Psychological Reactance

One reason I get along much better with the gun community (besides the fact I love guns) than, say, the liberal arts community is because few people in the gun community demand I change my behavior to suit their needs. I don’t have to listen to members of the gun community telling me how driving a Ford Ranger is evil and that I should switch to a battery-filled Prius or how upgrading computers periodically is killing the planet. Instead when I pull up with my Ford Ranger I’m asked why I drive such a small truck and am urged to man up and get a Ford Earthfucker.

Like myself the majority of the gun community is afflicted by a psychological phenomenon known as reactance:

Reactance is an emotional reaction in direct contradiction to rules or regulations that threaten or eliminate specific behavioral freedoms.

Basically when somebody tells those afflicted with psychological reactance to do something we do the opposite because we fucking can. No better (and hilarious) demonstration of this can be found than Jay’s response to some stupid fat sow telling people what they should be driving:

The guy handled it a lot better than I would have – about 10 seconds in I’d have started the truck up and revved it to redline a dozen times just to piss her off more. Then I’d have put it in 4WD and driven around with the A/C on – just to burn more gas. Hell, the way she was running her mouth, I’d have set fire to some plastic and then sprayed some 1980s hair spray just to widen the hole in the ozone to match her gaping maw.

I think I might look into a Hemi Challenger to complement the Earthf**ker just to piss bints like her off…

Just a future note for those who wish to control what others do: many people do not response well to such attempted authority. I personally respond poorly to people telling me what to do and instead will go out of my way to do the opposite just to piss a controlling asshole off. For example when a couple of Occupy Minneapolis members were talking about blocking off the entrance to U.S. Bank I instantly reacted by noting such action would be met with me breaking their line. I don’t hold an account with U.S. Bank nor do I like them so why would I purposely go out of my way to break through their line? Because that’s how I respond to attempts to control my behavior. Trying to tell me what I can and can’t do, even if I never had a desire to do that, is going to result in me giving you the finger and going out of my way to do the activity that you’re are trying to prohibit.

Personally I have nothing against environmentalism until its advocates attempt to control what I eat, drive, and enjoy as hobbies. Every time somebody tells me that I need to stop eating meat to save the planet I’m going to head to Fogo de Chao and eat a metric fuck ton of beef. When somebody says I shouldn’t drive a truck because it’s polluting the environment I’m going to start my truck and make some needless one mile trips just to burn gas. My message to all of you who try to control the behavior of others is this: fuck you! I am a free individual and will live my life as I damn well please.

Self-Ownership and Property Rights

I’ve covered in depth the concept of self-ownership. Namely to say each individual is the owner of his or herself. Thus most arguments regarding laws that attempt to regulate the actions of humans are, in actuality, arguments about property rights, namely the right of your ownership of yourself. Oftentimes presenting this fact to people leads to their outrage as they declare, “I am not a piece of property!” Those who look at property rights as a claim of ownership over an object are mistaken in their idea of what constitutes property and ownership.

In the post about self-ownership I described that property rights derive from the mixing of your labor with natural resources. When you expend effort on transforming unowned resources into something more useful you have mix a part of yourself, your labor, with the resource thus making it an extension of yourself. The fact that a part of you has been incorporated into the good is what gives you the right to claim ownership over the object.

When people claim they are not property they are misunderstand what actually constitues ownership. Ownership is not an arbitrarily declare attribute of an object but an extension of yourself. You own yourself which means you own your labor which means you own the product of your labor. Possessing property means possessing extension of yourself. My television isn’t simply a device I arbitrarily claim as mine, instead it is an extension of me in the hours of labor I expended in exchange for the resources (money in this case) to purchase the television.

Thus property ownership is an extension of self-ownership. It is not a bad thing to be declare your own property because that implies you have exclusive control over yourself. Claiming you do not own yourself creates a question, who does own you? In the absence of the self-ownership axiom what justification exists for property ownership? Most people who take offense to being called self-owned property have rarely spent time considering what constitutes property and how somebody can justify claims that something is theirs.

A concept can’t be argued unless you fully understand the implications and justifications of that concept. In order to justify any claim of ownership over property you must first be able to use reason to justify the very concept of ownership itself.

