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Archive for the ‘North Korea’ Category

One of my goals is to convince people that even small differences in long-run growth can have a powerful impact on living standards and societal prosperity.

In other words, the economy is not a fixed pie. The right policies, such as free markets and small government, can create a better life for everybody.

And bad policy, needless to say, can have the opposite impact.

Very few people realize, for instance, that Argentina was one of the world’s 10-richest nations at the end of World War II, but interventionist policies have weakened growth and caused the country to plummet in the rankings.

Hong Kong, by contrast, had a relatively poor economy at the end of the war, but now is one of the globe’s most prosperous jurisdictions.

If you want more examples, check out this chart showing how North Korea and South Korea have diverged over time.

Or how about the chart showing how Chile has out-performed other major Latin American economies.

This comparison of living standards in the United States and Europe also is very compelling.

Here’s a simple guide to highlight the difference between weak growth and strong growth. It shows how long it takes a nation to double economic output depending on annual growth.

As you can see, a nation with 1 percent growth (think Italy) will have to wait 70 years before the economic pie doubles in size.

But a nation that grows 4 percent or faster each year (think Singapore) will double GDP in less than 20 years.

Years to Double GDP

So why am I plowing through all this material?

My answer is simple, but depressing. I’m worried that the United States is becoming more like Europe. During the Bush-Obama years, we’ve seen big increases in the size and scope of government, and it’s no surprise that we’re now suffering from anemic economic performance.

That’s the first point I made in this interview with Michelle Fields of PJTV.

Much of the material in the interview will be familiar to regular readers, but a few points deserve some emphasis.

I say that America becoming more like Europe isn’t the end of the world, but I should elaborate. What I meant is that we can survive 2 percent growth instead of 3 percent growth. We could even survive 1 percent growth.

But if we continue on the current path of ever-growing government and combine that with an aging population and poorly designed entitlement programs, then we will see the end of the world. At least in the sense of fiscal crisis and economic collapse.

All the points I make about jobs, employment, labor force participation, unemployment insurance and disability are simply different ways of saying that it’s not good for the economy when politicians continuously make dependency more attractive than work.

If you want to know more about why the so-called stimulus was a failure, my article in The Federalist is a nice place to start.

The libertarian fantasy world of a small central government is a very good goal, but it’s still possible to make significant progress if politicians follow Mitchell’s Golden Rule.

P.S. You may recognize the host because she narrated a very good video for the Center for Freedom and Prosperity. Michelle explained how the big-government policies of Hoover and Roosevelt deepened and extended the Great Depression.

She also exposed rich leftists as complete hypocrites in this interview.

P.P.S. Since I mentioned above that South Korea has far surpassed North Korea, I should share this powerful nighttime picture of the Korean peninsula.

North Korea v South Korea

Gee, maybe capitalism is better than statism after all.

Unless, of course, you think there’s something really nice about North Korea to offset South Korea’s economic advantages.

Such as malnutrition or enslavement. Or a small carbon footprint, which led some nutjobs to rank Cuba far above America.

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I spoke earlier today at the 2013 Liberty Conference in Lausanne, Switzerland. But I don’t think anybody is going to remember my speech about the collapse of the welfare state, even though I presented lots of powerful data from the BIS, OECD, and IMF, and also shared a very funny cartoon showing what happens when there’s nothing left for interest groups to steal.

Escaped the North Korean gulag

At a normal conference, my remarks may have resonated, but I freely admit that I was completely overshadowed by the presentation of Shin Dong-Hyuk, who is the only person to have successfully escaped from the North Korean gulag.

In the future, if I ever get discouraged and think the fight for freedom is too difficult, I will watch this video and realize that nothing in my life will ever compare to the horror of living under communism. It’s not nearly as powerful as today’s first-person presentation, but the video will give you some sense of the utter barbarity of the North Korean government.

If you want more information, here is his Wikipedia entry, but I also suggest you watch this short speech by Blaine Harden, a journalist who wrote the story of Shin’s escape.

Keep in mind, by the way, that North Korea is an awful and repressive country even for the people who aren’t in the gulags. Malnutrition is such a problem, for instance, that children are stunted and the North Korean army had to lower its requirements to allow soldiers as short as 4’8″.

So perhaps now you understand why I get so upset when people in the west glorify communist thugs such as Che Guevara, or use the Soviet hammer and sickle as a cutesy marketing gimmick.

I hope nobody would ever think to wear a Hermann Göring t-shirt or use the swastika in a value-neutral fashion, so why should it be okay to whitewash and/or rehabilitate communists?

P.S. I was never a fan of former Indiana Governor Mitch Daniels, but he deserves lasting applause for seeking to protect children from the anti-western, soft-on-communism crap published by the late historian Howard Zinn.

P.P.S. Since today’s post is about a very dour topic, let’s close with a bit of humor about  the communist version of efficiency.

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One hopes that the dictator of North Korea suffered greatly before he died. After all, his totalitarian and communist (pardon the redundancy) policies caused untold death and misery.

But let’s try to learn an economics lesson. In a previous post, I compared  long-term growth in Hong Kong and Argentina to show the difference between capitalism and cronyism.

But for a much more dramatic comparison, look at the difference between North Korea and South Korea. Hmmm…, I wonder if we can conclude that markets are better than statism?

And if you like these types of comparisons, here’s a post showing how Singapore has caught up with the United States. And here’s another comparing what’s happened in the past 30 years in Chile, Argentina, and Venezuela.

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I was planning on concentrating solely on the debacle in Greece today, but (thanks to Pejman Yousefzadeh’s twitter feed) I saw a blog post about a story that is beyond disgusting.

I don’t want to spoil the surprise, so I’ll merely say that it is horrifying that American taxpayers are financing more than 20 percent of the budget for the organization employing the amoral slug quoted in the Washington Post report.

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