liberty magazine november 2009 - jayant bhandari...ule where being at work, applying for jobs, or...

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Page 1: Liberty Magazine November 2009 - Jayant Bhandari...ule where being at work, applying for jobs, or caring for kids has higher pri ority. I volunteer on an afternoon shift at the pantry

HealthcareattheDMV

November 2009 $4.00

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-.:t ----.:to1'-;~ "Liberty is the paramount essential to human dignity and human happiness. 1/ - Bulwer

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Page 2: Liberty Magazine November 2009 - Jayant Bhandari...ule where being at work, applying for jobs, or caring for kids has higher pri ority. I volunteer on an afternoon shift at the pantry

Fresh from the Liberty Editors' Conference in Las Vegas!

Editors Speak Out!Liberty's editors spoke to standing room only crowds (yet again!) at our con­

ference held in conjunction with FreedomFest in Las Vegas. Now you can buydigital-quality recordings ...

How the New Deal Inspired the LibertarianMovement: David Boaz gets our conferenceoff to an electric start witn his ca£tivatingexploration of the roots of today s libertarianmovement. (CD 090tA)

Liberty & Religion: Stephen Cox, DougCasey, Jo Ann Skousen, Andrew Ferguson,and Charles Murray discuss (and disagreeabout) God, church, state, morality, ana theindividuaL (CD 0902A)

How Urban Planners Caused the HousingCrisis: Randal O'Toole has a uniquepersrective on the cause of the economicmeltdown. Conventional wisdom aside; thewealth of evidence he unveils leaves no doubtthat he's onto somethng. (CD 0903A)

Market Failure Considered as an ArgumentAgainst Government: David Friedman isnever better than when he's skewering half­baked ideas. Here, he demolishes trendyclaims that more government is the answer totoday's problems. (CD 0904A)

Why Your Friends & Nei2hbors Support BigGovernment: Randal O'T'oole, DaVId Boaz,and Stephen Cox take on one of the most:perplexIng questions in libertarianism: whyaon't people support freedom? Their answerswill surprIse you1 (CD 0905A)

How Obama Is Using Transportation Fundsto Tum the United Sfates Info Europe:Randal O'Toole exposes one of Obama'sbiggest, most brazen, but least discussedplans to circumvent your liberty. You11 beshocked by its audacity. (CD 0906A)

Anarchy or Limited Government?:Doug Casey, David Friedman, and MarkSkousen mesmerize their audience in whatmay be the most heated debate ever held at aLiberty conference. (CD 0907A)

Obama's First Six Months: Doug Casey,Stephen Cox, Randal O'Toole, and Jo AnnSkousen subject the new president and hisadministration to their penetrating analysis.Every lover of individual liberty must havethis Information about the most powerful, andtherefore most dangerous man in America.(CD 0908A)

Bailout: The Goo~the Bad, and theDownright Ugly: uoug Casey, RandalO'Toole, Jo Ann Skousen, and Jim Walshreveal the ugly truth about the biggest, mostblatant transfer of wealth in U.S. filstory. Cuibono? Even if you aren't surprised, you11 beinformed, fascInated, and appalled.(CD 0909A)

Should We Abolish the Criminal Law?:David Friedman makes a persuasiveargument for one of the most provocative,seemingly impracticable ideas that you'relikely to hear. Our legal system has seriousproblems, but can thIS be a solution? By theend of the hour, you will be convinced theanswer is "Yes!" (CD 09tOA)

The Complete 2009 Liberty Conference:Much more for less! Every minute of each ofthese panels and presentations. Doug Casey,David Boaz, DavId Friedman, Steplien Cox,Charles Murray, Randal O'Toole, AndrewFerguson, Mark Skousen, Jim Walsh, and JoAnn Skousen lecture, discuss, debate, andargue about almost everything under the sun.(Complete set only $59.95)

Page 3: Liberty Magazine November 2009 - Jayant Bhandari...ule where being at work, applying for jobs, or caring for kids has higher pri ority. I volunteer on an afternoon shift at the pantry

Features

Reviews

November 2009Volume 23, Number 10

25 Property Rights - or Property Permissions? TimothySandefur reports from the frontline of the judicial battle over yourpossessions.