Taxation is Wealth Redistribution

Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote.

That quote is usually misattributed to Thomas Jefferson but who first said it matters not, the statement provides an excellent image that explains why democracy is not a just system. During any of the occupation general assemblies you usually find something saying, “Democracy is messy!” or, “This is what democracy looks like!” While the speakers say those phrases with a positive connotation I simply sigh when I hear them. Those phrases are usually said after some minor issue is raised during the general assembly and an hour of debate, screaming, and placating have finally beaten the majority down enough that they vote in favor of whatever was proposed just to get things moving along.

Democracy is an immoral system because it gives the majority power over the minority. It allows one group to use coercion or outright violence against another group and call the action just. An excellent article describing this fact was posted yesterday on Mises Daily:

Wealth redistribution, therefore, is theft. It is the taking by force from one group in order to give to another. Force is involved because anyone who fails to pay assessed taxes — confiscatory taxes that mostly go directly into someone else’s pockets — will be put in prison. People from whom money is taken have not usually voted for this action,[1] but those who wanted to receive others’ money usually have voted to take it from them. Many socialists will dispute this and argue that most people want to pay the amount of taxes they pay. This implies, for example, that when the government doubled the tax rate during the Great Depression, people, coincidentally, simultaneously wanted to voluntarily pay double the amount of income tax. It implies that when marginal tax rates reached 90 percent, people truly wanted to work and hand over 90 percent of their marginal earnings. The argument is too weak to take seriously. Besides, if most people want to pay all the taxes they pay, socialists will have no problem switching the payment of taxes from being required by law to being voluntary.[2]

One of the outcomes of democracy is always wealth redistribution. That is a majority of poorer people vote in favor of stealing the minority or richer individual’s wealth. This becomes very evident when you look at the language and income tax brakets. The occupiers call themselves the 99% and imply the 1% are the enemy. What composes this 1% varies from person to person but it’s usually the top 1% of income earners. Many calling themselves the 99% demand that wealth or assets be taken from the 1% and distributed amongst the majority group.

When you look at income tax brakets you’ll notice they get progressively higher as income increases but a smaller minority composes each higher income tax braket. It’s very easy to get somebody to vote in favor of stealing from another when the voter perceives the target as being wealthier. While somebody making $50,000 a year is unlikely to vote in favor of stealing money from those making $50,000 a year he very well may vote in favor of redistributing the wealth of somebody who makes $1,000,000 a year. This is what democracy looks like:

The last statement in the quoted paragraph holds important truth as well. If people truly wanted to pay taxes then there should be no need for force them through the threat of prison. I would bet if we repealed laws making the payment of taxes mandatory a large majority of people would stop paying taxes. Knowing this it seems absurd to believe a majority of the population agree that paying taxes is something they want to do voluntarily and therefore democracy has failed in this case to express the desires of even the majority. What a majority of people really want is a proxy to perform the act of theft for them which is what taxation accomplishes and what actually democracy gets us.

Those demanding other peoples’ money also like to control the language using such phrases as, “tax breaks for the rich” to imply the rich are somehow being gifted instead of simply having less stolen from them:

In dollar amounts, households in the lowest-earning quintile in 2004 received about $31,185 more in government spending than they paid in taxes, while the middle quintile received $6,424 more than they paid. The top quintiles, however, paid $48,449 more in taxes than they received in government spending. In the aggregate, the top 40 percent of income-earning households paid roughly $1.03 trillion more in total taxes than they received in government spending, while the bottom 60 percent received $1.53 trillion more in government spending than they paid in taxes (the difference being the amount spent by government in excess of what it brought in — an excess mostly financed by the future top income earners). This is wealth redistribution.

We can see from these statistics how absurd is the phrase “tax breaks for the rich.” The rich do indeed benefit most from tax breaks because of the fact that they pay most taxes. Tax breaks are the giving back to the rich some of the money that was previously taken from them. Yet socialists call this redistribution from the poor to the wealthy! In other words, if the poor aren’t allowed to receive as much of others’ incomes as before, and the rich are allowed to keep more of their income, then, in the eyes of socialists, the rich are taking from the poor. This is like saying that a thief who must return a woman’s purse after getting caught stealing it is redistributing money from himself to her.

