Category Archives: The Welfare State

California Drivers — Treated Like Children, Act Like Children

This morning, driving in to work, I was treated to a royal charlie-foxtrot unlike I’ve seen in a while. In Orange County (for those of you familiar with the area), the traffic signal at the corner of Moulton & El Toro malfunctioned. This is a big intersection, 3 lanes of traffic in all 4 directions, but you’d think that rational adults, entrusted with the responsibility of piloting multi-ton vehicles, would be able to navigate a situation like this.

But not really. It was bedlam. Cars determining which when and how to proceed based more on gut instinct than any sense of order. Nobody having any idea when it was even correct for them to proceed, so the tentative drivers crawling across an intersection and slowing everyone down. The whole process was completely unorganized, and ended up taking us far more time than it should. Maybe more than just a few Californians would be of benefit attending this California dmv traffic school to brush up on road laws.

Now, some of you would suggest that this scene is an indictment of anarchy or small government. After all, without the order imposed by traffic signals, wouldn’t this be occurring every day?

But the answer is no. I’ve seen other parts of the country where traffic signals aren’t as reliable, where there are more stop signs in general, and where things like a protected left-turn-lane don’t all have their own individual signals. You’d be surprised by just how often a left turn accident happens, they’re one of the most prevalent out there. Basically, these are places where drivers are not only trusted with the responsibility of piloting a vehicle, but they are given some additional ability to choose when it is and is not safe to proceed at a light.

Order doesn’t have to be imposed by a traffic light. Order can emerge from patterns of behavior, and eventually become so ingrained that if someone proceeds at a 4-way stop at the “wrong” time, people wonder why he’s such an idiot. In fact, most of society works this way, not as a result of top-down government-imposed order. However, when you have hand-held your citizens through every intersection in the metro area, and suddenly that order breaks down, they haven’t built up their own order and their own patterns of behavior, so it becomes every man for himself. You treat drivers like children, and then wonder why they fall over when the training wheels break.

This is a microcosm of what we see in society. When an area without much government interference undergoes a natural disaster, people step up and step in to help each other. People are used to having societal systems in parallel to those provided by the government, so when a disaster comes that is beyond the scope of the government to handle, they don’t fall apart. Yet when you look at a place with heavy-handed government interference (such as New Orleans), the failure of government and the evacuation of people who might otherwise step in to help cause society itself to break down.

Yet people use the aftermath of Hurricane Katrina in order to argue for more government and against anarchy. They’re arguing that adult-age children, kept in dependence by the government, should suddenly start acting like responsible adults when government breaks down. It just doesn’t work that way. The problem with government today is that it encourages dependence from cradle to grave. That might be fine, if the government were able to deliver on their promises. But government is unreliable, and when you encourage dependence, you shouldn’t act surprised when your subjects can’t act independently.

Demography Is Destiny

“Demography is Destiny”… It’s been a common quote on the political landscape throughout the post war era; often credited (with no primary sources to back it unfortunately) to French mathematician and social scientist/philosopher (and totalitarian socialist to boot – what a combo) Auguste Comte.

Comte, charmingly, also penned “Love as a principle and order as the basis; Progress as the goal” to support his totalitarian socialist views (which was later shortened to “Order & Progress” to become the motto of Brazil – and part of the justification for their death squads). Much more euphonious than “From each to his abilities, to each to his needs” eh.

At any rate, and disregarding the dictatorial delusions of a 19th century Frenchman; there’s a strong point to be made with the statement.

To the extent that human behavior is predictable (and on the macro scale, it can be surprisingly so), or more to the point that societies and subcultures behaviors are predictable; the primary factor in those predictions is demographics.

Of course that is so, because demographics is specifically the study of ones (or ones “group”) position in society; social, economic, religious, political; and how that is likely to effect the actions and decisions of those similarly grouped. In fact, in many ways demography is specifically the study of how people can be broken into groups of (at least somewhat) predictable behavior.

