Socialism Explained
Sunday, October 27, 2013
Sunday, September 29, 2013
No Free Market in NZ or the USA
You hear socialists a lot these days crowing that free market capitalism is failing and that countries such as the US and New Zealand, supposedly bastions of economic freedom, are in trouble.
The truth is that, New Zealand in particular, has never had a totally free market. When Roger Douglas began his reforms in the 1980's he only saved New Zealand from bankruptcy and eliminated favouritism by the removal of subsidies and import restrictions. Before those reforms the restrictions on New Zealander's freedoms would have made Communist countries proud. Remember that equitable 66 percent top tax rate, having to get government permission to send more than $5 overseas, waiting 6 weeks for a telephone to be installed. Ahhhh those were the days.
The then Prime Minister David Lange's "cup of tea" break from reforms proposed by Douglas has left New Zealand in a hiatus ever since. Douglas only completed a quarter of what was needed. Subsequent governments have lacked the "balls" to do what was needed to follow through on Douglas's bold ideas. National in particular, whose founding principles closely match the Douglas themes, has tinkered and gradually moved left of it's core principles.
New Zealand is a mixed economy, not a free market. It has elements of a free market mixed with government control of areas they should have no business in. recently the New Zealand government has embarked on a partial sale of some state assets. Of course the statists oppose this. And I do too. But only because it does not go far enough. They should sell the lot.
Like wise in the US a free market does not exist. Arguably the US government has even more of a control over the money and liberties of the American people. The mess the US economic system is in is the result of too much government control not too little. But their sharemarket is at all time highs I hear you say!
And that's fine for those lucky enough to own shares. for those with cash savings and getting almost zero percent it doesn't feel so fair. The banks have been pilloried for risky lending yet it is the Federal reserve which has encouraged this with it's low (no) interest rate policies. Now the Fed has painted itself into a corner and is afraid to remove the economic stimulus it has created for fear of sending the economy into a death spiral. it's the same as if you keeping feeding a drug user drugs to keep him happy. Eventually you will kill him but if you remove the stimulants the resulting chaos and withdrawal symptoms may be just as bad.
The Federal Reserve caused the 2007 financial crisis, then propped the economy up again. They just haven't learnt that they are the cause not the solution. The end game is coming and it will be messy. Very messy. The bubble the Fed has created has been on the go for decades and has been responsible for directing money into more and unproductive areas. One by one those asset classes have fallen. First was the dot.com bubble, then the real estate bubble, the bank/financial crisis. The only asset class left was Gold and even that has topped ( perhaps temporarily).
What the Federal Reserve has accomplished through it's artificial low interest rates is a transfer of risk to the stock market, and a devaluation of the US currency, thereby making all Americans poorer overall. It has propped up big business and the banks through its crony capitalism.
This is not a freemarket. If anything the US in particular is moving further and further away from the free land its founding fathers set up. It's socialism and protectionism at its worst.US banks have been deemed too big to fail at the expense of the ordinary American.
When it all ends the anti freedom socialist will claim the death of capitalism and the free market. In reality it will be the death of state control and the nanny state . I hope it will be seen for that so that America can return to its roots and the liberty its constitution is meant to protect.
In New Zealand we are likely to elect a Labour/Greens government at the next election in 2014. The current National government has lost touch with the mood of the people and more importantly with what it stands for. When a populist government loses touch with what's popular and has no principles it has little left to elect it.
The truth is that, New Zealand in particular, has never had a totally free market. When Roger Douglas began his reforms in the 1980's he only saved New Zealand from bankruptcy and eliminated favouritism by the removal of subsidies and import restrictions. Before those reforms the restrictions on New Zealander's freedoms would have made Communist countries proud. Remember that equitable 66 percent top tax rate, having to get government permission to send more than $5 overseas, waiting 6 weeks for a telephone to be installed. Ahhhh those were the days.
The then Prime Minister David Lange's "cup of tea" break from reforms proposed by Douglas has left New Zealand in a hiatus ever since. Douglas only completed a quarter of what was needed. Subsequent governments have lacked the "balls" to do what was needed to follow through on Douglas's bold ideas. National in particular, whose founding principles closely match the Douglas themes, has tinkered and gradually moved left of it's core principles.
