government interference (4)


Sowell and Williams, Two Blacks Used to “Racism” Accusations


Thomas Sowell and Walter Williams are used to being called “Racists” and “White Supremacists” by people who hear them on radio or read their words or hear their writings quoted.  The two rather dark-skinned Blacks often get a good belly-laugh when it happens.  So it was natural when Sowell wrote a column praising William’s latest book “Race and Economics,” that both men received scathing online attacks from the Progressive fringe of the political spectrum; and even got called “Uncle Toms” from many Blacks well-informed of the two men’s identities. 

This is not a new experience for either man.  Like Supreme Court Justice Clarence Thomas; Florida Representative Allen West; Republican Presidential contender Herman Cain; Former Secretary of State Condoleezza Rice; and famous General Colin Powell . . . fiscal-conservative and Constitutional-conservative Blacks often pay a huge price  and are often labeled “traitors” by large segments of the Black community as a whole.  Williams and Sowell first met back in 1970 when both men were working on the same research project back in Washington, D.C.  A new book that year entitled “The Poor Pay More” was proving to be scandalous press fodder for the liberal media . . . in a very short article, Williams destroyed that book’s argument and it quickly fell out of print.  How did he do it?

Williams agreed, yes, prices were higher in low-income minority neighborhoods. But he unequivocally rejected the book's claim that this was a result of “exploitation” or “racism.”  He simple referred to the common-sense logical approach he’d used to write his doctoral dissertation on the question.  Williams documented that the costs of doing business in many low-income neighborhoods (insurance; no economy of scale; greater shoplifting and other theft threat; etc.) was usually significantly higher and these costs were simply passed on to the consumers there.  That was, according to Thomas, the first time that Walter Williams was called a “White Racist.”

Thomas lauds Williams’ new book Race and Economics and especially loved a couple of its chapters.  In Chapter 6, Williams returns to the original question raised by The Poor Pay More argument.  The clinching bottom-line argument is:  despite higher markups in prices in low-income neighborhoods, there is a lower than average rate of return for businesses there” which, of course, is presumably the main reason why so few businesses choose to operate there.  Thomas continues, “my own favorite chapter . . . is Chapter 3, the most revealing chapter in the book.”


Williams begins Chapter 3 thusly, "Some might find it puzzling that during times of gross racial discrimination, black unemployment was lower and blacks were more active in the labor force than they are today." Moreover, the duration of unemployment among blacks was shorter than among whites between 1890 and 1900, whereas unemployment has become both higher and longer-lasting among blacks than among whites in more recent times.

“None of this is explainable by what most people believe or say in the media or in academia. But it is perfectly consistent with the economics of the marketplace and the consequences of political interventions in the marketplace.”

The book "Race and Economics" explains how such interventions impact blacks and other minorities, whether in housing markets, the railroad industry or the licensing of taxicabs-- and irrespective of the intentions behind the government's actions.

Both Thomas and Williams see minimum wage laws as classic examples of the harm done by government interference. “The last year in which the black unemployment rate was lower than the white unemployment rate was 1930. That was also the last year in which there was no federal minimum wage law.”  Besides the minimum wage laws, the impact of the Unions upon Black employment was also huge.  Throughout labor’s history, the Black worker has been the least welcome in the union halls.  When the Davis-Bacon Act of 1931 was passed in 1931 it required that “that "prevailing wages" be paid on any government construction projects-- "prevailing wages" almost always meant union wages. Since Blacks were kept out of construction unions back then, and for decades thereafter . . . many black construction workers lost their jobs.  The stated purpose of the law was to protect the workers . . . what it did instead was to marginalize even further the poor and minorities.  Before the law was passed an awful lot of non-union Black construction crews were able to underbid union White contractors.  After the bill, the haves prospered while the have-nots suffered.  These problems expanded after the true minimum wage laws were required by the National Industrial Recovery Act of 1933 and under the Fair Labor Standards Act of 1938.  After those laws the negative consequences for black employment across a much wider range of industries was absolutely devastating.  Today young Blacks are unemployed at a 52.7% rate compared to young Whites at 27.2%, but back at the turn of the century before minimum wage laws came on the scene young Whites were much more employable than older ones and young Blacks had lower unemployment rates still.

