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102. An Interview with a "Capitalist Pig" Jonathan Hoenig on Hedge Funds, the Economic Crisis, and the Future of America
- Publication Date:
- 06-2009
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- I recently spoke with Jonathan Hoenig, manager of the Capitalistpig Hedge Fund and regular contributor to Fox News Channel's Cashin' In, Your World with Neil Cavuto, and Red Eye with Greg Gutfeld. Mr. Hoenig is also a columnist for Smartmoney.com and contributes economic commentary to WLS 890AM in Chicago. -Craig Biddle Craig Biddle: I must ask at the outset, why did you name your firm "Capitalistpig"? Is there a story behind that? Jonathan Hoenig: Yes, there is. From weeding yards as a young boy to working at Starbucks in high school, I have always been interested in money and actively hustling for dollars. Getting an "A" in school didn't mean much to me, but earning a few hundred dollars working in a local warehouse or passing out samples of Nutella (another summer job) always provided a tremendous sense of accomplishment and pride. One of my earliest memories is going with my dad to our local bank and opening my first passbook savings account. Even then, it was a real thrill to watch the balance slowly build. As a kid, while many of my contemporaries were either bullying (or being bullied), I was busy discovering the virtue of mutually beneficial exchange. My neighbor appreciated me cleaning out her basement, and, for a few bucks, I was more than happy to do an excellent job. Ever since I can remember, capitalism wasn't something I spurned, but embraced. Knowing I wanted to pursue a career in the financial markets, after college I traded futures at the Chicago Board of Trade for a few years before opening up my firm in 2000. The name Capitalistpig Asset Management was a punchy way of communicating the philosophy by which my operation is run. We also give all new clients a copy of [Ayn Rand's] Atlas Shrugged. The name Capitalistpig also helps to attract the right type of customer. I prefer to work with like-minded individuals who support capitalism and individual rights and are happy to be part of an operation that loudly promotes these ideals. CB: What exactly is a hedge fund? How is it different from a mutual fund? And what do you and other hedge fund managers do? JH: A hedge fund is simply a pool of money funded by profit-seeking investors and managed by a professional money manager. In that sense, it is similar to a mutual fund. But unlike a mutual fund, a hedge fund is not required to register with the Securities and Exchange Commission. This doesn't mean hedge funds are unregulated; far from it. The government places stringent restrictions on how hedge funds can operate. Most notably, we're prohibited from accepting investments from "nonaccredited" individuals-meaning, those who don't have a liquid net worth of at least $1 million or haven't earned an income of at least $200,000 for two consecutive years. This, incidentally, is the source of the notoriously "exclusive" and "elitist" nature of hedge funds: They're exclusive and elitist not by choice, but by government edict. While most people assume that hedge funds trade frequently and make big bets on financial esoterica, the truth is a hedge fund is a legal structure, not an investment technique. Some trade frequently and use leverage, others buy and hold stocks for months or years at a time. So while the media routinely characterize hedge funds as "risky" or "highly leveraged," the reality is that hedge-fund strategies, just like mutual-fund strategies, run the gamut from the ultraconservative to the highly volatile. Some managers employ complex spread trades, while others simply buy and sell stocks. Just knowing someone runs a hedge fund tells you absolutely nothing about how it's run. What matters are the strategies, positions, and discipline that the manager uses to maximize the money. My fund is focused on absolute return, ideally earning a profit regardless of the condition of the stock market or larger macroeconomic environment. To accomplish this, I use strategies such as selling short, trading options, commodities, currencies, and other instruments, some of which aren't directly correlated with the stock market. My fund functions as one part of an individual's portfolio, usually no more than 25 percent, and it has been profitable eight out of nine years, earning a total return of over 345 percent. The Dow Jones has lost 28 percent over the same period. CB: Hedge funds and their managers have been loudly and repeatedly condemned for having somehow caused or exacerbated the current financial crisis. Did hedge funds lead to or worsen the crisis? If so, how? If not, what do you make of such claims? JH: Such accusations are absurd. Hedge-fund managers have neither caused nor exacerbated the financial crisis, and they couldn't have done so even if they had tried. These managers simply invest money for their clients. If they make good investments, their clients make money; if they make bad investments, their clients lose money. Moreover, hedge funds-one of the few financial industries that has not asked for and will not receive a bailout-actually helped shoulder the burden of the credit collapse. In buying and selling risky mortgages, loans, and other instruments, hedge funds substantially mitigated the crisis by adding liquidity to the marketplace and facilitating trade. Wealth creation requires investment, and the savings needed in order to make loans, finance operations, start new companies, and invest in R come from investors, such as hedge-fund managers, who are seeking to profit. Far from fueling the financial crisis, hedge-fund managers reduced its severity, and continue to do so, by allocating capital in accordance with the principles of economics, long-range thinking, the profit motive, and market demand.
- Topic:
- Economics
- Political Geography:
- America and Chicago
103. Justice Holmes and the Empty Constitution
- Author:
- Thomas A. Bowden
- Publication Date:
- 06-2009
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- Examines the meaning and consequences of Oliver Wendell Holmes's famous dissent in Lochner v. New York, showing how and why it has devastated American jurisprudence, and indicating what future jurists must grasp and do in order to begin reversing the damage.
