished Professor of Ethics and Free Enterprise Leadership at The Citadel in Charleston, South Carolina. He was president of the Foundation for Economic Education (FEE) from 2003 to 2008.

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.

See the original article here.

Protectionism is All Around Us – Article by Daniel Gold

Protectionism is All Around Us – Article by Daniel Gold

The New Renaissance HatDaniel Gold
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In political speak, a protectionist is someone who is against free trade. They want to protect American businesses, and indirectly American workers, from cheap labor offered abroad.

The underlying argument is that American workers require protection from competition.The underlying argument is that American workers require, or benefit from, protection from competition.

This same argument is used to restrict many other liberties.

Crusaders against immigration lament that low wage earning immigrants steal jobs from, and drive down the wages of American born workers.

Opponents of Uber and AirBnB claim that hotel owners, and taxi drivers, need to be protected from cheap competition offered in the sharing economy.

Even advocates of the minimum wage are protectionists. They feel that workers need to be protected from other workers who would offer to sell their labor at a lower price. This was evident in the first debate over the minimum wage, when white workers felt they needed protection against cheaper, African-American labor.

The minimum wage was first implemented in the United States nationally in 1931 by the Davis-Bacon act. During the debate in the House of representatives, Rep. William Upshaw (D-Ga.) complained of the “superabundance or large aggregation of Negro labor.” Rep. Miles Allgood (D-Ala.) said, “That contractor has cheap colored labor that he transports, and he puts them in cabins, and it is labor of that sort that is in competition with white labor throughout the country.”

Opposition to immigration, trade, the sharing economy, and a wage set by the market is all the same tired argument, rebranded to hide its proven failure.

It’s Always Anti-Competitive

Protectionism fails because the harms of protectionist policies are guaranteed to exceed the benefits. Any benefits transferred to the producers are passed onto the consumer in the form of higher prices. However, because less exchange takes place at a higher price, there is a deadweight loss to the economy as a whole.

Protectionism is propped up by a political system of concentrated benefits and dispersed costs that make it difficult to defeat. Imagine you own a hotel, and a bill is sitting on your legislator’s desk to ban AirBnB.

You will make it known to your legislator, that your support for him, and the support of 100 other hotel owners like you, depends on him signing the bill. Meanwhile the hundreds of thousands of consumers who are hurt by this bill, care more about other things.

The Damage Adds Up

The individual consumer may not care much about the hurt she suffers from a more expensive hotel, but it adds up. Hundreds of thousands of goods are more expensive because of tariffs or quotas. Hundreds of services become more expensive for everyone because of occupational licensing laws.

Because of the incentives within the system, this will be one of the most difficult economic problems to fix. It requires vigilance, it requires us to call our representatives while they consider protectionist laws, it requires us to vote for non-protectionist candidates. If we do all this, we can rid ourselves of the largest drag on our economy.

danielgold
Daniel Gold

Daniel Gold is a student at Carleton College.

This article was originally published on FEE.org. Read the original article.

Our Media-Driven Epistemological Breakdown – Article by Bill Frezza

Our Media-Driven Epistemological Breakdown – Article by Bill Frezza

The New Renaissance HatBill Frezza
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How do we know what we know? Philosophers have pondered this question from time immemorial. Julian Jaynes, in his classic book, The Origin of Consciousness in the Breakdown of the Bicameral Mind, speculates that before the development of modern human consciousness, people believed they were informed by voices in their heads. Today, an alarming number of people are responding to voices on the Internet in similarly uncritical fashion.

As Jesuit scholar John Culkin pointed out in his seminal 1967 Saturday Review article, “A Schoolman’s Guide to Marshall McLuhan,” “We shape our tools and, thereafter, they shape us.” Examining history through this lens, one can identify seven great epochs in mankind’s intellectual and social evolution.  Each is characterized by the way a new technology changed not only how we think about the world, but our actual thought processes. These are:

1) Spoken language, which first led to the primacy of mythology;

2) Written language, which bequeathed to us holy books and the world’s great religions;

3) The printing press, which spread literacy to the elites who went on to birth the nation state, the Reformation, the Enlightenment, and the U.S. Constitution;

4) The telegraph, which transformed pamphlets and broadsheets into modern newspapers, whose agenda-setting influence goaded America to “Remember the Maine” and become an imperialist power;

5) Radio, which placed broadcast propaganda at the service of central planners, progressives, and tyrants;

6) Television, which propelled the rising tide of the counterculture, environmentalism, and globalism; and

7) The Internet, a nascent global memory machine that puts the Library of Alexandria to shame, yet fits in everyone’s pocket.

Reason’s primacy is a fragile thing.

