The Party of Know-Nothings



"Ideas may be cut loose from experience in two senses: either they have no roots in experience, or they are not submitted to the test of experience. Either way, they are free to be foolish." So wrote Jeane Kirkpatrick in the Introduction to her landmark book, Dictatorships and Double Standards (New York, 1982, p. 10).

Kirkpatrick's statement applies perfectly to the band of naïve idealists now in change of our government. The youthful dreamers guiding the Obama administration have almost no private-sector experience. Like Obama himself, the Cabinet and host of czars who direct policy have spent their lives in politics or academia, be it as Democratic political consultants, professors, nonprofit directors, or community organizers.

Lack of real-world experience may actually be the primary criterion for employment in the Obama White House. Secretary of the Treasury Timothy Geithner, for example, has no work experience outside government. He joined the Department of Treasury in 1988, three years after graduating from college and traveling about Asia, and he has continued in government service ever since. Lawrence Summers, Geithner's invisible twin on the economic team, has no more experience than Geithner. His entire work experience can be summed up in a few words: professor, World Bank advisor, government employee. Even more limited is the experience of Cass Sunstein, regulatory czar and close friend of the president. His résumé can be inscribed on a postage stamp: professor, 1981 to present.

Then there are the hardcore politicos whose relation to the private sector is not just distant, but hostile. Rahm Emanuel, Obama's Chief of Staff, worked on the Illinois U.S. senate campaign of Paul Simon even before completing his university education. From there he moved to the Daley mayoral campaign in 1989 and the Clinton White House in 1993.

For his part, David Axelrod, Obama's closest political advisor, has spent his entire career in the world of Democratic politics. Beginning as a political writer for the Chicago Tribune, he soon established himself as an independent consultant, serving on the campaigns of such leftist luminaries as John Edwards and Eliot Spitzer, as well as on the U.S. Senate and presidential campaigns of Barack Obama. No one in Obama's inner circle has less experience or appreciation of the private sector than Axelrod.

Another key figure is Obama's long-time adviser, Valerie Jarrett. Ms. Jarrett (who, by the way, was born in Iran and from childhood spoke Persian as a first language) spent most of her career in Chicago politics before following Obama to the White House. She has become wealthy by consulting with government clients and maneuvering the politicized world of Chicago real estate development.

From Geithner to Jarrett, all of Obama's advisors have one thing in common: they have devoted their lives to the expansion of government. They believe -- quite "passionately," as Axelrod has put it -- that government is the solution to America's problems. Their political DNA is deeply antagonistic to the free market and to the assumption that monetary incentives spur productivity and growth. Professors and politicos, they know nothing of how to manage a business, and they certainly know nothing of how to balance a budget.

Most ordinary human beings know a great deal more than Obama's circle of advisors. They understand that it is the private sector, not government, that produces goods and services. Instinctively, they know there's something wrong with the idea that government "creates" jobs. They understand that subsidies for biofuel start-ups and failing banks are wasteful and wrong, and they know that more subsidy is only throwing good money after bad.

They also know that government revenue comes out of somebody's pocket. Only those who have spent their entire lives in government service or in academe don't understand this. The trillion dollars in stimulus of which Obama is so proud -- he still claims it created or saved millions of jobs even as the Labor Department reports that four million jobs disappeared since the stimulus was signed -- was confiscated from the paychecks of working Americans. It was spent to expand welfare payments to those who do not work, to preserve the jobs of inefficient unionized workers, and to fund favored projects of Democratic political contributors.

Americans who have to work for a living understand that Obama's stimulus spending is political payola on an epic scale. They also understand that it is capitalism that produces wealth and that the profit motive is the key to wealth creation.

Without the opportunity to earn a profit -- to be paid for their labor and rewarded for their investment -- workers would not work, and investors would not invest. For this reason, a society that disdains capitalism will soon find its standard of living faltering. Fewer goods will be produced, supply will be constrained, and prices will rise. With prices rising, goods will become less affordable, and less will be purchased. The result is a vicious cycle of declining production and rising prices.

What I am describing is the classic state of affairs within all socialist economies. Goods become scarce, and so, as government attempts to equalize supply, they are rationed. Since rationed goods are by definition sold at below-market prices, more and more goods find their way to the black market, where they are sold to the highest bidder. Instead of creating equality, socialism always produces a two-tiered system. On the black market, for those who can afford them, goods are plentiful. For the rest of the population, they are scarce.

It is this two-tiered system toward which we are heading. In only twenty months, Obama has succeeded in shifting one hundred million Americans into greater dependency on government. One hundred million Americans now receive unemployment benefits, expanded welfare payments and child credits, food stamps, housing subsidies, Medicaid, and (soon enough) ObamaCare. In essence, they are the recipients of rationed goods within a state-run economy. Over time, they will become less well-off as wealth continues to be sapped from the private sector and the production of goods is curtailed. They will be serving life sentences in the prison of socialism.

For the political elite, of course, no such prison exists. Once it becomes apparent that the economy is not coming back, those who have engineered the miracle of Obamanomics -- long-term unemployment rates of 17%, stagnant growth, and crushing deficits -- will obtain new political appointments, move on to lucrative consulting jobs, or simply return to their tenured university positions. Comfortable and well-fed, they will continue to prosper even as they have learned nothing from the failure of their policies.

As for the rest of us, we will pay for their lack of experience.

SOURCE

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'Clunkers' was a classic government folly

by Jeff Jacoby



IN THE MARKET for a used car? Good luck finding a bargain: The price of "pre-owned" vehicles has climbed considerably over the past year. According to Edmunds.com, a website for car-buyers, a 3-year-old automobile today will set you back, on average, close to $20,000 -- a spike of more than 10 percent since last summer. For some popular models, the increase has been much steeper. In July, a used Cadillac Escalade was going for around $35,000, or nearly 36 percent over last July's price.

Why are used-car prices rocketing? Part of the answer is that demand is up: With unemployment high and the economy uncertain, some car-buyers who might otherwise be looking for a new truck or SUV are instead shopping for a used vehicle as a way to save money.

But an even bigger part of the answer is that the supply of used cars is far lower than it would be if your Uncle Sam hadn't decided last year to destroy hundreds of thousands of perfectly good automobiles as part of its hare-brained Car Allowance Rebate System -- or, as most of us called it, Cash for Clunkers. That was the program under which the government paid consumers up to $4,500 when they traded in an old car and bought a new one with better gas mileage. The traded-in cars -- which had to be in drivable condition to qualify for the rebate -- were then demolished: Dealers were required to chemically wreck each car's engine, and send the car to be crushed or shredded.

Congress and the Obama administration trumpeted Cash for Clunkers as a triumph -- the president pronounced it "successful beyond anybody's imagination." Which it was, if you define success as getting people to take "free" money to make a purchase most of them are going to make anyway, while simultaneously wiping out productive assets that could provide value to many other consumers for years to come. By any rational standard, however, this program was sheer folly.

No great insight was needed to realize that Cash for Clunkers would work a hardship on people unable to afford a new car. "All this program did for them," I wrote last August, "was guarantee that used cars will become more expensive. Poorer drivers will be penalized to subsidize new cars for wealthier drivers." Alec Gutierrez, a senior analyst for Kelley Blue Book, predicted that used-car prices would surge by up to 10 percent. "It's going to drive prices up on some of the most affordable vehicles we have on the road," he told USA Today. In short, Washington spent nearly $3 billion to raise the price of mobility for drivers on a budget.

To be sure, Cash for Clunkers gave a powerful jolt to car sales in July and August of 2009. But it did so mostly by delaying sales that would otherwise have occurred in April, May, and June, or by accelerating those that would have taken place in September, October, or later. "Influencing the timing of consumers' durable purchases is easy," Edmunds CEO Jeremy Anwyl commented a few days ago in a blog post looking back at the program. "Creating new purchases is not." Of the 700,000 cars purchased during the clunkers frenzy, the estimated net increase in sales was only 125,000. Each incremental sale thus ended up costing the taxpayers a profligate $24,000.

Even on environmental grounds, Cash for Clunkers was an exorbitant dud. Researchers at the University of California-Davis calculated that the reduction of carbon dioxide attributable to the program (under best-case assumptions) cost at least $237 per ton. That is more than 10 times the going rate on the international market, where carbon emissions credits currently cost about $20 per ton.

