What Ails You, Economy?

What Ails You, Economy?

The Keynesian is ever mistaking economic activity for economic growth, credit expansion for wealth creation, profligacy for progress. Growth, wealth, progress. He uses his own definitions of each to reinforce his definitions of the others. And they are all fallacious.

When the Austrian tells the Keynesian that the printing and spending of mere pieces of paper cannot lead to more wealth in society, the Keynesian retorts that it is undeniable that credit expansion and stimulus lead to more economic activity. In this he is technically correct. Printing more dollars and handing them out to those who would consume and invest them, does indeed lead to “activity,” even more perhaps than there otherwise would have been.

But our Keynesian assumes, or assumes that his audience will assume, that mere economic activity is growth, is wealth, is progress. Presumably this includes even that activity which our Austrian rightly considers overinvestment (more properly, malinvestment), overconsumption, and/or the proverbial breaking of windows, each of these a common side-effect of the Keynesian witchdoctor’s remedies (often intended to cure ailments caused by earlier interventions, some Keynesian, some not).

If the Keynesian’s definition of economic activity doesn’t (oh, but it does!) include these things then the burden of proof is on him to show that his prescriptions lead to more real growth than would their absence on an unhampered market. And that his incantations lead, on the whole, to economic health rather than disease. A free market is largely unencumbered by the ailments mentioned above so in order to do this it would need to be shown that the sicknesses that do affect it are somehow worse than those caused by intervention.

And to be sure, pure economic freedom isn’t perfect. It has its own share of maladies. But these are all coughs and sneezes by comparison. Cures, if they are needed at all, come from the market itself. The economic meddlers and potion peddlers only serve to make things worse.

We must admit that not even on the most unfettered of markets does all economic activity lead to growth. For human actors err, and the market punishes their errors. How much more is all this the case under a centrally-planned expansionary-monetary/stimulatory-fiscal regime?  And how much more severe will be the punishment?

Was I too Rash on Juries and Nullification?

Was I too Rash on Juries and Nullification?

I made a certain statement (a status update, not a comment) on Facebook, and in retrospect maybe it would have been better to have made it more intelligible (okay, and less harsh as well). Now instead I must go through the statement line by line and clarify and defend it. I don’t know if it is good blogging etiquette or not to drag Facebook into it, but this started out as a clarification for the Facebook crowd and transformed into something to big to post there. We’ll see, I guess. Here is the statement I made:

Idiots (to speak kindly) who call others cowards for trying to get out of jury duty, thereby eliminating the less than 0.00001% chance that that person might have to actually “help their fellow man” are perhaps no less dull and collectivist-minded than the feverish nationalist buffoons who make similar statements about “serving” overseas. The purpose of today’s “defense” system is to murder innocents abroad. The purpose of today’s “justice” system is to incarcerate innocents at home. Any person who wants no part in this is not only not a coward, that person is a hero. Anyone who says otherwise should put their money where their big, loud mouths are. How brave and principled are you really, huh tough guy? Quit yer bitchin’ and show me! Get the hell off of Facebook and the comments sections of blogs and put your own life and livelihood on the line.

This all started when a Facebook friend (a very well-known person in certain circles, but I guess I won’t bring up his name) mentioned he had been “conscripted” for jury duty. This interested me at the time because it was just days after I had sent in my own paperwork for jury duty (this would be the second time, click here for my thoughts on the first). As is usually the case with this particular person’s statuses, the comments section was on fire. But the debate was at least a little more civil than the one that took place in the comments section of a blog post that someone linked to in this Facebook thread. It was an article by the estimable Douglas French of  Laissez-Faire Books and the Mises Institute recounting how he had gotten out of jury duty by telling the lawyers in the voir dire process, and later the judge, that, if made a juror, even if he thought the defendant guilty, he would not convict. That even if he was the only such person, he would hang the jury and nullify a bad law.

To my surprise he was accused in several comments of being a hypocrite and a coward because he chose not to perjure himself in order to get on the jury so that he might actually nullify, rather than do as he had done by merely telling off the judge and the attorneys. Sure, some of these commenters concocted clever ways whereby Mr. French could have (hindsight is 20/20) spoken ambiguously in order to get on the jury and then nullify without technically committing perjury but doing this would have required not only premeditation, but also that the person (in this case a humble economist) perfectly answer any objection brought up by the two (three, if you count the judge) cross-examining lawyers in the voir dire process. This would be like expecting the Oakland Raiders to beat the New York Yankees. In Yankee Stadium. Playing baseball. That’s nothing if not an “undue hardship.” Despite having this explained to them (on both the blog and on Facebook) there were those that persisted in their stupidity and their rudeness. Their argument at the end of it all amounted to, “so what, you’re still a coward.”

Now let me explain what I meant by my original statement, line by line:

Idiots (to speak kindly) who call others cowards for trying to get out of jury duty…

These specific people really are idiots in my estimation. Not because they think jury duty might be a good way to help your fellow man, but because they readily abuse others who don’t think it is all it’s cracked up to be, and because, even after the latter view point has been soundly defended, still won’t make room for the fact that other people might have more important obligations (or even trivial druthers) than being at some magistrate’s beck and call all week, pressured into agreeing with 11 other people on something that might be worth disagreeing on.

