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Posts Tagged ‘Government’

States and Religions – Scar Tissues From Our Childhood

March 16th, 2010 Nima 6 comments

People’s perception of government and religion is quite an interesting phenomenon.

Not so much with the younger generation (and by young I mean the young at heart, meaning those who are curious, open-minded, self-searching, truth-seeking, and still capable of rational thinking), but definitely with those whose minds have stopped accepting new or alien ideas and whose only aim it is to jam every concept and observation into their immutable and eternal mental box.

The scar tissue of an abusive childhood remains so long as one does not confront it openly and honestly. All of us have been subject to moral corruption at one point or another in our childhood. Bullying parents, teachers, and priests are those who lay the groundwork and fertilize the soil for obedient and irrational adults in the future.

To most of us, the fact that those who preached to us when we were young were morally corrupt individuals of the first order, is probably one of the scariest and most challenging things to admit. The more emotionally offended and upset one gets when confronted with such ideas, the more likely it is that he is suffering from this scar tissue. But from this unfortunately follows that those who have been most brutally corrupted, are actually least likely to confront their past!

This is why, when people exalt the imaginary concepts of the state and of God, all they really seek is justification for the irrationality and mental or even physical abuses experienced in their childhoods.

For if the state’s brutal depredations of mass murder and mass-theft are justified, then surely the moments when your mommy snapped and hit her completely powerless little one, or when daddy took your favorite toys away from you, were all comparatively minor and necessary means to getting you back in line … right?

If the faith in an all-knowing yet all-powerful, non-material yet conscious, living yet never born or ceasing, murderous yet virtuous, and thus completely contradictory and unproven entity is rational, moral and beyond questioning, then surely the moments when your parents told you to “Shut up!”, “You do what I say, not what you think is right!”, “Don’t ask!”, “Don’t think!”, and the like, were just consistent applications of the superiority of faith over logic and empirical evidence … right?

There is no better way to break a the development of a curious and reasoning spirit!

Thus, when you outline to such scarred people the rather simple truths as to what it is that people who call themselves “The State” actually do day in day out, that they obtain their resources from people by shooting them if they resist the collection thereof, you will always confront immediate denial and aggressive rejection and complete ridicule of the idea. This is as sure as night follows day.

When you press people who suffer from religiousness on very simple logical and empirical inconsistencies and shortcomings about their belief in God and other superstitions, you can expect very similar reactions.

(To be sure: I am not saying this to offend people. Quite the opposite! I fully appreciate and understand that it is asking a lot of somebody to give up concepts that have served as the foundation of one’s entire world view. In fact, I am not sure there is a harder thing one could ask of somebody!!)

But it is impossible to evade simple truths. People will bombard you with everything conceivable to try and bend reality and justify the unjustifiable, reason out the unreasonable. They will come up with ten different tangents, all with the objective to get off the topic at hand as quickly as possible.

Why is that? Because they are in their subconscious not talking about “The State”, or “God”. They are talking about their childhood, their family and other authority figures who have molded and whipped their minds into obedience and conformity.

To them, it is not about discovering the truth. Their entire quest for supposed understanding, philosophical thoughts, and political positions are centered around the justification of the injustice and the reasoning for the un-reason that they suffered in their upbringing and their education.

Keep this in mind when talking to pretty much the majority of people around you. They will never be open to dealing with serious questions in a logical and consistent manner until they have dealt with and found closure about the injustice and irrationality that have dominated their own upbringings.

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No Government??

February 24th, 2010 Nima No comments

OK, all you freedom worshiping nutjobs, all you anarchists, anarcho-capitalists, anti-staters, you who run around with mohawks and ripped pants, I really need to tell you: I agree that something is wrong with this government, but to pose as a solution to GET RID OF IT?? Are you completely out of your minds?? Obviously you never read anything about economics or ethics. Without government can you imagine the madness that would unravel immediately? The nation would plunge into a state of mass mutual warfare, the rule of law would disappear, trade would get crippled and we would all be yearning for an apparatus that keeps together the fabric of society … the government.

OK, I will stop that rant right here. This is pretty much the nonsense most of us here are familiar with. It is what we get every time we confront someone with the idea of a stateless society.

The problem is of course as we all know that when we propose the idea of a stateless society, THEY think we want to get rid of the functions that the state fulfills in their minds, while WE think of nothing but abolishing an apparatus that subsists solely by the means of aggression.

