The Economic Cost of the Beijing Olympics   from SHAGYA BLOG

July 5th, 2008
The following item was originally printed on the China Election and Governance Website. They describe themselves as a "resource center for governance and election affairs and gives scholars worldwide the opportunity to study Chinese politics and offer reform measures". This is interesting since the source of this site claims to be resident within China and yet appears to be critical of state policy over there. Perhaps this is an example of intelligent ruling sources that has been mentioned on this blog before.

China's economy is moving toward a serious crisis. Although its causes have been built up in the past, the most direct reason is that Premier Wen Jiabao adopted a completely wrong approach to imported inflation. His approach was a policy of comprehensive control of prices and monetary tightening to suppress rising domestic prices; a result, China became the trough of the world's lowest prices. Were China still a closed economy like 30 years ago, Wen Jiabao's policy would not have amounted to such a big problem; however, China has become a large country highly dependent on external trade; if it becomes the trough of the world's low prices, it means that its economy is bleeding.

This in fact is the case. International oil prices have soared to more than USD 110 a barrel, while Chinese oil companies' prices are controlled at a little over USD 80. The result is that all international airlines now refuel in China. The outlook for China's grain supply and demand is most frightening. Wen Jiabao doesn't dare raise China's grain prices closer to international market levels, but fertilizer prices must increase in line with them. The result is that given the grain purchase price fixed by the government, many peasants can no longer afford to buy fertilizer. According to state television reports, fertilizer sales have sharply declined this year and a large number of farmers have switched to farmyard manure. Grain output is likely to be seriously affected as a result. On the other hand, given that grain prices are far below international market levels, a great amount of China's valuable grain stocks are in one way or another being exported overseas. To take rice as an example, China's government-set price is currently USD 300 a ton, while the international market price has risen to around USD 1,000. Attracted by such huge profits, there are of course many business people who are willing to risk the dangers of illegal smuggling, which is greatly facilitated by China's long borders. Recently, when Wen Jiabao was in Haikou he tried to guarantee the supply of cheap Chinese rice to Hong Kong. When 10,000 tons of rice was shipped there, it was sold on to other countries without even going on the market. Wen Jiabao was said to be completely at sea about this, and not long after there was panic buying of rice in Hong Kong.

Wen Jiabao's comprehensive price controls and tightening of the money supply have brought about great difficulties for the domestic economy. Some of the domestic mainstream media have broken through the controls on news and reported the rapidly deteriorating economic situation, placing Wen under pressure. On 25 April, the Economic Observer published a report entitled "Private Enterprise Tormented," which dealt with the difficulties faced by private enterprises under Wen Jiabao's strict credit and price controls [1]. Of the 5.5 million private enterprises, less than 20 per cent can get bank loans; most have to get illegal financing from loan sharks. Price controls are even more frightening: in the face of sharply rising costs, private enterprises are not allowed to raise selling prices; if they do, they are "illegal." A front-page story in the Economic Observer on 5 May reported on the difficulties faced by central state-owned enterprises [2]. Entitled "Central Enterprises Get Set for Winter," it said that due to price controls despite rising costs, 150 state-owned enterprises directly under the Central Committee were, like private enterprises, having unprecedented difficulties, and were expecting to undergo a two-year "winter." Some large SOEs are threatened with breaks in their funding chains. The report also disclosed a Citigroup report estimating that from 2002 to 2006, Chinese enterprises' costs due to price distortions had been underestimated by as much as 3.83 trillion yuan, of which labor costs had been underestimated by 200 billion, commodity prices by 1.6 trillion, and capital costs by 330 billion. And global inflation in combination with China's price controls is going to make China's economic bleeding worse.

Wen Jiabao's attempt to go against the tide of global inflation has led the Chinese economy to an utterly absurd income distribution pattern: producers subsidising consumers, the poor subsidising the rich, backward areas subsidising developed areas and Chinese subsidising foreigners. This is an unsustainable situation. There have been reports that, due to the inversion of electricity prices, electricity supplies to some power plants have virtually stopped, cutting off power in some small cities—how can the economy not be affected?

Why did Wen Jiabao adopt such a foolish policy? Why act so arbitrarily? Why could no one stop him? The Beijing Olympics are, in my view, a great mental burden for China's mediocre and incompetent leaders. Wen clearly does not want peoples' resentment at soaring prices in China to boil over during the Games. And none of the other top leaders dare correct his mistakes—they are afraid of the political responsibility for an unsuccessful Beijing Olympics landing on their heads.

