Happy New Year

Looking forward to an exciting 2009. Happy New Year!

Christmas Vacation

You've probably noticed that I've taken a little vacation for the last week or so. I will resume blogging on January 5, 2009. Until then, hope you had a Merry Christmas, and hope that your new year is filled with cheer.

Should the States be Bailed Out?

I found a short, two-page article on the CATO Institute website today entitled "10 Reasons to Oppose a Stimulus Package for the States." I recommend it.

Mr. Smith Goes to Washington

Now, more than ever, we need Mr. Smith in Washington.  The principles and ideas introduced by Adam Smith in "An Inquiry into the Nature and Causes of the Wealth of Nations" brought a great measure of liberty and prosperity into this world.  The publication of his book back in 1776 had great influence over the minds of the founding fathers of this great nation.

On the FEE website this morning, Mr. Lawrence W. Reed has published a short, two-page reminder of some of the revolutionary ideas presented by Adam Smith.  For instance, consider the power of this one idea:  “The natural effort of every individual to better his own condition . . . is so powerful, that it is alone, and without any assistance, not only capable of carrying on the society to wealth and prosperity, but of surmounting a hundred impertinent obstructions with which the folly of human laws too often encumbers its operations.”

It is interesting that our nation is at a point where the ideas of Adam Smith are again revolutionary.

Capitalism and Freedom

J brought up an interesting point in his comment to yesterday's post. In my response, I recommended that he look at "Capitalism and Freedom" by Milton Friedman. Part of our public school education included indoctrination of a healthy skepticism toward capitalism. Sorry to say, it just aint so. Take a few minutes to read the summary of Capitalism and Freedom on the Wiki web site. You'll be glad you did.

Big Buts

Remember that scene from Pee-Wee's Big Adventure, where Pee-Wee and Simone are sitting and talking inside the head of that big dinosaur sculpture?

-- Simone: "You're right, but... "

-- Pee-Wee: "But what!? Everyone I know has a big but. Come on, Simone. Let’s talk about your big but."

Too many people these days seem to have a big but about capitalism and the free market. All over the news you hear people saying that they are big believers in the free market, but this economic crisis calls for drastic measures (i.e. government bailout).

Listen, either capitalism works, or it doesn't. Either the free market is the way to prosperity and liberty, or it is not. An economic crisis is not time for big buts. If there was ever a good time to embrace free markets and capitalism, it is now. If we are ever going to see our bright shiny bikes again, we are going to have to get off our buts, and let the free market do its thing.

Bailout Blues

If you're like me, you've been watching this auto industry bailout thing pretty closely. I look at the FEE website every morning. I look at the CATO Institute home page, Investor’s Business Daily and National Review Online. Everybody is saying the same thing. This is a bad idea. The truth is, we really don't need some smart economics folks to tell us this. You and I can smell truth, and this aint it. This is a bad idea, and a bad idea for a lot of reasons. And I don't know about you, but I'm making myself sick thinking about it all the time.

Seriously, have you talked to anybody in the last month that thought this might be a good plan? And, if everyone thinks this is such a bad idea, what are our representatives in Washington doing? At least with the bank bailout, we were giving money in hopes of resuscitation. For the auto industry, we are just trying to keep them comfortable until they die.

Another question ... If so many smart people (not me, the FEE folks!) are so sure that these bailouts are so damaging, then what the smoke is our government doing? Whose idea was it to let attorneys-gone-politician sort out the biggest financial mess of our lifetime. Honestly, and I speak from experience, if attorneys could count, they wouldn't have gone to law school.

Common Sense

Speaking of the revolution, I am giving myself a reading assignment. I will report on it as soon as I've had the chance to finish. Common Sense, by Thomas Paine was published January 10, 1776, and was very influential in setting the stage for the American Revolutionary War. I do not remember reading it before, and I think it would be instructive. The book is published all over the internet, click here, here, and here for some sites.

Also, I found a free MP3 audio version of the book, click here! That site also has free audio versions of the Federalist Papers, the Declaration, the Constitution and the Gettysburg Address! Enjoy.