Using Department of Transportation figures, meanwhile, the Associated Press calculated that replacing low-mpg "clunkers" with new cars getting higher mileage would reduce CO2 emissions by around 700,000 tons a year -- less than Americans emit in a single hour. Likewise, the projected reduction in gasoline use amounted to about as much as Americans go through in 4½ hours. (And that's only if you assume -- contrary to historical experience -- that fuel consumption decreases when fuel efficiency rises.)

When all is said and done, Cash for Clunkers was a deplorable exercise in budgetary wastefulness, asset destruction, environmental irrelevance, and economic idiocy. Other than that, it was a screaming success.

SOURCE

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Obama's Stimulus Fails across the board

June, July and August were supposed to be the months. Democrats clinging to re-election hopes just knew that between the artificial job gains from Census Department hiring, the impact of their almost $900 billion in “stimulus” spending, and the tens of billions spent in other programs, that the economy would be roaring, people would be working, and the path to November would be made easier. Their so-called “Recovery Summer” was going to save the day.

Now, as we approach Labor Day, the results are in. Big Government has failed. Gross Domestic Product, which is the standard measure of economic growth in the country, was revised downward in the second quarter of the year from 2.4% to an estimated 1.6% as private sector employers are opting against expansion in favor of a cautious course.

It’s no wonder. Companies are staring in the face of a basic cost of business increases anticipated in 2011 due to the passage of the health care law.

Unemployment remains at 9.5 percent, with 45 percent of the unemployed having been out of work for 27 weeks or more. To put these numbers in real terms, the Bureau of Labor Statistics reports that 6.6 million Americans or the entire population of Indiana have been unemployed for 27 weeks or more.

Americans for Limited Government’s Adam Bitely has been tracking state by state “Recovery Summer” data releasing a daily report on a different state with California, Nevada, Colorado, Florida and Delaware being already covered. South Carolina and Ohio are slated to covered this week before Labor Day.

The startling results show the economy in virtual free fall over the past 18 months, as Obama, Pelosi and Reid have opted for propping up state and local government spending instead of engaging in private sector job creation measures.

More HERE

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ELSEWHERE

US stocks have worst August since 2001: "The US stock market ended its worst August since 2001 with meagre gains overnight after minutes from the latest Federal Reserve meeting showed officials' increasing concern about the economy. The Dow Jones Industrial Average was up 4.99 points (0.05 per cent) at 10,014.72 when markets settled, after teetering below the 10,000 point threshold in the final hours of trading. The broader S&P 500 index gained 0.41 point (0.04 per cent) at 1049.33, while the tech-rich Nasdaq composite index shed 5.94 points (0.28 per cent) to 2114.03, plunging below the flatline after making modest gains.".... But the week's most tensely-awaited economic data will be Friday's employment report, with most analysts forecasting non-farm payrolls to fall by 118,000 in August and unemployment to edge up to 9.6 per cent.

Official sexual assaults courtesy of Obama's TSA: "US officials are using "invasive and aggressive" searches for those who refuse to go through their controversial full body "naked" X-ray scanners. The “front-of-the-hand, slide-down technique” amounts to an indecent assault in any other context and shows an alarming disregard for privacy by the US Transportation Security Administration (TSA), civil libertarians say... While the TSA says it has received “very few” formal complaints about the new search techniques, Mr Vines called for a halt to the procedure until they could reveal why it was needed. “The actions of the US TSA would amount to indecent assault if performed by anyone else in the community," he said."

Modern-day “capital strike” : "Pundits have been speculating for months that the United States is undergoing a ‘capital strike’ of the sort that occurred during the Great Depression — that is, frightened and confused by government policies and the (often contradictory) directions in which they tug the economy, investors are sitting on their money rather than putting it into new and existing ventures that might generate jobs and prosperity. That speculation appears to be firming up into reality, as new reports indicate both disenchantment with the Big O among his well-heeled backers and (likely related) widespread unwillingness to invest in the U.S. economy.”

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Are conservatism and racism indistinguishable?

That question will no doubt amuse most readers here but that they are indistinguishable is the burden of a recent Leftist book -- called Conservatism and Racism, and Why in America They Are the Same (Part of the SUNY Series in African American Studies). From the blurb:

In this provocative, wide-ranging study, Robert C. Smith contends that ideological conservatism and racism are and always have been equivalent in the United States. In this carefully constructed and thoroughly documented philosophical, historical, and empirical inquiry, Smith analyzes conservative ideas from John Locke to William F. Buckley Jr., as well as the parallels between the rise and decline of the Civil Rights Movement in the 1950s and 1970s and the ascendancy of the conservative movement to national power in 1980. Using archival material from the Reagan library, the book includes detailed analysis of the Reagan presidency and race, focusing on affirmative action, the Voting Rights act, the Grove City case, welfare reform, South Africa policy, and the Martin Luther King Jr. holiday. Conservatism and Racism, and Why in America They are the Same goes beyond a focus on the right wing, concluding with an analysis of the enduring impact of the conservative movement and the Reagan presidency on liberalism, race, and the Democratic Party.

SOURCE

It seems to be mainly a belated bit of Reagan hatred and consists of the author's own angry interpretation of various historical events.

One wonders what he makes of the fact that Hitler was a socialist, that it was Democrat politicians (George Wallace, Orval Faubus etc.) who were the chief opponents of racial integration in the South, that the KKK was almost entirely composed of Democrats and that a greater percentage of Republicans than Democrats voted for the Civil Rights Act of 1964.

I might also note that I did some actual psychological research into the question during my academic career. I did a random population survey and found that racist attitudes were equally likely to be found among Leftist and Rightist voters in Australia. And Australia is about as similar to the USA as you can get.

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Control Freaks: 7 Ways Liberals Plan to Ruin Your Life

Terence P. Jeffrey is the author of Control Freaks: 7 Ways Liberals Plan to Ruin Your Life. The former campaign manager for Pat Buchanan’s 1996 presidential campaign now writes a column for Creators Syndicate and serves as editor-in-chief of CNSNews.com and editor at large of Human Events. Excerpts from an interview with him below

* What is the problem with the Fairness Doctrine and why are many liberals pushing it?

The opaque FCC ruling that became known as the “Fairness Doctrine” technically told broadcasters they had to air multiple sides of any controversial issue discussed on their air. The FCC imposed it in the 1940s, directly contradicting the intentions of Congress, which created the FCC to regulate the technical aspects of radio while denying it the power to censor radio speech. In practical terms, the Fairness Doctrine inhibited the development of programs like those of Rush Limbaugh, Sean Hannity and Mark Levin. In the 1980s, an FCC dominated by Reagan appointees repealed the Fairness Doctrine. That is when the modern era of political talk radio began.

Liberal politicians used to being coddled by the liberal establishment would like to shut up Limbaugh, Hannity, Levin — and others. That is why, for example, Speaker Nancy Pelosi has said she supports re-imposing the Fairness Doctrine. Fortunately, she has never had the votes to do it legislatively. However, that does not mean an Obama-dominated FCC won’t find some new regulatory means to strike back at conservative talk radio — perhaps by forcing conservative broadcast licensees to surrender their licenses to new owners who will broadcast the type of speech the liberals like.

* Tell me about how liberals want to control how many children Americans have?

During his 2009 Senate confirmation hearing to become director of the White House Office of Science and Technology Policy, John P. Holdren was asked, “What would your number for the right population in the U.S. be today?” He said: “I no longer think it’s productive, senator, to focus on the optimum population for the United States.”

Back in 1973, however, Holdren co-authored “Human Ecology: Problems and Solutions” with Paul and Anne Ehrlich. In “Human Ecology,” Holdren and the Ehrlichs said: “Political pressure must be applied immediately to induce the United States government to assume its responsibility to halt the growth of the American population. Once growth is halted, the government should undertake to influence the birth rate so that the population is reduced to an optimum size and maintained there.” This conclusion was driven by their perception that increasing population was a threat to global ecology.

In a 1995 essay published by the World Bank, Holdren joined with Paul Ehrlich and Gretchen Daily of the Center for Conservation Biology in stating that one of the things they “know for certain” is: “No form of material growth (including population growth) other than asymptotic growth is sustainable.” Holdren, Ehrlich and Daily went on to say, “This is enough to say quite a lot about what needs to be faced up to eventually (a world of zero net physical growth), what should be done now (change unsustainable practices, reduce excessive material consumption, slow down population growth), and what the penalty will be for postponing attention to population limitation (lower well-being per person).”

Holdren, as he told the Senate at his confirmation hearing, may no longer believe it is “productive … to focus on the optimum population for the United States,” but committed environmentalists who accept the argument that increasing population is a threat to the planet may be more inclined to agree with his earlier statements.

