Browsed by
Tag: economy

Doing a Happy Jig Over the Sand Dune Lizard Decision – Article by Marita Noon

Doing a Happy Jig Over the Sand Dune Lizard Decision – Article by Marita Noon

The New Renaissance Hat
Marita Noon
June 19, 2012
******************************

The American public has awakened and is acutely aware of the damage environmentally driven policy is doing to America’s citizens and economy. The decision not to add the sand dune lizard to the list of species protected under the Endangered Species Act, announced Wednesday by the US Fish and Wildlife Service (FWS), was precipitated by public involvement as the citizens of Texas and New Mexico wrote the FWS, showed up at public rallies, and spoke up at official hearings in opposition to the listing. The listing of the sand dune lizard had the potential annual cost of more than $35 billion to the American economy due to lost oil production alone.

Most endangered species listings are proposed and then listed with little fanfare. The public is often totally unaware the listing is possible and the negative economic consequences on the local and national economy are not considered. But this time it was different. Armed with the history of the devastating impacts an endangered species listing can have on communities and economies—such as the spotted owl and the delta smelt—New Mexico Congressman Steve Pearce drew a line in the sand and stood up for the citizens who would be impacted most by the proposed listing of the sand dune lizard. Congressman Pearce’s efforts were augmented by Texas Congressman Mike Conaway and Texas Senator John Cornyn—each deserves plaudits from the people.

In December of 2010, the FWS announced the nomination of the sand dune lizard for listing as an endangered species—a move that was prompted by a petition filed by the Center for Biological Diversity and the Chihuahuan Desert Conservation Alliance.

Ben Shepperd, of the Permian Basin Petroleum Association, explains it this way: “The Endangered Species Act in current form is being exploited by activist groups that generate income for themselves while hiding behind a pretense of protecting the environment. Suing the U.S. Fish and Wildlife Service is a cottage industry for them. Regardless of the decision rendered in their manifold lawsuits, the groups receive legal fees—our taxpayer dollars—from the federal government.”

Throughout 2011, people came together. Community meetings were held and the stakeholders were engaged—even enraged. Large public rallies with hundreds in attendance took place in Roswell and Artesia, NM, and Midland, TX. News crews gave the issue national attention. Independent scientists gathered to examine the science behind the listing and found it full of flaws, assumptions, and erroneous conclusions—issuing a report, which was given to FWS.

In December 2011, when the Endangered Species Act required a “list,” “decline to list,” or “delay” decision, the FWS announced that it was exercising the “delay” option—which gave the agency six more months to study the newly presented evidence.

Concerned citizens and the oil and gas industry have been anxiously awaiting the decision.

Congressman Pearce called the decision a “huge victory for the people who have so tirelessly fought to save their jobs and their way of life.”

Secretary of Interior Ken Salazar praised the efforts of the oil and gas industry in working to preserve the lizard’s habitat through Candidate Conservation Agreements, saying they were “nothing short of historic.”

Meanwhile, environmental groups are claiming that the “Department of Interior sold out to big oil.”

The listing of the sand dune lizard had the potential to virtually shut down oil and gas development in the Permian Basin region of Southeastern New Mexico and West Texas—an area responsible for 20% of America’s domestic production. If the decision had come down on the side of listing the lizard, it may well have decimated the local economies and had the potential to raise gas prices nationwide due to reduced supply.

The publicity the proposed sand dune lizard listing attracted has, perhaps, gotten the attention of the Obama campaign—which may have influenced the outcome. After all, could he afford to hurt a major portion of the economy in a swing state just months before the election?

The sand dune lizard victory should be an example for concerned citizens everywhere—regardless of the issue. Wake up, show up, stand up, and speak up!

Celebrate while we can! The lesser prairie chicken and the jobs it may endanger are next. Without a looming election, we might not be so lucky. But then again, maybe the election will change everything.

The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great, Inc., and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). Together they work to educate the public and influence policy makers regarding energy and its role in freedom and in the American way of life. Combining commentary on energy, news, politics, and, the environment through public events, speaking engagements, and media, the organizations’ combined efforts serve as America’s voice for energy.

Dead-Tree Luddites – Article by Genevieve LaGreca

Dead-Tree Luddites – Article by Genevieve LaGreca

The New Renaissance Hat
Genevieve LaGreca
May 28, 2012
******************************

Imagine you’re living in the 15th century. You’re witnessing a revolution that will profoundly change the world. This revolution doesn’t involve swords and cannons but rather words and books. The cause of this upheaval is the most important invention in more than a thousand years: the printing press, by Johannes Gutenberg.

Within a few decades of its launch, you see the printing press transform the field of bookmaking in ways previously unimaginable. Printed books are far easier, faster, and less costly to produce than the books that had preceded them, which had to be laboriously copied, one page at a time, by hand. In the time it takes to copy one page by hand, the printing press can turn out hundreds or thousands of copies of that same page, thereby making it possible for the first time in history for almost anyone to own books.

Within a century of its creation, the printing press will spread throughout western Europe, producing millions of books, spurring the economic development of industries related to it, such as papermaking, and spreading literacy and knowledge around the world. The printing press will make possible the rapid development of education, science, art, culture — and the rise of mankind from the medieval period to the early-modern age.

Let us further imagine that not everyone in the 15th century is happy about this innovation. Unable to match the benefits of the printing press, the producers of hand-copied books are outraged. The scribes are being put out of business. The penmanship schools that train the scribes, the quill makers that supply their pens, and the manufacturers of the stools and drafting tables that literally support them are seeing a drop in sales. The hand-copied books are now priced too high to compete with the Gutenberg press, so their publishers are experiencing no growth, with no new capital coming into their industry. The sales force for the hand-copied books is also in despair, with their customers now ordering the new printed books from the Gutenberg people, and their lost income being money they can no longer put into their communities. Alas, the monopolistic monster, the printing press, is taking over.

The hand-copied-book interests complain bitterly to the Great Sages at their Hallowed Council of Justice. “Sires,” they cry, “you must stop the predatory pricing and scorched-earth policies of the Gutenberg press. It’s wiping out the competition. How can this be in the public interest?”

Fast-forward to the 21st century, and we see another revolution that is turning the book industry topsy-turvy — the transformation from printed books to electronic ones. This revolution is spearheaded by a modern-day Gutenberg, Amazon.com, the pioneer of the ebook, the Kindle device for reading it, and the online marketplace for publishing and selling it.

What Amazon has accomplished is truly amazing. With Kindle, it has eliminated the industry middlemen who come between the writer and reader of a book — from agents to publishers to distributors to wholesalers to brick-and-mortar bookstores. Kindle has also eliminated the need for a physical inventory of books, with its high printing, warehousing, and shipping costs. These innovations have resulted in far less expensive books now available to consumers. And the new marketplace of ebooks has been especially advantageous for self-publishers unable to get their books accepted through the traditional channels, who now have an avenue open to them for reaching customers directly.

The popularity of these ground-breaking innovations is enormous, with Kindle books now outselling the combined total of all paperback and hardcover books purchased from Amazon.

Without any middlemen or gatekeepers, with virtually no costs involved, and with self-marketing possible through social media and other Internet channels, electronic publishing is creating a robust market for new writers and books. For example, one novelist who was unable to find an agent or publisher has self-published two of her novels on Kindle. With her books priced at $2.99 and with a 70 percent royalty from Kindle, she earns approximately $2 per book. She is selling 55 books per day, or 20,000 books per year, which amounts to sales of $60,000 and royalties to her of $40,000. (As a simple comparison, without getting into the complexities of book contracts, this author might earn a royalty of approximately 10 percent from a traditional publisher, which would require her to achieve sales of $400,000 to earn as much money as she does self-publishing on Kindle.) Other authors are doing even better, including two self-published novelists who have become members of the Kindle Million Club in copies sold. These writers started with nothing — they were not among the favored few selected by agents and trade publishers, and they had no publicists or book tours — yet, thanks to electronic publishing, they are making a living, with some achieving stunning success.