Thomas concluded his review this way, “The factors that cause the most noise in the media are not the ones that have the most impact on minorities. This book will be eye-opening for those who want their eyes opened. But those with the liberal vision of the world are unlikely to read it at all.”

One thing that Williams said recently on FOXNews’ Stossel show was that “government intervention over the last seventy years did something that no amount of slavery, Jim Crow or discrimination was able to do:  it destroyed the Black Family” citing statistics that roughly 72% of Black children in the 20’s lived in two-parent homes and less than 30% do so today.  “After the Black mother tells Dad to move out, because she might lose her checks . . . the Black father becomes disposable in the community.”


Ya’all live long, strong and ornery,


Read more…

“The progressive/Marxist big government mindset is that life is a zero-sum game, so they can’t really understand the creative-cooperative nature of capitalism even if they themselves are involved in some creative-cooperative activity. They treat the world as if everybody’s playing checkers** . . . if somebody wins, somebody else must lose and therefore the best result in their view is a draw; and they will always seek to drag the “wealthy” down to the level of the poor with wealth-redistribution schemes that just impoverish everyone. In America, thanks in part to largely unfettered capitalism, the rising tide of general prosperity has lifted all boats for over two hundred years and continues to lift all boats so that the typical American living under the “poverty line” in 2004 was better off than 88% of the world’s population.” Rajjpuut

Crocodile Tears of the Left

Flood America with Corruption

as the “BIG LIE” Dominates

Part IV: Victim #4, The Rich and the Poor

Loyal readers are advised to skip ahead as we give a brief review. In this blog series, we’ve been exposing the self-described “victimhood” of progressives at the hands of their evil, racist, etc. conservative oppressors and showing you where the real victimhood is:,_then_dismemberment_part_i.thtml

In part I of the series (the link immediately above) the victim was “TRUTH” and among six key areas we hit Rajjpuut documented and exposed this truth:

Using the same Cloward-Piven** strategy that DELIBERATELY created the bankruptcy of New York City earlier between 1967 and 1975 by deliberately overloading the welfare rolls . . . beginning especially after 1992, ACORN, OBAMA, First ACORN PRESIDENT Bill Clinton, and oodles of progressives (98% of them Democrats) DELIBERATELY were pushing the car toward a 500-foot cliff. George W. Bush jumped in and grabbed the steering wheel and hit the brakes. Bush was able to create a controlled-skid and guide the car to rest in a friendly-looking ditch!

The chain of evidence producing that statement is something that every American ought to be aware of, just as every American ought to be aware of the identities of Saul Alinsky, Richard Cloward and Frances Piven and be able to articulate what Cloward-Piven strategy is . . . the fact that most Americans are totally ignorant of these things means someone hasn’t been doing their job.,_then_dismemberment___part_ii.thtml

In Part II of the series we examines the “Fourth Estate” and how their willful actions and inactions and choreographed responses (the scandal known as the “JournOList” which many Americans have not heard of because it’s too embarrassing for the liberal media to reveal that over 400 of its people have been colluding on how stories ought to be presented – to the benefit of the progressive political movement in this country) have sabotaged the nation and freedom and the Constitution. In Rajjpuut’s J-school classes reporting was all about revealing TRUTH in an ‘inverted-pyramid’ of Who? What? Where? Why? and How? That immediately put the most important facts at the top of the story and gradually petered out as less important details were shown. Today the inverted-pyramid has disappeared and unsupported opinion has replaced TRUTH in much of what passes for “NEWS.” Then we looked at how the false victimhood of the progressives (we must “progress” beyond the outdated and flawed U.S. Constitution) has created another real victim: “Responsibility” in the guise of the rising numbers of single-mother-families (a problem obviously created by everybody else’s sexism, according to feminists). As the irresponsible notion of deliberately choosing a single-parent family drags down all of society (see this link).,_then_dismemberment___part_iii.thtml