4 Letters Liberty's readers bare their souls.

7 Reflections We arm ourselves, silence our critics, mend Americanhealth care, give out shirts, shake it down the slippery slope, indoctrinateyour kids, and kill all the lawyers.

35 Ban'em All The Olympic Games, observes former Olympian JamieMcEwan, is driven more by politics than by sport.

31 Healthcare Down at the DMV Bill Merritt foresees thefuture of medicine under universal health care: waiting in a leatherettechair, forever.

47 Beyond Allusions Brutal, yes, says Jo Ann Skousen - butTarantino's latest film has its own kind of beauty.

39 The Tangled Web Did World War II need to be fought? LelandYeager weighs the evidence.

42 Arguing for Capitalism Gary Jason tells the story of aneconomist who demonstrated that consumers have the "power of exit" ­from socialism.

44 Bubble Bobble Fed folly, deregulation, the Basel accords - BruceRamsey goes in search of just what made the economy go sour.

48 Uncle Sam's Money Machine Doug Gallob assesses the latestnews about America's financial monster - state-sponsored banking.

Inside Liberty

46 Notes on Contributors The workers in our fields.

55 Terra Incognita Life at the margin.

50 Singing in the Rain As Woodstock turns 40, Jo Ann Skousensurveys the spectacle.

54 Iron Chef, Zinc Saucier JoAnn Skousen tastes film fare with agood recipe and at least one interesting ingredient.

Page 4: Liberty Magazine November 2009 - Jayant Bhandari...ule where being at work, applying for jobs, or caring for kids has higher pri ority. I volunteer on an afternoon shift at the pantry

Letters to the editor

Liberty invit~s reader~ to comment on articles that have appeared in our pages. Wereserve the rIght to edIt for length and clarity. All letters are assumed to be intend­~d for publication unless otherwise stated. Succinct letters are preferred. PleaseInclude your address and phone number so that we can verify your identity.

Send email to:[email protected] send mail to: Liberty, P.O. Box 20527, Reno, NV 89515.

LettersAbout

YOur

SubscriptionQ: When does my subscription ex­

pire?A: Please look to the right ofyour name

on your mailing label. There youwill find (except in some cases whenreceiving your first issue) the numberof issues left in your subscription,followed by the word "left," as in "3LEFT."

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A: Write us at the postal or email ad­dresses below. Be sure to includeyour previous address, your newaddress, and a telephone number oremail address where we can reachyou ifwe have questions. It's best tosend us your current label and yournew address. Allow 6-8 weeks tobegin receiving Liberty at your newaddress.

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A: Clip the mailing labels from bothcopies and send them to the postaladdress below. We'll make sure youreceive all the issues you've paid for.

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A: Call the toll-free number below.We'll be happy to assist you.

Q: Is Liberty on the Web?A: Yes. Selected articles from each is­

sue are published online. Visit ourwebsite at libertyunbound.com.

[Beyond Their Means

Jon Harrison in Reflections(September) asks whether it is true thata reported 12% of Americans are goinghungry, as, apparently, a public serviceannouncement has claimed.

I have not seen this announcement,but I have worked as an interviewer(intake volunteer) at my local emer­gency-helping agency (food, clothesand limited financial assistance for thequalified) for well over 15 years. Myagency works with the working poor. Isuspect that the statistic of one in eightbeing hungry refers to what the profes­sional "advocates for the hungry" callsituational hunger. I sometimes over­simplify and call it "too much monthleft at the end of the money." Workingpoor often have hungry periods, but arenot chronically hungry. If you were todraw a line to represent a break-evenpoint where these folks' income andexpenses were equal, you would findthat over time their actual income wassometimes above and sometimes belowthat break-even point. When they aretaking in above the break-even point- say they have a job that pays $10 perhour rather than the minimum wage, orgives them 35 hours a week rather thanthe more usual 20 - then they buy theirTVs and game systems for the kids.They generally can hold on to some ofthose paid-for items, even though therewill be weeks when their hours get cutor they lose their jobs and end up withno food in the house, while looking foranother job. The shortage may occur

]abruptly and unexpectedly, as thesefolks are subject to decisions made byothers. These folks do not live month tomonth. It is basically week to week, ifnot day to day.

