Power & Market
No stranger to controversy, critically acclaimed rapper Kanye West has generated a whirlwind of media attention since returning to Twitter in late April . This controversial tweet storm reached its peak when West praised African American conservative activist Candace Owens for the way she thinks .
West also stirred the pot by claiming “Obama was in office for eight years and nothing in Chicago changed”, questioning former President Barack Obama’s record in bringing change to a city facing ongoing street violence .
A complete about-face from his race-baiting comments in 2005 , when he stated on live TV that then President George W. Bush did “not care about black people”, West’s recent comments have opened up considerable debate on racial affairs in America.
Pop Culture’s Potential to Change Politics
As mentioned before, West does have a penchant for stirring up controversy for publicity’s sake. In fact, West has openly admitted to being a “proud non-reader”, thus calling into question West’s political beliefs or lack thereof.
It remains to be seen whether West’s comments were sincere or reflect some sort of political “awakening” on his part, but the potential power of cultural figures like Kanye West still cannot be underestimated.
Nobel laureate economist F.A. Hayek understood the power of second-hand dealers such as academics, artists, journalists, and teachers in disseminating and popularizing ideas. These second-hand dealers play a crucial role in influencing policymakers and the general public.
Thanks to growing levels of distrust with government, a large segment of the population has lost faith in the traditional political process. Consequently, these disillusioned individuals have turned to entertainers and other pop culture icons like West as sources of credibility and relatability.
Questioning the Democrat vs Republican Narrative
Like the entertainer that he is, Kanye West has taken his social media rabble rousing to the recording booth.
“That’s the problem with this damn nation/All Blacks gotta be Democrats/Man, we ain’t made it off the plantation”.
Provocative lyrics aside, there exists a nugget of truth in West’s rap verse.
It is no secret that the Democrat Party enjoys monolithic support from the African American community. Democrat presidential candidates have averaged 87 percent of the African American vote in the past 12 presidential elections.
Why Democrats have dominated with African American voters has been highly debated among political commentators , but the majority of these discussions lead to the unproductive black hole of partisan politics.
And West has fallen into this partisan trap.
The real problem ignored in these debates is the elephant in the living room that is government interventionism — something both political parties have taken a fancy to implementing in one way or other once in power.
The broken schools , dependency on welfare services , and the deterioration of the family unit that the average African American living in the inner cities must currently put up with was unheard of for a good portion of U.S. history. From 1890 to 1954 , African Americans had similar participation rates in the labor force as whites and were able to ascend the economic ladder with ease.
However, the key ingredient to the African American community’s success during that time period was limited government, a salient feature of the Gilded Age up until the New Deal era. In sum, it’s more than just switching political parties that will help African Americans prosper, but rather focusing on creating an institutional environment that facilitates economic growth.
Crush Dissent at All Costs
Unfortunately, minority leaders and pundits ignore the socialist elephant in the living room and prefer to turn to race-baiting and victim politics. As a result, constructive political discussion has remained stagnant.
When intellectuals and political personalities like Larry Elder, Thomas Sowell, and Walter Williams propose free-market alternatives to common social issues, entrenched political commentators immediately dismiss them as Uncle Toms or race traitors .
And when Kanye West dared to question certain sacred cows, he was met with the same scorn from the mainstream media.
This type of discourse embodies the authoritarian nature of modern-day liberalism: Support diversity in name but promote one-size fits all narratives when controversial political subjects emerge.
Bringing it Back to Basics
Breaking barriers and bucking conformist trends form the bedrock of hip-hop culture. In the status quo of identity politics, Kanye West’s audacious statements line up perfectly with the original spirit of hip-hop.
Starting out as an obscure movement in the South Bronx during the 1970s, hip-hop would serve as a creative outlet for disgruntled African American youth that were tired of the inner-city conditions they lived in.
By the late 1980s, hip-hop solidified itself as one of the hottest musical trends in the United States.
Rappers under the influence of social justice narratives can rant about the horrors of capitalism as much as they want, but it was this same capitalist system that made hip-hop an integral part of American popular culture.
