Tag: Capitalism

  • ‘Story of Stuff’ video attempts to shame us into depression

    A video claiming that American-style capitalism is ruining the earth is making its way into our nation’s schools as “a sleeper hit in classrooms across the nation,” according to a story on the front page of the New York Times in May.

    It’s produced by one Annie Leonard, described in the Times as “a former Greenpeace employee and an independent lecturer.”

    It’s a depressing video to watch. For example, extraction is equal to “natural resource exploitation” which is the same as “trashing the planet.” Leonard says “We are running out of resources. We are using too much stuff. … We are trashing the place so fast, we are undermining the ability of people to live here. … We’re using more than our share.”

    But then I realized that many of the claims are exaggerated or false. Here’s an example of one of the many dubious claims Leonard makes: “Where I live, in the United States, we have less than 4% of our original forests left.” While this may be true, it’s misleading. She wants you to believe that after logging companies cut trees, they leave the land bare. The reality is the companies replant and manage the forests. So yes, they’re not the original forests. They might even be better.

    She leaves out the fact that these forests provided raw materials for heating our homes, for building those houses, and for printing books and newspapers.

    During production, “we use energy to mix toxic chemicals in with the natural resources to make toxic contaminated products.” Somehow this leads to whole wasting of communities. Also, the amount of pollution admitted to by industry is probably less than actual emissions, because well, you know how industry is.

    Then there’s distribution. It’s a problem because big box stores don’t pay their employees well and they skimp on health insurance as much as they can.

    She wonders how a radio can be sold for just $4.99. The answer, of course, is exploitation. She didn’t pay for the radio. Others did, by being exploited. (An example is workers paying for their own health insurance.)

    She makes more dubious claims, such as 99% of the “stuff” that is “run through the system” is “trashed” within six months.

    It’s all a plan, Leonard says, to make consumption of consumer goods the cornerstone of our lives. It’s accomplished through planned obsolescence and perceived obsolescence. That’s where we’re persuaded to throw out stuff that is still useful, but not fashionable.

    The progress in computers is criticized because what changes in a new computer is just a small chip in the corner. I think she’s referring to the processor, which leaves out all the advances in other parts of a computer, such as memory, storage, and communications. She learned this at “a workshop called ‘The Literal and Figurative Story of the Computer’ at the Environmental Grantmakers Association’s annual retreat in Mohonk New York in September 2005.”

    Advertising, she says, is designed to make us unhappy with what we have, so that we go shopping. That leads to a spending treadmill.

    “Yes, yes, yes, we should all recycle,” but it’s not enough, according to Leonard. Even if we could recycle 100% of our household waste, it wouldn’t be enough because of all the waste generated upstream in the production process. “70 garbage cans of waste were made upstream just to make the junk in that one garbage can you put out on the curb.” Really?

    Here’s what the Heritage Foundation’s blog had to say about this video: “The Story of Stuff highlights the very extreme left’s Greenpeace view of America. Essentially it tells the story of how America is not a nation to be proud of, and in fact, your child should be ashamed for living in it.”

    This video is really a masterful piece of propaganda, and I mean that in the worse sense of the word — an impartial presentation of information meant to influence. The stereotyped images used in the drawings that make up the film are sure to impress young children.

    The video’s anticapitalist message fails to recognize all the good that capitalism has done to raise the standard of living in the countries where it has been allowed to flourish. The grim picture that Leonard paints is largely a result of exaggeration and falsehoods. To the extent that harm has come to the environment in America, things are getting better. We in America, because of the tremendous wealth that capitalism has provided, have the luxury of considering the impact of our lives on the environment. In countries that don’t have freedom and capitalism, concern for mundane things like daily bread and heat take precedence over the environment.

    If you decide to watch this video, I recommend as an antidote reading Some Fundamental Insights Into the Benevolent Nature of Capitalism by George Reisman, in which he states: “Capitalism is a system of progressively rising real wages, the shortening of hours, and the improvement of working conditions.”

    Another good essay to read is Everything You Love You Owe to Capitalism by Lew Rockwell.

  • Seven principles of sound public policy

    Lawrence W. Reed, now the president of the Foundation for Economic Education, has a short booklet available that can help citizens analyze whether a government policy is sound.

    Titled Seven Principles of Sound Public Policy, it’s a comfortably short pamphlet of just 11 pages. But it’s full of a lot of wisdom.

    The seven principles are these:

    • Free people are not equal, and equal people are not free.
    • What belongs to you, you tend to take care of;
      what belongs to no one or everyone tends to fall into disrepair.