Also, one should not minimize thedifficulties that clients may have inaccessing either government or chari­table food providers. Clients must tryto fit visits to the pantry into a sched­ule where being at work, applying forjobs, or caring for kids has higher pri­ority. I volunteer on an afternoon shiftat the pantry. When I interview a clientand his responses are slow, or he is ac­companied by whimpering and listlesschildren or seems unusually eager toget his food donation, I ask, "Have youhad anything to eat today?" Frequently,the answer is "No." Our pantry has lit­tle preassembled bags of food for theclients to eat on the spot. Then we cantake care of the longer term by filling afood donation order.

Susan FrensleyRichardson, TX

Harrison responds: Ms. Frensley raisesa very important issue in her letter, viz.,that some people have children theycan't afford to raise. People such asshe describes simply have no businessstarting a family. Indeed, I would saythis is the number one social problemin the United States today. We alloweveryone to believe they have a "right"to reproduce, irrespective of their eco­nomic circumstances. As a result thepoor blithely go ahead and producepassels of brats who depend upon the

To subscribe, renew, or askquestions about your subscription

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Write: Liberty Circulation, P.o. Box20527, Reno, NV 89515

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Page 5: Liberty Magazine November 2009 - Jayant Bhandari...ule where being at work, applying for jobs, or caring for kids has higher pri ority. I volunteer on an afternoon shift at the pantry

rest of us for sustenance. Governmentcould do something beneficial for soci­ety by starting a program to instruct thecitizenry that parenthood is not in fact aright. I would gladly pay taxes for this.

I'm sorry, but I don't see that theworking poor are justified inbuying vid­eo games or a TV when they are abovethe "break-even point," if it means theywill require public assistance a littlelater on. Instead, they should save anyoverage for the leaner times. Anyonefeeding at the public trough should notbe buying luxuries of any kind.

It's true that some families fall onhard times and have trouble makingends meet. I myself have known a hun­gry day or two in my life. I would spendpublic money on soup kitchens to en­sure that every American has enough toeat every day. I don't want any of myfellow citizens, even the most irrespon­sible among them, ever to go hungry.But I also want the government, the

churches and the "advocate class" totell people straight: you must not havechildren you can't support!

Capitalism's Black SpotEver the snob, Michael Christian

seems not to have consulted a news me­dia outlet of any political stripe or of anylanguage. "Hasn't anyone noticed thatthe industries suffering spectacular col­lapses because of bad risk managementare two of the most heavily regulatedindustries in the country - bankingand insurance?" he declaims ("Bastiaton the Bay," September).

Other libertarians might not noticeor care about the sleight of hand usedhere, but I did and I do. Part of the spec­tacular collapse occurred in that portionof the banking and insurance industriesthat was least regulated, thanks to themidwifing of Alan Greenspan and oth­er free market defenders in the birth theCFMA of 2000. The collapse involved

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From the Editor

You have to pity President Obama. (Well, maybe you don't have to pity him,but you can certainly try.) As Liberty goes to press, his popularity is plummet­ing, and his legislative agenda arouses more antagonism every day. You can bet hecan't sit at his desk for five minutes without having to listen to panicked advisersdemanding that he do something - six or eight simultaneous and contradictorythings - to get his administration out of the jam.

Here is a man who sacrificed all earthly joys to the strange ambition of becom­ing president. And even that wouldn't be so bad, if he'd taken the job on the termsin which it was originally described - to "defend the Constitution of the UnitedStates" and "take care that the laws be faithfully executed." That wouldn't take 24hours a day. But President Obama, like all other recent presidents, considered ithis duty to "run the country," and especially to "run" its economy - without, ofcourse, having any idea of how to do that.

