Monthly Archives: October 2010

Hospital Waiting Times in Canada

Did you know that the Fraser Institute publishes an annual review of hospital waiting times in Canada?

Here’s the 2009 report: WaitingYourTurn_2009.pdf

Excerpt:

open quoteThe Fraser Institute’s nineteenth annual waiting list survey found that Canada-wide waiting times for surgical and other therapeutic treatments decreased in 2009. Total waiting time between referral from a general practitioner and treatment, averaged across all 12 specialties and 10 provinces surveyed, fell from 17.3 weeks in 2008 to 16.1 weeks in 2009.

. . . .

Despite a two week fall from the high reached in 2007, the total wait time remains high, both historically and internationally. Compared to 1993, the total waiting time in 2009 is 73 percent longer.

. . . .

Finally, the promise of the Canadian health care system is not being realized. On the contrary, a profusion of research reveals that cardiovascular surgery queues are routinely jumped by the famous and politically-connected, that sub urban and rural residents con front barriers to access not encountered by their urban counter parts, and that low-income Canadians have less access to specialists.close quote

I posted this to reddit in /r/politics. It was downvoted into oblivion and received one comment: “I don’t trust political think tanks to be impartial.”

WTF kind of willful ignorance is this?

Dollars Vote

Dollars Vote

These votes are much more powerful than democratic votes. Let’s hope we retain what remains of our freedom to spend our money the way we choose.

“the ‘substitution of political for economic power’ now so often demanded means necessarily the substitution of power from which there is no escape for a power which is always limited.” – F.A. Hayek, The Road to Serfdom

Better Off Stateless: Somalia Before and After Government Collapse

Wonderful essay about Somalia with and without its government by Peter Leeson.

You can download it here: Better_Off_Stateless.pdf

Excerpt:
open quoteWhen most people think of Somalia they think of chaos and deterioration. Some may even think of violence and mayhem. No one, however, thinks of progress when they hear about Somalia, let alone of the possibility that anarchy has been good for its development. Maybe they should.

Indicators of Somali welfare remain low in absolute terms, but compared to their status under government show a marked advance. Under statelessness life expectancy in Somalia has grown, access to health facilities has increased, infant mortality has dropped, civil liberties have expanded, and extreme poverty (less than $1 PPP/day) has plummeted. In many parts of the country even security has improved. In these areas citizens are safer than they’ve been in three decades (UNDP 2001). Somalia is far from prosperous, but it has made considerable strides since its government collapsed 15 years ago.

Despite this progress, there has been much hand-wringing over what to do about the situation of anarchy that has characterized the country since 1991. To be sure, this concern is not without cause. In the year following the state’s collapse, civil war, exacerbated by severe drought, devastated the Sub-Saharan territory killing 300,000 Somalis (Prendergast 1997). For a time it seemed that Somali statelessness would mean endless bloody conflict, starvation, and an eventual descent into total annihilation of the Somali people.

Though largely unrecognized by economists, the widespread violence that ravaged Somalia in its first year without government vanished considerably by 1994. By the mid-1990s peace prevailed over most of the country (Menkhaus 1998, 2004). Since 1997 most indicators of Somali development show slow but steady progress and today are above their pre-stateless levels. Nevertheless, conventional wisdom sees Somalia as a land of chaos, deterioration and war, and is certain that statelessness has been detrimental to Somali development.

The reason for this belief is two-fold. On the one hand, popular opinion sees government as universally superior to anarchy. Government is considered necessary to prevent violent conflicts like those that erupted when Somalia’s state first crumbled, which disrupt economic activity. Government is also considered critical to supplying public goods such as roads, schools, and law and order, which are important to the process of development. From this perspective it is easy to conclude that Somalia, which has no central government, must have been better off when it did.close quote

“One Nation Working Together” rally in DC

I wasn’t a fan of Glenn Beck’s recent rally in DC and posted a video about it.

Both his rally and this one are an attempt to switch the game from a philosophical debate between liberty and socialism to identity politics.

I do, however, prefer Glenn Beck’s pseudo-Tea Party rally because it is at least partially libertarian. This one betrays its goals with the Bolshevik-like slogan “One Nation Working Together.” What they really mean is, “Obey Us Or Else.”

