Friday, August 24, 2012

Bastiat Misread

"So, contra Yglesias, when a fan of Bastiat's sees the broken-window fallacy in government "stimulus" spending, she is on the firmest of ground. Every dime the government spends -- whether acquired through taxation or borrowing -- is a dime that someone in the private economy won't be spending. If people are not spending already -- which is not the case these days -- we must look to the earlier government interventions that brought about that condition­and then repeal those anti-market corporatist policies, regulations, and taxes."

The Goal Is Freedom
Bastiat Misread
When will the critics read with both eyes open?
Sheldon Richman
Posted August 24, 2012

It's always good to see Frédéric Bastiat discussed outside of libertarian circles, because even when his views are misstated, the mere mention of his name might prompt curious readers to check him out for themselves. That can't hurt!

So thank you, Matthew Yglesias, who wrote last week in Slate:

Bastiat's alleged broken windows fallacy involves simply assuming that there's no such thing as genuinely idle resources or an "output gap." In that context, yes, it's a vibrant intuitive depiction of crowding out. But this doesn't counter any Keynesian or monetarist points about the viability of stimulus during a recession induced by nominal shocks, it involves assuming that no such recessions can occur even though they plainly do. In defense of Bastiat, at the time he was writing the modern industrial business cycle was a very new thing and the vast majority of economic ups and downs were caused by things like bad weather which­as you can see in the corn futures market today -- is indeed a decisive consideration in an agricultural economy. But that's no excuse for people sitting around in 2012 to be pounding the table with an old book that's non-responsive to modern issues professing to be baffled why people don't find it more persuasive.

Yglesias asserts that Bastiat merely made certain assumptions about the operation of markets, but he does not demonstrate it -- and couldn't. Was Bastiat unfamiliar with J. B. Say? Lord Keynes and his fans may think he refuted Say's Law of Markets, but, tellingly, they had to misstate the law first. It's not that "supply creates its own demand," but rather that supply is demand. One produces a good either to consume it oneself or, more commonly, to trade it for another good. Demand and supply are two sides of the same, well, coin­which reminds me to add that Say's Law holds not just in a barter economy but a monetary one also­a freed one, that is, unlike the corporate state we all occupy.

True, someone might sell a good and not spend the money received. But this would lead to idleness only if the economy did not consist in a time structure of production coordinated by interest rates. In other words, money not spent is saved and available for investment (that is, payments for producer goods and labor , which will be spent on consumer goods) at stages remote from the consumer-goods level; that is, long-term investment in production for future consumption. (As Austrian macroeconomist Roger Garrison says, people save for something.)

Given our insatiable demand for goods, in a freed market a general glut couldn't happen; if prices were free to fluctuate in response to changed conditions or entrepreneurial error, the price of goods plentiful relative to demand would fall, while the price of goods deficient relative to demand would rise. Entrepreneurs would then adjust their plans, but since change is the rule, so the market wouldn't rest. Say's Law is about a (free) process through time, not general equilibrium.

Can Yglesias really be serious when he writes that Bastiat's position "involves assuming that no such recessions can occur even though they plainly do"? It is Yglesias who assumes what must be proved: namely, that recessions are a natural feature of the free market, rather than the consequence of government's corporatist meddling with money, banking, and interest rates.

Yglesias furnishes the latest example of "vulgar liberalism," as Kevin Carson calls it. This is the attribution of the evils of corporatism­big-business power, recessions, long-term structural unemployment, exploitation of labor, and more­to its antithesis, the freed market. Keynesians look around and see unemployment and idle resources, and then conclude (often encouraged by libertarians) that since the "free market" let this happen and doesn't seem to be doing anything about it, government stimulus is in order.

That's like walking into a movie in the middle, thinking you understand the plot. There are certainly idle labor and idle resources today. But that mere observation says nothing about why they are idle. Ludwig von Mises and F. A. Hayek, bolstered by the anatomists of corporatism, provided an explanation. Critics are welcome to rebut it, but they shouldn't pretend it doesn't exist.

