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Technology Stocks : XLA or SCF from Mass. to Burmuda

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To: D.Austin who wrote (1072)10/16/2005 8:22:33 PM
From: D.Austin   of 1116
 
PART II....
"The National Response Plan establishes a comprehensive all-hazards approach to enhance the ability of the United States to manage domestic incidents. The plan incorporates best practices and procedures from incident management disciplines — homeland security, emergency management, law enforcement, firefighting, public works, public health, responder and recovery worker health and safety, emergency medical services, and the private sector — and integrates them into a unified structure. It forms the bases of how the federal government coordinates with state, local, and tribal governments and the private sector during incidents."

What happened to the National Response Plan after the floods? It remained what it always was: a colorful PDF download, a thick book on the management shelves, an item in the Government Printing Office catalog, bird-cage liner, and many other things. One thing it was not was a national response plan that did all those glorious things listed above. As with all these plans from time immemorial, it was a dead letter.

As for the National Guard, it did what the military does best: it started harassing the residents. Working with the police, it began to enforce an order for everyone to evacuate. As the New York Times summarized the order: "no civilians in New Orleans will be allowed to carry pistols, shotguns, or other firearms of any kind."

The National Guard allowed themselves to be videotaped going from house to house, and mansion to mansion, knocking down doors, searching for weapons, handcuffing owners and humiliating them. They called them the "holdouts," a phrase out of Baghdad.

One storm trooper — that's a pretty good name for them — was asked whether he would shoot residents if they resisted. Yes, he said. He added, "It's surreal. You never expect to do this in your own country."

The police also broke into the offices of a heroic little company in New Orleans that did not flee. Its name is DirectNIC, an Internet Service Provider, and it was staffed by friends of the Mises Institute. Through careful preparations, good generators, lots of fuel, and vast amounts of courage, this company kept providing internet service throughout. For several days after the flooding, it was the only source of information coming out of New Orleans. They had a camera on the streets below, and ventured out to take pictures of the scenes. They were first to report the looting, the explosions, the fires, and to chronicle the craziness. They became so good at acquiring fuel that they military actually came to them for diesel.

Millions were logging into their feed, and for four of the most critical days the Mises Institute actually provided the group with an external server in order to make their broadcasts possible. They were showing what the mainstream media would not show and could not show. But late one night, there was a pounding at the door. The National Guard had seen lights in the window and demanded to know what was going on in this room. Though these young people had already been interviewed on MSNBC, Fox, and were the talk of the blogosphere, the troops knew nothing about them. Astounded and confused at what they saw, the troops allowed their pictures to be taken and went on their way.

I've provided a look at some of the terrible failures by the government — not only failing to do what it claims it will do, but actively working to prevent others from helping out. The cost to human life and prosperity is incalculable. But, one might say, at least the government is generous now in preparing to spend perhaps $250 billion to clean up and reconstruct what was destroyed.

But who will get this money and where will it go? Cynics could not be more correct: the first companies to receive the money were our old friend Kellogg Brown and Root, a current client of President Bush's former campaign manager and former head of FEMA. KBR is a subsidiary of Halliburton, the company formerly headed by Dick Cheney. Another winner is Bechtel, whose former head is now in charge of Bush's Overseas Private Investment Corporation. The top rebuilding priority: repairing government military bases in Louisiana and Mississippi.

If you work for one of these companies, you will do very well by this aid. As for the victims, everyone knows that what rebuilding they do will come from their own savings. You can expect no assistance from this monstrosity that taxes and controls you relentlessly on the pretext that it will protect you and care for you when no one else will.

Fortunately for people who lived in flooded areas, they did not face the crisis alone. The private commercial sector, along with thousands of religious charities, was there to help. Indeed, John Tierney of the New York Times was one of the few mainstream journalists to note that Wal-Mart improved its image after Katrina. Its stores in the disaster-stricken areas still carried generators in areas. Wal-Mart trucks rode into to areas immediately following the hurricane and gave away chain saws, boots, sheets, and clothes for shelters, plus water and ice. It alone had prepared for emergency with its own emergency operations center.

