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February 27, 2008 at 09:20:43

The Starving Society

by Daniel Geery     Page 1 of 2 page(s)

www.opednews.com

 

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A recent link by “darrenlobo” to an article, Is The Starving Man Free?, provoked a number of comments. One was mine, and dl wrote back with a lengthy comment to that, which I’ve cut and pasted major parts of below, with my responses to those passages (below in bold):

This candid recognition of the contradiction between freedom from coercion and government welfare is more than can be expected from the advocates of the welfare state. Most are not content to admit their preference for government welfare instead of freedom from coercion. Rather, they gloss over the coercive nature of government action altogether. As a case in point of this fraudulent stance we can do little better than Sir Beveridge's own disingenuous statement that "Liberty means more than freedom from the arbitrary power of Governments."[8] In fact, the "liberty" conceived by Sir Beveridge and other welfare statists does not mean freedom from the arbitrary power of government at all. It means precisely the opposite: that people are to be systematically enslaved by their government in order to provide an expanding list of goods and services to those that the government deems worthy.

I recognize the distinction between freedom from coercion and government welfare. Coercion is when I’m told to wear a seat belt, for example, or that I can’t marry another male or a cockroach, or that I can’t buy anything stronger than 3.2 beer. Government welfare is when my paycheck goes to maim and kill people I don’t even know in another country, or to pay the salary of a dictator like George Bush.

None of you have dealt with the moral issue of initiating force against people to separate them from their hard earned pay that the article brings up. The fact that you want to use the loot to try to feed people or give them healthcare is irrelevant from a moral point of view. It's just as bad from a practical point of view since history shows that such redistributive schemes only leave people worse off. Zimbabwe is a good example of this kind of program failing.

I like the redistributive schemes that bring me police and fire protection, clean water and sewage and garbage removal, libraries, most roads that I use, relatively clean air, schools for my kids, medical services that have prevented major epidemics for decades, oftentimes intelligent zoning codes, building safety, relatively reliable electricity, parks and bike paths, recycling, free outdoor concerts, reasonable internet rates, and so on.

But need I go on? Of course you can find some failed redistributive schemes, but does that mean you have to throw out the baby with the bathwater? Why not fix the nature of the redistribution network? Teach people to fish, so they can fish; you don’t necessarily have to keep throwing them fish. The redistributive scheme of public education has worked fairly well, though there’s surely much room for improvement.  

Money is rarely “hard earned” in the U.S. In fact, it generally stolen, since only about 5% of the people do any work that actually supports the rest of us physically. The “loot” is the resources that capitalism generates through grand larceny of resources against future generations, and that loot is largely redistributed to about 5% of the do-nothing population, who suck dry those of us who do actual  work.  Most Americans wouldn’t know a “hard earned” dime if it sat on the end of their nose (I do remember a few from when I was a kid, however).

A better alternative is the voluntary associations that formed in the 19th century to provide for the people's needs: The Voluntary City Choice, Community, and Civil Society

Posing the Problem: The rise and decline of American civic life has provoked wide-ranging responses from all quarters of society. Unfortunately, most proposals for improving communities rely on renewed governmental efforts—without recognizing that the inflexibility and poor accountability of governments have often worsened society’s ills. Most would-be reformers seem profoundly unaware of the wealth of historical and contemporary evidence that decentralized, competitive markets can contribute greatly to community renewal.

If governments are not accountable and are too inflexible, why can’t that be fixed? 1) Folks give up before they try (I call them American’ts); 2) Decentralized, competitive markets don’t exist in the welfare state we’ve created, in the name of capitalism, for corporations—which have all the rights of individuals, but none of the responsibilities. We also have cosmic scale welfare military, welfare slugs in the White House, and welfare outfits like Boeing, Lockheed Martin, Westinghouse, Gruman, General Electric, Haliburton, Blackwater, etc., who like to call themselves “entrepreneurial organizations.”

What is a Voluntary City? It is a community built and maintained by private initiative and cooperation, not by the coercive political institutions that many people assume are needed to make communities work. The voluntary city is a paradigm for the community of tomorrow. It is also a historical reality: All of its key pillars—the physical infrastructure, services, and institutional framework that make communities livable—have at various times and places been provided by private initiative. Current legal, political and social trends suggest that its separate pillars may unite to build complete voluntary cities, allowing us to enjoy the myriad benefits of living in a truly civil society.

Key pillars from private initiative? You mean like the Jay Goulds, Vanderbilts, Rockerfellers, Gates, Cheneys, and Waltons, who loot the public in uncountable ways, then piss a few dollars at the rest of us, and tell us frankly it is “trickle down” money? Why not coerce these folks to limit their greed, which they can’t seem to do themselves, and use the wealth to fertilize our most valuable national resources—young, developing minds? Why? Because Big Behinds matter more than Little Minds, in the so-called free capitalist market.

Compassionate Mutual Aid: Before the rise of the welfare state, mutual-aid societies provided social services to millions of Americas, Britons and Australians. By 1925, member societies of the National Fraternal Congress represented 120,000 American lodges. Member benefits often included medical care, unemployment insurance, sickness insurance, and other services.

And these folks vanished because there was no money in the deal? Or do they now call themselves compassionate conservatives, like the ones who like torture as a new form of Christianity?

Responsive Law Enforcement: Community policing is seen as responsive to local needs because it is relatively decentralized. Law enforcement in Britain in the 18th and 19th centuries was even more decentralized and responsive because the private sector provided for public safety and the enforcement of contracts. When Britain’s Bobbies (public police) later came on to the scene, they were jeered not praised.

