Categories
ideological culture Popular too much government

Slaves All?

A bizarre argument is gaining popularity: the United States of America not merely allowed slavery in its first hundred years, it depended upon it, grew rich by it …  and, “therefore,” not only the federal government but also its constitutional principles and even capitalism are all tainted … and … “therefore” … we must have socialism!

Why long-​dead chattel slavery requires political slavery now is hard to figure.

And no, you should not need to read George Fitzhugh’s Cannibals All! or Sociology for the South to see that socialism is slavery.*

But these days it is more common to link slavery with … freedom (this is hard even to type) in the form of free markets. 

Leftists who make this linkage are helped by some popular historians who argue that since the   antebellum South (1) grew faster, economically, than the North, (2) slavery was profitable for slaveholders, and (3) slaves became more productive in picking cotton, the “peculiar institution” was key to American success. Vincent Geloso, a visiting assistant professor of economics at Bates College, writing for the American Institute for Economic Research, ably shows that not one of these three theses hold up to scrutiny.

Most importantly, though, Geloso demonstrates that the slavery system was like all other interventionist systems, with some people (slavers) benefiting at the expense of others (slaves, of course, but also free people … through a variety of subsidies).

Geloso uses the term “deadweight loss” to make his case that slavery made America poorer.

He is certainly not wrong. But once you understand why freedom and prosperity are linked, not much economic jargon is necessary.

This is Common Sense. I’m Paul Jacob.


* This pro-​slavery southerner did argue against the very idea of liberty and free labor on the grounds that freedom is bad and socialism is good. Indeed, “Fitzhugh disliked ‘political economy’ (as economics was then called), which he saw as ‘the science of free society,’” economist Pierre Lemeiux explains, “as opposed to socialism, which is ‘the science of slavery.’” That forthright appraisal is about all that’s good in Fitzhugh.

PDF for printing

slave, ancient, Roman, Rome, chains,

Photo by Jun on flickr

See all recent commentary
(simplified and organized)

See recent popular posts


Categories
free trade & free markets national politics & policies too much government

More of the Same?

For those who hated NAFTA, and have supported Donald Trump in his complaints about “the very bad deal” that the North American Free Trade Agreement [allegedly] has been, I ask: what was bad about NAFTA that isn’t in Donald Trump’s new version, the United States-​Mexico-​Canada Agreement?

Actual question. I am not in the least bit interested in gotchas, here. I am willing to celebrate USMCA when (a) I can make sense of it and (b) it proves not just more of the same.

The thing I liked best about NAFTA was that it had “Free Trade” in the title. I like free trade. Trade is good; freedom is good. It is not generally bad to trade with Mexico and Canada — for Mexicans, Canadians, and Americans. I simply have trouble believing that politicians and their aides (along with overly-​friendly lobbyists) know better than market competition what the terms of those zillions of deals should be.

But I freely admit, what I didn’t like about NAFTA was that there was more “free trade” in the title than in the agreement itself.

NAFTA was managed trade. 

As far as I can make out, so is USMCA.

Oddly, I just heard two of the three Daily Wire guys* praising USMCA for setting quotas on how much of what can be produced where.

Quotas and mandates and the like are not free trade.

“Managed trade” is just another way of saying “protectionism.” Savvy politicians don’t even like calling it “managed trade.” They call it “fair trade.” 

Free trade is fair enough. Politicians’ “fair trade” isn’t free enough.

This is Common Sense. I’m Paul Jacob.

 


* Andrew Klavan and Michael Knowles, recent podcasts: dailywire​.com.

PDF for printing

 

Illustration: Dutch free traders in Harbor Scene by Abraham Storck  (1644 – 1708)

 

Categories
Accountability free trade & free markets general freedom national politics & policies property rights responsibility too much government U.S. Constitution

The Trump Trade Enigma

President Donald J. Trump, former “reality TV” star, often seems merely to skirt reality.

“Our trade deficit ballooned to $817 billion,” President Trump exaggerated to the “men and women of U.S. Steel” last week. 

“Think of that. We lost $817 billion a year over the last number of years in trade,” he went on. 

“In other words, if we didn’t trade, we’d save a hell of a lot of money.”

This is the sort of dopey bunk a drunk at a bar might say, after the fourth shot had obliterated any remnant of economic understanding from his synapses.

But the president said this in Granite City, Illinois, in front of cameras, a live mic, and a cheering crowd.

And yet, as I wrote yesterday at Townhall, Donald Trump is now explicitly aiming at a worldwide free trade policy, negotiating to break down trade barriers and get rid of subsidies on … well, “non-​automobile industrial goods.”

I’m almost afraid to ask him why not all industrial (and, for that matter, agricultural) products. Could one expect a coherent answer from someone who does not understand that an $817 billion “trade deficit” means that we, the consumers of the United States of America, got stuff from each billion spent? Each dollar?

And yet, if he pulls off worldwide free trade agreements — for whatever reason — he may almost be worth the attention that Bussa Krishna, of the southern state of Telangana, India, gives him.

The man set up a shrine to worship Donald Trump.

I will never do the same. But I’d tip my hat to almost anyone who fosters trade, and the peace and progress trade brings to the world.

This is Common Sense. I’m Paul Jacob.

 


PDF for printing

 

Categories
Accountability free trade & free markets general freedom moral hazard nannyism responsibility too much government

Wabbit Season — or Duck Responsibility Season?