At each transition, the older environment and way of thinking does not disappear. Rather, it adopts an extreme defensive crouch as it attempts to retain power over men’s minds. It is the transition from the Age of Television to the Age of the Internet that concerns us here, as it serves up an often-toxic brew of advocacy and click-bait journalism competing to feed the masses an avalanche of unverifiable information, often immune to factual or logical refutation.

Rational epistemology holds that reason is the chief test and source of knowledge, and that each of us is not just capable of practicing it, but is responsible for doing so. Reason flowered when the Enlightenment overturned the ancient wisdom of holy books, undermining the authority of clerics and the divine right of kings. Wherever reason is widely practiced and healthy skepticism is socially accepted, error becomes self-correcting (rather than self-amplifying, as under a system based on superstition), as new propositions are tested, while old propositions get reexamined as new facts come to light.

So now that the voices have returned to our heads, we are inadequately prepared to defend against them.

Yet, reason’s primacy is a fragile thing. As increasingly potent electronic media confer influence on new voices, formerly-dominant media and governing elites fight a rearguard action to regain their status as ultimate arbiters of knowledge and what matters. Goebbels proved that a lie repeated loudly and frequently in a culture that punished skepticism became accepted as truth. We all know how that turned out.

Revulsion at the carnage of the Second World War crested with the counterculture revolution driven by the first TV generation. By the time the dust settled, its thought leaders had grabbed control of the academy, reshaping it along postmodern lines that included an assault on language that critics dubbed political correctness. This was intentionally designed to constrain what people can think by restraining what they can say. The intention may have been to avert a repeat of the horrors of the 20th century, but the result was to strip much of the educated populace of the mental tools needed to ferret out error.

So now that the voices have returned to our heads, we are inadequately prepared to defend against them. Digitally streamed into every nook and cranny of our ubiquitously connected lives, these voices are filtered by our own self-reinforcing preferences and prejudices, becoming our own in the process. The result is an ongoing series of meme-driven culture wars where the shouting only gets louder on all sides.

So we come back to the question: How do we know what we know?

What causes crime? Is autism linked to vaccines? Should GMOs be banned? Is global warming “settled science”? These are more than factual questions. Responses to them signal identification with an array of ever more finely differentiated identity groups set at each other’s throats. For those who wish to divide and rule, that’s the whole point.

In a cruel irony, this global outbreak of media-induced public schizophrenia has even empowered jihadists bent on taking the world back to the 10th century using the idea-spreading tools of the Internet to challenge a Western Civilization rapidly losing its mojo.

So we come back to the question: How do we know what we know? At the present time, we don’t. And therein lies the problem.

Bill Frezza

Bill Frezza is a fellow at the Competitive Enterprise Institute and the host of RealClear Radio Hour.

This article was originally published on FEE.org. Read the original article.

The Two-Party Crackup Could Be Upon Us – Article by Stephen Weese

The Two-Party Crackup Could Be Upon Us – Article by Stephen Weese

The New Renaissance HatStephen Weese
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Imagine living in a world where there are only two choices. Chocolate or vanilla. Hot or cold. Light or darkness. There are no in-betweens. No “shades of gray.” You must explain everything as a “yes or no” dichotomy. On or off. False or true. This binary reality leaves little room for human diversity or creativity – yet it is in this exact reality we find ourselves trapped with the US political system.

Prelude to Deception

The parties are divided and their candidates are weak.It all starts with a sociological phenomenon created due to our political election process. First Past the Post means that in our elections, winner takes all and the loser gets nothing. We are told that if we do not vote for one of the two major parties, our vote is wasted. (I mathematically analyzed this myth in a previous article.)

The concept that underlies the two party phenomenon is not only mathematical in principle, it is sociological. Duverger’s law assumes that people faced with more than two choices in a First Past the Post election will vote against the most radical or undesired opponent, instead of for the candidate they most desire. This demonstrates what is called a “negative” vote – it could be more precisely described as a vote made out of fear of the worst candidate.

Another principle of Duverger’s law is that it filters out “weaker” parties in that people will not vote for a party that has no chance of winning. This weakness is only psychologically defined; a party could appear weaker simply due to less publicity. Certainly a third party could have better ideas than the main two – but if the ideas are not heard, then no one can know about them. The purely cognitive illusion that there are only two “worthy” parties is perpetuated by lack of media coverage and the false appeal to common practice that it’s the “way things always have been done.”

The simple truth is, Duverger’s law depends on the psychological basis of fear and ignorance. Without these factors in society, the mathematical differences would disappear.

The Two Major Parties are Weak

People only think of politics as “right” or “left” because this is all they have ever known.At this point, the two major candidates for election, Donald Trump and Hillary Clinton, have historically high negative numbers. In fact, the two frontrunners have the highest unfavorable ratings since those numbers have been tracked: Trump is net negative 33, and Clinton negative 21.

