Business Opportunities are Everywhere

Smokers of Minnesota are up in arms over the increase in cigarette taxes:

MINNEAPOLIS (WCCO) – Outside downtown office buildings, many smokers didn’t want to talk about the possibility of a tax that will push a lot of cigarette packs into the $8 range.

Dan Jones says the tax may be the push he needs

[…]

The state says it has built the expected drop in smokers into their revenue projections. The current tobacco tax pulls in $423 million, and the state is predicting the higher tax would pull in $618 million a year.

The tax hike isn’t surprising since Mark Dayton stated plundering from smokers was one idea to subsidize billionaire Zigy Wilf’s stadium. What is surprising is the reaction many are having to the news. Many smokers are pissed, other smokers are thinking about quitting, and small government advocates are rightly pointing out that smoking is an activity enjoyed by many poor individuals so a tax on cigarettes is a burden on the poor (to enrich the top 1% no less!). I guess, to borrow an old marketing phrase from Apple, I think different. A tax increase on cigarettes in Minnesota is a business opportunity! Anybody willing to buy cheaper cigarettes out of state, deliver them to Minnesota, and sell them to people addicted to nicotine stands to make a tidy profit.

Tax increases, while depriving some portion of the population of wealth, generate business opportunities for smugglers. Increasing the tax on cigarettes makes the unprofitable enterprise of buying cigarettes in one state and selling them in another profitable. In fact, depending on the tax difference between the state cigarettes are purchased in and the state they are sold in, the profit could be very high.

One of my goals in life is to show people how statism can be exploited for personal profit without resorting to the statist tactic of initiating violence. Smuggling cigarettes into Minnesota is looking to be one of those wonderfully exploitable endeavors.

YaCy

I’m a big fan of decentralized technologies. In my quest to decouple myself from the major corporations that seem inclined to wage war on the Internet I’ve been looking high and low for a search engine not run by Google or Microsoft. My quest has finally provided some fruit in the form of YaCy.

YaCy is a peer-to-peer search engine that can be run on Windows, Linux, or OS X (technically, since it’s written in Java, it should also run on other platforms). Instead of relying on centralized entities to crawl and index the Internet YaCy relies on each peer. I’ve setup a test server running YaCy to see how well it works and so far it shows promise. Granted, the search data isn’t nearly as complete as Google or Microsoft’s data at this point but that will almost certainly improve overtime. YaCy doesn’t do as good of a job at ranking search criteria based on how useful it is (at least in the eye’s of whatever search algorithm is being used) but that is likely to improve in time as well.

With those criticisms aside, and considering the limited amount of time I’ve had to play with it, YaCy does have one major advantage over Google or Bing: there is no central authority. State’s rely on central authorities to coerce into removing data when they want to enforce their archaic censorship laws. If no central authority exists it becomes much harder to enact censorship, which is where my primary interest in YaCy derives.

I’m planning to make the search interface publicly accessible in the near future so you guys can test it out. While I won’t promise a replacement for Google or Bing I will promise an interesting technology that’s worth experimenting with.

Statism Lowers the Quality of Living

The more power the state obtains the lower the quality of life for the general populace is. Power production is one of the most heavily regulated markets. Although the state claims it must regulate power production in order to reduce pollution its interests in the market involves protecting its cronies from competition. Consider the Clean Air Act, which we’re told was passed to ensure better air quality. In actuality it was designed in such a way as to drum up business for expensive sulfur dioxide scrubbers and protect eastern coal producers. From Political Environmentalism by Terry L. Anderson:

Under the 1970 Clean Air Act, the EPA had established a policy whereby all coal plants were required to meet a set emission standard for sulfur dioxide. The original standard of 1.2 pounds of sulfur dioxide (SO,) per million British thermal units (BTUs) of coal could be met in a variety of ways.

Despite its apparent flexibility, this regulation had disparate regional effects. Most of the coal in the eastern United States is relatively “dirty” due to its high sulfur content. Western coal, on the other hand, is far cleaner. Using western coal enabled utilities and other coal-burning facilities to meet the federal standard without installing costly scrubbers to reduce the sulfur content of their emissions. At the time, scrubbers were so expensive that many midwestern firms found it less expensive to haul tons of low-sulfur coal from the West than to utilize closer, dirtier deposits.