The Beijing Olympics have delivered the Chinese Communists an international public relations disaster; and it seems now that they are likely to bring about an economic disaster as well. If so, a political disaster will inevitably fall on the heads of those in power in the CPC.

Suicide as self-expression.   from Check Your Premises

July 5th, 2008

I believe the issue of the right to suicide is one that Anarchists should pay closer attention to. Indeed, it is clear, I hope, that the right to euthanasia is fairly basic and uncontestable, but I would also argue that suicide as a whole is something that should be protected, and that we should speak in favor of.

Suicide is seen with great suspicion and repulsion in our statist society. Why is that? I believe it is seen with repulsion for the same reason that Anarchy or atheism are seen with repulsion: because they represent a negation of a certain part of society, of the collectivist impulse.What they tell to the believer is this: “all that indoctrination you had to buy into, all that doubt-suppression you did, all that suppression of your own values that you did, I reject those processes, and find them useless.”

After all, religion and the State constantly tell us that suicide is a sin and that suicide is a disease, and this is understandable, as belief systems could hardly survive if their believers killed themselves, and the State needs as many bodies as possible. So a person who wants to kill himself is denying the validity of all that indoctrination. I imagine this is hard for a lot of people to take. Also, insofar as religion goes, believers tend to be more anxious about death, and this pushes them to obsess over the notion of the afterlife (consider that in the Bible very little is said about Heaven or Hell, but this has not stopped Christians from making up all sorts of myths and stories about it).

But I think we should consider suicide as a form of self-expression, and vital for a free society. Do you doubt that suicide is a form of self-expression? But you will not deny that it is possible. The famous example of Thich Quang Duc (who protested the persecution of Buddhists in Vietnam by self-immolation in 1963) demonstrates that suicide can definitely be a form of self-expression, at least in some cases.

But what about more ordinary cases of suicide? Excluding euthanasia, of course, we have the stereotype of the lonely teenager driven to suicide by emo-like depression or losing his girlfriend. But is not suicide the desire to have the ultimate control over one’s life: control over its end? To do this seems to be no less self-expression than other choices about one’s life (such as what we wear or where we go).

If we look at the statistics, suicide levels are lowest in the Middle East and African countries, societies where self-expression is most repressed. This makes perfect sense, although one could of course draw different conclusions from this fact.

Same Train?   from Austro-Athenian Empire

July 5th, 2008

MINARCHIST: First let’s join forces to trim all the branches. After that, we can argue about whether to kill the root.

ANARCHIST: Since I already know I want to kill the root, why should I wait until we first trim the branches? If I kill the root now, the branches will die of themselves.

(Further elaboration, if anyone needs it.)

WALL*E, the libertarian   from theConverted

July 5th, 2008

Since it came out, the Pixar film WALL*E has generated great kudos. On the second night it was out, I took my entire family - my wife, my 9 year-old daughter, my 7 year-old son and their 2 1/2 year-old brother  - to see the film.

It is a wonderful, heart-warming and cute film, with incredible animation and a fairly good story.

Unfortunately, that has not stopped some knee-jerk, anti-environmentalist Randroids and slack-jawed conservative idiots from labeling it as “environmentalist, anticapitalist, and antitechnological propaganda” (sic).

Really?

**Spoiler Alert - do not read any further if you haven’t seen the film**

Lets see, we have an planet ruined by garbage, as the result of what appears to be the monopoly of a single company - Big and Large (BNL) - because they cater to every whim. They seem to be able to dump garbage because they seem to be able to externalize the cost of doing so. Now that could be a metaphor for pure socialism, but it seems more likely to me to be a metaphor for our current state capitalism.

Now, when faced with environmental disaster, what is the answer? why a more technological and nanny state existence on a cruise ship in space. Every aspect of life, from cradle to grave, is taken care of by the State - the cruise ship - and its minions - the service robots. Indeed, the humans become so lazy and distracted by this they do not realize they are always following the carefully controlled and laid out plans of the State to the point that they don’t realize the ship has a pool and that other people are more than just picture on a view screen.

It is not until the people of the ship are awakened and remember their past, fight against the agents of the state - the service robots trying to stop them from going to earth - shut off the “Autopilot” and leave the ship are they truly free.

They leave the control and comfort of the ship (state) and enter a fairly barren, despoiled land. It is not a paradise, but harsh - literally a garbage dump. But they courageously step forward, awkwardly, and start their new lives without the ship and its nanny-state society.

And if you stayed to watch the credits, the back story that unfold in the background animation, you’ll see they better their world not by taking orders from the “Autopilot”  but by cooperating and working together to plant food, recover from garbage and to rebuild without the over arching authority.