The low pricing of ebooks, scorned by the traditional publishing interests, is the emerging writer’s new ticket of admission into the book industry. While readers may be highly reluctant to risk $25 in a bookstore to try a new writer’s hardcover work, they are buying the ebooks of new writers priced at or around $2.99 on Kindle. Writers are finding their fans and making money at these prices, and readers, judging by Amazon’s “customer reviews,” are happy with these low-cost books.

The writer-publisher in America dates back to our founding, promoting vigorous free speech and intellectual entrepreneurship. Benjamin Franklin’s Poor Richard’s Almanac and Thomas Paine’s Common Sense, both bestsellers in their day, were self-published. If the American dream is to start with nothing but one’s own talent, motivation, and hard work, and from that achieve success, then in recent times this dream was essentially closed to writers who failed to win the favor of the agents and trade publishers. Prior to the ebook revolution and online marketing spurred by Amazon, there was a stigma attached to self-publishing, despite its long and distinguished tradition in America. The major trade reviewers would not consider a self-published book, which meant that libraries and bookstores, which order based on the reviews, would not carry it. Now, ebooks are not only taking the stigma out of self-publishing but arguably making it the preferred route. Amazon has opened the avenue to pursuing the intellectual’s American dream once again.

Yet the same medieval attacks projected above against the printing press are now being launched against Amazon, with the attackers imploring the modern-day “sages” at the Justice Department to stop the new menace called Amazon.

Leading the charge back to the Middle Ages is the New York Times. Two articles appearing on the front page of its business section on April 16, 2012, illustrate what happens when the Luddites (i.e., those hostile to technological development) meet the statists (i.e., those who look to achieve their ends through government force).

“Daring to Cut Off Amazon” by David Streitfeld praises a publisher-distributor for pulling its printed books out of Amazon. (Amazon discounts not only ebooks but also the printed books it so successfully sells.) The company is Educational Development Corporation, whose CEO, Randall White, laments, “Amazon is squeezing everyone out of the business.… They’re a predator. We’re better off without them.”

One of Mr. White’s concerns was that his sales people were losing business because their customers were buying the company’s books cheaper from Amazon. Sales consultant Christy Reed comments about her local customers, “Yes they got the books for less [from Amazon]. But my earnings go back into our community. Amazon’s do not.” It apparently didn’t occur to her that by buying books cheaper on Amazon, her former customers have more money to spend in her community, and the Amazon staff who replaced her have more money to spend in their communities. But where spending does or doesn’t take place is not the main economic point. The real point is that for the same total spending in the economic system as a whole, people now obtain more books and have money left over to buy more of other things.

“Book Publishing’s Real Nemesis” by David Carr cites the recent antitrust suit brought by the Justice Department against five publishers and Apple, charging they engaged in the price-fixing of ebooks. Instead of condemning this police action against production and trade, Mr. Carr bemoans the fact that the strong arm of the law didn’t go far enough to grip the “monopolistic monolith” Amazon, which “has used its market power to bully and dictate.” Mr. Carr considers it bullying and dictating when a private company (Amazon) sets its terms, and other players (the publishers) are free to do business with it or not. But it’s not bullying and dictating when the compulsory power of the state intervenes to set economic terms and punish businesses arbitrarily?

Mr. Carr quotes Authors Guild president and best-selling author Scott Turow, who worries that the club of authors and publishers will shrink. (Really?) “It is breathtaking to stand back and look at this and believe that this is in the public interest,” complains Mr. Turow about Amazon’s success. He also wonders if Amazon will drive the price of books so low that there will be “no one left to compete with them.” Apparently the “public interest” doesn’t include the millions of customers who choose to buy the mother lode of affordable ebooks from Amazon and who may not welcome his solicitous concern over the low prices they’re paying. And apparently the “public interest” doesn’t include the fresh crop of new authors now sprouting through ebooks, without the benefit of the major publishers and lucky breaks that he had.

The Luddite tone of the attacks against Amazon rings like the following: The electric light will replace the candle. The car will replace the horse and buggy. The cure for tuberculosis will put the sanatoriums out of business. The computer will replace the typewriter.

The statist element lies in the attackers’ desire to enlist the police power of the state to stifle the competition and artificially prop up their businesses.

Granted, it may be disappointing and painful for those whose jobs are thinning out or becoming obsolete due to technological advancements, but that can’t justify government intrusion. Morality is on the side of the people engaged in voluntary trade and against those who urge the Justice Department’s encroachment into their industry. The charges levied against Amazon — as a predator, monopolist, bully, etc. — actually do not apply to a company engaged in voluntary trade, no matter how big its market share, but rather to those trying to preserve their interests through government action.

In the case of Amazon, the ones trying to restrain trade are the attackers themselves. Moreover, not only is morality on the side of Amazon, but so too are the long-run material self-interests of everyone in the economic system. Everyone working will earn money, but, thanks to Amazon and every other innovator of better products or more efficient methods of production, the buying power of the money he earns will be greater. The enemies of productive innovators are, by the same token, antisocial enemies of the general buying public.

The complaints lodged against Amazon would be harmless if the complainers could not use the government to advance their cause. But they can, through antitrust laws. These laws give the state the power to evaluate the price of a company’s product in relation to its competition and to punish companies — severely and arbitrarily — for prices deemed to be unacceptable. If a company’s price for its goods is deemed to be too low, it can be punished for being predatory and destructive of competition. If the price is deemed to be the same as its competitors, it can be punished for collusion and price-fixing. If the price is deemed to be too high, it can be punished for being monopolistic.

Using antitrust laws against the book industry poses an additional grave danger over and above their use against other industries. Because the book industry represents the dissemination of knowledge and ideas, an attempt to regulate the price of books abridges the free flow of ideas and violates our First Amendment right to freedom of the press.

Anyone interested in the survival of a robust book industry — or any other industry — with the free flow of products, the creativity of new business methods, and the preservation of economic freedom and property rights, must support the repeal of these oppressive laws.

The market — comprising the voluntary decisions of millions of free people — determines the pricing of books, the form a book will take, the device it will be read on, the winners and the losers of the competition. If the market chooses an innovative technology and a new direction, then so be it. Let the medieval bookmakers copying their books by hand and their contemporary counterparts using needless paper and ink, warehouses, delivery trucks, and bookstores, adopt the advances or quit!

Totally unlike competition in the animal kingdom, in which the losers are eaten or die of starvation, the losers of an economic competition do not die. At worst, they must relocate in the economic system at a lower level. But in an economic system free enough rapidly to progress, as ours has been for most of the last two and a half centuries, even the lowest-paid workers enjoy a standard of living that surpasses that of the kings and emperors of earlier ages. This is why the Gutenbergs of the world must be left free to dream, to create, and to trade without fear of punishment.

Gen LaGreca is the author of Noble Vision, a novel that won a ForeWord magazine Book of the Year Award and was a finalist in the Writer’s Digest International Self-Published Book Awards. After being rejected by dozens of agents and unable to find a trade publisher, it now enjoys steady ranking in the Top 100 Best Sellers in medical and political genre fiction on Kindle. Send her mail. See Genevieve LaGreca’s article archives.

Economist George Reisman contributed to this article.

You can subscribe to future articles by Genevieve LaGreca via this RSS feed.

Copyright © 2012 by Genevieve LaGreca. Permission to reproduce is granted with attribution.