More voters see these candidates in an unfavorable light than a favorable one. This would be a perfect time for the rise of a third party, even according to Duverger’s law. It only takes a cursory look at the news to see the large anti-Trump movement among major Republicans as well as the staunch Sanders wing of the Democratic party. The parties are divided and their candidates are weak, as shown by the polls above.

The Electorate Is Polarized

If you have the feeling that in the last decade partisan politics has become more extreme and vitriolic you’d be correct – Pew research has been tracking this phenomenon. Both the extremity of Democratic and Republican views have increased, as well as dislike and intolerance for the “other” party. At this point, 92% of Republicans are to the right of the median Democrat, and 94% of Democrats are to the left of the median Republican.

There are double the amount of pure liberals and conservatives than a decade ago, and the fear of the opposing party has doubled as well. Twice as many people think that the alternate party threatens the “nation’s well-being.”

If people could overcome the fear of the “worst” candidate and voted for what they believed in, the facade would begin to crumble. This polarization affects people’s choices of where to live, shop, and travel, and even goes to the extent of opposition to a family member marrying someone of the opposing party. The Pew study also shows that those on the extreme ends of the spectrum are the most politically active – writing letters, posting on social media, travelling to political events (though this is hardly surprising.) The effect of this of course is that these parties are represented more by their extreme elements.

This polarization also results in one-dimensional thinking. People only think of politics as “right” or “left” because this is all they have ever known. As humans, are we only one-dimensional? Aren’t there more ways to look at solving the problems of a nation than just left and right?

Most of us are trapped in this one-dimensional illusory world, like a train stuck on a single track. The mere idea that we could travel in a completely different direction is a foreign concept. Even a middle-school student can tell you that we live in a world with three dimensions, that we can travel in an infinite variety of paths. Yet we find ourselves confined to this oversimplified model of reality that goes counter to our interests and only allows us choices that leave most dissatisfied.

Majority in the Middle

Another effect of this polarization is that moderate Americans find themselves in the middle of this extremism. Most voters do not view the other party as a threat to the nation and are not 100% liberal or conservative in their views. There are actually more people in the middle, yet they find themselves forced to choose to side with one extreme or the other. In 2014, the “mixed” electorate (holding views from both sides) was 39%.

There are less of them now, due to extremism, yet this 39% in the middle is enough to completely take over an election, if they only had a different option to choose from. Unfortunately, the Pew data also shows that the people in the middle are less likely to vote and participate in the election process. Duverger’s law is working here because these moderates do not know that they are a huge bloc that could elect a moderate candidate with ease.

Overcoming Ignorance and Fear

We live in the age of new media – a social movement can begin online without the backing of a major television or news network. As we have seen, voting tendencies in our system are predicated on fear of a radical candidate as well as ignorance of third-party platforms or even their existence. This is the one-dimensional illusion we live in. If we continue to be more polarized, more and more of the electorate will hate the other half.

If nothing stops this progress, those in the middle will be forced to choose a side as the tolerance for opposing views decreases. Others could stand up and speak and become a driving force pulling opinions back toward some sense of centrism – or even better, they could propose ideas outside of the traditional “left vs. right” paradigm.

The truth is, if people could overcome the fear of the “worst” candidate and voted for what they believed in, the facade would begin to crumble. If the media and others covered third parties more, unaligned voters – for example, people who believe in peace and freedom – would have a new incentive to participate and give a positive vote.

Fortunately, we now live in the age of new media – a social movement can begin online without the backing of a major television or news network. This election is the most opportune time for this to happen given the record negative views of both candidates. Thus it behooves the unaligned voter to find her or his voice in this election. If these voters together decided that “enough is enough” and realized that they are actually the most powerful voting bloc, they could simply say “no” to the two major parties – and nothing could stop them.

Stephen_WeeseStephen Weese

Stephen Weese has an undergraduate degree in Computer Science from George Mason University, and a Masters in Computer Information Technology from Regis University. Stephen teaches college Math and Computer courses. He is also a speaker, a film and voice actor, and a nutrition coach.

This article was originally published on FEE.org. Read the original article.

 

Playing Politics Can Be Fun until It Unleashes Hell – Article by Joey Clark

Playing Politics Can Be Fun until It Unleashes Hell – Article by Joey Clark

The New Renaissance HatJoey Clark
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Most politicians and their followers are not cynical enough about politics. They hate the players but not the game. Unlike me, they are cynical sentimentalists, i.e. they idealize politics yet are cynical towards any suggestion human beings should be set free from political control.

Though it may smack of paradox, I consider myself a hopeful cynic – hopeful in man’s spirit but not his politics. Accordingly, my political cynicism flows from my disappointed sentimentality.