The consequence is that he spends his days being lectured by hysterical or mo­rose and truculent aides. Most of them, he knows, are quacks, since they constantlydisagree with one another, in the most bizarre and dogmatic ways. But which onesare quacks? That's what he'd like to find out.

How can he tell? He doesn't know anything about economics or history or even,apparently, the American people. And he doesn't have time to study up on thosethings. What's he to do?

Well, Mr. President, we at Liberty have a suggestion. Just send us $29.50, andwe will send you a year's subscription - eleven big issues, delivered directly to yourhome by an agent of the U.S. government. It won't take long for Liberty's authorsto tell you what you need to know. And if you act on their advice, your popularitywill return. Best of all, once you stop doing all the things you never really needed todo, you'll have a lot more time to spend with your daughters.

Look, Mr. President. If you can't find your checkbook, I'll buy you a subscrip­tion to Liberty. When was the last time you got an offer like that? And I'll leave theoffer open. Just let me know.

Send to: Liberty, Dept. L,P.O. Box 20527, Reno, NV 89515

.. _-----_.For Liberty,

.5P- ~Stephen Cox

expiration date signature

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November 2009

those financial institutions who - withunbound hands and free will - chose toinvest in a mortgage pool swelling withsubprime mortgage, via such esotericinstruments as credit default swaps.

"Christian" must be more than aname, it must be a descriptive - heseems devoted to the belief that noth­ing bad can ever happen in a totally freemarket

For "show me" libertarians - whoalways knew that subprime mortgagelending was a disaster waiting to hap­pen - the lesson of the collapse wasthat a few individuals in the right placecan be so blinded by the feeding frenzythat they can bring about a differentand larger disaster, one that hurts farmore people.

Any more like this, and capital­ism can forget about any superiority itmight have - an intelligent and demo­cratic society will avoid it. It's time toquit thinking like a Christian.

John EyonSeattle, WA

Christian responds: I'm grateful forthis letter. It gives me a chance to pleadguilty and to reiterate something. Firstthe guilty plea - I am, indeed, a snob,but how did Mr. Eyon figure it out?I'm perplexed. Now to reiterate - themortgage pool swelled with subprimemortgages because Freddie Mac andFannie Mae, both creatures of the gov­ernment, made or guaranteed most ofthose loans and regulators with greatarbitrary power over other financialinstitutions strongly encouraged suchloans.

Self-Evident To Whom?Stephen Cox's review of "The Latest

Illiteracy" (September), like· virtuallyanything he writes, was an insightfulpleasure to read. One particular ob­servation, however, struck a dissonantchord with me and, at the risk of ex­posing myself as a complete crankand being told to "go away," 111 takeissue with Cox's (and nearly everyoneelse's) assessment of the Declaration ofIndependence's "We hold these truthsto be self evident" passage.

Lofty words. Pure poetry, perhaps- but devoid of any connection to real­ity. It is not self-evident that "all menare created equal," or "that they areendowed by their Creator with certainunalienable rights," or "that among

6 Liberty

those are Life, Liberty, and the pursuitof Happiness." One need only look atthe history of the Bill of Rights and itsignored 9th Amendment to realize thatthe only rights citizens retain - muchless "are endowed with" - are thosethat they explicitly claw from their gov­ernment; Life, Liberty, and the pursuitof Happiness not included. Perhapsthey were too "self-evident"?

It took nearly another 100 years forthose three self-evident rights to be in­cluded in the Constitution under the14th Amendment as "life, liberty, orproperty." And even now they're notsecure. "Pursuit of Happiness" wasan elegant albeit vague and meaning­less euphemism for property, whichJefferson was loath to include fearingit might justify slavery. Unfortunately,the omission later caused such an ero­sion of property rights that there is nowpopular clamor (one proponent beingthe Institute for Justice) for a property­rights amendment to the Constitution.

The slippery nature of even enumer­ated rights - much less"self-evidentlyendowed" rights - comes to mind inJustice Oliver Wendell Holmes' dissentin the Lochner v. New York case. His par­ticularly perverse interpretation of the14th Amendment, using original intent,mind you, found that since the amend­ment was originally written to protectthe rights of freed slaves, it could notapply to workers and management de­ciding the length of their workday. Butthen, he was famous for declaring thathe could decide any case, any way, us­ing any principle.