Who’s arguing against decentralization? Why a strawman argument, that is rather insane, since every progressive I ever heard of wants decentralized government, wherever it is possible. Sometimes, of course, that is not possible, even when it should be—such as regulations on car mileage, clean air, clean water, keeping out of coastal areas, etc.

Fairer Laws: The Law Merchant was a non-governmental system of commercial-dispute resolution that arose in Europe after the collapse of the Roman Empire. Merchants viewed it as fair and abided by its decisions because it was created and administered by and for merchants. The Law Merchant was highly successful until governments began to subvert it and expand their own power. But because government-run legal systems have become increasingly slow and arbitrary, the Law Merchant is returning in the form of private arbitration and mediation services, which now help resolve criminal as well as commercial disputes.

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www.hyperblimp.com

Geery lived off the grid for 15 years in an earth-sheltered, solar heated home, while his kids learned in school that solar energy isn't feasible. NAPTA hosts a page on Geery's foibles in education, and explains how he got his butt fired from a tenured teaching position. Here's a short clip of his most recent solar contraption; for more on that project, and Geery's contention that the Wright Brothers took a wrong turn, please visit his airship page (hyperblimp.com). Apparently, Geery is the only one in the world to respond to Osama bin Laden, call bullshit on him and George together, and expose them for the pansy ass rich kids that they are. Unfortunately, bin Laden has been too scared to write back and explain himsself; and George is still working hard to finish his goat book.

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13 comments

SW Texas ultra-liberal
john riggsSW Texas ultra-liberal

I think it was Jefferson that said

"We need to kill all the capitalists every twenty years" I paraphrased that but I like it and My old buddy Karl likes it too. Its that or pay a world CO2 tax thats beside the 60% of your earnings that go to dubyas cronies. The new RFID toll readers are just around the corner, the NEW tolls will be deducted from your account instantly, and the NSA will track your whereabouts in real time. Like air-con ? Expect to get shafted an extra CO2 tax if your bill runs over a certain amount. An artificial grain shortage has been concocted by the owners to raise food prices probably 300% for starters. The globes are taking everything you own slowly and systematically, its something about a "personality" problem that money has.

There is NO fixing this system,it is not broken, it is working just like the owners designed it to. The two party system wants to take all that you have and then kill you. Read the Georgia Guidestones, the 500 million survivors wont include you. Get ready for a big red white and blue shaft, with no petrolatum gel applied, its coming your way.

by john riggs (0 articles, 0 quicklinks, 0 diaries, 428 comments) on Wednesday, February 27, 2008 at 7:05:04 PM
 


Nobody special.
WatchingNobody special.

Grand larceny of resources against future generations??

Just what the hell is that supposed to mean? How can you commit grand larceny against generations that are not even born yet? A person must exist to be a victim of a crime. Non-existence grants no rights. We have the right to use our resoures now by virtue of our mere presence here in the 'now'. No unborn person from the future has the right to anything that is here now. You say we commit grand larceny against them for using our resources now, but I say to you that we allow them to commit grand larceny against us by not using them. I'll bet you are in favor of abortion, right?  If you can say that future generations have rights, then that means abortion must be stopped, right? If we are stealing from the unborn when we use our resources now, they must have a right to exist, correct? Aren't we denying them that right by allowing abortion? Do you see the can of worms you open with that statement about grand larceny against future generations? Either unborn future generations have the right to exist or they do not. You cannot say they have a right to exist and be in favor of abortion, which takes away that right, at the same time. It doesn't work. If you are in favor of abortion, then you must believe that future generations have no right to exist at all, and without a right to exist, they have no right to stop us using our resources as we please. So as long as abortion remains legal, the future generations have no rights. The only way they can have rights is if they have the most basic right, the right to exist. So if you want your argument to hold any weight, give future generations the right to exist by getting Rowe V. Wade overturned. Until then the 'now' generation is the only one with the right to utilize resources that exist now.

by Watching (0 articles, 1 quicklinks, 3 diaries, 313 comments) on Thursday, February 28, 2008 at 12:48:25 AM
 


Geery lived off the grid for 15 years in an earth-sheltered, solar heated home, while his kids learned in school that solar energy isn't feasible. NAPTA hosts a page on Geery's foibles in education, and explains how he got his butt fired from a tenured teaching position. Here's a short clip of his most recent solar contraption; for more on that project, and Geery's contention that the Wright Brothers took a wrong turn, please visit his airship page (hyperblimp.com). Apparently, Geery is the only...

to see more of bio, click on member name

Daniel GeeryGeery lived off the grid for 15 years in an earth-sheltered, solar heated home, while his kids learned in school that solar energy isn't feasible. NAPTA hosts a page on Geery's foibles in education, and explains how he got his butt fired from a tenured teaching position. Here's a short clip of his most recent solar contraption; for more on that project, and Geery's contention that the Wright Brothers took a wrong turn, please visit his airship page (hyperblimp.com). Apparently, Geery is the only...

to see more of bio, click on member name

Stated in other words:

“A person must exist to be a victim of a crime. Non-existence grants no rights. We have the right to use our resoures now by virtue of our mere presence here in the 'now'. No unborn person from the future has the right to anything that is here now.“

In my view, and according to the wisdom of anyone I have found worth listening to, we are presently stewards of the earth and should leave it at least as healthy as we found it (these days even more so). If you want to leave the planet as a barren rock floating in space, you have tastes that differ from mine. I wish the earth were as whole and intact as it was when I was a child. As an elementary teacher, and a parent, I am unfathomably saddened that kids today don’t have woods to play in, ponds to sit and ponder by, fields to wander through, clear skies to enjoy, untrammeled shorelines to walk along. Anything less than that is tantamount to saying that our species should not continue in the beauty and glory that it otherwise might—although I admit, there are days when I agree with you that our species doesn’t really belong on this beautiful planet.

