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August 03, 2007
Zimbabwe Update

As predicted, Mugabe's sale-prices-on-command approach to countering inflation is a shattering failure. Constraining prices by legislative fiat always fails, no matter what. Any time you hear about a politician proposing a price control to "help" someone run, do not walk, to the nearest available voting booth and toss him or her out as quickly as possible. Were it to happen at the national level, it would have the nice indirect effect of tossing out all of the more egregious members of the Democratic party, perhaps the thin wedge needed to get me to consider voting for one of them.

The regime is now Stalinist in everything but name, so the next step will be for them to start shooting people. It took, what, a few weeks for the economy to shrivel and die? I'd give them another week, a month at the most, before we start reading stories about executions for the treasonous sabotage of the enlightened leader's economic plan. And those will be the lucky ones. The way regimes like this treat the children of their "enemies" is simply too horrible to detail.

Will that be what finally causes the people to bring down the government? No, probably not. Sadly, history shows the only way regimes like these fall is if their leader starts screwing around with his neighboring countries, or he dies. The army will be far too busy murdering the country's middle class and business sectors to cause its neighbors any grief, and, like Castro, Mugabe shows no signs of having the decency to just hurry up and die already.

Oh don't worry, it can't happen here. The progressives did their almighty best to take US apart in the 70s and (thanks to the timely intervention of Mr. Reagan) failed. They're nowhere near as powerful now as they were then. But those of you who support things like higher corporate taxes or more regulation to achieve economic "fairness" should take a long, hard look at Zimbabwe. What Venus is to global warming, Zimbabwe is to economic policy.

Via Instapundit.

Posted by scott at 10:41 AM | Comments (1) | eMail this entry!
May 21, 2007
Chicken Little at the Plow

Witness Marxist deterministic theory at its finest, at work in paleoanthropology. The idea that agriculture was a devastating discovery for humanity's overall well-being was most definitely the popular line of thinking twenty years ago. It was constantly harped on when I was getting my degree in college (at exactly the same time the article was written.)

Being a dumb, idealistic teenager, I simply accepted this as fact. We were happy hunter-gatherers in the past, and through some unclear chain of events all got trapped into this nasty, brutish, and short lifestyle known as agriculture. Yet even then I had the inklings of doubt... if agriculture was such an obviously awful way of life, why did people choose to live that way instead of the, according to my professors at any rate, obviously better hunter-gatherer lifestyle?

In truth, I still don't know the answer, but the searching for it is most likely one of the earliest events that lead me away from the milquetoast progressive beliefs I once held to the somewhat crunchier small-L libertarian ones I hold today. Agriculture may have caused very visible health problems for its adherents, but it most definitely provided some advantages, and very real ones at that. If it didn't, do you really think the hunter-gatherer lifestyle would've been shoved to the margins more than ten thousand years ago?

Nowadays, being better versed in Marxism than I once was, it's pretty obvious to me why the thought that agriculture was worse than hunting and gathering was so popular at that place and that time. Marxist theories of anthropology were still dominant theoretical forces, given less-red names like "cultural materialism." With the Berlin Wall still sturdy and strong, it was much easier to practice the time-honored academic tradition of holding a belief contradicted by everything around you.

Twenty years later, with Communism completely discredited, markets and freedom ascending, and the West's (in particular the United States's) utterly unreasonable inability to collapse and die on schedule still an embarrassing problem, I wonder if anything's changed over in theory-land? Certainly in Diamond's own later works one must scratch much deeper to get at the Red underneath.

Then again, considering how popular Communism's masonic children Environmentalism and Anti-globalization are, I can't help but think that the bloody, murderous bitch is still with us. There are no fools quite like old fools, and as long as they have people very young, stupid, or ignorant to talk to they will still get a hearing.

It's times like these I think, should immortality ever become reality, the one non-negotiable disqualification for treatment should be whether or not the candidate holds tenure.

Posted by scott at 01:28 PM | Comments (2) | eMail this entry!
April 11, 2007
The Robin Hood Within

Scientists keep finding more and more proof that we are hard-wired for egalitarianism. I sometimes wonder if the acceptance of market economics has been such an incredibly slow, painful, and always belittled process precisely because it cuts against this deeply rooted need we all seem to have to make sure everyone gets a share.

Like our hard-wired dietary preferences, these seemingly hard-wired social preferences simply don't "scale up" very well. While they obviously work when they involve very small groups, egalitarianism sets up precisely the wrong set of incentives required to make large, complex societies grow and prosper over time. For that growth to arrive, and stay, history has proven quite conclusively you need free markets, private property, and a strong rule of law.

Unfortunately the successful application of these conditions inevitably results in income disparity, often very large income disparity, which as noted above rattles the cage of our inner chimp something fierce. To me, this neatly explains humanity's constant, tragic, and utterly intransigent fascination with experiments in large-scale egalitarianism such as Christianity, Islam, and Communism. Even when each of these systems has proven completely (and, in the case of Communism, murderously) incapable of bringing real wealth to the masses, large swathes of us simply refuse to admit their failure.

We create societies so wealthy our poor drive to demonstrations because they're eating themselves to death, and people support them. Mass graves yawn open at the foot of every communist government ever created, and people still wave red flags. Fanatics state flatly their purpose is to dismantle and destroy the economic systems that have put the stars within our reach, and people promptly give them the money to do so.

It's almost enough to make one despair. But, as with our predilection for booze and donuts, many, perhaps even most, of us are now able to resist. It's taken some fifteen thousand years for us to create stable complex societies, but we seem now to have done so. There have been mighty setbacks, but the keys uncovered by Adam Smith and John Locke seem to have finally freed us of the chains we wrapped ourselves in for so long.

Was it fair? Of course it wasn't fair, that's the point. Harnessing greed and balancing ambition is how this game is played. Oppress these natural urges, and nothing moves. Let them run wild, and murderous totalitarianism always emerges. Deny they exist at all and the entire race ends up buried in a mass grave with a red flag fluttering atop it.

We are busy creatures, with large hearts and quick minds. Give us a lever, and a reason to try, and we will by God move the world. Take away that reason, and then try to guilt or force or frighten us into action, and we won't even bother picking the thing up. It really is that simple.

Which is not to say it's obvious, as anyone attending an anti-globalization rally, environmental protest, or Democratic fundraiser will plainly see. We must be careful to make sure our brethren drunk on the milk of their Utopian dreams aren't allowed to borrow or steal the keys to our free-market systems, but it is a care we seem able to take.

It won't stop them from trying, of course. After all, it's an urge we're hard-wired to feel. But as long as we pay attention, they'll fail.

You awake yet?

Posted by scott at 03:06 PM | Comments (1) | eMail this entry!
February 13, 2007
And the Command Economy Goes, "Stumble, Stumble, Crash"

Mike J. gets a perceptive no-prize for bringing us this comparatively even-handed look at all the other problems Iran is facing. The payoff for me (emphasis added):

To curb demand, which has been driven in part by subsidies that keep the domestic pump price at a mere 35 cents a gallon, the government plans to begin rationing gasoline in March, a measure so unpopular, and potentially explosive, that rationing plans have been put off several times in the past.

This single paragraph tells me volumes about what is going on in Iran, and consulting everyone's favorite on-line encyclopedia confirms it: Iran runs on a socialist-style command economy. As with all such social redistribution systems, the regime traded long-term growth and stability for short-term gains in "equality and fairness*," with the predictable result of an unresponsive, inefficient economy incapable of real long-term growth.

In other words, they made sure a peasant's lot was immediately improved by the revolution by taking shortcuts that would completely sabotage the pathways that would let that peasant's children progress and prosper. Like all progressive/liberal economic policy makers, they never thought past stage one and are now paying the price.

Unfortunately, history only provides one way out that actually works... implementation of broad and pervasive free-market reforms. I say unfortunately because, to date anyway, such implementations have always brought about chaos and instability in the short term. In all but one case (China, and only so far, and only because they were willing to crack some heads), this has ultimately resulted in the overthrow of the implementing regime. Not a nice thing to mull over if you're in charge of a population quite famous for its propensity to riot when things don't break their way.

So, will the imams do what needs to be done, with the understanding that history treats even the most egregious implementers quite well once they've gone? It's impossible to say. However, it does, to me, indicate that sanctions have a lot of traction left in them. Over time, economies based on state controls rot like a termite-infested house, and once they become sufficiently rotten it doesn't take a lot of knocking to bring them down.

Sanctions have historically proven to knock rather softly, but if the underlying wood is rotten enough, a tap may be all it takes.

~ If he hears, he'll knock all day ~

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* Take from the rich, give to the poor, soak whoever makes more than a hardscrabble farmer with taxes and make sure no business is allowed to function without massive government oversight. In short, "we pretend to work, they pretend to pay us."

Posted by scott at 01:04 PM | Comments (4) | eMail this entry!
August 01, 2006
Human Nature vs. Mother Nature

Problem: What was once considered prime real estate has lately proven to be nothing more than a giant hurricane magnet.

Obvious solution: Don't live there, move away, build somewhere else.

Actual solution: Piss and moan until one level of government or another can make everyone else pay for your fancy condo or beach-front business:

In recent months, Florida's insurance crisis has mushroomed, spreading quickly from homeowners unable to cope with soaring rates to businesses facing policy cancellations, dwindling coverage and out-of-this-world costs if they can find insurance at all.
...
We brought together a group of lawmakers, a regulator, insurance agents and business and consumer leaders, including Marks, for a roundtable discussion on the crisis, its impact and possible solutions.

Florida already regulates what insurance companies can charge for a particular policy. You know, Florida, the place that's been hit by, what, five major hurricanes in the past three years? The result was typical, shortages. The surprised reaction was also unsurprising, "You're a a bunch of greedy awful corporations taking advantage of us little guys! We won't let you charge what you think it'll take to cover your costs and make a profit. This is what you can charge! Ha! Take that! Wait! Wait! Come back! Hey, Mr. Congressman, pass a tax or something so we can have our condo/beach business back!"

People will only live where it's affordable. But they want to live wherever they please. When markets are allowed to work, the cost of building or living in a hurricane zone, flood plain, fault line, or tornado alley rapidly exceeds what most people can afford, and so the population in those areas falls all by itself. Unfortunately, human nature means people do whatever they can to distort and control those markets so they can build expensive things in the paths of forces which will readily destroy them. They'll then use the levers of government to make us pay to rebuild it all again. And again. And again.

And that's when we all lose.

Profits are not greed. They're a measure of how efficient it is to do something. The prices they generate provide a powerful and effective method of modifying human behavior so it becomes less wasteful over time. Mistaking profits for greed and then trying to legislate your way out of a problem allows people to ignore the obvious and continue their wasteful ways.

