Tag Archives: Nationalization

Donald Trump has done more than all of his rich critics to reduce carbon emissions

How much have countries cut carbon emissions?
How much have countries cut carbon emissions?

I wanted to look at who has been doing the most to cut carbon emissions. Then we’ll look at whether the secular left supports the technologies that achieved actual cuts in carbon emissions. Then we’ll look at the technologies that the secular left supports, to see whether they achieve similar success. Then we’ll draw a conclusion about the environmentalism of the secular left.

Let’s start with the data on carbon emissions. As you can see from the graph above, the biggest offenders are China and India. These countries make a show about caring for the environment to shame America, but the truth is that they are the biggest polluters of all, and getting worse.

Daily Wire reports:

The United States led the entire world in reducing CO2 emissions last year while also experiencing solid economic growth, according to a newly released report.

“The United States saw the largest decline in energy-related CO2 emissions in 2019 on a country basis – a fall of 140 Mt, or 2.9%, to 4.8 Gt,” The International Energy Agency (IEA) reported on Tuesday. “US emissions are now down almost 1 Gt from their peak in the year 2000, the largest absolute decline by any country over that period.”

[…]The IEA noted that 80% of the increase in CO2 emissions came from Asia and that China and India both contributed significantly to the increase.

So how was America able to do that? The answer is that they they adopted zero-emission technologies, specifically fracking and nuclear power:

[…][C]heap, natural gas, made available by fracking, has already made the U.S. the world leader in carbon emissions reduction. By allowing gas to displace coal as the leading fuel for domestic power generation, fracking has already done more to reduce emissions than the combined activity of all the environmental activists in human history. Renewables such as wind and solar, which still play only a minor role in generation, cannot operate without the flexible backup that gas provides for those times when the wind stops and the sun sets or goes behind a cloud.

Natural gas will help reduce carbon emissions in the short run. But nuclear is the only long-term answer if you’re worried about climate change.

It should be noted that the secular left opposes both fracking and nuclear power, and that’s because they’re either lying about their concern for the environment (possible) or they think that renewable energies like wind and solar can do the job. But can they?

Environmentalists burning helicopter fuel to de-ice wind turbines one at a time
Environmentalists burning helicopter fuel to de-ice wind turbines one at a time

Far-left NPR explains:

While most of a turbine can be recycled or find a second life on another wind farm, researchers estimate the U.S. will have more than 720,000 tons of blade material to dispose of over the next 20 years, a figure that doesn’t include newer, taller higher-capacity versions.

There aren’t many options to recycle or trash turbine blades, and what options do exist are expensive, partly because the U.S. wind industry is so young. It’s a waste problem that runs counter to what the industry is held up to be: a perfect solution for environmentalists looking to combat climate change.

It’s difficult to transport the blades. There are few landfills big enough to accommodate them. And no one has the expensive equipment to cut them down to smaller sizes. But wait! There are more problems.

My problems with wind and solar power are simple. They are extremely expensive, which raises the cost of electricity to consumers and businesses. They are extremely unreliable, and require constant maintenance and backup-support from traditional high-pollution sources. And most importantly, they mass murder birds, including protected birds, by the millions. That last reason along is enough to make me oppose them. I love birds!

Forbes magazine points out problems with the wind and solar power favored by the secular left:

In reality, solar farms require hundreds of times more land, an order of magnitude more mining for materials, and create hundreds of times more waste, than do nuclear plants.

And wind farms kill hundreds of thousands of threatened and endangered birds, may make the hoary bat go extinct, and kill more people than nuclear plants.

We can find out what happens when the secular-leftists get their way on energy policy by looking at France and Germany, where it’s already been tried:

Just contrast Germany and France. Germany has done much of what the Green New Deal calls for. By 2025 it will have spent $580 billion on renewables and related accoutrement, while shutting down its nuclear plants.

All that Germany will have gotten for its “energy transition” is a 50% increase in electricity prices, flat emissions, and an electricity supply that is 10 times more carbon-intensive than France’s.

[…]France spent $30 billion on renewables and saw the carbon intensity of its electricity supply, and electricity prices, rise.

France and Germany and every other real world situation prove that nuclear power is the only way to significantly, deeply, and cheaply decarbonize energy supplies, and thus address climate change.

The problem with nuclear is that it doesn’t demand the radical re-making of society, like renewables do, and it doesn’t require grand fantasies of humankind harmonizing with nature.

Nor does nuclear provide cover for funnelling billions to progressive interest groups in the name of “community-controlled renewable energy, local organic agriculture, or transit systems.”