- Political Geography:
- New York and America
104. Energy at the Speed of Thought: The Original Alternative Energy Market
- Author:
- Alex Epstein
- Publication Date:
- 06-2009
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- The most important and most overlooked energy issue today is the growing crisis of global energy supply. Cheap, industrial-scale energy is essential to building, transporting, and operating everything we use, from refrigerators to Internet server farms to hospitals. It is desperately needed in the undeveloped world, where 1.6 billion people lack electricity, which contributes to untold suffering and death. And it is needed in ever-greater, more-affordable quantities in the industrialized world: Energy usage and standard of living are directly correlated. Every dollar added to the cost of energy is a dollar added to the cost of life. And if something does not change soon in the energy markets, the cost of life will become a lot higher. As demand increases in the newly industrializing world, led by China and India, supply stagnates-meaning rising prices as far as the eye can see. What is the solution? We just need the right government "energy plan," leading politicians, intellectuals, and businessmen tell us. Of course "planners" such as Barack Obama, John McCain, Al Gore, Thomas L. Friedman, T. Boone Pickens, and countless others favor different plans with different permutations and combinations of their favorite energy sources (solar, wind, biomass, ethanol, geothermal, occasionally nuclear and natural gas) and distribution networks (from decentralized home solar generators to a national centralized so-called smart grid). But each agrees that there must be a plan-that the government must lead the energy industry using its power to subsidize, mandate, inhibit, and prohibit. And each claims that his plan will lead to technological breakthroughs, more plentiful energy, and therefore a higher standard of living. Consider Nobel Peace Prize winner Al Gore, who claims that if only we follow his "repower American plan"-which calls for the government to ban and replace all carbon-emitting energy (currently 80 percent of overall energy and almost 100 percent of fuel energy) in ten years-we would be using fuels that are not expensive, don't cause pollution and are abundantly available right here at home. . . . We have such fuels. Scientists have confirmed that enough solar energy falls on the surface of the earth every 40 minutes to meet 100 percent of the entire world's energy needs for a full year. Tapping just a small portion of this solar energy could provide all of the electricity America uses. And enough wind power blows through the Midwest corridor every day to also meet 100 percent of US electricity demand. Geothermal energy, similarly, is capable of providing enormous supplies of electricity for America. . . . [W]e can start right now using solar power, wind power and geothermal power to make electricity for our homes and businesses. And Gore claims that, under his plan, our vehicles will run on "renewable sources that can give us the equivalent of $1 per gallon gasoline." Another revered thinker, Thomas L. Friedman, also speaks of the transformative power of government planning, in the form of a government-engineered "green economy." In a recent book, he enthusiastically quotes an investor who claims: "The green economy is poised to be the mother of all markets, the economic investment opportunity of a lifetime." Friedman calls for "a system that will stimulate massive amounts of innovation and deployment of abundant, clean, reliable, and cheap electrons." How? Friedman tells us that there are two ways to stimulate innovation-one is short-term and the other is long-term-and we need to be doing much more of both. . . . First, there is innovation that happens naturally by the massive deployment of technologies we already have [he stresses solar and wind]. . . . The way you stimulate this kind of innovation-which comes from learning more about what you already know and doing it better and cheaper-is by generous tax incentives, regulatory incentives, renewable energy mandates, and other market-shaping mechanisms that create durable demand for these existing clean power technologies. . . . And second, there is innovation that happens by way of eureka breakthroughs from someone's lab due to research and experimentation. The way you stimulate that is by increasing government-funded research. . . . The problem with such plans and claims: Politicians and their intellectual allies have been making and trying to implement them for decades-with nothing positive (and much negative) to show for it. For example, in the late 1970s, Jimmy Carter heralded his "comprehensive energy policy," claiming it would "develop permanent and reliable new energy sources." In particular, he (like many today) favored "solar energy, for which most of the technology is already available." All the technology needed, he said, "is some initiative to initiate the growth of a large new market in our country." Since then, the government has heavily subsidized solar, wind, and other favored "alternatives," and embarked on grand research initiatives to change our energy sources-claiming that new fossil fuel and nuclear development is unnecessary and undesirable. The result? Not one single, practical, scalable source of energy. Americans get a piddling 1.1 percent of their power from solar and wind sources, and only that much because of national and state laws subsidizing and mandating them. There have been no "eureka breakthroughs," despite many Friedmanesque schemes to induce them, including conveniently forgotten debacles such as government fusion projects, the Liquid Fast Metal Breeder Reactor Program, and the Synfuels Corporation. Many good books and articles have been written-though not enough, and not widely enough read-chronicling the failures of various government-sponsored energy plans, particularly those that sought to develop "alternative energies," over the past several decades. Unfortunately, the lesson that many take from this is that we must relinquish hope for dramatic breakthroughs, lower our sights, and learn to make do with the increasing scarcity of energy. But the past failures do not warrant cynicism about the future of energy; they warrant cynicism only about the future of energy under government planning. Indeed, history provides us ample grounds for optimism about the potential for a dynamic energy market with life-changing breakthroughs-because America once had exactly such a market. For most of the 1800s, an energy market existed unlike any we have seen in our lifetimes, a market devoid of government meddling. With every passing decade, consumers could buy cheaper, safer, and more convenient energy, thanks to continual breakthroughs in technology and efficiency-topped off by the discovery and mass availability of an alternative source of energy that, through its incredible cheapness and abundance, literally lengthened and improved the lives of nearly everyone in America and millions more around the world. That alternative energy was called petroleum. By studying the rise of oil, and the market in which it rose, we will see what a dynamic energy market looks like and what makes it possible. Many claim to want the "next oil"; to that end, what could be more important than understanding the conditions that gave rise to the first oil? Today, we know oil primarily as a source of energy for transportation. But oil first rose to prominence as a form of energy for a different purpose: illumination. For millennia, men had limited success overcoming the darkness of the night with man-made light. As a result, the day span for most was limited to the number of hours during which the sun shone-often fewer than ten in the winter. Even as late as the early 1800s, the quality and availability of artificial light was little better than it had been in Greek and Roman times-which is to say that men could choose between various grades of expensive lamp oils or candles made from animal fats. But all of this began to change in the 1820s. Americans found that lighting their homes was becoming increasingly affordable-so much so that by the mid-1860s, even poor, rural Americans could afford to brighten their homes, and therefore their lives, at night, adding hours of life to their every day. What made the difference? Individual freedom, which liberated individual ingenuity. The Enlightenment and its apex, the founding of the United States of America, marked the establishment of an unprecedented form of government, one established explicitly on the principle of individual rights. According to this principle, each individual has a right to live his own life solely according to the guidance of his own mind-including the crucial right to earn, acquire, use, and dispose of the physical property, the wealth, on which his survival depends. Enlightenment America, and to a large extent Enlightenment Europe, gave men unprecedented freedom in the intellectual and economic realms. Intellectually, individuals were free to experiment and theorize without restrictions by the state. This made possible an unprecedented expansion in scientific inquiry-including the development by Joseph Priestly and Antoine Lavoisier of modern chemistry, critical to future improvements in illumination. Economically, this freedom enabled individuals to put scientific discoveries and methods into wealth-creating practice, harnessing the world around them in new, profitable ways-from textile manufacturing to steelmaking to coal-fired steam engines to illuminants.
