Category Archives: History

Quote of the Day: Baltimore 2015 Edition

what ifI’ve been thinking quite a bit about the situation in Baltimore and the very state of our culture. This Facebook status update I came across yesterday is very worthy of repeating here.

I really wish people would stop posting Freddie Gray’s criminal record, as if that makes him deserving of having his spine broken while in police custody, killing him. You can’t claim to be a supporter of constitutional rights, yet care nothing of Freddie Gray’s rights. This brother was no less deserving of his life than any white collar criminal. I don’t support rioting & looting, but I also won’t support those who think his life was worth less than the next person, or that he got what he deserved. He was the victim in this case, and his record is irrelevant… – Talitha McEachin

Agreed. Unless Freddie Gray presented a presented a threat to the lives of the police officers while he was in custody*, the police had no right to use the force they used that ultimately ended his life. Whether he was arrested one time or a thousand has nothing to do with how Gray was treated.

*Of course at this point, we don’t really know what happened while Gray was in custody. This is yet another argument for the notion that each and every moment the police are interacting with a suspect that these interactions should be recorded and made available (eventually) to the public. There’s simply no excuse for this not to be the policy of every police department in 2015.

Yes, There Really Are Two Americas. Look At How Different The South Is

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This year marks the 150th anniversary of the end of the War Between the States. The Northern states, fighting to preserve the Union and (later) to end slavery, defeated the Southern states in a war that resulted in over 600,000 dead.

The war all but ended the concept of state soverignty as the question of secession was decided on the battlefield. The war also gave birth to concept of American nationalism as Americans began to consider themselves as American before being a citizen of their state.

However, America is probably now divided more than it has been in decades. The nation seems to be hopelessly gridlocked politically. Meanwhile, the culture wars are in full swing with social justice warriors going to war against traditionalists and libertarians. There really are two Americas.

What explains the division? I argue that culture and region probably provide the best clues to the division of America.

The Economist had an excellent article earlier this month describing how the South is still culturally different from the rest of the country. Why is that the case?

 

The dividing line is actually religion.

Religion is a better explanation of southern exceptionalism. The civil war divided most of America’s Protestant sects, says Mark Noll of the University of Notre Dame. Both the Presbyterian and Methodist churches split into northern branches, which opposed slavery, and southern branches, which did not. Even after slavery ended, theological divisions persisted. In the north, which saw mass immigration from all over the world in the decades after the war, Protestant churches had to find some accommodation with Jews, Catholics and, eventually, non-believers.

 

 

In the South the share of those born outside America (which was low to begin with) actually fell after the civil war. New migrants moved west or north but rarely south. Because of this, southern churches could hold more traditional views without challenge. Those tented revival meetings that were such a feature of southern Protestantism were not intended to win converts so much as to purify and strengthen beliefs that were already there.

 

 

The Southern Baptist movement, which is strongly associated with the “values voters” who favour the Republicans, has its origins in support for slavery. Southern Baptists have long since updated their views on race, as the many black Southern Baptist pastors attest, but the movement’s social conservatism endures. And southerners are unusually observant: Utah is the only non-southern state where church attendance is as high as in Dixie.

 

 

Southerners are also known for being fiercely individualistic. As the rest of America becomes more secular, it should be no surprise that the region still strongly believes in the Protestant work ethic and tends to be more supportive of limited government. They’re also willing to forgo a large portion of the safety net because religious charities will largely step up and fill the role.

Another interesting thing about Southern culture is how it tends to leave its mark on surrounding cultures. There are reasons why in particular heavily Catholic south Louisiana, pre-dominately Catholic Hispanics in Texas, and the Catholic Cuban-American community in Miami are more conservative than Catholics in New England and the Midwest. Those Southern values of individualism, hard work, personal responsibility and family values have rubbed off on those communities.

Here’s an interesting map from The Economist article.

Courtesy: The Economist

Courtesy: The Economist

A lot of the orange on the map corresponds to the red state/ blue state maps on presidential elections. The more secular states tend to vote Democratic while the more religious states vote Republican. The views on abortion and gay marriage also tend to align with religious viewpoints.

As you can see, America is deeply divided between a more religious and ironically more individualistic South and Midwest and the more secular coasts. Could the differences between these two Americas lead to secession and civil war? Who knows.

Now, I don’t believe you have to be religious to be moral and that all religious people are moral. But I do believe that a free society only survives when it’s populated by a moral people. The purpose of this post is not to pass judgement on anyone’s religious beliefs.

Let me close with something. We have quite a few non-religious and atheist contributors here who believe in free markets and secular values. I value them all and I’m proud to call them friends. I also know they’re the exception, rather than the rule among secularists. Most atheists generally lean to the left and conservative and libertarian atheists tend to be the exception than the norm.

Here’s an exit question: do you think many secularists replace religion with a belief in the state and social justice and that’s why they’re hostile to limited government? Let us know in the comments.