“If you can say that future generations have rights, then that means abortion must be stopped, right?”

If you equate fertilized eggs with future generations, I suppose that argument would have some element of sense to it, though why anyone would make such a stretch of imagination is beyond me and, quite frankly, a serious disconnect from reality. But even if one allowed for such an equivalency, I am talking about viable future generations that actually can be sustained by the carrying capacity of the planet. Any student of biology--as every human should be--would necessarily further include in those future generations the entire tree of life, of which we are a part--not just random twigs, such as rats, starlings, cockroaches, or, in this case, humans.

by Daniel Geery (26 articles, 58 quicklinks, 121 diaries, 690 comments) on Thursday, February 28, 2008 at 4:05:31 AM
 


Hater of Nazis above all. Hobbies include activism, military model building, military history, exciting and vital conversation with retired crooks. Retired
John HanksHater of Nazis above all. Hobbies include activism, military model building, military history, exciting and vital conversation with retired crooks. Retired

Hatred is the begining of all thought and action

The trick will be for the rich to get us to accept the inevitable deterioration as our reward for being losers.

by John Hanks (1 articles, 0 quicklinks, 0 diaries, 1210 comments) on Thursday, February 28, 2008 at 7:41:44 PM
 


Darren Wolfe is the former Eastern Vice Chair of the Libertarian Party of Pennsylvania. He grew up in Puerto Rico and lived in Venezuela for seven years, including the first year of Chavez' rule. His articles have appeared in OpEdNews.com, the Libertarian Penn, and the Nolanchart.com. News services such as the New York Post.com and Rational Review have published links to his work.

*****************************

"Rightful liberty is unobstructed action according to our wi...

to see more of bio, click on member name

Darren WolfeDarren Wolfe is the former Eastern Vice Chair of the Libertarian Party of Pennsylvania. He grew up in Puerto Rico and lived in Venezuela for seven years, including the first year of Chavez' rule. His articles have appeared in OpEdNews.com, the Libertarian Penn, and the Nolanchart.com. News services such as the New York Post.com and Rational Review have published links to his work.

*****************************

"Rightful liberty is unobstructed action according to our wi...

to see more of bio, click on member name

The Producers and the Destroyers

Daniel,

I wrote an article rebutting yours & the editors turned it down saying:

"This is just too much libertarian propaganda. Your "facts" are very pejorative. If you wish to rebut a previous article, write it as a comment to that article."

So much for free debate around here. Anyway, here it is:


The Producers and the Destroyers

Thanks are due to Daniel Geery for taking the time to write "The Starving Society" in reply to my comments about "Is The Starving Man Free?". Please allow me to rebut the gentleman’s points. Mr. Geery wrote:

Of course you can find some failed redistributive schemes, but does hat mean you have to throw out the baby with the bathwater? Why not fix the nature of the redistribution network?


The biggest mistake made by Progressives is thinking that the government is capable of economic calculation. It is not. Rising or declining prices and profits are the signals that allow private businesses to know what to produce and sell, and at what price. The government, on the other hand, obtains it’s money through the immoral method of coercion. (They call it tax, it is theft.) One pays, whether the "service" is desired or not. One has no choice in the form the "service" takes or who provides it. The government has no price or profit system to tell it whether the "service" is desired, or at the right "price", or in the right form. Why should they worry about it? Their money is guaranteed. Bottom line is the government does what the government wants to do and that’s that.

This leads us to the question, what motivates the government. The answer seems simple, the individuals that make up the government are going to do what people in private companies do, which is whatever is best for themselves. So they expand their powers and revenues. They want to yield as much power as possible so the special interests will pay them off to do their biding.

These are the reasons why government doesn’t work. It’s not that "you can find some failed redistributive schemes" It’s that they always fail. Whether it’s our Socialist education system, our Socialist road system, our Socialist law enforcement system, and, of course, the biggest Socialist enterprise of all, the imperial wars.

Let’s look at the things Mr. Geery calls for the government to do in his article. One thing he calls for is that the government to educate the children. Why anyone would want the government to do so when private schools and homeschooling consistently do a better job at a better price is puzzling. Education for the common people started out as a privately provided good. Literacy rates in 18th and early 19th century America were over 90% without government schools.

Today we have a public educational system in decline. It costs ever more and more to get declining or at best stagnant results. People, especially seniors on fixed incomes, are losing their homes to pay property taxes that fund other people’s kid’s education. Socialism in education has failed us.

Mr. Geery also calls for the government to provide healthcare for us. I hate to say it, but they’ve already tried delivering healthcare and it hasn’t worked. The government pays for half of all medical treatment in the US. They heavily regulate the medical, pharmaceutical, and insurance industries. Yet what do we see happening? Worse and worse care at ever higher prices. Socialism in healthcare has failed us.

Compassionate Mutual Aid: Before the rise of the welfare state, mutual-aid
societies provided social services to millions of Americas, Britons and
Australians. By 1925, member societies of the National Fraternal Congress
represented 120,000 American lodges. Member benefits often included
medical care, unemployment insurance, sickness insurance,
and other services.

