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In the Age of Covid, We’re Reminded an Unjust Law Is No Law at All

Posted by M. C. on February 19, 2022

We can always expect the regime and its supporters to try to outlaw things they don’t like. And once such things are illegal, we’ll hear all about the evils of the “lawbreakers” any time those lawbreakers threaten the prestige or power of the regime. (Lawbreaking in favor of the regime, of course, is always tolerated.) It’s a highly successful trick they’ve been using for thousands of years. 

https://mises.org/wire/age-covid-were-reminded-unjust-law-no-law-all

Ryan McMaken

It has become something of a habit in both the American and Canadian media to insist that the Canadian trucker protest against vaccine mandates is an “illegal protest.” They are “illegal border protests,” one American news affiliate proclaims. Canada’s National Post dutifully refers to the protests in its headlines as illegal acts. The term “illegal” has been used a multitude of times by Liberal Party politicians in the House of Commons. The premier of Ontario—one of Canada’s most hysterical politicians—not only paints the protests as illegal but as a “siege.” Other opponents of the protests refer to them as an “occupation” and as an “insurrection.” 

“Lawbreaker” as a Political Slur

So why the obsession with labeling the protests illegal? The idea, of course, is to cast suspicion on them and portray them as harmful and morally illegitimate. We could contrast the rhetoric surrounding the trucker protest with that of the Black Lives Matter protests. In the case of the BLM protests, illegal acts were downplayed and ignored, with one obvious riot labeled a “mostly peaceful” protest. when it comes to protests and other acts of which the regime approves, legality is never an issue. 

The regimes of the world, of course, like to use legality as a standard for judging human behavior because the regimes make the laws. Whether or not the laws actually have anything to do with human rights, private property, or just basic common sense is another matter entirely. Thus history is replete with pointless, immoral, and destructive laws. Slavery has been lawful throughout much of human history. Temporary slavery—known as military conscription—is still employed by many regimes. In the US, the imprisonment of peaceful American citizens of Japanese descent was perfectly lawful under the US regime during World War II. Today, employers can face ruinous sanctions for hiring a worker who lacks the proper immigration paperwork.  Worldwide, people can be jailed in many jurisdictions for years for the “crime” of possessing an illegal plant. 

During covid, the reality of arbitrary law came very much to the fore when unelected health bureaucrats and lone elected executives began ruling by decree. They closed businesses, shut people up in their homes, and imposed vaccine and mask mandates. Those who refuse to comply—and businesses who refuse to enforce these edicts—are condemned as lawbreakers and subject to punishment. 

The Moral Limits of “Law and Order”

All of these legal provisions, acts, and sanctions represent mockeries of basic natural rights rather than protections of them. The notion that laws can be perversions of true justice has long been obvious to many. In fact, the disconnect between morality and legality is a fundamental aspect of Western civilization. The basic notion is very old, but the idea’s endurance in the West was reinforced by the fact that Christianity began as an illegal religion and early Christians were often considered to be criminals deserving of the death penalty. It should be no surprise, then, that Saint Augustine declared an unjust law to be no law at all and compared kings to pirates: the decrees of pirates, of course, are not worthy of obedience or reverence. And if kings are like pirates, kingly decrees are of equal respectability. This same tradition fueled Saint Thomas Aquinas’s support for regicide (in certain cases). Needless to say, regicide has been always and everywhere declared illegal by the would-be targets. 

Yet, unfortunately, declaring something to be “illegal” remains an effective slur. There is no shortage of people who proudly consider themselves to be blind supporters of “law and order” and who insist “lawbreakers” are axiomatically in the wrong. Their simple-minded refrain is “if you don’t like the law, change it” and many of these people naïvely believe that acts of legislators and regulators somehow reflect “the will of the people” or some sort of moral law. The opposite is often the reality. 

Thankfully, in the United States, the value of lawbreaking is so “baked in” to the historical narrative that it’s difficult to ignore, even today. The American Revolution was fundamentally a series of illegal acts. The Declaration of Independence was little more than a declaration of a thoroughly illegal rebellion. In response, the king sent men to the colonies to enforce law and order. The American response to this attempt to enforce the law was to kill the government’s enforcers. Less violent acts committed by American rebels were equally criminal, ranging from the Boston Tea Party to a multitude of assaults on tax collectors committed by Samuel Adams’s Sons of Liberty. 

