Archive for the ‘Fascism’ Category

It’s not often that I disagree with the folks who put together the Wall Street Journal editorial page. For instance, they just published a great editorial on that cesspool of cronyism and corruption that is otherwise known as the Export-Import Bank.

Isn’t it great that the voice of capitalism actually supports genuine free markets!

That being said, a recent editorial rubs me the wrong way.

It’s about the presumably quixotic presidential campaign of Senator Bernie Sanders. These excerpts will give you a flavor of what the WSJ wrote.

Vermont Senator Bernie Sanders, an avowed independent Socialist, has decided to run for the Democratic presidential nomination… He thinks the American economy is fundamentally unfair, and that government must tax and spend even more heavily… He thinks Social Security should increase benefits, no matter that it is heading toward insolvency. Higher taxes can make up the difference. …He wants single-payer health care, though his own state gave up the experiment as too expensive.

So what’s my disagreement?

I realize I’m being a nit-picker, but I don’t like the fact that the WSJ editorial is entitled “An Honest Socialist.”

My gripe is that Sanders isn’t honest. A genuine socialist believes in government ownership of the means of production. In other words, nationalized factories, government-run businesses, and collective farms. If Sanders believes in these policies, he’s remarkably reluctant to share his perspective.

In reality, Sanders is like Obama. You can call him a statist, a corporatist, or even (as Tom Sowell correctly notes) a fascist.

In other words, lots of redistribution and lots of back-door government control of the private sector, but not a lot of People’s Factory #58 or People’s Farm #91.

Though it is true that Sanders wants the government to directly run the healthcare system (akin to the horrifying U.K. approach), but at most that means he’s a “partial socialist” (or, to modify the WSJ‘s title, a “mostly dishonest socialist”).

Moreover, he doesn’t bring anything new to the presidential race, at least from a policy perspective.

There’s only a trivially small difference, for instance, between Hillary Clinton’s lifetime rating of 10.6 from the National Taxpayers Union and Bernie Sanders’ lifetime rating of 9.4. They both earned their failing grades by spending other people’s money with reckless abandon.

Though it’s worth noting that both Clinton and Sanders are “more frugal” than Barack Obama, who earned a lifetime rating of 9.0. I guess this is why the phrase “damning with faint praise” was invented.

The only difference between Hillary, Obama, and Sanders is tone. Here’s some of what Charles Cooke wrote for National Review.

Sanders does not play games with words…he steadfastly refuses to pretend that he represents moderation. …Sanders is to public policy and professional politicking what Joe Biden is to personality. He is open, blunt, unapologetic, compelling, ready to debate.

Which is in stark contrast to Hillary Clinton’s pabulum.

…the Democratic primary is being dominated by a corrupt, controlling, soulless, cynical, entitled, and mostly synthetic avatar named Hillary Clinton, and, in consequence, it is almost entirely devoid of ideas. …Hillary and her team stick to meaningless and saccharine banalities, almost all of which, one presumes, have been poll-tested within a fraction of an inch. …At no time does she stake out a vision. At no time does she adopt a controversial or momentous position. Instead, she hides behind corporately assembled strings of mawkish, semi-literate tosh.

So the difference between Clinton and Sanders is that he’s proud of his statism and she wants to hide her radical agenda.

But it doesn’t matter what they say or what they call themselves, the bottom line is that their policies are destructive, both economically and morally.

P.S. Since Senator Sanders is from Vermont, it’s both amusing and ironic that the Green Mountain State’s government-run healthcare system self destructed.

P.P.S. Since we’re on the topic of socialism, it’s worth pointing out that Jesus wasn’t in that camp. Though I’m not sure we can say the same thing about the Pope.

P.P.P.S. Heck, Jesus may have been a libertarian.

P.P.P.P.S. If you like socialism humor, click here, here, and here.

P.P.P.P.P.S. Switching to another topic (and one where there’s zero humor), you may remember that I wrote a few days ago about the horror of so-called civil asset forfeiture.

This happens when the government arbitrarily seizes your money and/or property without convicting you of a crime. Or even without charging you with a crime.

Well, here’s a video from the Institute for Justice about a new tragic example of theft by government.

If this doesn’t get you angry, you probably need counseling. This story reminds me of the Michigan family that was similarly victimized.