When you are willing to demand the money of others you seldom are willing to express your idea for what it is, theft. Even if we claim the act of wealth redistribution for what it is the thieves try justifying the act as being moral in this specific case:

I conclude that society does not really care about morals. They care about what’s best for them, defining terms in different ways in different situations, to fit their own personal or ideological agenda. Socialists condemn the businessman who becomes rich by pleasing others and providing jobs for workers and who harmed no one else in the process. But socialists claim that workers (and nonworkers) who were paid the full value of their work by the businessman but still choose government force to make him pay more, are innocent, righteous, and deserve “social justice.”

Trying to argue with an opponent who is willing to justify acts as being moral depending on whether or not the acts benefit him is impossible. I do my damnedest to ensure what I advocate complies with my moral and ethical beliefs which is why you never hear me advocating higher taxes on anybody even though I would likely benefit from increasing taxes on those earning more than me. Being consistent is important in my eyes because inconsistency leads to cognitive dissonance which makes presenting your argument difficult as it can be shot down using your own beliefs and statements.

Another fact to take away from this article is that voting for government to improve your life always leads to the opposite:

Suppose your family decided to start a business. You invest time, sweat, money, and opportunity costs in creating a new product or service. Your company’s product did not previously exist, but you made it available for others, without harming or forcing anyone to exchange their income for the product. After some years, your product becomes so popular that your family has now become wealthy through voluntary exchange. Others, who engage in forceful, not voluntary, exchange, in their jealousy, use the government to regulate you. They force you to sell part of your company to your competitors (antitrust legislation) who are not able to compete as efficiently and effectively; they force you to pay your workers more than you can afford (union legislation); they force you to sell your product for a lower price than the market demands and for a lower price than you would like (price controls); they force you to produce in a way that pollutes less but raises your costs and reduces your output (EPA legislation); they then impose a “windfall-profits tax” because they think you’re earning too much money this year. Your company started out being your private property that benefited society, but then society — through government regulation — took control of it and sucked it dry. Now your family earns less, your workers earn less, and less of your product is available to consumers, and at a higher price. The consumers got what they voted for. Voting for the government to improve one’s life almost always results in the opposite.

People who earn their wealth by providing a service or product people desire should never be punished. Punishing the productive only demotivates them from trying to continue serving our society in grand new ways. If I knew producing my new product would better society but ultimately lead to my demise as others simply took the product of my mind and labor I wouldn’t be very motivated to invest my wealth and labor in developing the product.

Those who demand money be stolen from the “rich” and given to the “poor” need to stop. What they are really advocating is theft and I am willing to bet money that those same people would not support me walking into their home and stealing their property. Taxation is theft by proxy just as calling the police is violence by proxy. In both cases the person calling on the government isn’t asking for means or protection, they’re asking for a third-party to perform acts of theft and violence. Individuals advocating taxation should be fine with allowing others to come into their home and steal their property just as those who demand guns be taken away from others because they’re violent devices shouldn’t call the police when somebody breaks into their home.

The Free Market in Action

People often ask how can a free market work. The answer is very simple, if enough people do not like a product they will not buy it and the producer will either have to improve the product, release something new, or face bankruptcy. In a free market the consumers are the ultimate discion makers while the producers are entirely at the consumers’ whim. Bank of America, Wells Fargo, and J.P. Morgan recently received a wakeup call from consumers when they attempted to start charing for the use of debit cards:

The bank announced it was abandoning its fee plan amid growing anger around the move and consumer calls to take banking business elsewhere.

A company spokeswoman declined to comment on account closure figures.

JPMorgan Chase and Wells Fargo cancelled tests of similar debit card fees over the past week.

[…]

Public anger over the Bank of America plans coalesced around an online petition that eventually garnered more than 300,000 signatures.

“When I heard about the fee, it was the last straw for me,” Molly Katchpole, a 22-year-old who started the petition, told the Associated Press news agency.

In a free market when consumers speak producers and service providers have no choice other than to listen. Sadly we don’t have an entirely free market here in the United States but it is still free enough where consumers can often exact change by voting with their wallets.