Most politicians are not cynical enough about politics. They hate the players but not the game. As Oscar Wilde wrote in Lady Windermere’s Fan, a cynic is “a man who knows the price of everything, and the value of nothing” and a sentimentalist “is a man who sees an absurd value in everything and doesn’t know the market price of any single thing.” Together the two bring harmony.

Torn apart, they are blind in their own unique way, and in this way, the 2016 political season has rendered much of the American populace sightless. Some wish to present this presidential election as a clear-cut contest between cynical pachyderms and sentimental jackasses, but the truth, to steal another line from Wilde, is rarely so pure and never so simple.

As much as they will deny it, political factions are motivated by a mix of cynicism and sentimentality, sometimes within the very same individuals.

Even the most sentimental nincompoops – those who shed tears or fall into fits of hosannas upon hearing the most platitudinous political speech – turn cynical and stone-faced when confronted by their political opponents.

Even the most cynical demagogues – those who spit piss and vinegar in response to the most innocuous statements from their enemies – turn sentimental and misty-eyed in the presence of a president they love.

It seems one politico’s hopes are another politico’s fears. They appraise their enemy’s price as too high yet see absurd value in their champions.

The Donald’s Sentimentality

For example, even Donald Trump is not cynical enough about politics. Trump may very well be cynical and downright churlish towards, well, almost anyone (even babies) on any given day, but he is certainly a believer in the need for strong government leadership. Trump has, indeed, boosted his popularity by stoking the flames of resentment, but the essence of this resentment is the betrayed sentimentality of “the people.”

Trump and his supporters idealize America just as much as the next group. Holding true to a golden age image of the country, they are disappointed by an ever-changing world that continually shatters their “perfect” picture of the nation. They are cynical of what they see as “un-American,” and they have hitched their hopes to Trump’s politics to save their culture as they see it.

Thus, Trump’s slogan may not be “Burn America Down” as Democrats would have you believe, but he is certainly a flaming nationalist. His program may not be great for many people living in America, but “America” is, indeed, the ultimate standard of good and evil on the Trump train. One cannot be cynical about politics qua politics and a nationalist at the same time. No, nationalism is for the teary-eyed evangelicals and patriotic bomb throwers, Trump being the latter. But how about the former?

Enter Hillary Clinton.

Hillary’s Cynicism

Hillary Clinton, like most progressives, prides herself on her forward-looking and optimistic approach. She and her ilk apparently claim to loathe cynicism. As Senator Cory Booker said at the Democratic National Convention surrounded by a friendly mob of fellow sentimentalists, “Cynicism is a refuge for cowards.” Of course, by “cynicism” Cory, Hillary, and their do-gooder cronies mean anyone who does not wish to consent to their progressive plans to save the world. To hear them speak about peace, love, and community one would think such things were impossible without the imposition of the state.

What makes progressives so sentimental about people using state power yet cynical towards people acting voluntarily, I will never truly know.What makes progressives so sentimental about people using state power yet cynical towards people acting voluntarily, I will never truly know, but I suspect they do not trust the motives of many of their fellow men, especially not Donald Trump. Their assessment of Trump may be correct, but their appraisal of their own sentiments is utterly lacking. Their worship at the altar of state power seems to have turned them blind to the ironies of the “progressive” history and project.

For instance, of all the ways Hillary could take down Trump’s fear-mongering, she chose to say this in her acceptance speech at the Democratic Convention:“Well, a great Democratic President, Franklin Delano Roosevelt, came up with the perfect rebuke to Trump more than eighty years ago, during a much more perilous time. ’The only thing we have to fear is fear itself.’”

Yes, Hillary, how wise of you to quote a man who brought us Japanese internment camps, turned away Jewish refugees fleeing Nazi Germany, and set the price of gold based on “lucky numbers.” But, I suppose, since FDR is a demigod in the progressive civic religion, his cynicism and quackery can be overlooked, as can the ugly, cynical history of progressive policies such as the minimum wage.

Again, if only Hillary, Donald and their respective acolytes were more cynical about politics qua politics, we would all be better off. But what about the most cynical bunch in American politics today, the alt-right meme team?  How could a group of folks who “pretend” to be Nazis ever be helped by more political cynicism?

And why would one ever want to pretend to be a Nazi anyway?

Pretend Nazis Need Cynicism Too

Enter Charles Bukowski:

“At L.A. City College just before World War II, I posed as a Nazi. I hardly knew Hitler from Hercules and cared less. It was just that sitting in class and hearing all the patriots preach how we should go over and do the beast in, I grew bored. I decided to become the opposition. I didn’t even bother to read up on Adolf, I simply spouted anything that I felt was evil or maniacal.