Read Full Post »

As a fiscal policy economist who believes in individual liberty and personal responsibility, I have two goals.

1. Replace the corrupt and punitive internal revenue code with a simple and fair flat tax that raises necessary revenue in the least-destructive and least-intrusive manner possible.

2. Shrink the size of the federal government so that it only funds the core public goods, such as national defense and rule of law, envisioned by America’s Founding Fathers.

Needless to say, I haven’t been doing a great job. The tax code seems to get worse every year, and even though we’ve made some progress in recent years on spending, the long-run outlook is still very grim because there’s hasn’t been genuine entitlement reform.

But I continue with my Sisyphean task. And part of my efforts include educating people about the Rahn Curve, which is sort of the spending version of the Laffer Curve. it shows the non-linear relationship between the size of government and economic performance.

Simply stated, some government spending presumably enables growth by creating the conditions (such as rule of law and property rights) for commerce.

But as politicians learn to buy votes and enhance their power by engaging in redistribution, then government spending is associated with weaker economic performance because of perverse incentives and widespread misallocation of resources.

I’ve even shared a number of videos on the topic.

The video I narrated explaining the basics of the Rahn Curve, which was produced by the Center for Freedom and Prosperity.

A video from the Fraser Institute in Canada that reviews the evidence about the growth-maximizing size of government.

A video from the Centre for Policy Studies in the United Kingdom that explores the relationship between prosperity and the size of the public sector.

Even a video on the Rahn Curve from a critic who seems to think that I’m a closeted apologist for big government.

Now we have another video to add to the collection.

Narrated by Svetla Kostadinova of Bulgaria’s Institute for Market Economics, it discusses research from a few years ago about the “optimal size of government.”

If you want to read the research study that is cited in the video, click here. The article was written by Dimitar Chobanov and Adriana Mladenova of the IME

The evidence indicates that the optimum size of government, e.g. the share of overall government spending that maximizes economic growth, is no greater than 25% of GDP (at a 95% confidence level) based on data from the OECD countries. In addition, the evidence indicates that the optimum level of government consumption on final goods and services as a share of GDP is 10.4% based on a panel data of 81 countries. However, due to model and data limitations, it is probable that the results are biased upwards, and the “true” optimum government level is even smaller than the existing empirical study indicates.

Two points in that excerpt are worth additional attention.

First, they understand that not all forms of government spending have equal effects.

Spending on core public goods (rule of law, courts, etc) generally are associated with better economic performance.

Spending on physical and human capital (infrastructure and education) can be productive, though governments often do a poor job based on a money-to-outcomes basis.

Most government spending, though, is for transfers and consumption, and these are areas where the economic effects are overwhelmingly negative.

So kudos to the Bulgarians for recognizing that it’s particularly important to restrain some types of outlays.

The other point that merits additional emphasis is that the growth-maximizing size of government is probably far lower than 25 percent of economic output.

Here’s what they wrote, citing yours truly.

…the results from the above mentioned models should not be taken as the “true” optimal level of government due to limitations of the models, and lack of data as already discussed. As Dan Mitchell commented, government spending was about 10% of GDP in the West from the end of the Napoleonic wars to World War I. And we do not have any data to think that growth would have been higher if government was doubled or tripled. However, what the empirical results do show is that the government spending should be much less than is the average of most countries at the moment. Thus, we can confidentially say the optimum size of general government is no bigger than 25% but is likely to be considerably smaller because of the above-mentioned reasons.

And here’s their version of the Rahn Curve, though I’m not a big fan since it seems to imply that government should consume about one-third of economic output.

I much prefer the curve to show the growth-maximizing level under 20 percent of GDP.

Though I often use a dashed line to emphasize that we don’t really know the actual peak because there unfortunately are no developed nations with modest-sized public sectors.

Even Singapore and Hong Kong have governments that consume about 20 percent of economic output.

But maybe if I someday achieve my goal, we’ll have better data.

And maybe some day I’ll go back to college and play quarterback for my beloved Georgia Bulldogs.

P.S. Since I shared one video, I can’t resist also including this snippet featuring Ronald Reagan talking about libertarianism.

What impresses me most about this clip is not that Reagan endorses libertarianism.

Instead, notice how he also explains the link between modern statism and fascism.