It’s Only Counterfeiting When We Do It

Six suckers here in Minnesota decided they were going to wedge in on the government’s business and print up money. Unfortunately for them the government gets upset when others try to move in on its business:

Albert Lea resident Heather Ann Cameron, 34, pleaded guilty in federal court Thursday to one count of counterfeiting U.S. currency. She entered her plea before U.S. District Court Judge Ann D. Montgomery.

In her plea agreement, Cameron admitted that from December 2010 through June 2011, she chemically washed $5 bills and reprinted them as $100 bills. She admitted she intended to defraud businesses by passing the bills and then receiving actual money and goods in return for them.

Her husband, Travis Allen Cameron, 31, of Albert Lea pleaded guilty Monday to the same count, admitting that he produced altered bills, which were sold for about 50 cents on the dollar.

Obviously they didn’t understand that only the government is allowed to counterfeit in this country. When they crank up the printing press it’s called stimulus but when a private individual does it it’s called counterfeiting. Either way the result is inflation but the damage caused by a handful of individuals increasing the “value” of pieces of paper by printing higher values is minuscule compared to the rampant damage to purchasing power caused by the United States government prints off trillions of dollars.

Each defendant in this case face up to 20 years in prison. If they get 20 years for counterfeiting tens of thousands of dollars then the goons in the Federal Reserve and Treasury should be getting life without the possibility of parole.

The Failure of Economic Models

The root factor that separates the Austrian school of economics from others such as the Keynesian and Chicago schools is the fact the Austrian school acknowledges the fact that economic models can’t actually be made. While the Keynesian and Chicago schools keep trying to model economics using mathematic formulas the Austrian school says economics can’t be studied like natural sciences because individual factors can’t be separate for study and humans are adaptable and non-passive. Instead of using mathematical models the Austrian school relies on praxeology, the study of human action, which involves using logical deductions to arrive at conclusions. While the Austrian school keeps predicting the next series of bubbles and crashes the schools depending on mathematical models continue getting their models shot to hell:

When it comes to assigning blame for the current economic doldrums, the quants who build the complicated mathematic financial risk models, and the traders who rely on them, deserve their share of the blame. [See “A Formula For Economic Calamity” in the November 2011 issue]. But what if there were a way to come up with simpler models that perfectly reflected reality? And what if we had perfect financial data to plug into them?

Incredibly, even under those utterly unrealizable conditions, we’d still get bad predictions from models.

The reason is that current methods used to “calibrate” models often render them inaccurate.

In computer science we have a phrase called “garbage in, garbage out.” Simply put if you start with garbage data you’re only going to end with garbage data. The mathematical models using by economists are garbage because humans are not passive non-adaptive subjects. As humans adapt old models are rendered useless. While the Austrian school bases their economic predictions on deductive logic the Keynesian and Chicago schools are constantly trying to rework their economic models to fit new data. Nothing thing to note is if you have to change your economic models to fix the data then your models are worthless. Models are supposed to help predict future outcomes based on current data not be formed around changed data due to failures of the previous models to predict an outcome.

The Keynesian and Chicago schools of economics would only be workable in an environment where prefect data is had. When people make criticisms about capitalism based on consumers lacking perfect data they’re correct only so far as the Keynesian and Chicago schools of thought go. The Austrian school outright acknowledges that perfect data regarding economics doesn’t exist and probably never will so planning economies is impossible meaning the hands-off approach is the only viable economic system.

Depoliticize Everything

As anybody who has been reading this site for a while knows I’m not the biggest fan of government. I don’t like the idea of somebody ruling over me with a gun and a threat demanding that I comply with their demands or face execution. It wouldn’t be as bad were the government not trying to regulate everything in existence but frankly the government we now have in the United States is completely out of control. Those on the right say we just need to elect the right Republican leaders and those on the left claim we just need to elect the right Democrat leaders. Truth be told the whole concept of “representatives” is outrageous when you think about it, nobody can represent the interests of many others:

Much money and attention is given to politics; so much that even standing on the sidelines to comment can generate outsized wealth and attention. Rush Limbaugh and his numerous conservative epigones have etched lucrative careers perpetuating the myth that if we just vote for the right candidates (literally, in Limbaugh’s case) the world will be set properly on its axis and the United States’ master-of-the-universe status will grow further still.

