Category Archives: Political philosophy

CHAVEZ IS ALSO STUPID

Hugo Chavez, the socialist leader of Venezuela is giving the world yet another example of how collectivism works. Under his leadership the Venezuelan Bolivar has been experiencing rapid depreciation. As of last month, April 2010, the rate of decline is at an annual rate of 32.9%.

His government has nationalized privately owned oil companies (sixty of them), metal companies, newspaper companies, universities, banks, food supermarkets, the communications industry and general merchandise retailers. The justification given in many cases was expressly to control inflation. The Venezuelan stores of a large French retailer were closed without notice because they raised their prices in response to inflation.

The government is running all these industries and inflation is running rampant. Nevertheless, Chavez reasons the problem must be elsewhere, in the private sector. He believes he has found the cause. Venezuela imports most of its food. Hugo, in his fractured English declares  “Venezuelan businessmen buy abroad, come here and ask for more than it really costs”. Abomination! If businessmen will not operate at a loss Chavez will take away their businesses and do it for them.

Please God, no profits !


Bob B

Bookmark and Share

THE TROUBLE WITH EUROPE

Excerpts from European Union: A coalition of irresponsibility by George Will as published in the Washington Post.

  1. By socializing the consequences of Greece’s misgovernment, Europe has become the world’s leading producer of a toxic product — moral hazard. The dishonesty and indiscipline of a nation with 2.6 percent of the eurozone’s economic product have moved nations with the other 97.4 percent — and the United States and the International Monetary Fund — to say, essentially: The consequences of such vices cannot be quarantined, so we are all hostages to one another and hence no nation will be allowed to sink beneath the weight of its recklessness.
  2. Recklessness will proliferate.
  3. [T]he European Union is neither a state nor sovereign enough to enforce its rules: No euro-zone nation is complying with the E.U. requirement that deficits not exceed 3 percent of gross domestic product.
  4. The European Union has a flag no one salutes, an anthem no one sings, a president no one can name, a parliament (in Strasbourg) no one other than its members wants to have power (which must subtract from the powers of national legislatures), a capital (Brussels) of coagulated bureaucracy no one admires or controls, a currency that presupposes what neither does nor should nor soon will exist (a European central government), and rules of fiscal behavior that no member has been penalized for ignoring.

There is nothing I dare add after the eloquence of George Will.

Bob B

PRESIDENTIAL COMMENCEMENT SPEECHES

There is really but one outline for commencement speeches, – Congratulations. You have worked hard. New challenges are ahead. But the world is your oyster, so go get ‘em tiger! Now and then a speaker ignores the outline, sometimes for better, sometimes otherwise. The two Obama’s gave commencement speeches as Presidents and First Ladies are wont to do. Neither one of them stuck to the outline. Both introduced elements of race.

Ladies first. Michelle chose to speak at The University of Arkansas, Pine Bluff, a historically black school. She extended her congratulations and spoke of the challenges ahead. Then she spoke of Martin Luther King’s fight for equality but did not mention his dream of a color blind nation. She spoke of her husband and how he had to overcome special adversity. She spoke of injustices and of marches and blood that was shed. She spoke of civil rights activist Dr. Dorothy Height, quoting her statement regarding black activism that “This is my life’s work. It is not a job.”

Martin Luther King’s dream was of a color blind America. Michelle’s message did not help to further the realization of that dream.

Barack chose to speak at Hampton University in Virginia, also a historically black school. He too spoke of Dr. Dorothy Height and how she was denied her dignity as a black woman. He noted the disparity in educational achievement between blacks and other racial groups in America, the implied cause being social injustice.

The periods of slavery and segregation should not be forgotten, and they will not be forgotten. That is why we celebrate Martin Luther King Day. However, I am concerned that our first family may be gently stoking the ashes of resentment that Dr. King worked so hard to bury.

Bob B

Bookmark and Share

CAMERON. BRITAIN AND OBAMA

Cameron the Conservative won the British elections. Gordon Brown, the Labour Party leader resigned after a little less than three years in office. The far right and the far left each garnered more votes than his more traditionally left Labour Party. Brown assumed full responsibility for the defeat. A gracious act by the Prime Minister, but it is not that simple.

