Saturday, October 8, 2011
Great Video From Stefan Molyneux
Here's a great video from Stefan Molyneux dealing with the Occupy Wall Street demands.
Friday, October 7, 2011
Short Message to Ron Paul Supporters
Before I begin, I would just like to say that I generally view Ron Paul favorably, but I do have some minor quibbles with some of his doctrines. For example, I do not agree with his view on immigration. I believe that just like free trade, there should be free immigration of people. It does not hurt the economy; rather, it enhances the division of labor.
If I am not mistaken, Dr. Paul holds this view of border control because he believes that the immigrants generally support a larger welfare state. This may be true, but I would equate this sort of logic to that of people who are in favor of alcoholic prohibition. Sure, some people might drive drunk or commit violent acts against others while intoxicated, but this does not mean that all alcohol drinkers behave this way. Prohibition also leads to a black market on goods and services. Naturally a state would try to combat these black markets, ultimately requiring resources which could have been spent more efficiently by the free-market. Aside from all of this, I still respect Ron Paul, but I digress and this is an argument for another day.
Recently I have come across some Ron Paul supporters who feel he should not be promoted with signs at events like Occupy Wall Street. I do respect their decision not to do so, but here is my take on the situation.
Some people who hold this view believe that the negative media attention Paul would receive from these actions would damage potential voter appeal among the right. Well, let’s face it, the media already mostly either ignores Ron Paul or spews lies about him already. The people who watch and believe the views they see in major media probably wouldn’t support him now anyway. Adding one more thing like a few individuals supporting Paul at Occupy Wall Street probably wouldn’t change much among voters. If anything, this might appeal to some liberals who might become interested in Paul’s ideas.
Even if Ron Paul does not win the nomination for presidency, his campaign is still a success. Many people have woken up to and are interested in Austrian Economics and Libertarian ideas thanks in part largely to Ron Paul. I can attest to this because Paul was my wake up call.
If I am not mistaken, Dr. Paul holds this view of border control because he believes that the immigrants generally support a larger welfare state. This may be true, but I would equate this sort of logic to that of people who are in favor of alcoholic prohibition. Sure, some people might drive drunk or commit violent acts against others while intoxicated, but this does not mean that all alcohol drinkers behave this way. Prohibition also leads to a black market on goods and services. Naturally a state would try to combat these black markets, ultimately requiring resources which could have been spent more efficiently by the free-market. Aside from all of this, I still respect Ron Paul, but I digress and this is an argument for another day.
Recently I have come across some Ron Paul supporters who feel he should not be promoted with signs at events like Occupy Wall Street. I do respect their decision not to do so, but here is my take on the situation.
Some people who hold this view believe that the negative media attention Paul would receive from these actions would damage potential voter appeal among the right. Well, let’s face it, the media already mostly either ignores Ron Paul or spews lies about him already. The people who watch and believe the views they see in major media probably wouldn’t support him now anyway. Adding one more thing like a few individuals supporting Paul at Occupy Wall Street probably wouldn’t change much among voters. If anything, this might appeal to some liberals who might become interested in Paul’s ideas.
Even if Ron Paul does not win the nomination for presidency, his campaign is still a success. Many people have woken up to and are interested in Austrian Economics and Libertarian ideas thanks in part largely to Ron Paul. I can attest to this because Paul was my wake up call.
Tuesday, May 17, 2011
Thoughts on the TSA
It seems as though most people are not fans of the TSA, but many of them believe that the government should run some short of security at airports.
Saying the TSA is needed at airports is like saying that without the United States Post Office, first class mail would not get delivered. Just because the government holds a monopoly on certain things does not mean that they are the only ones who are capable to do a certain job.
Both the TSA and the Post Office are widely known for their inefficiency and heavy bureaucratization which ultimately causes these problems. For example, some people chose to fly less often due to the TSA's procedures and people generally dread a trip to the post office for the long lines. Since they have no incentive to create a better environment for patrons, we are coerced into following their rules. On the contrary, if a company like FedEX initiated a policy a majority of its customers were unhappy with, they would either have to repeal it or face heavy losses.
I believe the solution to the TSA problem would be to have actual airlines provide security at airports or to hire private security firms. Seeing as the airline industry wouldn't want its customers dead or to lose a plane, as it would ultimately harm their business, they would have to find a way to offer a safe and pleasant experience.
Also, if customers were not happy with a particular airline’s way of handling security, they would always be free to choose another airline they feel does a better job
Saying the TSA is needed at airports is like saying that without the United States Post Office, first class mail would not get delivered. Just because the government holds a monopoly on certain things does not mean that they are the only ones who are capable to do a certain job.
