Friday, May 29, 2009

For all of my friends on the American Left

You suckers keep crying about how deregulation and Ponzi schemes are what got us into this mess, and I keep massaging my temples and shaking my head....

"It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a 'dismal science.' But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance."
- Murray Rothbard

You guys need to do some serious studying of economic theory and history before you pledge your life to defending the State.

Check out these articles and then we can talk about economics and the ill-effects of deregulation:
  • a teacher at St. Lawrence University has this to say to the Left on deregulation and free markets.
  • an anarchist explains how corporations actually benefit from the very State that Lefties and conservatives defend.
  • a professor at Loyola College in Maryland writes about deregulation myths here.
  • an eminent economist debunks the Reagan myth of deregulation.
  • another denouncement of Reaganomics and its supposed policies of deregulation.
  • here, an economist from Sweden explains how government - and NOT deregulation, created the current economic crises.
  • again, this time a teacher in Spain explains how the Federal Reserve banking cartel created the crises (I'll give you a hint, it was not because of deregulation).
  • this article points out that regulation actually contributes (rather heavily) to the fraudulence so prevalent on Wall Street today.
You suckers need to do some serious reading and some heavy pondering before you start casting stones at glass houses. The American economy has been heavily regulated for the past eight decades, and this is precisely what has laid the groundwork for an inevitable economic collapse, what has given rise to the corporate state and what has funded the American government's Imperial ambitions around the world.

The free market and deregulation did not cause this mess, government did. Failure to recognize this will ultimately make your lives and your family's lives that much harder.


Chelsea said...

Dude, that is rude. Look, just because people disagree with you, does not mean that they are ignorant OR unread.

There is a huge difference between theory and praxis, and proximate and ultimate causes. Often we are talking about two different things. (I’m supposing) You are interested in the ultimate causes of things and the theory behind it (i.e. the history and widening of the federal government in economic affairs and the politics of pure capitalism and private economics). While I am interested in the proximate causes of things and what we can do about it (i.e. recent legislation and logical future applications to solve the problem).

I have tried to be fairly abreast on our nation’s concerns even though I haven’t lived there for a year (or even a country with good news sources…gossip magazines don’t count I know). In my readings by top economic journalists and academic economists discussing the current economy (although you might take the republican stance that all media is liberal? I don't know), they argue that recent (i.e. the last 20 years) deregulation by our last 3 presidents has led to oversight (i.e. the failure of SEC to properly monitor the integrity or risk of large businesses, etc.) and predatory lending- all of which contributed to the current state of the nation. While it is very simplistic, I don’t think it is ignorant to say so. In fact, I am curious to hear what you think about it all.

While I might agree with your more longitudinal libertarian arguments about the role of the government in private business in general, I am dissuaded from taking them seriously because (a) you call all people who disagree with you or haven’t read your esoteric literature ignorant (b) you haven’t really outlined how ponzi schemes and deregulation DID NOT effect our current economic state (c) your arguments are typically based on a romantic view of the past that I disagree with and don’t include the consequences (often for women and minorities) of private business without regulation and (d) you have not offered a logical solution to the problem that is actually possible- a compromise if you will for those of us who like libertarian philosophy but think its applicability is flawed.

P.S. “Live Free or Die” is New Hampshire’s state motto.

The Crackshot Crackpot said...

BUSTED! You're right, Live Free or Die is N.H.'s motto....but it sounds good anywhere you put it.

I'm actually interested in the proximate causes of things, too. But in order to understand how to effectively implement a good policy for all our troubles, I feel that having a solid understanding of ultimate causes is helpful. This way we don't end up passing legislation that - oh, I don't know - would merge failing car companies with the federal government or something.

Check out the links I have in this post. The difference between the mainstream economists you read (no, the media isn't liberal - just clueless) and the economists I read is that the mainstream didn't see the collapse coming. Therefore, I have difficulty taking any of them seriously (especially given that they are currently advocating a heavy dose of inflation to "cure" the depression).

In fact, they laughed at the economists who warned about this crisis (and laid out what would happen, step-by-step, five or six years before the economy actually collapsed!) and labeled them crackpots (these economists are now rightly recognized as crackshots).

Given their inability to foresee such a huge calamity approaching, I would reject their policy recommendations outright. Just because they are mainstream doesn't mean they know what they're talking about (Bill O'Reilly? Keith Olbermann?).

Again, the links I gave all highlight the role of the Federal Reserve as the protagonist in creating this crisis. The Federal Reserve was created by progressive imperialists at the beginning of the 20th century to help expand domestic spending, fight wars for democracy overseas and - get this! - regulate the banking sector (now mind you, before the Federal Reserve was created by Progressives, this nation had never before seen a Great Depression).

Anyway, the artificially low interest rates set by the Federal Reserve in late 2001 began the process of creating money and credit out of thin air, which in turn created the bubble that recently burst. Couple this with the Federal government's promise to back any bank that runs out of money that was printed out of thin air and you have yourself a disaster waiting to happen.

None of this had anything to do with deregulation or Ponzi schemes (although the Fed's easy money policy and guarantees of a safety net DID lead to folks biting off more than they could chew, but this was hardly the fault of a free and open market).

Libertarians do have a sensible policy outline for creating a peaceful and prosperous world: 1)bring our troops home from around the world. 2)abolish the Departments (Education, Energy, Agriculture, Homeland Security, etc., etc.). 3)Repeal the 16th and 17th amendments. 4)Phase out the Federal Reserve by passing legislation that would legalize competing currencies (like gold and silver-backed notes). Now, these policies might sound a little too sensible, but I think folks can agree that, if implemented, they would create the desired results of peace and prosperity.

As for minorities and women being screwed by business, I suggest you read a book written by Walter Williams (remember him?) titled 'State Against Blacks'. It explains that business - far from excluding or exploiting women and minorities - was actually prohibited by government laws (i.e. segregation, slavery) from being able to hire blacks and women to participate in the free and open market.

What it all boils down to, though, is substance. Libertarian thought, theory and application has enabled folks to accurately predict and explain how and why crises occur (whether they be economic, political, or social) and provide sound, common sense advice for getting out of such predicaments. Whether society wishes to take us seriously or not is a whole other ballgame....just don't claim that nobody saw it coming.

The Crackshot Crackpot said...

Oh, also, please don't take too much offense. This post wasn't aimed at you specifically. I got nothing but love for my Aunt C.

Living in California (a state that is currently unable to pay off its $60 billion debt, by the way) means I have lots and lots of friends on the American Left who believe that deregulation caused the crisis.

Why they can't seem to put heavy government spending and a bad economy together is a big reason why I post these blogs.

I think that a straightforward, no nonsense, honest look at the current crisis and its causes is the best way to explain things. Throw in a little bit of stank, and you have yourself an intellectual pimp slap, if you will. But the main reason I post these rants is to get people to think critically and outside the box, because the status quo is obviously unacceptable.

Chelsea said...

Wonderful. That was awesome to read. We could talk for hours about your response. Seriously, that is what convinces me.

You know me. I'm not offended, but I'm GONNA call you out! :)

Tell Anna Hi!! We just got to the big USA yesterday and will be here for about 2 weeks. What are your guys' plans? We'd love to see ya.