This of course really means that both sides have a very different definition of the term state. They have the fantasy high level conceptual definition, we have the one that simply looks at reality.

With those two opposing definitions it is obviously impossible to gain common ground.

I recently talked about it with a friend who is, I would say, a classic liberal, and a soon to be convert-anarchist (*evil laugh*). The following was conceptually the gist of the dialog:

He said: “I agree that something is wrong with the current way the government produces justice.”

I told him: “Well, I just think that the service of justice should not be provided by an institution that obtains its resources by the means of aggression, it should be voluntarily provided by DROs who compete for consumers.” (of course I explained him a bit more about DROs)

He said: “Well, then THAT’S your government, whether you want to call it DRO or whatever, it is a government. See, we NEED a government.”

Obviously he is wrong when we apply our commonly understood definition of government. But if we apply a statist’s definition of government, such as “That institution that produces justice.” he is actually very much correct.

Thus I would like to suggest that our Anarcho-Capitalistic position is actually not all that different from moderate statists’ positions. By saying we want to get rid of the state we will always and everywhere meet resistance and ridicule. As crazy as it sounds in our definition, we do indeed just want a DIFFERENT government from their point of view if we work with their shallow definition of government.

Thus I think we shouldn’t put the “abolish government” banner at the front lines of our march, but rather try to keep in mind what definitions most people are working with …

Example: I have had more people agreeing with me when I told them things like “yes we need roads and police, but how about we let the people in charge raise the funds for these efforts voluntarily from those they are serving, and allow other people to try and provide these services in a better way to bring more customers on their side”.

What I said above is 100% anarcho-capitalistic, however it will be a lot more agreeable to deluded and misguided statists. I’m not saying it will be absolutely agreeable right away, but certainly a lot more than to open with the idea that you want to get rid of the state …

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Why Are We At War?

February 3rd, 2010 Nima No comments

Great statement from an Iraq veteran:

Mish points out:

Why are we at war?
War is profitable, that’s way.
It matters not how many die, as long as the warmongers make a profit on it.

Sorry but I beg to differ: We are NOT at war because it’s profitable. In fact, war is NOT profitable at all. It is the exact opposite. It is a terribly unprofitable venture. It is only profitable for the contractors who are at the cost side of the venture. But you don’t look to the vendors and contractors to determine whether a particular venture is profitable! They are not the “investors” funding the war. The investors are you and me and our children whose tax dollars have been squandered and pledged for the rests of our lives …

We are at war because people still believe in this mad fantasy called government, a false concept through and through. So long as people don’t get this crucial point, they can talk, complain, wag their finger as much as they want … they might as well go along with it. Because their blind contradictory faith in the prime cause of all their misery will only perpetuate that misery.

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Categories: Government Tags: ,

Call the cops …

January 30th, 2010 Nima No comments

A friend called the cops today because he thought they would help him for some reason. I then asked him and two other friends: “Tell me, when did cops ever help you and NOT bully, harass, or fine you for not hurting anyone?” – Two remained silent, one said: “This one time, a cop helped me because he was going to fine me for driving fast, but then let me off.”

If I put on a blue costume and a hat, does that allow me to stop anyone whose speed I don’t appreciate on some road? What if I stop my neighbor and tell him that it is only through my own goodwill that he will be able to move on. Does that mean I helped him? Didn’t I much rather waste his precious time??

This is how mentally brainwashed and deranged we are today. We justify the most violent and intrusive of acts, so long as they are performed by the almighty armed people in blue costumes.

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Categories: Government Tags: ,

Schiff @ Freedomain Radio

January 29th, 2010 Nima 2 comments

While Fox, CNN, and MSNBC discuss why independents’ favorability toward Obama during his State of the Union address went up by 3% during the 10th and 11th minues of his speech, and why Republicans disliked the 15th minute, it’s time for a well deserved dose of truth:

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Human Rights & Anarchism

December 13th, 2009 Nima No comments

A lot is being talked about rights. But what is a right? I have written about it before in Ethics, Human Nature, and Government:

A right is defined as a defensible claim to an object, meaning a claim that, if necessary for the preservation and development of mankind, may be defended violently.