Every socialist endeavor must eventually choose be failure and tyranny. It seems there are increasingly many examples of them adopting the rhetoric of tyranny.

open quoteWASHINGTON – Tapping into anger as the tea party movement has done, a coalition of progressive and civil rights groups marched by the thousands Saturday on the Lincoln Memorial and pledged to support Democrats struggling to keep power on Capitol Hill.

“We are together. This march is about the power to the people,” said Ed Schultz, host of “The Ed Show” on MSNBC. “It is about the people standing up to the corporations. Are you ready to fight back?”

In a fiery speech that opened the “One Nation Working Together” rally on the National Mallclose quote (Read more from news.yahoo.com)

Village Voice: “White America Has Lost Its Mind”

Hard to believe this article was published. Some people would describe it as cultural Marxism. I find the article offensive because it suggests that

1) white people’s brains operate differently from the brains of other ethnicities in ways that make is more susceptible to various lunacies.

and 2) I oppose government healthcare, bailouts, stimuli, money printing, and the expansion of our wars, because I’m racist.

It is a very, very typical red herring distracting from the ideological debate between liberty and socialism and shifting the game into identity politics. When the game is identity politics, it doesn’t matter whether the red team or blue team is in charge, they win, and we, the masses, lose.

open quoteThe brains of white folks had been humming along cogently for near on 400 years on this continent, with little sign that any serious trouble was brewing. White people, after all, had managed to invent a spiffy new form of self-government so that all white men (and, eventually, women) could have a say in how white people were taxed and governed. White minds had also nearly universally occupied just about every branch of that government and, for more than two centuries, had kept sole possession of the leadership of its executive branch (whose parsonage, after all, is called the White House).

But when that streak was broken—and, for the first time, a non-white president accepted the oath of office—white America rapidly began to lose its grip.

As with other forms of dementia, the signs weren’t obvious at first. After the 2008 election, when former House majority leader Tom DeLay suggested that instead of a formal inauguration, Barack Obama should “have a nice little chicken dinner, and we’ll save the $125 million,” black folks didn’t miss the implication.

. . . .

A black man got elected president, and suddenly every aging white boomer in this country turned into Carole King—they sure as hell felt the earth moving under their feet.

Meanwhile, the brother moving into the White House inherited the kind of mortgage that even Wall Street executives might hesitate to call “subprime.”

A devastated economy. Two wars, neither being fought with clear goals. Housing markets that resembled war zones. A health system crippled with costs. An auto industry cratering.

But surely, in a time of crisis, the country could pull together to fix this mess, right?

Can you help a brother on health care? No.

The economy? No.

Financial regulatory reform? No.

National security? No.

Now, some black folks can be forgiven for thinking, as they watched the political drama in Washington unfold over the past two years, that this was just another form of the same old thing they’d put up with in one way or another in this conflicted multiracial country.

But there is another explanation.

White people have simply gone sheer fucking insane.

. . . .

On February 19, 2009, not a month into Obama’s presidency, Rick Santelli—a former hedge-fund manager—had a meltdown on the floor of the Chicago Mercantile Exchange while broadcasting for CNBC. Santelli was incensed not that the government was bailing out the multimillionaires who had run giant financial institutions, but that assistance would also be going to help out ordinary people who found themselves defaulting on their home mortgages. Calling such folks “losers,” he said, “How many of you want to pay for your neighbor’s mortgage that has an extra bathroom and can’t pay their bills?”

He then added that he was not only mad as hell, but wanted to do something about it: “We’re thinking of having a Chicago Tea Party in July. All you capitalists that want to show up to Lake Michigan, I’m gonna start organizing.”

Suddenly, other angry (and obviously very confused) white people began organizing their own “tea parties” and, from the start, had to defend themselves from charges that there was more than a little racial component to their movement.close quote (Read more from villagevoice.com)

Eco-fascism jumps the shark

open quoteI predicted this morning that No Pressure – Richard Curtis’s spectacularly ill-judged eco-propaganda movie for the 10:10 campaign – would prove a disastrous own goal for the green movement.

But what I could never have imagined was how quickly public disgust – even among greenies – would reach such a pitch that the campaigners would be compelled to withdraw it from the internet.

That, at any rate, is what they keep trying to do – cancelling it whenever it appears on You Tube, pulling it from their campaign website and so on.

Unfortunately their efforts are being frustrated by people on the sceptical side of the climate debate, who keep peskily insisting on reposting the video where everyone can view it. And rightly so. With No Pressure, the environmental movement has revealed the snarling, wicked, homicidal misanthropy beneath its cloak of gentle, bunny-hugging righteousness.close quote (Read more from blogs.telegraph.co.uk)

Murder & Sadism by U.S. troops in Afghanistan

Troubling. These wars need to end.