That certainly seems like a libertarian storyline to me?

I would also add that WALL*E indulges in a few verboten activities that libertarians would love and the MPAA and the RIAA would despise - he watches his pirated version of  “Hello Dolly” on his iPod and plays the ripped version of the music on his internal tape deck. He is self reliant, gathering and using spare parts he finds to fix himself and create his home, without relying on “the mother ship” to do it for him, like the bots on the Axiom do.

All that, but some people still call it a liberal propaganda film.

As others have pointed out, if you are so humourless as to be caterwauling about a kids movie like this, without seeing that obviously there are elements of both liberal and conservative politics, than how can anyone take you seriously.

“The fundamental story of the movie is about a culture beholden to a nanny state - in this case, a literal nanny state that coddles them like babies from the cradle to the grave, a world where individual initiative is destroyed and cultural history is entirely alien to the entire human race.  Basically, it’s the exact thing that conservatives have been warning us about for years, wrapped up in a movie with cute robots who rebel against it and lead humanity to a hunting-gathering-growing Earth.”

Indeed.

Environmental destruction happens and sometimes, the best laid plans of a statist, technological solution are worse. Only when people are free to face adversity and make free choices, not preprogrammed one, will the world be saved.

That is the message of WALL*E. That is the message to the environmentalists who think tha answer to state capitalist created pollutions and environmental destruction is more state regulation and exemption.

And it has cute robots, which will be used to market thousands of toys for the next two year.

But its anti-capitalist.

Right.

These people really need to get a sense of humour and get over themselves.

Plus or Minus   from Austro-Athenian Empire

July 5th, 2008

William Gillis rejects natural rights theory as a basis for libertarianism, on the grounds that “as a theoretical physicist I find its assumptions (like the distinction between positive and negative action) about as reasonable as golden thrones in the clouds and holy trinities.”

drowning your sorrows I must gently point out that if an idea is inherently crazy when it shows up in the premises, it cannot suddenly become okay when it shows up in the conclusion (even if the conclusion is now derived from different premises). Or, equally, if it is okay in the conclusion, then it can’t be inherently crazy in the premises. In other words, when an idea (such as the distinction between positive and negative action) is all-pervasively presupposed in one’s policy proposals, one cannot coherently reject the distinction as part of the basis for those proposals.

Incidentally, I don’t know what the grounds for William’s skepticism of the positive/negative distinction are, but some critics of the distinction argue that if one’s decision (be it a decision to “kill” or a decision to “let die”) is part of the overall constellation of circumstances that is sufficient for someone’s death, then there is no interesting metaphysical (not just ethical) distinction between the two cases. I think this argument is confused; here’s a story from Fred Miller that’s useful therapy for such confusion:

A and B are hitchhikers who catch a ride with C. C drops A off in D-town and B off in E-town. In D-town, A sees F standing near the edge of a cliff; A pushes F off the cliff; F falls into the river and drowns. In E-town, B sees G standing near the edge of a cliff; G falls off the cliff on his/her own; B could save G, but instead stands and watches G drown.

drowning your sorrows even more Now in order to claim that there is no interesting metaphysical difference between A’s relation to F’s death and B’s relation to G’s death, one must in strict consistency also claim that there is no interesting metaphysical difference between C’s relation to F’s death and C’s relation to G’s death; C either makes a causal contribution (and we’re not talking about moral responsibility, just causal contribution) to both deaths or to neither. But no one (presumably) will seriously make such a claim. Obviously C makes an (inadvertent) causal contribution to F’s death but not to G’s. (To deny this, I maintain, is to fail to recollect the grammar of the concept of causation.) Hence there must also be a difference between A’s relation to F’s death and B’s relation to G’s death, QED.

Whiteness studies 103: Ethnic food and authenticity   from Rad Geek People's Daily

July 5th, 2008

Here’s some remarks from an apparent California leftist (progressive, whatever) that I noticed at Davis Wiki while looking up some unrelated information on Chipotle’s corporate history.

The quest for authentic ethnic food is a noble one in this day and age of capitalistic homogenation. Once the corporations get ahold of a a food category, they subvert it to be as palletable (bland) as possible so people in the midwest will eat it.

Because, you see, once people in the Midwest eat something, it’s not authentic ethnic food anymore. You’ve got to remember that white people in the Midwest (Poles, Germans, Swedes, Irish, Scots, English, etc.) don’t have an authentic ethnicity; they are far too bland for all that. Only spicy, colorful people have ethnicities, let alone authentic ethnic food.