But this statement still doesn’t clarify where rights come from. Who determines which creature has defensible claims to what? Thus it is crucial to understand that rights are inextricably linked to and the outcome of a process of reasoning. This is precisely the process I applied in the article I referenced above.

If you haven’t read it yet, do so, because I will not delve into the details here. I will just say that the concept of rights is derived from the assumption that humans have a certain nature and that a part of this nature is the desire to live and the desire to remove uneasiness every step of the way. Part of this nature is also the innate capability to let reason guide one’s actions, as opposed to instincts. Thus it immediately follows that when we talk of rights we always implicitly refer to human rights. We’re not talking about the rights of a cow, a bird or a fish.

If humans did not have a desire to live or to improve their well being every step of the way, the concept of rights would be completely irrelevant. But then, if humans did not have a desire to live I would not be sitting here and writing stuff. I’d have no business doing so. Nor would you be reading this and maybe posting comments on it. You’d have no business in doing so. Thus the desire to live rises to the status of an irrefutable axiom.

But to delimit the scope of human rights requires consistency. If one agrees that he has a right to his body and his property it immediately follows that all other humans do as well. It also follows that if he thinks he may for whatever reason infringe upon someone’s rights, he may rightfully become subject to defensive violence.

Thus a peaceful and just society is only possible if everyone’s rights are respected and exercised when needed. This is by no means to say that all humans are saints. The concept of human rights does not assume that in any way. Quite the opposite: Talking about rights would be completely futile and vain if it weren’t for people who infringe upon them. To state that one has a right to something always implies the threat of defensive violence, were one to become a victim of aggression.

It is also not to say that our current system is in any way designed in a way so as to respect our rights. Again, quite the contrary: A system that involves a government is by definition one that allows a certain group of people to perform aggression and theft on a periodical basis and with complete impunity, meaning without the subjects exercising their rights. It is impossible to institutionalize a system that protects everyone’s rights if the institution entrusted with this task by definition violates them.

There is only one system that establishes the framework that will one day enable all humans to exercise their rights to the fullest extent possible. This system is of course and by definition the system of anarchism.

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Government Equals Aggression – Nothing More, Nothing Less

November 28th, 2009 Nima No comments

Any economic discussion is useless when we don’t look at human action. We can talk all day long about government intervention, business regulation, stimulus packages, bailouts, taxes, deficits, etc. But what do these terms really mean? What do they mean in terms of human actions taken?

After all society is nothing but a sequence of different actions taken by humans, every second of the day. Economics is nothing but an analysis of a very specific subset of those actions, namely those that are motivated by or lead to changes in the money prices of goods.

A government is nothing but a group of people that uses aggression to take money from other individuals on a periodical basis and promises protection in return.

Business regulation, in these people’s minds, really means that that same group of people hires individuals and purchases guns in order to force others to comply with orders decreed. If the subjects fail to comply, they will be fined, if the fine is not forthcoming, letters will be sent, if the letters are not answered, armed thugs will arrive and and force them to hand over the requested fine.

If the thugs are still met with non-compliance, they will kidnap their victims and order that they be prosecuted and thrown in jail, the laws being such that they will be prosecuted and thrown in jail. If those same people dare to raise a gun to defend themselves and their property against this intrusion, they will be shot.

The stimulus package is nothing but a debt that is taken on on behalf of the taxpayers, and then spent on things that benefit the contractors and individuals who receive the money first. This is happening in an environment where the majority of people is in too much debt already.

But taking on more debt is not going to get anybody out of this predicament. It is not some lofty, imaginary government that ultimately owes the money, it is the taxpayer whose tax payments will be used to repay the debt in the future. That same taxpayer who is already underwater and has spent too much of his money already. But how is that tax money taken from the taxpayer. Well, just read what I wrote one paragraph above and substitute “tax” for “fine”.

Every single government policy will always lead you back to these basic facts. When a government official says “we need to do xyz”, he really means “our armed gunmen need to extort money from individuals so we can do xyz”, there is simply no way around this.

The politicians in power of course don’t have much of an incentive to talk about their policies in those terms. If they did, they would immediately reveal the cruel, unethical, mafia-style character of every single one of their actions.

Some people will try and make the argument “but the majority agreed to it”. So what? What does that mean? Since when is the majority right? Heck, the majority elected Hitler into office! The fact that the majority agreed/consented with something does not in the slightest make that thing right.

