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Commentary

Is Obama right to say that technology destroys jobs?

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From the Wall Street Journal, a rebuttal to the community organizer’s latest episode of economic illiteracy.

Excerpt:

Today, a couple of workers can manage an egg-laying operation of almost a million chickens laying 240,000,000 eggs a year. How can two people pick up those eggs or feed those chickens or keep them healthy with medication? They can’t. The hen house does the work—it’s really smart. The two workers keep an eye on a highly mechanized, computerized process that would have been unimaginable 50 years ago.

But should we call this progress? In a sense it sounds like a deal with the devil. Replace workers with machines in the name of lower costs. Profits rise. Repeat. It’s a wonder unemployment is only 9.1%. Shouldn’t the economy put people ahead of profits?

Well, it does. The savings from higher productivity don’t just go to the owners of the textile factory or the mega hen house who now have lower costs of doing business. Lower costs don’t always mean higher profits. Or not for long. Those lower costs lead to lower prices as businesses compete with each other to appeal to consumers.

The result is a higher standard of living for consumers. The average worker has to work fewer and fewer hours to earn enough money to buy a dozen eggs or a pair of shoes or a flat-screen TV or a new car that’s safer and gets better mileage than the cars of yesteryear. That higher standard of living comes from technology. It isn’t just the rich who get cheaper TVs and cars, plus the convenience of using an ATM at midnight.

Somehow, new jobs get created to replace the old ones. Despite losing millions of jobs to technology and to trade, even in a recession we have more total jobs than we did when the steel and auto and telephone and food industries had a lot more workers and a lot fewer machines.

Why do new jobs get created? When it gets cheaper to make food and clothing, there are more resources and people available to create new products that didn’t exist before. Fifty years ago, the computer industry was tiny. It was able to expand because we no longer had to have so many workers connecting telephone calls. So many job descriptions exist today that didn’t even exist 15 or 20 years ago. That’s only possible when technology makes workers more productive.

This is discussed more in Jay Richards’ book “Money, Greed and God“, which is an excellent little introduction to economics meant for Christians. The chapter you want is on “The Materialist Myth”, which is the idea that wealth is only ever shuffled around, and never created.

News

Obama’s retreat defies military commanders and emboldens terrorists

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The Heritage Foundation analyzes Obama’s decision to cut and run in Afghanistan.

Excerpt:

President Obama’s plan for a hasty withdrawal of U.S. troops from Afghanistan risks squandering the hard-won gains made on the battlefield in southern Afghanistan over the last ten months.

U.S. military commanders on the ground in Afghanistan had reportedly requested a slower pace of withdrawal to afford them the opportunity to consolidate recent gains against Taliban insurgents.  President Obama has denied his military commanders flexibility to determine the pace and scope of withdrawal based on conditions on the ground, and instead appears to have based his decision largely around the U.S. domestic political calendar.

The plans for rapidly withdrawing U.S. troops from Afghanistan also risks upending the major achievement of eliminating Osama bin Laden across the border in Pakistan.

Bin Laden’s death and an aggressive drone campaign in Pakistan’s tribal border areas have put al-Qaeda on its back foot.  The Administration deserves credit for accomplishing this crucial objective.

However, it is short-sighted to use bin Laden’s death as justification for hastening the U.S. troop draw down in Afghanistan.  Announcing rapid withdrawal of U.S. forces will likely bolster the morale of the Taliban and encourage them to stick with the fight.  Since al-Qaeda has not yet dissolved as an organization and its relationship with the Taliban remains strong, reducing military pressure on the Taliban in Afghanistan could benefit al-Qaeda and provide it a lifeline at a critical juncture in the fight against terrorism.

The withdrawal plan will signal to both our Afghan allies and enemy forces that the U.S. is more committed to withdrawing its forces than the long-term goal of stabilizing the country. The U.S. made a grave error in turning its back on Afghanistan after the Soviets departed in 1989. President Obama’s speech will stoke fears that the U.S. is getting ready to repeat a similar mistake.

Obama’s announcement on rapid troop withdrawals from Afghanistan will further discourage Pakistan from cracking down on the Taliban leadership that finds sanctuary on its soil. The speech will reinforce Islamabad’s calculation that the U.S. is losing resolve in the fight in Afghanistan and thus encourage Pakistani military leaders to continue to hedge on support to the Taliban to protect their own national security interests.

And more from the Wall Street Journal.

Excerpt:

President Obama delivered a remarkable speech last night, essentially unplugging the Afghanistan troop surge he proposed only 18 months ago and doing so before its goals have been achieved. We half expected to see a “mission accomplished” banner somewhere in the background.

Not long ago, Secretary of Defense Robert Gates spoke about only a token drawdown this year, but he’s now on his way out of the Pentagon. This time Mr. Obama overruled his military advisers and sided instead with Vice President Joe Biden and his political generals who have their eye on the mission of re-election. His real generals, the ones in the field, will now have to scramble to fulfill their counterinsurgency mission, if that is still possible.

