Nov 20, 2017 | Culture
Robert Stubblefield has penned this excellent letter to the Aiken Standard on why "School vouchers have benefit outside of religion":
Star Parker’s recent column noted that school voucher programs could allow religious parents to shield their children from bad ideas currently taught in government schools. Evolution, abortion and gay marriage are bad ideas to many religionists. Note that secularists might use vouchers to avoid their children being taught such ideas as profit is bad, sacrifice is good, words are equivalent to sticks and stones, and that racism to get diversity is OK.(Alternatively, tax credits for education would also allow such avoidance of government indoctrination without funds first flowing through the hands of sticky-fingered, bureaucracy-expanding government bureaucrats, who could set requirements – that a school qualifies for a program only if government-approved ideas are taught – more easily than a legislature could.)The fundamental fact is that the government’s virtual monopoly on education means every student is taught content and methods approved by the government. And the dismal results of our educational system are so well-known that late-night TV shows have frequent man-in-the-street interviews illustrating people’s ignorance of geography, history, our form of government, current events … much worse than the missing and confused content of students’ minds is the fact that they lack the correct methods of thinking. Many act as if public opinion establishes fact and feelings yield knowledge. They are not taught to think in principles because the ruling educational philosophy is pragmatism, which holds that there are no principles.For a superlative analysis of what government schools have done to abuse education and what a free system can do better, see the book “Teaching Johnny to Think” by Leonard Peikoff and Marlene Trollope.But the main point I want to make is about the relation of this issue to the principle of the separation of church and state. The Founding Fathers recognized the potential tyranny of giving the government control of religious ideas. At the time there were no governments monopolizing the ideas educators promulgated. If there had been, they might have seen the church/state separation rule as a narrower instance of a broader principle: there should be an ideology/state separation. The state should have no role in promoting or decrying any particular set of ideas. Its sole job is to protect the individual rights of its citizens from the initiation of force at home and abroad. -- Robert Stubblefield
Nov 14, 2017 | Culture
It’s No Mystery Why the Fed Sees Low Inflation as a Mystery - The Daily Capitalist
The Wall Street Journal reports that Fed head “Yellen Defends Fed Rate-Rise Plan Despite ‘Mystery’ of Low Inflation.” For Yellen, it’s a “mystery” that the U.S. today enjoys, simultaneously, a low rate of inflation (1.9%) and unemployment (4.4%). It’s a fact, yet “theoretically” impossible, per Yellen, so she’ll keep raising the Fed’s policy interest rate, hoping to prevent further declines in the jobless rate. Get it?Here’s why Yellen’s silly mystery is no mystery at all, at least to those who know something about the good and bad of economic theory and know some economic history too. For decades, Keynesian economists and their dominant textbooks have pushed the erroneous claim, to millions of students (including many now working at the Fed), that there’s an inevitable, unavoidable “trade-off” between a nation’s inflation rate and jobless rate. This bogus “cost-push” theory of inflation asserts that a low jobless rate somehow boosts labor’s “bargaining power” versus Scrooge-like employers, who eventually buckle under and concede to pay higher wage rates but, intent on preserving profit margins, also raise prices (thus inflation). The alleged tradeoff is captured by the so-called “Phillips Curve.” It’s in Yellen’s head.In fact, inflation is a purely monetary phenomenon; technically, it’s a decline in the purchasing power of money caused by the interplay between the supply of and demand for money. Its effect is a general rise in prices. The main determiners of money supply are its monopoly issuers: today’s central banks (including the Fed). Contrary to what the Phillips Curve myth implies, inflation is not caused by real factors – i.e., by a greater proportion of folks working to produce things or by faster rates of growth in economic output. In fact, stability in the value (or purchasing power) of money, much like stability in the rule of law and policy, fosters better growth and employment. Such stability is also beneficial for profits and equities.
Read the rest.
Nov 1, 2017 | Culture
Capitalist Richard Salsman: The Limits of Public Debt
November 13, 2017, | 4:00–5:00 PM | Broyhill Auditorium (Farrell A31), 1834 Wake Forest Rd, Winston-Salem NC
Government borrowing is at record levels, by some measures, and is projected to climb still higher in the coming decade. Are there “tipping points” we should worry about? If so, what happens after that?Why do governments borrow in the first place? Why do they sometimes over-borrow? Why (and how) do they sometimes default? Are democracies more prone to over-borrowing than other regime types? Does excessive public borrowing commit intergenerational injustice?While answering these questions and illustrating public debt history in multi-century charts, this talk reveals what leading political economists – from Smith in the 18th century to Krugman in the 21st century – have said about public debt. Theorists are classified as pessimists, optimists, and realists. The talk reveals which factors best distinguish these views, which view dominates today’s public debt debate, and why it matters.
