There are no mistakes,
no coincidences.
All events are blessings
given to us to learn from.
Elisabeth Kübler-Ross
Founders' Quote of the Day
I think we have more machinery of government than is necessary, too many parasites living on the labor of the industries. - Thomas Jefferson
Milton Friedman and the Robin Hood Myth
Director's law states that the bulk of public programs are designed primarily to benefit the middle classes but are financed by taxes paid primarily by the upper and lower classes. The empirically derived law was first proposed by economist Aaron Director.
Did you ever wonder why both political parties pander to the middle class? Why the Democrats are always stealthily trying to extend poverty programs (e.g., SCHIP, Medicaid, etc.) into the middle class? Of course, these programs, particularly the Ponzi-like pay-go schemes of senior entitlements, are unsustainble; we have smaller generations of workers to support the Baby Boomer generation. The principal Dem argument against Paul Ryan's mild (too little, too late) reforms is that middle-class seniors in the future will have to pay more out of pocket. But I would argue that's because politicians have overpromised and underinvested and engaged in morally hazardous policy by encouraging citizens to depend on the government for funding their retirement. If we procrastinate on reforms, we'll eventually be forced to make more, not less serious austerity measures. The idea we can tax-the-rich our way out of decades of chronic underinvesting is strictly delusional. However, Friedman here is not really focusing on entitlements per se.
Nick Gillespie, Scouts and the Gay Policy Kerfuffle
Nick Gillespie, the Reason.com editor and one of the most visible libertarian personalities (I've embedded a few of his interview clips), has penned a very good column about his Boy Scout experience, but the key point is to explain his decision to exclude his own sons from Scouting because of policy restrictions against openly gay Scoutmasters or members.
As a former Scout, I'm disappointed with Gillespie's reaction. He doesn't allege that his own experience exposed him to so-called homophobic attitudes, and the bigger issue is the right of voluntary groups to assert their own policies, memberships, etc. Some local governments and philanthropies have sanctioned Boy Scout troops or organizations under special interest pressure. Several Christian churches sponsor troops and would have problems with organizations promoting what they regard as an unethical lifestyle.
Personally, I believe as a matter of principle membership should be discretionary with decision making at the local level. I don't like a worthy organization like the Boy Scouts of America should be the center of the culture wars over gay rights, atheism (the other controversial restriction), etc. We are talking about maybe 5% of the population. Unless there are moral issues like child abuse or pedophilia in one's personal background, I see adult volunteers as a win-win proposition.
As a former Scout, I don't recall ever having a discussion on sexuality in any Scout activity; we dealt with more mundane issues like trying to start a campfire after a downpour overnight. Given that Boy Scouts focus on positive virtues, almost any Scout I knew would treat different boys respectfully. Most of my family and friends have differences of opinions, and we learn to deal with these. The local Boy Scout troop has little influence on national policy, and similar policies were in place when Gillespie was in Scouts. I think Gillespie would be better served trying to reform the organization from within versus joining in the politically correct chorus.
Remembering Jefferson's First Inaugural Address
and the 16 Principles
It's hard to comprehend that the political party of Thomas Jefferson, whom championed the agrarian economy, objected to a strong central government, and cautioned against international meddling, today depends on a strong urban vote to carry states, subordinates state/local policy (e.g., the drug war) and has worked to expand on unsustainable foreign alliances....
About to enter, fellow-citizens, on the exercise of duties which comprehend everything dear and valuable to you, it is proper you should understand what I deem the essential principles of our Government, and consequently those which ought to shape its Administration. I will compress them within the narrowest compass they will bear, stating the general principle, but not all its limitations.
- Equal and exact justice to all men, of whatever state or persuasion, religious or political;
- peace, commerce, and honest friendship with all nations, entangling alliances with none;
- the support of the State governments in all their rights, as the most competent administrations for our domestic concerns and the surest bulwarks against antirepublican tendencies;
- the preservation of the General Government in its whole constitutional vigor, as the sheet anchor of our peace at home and safety abroad;
- a jealous care of the right of election by the people—a mild and safe corrective of abuses which are lopped by the sword of revolution where peaceable remedies are unprovided;
- absolute acquiescence in the decisions of the majority, the vital principle of republics, from which is no appeal but to force, the vital principle and immediate parent of despotism;
- a well-disciplined militia, our best reliance in peace and for the first moments of war till regulars may relieve them;
- the supremacy of the civil over the military authority;
- economy in the public expense, that labor may be lightly burthened;
- the honest payment of our debts and sacred preservation of the public faith;
- encouragement of agriculture, and of commerce as its handmaid;
- the diffusion of information and arraignment of all abuses at the bar of the public reason;
- freedom of religion;
- freedom of the press,
- and freedom of person under the protection of the habeas corpus,
- and trial by juries impartially selected.
Egypt Also Has Currency Woes
After briefly looking at the run on the Venezuelan bolivar in yesterday's post, a run on the Egyptian pound due to political uncertainty and other reasons has resulted in a drop of dollar reserves, not quite enough to finance three months of imports. The banks are rationing importer needs, and some importers are utilizing more expensive black market sources to fund transactions.
It's not just struggling third world countries fretting about debased currencies. We have seen the US Mint this year briefly suspend sales of silver Eagles (at 5 year highs) as metal inventories were depleted, likely as a fiat currency/inflation hedge for investors.
Musical Interlude: My Favorite Groups
The Supremes, "Back in My Arms Again"