Modern shills for the regime have unsurprisingly tried to redefine this conflict as one of a tussle over democracy. “Those American revolutionaries fought for democracy,” the claim goes. Thus, by their definition, no one is ever allowed to rebel in a jurisdiction that has occasional elections. (The reality is that the American rebellion was about the protection of human rights. Elections had little to do with it.)

Fortunately, it will take more than cheap slogans about democracy to undo the fact that the national origin story is about having contempt for the laws of one’s political leaders. 

In much of the world, however, rebellion against unjust laws is not regarded with equal amounts of reverence. In Canada, for instance, the national origin story is largely about following the rules and politely asking one’s overlords for autonomy. This is bound to affect how one sees the roles of law and disobedience. 

It Is Often Prudent to Follow Unjust Laws

This isn’t to say that open rebellion is necessarily wise. Avoiding illegal acts is often—if not usually—the prudent thing to do. We often follow the law simply to stay out of jail and avoid attracting the attention of regulators and government enforcers. For those who prefer spending time with their families to spending time in prison, this only makes sense. Moreover, disobeying unjust laws can often bring even more unjust laws as a result.

It is one thing to follow the law for prudential reasons. It is another thing entirely to assume the law brings with it some sort of moral imperative. Few laws do. Yes, there are laws against murder, but murder is just one case where the letter of the law happens to often match up with what is fundamentally moral and right. Countless laws lack such solid standing. 

When we hear government officials or media pundits refer to something as “illegal” or unlawful, all this should really do is cause us to ask if the defense of these laws is actually prudent, moral, or necessary. Some laws are well founded in basic protections of property rights and other human rights. But many laws are nothing more than the fruits of political schemes to help the regime maintain power or to reward its friends at the expense of others. 

We can always expect the regime and its supporters to try to outlaw things they don’t like. And once such things are illegal, we’ll hear all about the evils of the “lawbreakers” any time those lawbreakers threaten the prestige or power of the regime. (Lawbreaking in favor of the regime, of course, is always tolerated.) It’s a highly successful trick they’ve been using for thousands of years. 

Author:

Contact Ryan McMaken

Ryan McMaken is a senior editor at the Mises Institute. Send him your article submissions for the Mises Wire and Power and Market, but read article guidelines first.

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Should Government Be Your Stockbroker? Maybe So, Says Bloomberg

Posted by M. C. on February 19, 2022

Words fail me.

https://mises.org/wire/should-government-be-your-stockbroker-maybe-so-says-bloomberg

Joakim Book

The government and its supporting lackeys would like us to believe they are our knights in shining armor protecting us against the unexpected evils of the world. We supposedly can trust that they’ll show up and keep us safe.

If the food we eat doesn’t qualify for the well-intended and carefully balanced (i.e., politically infested and poorly researched) “Dietary Guidelines for Americans” put out by the US Department of Agriculture, they gladly tax and subsidize our food until it does. We have popular magazines publishing obnoxious and error-prone information about how meat hurts us and how saturated fat causes heart disease. There are schools instigating corrupting campaigns to strip away even the little nutritious food they may once have served—and then the chattering classes celebrate it. All while we pave the way for, in Saifedean Ammous’s words from The Fiat Standard, the “high-margin, nutrient-light industrial sludge” that is vegetable oil, corn, and refined sugar.

If the fuels we use to drive our cars around, heat our homes, or power our devices don’t live up to the newest climate-obsessed fads, our kind Don Quixotes mandate that you replace them with fuels that don’t work, overload and underpower our electricity grids, and, of course, place heavy taxes and regulatory obstacles on things which they don’t like. They are, you see, here to look after our best interests—a task we are wholly incapable of doing on our own.

The latest thing (not at all unrelated to the GameStop debacle, cryptocurrencies, and meme stocks movements of 2021) is to clamp down on individual stock ownership. Retail investors, “apes” and “degenerates” of WallStreetBets, are wreaking havoc upon—destabilizing!—financial markets and taking financial risks that aren’t good for them.