The jury is still out on whether or not West’s media escapade will fundamentally change racial political discussions. Nevertheless, a healthy degree of skepticism is advised when breaking down these recent developments.
In today’s environment of Team R vs. Team D politics, the temptation to gravitate towards one political party or the other for solutions is still strong. For African Americans, joining the Republican Party—or any other political party for that matter—does no guarantee the path to the promised land.
The GOP’s interventionist policies merit substantial criticism, and just like their Democrat rivals, the GOP has played an integral role in perpetuating the current welfare state paradigm that disproportionately hurts minority groups.
Moral of the story:
African Americans must look beyond the traditional political process for genuine socio-economic stability.
Let’s hope that Kanye West’s recent actions don’t turn out to be another of his long line of publicity stunts. For inner-city dweller’s sake, it’s high time to start talking about free-market solutions to their problems.
Dr. Guido Hulsmann joined the Tom Woods show last week to discuss his work on the cultural and political consequences to inflation - a subject often neglected by most economists.
To read more about Dr. Hulsmann's work on the topic, check out his book The Ethics of Money Production.
Yesterday’s Inspector General report on the FBI’s investigation of Hillary Clinton contained plenty of bombshells, including a promise by lead FBI investigator Peter Strzok that “We’ll stop” Donald Trump from becoming president. The report reveals how unjustified secrecy and squirrelly decisions helped ravage the credibility of both Hillary Clinton’s presidential campaign and the FBI. But few commentators are recognizing the vast peril to democracy posed by the sweeping prerogatives of federal agencies.
The FBI’s investigation of Clinton was spurred by her decision to set up a private server to handle her email during her four years as secretary of state. The server in her Chappaqua, N.Y. mansion was insecure and exposed emails with classified information to detection by foreign sources and others.
Clinton effectively exempted herself from the federal Freedom of Information Act (FOIA). The State Department ignored 17 FOIA requests for her emails prior to 2014 and insisted it required 75 years to disclose emails of Clinton's top aides. A federal judge and the State Department inspector general slammed the FOIA stonewalling.
Clinton’s private email server was not publicly disclosed until she received a congressional subpoena in 2015. A few months later, the FBI Counterintelligence Division opened a criminal investigation of the “potential unauthorized storage of classified information on an unauthorized system.”
The IG report gives the impression that the FBI treated Hillary Clinton and her coterie like royalty — or at least like personages worthy of endless deference. When Bleachbit software or hammers were used to destroy email evidence under congressional subpoena, the FBI treated it as a harmless error. The IG report “questioned whether the use of a subpoena or search warrant might have encouraged Clinton, her lawyers ... or others to search harder for the missing devices [containing email], or ensured that they were being honest that they could not find them.” Instead, FBI agents worked on “rapport building” with Clinton aides.
Read the full article at USA Today
The Senate Banking Committee is set to vote next Tuesday on the nominations of Richard Clarida and Michelle Bowman. As I noted when both names were initially announced, neither’s history indicates any reason to think they will shake things up at the Fed. To his credit, Mr. Clarida did indicate during his Senate testimony that he strongly supports normalizing the Fed’s balance sheet and getting it away from direct credit allocation by purchasing non-Treasury assets. That’s a notable improvement.
Reports indicate that it’s possible both nominees will receive some bipartisan support, in notable contrast to the last Fed nominee considered – Marvin Goodfriend. In fact, it seems increasingly clear that Goodfriend’s nomination is in danger. As the American Banker noted today:
There is a bigger question another Fed board nominee, Marvin Goodfriend, whose nomination has faced controversy. Goodfriend is a professor at Carnegie Mellon University and former monetary policy adviser to the Federal Reserve Bank of Richmond.
“The Marvin Goodfriend nomination to the Board remains in limbo, but the odds of his confirmation are slim-to-none at this point,” Isaac Boltansky of Compass Point Research & Trading wrote in an analyst note May 14. “The odds slightly favor both Clarida and Bowman ultimately winning confirmation.