The Revolution

I enjoyed my Thanksgiving Holiday. My wife's folks have a cabin up in the Uinta Mountains, and we holed up there for about four days. I say cabin, but it's actually a really big house in the woods. Anyway, we had two or three inches of snow every night, and the kids spent most of the days sledding. When I wasn’t driving a four-wheeler, pulling the kids back up to the top of the hill for more sledding, I found time to read Ron Paul’s “The Revolution.”

I liked it! He challenged a lot of my ideas, and I do not agree with him on several issues. However, he is consistent. That’s a big deal to me. He believes things for a reason.

Here’s a “for instance.” He thinks we should abolish the income tax, and asserts that it does not need to be replaced with something else. That’s revolutionary! He says that such a move would reduce the Federal Government’s income by 40%. To return to a time when the Feds spent 40% less money than they do now, we would have to go back to … (here’s the zinger)… 1997.

Free to Choose

Free to Choose, by Milton Friedman, is the book that started my journey into understanding.  My lovely wife bought me a Barnes and Nobel gift card for my birthday a few years ago, and I bought the audio version of the book.  I don't really know why I bought it, I had never even heard of it before.  I must have looked a little silly, riding on the train in the morning, with my mouth hanging wide open.  I could not believe the things that I was hearing.  It was like I was seeing the world for the first time.  It's hard to explain, and it's a little corny to say, but it changed my life.

I would get to work, and try to corner some other associate to explain the amazing things I had discovered on the train ride to work.  They would look at me like I was some kook.  I won't be able to do any better here.  All I can say is, read it.  Just read it, that's all.  I guess that's not all, you can also listen to it like I did.  Or, I recently discovered that a TV series, based on the book, is available to watch anytime online.  Click here to go to the website.  Find it and read, listen to or watch it.

Inflation

Here's the thing, if I could count, I would not have gone to law school. No, seriously, I'm pretty good at basic math, but my quest to understand economics sometimes hurts my brain. I have published a few posts about inflation, in an attempt to help me understand it better.

Honestly, I think that I'm making it too hard. On the FEE website this morning they published "A Letter to a Ten-Year-Old." I guess that a ten-year-old wrote a letter to the Foundation for Economic Education asking what inflation was. This response was drafted by Beth Hoffman in 1981. This was a great article, very short, and the most important thing I learned from the article was that my understanding of economics is approximately at a ten-year-old level.

In the letter, Ms. Hoffman refers to another article, "Inflation In One Page", written by Henry Hazlitt. Again, a simple one page explanation. This is economics that even I can understand.

New New Deal

Sometimes, I wish that I had paid more attention in history class.  Other times, I'm glad I didn't.  Back in college, I remember reading about how the Great Depression was caused by the failure of capitalism.  Those greedy Wall Street Barons just messed up the whole country.  Lately, it seems that some folks have been taking a closer look at what really happened.  It's beginning to look like the Federal Reserve and Washington D.C. had a pretty big role to play.  I mention this because the events of the last several months have turned a discussion of the Great Depression from a history lesson into a study of current events.

Looks like we have a pretty big problem on our hands, just like back in the twenties.  The New Deal was supposed to fix the problem back then.  Instead, our Great Depression lasted about twenty years longer than the rest of the world's.  Now again, eighty plus years later, the only solution our Federal Government can come up with is more Federal regulation and intervention, a new New Deal.  Instead of looking to a failed policy from the 1920's, maybe we should look at something more recent, something that worked.  I'm thinking 1980's, 1997, 2003.  I'm thinking that some good ole' Trickle Down, Reaganomics might do the trick.  At least that has a proven track record.  Let's try capitalism and free markets, that's my vote.  For an interesting article on this topic, read New New Deal Won't Help Economy, by George Will.

Thanksgiving

You know, you would think that by the time I was forty years old I would know the real story of Thanksgiving. Turns out that I only knew half the story. Yes, the pilgrims came on the Mayflower, and yes, they had two years of starvation conditions. And, yes, the third harvest, the harvest of 1623, there was a bounteous harvest, and they had a great feast thanking God for his providence.