Undereducated plebs apparently don’t know what’s in their own financial interest. They lack the knowledge to pick a stock, to accurately assess the value of a company, and to plan their own savings and retirement funds. Our beloved knights, who always know better, should quickly ride in and take that power out of our hands before we hurt ourselves and destroy our economy and our democracy.

Manhattan Institute senior fellow Allison Schrager recently asked in Bloomberg the natural follow-up question: “Should retail investors even be allowed to own individual stocks?” Surely, they’ve mismanaged their own finances long enough, and with the meme stock era, their imprudence has spilled over onto the rest of society. She writes that “from seat belts to vaccinations, governments can’t always count on their citizens to do what’s in their own best interest—sometimes they need a little help.”

Ah, how kind of them!

We shouldn’t construct our own portfolios, pick shares in companies that we believe will do well, or invest in sectors in which we have some specific knowledge because that’s not good for us. Leave the price discovery to the professionals, those rich enough to pass some arbitrary criteria, or those politically connected enough to be in the regulators’ favor. We should just buy index funds, entrusting our votes and dollars to the BlackRocks and the Vanguards of the world. What possibly could go wrong?

The only way that mandating progress from above makes sense is if we believe in the infallibility of the planner. When individuals make mistakes or their actions lead to bad outcomes, the total damage is limited. Only some people suffer, and specifically those who made the bad choices, while others can learn from their mistakes. The system corrects.

When people are forced into doing the same thing by some benevolent public body, however, the aggregate risks are extraordinary. What if the advice is wrong? Maybe—and that’s a big presumption—a ruling body of experts has a little more insight into a certain subject than the average American does (probably a PhD and a nice hat, too). But if they’re wrong or there is some unintended downside to their regulation, the damage done is much, much larger than when stock-picking Americans hurl their savings into meme stocks or catch falling knives on financial markets already drugged to insanity with monetary stimulus.

Worse, government systems rarely self-correct. The feedback and information they receive is minuscule, noisy, and filtered through the political systems, and the people who lay down the rules often don’t suffer consequences for being wrong.

The irony, of course, is that Schrager prudently argues for diversification of financial holdings but her suggestion centralizes all savings eggs in one government basket. How can diversification be so good in one area, but bad in the other?

A final laughably revealing thing is her subtle disclosures. She writes that she purchased her first individual stock “to research this column.” Fair enough. She wields that experience very well: compared with the myriad of warnings that she received when poking around with her workplace 401(k), the absence of warnings she received when buying a stock seemed off. Granted, regulations are rarely made or upheld in a way that makes sense; in that, she’s right. But we’re missing the bigger point here: a forty-something PhD economist, author, and Bloomberg columnist has never owned a share before! What?! And she thinks she’s fit to comment on what Americans do with their money and by extension advise the government to regulate and restrict which financial instruments they may choose for themselves and their families. 

How is this not the biggest disqualifier imaginable?

It’s like large segments of the chattering classes don’t grasp that some “uncontroversial good” does not mean the government should shove it down your throat. Or, as in the case with the nudge ideology, fool you into shoving it down yourself. Something can be beneficial for lots of people and a sane, well-meaning person can still object to the government doing it; something can be bad and harmful for lots of people and the same sane person can object to government stopping it.

In 1848, Frédéric Bastiat wrote some immortal lines on that topic in “The Law”:

Socialism, like the old policy from which it emanates, confounds Government and society. And so, every time we object to a thing being done by Government, it concludes that we object to its being done at all. We disapprove of education by the State—then we are against education altogether. We object to a State religion—then we would have no religion at all. We object to an equality which is brought about by the State then we are against equality, etc., etc. They might as well accuse us of wishing men not to eat, because we object to the cultivation of corn by the State.

Schrager is empirically right that many people who dabbled in picking stocks—particularly those that gambled on penny stocks or in their more hip meme versions—in the last few decades would have been financially better off just owning index funds.

But that’s not a reason for the government to get involved. And it’s certainly not persuasive coming from someone who’s never before strayed from that advice. The mindset of a central planner strikes again. 

Author:

Joakim Book

Joakim Book is an economics graduate of the University of Glasgow, and is currently a graduate student at the University of Oxford. He writes regularly at Life of an Econ Student

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Donbas or Ottawa? The Dizzying Spiral of Government Violence!