- Topic:
- Government
- Political Geography:
- United States, China, America, and India
105. A Brief History of U.S. Farm Policy and the Need for Free-Market Agriculture
- Author:
- Monica Hughes
- Publication Date:
- 06-2009
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- The most important and most overlooked energy issue today is the growing crisis of global energy supply. Cheap, industrial-scale energy is essential to building, transporting, and operating everything we use, from refrigerators to Internet server farms to hospitals. It is desperately needed in the undeveloped world, where 1.6 billion people lack electricity, which contributes to untold suffering and death. And it is needed in ever-greater, more-affordable quantities in the industrialized world: Energy usage and standard of living are directly correlated. Every dollar added to the cost of energy is a dollar added to the cost of life. And if something does not change soon in the energy markets, the cost of life will become a lot higher. As demand increases in the newly industrializing world, led by China and India, supply stagnates -meaning rising prices as far as the eye can see. What is the solution? We just need the right government "energy plan," leading politicians, intellectuals, and businessmen tell us. Of course "planners" such as Barack Obama, John McCain, Al Gore, Thomas L. Friedman, T. Boone Pickens, and countless others favor different plans with different permutations and combinations of their favorite energy sources (solar, wind, biomass, ethanol, geothermal, occasionally nuclear and natural gas) and distribution networks (from decentralized home solar generators to a national centralized so-called smart grid). But each agrees that there must be a plan-that the government must lead the energy industry using its power to subsidize, mandate, inhibit, and prohibit. And each claims that his plan will lead to technological breakthroughs, more plentiful energy, and therefore a higher standard of living. Consider Nobel Peace Prize winner Al Gore, who claims that if only we follow his "repower American plan"-which calls for the government to ban and replace all carbon-emitting energy (currently 80 percent of overall energy and almost 100 percent of fuel energy) in ten years-we would be using fuels that are not expensive, don't cause pollution and are abundantly available right here at home. . . . We have such fuels. Scientists have confirmed that enough solar energy falls on the surface of the earth every 40 minutes to meet 100 percent of the entire world's energy needs for a full year. Tapping just a small portion of this solar energy could provide all of the electricity America uses. And enough wind power blows through the Midwest corridor every day to also meet 100 percent of US electricity demand. Geothermal energy, similarly, is capable of providing enormous supplies of electricity for America. . . . [W]e can start right now using solar power, wind power and geothermal power to make electricity for our homes and businesses. And Gore claims that, under his plan, our vehicles will run on "renewable sources that can give us the equivalent of $1 per gallon gasoline." Another revered thinker, Thomas L. Friedman, also speaks of the transformative power of government planning, in the form of a government-engineered "green economy." In a recent book, he enthusiastically quotes an investor who claims: "The green economy is poised to be the mother of all markets, the economic investment opportunity of a lifetime." Friedman calls for "a system that will stimulate massive amounts of innovation and deployment of abundant, clean, reliable, and cheap electrons." How? Friedman tells us that there are two ways to stimulate innovation-one is short-term and the other is long-term-and we need to be doing much more of both. . . . First, there is innovation that happens naturally by the massive deployment of technologies we already have [he stresses solar and wind]. . . . The way you stimulate this kind of innovation-which comes from learning more about what you already know and doing it better and cheaper-is by generous tax incentives, regulatory incentives, renewable energy mandates, and other market-shaping mechanisms that create durable demand for these existing clean power technologies. . . . And second, there is innovation that happens by way of eureka breakthroughs from someone's lab due to research and experimentation. The way you stimulate that is by increasing government-funded research. . . . The problem with such plans and claims: Politicians and their intellectual allies have been making and trying to implement them for decades-with nothing positive (and much negative) to show for it. For example, in the late 1970s, Jimmy Carter heralded his "comprehensive energy policy," claiming it would "develop permanent and reliable new energy sources." In particular, he (like many today) favored "solar energy, for which most of the technology is already available." All the technology needed, he said, "is some initiative to initiate the growth of a large new market in our country." Since then, the government has heavily subsidized solar, wind, and other favored "alternatives," and embarked on grand research initiatives to change our energy sources-claiming that new fossil fuel and nuclear development is unnecessary and undesirable. The result? Not one single, practical, scalable source of energy. Americans get a piddling 1.1 percent of their power from solar and wind sources, and only that much because of national and state laws subsidizing and mandating them. There have been no "eureka breakthroughs," despite many Friedmanesque schemes to induce them, including conveniently forgotten debacles such as government fusion projects, the Liquid Fast Metal Breeder Reactor Program, and the Synfuels Corporation. Many good books and articles have been written-though not enough, and not widely enough read-chronicling the failures of various government-sponsored energy plans, particularly those that sought to develop "alternative energies," over the past several decades. Unfortunately, the lesson that many take from this is that we must relinquish hope for dramatic breakthroughs, lower our sights, and learn to make do with the increasing scarcity of energy. But the past failures do not warrant cynicism about the future of energy; they warrant cynicism only about the future of energy under government planning. Indeed, history provides us ample grounds for optimism about the potential for a dynamic energy market with life-changing breakthroughs-because America once had exactly such a market. For most of the 1800s, an energy market existed unlike any we have seen in our lifetimes, a market devoid of government meddling. With every passing decade, consumers could buy cheaper, safer, and more convenient energy, thanks to continual breakthroughs in technology and efficiency-topped off by the discovery and mass availability of an alternative source of energy that, through its incredible cheapness and abundance, literally lengthened and improved the lives of nearly everyone in America and millions more around the world. That alternative energy was called petroleum. By studying the rise of oil, and the market in which it rose, we will see what a dynamic energy market looks like and what makes it possible. Many claim to want the "next oil"; to that end, what could be more important than understanding the conditions that gave rise to the first oil? Today, we know oil primarily as a source of energy for transportation. But oil first rose to prominence as a form of energy for a different purpose: illumination. For millennia, men had limited success overcoming the darkness of the night with man-made light. As a result, the day span for most was limited to the number of hours during which the sun shone-often fewer than ten in the winter. Even as late as the early 1800s, the quality and availability of artificial light was little better than it had been in Greek and Roman times-which is to say that men could choose between various grades of expensive lamp oils or candles made from animal fats. But all of this began to change in the 1820s. Americans found that lighting their homes was becoming increasingly affordable-so much so that by the mid-1860s, even poor, rural Americans could afford to brighten their homes, and therefore their lives, at night, adding hours of life to their every day. What made the difference? Individual freedom, which liberated individual ingenuity. The Enlightenment and its apex, the founding of the United States of America, marked the establishment of an unprecedented form of government, one established explicitly on the principle of individual rights. According to this principle, each individual has a right to live his own life solely according to the guidance of his own mind-including the crucial right to earn, acquire, use, and dispose of the physical property, the wealth, on which his survival depends. Enlightenment America, and to a large extent Enlightenment Europe, gave men unprecedented freedom in the intellectual and economic realms. Intellectually, individuals were free to experiment and theorize without restrictions by the state. This made possible an unprecedented expansion in scientific inquiry-including the development by Joseph Priestly and Antoine Lavoisier of modern chemistry, critical to future improvements in illumination.18 Economically, this freedom enabled individuals to put scientific discoveries and methods into wealth-creating practice, harnessing the world around them in new, profitable ways-from textile manufacturing to steelmaking to coal-fired steam engines to illuminants. . . .
- Topic:
- Development
- Political Geography:
- United States and America
106. Life Without Lawyers: Liberating Americans From Too Much Law, by Philip K. Howard
- Author:
- David Littel
- Publication Date:
- 06-2009
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- New York: Norton and Company, 2009. 221 pp. $24.95 (cloth). Reviewed by David Littel A political consensus is forming around the ideas of attorney and author Philip K. Howard. Beginning in 1990 with The Death of Common Sense and continuing through scores of articles and the work of his organization, Common Good, Howard has depicted an American legal system run wild, and he has advanced a thesis about what must be done. Political figures from Al Gore to Newt Gingrich praise his work. Self-proclaimed pragmatist Michael Bloomberg raves that Howard "offers big-picture ideas for how we can solve entrenched problems." In a prepublication review, George Will announced that Howard's latest book, Life Without Lawyers: Liberating Americans From Too Much Law, "surely will be 2009's most-needed book on public affairs." The bulk of Life Without Lawyers is an indictment of American law, covering everything from public schools to administrative regulations to civil lawsuits. As in his earlier books, Howard describes a series of nightmare scenarios drawn partly from his own experience as a practicing attorney and partly from other sources. For example, he tells the story of a family-owned dry cleaning business in Washington, D.C. that was sued for $54 million because of a lost pair of pants. The plaintiff calculated his damages based on a $1,500 consumer fraud penalty multiplied several times over in addition to $15,000 per weekend for a rental car to take his laundry to a more reliable establishment, $542,000 for his own time in pursuing the matter, and $500,000 for mental anguish. The suit was not dismissed but was allowed to linger for two years, costing the business owners more than $100,000 in legal fees (p. 72). . . .