* You write that liberals want to even get control over what books you read. How so?

The First Amendment says: “Congress shall make no law … abridging the freedom of speech, or of the press.” In “Control Freaks,” I point out that in the first round of oral arguments in the case of Citizens United v. FEC, the Obama administration argued that the Constitution allowed the government to ban a corporation from publishing a book that mentioned a candidate for federal office.

In the second round of oral arguments, then-Solicitor General Elena Kagan retreated from that declaration a little bit, but stood her ground in telling the court that the Obama administration did believe it could prohibit a corporation from publishing a pamphlet — or other media — that mentioned a candidate for federal office. In his concurring opinion in Citizens United v. FEC, Chief Justice John Roberts accurately said: “The government urges us in this case to uphold a direct prohibition on political speech.”

Fortunately, the court did not — by a 5-4 margin.

SOURCE

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Democrat thinking on the Iranian bomb

Excerpt from Caroline Glick in Israel

It is worth considering where "the Americans" stand on Iran as it declares itself a nuclear power and tests new, advanced weapons systems on a daily basis.

The answer to this question was provided in large part in an article in the National Interest by former Clinton administration National Security Council member Bruce Riedel. Titled, "If Israel Attacks," Riedel - who reportedly has close ties to the current administration - asserts that an Israeli military strike against Iran will be a disaster for the US. In his view, the US is better served by allowing Iran to become a nuclear power than by supporting an Israeli attack against Iran.

He writes, "The United States needs to send a clear red light to Israel. There's no option but to actively discourage an Israeli attack."

Riedel explains that to induce Israel to accept the unacceptable specter of a nuclear armed mullocracy, the US should pay it off. Riedel recommends plying Israel's leaders with F-22 Stealth bombers, nuclear submarines, a mutual defense treaty and perhaps even NATO membership.

Riedel's reason for deeming an Israeli strike unacceptable is his conviction that such an operation will be met by an Iranian counter-strike against US forces and interests in the Persian Gulf and Afghanistan. While there is no reason to doubt he is correct, Riedel studiously ignores the other certainty: A nuclear-armed Iran would threaten those same troops and interests far more.

Riedel would have us believe that the Iranian regime will be a rational nuclear actor. That's the regime that has outlawed music, stones women, and deploys terror proxies throughout the region and the world. That's the same regime whose "supreme leader" just published a fatwa claiming he has the same religious stature as Muhammad.

Riedel bases this view on the actions Iran took when it was weak.

Since Iran didn't place its American hostages on trial in 1980, it can be trusted with nuclear weapons in 2010. Since Iran didn't go to war against the US in 1988 during the Kuwaiti tanker crisis, Mahmoud Ahmadinejad can be trusted with nuclear bombs in 2010. And so on and so forth.

Moreover, Riedel ignores what any casual newspaper reader now recognizes: Iran's nuclear weapons program has spurred a regional nuclear arms race. Riedel imagines a bipolar nuclear Middle East, with Israel on the one side and Iran on the other. He fails to notice that already today Saudi Arabia, the United Arab Emirates, Kuwait, Jordan, Egypt, Syria, Lebanon, Sudan and Turkey have all initiated nuclear programs.

And if Iran is allowed to go nuclear, these countries will beat a path to any number of nuclear bomb stores.

Some argue that a multipolar nuclear Middle East will adhere to the rules of mutual assured destruction. Assuming this is true, the fact remains that the violent Iranian response to an Israeli strike against its nuclear installations will look like a minor skirmish in comparison to the conventional wars that will break out in a Middle East in which everyone has the bomb.

And in truth, there is no reason to believe that a Middle East in which everyone has nuclear weapons is a Middle East that adheres to the rules of MAD. A recent Zogby/University of Maryland poll of Arab public opinion taken for the Brookings Institute in US-allied Arab states Egypt, Lebanon, Morocco, Saudi Arabia and the UAE shows that the Arab world is populated by jihadists.

As Herb London from the Hudson Institute pointed out in an analysis of the poll, nearly 70 percent of those polled said the leader they most admire is either a jihadist or a supporter of jihad.

The most popular leaders were Turkish Prime Minister Recep Erdogan, Venezuelan President Hugo Chavez, Ahmadinejad, Hizbullah chieftain Hassan Nasrallah, Syrian President Bashar Assad and al-Qaida leader Osama bin Laden.

So if popular revolutions bring down any of the teetering despotic regimes now occupying the seats of power in the Arab world, they will likely be replaced by jihadists. Moreover, since an Iranian nuclear bomb would empower the most radical, destabilizing forces in pan-Arab society, the likelihood that a despot would resort to a nuclear strike on a Western or Israeli target in order to stay in power would similarly rise.

All of this should not be beyond the grasp of an experienced strategic thinker like Riedel. And yet, obviously, it is. Moreover, as an alumnus of the Clinton administration, Riedel's positions in general are more realistic than those of the Obama administration. As Israeli officials acknowledge, the Obama administration is only now coming to terms with the fact that its engagement policy towards Iran has failed.

Moreover, throughout the US government, the White House is the most stubborn defender of the notion that the Iranian nuclear threat is not as serious a threat as the absence of a Palestinian state. That is, President Barack Obama himself is the most strident advocate of a US Middle East policy that ignores all the dangers the US faces in the region and turns American guns against the only country that doesn't threaten any US interest.

More HERE

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ELSEWHERE

'Israel ready to destroy LAF in 4 hours': "The US warned Lebanon that if it did not prevent any recurrence of the border-fire incident that occurred earlier this month, the IDF would destroy the Lebanese Armed Forces within four hours, Israel Radio cited a report by Lebanese newspaper A-Liwaa on Friday. According to the report, Frederick Hoff, assistant to US Middle East Peace Envoy George Mitchell, told Lebanese Army chief of staff Jean Kahwaji that Israel was ready to implement a plan to destroy within four hours all Lebanese military infrastructure, including army bases and offices, should a similar confrontation occur in the future."

Asset forfeiture: Big government turns cops into robbers: "The ‘civil asset forfeiture’ laws are inherently corrupt. They empower law enforcement officers to take and keep your property, even if they haven’t charged you with a crime. It gets worse. It’s your property that’s actually charged with a crime, and your property is considered guilty until proven innocent. This makes it virtually impossible for you to regain your possessions once they’re seized. But it gets even worse …”

Capital gains taxes: "The current capital gains tax rate of 15 percent is set to increase substantially at the end of the year as the 2001 and 2003 tax cuts sunset. The current rate is lower than rates in only nine of the 25 major economies in the world, according to a report by Ernst & Young. If the capital gains tax rate is allowed to increase from 15 to 20 percent, the United States will have a lower tax than only six of those countries. This 33 percent tax hike will further hurt the competitiveness of the U.S. economy and discourage domestic investment.”

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Psychologists preaching feminism again

I had a bit to do with this in my own research career. I found huge holes in the feminism-supporting "research" of my fellow psychologists at the time. So the latest bit of nonsense does not surprise me. It says that feminized boys are psychologically healthier, just as lots of other psychologists repeatedly claim (by ignoring a lot of evidence) that leftists are psychologically healthier.

The report below has not yet passed peer review and been published in an academic journal so is a bit difficult to evaluate but it clearly depends on a questionnaire called the Children's Depression Inventory, and they almost certainly used it inappropriately. Note here for instance, that it should not be used alone as a diagnostic tool. It is too weakly predictive for that. It is supposed to be used only in conjunction with a diagnostic interview. There is no mention of such a precaution below.

Additionally, a standard warning with the test is that is is very open to the respondents "faking good" yet there is no mention below of that being controlled for or examined in any way. Use of a Lie scale might have been considered, for instance.

And since teaching is so feminized these days, more feminine boys are probably more aware of teacher expectations and are therefore both better at faking good and more motivated to do it. So their "healthier" scores could well be simple fakery.

The findings below are then readily explained as the product of sloppy and biased research rather than reflecting anything real

Being a mama's boy, new research suggests, may be good for your mental health. That, at least, is the conclusion of a study presented at the annual meeting of the American Psychological Association by Carlos Santos, a professor at Arizona State University's School of Social and Family Dynamics.

Santos recently conducted a study that followed 426 boys through middle school to investigate the extent to which the boys favor stereotypically male qualities such as emotional stoicism and physical toughness over stereotypically feminine qualities such as emotional openness and communication, and whether that has any influence on their mental well-being. His main finding was that the further along the boys got in their adolescence, the more they tended to embrace hypermasculine stereotypes. But boys who remained close to their mothers did not act as tough and were more emotionally available. Closeness to fathers did not have the same effect, his research found.

