On Dec. 5, 1933, the 21st Amendment to the U.S. Constitution was ratified, repealing the 18th Amendment and bringing an end to the era of national prohibition of alcohol in America. Utah became the 36th state to ratify the amendment. Pennsylvania and Ohio had ratified it earlier in the day.
Andy Stern, writing in the Wall Street Journal, covers familiar ground. They do things better elsewhere. Give up, America: adopt a foreign ideology. His title/subtitle combo — “China’s Superior Economic Model: The free-market fundamentalist economic model is being thrown onto the trash heap of history” — provides a grand example of passive voice construction allowing evasion of the crucial elements: Who throws what away?
First, the what: “The conservative-preferred, free-market fundamentalist, shareholder-only model” described as “so successful in the 20th century” . . . with no discussion, absolutely none, as to what extent our business life is actually run by this “model.”
“Shareholder only”? Some of the biggest businesses in the U.S. are privately held, not publicly traded. Not a few huge and influential enterprises, like the absurdly mismanaged postal service, the disruptive Fannie and Freddie, and the morally bankrupt Federal Reserve are government-created and not public in the shareholder-model sense. Add in taxes, regulation, and a perpetual deficit government budget, backed by the inflationist Fed, and the truth pops up exactly opposed to Stern’s: America’s a very mixed “mixed economy.”
In this context, who holds to “free-market fundamentalism”? A number of people, almost exclusively on the outs. The richest and most powerful insiders work against free markets, no matter what they say. Hence bailouts, subsidies, and a whole lot of “planning.”
China may be “blessed” with a huge population aiming to get ahead and with a government that runs budget surpluses, while we are cursed, primarily, with continuous deficit financing of the federal government, and everything that entails.
The solution? Reassert the model Stern wants to chuck.
This is Common Sense. I’m Paul Jacob.
“We do not want to fritter away our short lives in chains, even if they are golden chains of prosperity and power.”
On 4 Dec. 1942, Zofia Kossak-Szczucka and Wanda Krahelska-Filipowicz set up the underground Council for the Assistance of the Jews in Warsaw, Poland, codenamed Żegota. Providing medical care, relief money and false identity documents for those hiding in German-occupied Poland, the organization helped save some 4,000 Polish Jews.
On this day in 2005, an estimated 60,000 to 250,000 people in Hong Kong protested for democracy, calling for universal and equal suffrage, the right to directly elect the Chief Executive and all the seats of the Legislative Council, and am end to the appointed seats of the district councils.
What do you call a defense bill that allows indefinite detention at Guantanamo Bay of American citizens accused but not convicted of assisting terrorists without due process? Tyranny. Unconstitutional. Rand Paul compares the now-pending legislation to the hated Egyptian Emergency Law enforced against dissidents for 30 years, which ended with the overthrow of the Mubarak regime:
On Dec. 3, 1943, Alan Bock was born. Bock was an American libertarian author, and a senior editorial writer and former editorial page editor for the Orange County Register. He wrote regular columns for WorldNetDaily and Antiwar.com and was a contributing editor at Liberty magazine. Bock was the author of four books: Ecology Action Guide, The Gospel Life of Hank Williams, Ambush at Ruby Ridge, and Waiting to Inhale: the Politics of Medical Marijuana. Bock died earlier this year, on May 18. He would have been 68 today.
“It has been my observation that going into government, especially in a high-visibility job, lowers a person’s IQ by at least 50 points.”
Politics is often the art of lying about the effects of policy, and Hugo Chavez, Venezuela’s Prevaricator-in-Chief, is a master politician. As consumer-price inflation hits a 27 percent per annum rate, he blames capitalism.
One report summarizes his position: “Mr. Chavez said the market had become a perverse mechanism where the big monopolies, the big trans-nationals, and the bourgeoisie, dominate and ransack the people.”
So he’s extended price controls from staples to all sorts of goods, with some prices being immediately subjected to a rate freeze. Big firms will have to report costs to the government, so bureaucrats can determine a “fair price.”
Were it not a ratcheting up of oppression and hardship, I’d say this is all getting rather funny. Price controls notoriously fail to achieve what they aim. In the United States, Nixon-era wage and price controls set stagflation into overdrive. Long lines at the gas pumps, shortages in supermarkets, and rising prices. What a mess.
There’s good theory to explain why price floors and price ceilings cause major problems. But according to the head of the country’s price control board, “The law of supply and demand is a lie.”
Hugo and his cronies deny the relevance of the central bank’s doubling the volume of money in circulation since late 2007. Supply of money increases? No possible effect on skyrocketing prices, supply and demand being a lie, you see.
Meanwhile, people have begun to hoard products. It’s now almost impossible to even find coffee in Venezuelan stores.
This is Common Sense. I’m Paul Jacob.
On Dec. 2, 1777, according to legend, Philadelphia housewife and nurse Lydia Darragh saves the lives of General George Washington and his Continental Army when she overhears the British planning a surprise attack on Washington’s army.
On this day in 1859, abolitionist John Brown is hanged for his raid on Harper’s Ferry. He wrote, “The crimes of this guilty land will never be purged away but with blood.”
“Power concedes nothing without a demand. It never did and it never will. Find out just what a people will submit to, and you have found out the exact amount of injustice and wrong which will be imposed upon them; and these will continue till they are resisted with either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those whom they oppress.”