However, I really didn’t have any political beliefs. It was a way of floating free.”

This is how Bukowski’s short story, “Politics”, begins, and his reasons for his posing as a Nazi – ”boredom” and “floating free” – sound quite similar to those prescribed to the alt-right “meme team” by that frivolous troll, Milo Yiannopoulos, and his colleague, Allum Bokhari, in their crash course on the alt-right:

These young rebels, a subset of the alt-right, aren’t drawn to it because of an intellectual awakening, or because they’re instinctively conservative. Ironically, they’re drawn to the alt-right for the same reason that young Baby Boomers were drawn to the New Left in the 1960s: because it promises fun, transgression, and a challenge to social norms they just don’t understand.

If this parallel continues into the future, things will probably not end well, at least not with mere lulz.

As Bukowski later relays in the story, his Nazi antics earned him disciples, but his acolytes took the whole charade much more seriously than he. After stumbling upon a Communist speaker outside of campus, one of his followers approached him with a bag of rotten tomatoes. Upon being told to put the tomatoes away, his follower said, “I wish they were hand grenades.”

“It occurred to me suddenly that my disciples hadn’t been listening to the speaker, or even if they had been, nothing he had said would matter,” writes Bukowski, “Their minds were made up. Most of the world was like that… I lost control of my disciples that day, and walked away as they started hurling their rotten tomatoes.”

The alt-right don’t want to get rid of the establishment; they want to replace it.I must hand it to the alt-right trolls – they are quite creative and prolific and, at times, hilarious in their cynical pose – but there is a difference between political cynicism and a general cynicism about the culture at large. One must be careful not to let those rotten tomatoes turn into hand grenades. Sadly, the alt-right purveyors of “ironic bigotry” may think they are simply having a little cynical fun, but their actions seem directed only towards the political establishment without rejecting the whole paradigm of political action.

They don’t want to get rid of the establishment; they want to replace it. In particular, if one is to fight, say, the excesses of political correctness for the sake of liberty (a worthy endeavor in my opinion,) the focus should be on neutering the “political” aspects of that equation rather than letting basic human decency fall into the abyss of reactionary nonsense or a babyish nihilism, all the while serving the ends of just another political faction.

Politics Pollutes Culture

Yes, politics may often be downstream from culture as Andrew Breitbart said, but it can also pollute the river of culture if allowed to become too permeating. Once politics comes to define a people, all that is left is an impending battle over whose culture will be imposed through the power of the state. In the face of such a looming war, it is understandable that people often despair only to hurl invective and material threats towards “the others” seen as the source of their angst. In such a world dominated by political power, it is understandable that politicos see anyone who is cynical about their projects as a threat to human solidarity.

But the true root of the problem is not the other nor political cynicism; it is the lust to dominate and control others within each of us. The tyrant in you is the tyrant in me, and if we are not careful, even our so-called reactions against tyranny can mutate into movements to destroy something beautiful for destruction’s sake.

What if we all become hopeful cynics – cynical of man’s lust to dominate his fellows, yet lovers of man all the same? That said, we should recognize even our enemies’ capacity for creative action and fellowship in their darkest hours. If such qualities can provide solace, even in sardonic and sadistic forms, to a select few in their most despairing moments, what can creative action and fellowship provide when we direct our cynical pose toward politics in general instead of just our opponents? What if we all become hopeful cynics – cynical of man’s lust to dominate his fellows, yet lovers of man all the same?

If I am being honest, I do not know what this pose would bring about, but this is exactly why hope is a virtue. Bukowski might disagree; he wrote in his short story, “I promise you, this will hardly be the last war. As soon as one enemy is eliminated somehow another is found. It’s endless and meaningless. There’s no such thing as a good war or a bad war.” Maybe he’s right, and the war of all against all is inevitable, but I hope not. Nor do I wish to save the world. That is much too idealistic. As our dirty old man poet says elsewhere in his novel Women, “You begin saving the world by saving one man at a time; all else is grandiose romanticism or politics.”

Maybe, just maybe, each of us can first save ourselves and then others, one by one, with a hope in the uncertain beyond for man’s society if not his politics.

Joey ClarkJoey Clark

Joey Clark is a budding wordsmith and liberty lover. He blogs under the heading “The Libertarian Fool” at joeyclark.liberty.me. Follow him on Facebook.

This article was originally published on FEE.org. Read the original article.

How Not To Waste Your Vote: A Mathematical Analysis – Article by Stephen Weese

How Not To Waste Your Vote: A Mathematical Analysis – Article by Stephen Weese

The New Renaissance HatStephen Weese
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During this especially contested election, a lot of people are talking about people “wasting” or “throwing away” votes. However, many people who say this do not have a complete grasp of the full mathematical picture – or worse, they are only mentioning the part that supports their position. First let’s define what a “wasted” vote is.