Chris Westley further noted that Wal-Mart gave $20 million in cash donations, 1,500 truckloads of free merchandise, food for 100,000 meals, and the promise of a job for every one of its displaced workers. After comparing FEMA's failures with Wal-Mart's successes, he concluded that the government emergency management ought to be abolished.

Tierney, meanwhile, drew the wrong conclusion. He says that the Wal-Mart CEO "is the kind of leader we need to oversee the tens or hundreds of billions that Washington will be spending on the Gulf Coast. Scott could insist on low everyday prices while still leaving the area as well prepared for the next disaster as Wal-Mart was for Katrina."

In fact, if Lee Scott were given a government job, it would only be a matter of time before he became just another Michael Brown, the disgraced former FEMA head. This isn't a matter of character. It is a matter of the maze in which you find yourself — the one made by the market so that it has large exit signs, or the one that is government's, that is, the one with no exits at all.

As Walter Block, Mark Thornton, and many others have shown, it was not the storm as such that did the damage, but the failure of the government levees. Combined with the levees-only river management strategy of the Army Corps of Engineers, the floods were a disaster waiting to happen. Just imagine if the town were private like your home or car. Insurance companies would have taken a huge role in risk assessment, not only charging more for higher risk but insisting on management strategies that reduce risk and rewarding those who adopt those strategies with better premiums. This works on the same principles as you home owners' insurance, which combines rules and incentives to reduce the likelihood of losses.

Government insurance, however, makes us less cautious and more willing to take risks. It prices coverage from losses far too low and creates an environment where disasters like flooding are waiting to happen. With programs like subsidized flood insurance, government is like a bad mother who pays her children to run with scissors.

Government ownership is even worse because there are no signaling systems in operation at all. It was also government that created a false sense of security for people in New Orleans, who were led to believe that the levees would hold and pumps would work. And when the floods finally did come, they were told the government would be there to manage the crisis.

But the government cannot manage crisis, as the response to Katrina demonstrated. The local government fled. The state government was dithering. And the federal government actively worked to prevent good things from happening. The thousands and millions of acts of private heroism that took place after Katrina occurred despite the government and not because of it.

And yet what lessons does the political culture want us to take from this? It is the same lessons we are instructed to learn after NASA spends and spends and still can't seem to make a reliable space shuttle. We are told that NASA needs more money. The public schools absorb many times more — thousands times more — in resources than private schools, and still can't perform well. So we are told that they need more money.

The federal government spends trillions over years to "protect" the country and can't fend off a handful of malcontents with an agenda. And so we are told that the government needs to start several new wars and erect a massive new bureaucracy and put sections of the country under martial law at the slightest sign of trouble.

So too, Congress can allocate a trillion dollars to fix every levee, fully preventing the last catastrophe, but not the next one. The real problem is the same in all these cases, not insufficient resources but public ownership and management.

Public ownership has encouraged people to adopt a negligent attitude toward even such obvious risks. Private developers and owners, in contrast, demand to know every possible scenario as a way to protect their property. But public owners have no real stake in the outcome and lack the economic capacity to calibrate resource allocation to risk assessment. In other words, the government manages irresponsibly and incompetently.

Actually, it was Mr. Bush who said one of the most sensible things, on September 2, 2005: "If you want to help, if you're listening to this broadcast, contribute cash to the Salvation Army and the Red Cross…. They're on the front lines providing help to the people who need help."

But it was two weeks later when his other instincts kicked in and he delivered a very different message, one that is deeply alarming. He said: "It is now clear that a challenge on this scale requires greater federal authority and a broader role for the armed forces — the institution of our government most capable of massive logistical operations on a moment's notice."