I’m torn about posting this, but I think we need to tear down the holy righteous image of the U.S. occupations.

Army ‘Kill Team’ Leader Wanted a Necklace of Fingers

open quoteStaff Sergeant Calvin Gibbs didn’t just stock up on bootleg DVDs and mess-hall snacks, like a typical deployed soldier. During his deployment to Kandahar, Gibbs kept a water bottle with two wads of cloth wedged into it. Wrapped in the cloth were fingers that he chopped off two corpses. One of his fellow soldiers said Gibbs wanted enough for a necklace.

That’s according to Army investigation documents leaked to the Washington Post. Gibbs, 25, is the alleged ringleader of the “Kill Team,” a rogue execution unit from the 5th Stryker Brigade, 2nd Infantry Division that’s on trial for the murder of three Afghan civilians and may have killed a fourth. His fellow Kill Team members say that Gibbs’ impunity didn’t just extend to Afghans: he threatened to murder the mother of a soldier who didn’t keep his mouth shut.

Even though the team didn’t mind documenting its kills — some kept photographs — the documents suggest that Gibbs took it much further, possessing a certain comfort with mutilation. Investigators found bone fragments the water bottle where he kept his severed fingers, and he also kept teeth. Evidently, he thought little of removing parts of dead bodies: Gibbs told soldiers that it would be funny to include them in care packages, just to mess with people. He got away with that and more in Iraq, he told his friends, and the tattoos of skulls and pistols on his calf were testaments to the body count he racked up. (The Post reports that the Army is now also investigating Gibbs’ earlier Iraq tour.)close quote

(Read more from wired.com)

***

Tapes describe U.S. servicemen killing for sport in Afghanistan

open quoteTapes obtained by CNN of interrogations of a group of U.S. servicemen charged with unprovoked killings of Afghan civilians describe gruesome scenes of cold-blooded murder.

“So we met this guy by his compound, so Gibbs walked him out, set him in place, was like standing here,” says Cpl. Jeremy Morlock, detailing how, on patrol earlier this year and under the command of his sergeant, Calvin R. Gibbs, he and others took an Afghan man from his home and killed him.

“So, he was fully cooperating?” the military investigator asks on the tapes in a May 2010 interview.

“Yeah,” Morlock responds.

Investigator: “Was he armed?”

Morlock: “No, not that we were aware of.”close quote

(Read more from edition.cnn.com)

The CNN site has a video. It mentions that the Pentagon has ordered all attorneys in the case to return all photos which soldiers took of dead people.

Peter Schiff on the Rises Prices of Everything

One of Peter’s best videos:

* What experts are saying about gold. When asked, Suzanne Orman hesitantly admitted that investors can buy gold, but just a tiny bit, and certainly not the physical stuff, but an ETF.

If you believe in sound money and the JP Morgan Gold fraud, then it seems like she’s taking her talking points from some very powerful people.

* Big Media propaganda talking about this was the best September (typically a down month) in 71 years.

This is obviously flawed. If, for example, the dollar loses half it’s value in a day, the same analysis will call it the best DAY the stock market has ever seen.

Peter compares the Dow’s 7.7% and S&P’s 8.8% gains to other things:

A Commodities index gained 8.7%.
Soy Beans 9.5%
Copper 10%
Rice 10%
Oil 11%
Corn 12%
Silver 13%
OJ 13%
Cotton 17% (Peter’s jockey shorts beat the Dow)
Sugar 19.3%
Australian Dollar 9%

Peter Asks: “Do you think stocks really went up in value in September, or is it more likely that the dollar lost value?”

* The bogus CPI index says prices went up 1.5%. Federal Reserve’s Open Market Committee says inflation is too low.

Down with Legal Tender

This Mises Daily article is excerpted from chapters 4, 5, and 6 of Denationalisation of Money: the Argument Refined, by F.A. Hayek.

It tells some of the history of the world in terms of inflation:

open quoteHistorians have again and again attempted to justify inflation by claiming that it made possible the great periods of rapid economic progress. They have even produced a series of inflationist theories of history,[2] which have, however, been clearly refuted by the evidence: prices in England and the United States were at the end of the period of their most rapid development almost exactly at the same level as 200 years earlier. But their recurring rediscoverers are usually ignorant of the earlier discussions.close quote

open quoteFrom Marco Polo we learn that, in the 13th century, Chinese law made the rejection of imperial paper money punishable by death, and twenty years in chains or, in some cases death, was the penalty provided for the refusal to accept French assignats. Early English law punished repudiation as lese-majesty. At the time of the American revolution, non-acceptance of Continental notes was treated as an enemy act and sometimes worked a forfeiture of the debt.[3]close quote

open quoteOnly a few of the great powers preserved for a time tolerable monetary stability, and they brought it also to their colonial empires. But Eastern Europe and South America never knew a prolonged period of monetary stability.close quote

I was struck by the clarification to Gresham’s Law given at the end. Something I’d noticed when I encountered the law in my studies:

open quoteIt is a misunderstanding of what is called Gresham’s law to believe that the tendency for bad money to drive out good money makes a government monopoly necessary. . . . What Jevons, as so many others, seems to have overlooked, or regarded as irrelevant, is that Gresham’s law will apply only to different kinds of money between which a fixed rate of exchange is enforced by law. . . . Indeed, whenever inflation got really rapid, all sorts of objects of a more stable value, from potatoes to cigarettes and bottles of brandy to eggs and foreign currencies like dollar bills, have come to be increasingly used as money, so that at the end of the great German inflation it was contended that Gresham’s law was false and the opposite true.[20] It is not false, but it applies only if a fixed rate of exchange between the different forms of money is enforced.close quote

To restate Gresham’s Law another way, bad money drives out good, IF IT FORCIBLY KEPT AT THE SAME PRICE.

A 132-Year Payback on the All-Electric Car

My former Austrian Economics teacher Patrick Barron had another Mises Daily essay.

Excerpt:

open quoteA Revolving-Door Lobbyist for the All-Electric Car

Such is the case, as recently reported by the Associated Press, of a lobbyist for an all-electric car.

“Leading the Charge” glorifies Mr. David Sandalow, a US Department of Energy assistant secretary and an avid advocate for the all-electric car. Hybrid cars usually recharge their batteries only while operating on their gasoline-powered engines, but Mr. Sandalow has converted his Toyota Prius hybrid into a plug-in hybrid at the cost of $9,000. Now he can recharge his car’s battery from his home electrical outlet.

Mr. Sandalow is very proud that his daily five-mile commute (a ten-mile round trip) can be accomplished with a gasoline-refueling stop only “about once every month or two.” Nevertheless his car needs to recharge after only 30 miles of travel, so he advocates that the government pursue developing a battery that will allow 100 miles between rechargings.

The government itself estimates the cost of such a battery at around $33,000 per battery. How the government knows this when no such battery yet exists was left unclear.

. . . .

So, by converting his car to a plug-in hybrid for $9,000, buying a yet-to-be produced 100-mile range battery for $33,000, and buying electricity for the equivalence of 75¢ per gallon of gasoline, Mr. Sandalow could have purchased enough $3 per gallon gasoline to enable him to drive to work for 132 years!

. . . .

We must disabuse ourselves of the propensity to believe that anything can be accomplished as long as government throws enough money at it. We have been down this road before with the fast breeder nuclear reactor that was supposed to produce more fuel than it consumed. Billions were wasted. We seem to be doing the same thing today with wind and solar power, too. There may be an economically rational niche for these energy technologies, but only the free market will give us the answer.close quote

(Read more from mises.org)

The Real Conundrum: Why the Hell Do We Care if China Manipulates Its Currency in Our Favor?

Finally, some good analysis of China’s currency manipulation. Basically, China is hurting itself and helping us. The outcries about them destroying our exports is a rehash of long-discredited mercantilistic ideas.

This great post on Cafe Hayek rewrites part of a Washington Post article.

Read carefully:

open quote

“This week, committees on both sides of Capitol Hill will plumb the conundrum of Chinese currency manipulation. The conundrum isn’t that — or why — China is manipulating its currency: By undervaluing it, China is systematically able to underprice its exports, putting American (and other nations’) manufacturing consumers and businesses that purchase China’ cheap imports at a significant disadvantage. The conundrum is why the hell the United States isn’t doing thinks it should do anything about it.

There are certainly plenty of senators and congressmen — and Main Street Americans U.S. producers that compete with China — who’d like to see the White House place some tariffs taxes on American consumers and businesses who purchase the underpriced low-priced Chinese imports. If the administration doesn’t act, Congress may just consider mandating some tariffs punitive taxes against American consumers and business on its own.”

close quote

European cities hit by anti-austerity protests

Get used to seeing this, and please notice that the protesters are part of the coercive government economy. Governments need to shrink. Once a government program goes into effect, it gets a constituency who will protest it’s reduction or removal. This is one of the reasons why governments, unlike businesses, only get bigger, regardless of whether their services are wanted.

open quoteTens of thousands of protesters from around Europe have been marching across Brussels in a protest against spending cuts by some EU governments.

Other protests against austerity measures are being held in Greece, Italy, the Irish Republic and Latvia.

A general strike is also taking place in Spain, hitting transport and other public services.

Trade unions say EU workers may become the biggest victims of a financial crisis set off by bankers and traders.close quote (Read more from )

Murray Rothbard and the Deflation Bogey

open quoteThe Paul Reveres of the economics profession are riding their horses, warning Americans, “Deflation is coming! Deflation is coming!” From Paul Krugman to Joseph Gagnon to the various mainstream news publications, the message is the same — the government needs to induce inflation now, or else the economy will sink further into the Slew of Despond and unemployment will increase.

A recent U.S. News article declared,

When the price of cars or sweaters or iPods declines, it’s a break for consumers and a welcome sign that economic productivity is improving. That helps drive up living standards. But when the price of everything drops, it’s an alarming development that portends stagnation.

. . . .

After the crisis arrives and the depression begins, various secondary developments often occur. In particular, for reasons that will be discussed further below, the crisis is often marked not only by a halt to credit expansion, but by an actual deflation — a contraction in the supply of money. The deflation causes a further decline in prices. Any increase in the demand for money will speed up adjustment to the lower prices. Furthermore, when deflation takes place first on the loan market, i.e., as credit contraction by the banks — and this is almost always the case — this will have the beneficial effect of speeding up the depression-adjustment process.

Most people, including the majority of economists, make their error in the failure to see that the initial effects are not permanent, provided the government and the monetary authorities permit these adjustments to occur. Just as inflation has a very real and harmful effect upon the relative values of factors of production, deflation also has an effect on the factors, but the effect over time is to return those factors to their proper proportional values, according to consumer preferences.

To put it another way, the economy right now needs deflation, yet all of the public voices are shouting that what we really need is for the economy to take another “hair of the dog.” Rothbard explains,

Just as inflation is generally popular for its narcotic effect, deflation is always highly unpopular for the opposite reason. The contraction of money is visible; the benefits to those whose buying prices fall first and who lose money last remain hidden. And the illusory accounting losses of deflation make businesses believe that their losses are greater, or profits smaller, than they actually are, and this will aggravate business pessimism.

It is true that deflation takes from one group and gives to another, as does inflation. Yet not only does credit contraction speed recovery and counteract the distortions of the boom, but it also, in a broad sense, takes away from the original coercive gainers and benefits the original coerced losers. While this will certainly not be true in every case, in the broad sense much the same groups will benefit and lose, but in reverse order from that of the redistributive effects of credit expansion. Fixed-income groups, widows and orphans, will gain, and businesses and owners of original factors previously reaping gains from inflation will lose. The longer the inflation has continued, of course, the less the same individuals will be compensated.

Some may object that deflation “causes” unemployment. However, as we have seen above, deflation can lead to continuing unemployment only if the government or the unions keep wage rates above the discounted marginal value products of labor. If wage rates are allowed to fall freely, no continuing unemployment will occur.

. . . .

Right now, the Austrians seem to be the economic version of Cassandra, predicting the future and giving sound advice, only to be rejected by most academic economists and certainly the politicians. Krugman last year demanded that the government “stop the pain” via inflation and dramatic increases in government spending.

Unfortunately, more doses of inflation will not stop the pain, at least any longer, and the more the government inflates and recklessly spends, the worse the pain will be. The very “cure” of inflation will be what makes the economy sicker. However, if we would be willing to experience the real economic pain just a little longer, a real recovery would be around the corner. In fact, had the authorities more than two years ago agreed to stop the foolishness of promoting inflation and malinvestments, we would be in recovery now.

Unfortunately, there is going to be no recovery, at least for a long time. Deflation is the answer, but few are listening. Rothbard understood this fact intimately. Those who reject his wise counsel will live to regret it.
close quote

(Read more from mises.org)