…thereby eliminating the less than 0.00001% chance that that person might have to actually “help their fellow man”…

I am referring here not to pronouncing a “not guilty” verdict on falsely or mistakenly accused innocents (which is why juries ever came about in the first place, I believe, and is a very admirable thing to do), but specifically to hanging a jury thereby nullifying bad law. In order to even get on a jury to do this you basically have to lie in voir dire, which is perjury. The 0.00001% may or may not be exaggerated, but you don’t exactly hear about jury nullification every day so I bet it’s not too far from the mark. If I had been talking about mere “not guilty” verdicts this would be way off. That number is probably more like 50%.

…are perhaps no less dull and collectivist-minded than the feverish nationalist buffoons…

These jury-shamers I am talking about appear to be primarily libertarians, a group of people who seem to pride themselves on being bright and individualist-minded, so comparing them to those they despise the most (basically various shades of Neoconservatism, but in a pinch, Democrats who think Obama deserved his Nobel Peace Prize will do nicely) is the ultimate dig.

…who make similar statements about “serving” overseas.

The kinds of statements I am referring to in my comparison of jury-shamers to Neocons/Obama-Peacers are analogous to jury nullification, not analogous to “not guilty” verdicts. So maybe I’m talking about a person who admits in some cases that innocent people die even in the United States’ wars, but for the most part it’s just the bad guys. And then maybe, as if that didn’t make them look foolish enough, they make some statement to the effect of, “You can disobey immoral/unethical orders without being accused of insubordination, then court-martialed and punished.”

Note that these immoral/unjust orders might still somehow be lawful, or that even if they are unlawful, there is still pressure from command and your peers to carry them out. But let’s not be coy: just because something is done by the book does not mean it is right or correct or even excusable. Having rules of engagement may be better than having no rules, but they are no substitute for not invading and occupying in the first place.

The purpose of today’s “defense” system is to murder innocents abroad.

Collateral damage is murder, so even if these wars are motivated by good intentions, that’s what’s going on. However, I don’t think we should give the same exact Powers That Be that we accuse of being malevolent at home the benefit of the doubt by assuming that they are somehow benevolent abroad.

The purpose of today’s “justice” system is to incarcerate innocents at home.

This is somewhat different than saying that the “defense” system’s purpose is to murder innocents abroad. While there may be collateral damage of sorts, that is not what I am talking about. Here, I am talking about bad law. You may be “guilty” of breaking the law, so in that sense the purpose of the “justice” system is to incarcerate the “guilty”, and not as I said, the innocent. But this assumes that the laws in question are all good.

That is quite an assumption to make about the government of the supposed freest nation on earth that happens to have the highest incarceration rates in the world. The elephant in the room here is the Drug War. Most of us can agree that drugs are generally bad news, and that the violence associated with drugs is even worse news, but far too few seem to realize that this is just the natural result of prohibition. Surprise! It didn’t work with alcohol, which, according to some metrics, is FAR MORE DANGEROUS than certain hard drugs, but somehow these people thought it was going to work with pot and heroin? In a post-1960s world?! What were they smoking?

Any person who wants no part in this is not only not a coward, that person is a hero.

Freedom of conscience. That’s all this is. Would we want to live in a world where people are led to believe that exercising this right somehow makes them spineless (again, we can all agree on something, that just having your conscience tell you something doesn’t make that something right)? Well then, just open your eyes. Look out the window. Turn on the TV (the only channel immune to this might be the Weather Channel). People with an actual conscience or actual principles are laughing stocks. They are the ultimate fools in the eyes of the world. And for that, yes, even the ones I disagree with, they have my respect.

Anyone who says otherwise should put their money where their big, loud mouths are.

Here I’m only applying the same standards to the accusers that the accusers are applying to the accused. Judge not, that ye be not judgedThou hypocrite, first cast out the beam out of thine own eye; and then shalt thou see clearly to cast out the mote out of thy brother’s eyeTherefore, all things whatsoever ye would that men should do to you, do ye even so to themPhysician, heal thyselfHe that is without sin among you, let him first cast a stone.

How brave and principled are you really, huh tough guy? Quit yer bitchin’ and show me! Get the hell off of Facebook and the comments sections of blogs…

Well, it sounded good at the time. But as a wise guy once told me, “vulgarity is no substitute for wit.”

…and put your own life and livelihood on the line.

In the case of “defense” and the military, especially in time of war, your life is on the line. No one disputes that. In the case of jury duty, especially when you perjure yourself in order to nullify bad law, it could very well be your livelihood that is threatened. But even where there is no perjury or nullification going on, there is still a case to be made that your livelihood is in danger.