Interesting that his beloved military was not there at a moment's notice. It now cites its own failures as the great excuse to expand its powers. So the government will spend the next several years preparing for another Katrina that will never come, just as it spent the last several years preparing for another 9-11 that will never come. The next crisis will be something completely unexpected, and once again the government will fail. But we will be left with a government with some very bad habits, among which are declarations of martial law, mandatory evacuations, gun and price controls, and other totalitarian ways.

And given that that this is a Republican administration with its own internal culture, and its attachment to military means, we get what can only be described as the continuation of the fascist track: the militarization of the country under its own armed forces.

So far as I know, this passing remark by Mr. Bush has provoked no commentary in the national press. Commentators in the organized conservative movement have displayed an appalling deference to administration's priorities, with National Review consistently arguing for more spending and militarization, Rush Limbaugh calling for price gougers to be strung up, and even some free-market friends calling for billions to rebuild New Orleans as a way of showing terrorists that we won't let the weather get in the way of progress. On the last point, I kid you not.

Conservatives have been especially bad on tolerating egregious uses of the military. We need to reflect on what it means to have the military take over in the event of crisis. What kind of ideology promotes such things, and looks the other way when it happens? I think I know, and it serves as a reminder that not all threats to freedom come from the Left.

A clue comes from the neo-Nazi novel called the Turner Diaries, sometimes cited as the motivating force for the bombing of the Oklahoma federal building, which ends in what the author regards as a political utopia. After a world war that exterminates all non-whites, a military regime takes over the United States and centrally plans the economy under permanent martial law. All food and water are distributed on military trucks, all production takes place on a planned basis, and the merchant class is required to obey or be shot.

The author describes this race-based national socialism as if it is a system with an inherent appeal to the reader, and perhaps there are people economically ignorant enough and full of enough loathing for humanity and freedom to regard it as attractive. I do know that in our own times there are people waiting in the wings who long for power and who are drawn to the ideal of a militarized society and a centrally managed economy. Some call themselves conservatives, and they are as much a threat to civilization as those who call themselves liberals.

But let me end with several notes of optimism. The first is implied in all that I said above. The government cannot actually do what it promises, and there is a way in which we can only be thankful for that. It cannot succeed in managing a central plan. Its plans will always fail. The government tries to use its failures as an excuse for more power, but with every failure comes a substantial degree of public humiliation for the public sector, and that humiliation can provide a basis for the undoing of government authority.

Some people say that a loss of government authority will mean the breakdown of civilization. Actually it will create the preconditions for the reestablishment of civilization, and in a state of freedom that can happen very quickly. The aftermath of Katrina illustrated in a million individual acts of charity and enterprise that people can manage their affairs, even amidst the chaos.

The calamity following Katrina was an egregious display, one that gave the federal government a black eye. The Democrats will continue to use this to harm the Republicans, which is fine by me, but it is not just Mr. Bush that is suffering, but the whole apparatus of central planning by decree from above. A government that cannot manage a crisis should not be trusted to manage anything at all. Thanks to Katrina and its dreadful aftermath, I think it's fair to say that the age of not trusting government has returned with a vengeance.

It took decades for the rot to give way underneath the Soviet apparatus of central planning. But eventually the implausibility of the entire project was no longer possible to deny. It gave way under an intellectual reaction against the whole of socialism. We are seeing something like that take place today, as government fails in Iraq and New Orleans and in every place around the country and the world where it causes problems and creates no solutions.

The age of confident central planning is behind us. Right now, the state is just trying to keep its head above water. If freedom is to have a future, the time will come when it will sink to an ignoble end, and we will wonder how we ever believed in this myth called government crisis management.

The advocates of freedom and the partisans of private enterprise will be there with the intellectual equivalent of flotillas, barges, buses, helicopters, and the whole apparatus necessary to rescue liberty from every attempt to kill it. And when our City on a Hill comes to be, it will be privately built to withstand any flood.
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