Richard Salsman, PhD, is an assistant professor in the philosophy, politics, and economics (PPE) program at Duke University and a core faculty member of the political economy program there. He received his B.A. in Government and Economics from Bowdoin College (1981), his M.A. in Economics from New York University (1988), and his Ph.D. in Political Science from Duke (2012). Prior to entering academia, he was a banker in New York City (the Bank of New York and Citibank) and founder and president of InterMarket Forecasting, Inc.Dr. Salsman is the author of two books—Breaking the Banks: Central Banking Problems and Free Banking Solutions and Gold and Liberty—in addition to scholarly journal articles and dozens of essays on political economy for Forbes. His most recent book, The Political Economy of Public Debt: Three Centuries of Theory and Evidence, was published by Elgar in February 2017. Co-sponsored with the Wake Forest Department of Economics
Mar 29, 2017 | Culture
Nina Martyris over at the Paris Review recounts the delightful story of How ‘Les Misérables’ Was the Biggest Deal in Book History:
Signed in 1861 on a sunny Atlantic island, it tied an exiled French genius to an upstart Belgian house, resulting in the printing of that perennial masterwork, Les Misérables. In a new book, The Novel of the Century: The Extraordinary Adventure of ‘Les Misérables’, the professor and translator David Bellos condenses tranches of research into a gripping tale about Victor Hugo’s masterpiece. The deal, Bellos points out, was pathbreaking on several levels. First, Hugo earned an unprecedented sum: 300,000 francs (roughly $3.8 million in today’s money) for an eight-year license. “It was a tremendous amount of money, and since it entitled the publisher to own the work for only eight years, it remains the highest figure ever paid for a work of literature,” Bellos writes: “In terms of gold it would have weighed around ninety-seven kilos [213 pounds]. It was enough money to build a small railway or endow a chair at the Sorbonne.”Second, the neophyte Belgian publisher Albert Lacroix was the antithesis of a Penguin Random House. At the time, the twenty-eight-year-old Lacroix had cut his teeth at his uncle’s printing press, and he didn’t have so much as a sou to his name. Determined to sign Hugo on, he set up his own firm—Lacroix, Verboeckhoven & Co—and borrowed the entire amount for Hugo’s advance from the Oppenheim bank in Brussels, where he had contacts. Bellos marks it as “probably the first loan ever made by a bank to finance a book,” which means “Les Misérables stands at the vanguard of the use of venture capital to fund the arts.”Third, Lacroix signed on knowing full well that his client was a political outcast....
Read the full story: How ‘Les Misérables’ Was the Biggest Deal in Book History:Get The Book:The Novel of the Century: The Extraordinary Adventure of ‘Les Misérables’ by David Bellos
Mar 8, 2017 | Culture
From So Much Winning: How Trump Became President by Bradley C. Thompson:
There are many good reasons why Hillary Clinton lost the election, but the real story is what Trump did to win. His tactics, unprecedented in American political history, were radically unconventional in several ways.
1. The revolution was tweeted, not televised. Trump reached millions of Americans directly, on his schedule and without the mainstream media’s distortion filters. The turning point came in October 2015, when he realized he could speak directly to voters without intermediaries, reaching 25 million people on Twitter and Facebook for free. This technology allowed him to fill stadiums with 25,000 people in rural Alabama.
2. By being utterly unpredictable and outrageous, Trump “gaslit” the mainstream media. Sending out his first provocative tweet at 6:00 a.m. meant that the media would follow him for the rest of the day. He thereby received millions of dollars’ worth of free publicity from a media establishment that clearly wanted him to lose. Every day he fed and taunted the drooling beast, and then made it chase him.
3. Trump played offense 24/7. He took a line from President Obama’s playbook—“If they hit you, hit back twice as hard”—and then radicalized it. Consider his demolition of Jeb Bush, who knows how to play hardball but he was crushed by Trump. Then, during the general election, Trump out-Alinskyed an Alinsky protégé.
Read the rest of So Much Winning: How Trump Became President at Claremont.org.