If the majority of people in your house agreed that it was just to take your money via aggression, would you say that that makes this a just undertaking? Is in not rather oppression of a minority? What if all the people on your block agreed that it was appropriate to steal your property and you are the only one objecting? Does that give them the right to do so?? What if all inhabitants of your town or city were to come together and declare it just to take your money or your home from you, and threatened you with kidnapping and throwing you behind bars if you dared to resist. What if every single person in the country joined the mob and declared it just to take your possessions? Does that make it just? Is it not rather the exact opposite, a monstrous injustice, a mass crime on a colossal scale?

Then those who run out of arguments to support the validity of the state will tell you that after all, you are getting something in return from those who use aggression to obtain your property. But how ridiculous is this? Why would they ever give you more in return than what they took from you, without infringing on someone else’s rights in precisely the same way. All the odds are against the idea that money handed over to a bureaucratic institution will be utilized in your best interest, it is impossible to evade The Trouble With Bureaucracy.

Furthermore, even if they did give back precisely what you were forced to hand over, what in the world would the purpose of this exercise be, other than a gigantic waste of time and resources? On top of that, how do they even know what to give back? Did they ever ask you? Were you presented with a menu to choose from? What if you don’t want the things they claim to be giving you, what if you don’t think they are worth even a fraction of the money you handed over? But does anyone give you the choice?

But let’s play along with this fantasy and assume they do give you something you specifically asked for in return. What if it has flaws? What if it doesn’t work in a way that caters to your needs? Does anybody ask you for feedback on how specifically to improve the good that was provided to you … you know, all that stuff that private businesses do, so long as they are not subsidized or bailed out by … *sigh* … the government? But notice how I am having to make the most ridiculous of assumptions in order to try to find a slight justification for the existence of the state. And yet, it is still impossible to find one that even remotely makes sense.

Then they will bring up the argument that you chose by voting. OK, let’s assume that fantasy was true, and Barack Obama presented every single good he is going to provide in return for your tax money. (The argument fails there already but I am trying to be as open as possible to all the boring justifications people will come up with again and again.) Then that immediately begs the question: What if you are one out of the 80% of the population who did not vote for him? Surely the person advancing the argument that you made a choice by voting can’t deny that in that case you did NOT vote for the choices presented and should not be obliged to hand over your property at gunpoint.

When confronting people who have unlimited faith in the validity of government with those facts, one will likely always be confronted with rolling eyes, aggravated temper, ridicule, name calling, and other immature reactions. But there is one thing that you will never encounter: A reasoned refutation of the facts presented.

Ethics, Human Nature, and Government are crucial concepts that need to be understood. So long as they are not, people will continue to be surprised about all the governmentally induced failures that will have been, from my point of view, as predictable as ever.

And finally, a nice clip that supports the point I am making above:

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Ethics, Human Nature, and Government – A Manifesto for Liberty

August 1st, 2009 Nima 3 comments

The Scope of Normative Ethics

The universe is an ongoing sequence of events. Every event is an effect of something and a cause of something else at the same time. An event describes the movements of objects within specific limits. Objects are atoms or combinations thereof. The nature of an object is a complete set of rules about what specific effects specific events involving that object will have on it. (For example: An apple, let fall, will drop to the ground.) The total collection of all events and the natures of all objects I will refer to as reality.

Humans are objects within the universe. They possess the ability to utter statements about events and the natures of objects. These statements are beliefs. The total of all those beliefs that match reality is referred to as truth. The pursuit of truth is what we commonly refer to as science.

Science enables humans to understand what events enable objects to let their natural faculties come to full fruition, and what events are destructive to them. The former are referred to as good, the latter as bad.

By virtue of the fact that humans are objects in the universe, a human being, too, has a nature. Specific events affecting a human, will have specific effects. A human action, or simply an action, is an event consciously precipitated by a human. A group of humans, connected via actions, is what we refer to as society. To discover which actions are good and which are bad for human society, and thus to establish a set of rules that is universally applicable to every human being at any given point in time, is the objective of normative ethics.

Human Nature

Every human being, man, once born, possesses full ownership, meaning control, over his body. This is an irrefutable truth. Anyone who tries to refute it would be exerting ownership over his own body in the very process. This self ownership is in the very nature of man. It is a necessity for the development of his faculties.