As the Austrian economists explain, central-bank inflationary policies that artificially depress interest rates encourage longer-term production activities that wouldn't have been undertaken otherwise, given the level of real saving. When the boom ends, the malinvestment of labor and resources is revealed. Labor, equipment, and land that had been attracted to production inconsistent with true consumer demand must now be rearranged. The misshapen economy must be permitted to assume a more appropriate shape. But that takes entrepreneurial risk, time, and money (savings). If the correction is to occur quickly and with minimum hardship, the government must get out of the way. In particular, it must not keep interest rates artificially low (discouraging saving) or create uncertainty about the future regulatory and tax regimes. The world is uncertain enough; to the extent government increases uncertainty about regulation and taxation, investors will be encouraged to run in place and not make grand new commitments. This prevents the needed effort to align labor and resources with what consumers want (or will want in the future). Government spending may stimulate the use idle resources, but that's not good enough. We don't want just any use of recourses­they're scarce, after all. We want uses that consumers would approve of. Politicians, whose decisions face no market test, are clueless in that regard.

So, contra Yglesias, when a fan of Bastiat's sees the broken-window fallacy in government "stimulus" spending, she is on the firmest of ground. Every dime the government spends -- whether acquired through taxation or borrowing -- is a dime that someone in the private economy won't be spending. If people are not spending already -- which is not the case these days -- we must look to the earlier government interventions that brought about that condition­and then repeal those anti-market corporatist policies, regulations, and taxes.

http://www.thefreemanonline.org/columns/tgif/bastiat-misrea/

**JP** Re: JOB OPPORTUNITIES IN MUSLIM CHARITY UK ( MATERNAL HEALTH PROJECT PAKISTAN )

 
----- Original Message -----

 
 

Muslim Charity UK works to empower communities and find sustainable local solutions in pakistan. To tackle maternal mortality Muslim Charity is establishing the Abdul Latif Tahir Hospital in Lahore and invites talented and committed individuals to apply for the below vacant roles.

S.No

Job Title

No of posts

Qualification/Education

Experience

1

Lead Consultant

1

FCPS Obs/Gyne

10 years

2

Gynecologist

1

FCPS Obs/Gyne

1-5 years

3

Specialist

1

Diploma/MCPS Obs/Gyne

5-10 years

4

Medical Officers (Female)

2

MBBS

2 Years in Gyne Hospital/Department

5

Operation Theatre Assistant

1

Diploma in the relevant field

5 Year in any renowned Hospital

6

Accountant

1

B.Com, good knowledge of book keeping

5 Years

7

Staff Nurse

2

Nursing course qualified

2 Years

8

LHV

2

LHV course qualified

1 year

9

Dispenser

1

Diploma holder

1 year

10

Receptionist

1

Intermediate/B.com

1 Year

11

Aayyas

2

Middle pass

2 Year

12

Sweeper

1

Middle pass

3 Years

 

Application along with complete documents to be sent to "Administrator, Abdul Latif Tahir Gyne Hospital, MS Road, Daroghawala, Lahore" or email to zubair@muslimcharity.org.uk.  Please submit your resume with one passport size photo and relevant documents by Tuesday 28th August 2012. When applying please quote where you found this announcement.

**JP** career opportunity

 
----- Original Message -----

Rutgers WPF, an INGO working in Pakistan has following career opportunity: 

  • Manager Operations (01 post, ISB based, URGENT)

For further details visit http://rutgerswpfpak.org/jobs.html 

Last Date for submission of applications: 25th August, 2012

Biden Says He’s Been Intimate With Three Presidents


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Feds Warn of Anarchist Plots To Disrupt Conventions








 

Feds Warn of Anarchist Plots To Disrupt Conventions

http://www.slate.com/blogs/the_slatest/2012/08/23/convention_protests_attacks_fbi_homland_security_warn_of_anarchist_activity_at_rnc_dnc_.html?wpisrc=newsletter_jcr:content

 

 

By Josh Voorhees

 

Posted Thursday, Aug. 23, 2012, at 9:15 AM ET

 

Maybe the possibility of a hurricane crashing the RNC is the least of

convention planners' worries.

 

Law enforcement officials are concerned about violent anarchists disrupting

both parties upcoming national conventions, according to an intelligence

bulletin prepared by the FBI and the Department of Homeland Security and

obtained by CNN. Among the fears: that the extremists groups will use

improvised explosive devices and/or cause general chaos with the local

transportation infrastructure.