The secular left opposes zero-emission technologies like fracking and nuclear, and there’s a reason for that. Those technologies reduce the cost of electricity. Which means that people can use as much electricity as they like. But the secular left doesn’t want people to have low-cost electricity. They can only NATIONALIZE the energy industry (i.e. – COMMUNISM) because people complain about the high costs of electricity. The secular left has already been pursuing this policy of raising the cost of education and healthcare with government subsidies and regulations, in order to convince voters that the only solution to (artificially) inflated costs is for government to step in and take control. In countries like Canada, this is the exact model they adopted, (e.g. Ontario Hydro under Kathleen Wynne), in order to raise the prices of electricity. That is their real goal.

We do not want this, because the seizing of private property, redistribution of wealth, and nationalization of industry are precisely the policies that lead countries like Venezuela and Cuba into long-term poverty. The secular leftists don’t care if the quality of your utilities, education and health care drop precipitously because it is run by the government. Their goal is for the elites to fly around in private jets with armed security, while the little people wait in bread lines for food, wait for health care for months, and are indoctrinated to love communism in college.

How a small third world country became the top economy in Latin America

South America Map
South America Map

So, I’ve been watching the Democrat debates, and I’ve noticed that all of their candidates are proposing economic policies that they say will improve the lives of Americans. But have the candidates ever been able to try out these policies, and proven that they work? One way to evaluate policies is to look at other countries that have tried them, to see if those policies are proven to work.

I’ve been reading a book called “Money, Greed and God” with my friend Carla, which talks about what does and does not work to alleviate poverty. The author basically outlined two approaches. In the first approach, the government 1) confiscates the wealth of the most productive workers, 2) nationalizes (takes control of) the businesses of the most successful entrepreneurs, 3) restricts trading between citizens and with other countries, with minimum wage, price controls and tariffs. In the second approach, the government does the opposite: 1) lowers taxes on the most productive workers, and 2) lets entrepreneurs compete to provide goods and services to consumers, and 3) lowers restrictions on internal trading and trading with other countries, e.g. – eliminating minimum wage, tariffs and price controls.

Let’s take a look at two Latin American countries that went in opposite directions. Venezuela and Chile. Then we can finally find out which policies actually achieve results for the people.

Here is how Chile started out in 1973.

PROBLEM: Price controls and tariffs:

Prices for the majority of basic goods were fixed by the government in 1973. Even though Chile was and still is a small economy, the level of protection­ism was high. By the end of 1973, the nominal average tariff for imports was 105 percent, with a maximum of 750 percent. Non-tariff barriers also impeded the import of more than 3,000 out of 5,125 registered goods. Just as economic theory predicts, large queues in front of stores were usual in Santiago and other cities in Chile as a result of the scarcity caused by price controls.

PROBLEM: Government taking over private businesses:

The decline in GDP during 1973 reflected a shrinking productive sector in which the main assets were gradually falling under government control or ownership through expropriations and other government interventions in the economy.

PROBLEM: Deficit spending and government printing money:

The fiscal situation was chaotic. The deficit reached 55 percent of expenditures and 20 percent of GDP and was the main cause of inflation because the Central Bank was issuing money to finance the government deficit.

SOLUTION: lower or eliminate restrictions on trade:

The most important economic reform in Chile was to open trade, primarily through a flat, low tar­iff on imports. Much of the credit for Chilean eco­nomic reforms in the following 30 years should be given to the decision to open our economy to the rest of the world. The strength of Chilean firms, productive sectors, and institutions grew up thanks to that fundamental change.

SOLUTION: let competing entrepreneurs in the private sector provide goods and services to consumers:

A second fundamental reform was to allow the private sector to recover, adding dynamism to the economy. In fact, important sectors such as elec­tricity generation and distribution and telecommu­nications were still managed by state companies. After we implemented a massive privatization plan that included more than 50,000 new direct share­holders and several million indirect (through pen­sion funds) shareholders, these companies were managed by private entrepreneurs that carried out important expansion plans.

SOLUTION: let people take responsibility for their own lives instead of depending on government:

The 1981 reform of the Chilean pension fund system deserves special mention. Under the leader­ship of Minister José Piñera, an individual capitali­zation account program was designed with specific contributions, administered by private institutions selected by the workers. The Chilean Administra­doras de Fondos de Pension (Pension Fund Administrators or AFP) has been replicated in more than 20 countries, and more than 100 million workers in different parts of the world use these accounts to save for retirement.

