The Five Stages of Counterfeiting

http://www.lewrockwell.com/north/north550.html

A truly serious counterfeiting operation would in fact plan to do something very similar to what Mr. Heath said a counterfeiter would not do – just not in a single step. The goal of a serious counterfeiting operation would be to persuade the public to use its money rather than the official bills it originally copied when it designed its original fake plates. Its goal would be the replacement of the original official bills with its own bills, making them official in the eyes of the public.

This has been the primary goal of central bankers ever since the creation of the Bank of England in 1694

Gary North's essays are always very detailed and thorough, if a bit lengthy. This article covers a very broad scope of economic history and describes the process of converting generations of people to treasure a currency once thought to be worthless. It covers precious metal debasement, fractional reserve banking, fiat money, central banks, and inflation - all in the context of a larger move to legitimize a counterfeit currency.

Economists on the Loose

http://www.CapMag.com/article.asp?ID=4991

First, let's establish a working definition of free markets; it's really simple. Free markets are simply millions upon millions of individual decision-makers, engaged in peaceable, voluntary exchange pursuing what they see in their best interests. People who denounce the free market and voluntary exchange, and are for control and coercion, believe they have more intelligence and superior wisdom to the masses. What's more, they believe they've been ordained to forcibly impose that wisdom on the rest of us. Of course, they have what they consider good reasons for doing so, but every tyrant that has ever existed has had what he believed were good reasons for restricting the liberty of others.

Tyrants are against the free market because it implies voluntary exchange. Tyrants do not trust that people acting voluntarily will do what the tyrant thinks they ought to do. Therefore, they want to replace the market with economic planning, or as Professor Blinder calls it — industrial policy.

A short and simple essay on the basic philosophy of the free market economy vs. central planning/industrial policy. I love Walter Williams ability to concisely demonstrate the mindset that inspires both the capitalist and socialist movements.

Where Michael Moore is Wrong

http://www.realclearpolitics.com/articles/2007/07/where_michael_moore_is_wrong.html

America's medical system has problems, but profit is the least of it. Government mandates, overregulation and a tax code that pushes employer-paid health insurance prevent the free market from performing its efficient miracles. Six out of seven health-care dollars are spent by third parties. That kills the market. Patients rarely shop around, and doctors rarely compete on price or service.

Private competitors innovate or die. Government workers do what they did last year. That's why I want the private sector to provide my health care. Pursuit of profit will give us our best medicines and medical devices.

I'll pay you $1,000 if you can name one thing government does more efficiently than the private sector.

Third in a series on articles by John Stossel on his interaction with Michael Moore. In it he disputes more claims of how government does a better job of providing services than the private sector. Moore's popular belief that certain services shouldn't be "tainted" by profit is deceptive - and attractive to those who don't understand what profit truly is.

Bill Gates Needs an Econ Course

http://www.realclearpolitics.com/articles/2007/06/bill_gates_needs_an_econ_cours.html

At Harvard, Gates said, "We can make market forces work better for the poor if we can develop a more creative capitalism -- if we can stretch the reach of market forces so that more people can make a profit, or at least make a living, serving people who are suffering from the worst inequities."

He misses the point. Gates faults the free market for problems caused by governments. What constricts the reach of the free market is the state. Gates seems oblivious to all the ways that governments here and abroad cripple enterprise. In poor countries, corrupt bureaucracies smother entrepreneurship while enriching cronies. The lack of formal property rights and stable law keeps average people from accumulating capital. So the poor stay poor. That's what causes "scarcity of clean water" and kills "children who die from diseases we can cure."

John Stossel takes Gates to task for confusing the root causes of poverty. Once again, the only-somewhat-informed public debate looks at free markets, looks at suffering, and then determines that the free market has failed, and therefore the State should intervene (or more accurately, since it has been intervening already, it should improve its intervention).

Gates' statement at the end of this article, "We also can press governments around the world to spend taxpayer money in ways that better reflect the values of the people who pay the taxes" is especially telling. The idea that somehow problems would be solved if we just did the wrong thing in a better way is futile. Ignoring the underlying truth that individuals know best how to spend their money does the poor a disservice. The arrogant assumption that the poor - or anyone - would be better off if a benevolent dictator would take their resources and then wisely dispose of them for the greatest benefit of their former owner is a gross deception. I'm baffled that such an idea is so widely accepted...