 

It's unclear exactly how concerned federal authorities are about such a

possibility, partly because the FBI routinely issues intelligence bulletins

ahead of major events to warn local authorities of potential security

concerns. The report mentions one specific threat-from a group of

individuals from New York who had been planning to go to Tampa Bay and

attempt to close all area bridges during the Republican National

Convention-but leaves it unclear if that plot relied on explosives or other

less-violent tactics.

 

from CNN:

 

Agencies warn of possible anarchist activity at conventions

http://www.cnn.com/2012/08/22/politics/conventions-anarchists/index.html

By Carol Cratty, CNN Senior Producer

updated 9:54 PM EDT, Wed August 22, 2012

 

    Intelligence bulletin prepared ahead of national political conventions

    It warns of possible activity by anarchist groups

    Bulletin cites concerns over bridges, infrastructure

 

Washington (CNN) -- Law enforcement officials are concerned about possible

violence by anarchist extremists at the upcoming Republican and Democratic

national conventions, according to an intelligence bulletin prepared by the

FBI and Department of Homeland Security.

 

The bulletin, which was obtained by CNN, says that anarchists could try to

use improvised explosive devices.

 

It also says that, as of March, the FBI had intelligence indicating

individuals from New York "planned to travel to Tampa and attempt to close"

all of the Tampa Bay-area bridges during the Republican National Convention

next week.

 

According to the document, the FBI's information as of March showed that

anarchist extremists proposed "engaging in potentially destructive criminal

activities against critical infrastructure outside the security perimeter

throughout the Tampa Bay region because they expected access to the main RNC

venue to be tightly controlled."

 

The FBI routinely issues intelligence bulletins in advance of many major

events to warn local law enforcement of possible security concerns.

 

The document notes anarchists have a history of trying to disrupt major

events.

 

"During past national and international political and economic events,

anarchist extremists have blocked streets, intersections, and bridges to

disrupt or impede local business operations and public transportation access

and, in some instances have initiated violent confrontations with police,"

the document states.

 

The agencies said that before the 2008 Republican National Convention in

Minneapolis, anarchists discussed blocking bridges and sky walks, taking

over a radio station, targeting corporations and identifying hotels where

delegates were staying.

 

The anarchists also talked about identifying the location of police stations

and emergency routes, according to law enforcement officials. The document,

however, doesn't provide details of what anarchists allegedly wanted to do

with that information.

 

"FBI and DHS assess with high confidence anarchist extremists will target

similar infrastructure in Tampa and Charlotte, with potentially significant

impacts on public safety and transportation," according to the law

enforcement alert. The Democratic National Convention is being held in

Charlotte, North Carolina, in early September.

 

Politics, parties keep some away from conventions

 

The bulletin says that law enforcement agencies believe most protesters at

the conventions will obey laws and not commit violent acts, but that

anarchists are the most likely exceptions.

 

The notice warns of certain things state and local law enforcement should be

on the watch for. Those include anarchists acquiring materials that could be

used to make improvised explosive devices, obtaining firearms training and

preparing for violence with groups they oppose -- such as white

supremacists.

 

Anarchists often research potential targets, according to the bulletin.

 

Law enforcement officials cite the arrest in late April of five Ohio men for

allegedly plotting to blow up a bridge over the Cuyahoga River near

Cleveland. Authorities said at least three of the men are self-proclaimed

anarchists who had considered "a series of evolving plots over several

months."

 

The bulletin says the suspected anarchists conducted surveillance and did

research on the Internet. The five pleaded not guilty to the charges.

 

A few memorable convention moments

==========================================

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Lookout Tampa, Here Comes Sheriff Joe!




Harold posted: "Giacomo8/24/2012 Over the past several years, two top cops have been center stage in the media.  Attorney General Eric Holder, the nation's top cop and Maricopa County Sheriff Joe Arpaio, the county's top cop.  Most of the media has centered arou"
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New post on ACGR's "News with Attitude"

Lookout Tampa, Here Comes Sheriff Joe!

by Harold

Giacomo 8/24/2012 Over the past several years, two top cops have been center stage in the media.  Attorney General Eric Holder, the nation's top cop and Maricopa County Sheriff Joe Arpaio, the county's top cop.  Most of the media has centered around Holder's lawsuits against Arpaio for racial profiling against Hispanics. Sadly, most of the [...]

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