Britain, like the rest of Europe, has gotten itself into quite a mess in recent years. The Labour Party has been in charge for the last 13 years. The electorate are holding them responsible. and they want change. A move to the right would be change. However, conservatism is unthinkable to a liberal believer so what are they to do? They move further to the left, feelings deepen and debate becomes more strident as the gap between the two basic ideologies widens.

Long, long ago, some wise man said, a camel is a race horse that was designed by a committee. Americans tend to view coalition governments in the same light. Sparks are going to fly.

Obama has been quick to invite Cameron the Conservative to the White House and has applauded the special relationship that has always existed between Great Britain and the United States. What’s up? This is a 180 degree reversal from recent behavior. Let us be thankful but wary as we wait to see what follows.

Bob B

Bookmark and Share

DOES AL SHARPTON READ RANDOM THOTS?

On May 3rd we wrote

[T]here are two visions of social justice. One is of equal treatment and equal opportunity. This vision is a bedrock of American belief, the reason the United States is seen as the Land of Opportunity. The result however, is unequal outcome because people are not equal in terms of ability and application. The second vision of social justice calls for equal status, equal outcome. To achieve equal status you must take from the top and give to the bottom. This is unequal treatment. [T]his is the Marxist vision of social justice.

On May 5th Al Sharpton said

We Won’t Have True Social Justice Until Everything Is ‘Equal in Everybody’s House’

No, the Reverend did not need to read Random Thots to come up with the idea that social justice requires private property to be re-distributed until all people have been brought to equal economic status. Marx was not the first to think of it either. It is born of envy and it was envy that led Cain to kill Abel.

Bob B

Bookmark and Share

UPDATE
I am unable to embed the video of Al Sharpton’s speach. It was given in Danbury, Connecticut and may be seen on Breitbart or Naked Emperor News.

ABOUT GREECE

A high ranking official in the Greek government invited my wife and me to dine with him, a highly principled man whom I know very well. He came to greet us at a private residence on a very crowded street in central Athens. Following some pleasant conversation we emerged to find the car standing on the busy sidewalk smack in front of the door. Once we were all comfortably seated in the car, the driver charged off the sidewalk, cut off all traffic and proceeded down the other side of the street as though on the way to the proverbial fire. No one protested.

My friend sensed my astonishment. He said I have tried to get him not to drive like that, but he says he must, because I am too important. It was an unmarked car so I asked why everyone gave way without protest. The people of Athens know a government car when they see one, he replied. The restaurant was Greek casual exclusive. For an added touch the US Ambassador paid us his respects while we were there. It was in the Old city, snuggled up against the mount upon which sits the Parthenon. It was a pedestrian only zone, but no matter, when we were done the car and driver were waiting right at the front door.

We were not surprised. I thought if privilege so soon becomes expected, is it any wonder that after a few years, privilege becomes seen as a right. Add that to the list of arguments for term limits.

I found Greece to be a fun place. It is a disorganized land where no one takes the details of law very seriously. Perhaps that is why it is a fun place. A one-way street sign simply indicates which way most of the traffic will be going. A No Parking sign means you may get a ticket but it does not mean you have to pay it.

That was all before the crisis. My host of a couple years ago is now a diplomat with the European Union and a mere observer of the Grecian scene The New York Times, with all its faults, is very good at covering things like this, but to paraphrase Ronald Reagan, one should “Trust the Times, but verify, especially if you have access to inside information”. So I called and asked an open question, “What are your comments”. The essence of his response was:

Too much spending, of course.

However, it goes beyond that. It would barely qualify as hyperbole to say the government has no computers. They literally do not know how many people are on the payroll. They are ill-equipped to enforce income tax compliance because they do not know who owes what. And everyone knows they don’t know.

Typically, a very high income earner declares something, partly because he wants to support society and partly because he knows he cannot get away with declaring nothing.

Unlike the United States where much employment is with large companies, in Greece 60 percent of workers are self-employed. If you need a plumber he has a price. If you need a receipt the price is 30% more. If you want to see a doctor you must bring something known as an “envelope”. There is nothing murky about all this, it’s just how it’s done.