See also:

Invasion of the Tramps   from Austro-Athenian Empire

July 4th, 2008

As soon as a new party springs up and begins to show signs of success, a lot of political tramps are immediately attracted to its ranks. Bob Barr likes him some giant flagThese men possess a certain amount of influence. They are trained politicians, well versed in the art of packing conventions and proficient at counting the ballots. When they come to the new party with crocodile tears of repentance coursing down their cheeks, it is too weak to refuse their aid. It opens its arms and kissing away their repentant tears, places them in the front rank where glory awaits them. The result of this is a large gain in votes and sometimes success at the polls. But this victory is only gained at the expense of principle, and the last state of that party is worse than the first.
Francis D. Tandy, Voluntary Socialism, ch. 13 (1896)

My Fourth of July- 2008   from Check Your Premises

July 4th, 2008

Happy Independence Day   from THUS SPOKE BELINSKY

July 4th, 2008

Two hundred twenty eight years ago, delegates from the thirteen British colonies which later became the United States of America gathered in a small room in Philadelphia, unanimously approving the Declaration of Independence, the rhetorical masterpiece which declared the colonies separate from and no longer under the rule of the British Empire. Lest we forget the revolutionary roots of this country, let us review some of the most radical passages of the historic document. (My emphasis.)

We hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness.

That to secure these rights, Governments are instituted among Men, deriving their just Powers from the Consent of the Governed.

That whenever any Form of Government becomes destructive of these Ends, it is in the Right of the People to alter or abolish it, and to institute a new Government, laying its Foundation on such Principles, and organizing its Powers in such Form, as to them shall seem most likely to effect their Safety and Happiness. Prudence indeed, will dictate that Governments long established should not be changed for light and transient Causes; and accordingly all Experience hath shewn, that Mankind are more disposed to suffer, while Evils are sufferable, than to right themselves by abolishing the Forms to which they are accustomed. But when a long Train of Abuses and Usurpations, pursuing invariably the same Object, evinces a Design to reduce them under absolute Despotism, it is their Right, it is their Duty, to throw off such Government, and to provide new Guards for their future Security.

— Declaration of Independence, July 4, 1776


Thomas Jefferson also considered the British parliament a foreign power with no jurisdiction over the colonists.

[King George] has combined with others to subject us to a Jurisdiction foreign to our Constitution, and unacknowledged by our Laws; giving his Assent to their Acts of pretended Legislation

— Declaration of Independence, July 4, 1776


Perhaps we can make a comparison to today's situation, as Jeremy Weiland has noted in the past.

We might also remember Jefferson's remarks about the usefulness of a little revolution from time to time.

A little revolution now and then is a good thing; the tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.

— Thomas Jefferson, Letter to W.S. Smith, November 13, 1787

I hold it, that a little rebellion, now and then, is a good thing, and as necessary in the political world as storms in the physical.

— Thomas Jefferson, Letter to James Madison, January 30, 1787


These words contained in the Declaration of Independence are as relevant today as ever. The Founders considered government necessary to secure Life, Liberty, and the pursuit of Happiness, but if history shows that government is consistently "destructive of these Ends", then perhaps we should reconsider the idea altogether.


Other revolutionary insights:

The Picket Line — 5 July 2008   from The Picket Line

July 4th, 2008

5 July 2008

Late last month I was musing about the state of the discipline of ethics, and noting that while there is a lot of attention given in that field to what ethics means and how to go about discovering correct, intelligible, and consistent ethical principles, there doesn’t seem to be much attention given to the problem of how one goes about becoming someone who makes ethical decisions. How does one avoid the many temptations to do evil? How does one recognize good and evil alternatives amidst the camoflage they often use? How does one develop a good character so that ethical decisionmaking becomes second nature?

It seems to me that there ought to be some sort of discipline that covers this ground. I imagine maybe going to an ethics dojo to get a black belt in being good.

The social scientists and psychologists have devised all sorts of interesting experiments that have revealed a variety of quirks and deficiencies in human ethical reasoning and decisionmaking — could we not also devise clever defenses against them and practice them to get better?

It’s as if we had a society full of biologists, epidemiologists, chemists, anatomists and the like, all of whom had developed tremendous insights into the causes of the physical maladies with which we are plagued, and yet we hadn’t gotten around to inventing the discipline of medicine or building hospitals or manufacturing medicines.