A Libertarian Transhumanist Critique of Jeffrey Tucker’s “A Lesson in Mortality” – Audio Essay by G. Stolyarov II, Read by Wendy Stolyarov

A Libertarian Transhumanist Critique of Jeffrey Tucker’s “A Lesson in Mortality” – Audio Essay by G. Stolyarov II, Read by Wendy Stolyarov

Mr. Stolyarov, a libertarian transhumanist, offers a rebuttal to the arguments in Jeffrey Tucker’s 2005 essay, “A Lesson in Mortality“.

This essay is read by Wendy Stolyarov.

As a libertarian transhumanist, Mr. Stolyarov sees the defeat of “inevitable” human mortality as the logical outcome of the intertwined forces of free markets and technological progress – the very forces about which Mr. Tucker writes at length.

Read the text of Mr. Stolyarov’s essay here.
Download the MP3 file of this essay here.
Download a vast compendium of audio essays by Mr. Stolyarov and others at TRA Audio.

References

It’s a Jetsons World – Book by Jeffrey Tucker
– “Without Rejecting IP, Progress is Impossible” – Essay by Jeffrey Tucker – July 18, 2010
– “The Quest for Indefinite Life II: The Seven Deadly Things and Why There Are Only Seven” – Essay by Dr. Aubrey de Grey – July 30, 2004
Resources on Indefinite Life Extension (RILE)
– “How Can I Live Forever?: What Does and Does Not Preserve the Self” – Essay by G. Stolyarov II

A Libertarian Transhumanist Critique of Jeffrey Tucker’s “A Lesson in Mortality” – Article by G. Stolyarov II

A Libertarian Transhumanist Critique of Jeffrey Tucker’s “A Lesson in Mortality” – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
May 13, 2012
******************************

Jeffrey Tucker is one of my favorite pro-technology libertarian thinkers of our time. In his essays and books (see, for instance, It’s a Jetsons World), Mr. Tucker eloquently draws the connection between free markets and technological progress – and how the power of human creativity within a spontaneous order can overcome the obstructions posed by stagnant political and attitudinal paradigms. Mr. Tucker embraces the innovations of the Internet age and has written on their connection with philosophical debates – such as whether the idea of intellectual property is even practically tenable anymore, now that electronic technology renders certain human creations indefinitely reproducible.

Because I see Mr. Tucker as such an insightful advocate of technological progress in a free-market context, I was particularly surprised to read his 2005 article, “A Lesson in Mortality” – where Mr. Tucker contends that death is an inescapable aspect of the human condition. His central argument is best expressed in his own words: “Death impresses upon us the limits of technology and ideology. It comes in time no matter what we do. Prosperity has lengthened life spans and science and entrepreneurship has made available amazing technologies that have forestalled and delayed it. Yet, it must come.” Mr. Tucker further argues that “Modernity has a problem intellectually processing the reality of death because we are so unwilling to defer to the implacable constraints imposed on us within the material world… To recognize the inevitability of death means confessing that there are limits to our power to manufacture a reality for ourselves.

Seven years is a long time, and I am not aware of whether Mr. Tucker’s views on this subject have evolved since this article was published. Here, I offer a rebuttal to his main arguments and invite a response.

To set the context for his article, Mr. Tucker discusses the deaths of short-lived pets within his family – and how his children learned the lesson to grieve for and remember those whom they lost, but then to move on relatively quickly and to proceed with the business of life – “to think about death only when they must, but otherwise to live and love every breath.” While I appreciate the life-embracing sentiment here, I think it concedes too much to death and decay.

As a libertarian transhumanist, I see the defeat of “inevitable” human mortality as the logical outcome of the intertwined forces of free markets and technological progress. While we will not, at any single instant in time, be completely indestructible and invulnerable to all possible causes of death, technological progress – if not thwarted by political interference and reactionary attitudes – will sequentially eliminate causes of death that would have previously killed millions. This has already happened in many parts of the world with regard to killers like smallpox, typhus, cholera, malaria – and many others. It is not a stretch to extrapolate this progression and apply it to perils such as cancer, heart disease, stroke, Alzheimer’s disease, and ALS. Since human life expectancy has already increased roughly five-fold since the Paleolithic era, it is not inconceivable that – with continued progress – another five-fold or greater increase can be achieved.

As biogerontologist and famous life-extension advocate Dr. Aubrey de Grey points out, the seven basic types of damage involved in human senescence are already known – each for at least thirty years. With advances in computing capacity, as well as accelerating medical discoveries that have already achieved life extension in mice, rats, and other small organisms, there is hope that medical progress will arrive at similar breakthroughs for us within our lifetimes. Once life expectancy begins to increase by more than one year for every year of time that passes, we will have reached longevity escape velocity – a condition where the more we live, the more probability we will have of surviving even longer. In February 2012 I began an online compendium of Resources on Indefinite Life Extension, which tracks ongoing developments in this field and provides access to a wide array of media to show that life extension is not just science fiction, but an ongoing enterprise.

To Mr. Tucker, I pose the question of why he appears to think that despite the technological progress and economic freedom whose benefits he clearly recognizes, there would always be some upper limit on human longevity that these incredibly powerful forces would be unable to breach. What evidence exists for such a limit – and, even if such evidence exists, why does Mr. Tucker appear to assume that our currently finite lifespans are not just a result of our ignorance, which could be remedied in a more advanced and enlightened future? In the 15th century, for instance, humans were limited in their technical knowledge from achieving powered flight, even though visionaries such as Leonardo da Vinci correctly anticipated the advent of flying machines. Imagine if a Renaissance scholar made the argument to da Vinci that, while the advances of the Renaissance have surely produced improvements in art, architecture, music, and commerce, nature still imposes insurmountable limits on humans taking to the skies! “Sure,” this scholar might say, “we can now construct taller and sturdier buildings, but the realm of the birds will be forever beyond our reach.” He might say, paraphrasing Mr. Tucker, “[Early] modernity has a problem intellectually processing the reality of eternally grounded humans because we are so unwilling to defer to the implacable constraints imposed on us within the material world. To recognize the inevitability of human grounding means confessing that there are limits to our power to manufacture a reality for ourselves.” What would have happened to a society that fully accepted such arguments? Perhaps the greatest danger we can visit upon ourselves is to consider a problem so “inevitable” that nothing can be done about it. By accepting this inevitability as a foregone conclusion, we foreclose on the inherently unpredictable possibilities that human creativity and innovation can offer. In other words, we foreclose on a better future.

Mr. Tucker writes that “Whole ideologies have been concocted on the supposition that such constraints [on the material world] do not have to exist. That is the essence of socialism. It is the foundation of US imperialism too, with its cocky supposition that there is nothing force cannot accomplish, that there are no limits to the uses of power.” It is a significant misunderstanding of transhumanism to compare it to either socialism or imperialism. Both socialism and imperialism rely on government force to achieve an outcome deemed to be just or expedient. Transhumanism does not depend on force. While governments can and do fund scientific research, this is not an optimal implementation of transhuman aspirations, since government funding of research is notoriously conservative and reluctant to risk taxpayer funds on projects without short-term, visible payoffs about which politicians can boast. Furthermore, government funding of research renders it easier for the research to be thwarted by taxpayers – such as fundamentalist evangelical Christians – who disagree with the aims of such research. The most rapid technological advances can be achieved on a pure free market, where research is neither subsidized nor restricted by any government.

Moreover, force is an exceedingly blunt instrument. While it can be used to some effect to dispose of criminals and tyrants, even there it is tremendously imperfect and imposes numerous unintended negative consequences. Transhumanism is not about attempting to overcome material constraints by using coercion. It is, rather, about improving our understanding of natural laws and our ability to harness mind and matter by giving free rein to human experimentation in applying these laws.