You may be as surprised as I am to find out that there is more to the story, a lot more. Take a few minutes to read the article on the FEE home page today entitled "Our First Thanksgiving." It turns out that the Thanksgiving story is really a story about free enterprise, and the importance of private property ownership. Who knew? The author, Sartell Prentice, Jr., quotes passages from Governor Bradford’s History “of Plymouth Plantation” from the original manuscript. Governor Bradford was the original governor of the Plymouth colony.

Apparently, during the first two years in America, the Plymouth colony farmed the land as a collective body. Everyone had their assigned duty, and each member was directed to perform certain tasks for the good of the colony. It was a disastrous mistake. Over half the members of the colony died of starvation, and the journals indicate that at one point the food ration was three kernels of corn per day.

After the two disastrous harvests of 1621 and 1622, the Governor decided to try something different. He gave each family a plot of land to farm for their private use. You won't be surprised about the outcome. Plenty and to spare. The bounteous harvest inspired the pilgrims to have a feast to thank their God.

This Thanksgiving, let us thank our God for the blessings of this land. Let us pledge our strength and courage to uphold the rights of the individual to life, liberty and property.

Hillsdale College's Monthly Imprimus

Hillsdale College is a conservative Christian four year university located in Hillsdale, Michigan. About a year ago, my father surprised me with a subscription to Hillsdale College's monthly publication, Imprimus.  Imprimus is a free publication available online, or delivered monthly to your home.  For a free subscription, click here.  To immediately view this month's publication, free online, entitled "Understanding Iran", click here.  This monthly publication has been an important part of my ongoing conservative education.  Also, I recently discovered a searchable archive of previous publications.  I noticed several speeches by Ronald Reagan, Lawrence Read, Margaret Thatcher and hundreds of other.

Economics 101

For a fun, quick and easy summary of economics and a lesson regarding the power of free markets, I, Pencil is a must read. "Ghost written" by Leonard E. Read, the story recounts the origin of one "Mongol 482," an ordinary lead pencil made by Eberhard Faber Pencil Company. The story is told in Mongol 482's own words. Early in the story, Mongol 482 makes the fantastic claim that "no person on the face of this earth knows how to make me." At first, that sounds outrageous. Maybe if he were the Hubble telescope, but a regular number 2 pencil? However, at the end of sixteen short pages, every reader will be convinced of the truth of Mongol 482's statement, and convinced of the power and virtue of a free market.

Common Sense

On the way into work this morning, I was listening to my ipod shuffle. What a great invention. Anyway, I was listening to the most recent podcast from Dan Carlin. I'm not sure how many of you listen to podcasts, but if you do, I recommend this one. The name of the show is Common Sense. The show provides interesting political commentary. I don't always agree with Dan, but he does provide an independent voice. He always provides an unique perspective, and helps me think of things in a new way. If you get the chance, I recommend that you give him a listen.

He also has another podcast called HardCore History. I love this one also. Half hour history lessons presented in a very interesting and engaging way. I guarantee that you will be disappointed when they are over.

Inflation

There is a must read article on the FEE site today explaining the cause and effects of inflation. It is a another new article published by Lawrence Reed. I love the first line. “Government,” observed the renowned Austrian economist Ludwig von Mises, “is the only institution that can take a valuable commodity like paper, and make it worthless by applying ink.”

You rarely hear somebody explaining this stuff. Honestly, for most of my life I assumed that rising prices were the cause of inflation. Like the article says, that is like assuming that wet sidewalks cause rain. I heard on the news this morning that the inflation rate in Zimbabwe is over 230 Million percent. Ouch!

Of course governments cause inflation, they are the only ones that can. They can't get their spending under control, but they don't want to raise our taxes anymore because we won't vote for them if they do. So, instead, they just print more money. The price of everything goes up, the value of our dollar goes down, and none of us even suspect that our own government is the one stealthily picking our pockets. Brilliant! I'm the dummy that thought that taxes were the only way for the government to mug me. Silly me.