As populist rabble-rousing,Jefferson's clause is second to none,and in that sense, it is great writing.However, as a description of reality or arecipe for government, it is a completefailure. Therefore I must counterintui­tively conclude, being a firm believer inthe dictum that form follows function,that the clause in question is neither ef­fective nor elegant writing.

Robert H. MillerPrescott, AZ

She's a KeeperAll my life, I have heard the ques­

tion, "Am I my brother's keeper?"treated as though it is a serious questionthat asks whether one is responsible foranother's living standards. But suchout-of-context quotes give a completelydifferent meaning than the plain words

would lead one to believe. It's a lotlike the meaning given to "Give untoCaesar that which is Caesar's," exceptthe true meaning of this one is muchmore clear.

A "keeper" is one who keeps anothercaptive. Think "zookeeper." "Warden"or "jailer" would be a synonym. Cain'sresponse to God's inquiry, "Where isyour brother?" was a smartass answer,made more asinine by the fact that Cainknew full well where his brother, Abel,was: dead by his hand. "I know not. AmI my brother's keeper?" In other words,Abel is a free adult; Cain doesn't controlAbel's movements. Cain's response wasnot a serious philosophical question.

This came to mind when BarackObama used the phrase in a speech re­cently, saying that he thinks he is hisbrother's keeper. If he really meansthat, he is truly dangerous; he wantsto tum the entire country into a prison,with him as warden.

Rush Limbaugh didn't pick up onthat; he and his co-hosts and gueststreated it as a question regarding caringfor one's brother. A keeper is responsi­ble for his captives' wellbeing, but onlybecause they cannot fend for themselves- a fact that many people forget aboutwhen they rail against prison healthcare. Obama apparently wants to makethe country a big prison, so he can takecare of everyone's health.

Biblical literacy being at such a lowpoint in this country, Jo Ann Skousen'sreview(October) of"MySister'sKeeper"also fails to note the film's perpetuationof this Biblical misinterpretation. Thequote from Emerson's "Self-Reliance"does not employ the phrase; it probablywould not have occurred to people inEmerson's time, when most Americansactually read the Bible, to turn an obvi­ously sassy answer to God into a seriousphilosophical question.

RyckeBrownGrants Pass, OR

Skousen responds: You're right thata "keeper" is one who keeps othersin a confined location, and usually ­though not always - against their will.When Cain asks "Am I my brother'skeeper?" he probably does mean, "Is itmy responsibility to keep my brother bymy side and in my sight?" and not "AmI supposed to take care of my brother?"

continued on page 38

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Some say ice - Sunspots normally peak and ebb onan 11-year cycle. But shortly after astronomers started keep­ing track of them in the early 1600s, the sun virtually stoppedproducing sunspots for a period of about 70 years. That periodis known as the Maunder Minimum. Coincidentally, the LittleIce Age occurred during this lull.

Recently the sun has once again virtually stopped produc­ing sunspots. I am not qualified to predict whether we areheaded for another minimum, and I'm not qualified to saywhether sunspots affect earth's global temperatures (althoughthe evidence looks pretty good to me), but I am rooting forLittle Ice Age II, for two reasons.

First, I don't want to see cities at low elevations devastatedby rising oceans produced by melting ice. Second, I'd love tohear Nobel Laureate Al Gore's explanation of why the heatingbill for his mansion continues to climb. - Jeff Wrobel

Hard numbers - The company that created andadministers the ACT college admissions test has just releasedthe 2009 analysis of the nation-wide results, and they are not (SIR, IT'S "DE.MOCRAeY,encouraging. SAFE FOR DEMOCRACYJ .,

The results show that while NOT "H,/POc.RIS'i.")

67% of high school graduates arecollege-ready in English, only53% are college-ready in reading,less than half (42°,/0, to be exact)are college-ready in math, andless than a third (28%) are college­ready in science. In fact, less thana quarter (23%) are college-readyin all four areas.