The desire to stay alive, too, is in the nature of man. Whoever tries to refute this truth would be doing so while being alive. If he didn’t want to live he would have no business arguing the point in the first place. If he were to shoot himself he would cease to exist and no ethics would be necessary to determine what would be good or bad for him. Thus life becomes the most commonly pursued good among humans.

But man cannot survive without utilizing the land around him. In fact, he cannot even exist without it. The existence of man would be unthinkable without his environment. Even if he was not consuming anything, wearing anything, or putting his hands on anything, at the very least, and before anything else, he needs to occupy standing room.

He possesses the ability to fully comprehend and memorize cause and effect of specific events involving specific objects, the ability to reason. Thus he can obtain and retain knowledge. He possesses the unique ability to first and foremost let his reason guide his actions. The animal’s actions are, on the contrary, first and foremost guided by its instincts. Action guided by reason is referred to as rational action while action guided by instincts is reflexive action. This is what we mean when we say man is a rational being. He can apply his knowledge to objects and events that he has already memorized, or infer from the nature of certain known objects that similar unknown objects will have a similar nature, and put this knowledge into action.

Once the desire to live is satisfied, man strives for objectives beyond that. At any given point in time, he feels uneasy about something. This uneasiness is a purely subjective phenomenon and differs from person to person. It may also be more broadly referred to as “that which makes man act” in case the term uneasiness causes misunderstandings. He thus always acts in order to remove uneasiness. In fact, every rational voluntary action is only performed because man feels that it will improve his condition. He would never perform a rational action that he’d deem detrimental to his own perceived condition. The fact that men aim at objectives and employ means to attain them is, again, irrefutable. Whoever sets out to refute its correctness would be aiming at an objective, employing means to attain it.

The Scope of Political Philosophy

Man can thus employ his reason to utilize the scarce land around him by applying his acquired knowledge. He can mix his labor with this land in order to create consumer goods or factors of production. He utilizes those goods in order to remove perceived uneasiness.

When he utilizes and transforms unused land, he obtains ownership over new objects. Ownership over such objects is called private property. Thus his self-ownership over his body is extended to ownership over material objects. He can utilize those objects as means to his ends. By the virtue of this he shows that this procedure, too, is in the very nature of man.

Other men can do the same thing. They can then, if they so desire, enter into exchange transactions. All these acts are performed voluntarily and enable men to extend their scope of removal of uneasiness and let their natural capabilities come to fruition. All property obtained via initial appropriation (homesteading) or voluntary exchange is considered to be justly acquired property. During an act of voluntary action both parties enter because each of them prefers to own the good to be obtained to the one surrendered. They both attain the objective aimed at. By the virtue of this, these acts are to be considered good.

But when one man obtains ownership over goods owned by another man without that man’s consent, or alters their condition in any form, or physically harms that man’s body, all acts of aggression, he only removes uneasiness for himself, but adds to the other man’s uneasiness. Thus, this act cannot possibly be in line with a normative ethic which is supposed to spell out universal rules applicable to every human being. If, furthermore, all people were to perform such acts on everybody, mankind would at once cease to exist. Such an act can thus not possibly be considered good in any way.

But the fact that some men desire to perform such acts makes it necessary (for the preservation and further development of mankind) for the attacked to perform violent acts of defense. A right is defined as a defensible claim to an object, meaning a claim that, if necessary for the preservation and development of mankind, may be defended violently. Man thus has a right to the ownership of his body and his justly acquired property. The absence of aggression or threat thereof against his body and property is referred to as liberty. That part of normative ethics that ultimately deals with questions of the proper use of violence in different cases is called political philosophy.

Morality

Morality really falls under the sphere of political philosophy. It defines which binding behavioral rules about inflicted behavior are logically inconsistent and/or can in no way be universally applied to all humans at all places and at all times. It defines such rules as immoral.

A binding behavioral rule is a statement about what a human should or should not do. A binding behavioral rule about inflicted behavior is a statement about what one man should or should not do to another man. Example: The rule “One person should rape another.” could in no way be applied to the latter person while the former performs the act. It thus qualifies as a binding behavioral rule about inflicted behavior that is not universally applicable, viz. immoral. The same goes for acts like murder and theft.