Transhumanism fully embraces Francis Bacon’s dictum that “Nature, to be commanded, must be obeyed.” This means working within material constraints – including the laws of economics – and making the most of what is possible. But this also means using human ingenuity to push out our material limits. As genetic modification of crops has resulted in vastly greater volumes of food production, so can genetic engineering, rejuvenation therapies, and personalized medicine eventually result in vastly longer human lifespans. Transhumanism is the logical extrapolation of a free-market economy. The closer we get to an unfettered free market, the faster we could achieve the transhuman goals of indefinite life extension, universal wealth, space colonization, ubiquitous erudition and high culture, and the conquest of natural and manmade existential risks.

Mr. Tucker writes that recognizing the inevitability of death “is akin to admitting that certain fundamental facts of the world, like the ubiquity of scarcity, cannot be changed. Instead of attempting to change it, we must imagine social systems that come to terms with it. This is the core claim of economic science, and it is also the very reason so many refuse to acknowledge its legitimacy or intellectual binding power.” It is undeniable that scarcity exists, and that scarcity of some sort will always exist. However, there are degrees of scarcity. Food, for instance, is much less scarce today than in the Paleolithic era, when the earth could support barely more than a million humans. Furthermore, in some realms, such as digital media, Mr. Tucker himself has acknowledged that scarcity is no longer a significant limitation – because of the capacity to indefinitely reproduce works of art, music, and writing. With the proximate advent of technologies such as three-dimensional printing and tabletop nano-manufacturing, more and more goods will begin to assume qualities that more closely resemble digital goods. Then, as now, some physical resources will be required to produce anything – and these physical resources would continue to be subject to the constraints of scarcity. But it is not inconceivable that we would eventually end up in a Star Trek world of replicators that can manufacture most small-scale goods out of extremely cheap basic substances, which would render those goods nearly free to reproduce. Even in such a world, more traditional techniques may be required to construct larger structures, but subsequent advances may make even those endeavors faster, cheaper, and more accessible.

At no point in time would human lifespans be infinite (in the sense of complete indestructibility or invulnerability). A world of scarcity is, however, compatible with indefinite lifespans that do not have an upper bound. A person’s life expectancy at any point in time would be finite, but that finite amount might increase faster than the person’s age. Even in the era of longevity escape velocity, some people would still die of accidents, unforeseen illnesses, or human conflicts. But the motivation to conquer these perils will be greatly increased once the upper limit on human lifespans is lifted. Thus, I expect actual human mortality to asymptotically approach zero, though perhaps without ever reaching zero entirely. Still, for a given individual, death would no longer be an inevitability, particularly if that individual behaves in a risk-averse fashion and takes advantage of cutting-edge advancements. Even if death is always a danger on some level, is it not better to act to delay or prevent it – and therefore to get as much time as possible to live, create, and enjoy?

Mr. Tucker writes: “To discover the fountain of youth is a perpetual obsession, one that finds its fulfillment in the vitamin cults that promise immortality. We create government programs to pay for people to be kept alive forever on the assumption that death is always and everywhere unwarranted and ought to be stopped. There is no such thing as ‘natural death’ anymore; the very notion strikes us as a cop out.” It is true that there are and have always been many dubious remedies, promising longevity-enhancing benefits without any evidence. However, even if false remedies are considered, we have come a long way from the Middle Ages, where, in various parts of the world, powders of gold, silver, or lead – or even poisons such as arsenic – were considered to have life-extending powers. More generally, the existence of charlatans, frauds, snake-oil salesmen, and gullible consumers does not discredit genuine, methodical, scientific approaches toward life extension or any other human benefit. Skepticism and discernment are always called for, and we should always be vigilant regarding “cures” that sound too good to be true. Nobody credible has said that conquering our present predicament of mortality would be easy or quick. There is no pill one can swallow, and there is little in terms of lifestyle that one can do today – other than exercising regularly and avoiding obviously harmful behaviors – to materially lengthen one’s lifespan. However, if some of the best minds in the world are able to utilize some of the best technology we have – and to receive the philosophical support of the public and the material support of private donors for doing so – then this situation may change within our lifetimes. It is far better to live with this hope, and to work toward this outcome, than to resign oneself to the inevitability of death.

As regards government programs, I find no evidence for Mr. Tucker’s assertion that these programs are the reason that people are being kept alive longer. Implicit in that assertion is the premise that, on a fully free market (where the cost of high-quality healthcare would ultimately be cheaper), people would not voluntarily pay to extend the lives of elderly or seriously ill patients to the same extent that they expect such life extension to occur when funded by Medicare or by the national health-care systems in Canada and Europe. Indeed, Mr. Tucker’s assertion here poses a serious danger to defenders of the free market. It renders them vulnerable to the allegation that an unfettered free market would shorten life expectancies and invite the early termination of elderly or seriously ill patients – in short, the classic nightmare scenario of eliminating the weak, sickly, or otherwise “undesirable” elements. This is precisely what a free market would not result in, because the desire to live is extremely strong for most individuals, and free individuals using their own money would be much more likely to put it toward keeping themselves alive than would a government-based system which must ultimately ration care in one way or another.

Mr. Tucker writes: “Thus do we insist on always knowing the ‘cause’ of death, as if it only comes about through an exogenous intervention, like hurricanes, traffic accidents, shootings, and bombs. But even when a person dies of his own accord, we always want to know so that we have something to blame. Heart failure? Well, he or she might have done a bit more exercise. Let this be a lesson. Cancer? It’s probably due to smoking, or perhaps second-hand smoke. Or maybe it was the carcinogens introduced by food manufacturers or factories. We don’t want to admit that it was just time for a person to die.” Particularly as Austrian Economics, of which Mr. Tucker is a proponent, champions a rigorous causal analysis of phenomena, the above excerpt strikes me as incongruous with how rational thinkers ought to approach any event. Clearly, there are no uncaused events; there is nothing inexplicable in nature. Sometimes the explanations may be difficult or complex to arrive at; sometimes our minds are too limited to grasp the explanations at our present stage of knowledge and technological advancement. However, all valid questions are ultimately answerable, and all problems are ultimately solvable – even if not by us. The desire to know the cause of a death is a desire to know the answers to important questions, and to derive value from such answers by perhaps gathering information that would help oneself and others avoid a similar fate. To say that “it was just time for a person to die” explains nothing; it only attempts to fill in the gaps in our knowledge with an authoritative assertion that forecloses on further inquiry and discovery. While this may, to some, be comforting as a way of “moving on” – to me and other transhumanists it is an eminently frustrating way of burying the substance of the matter with a one-liner.

Mr. Tucker also compares death to sleep: “The denial of death’s inevitability is especially strange since life itself serves up constant reminders of our physical limits. Sleep serves as a kind of metaphor for death. We can stay awake working and having fun up to 18 hours, even 24 or 36, but eventually we must bow to our natures and collapse and sleep. We must fall unconscious so that we can be revived to continue on with our life.” While sleep is a suspension of some activities, death and sleep could not be more different. Sleep is temporary, while death is permanent. Sleep preserves significant aspects of consciousness, as well as a continuity of operations for the brain and the rest of the body. While one sleeps, one’s brain is hard at work “repackaging” the contents of one’s memory to prepare one for processing fresh experiences the next day. Death, on the other hand, is not a preparation for anything. It is the cessation of the individual, not a buildup to something greater or more active. In “How Can I Live Forever: What Does or Does Not Preserve the Self”, I describe the fundamental difference between processes, such as sleep, which preserve the basic continuity of bodily functions (and thus one’s unique vantage point or “I-ness”) and processes that breach this continuity and result in the cessation of one’s being. Continuity-preserving processes are fundamentally incomparable to continuity-breaching processes, and thus the ubiquity and necessity of sleep can tell us nothing regarding death.