He had a much greater depth of knowledge than even supporters realize. Which also can be seen in this clip of Reagan explaining why the Keynesians were wrong about a return to Depression after World War II.

And click here if you simply want to enjoy some classic Reagan clips. For what it’s worth, this clip from his first inauguration is my favorite.

Given my man crush on the Gipper, you also won’t be surprised to learn that this is the most encouraging poll I’ve ever seen.

Read Full Post »

Is Obama a socialist?

If you’re asking whether he’s a big-spending interventionist, the answer is yes.

But if you’re asking whether the President believes in government ownership of the means of production (which is the defining issue in the socialist economic platform), the answer is no (though the White House surely won’t like how Thomas Sowell describes Obama’s ideology).

But I generally don’t care about these word fights. Big government is bad because it hurts people and relies on coercion, and that’s true whether we’re talking about socialism, communism, Nazism, corporatism, or other forms of statism.

But I do care for historical accuracy and honesty.

Writing for the U.K.-based Telegraph, Dan Hannan of the European Parliament explains that the German National Socialists of the Hitler era were….well, socialists.

Goebbels never doubted that he was a socialist. He understood Nazism to be a better and more plausible form of socialism than that propagated by Lenin. Instead of spreading itself across different nations, it would operate within the unit of the Volk. So total is the cultural victory of the modern Left that the merely to recount this fact is jarring.

Anti-capitalist propaganda from the Nazis

Not that today’s leftists should be surprised. Unless, of course, they’re historically illiterate. After all, the Nazi political vehicle was the National Socialist German Workers Party.

Subsequent generations of Leftists have tried to explain away the awkward nomenclature of the National Socialist German Workers’ Party as either a cynical PR stunt or an embarrassing coincidence. In fact, the name meant what it said. Hitler…boasted, adding that “the whole of National Socialism” was “based on Marx”. Marx’s error, Hitler believed, had been to foster class war instead of national unity – to set workers against industrialists instead of conscripting both groups into a corporatist order. His aim, he told his economic adviser, Otto Wagener, was to “convert the German Volk to socialism without simply killing off the old individualists” – by which he meant the bankers and factory owners who could, he thought, serve socialism better by generating revenue for the state. …authoritarianism was the common feature of socialists of both National and Leninist varieties, who rushed to stick each other in prison camps or before firing squads. Each faction loathed the other as heretical, but both scorned free-market individualists as beyond redemption. Their battle was all the fiercer, as Hayek pointed out in 1944, because it was a battle between brothers.

In other words, Soviet-style socialism and Nazi-style socialism were both evil forms of statism, but one attracted people by fomenting class envy and the other sought recruits by demonizing non-Aryans.

Hannan hastens to add that he doesn’t think that modern self-proclaimed socialists are closet Nazis, but he does object to leftists who try to put National Socialists on the right side of the political spectrum.

The idea that Nazism is a more extreme form of conservatism has insinuated its way into popular culture. …What is it based on, this connection? Little beyond a jejune sense that Left-wing means compassionate and Right-wing means nasty and fascists are nasty. When written down like that, the notion sounds idiotic, but think of the groups around the world that the BBC, for example, calls “Right-wing”: the Taliban, who want communal ownership of goods; the Iranian revolutionaries, who…seized industries and destroyed the middle class; Vladimir Zhirinovsky, who pined for Stalinism. The “Nazis-were-far-Right” shtick is a symptom of the wider notion that “Right-wing” is a synonym for “baddie”.

Citing the comprehensive work of Jonah Goldberg, Hannan’s column then makes a key point about government coercion.

Authoritarianism – or, to give it a less loaded name, the belief that state compulsion is justified in pursuit of a higher goal, such as scientific progress or greater equality – was traditionally a characteristic of the social democrats as much as of the revolutionaries. Jonah Goldberg has chronicled the phenomenon at length in his magnum opus, Liberal Fascism. Lots of people take offence at his title, evidently without reading the book since, in the first few pages, Jonah reveals that the phrase is not his own. He is quoting that impeccable progressive H.G. Wells who, in 1932, told the Young Liberals that they must become “liberal fascists” and “enlightened Nazis”.

To be fair, this doesn’t mean Wells was a horrible person, at least in the sense of embracing Hitlerism. In the early 1930s, the fascist policies of Mussolini and Hitler were simply about government intervention. At that point, few people recognized that racism and anti-Semitism were part of the fascist program.