And these folks vanished because there was no money in the deal? Or
do they now call themselves compassionate conservatives, like the ones who
like torture as a new form of Christianity?



No, they vanished because the government decided it wanted to do these things. In order to essentially buy people’s support voluntary cooperation and charity were replaced by government coercion. The horrors of public housing and welfare in the big cities need no going over here. Socialism in welfare has failed us too.

Responsive Law Enforcement: Community policing is seen as responsive
to local needs because it is relatively decentralized. Law enforcement
in Britain in the 18th and 19th centuries was even more decentralized
and responsive because the private sector provided for public safety
and the enforcement of contracts. When Britain’s Bobbies (public police)
later came on to the scene, they were jeered not praised.

Who’s arguing against decentralization? Why a strawman argument,
that is rather insane, since every progressive I ever heard of wants
decentralized government, wherever it is possible. Sometimes,
of course, that is not possible, even when it should be—such as
regulations on car mileage, clean air, clean water, keeping out
of coastal areas, etc.



Yes, Progressives advocate some decentralization of government except when "that is not possible, even when it should be". Whatever that means. Anyway, no Progressive advocates state sovereignty which is the ultimate decentralization. All Progressives I’ve ever known are of the one nation point of view.

More to the point is the difference between private and government security provision. Without government police there wouldn’t be a racist war on drugs going on. Violent crimes rose during the Prohibition and they’ve risen more recently because drugs are illegal. The worse the "war" gets the more power the government grabs. Asset forfeiture and the militarization of the police are among the greatest dangers to liberty that we face. Socialism in security and law has failed.

I am a very serious private entrepreneur. I was just at a three hour
meeting last night, where were working on a business plan that will
literally change the world, within the decade. For the better or for
the worse, will depend on how government regulates what we do.
And so far, I’m sad to say, the government will regulate it the
wrong way and use our ideas for mostly wrong purposes.


Here is my favorite part of Mr. Geery’s article. I can’t think of a better way to argue against government regulation than these words.

Putting all of the practical arguments together, we have a Socialist welfare system (including Social Security) that is costing us in excess of 5% GDP growth every year. We have a regulatory system for business that is costing us billions every year. We have a bloated Socialist educational system costing us who really knows how much. We have the government military costing trillions and endangering us and the economy with it’s overseas adventures. Yet, somehow, according to Progressives, it is the (nonexistent) free market that is failing to provide for us.

Never mind the failures of Socialism in the US cited above. Never mind the failures of Socialism abroad in places like Zimbabwe, Venezuela, Cuba, the USSR and it’s captive nations, Guyana under Forbes-Burnham, Cambodia, Communist China, North Korea, or India right after independence. Never mind the examples of countries moving in a market direction and even with only partly free markets achieving great results. Countries such as Ireland, Chile, Uganda, the UK, Estonia, the Czech Republic, and Spain to name a few. Inexplicably, to the Progressive markets just don’t work.

One thing needs to be made clear. That is the nature of free markets. Bush and the neocons are not advocates of free markets. They are advocates of fascism that embrace big government just as much as any Progressive does. They sometimes talk about free markets and ownership societies but implement the opposite. Capitalism (by which I mean laissez-faire Capitalism) is about trade and commerce, not government actions, whether at home or abroad.

Free markets are also not about corporations, which are merely creations of and extensions of the state. Capitalists are as opposed to corporate welfare as Progressives are.

My last point is about the morality of redistribution. This is the point that no Progressive has ever been able to resolve, claiming to be against coercion while advocating it.

Imagine a business, let’s say a restaurant, that sent armed men out to take people’s money and then said "it’s OK for us to take your money like this because we’ll provide you with a meal". If one of their victims tries to protest that the restaurants thugs are taking too much, that they’d rather not pay, or they’d rather eat at home they have their money taken anyway and they get thrown in jail for their trouble. Now, no one is going to defend this way of doing business, right? Unless it’s the government operating this way. Then it magically becomes OK. How can the same actions done by different people not be judged the same way? Theft doesn’t become moral just because it’s the government doing it. Forcing "services" down people’s throats doesn’t make it right either.

Ultimately the question is which system is the producer and which is the destroyer. To any objective observer it’s obvious that Capitalism produces wealth, and Socialism, in all it’s variants, destroys it.

by Darren Wolfe (5 articles, 157 quicklinks, 95 diaries, 704 comments) on Friday, February 29, 2008 at 1:23:16 PM
 


Geery lived off the grid for 15 years in an earth-sheltered, solar heated home, while his kids learned in school that solar energy isn't feasible. NAPTA hosts a page on Geery's foibles in education, and explains how he got his butt fired from a tenured teaching position. Here's a short clip of his most recent solar contraption; for more on that project, and Geery's contention that the Wright Brothers took a wrong turn, please visit his airship page (hyperblimp.com). Apparently, Geery is the only...

to see more of bio, click on member name

Daniel GeeryGeery lived off the grid for 15 years in an earth-sheltered, solar heated home, while his kids learned in school that solar energy isn't feasible. NAPTA hosts a page on Geery's foibles in education, and explains how he got his butt fired from a tenured teaching position. Here's a short clip of his most recent solar contraption; for more on that project, and Geery's contention that the Wright Brothers took a wrong turn, please visit his airship page (hyperblimp.com). Apparently, Geery is the only...