While Trump’s Fed nominees have largely been forgotten by the mainstream media, this development is a big deal. The reason I consider Goodfriend to be the “worst Fed nominee of all time” is that his enthusiastic support for negative interest rates and ambitious strategy for eliminating cash in America makes would make him a uniquely dangerous voice within America’s central bank.
It is worth noting as well that Goodfriend’s nomination is in peril in part due to an interesting coalition that transcends the political left and right. One of the loudest advocates against his nomination has been the organization Fed Up, a progressive organization whose primary policy goals have been greater “diversity” at the Fed and opposition to interest rate increases. While have obvious disagreement on monetary policy, it is promising to see some recognition on the left to the very real dangers negative interest rates and the war on cash can have on working class Americans.
Their advocacy seems to be working, with the expectations that Goodfriend will fail to receive a single Democratic vote in the Senate. Combined with Rand Paul’s committed no vote, Goodfriend is one more Republican opponent away from being done. Hopefully he will receive that from some of the better Republicans on monetary policy, like Ted Cruz or Mike Lee.
While it is a weird situation to see Elizabeth Warren doing more to attack a pro-tax advocate than either the Heritage Foundation or Cato, it does point to the unique political potency of the Fed as a political issue. If a Warren-Rand coalition brings down Goodfriend, America will be better off for it.
Across the country we have seen Democrat-controlled states and cities announcing themselves as "sanctuaries" for immigrants in the opposition to policies handed down from the Trump administration. Last week, a county in Illinois voted to become a "sanctuary county"of its own, but this time the battle is over gun control measures that may be passed by their state government.
As the USA Today reports:
The Effingham County Board approved the resolution 8-1 on Monday. Board members said they felt it was necessary to "take a stand" against gun control efforts in the Illinois legislature.
Effingham County State's Attorney Bryan Kibler told Fox News that they decided to "flip the script" and "make this a sanctuary county like they would for undocumented immigrants."
This is precisely how political self-determination should look like. Instead of leaving it up to legislators in an isolated capital dictate laws on a country as large and diverse as the United States, we are all better off having decisions be left at political units closer to the citizens themselves. Just as states should be able to nullify bad Federal policies, local governments should opt to nullify bad state law.
As Mises wrote in Liberalism:
[T]he right of self-determination...is not the right of self-determination of nations, but rather the right of self-determination of the inhabitants of every territory large enough to form an independent administrative unit. If it were in any way possible to grant this right of self-determination to every individual person, it would have to be done.
Of course in order to check the political authority of larger entities, those trusted with enforcing the law must be willing to stand with their local community. Unfortunately in the case of Effingham County, it seems their sheriff isn't prepared to do so. Still, the increased willingness of state and local governments to question the wisdom and rules of larger government bodies is one of the more promising trends in American politics.
Recommend reading: Anarchism and Radical Decentralization Are the Same Thing by Ryan McMaken
"This is just a truly astonishing moment coming from the White House podium," tweeted MSNBC's Kasie Hunt. Like the rest of the media pack-animals she hunts with, Ms. Hunt had been fuming over President Trump's telephone call to Vladimir Putin, congratulating him on winning another term as president.
Reliably opposed to a truce were party heavies on both sides. Sen. John McCain joined the chorus: "An American president does not lead the Free World by congratulating dictators on winning sham elections," he intoned.
Another Republican, Sen. Chuck Grassley, told a reporter testily that he "wouldn't have a conversation with a criminal. I think Putin's a criminal. What he did in" Iraq, what he did in Libya ... Wait a sec? Remind me; was it Putin or our guys who wrecked those countries? So many evil-doers on the world-stage, it's hard for me to keep track.
"When I look at a Russian election, what I see is a lack of credibility in tallying the results," sermonized Senate Majority Leader Mitch McConnell. "I'm always reminded of the elections they have in almost every communist country."
Actually, what the International Election Observation Mission found in Russia's presidential election of March 18 was far more nuanced. Why, in some ways the Russian elections were very American: In the difficulty dissident candidates have in getting on the ballot, for example.
Ask Ron Paul or all those anonymous, aspiring, independent, third-party candidates about the US's "restrictive ballot access laws and the other barriers erected" by the duopoly to protect their "de facto monopoly in America," to paraphrase Forbes.com.