Of course, for left-liberals, the right person resides on the left. For either side, the right person is a myth — a fraud, actually. There is no right person, left or right, because the right person from any one person’s perspective will always be the wrong person from everyone else’s perspective.

If a Republican gets elected the Democrats lack representation, if a Democrat is elected the Republicans lack representation, and if either gets elected I lack representation. When you think about it the idea that one person is supposed to represent the interests of entire congressional districts is absurd. How can one man represent the views of so many others? Hell, lawyers have a hard enough time representing individual clients but as they’re paid for the job they’re more likely to do as they’re supposed to.

But politics is nothing but a giant game. Our politicians like to polarize issues into one of two camps and claim the other camp is wrong. Why should any third-party have a say in whether or not two men can marry, or if anther person can smoke pot, or if I can drive a gas guzzling truck? We are all individuals with different desires and we should be allowed to pursue those desires so long as we are not harming another or their property. Politicians telling us what to eat, drink, and say are unnecessary and exist only to take otherwise productive capital and flush it down the toilet of waste.

Instead of politicizing every topic on the planet let us depoliticize them. Let us all agree to leave one another alone in their pursuit of happiness.

The Importance of Property Rights

It looks as through many of the occupiers in Zuccotti Park have decided to live the Marxist dream and eliminate the concept of private property. This decision has lead to predictable results that demonstrate once again the necessity of private property rights to create a peaceful society:

All belongings and money in the park are supposed to be held in common, but property rights reared their capitalistic head when facilitators went to clean up the park, which was looking more like a shantytown than usual after several days of wind and rain. The local community board was due to send in an inspector, so the facilitators and cleaners started moving tarps, bags, and personal belongings into a big pile in order to clean the park.

But some refused to budge. A bearded man began to gather up a tarp and an occupier emerged from beneath, screaming: “You’re going to break my fucking tent, get that shit off!” Near the front of the park, two men in hoodies staged a meta-sit-in, fearful that their belongings would be lost or appropriated.

Major problems arise when you remove the concept of property from a society. Humans are like any other creature on this planet when it comes to being territorial. Some people are more territorial than others but nobody likes to have their shit taken. Two humans living next to each other are likely to do well if one respects the property of the other. When one of the neighbors decides he really likes the product of his neighbor’s labor and takes it problems being to appear.

When you purchase a vehicle you like you’re not likely to be happy if somebody takes it and gives you another vehicle. Sure, the new vehicle may get you from point A to point B but it may not serve your other desires. A small care isn’t going to help a construction working haul bricks from a warehouse to the construction site. Different people have different needs and that prevents consumer goods from being universal (for instance a tent isn’t just a tent, it may have many properties that make it ideal for one person but less than ideal for another).

The concept of communal property also introduced the concept known as the tragedy of the commons. When nobody is defined as an owner of a resource and everybody utilizes it then everybody is going to grab as much of it as they can. After all they’re competing for the use of that resource with many others so it becomes in everybody’s best interest to grab up as much of if as quickly as possible. A private property owner doesn’t have this problem and actually has a strong motive to utilize the resource in as sustainable manner as possible. Farmers rotate crops to prevent damage to topsoil because having no topsoil means no crops will grow and thus no income will be made. Protecting your investment is natural because it allows you to obtain more out of the investment.

This harsh truth became readily apparent when the Soviet Union enacted their program of agriculture collectivization. After collectivization the Soviet Union went from being one of the largest exporters of grain in the world to a small player in the grain export market that also had rampant starvation to boot. Farmers had no motive to ensure land was going to be used in a manner that produces the largest yield of crops as any crops they grew were confiscated. As those crops were collective property the state decided on how to distribute them and that usually meant those in cities got a larger portion than those in rural communities (which further demotivated them from growing crops).

I hope the clashes started by establishing communal property rules in Zuccotti park remind everybody why we need strong private property rights.

