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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?


To: Geoff Altman who wrote (40839)2/2/2010 1:36:29 AM
From: Peter Dierks  Respond to of 71588
 
I like Thomas Sowell. He is a clear thinker.



To: Geoff Altman who wrote (40839)2/2/2010 1:40:07 AM
From: Peter Dierks1 Recommendation  Read Replies (1) | Respond to of 71588
 
Politicians in Wonderland
By Thomas Sowell
February 2, 2010

There was a recent flap because three different members of the Obama administration, on three different Sunday television talk shows, gave three widely differing estimates of how many jobs the president has created.

That should not have been surprising, except as a sign of political sloppiness in not getting their stories together beforehand. They were simply doing what Barack Obama himself does -- namely, just pulling numbers out of thin air. However, being more skilled at creating illusions, the president does it with more of an air of certainty, as if he has gone around and counted the new jobs himself.


The big question that seldom-- if ever-- gets asked in the mainstream media is whether these are a net increase in jobs. Since the only resources that the government has are the resources it takes from the private sector, using those resources to create jobs means reducing the resources available to create jobs in the private sector.

So long as most people do not look beyond superficial appearances, politicians can get away with playing Santa Claus on all sorts of issues, while leaving havoc in their wake-- such as growing unemployment, despite all the jobs being "created."


Whatever position people take on health care reform, there seems to be a bipartisan consensus-- usually a sign of mushy thinking-- that it is a good idea for the government to force insurance companies to insure people whom politicians want them to insure, and to insure them for things that politicians think should be insured.

Contrary to what politicians expect us to do, let's stop and think.

Why aren't insurance companies already insuring the people and the conditions that they are now going to be forced to cover? Because that means additional costs-- and because the insurance companies don't think their customers are willing to pay those particular costs for those particular coverages.

It costs politicians nothing to mandate more insurance coverage for more people. But that doesn't mean that the costs vanish into thin air. It simply means that both buyers and sellers of insurance are forced to pay costs that neither of them wants to pay. But, because soaring political rhetoric leaves out such grubby things as costs, it sounds like a great deal.

It is not just costs that are left out. It is consequences in general.

With all the laments in the media about skyrocketing unemployment among young people, and especially minority young people, few media pundits even try to connect the dots to explain why unemployment hits some groups much harder than others.

Yet unusually high unemployment rates among young people is not something new or even something peculiar to the United States. Even before the current worldwide recession, unemployment rates were 20 percent or more among workers under 25 years of age in a number of Western European countries.

The young have less experience to offer and are therefore less in demand. Before politicians stepped in, that just meant that younger workers were paid less. But this is not a permanent situation because youth itself is not permanent, and pay rises with experience.

Enter politicians. By mandating a minimum wage that sounds reasonable for most workers, they put a price on inexperienced and unskilled labor that often exceeds what it is worth.

Mandated pay rates, like mandated insurance coverage, impose on buyers and sellers alike things that they would not choose to do otherwise.

Workers of course prefer higher wage rates. But the very fact that the government has to impose those wage rates means that workers were unwilling to risk not having a job by refusing to work for less than the wage rate that has been mandated. Now that choice has been taken out of their hands, with the hidden cost in this case being higher unemployment rates.

It is of course no secret that there is no free lunch. It is just an inconvenient distraction that gets left out of political rhetoric.

realclearpolitics.com



To: Geoff Altman who wrote (40839)2/9/2010 7:04:23 PM
From: Peter Dierks  Read Replies (1) | Respond to of 71588
 
A Rand Revival
By Cathy Young
February 9, 2010

Ayn Rand, the stimulating Russian-born American writer, would have turned 105 years old on February 2. This anniversary takes place amidst a Rand mini-revival, sparked by the Obama Administrations push to expand government and resulting fears of socialism on the march. There has been a spike in sales of Rand's books, particularly Atlas Shrugged, the 1957 novel depicting a quasi-totalitarian future America in which the best, the brightest and the most productive go on strike in protest. Some bloggers have bandied about the idea of such a strike under Obama going Galt, after John Galt, the leader of the revolt in the novel. Rand has recently appeared on the cover of Reason, the libertarian monthly (where I am a contributing editor) and of GQ where she was the target of a profane, vitriolic rant.

Who is Ayn Rand, and what does her renewed popularity mean? A refugee from Soviet Russia who fled Communist dictatorship in the 1920s, Rand called herself a radical for capitalism rather than a conservative. Her vision, articulated in several novels and later in nonfiction essays as the philosophy of Objectivism, earned her a sometimes cult-like following in her lifetime and beyond it.