Posted by M. C. on February 19, 2022

Violence is the glue that holds government power together.

Is this what the typical Canadian policeman signed up for? Is this photo military, police, militarized police. Hard to tell the difference anymore.

What is more fun that being paid to kick some ass and throw some lead?

https://mailchi.mp/ronpaulinstitute/canadaukraine?e=4e0de347c8

Dear Friends:

I was toggling back and forth today between terrifying indications of a coming violent clash in eastern Ukraine and the reality of a violent clash between the Canadian government and peaceful anti-mandate protesters in Ottawa. I became dizzy and disoriented, as looking at troop build-ups on both sides in Russia-Ukraine and troop build-ups (as in the above photo from today) in Canada blurred more and more together. 

Violence is the glue that holds government power together.

As ever, the battlefield was not only on the ground. Competing media narratives also battled it out, though the dominant (Washington/MSM) view in both situations was firmly in control of the microphone.

Biden told us today that he now (finally – after weeks of wrong predictions) knows that – for sure this time – Putin was going to sack and plunder Kiev with an army of hundreds of thousands (the number keeps increasing from one telling to the next). Asked how he is not finally convinced, he answered “we have a very good intelligence capability.” Well, considering its recent performance, that is a matter for debate.

A “false flag” from Russia was coming, said the warhawks who infest the Beltway. They would do something spectacular to establish a pretext for their planned invasion, we were told. Secretary of State Blinken said as much yet again in his cut-rate Colin Powell performance before the UN Security Council yesterday. And if for some reason they don’t attack Kiev, it’s because Biden’s steadfast defense of decency led Putin to “reverse course.”

As I said in an interview yesterday, the whole Washington performance is cartoonish.

Will the Russians attack? Well, they’ve been clear for years: a Kiev attack on three-quarters of a million Russian citizens in eastern Ukraine – who because of a Washington coup found themselves ruled by a government that came to power illegitimately – will be met with a Russian military response. 

In the breathless world of the braindead media hacks, the world began yesterday. But actually we are seeing a situation similar to 2008 in South Ossetia, where Russian passport holders (and Russian OSCE monitors) found themselves under attack by Georgia. The result was lightening fast, effective, and limited. Russia could have held and “regime-changed” Tbilisi. They did not. They made their point and left.

Even the US government-funded RFE had to admit that yes, in fact, it was Georgia that started the hostilities…and Russia that ended them.

Will Russia come to the aid of Donbas? Yes. They are not trying to hide it. They’ve been saying it for years. 

The renowned historian and international relations theoretician Edward Luttwak – never accused of being a political partisan – put it best on Twitter: The latest IC forecast: war is imminent and Russian forces will rely on exceptionally intense artillery bombardments, of Kiev too. That implies a reckless-gambler Putin, willing to make Ukrainians hate Russia & Russians forever. Neither is congruent with Putin’s record so far. This is the difference between astute analysts and the cardboard cut-outs who populate the media. People of intellectual substance like Luttwak are not in the business to grind an axe. They analyze past behavior and seek the truth. 

Sadly these days we are stuck with the former, with the latter being rarities.

Meanwhile in Canada, a liberal Western democracy has declared war – literally – on its own peaceful citizens who have gathered to oppose the absurd continuation of Covid-related mandates. Even insane San Francisco is in the process of eliminating its mandates, yet somehow Justin Trudeau’s Canada is willing to literally go to war with its own people to keep them in place.

What is funny about Canada (and this is also true of the US and many “Western” liberal democracies), is that they are very happy to preach to the rest of the world that peaceful protests must be allowed while literally at the same time brutally cracking down on same protests in their own countries. As in the late Soviet era, the hypocrisy is impossible to ignore. The regime disintegrates under the weight of its own contradictions. 
If like me you are toggling between Ukraine and Canada, watching violence and the threat of violence spilling out all over, you feel that old sickening feeling. You know things are about to get much worse. You know that the machine of evil is well-oiled with our blood and money. Our choice is to admit defeat or to keep fighting against government violence and those who promote it. We choose to fight.
Sincerely yours,

Daniel McAdams
Executive Director
Ron Paul Institute for Peace and Prosperity

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Washington Has Prepared an Invasion Narrative

Posted by M. C. on February 19, 2022

The report of an invasion of Donbass would be labeled a Russian false flag attack, and the Russian intervention would become the predicted invasion.  If anything happens, I think I have described it.