    • Sound policy requires that we consider long-run effects and all people, not simply short-run effects and a few people.
    • If you encourage something, you get more of it; if you discourage something, you get less of it.
    • Nobody spends somebody else’s money as carefully as he spends his own.
    • Government has nothing to give anybody except what it first takes from somebody, and a government that’s big enough to give you everything you want is big enough to take away everything you’ve got.
    • Liberty makes all the difference in the world.

    In the booklet, Reed expands on each principle.

    Click on Seven Principles of Sound Public Policy to read the booklet. There’s a pdf version available for downloading and printing.

  • Sedgwick County land development will harm private sector

    Remarks delivered at the May 20, 2009 meeting of the Board of Sedgwick County Commissioners.

    As Sedgwick County considers whether to enter the industrial land development business, there are many considerations that must be weighed before proceeding. My greatest concern is the impact that government land development will have on the private sector in Wichita.

    Information prepared by Sedgwick County states that there will be tracts as small as 18 acres, and that the county will be able to subdivide the tracts.

    I realize that it is the county’s intent to focus on large companies as tenants in this proposed industrial park. This is to correct an alleged “market failure,” in that the private sector is not providing the product the county believes should be provided.

    But as time goes on, the pressure to “do something” with the land will increase. Then, the county will be competing directly with existing private sector land development.

    Government has advantages that the private sector doesn’t. It has access to free capital. It can give away land to companies. It can forgive future taxes. It can offer free infrastructure.

    The effect of this will be to drive the private sector out of the new industrial real estate market.

    It might seem like with government having all the advantages, why not turn over all development to it? The answer is that government doesn’t have something the private sector has: profits and losses. It is the profit and loss system that lets us know whether resources are being used efficiently. The profit and loss system drives the inefficient producers out of the market and tells us who are the effective producers.

    Without the ability to calculate profit, government doesn’t know if it is being efficient.

    Government land development will also have the effect of harming existing development, too. As existing tenants see the perks heaped on companies that locate in the government’s industrial park, they’ll want the same concessions from their landlords, too.

    If the county proceeds with this industrial park, we need some way to minimize the harm to existing private sector development. We might, for example, limit buildings in the new park to a certain minimum size. We could restrict tenants to companies from outside our metropolitan area. We’ll also need to do something to help our existing industrial companies feel like they’re appreciated.

    An important and easy thing to do is to limit the size of the proposed industrial park to something much smaller than 808 acres.

    If the county decides we need to enter the land development business, let’s try to limit the harm to our existing private sector that’s in the same business.

  • New audio version of “I, Pencil” makes case for freedom, not government planning

    The Foundation for Economic Education has released a new audio version of the booklet I, Pencil. Written by FEE’s founder Leonard E. Read and first published in 1958, its message proclaiming the importance of freedom has not diminished with the passage of time.

    This audio recording, which you can listen to on your computer or Ipod, is just just short of 15 minutes in length. But it this short span it makes a compelling case for freedom instead of government control and planning.

    In Wichita, we have a mayor, city council, and business leaders that are steering us down the path of government control instead of freedom. We locally — and nationally too — need to heed the lesson of I, Pencil:

    I, Pencil, am a complex combination of miracles: a tree, zinc, copper, graphite, and so on. But to these miracles which manifest themselves in Nature an even more extraordinary miracle has been added: the configuration of creative human energies — millions of tiny know-hows configurating naturally and spontaneously in response to human necessity and desire and in the absence of any human master-minding! Since only God can make a tree, I insist that only God could make me. Man can no more direct these millions of know-hows to bring me into being than he can put molecules together to create a tree.

    The above is what I meant when writing, “If you can become aware of the miraculousness which I symbolize, you can help save the freedom mankind is so unhappily losing.” For, if one is aware that these know-hows will naturally, yes, automatically, arrange themselves into creative and productive patterns in response to human necessity and demand — that is, in the absence of governmental or any other coercive master-minding — then one will possess an absolutely essential ingredient for freedom: a faith in free people. Freedom is impossible without this faith.

    Listen to the recording by clicking on I, Pencil. Or, read it by clicking on I, Pencil.

  • Opinion line makes me wonder again

    Sometimes the Wichita Eagle Opinion Line makes me wonder. Here’s something from today’s collection:

    “Wanda Sykes should be given a $400 million contract and radio airtime opposite Rush Limbaugh. Let the free market and capitalism work, and we’ll see which one America really supports.”

    The writer wants the free market to work. At the same time, the writer seems to be saying that someone should give the subject Wanda Sykes $400 million. (I think that’s the same amount as Limbaugh’s recent contract.)

    Where I think this writer is confused is that Limbaugh was not given anything. He earns his pay, as far as I know. No one is forced to listen to or sponsor his show. Should the tastes of his listeners change, his show would fold.

    The writer doesn’t say this, but I suspect the point is that the government should give Sykes this contract, giving her the chance to compete with Limbaugh. This has nothing to do with free markets and capitalism. It is just the opposite.

