Propensity

"If any behavior needs to be reined in, it should be the propensity of people to use the political system to take other people's money."

Jeffrey A. Singer

The word "propensity" is used a lot by economists. It means to have a tendency or inclination toward something.

Is Dr. Singer suggesting that there are people who are inclined toward using a political system to "earn" money for themselves? Money that they did not earn? Money they would have to obtain from somebody else?

Yes! They are out there! You KNOW they are out there!

And they think they deserve it. It is owed to them. And it is a right.

We have a family acquaintance who is quite able to work, but spends hours and hours every day searching down local gubment offices and officials who will listen to her explain why she cannot work. She understands every trick it takes to get these various offices to provide "aid" for her. She knows which person most favorable to listen to her works at which office; the days of the week that person is in that office; when that person is of a certain mood and most willing to listen - it goes on and on!

With that kind of creativity and energy she could be out there, self employed and productive, and not living like the pauper she does. It is more important to her to get a few free dollars here and there then it is to make many more dollars and improve her lot. Now THAT is a propensity! From my perspective, she acts like a drug addict.

But what does Dr. Singer suggest? That this behavior needs to be reined in! How is that done?

BY REMOVING THE SOURCE OF THE DRUG! BY REMOVING THE, TO QUOTE MR. JEFFERSON'S DECLARATION OF INDEPENDENCE, "SWARMS OF OFFICERS TO HARASS OUR PEOPLE AND EAT OUT [OUR] SUBSTANCE..."

Compassion is not how many people are served by these various "offices" but by how few people feel the need for them! Less is more.

The Worship Of Force

"The worship of the state is the worship of force. There is no more dangerous menace to civilization than a government of incompetent, corrupt, or vile men. The worst evils which mankind ever had to endure were inflicted by bad governments. The state can be and has often been in the course of history the main source of mischief and disaster."

Ludwig von Mises (1881-1973)

Unknown when this was said, but it is as true now as then, or ever!

Gubments killed more people in the 20th century than anything other than disease. And many gubments killed their own people, not only those of other countries with which they were at war. Many gubments were at war with their own citizens!

And the real problem when gubment "officials" think THEY are the state, and should be worshiped, is that their self-perceived power needs to grow and change into more, and then more. And, as Dr. von Mises says, they become vile.

When a sweeping bill, an all-controlling bill, a totally-dominating bill like "health" care is enacted, it comes with its first puny bureaucracies attached. I have heard that the recent "health" care bill has over 200 bureaucracies already built in. They will need to grow. More bureaucracies will need to be attached.

And total worship will be required or we will NOT participate.

Those who deny their worship will be put away. HISTORY HAS NEVER, EVER, EVER BEEN DIFFERENT.

Think this through. Reading the above von Mises quote, does anyone think all those "officials" will be competent, incorruptible and pure? Please. Like the song says, "meet the new boss, same as the old boss." Except this new boss has bigger, more vicious teeth, is more dominant, can do permanent harm and is lying from the start. But we had to pass the bill in order to find out what was in it... That was said by someone who DEMANDS worship.

Don't think otherwise.

It would really, really behoove all of us to read the lyrics to this "The Who" song:

"We Won't Get Fooled Again"

The "Cleaning Lady"

Our family goes on only one vacation a year that lasts longer than 3 days. Sometimes we go to Virginia Beach. This year we went to the same place we always go. It is a boutique hotel with only about 30 rooms. Everything faces the beach. We like the patio suites on the lower level.

For myself, I only go for three days. That is my annual vacation. Never more. This year I needed my own room because my daughter brought a friend. Unfortunately, when I arrived they had accidentally given out my room! The only thing left was a patio suite, which they gave me at the room price! Big bummer. It's kind of weird, but very fun, to have my own room!

When I arrived about 8am (I left home at 0330) I asked when I could check in. "Oh, the 'cleaning lady' is doing your room now. You can get in when she's done."

I asked if she had a name. "Um, (thinking) Denise, I think."

As I approached my room, Denise was coming out.

"Is this your room, sir?"