Paul Craig Roberts

Feb 17, 2022

The other day I asked, “What is Washington up to?”  It is already time to ask that question again. 

While writing my article suggesting that only a judicious use of Russian force would sober up the West, Washington doubled down on its anti-Russian position, predicting in two news venues–the Secretary of State’s UN speech and the State Department spokesman’s press briefing–that Russia was about to launch a false flag attack that Russia would use as the excuse to invade Ukraine. 

The State Department claims are pure fantasy.  Why after just rejecting the Russian’s proposal for a mutual security agreement does the Biden regime keep fanning the flames of war?

It makes no sense for the State Department to predict something that is not going to happen. As there is no aerial or satellite evidence or evidence of any kind except assertions that “US intelligence has concluded” of a concentration of attack forces on Ukraine’s border, the only way the State Department could know of a false flag event would be if it is a US false flag attack for which Russia is being set up for blame.

We have heard excessively about 150,000 invasion troops allegedly assembled on Ukraine’s border with Russia. We have not heard about 150,000 British and US trained Ukrainian troops on the border of the Donbass republics.  We have not heard about the massive arms that the West has sent to Ukraine or about the CIA trained neo-Nazi militias. If we hear anything, we hear that these Ukrainian forces are there to protect against a Russian invasion, a statement that is nonsensical.  Why would the Ukrainian forces be concentrated on the Donbass border? The Russians would simply come in behind them, and the Ukrainians would be trapped between the Russians and the Donbass forces.  How is it possible that US and UK military advisers would make such a mistake?

The Saker reports that the latest information from Donbass is that the Ukrainians are using UR-77 mine clearing vehicles to clear mines from the Donbass border.  This is the operation that is conducted just prior to a ground attack.  

It would seem that if any invasion is planned, it is a Ukrainian invasion of Donbass calculated to bring the Russians in.  The report of an invasion of Donbass would be labeled a Russian false flag attack, and the Russian intervention would become the predicted invasion.  If anything happens, I think I have described it.

Washington has prepared the narrative with Blinken’s UN address today and with the State Department spokesman’s press briefing.  NATO and the Western media know the narrative and would repeat it endlessly.  No actual facts would enter the story. Those who challenge the new narrative would be accused of being Russian agents.  Sanctions would be imposed. The military/security complex’s budget would be increased. Europe would be pressured off Russian natural gas. US/NATO military presence on Russia’s border would be beefed up.

The growing burden of deceit and frustration will one day make Russia dangerous.  To forestall an explosion of fury, Russia needs to enforce its red lines now.  Washington needs to be taught a lesson before Washington goes too far.

Update:  The scenario I sketched appears to be unfolding. In an “intelligence update” the British defense minister stated that reports from Donbass of “alleged abnormal military activity by Ukraine in Donbas are a blatant attempt by the Russian government to fabricate pretexts for invasion.”  The incompetent British Defence Ministry has prepared a map with arrows drawn of the lines of advance of the Russian forces.  As the Ukrainian army is concentrated on the Donbass border, there are no forces for the Russians to encounter in their advance along 9 lines of invasion imagined by the British.  https://www.rt.com/russia/549776-uk-military-russia-invasion-map/ 

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TGIF: Licensing the Fringe

Posted by M. C. on February 19, 2022

In other words, the promise to cleanse the internet of officially pooh-poohed claims, assertions, and opinions would invigorate all manner of conspiracy theorists with perhaps not-so-good political intentions. This happens already. It happened during the 2020 election and with Trump’s unsupported post-election declaration that he had been robbed of the presidency.

https://libertarianinstitute.org/articles/tgif-licensing-the-fringe/

by Sheldon Richman

Big Tech’s incredible promise to rid its platforms of “misinformation and disinformation” is not only a chimera that will harm the most gullible, but it is also an unwitting grant of power and credibility to some of the dodgiest elements online.