SOLUTION: allow parents to choose the school that fits their needs from competing education providers, and push school administration down from the federal government to the municipal level, where it would be more responsive to voter’s needs:

In 1981, Chile introduced a universal educational voucher system for students in both its elementary and secondary schools. At the same time, the central government transferred the administration of public schools to municipal governments…  The financial value of the voucher did not depend on family income.

RESULTS: And I was able to find a nice short, description of how all that worked out for them on the far-left Wikipedia, of all places:

The economy of Chile is a high-income economy as ranked by the World Bank, and is considered one of South America’s most stable and prosperous nations, leading Latin American nations in competitiveness, income per capita, globalization, economic freedom, and low perception of corruption.

In 2006, Chile became the country with the highest nominal GDP per capita in Latin America. In May 2010 Chile became the first South American country to join the OECD. Tax revenues, all together 20.2% of GDP in 2013, were the second lowest among the 34 OECD countries, and the lowest in 2010. In 2017, only 0.7% of the population lived on less than US$1.90 a day.

According to the Heritage Foundation, Chile is ranked as the 18th freest economy in the world. The World Bank ranked Chile as the 50th highest GDP per capita for 2018, just below Hungary and above Poland.

Now, you can contrast those results with Venezuela. I have been blogging about Venezuela for years on this blog, and documenting how they raised taxes, banned guns, nationalized private sector companies, raised tariffs, and increased regulations. They are now ranked JUST ABOVE NORTH KOREA for economic freedom – #179 out of 180 countries measured. Basically, they did the opposite of everything that Chile did – transferring power away from parents, workers, business owners, churches and municipal governments to the powerful centralized federal government.

Wikipedia explains how Hugo Chavez took over in 1999 and enacted a communist revolution.

More:

Since the Bolivarian Revolution half-dismantled its PDVSA oil giant corporation in 2002 by firing most of its 20,000-strong dissident professional human capital and imposed stringent currency controls in 2003 in an attempt to prevent capital flight, there has been a steady decline in oil production and exports. Further yet, price controls, expropriation of numerous farmlands and various industries, among other government authoritarian policies… have resulted in severe shortages in Venezuela and steep price rises of all common goods, including food, water, household products, spare parts, tools and medical supplies; forcing many manufacturers to either cut production or close down, with many ultimately abandoning the country as has been the case with several technological firms and most automobile makers.

They confiscated private property, took over private sector businesses, implemented tariffs and price controls, redistributed wealth via massive welfare programs, and pushed all decision-making out of families and municipal governments up to the federal government. By depriving the producers of their earnings, the country caused massive shortages of goods and services, to the point where people are fleeing the country, consuming zoo animals, and selling their bodies as prostitutes in order to get food and water.

Application

In the next election, we are not picking a tribe because of how they make us feel about ourselves. We are not choosing in order to see ourselves as “nice” and “not nice”. We need to look at specific policies being proposed, and see what works and what doesn’t work. The examples of Chile (rags-to-riches) and Venezuela (riches-to-rags) are helpful for voters who want to get RESULTS instead of FEELINGS.

I’ll leave you with a list of links from previous posts so you can see how communism worked out for Venezuela.

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How well is Alexandria Ocasio-Cortez’s socialism working out in socialist Venezuela?

Alexandria Ocasio-Cortez has some ideas about proper economic policy
Alexandria Ocasio-Cortez says Socialism loves you, and has a wonderful plan for your life

Well, it looks like young people are getting more and more exciting about the prospect of voting in socialism. We have a $22 trillion debt, we’re running $1 trillion plus deficits, and now’s the time for the government to take over the economy and give everybody free everything!!! Well, trouble is, that’s actually been tried… in Venezuela.

The Daily Wire reports:

Once considered the wealthiest country in Latin America, Venezuela has become a socialist hellhole where girls as young as 14 are selling their bodies in exchange for a few bucks a “service” and heterosexual men are prostituting themselves out on the gay sex market. These desperate souls are trying to escape the economic policies advocated here in United States by the Left’s increasingly mainstream Bernie Sanders/Alexandria Ocasio-Cortez wing.

A Fox News report from journalist Hollie McKay exposed the socialism-induced horror show on the trail from Venezuela to neighboring Colombia. “Thousands upon thousands of Venezuelans pour into Colombia over the crowd cross-country bridge, their faces gaunt, carrying little more than a backpack. Rail-thin women cradle their tiny babies, and beg along the trash-strewn gutters. Teens hawk everything from cigarettes to sweets and water for small change,” McKay reports.