- Topic:
- Law
- Political Geography:
- New York and America
107. The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger
- Author:
- Heike Larson
- Publication Date:
- 06-2009
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- Free marketeers reading the news these days cannot help but feel depressed. Media reports would lead us to believe that entrepreneurs are exploiters, that global trade hurts rather than helps people in America-in short, that capitalism has failed and that only the "change" offered us by central planners can alleviate our economic woes. In this climate, Marc Levinson's book The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger provides a welcome respite and intellectual refueling for weary capitalists. It tells a suspenseful story of achievement-replete with many twists and turns and a swashbuckling American hero-that will leave you wanting to run to the nearest container port to admire with newfound appreciation the industrial machinery that impacts almost every part of our daily lives. The Box, published on the fiftieth anniversary of the first sailing of a containership christened The Ideal-X, tells the story of how a seemingly mundane thing-a metal box with a wooden floor-managed to fundamentally change the world we live in. Until the 1960s, shipping had not changed much in decades. Handling cargo was a labor-intensive activity, and transportation costs and times-whether by land or by sea-were huge obstacles to trade, often making transcontinental, let alone global, trade economically unfeasible. In the 1950s, moving goods by ship was "a hugely complicated project," involving "millions of people who drove, dragged, or pushed cargo through city streets to or from the piers" (p. 16). Docks were cluttered with every kind of good imaginable, "steel drums of cleaning compound and beef tallow alongside 440-pound bales of cotton and animal skins"-all of which needed to be loaded and unloaded manually by gangs of longshoremen (p. 17). The process of loading and unloading a single ship during a single visit to a port often took weeks and accounted for between 60 and 75 percent of shipping costs. And, given the difficulties inherent and time involved in moving goods housed in a variety of different containers, it was imperative that factories locate close to docks for fast access to raw materials. Transportation costs and long delivery times made long-distance trade challenging and expensive-even before factoring in the heavy regulation that plagued the shipping industry. Recognizing the great expense and wasted time inherent in shipping practices of the day, two companies-both outsiders to the maritime shipping industry-developed in parallel an alternative system. Malcom McLean, an entrepreneur who grew his trucking company from a single vehicle purchased on credit during the Great Depression to one of the largest in America, bought a marginal East Coast maritime shipping line using "an unprecedented piece of financial and legal engineering" to circumvent regulations that prevented trucking companies from owning ship lines (p. 45). McLean set out to design and build a new shipping system from scratch based on a novel approach to the business: Whereas most shipping executives at the time believed that their business was operating ships, "McLean's fundamental insight, commonplace today but quite radical in the 1950s, was that the shipping industry's business was moving cargo" (p. 53, emphasis added). Within less then two years, McLean and his company, Pan-Atlantic, bootstrapped the first viable container system, in which cargo was loaded into stackable metal and wooden boxes of uniform dimensions, eliminating much of the labor required for and many of the problems inherent in loading ships with goods housed in a variety of containers. Further, "McLean understood that reducing the cost of shipping goods required not just a metal box but an entire new way of handling freight. Every part of the system-ports, ships, cranes, storage facilities, trucks, trains and the operations of the shippers themselves-would have to change. In that understanding, he was years ahead of almost everyone else in the transportation industry" (p. 53). His team of entrepreneurial, fast-moving engineers, managers, and partners designed, among many other things, the 33-foot box (only small steel containers were previously available); developed a quick-release locking system that eliminated the need to chain containers to ships or trucks; built a new trailer chassis to guide containers automatically into place; and put in place large cranes equipped with spreader bars-devices stretching the entire length of a container that enabled crane operators to attach and release hooks at the container's corner with the flick of a switch, thereby eliminating the need for longshoremen to climb up to each container corner and attach chains manually. And they accomplished all of these things while dealing with skeptical regulators who doubted the safety of containers and were pressured by truck and rail competitors to prohibit the container shipping experiment. When the first containership sailed on April 24, 1956, McLean's detailed cost tracking system showed clearly the benefits of the new system: "Loading loose cargo on a medium-sized cargo ship cost $5.83 per ton in 1956. McLean's experts pegged the cost of loading the Ideal-X at 15.8 cents per ton. With numbers like that, the container seemed to have a future" (p. 52). . . .
- Topic:
- Economics
- Political Geography:
- America
108. From the Editor
- Author:
- Craig Biddle
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- Welcome to the now-orange-for-better-visibility-on-the-newsstands Fall 2008 issue of TOS. Here is a preview of the seven articles at hand:My essay, "McBama vs. America," surveys the promises of John McCain and Barack Obama, shows that these intentions are at odds with the American ideal of individual rights, demonstrates that the cause of such political aims is a particular moral philosophy (shared by McCain and Obama), and calls for Americans to repudiate that morality and to embrace instead a morality that supports the American ideal.
- Topic:
- Government
- Political Geography:
- Japan and America
109. The Resurgence of Big Government
- Author:
- Yaron Brook
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- Following the economic disasters of the 1960s and 1970s, brought on by the statist policies of the political left, America seemed to change course. Commentators called the shift the "swing to the right"-that is, toward capitalism. From about 1980 to 2000, a new attitude took hold: the idea that government should be smaller, that recessions are best dealt with through tax cuts and deregulation, that markets work pretty effectively, and that many existing government interventions are doing more harm than good. President Bill Clinton found it necessary to declare, "The era of big government is over." Today that attitude has virtually vanished from the public stage. We are now witnessing a swing back to the left-toward statism. As a wave of recent articles have proclaimed: The era of big government is back. The evidence is hard to miss. Consider our current housing and credit crisis. From day one, it was blamed on the market and a lack of oversight by regulators who were said to be "asleep at the wheel." In response to the crisis, the government, the policy analysts, the media, and the American people demanded action, and everyone understood this to mean more government, more regulation, more controls. We got our wish. First came the Fed's panicked slashing of interest rates. Then the bailout of Bear Stearns. Then the bailout of Freddie Mac. Then a $300 billion mortgage bill, which passed by a substantial margin and was signed into law by President Bush. No doubt more is to come. All of this intervention, of course, is supported by our presidential candidates. Both blame Wall Street for the current problems and vow to increase the power of the Fed's and the SEC's financial regulators. John McCain has announced that there are "some greedy people on Wall Street that perhaps need to be punished." Both he and Barack Obama envision an ever-growing role for government in the marketplace, each promises to raise taxes in some form or another, and both support more regulations, particularly on Wall Street. Few doubt they will keep these promises. What do Americans think of all this? A recent poll by the Wall Street Journal and NBC News found that 53 percent of Americans want the government to "do more to solve problems." Twelve years earlier, Americans said they opposed government interference by a 2-to-1 margin. In fact, our government has been "doing more" throughout this decade. While President Bush has paid lip service to freer markets, his administration has engineered a vast increase in the size and reach of government. He gave us Sarbanes-Oxley, the largest expansion of business regulation in decades. He gave us the Medicare prescription drug benefit, the largest new entitlement program in thirty years. He gave us the "No Child Left Behind Act," the largest expansion of the federal government in education since 1979. This is to say nothing of the orgy of spending over which he has presided: His 2009 budget stands at more than $3 trillion-an increase of more than a $1 trillion since he took office. All of this led one conservative columnist to label Bush "a big government conservative." It was not meant as a criticism. Americans entered the 21st century enjoying the greatest prosperity in mankind's history. And many agreed that this prosperity was mainly the result of freeing markets from government intervention, not only in America, but also around the world. Yet today, virtually everyone agrees that markets have failed. Why? What happened? To identify the cause of today's swing to the left, we need first to understand the cause and consequences of the swing to the right.