Abstaining from immoral behaviors can be referred to as moral. All rules that we intuitively perceive as immoral can be successfully examined via this rationale.

The Nature of Government

The idea that man has a right to defend his property and his body is not a mystical or arcane one. It is, in fact, commonly understood. Most people agree with it and condemn those who initiate aggression against others. There has, however, throughout history been one type of organization, which has, again and again, been able to aggress against individuals with impunity and with support by public opinion. This organization is referred to as government. It obtains goods by aggressive means, also known as taxation. This is the inherently unethical, anti-social, or simply bad nature of government.

Nowhere has the essence of the State as a criminal organization been put as forcefully or as brilliantly as in this passage from Lysander Spooner’s No Treason where the actions of a robbing highwayman are compared to the government’s modus operandi:

It is true that the theory of our Constitution is, that all taxes are paid voluntarily; that our government is a mutual insurance company, voluntarily entered into by the people with each other. . . .

But this theory of our government is wholly different from the practical fact. The fact is that the government, like a highwayman, says to a man: “Your money, or your life.” And many, if not most, taxes are paid under the compulsion of that threat.

The government does not, indeed, waylay a man in a lonely place, spring upon him from the roadside, and, holding a pistol to his head, proceed to rifle his pockets. But the robbery is none the less a robbery on that account; and it is far more dastardly and shameful.

The highwayman takes solely upon himself the responsibility, danger, and crime of his own act. He does not pretend that he has any rightful claim to your money, or that he intends to use it for your own benefit. He does not pretend to be anything but a robber. He has not acquired impudence enough to profess to be merely a “protector,” and that he takes men’s money against their will, merely to enable him to “protect” those infatuated travellers, who feel perfectly able to protect themselves, or do not appreciate his peculiar system of protection. He is too sensible a man to make such professions as these. Furthermore, having taken your money, he leaves you, as you wish him to do. He does not persist in following you on the road, against your will; assuming to be your rightful “sovereign,” on account of the “protection” he affords you. He does not keep “protecting” you, by commanding you to bow down and serve him; by requiring you to do this, and forbidding you to do that; by robbing you of more money as often as he finds it for his interest or pleasure to do so; and by branding you as a rebel, a traitor, and an enemy to your country, and shooting you down without mercy if you dispute his authority, or resist his demands. He is too much of a gentleman to be guilty of such impostures, and insults, and villainies as these. In short, he does not, in addition to robbing you, attempt to make you either his dupe or his slave.

Thus economic policy, if it wants to attain its objectives, can do nothing but limit the extent to which matters are organized by government and the scope of its intrusion into the lifes of individuals within the territory it oversees, or ideally completely abolish the institution of government itself. So long as the government confines its activity to the protection of individuals against aggression and theft only little harm can be inflicted. Every expansion of governmental powers, however, will inevitably expand the use of unethical and destructive action within society.

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The Self Hatred of the Masses

February 26th, 2009 Nima 5 comments

The average person does not in any way have an impact on major developments in the world. Be accomplishments in politics, science, business, architecture, literature, the common man does not contribute in any major way. He listens to what he is told in the media and by his favorite politicians. He doesn’t question, reason or think. He follows and takes orders, he doesn’t lead, change or create. He thinks and stays inside the box.

Only very few people have the drive and the ability to create, change, and improve things. The greatest technological accomplishments in this world, such as electricity, motor vehicles, aviation, or computers were not made by a collective herd of compliant individuals. They were the work of a few innovative, industrious, and contrarian researchers and businessmen.

Today the American worker enjoys goods and services that a Croesus or the Medici would have envied him for. But he doesn’t realize that it was very few brilliant people before him who made this possible. He mostly takes these things for granted. He doesn’t acknowledge his deficiency when compared to these individuals, in fact he generally scorns them as intellectual elitists.

Those few who create, change, and innovate are caught in a precarious predicament. They need to produce for a large number of people who generally display poor judgment, bad taste, and consume goods of little intellectual value. This is particularly true in the fields of entertainment and literature. The majority of people prefers shallow movies and novels. But in a relatively free system the producers have no choice. They have to serve their consumers as they please and subordinate their will to the wishes of the masses.