The Catholic Church Should Stick to Theology

That quote by Rothbard is the first thing that pops into my head whenever somebody completely ignorant of economics brings forth an economic plan. Needless to say that’s the thought that entered my head when the Pontifical Council for Justice and Peace of the Catholic Church brought for their opinion on how the current economic mess should be fixed:

The Vatican called Monday for radical reform of the world’s financial systems, including the creation of a global political authority to manage the economy.

A proposal by the Pontifical Council for Justice and Peace calls for a new world economic order based on ethics and the “achievement of a universal common good.” It follows Pope Benedict XVI’s 2009 economic encyclical that denounced a profit-at-all-cost mentality as responsible for the global financial meltdown.

After reading that I can say with certainty that the Catholic Church should stick to theology and leave economics to the Austrian school. What their plan entails is basically doing the same thing that got us into this mess but harder. Hell they didn’t even get the cause of the meltdown correct, it wasn’t some mythical “profit-at-all-cost mentality” but government constantly meddling in the free market.

The government’s attempt to boost up the housing market was just another failure in a long line of economic idiocy. Let’s also not forget labor laws put into place that makes many laborious tasks in the United States outrageously expensive. Then there are the endless Environmental Protection Agency (EPA) regulations that make the construction of a manufacturing facility within the United States almost impossibly expensive. Cheap credit was granted to those who obviously couldn’t pay back the loans which did a huge number of the financial market. I could go on listing various government failures that got us into this mess but I think you get the point.

I believe it is a sign of insanity to try the exact same thing again and expect different results. If you place your hand on a hot stove it’s going to burn every fucking time, and if you allow central planners to meddle with the free market the economy is going to collapse every fucking time. Central planning is what ultimately destroyed the economy of the Soviet Union which caused the entire state to come crashing down. European Union central planners are in a real mess right now hoping the economy of Germany is strong enough to bailout the other member countries. China had to create Special Economic Zones which allow more free market practices to advance their economy.

Creating a “world economic order” is going to take the problems currently facing most developed countries around the world, amplify them, and cause far more widespread destruction than we’re experiencing now.

When you lack knowledge in a specific subject it is best to not offer advice regarding that subject.

You’re Blaming the Wrong One Percent

The popular slogan of the Occupy movement is, “We are the 99%!” This slogan implies that there is a sinister one percent of the population that’s causing the current economic and social strife. Do you know what? Those protesters are right. Do you know what else? It’s not the one percent they think it is:

But there is another 1 percent out there, those who do live parasitically off the population and exploit the 99 percent. Moreover, there is a long intellectual tradition, dating back to the late Middle Ages, that draws attention to the strange reality that a tiny minority lives off the productive labor of the overwhelming majority.

[…]

In the end, we end up with about 3 million people who constitute what is commonly called the state. For short, we can just call these people the 1 percent.

The top one precent of wealth holders isn’t the group causing our problems, the roughly one percent of the population that makes up the federal government. While those two groups aren’t mutually exclusive the latter group is the only one that can make rules, regulations, and ordinances that have a nationwide effect of further destroying our economy:

Same goals, different means, two very different sets of criminals. The state is the institution that essentially redefines criminal wrongdoing to make itself exempt from the law that governs everyone else.

It is the same with every tax, every regulation, every mandate, and every single word of the federal code. It all represents coercion. Even in the area of money and banking, it is the state that created and sustains the Fed and the dollar, because it forcibly limits competition in money and banking, preventing people from making gold or silver money, or innovating in other ways. And in some ways, this is the most dreadful intervention of all, because it allows the state to destroy our money on a whim.

Simply eliminating the Federal Reserve and the problems it generates would move our country towards recovery and eventual reclaiming of our past economic prosperity. Removing a massive number of labor regulations from the books would also help decrease unemployment and allow people to once again make a living. And you know what? With a return to sound money you would effectively have “more” money as it wouldn’t be constantly devaluing due to inflation. If the value of our money would just stabilize we’d all be wealthier immediately.

So let’s fight the real culprits, the actual one percent that’s the source of our woes. Drop all of this pointless screaming about the top one percent of wealth holders being evil bastards who are destroying our lives. Many of those wealth holders are employing a great number of people and providing products that many in society enjoy. Instead let’s point the finger at the federal government, the bastards who have created the environment of failure that has caused our current economic crisis.