This is about high schoolgrads, please note. It doesn't con­sider dropouts, who constitute alarge percentage of students inmost large public school districts.Nor does it consider high schoolgrads who don't take collegeadmission tests, either because they are going straight into thework force or are going to junior college or trade schools.

The results are essentially the same as for last year (whenonly 22% of the test takers were college ready in all fourareas).

Considering that the sample size here is large - about1.48 million out of the 3.3 million eligible high school students(usually juniors) took the test - it is clear that our educationalcrisis continues.

Indeed, the figures are so disappointing that Bob White,head of the nonpartisan Alliance for Excellent Education, wasmoved to opine, "We're not making the progress we need tobe making. The only way you improve these numbers and get

them higher is by improving your secondary schools." Really,ya think?

But improving secondary schools requires more schoolchoice, something Obama and the Democrats in Congressstaunchly oppose. In fact, the only major educational initia­tive that these union-controlled hacks have taken was to killthe DC voucher program.

You can expect the primary and secondary educationalsystem in America to continue to rot for years. - Gary Jason

Gunfight - The controversy about carrying guns inpublic is not new. In 1967, however, the political alignmentson this issue were completely different. Many conservatives(and others) objected when the Black Panthers insisted onexercising this right in California. In response, Gov. RonaldReagan signed the Mulford Act banning the carrying of gunsin public.

Many defenders of liberty have felt the need reflexively todefend the gun-toting citizens who have recently appeared

at rallies. This is a mistake, or atleast an incomplete response. Afar more productive contribu­tion to an otherwise futile debateis to emphasize privatization as asolution. We can find a just andefficient answer to the questiononly by treating this as a tragedy­of-the-commons issue.

Both sides have a point, butneither can ever be satisfied aslong as thoroughfares, parks, andother venues for town halls or ral­lies continue to be governmentowned. When a venue is pri­vately owned, the issue becomesa relatively simple one: the ownerdecides who can carry guns. The

.5,",CHAM8f.RS problem (to the extent it is a prob-lem) arises only when we take

private property out of the equation. In the absence of priva­tization, the controversy will never end until one side or theother forces its will over the commons through the brute forceof legislation. - David Beito

Turnabout is foul play - No matter how much Itry, I just can't get excited about the Republicans in Congressopposing Obama's healthcare reforms. Sure, they have cor­rectly said it is too expensive and too socialistic. But like theproverbial pot calling the kettle black, the Republicans arehypocrites, as well as big spenders who frequently supportsocialist legislation, when it is their own.

How quickly conservatives forget that it was Republicansin 2003 that gave us the Medicare Prescription Drug,

Liberty 7

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November 2009

Improvement, and Modernization Act (PL 108-173). Initiallyprojected to cost about $400 billion (which is still $400 billiontoo much), it is now projected to cost over a trillion dollars.

Introduced on June 25, 2003, by the Republican HouseSpeaker Dennis Hastert and supported by the RepublicanHouse Majority Leader Tom DeLay, this reform and modern­ization of Medicare passed the House (220-215) and the Senate(54-44) in late 2003 with overwhelming Republican support.In fact, it was Democrats who almost defeated this massiveexpansion of the welfare state. Only nine Republicans in theSenate and 25 in the House voted against healthcare reformin 2003.

Why are the Republicans en masse opposed to health­care in 2009? Have the Republicans become libertarians, orare they partisan hypocrites without any real allegiance to theConstitution or the principles of liberty and limited govern­ment? I'm afraid it's the latter. - Laurence M. Vance

Health is in the eye of the beholder -Overhauling the U.S. medical system will do absolutelynothing to improve the health of the population. Americanmedicine is extremely good for acute problems and diseases,but when it comes to health maintenance, it's next to useless.

Michael Moore, who is physically obese, intellectually dis­honest, and philosophically unsound (what a pathetic com­bination - he should run for Congress), made the argumentin his ridiculous movie that the average Cuban is healthierthan the average American. That's correct, but it has abso­lutely nothing to do with the healthcare system. The average

Cuban isn't healthier than the average American because hishealthcare system is better. It's a horrible, primitive health­care system. The technology stopped advancing there backin 1960, and the doctors stopped learning new things in thatyear. Nothing has changed since 1960. But the average Cubanis in much better health than the average American.