Cartels: Economists and Central Bankers

http://www.lewrockwell.com/north/north546.html

Economics as a science is seen by its practitioners as having progressed by identifying more and more institutions as governed by personal self-interest. Yet when economists come to banking and education, they refuse to extend this traditional analysis. They either remain silent or invoke the mantra of public interest.

You will search in vain for a chapter on education as an oligopoly within the context of tax-funding, laws mandating education up to age 16, and government licensing of college-accreditation agencies. Somehow, economics textbook authors skip over any analytical discussion of this, the largest sector of the American economy.

Gary North asks some pointed questions in this essay, where he reveals the lack of critical examination on the part of economists when it comes to things like the Federal Reserve. He outlines the obvious contradictions and deceptions being practiced that for some reason, no one ever bothers to question (don't ask, don't tell).

The Romantic Illusion of Universal Health Care

I found all these short essays on CapMag on the same day - so it seemed appropriate to bundle them together and share them here to counter the ignorance I hear every day about Universal Health Care. It's gotten to where the phrase is used as a litmus test - you're either for it or against it (like the abortion issue). Even more perversely, the public consensus has judged that UHC is inherently good (who could possibly be against caring for people?), it is inevitable (everyone else is doing it!), and it is only being held up by selfish, heartless, greedy people (if you're not in favor of the Patriot Act, you must be a traitor!).

Universal Health Care Freedom on the Fourth of July
http://capmag.com/article.asp?ID=4983

The talk about a "right" to health care really means that no one should have the right to any health care at all except through the government. As we celebrate the Fourth of July this year we must remember that our right to manage our own health care as we see fit is as vital to our liberty as freedom of speech or freedom of the press.

Why Health Insurance Should Not Be Universal
http://capmag.com/article.asp?ID=4984

Power-hungry politicians feed off the irrationality of the citizenry. If the citizenry were more rational, there would be no place in the political system for politicians who value power over freedom and justice. Today's problems with medical care are the fault of the people who want the results of capitalism while instructing their leaders to install more socialism.

All Power to the Post Office
http://capmag.com/article.asp?ID=4981

During a recent interview, a talk radio host told me that all private health insurance should be eliminated in order to give us all a reason to work together to make sure the government runs a good health care system.
A better analogy would be that conditions in our prisons might be expected to improve if we were all required to live in them. Socialists and some Liberals would find this level of government-enforced uniformity to be a noble sacrifice to which all citizens must submit. Many Conservatives would reluctantly agree—but suggest a voucher system that would allow us each to select the prison cell of our choice.

Health Care's A Mess--So What's the Solution?
http://capmag.com/article.asp?ID=4980

It's better to consider the possibility that the market didn't fail us in medical care...but it was never allowed to function. If you don't want more of the same, which universal government coverage and control will provide, then consider something radically different: freedom in health care.

Freedom and Benevolence Go Together

http://www.realclearpolitics.com/articles/2007/07/freedom_and_benevolence_go_tog.html

I interviewed Michael Moore recently for an upcoming "20/20" special on health care. It's refreshing to interview a leftist who proudly admits he's a leftist. He told me that government should provide "food care" as well as health care and that big government would work if only the right people were in charge...

Moore followed up with a religious lesson. "What the nuns told me is true: We will be judged by how we treat the least among us. And that in order to be accepted into heaven, we're gonna be asked a series of questions. When I was hungry, did you feed me? When I was homeless, did you give me shelter? And when I was sick, did you take care of me?"

I'm not a theologian, but I do know that when people are ordered by the government to be charitable, it's not virtuous; it's compelled. Why would anyone get into heaven because he pays taxes under threat of imprisonment? Moral action is freely chosen action.

This is textbook socialist thinking - first, that government control is the best solution to the society's ills, when lead by the "right people"; second, that because it is right to do something, people should therefore be forced to do so. While people will argue about the results (charity doesn't cover everyone / civilized society should be like this / etc.), they ignore the moral contradiction of being compelled to do what's right. The first attack on those who stand on principle and advocate individual freedom and responsibility is that such people are cold-hearted and unsympathetic of other's suffering. They champion the "charity" of their forced programs and claim the lover of liberty has no love for his fellow man. Unfortunately, many people believe this rhetoric and end up believing that to advocate freedom is to be against charity. Nothing could be farther from the truth...