Victim #4: The Rich and the Poor

This will be the shortest blog in our ten-part blog-series because despite all the lies progressives might tell you, economics is a very simple area. It’s only when you tell gross lies about economics aimed at furthering the likelihood of socialism or totalitarianism or both that economics gets difficult. If your “economic world system” is a lie (the “school” of Keynesian economics) then you must forever be adding sub-schools that purport to justify and “solve” the big lie in the system. Today there are at least a hundred sub-schools of John Maynard Keynes (all of them telling lies in favor of big government at every turn). In the “Wealth of Nations” Adam Smith revealed the marvelous truth we today call “Classical Economics” that “individual men through creativity, through industry, through communications can create and magnify wealth cooperatively.”

Here is the point where the fearful progressive departs from common sense. In his world there is always an oppressor (the conservative-captitalist) and always a victim (the whole world of progressives themselves) being exploited by the oppressor. Life, in short, is a zero sum game between two people. If the capitalist wins, the laborer must lose. If the capitalist wins the consumer must lose. If the capitalist wins society as a whole must lose. How does the capitalist win? By creating “PROFIT.” Profit is the ultimate “dirty word” to progressives which means they who claim to follow a historically necessary path based upon the lessons of history, don’t understand the simplest lessons of human history because . . . (drum roll, maestro) profit is good, indeed profit is the ultimate good that makes civilization, some degree of comfort, and large amounts of free will possible to mankind.

Another word for profit is “SURPLUS.” When people live hand to mouth existences . . . in that cold gray world . . . there is indeed a greater likelihood of exploitation, exploitation of the criminal over the victim. I barely have enough and you barely have enough, if I hurt you and steal what you’ve got then I have twice as much and you have nothing. However, when we both have a little profit, a bit of surplus, instead of a win-lose proposition, life becomes win-win. I’m a farmer and I trade a little bit of my extra corn (beyond what I need to survive and to feed my animals) to you in exchange for the chair you made, your profit; to your neighbor the smith for the hoe and shovel he made, his surplus or profit beyond survival needs; and to your other neighbor for the wool he’s got, his family’s profit. I have so much corn that I’d almost give it away for the chair, the garden tools and the wool.

Each of the others I trade with feels the same about the furniture, tools, and wool they produce. Each of us feels like we’ve gained by the trades we made and lost virtually nothing. This is the essence of win-win interaction, the essence of capitalism. When money is created, capitalism often becomes broadly expansive, the resulting interactions become sort of complicated, but the essence is the same, men willingly give of their labor and their surplus to interact with other men in cooperative win-win trade. There is no oppressor and no victim. The simplest and best example of unfettered capitalism is found in this brief essay:

But there often is an oppressor after all; the heavy hand of government is played when power enters the marketplace by force. Whether for taxation or other confiscation, it is government which befuddles the simple win-win formula, simply stated the one lesson for understanding economics is:

But when government enters the marketplace, with taxes, subsidies, willful destruction, payment for zero production or lessened production, etc., etc., ad nauseum they have to justify the “displacement” of normal market forces and normal free-market good this way:

Here’s the total picture free online, Rajjpuut recommends you make this website a “favorite”:

So what’s really going on when government enters the picture? In a word “theft,” stealing by the powerful (the government) of what the productive have earned. Sometimes it is literally out-and-out direct theft for and by those in power. More commonly at other times they steal from some, pay take “their cut” as well and redistribute the wealth to others so as to win the favor of those others receiving benefits and “earn” their votes and support. Today in America 47% pay no taxes but are rather in complete or partial measure supported by those who do produce and do pay the taxes . . . this is what government has done to us.