- Topic:
- Education and Government
- Political Geography:
- America
110. Mandatory Health Insurance: Wrong for Massachusetts, Wrong for America
- Author:
- Paul Hsieh
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- Identifies the theory behind the Massachusetts mandatory health insurance program, exposes the program as a fiasco, explains why the theory had to fail in practice, and sheds light on the only genuine, rights-respecting means to affordable, accessible health care for Americans.
- Topic:
- Government and Health
- Political Geography:
- America
111. Deeper Than Kelo: The Roots of the Property Rights Crisis
- Author:
- Eric Daniels
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- On June 23, 2005, the United States Supreme Court's acquiescence in a municipal government's use of eminent domain to advance "economic development" goals sent shockwaves across the country. When the Court announced its decision in Kelo v. City of New London, average homeowners realized that their houses could be condemned, seized, and handed over to other private parties. They wanted to know what had gone wrong, why the Constitution and Fifth Amendment had failed to protect their property rights. The crux of the decision, and the source of so much indignation, was the majority opinion of Justice John Paul Stevens, which contended that "economic development" was such a "traditional and long accepted function of government" that it fell under the rubric of "public use." If a municipality or state determined, through a "carefully considered" planning process, that taking land from one owner and giving it to another would lead to increased tax revenue, job growth, and the revitalization of depressed urban areas, the Court would allow it. If the government had to condemn private homes to meet "the diverse and always evolving needs of society," Stevens wrote, so be it. The reaction to the Kelo decision was swift and widespread. Surveys showed that 80 to 90 percent of Americans opposed the decision. Politicians from both parties spoke out against it. Such strange bedfellows as Rush Limbaugh and Ralph Nader were united in their opposition to the Court's ruling. Legislatures in more than forty states proposed and most then passed eminent domain "reforms." In the 2006 elections, nearly one dozen states considered anti-Kelo ballot initiatives, and ten such measures passed. On the one-year anniversary of the decision, President Bush issued an executive order that barred federal agencies from using eminent domain to take property for economic development purposes (even though the primary use of eminent domain is by state and local agencies). The "backlash" against the Court's Kelo decision continues today by way of reform efforts in California and other states. Public outcry notwithstanding, the Kelo decision did not represent a substantial worsening of the state of property rights in America. Rather, the Kelo decision reaffirmed decades of precedent-precedent unfortunately rooted in the origins of the American system. Nor is eminent domain the only threat to property rights in America. Even if the federal and state governments abolished eminent domain tomorrow, property rights would still be insecure, because the cause of the problem is more fundamental than law or politics. In order to identify the fundamental cause of the property rights crisis, we must observe how the American legal and political system has treated property rights over the course of the past two centuries and take note of the ideas offered in support of their rulings and regulations. In so doing, we will see that the assault on property rights in America is the result of a long chain of historical precedent moored in widespread acceptance of a particular moral philosophy.Property, Principle, and Precedent In the Revolutionary era, America's Founding Fathers argued that respect for property rights formed the very foundation of good government. For instance, Arthur Lee, a Virginia delegate to the Continental Congress, wrote that "the right of property is the guardian of every other right, and to deprive a people of this, is in fact to deprive them of their liberty." In a 1792 essay on property published in the National Gazette, James Madison expressed the importance of property to the founding generation. "Government is instituted to protect property of every sort," he explained, "this being the end of government, that alone is a just government, which impartially secures to every man, whatever is his own." Despite this prevalent attitude-along with the strong protections for property contained in the United States Constitution's contracts clause, ex post facto clause, and the prohibition of state interference with currency-the founders accepted the idea that the power of eminent domain, the power to forcibly wrest property from private individuals, was a legitimate power of sovereignty resting in all governments. Although the founders held that the "despotic power" of eminent domain should be limited to taking property for "public use," and that the victims of such takings were due "just compensation," their acceptance of its legitimacy was the tip of a wedge. The principle that property rights are inalienable had been violated. If the government can properly take property for "public use," then property rights are not absolute, and the extent to which they can be violated depends on the meaning ascribed to "public use." From the earliest adjudication of eminent domain cases, it became clear that the term "public use" would cause problems. Although the founders intended eminent domain to be used only for public projects such as roads, 19th-century legislatures began using it to transfer property to private parties, such as mill and dam owners or canal and railroad companies, on the grounds that they were open to public use and provided wide public benefits. Add to this the fact that, during the New Deal, the Supreme Court explicitly endorsed the idea that property issues were to be determined not by reference to the principle of individual rights but by legislative majorities, and you have the foundation for all that followed. . . .
