Archive for category Economics

Objectivist Author Craig Biddle at Ohio State

The Ohio State University Objectivist Club and the Young Americans for Liberty at Ohio State in conjunction with the Ayn Rand Institute are hosting a lecture by Craig Biddle, author of Loving Life: the Morality of Self-Interest and the Facts that Support It and editor of The Objective Standard, a quarterly journal of culture and politics written from an Objectivist perspective.

What: “Capitalism: The Only Moral System”, a lecture by Craig Biddle

When: Wednesday, February 24, 2010 6:00 PM

Where:
Wexner Center Performance Space
1871 N. High Street,
Columbus, OH 43210

Information is available at the OSU Objectivist Club website or the Facebook event page.

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Venezuelan Collapse Watch

Beginning Friday, January 8th, Chavez simultaneously devalued his currency by half, and created a three-tiered currency system. When Venezuela tried this exact same stunt in the 80s, it led to widespread corruption, food shortages, and inflation. So we see they’ve learned from their mistakes…

In addition to the currency devaluation, Chavez ordered stores to keep their prices at the same nominal value as before - effectively forcing every store and company to incur 100% of the damage of his devaluation. He sent armed troops into the streets to crack down on stores attempting to raise prices, and set up phone lines for consumers to report stores that raise prices. Stores and companies are now being seized and nationalized for attempting to stay in business.

A few days later, he enacted rolling blackouts throughout the country, for four hours per day, every other day. Soon after - and Likely due to personal inconvenience - he repealed the blackouts for the nation’s capital, Caracas.

Now, in the latest stunt aimed at combating inflation, Chavez has chosen to raise the minimum price for a person’s services by 25% over the next few months. Yes, you read that right: Chavez is trying to combat increasing prices by raising the price of the most important natural resource:

Mr Chavez said the minimum wage will increase by 10% in March and 15% in September to offset inflation, which is widely expected to surge following the devaluation.

Now obviously, stores and companies are expected to completely absorb this huge increase in the minimum wage. The inevitability will be more inflation, more nationalization of companies, increased unemployment, and decreased production.

It will be interesting to watch all of this unfold. I have created a discussion thread at the Objectivism Online Forum to monitor the collapse.

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New Model Links Vitamin D Deficiency to Cancer Development

Whereas the current understanding of cancer development starts with genetic mutation, a new model aims at something more fundamental - intercellular communication. Researchers at the Moores Cancer Center at UCSD have pegged low vitamin D and calcium levels as a primary cause for the breakdown of “the communication between cells that is essential to healthy cell turnover, allowing more aggressive cancer cells to take over.” More from the article:

“Competition and natural selection among disjoined cells within a tissue compartment, such as might occur in the breast’s terminal ductal lobular unit, for example, are the engine of cancer,” Garland said. “The DINOMIT model provides new avenues for preventing and improving the success of cancer treatment.”

Garland went on to explain that each letter in DINOMIT stands for a different phase of cancer development. “D” stands for disjunction, or loss of intercellular communication; “I,” for initiation, where genetic mutations begin to play a role; “N” for natural selection of the fastest-reproducing cancer cells; “O” for overgrowth of cells; “M” for metastasis, when cancer cells migrate to other tissues, where cancer can kill; “I” refers to involution, and “T” for transition, both dormant states that may occur in cancer and potentially be driven by replacing vitamin D.

Based on what I have read from Noodlefood, Whole Health Source, and other health blogs (see sidebar for links), I would recommend about 6,000 IU of vitamin D supplement daily - and make sure it is in fish oil form; the hard tablets are not readily absorbed by the body. Here are the ones I get: Carlson Solar D Gems (4,000 IU capsule + 2,000 IU capsule daily).

UCTV also has an interview with the lead researcher about this new model and its implications for treatment.

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The National Debt Explained in a Road Trip

Of course he tries to paint Republicans in a positive light, and of course I’m opposed to that, but it’s still an interesting way to depict the debt.

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Tea Party Summary

[Welcome HBLers! Thanks to Anu Seppala at ARI for the submission.]

We at the Ohio Objectivist Society had a great time attending both the Canton and Cleveland tea parties. There were at least a thousand at the first, and at least twice that at the second. We brought about 60 copies of our booklet of reprinted essays, The Portable Objectivist, and 30 copies of Atlas Shrugged to hand out to interested individuals. I also made a few signs: “Ayn Rand Was Right” — “Atlas Will Shrug”; “Who is John Galt” — “Read Atlas Shrugged”; “Free the Market” — “$” [big green dollar sign].

First up was the Canton Tea Party. It had been raining all morning, but finally stopped when we arrived in Canton. It was still cold, and threatened rain all day. As soon as we got there, Matt, our executive director, started mingling in the crowd - he has a real knack for that. The rest of us walked around the perimeter, and it wasn’t long before we got a request from a local radio station - Ron Ponder’s show on WHBC 1480 AM - for a live interview. We rushed to get Matt, and he was live on the radio within minutes. He covered who we are, why we were there, what we stood for, how we were different from the rest, etc. Here is a photo of us holding up signs during the interview:

Matt went on mingling in the crowd, while we found a strategic high-traffic location, waiting for people to come to us. And they did! At least one in five people were drawn to the “Atlas Will Shrug”/”Ayn Rand Was Right” sign, and told us their stories about when they first read the book. Many were reading it now or had just finished it, but there were a few who read it over 40 or 50 years ago, and an even smaller minority who had read it several times, as well as the rest of Rand’s work. Several others took photos of our signs, or pointed and smiled.