Time for Another Revolution

http://www.mises.org/story/2633

In 1913 the relationship between the State and Society was reversed. Areas which had heretofore been considered within the private domain, sacred ground so to speak, were now invaded by the arrogant and enriched State, and within thirty years the individual was squeezed into a corner so small that even his soul lacked elbow room. His case was far worse than it was in 1776; in exchange for an income tax King George III would have conceded every point made against him by the colonists, and might even have done penance for past sins. But, such was the character of these Americans that they challenged him to battle because he presumed to impose a miserable tax on tea. What they won at Yorktown was lost by their offspring one hundred and thirty-two years later.

Were the disposition of the current crop of Americans comparable to that of their forbears, a new revolution, to regain the profit of the first one, would be in order. There is far more justification for it now than there was in 1776. But, people do not do what reason dictates; they do what their disposition impels them to do. And the American disposition of the 1950s is flaccidly placid, obsequious and completely without a sense of freedom; it has been molded into that condition by the proceeds of the Sixteenth Amendment. We are Americans geographically, not in the tradition. In the circumstances, a return to the Constitutional immunities must wait for a miracle.

An excellent essay on the need for a revolution - as great a need as existed at the birth of our nation. Too many people are ignorant of the Constitution - its purpose, its principles, and even its weaknesses and why they exist. It all sounds too anachronistic to be taken seriously today. Defenders of the Constitution are seen as blind nostalgic cultists, out of touch with modernity. That's easy to believe when you don't understand the philosophical and moral challenges of our day, let alone the historical context (and the amazing similarities).

Frank outlines the foundations of the Constitution, the social struggle, the loss of liberty, and the slow erosion of protections against the powers of the State. The entire book can be downloaded for free here.

The Myth of the Rational Voter

http://www.economist.com/world/na/displaystory.cfm?story_id=9340166

Instead, he identifies four biases that prompt voters systematically to demand policies that make them worse off. First, people do not understand how the pursuit of private profits often yields public benefits: they have an anti-market bias. Second, they underestimate the benefits of interactions with foreigners: they have an anti-foreign bias. Third, they equate prosperity with employment rather than production: Mr Caplan calls this the “make-work bias”. Finally, they tend to think economic conditions are worse than they are, a bias towards pessimism.

The make-work bias is best illustrated by a story, perhaps apocryphal, of an economist who visits China under Mao Zedong. He sees hundreds of workers building a dam with shovels. He asks: “Why don't they use a mechanical digger?” “That would put people out of work,” replies the foreman. “Oh,” says the economist, “I thought you were making a dam. If it's jobs you want, take away their shovels and give them spoons.” For an individual, the make-work bias makes some sense. He prospers if he has a job, and may lose his health insurance if he is laid off. For the nation as a whole, however, what matters is not whether people have jobs, but how they do them. The more people produce, the greater the general prosperity.

A good essay exposing the myth that democracy always results in the best choice for all involved (wisdom of crowds, etc.) He outlines four factors that cause voters to act irrationally. In a democracy, he claims, rational politicians give the voters what they (irrationally) want.

Live and Let Live

http://jewishworldreview.com/0707/stossel070507.php3

That same week I happened to interview filmmaker Michael Moore for "20/20." Moore wants government to monopolize health care. His new film, "Sicko," argues that Canada and France approach paradise because their governments provide health care and more. This brought him standing ovations in Cannes.

"But government is force," I said to him. He was incredulous.
Michael Moore: Why do you see it as force?
Me: Because government takes money with force from people and gives it to others.
Moore: No, it doesn't, actually. The government is of, by, and for the people. The people elect the government, and the people determine whether or not they'll allow the government to collect taxes from them.

Is it really necessary to explain that government is force? When the Salvation Army asks you for a donation, you are free to say no, and you suffer no consequences. When the U.S. government demands a tax return and a check on April 15, you can't say no and go about your business. You comply or face fines or imprisonment. Yes, you get to vote for candidates periodically. But having an infinitesimal say in who will coerce you doesn't change that fact that they are using force.

John Stossel is very good at identifying the principles that most people miss when discussing the latest hot-button issues. The universal health care debate is full of misdirection and illusion, and a lot of passionate people championing popular causes while ignoring the foundation of their philosophy. Michael Moore's total absence of awareness about the true nature of any collectivist policy leaves me dumbfounded (yet not totally suprised). When people like him are making sweeping statements in the media that ignore principles, I get worried - it means the public debate is fueled by ignorance.