to see more of bio, click on member name

The book, Natural Capitalism...

makes great sense to me. I hope you read it; it is the most important book I know of. I'll bet we could agree on quite a few things in there, if you can agree with the premise that we live on a finite planet, with a finite carrying capacity, and that natural ecosystems keep the show alive.

by Daniel Geery (26 articles, 58 quicklinks, 121 diaries, 690 comments) on Friday, February 29, 2008 at 6:14:07 PM
 


Geery lived off the grid for 15 years in an earth-sheltered, solar heated home, while his kids learned in school that solar energy isn't feasible. NAPTA hosts a page on Geery's foibles in education, and explains how he got his butt fired from a tenured teaching position. Here's a short clip of his most recent solar contraption; for more on that project, and Geery's contention that the Wright Brothers took a wrong turn, please visit his airship page (hyperblimp.com). Apparently, Geery is the only...

to see more of bio, click on member name

Daniel GeeryGeery lived off the grid for 15 years in an earth-sheltered, solar heated home, while his kids learned in school that solar energy isn't feasible. NAPTA hosts a page on Geery's foibles in education, and explains how he got his butt fired from a tenured teaching position. Here's a short clip of his most recent solar contraption; for more on that project, and Geery's contention that the Wright Brothers took a wrong turn, please visit his airship page (hyperblimp.com). Apparently, Geery is the only...

to see more of bio, click on member name

Response:

I’ve quoted this before and clearly it could grow to an article or a book or even an encyclopedia of stupidity, but in the interest of time, I must stick with the quote. I beseech you to contemplate it at length, and in depth, and let the seeds of its principles take root in your thinking. It’s from page 208, Pleading Guilty, by Scott Turow (a great novel, btw):

Rational self-interest is Carl’s creed. He worships at the altar of the free market. The same way Freud thought everything was sex, Pagnucci believed all social interaction, no matter how complex, can be adjusted by finding a way to put a price on it. Urban housing. Education. We need competition and profit motive to make it all work. It is, I know, quite a theory. Let everybody struggle to get their bucket in the stream and then do what they like with the water they fish out. Some will make steam, some will take a drink, a few fellows or ladies will decide to take a bath. Entrepreneurship will flourish; people will be happy; we’ll get all this nifty indispensable stuff like balsamic vinegar and menthol cigarettes. But what kind of ethical social system takes as its fundamental precepts the words “I” “me” and “mine”? Our two-year olds start like that and we spend the next twenty years trying to teach them there’s more than that to life.

If that is your religion, Darren, I can only wish you another planet to practice it on. One that is not round and finite and delicately balanced by the forces of nature over billions of years—one that can somehow expand forever and ever, as traditional economists continually advocate.

If you’d like an alternative, however, please do read Natural Capitalism, by Amory and Hunter Lovins and Paul Hawkin. I simply don’t have the time or desire to rewrite it here. I have read a great many books on economics, and this one stands head and shoulders above all the others I’m aware of.

by Daniel Geery (26 articles, 58 quicklinks, 121 diaries, 690 comments) on Saturday, March 1, 2008 at 9:12:26 AM
 


Darren Wolfe is the former Eastern Vice Chair of the Libertarian Party of Pennsylvania. He grew up in Puerto Rico and lived in Venezuela for seven years, including the first year of Chavez' rule. His articles have appeared in OpEdNews.com, the Libertarian Penn, and the Nolanchart.com. News services such as the New York Post.com and Rational Review have published links to his work.

*****************************

"Rightful liberty is unobstructed action according to our wi...

to see more of bio, click on member name

Darren WolfeDarren Wolfe is the former Eastern Vice Chair of the Libertarian Party of Pennsylvania. He grew up in Puerto Rico and lived in Venezuela for seven years, including the first year of Chavez' rule. His articles have appeared in OpEdNews.com, the Libertarian Penn, and the Nolanchart.com. News services such as the New York Post.com and Rational Review have published links to his work.

*****************************

"Rightful liberty is unobstructed action according to our wi...

to see more of bio, click on member name

Natural Capitalism

Here's a review of  Natural Capitalism you might find interesting:

The Unsustainable Politics of Natural Capitalism

By Pierre Desrochers

Pierre Desrochers (pdesrochers@iedm.org) is research director at the Montreal Economic Institute (www.iedm.org).

 

 

In their bestseller Natural Capitalism, a book so heartily praised by environmentalists and business executives that its American edition sold out before its publication date, authors Paul Hawken, Amory Lovins, and L. Hunter Lovins indict traditional capitalism as a “financially profitable” but “nonsustainable aberration in human development” that is rapidly depleting our unrecoverable natural capital.1 To escape this predicament, the authors recommend, among other things, massive taxation and complex regulation of everything they dislike, from nonrenewably generated electricity and fossil fuels to chlorine and pesticides.

 

Despite being described in their book dust-jacket blurbs as “three of the world’s best brains,” Hawken and the Lovinses fail to notice that some of their evidence actually warns against their politically driven prescription. For example, they identify a number of American policy failures that have resulted from over “two hundred years of policies in taxes, labor, industry, and trade meant to encourage extraction, depletion and disposal.” As they point out: “Hundreds of billions of dollars of taxpayers’ money are annually diverted to promote inefficient and unproductive material and energy use.” These range from “perverse subsidies” to the primary sector in mining, oil, coal, fishing, forest industries, and agriculture that degrade soil fertility, use wasteful amounts of water and chemicals, and discourage the use of recycled material. Meanwhile, modern American agriculture features various input subsidies, price supports, production quotas, and use-it-or-lose-it western water laws that result in a Soviet-style system which rewards participants for how much they manufacture or consume rather than how efficiently they produce.