When the Clean Air Act was revised in 1977, it was time for the eastern coal producers to get even. As Ackerman and Hassler (1981) noted, eastern producers of high-sulfur coal elected “to abandon their campaign to weaken pollution standards and take up the cudgels for the costliest possible clean air solution-universal scrubbing” (31). The result was a “bizarre coalition of environmentalists and dirty coal producers” that successfully advanced a new set of environmental standards that probably did more harm than good in much of the country (Ackerman and Hassler 1981, 27).

Under the 1977 law, coal plants had to meet both an emission standard and a technology standard. In particular, the law contained new-source-performance standards (NSPS) that forced facilities to attain a “percentage reduction in emissions.” In other words, no matter how clean coal was, a new facility would still be required to install scrubbers. This law destroyed low-sulfur coal’s comparative advantage, particularly in the Midwest and the East. If all new facilities had scrubbers, then there was no need to transport low-sulfur coal across the country. Less expensive, high-sulfur coal from the East would work just as well, even if it produced substantially greater emissions.

The result of such regulations is predictable, power production facilities pay more money to install sulfur dioxide scrubbers and we, the consumers, pay more money for electricity so the power production facility can pay off the scrubbers. We end up getting less electricity for more money and suffer a hit in our overall qualify of life because of it.

Now consider the United Kingdom (UK). That state’s rule over power production has led to a shortage of power. Being a state the only solution seen by the UK is rationing:

Fridges and freezers in millions of British homes will automatically be switched off without the owner’s consent under a ‘Big Brother’ regime to reduce the strain on power stations.

The National Grid is demanding that all new appliances be fitted with sensors that could shut them down when the UK’s generators struggle to meet demand for electricity.

Electric ovens, air-conditioning units and washing machines will also be affected by the proposals, which are already backed by one of the European Union’s most influential energy bodies. They are pushing for the move as green energy sources such as wind farms are less predictable than traditional power stations, increasing the risk of blackouts.

The result of the UK’s unwillingness to expand their power production with reliable sources may lead to massive amounts of food spoilage as refrigerators across wide swaths of the country shut themselves down and people dying of heatstroke because their air conditioners automatically shut off when it was 115 degrees outside. Once again the state’s desire to control everything is leading to a drop in the overall qualify of life and, in a rather ironic twist, a potential waste of food, which isn’t a green policy at all. Oh, and to add insult to injury, people living in the UK will be footing the bill for the development and installation of the technology that will allow the power facilities to automatically disable your appliances.

Why wouldn’t the power production companies demand to be allowed to build more reliable production facilities? Because that would cost them money and so long as they enjoy the state-provided protection from competition they have no motivation to actually spend money to improve their product. Who would want to spend millions to build a new power plant when they can charge more money for the same amount of electricity thanks to state-mandated rationing? Nobody, that’s who.

Central Planners Never Learn

Central planners never learn. When one of their plans go awry they blame the data, implementation of the program, and anything else that allows them to avoid admitting central planning doesn’t work. Centralized plans rely on things never changing, which in an ever-changing world is a pretty stupid thing to rely on. Hell, the fucking continents don’t even remain the same!

The United Nations (UN), the largest central planning organization in the world, want people to supplement their diet with insects instead of current livestock:

A 200-page report, released at a news conference at the U.N. agency’s Rome headquarters, says 2 billion people worldwide already supplement their diets with insects, which are high in protein and minerals, and have environmental benefits.

Insects are “extremely efficient” in converting feed into edible meat, the agency said. On average, they can convert 2 kilograms (4.4 pounds) of feed into 1 kilogram (2.2 pounds) of insect mass. In comparison, cattle require 8 kilograms (17.6 pounds) of feed to produce a kilo of meat.

Most insects are likely to produce fewer environmentally harmful greenhouse gases, and also feed on human and food waste, compost and animal slurry, with the products being used for agricultural feed, the agency said.

Currently, most edible insects are gathered in forests and what insect farming does take place is often family-run and serves niche markets. But the U.N. says mechanization can ratchet up insect farming production. The fish bait industry, for example, has long farmed insects.