Politically, Rand wanted to provide liberal capitalism with a moral foundation, challenging the notion that communism was a noble but unrealistic ideal while the free market was a necessary evil best suited to humanity's flawed nature. Her arguments against "compassionate" redistribution, and persecution, of wealth have lost none of their power and persuasiveness. In an era when collectivism was often seen as the inevitable way of the future, she unapologetically asserted the worth of individual and each persons right to exist for himself.

However, Rand's radicalism went further, rejecting the age-old ethic of altruism and self-sacrifice. While she was hardly the first philosopher to advocate a morality of individualism and rational self-interest, she formulated it in a uniquely accessible way and a uniquely passionate one, not as a dry economic construct but as a bold vision of struggle, creative achievement and romanticism.

All this accounts for much of Rand's appeal. But that appeal is severely limited by the flaws of her world-view.

One of those flaws is Rand's unwillingness to consider the possibility that the values of the free market can coexist with other, non-individualistic and non-market-based virtues--those of family and community, for example. Instead, Rand frames even human relations in terms of trade (our concern for loved ones is based on the positive things they bring to our lives) and offered at best lukewarm support for charitable aid. When charity is mentioned in Rand's fiction, it is nearly always in a negative context. In Atlas Shrugged, a club providing shelter to needy young women is ridiculed for offering help to alcoholics, drug users, and unwed mothers-to-be.

Family fares even worse in Rand's universe. In her 1964 Playboy interview Rand flatly declared that it was "immoral" to place family ties and friendship above productive work; in her fiction, family life is depicted as a stifling swamp.

In pure form, Rand's philosophy would work very well if human beings were never helpless and dependent on others through no fault of their own. Unsurprisingly, many people become infatuated with her philosophy as teenagers only to leave it behind when concerns of family, children, and aging make that fantasy seem more and more implausible. For some, Rand becomes a conduit to more sensible small-government philosophies.

But Rand's work also has a darker, more disturbing aspect--one that, unfortunately, is all too good a fit for this moment in America's political life. That is her intellectual intolerance and her tendency to demonize her opponents. Speaking through her hero John Galt, Rand declared, There are two sides to every issue: one side is right and the other is wrong, but the middle is always evil. She lambasted free-market theorists such as Friedrich A. Hayek for their lack of purity in allowing the government a legitimate role in alleviating poverty and its effects. In her novels, supporters of various forms of collectivism--moochers and looters--are shown as acting by stealth to take over and corrupt society and culture.

Rand's detractors have often branded her a fascist. The label is unfair, but her work does have shades of a totalitarian or dictatorial mentality. To refute this charge, Rand's defenders point to her explicit statements that force is acceptable only in self-defense. Yet her fiction sometimes seems to contradict this principle.

Particularly troubling is a passage in Atlas Shrugged in which bureaucratic incompetence and arrogance lead to a deadly train wreck. Rand sarcastically notes that many people would regard the dead passengers as innocent victims of a tragedy and then, in a series of brief character sketches, endeavors to show that they were far from innocent: All had benefited from evil government programs, promoted evil political or philosophical ideas, or both. Especially chilling is Rand's casual mention of the fact that one of these evildoers, a bureaucrat's wife, is traveling with her three young children.

Rand does not advocate these people's murder (though she is sympathetic to a trainmaster who chooses not to avert the disaster, partly in revenge against the regulators). Yet she clearly suggests that they had it coming. Both in Atlas Shrugged and in Rand's nonfiction essays, political and ideological debates are treated as wars with no innocent bystanders.

Rand's achievement as a promoter of the ideas of individual liberty, reason, and the free market remains unquestionable. In the 21st century, when our public discourse is often dominated by religious conservatives on the right and collectivists on the left, such a message could have been a rallying point for what the neo-Objectivist philosopher David Kelley calls "Enlightenment-based values." Unfortunately, her extremism limits her value as a messenger, and our current intellectual climate makes it likely that many of her new admirers will adopt not her best traits but her worst: intolerance, paranoia, and dehumanization of the enemy.

Cathy Young writes a weekly column for RealClearPolitics and is also a contributing editor at Reason magazine. She blogs at cathyyoung.wordpress.com. She can be reached at cyoung@realclearpolitics.com

realclearpolitics.com