John M. Keynes - The Man Behind the Mess

It's no secret I hate Keynesian economics. I've been bashing that stupid ideology here for a while. He reminds me of L. Ron Hubbard, the guy who founded the Church of Scientology. Neither of them intended for their ideologies to catch on and spread. To their luck (and our dismay), it did. One doesn't have to read too far into Keynes' writings to find some of the poor logic and argumentation. Today's Keynesian Konundrum: the Egyptian pyramid projects.

Keynes used the pyramids as an example of sound centralized economic planning, a benefit for all, and the way things ought to be. In his mind, the pharoah had massive building projects that employed hundres or thousands of people, thereby employing people, paying them, and these people in turn pay each other, and everything is hunky-dory, right?

Not really.

For one, the Egyptians were not that stupid, and much of the labor put into the building of the pyramids was derived from slave labor, which has very low overhead costs. But Keynes' idiotic pyramid analogy isn't fatal because of some bizarre historical fact. It fails economically (surprise!) too.

As Paul Cantor notes in the hyperlink above, one of the failures of the pyramid scheme (pun intended) is due to the fact that this only leads to massive debt accumulation on the part of the government. Why? Because a pyramid doesn't do anything for anyone in any significant, economic, or financial manner. The Egyptians pay out the labor force for a pyramid, but the pyramid doesn't bring back revenues, and the taxation the government places upon the workers is fractional compared to what is paid out. It's a lose-lose situation for the Egyptians.

And so now we have Barack Obama, lord and protector of American jobs touting the same rhetoric - wanting to "create jobs" where there were none; jobs which have no direct economic benefit once they're done. Oh sure, the people he employs will have jobs and pay taxes (because that's really what it's all about, right?), but the government will only sink deeper into debt for it. Slapping a few coats of paint on a federal building doesn't help much. In essense, government sponsored/endorsed make-to-work programs only drive up government debt. Why? Because the output produced by the laborer doesn't generate financial benefit for his/her employer, Uncle Sam (or, in Keynes' example, Pharoah).

Private corporations, however, exist to make money. They employ people who help them generate revenue in the hopes of keeping a profit. If the profitability they garner is turned around to expand, develop, and grow the company to make even more money. The benefits to society are legion. For one, John Q. Worker still gets his paycheck, just as he would by building pyramids or painting the hallway in the Pentagon. However, by working for XYZ Company, he's helping them make a profit, which will ensure that he has a job in the future because his employer is (hopefully) turning a profit and can continue to have him employed. His job, unlike the pyramid worker's, is not financed by other people's taxes or by government debt.

He can work freely and happily knowing he's not straining his neighbor out of a more abundant life.

Raimondo on Obama

You may have noticed I am blogging shorter posts that get to the point, instead of long, drawn-out posts that (still) very few people read. Regardless, I have also grown increasingly critical of Obama, even though I tacitly supported him in lieu of Bush II (McCain). There's a reason for this. Obama isn't living up to the hype, and is reversing his path and going against what he promised during his campaign. It's a fact, and Justin Raimondo, one of my favorite columnists at antiwar.com, wrote an excellent article today on Obama's lunacy. Go read it.

New rule

I hope the Obama administration watches "The Office," because they should really take note:

Wisconsin cops use GPS to track citizens

This is bullshit. Sveum may be a stalker, but he has a point. The cops have crossed the line. Apparently they can attach a GPS tracker to the bottom of your car, allow it to record your movements, then later detach it from the vehicle and download the info. I hope the ACLU jumps all over this. This is a textbook civil liberties violation.

To the Wisconsin cops: the TV show "24" isn't real. You are not Jack Bauer.

War is good when our guy does it...

...but BAD when YOUR guy does it.

So thinks John Stewart, who I usually enjoy watching in the off-chance that I happen upon the Comedy Channel during primetime.

But that's okay, because Justin Raimondo, one of my favorite authors and commentators, eloquently illustrates Stewart's hypocrisy, immorality, and moral ineptitude in the article I hyperlinked above.

Again, poeple without principle swing like Stewart. They have a party to stick to, but not necessarily any standards.

Psssst! John! Dude, morality isn't defined by your choice in political party, man. It's defined by your sense of right and wrong. Wake up.

Let's continue to listen to the dumb economists

Today there is an excellent article over at the Mises Institute critiquing a recent Business Week article. The basic rationale is this: these so-called "economists" failed to predict the mess we're in (and, by extension, were probably the same band of thieves who encouraged the politicians in charge to ignite this mess), so why should we listen to them on how to get out of it?

We shouldn't. I'm a tacit member of the Libertarian Party (I'm more lower-case "L" than upper-case), and recently I have started calling it "The I-told-you-so Party." That's because the Austrian economists did predict this mess, and they know how to liberate us and get us out. Will the beltway listen? No. Why? Because the answer empowers the poor, introduces fiscal responsibility and accountability, and disempowers the beltway.

Your rights

Obama is nuts. The Democrats these days make no sense to me. Hell, the Green Party makes more sense than these guys do. Now Obama thinks that Pell Grants (free student aid for certain college students who qualify) is an entitlement. News flash for Obama and his ilk:

You do NOT have the right to free student aid.

You do NOT have the right to obtain higher education.

You do NOT have the right to own a home.

You do NOT have the right to have health care.

You do NOT have the right to food.

You do NOT have the right to free transportation.

You do NOT have the right to have clothing.

You do NOT have the right to a computer.

You do NOT have the right to use the internet.

All these things you have to obtain for yourself. Since conception, each one of us has been engaged in a struggle to survive and obtain. That the government thinks it is the grand purveyor of any of these things is ludicrous. It can't be done. It shouldn't be done. It is ridiculous.

A.D.D. - attention-deficit democrats

Dear Democrats,

If you recall, President Obama promised to hault "major combat operations" in Iraq. He's been in office 100 days, mostly occupied with destroying the economy and the dollar, justifying Air-Force one drills which scared the shit out of the citizens of New York, and dealing with a "pandemic" swine flu which is not even remotely pandemic. He's all about cutting costs (he cut $100 million out of his budget, a whopping 0.01%), but wants to leave our troops to keep the death toll in Iraq growing, and is now talking of putting more troops into Afghanistan.

Could you please tell me how this guy fits the "anti-war candidate" mantra he possessed during the run-up to the election? I'm confused. It's as if he's buying off on Bush's bullshit.