Podcasts

Economist Thomas Sowell explains why wealth redistribution doesn’t work

9 Comments
Thomas Sowell, an economist for the people
Thomas Sowell, an economist for the people

A whole slew of people are linking to this article by famous economist Thomas Sowell.

Excerpt:

The history of the 20th century is full of examples of countries that set out to redistribute wealth and ended up redistributing poverty. The communist nations were a classic example, but by no means the only example.

In theory, confiscating the wealth of the more successful people ought to make the rest of the society more prosperous. But when the Soviet Union confiscated the wealth of successful farmers, food became scarce. As many people died of starvation under Stalin in the 1930s as died in Hitler’s Holocaust in the 1940s. [Professor Sowell is referring to the forced collectivization of the Ukraine.  If you want to inform yourself of the horrors thereof, I recommend  Robert Conquest, The Harvest of Sorrow: Soviet Collectivization and the Terror-Famine, Oxford UP, 1986.]

How can that be? It is not complicated. You can only confiscate the wealth that exists at a given moment. You cannot confiscate future wealth — and that future wealth is less likely to be produced when people see that it is going to be confiscated. Farmers in the Soviet Union cut back on how much time and effort they invested in growing their crops, when they realized that the government was going to take a big part of the harvest. They slaughtered and ate young farm animals that they would normally keep tending and feeding while raising them to maturity.

[…]Among the most valuable assets in any nation are the knowledge, skills, and productive experience that economists call “human capital.” When successful people with much human capital leave the country, either voluntarily or because of hostile governments or hostile mobs whipped up by demagogues exploiting envy, lasting damage can be done to the economy they leave behind.

Fidel Castro’s confiscatory policies drove successful Cubans to flee to Florida, often leaving much of their physical wealth behind. But poverty-stricken refugees rose to prosperity again in Florida, while the wealth they left behind in Cuba did not prevent the people there from being poverty-stricken under Castro. The lasting wealth the refugees took with them was their human capital.

Stuart Schneiderman had this to say about the piece:

If the productive members of society are no longer working for themselves and their progeny they are going to be less productive. They have less incentive to produce when more of what they produce, or more of the profit, is going to be taxed or confiscated.

Besides, when you confiscate wealth people will resist and will spend more of their time and energy trying to keep what they have earned. This time and energy could be used for more productive activities.

Since wealth exists in assets whose value is determined in a market, a regime that confiscates assets will force the wealthy to liquidate their assets, thus lowering the value of everyone’s assets and making it far more difficult to attract investment capital.

I was happy to receive the 4th edition of Thomas Sowell’s “Basic Economics” textbook from one of our readers in New York city. (Thanks Tom!) If you are a Christian who is interested in economics, I really recommend that you pick up “Intellectuals and Society“, which is a great introduction to his thought.

I once was courting a young homeschooled lady who was skeptical of university degrees. She read one Thomas Sowell book, then read 5 more – all within a 6 week period. She then went on to do a B.A. in economics. If you are a Christian looking to branch out into economics, Thomas Sowell is your man. You can’t read just one of his books. It’s absolutely impossible.

News

Antarctic sea ice now at the highest level ever recorded

9 Comments

From Forbes magazine.

Excerpt:

Antarctic sea ice set another record this past week, with the most amount of ice ever recorded on day 256 of the calendar year (September 12 of this leap year). Please, nobody tell the mainstream media or they might have to retract some stories and admit they are misrepresenting scientific data.

Here’s the raw data from UIUC.

Now back to the Forbes article:

National Public Radio (NPR) published an article on its website last month claiming, “Ten years ago, a piece of ice the size of Rhode Island disintegrated and melted in the waters off Antarctica. Two other massive ice shelves along the Antarctic Peninsula had suffered similar fates a few years before. The events became poster children for the effects of global warming. … There’s no question that unusually warm air triggered the final demise of these huge chunks of ice.”

NPR failed to mention anywhere in its article that Antarctic sea ice has been growing since satellites first began measuring the ice 33 years ago and the sea ice has been above the 33-year average throughout 2012.

Indeed, none of the mainstream media are covering this important story. A Google News search of the terms Antarctic, sea ice and record turns up not a single article on the Antarctic sea ice record. Amusingly, page after page of Google News results for Antarctic sea ice record show links to news articles breathlessly spreading fear and warning of calamity because Arctic sea ice recently set a 33-year low.

Sea ice around one pole is shrinking while sea ice around another pole is growing. This sure sounds like a global warming crisis to me.

But that only accounts for “melting” polar ice caps – what about those cute little polar bears who have no ice to stand on and who are in danger of falling into the water and going extinct, because polar bears can’t swim???!!1?!1!ELEVENTY-ONE!?

From the Globe and Mail. (H/T Neil)

Excerpt:

The debate about climate change and its impact on polar bears has intensified with the release of a survey that shows the bear population in a key part of northern Canada is far larger than many scientists thought, and might be growing.

The number of bears along the western shore of Hudson Bay, believed to be among the most threatened bear subpopulations, stands at 1,013 and could be even higher, according to the results of an aerial survey released Wednesday by the Government of Nunavut. That’s 66 per cent higher than estimates by other researchers who forecasted the numbers would fall to as low as 610 because of warming temperatures that melt ice faster and ruin bears’ ability to hunt. The Hudson Bay region, which straddles Nunavut and Manitoba, is critical because it’s considered a bellwether for how polar bears are doing elsewhere in the Arctic.