[…]In justifying the withdrawal, Mr. Obama repeatedly stressed the damage we’ve done to al Qaeda. Yet most of those successes have been mounted from Afghanistan, including the killing of Osama bin Laden. Mr. Obama stressed that he’ll continue to press Pakistan to cooperate in attacking terrorist havens, but his accelerated withdrawal schedule will make that persuasion harder. The Pakistan military will now almost surely not act against the Afghan Taliban. The Pakistanis will press instead for a “reconciliation” between the Afghan government and Taliban leaders, who will be the most relieved by last night’s speech.

Republican reactions to Obama’s decision to cut and run, taken from the left-leaning Washington Post.

Excerpt:

Likewise from House Republican Policy Committee Chairman Tom Price (R-Ga.) came a blast:

“The brave men and women of our military continue to risk their lives to ensure that Afghanistan does not once again become a safe haven for terrorists who seek to kill Americans and our allies. . . . President Obama must lead. Leadership in this instance means making decisions based on conditions on the ground, listening to our military commanders and not changing strategy for political purposes. If the president is unwilling or unable to lead with resolve and commitment, if he continues to telegraph our strategy and tactical decisions to the enemy, then he should admit to the country that his administration will not support the fight that is necessary, and bring our brave men and women home now.”

[…]Sen. Mark Kirk (R-Ill.) had this statement:

“I am concerned that the President has not followed the recommendations of General Petraeus on the timing of our withdrawal from Afghanistan. The General was successful in Iraq by maintaining American momentum while the Iraqi army grew to the size needed to maintain long-term security. To repeat his victory formula in Afghanistan, we would need to maintain military momentum against Al Qaeda and the Taliban until the Afghan army reaches critical mass of 400,000 troops— estimated to be achievable by 2014. We withdrew our support and ignored Afghanistan in the 1990s and paid a high price in 2001. We should learn from that mistake and back the Petraeus strategy.”

I’m anxious to hear the reactions from General Petraeus and the other battlefield commanders.

Commentary

MUST-READ: Melanie Phillips blames single mothers for family breakdown

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Melanie Phillips
Melanie Phillips

Melanie Phillips takes UK Conservative Party leader David Cameron to task in the UK Daily Mail. Sent to me by Dina! I love this article!

Excerpt:

Singling out ‘runaway dads’ for censure, [David Cameron] said that such individuals should be treated like drunk drivers — people who are beyond the pale and upon whom should be heaped ‘the full force of shame’.

Now, excoriating ‘runaway’ or ‘deadbeat’ dads is a familiar refrain. We all know the scenario: feckless youths getting one girl pregnant after another and abandoning each one in turn, playing next to no part in the upbringing of the children they have serially fathered.

This is, indeed, reckless and reprehensible behaviour. But it is only part of a much more complex and deeply rooted problem.

Most pertinently, it totally ignores the fact that there is another feckless actor in this dysfunctional family drama — the mother, who may be having children by a series of different men.

In line with politically correct thinking, Mr Cameron presents such girls or women as the hapless victims of predatory males. But that is just plain wrong. For at the most fundamental level, this whole process is driven by women and girls.

In those far-off days before the sexual revolution, relations between the sexes were based on a kind of unspoken bargain.

Women needed the father of their children to stick around while they grew up, in return for which a woman gave a solemn undertaking to be faithful to this one man.

For his part, the father’s interests were served by being offered not just a permanent sexual relationship but a guarantee from the trust placed in his wife that the children were, indeed, his.

With the combination of the sexual revolution, the Pill and the welfare state, however, women’s interests changed. Suddenly they were being told sex outside marriage was fine, unmarried motherhood was fine — and crucially, that the welfare state would provide them with the means to live without male support.

Among upper-middle-class trendies, marriage became an irksome anachronism and ‘living together’ became fashionable.

At the bottom of the social scale, however, these permissive signals from above combined disastrously with widespread unemployment among young men, whose lack of income made them an unattractive marriage prospect.

As a result, girls decided that, while they wanted a baby, the available fathers were usually a waste of space and so they didn’t want them to remain a part of their lives.

These young men then treated the message that they weren’t wanted as a licence for irresponsibility. And so the ‘runaway dad’ was born.

To single out these boys for censure — while calling lone mothers ‘heroic’, as Mr Cameron did — is not only unfair and perverse, but will fail to get to grips with the problem.

If it is to be remedied, women and girls have to come to a different conclusion about where their interests lie.

That means the welfare state has to stop playing the role of surrogate husband through the benefits it gives single mothers.

READ THE WHOLE THING. As with Canada’s Barbara Kay, I am not in full agreement with Melanie on every topic. But she is awesome on this topic!

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