Mr. Tucker validly notes that the human desire to live forever can manifest itself in the desire to leave a legacy and to create works that outlive the individual. This is an admirable sentiment, and it is one that has fueled the progress of human civilization even in eras when mortality was truly inevitable. I am glad that our ancestors had this motivation to overcome the sense of futility and despair that their individual mortality would surely have engendered otherwise. But we, standing on their shoulders and benefiting from their accomplishments, can do better. The wonders of technological progress within the near term, about which Mr. Tucker writes eloquently and at length, can be extrapolated to the medium and long term in order for us to see that the transhumanist ideal of indefinite life extension is both feasible and desirable. Free markets, entrepreneurship, and human creativity will help pave the way to the advances that could save us from the greatest peril of them all. I hope that, in time, Mr. Tucker will embrace this prospect as the incarnation, not the enemy, of libertarian philosophy and rational, free-market economics.
Creation of an Ethical Business: The Implementation of Virtuous Behavior and Shared Values and Goals – Article by Jessica L. Kuryn

Creation of an Ethical Business: The Implementation of Virtuous Behavior and Shared Values and Goals – Article by Jessica L. Kuryn

The New Renaissance Hat
Jessica L. Kuryn
May 10, 2012
******************************

IN TODAY’S COMPETITIVE BUSINESS ENVIRONMENT, a growing number of firms will do almost anything to gain sales and customers, as well as to increase profits.  For some of these firms, playing by the rules doesn’t achieve the results they are after.  Firms have the choice to act ethically or unethically.  While misguided managers think that unethical behavior can lead the firm, and ultimately themselves, to greater profits over the long term, it is only for the short term.  It will eventually lead to their downfall in that unethical behavior spirals out of control and can be very difficult to maintain.  Once this occurs, a firm’s reputation becomes tarnished and the company fades into non-existence.  On the contrary, “firms that pursue ethically driven strategies realize a greater profit potential than those firms who currently use profit-driven strategies” (Arjoon 159).

The point is that a firm’s leaders do have a choice in how they conduct business.  Creating an ethical business does not happen overnight.  It takes extensive collaboration and several implementation and evaluation processes, as well as continual reinforcement of and changes to established practices and values.  Perhaps one of the most important aspects to creating an ethical business is that it requires cooperation on multiple organizational levels and the implementation of virtuous behavior and values.

Maintaining ethical practices, once implemented, is an ongoing process.  There are many factors that can affect ethical behavior, such as competition for customers and market share, the need for increased profits, and management incentives.  Some firms, such as BB&T have been able to implement an ethical environment that has led to firm success, while others such as Enron, have succumbed to greed and wrongdoing, and no longer are in existence.  BB&T’s story of success will be discussed later in this paper.

CREATING AN ETHICALLY DRIVEN BUSINESS

Business ethics can be defined as “the applied ethics discipline that addresses the moral features of commercial activity” (Marcoux).  The question we have to ask concerning business ethics is how they can be applied to a business.  One of the most important aspects in creating an ethical business entails the need for new and refined organizationalvalues.  A value, as defined by Ayn Rand in Younkins’s article, is “that which one acts to gain and/or keep” (Younkins 9). Antonio Argandoña suggests a business must first identify its currently existing values and from that develop what values are needed (Argandoña 22).  In identifying these needed values, it is crucial that businesses select values that pertain to both the business’s goals, as well as the employees’ goals.  Congruence between the goals of the business and its employees increase the chances that the valueswill be received well and adhered to.

Once the desired values and goals have been determined, it falls in the hands of management to implement and communicate them.  “At the top level of an organization, it takes effective communicators who are clear about what they champion and who establish the company on virtuous behavior” (Younkins 21).Virtues, which are also defined by Ayn Rand in Younkin’s article, are “the act[s] by which one gains and/or keeps an objective value” (Younkins 11).  It is crucial for each employee and manager to establish virtues within themselves in order to pursue individual and organizational values, as well as keep them once they have been successfully implemented.It is the responsibility of management to ensure that these values are clearly communicated and followed, while established virtuous behavior becomes the mean by which these values flourish and exist.“A culture (or climate) of virtue in a business begins with executives who exhibit virtuous leadership through their personal actions and interpersonal relationships” (Younkins 21).

In displaying virtuous behavior throughout an organization, managers are setting an example for employees.   “Employees are influenced by observing visible and legitimate role models who themselves act as virtuous agents.  Not only should leaders openly discuss virtues and values, they should also live the virtues and values that they advocate” (Younkins 21).  I believe that this is one of the most important aspects in creating and sustaining an ethical business environment.  As explained by Kouzes and Posner in Minkes, Small, and Chatterjee’s article, “…leaders who could not personally adhere to a firm set of values, could not convince others of the worthiness of those values” (Minkes, Small, and Chatterjee 330).  People learn through example.  Therefore, managers should be mindful of this and back up their words with consistent virtuous behaviors that champion the organization’s values.

Once organizational values have been implemented, only half of the work has been done.  The remaining half is a continual and never ending process within the business.  In maintaining an ethical business, ongoing promotion and reinforcement is necessary.  Management must continue to display ethical behavior, while continuing to communicate values to employees.  This also includes communicating what actions are and are not acceptable.  Employee evaluations should also frequently be performed, in which employees are evaluated on values implemented by the organization’s managers.  In addition, management also needs to develop systems that reward value-oriented behaviors and reprimand value-destructive behaviors.

In regards to a reward system, “employees should be objectively appraised and compensated based on their contribution toward achieving a firm’s mission, values, and goals” (Younkins 19).  Employees may receive monetary or recognition awards for their display of virtuous and ethical behavior.  In establishing such incentives, there is an encouragement that exists among employees to accept and display the organization’s values and goals.  In addition, such incentives create a pathway in which individuals can fulfill their own self-interests and goals simultaneously.  “The good manager tries to shape employees’ ideas about self-interest by instituting incentives rewarding cooperation and reinforcing the pleasure people take in collaborating with each other” (Koehn 498). When employees act ethically, the business is also handsomely rewarded in that it gains a good reputation as being an ethically driven business.  This can lead to higher profits in that consumers will be more likely to choose that particular business over competitors because of its reputation.  “Many companies are now realizing that ethically driven strategies are resulting in a sustainable competitive advantage” (Arjoon 168).  In addition, “companies that have seriously adopted ethically driven or people-centered strategies have seen clear gains in productivity, sales and profits, customer service, retention rates, reduction in absenteeism, positive impact on employee morale, [and] increased and timely launching of products” (Arjoon 169).

Adversely, a disciplinary system is also necessary in order to maintain organization values and ethically driven behavior that have already been established.  Employees should be aware of the possible repercussions of their actions in advance, and management needs to ensure disciplinary actions are followed through with when dealing with value-destructive behaviors.  This sends a message to employees that unethical behavior will not be tolerated and it should be avoided at all costs.

The acts of Enron and WorldCom have increased consumer demands for ethically driven organizations.  Therefore, the businesses that make ethics a priority will likely obtain a sustainable competitive advantage because more consumers will choose to do business with them.  In today’s economy and business world, businesses must place a large focus on ethics in order to be successful.

FACTORS THAT AFFECT ETHICAL BEHAVIOR

Implementing a form of virtue ethics and values throughout a business can be very challenging, but maintaining it can be just as difficult.  There are many factors that can affect ethical behavior and lead a manager or employee to act unethically.  Competition for customers and increased market share, as well as the need for more profit are common issues that can lead to unethical behavior.  In addition, management incentives, such as bonuses, pay increases, promotions, and stock options can open the gateway for unethical behavior.