I’ve been reading through an abridged version of The Nicomachean Ethics and I note that to Aristotle:

…[T]he branch of philosophy on which we are at present engaged differs from the others in not being a subject of merely intellectual interest — I mean we are not concerned to know what goodness essentially is, but how we are to become good men, for this alone gives the study its practical value…

What happened? Where did this variety of ethics go?


The debate about the place of agorism in the life of a freedom-loving person continues over at The Freedom Symposium and I was invited to chime in, which I did in a comment that I’ll also include here.

There’s a subplot to the debate that has to do with whether paying taxes is “voluntary” (and if so, in what sense), and whether it’s ethical, and whether tax resistance is appropriate or a waste of time.

Here’s what I had to say:

I’ve been following this debate, or bits and pieces of it anyway, but haven’t put my two cents in yet. This is partially because I’m not sure I understand what the core point of disagreement is.

It seems to be something like this: do we need to be vigorously attempting to build protocols and structures in which people can engage in transactions free from state interference in order to begin to build a free world inside the shell of the decaying state, or, are we better off submitting to the fact that the state will remain a dominant force in our lives for the forseeable future and concentrate on building satisfying lives within that limitation while trying to spread the good word of liberty and seeking out the company of like-minded people?

It seems to me there’s plenty good to be drawn from both positions.

I agree that if the state were, through our efforts or through its own bumbling, to collapse today, the fact that the statist mindset is so ubiquitous would mean that people would assemble something just as bad in no time at all just out of habit. So education is essential.

On the other hand, agorist transactions and structures can be a vivid part of this education. Seeing an utterly anarchist festival thrive in the midst of state hostility — the Rainbow Gathering — was a real eye-opener to me about the possibilities of organization without coercion. A bunch of hippies in the woods creating something strikingly well-organized without any leadership hierarchy to speak of, without any coercion, and in direct defiance to a hostile state, did more to make the possibilities of anarchism come alive to me than any theoretical texts.

As tax resistance is my Big Deal, I’ll say a few things about it specifically.

Tax resistance today is no threat to the government. One way I know this is that I can refuse to pay my taxes, blog about this day after day, publicly encourage other people to do the same, attend conferences of other resisters, publish books and other writings on the subject, and so forth, and at no time do I feel like I have jack-booted thugs breathing down my neck. They don’t give a damn. We are barely an annoyance, much less a threat.

Tax resistance can be a powerful method of resistance, but it requires a much larger and well-disciplined set of resisters than we have at present. Such resistance would have to come at some point after a majority or at least a very significant minority of people had given up their allegiance to the state and were sufficiently frustrated to be wiling to go into risky confrontation with it.

This leaves tax resistance today as some other sort of tactic. In some people, it’s just self-interest — more frequently called tax evasion and just designed to hold on to more money. In some people, it’s a variety of protest that takes the form of civil disobedience as a way of emphasizing the strength of the protester’s convictions. A third form is tax resistance as conscientious objection — not paying taxes because you find contributing to the government to be something that offends your sense of ethics. That’s more what I have in mind when I resist. I don’t want to voluntarily contribute to the state.

This brings up the whole “what’s voluntary about it?” question.

The government says that if you earn income you must pay FICA (for instance). This is a demand, not a request, and they have an enforcement apparatus that includes violent coercion to back that up.

But I don’t mean voluntary as opposed to coerced, but as opposed to involuntary.

If the government knocks down my door and makes off with something valuable they find in my house, they have taken this thing from me, and to the extent that I’ve given it to them, I’ve done so wholly involutarily. But if they come to me and say “give me your stuff or else…” then it is my voluntary decision whether to choose what’s behind door #1 or door #2.

Now certainly there are some circumstances where you look at the alternatives and choose to fork over the loot rather than choose a very unpleasant alternative.

But for me, tax resistance means asking “or else what?” each time the demand is made, and then deciding whether the alternative is really any worse than putting my time and energy (fossilized into money) into supporting the state.

About 40% of Americans live under the federal income tax line, which is to say that they pay no federal income tax at all because after credits and deductions and such their income isn’t high enough. I decided I’d rather become one of them than earn more income and therefore pay income tax.

There are consequences to earning more and paying income tax, and there are consequences to earning less and not paying them. I picked the ones I preferred. In doing this, I put less value on money than a lot of people do, and more value on not supporting the state than just about anybody does, which is why I came up with a decision that’s rare enough to be remarkable. I think the world would be a better place if more people had values a bit more like mine, but I guess I’m not alone in having such feelings.

(I also evade other taxes in other ways, some legal and some illegal. And the process of trying to work out a good balance of living well and minimizing my support for the state is an ongoing one for me.)