- Topic:
- Development and Economics
- Political Geography:
- United States, America, and London
112. How the FDA Violates Rights and Hinders Health
- Author:
- Stella Daily
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- This article is dedicated to Anna Tomalis, a young girl who died of liver cancer on August 15, 2008. Anna's parents desperately sought experimental treatment that might have saved her life, but were delayed for months by FDA bureaucracy. Anna finally received approval to obtain treatment through a clinical trial in July, but died after receiving just one round of treatment. She was thirteen years old. Abigail Burroughs was not the typical cancer patient: She was just nineteen years old when she was diagnosed with squamous cell cancer that had spread to her neck and lungs. Her prognosis was poor, but a then-experimental drug, Erbitux, offered the hope of saving her life. Abigail was denied that hope by the Food and Drug Administration. Because the drug was considered experimental, she could receive it only as part of a clinical trial-and Abigail was ineligible to participate in any trials at the time. Despite the best efforts of her family, friends, and doctor, Abigail was unable to receive the treatment that might have saved her life. At twenty-one years old, Abigail died of her disease. Abigail's father, Frank Burroughs, thought other patients with life-threatening illnesses should not be denied the ability to try any treatment that might give them a chance. In his daughter's name, he formed the Abigail Alliance for Better Access to Developmental Drugs, which sued the FDA in 2003. The group argued that the FDA's restrictions on access to experimental treatments constitute a violation of the right to self-defense as well as of the Fifth Amendment right not to be deprived of life, liberty, or property without due process of law. In August 2007, the Appeals Court of the District of Columbia struck a blow against the Abigail Alliance, and against individual rights, when it ruled that patients, even the terminally ill, do not have the right to receive treatment that has not been approved by the FDA. Erbitux has since been approved by the FDA to treat cancer of the head and neck-too late, of course, for Abigail Burroughs. How has America come to a point where the government denies dying patients the right to try to save their own lives? To answer that question, let us begin with a brief history of the Food and Drug Administration.A Brief History of the FDA Prior to the 20th century, the government did not regulate pharmaceutical products in the United States. Although Congress had considered federal regulations on food and drug safety as early as 1879, it had refrained from passing any legislation in this regard. However, with the muckraking journalism of the early 1900s, and especially with the publication of Upton Sinclair's novel The Jungle, which portrayed unsavory practices in the meatpacking industry, the American public clamored for laws to ensure the safe production of food and drugs. This public outcry pushed Congress to pass federal legislation in 1906. As the resulting Food and Drugs Act applied to drugs specifically, products were required to be sold only at certain levels of purity, strength, and quality; and ingredients considered dangerous (such as morphine or alcohol) had to be listed on the product's label. Violators would be subject to seizure of goods, fines, or imprisonment. Thus, in order to enforce the Act, the Food and Drug Administration was born. In its early years, the agency focused primarily on food rather than on pharmaceuticals, but in 1937 it increased its focus on drugs after a new formulation of sulfanilamide, a drug that had previously been successfully used to treat certain bacterial infections, proved to be deadly. The drug's manufacturer, S. E. Massengill Company, had dissolved an effective drug in a toxic solvent. More than one hundred people, babies and children among them, died as a result of taking Massengill's product, known as Elixir Sulfanilamide. Under the 1906 Food and Drugs Act, the FDA was not authorized to prosecute Massengill for selling an unsafe drug, and the agency had the power to recall Elixir Sulfanilamide only via a technicality. Because "elixir" was defined as a drug dissolved in alcohol, and because Massengill's formulation used the nonalcoholic solvent ethylene glycol, the product was technically mislabeled, bringing it under FDA jurisdiction and enabling the agency to recall the product. The public and legislators wanted more: They wanted the FDA not only to recall mislabeled products, but to prevent the sale of unsafe drugs in the first place. Thus, popular demand gave rise to the Food, Drug, and Cosmetics Act of 1938, which greatly expanded the FDA's authority. The most important change brought about by this Act was a shift in the burden of proof. Rather than prosecuting a drugmaker after the fact for having fraudulently marketed a product, the FDA would now require proof of safety before a drug could be marketed at all. (Note that this required manufacturers to prove a negative-i.e., that a given drug would not harm consumers.) After World War II, pharmaceutical companies came under still more scrutiny. Then, as now, complaints about the cost of drugs reached Congress, and in 1961 Senator Estes Kefauver led the charge in an investigation not only of drug pricing, but of the relationship between the drug industry and the FDA. Kefauver sought to pass legislation that would increase the agency's authority over drug production, distribution, and advertising. Whereas previously proof of safety alone was required to gain FDA approval, the proposed law would require drug manufacturers also to prove the efficacy of their products. Kefauver's bill might have languished in congressional debate but for the emergence at that time of data showing that thalidomide, which was then sold as a sleep aid and antinausea medication for pregnant women, caused severe birth defects in the children of women who took it. Thalidomide had not yet been approved for use in the United States at that time due to concerns of an FDA reviewer over a different side effect noted in the drug's application for approval. The drug was widely used in other countries, however, and the babies of many women who used it were born with grotesquely deformed limbs. As their harrowing images flooded the media, Americans realized they had narrowly escaped inflicting these deformities on their own children. The resulting public outcry led to Kefauver's bill being made law in 1962. This law served as the cornerstone for the wide powers that the FDA acquired thereafter, from requiring companies to include warnings in drug advertisements to dictating the way companies must investigate their own experimental compounds. Thus, although the scope and power of the FDA were modest at the agency's inception, its scope widened and its power increased markedly in the decades that followed. Now, a century later, the agency's purview includes foods and drugs for humans and animals, cosmetics, medical devices (including everything from breast implants to powered wheelchairs), blood and tissues, vaccines, and any products deemed to be radiation emitters (including cell phones and lasers). And the agency's power is nothing short of enormous. . . .
- Topic:
- Health
- Political Geography:
- America
113. Mugged by Reality: The Liberation of Iraq and the Failure of Good Intentions
- Author:
- Elan Journo
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- The measure of success in the Iraq war has undergone a curious progression. Early on, the Bush administration held up the vision of a peaceful, prosperous, pro-Western Iraq as its benchmark. But the torture chambers of Saddam Hussein were replaced by the horrors of a sadistic sectarian war and a fierce insurgency that consumed thousands of American lives. And the post-invasion Iraqi regime, it turns out, is led by Islamist parties allied with religious militias and intimately tied to the belligerent Iranian regime. The benchmark, if we can call it that, then shrank to the somewhat lesser vision of an Iraqi government that can stand up on its own, so that America can stand down. But that did not materialize, either. So we heard that if only the fractious Sunni and Shiite factions in the Iraqi government could have breathing space to reconcile their differences, and if only we could do more to blunt the force of the insurgency, that would be progress. To that end, in early 2007, the administration ordered a "surge" of tens of thousands more American forces to rein in the chaos in Iraq. Today, we hear John McCain and legions of conservatives braying that we are, in fact, winning (some go so far as to say we have already won). Why? Because the "surge" has reduced the number of attacks on U.S. troops to the levels seen a few years ago (when the insurgency was raging wildly) and the number of Iraqis slaughtering their fellow countrymen has taken a momentary dip. Victory, apparently, requires only clearing out insurgents (for a while) from their perches in some neighborhoods, even though Teheran's influence in the country grows and Islamists carve out Taliban-like fiefdoms in Iraq. The goals in Iraq "have visibly been getting smaller," observes John Agresto, a once keen but now disillusioned supporter of the campaign (p. 172). Iraq, he argues contra his fellow conservatives, has been a fiasco. "If we call it 'success,' it's only because we've lowered the benchmark to near zero" (p. 191). . . .
