ECONOMICS: Consider “systematic externalisations of cost” by Gooferment

Thursday, February 23, 2017

http://ncc-1776.org/tle2017/tle910-20170219-03.html

Traditionalism and Free Trade: An Exercise in Libertarian Outreach 
by Sean Gabb sean@libertarian.co.uk
Special to L. Neil Smith’s The Libertarian Enterprise

*** begin quote ***

What is true of national distribution networks is also true at the level of international trade. British and then American control of the seas has made shipping safe from piracy. British and American control of the Middle East has externalised many of the costs of oil drilling and movement. British and American armed interventions stabilised less powerful countries for the sale of our industrial output, and then for the development of manufacturing industry in places where the local ruling classes could be bribed and assisted into making labour both cheap and docile.

These facts go far to explaining why Chinese apples undercut Kentish apples in Kent, and why it is worth concentrating the manufacture of virtually all electronic goods in a few coastal regions of China, and why most of the clothes we buy are put together in Turkish and Bangladeshi sweatshops. It goes far to explaining why, when I drive home every summer from the family trip to Slovakia, I share fabulously expensive motorways with lorries that pay a pittance per mile, and burn diesel at prices—even allowing for taxes—far below the real cost of extraction and transport, and that are carrying goods to places like Manchester and Leeds where once whole armies were employed in their manufacture.

In short, the manufacturing side of the globalisation that traditionalists denounce proceeds from a pattern of comparative advantage that makes sense only on the basis of systematic externalisations of cost.

*** end quote ***

I read this and was literally stunned.

He makes an excellent point that the USA Rust Belt was cause by Gooferment subsidies and interference in free trade. 

While no one likes pirates — except when Johnny Depp is one in the movies — the control of them to enable long distance free trade is a cost that should be absorbed in the competitive marketplace. When Gooferment steals wealth from the USA’s taxpayers to “protect freedom of navigation”, then they are subsidizing imports and exports.

Like the gas tax is impossible to “see” in the price of a can of beans, so to this “protection of sea traffic” is NOT reflect in the market price of imported goods.

That’s a STUNNING realization to me.

So to the Gooferment subsidization of ports, airports, and highways. You can’t see that in competitive purchase decision down at Walmart. If there was a “Made in America” TV, of course it would be at an absurd cost disadvantage because all the “costs” are not in the price tag. 

That’s the realization this article brought to me. 

Argh!

Another case of Gooferment causes the problem and then causes more problems “fixing” the original problem. 

Argh!

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ECONOMICS: Janet Yellen and the “FED” should go to the trash pile of history

Wednesday, February 1, 2017

https://dailyreckoning.com/91851-2/

POSTED JANUARY 25, 2017
Trump Missed His Biggest Chance to Drain the Swamp
BY DAVID STOCKMAN 

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Janet Yellen insists that she would serve out her full term (until January 2018) and has rather cheekily lectured Congress about the dangers of political interference with the central bank.

Oh, my.

Before December — after the election — the Fed spent the past year sitting hard on interest rates for no plausible reason whatsoever. The main reason was to perpetuate the stock market bubble and thereby ensure the election of Hillary Clinton and a perpetuation of the current Wall Street/Washington regime.
To his credit, Donald Trump called her out on this blatant political meddling during the campaign, calling it “shameful” and designed to keep the stock averages levitated through November 8th.

He was exactly right. Yet notwithstanding his shocking victory, Yellen has the temerity of a pot calling the kettle black. Her Keynesian-statist party has been rebuked by the American public, but the terminally grating school marm who occupies the big chair in the Eccles Building petulantly insists that her right to rule has not been diminished by an iota.

*** end quote ***

The Federal Reserve Bank is a misnomer. IT ain’t “federal”. It reserves nothing. And, it ain’t a “bank”. It is a private cartel of the elite banks run for their benefit and that of the entrenched politicians.

It’s designed to corrupt Americans and the world into accepting a unbacked fiat currency.

The benefit of a real gold standard is to restrict what the Gooferment can spend. Imagine if it couldn’t borrow and spend beyond what it could steal from the taxpayers. A lot less war and welfare spending, for sure.

Argh!

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ECONOMICS: The “invisible hand of the free market” makes life better for everyone

Tuesday, January 24, 2017

On Thursday, January 19, 2017 8:50 PM, I wrote:

http://www.usatoday.com/story/travel/columnist/hobica/2017/01/18/jet-lag-altitude-sickness-dehydration/96677564/

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In a study entitled “Effect of Aircraft-Cabin Altitude on Passenger Discomfort” in the New England Journal of Medicine, the authors write that people who “travel to terrestrial altitudes above 6,500 feet experience acute mountain sickness, a syndrome characterized by symptoms of headache, nausea, vomiting, anorexia, lassitude, and sleep disturbance.” The researchers call this “Acute Mountain Syndrome.” The ill effects are even more pronounced the older you are.

*** end quote ***

Laugh!

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Sharing with my Luddite friend this great and interesting news.

“Jet lag” is merely misdiagnosed “Acute Mountain Syndrome”!

Wow, what a finding.

The article says planes are being reengineered to eliminate this.

Great!

To which, he responds:

*** begin quote ***

Yeah, they will end jet lag because nobody will be able to afford to fly!

*** end quote ***

No, it’s the “invisible hand of the free market”. Improve or die. Serve your fellow man or starve. 
Look at commodes. At one time only the ULTRA ULTRA rich kings could have indoor plumbing. Now virtually everyone has it.

Same with cars. Clean water. Computers.

Only in Gooferment projects does the costs escalate and the results plummet.