How could this possibly go wrong? Let’s pretend that the majority of the regions that currently rely on beef, poultry, and pork for their protein intake decide to rely on insects instead. While the number of cattle, chickens, and pigs raise by farmers would decrease the number of insects being raise would increase. Simply walking around in forests and gathering insects wouldn’t provide enough foodstuff to replace current livestock so insects would have to be farmed. Farming insects is likely to be more difficult than farming current livestock because insects are difficult to contain (and difficult to keep out of your house). The UN report notes that many insects feed off of waste but it fails to note that insects also feed off of crops. Have you ever heard the phrase “A plague of locust?” There’s a reason people use that phrase, it’s because locust have a pension for wiping out crops.

Now let’s pretend that one of the insect farmers experience a failure in the system they’re using to contain their insect herd. What consequences would follow a massive number of fast-breeding crop-consuming creatures breaking out of their cages? In all likelihood all crops in the vicinity would be wiped out. In other words foodstuff would escape, more foodstuff would be destroyed, and the people in our hypothetical society would face the potential of starvation.

Of course central planners tend to believe they can control everything so this scenario has likely been written off as impossible.

To My Friends Who are Upset About Minnesota’s New Definition of Marriage

Minnesota is now the 12th state to repeal its prohibition against same-sex marriages. Needless to say some of my friends, specifically my deeply religious friends who believe its the state’s duty of uphold their religion’s definition of morality, are a bit upset. As you will soon learn I have no sympathy for them. The religious organizations that told them to oppose the repealing of the prohibition on same-sex marriages are the same organizations that made this outcome possible. Although I touched briefly on the subject I feel it’s important to drive home this fact.

Back in the day the stated told various religious organizations, “Hey guys, we’re going to define marriage.” Most of the religious organizations at that time were perfectly fine with that news because the state said it was going to define marriage as being between one man and one woman. The Mormons weren’t overly enthusiastic about the news but they were a small enough minority that nobody cared what they thought. Likewise, homosexuality was stigmatized so great in those days that few would dare admit they were gay and therefore no opposition was raised against prohibition same-sex marriages. In other words statism worked exactly as it always does, the politically influential were able to wield the state’s capacity for violence against those who weren’t politically influential. What those short-sighted fools failed to realize is that things change.

Fast forward to modern times. Religious organizations have lost a great deal of their influence over the state. They can no longer wield the state’s capacity for violent reliably. The tables have turned and the same religious organizations that enjoyed the state’s power in the days of yore now lack a great deal of political influence. Now that the state isn’t favoring their definition of morality those religious organizations are pissed. Boo-fucking-hoo.

Those organizations made their bed when they agreed to ceded the power to define marriage to the state. Once the state declares a power for itself and remains mostly unchallenged it is practically impossible to rip that power from its hands. To make matters worse the longer the state holds power the more difficult it becomes to take it back. People living today never knew a time when marriage didn’t require some kind of permission slip from the state. Since things appear to be working and they know no alternative they’re unlikely to challenge the state’s declared power to define marriage. It really sucks to be one of those religious organizations that wants the power to define marriage back because, in all likelihood, they’re not getting it. The state didn’t just declare the power to define marriage, it sunk its claws deep into that declaration by tying anything and everything to its stupid permission slips.

Like it or not, marriage is no longer a religious institution, it’s a state-defined relationship used to determine who can have special privileges. Had those fools resisted the state’s power grab this entire fight probably wouldn’t have happened. The religious organizations could still choose to recognize only marriages between one man and one woman and everybody ignore those organizations. But those fools didn’t resist, they accepted the state’s power grab with open arms, and allowed marriage to become more than a religious institution. Why do you think homosexuals give a shit about marriage? It’s because they are relegated to being second-class citizens without having the ability to enter marriages. When you have a man getting arrested because he refused to leave his partner’s side at a hospital and he knows his arrest could have been avoided if the state recognized same-sex marriages you can damn well bet that he will fight for state-recognized same-sex marriage. When the state tells same-sex couples that they can’t adopt children [PDF] because their relationship lacks the state’s seal of approval you can damn well bet those couples are going to fight for a state-recognized seal of approval. And guess what, they and their allies (which I am) have the political influence and therefore can wield the state’s power.