The popular response is not to trust the market, it's to legislate some more. After all, it's working so well right now. That it doesn't work, never has worked, and never will work is immaterial. It's not our approach that's the problem, it's that we haven't found the right set of rules, or the people are too stupid to follow them. Pass some more laws! Put the kulaks against the wall! It'll eventually get better! Keep trying!

It's not greed. It's a direct and extremely effective measure of the price of doing business somewhere. The kind of people who ignore this are the kind of people who'll live in a hurricane zone.

Sometimes I think they get what they deserve.

Posted by scott at 08:48 AM | Comments (1) | eMail this entry!
January 02, 2006
Congress Critique

While this article on "what went wrong?" last year is about Bush vs. the Congress, it really could be about any president since Watergate. The gridlock we've all come to know and loathe is of course far from new, but its origins are more recent, and more reasonable, than you'd probably first imagine.

Before Watergate, probably to combat the very things this article talks about, Congress had gradually structured itself so that most of its power was concentrated in the hands of just a few committee chairs. Presidents who really wanted something done met with perhaps 15 or so men (they were always men) and if he could get them to agree to it, it got done.

The zenith of this arrangement was during the Johnson administration. Between 1964 and 1968 perhaps the most powerful congressman (and senator) of the modern era was placed in charge of the presidency with a then-unprecedented electoral majority. Lyndon Johnson knew how the institution worked, knew the men who worked it, and knew exactly what was needed to get something, anything, done. The result was an era of Democratic power and unity not seen before or since.

Largely because of the disastrous excesses this concentration of power created in the Johnson and later Nixon administrations, Congress reformed itself in 1974 (the so-called "Watergate baby" era). The intent was to shatter the control of the comittee chairs and de-centralize decision making in the hopes of making the institution more representative of and compliant to the people. As with most attempts to change powerful structures, they succeeded, but at a cost they didn't foresee.

Instead of de-centralizing the power of committees, the reforms instead created dozens of sub-committees with weaker but still powerful chairmen. The "surface area" of power increased, allowing many more places for lobbyists and special interests groups to corrode the ability of the institution to act in a sensible and consistent manner. That is, when it could act at all, since much of the traditional gridlock of what we now experience as the federal government is traced directly to these reforms.

This is not to say the reforms were bad. After all, they were put in place to stop debacles on the scale of Vietnam, Watergate, and the "stagflation" of the early 70s from ever happening again, and at this they have succeeded reasonably well*. It does, however, mean that people have far less to fear from one party holding "all the cards", and far less to hope for splitting that power between the two parties.

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* Those who equate the experiences of 2001-2005 to 1968-1974 either have an axe to grind or aren't paying attention.

Posted by scott at 02:55 PM | Comments (0) | eMail this entry!
December 01, 2005
Politics, Economics, and Reality

Earlier this year much was made of pharmacists who refused, on moral grounds, to dispense various sorts of birth control. While the vast majority of commentators were wailing and rending their shirts over this "unfair and worrying" development, I decided to sit by and wait for the other shoe to drop.

Thud:

Walgreen Co. said it has put four Illinois pharmacists in the St. Louis area on unpaid leave for refusing to fill prescriptions for emergency contraception in violation of a state rule.

The four cited religious or moral objections to filling prescriptions for the morning-after pill and "have said they would like to maintain their right to refuse to dispense, and in Illinois that is not an option," Walgreen spokeswoman Tiffani Bruce said.

Illinois must not be an "employ at will" state, or Walgreens must not have its policies in order. In both Virginia and Arkansas, these people would've been shown the door simply because they weren't doing the described job, that of filling prescriptions. Why they weren't doing it would be immaterial. Yes, there most definitely would've been lawsuits (perhaps another reason for the legislation), but they would be unwinnable.

This is why it's so important to let market forces do their work whenever possible. This is why people who think businessmen and their profit are evil are simply out of their minds. Customers want safe forms of contraception, and are willing to pay much more than it costs to produce them. Pharmacists who let their politics get in the way of someone else's business cut into those profits, providing strong, efficient, and effective incentives for said pharmacists to either change their ways or stop being pharmacists, voluntarily or otherwise.

Europe is praised for its worker-friendly environment, but in, say, France, pharmacists who refuse to do their job are effectively immune to the consequences, protected by thick layers of government regulation and ubiquitous unions. Labor unions in our own country are often praised for sticking up for the "little guy", but in a case like this the pharmacists would again be protected by labor contracts and arbitration. Meanwhile, someone who doesn't want to become a parent waits, held hostage by forces beyond their control.

Standing up for your principles is commendable. A pharmacist can decide on religious grounds that all medicine is bad and refuse to hand out anything but sugar pills, and that's fine by me. Fine by me, that is, as long as the market that wants these medicines is allowed to thunder past or even over them to get what it wants.

A final note: Standing up for your principles also means being prepared to accept the consequences of your actions. Doing so with dignity and honor is what heroes are all about. Suing someone because you don't like the aftermath doesn't make you a hero, it makes you a whiney bitch.

Posted by scott at 10:31 AM | Comments (1) | eMail this entry!
October 03, 2005
Social Science

Sparked by the comment:

You know, the more I've learned about Adolf Hitler, the less he resembles any sort of conservative, and the more he resembles the far left. He was a vegitarian, an atheist, an intellectual, an artist, a revolutionary, and dreamed of a return to a past utopia when people (or Arayans, at any rate) were truly free. The classification of him, and other reactionaries, as conservative smacks of intellectual dishonesty.

He wasn't far left, he was most definitely far right. What he has in common with your list of "hard lefties" is he was a socialist. Before WWII, there were two kinds of socialism... right and left. The right-wing socialists wanted power to coalesce into the hands of a strong central state, controlled by a select and elite group of people who would keep the common folk's (technically, the proletariat's) best interests in mind while governing without their input.

Left-wing socialists see the state as an oppressive construct foisted on the proletariat, and wish to destroy it thereby allowing power to be wielded by the people themselves as expressed through various theoretically self-forming collectives.

The right wing of socialism is commonly considered to have been destroyed by WWII. Left-wing socialists were conceded the field and have run amok and essentially unopposed since then. Never the brightest bulbs in the bunch, these utopians, when given access to the levers of power, were directly responsible for the abattoirs of the late 20th century.

In my own opinion, right-wing socialism was not destroyed but was instead forced underground. To me, the various governments of continental Europe and Japan, most especially those of Germany, France, and Japan, very strongly represent models of right-wing socialism. True, they have been softened a bit with a veneer of democracy, but close observers of these societies will always comment that power is wielded most often by unelected bureaucrats with only a vague understanding of what the people of their countries really want.

The reason why we do not clearly understand this distinction is to me obvious. Now utterly dominated by nihilistic left-wing socialists, the "soft sciences" of western academia have renamed right-wing socialism "fascism" because it is a) a poorly defined term into which everything bad about the right can be dumped and b) it removes a real and to them dangerous stigma to their hallowed and cherished leftist brand of socialism.

If the 20th century has proven anything it is that socialism of any sort, be it right, left, or the newly minted Islamic kind, is easily the greatest danger to humanity that has ever existed. Hyperbole? Hardly. Societies ruled by the various forms of socialism have probably killed more people in the past century than were killed at the hands of Christians in the previous two thousand. A papal legate may have consigned thousands of innocents to the flames with his comment, "let God sort them out", but this is nothing compared to the millions who have been starved, gassed, beaten, shot or simply worked to death by the likes of those who have substituted the state or some vague secular ideal in His place.

This all has a great deal to do with why I fear our current crop of religious "righties" far less than I do our current crop of secular "lefties." A right-winger may secretly want to force you into a church and consign the most unreasonable of your friends to the flames because they can’t keep their mouths shut and their pants zipped, but it takes a left-winger to starve your entire town to death in a camp for thinking the wrong thing.

Hanging onto a set of discredited beliefs like socialism is one thing. Humanity’s capability for delusion in the quest for radical egalitarianism long predates the plea of, “can’t we just all get along?” It’s something different altogether to be so myopic as to cover up the tendency of those beliefs toward genocide just to give them “one more try.” That those on the left continue to do so, and in such a garishly naïve fashion, is why I fear them.

Posted by scott at 11:06 AM | Comments (4) | eMail this entry!
September 14, 2005
Fallout

We'll be taking a photo-blog break so I can make two predictions in this post-Katrina world:

Death toll: less than 1200. If I were to put an exact number on it, 853. That's for everywhere, not just NO.

New Orleans dry again: less than 2 weeks from today.

Political histrionics, duly regurgitated by our credulous "the Democrats deserve another break today" MSM, always add at least two zeros to any disaster number. Likewise, initial estimates are exciting but always wrong (remember five years to put out the Gulf War fires? 35,000 dead at the WTC?). It may have taken them a day to fix the first pump, but the lessons learned usually mean it'll only take three hours to fix the next, and half that for the one after it, and so on.

The hysterical tantrums thrown (and still being thrown) by the New Orleans and Louisiana administrations had to me just a whiff of ass-covering even before the storm completely blew through. Once the truth about city and state ineptitude began to be made fully clear, that whiff turned into a rancid reek. Democratic spinmeisters and their MSM lackeys are going through heroic efforts to pin the blame on the federal government (which, we should all remember, can't even move letters from one place to another in less than three days), if they try hard enough, they may even obscure the truth, at least for awhile.

Unfortunately Katrina came at the wrong time in the election cycle for this strategy to work well as a road back to power. Had a category-4 hurricane drowned hundreds of Democratic constituents on national TV in the September before a national election the entire liberal-left establishment would (rightly) need to wear underwear protection to keep their ecstasy from becoming a wardrobe problem. As it stands now there will be plenty of time for ponderous federal machinery to slowly and for the most part effectively clank into place to provide relief. There will also be plenty of time for even the most gung-ho Democratic apologists in the media to get bored and start asking what really happened to all those buses.

Anyone actually paying attention can already tell they won't like the answer one bit.

Posted by scott at 03:50 PM | Comments (0) | eMail this entry!
September 06, 2005
Versus

This was something even I had completely missed in all the hyperventilated coverage over New Orleans. Why haven't we heard similar histrionic coverage about Mississippi? They were the ones who got bullseyed by the hurricane, not Louisiana. Why aren't we hearing about even more disastrous incompetence there?:

The buildings in New Orleans are still standing; the Gulf Coast of Mississippi basically has been scrubbed, like God took out a pencil eraser and just erased it.
...
I really don't like to find fault at times like this, but one thing that was missing was a quick recognition that in such a situation the potential for civil collapse is nearly 100%. Once the weather settles, you need to immediately declare marshal law and send in the MPs. That's basically what Haley Barbour did in Mississippi - there were a few early problems but very quickly the MPs were patrolling what was left of Biloxi and Gulfport and keeping a lid on things. Back on Tuesday when I put on the news and we all saw Kathleen Blanco bursting into tears, I knew that was the wrong message and would bring trouble. Louisiana and New Orleans basically have those touchy-feely, "I'm okay, you're okay" soft-leftie types in charge. Their education took a few days and has been expensive.