Using a mental-health measure called the Children's Depression Inventory, he also found that boys who shunned masculine stereotypes and remained more emotionally available had, on average, better rates of mental health through middle school. "If you look at the effect size of my findings, mother support and closeness was the most predictive of boys' ability to resist [hypermasculine] stereotypes and therefore predictive of better mental health," Santos says. He adds that his research did not examine why a close mother-son relationship differed in its effect from a close father-son bond, but he suspects that fathers use stereotypically male behaviors to guide their sons into adulthood. "It could be, men see close relationships with their sons as an opportunity to reinforce traditional gender roles," he says. (See a story on mothers who opt for breast milk, not breast-feeding.)

More HERE

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Alternative history

I am something of an alternative history buff. Alternative history features quite a lot in Sci Fi and I used to read a lot of Sci Fi once so maybe that is why.

It seems to me that there were two great turning points in the 20th century which would have left us with a very different world today if they had been decided differently.

The first is the distinctly odd decision of Britain to enter what became WWI in support of their old enemy: France. It led to a slaughter of Britain's young men to rival the American North/South War and what did it achieve? Had Britain stayed neutral, the outcome of the war would surely have been similar to the Franco Prussian war of the 1870s: A flag-waving German withdrawl with a few small bits of German-speaking France hacked off and returned to German rule -- and a resumption of Edwardinan calm by all.

OK. I know why Britain did not go down that road. They were rightly spooked by Tirpitz's Luxusflotte. And in the one big naval engagement of the war -- the battle of Jutland -- those fears were amply confirmed -- with admiral Scheer running rings around admiral Jellicoe.

The second big turning point was Hitler's decision to make himself Oberkommando des Heeres (army chief). If he had given that job to the man who most deserved it -- Von Manstein (the conqueror of France) -- Russia would have been conquered, no doubt about it (Von Manstein destroyed two Russian armies even AFTER the Stalingrad debacle). And what a different world that would have been! How different goes beyond even my alternative history imagination.

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The Market as a Redistributor of Wealth

One of the primary arguments employed by statists to justify the welfare state is the necessity to equalize incomes. The rich just get richer and richer, and the poor just get poorer and poorer, in a free-market economy, say the statists. To balance things out, they say, the state must take from the rich and give to the poor.

Nothing could be further from the truth. Actually, a free market is a tremendous engine for the redistribution of wealth, one in which the poor become rich and rich become poor.

In other words, you don’t need the state to confiscate and redistribute wealth through income taxes, estate taxes, or any other taxes. The market does a fine job in redistributing wealth.

In fact, the market is the most just vehicle for redistributing wealth because it’s based on voluntary choices, not the coercive action employed by the state. In the marketplace, consumers are ultimately sovereign. Through their buying decisions, they decide which businesses are going to stay in business and which ones are not. If a business fails to satisfy consumers, it will lose market share and possibly go out of business. New, upstart businesses have the opportunity to become wealthy by providing goods and services that consumers want.

By the same token, a rich person must make decisions as to how to manage his money. Nothing is guaranteed. If he makes the right choices, he keeps his wealth and even expands it. But if he makes the wrong choices, he stands to lose part of it or even all of it.

Consider, for example, the Wyly brothers of Dallas, Texas, who were the subject of a recent New York Times article.

The Wylys are billionaires. So, they’re rich, right? Well, yes, but it’s really not that simple because they actually were poor before they were rich. According to the Times, “Depression-era babies, they were raised in rural Louisiana by a well-educated mother and father who fell on hard times by failing to hedge a cotton crop. For a time, the family moved into a shack without electricity or plumbing.”

So, here were two poor brothers. But the state didn’t take money from the rich and give it to the Wyly brothers. Instead, these poor people became rich entirely through their own efforts by buying and selling businesses in the marketplace.

And there were no guarantees. In the 1970s, they lost almost $100 million of their and their shareholders’ money in the purchase of a company that went bad. As Sam Wyly put it, “It’s a game. You win some, you lose some. Some are sort of a tie.”

Or consider the case of Larry Dean, who became a multi-millionaire through a software company he founded in the 1970s, who was also recently featured in the New York Times.

Dean used $25 million of his money to build a 32,000 square feet, “Xanadu-like” mansion in Atlanta that included $17,500 leaded glass and mahogany double front doors.

Dean, however, has fallen on hard times. Now on his third divorce, he recently sold the house for $7 million, after having it on the market for 17 years. The Times stated “The estate sale brought down the curtain on a particular kind of spectacle, a rags-to-riches tale that somewhere along the way slipped into reverse and played itself out in the unforgiving glare of the real estate market.”

You don’t need the welfare state to redistribute wealth. The free market does that. Moreover, since the market is based on voluntary choices rather than coercion, it’s a better and more just method of deciding the allocation of wealth in a free society.

SOURCE

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ELSEWHERE

Google Maps Misplaces Lincoln Memorial: "A curious thing has been happening on Google Maps -- the Lincoln Memorial is being misplaced in favor of the Franklin D. Roosevelt Memorial, which is a good half a mile south of the more famous memorial. According to the Geographic Travels blog, this "misplacement" has been happening for about two days now. Typing "Lincoln Memorial" into the regular Google search bar brings up a number of listings related to the Lincoln Memorial, yet shows a map of the Franklin D. Roosevelt Memorial. Is this a Google Maps glitch, or could this have anything to do with the fact that conservative radio and TV host Glenn Beck is holding a controversial "non-political" rally at the Lincoln Memorial on Saturday?"

US birth rate hits new record low: "America’s birth rate was lower in 2009 than at any other time in the past century, the AP reports — and many experts feel that the economic downturn is to blame. In 2009, the total number of births across the country fell for the second year in a row — from 4,247,000 in 2008 to 4,136,000, according to provisional data released Friday by the National Center for Health Statistics.”

US bureaucrats wasted billions in rebuilding Iraq: "A $40 million prison sits in the desert north of Baghdad, empty. A $165 million children’s hospital goes unused in the south. A $100 million waste water treatment system in Fallujah has cost three times more than projected, yet sewage still runs through the streets. As the U.S. draws down in Iraq, it is leaving behind hundreds of abandoned or incomplete projects. More than $5 billion in American taxpayer funds has been wasted - more than 10 percent of the some $50 billion the U.S. has spent on reconstruction in Iraq, according to audits from a U.S. watchdog agency.”

$1.9 million in computers for kids missing in Iraq: "The U.S. military is demanding to know what happened to $1.9 million worth of computers purchased by American taxpayers and intended for Iraqi schoolchildren that have instead been auctioned off by Iraqi officials for less than $50,000, the military said Friday. The U.S. press release was a rare public admission by the military of the loss of American taxpayer money in Iraq and an equally rare criticism of Iraqi officials with whom the Americans are trying to partner as the military hands over more and more responsibility and withdraws troops from the country.”

More "war on drugs" madness: "In the space of a few hours, on bomb-clearing patrol near Balad, Iraq, US Army Corporal Eric Small and his unit were rocked by three separate roadside explosions. He sustained serious injuries to his head, back, neck, and hip. Small’s combat days were over. It was the summer of 2008, and Small spent 10 months convalescing in military hospitals. He came home to Massachusetts with two lasting wartime souvenirs: a Purple Heart medal and a painkiller addiction. But in a bitter irony for Small and his family, the same government that sent him to war balked for months before agreeing to pay for the treatment his doctors feel best addresses his drug addiction.”

Alaska’s Miller: Let state control its resources: "The federal government is driving the nation into bankruptcy, and Alaska’s resources should be turned out of federal hands to save the state and the nation, Alaska Republican Senate candidate Joe Miller said Sunday. ‘In this state, two thirds of it is owned by the federal government,’ Miller said. ‘The government is going bankrupt. … It’s our position that as the money is restricted, the lands are transferred.’ Miller was speaking on CBS’ Face the Nation.”

Most Americans just don’t get it: "It bothers me to no end that millions of Americans simply don’t get just how dangerous this current administration’s views are, especially about the nature of our basic rights. I suppose I should not be surprised, given the utterly perverted primary and secondary education most people receive now in their government run schools. After all, those very schools and everyone with a job in the system, depend upon the flat out rejection of the idea of our basic, natural rights spelled out in the Declaration of Independence.”

Government Insurance: Guaranteed to fail: "Few observers were shocked when the Federal Emergency Management Association (FEMA) asked for a nearly $20 billion bailout of its National Flood Insurance Program (NFIP). For years groups and individuals have warned that NFIP was underfunded and increasing its liability each year by not encouraging consumers to move or alter their homes in a way that would limit future losses.”