I know personally two demographic experts, who happen to be married to each other; Kim and Connie Du Toit. Connie uses her expertise in determining the best way to train corporate workers on a large scale (like the entire workforce of a fortune 500 company in India); and Kim uses it to design retail store environments (where to locate stores, what merchandise to sell in what stores at what locations, and where to put it in the store) for maximum sales.

So, given that Kim is a demographic expert (and believe me, he is… actually THEY are. They can talk about the subject for hours); the fact that he was gobsmacked by this piece that he linked is somewhat surprising:

Heinsohn is not concerned with the absolute size of populations, but rather with the share of teenagers and young men. If this share becomes too big compared to the total population, we are facing a youth bulge. The problem starts when families begin to produce three, four or more sons. This will cause the sons to fight over access to the positions in society that give power and prestige. Then you will have a lot of boys and young men running around filled with aggression and uncontrollable hormones. And then we shall experience mass killings, until a sufficient number of young men have been eradicated to match society’s ability to provide positions for the survivors.

According to Heinsohn, 80 per cent of world history is about young men in nations with a surplus of sons, creating trouble. This trouble may take many forms — a increase in domestic crime, attempts at coups d’état, revolutions, riots and civil wars. Occasionally, the young commit genocide to secure for themselves the positions that belonged to those they killed. Finally, there is war to conquer new territory, killing the enemy population and replacing it with one’s own.

But, as Heinsohn emphasizes again and again, the unrest and the violent acts caused by youth bulges have nothing to do with famine or unemployment. In his book he describes it as follows: “The dynamic of a youth bulge — it cannot be emphasized too often — is not caused by a lack of food. A younger brother, who may be employed as a stable hand by the first-born son and who may be well fed and perhaps even fat, does not seek food but position, one that can guarantee him recognition, influence and dignity. Not the underweight but rather the potential losers or the déclassé are pushing forward” (p. 21).

And that’s just part of the prelude. The rest, and the analysis itself, will leave you slack-jawed with astonishment, I promise you.

It’s not often I read something which makes me smack my head (figuratively speaking) and exclaim, ”Of course!”, but this analysis managed that quite easily. It’s one of those pieces which grabs all the little loose ends lying around in your brain, and ties them all into a big, tidy knot.

And, if he’s right, we are facing some really interesting times ahead—in a bad sense.

Oh he’s definitely right (Heinsohn that is). Astute China and India watchers have been saying for years “watch out for the demographic bomb”.

China and India both have a vastly disproportionate share of young males to young females due to sex selective abortion and infanticide. Combine that with huge and growing populations, and little opportunity for upward mobility; and it doesn’t take a genius to see trouble on the horizon.

The middle east, which has comparatively few opportunities for position and advancement in comparison to it’s huge population of young males (also due to cultural sex selection, though there is less infanticide and almost no abortion – females are simply not allowed to be active members of society; combined with active neglect and plural marriage, the pool of available women is very small), has been going through this for it’s entire recorded history; and the problem is only accelerating.

There are only two ways to defuse the bomb: The first is to provide more opportunities for status, position, and advancement; the second, to reduce birth rates, especially of males.

America has done both quite successfully, providing consistent year over year growth in excess of it’s population, while bringing birth rates down to replacement levels through organic cultural incentives (not through population control policies, which simply don’t work as intended, in fact creating demographic bombs as above), and allowing relatively moderate immigration (in fact our primary demographic issue in the US is assimilated illegal immigration).

Europe quite frankly has not done either very well (and the mid-east hasn’t done anything at all except get worse). Since the 1970s (after the post war recovery and then economic boom – also largely caused by demographics) Europe has only provided modest opportunities for relatively small percentages of it’s population, while reducing their birth rates far too drastically.

This population implosion has required Europe to import unskilled labor in massive amounts; thus resulting in nearly the same problems that exist in the mid-east: large numbers of low status young men, with little opportunity for advancement, little attachment to the political and social fabric of the society in which they live (or rather which they live outside of but conterminous with), and a strong incentive towards violence.

Europe cannot decrease their birth rate (it’s already well below the replacement rate), in fact they need to INCREASE it (some governments are already offering incentives to do so – they don’t work well either); and if they stopped importing labor they would have a total economic collapse; which would simply accelerate the descent into violence that has already begun in France, Sweden, Germany, Denmark, and the Netherlands.