Actually, I don't chalk up this blind spot in the MSM's coverage to any sort of political bias. "If it bleeds, it leads" has been and always will be a bulwark of popular media. Devastated but otherwise quiet streets patrolled by competently-lead troops just don't have the same sass as corpses floating down Borboun street and boat-borne shootouts below the Pontchartrain levee, don't ya know?

There's also the "hammer" problem*. Since the national media have taken over the story, they see it as a national problem which needs a national solution. I really believe it has simply never ocurred to them to ask why state and local authorities, the people who must be on the ball in the first three days of any crisis of this magnitude, have so publicly dropped it in such a spectacularly disastrous fashion. We hear constantly about Bush administration failures without anyone even once asking why, for example, a city with a comprehensive and well-regarded public transportation system (as New Orleans has had for decades) had apparently no plan whatever to use it as an evacuation tool. Or why the governor, who is explicitly responsible for commanding national guard troops within state borders, was quite patently unable to do so effectively within any sort of reasonable timeframe.

Disasters aren't just federal problems. As much as the "controls everything, must control everything, proper to control everything" popular center-left perception of the federal government is, there are normally at least three other types of government authority out there to assist: state, county/parish, and municipal. When properly run, they will be both faster and more effective than anything a ponderous national entity can manage, especially in the short term. When they're mismanaged and poorly run? Well, the other thing I continue to find amazing is how the MSM seems to have turned a blind eye to Louisiana's and New Orleans's well known and deserved reputations as the most corrupt and poorly managed governments in the country.

I think the contrast with Mississippi is indeed quite instructive, and the comment "So I hope you're Watching Mississippi. Highly recommended - we may have found our next President out of this (you heard it here first)" quite intriguing indeed. Nice to see a state better known for keeping Arkansas off the bottom of most lists getting things right when it really counted.

Via Jason, who also has several good articles you should check out before you ask the "obvious" questions here.

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* "When you're holding a hammer, everything looks like a nail." Often mis-interpreted by those who have never held one.

Posted by scott at 10:55 AM | Comments (2) | eMail this entry!
September 01, 2005
Paging Mr. S.H. Ortage, White Courtesy Phone Please

Actually, I'm surprised it's taken this long for a politician to decide he's an expert in market economics:

Citing credible evidence of price gouging, Governor Sonny Perdue Wednesday afternoon signed an executive order authorizing state sanctions against gas retailers who gouge consumers.

Perdue said he does not believe there is an energy emergency and that the state will not tolerate citizens being fooled by exorbitant gas prices.

"Does not believe", in spite of widespread credible reports of, you know, a giant hurricane ripping through a central refinery location. So now instead of people who really must have fuel to function, folks who drive ambulances, fire trucks, police cars, public-transport busses, and the like being able to get gas while those who don't require it do without for awhile, we get hoarders and shortages.

The press are already reporting huge lines at gas stations in that area, all the while never making the connection that, due to the artificially lowered price and a market panic, everyone in the metro Atlanta area has decided to fill up every single car, motorcycle, lawnmower, and gas-guzzling SUV they own along with every can, jar, and bucket they stuff inside them with gasoline. Regular supplies couldn't keep up with such a sudden spike in demand, let alone those strained by destruction and panic, so shortages are inevitable. In cases like this price spikes are the only way to bring sense to the masses in a way that still ensures a supply is there for those who really need it.

Some price spikes does not equate to an entire city's worth of gas stations setting their prices that high all at once. In a competitive market, if the price is too high at one station you go to one with a lower price. If there really isn't a drop in supplies, if the guy down the street really is just profiteering, then your cheap station won't run out. If it does, you go find the next-less-expensive station, and then the next, and then the next, until it's just too expensive and you walk, buy a bike, take a bus, carpool with the guy who owns a hybrid, or just stay at home and fix dinner instead of going out tonight. What happens then? Why, due to high prices reducing demand, supplies catch up, prices go down, and everything goes back to normal. This is how it's supposed to work. This is the only way it ever works.

But since nobody in America really likes walking or biking or riding a bus or carpooling, they find the nearest reporter and start raising hell about how they "must drive" and "can't survive" and "won't get paid" if they can't fill up their car. Reporters, being the "critical thinking is hard" types they are, will then dutifully report this to the politicians, who, being the "like my job" sorts they are, will obligingly jigger up some laws that hold the price down. Which causes hoarding. Which creates shortages. And around the wheel goes again.

Well, that is unless you're an ambulance driver, or a cop, or a bus getting ready to carry a hundred people who can't pay what gas already costs. Instead of doing their job they'll be sitting in a line with the rest of the grumbling masses, waiting on the next gas shipment to arrive.

"Hell with you! Do you have any idea how fat the profits everyone is making on this are? The oil companies are swimming in cash!"

Do you think they're sticking that money under a matress somewhere? Digging a hole in their back yard and burying it? Hiding it under rocks? Listen up sparky. Yes they're making huge profits, and then they're taking those huge profits and dumping them in banks. Our banks. Money follows supply-and-demand curves just like gasoline, and when there's lots of it the cost of lending it out to other people, people who need it to do things that make even more money, goes way down. They in turn can build more things cheaper, or build fewer things with more risk, creating jobs and opportunities and even more cash, which goes right back into the banks, who then lend it out again. And around that wheel goes.

Let's put it another way. Do you think the ability to get a great mortgage or a near-zero interest car loan or a zero interest credit card is an accident?

Posted by scott at 09:51 AM | Comments (0) | eMail this entry!
August 29, 2005
Boomtime, eh?

Fark (of all places) linked up this detailed look at recent developments surrounding the Alberta oil sands. Now that oil prices have gone far beyond the $40 per barrel price generally seen as required to make the sands profitable, the region is experiencing a gigantic development boom. The potential windfall of billions of dollars in profits are creating fault lines throughout Canadian politics, and could change any number of international axes of power.

In other words, the system is working... higher prices are causing alternative sources of energy to be exploited. This will (eventually) increase supplies, causing prices to decline. That is, if the markets are allowed to work. As mentioned in the article, Canada's eastern liberal elite have once before instituted controls on the development of oil resources for their own purposes, and they're already making noises they will have no problems doing so again. Such bureaucratic meddling is perhaps the only thing gauranteed to prevent the efficient utilization of any resource, and with the mountains of cash this resource can bring in, meddling attempts are pretty much inevitable.

Will exploitation of the oil sands mean the return of cheap oil? Well, it'll certainly mean the return of cheaper oil, which may be enough to bail China out of the jam in which its energy subsidies have placed it. This is probably the most desirable result, since it will allow India's, China's, and the US's economies to continue expanding without a major financial disruption. Canada will become the surprise superpower of the 21st century, with stunned canuks in an enviable position of being able to dictate terms at will to both OPEC and the industrialized world.

But if it doesn't, the subsequent economic collapse will certainly send oil prices crashing well below the $40 per barrel price Canada needs to keep the oil sands profitable, causing an entire industry there to implode. Seething resentment over meddlesome government bungling could finally trigger a rupture that splits the country apart. Governments of oil-rich states, grown fat on monstrous profits, will suddenly be saddled with expensive, inefficient welfare states and constituents unwilling to accept any deprivation. The Middle East will almost certainly wither on the vine, and Hugo Chavez will be lucky to make it to Cuba before a mob hangs his body by its ankles in the capital's square.

It is a very fine line indeed that the various players are walking on right now, and anyone who thinks they know where it'll all end isn't paying attention. Welcome to interesting times!

Posted by scott at 08:49 AM | Comments (2) | eMail this entry!
August 23, 2005
Oriental Oil Imbroglio

While it may seem that the great dragon of China is able to shrug off the super-high oil prices that are percieved to be strangling everyone else, the truth is actually quite different:

The chaos created by sudden fuel shortages in Guangdong Province continues ... The official reason for the shortages proffered by the central government, laughably, concerned last week’s typhoon that hit the province. Additional speculation for the shortages blamed market distortions due to price controls, alas this was only partly correct. Finally, the Hong Kong media got it right yesterday, the real reasons for the shortages have been common knowledge in Guangzhou for several weeks...

While the author cites warring oil companies turning off the taps in a conspiracy to corner China's burgeoning petroleum market, the actual reason is right there... price controls. This explains a lot about what's going on in the oil markets right now. When prices go up, what's supposed to happen is that demand goes down. In the market-driven economies of the west, that's exactly what's happening. This then results in a stabilization of prices, eventually leading to a reduction of price as things regain equilibrium.

But China's throwing a wrench into the works. By instituting price controls, China has allowed demand to grow at a rate completely disconnected from the reality of oil supplies. High prices should cause factories, farm equipment, cars, and power plants to become more efficient just to stay in business, causing them to use less oil, stopping and then eventually reversing price hikes. But since the Chinese government is shielding its industries from this effect there is no incentive to improve, no reason to become more efficient. Wasteful tractors, inefficient power plants, and gas-guzzling cars are allowed to continue operating, even faster, because there's no reason for them not to.

However, the "ain't no such thing as a free lunch" principle is finally starting to take hold. Someone's been left holding the bag on this, eating this price difference, and it would appear to be the oil companies. The inevitable result of any attempt to artificially control prices is a shortage, and now that these oil companies have cut off the taps all sorts of hell may start breaking loose. Because you see most people don't understand why market forces, even ones that seem to hurt people, are a long-term good. They instead focus on the short-term evil of shortages, long lines at gas stations, brown-outs at home, and crops left to rot in fields because there's no fuel for the tractor.

These are the times when democracy shines, and therein lies a deep and perhaps insoluble problem for the current Chinese government. When western nations tried to have it both ways by controlling oil prices in the face of real scarcity back in the 1970s, the resulting economic chaos simply caused voters to boot out the engineers of the disaster and bring in others who could fix it. In some places these fixers were then booted out in turn*, but there was no social revolution, no dismantling of an entire country, no civil wars.

China doesn't have this safety valve. Worse still, the communist party leadership has made the common error of assuming it is the country, and therefore its leaders cannot get their heads around China existing without them. If they can't get ahead of this oil crisis, and quickly, Very Bad Things will start to happen. If they can't get the oil companies to play ball, economic collapse is right around the corner. If they can't get the populace to accept higher prices, social revolution is right behind it.