That claim might sound familiar. We opponents of drug prohibition and other anti-vice laws often point out that when the government outlaws a product or service that people want, it does not disappear. It simply moves into the shadows where it will be handled by less-than-honorable people because law-abiding types will be averse to supplying the black market. Consumers suffer as quality control diminishes, and recourse to the courts for bad-dealing is off-limits. Think of the 1920s alcohol prohibition in America, with its boost to organized crime. Black markets are like a government monopoly grant to the unsavory.

The same sort of thing will happen as Big Tech, pushed by politicians, restricts and excludes people who are accused of trafficking in bad information, actual and alleged, about health and other highly contentious and hotly debated matters. The suppressed information will not vanish. It will be left to others, some of whom will be less scrupulous about misleading listeners. Those others will have a powerful lever handed to them by the private “censors.” They will be able to tell their followers: “If Big Tech and the government want to suppress information about, say, Covid, what else will they suppress — indeed, what have they already suppressed?”

Also, attempts to stifle the open exploration of even dubious ideas inevitably emit the stench of fear. That’s self-defeating. “What are the censors and the ruling elite afraid of?” it will be asked. “If the claims being hushed up could be refuted, they would have been. But instead, they are being driven from public scrutiny. That speaks volumes.”

Is that the message the private “censors” want to send the public?

In other words, the promise to cleanse the internet of officially pooh-poohed claims, assertions, and opinions would invigorate all manner of conspiracy theorists with perhaps not-so-good political intentions. This happens already. It happened during the 2020 election and with Trump’s unsupported post-election declaration that he had been robbed of the presidency.

I wouldn’t call an indirect boost to the credibility of the fringiest voices benign.

It’s a civil libertarian cliche that the way to defeat “bad speech” is with good speech. Nuggets like that become cliches precisely because they are true; they have stood the test of time. Let’s also remember that some good speech will invariably be suppressed in the efforts to suppress the “bad.”

This self-defeating nature of Big-Tech/Big Government “censorship” can also be seen in our rampant cancel/de-platforming culture. When heterodox speakers are driven from college campuses or other venues, the same boost is given to those quarters that are awarded a de facto monopoly in “forbidden ideas,” whether those ideas are about race, the immutability of biological sex and its consequences for gender, or whatever. Again, conspiracy theorists, who may be too casual about the truth and falsehood of ideas, are given a boost they could not have earned in the open marketplace of ideas.

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Talking About Stoicism 161 We Are All in the Same Ward

Posted by M. C. on February 18, 2022

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Weekly Update — Ukraine Crisis: A Nightmare Caused by US Interventionism

Posted by M. C. on February 18, 2022

Weekly Update — Ukraine Crisis: A Nightmare Caused by US Interventionism

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The Social Engineer as Ethical Authoritarian

Posted by M. C. on February 18, 2022

Welcome to what can only be viewed as the new version of “scientific” socialism with its revolutionary vanguard of “ethical” social engineers. Diane Coyle wants to see this happen. And as she ends her article, “the sooner this change happens, the better.” We are living in dangerous times.

by Richard M. Ebeling

Since the start of the coronavirus crisis, advocates of greater government planning and redistribution have used “following the science” as the rhetorical cover to rationalize the growth in political paternalism. Now, however, some of them are coming out of the closet and insisting that economists, for example, must explicitly adopt an authoritarian ethic that requires the end to any free-market society

Diane Coyle is a prominent professor of public policy at Cambridge University in the United Kingdom and has long been on a mission to justify increased government control over social and economic affairs. In the past, she has usually argued her case on pragmatic or utilitarian grounds. That is, markets are inefficient or cannot adapt to changing technologies that modern society needs to more fully organize, including centralized collection of “big data” for better government-guided economic outcomes.

Economists as government policy advisors

But in an opinion piece a while back in the pages of the Financial Times (October 4, 2021), Professor Coyle wrote an article entitled “Change Is Needed in the Next Generation of Economists.” Economists have done important work, she states, in advising and consulting with governments over the collection and use of statistical data and the analysis of public-policy options in terms of likely outcomes. It is for this reason, she explains, that “many economists think of themselves as engineers, or plumbers (as described by Nobel laureate Esther Duflo), or (in Keynes’s famous quote) dentists,” fixing and correcting the problems of society.