Nobody likes to accept the fact that he himself is a tiny cog in a huge machine and that he has contributed nothing to the accomplishments of his age. Thus he finds refuge in the words of the politicians. The people who tell him that all humans are equal. That no one person contributes more than another. Thus he falls for the soothsayers of collectivism. He begins to sympathize with the mindless blather of the worshipers of nature, the people who tell him that human accomplishments will always be inferior to the creations of the seas, the earth, and the winds, that the merely man-made New York skyline is dwarfed by the colossal beauty of the Alps, the Sierra Nevada mountains, or the redwood trees of the Yosemite valley. He finds comfort in the words of religions that tell him that in the end we’ll all be judged by god in heaven and that mundane accomplishments won’t matter anyway.

Thus he begins placing his trust in government instead of in his own capacities. The government, as the mystical force that can conjure up wealth out of nothing. The government that tells him everything he wants to hear. The government that represents the mighty collective versus the callous and rugged individual. The government that will fix all his problems. The thought of that is way too appealing to be cast aside as a result of any logical reasoning. Plus an army of self styled intellectuals stands ready with simple and shallow justifications for any government policy, no matter how mindless and harmful it will be.

Thus he begins placing his trust in the god almighty instead of human logic and reason. God, the ultimate judge of all his inferior children. God who will welcome him in his benign aegis as one among equals once his sorry mundane life is over. Again an army of self styled intellectuals stands ready with simple and shallow justifications for any particular religion one happens to have fallen prey to.

Justification for one’s relevance unwittingly turns into a genuine hatred of mankind in general, and ultimately self hatred.

Ayn Rand put it best in The Fountainhead. When the opportunistic, yet brilliant publisher Gail Wynand tells his soon to be wife Dominique on their romantic excursion on his yacht:

“[T]he person who loves everybody and feels at home everywhere is the true hater of mankind. He expects nothing of men, so no form of depravity can outrage him.”
“You mean the person who says that there’s some good in the worst of us?”
“I mean the person who has the filthy insolence to claim that he loves equally the man who made that statue of you and the man who makes a Mickey Mouse balloon to sell on street corners. I mean the person who loves the men who prefer the Mickey Mouse to your statue-and there are many of that kind. I mean the person who loves Joan of Arc and the salesgirls in dress shops on Broadway-with equal fervor. I mean the person who loves your beauty and the women he sees in a subway-the kind that can’t cross their knees and show flesh hanging publicly over their garters-with the same sense of exaltation. I mean the person who loves the clean, steady, unfrightened eyes of man looking through a telescope and the white stare of an imbecile-equally.”

(…)

“You’ve never felt how small you were when looking at the ocean.”

“Never. Nor looking at the planets. Nor at mountain peaks. Nor at the Grand Canyon. Why should I? When I look at the ocean, I feel the greatness of man. I think of man’s magnificent capacity that created this ship to conquer all that senseless space. When I look at mountain peaks, I think of tunnels and dynamite. When I look at the planets, I think of airplanes.”

(…)

“It’s interesting to speculate on the reasons that make men so anxious to debase themselves. As in that idea of feeling small before nature. It’s not a bromide, it’s practically an institution. Have you noticed how self-righteous a man sounds when he tells you about it? Look, he seems to say, I’m so glad to be a pygmy, that’s how virtuous I am. Have you heard with what delight people quote some great celebrity who’s proclaimed that he’s not so great when he looks at Niagara Falls? It’s as if they were smacking their lips in sheer glee that their best is dust before the brute force of an earthquake. As if they were sprawling on all fours, rubbing their foreheads in the mud to the majesty of a hurricane. But that’s not the spirit that leashed fire, steam, electricity, that crossed oceans in sailing sloops, that built airplanes and dams . . . and skyscrapers. What is it they fear? What is it they hate so much, those who love to crawl? And why?”

It is ultimately their own deficiency they hate. It is what makes them follow false ideas. But ultimately there is no problem with deficiency per se, so long as one accepts it and makes an effort to improve. The problems only arise when people reject reality, refuse to improve, and begin to delude themselves.

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The Trouble with Bureaucracy

December 14th, 2008 Nima No comments

As explained, the objective of economic policy is to do whatever possible to enable the market to move toward market equilibrium in order to ensure that the largest possible number of individuals are supplied with the largest possible number of demanded consumer goods, given that the factors to produce these goods are always scarce.