And therein lies the rub... it seems clear the populace won't accept higher prices, and China's Byzantine bureaucracy and endemic corruption mean their oil companies may not have to play ball. And even if they do, oil prices aren't going to drop just because the Chinese government wants them to, so getting the oil companies to come around will merely delay the crisis, not avert it. When irresistible forces start flitting around immovable objects, reality has a way of clubbing those who refuse to see. If the Chinese government doesn't do something to reign in demand, I'm expecting that club to hit them right between the eyes.

I've often said we're sitting on an oil price bubble that merely needs a pinprick to burst. China's economy collapsing into a heap would fit the bill nicely. Unfortunately their governmental structures are so rigid and inflexible, social revolution would almost inevitably follow. Considering China holds an enormous amount of the US's debt, this would definitely cause "interesting times" for just about everyone.

But that's another story...

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* Westerners are no better at seeing long-term good versus short-term evil, and I can vividly remember the anger most people felt as jobs were lost, farms were foreclosed, and businesses went under during the early 80s. Reagan lost most of his congressional power base in the 1982 elections because of this, and I'm still amazed Margaret Thatcher stayed in power at roughly the same time.

Posted by scott at 10:03 AM | Comments (4) | eMail this entry!
July 08, 2005
Hotelconomics

Welcome, one and all, to the Land of Fuzzy Thinking and Emotional Do-Goodism. This lovely land looks very much like our own, except shortages are not expected to cause price increases:

Hundreds of commuters spent Thursday night stranded in London and some have accused hoteliers of cashing in on the crisis in the capital.

Prices at a number of London's hotels increased by more than double on Thursday night, the BBC has learned.

They most definitely should have doubled, and for very good reasons. Every hotel in the district experienced an unexpected, and unbudgeted, business surge. All existing staff had to stay on and work double shifts (with overtime bonuses). Extra staff had to be called in on top of them to maintain service. Restaurants had to order "rush" supplies to ensure meals could be served. Utility consumption, from electricity to water to even internet access, spiked upward in a completely unpredictable way. Simple custodial and maid services had to have been strained, requiring yet more extra people to contain the rush.

But even if none of that happened and this was a simple price spike, that's the way it's supposed to work. When demand increases and supply remains the same, in a free market the price goes up. People are simply willing to pay more for something that's scarce.

The alternative? Well, in the Land of Fuzzy Thinking, extra hotel rooms certainly would have been whirled out of thin air in an instant, to be given away to maintain our Emotional Do-Goodism image. In the real world, simple human nature pokes a stick in the eye of this lovely leftist liberal ideal, because when the price of something is low, people consume more of it. People who could have made alternative arrangements (no matter how inconvenient) to get home would have checked into a room instead. Those who may have been willing to add some room mates to split the costs would have instead taken a single room. Some may even have declared a holiday for themselves and stayed much longer than they needed to.

The result? Those who couldn't make alternative arrangements no matter what, who would've been quite willing to more efficiently use the space by adding more people, or who just needed a place to sleep for a few hours would simply have had no place to go.

Because, unlike the Land of Fuzzy Thinking, there is no magic hotel fairy around to wave a wand and create rooms out of thin air. No matter how cruel it may sound to the Emotional Do-Gooders who only visit our cold real world on occasion, the simple fact is there is supply, and there is demand. To the crushing and continual disappointment of leftists and liberals around the world no amount of control, regulation, command, or even wishful thinking will change this. Trying anyway (as the good citizens of tLoFT always do) doesn't magically make the situation better, it makes it worse.

Not that this will change anything. When confronted with the simple reality of, well, reality, when their fuzzy yellow nerf-like naivete is squashed flat under the steam roller of human nature, the citizens of the Land of Fuzzy Thinking, as all good leftists and liberals tend to do, will simply simper and cry. "Oh waily waily waily!!!" they'll say, "the evil capitalists and conservatives are having their way with us!!! Exploitation! Profiteering! Such is what happens when greed overtakes compassion! Shame on them! Waily waily waily!!!"

They disappoint me, but they do not surprise me. Just as increased consumption in the face of lower prices is a fact of human nature, so is whining about something we want but can't get. I can only hope common sense takes over and the people bitching about paying double for their hotel room realize that there are others who paid a far higher price that day.

Go home. Get some rest. Hug the ones you love, and keep in mind that if money is your problem, that's no real problem at all.

Posted by scott at 09:45 AM | Comments (0) | eMail this entry!
June 13, 2005
Aftermath

So, what did we learn this afternoon?

  • As much as it'll roll the eyes of many of those closest to me... as with OJ, we learned that America has most definitely progressed. The money of a rich (well, formerly at any rate) black man now buys the same amount of innocence as that of a rich white man*.
  • Regardless of the media circus, regardless of common sense, "Joe and Jane Sixpack" really do take "beyond a reasonable doubt" seriously.
  • Those on the left who think "trust the people" is eye-roll-worthy hyperbole should drop to their knees now and thank whatever it is they worship that they live in this country. You know, in case they ever get accused of something they didn't actually do. Or at least, didn't hurt anyone in the doing.
  • The people of California, after a decade, still have not realized they must Clean House. Start from the lowliest elected official they can get their hands on and boot them over the horizon, then work their way up. Make sure whomever is put in their place knows the reason they have their job is to boot those the people couldn't directly affect over the horizon. Maybe, maybe then The People's Republic of California will stop being a law enforcement laughing stock.

Do I think Jackson did it? Like OJ, the answer is simple... oh hell yes. I read The Smoking Gun. Fourteen-year-olds don't come up with that kind of detail.

Do I think they proved it beyond a reasonable doubt? Again, as with OJ, oh hell no. California prosecutors, per historical precedent, chose to worship the cult of wealth and personality in their own special way and in the process allowed who knows how many real bad guys to walk. California citizens, swirled into the same narcissistic maelstrom, seem to keep re-electing these incompetents just to make sure their state's name stays in the papers. Of course, they then wonder cow-eyed at their monstrous state deficits.

The rest of us simply shake our heads and ponder how we can feel both sickened and heartened at the same time. Micheal Jackson is quite obviously someone who, were it not for obscene wealth, would have been given over to "Bubba the Love Machine" behind bars years ago. And yet he walks free, because in spite of the power and wealth of a state twelve people could not be convinced beyond a reasonable doubt he did what he almost certainly did.

Remeber folks, we're not looking for a perfect system. The world is infested with humanity, and anyone who even dreams of "perfect" justice is either hopelesly naive, an unapologetic card-carrying member of the liberal left (redundant I know), or selling something.

The rest of us, well... on a viceral level and in spite of the fact that I know it's irrational, it sometimes becomes difficult trusting family with my child. I think it takes a suspiciously naive person to allow their near-terminally-ill child to sleep alone in the bed of a man who spends millions of dollars every year to convince himself he's still eleven years old.

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* As destructive as that sentiment may seem, this is why they cheered ten years ago. If you don't think it matters, you're either white or not paying attention.

Posted by scott at 07:45 PM | Comments (1) | eMail this entry!
May 20, 2005
Speaking of Economics

It's actually quite a bit more complicated than "China is stealing American jobs":

China is not the only trading partner of the United States and Europe, but, listening to politicians in the past few weeks, you could be forgiven for thinking it was. In reality, China supplies about one-seventh of American imports and a tenth of European ones.
...
Moreover, those shares are increasing because Americans and Europeans want them to.
...
Now, the United States and EU want to turn the clock back by imposing new restrictions on Chinese textiles. In general, the World Trade Organization has been sympathetic to such measures when they were strictly temporary and used to protect industries in transition. There is no such excuse this time; the United States and EU had a decade to prepare, and anyone could have predicted China's actions when the agreement expired.
...
China keeps the yuan trading within an extremely narrow range by buying billions of dollars worth of American securities. It supplies financing for businesses and the government, making up for the low saving rate in the United States. Again, consumers in the United States benefit - they can keep spending.

In spite of this, as the article notes, protectionism does seem to be on the march, and I agree it bodes well for no one.

"But they're taking our jobs! My friends just lost theirs to foreign competition!"

Quite so, but this is happening because we are making it happen. American regulations and unionized labor have artificially inflated labor costs and made it impossible for our native textile industry, to take one example, to produce clothing and make a profit.

"That's because the other places cheat! Look how they live! These Americans have families! Mortgages! Bills to pay! It's not fair!"

Again, good points. However, there are many definitions of "fair". True, it certainly doesn't seem "fair" for a forty-year-old textile worker to lose their high-paying job because their company can't compete with cheap imports. But it also doesn't seem very "fair" that an entire nation of 280 million people should be forced to pay billions of dollars more for clothing every year just so a few thousand of their fellows can keep their jobs.

What should happen is consumers are given a choice... cheap, reasonably well-made clothing from China (or India, or Vietnam, or wherever), or more expensive, reasonably well-made clothing from the US. The chips (or dollars, if you will) then will fall where they may... if you want to save US jobs, you buy US clothing. If you want to save money, you buy the cheapest thing you can find.

What is going to happen (if Western regulators get their way) is we will be forced to pay more for our clothing than we otherwise would to ensure inefficient factories, poor management, and overpriced unionized labor are able to seem to be competitive. But at least they'll get to keep their jobs, no?

Notice too this burden of higher prices will inevitably fall disproportionately on the poor. I can now in fact afford to pay an extra $5 for a shirt, and probably not even notice it. But there was a time not too long ago when $5 was to me the difference between making my rent or bouncing a check, and I know there are tens of thousands of people across the country to whom $5 is still "real money". The simple fact is that opposition to free trade and globalism, the two great lietmotifs of the left, does not protect the poor, it merely redirects cash from one set of rich people to another.

"Oh, I see it now. What you're saying is we should just toss all these people to the curb simply because they can't compete! How typically neocon of you!"

No, that's not what I'm saying. I'm saying that protectionism as a response to competition does not work, is in fact counter-productive, and hurts far more people than it would ever help. This does not mean we should simply "toss people to the curb", rather we should re-define our strategies for helping them. Make it easier and cheaper to get a good education. Reform regulations and business law to make it simpler and cheaper for anyone to start and run their own business. Keep taxes low so people can keep more of what they make. Ensure capital markets are strong, rich, and healthy so that the very rich (all over the world) deposit their money in our banks, allowing them in turn to lend it out to anyone with a dream and a willingness to work for it. Provide opportunities, don't guarantee results.

Does this mean people will fail? Of course it will. One of the defining features of capitalism is that there are winners and losers. But by ensuring such loss does not automatically exclude future opportunity, we give everyone the chance to keep trying until they finally get it right.

Protectionism is the bastion of utopian idealists, ivory-tower socialists, and cynical special interests. It always creates far more problems than it ever solves. Far better to give people the tools to succeed and the opportunity to use them. Only by allowing them to fail can we ever hope to see them succeed.