Economists’ proposals on how to raise taxes “efficiently,” for example, or how infrastructure investments supposedly would most boost productivity, or what university degrees people should pursue for the best social gain for the education money spent. These have all been important contributions, Professor Coyle claims, in making a better society.

But in spite of how significant and beneficial this has been, there are challenges now facing the world that require economists to go beyond their role as policy technicians. Climate change and the “excessive power of big corporations” make it necessary for economists to now step out of their presumed “value-free” posture of merely analyzing social problems in the seemingly neutral framework of “if this, then that.”

Economists as ethical social engineers

If economists are to assist in the social engineering of society, which they have been already doing for a long time, it’s time for them to understand the “implicit moral framework” behind the grand endeavor to remake a better and sustainable society. Economists need to step out of their own analytical world and “work with (real) engineers, climate scientists, computer scientists or ecologists for an integrated analysis of societal challenges.” After all, she says, “Engineering society is inherently value-laden and economists are part of society.”

Economists need to stop looking at people as “individual maximizers, with fixed preferences uninfluenced by others,” Professor Coyle argues. “The benchmark needs to flip to reflect mutual interactions,” especially in a world with social media and profit-driven advertising. In addition, economists have to think of “markets as ecosystems vulnerable to collapse.” She concludes her article by saying that the sooner economists make this change to an explicit moral framework, the better.

But what, precisely, is this moral framework that Professor Coyle wants economists to more explicitly adopt? I would suggest that it comes out fairly clearly if one teases out the implications from her presented view of the world.

Freedom cannot be trusted, so paternalists are needed

See the rest here

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Ten Recurring Economic Fallacies, 1774–2004 | Mises Institute

Posted by M. C. on February 18, 2022

In other words, the country was so productive that the losses engendered by these excesses were quickly made up. He went on: “We often boast of the resources of our country, but we did not make the country. What ground is there for boasting here? 

The question for us is: What have we made of it? 

https://mises.org/library/ten-recurring-economic-fallacies-1774-2004

H.A. Scott Trask

As an American historian who knows something of economic law, having learned from the Austrians, I became intrigued with how the United States had remained prosperous, its economy still so dynamic and productive, given the serious and recurring economic fallacies to which our top leaders (political, corporate, academic) have subscribed and from which they cannot seem to free themselves—and alas, keep passing down to the younger generation.

Let’s consider ten.

Myth #1: The Broken Window

One of the most persistent is that of the broken window—one breaks and this is celebrated as a boon to the economy: the window manufacturer gets an order; the hardware store sells a window; a carpenter is hired to install it; money circulates; jobs are created; the GDP goes up. In truth, of course, the economy is no better off at all.

True, there is a sudden burst of activity, and some persons have surely gained, but only at the expense of the proprietor whose window was broken, or his insurance company; and if the latter, the other policyholders who will pay higher premiums to pay for paid-out claims, especially if many have been broken.

The fallacy lies in a failure to grasp what has been foregone by repair and reconstruction—the labor and capital expended, having been lost to new production. This fallacy, seemingly so simple to explain and grasp, although requiring an intellectual effort of some mental abstraction to comprehend, seems to be ineradicable.

After the horrific destruction of the Twin Towers in September 2001, the media quoted academic and corporate economists assuring us that the government’s response to the attacks would help bring an end to the recession. What was never mentioned was that resources devoted to repair, security, and war-fighting are resources that cannot be devoted to creating consumer goods, building new infrastructure, or enhancing our civilization. We are worse off because of 9-11.

Myth #2: The Beneficence of War

A second fallacy is the idea of war as an engine of prosperity. Students are taught that World War II ended the Depression; many Americans seem to believe that tax revenues spent on defense contractors (creating jobs) are no loss to the productive economy; and our political leaders continue to believe that expanded government spending is an effective way of bringing an end to a recession and reviving the economy.

The truth is that war, and the preparation for it, is economically wasteful and destructive. Apart from the spoils gained by winning (if it is won) war and defense spending squander labor, resources, and wealth, leaving the country poorer in the end than if these things had been devoted to peaceful endeavors.