I could already smell how clean it was! I said yes, and, "Thank you Denise."

Her very bright eyes lit right up. "Well, you're welcome, and if you need anything I can get it for you."

Wow, an eagle, not a duck! What's a duck? If you ask anybody anything - at the airport, post office, department store, well, you know - what do they say? That they have to ask somebody and they go behind a door. What's behind that door? A DUCK POND! What's in the duck pond? Ducks, none of which have an answer for you.

Denise is no duck. I could see that in her eyes.

I moved in, found the family, and mentioned how clean my room was. My wife said, "You should find out Denise's story."

So I grabbed Denise later. "I hear you are going to school."

She lit up again. "Yes. I put my three kids through school and now it's time for me. I'm studying Hotel Management! I take four classes a trimester. This time, though, I have math and really don't like math."

In two conversations I found out that - she is 52 years old, she has a B+ average, will finish in two more trimesters and is doing it all alone. Her husband left when she was pregnant and has not been heard from since. I told her that when she finishes she needs to walk into the Hilton or Marriott and tell them she is ready to work!

And that it's time for her to make some money and enjoy herself.

She agreed. She wants no help from anywhere. She says, "I can pay for it and I will. People say I should go here and go there for people to give me a check. I don't want that hook. I'm no fish." She also told me that her boss at this hotel did not want her to go to school! No wonder. She is not a duck. He likes that. He doesn't want to lose her. And he will!

I THINK SHE SHOULD OPEN HER OWN HOTEL. AND I WILL PATRONIZE IT!

The bald eagle is probably my favorite animal. Eagles do not flock. You find them one by one. Eagles use their brains and instincts to provide for and take care of their own. Eagles are fierce. Eagles are independent and strong. Eagles see far. Eagles rely on themselves. Eagles soar.

Denise is no "cleaning lady." Denise is an eagle. I like meeting eagles. I have little patience for ducks.

There are too many ducks in the world.

I left the eagle a nice tip. Godspeed, Denise.

Not An Instrument Of Restraint

"The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government -- lest it come to dominate our lives and interests."

Patrick Henry (1736-1799)

Do these words not ring true?

Those words were said by a rising star, but, essentially, an unknown lawyer from a little-known county in what would eventually become the Commonwealth of Virginia.

Patrick Henry was Virginia's first governor!

I collect antique books. In my collection is a Patrick Henry biography written by a contemporary, William Wirt, and published in 1818. It is in excellent condition! So much so I can read it!

Written before "revisionist" history, it is probably a very good account of who this man was. He is remembered for his "give me liberty, or give me death" speech before the Continental Congress on 23 March 1775. Those are the last lines of the speech. You should read the whole speech! Would that such a man was about now!

These are inspiring words. He basically said, "Let's bring on the war with England if that's what it takes to forge our freedom!"

And now we find ourselves embroiled in this massive, truly massive, take over of our lives by people who think, "We the statists. Of the statists, for the statists and by the statists!"

Do you think Patrick Henry, or any of the firebrand Founding Fathers, would stand for what the gubment wants to bend us (force us) into accepting as proper gubment behavior and control? They truly believed in "WE THE PEOPLE."

The United States Constitution was written to limit the reach of gubment into the lives of WE THE PEOPLE, and NOT to limit the freedoms of WE THE PEOPLE for the purposes those in the gubment think they should do.

I SUBMIT THAT NONE, THAT IS NONE, OF THE FOUNDING FATHERS WOULD STAND FOR WHAT IS BEING FOISTED UPON THE AMERICAN PEOPLE TODAY BY AN ALL-ENCOMPASSING, ALL-ENCROACHING AND INCREASINGLY ALL-POWERFUL GUBMENT.

The Best Guarantee Of Freedom

"As the consumer is the public in general, without distinction of rank or fortune, the free market is the most obvious expression of the sovereignty of the people and the best guarantee of democracy."

Faustino Ballvé (1887-1959)

Free markets are the best guarantee of freedom period!

Who is Faustino Ballvé? An interesting economic thinker! He was educated in the 30's in Spain and England, returning to Mexico City to practice law.