 

So could it be that our modern economies would have been more “sustainable” if politicians had not been busy distorting markets for several decades? Much evidence suggests that this might indeed have been the case.

 

The authors suggest that reducing the wasteful throughput of materials can be accomplished by “redesigning industrial systems on biological lines that change the nature of industrial processes and materials, enabling the constant reuse of materials in continuous closed cycles.” In other words, one company would feed on the waste of another.

 

Much historical evidence, however, suggests that market economies were behaving that way long before Hawken and the Lovinses were born. Actually, many books and monographs were written on loop-closing several decades ago.2 In virtually all instances, people familiar with the inner workings of factories saw the creation of wealth out of industrial waste, whether within the confines of a firm or through trade in the market, as an important way of gaining a competitive advantage.

 

For example, the American authors of the Illustrative and Descriptive Catalog of Whitin Cotton Waste Machinery and of Various Systems of Working Cotton Waste marketed their machines by making this argument in 1914: “The economical and profitable disposal of the waste products of a cotton manufacturing plant has become a problem of the greatest importance. . . . The reclamation of the waste products of a mill affords simple means for the manufacturer to reduce his manufacturing expense to a minimum.”3

 

The German engineer Ernest Hubbard similarly wrote in the preface of his book The Utilisation of Wood-Waste, first published in 1902: “The rational utilisation of waste products is at all times important, but as our industries become more and more developed the working up of the waste or bye-products [sic] which may be produced in any process becomes absolutely essential from an economical standpoint.”4 Looking to the recent past, the journalist Frederick Ambrose Talbot wrote in 1920: “To relate all the fortunes which have been amassed from the commercialization of what was once rejected and valueless would require a volume. Yet it is a story of fascinating romance and one difficult to parallel in the whole realm of human activity.”5

 

Much evidence suggests that market incentives rewarded firms that found ways to turn their waste into valuable commodities. Meanwhile, the vast majority of people benefited from these practices, as finding commercial uses for byproducts typically led not only to improved surroundings but also to lower prices. However, as will now be discussed, less-innovative firms were severely hurt by this new competition, and they quickly tried, often successfully, to secure special privileges through the political process. A case in point is American antitrust law, which Hawken and the Lovinses deem to have been important in curbing “flagrant. . . abuses of market power in the early part of the [twentieth] century.”

 

Politics against Creativity

While many commentators today hold what could be called the “public interest” interpretation of antitrust, Hawken and the Lovinses might be surprised to learn that some historians and economists who are more familiar with its origins do not share this belief.6 One of the first economic sectors targeted by self-proclaimed “trustbusters,” meatpacking, illustrates how the political process has often been used to penalize creative firms for the benefit of their less-innovative competitors.

 

While this is now long forgotten, American meatpacking was a widely decentralized industry until the second half of the nineteenth century, owing mostly to the lack of adequate conservation and transport technologies. The advent of a national railway network and refrigeration, however, eventually paved the way for the rise of the Chicago packers whose strength lay not only in their ability to cut costs by integrating forward in marketing and backward in purchasing, and by obtaining their own materials directly. To a large extent, it lay also in their unparalleled capacity to turn byproducts into valuable commodities.

 

As one contemporary observer put it: “In the great beef slaughtering and packing establishments at Chicago . . . economies are effected which are not possible when this industry is carried on, as usual, upon a very small scale. . . . Every part of the animal—hide, horns, hoofs, bones, blood, and hair—which in the hands of the ordinary butcher are of little value or a dead loss, are turned to a profit by the Chicago packers in the manufacture of glue, bone-dust, fertilizers, etc.; and accordingly the great packers can afford to and do pay more for cattle than would otherwise be possible.”7

 

Actually, Chicago’s meatpacking district came very close to Hawken and the Lovinses’ ideal of “industrial parks whose tenants will constitute an industrial eco-system in which one company will feed upon the nontoxic and useful wastes of another.” As the American economist Rudolf Clemen observed in 1927, there grew around mammoth cattle-killing plants a number of separate satellite industries, which bought the unfinished byproducts of the plants and transformed them into many different products:

 

 

This process of integration in the packing industry and its by-products differs from what is normally understood as integration by the professional economists. While many of the products . . . are manufactured by certain of the national packers themselves, or through subsidiary corporations such as leather and tanning companies and fertilizer companies, in many instances by-products processed to a certain degree within the packing industry proper are transferred to other subsidiary industries over which individual packers have no control, for further elaborate and expensive processing into final, highly finished articles.8

 

 

Among other linkages, large refineries took the non-uniform steam-rendered lard of packers, refined and bleached it, and sold it on the open market. Soap factories bought various grades of tallow. Glue works made their products from bones, sinews, and various other materials. Manufacturers used neutral lard and oleo oil from packing plants to make oleomargarine. Fertilizer plants carted off the pressed tankage and raw or pressed blood, dried and sold it as such, or manufactured mixed fertilizer.

 

According to all credible sources, the Chicago packers received less from the sale of dressed-beef carcass than the amount they paid for the live animal. However, this loss was more than covered, and a reasonable profit reaped, by the sale of hides and other waste materials that were turned into valuable byproducts on an unprecedented scale. The revenue derived from these byproducts, in turn, led to a significant decline in the retail price of meat, which hurt local butchers and retailers unable to compete with their more-efficient competitors.