During war, the productive powers of a country are diverted to producing weapons and ammunition, transporting armaments and supplies, and supporting the armies in the field.

William Graham Sumner described how the Civil War, which he lived through, had squandered capital and labor: “The mills, forges, and factories were active in working for the government, while the men who ate the grain and wore the clothing were active in destroying, and not in creating capital. This, to be sure, was war. It is what war means, but it cannot bring prosperity.” 

Nothing is more basic; yet it continues to elude the grasp of our teachers, writers, professors, and politicians. The forty year Cold War drained this country of much of its wealth, squandered capital, and wasted the labor of millions, whose lifetime work, whether as a soldier, sailor, or defense worker, was devoted to policing the empire, fighting its brush wars, and making weapons, instead of building up our civilization with things of utility, comfort, and beauty.

Some might respond that the Cold War was a necessity, but that’s not the question—although we now know that the CIA, in yet another massive intelligence failure, grossly overestimated Soviet military capabilities as well as the size of the Soviet economy, estimating it was twice as large and productive as it really was. The point is the wastefulness of war, and the preparation for it; and I see no evidence whatever that the American people or their leaders understand that, or even care to think about it. An awareness and comprehension of these economic realities might lead to more searching scrutiny of the aims and methods that the Bush administration has chosen for the War on Terror.

Only a few days after 9-11, Rumsfeld declared that the war shall last as long as the Cold War (forty plus years), or longer—a claim the administration has repeated every few months since then—without eliciting the slightest notice or questioning from the media, the public, or the opposing party. Would that be the case, if people understand how much a second Cold War, this time with radical Islam, will cost us in lives, treasure, and foregone comfort and leisure?

Myth #3: The Best Way to Finance a War Is by Borrowing

See the rest here

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We Are Not Useful Idiots!

Posted by M. C. on February 18, 2022

By David Stockman

David Stockman’s Contra Corner

Honest injun. We’re not useful idiots here at Contra Corner!

We do think, however, that the entire Ukrainian crisis is a Washington-confected con job. And we came to that conclusion without relying on a single scrap of information peddled by Russki propagandists appearing on Strategic Culture Foundation or Zero Hedge.

Actually, we thought it up all by our lonesome! Well, we’ll grant we did have a fair amount of help from Google, which insofar as we know works for the CIA, not the Russian SVR (foreign intelligence service).

In any event, at the very center of the crisis is the Washington claim that the rule of law and the sanctity of sovereign borders are on the line in Ukraine and that, therefore, Russia must not be allowed to encroach a single inch into sacrosanct Ukrainian territory.

That is to say, it is not a matter of America’s national security interest in the precise Ukrainian geography, which happens to lie cheek-by-jowl on Russia’s border, but the very governance of the entire planet: Conform to the “rule of law” as articulated by Washington or get sanctioned, outlawed, pariah-ed, and even invaded, if worst comes to worst.

We hear this refrain repeatedly from Secy Blinkey and national security advisor Snake Sullivan. But we find ourselves doubled over with laughter each time, knowing practically by heart the list of coups, regime change plots, invasions and occupations Washington has foisted upon other sovereign nations over the last 70 years.

For want of doubt, however, we recently Googled in pursuit of the exact list and came up with a systematic study by a young scholar named Lindsey A. O’Rourke. Here’s her summary conclusion:

Between 1947 and 1989, the United States tried to change other nations’ governments 72 times; That’s a remarkable number. It includes 66 covert operations and six overt ones.

Most covert efforts to replace another country’s government failed.

During the Cold War, for instance, 26 of the United States’ covert operations successfully brought a U.S.-backed government to power; the remaining 40 failed.

I found 16 cases in which Washington sought to influence foreign elections by covertly funding, advising and spreading propaganda for its preferred candidates, often doing so beyond a single election cycle. Of these, the U.S.-backed parties won their elections 75 percent of the time.

My research found that after a nation’s government was toppled, it was less democratic and more likely to suffer civil war, domestic instability and mass killing. At the very least, citizens lost faith in their governments.

And, yes, we did check her resume to make sure she wasn’t a Russian troll, and from the appearance of the thing you’ve got to think, no way.

See the rest here

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