The progressive/Marxist big government mindset is that life is a zero-sum game, so they can’t really understand the creative-cooperative nature of capitalism even if they themselves are involved in some creative-cooperative activity. They treat the world as if everybody’s playing checkers . . . if somebody wins, somebody else must lose and therefore the best result in their view is a draw; and they will always seek to drag the “wealthy” down to the level of the poor with wealth-redistribution schemes that just impoverish everyone. In America, thanks in part to largely unfettered capitalism, the rising tide of general prosperity has lifted all boats for over two hundred years and continues to lift all boats so that the typical American living under the “poverty line” in 2004 was better off than 88% of the world’s population. A rising tide of prosperity is the hallmark of capitalism; stagnation and lack of economic growth is the hallmark of government interference.

While government does play a legitimate and necessary role in defending the people and their borders and maintaining order and protecting their god-given liberties . . . government run amuck under progressivism fulfills a totally corrupted role: screwing the rich, screwing the poor and making itself ever bigger, every day . . . .

Next Time: First Crocodile Tears, then Dismemberment Part V

Ya’all live long, strong and ornery,

** The truth is, it is ONLY when progressivism moves in to create Big Government, GIBs (government interference boondoggles) and GSB (government spending boondoggles) that surpluses disappear and profit becomes an ugly world and then life gets beastly and miserable and very close to zero-sum.
Read more…