With a specific focus on profit, businesses that have an urgency to increase profits are likely to engage in false reporting.  Reporting false financial information makes a business’s financial statements look more appealing to investors and gives a false pretense that the business is in better financial health than it really is.  In addition, management may inflate earnings if they receive bonuses, pay increases, or promotions for increasing profits.  These monetary compensations can prove beneficial for businesses in that management will be more driven to make sales and increase wealth in the business.  Adversely, these monetary compensations can be dangerous if a manager works in his or her own interest and does not act ethically.  It could put the business in a financial position that is difficult to correct.

Stock options are another form of management compensation.  “Stock options allow employees to purchase a particular number of common shares of company stock at a specified price over a specified time period” (Brooks and Dunn 172).  Stock options can be beneficial in that they serve as a motivational devise.  When managers have an interest in the company they work for, they are more willing to strive towards an increase in stock prices.  Shareholders, as well as the managers, enjoy higher returns when stock prices increase.  In addition, stock options enable management to adopt the investor’s perspective in that theyenable both the interests of investors and management to be aligned.

One of the biggest problems with this is that unethical managers can work out of their own self-interest to falsely raise stock prices in order to earn more money.  With the incentive to earn more money comes the high possibility for unethical behavior and false reporting.  Managers that get used to these increasing stock prices are also the ones who will likely forego ethical standards and correct reporting procedures.  The concept of stock options can be extremely dangerous to a firm, especially when stock prices are truly in decline and these types of managers are present.  Reporting false income to increase these prices will eventually catch up to the firm and will result in the company’s non-existence.  Another problem with stock options is that management has the option to exercise their stock options and then sell them immediately.  This does not align with investor interests in that managers are only maintaining a short term perspective.  Making decisions based on the short term only hurts the long term investors.

BB&T – A TRUE ETHICALLY DRIVEN BUSINESS

BB&T is a fine example of a business that has been led to success through the values-driven approach adopted by one its leaders.  John Allison, former CEO of BB&T, now serves as the chairman of the board of directors.  During Allison’s time as CEO, the company has grown from approximately $5 billion in assets to $165 billion in assets.  This substantial growth has placed the company as the eighth largest financial institute in the United States.  Just a few of the issues BB&T has made a bold stand on are a municipality’s right to seize property by eminent domain for the purpose of economic development, and negative amortization loans.  Allison received national attention is his decision to “not provide loans for any economic development projects in which the land for the project had been taken in this manner” (Parnell and Dent 587).  This decision was not initially favored by many mortgage producers.

“When we made the decision not to do these loans, we got beat up in the market.  We also lost a number of mortgage producers who could make more money working for Countrywide – of course a number of these producers would now like to come back to BB&T.  We believe that doing our best to help our clients make the right financial decisions is good for BB&T.  I believe that while there may be short-term trade-offs by sticking to your values, you are never making a sacrifice in the long run, if your values are rational” (Parnell and Dent 589).

“Allison is known for, and attributes BB&T’s success to, operating by a set of principles that are embodied in BB&T’s Values Statement.  These ten values – Reality (Fact-Based), Reason (Objectivity), Independent Thinking, Productivity, Honesty, Integrity, Justice (Fairness), Pride, Self-Esteem (Self-Motivation), and Teamwork/Mutual (Supportiveness) – are not simply platitudes at BB&T but drive the decision-making process of the bank” (Parnell and Dent 588).  These values serve as the foundation that BB&T was built on.  As part of the evaluation process, employees are evaluated on their performance in accordance with the 10 values.  Those employees that perform in accordance with the values are rewarded.

Allison attributes Rand’s philosophy of Objectivism as the framework for these 10 values.  The main aspect of Objectivism is that it relies on truth and blocks out all emotions in the decision making process.  “The purpose of the process is to help you think rationally.  It is about not letting your emotions make decisions that are bad for you.  It is the ability to make logical decisions based on the facts and to pursue our purposes that makes us happy” (Parnell and Dent 591).

In addition, BB&T has also been viewed as being socially responsible.  Milton Friedman, who is referenced to in Parnell and Dent’s article, argues that there are two reasons as to why a firm should act socially responsible.  “First, not doing so can increase the likelihood of more costly government regulation.  A number of regulations over business operations were enacted because some firms refused to be socially responsible” (Parnell and Dent 593).  The second reason as to why a firm should act socially responsible is that “stakeholders affected by a firm’s social responsibility stance – most notably customers – are also those who must choose whether to transact business with the firm” (Parnell and Dent 593).  The point here is that if consumers do not think a firm is socially responsible, they have the option to do business with another company, and they will more than likely do so.  As discussed in Parnell and Dent’s article, studies have shown that consumers will be willing to pay more for products and services that are responsibly produced.  Simply, consumers favor ethically driven and responsible businesses, and will purchase products and services from them considering this factor.  This is why it is crucial for businesses in today’s economy and environment to be ethically driven and socially responsible.  With the events as seen in Enron and WorldCom, it has made consumers extra sensitive to firms and what approach they take in formulating profit.  Consumers want to be valued for their choice to do business with a particular firm, and they take enjoyment in purchasing products from these firms when they display ethically driven strategies.

From a market and environmental perspective, we could argue that BB&T is doing exceptionally well.  “From a market perspective, BB&T has delivered strong growth and financial performance since Allison’s appointment as CEO in 1989.  From a broad environmental perspective, BB&T’s business decisions defending eminent domain rights and eschewing negative amortization loans reflect support for a sustained society that respects personal property rights and responsible mortgage loan practices” (Parnell and Dent 594).  In respect to this, BB&T speaks on behalf of individuals and what they want.  While BB&T suffered somewhat in the short term, they were able to come out on top in the long run.  In my personal opinion, I have much more respect for companies like BB&T because they are willing to forgo potential profits and take a stand, even when it is not the popular decision.  Companies, like BB&T, will be around for years longer than the companies that jump on the popularity bandwagon.  They will also see considerably larger profits because they stand out among their competitors – just as BB&T has come to do

CONCLUSION

In conclusion, it is easy to see how BB&T has come to be a top competitor in the financial institution sector of business.  BB&T is a classic example of an ethically driven firm that has realized greater profits than the firms that have adopted a profit-driven strategy.  The implementation of ethics throughout an organization is a very difficult thing to do.  It requires substantial acceptance from employees and managers alike to be successful.  Most importantly, managers are the driving forces in implementing such a strategy throughout an organization.  They must be effective in communicating the values of an organization to employees, as well as lead by example.  Management cannot expect to preach values that they do not live by themselves.  After all, people learn through example.  A leader that lives by the values it communicates to employees has the best shot at having an ethically driven business.

In addition to the communication process, managers must provide incentives for desirable behavior.  A rewards system based on monetary or recognition awards are great ways to encourage cooperation and motivate employees.  This also encourages the creation of a pathway in which individuals can fulfill their self-interests.  These same values must also be a part of the evaluation process.  Just as there are rewards systems, management must also design a disciplinary system.  It is important that employees are aware in advance what they could encounter by not behaving in accordance with a firm’s values and policies.  Managers must also follow through with any disciplinary action to reinforce their importance on having a values-based business.

The benefits of implementing an ethically driven business strategy can be great, but it can be a difficult thing to do.  Competition for customers and increased market share, as well as the need for more profit are common issues that can lead to unethical behavior.  In addition, management incentives, such as bonuses, pay increases, promotions, and stock options can open the gateway for unethical behavior. However, if a firm is able to successfully implement an ethics-driven approach, these issues can be minimized and the interests of the firm and employees will be satisfied and aligned.  When a firm is able to align individual self-interests with its own interests, happiness and flourishing are more likely to occur for both.

Jessica Kuryn is a student in Wheeling Jesuit University’s Master of Science in Accountancy (MSA) program.

SOURCES

Argandoña, Antonio. (2003).  Fostering values in organizations.  Journal of Business Ethics 45:

            15-28.

Arjoon, Surendra (2000).  Virtue theory as a dynamic theory of business.  Journal of Business

            Ethics, no. 28:159-78.