Mathematical Definition of Wasted Votes

A wasted vote is a vote that provides no determination or effect on the final outcome of the election. According to Wikipedia: “Wasted votes are votes cast for losing candidates or votes cast for winning candidates in excess of the number required for victory. For example, in the UK general election of 2005, 52% of votes were cast for losing candidates and 18% were excess votes – a total of 70% wasted votes.”

There are two kinds of wasted votes that mathematically have no effect on the final election:

  1. Votes cast for candidates who did not win
  2. Excess votes cast for winning candidates

Clearly, neither of these kinds of votes statistically affect the election. However, many arguments only mention the first type without mentioning the second. Mathematically and logically, both categories are ineffectual votes.

First Past the Post

The value of your vote is what you give it. Should you spend it on a candidate you don’t believe in?The United States, along with several other nations, uses the First Past the Post (FPTP) or “winner take all” election. This method is defined as “the candidate who receives more votes than any other candidate wins.”

This is one of the reasons that many people mention wasted votes – our system creates that result. Sociologically speaking, the FPTP system tends to favor a two-party system. The French sociologist Maurice Duverger created “Duverger’s Law” which says just that.

The Electoral College

For U.S. Presidential elections, a state-by-state system is used called the Electoral College. Each state gets a proportional amount of electoral votes which are then used to find a majority for president. Interestingly, what happens in each separate state is a smaller FPTP election, followed by a counting of electoral votes.

The Electoral College is slightly different from a pure FPTP system because it requires an actual number threshold (currently 270 electoral votes) for a candidate to win instead of a simple majority of the votes.

We can sum things up as follows:

  1. States hold “winner take all” FPTP elections for electoral votes
  2. Electoral votes are counted
  3. The winner must have 270 electoral votes
  4. If there is no candidate that reaches it, the House of Representatives chooses the president

These distinctions are important, because they can change the math and the concept of the “wasted” vote phenomenon.

Wasted Votes in Presidential Elections

The general concept that is proposed by many is that you must always vote for a Republican or a Democrat because you must stop the worst candidate from winning. In a sense, you are voting a negative vote – against someone – rather than for a candidate of your choice. However, this actually depends on the scenario of the vote. Let’s look at some examples.

Bush vs. Gore: 2000

People voting out of fear of the worst candidate is a self-perpetuating cycle. Let’s examine a common example used in this discussion.

Following the extremely close 2000 U.S. presidential election, some supporters of Democratic candidate Al Gore believe that one reason he lost the election to Republican George W. Bush is because a portion of the electorate (2.7%) voted for Ralph Nader of the Green Party, and exit polls indicated that more of these voters would have preferred Gore (45%) to Bush (27%), with the rest not voting in Nader’s absence.

The argument for this case is even more pronounced because the election was ultimately decided on the basis of the election results in Florida where Bush prevailed over Gore by a margin of only 537 votes (0.009%), which was far exceeded by the number of votes, 97,488 (0.293%), that Nader received. (Wikipedia)

At first, this may look like a clear example of the need to vote for a major party. However, let’s break this situation down mathematically. In every single state election, Bush or Gore won. There were millions of mathematically wasted votes in this election of both types.

In California, Gore won by 1,293,774 votes. Mathematically speaking, there were over one million wasted votes for Gore in this state alone. None of these excess votes could have helped Gore, since he had already mathematically won the state. The California votes didn’t matter in Florida. In fact, the votes in Florida have much more relevance than any other state.

Conclusions: Sometimes a vote for a major party winner is wasted anyway. Sometimes everything will come down to one state. However, there is no way to predict in advance which votes will be this important. If the parties knew that Florida would have been the deal breaker, then they would have acted differently. However, we simply don’t know the future well enough to predict that.

We do know that battleground states are generally more important than “safe” states for each candidate, but it is hard to know exactly which state might matter. (There are plenty of scenarios you can research online about possibly electoral outcomes, I encourage you to do so.) This leads us into our next example.

Clinton vs. Trump 2016

Let’s do some math about the state of California and our current presidential election. The average RCP poll has Hillary Clinton ahead by 22.2 percent. The registered voters in California add up to 17.7 million. Not all of them will vote, but we can use the 2012 presidential election as a predictor, where 13.2 million people voted.

Out of those 13.2 million, according to current predictions, 52.6% will vote for Clinton. However, Clinton only needs about 31% to beat Trump. The other 21% of excess votes for Clinton will be wasted. This means that approximately 3 million votes for Clinton in California will be wasted. Now, this is only a mathematical model, but we have several reasons to believe in it.