You call this a “recovery?”: "So this is the economic growth that by far the largest Keynesian stimulus in American history produces? President Obama’s $814 billion in stimulus, a more than $1.3 trillion annual deficit for the second year in a row, has produced what the administration has declared is the long awaited ‘Summer of Recovery.’ Last fall the economy grew at a reasonable 5 percent annual rate, though even that was not particularly fast for a ‘recovery.’ Yet, it has dropped since then: during January through March, the growth rate dropped to 3.7 percent and April through June, 1.6 percent. … Since April, the Bureau of Labor Statistics Household Survey has shown that 1.7 million Americans have left the labor force and simply given up looking for work. The total number of people employed has dropped by nearly half a million.”

There is a big new lot of postings by Chris Brand just up -- on his usual vastly "incorrect" themes of race, genes, IQ etc.

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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The last refuge of a liberal

Charles Krauthammer

Liberalism under siege is an ugly sight indeed. Just yesterday it was all hope and change and returning power to the people. But the people have proved so disappointing. Their recalcitrance has, in only 19 months, turned the predicted 40-year liberal ascendancy (James Carville) into a full retreat.

Ah, the people, the little people, the small-town people, the "bitter" people, as Barack Obama in an unguarded moment once memorably called them, clinging "to guns or religion or" -- this part is less remembered -- "antipathy toward people who aren't like them."

That's a polite way of saying: clinging to bigotry. And promiscuous charges of bigotry are precisely how our current rulers and their vast media auxiliary react to an obstreperous citizenry that insists on incorrect thinking.

-- Resistance to the vast expansion of government power, intrusiveness and debt, as represented by the Tea Party movement? Why, racist resentment toward a black president.

-- Disgust and alarm with the federal government's unwillingness to curb illegal immigration, as crystallized in the Arizona law? Nativism.

-- Opposition to the most radical redefinition of marriage in human history, as expressed in Proposition 8 in California? Homophobia.

-- Opposition to a 15-story Islamic center and mosque near Ground Zero? Islamophobia.

Now we know why the country has become "ungovernable," last year's excuse for the Democrats' failure of governance: Who can possibly govern a nation of racist, nativist, homophobic Islamophobes?

Note what connects these issues. In every one, liberals have lost the argument in the court of public opinion. Majorities -- often lopsided majorities -- oppose President Obama's social-democratic agenda (e.g., the stimulus, Obamacare), support the Arizona law, oppose gay marriage and reject a mosque near Ground Zero.
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What's a liberal to do? Pull out the bigotry charge, the trump that preempts debate and gives no credit to the seriousness and substance of the contrary argument. The most venerable of these trumps is, of course, the race card. When the Tea Party arose, a spontaneous, leaderless and perfectly natural (and traditionally American) reaction to the vast expansion of government intrinsic to the president's proudly proclaimed transformational agenda, the liberal commentariat cast it as a mob of angry white yahoos disguising their antipathy to a black president by cleverly speaking in economic terms.

Then came Arizona and S.B. 1070. It seems impossible for the left to believe that people of good will could hold that: (a) illegal immigration should be illegal, (b) the federal government should not hold border enforcement hostage to comprehensive reform, i.e., amnesty, (c) every country has the right to determine the composition of its immigrant population.

As for Proposition 8, is it so hard to see why people might believe that a single judge overturning the will of 7 million voters is an affront to democracy? And that seeing merit in retaining the structure of the most ancient and fundamental of all social institutions is something other than an alleged hatred of gays -- particularly since the opposite-gender requirement has characterized virtually every society in all the millennia until just a few years ago?

And now the mosque near Ground Zero. The intelligentsia is near unanimous that the only possible grounds for opposition is bigotry toward Muslims. This smug attribution of bigotry to two-thirds of the population hinges on the insistence on a complete lack of connection between Islam and radical Islam, a proposition that dovetails perfectly with the Obama administration's pretense that we are at war with nothing more than "violent extremists" of inscrutable motive and indiscernible belief. Those who reject this as both ridiculous and politically correct (an admitted redundancy) are declared Islamophobes, the ad hominem du jour.

It is a measure of the corruption of liberal thought and the collapse of its self-confidence that, finding itself so widely repudiated, it resorts reflexively to the cheapest race-baiting (in a colorful variety of forms). Indeed, how can one reason with a nation of pitchfork-wielding mobs brimming with "antipathy toward people who aren't like them" -- blacks, Hispanics, gays and Muslims -- a nation that is, as Michelle Obama once put it succinctly, "just downright mean"?

The Democrats are going to get beaten badly in November. Not just because the economy is ailing. And not just because Obama over-read his mandate in governing too far left. But because a comeuppance is due the arrogant elites whose undisguised contempt for the great unwashed prevents them from conceding a modicum of serious thought to those who dare oppose them.

SOURCE (See the original for links)

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Obama and his allies defame America to the world

In their hatred of the average American, they portray an exceptionally tolerant nation as being intolerant and bigoted

It took a Manhattan taxi driver called Ahmed Sharif to speak out for America, which is being vilified as bigoted and Islamophobic because of the controversy generated by opposition to the so-called "Ground Zero mosque".

The United States was his dream country, he enthused, and he loved New York City. "I feel like I belong here. This is the city actually [for] all colours, races, religion, everyone. We live here side by side peacefully."

Which was a pretty noble sentiment coming from a man whose throat had been slashed by a drunken, deranged passenger who had inquired whether he was a Muslim before pulling out a knife and shouting "Peace be upon you" in Arabic.

As the whole world knows, there is a furore raging over the proposed building of a 15-storey Islamic community centre, containing a mosque, two blocks from Ground Zero, site of the 9/11 terrorist attacks by al-Qaeda.

America's liberal elites have been falling over themselves to denounce their country and fellow citizens as anti-Muslim xenophobes who don't understand that it was not all followers of Islam who were responsible for the atrocities of 2001.

To want to debate such matters, however, is judged as beyond the pale. Mayor Michael Bloomberg of New York tried to shut down discussion by saying that opponents of Rauf's initiative "ought to be ashamed of themselves". Presumably, that includes Bangladeshi-born Sharif, who doesn't support the Park51 centre.

President Barack Obama said that the US constitution guarantees religious freedom (which no one disputes). The American mainstream media and commentariat has stridently and almost uniformly championed Rauf's cause. In doing so, they've happily trashed their fellow Americans, stating they're motivated only by intolerance.

In fact, most evidence points to the US being one of the most tolerant countries in the world. A poll from you won't see cited much because it doesn't fit the prevailing narrative was recently conducted by the Public Religion Research Institute.

It found that 76 per cent of Americans would support Muslims in their community building an Islamic centre or mosque provided they followed the same rules and regulations required of other religious groups. But the 9/11 site is seen as different. After the 9/11 attacks there was no anti-Muslim backlash in the US.

Obama's ill-judged intervention, and the shrill outrage of his allies in the intelligentsia, has damaged America's standing in the world by fuelling anti-American stereotypes.

Aides to General David Petraeus, commanding troops in Afghanistan, say he is livid about the portrayal of the US as a hotbed of anti-Muslim bigotry and fears it may undermine the war effort, which is based on partnership with an Islamic regime.

Many Americans are incensed by the way that legitimate protest and questioning of Obama's policies is routinely branded as racist or ignorant. They are tired of being told what to think and when to think it.

During the 2008 campaign, for instance, you were a bigot if you mentioned Obama's middle name or his Muslim background. Yet once he was elected, he went to Ankara and Cairo to proclaim that his full name was "Barack Hussein Obama".

Ahmed Sharif, a victim of real anti-Muslim bigotry, stated that the attack on him was an aberration and that America is a land of tolerance and opportunity. What a shame that Obama, despite his much-vaunted gift with words, appears unable to speak about such things with similar eloquence.

SOURCE

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Obama's Muslim roots are no delusion

The so-called “mainstream media” has spent the past week trying to determine how anywhere from one fifth to one quarter of the American people could conclude that President Obama is a Muslim. The commentary has almost universally condemned Americans as “ignorant,” “ill-informed,” “racist,” or “bigoted," asserting disdainfully that it's "obvious" that Obama is a Christian.

"Obvious?" What IS obvious is what the media has overlooked: themselves, President Obama, and Muslims.