I understand it is the situation in probably most states that your employer cannot fire you (and may even be made to remunerate you in some way) for taking time off for jury duty. Were it not for this law (which places burdens on employers that arguably shouldn’t be there), there’s at least the possibility that you would not be retained/paid for this “time off”, especially if your employer was not particularly fond of the unjust and immoral incursions of the government into everyday life. And why shouldn’t your employer be able to look out for his own best interests, even if it means firing your sorry behind? Does he “owe” you your job, indefinitely, no matter what? If it wasn’t for our crummy system and you were to be fired or lose pay because of jury duty, would your instinct really be to blame your employer? Not the people who conscripted you for jury duty in the first place? Or not the people who made life so miserable for some so-called criminal that you felt it was your duty to aid that person by nullifying the bad law he was being tried for breaking?

Additionally, since jury duty, unlike the military (these days at least) is something the state compels people to do (ultimately backing up their threats with actual guns, prisons, and larceny), telling these loud mouth accusers to put their livelihood on the line needn’t mean they have to serve on a jury (something they cannot do unless called upon). It could very well mean instead that they go out and agitate through means of civil disobedience: resisting arrest, harassing magistrates and LEOs, and so forth. Don’t act so surprised by these seemingly bizarre suggestions; we are talking about libertarians here, after all. And civil disobedience, though not quite so much as actual violent acts (only justified in self-defense, need I remind you?), can very well land you in the slammer and/or ruin your reputation as a good cog in the machine. If that doesn’t threaten your livelihood, I don’t know what does.

I Warned You About This Guy

I Warned You About This Guy.

Steve Daines voted with the Dems. Surprise. It didn’t really take any special insight for me to predict that Montana’s sole congressman would turn out like 99% of his colleagues. Power corrupts and that’s all you really need to know. My own opinion is that it didn’t really matter whether the government stayed “shut down” or not. It’s a sham either way. And a politician taking a position on it was little more than posturing. So his vote is irrelevant as to the long run outcome (we are on an unsustainable trajectory no matter what), but it speaks volumes about the man and his rhetoric.

Standard Oil, Like a Phoenix Rising from the Ashes (Bust the Trusts! The Right Way for Once!)

Standard Oil, Like a Phoenix Rising from the Ashes (Bust the Trusts! The Right Way for Once!).

What is it with me and bashing evil corporations of late (not necessarily on this blog, though I’m sure if you look through the archives…)? I hope it’s not habit-forming.

Well, could be that some of them, at least at some point in their history, became what they are with special thanks to the government. Could also be that some of them have been grandfathered in and are protected from competition from those who haven’t been grandfathered in. Might also have a little something to do with the fact that some of them have benefitted from foreign policy meddling and institutionalized theft committed by the state. But other than that, I have few complaints. Here’s a comment I left (since edited) at the end of a survey that sparked this article:

“I like surveys that have political and societal relevance. I believe in the desirability and functionality of free markets. And Exxon Mobil is a great company all things considered. However, they could not have gotten to where they are today without a little outside help. Some of this came from the consumer, to be sure. But some of it came from the state through the virtual cartel status granted to all major [US, Dutch, and British, at least] oil companies going back at least to the 1953 [CIA instigated] Iranian Coup… [This] greatly benefitted the Seven Sisters oil companies (a number of which [were Standard Oil descendants that later] merged to become Exxon Mobil) and is one of the main causes of unease in the Middle East and around the world today. They, like all oil companies, great and small, foreign and domestic, have also benefitted from oil’s status as de facto commodity backing for the US dollar. The world reserve currency known as the Federal Reserve Note is denominated in crude oil. The oil companies have a vested interest in maintaining this corrupt arrangement.”

Federal Reserve Octopus

What say you? Are some/most/all big corporations what they are today more thanks to competition or more thanks to monopoly? Here’s one for extra points: what about “small business,”? Aren’t they also protected from competition, in certain industries more than others, by regulations that keep newcomers out and by subsidies that keep competing technologies down?

For the record, anti-trust legislation actually has the effect of restraining competition, thereby securing monopoly, so when I say “bust the trusts” I don’t advocate anti-trust legislation, I simply want to let free market competition give some of these bigger guys a run for “their” money! The burden of proof is on them to show that they would really be as big as they are today were they under a system of laissez-faire capitalism. I guess you could say I’m with the left-libertarians on this one (except for the fact that I dared to use the word “capitalism”).

Standard Oil Octopus

Also, Brandon and I had our little chat on conspiracy theories. The collusion of big businesses (usually involving the state at some level) to form cartels (take note that Standard Oil, known to us today as Exxon Mobil and Chevron, was owned by John D. Rockefeller, who also had a hand in creating the Federal Reserve; I wouldn’t say everything that has happened in regards to these two was meticulously plotted, but I wouldn’t call it mere coincidence, either) happens to be one of the ones that I subscribe to. I think Adam Smith can back me up on this one. And unlike some who use the quote to support anti-trust legislation, I’ll give you more than just the first two sentences in order to show why such laws are not the best conclusion:

People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty and justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary.

Monopoly Octopus