 

In response, the butchers engaged boycotts. The protest movement took a more organized form in 1886 with the formation of the Butchers’ National Protective Association (BNPA) in St. Louis. As the environmental historian William Cronon points out, while the stated goal of the association was to “secure the highest sanitary condition” for consumers, public health was in fact “a convenient way of putting the best face on a deeper and more self-interested economic issue.”9 Indeed, as economists Donald Boudreaux and Thomas DiLorenzo have put it, the most plausible explanation for the adoption of the first antitrust legislation in Missouri in 1889 is an attempt by politically powerful local producer groups, mostly independent retail butchers, to shield themselves from the intense competitive pressure exerted by the Chicago packers.10

 

Saccharin Story

The history of American meatpacking was hardly unique. The case of saccharin provides another illustration.11 Saccharin was discovered in 1879 by Constantin Fahlberg, a German-educated postdoctoral fellow, while conducting research at Johns Hopkins University. Fahlberg’s discovery came as he was working with Hopkins’s first appointee in chemistry, Ira Remsen, on the reactions of a class of coal tar byproducts (toluene sulfamides). Fahlberg noticed one day an unaccountable sweetness to his food, which he traced back to a compound that accidentally got on his fingers. The two researchers jointly published their discovery in the American Chemical Journal in 1879 and 1880, and in a German journal in 1879.

 

Remsen quickly moved on to other things, but Fahlberg saw the potential of a low-cost sweetener whose production would be much more reliable than sugar cane. He soon changed the name of the compound from benzoid sulphinide to saccharin, which is derived from the Latin word saccharum (sugar). Fahlberg later moved back to Germany where he obtained financial backing, went into business with his uncle Adolph List—who had previous connections in the sugar industry—and eventually put his product on the market in 1900.

 

Saccharin was initially marketed as a sweetener for diabetics, but because of its low cost it was quickly used by other consumers and industries as well. Soon after its introduction, saccharin had 9 percent of the German sweetener market. It experienced a precipitous decline, however, when beginning in 1902, a powerful central and east European lobby of beet-sugar producers persuaded the authorities to restrict the use of saccharin to the pharmaceutical industry. This prohibition led to a booming black market, increasingly supplied from Switzerland, one of the few European countries in which saccharin manufacturing and consumption remained legal. Saccharin has ever since been plagued by similar lobbying efforts by the sugar industry in many countries, including the United States and Canada, despite the absence of any conclusive evidence as to its harmful effect. This ensures that more land than necessary is cultivated and that more energy is used for transporting and refining raw sugar than would otherwise be the case.

 

Politics and the Status Quo

While sustainable-development theorists typically indict market processes for their alleged failure to create wealth out of industrial waste, much evidence indicates that most of today’s “unsustainable practices” were actually brought about through the political process by well-established producers against more innovative new competitors. Because innovative business behavior subverted the status quo, defenders of the status quo soon subverted elected officials, which often led to the adoption of counterproductive measures and environmental harm.

 

While Hawken and the Lovinses correctly identify a number of political barriers to more sustainable practices, they do not pause to wonder how failure on such a grand scale occurred and is still perpetuated. They nonetheless hint at the right answer when they point out that Washington, D.C., is host to “thousands of trade organizations, 60,000 lawyers and 90,000 lobbyists who spend $100 million a month in direct lobbying expenses” and that some corporations “benefit from subsidies, externalizing their costs, avoiding transparency, and monopolizing markets.”

 

Perhaps it will eventually dawn on them that most of the money spent in lobbying for the benefit of special-interest groups typically leads to a less-efficient use of resources. When that happens, they will have gone a long way toward realizing that free markets have always been the best road toward sustainable development and that political interventions have typically turned out to be roadblocks.

 

 1. Paul Hawken, Amory Lovins, and L. Hunter Lovins, Natural Capitalism: Creating the Next Industrial Revolution (Boston: Little, Brown and Company, 1999), p. 5. See their website at www.natcap.org/.

 2. For more detail on this issue, see Pierre Desrochers, “Is ‘Greed’ Green?” Ideas on Liberty, April 2003, and “Saving the Environment for a Profit, Victorian-Style,” Ideas on Liberty, May 2003.

 

 3. Whitin Machine Works, Illustrated and Descriptive Catalog of Whitin Cotton Waste Machinery and of Various Systems of Working Cotton Waste (Whitinsville, Mass.: Whitin Machine Works, 1914), p. i.

 

 4. Ernest Hubbard, The Utilisation of Wood-Waste, 3d ed. (London: Scott, Greenwood & Son, 1920), p. v.

 

 5. Frederick Ambrose Talbot, Millions from Waste (Philadelphia: J. B. Lippincott Company, 1920), pp. 17–18.

 

 6. For an introduction to the topic and a summary of further readings, see Donald Boudreaux and Thomas DiLorenzo, “The Protectionist Roots of Antitrust,” Review of Austrian Economics, vol. 6, no. 2, 1993, pp. 81–96; Alfred D. Chandler, “Government Versus Business: An American Phenomenon,” in J. T. Dunlop, ed., Business and Public Policy (Boston: Harvard University Graduate School of Business Administration, 1980), pp. 1–11; William Cronon, Nature’s Metropolis: Chicago and the Great West (New York: W.W. Norton & Company, 1991); and Gary Libecap, “The Rise of the Chicago Packers and the Origins of Meat Inspection and Antitrust,” Economic Inquiry, April 1992, pp. 242–62.

