no third solution

Blogging about liberty, anarchy, economics and politics

Lotteries and Loose Slots

October 29th, 2007

Nanny-staters in Massachusetts are conspiring to put the kibosh on plans to bring casino gambling to the state, according to the Boston Herald.

The Reverend Jack Johnson of the Massachusetts Council of Churches says it’s “morally reprehensible” to raise revenue from those who can least afford it.

The reverend should focus his ire on the State of Massachusetts, among the other 49 – which raise a significant amount of money from the sale of lottery tickets. Lottery tickets, I might add, the odds of which are worse than many casino games, and the bulk of which are bought by the poorest class of society.

Or maybe he should start pointing fingers at the biggest thief of all — the federal government.

Because it is not indexed for inflation, by 2010 [the AMT] will entrap virtually every family making $75,000 and many that earn less…Predictably, the plan rests almost entirely on raising taxes for upper-income taxpayers. Just as predictably, Republicans dismissed it as class warfare.

But for those who don’t like the plan, we have one question: Where’s yours?

So, if the Republicans (among others, I might add) don’t like “class warfare,” our argument is invalid because we’re not proposing another, mildly different class war? Is it now necessary to propose class warfare in order to be taken seriously? In order to object to class warfare? Such is the state of democracy. This is what we want to export to the rest of the world. No wonder they fucking hate us.

Health Care Totalitarianism

October 25th, 2007

In health care communism news today, Congressman Dennis Kucinich wants to completely overhaul health care in the United States. And by “completely overhaul,” I really mean “expropriate.” He first creates a straw-man of a two-tiered system, clothed in a rights-based argument:

“Is health care a right or is it a privilege?” he said. “If it’s a right then it’s appropriate for the government to have a role. If it’s a privilege, then we’re left to the predations of the market – if you can’t pay for it, you’re out of luck.”

If health care is a “right” then one ought to be able to deduce it from natural rights. I submit that you cannot, and therefore, it is not. But let’s play the game: certainly if health care is a “right”, then so is “food,” without which, we wouldn’t be worrying about health care — because we’d all starve to death. But the “predations of the market” leave practically nobody in developed nations hungry. As for the lesser-developed countries, examine the agricultural politics of the developed countries, and you’ll find your hobgoblin. Kucinich falls into the trap of assuming that the system we’ve got, which is heavily bureaucratized, is anything close to resembling a free market in health care. It is not — from top to bottom, it is managed by bureaucrats and rent-seeking agencies like the AMA and big pharma; protected by licensure laws, lengthy approval processes, subtleties in the tax codes, etc. The system we have is currently broken, to be sure, but the solution is not “more system,” where every employee in the industry becomes a de facto public servant, and every citizen in the realm becomes that much further dependent upon the Government.

Left to his own devices, Kucinich would transform the bastardized system that we have at present, into a completely government run bureaucracy:

“Where there is a conversion of a for-profit institution to not-for-profit, there would be a market-value compensation,” he said. “You’re not going to have an expropriation here of resources.” He didn’t say how much that would cost, but said it would be funded with Treasury bonds [and higher taxes].

Ahh, command and control. These are the people who bring you the DMV. Public schools. FEMA. Crop subsidies. Inflation. And Kucinich wants them to take over the health care market. Ludwig von Mises long ago demonstrated the superiority of markets in the allocation of scarce goods and resources (namely: all of them) to a command and control “economy.” Absent market prices and signals, there is simply no way for a bureaucrat — benevolent or otherwise — to “play market.” Even if his allocations are “right,” there are no means by which the correctness thereof can be determined. Either goods, services, and resources when scarce will be rationed by the market via the price mechanism, or they’ll be rationed by bureaucracy and shortages. There is no third solution.

Make no mistakes here – where a transaction is not voluntarily agreed upon, there is no such thing as “market-value compensation.” There is only the full force of law backed by government guns. Kucinich’s idea, contrary to his misstatement, is nothing short of wholesale expropriation with a cherry on top.

Social Security: Get it While it’s Hot

October 15th, 2007

The alleged “first” baby-boomer applied for Social Security benefits on Monday, beginning the long, painful ride to the bottom, be it by increased taxes, reduced “benefits” or a combination thereof, to somehow breathe temporary life into the resusci-Annie doll that is the Social Security “trust fund.” Of course she is quite lucky to be at the top of the list, having paid into the system relatively little compared to the benefits she’ll receive if she lives for another 30 or 40 years – even another 10 years. This is a system that was implemented to remove the elderly from the workforce in order to make room for the young and falsify labor-force-participation statistics, at a time when these people could reasonably expect to live another 3 or 4 years. So it is no surprise that she’s taking the pie while it’s hot – god forbid she ever actually need it one day, it might not be there.

The incentive is merely to take what’s been promised to you. Of course, you were the one making the promise for which someone else had to pay, but let’s not get bogged down in semantics. Semantics like, well, it’s probably of no real significance to mention that this recipient, a certain Kathleen Casey-Kirschling, has retired to the Chesapeake Bay area of Maryland. Not a bad place to live, if your grandkids you can afford it. But despite the inevitable clusterfuck of socialism that will likely succeed what we know of as OASDI/SS, Casey Kirschling remains optimistic about the program’s future:

[She] said her generation won’t let Social Security fail.

“I think the baby boomers will want to get this fixed. They’re going to want to take care of their children and their grandchildren.”

With all due respect, your grandchildren should be taking care of you, not vice versa. If you want to take care of them, I commend you, and wish you luck in that endeavor. But your cheer-leading benevolence unfortunately depens upon reducing their future “benefits” and raising the taxes levied against their children. Probably the single greatest thing you could do to help your children, and your children’s children, ma’am, is to repeal that abomination of a safety net, which is in fact an enormous transfer payment from the young and relatively poor, to the old – who happen to be the wealthiest people who have ever lived.

Of course this is unlikely to ever happen, because rich old people vote, and they have a strong lobby. They’re also miserly curmudgeons, and they will continue to drink the social security kool-aid as long as someone else is filling the glass.

And as long as there is a 10% discount.

no third solution

Blogging about liberty, anarchy, economics and politics