Boobus Americanus Understanding Little
Believes History’s Biggest Lies,
Do We Need a Negative Stimulus Package?
The great cynical journalist H.L. Mencken often talked about that utterly strange creature he called “Boobus Americanus.” Mencken would be greatly heartened to know that in this era of “endangered species” Boobus Americanus has multiplied twenty-fold thanks to cross-breeding with Couch-us Potat-us Americanus and Sitcomus Addictus. Here are four great myths from the 20th Century spread by Progressive historians (“we must progress beyond the outdated ill-conceived Constitution”) and Progressive politicians . . . myths that Boobus Americanus believes with all his heart and soul.
I. Progressive Woodrow Wilson was one of our greatest presidents
II. Warren G. Harding was one of the worst presidents and a crook
III. Herbert Hoover, who did nothing to head off the Great Depression, was a conservative who “fiddled like Nero while Rome burned.”
IV. Progressive Franklin Delano Roosevelt was our greatest president and he saved us from the Great Depression.
Here are the facts:
A. Democrat Progressive Woodrow Wilson was, among other failings, a racist who premiered D.W. Griffiths’ racist classic “Birth of a Nation” in the White House and instigated segregation in government hiring from the White House. He was also our first true tax-and-spend President. He left behind a much worse recession than G.W. Bush did. He also wrote a history of America that called into question virtually everything noble about the country and the founding fathers. He was definitely a progressive and tried to change history to move things more along the progressive path with much greater government size and control of our lives. As Wilson’s last year, 1920, ticked away the economic situation was grim . . . unemployment had jumped from 4% to 12% and GDP dipped 17%. It would get worse.
B. Things got so bad that new president Warren G. Harding’s Secretary of Commerce Herbert Hoover (falsely characterized as a do-nothing laissez-faire conservative) urged Harding to consider a huge array of interventions in order to turn the economy around. Harding ignored Hoover and calmly paid down the national debt by 33%.
Harding facing a GDP drop of about 25% because of Wilson’s policies, also cut taxes and spending both between 45%-49% and the recesssion became known as the “Invisible Depression” because it ended within 15 months. Indeed within six months signs of recovery were already visible. In 1922, unemployment was back to 6.7% and had dropped to 2.4% by 1923. His vice president Calvin Coolidge continued Harding’s policies and the resulting “Roaring 20’s” was the single most prosperous decade in American history as the standard of living rose dramatically. For the first time Americans in large numbers owned automobiles, indoor plumbing, electric lighting, and appliances like the ice box and radio and took yearly vacations. The Teapot Dome scandal that’s been blamed on Harding by the Progressive historians occurred after his death and was created by fraudulent dealings initiated by his Secretary of the Interior Albert Fall.
C. Hoover, who replaced Coolidge in 1928, was a Republican Progressive and up until FDR was the most interfering president in American History. Almost as soon as he took office he abandoned the business friendly policies of Harding and Coolidge and jumped in to interfere in agriculture and business. To be specific:
Hoover . . . .
1) increased taxes on top wage earners from 25% to 63%
2) increased government spending by 47%
3) ran a deficit of 4.5% of GDP
4) against the wishes of over 1000 economists, he signed the Smoot-Hawley Tariff, effectively shutting down international trade
5) established the Reconstruction Finance Corporation to make loans to the state governments
6) appropriated money for public works construction (Hoover Dam among others)
7) met with major industry leaders and put significant pressure on them to maintain wages at current levels, despite the amount of money in the economy falling by one-third. This led, predictably, to massive unemployment thanks to those first wage controls in American history.
8) the myth or misconception of Hoover’s non-interference gets so absurd it’s almost unbelievable. The truth is diametrically opposed to that myth, for example, during the 1932 campaign, Franklin Roosevelt’s first vice president, John Garner, accused Herbert Hoover of “leading the country down the path of socialism.” Furthermore, FDR brain-truster, Rexford Tugwell admitted that, “most of what (Hoover) began would be taken over by Roosevelt and renamed the “New Deal.”
D. Progressive Democrat Franklin Delano Roosevelt campaigned against virtually everything Hoover did. He promised to return to the policies of Harding and Coolidge (low taxes, low spending and non-interference), but once elected continued Hardings policies with a vengeance. Higher taxes, much higher spending. He also confiscated gold and then soon changed the exchange rate from $21.76 per ounce of gold to $35 per ounce, effectively robbing all savers and investors of 61% of the value of their holdings. FDR made even Hoover’s interference look like penny-ante stuff . . . among other things he created 40 brand new federal agencies. Far from saving the country from the depression, he and his policies turned a little ‘d’ depression into the Great Depression which the rest of the world suffering a little ‘d’ depression avoided. In fact, except for the outbreak of World War II, almost nine years after he was first elected, the Great Depression showed no signs of ceasing under FDR.
E. Just for comparison, Barack Obama is making Hoover and Roosevelt both look like pikers. Imagine this, in just one law (Obamacare), Obama has created more than 385 brand new government agencies about ten times what FDR did in 12+ years . . . in just one law. And, of course, like Hoover and FDR, Obama is raising taxes, raising spending, raising deficits, and raising the national debt while doing nothing about unemployment.
So what’s to be learned now that real history’s been unearthed? Well, the very first time (under Hoover and FDR) that government involved itself seriously in intervening to stop an economic downturn . . . just happens to coincide with the onset of the greatest downturn of all . . . almost as if government interference made things much worse, do you think? In comparison Harding 12 years earlier did what any sensible family or business would do in hard times . . . took in the belt a few extra notches. According to the Cato Institute:
“Harding inherited (Woodrow) Wilson’s mess—in particular, a post–World War I depression that was almost as severe, from peak to trough, as the Great Contraction from 1929 to 1933 that FDR would later inherit. The estimated gross national product plunged 24 percent from $91.5 billion in 1920 to $69.6 billion in 1921. The number of unemployed people jumped from 2.1 million to 4.9 million.”
So what did Harding do? He cut government spending from $6.3 billion in 1920, to $5 billion in 1921, and then again to $3.2 billion in 1922. This would amount to a negative stimulus package! Income taxes were left as is and corporate taxes were cut. There was no push for new regulations and the Federal Reserve did nothing.
What was the result of Harding’s negative stimulus package? By 1922, unemployment was down to 6.7% and the Roaring Twenties had begun. The economy set new production records year after year until the infamous Black Tuesday on October 29th, 1929 created by Hoover’s profligate policies.
Of course the Progressive historians have altered the facts significantly and made FDR a hero and Harding a villain. And befuddled by their own histories, they’ve made all the wrong conclusions over and over and over again and the country enamored of the false-legacy of FDR has eagerly joined them . . . .
Ya’ll live long, strong and ornery,
My friend Tish Gance forwarded me the following which explains perfectly how false history comes to dominate our reality . . . .

Monkeys --

Start with a cage containing five monkeys. Inside the cage, hang a banana on a string

and place a set of stairs under it.

Before long, a monkey will go to the stairs and start to climb towards the banana.