I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at The Hayride.com and Rare. You can also find me over at the R Street Institute.

Today’s Nasdaq Illustrates the Phenomenon of Creative Destruction

Those of you who are old enough to remember the dot com bubble bursting some 15 years ago might also remember the handwringing about how Microsoft was becoming a monopoly. Microsoft was the juggernaut that could only be taken down with antitrust suits by the federal government. Other companies simply could not compete with such a well-established corporation; the free market was inadequate.

Fast forward to where Microsoft stands today. The once seemingly invincible company has succumbed to the realities of competition and now finds itself in third place on the Nasdaq index.

James B. Stewart writing for The New York Times explains:

The Nasdaq composite that peaked at 5,048.62 on March 10, 2000, in what turned out to be the height of the technology bubble, bears little resemblance to today’s Nasdaq index. Of the top 20 Nasdaq companies by market capitalization in 2000, only four — Microsoft, Cisco Systems, Intel and Qualcomm — remain in the top 20 today. Eight no longer exist as independent companies, most as a result of bankruptcy or acquisition, and several are shadows of their former selves. The current Nasdaq composite index has only about half as many companies as it did in 2000.

“Joseph Schumpeter was spot on when he said capitalism is all about creative destruction,” said Richard Sylla, an economics professor at New York University’s Stern School of Business and a specialist in the history of markets, referring to the Austrian-American economist who described the phenomenon in 1942 in “Capitalism, Socialism and Democracy.”

In the intervening 15 years, a new generation of entrepreneurs, newly public companies and entire industries have emerged and seized the dominant positions in the Nasdaq index even as their predecessors faltered. Apple, now the world’s largest company by market capitalization, barely registered in 2000, and the first iPhone was not announced until 2007. Over a billion smartphones were shipped in 2014.

The chart below which accompanies the article illustrates this creative destruction of the past decade and a half quite clearly.
Capture

What this tells me is that no matter how large these corporations get, they cannot rest on their laurels. They cannot assume that just because consumers like their product(s) more than the competition today that the same will be true tomorrow. How many people use Myspace today as opposed to Facebook?

It’s the creative destruction of the free market – not additional regulations which ultimately allow consumers to have more choices.

Sympathy for Paranoia

cat in the tin foil hat

The moon landing was faked by the U.S. government for propaganda purposes to win the Cold War. The terrorist attacks of 9/11 was actually an inside job as a pretext to go to war. Space aliens landed in Roswell, NM but the government has been covering it up. The Sandy Hook massacre was faked to increase support for new gun control laws; the “victims” were actually actors who are all alive and well today. The Illuminati is the secret entity which actually governs the whole world…

The natural response to these statements is to say “these people are mad barking moonbats” and to keep ourselves as distant as possible from the people making them. Those of us in the liberty movement who want to be taken seriously are very quick to renounce anyone who is within six degrees of Alex Jones or anyone else who states any of the above. It’s difficult enough to be taken seriously about legalizing drugs, the non-aggression principle, free markets, and freedom of association; the last thing we need is to be lumped in with “those people.”

While it is very important to defend the “brand” of the liberty movement, it’s also important to recognize the reasons why people believe some rather nutty things.

[W]hen I say virtually everyone is capable of paranoid thinking, I really do mean virtually everyone, including you, me, and the founding fathers. As the sixties scare about the radical Right demonstrates, it is even possible to be paranoid about paranoids. – Jesse Walker, The United States of Paranoia: A Conspiracy Theory, (p. 24) (Read my book review here)

Once one learns about some of the activities governments been proven to have been involved in, some conspiracy theories no longer seem as outlandish. I used to refer to conspiracy theories and wacky beliefs as “black helicopter” stories and I’m fairly certain that others used the same terminology. Once I learned that black unmarked helicopters were used in the assault by the FBI on the Branch Davidians in Waco, TX,(Napolitano, p.110) I stopped calling such ideas “black helicopter.”

Not everything that sounds crazy is.
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The Minimum Wage Lie

fast-food-workers-strike-may

When “progressives” say “the minimum wage hasn’t kept up with inflation”, they’re lying.

Not shading, the truth, exaggerating, or interpreting things differently… they are flat out lying.

… And what’s more, the ones who made up the lie in the first place, know they’re lying (the rest mostly just parrot what they’ve been told).

What exactly would “keeping up with inflation” mean?

The minimum wage has been $7.25 an hour since 2009.

In 1938, when the federal minimum wage was established, it was $0.25 an hour. In constant dollars (adjusted for inflation) that’s $4.19 as of 2014.

So, not only has the minimum wage kept up with inflation, it’s nearly doubled it.

Ok.. well what about more recently?

Minimum wage 15 years ago in 2000: $5.15, or $7.06 in constant dollars

Minimum wage 20 years ago in 1995: $4.25, or $6.59 in constant dollars.

Minimum wage 25 years ago in 1990: $3.80, or $6.87 in constant dollars.