Posted by scott at 10:53 AM | Comments (0) | eMail this entry!
May 11, 2005
Getting Over it

Nope, we're still not over it:

An apparent airspace violation over Washington on Wednesday prompted evacuations of the White House and the U.S. Capitol as military fighter jets scrambled to intercept an unidentified aircraft.
...
Former CNN anchor Bernard Shaw said he heard two F-16 jets and saw them circle a single-engine airplane and fire warning flares. The jets then seemed to direct the small aircraft away from the downtown Washington area, Shaw said.

Yup, they rushed people out of the Capitol because of a Cessna. It's been nearly five years, and we're still on a hair trigger.

Those of you outside the US who wait for the time we'll "get over it" have got a lot to learn. I can still remember as a child how obsessed this country was over the likelihood of a sneak attack on a harbor or town, and at that point Pearl Harbor was more than three decades in the past. Other countries may be used to people blowing them up for no clear reason, but we're not, and that will never change.

Does that make us better than anyone else? No. We should get over it. It's been nearly four years, al Quaeda is smashed, Saddam is sitting in a prison, Syria is afraid of sneezing too loudly, and Iran is building nukes because they think they're the only thing left proven to make the US behave itself. With democracy dawning and fascism finally setting over the horizon, we should be well and truly done with jumping at shadows.

Will we get over it? Nope. We're Americans. Most of us really do believe we're the inheritors of the power and glory of republican Rome coupled with the temperance and tenacity of imperial Britain. In a very real sense they are our parents, and reinforced from both sides is the subconscious but no less real belief that We Cannot Fail. As a nation we are simply unable to accept it. Not unwilling, unable. Such cultures do not react well when defeat comes calling.

Rome was shamed and humiliated by Carthage and the Romans did not rest until salt had been sewn into the earth of that city's foundations. Britain threw away a century of careful balancing and precipitated apocalypse over her fear of a Germanic Napoleon. Japan paid the price of nuclear eschaton for her successful humiliation of the most powerful Western culture in history.

In a world where entire cities can be incinerated at the touch of a button, such a brittle pride can be a risky asset. But, in spite of the contrary wailing of soft-headed twenty-somethings and their "old hippies never die they just smoke away" socialist mentors, we are not republican Rome. In spite of the fevered delusions of exploitation and socialist utopia the Democratic Underground hold so dear, we are not imperial Britain. The world may fear our power and detest our wealth, to be honest sometimes we do as well, but its people do themselves a disservice if they think we can be deconstructed as someone else's dim reflection. We will not be seen through a glass, and darkly.

We are instead Americans, as unique and unprecedented as any other people in the world. At our best, we cherish success, reward nobility, protect helplessness, and destroy evil. Since we are still human, at our worst we are quite capable of envying success, undercutting nobility, exploiting helplessness, and encouraging evil. If you were to pick any one thing out that makes Americans different, it is perhaps that, for the most part, we do not cede credit to or place blame on anyone else for our extremes, even when perhaps we should.

We will not "get over it" any time soon, not at all. A nation rich, powerful, and almost gloriously naive about the existence of evil in this world experienced the largest single-day loss of life in an attack since Antietam. Not simply killed, and not soldiers at all, but instead regular citizens murdered in spectacular fashion on national television using the very tools and monuments of our power to do the deed.

The rest of the world treated this country very much as a pretty girl who'd been raped, "Yes, it was a terrible thing, and yes, they were evil men, but really dear, look at the way you dress, the way you act. Don't you think you deserved it, just a little bit?" Even worse was the significant number of our own citizens who snuffled a bit, winced at the pain of still-bleeding wounds, and then slowly nodded in agreement.

But most of us, most of us knew the truth. We knew the world should be safe enough that anyone, no matter how beautiful or flamboyant, should be able to walk down a street stark naked and not worry about being raped. The world miscalculated when it thought America would simply walk away from such an egregious wound. That the barbaric perpetrators, fiery old men who have forever attempted to crush liberty and freedom, should do so is unsurprising. That the rest of the world should do so, merely disappointing. This didn't happen to you. It happened to us. What differentiates us from you is we have the power and the will to make sure it doesn't happen to anyone else. If that means we jump every time a Cessna gets lost or reach for a gun whenever some tinpot loon starts blowing off steam, so be it.

Because we will not fail.

Posted by scott at 02:03 PM | Comments (2) | eMail this entry!
May 05, 2005
When PC Means "Political Classroom"

Poor textbooks are nothing new, not exclusive to the United States, and are actually the symptom of a much bigger problem than bad science.

While this article on just how dumb American school textbooks are makes a lot of noise about how awful things are now, I can state quite categorically this is nothing new. People were making the same "horrible discovery" of politically correct groupthink about the textbooks we used in High School 20 years ago, and they were actually much better than drivel used in the late '60s and early '70s. To this day I'm mildly surprised to read a history book that says something good about Western civilization without immediately qualifying it with something horrible.

But it's not just the US. Japan's version of PC-as-education (the whole "Pearl Harbor was a strike against Western imperialism that resulted in Japan's vicitmization with atomic weaponry" theme) regularly gets it into hot water with its neighbors. We won't even start about what a classroom in Egypt, India, or Russia is stocked with.

The bottom line is when you politicize something it will be politics, not rationality or scientific veracity or even basic common sense, that will rule the day. Government is run by whatever set of busybodies happen to be ascendent in any particular region at any particular time, and those busybodies will be the ones who set the agendas for the schools. And don't get all huffy about fundamentalist wackos teaching kids about Noah and the ark. For every loon you show me trying to wedge Genesis into a science text book I will quite easily show you a loon trying to wedge Paul Erlich into the same space.

Is there a solution? It's hard to say. There have been dozens, perhaps hundreds, of experiments in "good" public schooling in the roughly century-and-a-half it has existed. Unfortunately, such experiments are far more contingent on how effective they are as a lever to drive a wedge of political belief around than they are on how well they teach Alan and Betty to read. Hence the ones that actually get a shot nearly always fail, sometimes disastrously, while others that make immenent sense but are essentially a-political are never tried at all.

Higher education is even worse, since tenure has largely sheltered dinosaurs whose political beliefs (socialism, post-modernism, environmentalism, nihilism, fundamentalism, etc.) have elsewhere succumbed to the gigantic asteroid impact of the 20th century. Keep in mind we actually pay extra to allow these fossils-in-the-making to "educate" our children.

In the end I think, as with anything government touches, the best we can hope for is not "best-practice", but rather "least-worst", and even that will come only through constant struggle. This is not as depressing as it may at first sound. America has been muddling through with a least-worst school system for the past 150 years, and we've done pretty well over the long haul.

But it doesn't mean we should stop trying. The loons may twirl to the right or to the left as they bark madly in the night, but make no mistake, they are out there.

And they'll take our children if we let them.

Posted by scott at 02:53 PM | Comments (3) | eMail this entry!
February 23, 2005
Honor Kills

Ward Churchill and his ilk would simply ignore such savagery in their quest to pillory their own "tiny Eichmanns", but we won't:

Suddenly, the woman in the backseat of the Buick opened the door and stepped out. Her abbaya was unfastened. Her scarf and veil were gone. She had long, thick, black hair. She was a young Saudi woman, maybe seventeen or eighteen. She reached up to the sky and she cried, "Momma! Momma!" Blue nylon cord dangled from her wrists. The white-haired driver got out again and scrambled back around the front of the car. In a futile effort to resist, the young woman sprawled out on the road, stretching her arms out in front of her on the baking summer asphalt. The man pulled her arms behind her back and deftly tied them to her ankles. Then he opened the trunk of the Buick, lifted her up, and dropped her in. He closed the trunk, made a U-turn at the intersection, and disappeared into the sunlit afternoon. It was over in the time it takes a traffic light to change from red to green.

Oh it gets worse, it gets much worse.

There are those on the left who would say, "that's right, that's what it's like, and the Bush administration is beavering away as hard as they can to bring it here." The sentiment would be funny if it weren't so delusional; the utter lack of historical perspective it demonstrates is as breathtaking as it is depressingly common.

Honor killing on this scale and with this much acceptance simply never existed in the west. Yes, the Julian marriage laws of the early Roman empire legalized almost exactly this, but those were considered radical even in their day. Augustus did not have his daughter's throat cut when Julia was found in a brothel, he banished her instead.

Christianity itself abolished the legal framework that allowed such things to take place in the setting sun of the empire's power. The conquering tsunami of Germanic tribes, for whom women were comparatively powerful partners, swept away the widespread cultural acceptance of such practices just a few centuries later.

In the patrilineal agrarian societies of medieval and early modern Europe, adultery was treated as a deadly serious crime because it threatened the power and stability of society, not the ephemeral honor of a single family. Even in the heart of puritan America death for infidelity was a penalty meted by a judge and jury, not the whims or delusions of a single man. And this was only after marriage. One of the hallmarks of peasant life in the pre-industrial west, from Charlemagne to Thomas Jefferson, was the freewheeling permissiveness allowed to young people of both sexes. Virginity itself was important only to heads of state who relied on blood for power. Unintended pregnancies resulted in a quick marriage, not a quick death.

The rise of the machine age simply accelerated the trends. By eliminating physical strength and endurance as a requirement for productive labor, industrial societies willing to forego "traditional" women's roles suddenly found their pool of labor doubled, essentially for free. As their importance to the economic well-being of society increased, women successfully demanded more of the benefits, now "rights", of what they were helping to create.

This is not to say it was easy. “Power concedes nothing without a demand. It never did and it never will.” Fredrick Douglas's words are as relevant for women as they are for blacks. They may not have everything they want, but women in the west have indeed come a long way.

So to even imply a conservative western government has any relation at all to a pre-modern pastoral culture is ludicrous. Our society cannot be pulled back into a Dark Age of disposable women because such a dark age never existed. The requirements of industrialization alone guarantees any attempt to destroy half a country's labor force will remain the dark fantasies of cranks who scream at children on their lawn. Conservatives are famous for their love of business, and making women unhappy in the modern world is very, very bad for business.

Which is, of course, cold comfort to those unfortunate enough to be born in one of the last remaining honor cultures in the world. Christianity's radical challenge to the Mediterranean honor system succeeded, but at the cost of an apocalypse that lasted a thousand years, an eschaton in slow motion that got far, far worse before it ever got better. Islam's radical challenge to its own cultural systems failed from the start, its seeds of egalitarianism and equality never allowed to fully blossom in the sandy soil of its birthplace.

It's not clear if secular modernity will destroy the Christian culture which birthed it as totally as Christianity did to its own ancient pagan roots. What is clear is that this new leviathan can no longer ignore the mewling, half-born thing that once overmatched it, even threatened its existence so long ago. Letting them sort it out themselves is an option that died in the rubble of tall towers and low-slung offices. Yet those who dispair of the comparatively secular Iraq ever getting it right should gasp in horror at the magnitude of the job that would be required for Saudi Arabia. Those who believe the Saudis should have come first should join Socrates in admitting the only thing they know well is that they know nothing at all.