If you oppose same-sex marriages for religious reasons let this lesson sink in. The next time the state tries to grab additional power, even if the power grab stands to directly benefit you, oppose it. Fight that power grab with every fiber of your being. Because once the state has that power it will keep that power, it will tie that power into its political machinery so tightly that it can’t be removed, and eventually that power will change hands and you’ll no longer receive the special privileges you once did.

Targeting Political Opponents Through Taxation

The wonderful thing about government regulations is that they’re so versatile. Most people think of the Internal Revenue Service (IRS) as merely a government agency that collects taxes. However to an extremely devious, and somewhat creative, fellow the IRS can become a club to wield against your political opponent, which is what the so-called progressives did:

WASHINGTON (AP) — The Internal Revenue Service inappropriately flagged conservative political groups for additional reviews during the 2012 election to see if they were violating their tax-exempt status, a top IRS official said Friday.

Organizations were singled out because they included the words “tea party” or “patriot” in their applications for tax-exempt status, said Lois Lerner, who heads the IRS division that oversees tax-exempt groups.

In some cases, groups were asked for their list of donors, which violates IRS policy in most cases, she said.

I don’t have a horse in this race beyond explaining how the IRS can be used as a political tool beyond tax collecting. My beliefs generally oppose the beliefs shared by organizations with the word “patriot” or phrase “tea party” in their title. However it is worth noting, regardless of your political orientation, how the state can prevent certain messages from spreading without resorting to direct censorship. By using tax laws the IRS was able to harass specific political organizations. Such harassment sends a very clear message: if you don’t subscribe to the dominate state-held political beliefs you can either keep your mouth shut or your life will be made miserable.

What’s even more interesting is that the IRS claims the harassment was initiated by a low-level employee:

Lerner said the practice was initiated by low-level workers in Cincinnati and was not motivated by political bias. After her talk, she told The AP that no high level IRS officials knew about the practice. She did not say when they found out.

In all likelihood the low-level employee received orders from higher up and is now being used as a scapegoat. If that isn’t the case then the IRS just admitted that they have no real oversight and that even low-level employees can wield the agency’s power against specific targets. The implications of this are frightening. Imagine a low-level IRS employee sending the agency to harass an ex-girlfriend or ex-boyfriend because the breakup wasn’t amicable. Suddenly vicious revenge is as simple as getting a job at the IRS.

Tax codes are just as useful for dealing with political opponents as outright censorship or passing laws for the specific purpose of targeting those opponents. Al Capone was taken down by wielding tax code because the state didn’t have enough evidence to charge him with anything else.

The power to tax is the power to suppress.

Letting the State Define Marriage

Since I was in the middle of helping people bypass the state’s censorship of 3D printer models I didn’t have time to comment on the Minnesota House passing the bill that will likely legalize gay marriage here. Since I’m gifted with a wide variety of friends I have seen both positive and negative reactions to this news.

To my religious friends who are unhappy with this news please know that this outcome was made possible because of the previous actions of your religions. When the state first declared it had the right to define marriage most of the better known religions of the time supported the state’s expansion of power. They supported this expansion because the state was defining marriage according to their terms. What those religions should have done was tell the state that defining marriage is the job of religious institutions and refused to sign any marriage certificates issued by the state. Since those religious organizations stood by and did nothing the state obtained the power to define marriage. These religious organizations apparently failed to realize that once the state obtains a power it can change the rules at any time it desires. In all likelihood same-sex marriages will be legal in all 50 states in due time.

To my friends who are happy with this news please know that the same lesson applies to you. What you won was a temporary victory, one that can be taken away by the state at any time in the future. Much like the religious organizations of the past you seem to support to state’s declaration that it can define marriage because its definition agrees with your beliefs. However the religious organizations could gain more influence in the future and have same-sex marriages made illegal again.

The lesson everybody should take away from this post is that all attempts by the state to grab more power should be opposed, even if one of its power grabs favors your beliefs. While the power grab may favor your belief today it may oppose it tomorrow.

The State May Kill Intellectual Property

After thinking about the State Department’s attempt to censor 3D printable firearms I came to the realization that the destroyer of intellectual property may very well be the entity that created it. The state has never shied away from censorship but its desire to control information is obviously increasing. What will happen if the state continues to censor more and more material that it defines as objectionable? In all likelihood more information will be published anonymously.