I’m much more likely to be critical of people who make excuses for communism still today. Do they really want to romanticize an ideology that killed tens of millions of innocent people?!?

And it’s disgusting that people wear Che Guevara t-shirts when he was a brutal enforcer of Cuba’s totalitarian regime.

P.S. On a lighter note, here’s the “bread-ish” difference between socialism and capitalism.

P.P.S. Regarding European socialism, we have great (although technically inaccurate) cartoons from Glenn Foden and Michael Ramirez.

P.P.P.S. Here’s socialism for kids, though it’s really class warfare for kids.

P.P.P.P.S. And here’s what happens when you try socialism in the classroom.

P.P.P.P.P.S. Closing on a serious note, John Mackey and Steve Horwitz agree with Thomas Sowell about Obama’s real economic ideology.

Read Full Post »

Regular readers may have noticed that I generally say that advocates of big government are “statists.”

I could call them “liberals,” but I don’t like that using that term since the early advocates of economic and personal liberty were “classical liberals” such as Adam Smith, John Locke, and Jean-Baptiste Say. And proponents of these ideas are still called “liberals” in Europe and Australia.

I could call them “socialists,” but I don’t think that’s technically accurate since the theory is based on government ownership of the means of production. This is why I’ve been in the strange position of defending Obama when some folks have used the S word to describe him.

I could call them “fascists,” which Thomas Sowell explains is the most accurate way of describing the modern left’s economic ideology, but that term also implies racism. But while leftists sometimes support policies that hurt minorities, they’re not motivated by racial animus.

I could call them “corporatists,” and I actually have used that term on occasion, but I think it’s too narrow. It’s not really an ideology, but rather a description of the sleazy alliance of the left and big business, such as we saw for TARP and Wall Street, or Obamacare and Big Pharma.

I’m motivated to write about my favorite way of expressing opprobrium because I just read a very interesting column in the U.K.-based Telegraph by Tim Stanley, an American historian.

He delves into the issue of whether it’s right to call Hitler a socialist.

…the Nazis did call themselves National Socialists. But…labels can be misleading. …Hitler wasn’t a socialist became apparent within weeks of becoming Chancellor of Germany when he started arresting socialists and communists. He did this, claim some, because they were competing brands of socialism. But that doesn’t explain why Hitler defined his politics so absolutely as a war on Bolshevism… Marxism is defined by class war, and socialism is accomplished with the total victory of the Proletariat over the ruling classes. By contrast, Hitler offered an alliance between labour and capital in the form of corporatism… It is true that the economy was socialised in the latter part of the 1930s, but not for the sake of building socialism. It was to prepare for war. Politics came before economics in the fascist state to the degree that it’s hard to conceive of Hitler as a coherent economic thinker at all. …Marxism defines history as a class struggle. Hitler saw it as a racial conflict… he was sometimes prepared to use socialist economics to pursue his agenda.

These all seem to be valid points, but I wonder whether it makes a difference.

Tarantulas, black widows, and brown recluses are all different species of arachnids, but it’s also correct to say that they are all poisonous spiders.

And I sure as heck wouldn’t want any of them to bite me.

Similarly, socialism, Marxism, and fascism may have specific motivations and characteristics, but they’re all forms of statism.

And I definitely don’t want to acquiesce to any of those coercive ideologies.

Which seems to be Tim Stanley’s conclusion as well.

The moral lesson is that power corrupts everyone: Left, Right, men, women, gay, straight, black, white, religious, atheist. The best countries have constitutions that limit the government, cherish the private sphere and largely leave the individual to make their own mistakes.

Now let’s look at a real-world example of a country that is suffering because of statism.

Allister Heath of City A.M. in London explains what is happening in Venezuela.

IF you want to see how to destroy an economy and a society, look no further than Venezuela. …the country is on the verge of total collapse… Food is running out, as are other essentials, even though the country claims the world’s largest oil reserves. There are shortages of toilet paper and soap, empty shelves and massive crowds queuing for hours in front of supermarkets. …The reason? A brain-dead rejection of basic economics, and a hardline, anti-market approach of the worst possible kind. There are maximum prices, other prices controls, profit controls, capital controls, nationalisations, expropriations and every other statist, atavistic policy you can think of. An extreme left wing government has waged war on capitalism and won; and as ever, ordinary people are paying the price. …The lesson from all of that is clear. Socialism doesn’t work. Price controls don’t work. Stealing people’s property doesn’t work. Chasing away foreigners doesn’t work. Destroying the supply-side of an economy doesn’t work. …It is a spectacularly horrible case of what FA Hayek called the Road to Serfdom.