Author, and proud Muslim, Asma Gull Hasan wrote in February 2009 Forbes Magazine that “since Election Day, I have been part of more and more conversations with Muslims in which it was either offhandedly agreed that Obama is Muslim or enthusiastically blurted out. In commenting on our new president, ‘I have to support my fellow Muslim brother,’ would slip out of my mouth before I had a chance to think twice.”

But the mainstream media is now mocking the increasing number of Americans who believe Obama is a Muslim. Well now that we shown that those Americans are in agreement with these Muslims, does this make the Muslims bigoted or the media? ...

Obama's actions have led many Americans to conclude that he must be Muslim. Who can blame them? Not only did he declare that America was no longer a Christian nation, but he also claimed that America is the world's largest Muslim nation. He supports the Ground Zero Mosque, and he is on record saying he "will stand with them" whenever they face attack. Significantly, he refuses to acknowledge that radical Islam has declared war against us.

Despite all the noise, diversion, and debate, we remain steadfast in our opinion: Obama may not be a Muslim...but he sure as communion couldn't be a true Christian; otherwise, the mainstream media and other Democrats would despise him.

More HERE

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Little-known fact: Obama's failed stimulus program cost more than the Iraq war

Expect to hear a lot about how much the Iraq war cost in the days ahead from Democrats worried about voter wrath against their unprecedented spending excesses.

The meme is simple: The economy is in a shambles because of Bush's economic policies and his war in Iraq. As American Thinker's Randall Hoven points out, that's the message being peddled by lefties as diverse as former Clinton political strategist James Carville, economist Joseph Stiglitz, and The Nation's Washington editor, Christopher Hayes.

The key point in the mantra is an alleged $3 trillion cost for the war. Well, it was expensive to be sure, in both blood and treasure, but, as Hoven notes, the CBO puts the total cost at $709 billion. To put that figure in the proper context of overall spending since the war began in 2003, Hoven provides this handy CBO chart showing the portion of the annual deficit attributable to the conflict:



But there is much more to be said of this data and Hoven does an admirable job of summarizing the highlights of such an analysis:

* Obama's stimulus, passed in his first month in office, will cost more than the entire Iraq War -- more than $100 billion (15%) more.

* Just the first two years of Obama's stimulus cost more than the entire cost of the Iraq War under President Bush, or six years of that war.

* Iraq War spending accounted for just 3.2% of all federal spending while it lasted.

* Iraq War spending was not even one quarter of what we spent on Medicare in the same time frame.

* Iraq War spending was not even 15% of the total deficit spending in that time frame. The cumulative deficit, 2003-2010, would have been four-point-something trillion dollars with or without the Iraq War.

* The Iraq War accounts for less than 8% of the federal debt held by the public at the end of 2010 ($9.031 trillion).

* During Bush's Iraq years, 2003-2008, the federal government spent more on education that it did on the Iraq War. (State and local governments spent about ten times more.)

Just some handy facts to recall during coming weeks as Obama and his congressional Democratic buddies get more desperate to put the blame for their spending policies on Bush and the war in Iraq. For more from Hoven, go here.

SOURCE

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ELSEWHERE

It’s official: Obama has given amnesty to all illegals in the USA — unless they have committed serious crimes. So much for a President’s duty to enforce the law. This one makes his own laws up. There’s plenty of money for Wall St. banks but no money for law enforcement, apparently. See today's posts on IMMIGRATION WATCH,

Why is Obama Letting Non-Citizens Get Away with Voting?: "FOX News is reporting that DHS was informed by the county elections administration in Putnam County, Tennessee, about an immigrant in the U.S. on a work visa who registered and voted in the 2004 election. This immigrant has now applied to become a citizen. The only interest that DHS seemed to have in this information from Putnam County was asking the immigrant to submit evidence that he has been removed from the voter rolls. The letter also asks the immigrant, in an amazing example of bureaucratic incompetence, to explain when he “discovered” that he was “not a United States Citizen.”

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Krugman blows the whistle on Obanomics

Even Krugman can see that there is no recovery in sight. See below. Obama has lost one of his biggest cheerleaders. Mind you, Krugman's own ideas about what to do are just more and more big government. He still hasn't figured out that it is business that creates jobs and that it is pro-business policies that are therefore needed

What will Ben Bernanke, the Fed chairman, say in his big speech Friday in Jackson Hole, Wyo.? Will he hint at new steps to boost the economy? Stay tuned.

But we can safely predict what he and other officials will say about where we are right now: that the economy is continuing to recover, albeit more slowly than they would like. Unfortunately, that’s not true: this isn’t a recovery, in any sense that matters. And policy makers should be doing everything they can to change that fact.

The small sliver of truth in claims of continuing recovery is the fact that G.D.P. is still rising: we’re not in a classic recession, in which everything goes down. But so what?

The important question is whether growth is fast enough to bring down sky-high unemployment. We need about 2.5 percent growth just to keep unemployment from rising, and much faster growth to bring it significantly down. Yet growth is currently running somewhere between 1 and 2 percent, with a good chance that it will slow even further in the months ahead. Will the economy actually enter a double dip, with G.D.P. shrinking? Who cares? If unemployment rises for the rest of this year, which seems likely, it won’t matter whether the G.D.P. numbers are slightly positive or slightly negative.

All of this is obvious. Yet policy makers are in denial.

After its last monetary policy meeting, the Fed released a statement declaring that it “anticipates a gradual return to higher levels of resource utilization” — Fedspeak for falling unemployment. Nothing in the data supports that kind of optimism. Meanwhile, Tim Geithner, the Treasury secretary, says that “we’re on the road to recovery.” No, we aren’t.

Why are people who know better sugar-coating economic reality? The answer, I’m sorry to say, is that it’s all about evading responsibility.

In the case of the Fed, admitting that the economy isn’t recovering would put the institution under pressure to do more. And so far, at least, the Fed seems more afraid of the possible loss of face if it tries to help the economy and fails than it is of the costs to the American people if it does nothing, and settles for a recovery that isn’t.

More HERE

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Snapshot of economy about to get a lot bleaker

The government is about to confirm what many people have felt for some time: The economy barely has a pulse. The Commerce Department on Friday will revise its estimate for economic growth in the April-to-June period and Wall Street economists forecast it will be cut almost in half, to a 1.4 percent annual rate from 2.4 percent.

That's a sharp slowdown from the first quarter, when the economy grew at a 3.7 percent annual rate, and economists say it's a taste of the weakness to come. The current quarter isn't expected to be much better, with many economists forecasting growth of only 1.7 percent.

Such slow growth won't feel much like an economic recovery and won't lead to much hiring. The unemployment rate, now at 9.5 percent, could even rise by the end of the year. "The economy is going to limp along for the next few months," said Gus Faucher, an economist at Moody's Analytics. There's even a one in three chance it could slip back into recession, he said.

Many temporary factors that boosted the economy earlier this year are fading. Companies built up their inventories after cutting them sharply in the recession to match slower sales. The increase provided a boost to manufacturers, but now many companies' stockpiles are in line with sales and don't need to grow as much.

In addition, the impact of the government's $862 billion fiscal stimulus program is lessening. That leaves the private sector to pick up the slack. But businesses are cutting back on their spending on machines, computers and software, according to a government report earlier this week. And the housing sector is slumping again after a popular home buyer's tax credit expired in April.

More HERE

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How creative destruction works (and is working in Las Vegas)

Creative destruction is an essential part of the free market. Economist Joseph A. Schumpeter coined the term in "Capitalism, Socialism and Democracy."

Capitalism, then, is by nature a form or method of economic change and not only never is but never can be stationary. ...

As we have seen in the preceding chapter, the contents of the laborer's budget, say from 1760 to 1940, did not simply grow on unchanging lines but they underwent a process of qualitative change. Similarly, the history of the productive apparatus of a typical farm, from the beginnings of the rationalization of crop rotation, plowing and fattening to the mechanized thing of today–linking up with elevators and railroads–is a history of revolutions. So is the history of the productive apparatus of the iron and steel industry from the charcoal furnace to our own type of furnace, or the history of the apparatus of power production from the overshot water wheel to the modern power plant, or the history of transportation from the mailcoach to the airplane. The opening up of new markets, foreign or domestic, and the organizational development from the craft shop and factory to such concerns as U.S. Steel illustrate the same process of industrial mutation–if I may use that biological term–that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism. It is what capitalism consists in and what every capitalist concern has got to live in.

In my own words, "creative destruction" means this: Because there are limited resources in the world (scarcity), in order for there to be innovations and improvements there must also be a destruction and redistribution (through private decisions) of the scarce resources (raw materials and employees, etc.) that were being consumed by less productive means.

This is why it's so important that bad businesses are allowed to fail and lose money (as happens naturally in the marketplace outside of government interference). If bad businesses aren't allowed to fail, the limited resources that they are using will be stuck in inefficient and unwanted businesses instead of becoming available for better uses (as determined by the individuals in the marketplace). And if the government doesn't allow bad businesses to fail, successful businesses and taxpayers will be forced to subsidize them — literally rewarding failure.

Anyway, that's a long way of saying that there's a great story today in the Las Vegas Sun about how the recession is creating new opportunities for businesses — creative destruction in action.

Even as many retailers and food establishments are struggling to outlast the recession, franchises and chains are entering the market or expanding their footholds.

Some are taking advantage of the sharp decline in rent, the availability of storefronts at high-traffic shopping centers and declining competition. ...

“We are doing this for the long term,” said Loren Kreiss, spokesman for San Diego-based Kreiss furnishings, which in July at Town Square opened its 14th U.S. store. “We see the benefits when others are shying away. It is an opportunity for us to get in the market. Our strategy is to double down where we see the growth.” ...

The recession does have its benefits: [Business owner Todd] Miller says his rent is about a third of what was charged several years ago.

Recessions are a normal part of the business cycle (especially, as F.A. Hayek and my colleague Geoffrey Lawrence have argued, since the Fed inflates the money supply) and must be allowed to run their course.

If recessions are a normal part of the business cycle, why has this one lasted so long? Because it hasn't been allowed to run its course. From bailouts, to the stimulus, to Government Motors, to propping up Fannie and Freddie, to imposing huge new health care mandates, to the looming expiration of the Bush tax cuts, the federal government has been trying to save failing businesses for the last two years — hindering the creative destruction of the market.

And it's failed miserably.

The government's been trying to prop up failing businesses, and this has led to a failing economy. Government needs to get out of the way. Bad businesses need to fail so that new businesses can attempt to use the scarce resources, which were previously tied up in the bad businesses, in more productive ways.

As Las Vegas shows, creative destruction works — if it's given a full chance.

SOURCE (See the original for links)

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GOP leader's Pro-Growth Message

It’s a bit too early for House Republican leader John Boehner to measure the drapes and pick out new wallpaper. But the Intrade pay-to-play prediction markets are now showing a 76 percent chance of a GOP House takeover in November, along with a 60 percent probability that Republicans will capture at least seven new Senate seats...

Well, Mr. Boehner’s speech was a very promising beginning to all this. Near the top he said, “Right now, America’s employers are afraid to invest in an economy stalled by ‘stimulus’ spending and hamstrung by uncertainty. The prospect of higher taxes, stricter rules, and more regulations has employers sitting on their hands.”

His first proposal to break that uncertainty? Boehner said, “President Obama should announce he will not carry out his plan to impose job-killing tax hikes on families and small businesses.” In other words, extend all the Bush tax cuts. To this end, Boehner quoted former President John F. Kennedy: “An economy constrained by high tax rates will never produce enough revenue to balance the budget, just as it will never create enough jobs.”

And Boehner was just getting started. He called for an Obama pledge to veto any lame-duck congressional actions that would damage the economy, including the union card-check bill and a national cap-and-trade energy tax.

He called for the repeal of Obamacare’s job-killing 1099 mandate that would require small-business paperwork to show any purchases of more than $600.

He slammed Obamacare in general, noting the creation of more than 160 boards, bureaucracies, programs, and commissions, and the 3,833 pages of new regulations already in place.

He called for an aggressive spending-reduction package that would rollback non-defense discretionary expenditures to 2008 levels, before the stimulus plan was put in place. He said he wants to end TARP and all TARP bailouts.

He bemoaned the fact that no one in the White House has any business experience, chiding Obama by saying, “We’ve tried 19 months of government-as-community-organizer. It hasn’t worked. Our fresh start needs to begin now.”

He called for a freeze on federal pay and hiring. He noted that, on average, federal employees now make more than double what private-sector workers take in.

He cited Wisconsin congressman Paul Ryan’s plan for $1.3 trillion in specific spending cuts. He called for strict budget caps. And he argued for pro-growth tax reform that would get rid of “the undergrowth of deductions, credits, and special carve-outs in order to bring simplicity and certainty, instead of transfer payments to the favored few.”

And he spotlighted the fiscal restraint of governors Bob McConnell of Virginia and Chris Christie of New Jersey, elected Republican officials who balanced their budgets by throttling spending instead of raising taxes.

Instead of playing it safe, it looks like Republicans intend to be aggressive in changing the statist, government-planning, socialist-lite agenda of President Obama, Majority Leader Harry Reid, and House Speaker Nancy Pelosi. It sounds like the new Republican party intends to end the ongoing war against private-capital investment, entrepreneurial rewards, free-market incentives, and private business that is plaguing the economy and sapping the strength of the recovery.

In a little over two months, the election will take place. In a little over four months, the 2003 tax cuts will expire. And in just a few weeks, congressional Republicans will presumably put more meat on the bones of their new platform. John Boehner’s Cleveland speech was a very encouraging beginning. Now let’s see if the Republican’s next step will truly provide some much needed optimism to the economy and body politic.

More HERE

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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The NYT stands truth on its head

See below. Dr Goebbels call home. The NYT has a propaganda job for you.

Republican insurgents from the far right did well in Tuesday’s primaries. What their campaigns lack in logic, compassion and sensible policy seems to be counterbalanced by a fiercely committed voter base that is nowhere to be seen on the Democratic side. …….

Much of the G.O.P’s fervid populist energy has been churned up by playing on some people’s fears of Hispanics and Muslims, by painting the president as a dangerous radical, by distorting the truth about the causes of the recession. Far too many Republican leaders have eagerly fed that destructive anger.

And where are the Democrats in all of this? Last time we checked, they were fleeing solid accomplishments on health care, financial reform and the economy. President Obama and his party have little time left to gin up enthusiasm and a lot more committed voters.

More HERE

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Reclaiming Rights: The never-ending struggle to go about your business without fear of government sanction

From "Reason" magazine:

Our cover story this month describes the historic and stunningly rapid restoration of the Second Amendment as a guarantee of an individual right that must be respected throughout the United States. As you luxuriate in that momentous victory of individuals over their governments, allow me to direct your attention to a tale that is microscopic by comparison: On page 43, in the midst of a long and remarkable exchange between reason’s finest and the Cleveland City Council, two different city councilors attempt to explain to TV funnyman and Reason Foundation trustee Drew Carey why the owner of a local car wash faced a four-month approval process to install a commercial sign on his own property.

Council President Martin J. Sweeney’s explanation was, alas, good enough for government work: “If you apply for a sign that’s within our regulation, it would take somewhere between three and five days. If it’s outside the regulations, it needs to be [no bigger than] four foot by eight foot, no more than two or three colors. If you want to go 10 by 10, and put it up a little bit higher, and have 10 colors on it, you have to get approval to go outside the variance,” Sweeney said. “The three to five days is if you stay within the regulations, if you agree with them. If you want to go outside, it’s six weeks to put it on the calendar and have it heard. And then all the other steps…because there has to be some type of structure.”

There has to be some type of structure. From this one default setting springs all manner of tyrannies, from the trivial to the profound.

Carey had the best comeback to this Office Space-meets-Kafka gibberish: “You should be able to put up whatever sign you want, man.” But it’s elected officials like Sweeney, from Bakersfield to Bangor, from the statehouses to Capitol Hill, who too often have the last laugh. Every day brings fresh reminders that we are not technically free to go about our business.

In August, Multnomah County health inspectors in Portland, Oregon, shut down a lemonade stand at an art fair because its 7-year-old proprietor failed to obtain the necessary food distribution license. Days earlier, a Quincy, Illinois, man was arrested via a sting operation (for a second time) for the crime of offering free rides home to inebriated bar patrons; the service conflicted with some new taxi cartel–influenced language in the relevant city ordinance. And all summer long, councilmen in recession-ravaged Los Angeles, who earn higher salaries than any municipal lawmakers in the country, threatened to crack down on one of the few interesting and growing business models left in L.A.—food trucks—despite the fact that the only people complaining about them are nonmobile restaurant owners who don’t like the competition.

On the federal level things get even worse. In July the Department of Labor unveiled new child labor regulations that make it a crime for 17-year-olds to clear brush (a classic summer job in timber-heavy states such as Oregon) or for 15-year-olds to wave signs on the roadside, which the last time I looked was about the only job teenagers could still get in Southern California. ObamaCare requires every single vending machine and restaurant chain with 20 or more outlets in the country to list calorie counts for its products, under threat of federal sanction.