  1. California has a history of being a heavily Democratic state
  2. Polls usually swing within a single digit margin of error
  3. 21% is quite a large margin of leeway

Even if the polling changes significantly, we are still looking at millions of wasted Clinton votes in California.

Now let’s throw Jill Stein into the math. As part of the Green Party, she is to the left politically of Hillary, so we will assume that votes for her will be taken from Clinton’s pool. (Though this isn’t always a true assumption, as we will see later.) Right now she is polling at around 4%, but we could even give her 5%. If you take away 5% from Hillary’s margin of 22.2%, that leaves a huge margin of 17.2%: still millions of votes. The takeaway from this: you can safely vote for Jill Stein in California without fear of changing the state election results. Therefore, it will not affect the national vote either.

Since we have the Electoral College, your votes will have no influence beyond the state to change other vote counts. Those who prefer Jill Stein can with a clear conscience vote for her, since it will make no difference mathematically. Later we will look at the ethics of voting as it relates to this math.

Mathematical Importance of a Single Vote

There are a few theories on voting power calculations; we will look at two of them here. John F. Banzhaf III created a probabilistic system for determining individual voting power in a block voting system, such as the Electoral College. According to his calculations, because of differences in each state, it gives different voters different amounts of “voting power.”

A computer science researcher at UNC ran the Banzhaf power numbers for the 1990 U.S. Presidential election and determined that the state of California had the voters with the highest power index: 3.3. This index is measured as a multiple of the weakest voting state, which was Montana (1.0 voting power).

A newer method of measuring voting power was created by a research team from Columbia University using a more empirical (based on existing data) and less randomized model. They concluded that the smaller states had more mathematical voting power due to the fact that they received 2 votes minimum as a starting point. This model tends to generate smaller multipliers for voting power but more accurately matches empirical data from past elections.

Using these power ratings as a guide, we can estimate an estimated maximum voting power for each vote. We will be making some assumptions for this calculation.

  1. The minimum voting power multiplier is 1
  2. The highest multiplier from both models will be used as a maximum

Starting numbers

In the United States there are currently 218,959,000 eligible voters with 146,311,000 actual registered voters. In the 2012 Presidential election, 126,144,000 people actually voted. This is our voting pool.

Each vote, legally speaking, has the same weight. So if we start from that assumption, taking into account a probable amount of voters (126 million), the power of your vote is:

1
_____

126 million

This is: 0.0000000079 or 0.00000079%. That is the weight of your vote mathematically. Now we can multiply it by the highest power index to show the highest potential of your vote. Our California historical data from 1990 shows a 3.3 index, but to be conservative we will raise it to 4. So now the power is: 0.00000317%

Using probabilistic equations and analysis, this is the result. This is how powerful your vote is in the U.S. Presidential election is if you end up in the most heavily weighted state.

Addressing Weighted Vote Fallacies

As we have seen, many people argue that we should not “waste” votes, yet many millions of votes for the winner are wasted every year. It is difficult to predict whether a vote will end up in either wasted category. We’ve also seen past and possible scenarios where voting third party or major party can have no influence on the final election.

Fallacy 1: Treating Single Voters as One Block

A false assumption that people make about voting is treating a single vote as a block. For instance, let’s use our current election again as an example.

Someone insists that if you do not vote for Hillary, then you are helping Trump to be elected. (The reverse of this can also apply here.) You claim that you wish to vote for Gary Johnson, the Libertarian candidate. You’re then told that the current national poll with all parties shows that Johnson is polling at 7%, which is less than the difference between Clinton (39%) and Trump (40%). Therefore, you must vote for Clinton to make up that difference.

There are several problems with this proposal. It does not take each state into consideration. It assumes all Gary Johnson supporters have Clinton as their second choice. And it treats your single vote as the entire 7%.

As we have seen, the current picture in California shows that Clinton has a huge margin. If this voter lived in California, a vote for Gary Johnson would not help Trump and also would not hurt Hillary, even if the entire 7% voted for Johnson. Anyone who says it is your duty to vote negative in this scenario does not know the math of this state.

This also assumes that all Johnson votes would choose Hillary as the second choice, but given that Libertarians take some platform elements from both the Left and the Right, this assumption would be highly unlikely. The same would go for Trump.

When people look at the 7% and tell you that you must vote a certain way, it is assuming you will somehow influence the entire 7%. However, we have seen that you are just one voter, and that your voting power is a very tiny number by itself. You cannot be entirely responsible for a candidate winning or losing with your single vote. In theory, it’s mathematically possible for one vote to decide an election, but given there are an exponential number of possible scenarios with millions of voters (imagine raising a few million to an exponent), it’s astronomically unlikely, especially if you live in a non-battleground state.