Malnourished girls and women are selling anything they can, including their bodies, breast milk, and hair, to survive, reports McKay. Females as young as 14 are receiving a reported seven dollars on average “per service”; a woman’s hair might be sold in exchange for a measly $10-30.

And as desperate Venezuelans hand over their papers and identification to “pimp types,” sex trafficking has become the norm. Men are selling themselves, too: straight men, some being trafficked, are performing gay sex acts in exchange for money.

Well, is it really that bad to let strangers with STDs rape you in exchange for food? That sounds like a sex-positive socialist paradise to me!

But wait! There’s more socialist paradise:

Last year, The Daily Beast reported that starving Venezuelans had resorted to killing pets and zoo animals for food while dictator Nicolas Maduro and his fellow chubby elites maintained access to everything they need. “One morning in August at the metropolitan zoo in the torrid city of Maracaibo, workers were shocked to find the bones of a buffalo and some wild pigs inside their cages with clear signs of mutilation. Thieves allegedly stole the meat to eat what they could and sell the rest on the local market,” said the report.

Back in Venezuela, suicide is up, particularly with children and teens, health care is basically nonexistent since an estimated 55% of the nation’s medical professionals have fled the country, and at least 70% of the population are estimated to be suffering from acute malnutrition and starvation.

Wow, talk about animal rights. They’re so far ahead of us that they stopped keeping animals in cages! Yay, animal rights. And think of how good all these suicides are for the overpopulation problem? Venezuela has global warming on the run. After all, dead people can’t drive cars and emit greenhouse gasses. Everything is awesome when socialists rule. We should definitely elect people who want us to be like Venezuela. And Cuba. And North Korea.

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How did Obama’s plan to let government run student loans work out?

Obama nationalized student loan administration in 2010
Obama nationalized student loan administration in 2010

I’m a free-market capitalist, so I believe that economic decision-making is best done by the people it concerns, not the people in government. If it is a decision that affects the family, let the family decide. If it’s a decision that affects the business, let the business owner decide. Obama has a different view – he thinks that government should make all of the decisions, even though government earns none of the money.

Here is an article in Investor’s Business Daily about his policy of letting the government take over student loan decision-making.

Excerpt:

A report from the Department of Education notes that the net cost of the federal government’s direct loan program is quickly heading into the red. This program, mind you, was supposed to be a moneymaker for the government, as students paid back federal loans with interest.

But as it turns out, borrowers have been flocking toward various loan forgiveness programs, by which the government will lose money, erasing gains from other loans. The report shows that the direct loan program went from a $25 billion surplus in 2012 to less than $5 billion by 2015.

A separate report says that this program ran a $36 billion deficit last year, up from $8.4 billion in 2016.

This is not how this federal loan program was supposed to work when President Obama launched it eight years ago.

In 2010, President Obama effectively nationalized student lending by cutting banks — which had been offering government-backed loans to students — out of the equation and having the government make the loans itself.

“By cutting out the middleman, we’ll save the American taxpayers $68 billion in the coming years,” Obama said when he signed this change into law. “That’s real money.”

As a result, federal student loan debt shot up from $154.9 billion in 2009 to $1.1 trillion by the end of 2017.

As everyone knows, under Obama’s big government leadership, the national debt skyrocketed from $10 trillion to $20 trillion in only 8 years. Obama ran up as much debt in his 8 years as ALL the other presidents, combined. Why? It’s simple. Because government isn’t as careful with other people’s money as people are careful with their own money. People make better decisions than government because they care about the money more – they earned it. The right people to solve an economic problem are the people in the families, and the people at the local bank branches nearby. When government takes over economic decision-making, they use other people’s money to buy the votes of people who make poor decisions.

We shouldn’t be allowing students to take 4-year vacations at taxpayer expense, so that they can learn English or Women’s Studies and then stick taxpayers with the bill. Some of those taxpayers had to study hard things like engineering and pay their own way. Some of those taxpayers had to get jobs in the trades as electricians and plumbers to pay for the bad decisions of these spoiled brats. Student loan administration should not be something for big government to control. When government decides who gets loans, students feel no pressure to study subjects and get credentials that will allow them to pay back what they borrowed. I want the banks to make the lending decisions and loan out their own money, so that they can deny people who are studying nonsense that won’t get a return.

That’s why we should never have elected a big-government liberal to be president. They make a lot of promises about how great they are with money, but it never works out. Big government is never the answer to problems that are outside of what the Constitution describes as the boundaries of government.

