Socialism not working for Hugo Chavez either

(Austrian) Economics, Anti-Statism, Statism, The Left
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With the central government now directly controlling some 20-30% of staple food production, Venezuelan president Hugo Chavez is certainly striving to put other people’s money where his mouth is. According to CNBC:

Hugo Chavez in 2006, after meeting with Luiz Inácio Lula da Silva, the president of Brazil, and Néstor Kirchner, then president of Argentina.

Mountains of rotting food found at a government warehouse, soaring prices and soldiers raiding wholesalers accused of hoarding: Food supply is the latest battle in President Hugo Chavez’s socialist revolution.

Venezuelan army soldiers swept through the working class, pro-Chavez neighborhood of Catia in Caracas last week, seizing 120 tons of rice along with coffee and powdered milk that officials said was to be sold above regulated prices.

“The battle for food is a matter of national security,” said a red-shirted official from the Food Ministry, resting his arm on a pallet laden with bags of coffee.

Centrally planned economies fail because they can’t calculate. Venezuela is just another tragic example. No matter how many grocers Hugo Chavez terrorizes, he won’t be able to fix the flaws inherent in any command economy.

Socialism not working for Hugo Chavez either Read Post »

Article: The Property And Freedom Society — Reflections After Five Years

(Austrian) Economics, Anti-Statism, Articles, Vulgar Politics
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This article is an edited version of Professor Hans-Hermann Hoppe’s opening address to the Fifth Annual Meeting of the Property and Freedom Society (PFS) held in Bodrum, Turkey at the Hotel Karia Princess, June 3-7, 2010. The address provides an insightful overview of various libertarian alliances and strategies over past decades, including the paleo-libertarian/paleo-conservative alliance, and reasons for its failure. Hoppe illustrates how the state has coopted even most free market think tanks into serving the state’s aims, because they are not radical enough and their principal addressee is the central government. Hoppe argues (a) that libertarians must not put their trust in politicians or get distracted by politics and (b) using the case of Pat Buchanan as an example, that it is impossible to have a lasting intellectual association with people (such as some conservatives) who are either unwilling or incapable of grasping the principles of economics.

In view of these insights and this history, Hoppe surveys the brief history of the PFS and sets out its basic purposes.

Read the Full Article by Hans-Hermann Hoppe

Afterwards, discuss the article below.

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Hoppe: The Property And Freedom Society — Reflections After Five Years

(Austrian) Economics, Anti-Statism, Democracy, Immigration, Political Correctness, The Left, The Right, Vulgar Politics
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I was privileged to attend to the Fifth Annual Meeting of the Property and Freedom Society last week. It was held in beautiful Bodrum, Turkey at the Hotel Karia Princess, from June 3-7, 2010. The list of speakers may be found in the Program. This is my second, having also attended the inaugural meeting in 2006. I’ll put up another blog soon with more details about the event, but for now let me say it was without a doubt the best liberty related event I’ve ever attended. And two of my fellow TLS co-bloggers also attended–Gil Guillory and Juan Fernando Carpio.

Group photo2 from the Fifth Annual Meeting, June 2010, Hotel Karia Princess, Bodrum
Group photo from the Fifth Annual Meeting, June 2010, Hotel Karia Princess, Bodrum

Professor Hoppe’s opening address, “The Property And Freedom Society — Reflections After Five Years,” is published here on The Libertarian Standard today. It’s a fascinating, informative, and perceptive overview of various libertarian paleo- and related alliances over the years.

Hoppe surveys the mistakes of former alliances, and lessons learned; and also devastatingly illustrates how the state has coopted even most free market think tanks into serving the state’s aims:

The strategy of Hayek and of the Mont Pelerin Society, then, had to fail. Instead of helping to reform—liberalize—the (Western) State, as they intended (or pretended?) to do, the Mont Pelerin Society and the international “limited-government” think-tank industry would become an integral part of a continuously expanding welfare-warfare state system.

Indicators for this verdict abound: The typical location of the think tanks is in or near the capital city, most prominently Washington, DC., because their principal addressee is the central government. They react to measures and announcements of government, and they suggest and make proposals to government. Most contacts of think-tankers outside their own institution are with politicians, government bureaucrats, lobbyists, and assorted staffers and assistants. Along with connected journalists, these are also the regular attendees of their conferences, briefings, receptions and cocktail parties. There is a steady exchange of personnel between think tanks and governments. And the leaders of the limited government industry are frequently themselves prominent members of the power elite and the ruling class.

Most indicative of all: For decades, the limited government movement has been a growth industry. Its annual expenditures currently run in the hundreds of millions of dollars, and billions of dollars likely have been spent in total. All the while, government expenditures never and nowhere fell, not even once, but instead always and uninterruptedly increased to ever more dizzying heights.

And yet, this glaring failure of the industry to deliver the promised good of limited government is not punished but, perversely, rewarded with still more ample funds. The more the think tanks fail, the more money they get.

The State and the free market think tank industry thus live in perfect harmony with each other. They grow together, in tandem.

As for lessons learned:

Hoppe: The Property And Freedom Society — Reflections After Five Years Read Post »

More economic pain coming

(Austrian) Economics, Business, Corporatism
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In the chart below, provided by chartoftheday.com, one can see how grim the job situation has become. The long term-trend experienced since 1961 has been abandoned for what can only be described as stagnation in job creation. As jobs remain flat, of course, the size of the job force will continue to grow as more young people graduate from college and secondary school.  This is partly why unemployment among teens and twentysomethings is now about 25 percent.

According to chartoftheday.com:

Today, the Labor Department reported that nonfarm payrolls increased by 431,000 in May. It is worth noting that a large majority of last month’s gain in payrolls was due to the hiring of temporary workers for the 2010 census. Today’s chart provides some perspective on the US job market. Note how the number of jobs steadily increased from 1961 to 2001 (top chart). During the last economic recovery, however, job growth was unable to get back up to its long-term trend (first time since 1961). More recently, nonfarm payrolls have pulled away from its 40-year trend (1961-2001) by a record percentage (bottom chart). In fact, the number of US jobs is currently at level first reached in early 2000.

So far, the current “recovery” has produced a net loss of 133,000 jobs. During the same point in the last recovery (2003), the economy was adding 200,000 to 300,000 jobs per month. Calling the current situation a recovery is risible to anyone who is out looking for a job right now, especially since workers are now experiencing the longest periods of joblessness experienced in decades.

We can add to this the fact that the debt crisis in Europe has now spread to Hungary.  So now, Greece, Portugal, Ireland, Italy, Spain and Hungary are all now facing serious debt crises and even risk of default. The European economy is in disarray, and investors were not pleased as the Dow plunged more than 300 points to below 10,000.

The homebuyer tax credits are gone, the stimulus is beginning to wear off, and there is nothing left that the feds can do to stave off another crisis since interest rates are already effectively zero and the federal government is more more broke than ever. State and local governments are in even worse shape.

Needless to say, this does not bode well for the “recovery.”

More economic pain coming Read Post »

Article: What’s Really Wrong with the Healthcare Industry

(Austrian) Economics, Articles, Health Care
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The real problem with the American healthcare system is that prices are continually rising, making healthcare unaffordable to an ever-increasing fraction of the population. And recent healthcare legislation has addressed none of the causes of high prices.

Read the Full Article by Vijay Boyapati

Afterwards, discuss the article below.

[The article is also available at Mises.org]

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