He was invited to, and attended, a seminar offered by an Austrian economist named Ludwig von Mises. So impressed by the information in that seminar he began a correspondence with Dr. von Mises. In those correspondences he compared what he had been taught in school with what von Mises was preaching.

WHAT HE HAD BEEN TAUGHT DID NOT JIBE WITH AUSTRIAN ECONOMICS! Surprise, surprise, surprise.

His life was changed. He says this "sparked a new energy" in him. So what did he do? He wrote a book, an economics text book, published in 1956. It had a massive impact on Latin American economic policies. It is only 129 pages and 10 chapters. This is what it covers:

What is Economics About?
The Market
The Role of the Entrepreneur
Capital, Labor, and Wages
Money and Credit
Monopoly, Crises, and Unemployment
International Trade
Nationalism and Socialism
The Controlled Economy
What Economics Is Not About

Translated into English in 1965, it is exceptionally readable and understandable. I HIGHLY RECOMMEND IT!

It's thesis? Free markets are the best guarantee of freedom... period!

The Little Yellow Hen (The Little Red Hen Revisited)

Probably one of the wisest micro and macro economic stories ever written is "The Little Red Hen." You have probably read it! If you have not read it recently, do so, and have your economic thinking cap on. It is of Russian origin, pre-communist era of course, and is most instructive. If you do read it again, you will see how to get out of the current economic mess that is deepening. But I digress!

I am revisiting that story today, with "The Little Yellow Hen."

The players:

The Little Yellow Hen

The Spoiled Princess

The Hard-working Teenager

The Benevolent Capitalist/Entrepreneur

One day The Little Yellow Hen wanted to use her new oven to bake some banana nut bread. She wanted help.

So she asked The Spoiled Princess.

"I can't. I'm napping."

She asked The Hard-working Teenager.

"I can't. I'm doing homework." The Little Yellow Hen noticed that The Hard-working Teenager was holding the TV remote, but decided not to pursue the point in favor of peace in the land.

She called through the house for The Benevolent Capitalist/Entrepreneur. But he was no where to be found. He was not home, in favor of being in the market applying and multiplying his talents for a pecuniary return for his labors, called profit.

So The Little Yellow Hen began to gather materials to make the banana nut bread. She wanted help.

So she asked The Spoiled Princess.

"I can't. I'm still napping." And The Spoiled Princess turned over.

She asked The Hard-working Teenager.

"I can't. I'm still doing homework." And she flipped the channel. The Little Yellow Hen was upset by this, but wisely decided not to pursue the point in favor of peace in the land.

She knew not to call for The Benevolent Capitalist/Entrepreneur as she knew he was still in the market applying and multiplying his talents for a pecuniary return for his labors, called profit.

Having mixed the materials into a fragrant, delicious batter, she wanted to put it into cooking pans to bake it into banana nut bread. She wanted help.

So she asked The Spoiled Princess.

"I can't. After having licked the nut crumbs you spilled onto the kitchen floor when you were dicing them, I am very tired and I need another nap."

So she asked The Hard-working Teenager.

"I can't. My favorite show isn't finished, um, I mean, I am not quite done with my homework." The Little Yellow Hen was upset by this, but wisely decided not to pursue it in favor of peace in the land.

And of course, she knew not to call for The Benevolent Capitalist/Entrepreneur as she knew he was still in the market applying and multiplying his talents for a pecuniary return for his labors. He works a lot and despite sometimes feeling alone in her work, and in her stylish, well appointed and large kingdom, she understands and is grateful for his willingness to work so hard.

Well, the banana nut bread was baked. It needed to cool. Just then The Benevolent Capitalist/Entrepreneur returned to the stylish, well-appointed and large kingdom. He smelled the banana nut bread and was made glad.

The Little Yellow Hen asked, "I realize that nobody helped me in any way to make this banana nut bread, but who would like to help me to eat it? I am not sure anybody deserves even one slice."

But everyone disagreed with The Little Yellow Hen.