As soon as he touches the stairs, spray all the other monkeys with cold water.

After a while another monkey makes the attempt with same result, all the other monkeys are sprayed with cold water.

Pretty soon when another Monkey tries to climb the stairs, the other monkeys will try to prevent it.

Now, put the cold water away. Remove one monkey from the cage and replace it with a new one.

The new monkey sees the banana and wants to climb the stairs.

To his shock, all of the other monkeys beat the snot out of him. After another attempt and attack,

he knows that if he tries to climb the stairs he will be assaulted.

Next, remove another of the original five monkeys and replace it with a new one.

The newcomer goes to the stairs and is attacked.

The previous newcomer takes part in the punishment with enthusiasm.

Likewise, replace a third original monkey with a new one, then a fourth, then the fifth.

Every time the newest monkey takes to the stairs he is attacked.

Most of the monkeys that are beating him up have no idea why they were not permitted to climb the stairs

OR even why they are participating in the beating of the newest monkey. Finally, after replacing all of the

original monkeys, none of the remaining monkeys have ever been sprayed with cold water.

Nevertheless, no monkey ever again approaches the stairs to try for the banana.

Why not?

Because as far as they know, that is the way it has always been done around here.

And that, my fellow monkeys, is how Congress operates -

And precisely why we need to REPLACE all the original monkeys this November

Read more…

Taxpayers paid GM and Chrysler $14,000 per car$$, but during “Cash for Clunkers” GM, Ford and Chrysler received an additional $24,000 per sale from the taxpayers.

GM and Chrysler Still

More Than $50 Billion in the Hole

The numbers are terrible but many Americans seem to have forgotten the simplest facts about the takeover of the auto industry and are instead buying into the administration’s line that “He’s saved the U.S. auto industry.” Imagine being able to sell a car while knowing that the first $14,000 of underlying costs were POOF! Magically gone . . . How in hell, can these two auto companies continue to sputter and cough in recovery?

To date the facts are these: Chrysler received $15 Billion in loans; GM received $50 Billion in loans of that $65 Billion total in auto industry goals to-date $15 Billion has been repaid by GM and Chrysler . . . neither company looks particularly healthy and, indeed, Chrysler seems to be on the verge of collapse.

By the way, Chrysler received an auto bailout in 1979 in addition to the 2008 bailout both companies were given. Is there a simple lesson here? You think? Meanwhile, the only viable American auto company, Ford Motors, finds itself between the sword and the wall. On the one hand Ford like all of America is mired in a recessionary environment in which major purchases like cars and houses are not popular decisions. On the other hand that $14,000 safety net below each GM and Chrysler car is a tough nut for a company that received no bailouts to overcome. In short, the American auto industry is facing a crucial year as the 2011 models emerge onto the lots. The likelihood is that Chrysler goes under despite all the government interference and Ford, competing against the two bailed-out entities is also threatened.

One thing, Barack Obama doesn’t want you to think about is this: his “Cash for Clunkers” program achieved the brief pinnacle in sales for the three American auto makers. But what was the cost? Without going into the economics of unnecessarily removing many viable automobiles from the nation’s roads, the cost of Cash for Clunkers (CFC) came to at least $24,000** per car. So between the bailouts and Cash for Clunkers, GM and Chrysler during that two-month period had $38,000 paid them by the government for each car sold. Obama and his people, naturally enough, called “CFC, a wildly successful program.” Much akin to saying the President “saved us^^ from Depression,” it sounds like someone is seriously stretching the truth. Rajjpuut remains highly UNimpressed by the auto bailout and so should any thinking American, like you!

Ya’ll live long, strong and ornery,


$$ Actually, by orchestrating and manipulating the two bankruptcies, Barack Obama personally diverted huge amounts of taxpayer money into the United Auto Workers Union (UAW) by giving them a large chunk of ownership of the two ailing auto makers.


^^ History will show that Obama’s policies like those of FDR (which extended the dying July, 1933, recession about 8.5 unnecessary years) have done just the opposite: guaranteed a depression
Read more…