When entrepreneurs risk their own money, progress happens. Because no one watches the store like the owner.

Economics 201.

Laugh!

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Seems so OBVIOUS to me, Sigh!

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GOVEROTRAGEOUS: I think the SF “building department” is useless

Wednesday, October 26, 2016

http://www.dailymail.co.uk/news/article-3865998/The-leaning-tower-San-Francisco-350-million-luxury-high-rise-Millennium-Tower-SINKING.html

The leaning tower of San Francisco: The $350 million luxury high-rise Millennium Tower is SINKING 

  • The Millennium Tower, in San Franciso, has already sunk 16 inches since it was completed seven years ago
  • The $350 million building has also begun to tilt –  and now has a six-inch lean at the top of the tower
  • Leaked documents show the city’s Department of Building Inspection and developer Millennium Partners were aware it was sinking faster than anticipated before it opened in late 2009 but didn’t make it public 
  • Engineers hired to assess the problem have said that it shows no immediate sign of stopping

By HANNAH PARRY FOR DAILYMAIL.COMPUBLISHED: 00:54 EST, 24 October 2016 | UPDATED: 03:35 EST, 24 October 2016

*** begin quote ***

Pamela Buttery noticed something peculiar six years ago while practicing golf putting in her 57th-floor apartment at the luxurious building. The ball kept veering to the same corner of her living room.

Those were the first signs for residents of the sleek, mirrored high-rise that something was wrong. 

‘What concerns me most is the tilting,’ says Buttery, 76, a retired real estate developer. ‘Is it safe to stay here? For how long?’

*** end quote ***

Wow, there’s a “engineering blunder” as Brother Austin Barry would say.

I assume that the lawsuits will begin immediately!

Feel sorry for anyone who bought one after it was discovered but before it became public knowledge.

Argh!

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ECONOMICS: Anyone still naïve about politicians and who they serve

Monday, October 17, 2016

http://www.breitbart.com/big-government/2016/10/15/exclusive-american-worker-forced-train-foreign-replacement-reveals-how-hillary-clinton-betrayed-him/

EXCLUSIVE — American Worker Forced to Train Foreign Replacement Reveals How Hillary Clinton Betrayed Him
by JULIA HAHN
15 Oct 2016
Washington D.C.

*** begin quote ***

As Emmons watched Clinton’s office rebuff his “desperate” pleas for help–choosing, instead, to stand with a foreign corporation at the direct expense of the American workers she was elected to represent–that was the moment, “my naïveté was over,” Emmons said. “That was when I realized exactly what this was: I realized it’s the government against the people.”

“As naïve as I was then, I now know that politicians like Hillary are not out to do what’s right for the people of America; they’re out to do what’s right for the people who donate money to them,” Emmons said.

*** and ***

The story of citizens like Mike Emmons and his colleagues has become an all-too-familiar one: American tech workers are gathered together for a meeting with their executives—in this case, by Siemens in Lake Mary, Florida, in 2002. The unsuspecting workers are then informed that, despite their stellar performance record and years of service to the company, they’re all being fired and replaced by predominantly foreign-born Indian workers. However, before they are to be officially let go, they’ll be forced to train their foreign replacements. If they refuse, the American workers will not receive their severance. Companies like Siemens, Disney, Southern California Edison, Xerox, Northeast Utilities, and countless others are able to do this through forming contracts with India-based outsourcing firms like Tata that import thousands of foreign workers into the country on L-1 and H-1B visas and use them to supplant American workers who had been working there previously.

*** end quote ***

All of us in the Information Technology field have seen this type of competition.

The H-1B visa program is supposed to be for “critical skills” not available in the American marketplace.

What a joke.

The politicians have been paid off by corrupt Crony Capitalists.

And, it’s Joe and Jane Sixpack that get screwed.

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ECONOMICS: CFC — Gooferment ekkynomics that keeps on giving

Saturday, October 15, 2016

http://ericpetersautos.com/2016/10/08/buy-steel-not-gold/

Buy Steel (Not Gold)
By eric – October 8, 2016

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First, it decreased supply via the infamous “Cash For Clunkers” program (a “clunker” being defined not by mechanical condition, incidentally, but by the car’s gas mileage numbers). The government paid people inflated sums of other people’s money (an estimated $3 billion) to turn in perfectly roadworthy used cars in for unwarranted, early destruction … in order to “stimulate” demand for new cars.

This was like burning down every third house in a neighborhood to create a “need” for new housing.

*** end quote ***

I like that “burn down every third house” as a short hand description.

Sorry, but how can these “RXes” possibly help the economy.

The USA would be so much better off if the Gooferment would take a long vacation!

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ECONOMICS: Four reasons for a dim employment forecast

Sunday, October 2, 2016

http://larrysummers.com/2016/09/26/men-without-work/

Men Without Work
09/26/2016
Over the weekend, the FT published my review of Nicholas Eberstadt’s important new book Men Without Work.  

*** begin quote ***

I think this is likely a substantial underestimate unless something is done for a number of reasons.  First everything we hear and see regarding technology suggests the rate of job destruction will pick up.  Think of the elimination of drivers, and of those who work behind cash registers.  Second, the gains in average education and health of the workforce over the last 50 years are unlikely to be repeated.  Third, to the extent that non-work is contagious, it is likely to grow exponentially rather than at a linear rate.  Fourth, declining marriage rates are likely to raise rates of labor force withdrawal given that non-work is much more common for unmarried than married men.

*** end quote ***

This is a really dismal view of what’s in store for the men of the future.

As well as for the uneducated, or those who can not generate value.

Sad. 

Everyone better be teaching their children to be entrepreneurial.

Argh!

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