As for jailing journalists, frequently for life: Not Russia, but an American ally, Turkey, is the world’s biggest offender. But hold on. Isn't Trump turning on the Kurds to pacify the Turks? Maybe it's something the Saudi's said. Go figure.
What doesn't change is the interchangeability—with respect to any peaceful overtures made by President Trump toward Russia—of the Stupid Party (Republicans) and the Evil Party (Democrats). And yet, the same self-interested individuals protest, periodically, that Trump's recklessness risks plunging the country into war.
The president wants to cooperate with the Russians. International confrontation being their stock-in-trade, the UniParty won't countenance it. Politicians in both parties have not stopped egging Mr. Trump on, rejecting the détente he seeks with Russia, and urging American aggression against a potential partner. Yet, incongruously, in October of 2017, a Republican Senator, Bob Corker, saw fit to complain that the president was "reckless enough to stumble [sic] the country into a nuclear war."
To please and curry favor with an establishment that detests him and is vested in the geopolitical status quo—POTUS even signed sanctions into law against Russia.
Cui bono, pray tell? Who benefits from this standoff?
General Barry R. McCaffrey has The Answer. The Trump congratulatory courtesy call to Mr. Putin shows the president's refusal to protect US interests, tweeted the general.
"US interests" or your interests, sir? Who benefits here? Ordinary Americans, or the media-military-industrial-complex; the swamp organism Dwight Eisenhower warned about in his farewell address: "The total influence – economic, political, even spiritual – ... felt in every city, every Statehouse, every office of the Federal government ... [of] an immense military establishment and a large arms industry."
Not to mention the attendant barnacles who suction onto the ship of state: professional TV talkers, think tank sorts, self-anointed intellectuals (who’re not very intelligent). All are vested in an American-led order, so long as they get to dictate what that (martial) order looks like.
The same political flotsam "argues" against President Trump's desired détente with Russia using the following logic: If the "master of the political insult," Donald Trump, "declines to chide Putin," to quote NBC and CNN standard issue "analysts"—something is off. Ergo, Trump is beholden to Putin and to Russia. The Russians must have something on him.
Such a line of "reasoning" fails basic logic, simply because it's inexhaustive. In other words, there are other, highly plausible explanations as to why the president is not warring with Russia, not least that diplomacy is a good thing; that POTUS ran on a promise of peace with Putin; that he had articulated, as a campaigner, an idea entertained by most Deplorables. Namely that Russians are at odds with Islam and ISIS; that Putin is a Russia First, nationalist, whereas our Anglo-Europeans "allies" are Islam-friendly globalists.
Had POTUS kept pressing the positions he ran on, he might have retarded the Russia political wildfire, now raging out of control. Philosophical consistency would've served him well as an antidote to the political opportunism around him.
Instead, President Trump has surrounded himself with appointees who deliver a message discordant to his. What comes out of the White House is an ideological cacophony.
Hiring different perspectives in business could well be a strength. But it’s a weakness when politics and policy are in play. To advance a political agenda, one needs a team that shares the political philosophy underlying that agenda.
MSNBC's Miss Hunt and her political clones were particularly galled by Sarah Sanders. The White House press secretary was asked whether the Russian election was free and fair. She replied: "We don't get to dictate how other countries operate."
What’s outraging our neoconservative-Jacobin establishment is that the White House is practicing, if only fleetingly, what another American president counseled in a bygone Independence-Day speech: detachment and diplomacy in foreign policy.
[America] goes not abroad in search of monsters to destroy. She is the well-wisher to the freedom and independence of all. She is the champion and vindicator only of her own. She will recommend the general cause, by the countenance of her voice, and the benignant sympathy of her example. She well knows that by once enlisting under other banners than her own, were they even the banners of foreign independence, she would involve herself, beyond the power of extrication, in all the wars of interest and intrigue, of individual avarice, envy, and ambition, which assume the colors and usurp the standard of freedom. The fundamental maxims of her policy would insensibly change from liberty to force. The frontlet upon her brows would no longer beam with the ineffable splendor of freedom and independence; but in its stead would soon be substituted an imperial diadem, flashing in false and tarnished lustre the murky radiance of dominion and power. She might become the dictatress of the world: she would be no longer the ruler of her own spirit.