- Topic:
- War
- Political Geography:
- Iraq and America
114. Nudge: Improving Decisions About Health, Wealth, and Happiness
- Author:
- Eric Daniels
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- One of the distinguishing features of American life is the large degree of freedom we have in making choices about our lives. When choosing our diets, we have the freedom to choose everything from subsisting exclusively on junk food to consuming meticulously planned portions of fat, protein, and carbohydrate. When choosing how to conduct ourselves financially, we have the freedom to choose everything from a highly leveraged lifestyle of debt to a modest save-for-a-rainy-day approach. In every area of life, from health care to education to personal relationships, we are free to make countless decisions that affect our long-term happiness and prosperity-or lack thereof. According to Richard Thaler and Cass Sunstein, professors at the University of Chicago and authors of Nudge: Improving Decisions About Health, Wealth, and Happiness, this freedom and range of options is problematic. The problem, they say, is that most people, when given the opportunity, make bad choices; although Americans naturally want to do what is best for themselves, human fallibility often prevents them from knowing just what that is. "Most of us are busy, our lives are complicated, and we can't spend all our time thinking and analyzing everything" (p. 22). Average Americans, say Thaler and Sunstein, tend to favor the status quo, fall victim to temptation, use mental shortcuts, lack self-control, and follow the herd; as a result, they eat too much junk food, save too little, make bad investments, and buy faddish but useless products. Many Americans, according to the authors, are more like Homer Simpson (impulsive and easily fooled) than homo economicus (cool, calculating, and rational). "One of our major goals in this book," they note, "is to see how the world might be made easier, or safer, for the Homers among us" (p. 22). The particular areas where these Homers need the most help are those in which choices "have delayed effects . . . [are] difficult, infrequent, and offer poor feedback, and those for which the relation between choice and experience is ambiguous" (pp. 77-78).The central theme of Nudge is the idea that government and the private sector can improve people's choices by manipulating the "choice architecture" they face. As Thaler and Sunstein explain, people's choices are often shaped by the way in which alternatives are presented. If a doctor explains to his patient that a proposed medical procedure results in success in 90 percent of cases, that patient will often make a different decision from the one he would have made if the doctor had told him that one in ten patients dies from the procedure. Free markets, the authors argue, too often cater to and exploit people's tendencies to make less than rational choices. Faced with choices about extended warranties or health care plans or investing in one's education, only the most exceptional and rational people will make the "correct" choices. Most people, the authors argue, cannot avoid the common foibles of bad thinking; thus we ought to adopt a better way of framing and structuring choices so that people will be more likely to make better decisions and thereby do better for themselves. Hence the title: By presenting information in a specific way, "choice architects" can "nudge" the chooser in the "right" direction, even while maintaining his "freedom of choice."
- Topic:
- Health
- Political Geography:
- America and Chicago
115. The Terrorist Watch: Inside the Desperate Race to Stop the Next Attack
- Author:
- Joe Kroeger
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- In the years since the attacks of 9/11, there have been numerous attempts by terrorists to attack Americans on our own soil, but all of these attempts have been foiled. Who is responsible for this remarkable record, and how have they achieved it? These questions are answered in Ronald Kessler's recent book, The Terrorist Watch: Inside the Desperate Race to Stop the Next Attack, which surveys the work of the individuals involved in America's intelligence community since 9/11. In twenty-seven brief chapters, Kessler documents the post-9/11 work of the CIA, FBI, National Security Agency (NSA), National Geospatial-Intelligence Agency (NGA), National Counterterrorism Center (NCTC), and other agencies-showing the organizational, tactical, and technological changes that have occurred, along with their positive results. The book begins by recounting the events of September 11, 2001, from President Bush being informed of the first plane crashing into the World Trade Center, to his "We're at war" declaration, to the initial coordination of efforts among the vice president, the military, and law enforcement and intelligence agencies. Proceeding from there, Kessler shows how the CIA immediately linked some of the hijackers to Al Qaeda and how, a few days later, the president began redirecting the priorities of the FBI and the Justice Department from prosecuting terrorists to preventing attacks. . . .
- Political Geography:
- America
116. First into Nagasaki: The Censored Eyewitness Dispatches on Post-Atomic Japan and Its Prisoners of War by George Weller, edited and with an essay
- Author:
- John David Lewis
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- During World War II, the prime source of information for Americans about the war overseas was the dispatches of foreign correspondents-men who put their lives on the line in war zones to report the truth. George Weller was a giant among such men. Captured by the Nazis and traded for a German journalist, Weller watched the Belgian Congolese Army attack Italians in Ethiopia, saw the invasion of Crete, interviewed Charles de Gaulle in South Africa following an escape through Lisbon, and overcame malaria to report on the war in the Pacific. He was the first foreign correspondent trained as a paratrooper, and he won a Pulitzer Prize for his report of an appendectomy on a submarine. He wrote the book Singapore is Silent in 1942 after seeing the city fall to the Japanese, and he advocated a global system of United States bases in his 1943 book Bases Overseas. After witnessing Japan's surrender on September 2, 1945, he broke General Douglas MacArthur's order against travel to Nagasaki by impersonating an American colonel and taking a train to the bombed-out city. In a period of six weeks, he sent typewritten dispatches totaling some fifty thousand words back to American newspapers through official channels of the military occupation. Under MacArthur's directives, they were censored and never made it into print. Weller died in 2002 thinking his dispatches had been lost. Months later his son, Anthony Weller, found a crate of moldy papers with the only surviving carbon copies. Anthony Weller edited the dispatches and included his own essay about his father, resulting in this priceless addition to our information about World War II in the Pacific, and the birth of the atomic age. The importance of the dispatches, however, extends far beyond the value of the information from Nagasaki. George Weller is a voice from a past generation, and the publication of his censored dispatches raises a series of deeply important issues and, in the process, reveals an immense cultural divide between his world and ours today. On September 8, 1945, two days after he arrived in Nagasaki, Weller wrote his third dispatch concerning Nagasaki itself. He described wounded Japanese in two of Nagasaki's undestroyed hospitals, and recorded the question posed by his official guide: Showing them to you, as the first American outsider to reach Nagasaki since the surrender, your propaganda-conscious official guide looks meaningfully in your face and wants to know: "What do you think?" What this question means is: Do you intend writing that America did something inhuman in loosing this weapon against Japan? That is what we want you to write (p. 37). What would many reporters today write if asked this question by bombed enemy civilians? . . .
- Topic:
- War
- Political Geography:
- Japan, America, Germany, and Nagasaki
117. McBama vs. America
- Author:
- Craig Biddle
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- Surveys the promises of John McCain and Barack Obama, shows that these intentions are at odds with the American ideal of individual rights, demonstrates that the cause of such political aims is a particular moral philosophy (shared by McCain and Obama), and calls for Americans to repudiate that morality and to embrace instead a morality that supports the American ideal.
- Political Geography:
- America and Europe
118. From the Editor
- Author:
- Craig Biddle
- Publication Date:
- 12-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- No abstract is available.
- Topic:
- Economics
- Political Geography:
- America
119. Capitalism and the Moral High Ground
- Author:
- Craig Biddle
- Publication Date:
- 12-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- Concretizes the selfishness-enabling nature of capitalism and shows why this feature makes it the only moral social system on earth.