For all intents and purposes, Venezuela is sort of like France, but without the rule of law. Which means bad policies become catastrophic policies.

And Allister is right. It is ordinary people who suffer. Venezuela’s long-term experiment with statism has resulted in stagnation and chaos. Once one of the richest nations in Latin America, it is now falling behind nations that have liberalized.

The Venezuelan government can’t keep food on the shelves, and it is moving closer and closer to Cuban-style rationing of basic necessities.

And people familiar with the history of statist regimes won’t be surprised to learn that Venezuela also is disarming the citizenry.

P.S. One business leader got a lot of heat for observing that Obamanomics was more like fascism than socialism. And another caught a bunch of grief for using an analogy about tax hikes and the Nazi invasion of Poland.

If they used “statism” instead, they would have been more accurate and avoided criticism.

P.P.S. This image is a funny but accurate illustration of the difference between socialism and capitalism. And here’s a socialism-for-kids image, but it’s really a parody of Obama’s class-warfare mentality.

Read Full Post »

I’m a big fan of John Mackey, the CEO of Whole Foods. Not only is he a successful, job-creating entrepreneur, but he also cited my work (specifically, this budget analysis) when interviewed by the statists at Mother Jones.

He also has some good insights about the economics of Obamacare. Here’s the key passage from the Washington Times report.

The CEO of Whole Foods compared President Obama’s health care law to “fascism” in a radio interview on Wednesday, a turnabout from earlier comments in which he compared the signature reforms to socialism. “Technically speaking, it’s more like fascism,” John Mackey told NPR’s Morning Edition. “Socialism is where the government owns the means of production. In fascism, the government doesn’t own the means of production, but they do control it — and that’s what’s happening with our health care programs and these reforms.”

I’ve already provided my two cents on the underlying theory of Obamanomics, and I agree that socialism is not the right term.

Like Thomas Sowell and John Mackey, I think that it’s technically more accurate to say that Obamacare is fascism – nominal private ownership but government control.

But I’ve also concluded that it’s a distraction to use that term. Which is why I prefer to call Obama a statist or corporatist. Though maybe we should add redistributionist to that list.

P.S. Here’s the Obama version of Socialism for Kids.

Read Full Post »

A couple of years ago, Newt Gingrich accused Obama of being a socialist, causing some squawking and grousing about incivility from the more sensitive types in Washington.

I jumped to the President’s defense, pointing out that Obama is a different type of statist.

I’m gratified that Thomas Sowell of Stanford University’s Hoover Institution agrees with me.

It bothers me a little when conservatives call Barack Obama a “socialist.” He certainly is an enemy of the free market, and wants politicians and bureaucrats to make the fundamental decisions about the economy. But that does not mean that he wants government ownership of the means of production, which has long been a standard definition of socialism. What President Obama has been pushing for, and moving toward, is more insidious: government control of the economy, while leaving ownership in private hands. That way, politicians get to call the shots but, when their bright ideas lead to disaster, they can always blame those who own businesses in the private sector. Politically, it is heads-I-win when things go right, and tails-you-lose when things go wrong. This is far preferable, from Obama’s point of view, since it gives him a variety of scapegoats for all his failed policies… Thus the Obama administration can arbitrarily force insurance companies to cover the children of their customers until the children are 26 years old. Obviously, this creates favorable publicity for President Obama. But if this and other government edicts cause insurance premiums to rise, then that is something that can be blamed on the “greed” of the insurance companies.

So what is the right technical description of what Obama is proposing? Well, if you allow nominal private property, but impose government control, it’s called fascism. Sowell agrees, and also adds some history for the unenlightened.