It’s also astronomically unlikely that all 7% (8,820,000 people) would vote for who they polled for. Even if you gave each voter a 99% chance of voting for who they polled for, the chance that all of them would vote the way they polled is (0.99) to the power of 8,820,000, which is less than 0.000000000000000000000000000000000000000000000000001%

Individuals are not entire blocks of voters, and it’s problematic to treat them as such.

Fallacy 2: Third Party Votes Have No Value

If enough people vote their conscience and vote for what they believe in, things can change.On the surface, this might appear to be true. A third party candidate for President has never won an election. We also have Duverger’s law that states our FPTP favors two party systems. However, it is mathematically possible for a third party to win, and there are also other measurable gains for voting for a third party.

Part of this fallacy is the “winner take all” perspective. In other words, if you don’t win the presidency, you’ve wasted your time.

However, there are many benefits of voting third party, even for president. It makes a political statement to the majority parties. It helps local politicians of that party in elections. It can help change platforms to include third-party elements. And it provides recognition for the party among voters as a viable alternative.

Third party candidates can and have won local and state elections in the past. This is a fact.

In 1968, George Wallace ran as a third party option for President. He received nine million votes and 45 electoral votes. Though he did not expect to win the popular vote, one of his aims was to force the House of Representatives to choose the President by denying either candidate the 270 electoral votes needed to win – and he nearly succeeded. Since our system is not a true First Past the Post, but a hybrid, this kind of situation is possible. In fact, calculations have been done showing that Gary Johnson could in fact force that situation this year. It is very unlikely, but it is possible.

Regardless of his loss, the impact of the Wallace campaign was substantial. He was able to affect the dialogue and events of that election significantly. (This is meant in no way as an endorsement of George Wallace’s political positions.) If his supporters had mostly voted for a majority party, his impact would have been less significant.

In most scenarios given by the “wasted” vote crowd, all of the votes that are considered are ones from the current voting electorate. Yet we have seen from figures previously mentioned that over 50 million eligible voters are not registered. Even among registered voters, almost 20 million didn’t vote in the last election. These potential votes are never placed into the scenario.

The simple truth is, there are millions of uninterested voters out there, yet candidates are not inspiring them to vote. If candidate X or Y were truly worthy of votes, would not some of these voters decide to register? And another question, would it be easier to get a third party voter to choose a majority candidate, or a non-voter? These are not mathematical questions, but they are logical. The fact is, with this many votes at stake, if these non-voters could be encouraged to register, they would undoubtedly change the election as they make up one-third of total eligible voters.

Ethics and Math

It has been demonstrated that the potential individual power of a vote is mathematically very small. It also has been shown that wasted votes can be cast for the winner of an election as well as the losers, as well as demonstrating that it is sometimes hard to predict exactly which vote will be wasted. Given this information, where do we derive the value of a vote?

It’s hard to get it purely from the math or practicality. In fact, it would seem our single vote is of very little import at all. Therefore, we must find meaning and value for our votes outside of the math.

Certainly, the Founders never envisioned an endless cycle of US citizens voting for the “lesser of two evils.”Certainly, the Founders never envisioned an endless cycle of United States citizens voting for the “lesser of two evils,” as the argument is often presented. The idea was for free and open elections where the people’s voice would be heard. It was simple: the candidate who best represented your interests earned your vote.

Your vote is, therefore, an expression of yourself and your beliefs. Your vote has power as a statement. People voting out of fear of the worst candidate is a self-perpetuating cycle. If no one ever has the courage to vote outside of the two main parties, it will never be broken. However, if enough people vote and it shows in the total election count, it will give cause for us to reconsider and embolden even more to vote outside of the two parties.

Yes, our current electoral system has some serious mathematical flaws. It simply does not encourage people to vote for their conscience – but we have seen that things are not as bad as we would be led to believe by some. The true value of a vote is in the people.

The Value of Your Vote

The value of your vote is what you give it. Should you spend it on a candidate you don’t believe in? Should it be an exercise in fear? It’s up to you. It is my hope that these mathematical calculations will bring you freedom from the idea that only majority party votes matter. A vote is a statement, a vote is personal, a vote is an expression of your citizenship in this country. If enough people vote their conscience and vote for what they believe in, things can change.

If you are already a staunch supporter of a major party, then you should vote that way. This paper is not against the major parties at all – but rather against the concept that votes somehow “belong” to only Democrats or Republicans. Votes belong to the voter. There has never been a more important time to vote your conscience.

Stephen_WeeseStephen Weese

Stephen Weese has an undergraduate degree in Computer Science from George Mason University, and a Masters in Computer Information Technology from Regis University. Stephen teaches college Math and Computer courses. He is also a speaker, a film and voice actor, and a nutrition coach.

This article was originally published on FEE.org. Read the original article.