Both the TSA and the Post Office are widely known for their inefficiency and heavy bureaucratization which ultimately causes these problems. For example, some people chose to fly less often due to the TSA's procedures and people generally dread a trip to the post office for the long lines. Since they have no incentive to create a better environment for patrons, we are coerced into following their rules. On the contrary, if a company like FedEX initiated a policy a majority of its customers were unhappy with, they would either have to repeal it or face heavy losses.
I believe the solution to the TSA problem would be to have actual airlines provide security at airports or to hire private security firms. Seeing as the airline industry wouldn't want its customers dead or to lose a plane, as it would ultimately harm their business, they would have to find a way to offer a safe and pleasant experience.
Also, if customers were not happy with a particular airline’s way of handling security, they would always be free to choose another airline they feel does a better job
Thursday, April 28, 2011
Thoughts On Rising Gas Prices
On Speculators
As of late, many seem to be blaming speculators and oil companies for extremely high gas prices, but are these valid reasons and is nothing else effecting prices? While some are contempt with blaming greedy capitalists for our energy woes, they fail to take other aspects into consideration.
Contrary to popular belief, speculators actually have an important role in the market. The economist Ludwig von Mises would call them "the driving force of the market". Speculators buy where and when they suspect prices are too low and sell where and when they suspect prices are too high. When these speculators try to sell, the competition of the speculators brings the prices down. Fundamentally, speculators insure that whatever they are selling will be available and at a predictable price. Without them, markets would be much more chaotic.
Speculators are an important cog in the division of labor machine. For example, a cotton producer might be an expert at cultivating his product, but he might not be the best forecaster of future prices. Thus, the cotton producer might not know how many pounds of cotton to produce one year as opposed to another. On the other hand, a speculator might not have the slightest clue about how to produce cotton, but he or she might be an expert at analyzing data and sources. The speculator can buy futures contracts from the cotton producer at a guaranteed price — limiting the producer's need to guess what the price will be. A speculator can always sell his or her futures contracts if he or she believes the future price is too high, or buy more contracts if he or she believes the future is underpriced.
More on speculators in the video below:
On The Increased Monetary Base
The increased monetary base and its resulting inflation is most likely the main cause for the high oil prices. On top of that; the current unrest in the Middle East, a growing demand of oil by countries such as China and India, as well as increased consumption by the United States Military surely affects the price as well. With most of the money created by quantitative easing yet to reach circulation, the problem will only get worse before it gets better.
As of late, many seem to be blaming speculators and oil companies for extremely high gas prices, but are these valid reasons and is nothing else effecting prices? While some are contempt with blaming greedy capitalists for our energy woes, they fail to take other aspects into consideration.
Contrary to popular belief, speculators actually have an important role in the market. The economist Ludwig von Mises would call them "the driving force of the market". Speculators buy where and when they suspect prices are too low and sell where and when they suspect prices are too high. When these speculators try to sell, the competition of the speculators brings the prices down. Fundamentally, speculators insure that whatever they are selling will be available and at a predictable price. Without them, markets would be much more chaotic.
Speculators are an important cog in the division of labor machine. For example, a cotton producer might be an expert at cultivating his product, but he might not be the best forecaster of future prices. Thus, the cotton producer might not know how many pounds of cotton to produce one year as opposed to another. On the other hand, a speculator might not have the slightest clue about how to produce cotton, but he or she might be an expert at analyzing data and sources. The speculator can buy futures contracts from the cotton producer at a guaranteed price — limiting the producer's need to guess what the price will be. A speculator can always sell his or her futures contracts if he or she believes the future price is too high, or buy more contracts if he or she believes the future is underpriced.
More on speculators in the video below:
On The Increased Monetary Base
As the graph above shows, the monetary base has increased considerably in the last few years, rising from about $800 billion to nearly $2.6 trillion. This can mostly be attributed to the Federal Reserve artificially propping up the economy with rounds of quantitative easing (QE and QE2). During quantitative easing the central bank in essence creates money out of "thin air" and buys up government bonds with it from commercial banks and other institutions. Of course, this additional fiat money will eventually get circulated, causing inflation. This ultimately leads to the dollar's weakened purchasing power and destroys savings.
Conclusion
The increased monetary base and its resulting inflation is most likely the main cause for the high oil prices. On top of that; the current unrest in the Middle East, a growing demand of oil by countries such as China and India, as well as increased consumption by the United States Military surely affects the price as well. With most of the money created by quantitative easing yet to reach circulation, the problem will only get worse before it gets better.
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