It looks like the New York Times got it right. My friend is not of conservative persuasion. We rarely discuss American politics, but at the conclusion of the phone call he said “I see democracy is working very well in your country, unfortunately.”

Bob B

Bookmark and Share

GERMANY SAVES GREECE

Euro survives, this time. Dollar strengthens, for now.

The genesis of what is now the European Union was an economic agreement between six central European nations called the European Economic Community. The primary impetus was to discourage future wars between European nations. A common currency was not part of the original plan. From that simple plan it grew to what it was six months ago then declined to what it is today.

As it grew there was hope in much of the world that the € would replace the $ as the standard for international trade. Before Greece, call it 6 months BG, this looked like an imminent possibility. Bush ran our debt sky high and Obama has set us up for eventual bankruptcy. We have become dependant upon an adversary to support our debt and they were threatening to withdraw their support. Occasionally a tourist would report a refusal to accept the greenback in their travels. Then came Greece.

It had to happen. One can spend more than ones income and get away with it for a long time, a very long time if you are a nation and can raise taxes each time the next financial crunch occurs. But if spending is not controlled, the limit of what can be extracted from the people is eventually reached and that is when the fertilizer hits the circulator.

Germany has long been the economic strength of Europe and so it will remain for the foreseeable future. Greece has been what Greece is now for many generations and so it is likely to remain for the foreseeable future. As Walter Cronkite would put it, “It is the culture, stupid!” One cannot imagine a time when Greece would need to bail out Germany. Cultures do evolve, but evolution is a very long process. Random Thots recommends The Character of Nations by Angelo Codevilla for further insights on the subject.

We are always happy to rescue a neighbor in need due to no fault of his own, We will grumble, but still rescue a neighbor whose need was a predictable consequence of irresponsible self serving behavior, ,,,once. How many times will the nations of achievers be willing to bail out the nations of perpetual under achievement is yet to be determined.

Bob B

Bookmark and Share

AMERICAN FLAGS TAKEN DOWN IN HAITI

President Obama bans display of the American flag in Haiti.

We, the people of this great nation, have reason to be proud of the manner and the extent to which the United States responds when a natural disaster strikes anywhere in the world. Soldier and civilian volunteer join the task of providing rescue, food, shelter and clothing for the victims. We act selflessly, asking nothing in return. Along with the flags of other noble nations, the American flag flies in the midst of a tragic scene to say you are not alone. We care. We are here and we are here to help.

But in Haiti, Obama will have none of it. The relief goes on, but the flag must not fly, not even over our relief headquarters. You see, to Obama that flag does not stand for a nation that is a force for good in the world. To Obama the banner we reverently call our Stars and Stripes stands for slavery, injustice and overbearing dominance in the world. To Barack Obama our flag represents the America he has come forth to change. Flying our flag at the scene of good works offends him because it conflicts with his perception of what America is and always has been. For America to claim good works, in Obama’s mind is hypocrisy.

If you consider my opinion to be extreme, consider this. A mosaic is a picture formed of bits and pieces, no one of which has significance in and of itself. However, by taking bits from here and pieces from there a clear picture begins to emerge. Here are some pieces.

Obama wept in the pew. Obama is a sincere man. Upon listening to a sermon on the subject “The white man’s greed is responsible for a world in need” Obama says he was so moved that he dedicated his life to righting injustice in this world.

Thomas Sowell, in his book A Conflict of Visions, explains there are two visions of social justice. One is of equal treatment and equal opportunity. This vision is a bedrock of American belief, the reason the United States is seen as the Land of Opportunity. The result however, is unequal outcome because people are not equal in terms of ability and application. The second vision of social justice calls for equal status, equal outcome. To achieve equal status you must take from the top and give to the bottom. This is unequal treatment. Sowell does not so state, but it is obvious this is the Marxist vision of social justice. It is also Obama’s vision.

Obama refused to wear an American flag pin during his campaign until political expediency led to pragmatism trumping principle.

Obama has made it a practice to denigrate, or at least apologize for America in speech after speech given abroad.

America’s heritage is British. Obama insulted the Queen with a gift of a tape of his own speeches and has deliberately slighted the Prime Minister more than once. The bust of Winston Churchill was banished from the White House and sent back to England prematurely. He has snubbed our best friend and staunch ally. He has flatly stated there is no special relationship between Great Britain and the United States.