New Zealand is a mixed economy, not a free market. It has elements of a free market mixed with government control of areas they should have no business in. recently the New Zealand government has embarked on a partial sale of some state assets. Of course the statists oppose this. And I do too. But only because it does not go far enough. They should sell the lot.
Like wise in the US a free market does not exist. Arguably the US government has even more of a control over the money and liberties of the American people. The mess the US economic system is in is the result of too much government control not too little. But their sharemarket is at all time highs I hear you say!
And that's fine for those lucky enough to own shares. for those with cash savings and getting almost zero percent it doesn't feel so fair. The banks have been pilloried for risky lending yet it is the Federal reserve which has encouraged this with it's low (no) interest rate policies. Now the Fed has painted itself into a corner and is afraid to remove the economic stimulus it has created for fear of sending the economy into a death spiral. it's the same as if you keeping feeding a drug user drugs to keep him happy. Eventually you will kill him but if you remove the stimulants the resulting chaos and withdrawal symptoms may be just as bad.
The Federal Reserve caused the 2007 financial crisis, then propped the economy up again. They just haven't learnt that they are the cause not the solution. The end game is coming and it will be messy. Very messy. The bubble the Fed has created has been on the go for decades and has been responsible for directing money into more and unproductive areas. One by one those asset classes have fallen. First was the dot.com bubble, then the real estate bubble, the bank/financial crisis. The only asset class left was Gold and even that has topped ( perhaps temporarily).
What the Federal Reserve has accomplished through it's artificial low interest rates is a transfer of risk to the stock market, and a devaluation of the US currency, thereby making all Americans poorer overall. It has propped up big business and the banks through its crony capitalism.
This is not a freemarket. If anything the US in particular is moving further and further away from the free land its founding fathers set up. It's socialism and protectionism at its worst.US banks have been deemed too big to fail at the expense of the ordinary American.
When it all ends the anti freedom socialist will claim the death of capitalism and the free market. In reality it will be the death of state control and the nanny state . I hope it will be seen for that so that America can return to its roots and the liberty its constitution is meant to protect.
In New Zealand we are likely to elect a Labour/Greens government at the next election in 2014. The current National government has lost touch with the mood of the people and more importantly with what it stands for. When a populist government loses touch with what's popular and has no principles it has little left to elect it.
Wednesday, September 18, 2013
Teachers and Unions Feel Threatened By Charter schools
The real reason teachers, unions and the anti-freedom parties of our political spectrum are so vehemently opposed to the establishment of Charter schools is not because of any concern for the students involved, but because they fell threatened. Threatened that their one size fits all world of state run education might be challenged, that their way is not the only way.
It is the parents who should be free to decide how their children are educated. How would maori language schools have developed if we had the view that teaching by English was the only way.
The possibility of Charter school teachers and their pupils being ostracised by unions and state run schools is appalling, ignorant and discriminatory. Surely if these schools work, and there is a mountain of evidence that they can, in transitioning children with special learning requirements, not catered for by the state, then that should be applauded.
Instead opponents are taking the normal socialist anti-freedom stance of being anti everything which might mean people choosing for themselves.
More power to the Charter schools and their challenging of the norm I say.
It is the parents who should be free to decide how their children are educated. How would maori language schools have developed if we had the view that teaching by English was the only way.
The possibility of Charter school teachers and their pupils being ostracised by unions and state run schools is appalling, ignorant and discriminatory. Surely if these schools work, and there is a mountain of evidence that they can, in transitioning children with special learning requirements, not catered for by the state, then that should be applauded.
Instead opponents are taking the normal socialist anti-freedom stance of being anti everything which might mean people choosing for themselves.
More power to the Charter schools and their challenging of the norm I say.
Sunday, April 28, 2013
Labour , Greens Power Play a Warning to National
The Labour and Greens announcement they will reform the New Zealand electricity market if elected is a warning shot to National and the New Zealand public.
Leaving aside the merits of their communist plans for the moment, the bigger issue is what their announcement says about both National policy and strategy overall, and the potential two-headed (possibly more) monster which would be inflicted upon New Zealand should National fail to win back power in 2014.
