MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘Crony-capitalism’

Can the Fed Save Us From Climate Change? – LewRockwell

Posted by M. C. on March 3, 2020

Science is rarely settled as today’s new discoveries disprove yesterday’s consensus. In the case of climate change, many scientists dispute the claim that absent massive expansion of government power a climate apocalypse will soon be at hand.

Whatever policies the Fed adopts to protect the financial system from climate change, the result will be further erosion of the dollar’s purchasing power, increased government control over the economy, lower economic growth, increased crony capitalism, and a reduction in liberty and prosperity.

Think Chevy Volt, solar panel and EV car battery manufacturer subsidies.

http://ronpaulinstitute.org/archives/featured-articles/2020/march/02/can-the-fed-save-us-from-climate-change/

Written by Ron Paul

The 1978 Humphrey-Hawkins Act requires the Federal Reserve to “promote” stable prices and full employment. Of course, the Fed’s steady erosion of the dollar’s purchasing power has made prices anything but stable, while the boom-and-bust cycle created by the Fed ensures that periods of low unemployment will not last for long. Despite the difficulties the Fed faces fulfilling its “dual mandate,” Federal Reserve Chairman Jerome Powell recently announced a new Fed mandate: to protect the financial system from being destabilized by climate change.

Powell appears to have bought into the propaganda that “the science is settled” regarding the existence, causes, and effects of climate change. But the statement “the science is settled” is itself unscientific. Science is rarely settled as today’s new discoveries disprove yesterday’s consensus. In the case of climate change, many scientists dispute the claim that absent massive expansion of government power a climate apocalypse will soon be at hand.

So far, the Fed’s actions regarding climate change include holding a conference and Chairman Powell indicating the Fed is likely to join the Network for Greening the Financial System. This network is composed in part of central banks from around the world that are attempting to work together to assess the risks of, and plan possible responses to, climate change.

While Powell has not given details regarding other actions the Fed might take to protect the financial system from climate change, there are a number of actions that the Fed could take. For starters, Powell could signal that the Fed would be willing to increase its purchase of government debt if Congress passes Representative Alexandria Ocasio-Cortez’s Green New Deal. The Fed, since its creation, has been monetizing federal debt, and thus enabling the growth of the welfare-warfare state.

The Fed could implement “Green Quantitative Easing” by purchasing bonds of green energy and other companies whose products fit the environmentalist agenda. The Fed could also use its monetary and regulatory authority to “encourage” financial institutions to support “environmentally-friendly” businesses.

Whatever policies the Fed adopts to protect the financial system from climate change, the result will be further erosion of the dollar’s purchasing power, increased government control over the economy, lower economic growth, increased crony capitalism, and a reduction in liberty and prosperity.

Ironically, the Fed’s plans to address climate change will harm the environment. History shows that the most effective way to protect the environment is via a system of private property rights and free markets. Private property owners are better stewards of the environment than are government bureaucrats because private property owners have greater incentives to maintain the value of their property. This is why the greatest pollution in history was in the communist countries of the 20th century.

The Fed’s failure to provide any details on how it will carry out its self-imposed climate change mandate is another reason why Congress must rein in the secretive, rogue central bank. A step in restoring a monetary policy that truly promotes prosperity is to pass the Audit the Fed bill so Congress and the people can at last learn the full truth about the Federal Reserve.


Copyright © 2020 by RonPaul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.

 

 

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Stop Trying to Make Coal Great Again

Posted by M. C. on June 7, 2019

It is shocking to see a Walter Block byline in the NYT.

And they aren’t ripping Walter a new one!

https://www.nytimes.com/2019/06/04/opinion/trump-coal.html

By Walter E. Block

Should rowboats be made out of plastic, wood or metal? Should restaurants feature red, white, blue or no tablecloths at all? What proportion of loafers, sneakers, high heels and regular shoes should the footwear industry offer us?

For Republicans who favor free enterprise, the answer to all of these questions would be: Leave it to market forces. If, somehow, entrepreneurs get the proportions wrong, the profit and loss system can be relied upon to correct the imbalances. As a libertarian, anti-tax, anti-regulation, free-market economist, this is the approach I favor.

One would think that Republicans would apply this same logic to our fuel industry. In their view, government has a legitimate role to play in ensuring the safety of nuclear power plants or even windmills. But it should not favor, or oppose, nuclear power, gas, oil, coal, wind, water, solar, or any other source of energy over any other.

Why then does President Trump keep trying to prop up coal at the expense of alternative energy sources?

For the first time, as predicted by the Institute for Energy Economics and Financial Analysis, in April renewables generated more electricity than power plants fueled by what was once called “King Coal.”Yet since he entered office, Mr. Trump has attempted to subsidize coal and protect it from competition, declaring that his administration has “ended the war on beautiful, clean coal.”…

So far, little has come from all these initiatives, which mostly remain proposals. But if Mr. Trump appreciates economic freedom as much as he claims, he should realize that the best way to promote prosperity, not only for consumers but also for workers, is not to try to “pick winners.” Let the market decide.

 

The problem for him is that the market is moving away from coal. By 2016, American reliance on coal had dipped to 30 percent of total electric energy expenditure, from about 50 percent in 2000. In contrast, natural gas and even wind, solar and water power are becoming less expensive, and will likely take on a greater share of the overall energy industry.

In 2015, coal consumption used for electricity fell 29 percent from its peak in 2007 — a trend that has continued. Meanwhile, according to a 2018 report from the International Energy Agency, “the share of renewables in meeting global energy demand is expected to grow by one-fifth” in the next five years.

Given the clear evidence of where the energy market is heading, the president’s insistence on protecting coal feels uncomfortably like crony capitalism…

 

Be seeing you

Ronald Reagan once said... #Terrifying | Infographics ...

 

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Socialism for Dummies – LewRockwell

Posted by M. C. on March 15, 2019

https://www.lewrockwell.com/2019/03/no_author/socialism-for-dummies-and-nature-for-the-savy/

By Jane ten Brink

I wrote the following to a friend who is now retired, but who worked for most of his life for the Austrian National Railroad (the ÖBB), an entity that has been strongly governed by socialist thinking. It therefore came as no surprise to me early on that my friend was completely governed by a socialist mindset (when I first got to know him about three years ago, he was reading some biography of Karl Marx!)

While this friend has never lived in luxury, his standard of living throughout his life and unto this day would most certainly be considered “luxury” by a good portion of the world population.

And, yet, my friend complains that he does not have enough (he thinks he should have more), and blames for this the evil, capitalist system.

My friend’s reason for blaming the evil, capitalist system for his allegedly „struggling-to-survive“ existence is that according to him, a bunch of greedy, rich guys have exploited „us“ by not turning over to „us“ more of their wealth (he believes that wealth should be more evenly distributed).

But my reason for why my friend is blaming capitalism is „envy“. Read the rest of this entry »

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