One of the reasons why both pro-Obama and anti-Obama observers may be reluctant to see him as fascist is that both tend to accept the prevailing notion that fascism is on the political right, while it is obvious that Obama is on the political left. Back in the 1920s, however, when fascism was a new political development, it was widely — and correctly — regarded as being on the political left. Jonah Goldberg’s great book “Liberal Fascism” cites overwhelming evidence of the fascists’ consistent pursuit of the goals of the left, and of the left’s embrace of the fascists as one of their own during the 1920s.Mussolini, the originator of fascism, was lionized by the left, both in Europe and in America, during the 1920s. Even Hitler, who adopted fascist ideas in the 1920s, was seen by some, including W.E.B. Du Bois, as a man of the left. …What socialism, fascism and other ideologies of the left have in common is an assumption that some very wise people — like themselves — need to take decisions out of the hands of lesser people, like the rest of us, and impose those decisions by government fiat. …Only our own awareness of the huge stakes involved can save us from the rampaging presumptions of our betters, whether they are called socialists or fascists. So long as we buy their heady rhetoric, we are selling our birthright of freedom.

All this being said, I want to reiterate something else that I wrote back in 2010. It is counterproductive to call Obama a fascist because that term is now linked to the specific form of evil produced by Hitler and the National Socialist Party.

So if you disapprove of Obama’s policies, call him a statist or a corporatist. Heck, you can say he believes in cronyism or maybe even collectivism. Those terms get across that he wants more government without causing needless controversy that distracts from the main message.

But make sure you apply the same term to Republicans who impose the same types of policies, such as Bush and Nixon.

Read Full Post »

Some of the world’s most disgusting and evil regimes restricted the right to emigrate, including the imposition of exit taxes designed to fleece those who did want to escape.

Given the evils of communism, you won’t be surprised to learn that the Soviet Union had such a policy. Here’s an excerpt from a 1972 story in the Palm Beach Post.

…citizens have been refused permission to leave the Soviet Union unless they pay a new tax… Nearly 500 Jews signed a letter to U.N. Secretary General Kurt Waldheim calling the tax an illegal “ransom” and an extreme injustice. Jews trying to emigrate to Israel have been the main victims of the new tax imposed by a decree… However, the tax is applied to anyone trying to emigrate from the Soviet Union.

Not surprisingly, the Nazis also used the same approach. Here are the relevant passages from a report by the World Jewish Congress.

… nearly a third of the German war effort was paid for with money stolen from Jews according a new study about the role of the German Finance Ministry during the ‘Third Reich’. …Ministry officials robbed an estimated 120 billion reichsmarks [the equivalent of nearly US$ 20 billion today] by looting and through stringent confiscation laws. …Tax laws discriminated against Jews from 1934, while some who managed to leave Germany before the Holocaust had much of their wealth seized through an ‘exit tax’.

Unfortunately, exit taxes still exist, and I’m embarrassed to say that the United States is one of the few countries to impose such a levy.

There’s no anti-Semitic motive for the tax. Instead, politicians have imposed exit taxes because some Americans decided to emigrate to jurisdictions with better tax law.  And rather than interpret this as a sign that the tax code was too onerous and should be replaced with something like a flat tax, they decided to enact a law to ransack people as they crossed the border.

But even this reprehensible policy isn’t enough for some of the clowns in Washington. Senator Barbara Boxer, the empty suit from the formerly Golden State, has decided that basic liberties such as the presumption of innocence are an impediment to tax enforcement. As such, she’s attached an odious provision to a transportation bill that would restrict the right to travel.

"Ihren papieren, bitte?"

A bill…that could potentially allow the federal government to prevent any Americans who owe back taxes from traveling outside the  U.S. is one step closer to becoming law. Senate Bill 1813 was introduced back in November by Senator Barbara Boxer (D-LosAngeles)… Section 40304 of the legislation states that any individual who owes more than $50,000 to the Internal Revenue Service may be subject to “action with respect to denial, revocation, or limitation of a passport”. … there does not appear to be any specific language requiring a taxpayer to be charged with tax evasion or any other crime in order to have their passport revoked or limited — only that a notice of lien or levy has been filed by the IRS.

The good news, at least relatively speaking, is that Boxer is only motivated by greed and statism. But the end result is still a reprehensible restriction on the liberty of people disfavored by the ruling elite.

If Barbara Boxer is any sort of example, no wonder California is such a mess, losing jobs and investment to other states.

Read Full Post »

Older Posts »


Get every new post delivered to your Inbox.

Join 2,891 other followers

%d bloggers like this: