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Community Organizers Owe Their Livelihood to Capitalism

August 28, 2009 Leave a comment


The community organizers’ struggle is one of class warfare. As Saul Alinsky wrote, “A People’s Organization is the banding together of large numbers of men and women to fight for those rights which insure a decent way of life…A People’s Organization is dedicated to an eternal war. It is a war against poverty, misery, delinquency, disease, injustice, hopelessness, despair, and unhappiness.”

Interestingly enough, the very system that defeats the conditions that Saul laments is capitalism. It has improved the lot of many, leading to higher living standards and a more moral economy than any to come before it. Yet it is this very philosophy that these groups decry – one which is also ironically their lifeblood.

As a WSJ editorial notes, ACORN is “a union-backed, multimillion-dollar outfit that uses intimidation and other tactics to push for higher minimum wage mandates and to trash Wal-Mart and other non-union companies…its organizers are best understood as shock troops for the AFL-CIO and even the Democratic Party.” Indeed, much of the steering committee for HCAN (Health Care for America NOW), a good proxy for the socialist movement is tied in one way or another to labor, labor which would not exist without capitalism.

Without capitalism (the antithesis of the socialism they relish), the jobs that it creates, the living standards it furnishes and the varying degrees of wealth that it naturally leads to, these comrades would have nothing to fight against.

Without capitalists to build businesses, there would be no jobs save for those provided by the state, and no labor unions. Living conditions would be miserable. The poorest would only dream of televisions, cars, cell phones and computers, not to mention cheap generic drugs, food, clothing and running water. FDR’s “Second Bill of Rights” would not have been conceived of because these so-called “rights” (if they had developed at all) would have been reserved solely for kings and queens, not middle class Americans.

The community organizers use the fruits of capitalism to fund themselves. Many of these groups are taxpayer-subsidized. Donors also consist of private charities and fat cats like George Soros. All government funds come out of the pocket of the taxpayer, who earns his income from his work, work attributable to the market. Others such as private foundations and “Soros-ites” use their own funds, again resulting from labor in the (nominally) free market to bankroll these radicals.

The socialist groups use instruments created by capitalism to propagandize. They use the computer to disseminate information (I grant that R&D for the internet was partially attributable to government, but practically all of the applications were created by the private sector), signs, t-shirts and other merchandise all produced by private enterprises to advertise and lastly books put to market by private publishers and sellers to spread their message.

Read “I, Pencil” and tell me that the tools the organizers use are attributable to anything other than the spontaneous order of capitalism.

The aforementioned groups all fight to kill capitalism, but without capitalism they would not have their natural enemy. Without capitalism they would not have a conception of what “decent” living standards were. Without capitalism they would not have jobs besides those provided by the state (which admittedly they might prefer), let alone their precious unions. Without capitalism they would not have the means to mass propagandize. Without capitalism these parasitic groups would perish. But instead they feast on the fruits of capitalism, drinking the sweet nectar of the productive members of society.

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Spending Is Not Stimulus President Obama

February 6, 2009 2 comments


Today amid cheers, President Obama showed his true colors when it comes to his plan to deal with the recession (soon to be a depression). Valiantly fighting off all takers on his stimulus, Mr. Obama exclaimed:

Then there’s the argument, well, this is full of pet projects. When was the last time that we saw a bill of this magnitude move out with no earmarks in it? Not one. (Applause.) And when you start asking, well, what is it exactly that is such a problem that you’re seeing, where’s all this waste and spending? Well, you know, you want to replace the federal fleet with hybrid cars. Well, why wouldn’t we want to do that? (Laughter.) That creates jobs for people who make those cars. It saves the federal government energy. It saves the taxpayers energy. (Applause.)

So then you get the argument, well, this is not a stimulus bill, this is a spending bill. What do you think a stimulus is? (Laughter and applause.) That’s the whole point. No, seriously. (Laughter.) That’s the point. (Applause.)

Now I understand that President Obama was speaking in front of a group of Democrats, trying to rally his comrades, but this type of message should outrage American citizens. Mr. Obama promised the people change, yet he makes the argument that since there are always earmarks in bills, the government should get a free pass for porking up its latest monstrosity. Apologies to the already suffering American people that have to pay for this.

When it comes to buying a new fleet of green cars, the true politician in Obama comes out, spinning this ridiculous confiscation of private money as job creation. If this creates jobs, why doesn’t the government buy every taxpayer a Prius? Why not throw in some solar panels for every taxpayer too?

Because this money has to come from somewhere of course. This is a textbook example of the broken window fallacy in action. Basically, Obama will be taking taxpayers’ money and transferring it to the auto sector. All of the taxpayers are going to be subsidizing one particular industry. One interest gains at the cost of all others. This is what American democracy has become. It is not about the public good; it is about the good of a specific set of interests.

As to Mr. Obama’s final point that spending bills and stimulus are synonymous, one has to wonder how much longer this country will be able to stay afloat. Can Mr. Obama explain how taking $800 billion or most likely more money out of the private sector, and using some of it for pork, some for income redistribution and the rest for “shovel-ready” projects is stimulative? Can Paul Krugman or Larry Summers point to a situation in which wealth taken from the hands of the people has ever been used more productively by the government?

Government spending has NEVER — not once pushed an economy out of a recession or depression. Even amongst those who acknowledge that the New Deal failed to bring us out of the Depression, most argue that it was only World War II that got the economy back rolling. Yet even this is false, another example of the broken window fallacy that somehow you can mobilize all resources under a command economy, and by allowing the government to channel them towards specific uses (in the case of war, towards bombs and fighter planes) leave yourself better off. As Robert Higgs shows, our productivity did not recover until after the war, when productive forces were released into the free market.

The government cannot plan our economy and allocate resources profitably. Let me repeat this: THE GOVERNMENT CANNOT PLAN OUR ECONOMY AND ALLOCATE RESOURCES PROFITABLY. Not in the Soviet Union, not in Nazi Germany, not in Cuba, not in the United States.

Even if I leave out the moral issue that people should have the right to choose how they use their money, productively or unproductively, and grant that somehow, some way, President Obama can spend the money as the people would, it is a proven fact that we are going to have to issue hundreds of billions of dollars in Treasuries to fund this. As George Melloan notes in the Wall Street Journal today, this will inevitably prove inflationary. Our friends in China and Japan, already strapped for cash given their own economic problems will not be able to subsidize our profligacy much longer. They might even sell some of their existing Treasury holdings to raise cash. As has been noted repeatedly, Ben Bernanke may have to come in and buy Treasuries issued by his own government. Quite a queer concept.

To carry out this plan, helicopter Ben will have to print up more dollars and thus we will see inflation in prices. You can also bet that with the collapse in demand for treasuries abroad, and the government’s inflationary actions, interest rates will rise for all of us. We will suffer from stagflation, and the government will have no way to pay for all of its entitlements without printing more money, generating more inflation and higher and higher interest rates. We will be crushed under our own debt.

While the proper solution to all of this would be to allow ourselves as a nation to deleverage, paying off our debts and liquidating the bad assets, and forcing the government to reduce its spending and cut taxes, instead the President and the congress are sealing our fate to depression. The above steps would be the true stimulus. What the President proposes is no stimulus. As the Wall Street Journal quips, “The spending portion of the stimulus, in short, isn’t really about the economy. It’s about promoting long-time Democratic policy goals, such as subsidizing health care for the middle class and promoting alternative energy. The “stimulus” is merely the mother of all political excuses to pack as much of this spending agenda as possible into a single bill when Mr. Obama is at his political zenith.”

One has to wonder if the reason Mr. Obama keeps telling us that things are going to get worse is intentional, a self-fulfilling prophecy. Perhaps he knows the true history of the Depression, that the more the government intervened the worse things got. He knows that this crisis will allow him to cement his place as President for at least eight years. As is the government’s wont, it will exploit any situation to gain more power.

Every single citizen must realize that in allowing our representatives to pass this bill, we are dooming our children and our children’s children to pay for our mistakes, sacrificing our property without just compensation and allowing our representatives to further imperil our economy. This is taxation without representation. This is immorality. This is the death knell of a once great nation.

On the Memory of Daniel Pearl

February 3, 2009 1 comment

This is a must-read article on the aftermath of the brutal murder of Daniel Pearl, from the WSJ.

For those who have died innocently at the hands of Islam, the times we are living in truly are soiling their memories. Mr. Pearl’s piece should serve as an example of the struggle that all lovers of liberty and humanity should take up against oppressors worldwide. His main argument that the media and academia have inverted morality and common sense in justifying terrorist attacks and specifically the brutal actions of Palestinians against the Israelis is absolutely correct.

Giving these people legitimacy is appalling and outrageous. Everyone needs to wake up and realize that the Muslim world (or at the very least its radical elements and supporters, of which even 10% would be incredibly dangerous), even through democratic means in Europe are fighting a crusade against all that we view as just and right in the west.

On the one hand, we have a people willing to blow themselves up for their cause; on the other, we have a people that are apologetic and conciliatory. Think about the difference in dedication to principles, and then you start to see the grave threat posed to our way of life.