Prices for consumer goods on the market enable entrepreneurs to understand which consumer goods are more amply or urgently demanded than others. Prices for factors of production indicate which factors of production, from the consumers’ point of view, could be employed in better occupations where they produce more or more urgently demanded goods.

The discrepancy between prices paid for factors of production and money earned from consumer goods sold is the entrepreneurial profit. It is the entrepreneur’s remuneration for enhancing the usage of productive factors based on what the consumers are asking for.

When the entrepreneur hires senior managers and directors, and when he divides his operation into different divisions, he still needs to ensure that every single one of his divisions contributes toward a profitable outcome. His directive to his subordinates will be but a simple one: Be profitable or lose your job. True, certain administrative and legal operations will by themselves not appear profitable, but the entrepreneur will need to keep those within limits and make sure the remaining operations more than offset these.

When a good is first offered on the market it will not be what the consumers were looking for. The entrepreneur and his entire business operation, in order to attain a desired sales level and reap a profit, will be forced to adjust and improve the good. Testing, fine-tuning, and adjusting attributes that pertain to the goods offered are indispensable steps in the production process.

The consumer himself, too, is not omniscient. He can’t tell the entrepreneur why precisely he dislikes or likes a good. He can merely decide to purchase or not to purchase. And when he uses the good he will either like it or not. And if he likes it he will come back. If he doesn’t he will abstain from further purchases.  It is up to the entrepreneur’s innovative and analytic capacity to deal with the consumer’s fancy to please him. The consumer is the toughest and most difficult to please supervisor in the supply chain. The ability to buy or not to buy a good gives the him the most powerful of all choices: the choice by action. The choice by action stands in contrast to the choice by voice. There is no more immediate and democratic vote than that of the unhampered market: every single penny counts and has an impact on entrepreneurial decisions. True, some people are richer than others and will have more voting power. However, this is only the case because they have been elected as representatives of other, less wealthy, consumers, by selling to them goods that they demanded, directly or indirectly.

Without price indicators and the ability to calculate profit and loss, entrepreneurs and consumers would be entirely at sea. All production would be mere guess work. Consumers could not be supplied as they desire. Factors of production would be squandered, misallocations and mass poverty would inevitably ensue.

Bureaucratic management has none of the above indicators at its disposal. Under bureaucratic management, money is taken via taxation from the consumers before they get to make a decision as to whether or not they want to purchase the good offered. The bureaucrat then, no matter how benevolent we assume he may be for the sake of the argument, faces an insurmountable task: He needs to spend the money obtained in order to usefully employ factors of production that produce goods which will be offered at no price since the money has already been violently taken from the consumers.

Without the ability to calculate profit and loss it is impossible for the bureaucrat to ascertain whether or not he is withdrawing factors from more urgently needed occupations and, from the consumers’ point of view, employing them in less urgent ones. To a certain extent, he will need to resort to mere guesswork. The merit of all his and his subordinates’ actions will have to be assessed by himself.

Under a constitutional government, the bureaucrat faces oversight from legislative bodies and parliaments. Those have been elected by the consumers via choice of voice. Without the simple and clear directive to make a profit, the bureaucrat will need to resort to other, even less perfect success measures. When he subdivides his operation, he can’t give his subordinates the simple directive to make a profit. Thus he needs to establish a set of meticulous rules, regulations, directives, and registers. He still has no idea weather his operation actually enhances the well being of society, but he tries to limit the potential damage caused.

As a result, the spirit of bureaucracy will swiftly permeate the entire operation. Success will be solely measured by strict adherence to the regulations established. Innovation and flexibility are done for. Adjustment to consumer demands will be impossible. Over time, as new bureaucrats fill the ranks of old ones, a more severe misuse of factors of production, if not already present, will become inevitable as the good intentions and ideas that stand behind the regulations established will no longer be grasped by the new officials in charge.

Thus economic policy, if it wants to attain its objectives, can do nothing but limit the extent to which matters are organized in a bureaucratic fashion. Since the main bureaucratic organization in any society is the government, this inevitably entails the limitation of the size of government and the scope of its intrusion into the lifes of individuals within the territory it oversees. So long as the government confines its activity to the protection of individuals against aggression and theft only little harm can be inflicted. Every expansion of governmental powers, however, will inevitably lead to a bureaucratic misuse of the scarce factors of production available, an increase in poverty, and a lower standard of living for everyone.

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