Mr Chávez of Venezuela continues his path towards communism. The latest move is a nationalization of the local rice operations of US company Cargill Inc. (WSJ) It’s hard to tell whether the line is already crossed from socialism to totalitarian communism but the idea of military ensured price controls gives a hint.
Glommy
Is Reaganism dead? We have been told from various left wing media that is the case. Tax cuts only makes the wealthy more wealthy. The cure for a recession is government spending and to make sure the right people gain from the upcoming prosperity, the new president blesses the people with “new change”. New change that’s remarkably close to old fashioned socialism agenda. New jobs, but not jobs that are needed by the people and paid for by private transactions, rather jobs created in the public sector needed for some higher means only understood by the new administration.
Is the thoughts of Milton Friedman dead? Is Neo-Keynesianism the right path for an advanced economy? Was Marx right? How much of what you earn should you keep for yourself? The western governments have expanded exponentially through the 20:th century and somewhere along the road we began coming close to paying more in taxes than we could keep of what was our private income. When I trade my labour for a fair amount of cash, then I should give a large piece of that money to someone else? What for? A fleet of new hybrid cars?
No, there are no “new times” that calls for socialistic measures or other Barackian change. Freedom and capitalism are as needed as ever. Freedom still leads to prosperity. Mr Obama; tear down that wall of counterproductive deadweight stimulus wastage.
Glommy
So, President Obama obviously prefers governmental spending over more pro private consumption fiscal stimulus. He puts a lot in stakes with this package worth over $ 800 bn, though it should inject money and demand in the economic system and take care of some of Americas excess supply.
Though the left usually emphasise the supposedly larger multiplicators (rise in GDP, per dollar of stimulus) in government spending rather than tax reliefs, the disadvantages are clear and unjust. Not only does Obamas package lack the positive supply-side effects of tax reliefs, the package contains money to social welfare and unemployment benefits sure to reduce the incentives to work or contribute.
The financing of this is another problem. The national debt/equity ratio, so to say, could look better and is now in the same level of debt/GDP as Germany.
The best stimulus package there is, can only be the simple tax cut financed by a reduction of the public sector. That´s the action that stimulates the economy, has positive effects on aggregate supply and private savings. But best of all it isn’t financed by stolen money.
The rest is up to the Fed. If this does not work, a negative interest rate may do the trick. A wonderful thought, isn´t it? The ultimate monetary stimulus and absolutely not impossible. Discount rates of 0,05 % has been seen from the Fed lately.
/Glommy
In 2006, both the State of Israel and the Palestinian Authority went to the polls. The contrast between the results of those two elections help illustrate why we, two years later, find ourselves in an even worse position than we did then and the likely result of today’s Israeli election.
In Israel, the election was preceded by the founding of Kadima. In act of political courage, Ariel Sharon split from the right-wing Likud partyt to create a new political force. Sharon was joined by politicians from both the Israeli right and left, including Labor elder statesman and now President Shimon Peres. The main purpose behind Kadima was peace: it sought to join the moderate right with the moderate left to create a credible negotiation partner in the conflict, committed to a genuine two-state solution.
In March 2006, the Israelis gave new hope to the Peace Process by returning Kadima to government.
Two months before that, however, the Palestinians gave the party list ‘Change and Reform’ a majority of the seats. ‘Change and Reform’, ironically, was the list of Hamas, terrorists who will never recognise Israel’s right to exist. So while the Israeli people voted for peace, the Palestinian election crowned terrorists.
The way the Palestinians voted to some extent can be excused on the basis of the hopeless situation they find themselves in, but it is beyond doubt that they voted the complete opposite of their own interest. Hamas can never negotiate with Israel. Partly because they are hell-bent on continuing a violent campaign against Israel, partly because Israel cannot negotiate with a party which do not recognise their right to exist. What is more, the Hamas constitution actually prohibits negotiation with Israel.
Israel tried moderation and found extremism on the other side. I hope Kadima win, but it is not hard to understand why there is a real possiblility that Likud will return to power today.
JDR
Filed under The Middle East
As has been widely reported, Bruce Springsteen missed out on an Academy Award Nomination for his song The Wrestler from the movie of the same name (Rolling Stone).
Of course, Bruce already has an Oscar in his cabinet – he was rightfully awarded one for Streets of Philadelphia in 1993. But after having won this year’s Golden Globe for The Wrestler a couple of weeks ago, at least a nomination seemed a sure thing. Not to mention that the song is brilliant – as is his whole new album Working on a Dream released two days ago.
Maybe Hollywood has become too left-wing? Even for lefty Springsteen? He has been the target of some harsh criticism – his new greatest hits album was only released in Wal-Mart this month. While Wal-Mart gives jobs for 2.1 million people around the world and supplies cheap necessities for millions and millions more (both more important in a recession), it is a company which fight with the likes of McDonald’s and Nestlé for the title ‘The Left’s Most Hated Successful Corporation’. Thus, the working-class hero’s association with them is a touchy subject – they are saying he sold his soul to be the King of the Supermarket.
What do I think? It is very, very hard to be left-wing without being hypocritical. Especially when you are as rich as The Boss is. But he really did deserve that Oscar.
JDR
Filed under Culture
In the complaint, Rod Blagojevich is quoted as saying that he was considering appointing himself to the Senate because he could fight corruption allegations better from there. This, in turn, would allow him to ‘remake his image’ for a possible run for President (of the United States?!) in 2016!
Surely that is evidence on which the defence can base a plea of insanity?
JDR
Filed under America
National Review has joined The Zanzibar Gazette in encouraging former Governor Jeb Bush (R-FL) to run for the Senate (NR).
I highlighted Bush’s commitment to immigration reform (ZG). But the National Review editors are usually on the anti-immigration side of the party and consequently ask Bush to reconsider his stance in that respect. But it is great that they are willing to support him despite their profound disagreement. That also shows that Jeb Bush is good enough to gain support on all wings of the party.
Truly, a man for the future.
JDR
Filed under America
In case anyone missed it, there is a bit of a political crisis raging in Canada. The recently reelected Conservative government is being challenged by a coalition of confused Liberals and the hard-left New Democrats, tacitly supported by seperatists.
Of course, in the election just two months ago, the Liberals at no point mentioned to the voters that this kind of coalition was a possibillity. Canadian voters have had their say, and the wanted the Harper government to remain in power. Today’s polls reflect that fact as well (ConservativeHome).
This video is evidence enough that Stephane Dion, leader of the Liberals, cannot be allowed to run the country.
JDR
Filed under Canada