Brooks, L. J., and P. Dunn. Business & Professional Ethics for Directors, Executives &

Accountants. 5. South-Western Pub, 2011. 172.

Koehn, Daryl. (1998).  Virtue ethics, the firm, and moral psychology.  Business Ethics Quarterly

            8 (3): 497-513.

Marcoux, Alexei, “Business Ethics”, The Stanford Encyclopedia of Philosophy (Fall 2008

Edition), Edward N. Zalta (ed.), URL

<http://plato.stanford.edu/archives/fall2008/entries/ethics-business/>.

Minkes, A.L., M.W. Small, and S.R. Chatterjee. (1999).  Leadership and business ethics: Does it

            Matter? Implications for management.Journal of Business Ethics 20: 327-35.

Parnell, John A., and Eric B. Dent. (2009).  Philosophy, Ethics, and Capitalism: An Interview

            With BB&T Chairman John Allison.Academy of Management Learning & Education

            8 (4): 587-96.

Younkins, Edward W. “Morality, Success, and Individual Happiness in Business: The Virtuous

            Pursuit of Values and Goals,” Libertarian Papers 3, 26 (2011).

The Costs of War – Article by Ron Paul

The Costs of War – Article by Ron Paul

The New Renaissance Hat
Ron Paul
May 2, 2012
******************************

This month Veterans Affairs Secretary Eric K. Shinseki announced the addition of some 1,900 mental health nurses, psychiatrists, psychologists, and social workers to its existing workforce of 20,590 mental health staff in attempt to get a handle on the epidemic of suicides among combat veterans. Unfortunately, when presidents misuse our military on an unprecedented scale – and Congress lets them get away with it – the resulting stress causes military suicides to increase dramatically, both among active duty and retired service members.  In fact, military deaths from suicide far outnumber combat deaths. According to an article in the Air Force Times this month, suicides among airmen are up 40 percent over last year.

Considering the multiple deployments service members are forced to endure as the war in Afghanistan stretches into its second decade, these figures are sadly unsurprising.

Ironically, the same VA Secretary Eric Shinseki was forced to retire from the Army by President Bush for daring to suggest that an invasion and occupation of Iraq would not be the cakewalk that neoconservatives promised. Then Deputy Secretary of Defense Paul Wolfowitz, who is not a military veteran, claimed that General Shinseki was “wildly off the mark” for suggesting that several hundred thousand soldiers would be required to secure post-invasion Iraq. Now we see who was right on the costs of war.

In addition to the hidden human costs of our seemingly endless wars are the economic costs. In 2008, Nobel Prize winning economist Joseph Stiglitz wrote “The Three Trillion Dollar War: The True Cost of the Iraq Conflict.” Stiglitz illustrates that taking into account the total costs of the war, including replacing military equipment and caring for thousands of wounded veterans for the rest of their lives, the Iraq war will cost us orders of magnitude greater than the 50 billion dollars promised by the White House before the invasion. Add all the costs of Afghanistan into the mix, wrote Stiglitz, and the bill tops $7 trillion.

Is it any wonder why our infrastructure at home crumbles, healthcare is more expensive and harder to come by, and unemployment together with inflation continue their steady rise? Imagine the productive power of that seven trillion dollars in our private sector. What could it have done were it in private hands; what may have been discovered, what diseases might have been cured, what might have been built, how many productive jobs created?

With the bills coming due for our decade of reckless military action, the cuts rarely come from the well-connected military industrial complex with their lobbyists and powerful political allies. In President Obama’s 2013 budget, troop strength is to be cut significantly while enormously expensive and largely superfluous weapons systems emerge essentially unscathed. As defense analyst Winslow Wheeler wrote this month, costs of the “next generation” fighter, the F-35, will increase by another $289 million. This despite the fact that the fighter is badly designed and already outdated, a “virtual flying piano” writes Wheeler.

The military contractors building monstrosities like the F-35 are politically connected and thus protected. Unfortunately, returning military veterans are less so. In the same 2013 budget, the White House proposes to increase medical and pharmaceutical costs paid by veterans while reducing their cost of living increases. And how many years of increasingly alarming mental illness and suicide statistics has it taken for the modest increase in resources to be made available?

Those who predicted the real costs of our decade of global military conquest were ridiculed, scoffed at, and fired. History has now shown us that much of what they warned was correct. America is clearly less secure after a decade of unnecessary wars. It is more vulnerable and closer to economic collapse. Its military is nearly broken from years of abuse. Will we come back to our senses?

Representative Ron Paul (R – TX), MD, is a Republican candidate for U. S. President. See his Congressional webpage and his official campaign website

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.

What People Mean When They Talk About Freedom – Article by Bradley Doucet

What People Mean When They Talk About Freedom – Article by Bradley Doucet

The New Renaissance Hat
Bradley Doucet
April 11, 2012
******************************

Most people I talk to believe that freedom is important. They generally want to be free, and they want others to be free as well. The disagreements only begin when we start discussing what, exactly, we mean by “free.” These disagreements over the meaning of liberty underlie a good part of the much-hyped polarization of politics in the western world.

One meaning, or set of meanings, is reflected in Freedom House’s annual Freedom in the World survey, whose findings for 2009 are available here. Freedom, according to this survey, is “the opportunity to act spontaneously in a variety of fields outside the control of the government and other centers of potential domination.” If that seems a little vague, the organization’s website gets more specific, breaking freedom down into two broad categories: political rights and civil liberties. Political rights allow people to “vote freely for distinct alternatives in legitimate elections, compete for public office, join political parties and organizations, and elect representatives who have a decisive impact on public policies and are accountable to the electorate.” Civil liberties include “freedoms of expression and belief, associational and organizational rights, rule of law, and personal autonomy without interference from the state.”

In the latest survey, fully 47 countries, ranging from Canada to Barbados, from the United States to Uruguay, get a perfect score of 1 for political rights and a perfect score of 1 for civil liberties. Only nine countries, including North Korea, Somalia, and Sudan, get the worst possible score of 7 on both counts. To get a sense of the spread, Argentina gets a pair of 2s, Turkey gets 3s, Kenya gets 4s, Ethiopia 5s, and Iran and Zimbabwe 6s.

Setting the Bar Too Low

This survey, however well-intentioned, suffers from two glaring deficiencies. First, it sets the bar way too low. By no stretch of the imagination are there 47 countries in the world that deserve perfect scores for freedom, even if we accept Freedom House’s criteria. Are civil liberties really perfectly safe in England, with surveillance cameras on every other street corner? Should the American Civil Liberties Union close up shop in an age of warrantless wiretaps, enhanced interrogation techniques, and jail time for smoking a joint? And here at home, how many Canadians really imagine that our proroguing Prime Minister is fully accountable to the public? I’m not saying I’d rather live in Zimbabwe—or Argentina, for that matter—but even in these relatively free countries of the Anglosphere, there remains plenty of room for improvement.

The other glaring defect in Freedom House’s survey is that it completely ignores economic freedom. There is no mention, for instance, of red tape, which costs small- to medium-sized Canadian businesses over $30 billion a year. No mention, either, of the eminent domain abuse that is rampant in the United States, robbing small property owners of their homes and shops in order to help some developer with deep pockets.

The Economic Freedom Network—with members in over 70 nations around the globe, including Canada’s own Fraser Institute—provides a picture of economic freedom in the world with its annual report. By its definition, economic freedom exists when property acquired “without the use of force, fraud, or theft is protected from physical invasions by others” and when individuals “are free to use, exchange, or give their property as long as their actions do not violate the identical rights of others.” More specifically, according to its latest report, to have high economic freedom, a country has to protect private property, enforce contracts, and have a stable monetary environment. “It also must keep taxes low, refrain from creating barriers to both domestic and international trade, and rely more fully on markets rather than the political process to allocate goods and resources.”