There are two reasons for that: he gets a lot more exercisethan the average American, and he has a much better diet,which is to say that he eats far fewer calories (and they areunrefined calories).

When things change in Cuba, so they have a diet like thatof the average American and the same kind of transportationas the average American, the average Cuban will be in muchworse shape.

People conflate the health of a population with a country'smedical system, when these things really have almost nothingto do with each other. - Doug Casey

Childishness - The handsome moron Van Jonesresigned his job as Obama's "green jobs czar" (technically,part of the White House Council on Environmental Quality).Jones had, in years passed, reportedly signed a "truther" doc­ument alleging that George W. Bush had orchestrated the 9/11attacks on New York and Washington, DC. He had also calledall Republicans"assholes."

Jones's explanation for his resignation didn't make muchsense. He said that his critics used "lies and distortions" toattack him; yet he legitimized their complaints by quitting.The New York Times had to twist its prose into logic-defying

Word Watchby Stephen Cox

I don't know - why can't people care about the words theysay and write? Don't they have any self-respect?

Mary Chesnut, the diarist of the Confederacy, wondered thesame thing:

"I saw a letter from a girl crossed in love. It was shown to meand my advice asked. Her parents object to the social positionof her fiance, in point of fact forbid the banns. She writes, 'I ammissereablle.' Her sister she calls a 'mean retch.'

For such a speller I said a man of any social status would do.They ought not to expect so much for her. If she wrote her 'pah' anote, 1 am sure that 'stern parient' would give in."

A "mean retch"! You have to give the girl credit - what atriumph of illiteracy!

Mrs. Chesnut adds, "I am miserable, too, today - with ones and one l." If she were here now, I'm sure she would share myown misery about the weird assemblages of letters and syllablesthat virtually everyone, from college professors to girls crossed inlove, now accepts as words, decent and ordinary:

"Alright" ("all right" had too many letters)."Thusly" ("thus" had too few)."Deplane": "in the unlikely event of a water landing, passen­

gers will deplane through the side-door exits" ("leave," appar­ently, had too few syllables).

"Detrain" (the inevitable result of"deplane")."Pre-approve": "you are now pre-approved for credit" (the

actual approval will come two seconds before the crack of doom)."Input": "please give me your input" (but why ask? - "input"

is something, I assume, that I am required to give, wheneversome computer bureaucrat inserts my plug in a socket, switchesme on, and logs onto my brain; "input" is nothing like the old­fashioned "advice," which implied a human aspect).

That's ugly. But do people ever reflect on the weird thingstheir words imply? Or on the nonsense that their words statedirectly?

Here's an account ofJohn Steinbeck's involvement withmovies. It says he provided "interesting introductions to severalfilmed adaptations of short stories by the legendary writer O.Henry." All right; now tell me, what are the legends of O. Henry?Was he the assassin ofJesse James? Or was he the guy who dis­covered the Holy Grail? But maybe I should be grateful that thewriter didn't call him "infamous."

Of course, there are Americans who are oblivious to whatthey say, not on the small scale but on the grand scale. Our vicepresident is a fine example. In late July he gave an interview toThe Wall Street Journal in which he remarked derisively on thedeficiencies of the Russian political-economic zeitgeist: "Theyhave a shrinking population base, they have a withering economy,they have a banking sector and structure that is not likely to beable to withstand the next 15 years [Wait! Is he talking aboutthem or us?], they're in a situation where the world is changing

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gibberish (or even more so than usual) to spin its coveragesympathetically to Jones.

Van Jones is a trivial figure, who may already be forgot­ten by the time this issue sees print. But, for me, the take­away point from his 15 minutes of fame is that people in fairlyhigh positions inside the Beltway believe childish things. Thatadministrations as inept as W. Bush's are able to control worldevents to provide causa belli. And that all members of an estab­lishment political party share the same temperament.