Regardless, this particular die has been cast, this particular Rubicon crossed and far behind us. What lies ahead is anyone's guess, and a guess is all it would be. But as someone who now literally cannot imagine the horrific ignorance and hatred required to draw a knife across the throat of his own daughter over honor, I can say I am grateful that we are at least trying to stop it, and not just with words but with our own blood, tears, and treasure. It took nearly two thousand years for westerners to stop leaving little baby girls to wail their life away in remote fields. It will take more than our own generation to get a different culture to stop.

But every journey, however difficult, begins with a first step. I, for one, am glad we have finally started walking.

"Which is all well and good, but you aren't asking the real question, you arrogant hypocrite. What happened to "not with my daughter?" Really, would you send her to die for this?"

"You ask the wrong question my friend. Olivia will be a grown woman and will make the decision to serve her country on her own. Children should never die before their parents, but death comes for us all. If hers should come fighting to stop old men from stuffing helpless girls into trunks, to stop the unmarked graves from piling up in the desert, to stop fathers from teaching daughters the noise their sister's throat makes when it's cut, I would call that sacrifice meaningful.

The real question should be, why don't you?"

Original article via Silflay.

Posted by scott at 01:28 PM | Comments (2) | eMail this entry!
February 14, 2005
The Bloggers Themselves

The inevitable authoritarian backlash is happening:

Take Bertrand Pecquerie, director of the World Editors Forum, the organization for editors within the World Association of Newspapers, please. Mourning Jordan's decision to step down, Pecquerie likened bloggers to the "sons of Senator McCarthy" and "scalps' hunters."

Steve Lovelady, managing editor of the Columbia Journalism Review Daily Web site, blasted Jordan's Internet critics in an e-mail to New York University professor Jay Rosen's blog PressThink... : "The salivating morons who make up the lynch mob prevail."

The article goes on at length about the mainstream media's reaction, as does this Jeff Jarvis piece and this Instapundit article. What I find most remarkable is how similar this reaction to an empowered public is to the reaction of another set of American elites to a similarly empowered public more than two centuries before.

In The People Themselves, Larry D. Kramer explores how early generations of Americans viewed their constitution and the government it created. It was the founding fathers's intent and expectation that the people, given the ability to elect their own representatives, would do so and then quietly allow their (presumably) enlightened government to go about its business governing in peace. The people would later assemble in an orderly fashion at regular intervals to express their approval or disapproval of that government in, and only in, the ballot box.

That was the ideal. The reality was, as usual, quite different. The people were patently not content to allow their "enlightened rulers" (who far too often made thieves and vagabonds look good) to go about the business of governing undisturbed. To the American elite's growing horror, it became apparent the people expected a direct and constant voice in the way their country was run. To the Virginia gentleman-farmer or the Boston lawyer, such an expectation was akin to letting the lunatics run the asylum, but by then it was too late. Whether intentional or not, the people of America were given the tools to run their own country, and they proceeded to do so with great gusto.

Then, rich businessmen and powerful planters were horrified that the people thought they could run their own country. Now, rich media moguls and powerful editors are horrified that the people think they can run their own news services.

By reducing the cost of regime change from violent rebellion to voting, the founding fathers made a marketplace for ideas possible. The chaotic mess that followed could only be loved by bomb-throwers like Thomas Jefferson (and even his affection for change lasted only so long as he was not its target). However the result would become, all too often in spite of itself, the most powerful nation the world has ever known.

By reducing the cost of publishing and distribution to nearly nil, blogs have unleashed many of the same forces on our new monolithic elite, the mainstream media. Document forgeries and public cases of foot-in-mouth disease that once were treated with a wink and a nod by those "on the inside" are now treated with deadly seriousness by those who are not. Asking whether or not these outsiders should, or could, or are even remotely qualified to do so misses the point. The people themselves are again empowered to choose what they do or do not believe is important on their own, without a patronizing filter that all too often blindly serves its own naked self-interest.

The result will be, as always, a chaotic mess that is a horror to anyone who actually knows, or rather thinks they know, how the system is supposed to work. As such once-empowered voices sink screaming into the seething ocean of the people, their ideas will have to compete on their merits instead of their laurels. Apocalypse and eschaton will be their final cries, to no avail, because once given a power the people seldom return it.

If history is any guide, the people will eventually use it well. And those who try to cross them will do so at their peril.

Posted by scott at 01:19 PM | Comments (2) | eMail this entry!
February 07, 2005
47th Sign of the Apocalypse

Optimistic news from Iraq in the Washington Post this morning:

With a hero who gave his life for the elections, a revived national anthem blaring from car stereos and a greater willingness to help police, the public mood appears to be moving more clearly against the insurgency in Iraq, political and security officials said.

In the week since national elections, police officers and Iraqi National Guardsmen said they have received more tips from the public, resulting in more arrests and greater effectiveness in their efforts to weaken the violent insurgency rocking the country.

One of the biggest mistakes we made in Vietnam was not allowing elections to take place in 1954 after the fall of Dien Bien Fu. Yes, it would have meant the entire country becoming communist and yes, Ho Chi Minh would have been elected president. However, hindsight being what it is, it seems extremely likely Vietnam would have become a freer, more open society (as it is today) perhaps thirty years earlier. The difference would have been 65,000 Americans and at least five times that many Vietnamese would still be around.

Of course, we didn't know then what we know now, so while it's easy to point out our forefather's mistakes, we should be careful not to blame them for being unable to predict the future. They paid a terrible price in blood, tears, and treasure for their pride and ignorance. Some of those bills are still being paid off to this day.

But, far more important, it seems there really were positive lessons that came out of Vietnam, not the least of which seems to be let the people decide, and sooner rather than later. Trust them. Give them a chance. They may take that chance and waste it, but they may also grab it with both hands and use it to run down the sun. You'll only learn if you let them.

As with any human endeavor that really matters, there's no guarantee either way. But, should they succeed (and I think they will, eventually), not only will it pay profound tribute to the lives lost in the current conflict, I think it will also honor a different set, once thought wasted for naught in distant jungles so long ago.

Or, perhaps not...

"You've done a man's job, sir. I guess you're through, huh?"
"Finished."
"It's too bad she won't live! But then again, who does?"

Posted by scott at 12:58 PM | Comments (0) | eMail this entry!
January 17, 2005
Aiding and Abetting?

Been meaning to link this soldier's critique of war coverage in Iraq, not just because it gets the message out about what's going on over there, but also because with its very existence it tells us even more about what is going on.

The first indications that something was going seriously wrong in Vietnam started to be noticed about two years into our "advisory" role in that conflict. Around 1963 young reporters like Niel Sheehan and David Halberstam started getting interviews from battlefield commanders like then-Lieutenant Colonel John Paul Vann that directly contradicted the far rosier accounts coming from Saigon and being reported without question in the mainstream media. In the days before e-mail, blogs, and other "alternative" news sources, it was comparatively easy to mute these dissonant voices, and so poor leadership, poor tactics, and misguided policies were allow to continue for years.

Fast forward four decades. Technology has made it possible for even the lowliest grunt to "get the word out" about what is going on literally minutes after it happens. Like printing presses in centuries past, this technology means higher authorities aren't able to shut down these alternative views. They come too fast, and from too many places.

So, with this technology, what are we hearing two years into this conflict? From reporters trapped in the green zone, trying not to repeat the mistakes of their all-too-approving editorial ancestors and unable to see the manipulation they're being subjected to, we get utter and complete negativity. From soldiers on the front lines, who actually see what's going on, who fight, bleed, and die for this cause, we get... cautious optimism. Profound disappointment that their own message doesn't seem to be "getting out". Even approval of how the leadership is carrying on the broader strategies of the war.

The polar opposites of then and now are striking. Before, mainstream media blared nothing but over-positive and under-critical reports; soldiers unable to be heard any other way leaked stories of what was actually happening that when reported threatened the careers of everyone involved, and were simply not believed. Today, that same media provides an uncritical megaphone to any voice that says we are failing, while success is relegated to obscure journals and small websites, barely to be heard at all.

It is conventional wisdom amongst those "in the know" that after Tet in 1968 the only thing standing in the way of US victory in Vietnam was the (now completely converted) mainstream media. Were it not for their now unrelenting negativity, the thinking goes, Vietnam would be a free-market democracy. Yet many of the same people who "know" about Vietnam, because of what that very same media is telling them now, also "know" we are failing in Iraq, and any story or opinion to the contrary is treated with suspicion if not outright contempt.

I have no certainty about what's going on over there. I've read a dozen books about the middle east, perhaps half again that many about Vietnam, the accounts in my local papers and the stories of soldiers and Iraqis on their blogs, and I have no certainty. I do, however, have hope for success.

I find it curious but not particularly surprising that those who have done none of these things are certain only of failure.

Posted by scott at 11:38 AM | Comments (1) | eMail this entry!
November 08, 2004
Son of Uncomfortable Truths

  1. If you think America is becoming a fascist state you don't know a damned thing about either one.
  2. If you think the government can legislate away our constitutional rights you don't know a damned thing about how this country was created.
  3. The Americans who told the rest of us to "f--- off" when they didn't get what they wanted would've been in charge if they had.
  4. "MoveOn" is not a name, it's an action.
  5. The people who claim they're moving to Canada because of the election are the same people who were too lazy to vote.
  6. Faith is not fanaticism.
  7. Many people can't tell the difference.
  8. The rest of us are glad they lost.
  9. The ultimate beneficiary of legalized gay marriage will be divorce lawyers.
  10. Should abortion be legal? Should it be used as birth control?
  11. A comfortable majority of us say "yes" to the first and "no" to the second.
  12. Most women reading this have known someone who's said "yes" to both.
  13. The correct question is, "are the lives of thousands of American children worth the lives of hundreds of thousands of Iraqi children?"
  14. Anyone who is certain about the answer is insane.
  15. Anyone scandalized by a war based on lies doesn't know a lot about the American Revolution.
  16. Or the Civil War.
  17. Or World War One.
  18. Or World War Two.
  19. Or any damned war for that matter.
  20. After 228 years of continuous existence, it's hard to argue that America's system isn't the best in the world.
  21. Just ask the homeless guy on the Metro grate beside the White House.
  22. A European berating an American for their country's imperialism is like Joan Rivers flipping out over someone else's nose job.
  23. An Arab blaming colonialism for their problems is like a farmer trying to claim hail damage for a rusted-out pickup truck.
  24. Anyone who thinks that Jews are ultimately to blame should be taken for a long walk off a short pier.
  25. If that were to actually happen continental Europe would suddenly wonder where all their politicians had gone.
  26. And Israel's settler problem would consist of finding enough of them.
  27. Thinking this election's outcome was determined by morality only proves it really is possible to forget the unforgettable.
  28. If you're not made uncomfortable by at least one item on this list you're not paying attention.