How many people will attach their name to something if they know it will land them in prison or cause them to be murdered by the state? I think that list is pretty short. Most people would prefer to release such material anonymously. When material doesn’t have a name attached to it there is nobody to claim a copyright on it and therefore nobody to initiate an intellectual property lawsuit. In effect the state, through its efforts to censor information, may kill intellectual property. It would be fitting that the creator became the destroyer.

Gun Sales Up, Homicide Rate Down, Few Paying Attention Surprised

Once again reality has proven harsh to the advocates of gun control that have been warning us that blood will run through the streets whenever firearm laws are repealed or liberalized. As it turns out gun homicides are down 49% since their peek in 1993:

National rates of gun homicide and other violent gun crimes are strikingly lower now than during their peak in the mid-1990s, paralleling a general decline in violent crime, according to a Pew Research Center analysis of government data. Beneath the long-term trend, though, are big differences by decade: Violence plunged through the 1990s, but has declined less dramatically since 2000.

Compared with 1993, the peak of U.S. gun homicides, the firearm homicide rate was 49% lower in 2010, and there were fewer deaths, even though the nation’s population grew. The victimization rate for other violent crimes with a firearm—assaults, robberies and sex crimes—was 75% lower in 2011 than in 1993. Violent non-fatal crime victimization overall (with or without a firearm) also is down markedly (72%) over two decades.

As Robert Heinlein wrote in Beyond This Horizon, “An armed society is a polite society. Manners are good when one may have to back up his acts with his life.” Advocates of gun control believe that the only way to reduce violence in society is to give the state a monopoly on gun ownership. Somebody holding a less authoritarian view on society would point out that centralizing power has, historically, be ineffective at reducing violence. Decentralizing power, on the other hand, has been far more effective at reducing violence. Even the year with the highest homicide rate in the United States can’t compare to the millions upon millions killed in countries where power is or was centralized.

Nobody should be surprised by this news. Deductive logic would lead one to understand that having more armed people in a society increases the overall cost of initiating violence. Much like predatory animals that prey on the weak and sickly, violent people prefer to prey on the unarmed.

Why Gun Rights Activists are Unwilling to Capitulate

Via Borepatch I came across an excellent article regarding gun rights by Eric S. Raymond. In the article he summed up the reason gun rights activists are unwilling to cooperate with gun control schemes:

Now comes the news that the head of the Department of Homeland Security officially thanked the Governor of Missuri for violating state law by illegally passing to the DHS Missouri’s list of concealed-carry permit holders. The Governor then lied about his actions.

The Feds, meanwhile, continue to illegally retain transfer records from federally licensed firearms dealers past the statutory time limit, among several other continuing violations of a 1986 law forbidding the establishment of a national gun registry.

The BATF also criminally violated its authorizing laws by transferring over 2000 firearms to Mexican drug gangs through illegal straw purchases (google “ATF gunwalking scandal”). Over 150 Mexican citizens and United States Border Patrol Agent Brian Terry were killed with these guns.

Meanwhile, following scandals about “drop guns” at the sites of police shootings, some big-city police forces (notably in LA and NYC) are strongly suspected of routinely using planted guns to frame suspects they can’t otherwise nail on firearms-possession charges.

Any trust that “gun control” will be administered with even minimal respect for civil rights is long gone, destroyed by the behavior of the enforcers themselves.

Why won’t those of us in the gun rights movement submit to background checks? Why won’t we agree to using gimped magazines? Why won’t we surrender our semi-automatic rifles? Because of the solution gun control advocates have chosen.

As I’ve state numerous times the primary failure of gun control is its reliance on statism. Gun control advocates want the state to pass and us its capacity for violent to enforce laws controlling or completely prohibiting non-state agents’ access to firearms. The state has proven itself to be a beast that cannot be trusted with any amount of power, especially when that power allows them to control civil liberties.

If gun control advocates were willing to seek nonviolent solutions to the issue of violence those of us in the gun rights community would likely lend a hand. Instead they have chosen to use a violent solution administered by an organization that has proven itself to be untrustworthy. A gun owner submitting to state control over guns would be akin to women submitting to abusive misogynist control over women’s rights. Nobody in their right mind would submit to an untrustworthy entity.