- Topic:
- Economics
- Political Geography:
- America
120. The Assault on Energy Producers
- Author:
- Brian P. Simpson
- Publication Date:
- 12-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- "We've got to go after the oil companies," says President-elect Barack Obama in response to high oil and gasoline prices. "We've got to go after [their] windfall profits." Explaining the purpose of recently proposed energy legislation, Senate Majority Leader Harry Reid says: "We are forcing oil companies to change their ways. We will hold them accountable for unconscionable price-gouging and force them to invest in renewable energy or pay a price for refusing to do so." Calling for government seizure of private power plants, California Senate Leader John Burton insists: "We have to do something. These people have got us by the throat. They're making more money than God, and we've got to fight back-not with words, but with actions." This attitude toward energy producers, which is practically unanimous among American politicians today, is wreaking havoc not only on the lives and rights of these producers, but on the lives and rights of Americans in general. It leads to laws and regulations that prohibit producers and consumers from acting on their rational judgment with respect to energy. It causes energy shortages, brownouts, and blackouts that thwart everyone's ability to be productive and enjoy life. And it results in higher prices not only for energy, but for every good and service that depends on energy-which means every good and service in the marketplace, from food to transportation to medical care to sporting events to education to housing. Energy producers, like all rational businessmen, are in business to make money. Profits are what motivate them to exert the requisite brain power, to engage in the necessary research, and to invest the massive amounts of money required to produce and deliver the energy we need to light, heat, and cool our homes, and to power the factories, workplaces, and tools required to produce the goods on which our lives depend. Their profit motive is to our benefit. Moreover, energy producers, like all human beings, have a moral right to act according to their own judgment so long as they do not violate the rights of others. They have a moral right to use and dispose of the product of their effort as they see fit. They have a moral right to contract with customers by mutual consent to mutual benefit. In other words, they have a moral right to life, liberty, property, and the pursuit of happiness. And it is only by respecting these rights that we can expect energy producers to produce energy. So let us examine the assault on these producers, count the ways in which this assault is both impractical and immoral, and specify what must be done to rectify this injustice. . . .
- Topic:
- Government
- Political Geography:
- America and California
121. New Deal or Raw Deal? How FDR's Economic Legacy Has Damaged America
- Author:
- Eric Daniels
- Publication Date:
- 12-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- Seventy-five years have elapsed since Franklin Delano Roosevelt introduced the flurry of government programs he called the New Deal. In the years since, most historians have lavished FDR with praise, claiming that his bold leadership helped to pull America out of the Great Depression. Even those who acknowledge the failure of particular Roosevelt-era programs claim that FDR instilled hope and confidence in the American people, and that his economic failures were the result of his not going far enough in his policies and not spending enough money. Today, amidst calls for increasing government regulation of the financial industry and increasing government spending through stimulus packages, the New Deal is making a comeback. In light of the recent mortgage crisis and economic downturn, pundits are calling for a revival of 1930s-style policies. Daniel Gross claimed at Slate.com that New Deal reforms were "saving capitalism again." Newly minted Nobel economist Paul Krugman issued calls in the New York Times for President-elect Obama to mimic and expand FDR's response to the Great Depression. And a recent Time cover called for a "New New Deal"-and featured an iconic photo of FDR, with Obama's face and hands substituted. As the Obama administration begins to implement its economic plan, Americans would do well to reexamine the history of the original New Deal and its effects. Though most historians rank FDR as a great president, some, including Burton Folsom Jr., boldly dare to ask if "the New Deal, rather than helping to cure the Great Depression, actually help[ed to] prolong it" (p. 7). According to Folsom, a professor of history at Hillsdale College, the answer is clearly the latter. In New Deal or Raw Deal? How FDR's Economic Legacy Has Damaged America, he challenges the myth that FDR's New Deal represents a shining moment in American history. As long as the mythology surrounding the New Deal remains intact, he notes, "the principles of public policy derived from the New Deal will continue to dominate American politics" (p. 15), costing Americans billions of dollars and further damaging the economy. . . .
- Topic:
- Economics, Government, and History
- Political Geography:
- America
122. Better Day Coming: Blacks and Equality, 1890–2000
- Author:
- Gus Van Horn
- Publication Date:
- 12-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- In August 1919, three white men brutally beat John R. Shillady in broad daylight outside his hotel. Shillady, also white, had come to Austin, Texas, as executive secretary of the NAACP to persuade state officials not to suppress its local branch. One of his attackers, a county judge, claimed that "it was my duty to stop him" because Shillady was there to "sow discontent among the Negroes" (pp. 105-106). In 1920, Shillady would resign from the NAACP, expressing despair for his cause: "I am less confident than heretofore . . . of the probability of overcoming, within a reasonable period, the forces opposed to Negro equality" (p. 109). And yet, not even a century later, the United States has elected its first black president-in an election in which race was hardly an issue. How did racial equality in America progress so far in so short a time? This is the remarkable story that Adam Fairclough relates in Better Day Coming: Blacks and Equality, 1890-2000. Fairclough succeeds in making his introduction to the struggle for black equality accessible to the general reader in two ways. First, he concentrates on events in the South, wherein particularly harsh forms of racial domination made it the logical focus of black efforts to achieve equality. Second, he follows the lead of fellow historian John W. Cell and classifies the approaches taken by various figures in his narrative as either "militant confrontation" (defiantly opposing racial oppression), "separatism" (working toward the creation of an all-black society here or abroad), or "accommodation" (gradually securing improvements from within the system of white supremacy) (pp. xi-xii). It is from this perspective that the book's chapters examine prominent individuals, organizations, events, and periods of the civil rights movement. Fairclough begins his narrative at a time when blacks were "more powerless than at any other time since the death of slavery" and had been "purged from the voting rolls" of the former Confederacy (pp. 15-17). He proceeds to examine the many different ways in which blacks fought against discrimination and oppression: from the intransigent, confrontational approach of Ida B. Wells, who campaigned against lynching in the 1890s; to the accommodation of Booker T. Washington, whose emphasis on black self-improvement over confrontation is characterized by Fairclough as "a tactical retreat in order to prepare the way for a strategic advance" (p. 63); to the separatism of Marcus Garvey, who proposed that blacks fight for an independent, united Africa (p. 126). Fairclough continues this kind of analysis throughout subsequent chapters, where we learn, among other things, about the involvement of the labor movement and the Communist party in the civil rights movement during the 1930s, the evolution of the NAACP's strategy to include legal challenges to discrimination in education after World War II and then mass civil disobedience after 1955, and the rise and fall of the "Black Power" movement. . . .
- Topic:
- War
- Political Geography:
- United States and America
123. Property Rights and the Crisis of the Electric Grid
- Author:
- Raymond C. Niles
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- Surveys the history and achievements of America's electricity entrepreneurs, shows how government interference in the transmission grid has hampered their enterprises from the outset to the present day, and indicates what America must do to liberate the grid and enable a new wave of entrepreneurs to supply this vital product commensurate with the country's demand.
- Topic:
- Economics and Government
- Political Geography:
- New York and America
124. The Rise of the Conservative Legal Movement: The Battle for Control of the Law by Steven M. Teles
- Author:
- Larry Salzman
- Publication Date:
- 09-2008
- Content Type:
- Journal Article
- Journal:
- The Objective Standard
- Institution:
- The Objective Standard
- Abstract:
- Conservatives today have considerable influence on America's legal culture. They are welcome on law school faculties at even the most elite institutions, and they man dozens of think tanks, policy centers, and public interest law foundations pressing varying brands of conservative doctrine on the courts-with a degree of success rivaling competing liberal organizations. Shrill leftists allege a "vast right-wing conspiracy," and senators now begin judicial nomination hearings with hand-wringing warnings about the behind-the-scenes influence of "Federalist Society lawyers."
- Political Geography:
- America