Next...

Posted by scott at 03:48 PM | Comments (0) | eMail this entry!
November 02, 2004
The Price of Freedom

Pat gets a discount no-prize for bringing us this NYT piece about what might be the final decline of the US textile industry:

For many years, textile and clothing factories in the mill towns of the Carolinas - originally drawn from New York and New England decades ago by the prospect of inexpensive nonunion workers - have been closing one after another as the industry migrated abroad in search of ever-cheaper labor. Now, this gradual loss may be about to turn into a rout.

On Jan. 1, the global system of country-by-country quotas regulating the $495 billion international trade in textiles and apparel is scheduled to be eliminated.

The article goes into great, predictable, detail about how a small innocent Southern town is being decimated by foreign competition and government neglect. Which is, on the face of it, sincerely tragic and rather difficult for a free marketeer to argue against. Until you re-phrase the question:

Should we all be forced to pay six billion dollars more for our clothes to ensure a few thousand people get to keep their jobs?

There are some of you out there who will respond with a raucous "yes!" Who would be quite willing to pay a premium for a "made in USA" tag. To which I say "more power to you!" It's your money, it should be your choice, and if you decide to help these people with your dollars then great, that's the way it's supposed to work.

But the cold hard truth is we're not doing it. To this day I can sing "Look for the Union Label", a jingle to a commercial run thirty years ago in an attempt to get people to "buy American" textiles. It didn't work then, and it's not working now. No matter what smoke and mirrors main stream media and union organizers try to distract us with, the bottom line is it's not the government's fault the textile industry is in free fall. It's ours.

Our penance? Being forced to do our patriotic duty. That's right folks, they're not asking you to "buy American", they're telling you. That is, ultimately, what quotas and trade barriers are all about. Taking choice out of our hands and putting it in the hands of those who think (sometimes with the best of intentions, sometimes not) they know better than we do. Technocratic stasis at its purest.

Noble as saving jobs for rural, poorly educated citizens is, where does it stop? If we save the textile industry, why can't we save the auto industry? The dairy farmers? The steel mills? The bell hops? The travel agents? And who decides which industries get protection, and which ones don't? I may personally be able to afford an extra $4 per shirt, but for a lot of people $4 can make the difference between being clothed and going naked.

To which, of course, technocrats intone the world over "We are the Ones Who will Decide Who Should Pay More and Who Should Pay Less." The truly sad thing is many of you actually believe them. So instead of a free market in which we get to decide who stays and who goes, we end up with a cabal of elite who do whatever they please while ensuring the "rabble" (i.e. you and me) bear the brunt of their decisions about what is fair and what is not.

America has one of the most efficient, mobile, and educated workforces in the world. We work more hours and produce more per hour than any other country on the planet. Sophisticated companies producing sophisticated products are constantly building factories in this country because increasingly wealthy consumers around the world are demanding sophisticated products with phenomenal quality and unsurpassed capabilities that can only be built here. As the world gets wealthier, our supernaturally capable mousetraps are causing them to pave a path to our door.

"Well, that's all well and good Scott", I can hear you say, "but that doesn't hide the fact that textile jobs are still moving overseas. You're just blowing smoke, because obviously we can't compete there, and perhaps anywhere else."

To which I say, to be blunt, bullshit. There's no reason our textile industry can't leverage our superior infrastructure, work ethic, technology, and educated workforce to carve giant chunks out of the hides of anyone who tries to take us on.

Well, no reason except one:

Current trade adjustment assistance, largely aimed at training workers for new jobs, was denounced by factory owners and union officials in this region as too little and too difficult. (emphasis added)

Anyone outside a union who's ever had to deal with one will be the first to tell you about the insanity organized labor imposes on a business. My dad to this day can regale you with tales of bolts on spacecraft that went untightened because union regulations specified only a certain person could turn the wrench. No matter what their (admittedly powerful) emotional appeal, modern labor unions wrap a noose around the neck of any industry that touches them. They may protect, for a time, but when the trap door of competition is opened instead of bouncing on the ground below, coming up bruised but otherwise fine, all a hapless worker will hear is a sickening "snap".

To be honest, I don't think it's fair that someone who's dedicated their lives to a company should suddenly be facing destitution just because the company bosses made stupid decisions. That's why I support easier access to higher education, tort reform and lower taxes to make selling houses more profitable, even loopy things like moving subsidies to make it cheaper to go from one end of this country to the other in search of a job. But I do not think we should all be punished with higher prices just because factory managers and the leadership of the unionized workers refuse to face reality.

I don't say these things as some sort of pseudo-academic who's never had to face these decisions myself. I would still be in Arkansas in a radically different situation if, fifteen years ago, I had been able to find work there. The sad truth is nothing I could do was of value in Arkansas, so after wrenching and horribly disruptive events in my life I ended up (ultimately) in Northern Virginia, where I could send out twenty resumes and get five replies back per week.

If I'd had the opportunity to avoid it all, would I? Without knowing what I do now, facing those risks with no guarantee, absolutely, I would have done anything to avoid it. Am I, my family, my city, my state, my country better off because I couldn't?

The work I do now, that I never dreamed of doing fifteen years ago, helps other people. Helps them keep their family members from killing themselves. Helps others stop the demons from talking them into slashing themselves with razors. Helps them eat a pill instead of a bullet. Helps me raise a family, and buy a house, and pay my taxes.

Yes, it was terrible. Yes, there was pain. No, it wasn't fair. But am I now better off?

What do you think?

Posted by scott at 06:48 PM | Comments (2) | eMail this entry!
October 20, 2004
Questions Needing Answers

Beldar articulates a series of questions I've been struggling to convey for months now to my peanut gallery friends, not the least of which is:

Are you being realistic when you think that President Kerry is going to defeat the terrorists and the peace-at-any-price wing of the Democratic Party?

(Emphasis original)

The impression I get from most of my friends (from either side) is that they seem to see the presidency as a sort of disguised dictatorship. Sure, there's this congress over there causing trouble and there's these supreme court people dressing funny and making weird decisions, but the man sitting in the Oval Office is where the real action is. Right?

Wrong. The structure of our government makes our president one of the weakest heads of state of any modern country. He can't do anything, anything, without the approval of someone else. He can't introduce legislation without someone else's help. He can't make treaties without someone else's OK. He can't even hire his own staff without a green light from other people. It's the ultimate "mother may I?" position.

Even aside from that structural weakness, the job itself has been utterly impossible for one person to manage, even from the very beginning. From Washington to Jackson to Grant to Johnson to Bush the ultimate success or failure of a presidency lies not in the man, but in the people around him.

Let's take another tack for a second. We are a nation of 280 million people, and, as the old commercial jingle goes, "no two are quite the same". A large number of us are completely unreasonable when it comes to things we care about. You literally can't talk us out of certain things, and sometimes one set will completely conflict with the other. It's a country of titanic complexity, with trillions of data points making it up. If a president really were the ultimate "person in charge" in the manner most of my friends seem to think, he'd have to hold all that in his head and balance it all against itself and then come out with an answer.

It can't be done, which is why people who excoriate candidates based on their perceived intelligence are missing the point. You can't know everything about this job, it's utterly useless to even try. It would be worse than trying to drink from a fire hose. It would be like trying to drink from a fire hose that's connected to a pump at the bottom of the ocean.

Which is why a president has a "cabinet". It's these people, who advise the president and carry out his instructions, who are critically important. Even they are not where the real power resides. That lies several layers deeper, in the inscrutable beuracracies that fill the nooks and crannies of the government itself. But the secretaries are in control, however nominally, and it is they who set the tone, they who hire and fire, and they who control what the president even sees, let alone decides on.

When it all works properly, when the people the president surrounds himself with can get questions answered correctly, the presidency can indeed be a powerful force, and the country can succeed because of it. But when it doesn't, that power curdles and curls in on itself, and dangerous forces are unleashed that can, and have, threatened to pull the entire place down.

This is why it's more important for a president to be decisive than it is for him to be knowledgeable. This is why ideology matters. This is why parties count. Because a candidate can be as neutral as he or she wants, but a president must pick from the faithful for his advisors.

With one notable exception, I happen to agree with all of Bush's picks. I think the people around him have done a bang-up job, all things considered. This is one of the reasons I support him for re-election. I appose Kerry because I think he'll surround himself with the wrong people with the wrong ideas, and that this will be bad for the country. You can (usually do) disagree. But in the disagreeing, you don't seem to be paying attention to what your candidate really stands for. You're not missing the forest because of all the trees, you're deciding a single tree is the forest.

And, to be blunt, I think far too many of you have decided you're standing in a hardwood forest because of a single oak tree some enterprising farmers have planted in their piney woods.

Original essay via On the Third Hand.

Posted by scott at 11:21 AM | Comments (10) | eMail this entry!
October 13, 2004
The First Crack in the Dam?

I've always thought music was too expensive at $12.99, and utterly outrageous at $18.99 (where most of the weird stuff I buy is). Which is why I have a killer stereo system but haven't bought new music for it in, what, something like 15 years now. $10.00 is more my speed, $8.00 would be even better. Well, guess what, I have a powerful friend on my side now:

Along with other giant retailers such as Best Buy and Target, Wal-Mart willingly loses money selling CDs for less than $10 (they buy most hit CDs from distributors for around $12) ... Wal-Mart is tired of losing money on cheap CDs. It wants to keep selling them for less than $10 -- $9.72, to be exact -- but it wants the record industry to lower the prices at which it purchases them ... According to music-industry sources, Wal-Mart executives hinted that they could reduce Wal-Mart's CD stock and replace it with more lucrative DVDs and video games [if the labels did not comply].

The article's full of a lot of whining and crying about how terrible it is to do business with Wal Mart, that they're mean and don't care about profit margins and will squeeze you for every half cent you have. Which is all completely true, but there's a reason:

"The labels price things based on what they believe they can get -- a pricing philosophy a lot of industries have," [Gary Severson, Wal-Mart's senior vice president and general merchandise manager in charge of the chain's entertainment section] says. "But we like to price things as cheaply as we possibly can, rather than charge as much as we can get. It's a big difference in philosophy, and we try to help other people see that."

Essentially, Wal Mart has figured out there's a price point out there when it comes to music. Large numbers of people (like me) will not pay even $13 for a CD, but will have no problem paying $9.72. Wal Mart wants to sell music to these people, and make money doing it. Record execs could care less. They’re already making all the money they want. Well, as long as nobody challenges the RIAA lawsuits and the DMCA is never repealed, that is.