 

 7. David A. Wells, Recent Economic Changes and Their Effect on the Production and Distribution of Wealth and the Well-Being of Society (New York: D. Appleton and Company, 1889), pp. 98–99.

 

 8. Rudolf A. Clemen, By-Products in the Packing Industry (Chicago: University of Chicago Press, 1927), p. 27.

 

 9. Cronon, p. 242.

 

10. Boudreaux and DiLorenzo.

 

11. The information on saccharin is mostly taken from Tamás Szmrecsányi, “Review of Christopher Maria Merki, Zucker gegen Saccharine: zur Geschichte der Küslichen Süssstoff” (Sugar versus Saccharin: On the History of Artificial Sweeteners), World Sugar History Newsletter, June 1997.

by Darren Wolfe (5 articles, 157 quicklinks, 95 diaries, 704 comments) on Sunday, March 2, 2008 at 5:28:04 AM
 


Darren Wolfe is the former Eastern Vice Chair of the Libertarian Party of Pennsylvania. He grew up in Puerto Rico and lived in Venezuela for seven years, including the first year of Chavez' rule. His articles have appeared in OpEdNews.com, the Libertarian Penn, and the Nolanchart.com. News services such as the New York Post.com and Rational Review have published links to his work.

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"Rightful liberty is unobstructed action according to our wi...

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Darren WolfeDarren Wolfe is the former Eastern Vice Chair of the Libertarian Party of Pennsylvania. He grew up in Puerto Rico and lived in Venezuela for seven years, including the first year of Chavez' rule. His articles have appeared in OpEdNews.com, the Libertarian Penn, and the Nolanchart.com. News services such as the New York Post.com and Rational Review have published links to his work.

*****************************

"Rightful liberty is unobstructed action according to our wi...

to see more of bio, click on member name

Altruist Morality

Actually, as an Objectivist I don't have a religion, I don't "believe" in faith.

This issue of self-interest a question that needs to be carefuly considered, for what sounds good on the surface can hide some very ugly realities. Before going any further let me say that one good quote deserves another, this from Ayn Rand:

Why is it moral to serve the happiness of others, but not your own? If enjoyment is a value, why is it moral when experienced by others, but immoral when experienced by you? If the sensation of eating a cake is a value, why is it an immoral indulgence in your stomach, but a moral goal for you to achieve in the stomach of others? Why is it immoral for you to desire, but moral for others to do so? Why is it immoral to produce a value and keep it, but moral to give it away? And if it is not moral for you to keep a value, why is it moral for others to accept it? If you are selfless and virtuous when you give it, are they not selfish and vicious when they take it? Does virtue consist of serving vice? Is the moral purpose of those who are good, self-immolation for the sake of those who are evil?

The answer you evade, the monstrous answer is: No, the takers are not evil, provided they did not earn the value you gave them. It is not immoral for them to accept it, provided they are unable to produce it, unable to deserve it, unable to give you any value in return. It is not immoral for them to enjoy it, provided they do not obtain it by right.

Such is the secret core of your creed, the other half of your double standard: it is immoral to live by your own effort, but moral to live by the effort of others—it is immoral to consume your own product, but moral to consume the products of others—it is immoral to earn, but moral to mooch—it is the parasites who are the moral justification for the existence of the producers, but the existence of the parasites is an end in itself—it is evil to profit by achievement, but good to profit by sacrifice—it is evil to create your own happiness, but good to enjoy it at the price of the blood of others.

Your code divides mankind into two castes and commands them to live by opposite rules: those who may desire anything and those who may desire nothing, the chosen and the damned, the riders and the carriers, the eaters and the eaten. What standard determines your caste? What passkey admits you to the moral elite? The passkey is lack of value.

Whatever the value involved, it is your lack of it that gives you a claim upon those who don't lack it. It is your need that gives you a claim to rewards. If you are able to satisfy your need, your ability annuls your right to satisfy it. But a need you are unable to satisfy gives you first right to the lives of mankind.

If you succeed, any man who fails is your master; if you fail, any man who succeeds is your serf. Whether your failure is just or not, whether your wishes are rational or not, whether your misfortune is undeserved or the result of your vices, it is misfortune that gives you a right to rewards. It is pain, regardless of its nature or cause, pain as a primary absolute, that gives you a mortgage on all of existence.

If you heal your pain by your own effort, you receive no moral credit: your code regards it scornfully as an act of self-interest. Whatever value you seek to acquire, be it wealth or food or love or rights, if you acquire it by means of your virtue, your code does not regard it as a moral acquisition: you occasion no loss to anyone, it is a trade, not alms; a payment, not a sacrifice. The deserved belongs in the selfish, commercial realm of mutual profit; it is only the undeserved that calls for that moral transaction which consists of profit to one at the price of disaster to the other. To demand rewards for your virtue is selfish and immoral; it is your lack of virtue that transforms your demand into a moral right.

A morality that holds need as a claim, holds emptiness—non-existence—as its standard of value; it rewards an absence, a defect: weakness, inability, incompetence, suffering, disease, disaster, the lack, the fault, the flaw—the zero.




Galt's Speech, For the New Intellectual, 144.

As shown above the result of rationally looking out for number one is that all can benefit from the relationship exchanging value for value. The result of teaching people that self-interest is bad is that people just use & abuse one another taking what they need or want without regard for the other person. So , the answer to the question,