Minimum wage 30 years ago in 1985: $3.30, or $7.25 in constant dollars.

Funny… that’s exactly what it is today… How shocking.

So, for 30 years, the minimum wage has not only kept up with inflation, for most of that time it’s been ahead of it.

So, how are they lying?

The way “progressives” claim minimum wage hasn’t been “keeping up with inflation”, is by comparing today, with the highest level it has ever been; almost 50 years ago, in 1968, when the minimum wage went to $1.60 an hour ($10.86 in constant dollars).

This was a statistical anomaly.

There’s a long and loathsome tradition of lying with statistical anomalies.

At $1.60 an hour, the minimum wage in 1968 was a huge 20% spike from what it had been just 3 years before in ’65, more than 40% above what it had been in 1960, and nearly double what it had been 12 years before in 1956 when politicians started throwing minimum wage increases faster and bigger (again, all in constant dollar terms. The minimum wage at the beginning of 1956 was about $6.30 in constant dollars)

In constant dollar terms, the minimum wage today, is about the same as it was in 1962 (and as I showed above, 1985).

It just so happens that from 1948 to 1968 we had the single largest wealth expansion over 20 years, seen in the history of the nation (about 5-8% annual growth)… Which then crashed hard starting at the end of ’68.

From 1968 to 1984, the U.S. had 16 years of the worst inflation we ever saw, and the purchasing power of ALL wages fell significantly, as wages failed to come even close to keeping up with inflation (we saw 13.5% inflation in 1980 alone, which is about what we see every 4 years today).

It took until 1988 for real wages to climb back to their 1968 constant dollar level, because we were in a 20 year long inflationary recession, complicated by two oil shocks and a stock market crash (actually a couple, but ’87 was the biggest one since ’29).

However, the minimum wage was boosted significantly in that time period, far more than other wages rose, and stayed above the 1962 water mark until the end of that high inflationary period in 1984, declining slightly until 1992, then spiking and declining again until 1997 etc… etc…

By the by… household income in 1968? appx. $7,700, which is about the same as today in constant dollar terms… About $51,0000 (about 8% more than it was in 1967, at $47k). Which is almost exactly what it was in 1988 as well. Household income peaked in 1999 and 2007 at around $55,000, and troughed in 1975 at around $45,000

Of course, income was on a massive upswing from 1948 to 1968 (and in fact had been on a massive upswing overall since 1896 with the exception of 1929 through 1936). In 1941 household income was about $1500 ($24,000 constant), in 1948 $3,800 ($37,000 constant).

Like I said, it was the single greatest expansion in real income and wealth over a 20 year period, in American history.

1968 was a ridiculous historical anomaly… Not a baseline expectation.

So, From 1964 to 1984, the minimum wage was jacked artificially high (proportionally far above median wage levels), and “progressives” chose to cherry pick the absolute peak in 1968 from that part of the dataset, in order to sell the lie.

A living wage?

As to the minimum wage not being a living wage… No, of course its not. It never was, its not supposed to be, and it never should be.

The minimum wage is intended to be for part time, seasonal workers, entry level workers, and working students.

Only about 4% of all workers earn the minimum wage, and less than 2% of full time workers earn the minimum wage.

Minimum wage is what you pay people whose labor isn’t worth more than that. Otherwise everyone would make minimum wage. But since 98% of full time workers can get more than minimum wage, they do so.

What should the minimum wage be?

Zero.

Wait, won’t everyone become poor suddenly?

No, of course not. Literally 98% of full time workers already get more than minimum wage. If we abolished the minimum wage, most of them wouldn’t suddenly be paid nothing.

Wages should be whatever someone is willing to work for. If you’re willing to work for $1, and someone else isn’t, you get the job. On the other hand, if an employer is offering $10 and no-one is willing to take the job for that, they need to offer $11, or $12, or whatever minimum wage someone is willing to take.

If you don’t want to work for $7.25 an hour, don’t take the job. If nobody offers you more than that, too bad, but that’s all your labor is worth.

If you are willing to work for someone for $7.00, and they’re willing to pay you $7.00, what right does some “progressive” have to tell either of you, that you can’t work for that much?

No-one is “exploiting the workers”, if those workers took the jobs voluntarily, and show up for work voluntarily… If all you can find is a job for less than what you want to work for, you’re not being exploited, THAT’S ALL YOUR LABOR IS WORTH TO THOSE EMPLOYERS.

You may think your labor worth more, but things aren’t worth what you want them to be worth, they’re only worth what someone else is willing to pay for them.

But let’s be generous…

All that said, I don’t think we’ll be able to eliminate the minimum wage any time soon.

So, to those “progressives” who would say “let’s make the minimum wage keep up with inflation”, I agree wholeheartedly… Let’s make it $4.19.

Oh and if you don’t believe me on these numbers, they come from the department of labor, the department of commerce, and the census. If I’m lying to you, it’s with the governments own numbers… the same ones “progressives” are lying to you with. 

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

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