Archive for November 25, 2010

What Libertarians Ignore: 1

November 25, 2010 5 comments

Libertarians are a strange bunch and while a few may be idealists, most are not. Let me explain..

Limited government is one of the favorite causes of libertarians, based on the reasoning that all government is always evil, tyrannical and “steals from the productive”. I am not fan of governments, but also understand that the option of no government or counterbalance to the private sector does not yield a better result.

Let us take the example of a modern-day Galt. Assume that he discovers the next big thing and builds a very profitable business around it. What is there to stop such a person from using his money and power to destroy people who are trying to build the newer next big thing?

This is not a hypothetical scenario. There is a lot of history behind the various types of anti-monopoly laws found in almost every major industrialized country. It is private, not government, monopoly that is the biggest threat to innovation, progress and wealth generation.

You can choose to believe that people like the literary Galt are benevolent angels, but human experience and history suggests otherwise.


Technology Causes Price Deflation: Exhibit A

November 25, 2010 2 comments

While most people have some concept of technological progress causing price deflation, few appreciate that price deflation is often accompanied by massive increases in performance.

Here is an example-

Cannon PowerShot SX30 or SX30IS ($369.00 from Amazon)

Now watch what it can do.



Governance not Government is the Problem

November 25, 2010 3 comments

Many men think that all worldly ills can be solved by less or no government. I believe they are confusing government with governance.

A society with a large government can be much better than one with less government, IF the quality of governance is good.

West-European countries (with the exception of UK) and East-Asian countries such as Japan, Korea, Singapore and even China have very functional and effective governments. While those systems are often dismissed by Americans as sclerotic, objectively measurable reality suggests otherwise.

Would you rather live in a Moroccan ghetto in France or a ‘inner city area’ in the US? What do measures such as life expectancy, murder, levels of education and general dysfunction show?

Most multinational, large and medium size companies have levels of intrigue, dysfunction, nepotism and institutional sclerosis that make socialistic governments look dynamic. The sad reality is that the “private” sector is living and selling illusions of past glory based in a time where it actually did something useful. Today, most of the private sector is doing its best to destroy itself and make YOU pay the bill for their stupidity and subsequent clean up.

However the most important reason for the american lack of faith in government and inability for good governance is rooted in the real american dream- the wish to murder, rob and rape everyone else and become rich. I mean, it did work well for a few centuries.

That is not to say that high levels of government involvement cannot create problems, but is the mythical “free market” doing any better? What we now have is the worst of both worlds- a system in which business and governments collaborate to fuck over average people.