The study shows that “the bear population is not in crisis as people believed,” said Drikus Gissing, Nunavut’s director of wildlife management. “There is no doom and gloom.”

[…]The debate over the polar-bear population has been raging for years, frequently pitting scientists against Inuit. In 2004, Environment Canada researchers concluded that the numbers in the region had dropped by 22 per cent since 1984, to 935. They also estimated that by 2011, the population would decrease to about 610. That sparked worldwide concern about the future of the bears and prompted the Canadian and American governments to introduce legislation to protect them.

But many Inuit communities said the researchers were wrong. They said the bear population was increasing and they cited reports from hunters who kept seeing more bears.

So the ice isn’t melting on one of the poles, and the polar bears aren’t going extinct from drowning. Hmmmn.

Actually, if this data can be spun as a global cooling crisis, and then the socialists can continue pushing for more government regulation of the free market, more abortions and higher gas prices. All that has to be done is for the media to explain that it was always global cooling that we needed to fear. Like in that George Orwell novel “1984”, with the continuous war in Eastasia or Eurasia. Only this time, it could be real.

Related posts

News

UK socialism in action: patients waiting on trolleys for over 50 hours

Leave a comment

From the UK Daily Mail. (H/T Dina)

Excerpt:

Being rushed to hospital or taking your loved one to A&E can be a frightening experience. However, experts have recently highlighted a disturbing trend that will only make it worse.

They say hospitals are bursting at the seams, and a combination of poor out-of-hours GP services, budget cuts and a shortage of beds mean many patients are being parked on trolleys in A&E corridors and side rooms like left luggage.

Indeed, Department of Health figures, revealed last month by the Nursing Times, suggest nearly 67,000 patients waited  up to 12 hours on a trolley in the first half of this year.

And this may simply be the tip of the  iceberg, as NHS analysts say clever number-crunching by hospitals may be hiding the true extent of the problem.

As this Good Health investigation reveals, more than a quarter of hospitals have reported cases where patients have been left on trolleys for 12 hours or more — up to 50 hours in one case. In most NHS hospital trusts, patients waited less than three hours for a bed on a ward (the average was one hour 36 minutes). However, in six  (7 per cent) of hospitals the average wait on a trolley was three hours or more.

Think that’s an anomaly? Consider this.

From the UK Daily Mail:

NHS doctors are prematurely ending the lives of thousands of elderly hospital patients because they are difficult to manage or to free up beds, a senior consultant claimed yesterday.

Professor Patrick Pullicino said doctors had turned the use of a controversial ‘death pathway’ into the equivalent of euthanasia of the elderly.

He claimed there was often a lack of clear evidence for initiating the Liverpool Care Pathway, a method of looking after terminally ill patients that is used in hospitals across the country.

It is designed to come into force when doctors believe it is impossible for a patient to recover and death is imminent.

It can include withdrawal of treatment – including the provision of water and nourishment by tube – and on average brings a patient to death in 33 hours.

There are around 450,000 deaths in Britain each year of people who are in hospital or under NHS care. Around 29 per cent – 130,000 – are of patients who were on the LCP.

More from a different UK Daily Mail article:

The health service ‘looks like a supertanker heading for an iceberg’, the head of the NHS Confederation has warned.

His comment came as a survey revealed the squeeze on NHS finances is so serious that almost half of its leaders think it will reduce quality of care for patients over the next year.

The research, carried out before the confederation’s annual conference in Manchester, shows that NHS leaders fear that growing financial pressures will mean treatment rationing and longer waiting times.

Of the 252 chief executives and chairs of NHS organisations questioned, almost half believe the financial burden on the health service is ‘very serious’ and 47 per cent say this means quality of care will reduce over the next 12 months.

Mike Farrar, chief executive of the confederation which represents organisations providing NHS services, said: ‘Despite huge efforts to maintain standards of patient care in the current financial year, healthcare leaders are deeply concerned about the storm clouds that are gathering around the NHS.

‘Our survey shows that many NHS leaders see finances getting worse and that this is already having a growing impact on their patients. In response, they are cutting costs in the short term but they know that much more radical solutions are the only answer in the long run.

[…]Mr Farrar added that politicians had ‘consistently failed’ to put the long-term interests of the population’s health above their short-term electoral interests.

[…]Katherine Murphy, chief executive of the Patients Association said: ‘This survey confirms what everybody inside the health and social care system is already saying – the next decade is likely to be the most challenging one in the history of the NHS.

‘Treatments are being rationed, waiting times for elective procedures are going up and patients continue to be treated poorly on our hospital wards.

Where does the money go in a socialist system? Well, the NHS spends £1 million a week on repeat abortions. So if you like having abortions, those are free – and you can have as many as you want. It’s “health care”. You can also have free taxpayer-funded IVF, which is especially valuable for men. Or you can have treatment for AIDS, which is especially useful for married people and chaste people. Or you can have free breast enlargements and free sex changes – even if you are a convicted murderer. That’s government-run health care in a socialist feminist welfare state. Pay up, sucka.

Of course, if you need a drink of water, you’re out of luck.

In a government-run system, whether you get treatment or not depends on a bureaucrat, whose only desire is to be re-elected. Sometimes, killing you is the best way for them to get re-elected, as seen in the euthanasia numbers. But, in a private health care system, it makes no sense to kill patients, because then the money stops coming in. Doctors actually care about you in a for profit system. They want to help you, and they want you to live.

Related posts