Is anyone out there scratching their head, and wondering where the money for the $750 Billion bailout came from? Maybe Uncle Sam had that cash sitting in a savings account somewhere.

What is Economic Development?

Lawrence W. Reed hits another home run with his article entitled "The Perversion of Economic Development."  This article was originally published in February of 1996, and recently appeared on the FEE website.  This is just another example of how timeless these economic truths really are.  With all this talk in the news about how the government should come to our rescue by stimulating the economy, we might forget what true economic development is.

"In recent decades, economic development has come to mean something other than the spontaneous, entrepreneurial phenomenon that built America. It is often thought of as a kind of activist, public-policy responsibility of state and local governments...."

"The bottom line is what every American with a good sense of history really ought to know: economic development is what happens when government protects life and property and otherwise leaves us alone."  (emphasis added) Click here to read the entire article.

Ronald Reagan Read The Freeman

The Foundation for Economic Education is a great resource for thoughts and ideas on liberty. They usually have one new article daily, and they also tie one or two archived articles to current event news items. Also, for a minimal donation, you can get a subscription to thier monthly magazine, The Freeman. And, for any of you out there that are wondering, The Freeman would make an excellent Christmas gift. It is at the top of my wish list.

"The Freeman: Ideas on Liberty, is one of the oldest and most respected journals of liberty in America. For almost 50 years it has uncompromisingly defended the ideals of the free society.

"Through its articles, commentaries and book reviews, several generations of Americans have also learned the consequences and contradictions that inevitably result from collectivism, interventionism, and the welfare state.

"No other magazine, newspaper, or scholarly journal introduces readers to so many implications of what the free society is all about: its moral legitimacy, its tremendous efficiency, and its liberating effects in every area of life. For subscription information click here.

Election Was Not A Rejection of Conservatism

Great article showing up on the CATO Institute home page, discussing the real lesssons to be learned from the recent presidential election. The author of the article is Michael D. Tanner.

"Tuesday's massive Democratic landslide cannot be seen as anything but a repudiation of the Republican Party's tenure in power. Combined with the equally large Democratic victory in 2006, Republicans have now lost the presidency, more than 50 House seats, and at least a dozen seats in the Senate in just two years."

"To suggest that in electing Barack Obama and a Democratic congressional majority, voters were choosing big government and liberalism over small government and conservatism would imply that either the Bush administration, the current Republican congressional leadership, or, for that matter, John McCain, actually supported smaller government." Click here to read more

Never Give Up On Conservative Ideals

Lawrence W. Reed, of the Board of Trustees of the Foundation for Economic Education published encouraging words the morning after the 2008 presidential election:

"For all of us who believe in liberty, yesterday’s ballot offerings all over the country were hardly inspiring. Predictably, the results this morning may be more than a little dispiriting. Just in case you might be feeling somewhat “down” at the moment, let me offer what I hope will be some cheerful thoughts...."

"If you want my advice, we should not squander a second feeling bad for ourselves. This is a moment when our true character, the stuff we’re really made of, will show itself. If we retreat, that would tell me we were never really worthy of the battle in the first place. But if we resolve to let these tough times build character, teach us to be better and smarter at what we do, and rally our dispirited friends to new levels of dedication, we will look back on this occasion some day with pride at how we handled it. It’s already past 9 am. Have you made any calls to cheer anybody up yet?" For entire article, click here.

From Racism to the White House

My father is a wise man. I respect his opinion greatly. He has never demanded that respect from me. Rather, he has spent my lifetime earning my unqualified respect and admiration. He recently sent out the following letter to his family members. With his permission, I publish it here.

"No matter if you are Republican, Democrat or whatever, something wonderful happened on 4 November. This nation, with all its racial baggage, elected a man of the Black race as its President. This 65 y/o man never thought he would see it happen in his lifetime. For that reason alone it is a call for celebration. I know this may be hard to understand if you did not grow up in my generation, but I saw the restrooms for Men, Women and Coloreds. I saw the black folks go around to the side to purchase a fast meal. I saw drinking fountains labeled White and Colored. I saw black men forced off sidewalks.