    In reality, the fact that Sykes has no such contract is evidence of the free market working just perfectly.

  • Here’s what the Wichita Chamber of Commerce could do

    Today’s Wichita Eagle has a story wondering if economic conditions have affected local chambers of commerce. (Has economy affected area chambers?)

    In particular, Wichita Metro Chamber of Commerce CEO Bryan Derreberry mentioned measures aimed at retaining members.

    The context of this, besides the current economic conditions, is the shift of the local chamber of commerce away from promoting free markets, limited government, and capitalism. But today, as Stephen Moore wrote two years ago in the Wall Street Journal, “chambers of commerce deploy their financial resources and lobbying clout to expand the taxing, spending and regulatory authorities of government.”

    In other words, local chambers now support big-government crony capitalism. See The Decline of Local Chambers of Commerce.

    Recently I asked Derreberry a question based on Moore’s assertion. In an noncommittal response, he disputed that this transformation has taken place in the Wichita Chamber. (See Wichita Chamber of Commerce makes case for interventionism.)

    An illustration of this shift is last year’s election for the third district Sedgwick County Commission seat. One candidate, Karl Peterjohn, had a long and proven record of supporting free markets, limited government, and capitalism. His opponent had no such record, and in fact, had recently presided over a large tax increase in the small town she served as mayor.

    So what did the Wichita Chamber do? Support the proven fiscal conservative?

    No. Its political action committee spent some $19,000 — 44% of all it spent on campaigns — on Peterjohn’s opponent.

    What should the Chamber do? Abandon its present course of supporting government interventionism. Instead, support policies that will generate prosperity for everyone, which are free markets, limited government, and capitalism.

  • 80 Years Later: Parallels Between 1929 and 2009

    Austrian economist Walter Block delivers a lecture that draws the parallels and differences between now and the Great Depression.

    Block lays blame for the current mess squarely on the Federal Reserve System.

    “Hoover was no free-enterpriser,” Block says. Neither was George W. Bush, or Ronald Reagan, for that matter.

  • Articles of Interest

    Capitalism, CFL bulbs, green indoctrination, bailout constitutionality, Facebook, Twitter

    ‘The Road to Serfdom’ revisited: Markets display uncertainty over future of capitalism itself (Scott S. Powell in the Washington Times) Discussion of how government interventionism in the economy is not helping. “President Eisenhower called it ‘creeping socialism.’ Nobel Prize winner Friedrich von Hayek called it ‘The Road to Serfdom.’”

    Do New Bulbs Save Energy if They Don’t Work? (New York Times) Many customers are not happy with compact fluorescent light bulbs. Short life for the expensive bulbs is a common irritation.

    ‘Green Hell’ Coming Soon to a Life Like Yours (Human Events) A review of a new book that merits reading. “Be prepared the next time your child comes home from school with some nice ‘green’ project or attempts to lecture you about how you ‘should’ be doing more ‘sustainable’ activities to ‘save’ the Earth. You will be ready to confront teachers, political leaders, neighbors, and annoying aunts with the astounding new book by Steve Milloy titled Green Hell: How Environmentalists Plan to Control Your Life and What You Can Do to Stop Them.”

    Bailing Out of the Constitution (George Will in the Washington Post) Is the Emergency Economic Stabilization Act of 2008 — that’s the $700 billion bailout of banks from last year — constitutional? Perhaps it isn’t, argues Will. It has to do with the Vesting Clause of Article I says, “All legislative powers herein granted shall be vested in” Congress.

    Is Facebook Growing Up Too Fast? (New York Times) Facebook will soon have 200 million members. All are not happy, evidence being the recent controversy over a redesign of some of its most important aspects. There’s also the “coolness” factor: can kids like a social network that their parents are now using?

    When Stars Twitter, a Ghost May Be Lurking (New York Times) “In many cases, celebrities and their handlers have turned to outside writers — ghost Twitterers, if you will — who keep fans updated on the latest twists and turns, often in the star’s own voice. Because Twitter is seen as an intimate link between celebrities and their fans, many performers are not willing to divulge the help they use to put their thoughts into cyberspace. … It is not only celebrities who are forced to look to a team to produce real-time commentary on daily activities; politicians like Ron Paul have assigned staff members to create Twitter posts and Facebook personas. Candidate Barack Obama, as well as President Obama, has a social-networking team to keep his Twitter feed tweeting.”

  • Free to Choose

    Milton Friedman’s best-selling book Free to Choose: A Personal Statement is based on a television series by the same name. This book, and the television episodes, are important works that explain the importance of economic and political freedom.

    You can view the television episodes at IdeaChannel.tv by clicking here.