Michelle, in what Barack must have seen as a political gaffe, has told us she never in her life had any pride in America, until her husband won the nomination. Michelle is also on record for telling young students that “America is a mean country”. I know, Michelle is not Barack. With no context her comments would be but stray pieces that do not fit. Place them in the mosaic or leave them out, as you wish, the picture remains the same.

Obama launched his political career with a fundraiser from the home of Weathermen bombers Bernadette Dorn and Bill Ayers who sponsored the event. Ayers is pictured standing on the American flag laid in the dirt of an alley.

There is much more, to much to list here. Pieces are everywhere: “spread the wealth”, “superpower, like it or not”, a racist Boston policeman is invited for a beer, “some form of reparations would be in order”, favoring a Marxist Chavez acolyte over the people of Honduras, abuse of power in the forced transfer of assets from bondholders to the auto workers union, America is one of the largest Muslim countries in the world.

As long as this man remains President my prayer will not be God Bless America. It will be the plea God Help America.

Bob B

Bookmark and Share

CICERO SAID SO

“The Budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, assistance to foreign lands should be reduced lest the State become bankrupt. The people should … work and not depend on government for subsistence.”

Marcus Tullius Cicero in the year 106 BC.

So you see, some things just don’t change much over time, even a very long time. Surely Madison, Adams, Jefferson and that whole crowd understood this when they formulated the Constitution.

“It is a gloomy moment in the history of our country. Not in the lifetime of most men has there been so much grave and deep apprehension; never has the future seemed so incalculable as at this time. The domestic economic situation is in chaos. Our dollar is weak throughout the world. The political cauldron seethes and bubbles with uncertainty. Russia hangs, as usual, like a cloud, dark and silent, upon the horizon. It is a solemn moment. Of our troubles no man has seen the end.”

Harper’s Magazine  1847

Dare we Hope our beloved land will once again triumph over trouble as it did in the wake of Harper’s nineteenth century view? Or is Change changing our path to that once trod by Rome?

Bob B

Bookmark and Share

VAT FOR IDIOTS

The Value Added Tax is an insidious invention we are about to import from Europe. It is like a sales tax in that it is a tax on activity, not on income or profit. It is like a flat tax, or fair tax, in that it cannot be escaped. It is an inflationary tax because it will increase the price of all goods to which it is applied. It is also somewhat of a hidden tax. Let’s explore each of theses facts.

The European Union mandates a standard minimum rate for the VAT each member nation must charge. The standard rate is 15% with allowance for some exceptions. Europeans are the most heavily taxed people anywhere. Income tax rates are roughly comparable to ours; it is the VAT that makes the difference. France gets 50% of their tax revenues from the Value Added Tax.

The VAT is insidious because it is applied at the wholesale level where you do not see it. It is quietly built into the price of everything. It is not in your face the way a local sales tax is. Efforts to increase the rate, or the list of activities to which it is applied do not meet with the same opposition as do efforts to increase income tax rates. Income tax is personal, value added tax is seen as something someone else pays.

Because it is a tax on activity, not income or profits, the justification for it is more convoluted. The concept is that adding value increases wealth. If you buy some lumber for $500 and build a shed with it that’s worth $2,000 you are $1,500 wealthier. The VAT taxes this increase in wealth as though it were income. It is only applied at the business level so you are not assessed personally, but the lumber will cost you more.

The VAT cannot be avoided because it is an indirect tax. It is similar to gasoline in that federal and state taxes are built into the price. Everyone pays it. From members of the underground economy to Bill Gates, they all pay, and pay the same rate.

It is inflationary because it increases the cost to produce, and therefore the price, of a broad array of goods and services. In Europe it is assessed on everything from cell phones to restaurant meals.

It is somewhat hidden. The gasoline tax is again a good example. In most states the tax is right on the pump but do you know what it is in your state? Most of us only care about the price on the big sign we can read as we drive by.

The Value Added Tax should not be confused with the Flat Tax or the Fair Tax. There are similarities and differences, the most significant being the Flat and Fair taxes are replacements for the Income tax, the VAT is in addition to income tax.

Bob B

Bookmark and Share