(Image Source)

Venezuela solves hunger by banning bread lines, and solves crime by banning self-defense

Two socialists shake hands: Barack Obama and Hugo Chavez
Two socialists shake hands: Barack Obama and Hugo Chavez

First, let’s review who has been running Venezuela, and what they’ve been doing in the last few decades.

Here is an article from March 2013 from the radically leftist Slate. The headline is “Hugo Chavez’s economic miracle: The Venezuelan leader was often marginalized as a radical. But his brand of socialism achieved real economic gains”. The author is “a senior writer for the International Business Times”.

He writes:

Chavez became the bugaboo of American politics because his full-throated advocacy of socialism and redistributionism at once represented a fundamental critique of neoliberal economics, and also delivered some indisputably positive results. Indeed, as shown by some of the most significant indicators, Chavez racked up an economic record that a legacy-obsessed American president could only dream of achieving.

What did Chavez do, precisely, that caused the Venezuelan economic to boom? Well, he nationalized private industry and redistributed wealth from job creators and entrepreneurs to the poor.

As The Week correctly put it, while “Chavez’s policies of redistribution and nationalization of oil assets endeared him to Venezuela’s working class” and produced many laudable results, the country’s “oil-centric economy has taken away resources from other areas that are badly in need of development.”

It’s a miracle! Yay for socialism! Well, that’s what leftists thought – this time, for sure, the laws of economics would be suspended and unicorns would fly.

Reason.com reports on what happened next:

The tragedy of Venezuela continues unabated, but that doesn’t mean the government of President Nicolás Maduro has stopped trying to fix problems like the devastating scarcity of food which has led to malnutrition, riots, food truck hijackings, vigilante lynchings of petty thieves, and the starvation of zoo animals.

No, Maduro hasn’t admitted the failure of Chavismo — the brand of Bolivarian socialism imposed on the oil-rich country by his late predecessor Hugo Chavez — instead, Venezuela’s embattled leader has launched a war on “anxiety.”

The National Superintendency of Fair Prices has reportedly instituted a policy of fining bakeries that allow lines to stretch out their front doors, according to PanAmPost. The head of this particular bureaucracy, William Contreras, claims the lines aren’t a true indicator of a severe shortage of bread, but rather, a political “strategy of generating anxiety.”

[…][T]his is indicative of the magical thinking of Venezuela’s socialist government: the breakdown of the economy couldn’t possibly because of failed economic policy, and scarcity must be the result of a greater conspiracy.

Fine, so they solved the problem of not enough bread by banning line-ups for bread. Great. But what about Venezuela’s astronomically high murder rate? What will they ban to solve that?

Easy, peasy: by seizing the guns of law-abiding people, just like Hillary Clinton wants to do.

Daily Wire reports:

Venezuela is descending further into the misery of socialism, as their government confiscated 2,000 pistols, shotguns and other firearms on Wednesday.

Reuters reports that the firearms were “crushed and chopped up” at a square in Caracas and ammunition was registered through laser technology as part of Interior Minister Nestor Reverol’s recent initiatives to further disarm the Venezuelan citizenry.

“We are going to bring disarmament and peace,” Reverol declared.

Venezuela currently has the second highest murder rate in the world, and Caracas is the most violent city in the world. In 2012, dictator Hugo Chavez completely banned private gun ownership, and yet crime rose.

Naturally, taking away the guns of law abiding people increases the rate of violent crime. In the UK, where the ban on handguns resulted in the doubling of violent crime in the four years after the ban. This is known by anyone who has spent more than two minutes studying the history of these laws in other times or places.

In my last post, I reported about how Venezuela had resorted to forced labor (slavery) to grow more food.

Here’s what CNBC reported:

The government of Venezuela has issued a decree that “effectively amounts to forced labor” in an attempt to fix a spiraling food crisis, according to a new report from Amnesty International.

A Venezuelan ministry last week announced Resolution No. 9855, which calls for the establishment of a “transitory labor regime” in order to relaunch the agricultural and food sector. The decree says that the government must do what is “necessary to achieve strategic levels of self-sufficiency,” and states that workers can be forcefully moved from their jobs to work in farm fields or elsewhere in the agricultural sector for periods of 60 days.

It’s so bad that Venezuelans are breaking into zoos to kill and eat the animals. Now that’s real progressive animal rights for you. But they can solve this by banning the eating of meat.

Slavery, food lines, lousy health care, crime sprees, confiscating guns from law abiding citizens. All to be expected when Democrat party policies go into effect. If Democrats wins the House, Senate and Presidency, we’ll see the same here – we’re not any better than any other country. Nothing magic about the United States, if we get away from our Constitution.

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