"It is a testament to me of the resilience and good heartedness of the nation's people. Obama was elected with 52% of the voters. By my estimation, another 35% plus would have voted for him if his political persuasion was closer to theirs. That means that over 85% of the people have rejected race as a qualifier or dis-qualifier for any position in the country. We have nearly achieved Martin's dream! At least in this one area.

"Now, the glass is half full for me. And this election really has been very bittersweet; certainly a mixed blessing. Obama does not have good judgement in the company he keeps, and he is fundamentally too far left of center to govern our nation effectively. And I believe that the nation may have crossed a threshold in this election. It is possible that the culture war that is raging in the country has reached a turning point at which there is no turning back.

"That said, Obama is, or will be, my President. I will support him with my prayers and my actions. He is very capable and smart. He has shown that he can move to the center. And he may have the fortitude to govern from the center. I will praise his decisions and actions when I see him do good according to my light. And I will criticize him when he does wrong in my eyes. However, I will always respect the office he holds. I will not look for cabals, conspiracies, and intrigues in everything he does. I will take him at face value and assume he is acting in the best interest of the nation as he sees it. In short, I will give him my good will.

God be with President-elect Obama.
Dad, Len, L.R.

Bailout or Shakeout

The Cato Institute has posted Daniel J. Ikeson's article from the New York Daily News, There's Nothing Wrong with a "Big Two."

I agree with Mr. Ikeson that it is foolishness to use Federal tax dollars to bailout failing businesses, and then claim that capitalism has failed. We need to stand back, and allow the market to function properly. The invisible hand of capitalism will thin the sick and the weak companies out of the herd, allowing the fiscally dominant companies to rise to the top.

"The "Big Three" auto producers - Ford, Daimler-Chrysler and General Motors - want the public to believe their industry faces an existential threat. It doesn't. They want the public to believe they are innocent victims of circumstances beyond their control. They're not. They want the treasury secretary to authorize a fresh $25 billion bailout for the industry and the President-elect to pledge support for their parochial cause. Neither should..."

"If one or two of the Big Three went into bankruptcy and liquidated, people would lose their jobs. But the sky would not fall. In fact, that outcome would ultimately improve prospects for the firms and workers that remain in the industry. That is precisely what happened with the U.S. steel industry, which responded to waning fortunes and dozens of bankruptcies earlier in the decade by finally allowing unproductive, inefficient mills to shut down." For entire article click here.

Phone Calls to Heroes on Veteran's Day

I will be making several phone calls this evening. I'll make a few calls to St. George, a call to Draper, and another call to Denver. Tonight I will take a few minutes to talk to some of my heroes.

My family has a great heritage of military service. Both of my grandfathers fought in World War II, one in the Pacific, and one in Europe. My wife's grandfather also fought the fascists in Europe. My father is a career military man. He served with honor and distinction in the U.S. Air Force for about 26 years, and retired as a Lieutenant Colonel. Usually, upon leaving for work in the morning, he would tell us that he was going to go "kill some commies." He fought valiantly every day against the evil empire, and I must admit that I give him most of the credit for its collapse. He also spent one year in Vietnam, flying choppers and taking names.

In quiet hours, usually late at night, you can get these warriors to let their guard down and tell a few stories. I'm sure there are many stories that I will never hear, and I am sure that there are none that I truly understand. But, I do know that they are my heroes, they and the hundreds of thousands of others that were willing to give the last full measure, together with those that did. I honor my father, my grandfathers, and all that have served for liberty.

Declaration of Independence

WE hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness -- That to secure these Rights, Governments are instituted among Men, deriving their just Powers from the Consent of the Governed, that whenever any Form of Government becomes destructive of these Ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its Foundation on such Principles, and organizing its Powers in such Form, as to them shall seem most likely to effect their Safety and Happiness.

The Declaration of Independence