The Spoiled Princess said, "I helped you constantly during the process with instant janitorial services, cleaning as you worked. I also provided early warning of people at the door and door greeter services that exceed even that of a WalMart store. And even now, I am laying at your feet assuming the prettiest receive pose I can muster! I deserve a piece of the banana nut bread for all my work."

The Hard-working Teenager said, "I helped you constantly during the process by doing my homework. I am used to doing homework with the TV in my face and music playing into my ears. And you know I have gotten good grades all year, very good actually, that I might attend the special academic program at the high school next year. I do that so that one day I can afford to slam your butt into a home when you get old so I do not have to change your diapers. I deserve a piece of the banana nut bread for all my hard work."

The Benevolent Capitalist/Entrepreneur said, "I helped you constantly during the process by putting myself into the market and applying and multiplying my talents for pecuniary return for my labors. With that return for the risk of my many investments of time, talent and energy, I have been able to provide the means of production for all aspects of the banana nut bread. All of the capital that went into the nut bread, except for the many abilities of The Little Yellow Hen, and the labor required to employ that capital, was my responsibility and I met those needs. I deserve a piece of the banana nut bread."

The Little Yellow Hen agreed. How could she argue with such effort!

And she put the banana nut bread on the counter to cool.

Somehow while the banana nut bread was cooling a slice was removed. The Little Yellow Hen did not like that, but nobody knew how it could possibly have happened.

The Benevolent Capitalist/Entrepreneur suggested it might have been a ghost.

I think he was right. He is, after all, very familiar with that ghost...

The moral of the story? If the gubment would get the h**l out of the way of the capitalist/entrepreneurs in the market, they could, and would, do more of what they do best, creating more opportunity and employment in the process. Crushing and endless regulation, employment benefit rules, profit disincentives, prohibitive taxes, favors and benefits for politically-aligned union thugs at the expense of the rest of us, taking over businesses, licensing, general uncertainty with what the gubment wants to do next, market-entry restrictions and a host of other market-killing activities make it hard for business people (capitalists and entrepreneurs) to employ other people, much less their own talents.

The gubment CANNOT create jobs, but it can create an environment which encourages private-sector job growth by getting out of the way! Let's hope for change in that regard.

The End.

So, What Ever Happened To Roebuck?

So, what happened to Roebuck?

Of the famous Sears, Roebuck & Company.

Richard Warren Sears, on the left, made a deal with a watch retailer to accept a scam consignment of watches at a lower price. He then made a second deal with the wholesaler, netted $5000 on his first transaction, and started the R.W. Sears Watch Company in Chicago.

Putting an ad in the paper for a watchmaker, only one person answered the ad - Alvah Curtis Roebuck.

And a partnership was born and in 1893 they co-founded Sears, Roebuck and Company, including a mail-order catalog selling only watches. Sears was 30 years old, and Roebuck 29.

Only two years later, bored with the business, Roebuck asked Sears to buy him out for $20,000. Sears complied. His company, and catalog, expanded. By 1897 the catalog was 500 pages and sold everything, including houses! Retiring in 1908 due to failing health, Sears passed away in 1914. He was only 50 years old.

And Roebuck? He semi-retired to Florida (before air conditioning) and used his money to finance and begin two businesses. He also served as president of the Emerson Typewriter Company, inventing an improved typewriter called "The Woodstock." After financial losses in the stock market crash of 1929 he returned to Chicago.

In 1934 a Sears store manager asked him to make a public appearance at his store. It was such a success and so many people showed up, that the Sears, Roebuck & Company hired him to make public appearances all over the country. He was then employed as a corporate historian. The world was introduced to Roebuck!

And free enterprise? Alvah Roebuck did many different things and always seemed to do what he enjoyed. He was free to begin and manage businesses, employ others and be employed by others. He enjoyed a long, happy and successful life. He was able to come back from adversity and make a great life.

HE WAS FREE TO BE WHAT HE WANTED TO BE AND DO WHAT HE WANTED TO DO.

Once when asked about his ex-partner's great wealth as compared to his own modest wealth, he replied, "He's dead. Me? I never felt better." He lived until 1948 to the age of 84!