They are desperately trying to stave off the problem with their welfare state, but they don’t understand, it’s not about hungry people, it’s about people who feel like they have no way of getting ahead. People who have little self worth and a burning desire to feel important; and no way of doing so.

Those people are rife for recruitment into radical religious and political sects; because they give an inflated sense of self worth, and accomplishment; as well as giving people with excess of energy and aggression (the definition of angry young men) goals that they can expend that aggression on.

Oh, and I should note, Americas OTHER major demographic problem is also an excess of young men in an area of little opportunity, with a lot of excess anger and energy, and a lack of self worth and self respect: we call them gangs.

In many ways you can see much of the radicalism of the middle east as one giant street gang, sucking up the angry young men and using their energy to do violence on others.

The only way that Europe is going to solve this problem is by allowing opportunities for advancement and growth to (excuse the bad reference it’s sure to create in your head) explode. The only way they could do that would be to drastically reduce their regulatory and tax burdens: to remove the negative incentives and allow the positive incentives to grow and take over.

…but they won’t do that.

Europes choice is economic freedom, or bloody revolution; and yet somehow they seem to think the only way to avoid the blood is through LESS freedom, thus they are accelerating the problem.

They are married to an ideology of government control, and nannyism. This is ultimately an ideology that is incompatible with the aggressive side of human nature, and one that will eventually explode (and not very far off unless I miss my guess terribly).

They believe that somehow, making sure everyone is fed and has a place to sleep, will make everything alright. Of course they do this by taxing everyone into penury; at the same time regulating the productive down to nearly nothing, and reducing competition … it’s more “humane” after all… which eliminates jobs or reduces them to meaningless time serving. Combined with legislating low work hours, minimum wages, and protectionist markets…

They’ve eliminated both real work, and competition almost entirely. In the process they’ve eliminated all of the opportunities for people to advance socially and economically; and to EARN self worth and self respect.

People need to have some way to earn self respect; it’s not something that can be given to them. In fact attempting to do so makes the problem worse. If you’re given everything, you value nothing, including yourself.

People don’t just want to be warm and safe and fed and “equal”… oh I know, for some it’s enough, for a while anyway; but man is a competitive and aggressive beast by nature, and blood will eventually out… people want to strive, and excel, and fight, and win.

You can’t win, if they don’t let you play.

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

Despots Say the Darndest Things

While most of us learn from the words of those who we admire, it is also possible to learn from those we detest. Here is a collection of quotes from some of the vilest despots in human history. From these quotes, perhaps we can gain some insights from their thought processes. You may also find the words of some of these despots eerily similar to those of some who are running for president or seeking other high office. Others seem to expose the motives behind those who seek to regulate the media, guns, education, and etc. I encourage anyone who reads this post to respond with a quote from an American politician whose quote has a similar meaning of those here (or exposes their motives).

Education/Indoctrination

“Give me four years to teach the children and the seed I have sown will never be uprooted.”
Vladimir Lenin

“Education is a weapon whose effects depend on who holds it in his hands and at whom it is aimed.”
Joseph Stalin

“He alone, who owns the youth, gains the future.”
Adolf Hitler

“The universities are available only to those who share my revolutionary beliefs.”
Fidel Castro

Censorship

“Ideas are far more powerful than guns. We don’t allow our enemies to have guns, why should we allow them to have ideas?”
Joseph Stalin

“When one makes a Revolution, one cannot mark time; one must always go forward – or go back. He who now talks about the “freedom of the press” goes backward, and halts our headlong course towards Socialism.”
Vladimir Lenin

Propaganda

“By the skillful and sustained use of propaganda, one can make a people see even heaven as hell or an extremely wretched life as paradise.”
Adolf Hitler

“A lie told often enough becomes the truth.”
Vladimir Lenin

Political Strategy

“There are no morals in politics; there is only expedience. A scoundrel may be of use to us just because he is a scoundrel.”
Vladimir Lenin