The National party has long been a shadow of it's own policies. It pretends to be the champion of the free market, an upholder of individual rights and freedoms - and I am sure there are may of its members who think that way too. However, when push comes to shove the National party tries to be too many things to too many people. Its policies are watered down versions of what their party stands for, or in some cases diametrically opposed to them. This of course is what happens when pursuit of power is your main objective and your principles are left in tatters.
So the warning I'm speaking of is that this electricity reform signals a new strategy for Labour. And its not just cozying up to the Greens. Labour knows it may not win the next election if it campaign solely on the policies it put forward last time. Aligning itself with the Greens gives it extra power. But that's still not it.
Labour has decided to attack National where it is weakest, and that's where National doesn't completely ( or doesn't at all) live up to its own principals. Because the National hierarchy is too afraid espouse their party's true philosophy of individual freedom.
The electricity market is an area where National has been lazy. Like so many areas of the New Zealand economy and society it has never been a truly free market. Socialists see the electricity market in New Zealand as being a free market failure. But it has never been totally deregulated.
So Labour and the Greens saw an opportunity to be totally socialist where National was only partly upholding state control. Labour and Greens do state control and anti freedom better so they are going to attack those areas National isn't prepared to apply its own philosophy. This was a test case for the Labour Greens coalition. They will now use the same tactic in Education, Health, Technology, racism,liquor laws, drug laws, and anywhere else can wipe the floor with National over National's socialist part socialist policies.
Leaving aside the merits of their communist plans for the moment, the bigger issue is what their announcement says about both National policy and strategy overall, and the potential two-headed (possibly more) monster which would be inflicted upon New Zealand should National fail to win back power in 2014.
The National party has long been a shadow of it's own policies. It pretends to be the champion of the free market, an upholder of individual rights and freedoms - and I am sure there are may of its members who think that way too. However, when push comes to shove the National party tries to be too many things to too many people. Its policies are watered down versions of what their party stands for, or in some cases diametrically opposed to them. This of course is what happens when pursuit of power is your main objective and your principles are left in tatters.
So the warning I'm speaking of is that this electricity reform signals a new strategy for Labour. And its not just cozying up to the Greens. Labour knows it may not win the next election if it campaign solely on the policies it put forward last time. Aligning itself with the Greens gives it extra power. But that's still not it.
Labour has decided to attack National where it is weakest, and that's where National doesn't completely ( or doesn't at all) live up to its own principals. Because the National hierarchy is too afraid espouse their party's true philosophy of individual freedom.
The electricity market is an area where National has been lazy. Like so many areas of the New Zealand economy and society it has never been a truly free market. Socialists see the electricity market in New Zealand as being a free market failure. But it has never been totally deregulated.
So Labour and the Greens saw an opportunity to be totally socialist where National was only partly upholding state control. Labour and Greens do state control and anti freedom better so they are going to attack those areas National isn't prepared to apply its own philosophy. This was a test case for the Labour Greens coalition. They will now use the same tactic in Education, Health, Technology, racism,liquor laws, drug laws, and anywhere else can wipe the floor with National over National's socialist part socialist policies.
Monday, April 1, 2013
Freedom Wishlist for for 2013
Freedom Wishlist for 2013
That world governments finally realise it is irresponsible meddling and interference which has created the world debt crisis and that only reverting to truly free markets will redress the balance. The Federal reserve has been mostly responsible for the misallocation of resources and investment by printing fiat money and encouraging non-productive speculation. It has only to look at its actions over the past two decades particularly to see the reason for the massive creation of debt which is now only starting to unravel
Punishment for victimless crimes are removed from our statute books. Ok well maybe let's just start with one or two. They won't all be removed at once under the current governance.
New Zealand develops a constitution based on the American one which defends Kiwi's rights to life, liberty and the pursuit of happiness. One that treats all New Zealanders as equal under the law.
Flat tax rates become accepted as a fairer tax than progressive taxes. People who earn more already pay more in dollar terms if all are on the same tax rate.Progressive rates are just another name for income redistribution ie socialism.
A party which truly represents the ideas of libertarianism emerges in New Zealand to contest the next election, initially performing the role that the dying ACT party only partially performed in keeping the National Party true to its own principles.
Subscribe to:
Posts (Atom)