The financial regulation bill enacted in July, like the health care law that preceded it, asserted vast new governmental powers over an industry’s operations while delegating to future rule makers the task of telling the industry exactly what is and is not now legal. As Associate Editor Peter Suderman wrote when the law was being passed, “For regulators in Washington, this is a He-Man moment: They get to lift thousands of pages of legislation above their heads and declare, ‘I have the power!’ The trouble seems to be figuring out what to do with that power once they have it.”

There are any number of unhappy consequences from this relentless public push into private activity, not least of which is, as Senior Editor Jacob Sullum explains on page 11 (“Bono vs. Buttman”), the inevitably arbitrary enforcement of vaguely written laws. People who don’t know if their day-to-day behavior will trigger criminal prosecution are not truly free. As the great civil liberties lawyer Harvey Silverglate observed in a 2009 book of the same name, Americans on average now commit “three felonies a day.” That means our basic liberty exists at the discretion of law enforcement. If cops or motivated government attorneys decide they don’t like you, life can soon become hell.

What’s perhaps more frightening than the existence of such an all-powerful enforcement apparatus is the argumentation supporting it even in the face of public outrage and ridicule. Car wash signs need four months of approval because there has to be some type of structure. Lemonade stands need to be forcibly shut down because, in the words of Portland City Commissioner Amanda Fritz, “The county has the responsibility to fairly enforce the rules on permits.” U.S. News & World Report columnist Mary Kate Cary, while pointing out that ObamaCare is “not fiscally responsible” and “creates a nearly trillion-dollar new entitlement program that doesn’t pay for itself,” nonetheless gushes that the new calorie count requirement “may change American diets.” Once you take it as a given that the government has an important say in what you do with your property or put in your body, a whole universe of appalling actions and apologia becomes possible.

It’s time to change the default setting. Every victory of a citizen over the government in the never-ending struggle to do as we please is worthy of a 21-gun salute, whether on the individual level, as in pornographer John Stagliano’s successful fight against federal obscenity charges, or on a group level, in the case of those who want to own handguns. The battles are usually uphill, as with the 21 states suing the federal government over ObamaCare’s abuse of the Commerce Clause (see “Rogue States,” page 44), but the liberation is exhilarating. We can all learn from the examples of those who fought back and won, such as the 7-year-old lemonade entrepreneur Julie Murphy, who was helped and encouraged at the art fair by a group of Portland anarchists and eventually won an official apology from Multnomah County.

But sometimes it feels like we’re losing a game of whack-a-mole. For every outrage reversed through bad publicity or expensive lawyering, there are untold dozens of quiet capitulations to a rampaging state. Think of all the government restrictions on what you can and can’t do with your own house, to say nothing of the taxes the government collects on it. At some point the burden of proof should shift to the government, which should have to persuasively explain why an industry needs to be managed from Washington or why an individual needs a license to act like a human being.

The U.S. is in an economic, fiscal, and public policy crisis with no end in sight. Indeed, it looks almost certain to get far worse. We can and will talk about what rights need to be reasserted, what programs need to be cut, what sectors of this American life need to be left the hell alone. But until we make a dent in the widespread notion that there always has to be some type of government structure or some taxpayer-financed watchdog to police every imaginable peaceable transaction, any contemplated fix to the mess we’re in will be temporary at best.

SOURCE

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"Moral Hazard" in Politics

Thomas Sowell

One of the things that makes it tough to figure out how much has to be charged for insurance is that people behave differently when they are insured from the way they behave when they are not insured.

In other words, if one person out of 10,000 has his car set on fire, and it costs an average of $10,000 to restore the car to its previous condition, then it might seem as if charging one dollar to all 10,000 people would be enough to cover the cost of paying $10,000 to the one person whose car that will need to be repaired. But the joker in this deal is that people whose cars are insured may not be as cautious as other people are about what kinds of neighborhoods they park their car in.

The same principle applies to government policies. When taxpayer-subsidized government insurance policies protect people against flood damage, more people are willing to live in places where there are greater dangers of flooding. Often these are luxury beach front homes with great views of the ocean. So what if they suffer flood damage once every decade or so, if Uncle Sam is picking up the tab for restoring everything?

Television reporter John Stossel has told how he got government insurance "dirt cheap" to insure a home only a hundred feet from the ocean. Eventually, the ocean moved in and did a lot of damage, but the taxpayer-subsidized insurance covered the costs of fixing it. Four years later, the ocean came in again, and this time it took out the whole house. But the taxpayer-subsidized government insurance paid to replace the whole house.

This was not a unique experience. More than 25,000 properties have received government flood insurance payments more than four times. Over a period of 28 years, more than 4,000 properties received government insurance payments exceeding the total value of the property. If you are located in a dangerous place, repeated damage can easily add up to more than the property is worth, especially if the property is damaged and then later wiped out completely, as John Stossel's ocean-front home was.

Although "moral hazard" is an insurance term, it applies to other government policies besides insurance. International studies show that people in countries with more generous and long-lasting unemployment compensation spend less time looking for jobs. In the United States, where unemployment compensation is less generous than in Western Europe, unemployed Americans spend more hours looking for work than do unemployed Europeans in countries with more generous unemployment compensation.

People change their behavior in other ways when the government pays with the taxpayers' money. After welfare became more readily available in the 1960s, unwed motherhood skyrocketed. The country is still paying the price for that-- of which the money is the least of it. Children raised by single mothers on welfare have far higher rates of crime, welfare and other social pathology.

San Francisco has been one of the most generous cities in the country when it comes to subsidizing the homeless. Should we be surprised that homelessness is a big problem in San Francisco?

Most people are not born homeless. They usually become homeless because of their own behavior, and the friends and family they alienate to the point that those who know them will not help them. People with mental problems may not be able to help their behavior, but the rest of them can.

We hear a lot of talk about "safety nets" from big-government liberals, who act as if there is a certain pre-destined amount of harm that people will suffer, so that it is just a question of the government helping those who are harmed. But we hear very little about "moral hazard" from big-government liberals. We all need safety nets. That is why we "save for a rainy day," instead of living it up to the limit of our income and beyond.

We also hear a lot of talk about "the uninsured," for whose benefit we are to drastically change the whole medical-care system. But income data show that many of those uninsured people have incomes from which they could easily afford insurance. But they can live it up instead, because the government has mandated that hospital emergency rooms treat everyone.

All of this is a large hazard to taxpayers. And it is not very moral.

SOURCE

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Obama lost and at sea

At the beginning of the year, retiring seven-term Rep. Marion Berry, D-Ark., recounted a conversation he had with the president. Obama's unrelenting push for health-care reform in the face of public opposition reminded Berry of the Clinton-era missteps that led to the Republican rout of the Democrats in 1994. "I began to preach last January that we had already seen this movie and we didn't want to see it again because we know how it comes out," Berry told a newspaper.

Convinced that his popularity was eternal, Obama responded by saying, yes, but there's a "big difference" between 1994 and 2010, and that big difference is "you've got me."

The funny thing is, Obama might have been right. Because things might be much worse for Democrats in 2010 than they were in 1994 -- and the big difference might well be Barack Obama.

In fairness, the biggest difference is probably the economy, which in political terms should be fitted for a pine box. Of course, Mr. Credibility, Joe Biden, says it's doing great, sounding a bit like the shopkeeper in the Monty Python "Dead Parrot sketch" who insists the bird's "just resting."

In 1994, when the Contract with America Congress took control, the jobless rate was 5.6 percent. Today it's 9.5 and may well climb higher. More than 18 percent of people who want full-time work can only find part-time jobs. Consumer confidence is falling again, housing sales recently hit a 15-year low, the stock market is off 11 percent since its April highs for the year.

The congressional generic ballot -- asking which party voters prefer -- is as bad for Democrats today as it was in 1994. Stu Rothenberg, editor of the Rothenberg Report -- not exactly an RNC direct-mail operation -- says Obama's approval rating (already below 50 percent) will likely rival Clinton's in November of 1994. Already, Democrats in tight races, including the Senate majority leader, are distancing themselves from the White House, and pretty much everyone has stopped trying to make lemonade out of the ObamaCare lemon.

Moreover, Obama has lost his connection with the American people. He's aloof without inspiring confidence. On issue after issue -- terrorism, immigration, the oil spill, the environment and the ground zero mosque -- he seems determined to craft his responses in a way that will annoy the most people possible.

SOURCE

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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

The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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