The man who'd be casting pearls before swine today was John Quincy Adams. The sixth president of the United States (1825-1829), son of John Adams, spoke truths eternal on that July 4, 1821.
Ilana Mercer has been writing a weekly, paleolibertarian column since 1999. She is the author of “Into the Cannibal’s Pot: Lessons for America From Post-Apartheid South Africa” (2011) & “The Trump Revolution: The Donald’s Creative Destruction Deconstructed” (June, 2016). She’s on Twitter, Facebook, Gab & YouTube
In fact, most geniuses seem to simply not get economics. An example is the recently departed physicist Stephen Hawking, who - like so many - made rather ridiculous statements of economic nature. Quoted by MSN/MarketWatch, Hawking makes several very simple mistakes in his attempted economic commentary. For instance, he seems to not understand the difference between a natural resource (the physical production factor) and an economic resource (the subject value), which leads him to erroneously conclude that hoarding, and the resulting increased scarcity of physical resources, impoverishes humanity. Also, Hawking noted:
“If machines produce everything we need, the outcome will depend on how things are distributed,” he wrote. “Everyone can enjoy a life of luxurious leisure if the machine-produced wealth is shared, or most people can end up miserably poor if the machine-owners successfully lobby against wealth redistribution.”
This is a common view that at best captures a fundamental misunderstanding of economics: that ownership of the means of production somehow implies power (economic or otherwise). But, as we've known since Menger, the means of production have only value to the extent they contribute to the production of consumers' goods, the consumption of which is the realization of value. In other words, if I buy all machinery in the world and refuse to use any of them to produce goods, the economic value is zero. If I don't use the machinery to produce and sell consumers' goods, I have destroyed the economic value of my property.
The real effect of robots "producing everything" is that the cost of production plummets, which offers producers profits. But as we're flooded with goods, their market price also plummets. And as the (only) role of capital is to increase the productivity of labor, it means we don't have to work much to support a very high standard of living. The true gig economy is that we can work only for an hour or two - when we feel like it - to support a month's (or maybe a year's) worth of luxurious leisure.
This is apparently a problem to some geniuses.
Mark J. Perry writes this week at AEI:
In 1973 when commercial TV in America was an oligopoly of only three major networks (ABC, CBS and NBC), economist Murray Rothbard, presciently predicted in his book For a New Liberty: The Libertarian Manifesto the eventual rise of pay-TV (Netflix, HBO, Showtime, Amazon, etc.).
Perry then quotes this section (which can be found on page 122 of the PDF):
Furthermore, if TV channels become free, privately owned, and independent, the big networks will no longer be able to put pressure upon the FCC to outlaw the effective competition of pay-television. It is only because the FCC has outlawed pay-TV that it has not been able to gain a foothold. “Free TV” is, of course, not truly “free”; the programs are paid for by the advertisers, and the consumer pays by covering the advertising costs in the price of the product he buys. One might ask what difference it makes to the consumer whether he pays the advertising costs indirectly or pays directly for each program he buys. The difference is that these are not the same consumers for the same products. The television advertiser, for example, is always interested in a) gaining the widest possible viewing market; and b) in gaining those particular viewers who will be most susceptible to his message.
Hence, the programs will all be geared to the lowest common denominator in the audience, and particularly to those viewers most susceptible to the message; that is, those viewers who do not read newspapers or magazines, so that the message will not duplicate the ads he sees there. As a result, free-TV programs tend to be unimaginative, bland, and uniform. Pay-TV would mean that each program would search for its own market, and many specialized markets for specialized audiences would develop—just as highly lucrative specialized markets have developed in the magazine and book publishing fields. The quality of programs would be higher and the offerings far more diverse. In fact, the menace of potential pay-TV competition must be great for the networks to lobby for years to keep it suppressed. But, of course, in a truly free market, both forms of television, as well as cable-TV and other forms we cannot yet envision, could and would enter the competition.