“How fortunate for leaders that men do not think.”
Adolf Hitler

“Democracy is the road to socialism.”
Karl Marx

“Democracy is indispensable to socialism.”
Vladimir Lenin

Individualism vs. Collectivism

“The day of individual happiness has passed.”
Adolf Hitler

“All our lives we fought against exalting the individual, against the elevation of the single person, and long ago we were over and done with the business of a hero, and here it comes up again: the glorification of one personality. This is not good at all. I am just like everybody else.”
Vladimir Lenin

Guns

“Political power grows out of the barrel of a gun.”
Mao Tse-Tung

“We don’t let them have ideas. Why would we let them have guns?”
Joseph Stalin

“One man with a gun can control 100 without one.”
Vladimir Lenin

“The only real power comes out of a long rifle.”
Joseph Stalin

Life, Liberty, and Property

“I think that a man should not live beyond the age when he begins to deteriorate, when the flame that lighted the brightest moment of his life has weakened.”
Fidel Castro

“It is true that liberty is precious – so precious that it must be rationed.”
Vladimir Lenin

“We must confront the privileged elite who have destroyed a large part of the world.”
Hugo Chavez

Government’s Creative Accounting

By one number, they had a $248B deficit. If you start applying the accounting standards normal companies use, though… It’s a different story:

The federal government recorded a $1.3 trillion loss last year – far more than the official $248 billion deficit – when corporate-style accounting standards are used, a USA TODAY analysis shows.

The loss reflects a continued deterioration in the finances of Social Security and government retirement programs for civil servants and military personnel. The loss – equal to $11,434 per household – is more than Americans paid in income taxes in 2006.

Think about that for a moment… Just let that number sink in. As you’re struggling to make ends meet, pay your rent or mortgage, your bills, your car payment, the government is losing $1000 a month: and you and your family are going to have to pick up that tab.

When a corporation cooks their books, they do it for a reason; it makes their shareholders believe they’re on better footing than they actually are. If their shareholders knew the truth, the stock price would drop like a rock as people head for the exits. When government cooks their books, they do it for the same reason; it makes their citizens believer they’re on better footing than they actually are. If the citizens knew the truth, they’d vote those thieving scoundrels out of office in a second., however, things may be changing with the ASC 606 changes.

Where do we end up with decades of government lies? At a point where we simply cannot continue the charade. Like Enron, Worldcom, and the rest, eventually it’ll come crashing down.

Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later. This is where sap accounting software comes into play. This will sort everything out automatically. Even transactions made overseas in countries like Australia through accountants similar to this Melbourne accountant will need to be considered for as soon as possible.

The federal government does not follow the rule, so promises for Social Security and Medicare don’t show up when the government reports its financial condition.

Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.

You think government can tax their way out of this mess? Not a chance. This is happening in the U.S. if you are living in Canada there may be a way to help you with your tax audits, you can get it at a company similar to Faris CPA.

You think government has the will to cut spending? I think we’ve seen the answer to that one.

What other options are left? Rampant money printing, or collapse of the government. Or the former followed by the latter.

That’s it. The writing is on the wall. And you, as an ordinary citizen, will be getting screwed all the way down.

Hillary Clinton Meets Karl Marx

Hillary Clinton is promoting a new idea called “shared responsibility”:

MANCHESTER, N.H. — Presidential hopeful Hillary Rodham Clinton outlined a broad economic vision Tuesday, saying it’s time to replace an “on your own” society with one based on shared responsibility and prosperity.

The Democratic senator said what the Bush administration touts as an “ownership society” really is an “on your own” society that has widened the gap between rich and poor.

“I prefer a ‘we’re all in it together’ society,” she said. “I believe our government can once again work for all Americans. It can promote the great American tradition of opportunity for all and special privileges for none.”

That means pairing growth with fairness, she said, to ensure that the middle-class succeeds in the global economy, not just corporate CEOs.

“There is no greater force for economic growth than free markets. But markets work best with rules that promote our values, protect our workers and give all people a chance to succeed,” she said. “Fairness doesn’t just happen. It requires the right government policies.”

Or, as a man once said, from each according to his ability, to each according to his needs.

Thanks but no thanks Hillary.

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