Unfortunately, what Wal Mart wants, Wal Mart gets, and so I expect to be visiting our local one soon. What keeps the label execs up nights is that once one retailer gets what they want, the others will demand it too. It's a slippery slope, and they're grabbing grass right now.

Oh there will definitely be a down side to it. Once Wal Mart and the rest force the industry into a $10 per disc model, all those tiny little bands so cherished on the edges of the market will disappear with a "pop". The music industry's business model is coming apart at the seams, and instead of innovating and finding a new one, the people at the top are using lawsuits to try and hold the line. It's not working, and when the shakeout comes, and as long as the markets are free it will come, it will be very, very ugly.

But only for a short while. People make music by and large because they love to make music. People listen to it because they love listening to it. The market's not going away, it's just changing. In spite of apocalyptic predictions, the demise of the current music market will not represent the destruction of western civilization as we know it. Yes, a lot of people will lose (are losing) their jobs, good people who just picked the wrong industry at the wrong time. But, contrary to industry propaganda, it won't result in "McMusic" (bland, boring, and bad for you).

Technology is making it possible for anyone to build a fantastic recording studio in their basement. With a little technical skill and a credit card or two, it's now possible for any artist to be their own record label. The Internet destroys distribution and advertising costs, and the rise of iMusic and its competitors drives down the cost (and therefore risk) to any new act that just wants to be heard. If someone ever figures out how to burn CDs on demand for $1 a disc, Wal Mart won't be carrying 5,000 titles, they'll be carrying 5 million.

To these people, these artists, these innovators, the labels are all roaring dinosaurs, dangerous, heavy, stupid, and vicious, serving only to impede and stymie them. Wal Mart's insistence on a profit-making $9.77 CD may in fact be the asteroid that finally smashes their dominance, heralding apocalypse and ruin. But when the smoke finally clears, we will not be left with sterile wilderness, we will instead be confronted by an explosion of creativity, a jungle of variety, with a diversity literally unthinkable to us today. It will be painful, but in the end it will be very, very good.

And we'll be paying less than $9.72 a disc for it.

Posted by scott at 09:15 AM | Comments (7) | eMail this entry!
October 08, 2004
The Playdough Effect

Offshoring. The very name strikes fear into the tech community. We have to protect those jobs! Keep them from going overseas! Taxes! Tariffs! Quotas! Whatever it takes, do something to stop it!

The emotional response, yes, but unfortunately the wrong one. because if you do that, then this becomes impossible:

Kathy Brittain White has a dream. She figures if U.S. CIOs will ship programming jobs to India to save money, maybe they'll ship them to rural Arkansas instead. So White's company, Rural Sourcing, is setting up outsourcing centers in places in the U.S. where the cost of living is low -- not as low as in Bangalore, but low enough to compete with the total cost of offshoring.

Because that's the other side of the offshoring equation, the one big media ignores and big labor tries to hide. While third world labor is cheaper than US labor, often by orders of magnitude, it's nowhere near as efficient as US labor. The United States has one of (I'm pretty sure it's the) most efficient labor forces in the world. We're expensive, but we get the job done right, the first time, and almost faster than you can complete the specification. It doesn't much matter if you only pay Haji $3 a day to make your widgets when it takes him two days to make one that's any good. Far better to pay Jane $18 an hour and have her turn out fifty perfect ones in a day.

Companies are often wooed by the siren song of cheap labor only to find their ship foundering on the rocks of terrible quality control, uneven and unreliable infrastructure, rapacious government officials, unstable regimes, horrible customer service, and endless export and treaty problems. These are the hidden costs of outsourcing, and they can be huge, even ruinous. We don't hear about them much because "new widget factory opens in Pacoima" is nowhere near as sexy a headline as "little brown people steal jobs from the US." Even worse, the fact that the new widget factory probably won't be a union shop means a tightly organized force will be actively working against anyone ever hearing about the possibility.

In this particular case, not only do I think it will work, I think it will work well. Tech sector jobs in places like Virginia, California, and Washington state are located in places with spectacular costs of living. I can buy a house twice as big as mine for half the price in Arkansas, and that's only the beginning. From cars to crackers and asparagus to zucchini, nearly everything is cheaper in the South.

It won't just be people moving there either. A strong work ethic and a deep suspicion of organized labor equal a work force that will be and stay at the top of the heap in productivity and efficiency. And these aren't McJobs either... they're good, well-paying, solid work for anyone with the brains and the will to learn them.

I always wondered what, if anything, would become of the sad little shuttered factories that dot my old home town of Dumas, Arkansas (pop. 5800) like dried tree stumps in an empty field. I couldn't be more thrilled if, fifteen years from now, they were replaced by clean, efficient tech centers.

None of this would be possible without free markets and free trade. The rich upper-middle-class "haves" would ensure no government program would ever threaten their cushy jobs, no matter how many "have-not" lower-class single mothers would be helped out of trailer parks half way across the country. Companies having no incentive to take the risk or pay the expense of training a new work force would never even dream of moving anywhere else. Without the ability to charge a price she considered fair Ms. White would have no reason to even think of a program like this, and no government official in Washington DC could ever hope to determine that price for her.

No, markets are not pretty. They're not always fair. But they work. People will lose, but people will also win. Rigging the game with technocratic barriers, doing things like "putting the environment and labor first", or raising taxes on people who know how to make money to give it to people who don't, just keep folks from even trying.

I want to try. I'm just glad that, for now at least, I live in a country that wants to let me.

Posted by scott at 03:55 PM | Comments (3) | eMail this entry!
September 29, 2004
Going to the Mat

Tim Worstall linked up this most excellent article by Brad DeLong that very nicely explains why free trade is the real solution to global poverty, and how the left's quest for "fairness" and distaste for "exploitation" merely propagate what they want to stop:

Seth Stevenson thinks that those who do not buy the coir mats are morally superior to Debbie and the rest of us: they are not complicit in the exploitation of Third World labor. But there is another way of looking at it ... Suppose that Seth Stevenson, on his bicycle ride, were to stop by a couple of empty huts, run into them, steal the looms, and then smash their looms to pieces on the beach and dance in front of the resulting bonfire. Then the villagers could no longer make coir mats. They would have to find something else to do--something else that is worse than making mats. Such a theft-and-bonfire would have the same effect on the people of Desperately Poor Village as... as... drying up demand for their products by urging First World consumers to adopt a higher standard of morality and eschew the products of Third World labor, no?

One of the biggest problems I have with the traditional liberal agenda regarding economics is their quixotic quest for that ever-elusive "fairness". It's not "fair" a peasant in India makes less than an autoworker in Detroit. It's not "fair" Bill Gates is worth billions of dollars while a mother of four with an eighth grade education can't find a job. It's not "fair" someone gets paid $3 a week to make doormats that I pay $26.99 for.

To which I can only reply, "what is fair?" How can someone, anyone sitting in their own air-conditioned home instant messaging their friend in California on their own computer while watching their brand-new plasma TV determine what is or is not fair for an Indian peasant in Kerala? How can any politician sitting in his office on Capitol Hill surrounded by pretty, well-scrubbed staffers hope to untangle the forces and incentives that created a single mother of four with no education? How can anyone so utterly ignorant of the spectacularly different conditions of each single person living in poverty think they can help create legislation to fix all of them?

They can't. I can't. You can't. The only people who can are the people themselves. The worker knows how much their labor is worth to them, and the employer knows how much they will be able to pay for that labor. Both base their calculations on hundreds of variables, and in a competitive market most of those (on both sides) will be secret. Do-gooder outsiders with little or no understanding of basic economics, let alone the unique stories behind each and every person in a village, can't even be trusted not to offend anyone, let alone offer any real help.

It's so baldly obvious it's no wonder technocrats and stasists do their best to ignore it: In a country with free markets, stable governments, evenly enforced rules of law, in which information is allowed to flow freely, exploitation is impossible.

A peasant works for 50 cents a day because he knows it only costs 25 cents a day for him to live. An educated peasant also knows to save that extra 25 cents a day, and will do so because his stable government won't take it away or murder him to get it. That same peasant can then one day use his savings to open a store selling mats, secure in the knowledge his landlord will be prevented from arbitrarily raising his rent because of his secure contract. This now successful businessman then learns through his newspaper that there is high demand for mats in the next province, and opens another store there, and then another, and then another. The peasant is now a wealthy man, even though at one point he was being "exploited" making a mere 50 cents a day.

Once we accept this axiom for the truth that it is, our policies change. Create incentives for people to use their own knowledge to succeed. Work for consistent and understandable laws, and try to make sure they're enforced evenly so that people aren't holding the hand of someone who's holding them down. Allow the free flow of information, capital, people, and ideas so that they can learn about opportunities and move wherever they may be. Educate them well so that they'll recognize those opportunities when they come.

All of which is, of course, anathema to the technocratic left. People are poor because they are exploited, and only by taking money from those who have made it and giving it to those who didn't can we right the situation. Jobs are lost because greedy corporations wish only to maximize their profits, and only by protecting these businesses from even greedier foreign competitors can the situation be salvaged. Laws are used to oppress the common man, and only by disrupting them through "empowerment" and endless lawsuits can wrongs be righted.

Common sense, of course. Unfortunately utterly wrong as well. Like energy maneuvers in air combat, to really succeed in providing prosperity we must sometimes do things that point the nose away from the target. Trust people, give them the tools to figure it out amongst themselves, and provide the opportunity for them to do so, and prosperity will happen faster than you can possibly imagine. Try to control them, to force them to fit into your idea of fairness, and you will create people who depend on your fairness just to survive. Prosperity becomes something that must be taken, not shared.

Which is, I suppose, what most political leaders want... an appreciating constituency completely dependent on the largess of their leader. It even works, as long as the leader is wise, never makes a mistake, and never dies. For myself, I don't want to be dependent on anyone. I should be allowed to succeed or fail by my own devices, and reap the rewards of my success without them being taken from me, and deal with the consequences of my failure without them being "cushioned" for me at someone else's expense.

I don’t want to rely on anyone but myself. Why does anyone want anything else?

Posted by scott at 10:23 AM | Comments (3) | eMail this entry!
September 21, 2004
Going Up

Slashdot linked up this summary of recent developments in space elevator technology. It's still just a lot of talk, but it's a lot of talk coming from many more people and it's a whole lot more serious than it used to be.

It's also nice to see people actually debating private sector funding. In the past, a project of this scope would have only been an occasion for a bunch of lobbyists to huddle and try to find a way of prying the money out of the government. NASA stands out as a shining example of the limitations and inefficiencies of that method.

It would seem now is the first time in history we are wealthy enough to buy (if nothing else