The response to our signs was quite remarkable, and there were even multiple people who said, “nobody is going to get the reference.”

After the Canton event, we grabbed a bite to eat - steaks all ’round at the Longhorn Steakhouse, and mine was bacon-wrapped! We got to Cleveland early and took shelter at a local bar to talk about the Canton event and what to do differently for the Cleveland one. We decided that seeking people out was a better strategy, particularly because the crowd was expected to be larger.

At the Cleveland event, there were several other people with signs referencing Rand - several “Who is John Galt?”, some “Atlas Will Shrug”, and shirts with “John Galt 2012″ and “I am John Galt”. We made several laps around the crowd, and sought out such people to give them business cards and booklets, and let them know about our future meetups and other events. It was a real surprise to meet a self-professed Objectivist couple at the event; hopefully we’ll see them at a future meetup.

My favorite moment at the event was when a guy, who had brought his young son, said that he met his wife over Atlas Shrugged - they were both reading it at the same time. It was his favorite book, and he hoped his son could read it when he gets older. Thad immediately pulled out a copy from his bag, and the kid’s eyes lit up. We tried to limit our distribution to people who said they had heard about the book and wanted to read it. Everyone who got a copy was excited and couldn’t wait to read it.

In all, we handed out over 20 copies of Atlas Shrugged, over 40 copies of our booklet, and dozens of business cards. We got on a couple radio shows, one local TV news segment, and were interviewed by a small local newspaper, all to spread our name. And it’s working - the emails are already pouring in, with people interested in future meetups, book reviews, etc.

For Objectivists interested in attending future protests - such as the Independence Day Tea Party - the one thing we recommend is to bring a nice clear sign that mentions Atlas Shrugged and Ayn Rand. If you build it, they will come.

Courtesy Terri Dewell

Courtesy Terri Dewell

Here is a slideshow of photos taken by the OOS at the events:

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Economic Stabilization: Hope or Change?

According to President Obama, our nation is facing a severe financial crisis. The logical solution to fix this crisis: launch a Financial Stability website that contains the details for the Emergency Economic Stabilization Act (EESA) and the Financial Stability Plan (FSP). If this doesn’t comfort you, don’t worry - the government also promises that this is only the “first step”, and you can trust them to redistribute your current and future tax dollars “prudently”.

The most impressive aspect of the stabilization plan is the cost. One would think that implementing new government programs would be the worst possible solution during a “financial crisis”, however, Obama and his crack team of experts feel differently. Their plan takes trillions of new tax dollars and carefully redistributes them to create a much needed boost for the economy. Socialism Stability, here we come!

Financial Stability Plan


1. Financial Stability Trust


A Comprehensive Stress Test for Major Banks

Increased Balance Sheet Transparency and Disclosure

Capital Assistance Program


2. Public-Private Investment Fund ($500 Billion - $1 Trillion)

3. Consumer and Business Lending Initiative (Up to $1 trillion)


4. Transparency and Accountability Agenda – Including Dividend Limitation

5. Affordable Housing Support and Foreclosure Prevention Plan

6. A Small Business and Community Lending Initiative


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Tax Exemption Crutch for Failing Newspapers

As Americans increasingly turn to the web for their news, small local newspapers are put in a difficult position. To survive, they must innovate, either by transitioning their content online, or by providing unparalleled community-targeted content. The alternative is to merge with a larger paper - assuming that antitrust laws would not impede such a merger.

Soon, there may be another option, as introduced by Sen. Benjamin Cardin (D-Md.) earlier this week. Under the proposal, failing newspapers would be given the option to file for non-profit status. Tax-exempt papers would not be allowed to endorse specific politicians, but could still report on campaigns and elections.

This is of course another example of political pragmatism - resorting to any and all means to help specific groups at the expense of others. By offering tax-exempt status to certain newspapers, and tax-deductions to their contributors, this bill would put successful newspapers - those that did innovate - at a competitive disadvantage.

While some may champion this as a move towards objectivity in journalism, it should be obvious that it is only delaying the inevitable. For those newspapers that have no interest in remaining competitive through innovation, they will - and should - fail.

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The Squeaky Wheel

The following is a letter I wrote to several newspaper editors a few months ago, before government bailouts became ubiquitous. It was eventually published in four papers, including LA Times and NY Daily News.

At the time, I was reading Henry Hazlitt’s excellent work, Economics in One Lesson (1946), which aided me in understanding the hidden effects on one part of the economy of policies benefiting another. My purpose in writing the letter was to show the reader several clear examples of these hidden consequences, making them easier to recognize in the future.

President-elect Barack Obama’s massive plan for public works spending is a sign of political pragmatism: helping those who complain the loudest now, without regard for anyone else. Those other people who will be harmed by increased government spending — employers who could have had more employees (now working for the government), producing goods that could have existed (supplanted by unnecessary bridges to nowhere), bought with additional money that could have been in the pockets of consumers (now taxed to pay for these jobs) — will be the ones complaining tomorrow.

For anyone who hasn’t read Economics in One Lesson - pick up a copy or read it online. The Ludwig von Mises Institute also provides several interviews with economists on the book and its topics.

[Credit to NY Daily News for the squeaky wheel analogy]

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