Venezuelans are starving. The country’s children are malnourished and — if something is not done soon — “it will be very difficult for these children ever to get back onto their nutritional growth curve.”

That is the testimony of the director of Caritas Venezuela.

Clearly, “Bolivarian” socialism has failed.

And yet, dictator Nicolas Maduro blames American “sanctions” for “exacerbating” the situation.

And offers up a “Rabbit Plan” to feed the people.

Yes, Maduro has called upon his countrymen to raise rabbits … and eat them.

But the source of the dark comedy isn’t just a dictator waxing eloquent on bunnies. “There is a cultural problem because we have been taught that rabbits are cute pets,” said the agriculture czar … whose first name is “Freddy.”

Holding a televised press conference with Maduro himself, last week, he insisted that “a rabbit is not a pet; it’s two-​and-​a-​half kilos of meat that is high in protein, with no cholesterol.”

The funny part — the gallows humor, here — is this is what the grand planning of socialism has come to: not mass collaboration and an extended division of labor, but the people feeding themselves on small plots of land.

The Inca had developed a more effective mode of socialism.*

Just as humiliating for Bolivarians must be the trade embargo charge. Socialism is all about how superior government control is to the “anarchy in production” of market life. To blame their problems even a little on a capitalist country >not trading with them doesn’t merely admit defeat, it evades the last shred of responsibility.

I have a better “Rabbit Plan”: the tyrants should hop on down the bunny trail … freeing Venezuelans to recover.

This is Common Sense. I’m Paul Jacob.

 

* It depended upon radical inegalitarianism, subordination, drudgery, servility, and lack of any meaningful freedom.


PDF for printing

 

Categories
crime and punishment folly free trade & free markets general freedom nannyism national politics & policies responsibility too much government

Serving Consumers? Punish!

New media ballyhooer Douglas Rushkoff made waves this week. Citing an un-​named friend who went hysterical about Amazon​.com’s purchase of Whole Foods, he asserted that such “unease is widespread, and has raised new calls for breaking up Jeff Bezos’s impending monopoly by force.”*

The company has “surely,” he claimed, “reached too far.”

Apparently, serving customers exceptionally well is bad for business.

Yes, he almost totally ignored the pro-​consumer benefits of Amazon. Had to — his case makes no sense when you factor in us consumers. He focused, instead, on Amazon’s success in terms of its recent “online and offline retail sales growth” and its control of 40 percent of cloud storage and streaming services.

He went on to spin a bizarre fantasy about how disruptive bigness is in business. His economically illiterate farrago reminds me of the sad case made against pre-​antitrust Standard Oil, a company which, during the whole time of its growth prior to break-​up, kept on producing more fuel at ever-​decreasing prices.** Broken up because of … fears about how businesses change. And of bigness itself.

As long as consumers are being served, this reaction strikes me as paranoid. When businesses get big (and even near-​monopolistic) and then cease to serve customers, they fail. While serving customers, there is no call for fretting over businesses that move from one success to another  — which is what Rushkoff has the gall to worry about. 

The call for Amazon’s break-​up over-​sells government and necessarily under-​serves consumers.

This is Common Sense. I’m Paul Jacob.

 

* Rushkoff’s piece in Fast Company was the first I heard of such a “call.” Rushkoff is the coiner of the term “media virus” and a sort of populist pusher of market skepticism.

** For the bizarre story of the Standard Oil case, and how it made no economic sense whatsoever, see Dominick T. Armentano, Antitrust: The Case for Repeal (Ludwig von Mises Institute, 1999), p. 41 – 43, and Antitrust and Monopoly (Independent Institute, 1990), pp. 57 – 60.


Printable PDF

 

Categories
Accountability free trade & free markets national politics & policies responsibility

No Set Prices?

“Paul,” an old boss of mine used to say, “there are no set prices.”

He meant that when a vendor said it would cost x, my choice wasn’t just yes or no. Negotiate. I could say, “Boy, I’d sure like that, but golly, I can’t afford to pay x. Any chance you’d consider 4/​5ths of x?”

It was amazing how often I bought what was priced at x for less than x.*

Consider government waste — from the Pentagon’s $400 hammers to millions in cost overruns for weapons systems. Politicians pay lip service to getting waste under control, but actually do something about it? 

Yeah, right.

That’s why I took notice last December when then President-​Elect Trump tweeted “Cancel order!” in response to the high price of a future Air Force One from Boeing. Then, Trump sent Lockheed stock down 3 percent with another tweet: 

Based on the tremendous cost and cost overruns of the Lockheed Martin F‑35, I have asked Boeing to price-​out a comparable F‑18 Super Hornet!

“Mr. Trump … would like to squeeze Lockheed for a better deal …” the New York Times explained, adding that Trump had “sent shock waves through the military industry.”

Sen. Richard Blumenthal from Connecticut, where the F‑35’s engines are manufactured, responded, “The suggestion that costs are out of control is just plain wrong.” 

Well, last week, CNN reported that, “Defense giant Lockheed Martin has agreed to sell 90 new F‑35 fighter jets to the US Defense Department … a deal that amounts to more than $700 million in savings over the last batch of aircraft delivered.”

There are no set prices.

This is Common Sense. I’m skinflint Paul Jacob. 

* Even when a vendor wouldn’t budge on price, I could always call back a day later and say I’d finagled a way to afford it. Even then, the message that cost mattered likely started any future negotiations from a better position. 


Printable PDF