Compare and Contrast

Many of the countries that score highest in economic freedom are also at the top of the list in Freedom House’s survey of political rights and civil liberties, and conversely, most of the least free score dismally on both surveys. In fact, a graph in the Economic Freedom Network’s report shows this strong positive correlation. But there are some notable exceptions. Hong Kong and Singapore, first and second respectively for economic freedom with scores of 8.97 and 8.66 out of a possible 10, are only middling according to the Freedom House survey; and the United Arab Emirates (7.58) and Bahrain (7.56), 19th and 20th for economic freedom, are quite repressive on other counts, both scoring 5.5 according to Freedom House (with 7 being the worst possible combined average score).

Would I rather live in Singapore than in Canada, which placed 8th for economic freedom with a respectable score of 7.91? The trade-off in terms of civil liberties would probably be too high. But I would gain something in exchange for my loss. According to the Economic Freedom Network’s report, countries with higher economic freedom have substantially higher per capita incomes, higher growth rates, longer life expectancies, better environmental performance, and less corruption. The poor are also better off in absolute terms in countries with higher economic freedom, and no worse off in relative terms.

As a libertarian, I value both civil and economic liberty. I fault the authoritarian segment of the political right for running roughshod over the former, but I also fault an equally authoritarian segment of the political left for trampling the latter. But beyond this, I fault both sides of the spectrum for fetishizing political rights. Democracy is a tool, and it can be a useful one, but what good are elections if our representatives are not checked by a strict constitution from taking away our civil and economic freedoms? What good is accountability if the people don’t know or appreciate what is being taken away from them? Looking at it from the opposite perspective, if we cared enough and were wise enough to guard our civil and economic freedoms properly, would it matter very much anymore who administered the machinery of government? Yet without constitutional limits and the will to enforce them, political rights amount to the “freedom” to force others to do what we want—a power that interest groups will fight tooth and nail to wield.

As I am regularly reminded when I discuss libertarianism with my fellow Canadians, this is a pretty good place to live. Canada scores better than or as good as most places on the planet in terms of political rights, civil liberties, and economic freedom. This is a fact, and I am grateful for it. But does that mean we shouldn’t try to make life even better? Why are we so complacent, so ready to accept “pretty good” as good enough? Why are so many intelligent, educated people uninterested in even exploring what history’s great thinkers have had to say about liberty? Few Canadians, I wager, have even heard of Benjamin Constant, for instance. A champion of individual freedom two centuries ago, he viewed political rights as a collective kind of freedom, present in the ancient world, which was “compatible with… the complete subjection of the individual to the authority of the community.” Yes, Canada is a pretty good place to live, all things considered. When individuals are no longer subjected to the dictates of their fellows, free to live as they see fit and responsible for the consequences of their own actions, it will be a great place to live.

Bradley Doucet is Le Quebecois Libré‘s English Editor. A writer living in Montreal, he has studied philosophy and economics, and is currently completing a novel on the pursuit of happiness. He also writes for The New Individualist, an Objectivist magazine published by The Atlas Society, and sings.

Eliminating Most Foreclosures: An Innovative and Just Approach to Mortgage Delinquencies

Eliminating Most Foreclosures: An Innovative and Just Approach to Mortgage Delinquencies

The New Renaissance Hat
G. Stolyarov II
March 25, 2012
******************************

The economic and personal consequences of foreclosure are devastating. Foreclosures leave behind not only blighted neighborhoods, but ruined lives. Furthermore, during the past three years, immense abuses of the foreclosure process have come to light – with numerous banks being found to have improperly foreclosed on thousands of homeowners. The banks have either been unable to produce documentation that demonstrated their right to foreclose – or, worse, have foreclosed on individuals who were never even delinquent or did not have mortgages in the first place (see, for instance, here, here, and here). The violations of due process, private-property rights, and the rule of law have been astounding.

At this point, any solution that can reduce the number of foreclosures will be a welcome benefit to individual liberty, the US economy, and millions of Americans. Indeed, the concept of foreclosure – the expropriation of one’s home – resulting from a few late payments has always struck me as draconian. It disregards one fundamental fact: the homeowner has equity in his or home, even if he or she fails to make a few scheduled payments. So, suppose that a homeowner has a $150,000 outstanding mortgage loan on a home whose market value is $200,000. This means that the homeowner’s equity in the home is $50,000 – or one quarter of the home’s value. If the homeowner fails to make a $1000 hypothetical monthly payment on time, why is the bank entitled to appropriate the entire home and thereby deprive the homeowner of the entire $50,000 in equity? Suppose, as is often the case these days, that the foreclosure proceedings drag on for a year. A 5000% annual rate of interest for that one delinquent payment is quite steep indeed!

While delinquencies ought to be penalized, wholesale expropriation of a home is an unnecessary and disproportionate response in most cases. It would not have been possible on a truly free market, where roughly equal negotiating power would exist between lenders and borrowers. In today’s politicized financial environment, however, the large banks receive all of the privileges: bailouts, loan guarantees, access to “free money” from the Federal Reserve, barriers to entry for smaller competitors, the ability to “securitize” personal loans through means of dubious accountability, the ability to flout laws such as those pertaining to mortgage modifications, and a swiftly operating “revolving door” between bankers and politicians. Thus, homeowners are often left to acquiesce to terms that are far harsher than what they could have gotten for themselves in a truly free market.

A more equitable solution, that recognizes that the real value of the homeowner’s equity, is not to foreclose, but rather to reduce the homeowner’s equity for each delinquent payment. If the homeowner fails to make a scheduled payment, then the bank should be able to recoup its resulting losses – by seizing the portion of the homeowner’s equity corresponding to the amount of the delinquency, perhaps also incorporating an interest charge at the prevailing market rate. Only when all of the homeowner’s equity has been exhausted in this way should the bank have the right to foreclose. In today’s housing market, where many homes are “underwater” (i.e., the mortgage balance exceeds the market price, which has declined precipitously since the days of the housing bubble), this solution would still mean that some foreclosures would occur. But the number of foreclosures would be greatly reduced, and the majority of currently planned foreclosures would never occur. Furthermore, the “underwater” homeowners could still be helped by downward principal modifications that recognize the illusory and unsustainable nature of the inflated market prices that existed during the housing bubble and that were fueled by the expansionary monetary policy of the Federal Reserve. Homeowners should not be made to suffer for the Federal Reserve’s blunders.

Under my proposed approach, the mere involuntary loss of one’s job, or a catastrophic illness, would not put one’s place of shelter in immediate jeopardy. Rather, in the time that it takes for the homeowner’s equity to be exhausted, the homeowner would have the opportunity to attempt to regain his or her employment or health. Furthermore, with fewer foreclosures, the unsightly, wasteful, and dangerous effects of neighborhood blight would be greatly scaled back. A homeowner will still largely maintain his or her residence, even if he or she cannot make a regular mortgage payment. But once a home enters foreclosure, it suffers from deterioration and decrepitude at best – and outright vandalism and destruction at worst.

In rolling back the political privileges of the large banks, it is essential to compensate ordinary, law-abiding, innocent homeowners for the damage that these special privileges have wrought. The benefits of years of hard work and consistent mortgage payments should not be nullified overnight by a single delinquency. Over a year ago, in “Wrongful Foreclosures and the Free Market”, I advocated breaking up the bailed-out banks and declaring a temporary moratorium on foreclosures. Rewriting foreclosure law to require the exhaustion of the homeowner’s equity before a foreclosure can be initiated can be another step to wipe out most foreclosures at the stroke of a pen – while restoring an outcome more compatible with individual liberty, true market freedom, and natural justice.