I have a daughter in the 8th grade. She's gotten past suchstupid thinking. - Jim Walsh

For the children - As we go to press, our intrepidpresident is prepping to speechify the nation's children inan address which, to extrapolate from his prior bloviations,will be tedious, mawky, and radiant with self-satisfaction. Nochange, then, from a normal session of government school­ing. Yet the request that the kiddies set aside 20 whole min­utes out of their day's intense study in order to attend to DearLeader's words has sent many a school board to the soapbox,to announce their intended "boycott" of Obama's speech.

Presumably their complaint is not the same as mine ­that those 20 minutes would be far better spent inculcatingeconomic and mathematical understanding through suchactivities as slinging dimebags or shooting dice - but rathera more general objection to the attempted indoctrination.(As a side note, it would be interesting to measure the over­lap between those who support a speech boycott, and thosewho support daily recitation of the Pledge of Allegiance.)

before them and they're clinging to something in the past that isnot sustainable."

The vice president's words were in complete contradictionto the line that the president, his boss, had been taking towardRussia. But Biden, caring nothing for all that, proceeded to drawhis own, rather dramatic, policy conclusions: "I think we vastlyunderestimate the hand that we hold."

Yes, maybe so. Bring out the Big Red One! But why shouldthe vice president tip our hand?

I'm sorry to mention this, but the Russians, for once,analyzed the situation correctly. They denounced Biden for his"boorish openness." "Boorish" is traditionally the best adjec­tive for official Russian speech, but "boorish openness" is anauthentic description of enormous terrains of current Americandiscourse.

Last month, Liberty Contributing Editor David Boaz visitedSan Diego, my home town, and we went out to dinner at a goodrestaurant. David ordered one of those weird combinations thatyou find only in an upscale American eatery: lobster, macaroni,and cheese. (I confined myself to more ordinary Californiacuisine - pork chop, sweet potato, bok choy.) The dreary thingwas that we couldn't order without first being grilled by thewaiter. Very nicely, very subserviently, he inquired where we werefrom, how we were doing, how we were doing tonight, how waseverything with us tonight, how had our day gone, how was ourevening going, what were our plans for the weekend ...

Stop!If you're from the West Coast, you'll recognize this as the

inquisition you always have to endure before people are willing

November 2009

Admittedly, there's some credence to this charge: initial plansfor the address included a Department of Ed handout thatwould encourage the children to "write letters to themselvesabout what they can do to help the president."

All the same, the fear is overstated, and there may evencome benefits of enduring the president's missive. Primarilythis is because kids today, however ill-taught they may be,are almost without exception media-savvy: when even lower­class families have a hundred channels, it's silly to expect thatthey will give more than five seconds' consideration to a sin­gle talking head - a presentation format that was already onits way out when Max Headroom had his brief static-burst ofglory in the late '80s, and which is by now paleolithic. Hencethe benefits: schoolchildren will be confronted with our latestpolitical messiah, a man whose face has through sheer repeti­tion become synonymous with"change," and they will realizethat the man behind the face is, like any other adult authorityfigure, deeply and utterly dull.

Meanwhile, a much more audacious attempt at indoctri­nation has gone underreported, and would completely haveescaped notice if not for the vigilance of Patrick Courrie1che.On his blog, Big Hollywood, Courrie1che detailed how inearly August he and perhaps a hundred other artists hadbeen recruited by the NEA to listen in on a conference callintended lito help lay a new foundation for growth, focusingon core areas of the recovery agenda - healthcare, energyand environment, safety and security, education, communityrenewal."

to feed you. You're supposed to say, "Fine. Just fine. Doin' good.Day went well. Just kickin' back tonight. No plans, just kickin'back this weekend," and a load of other meaningless drivel meantsolely to establish that you are "nice" - as if anybody cared.

I would prefer to answer: "Oh, thanks for asking. I'm fromGreenland. Yeah, as you'd know by consulting the globe, but Isuppose you haven't, Greenland is that goofy place that looksreally big on the map. Bigger than America! No, really. Dude! Imean it. But nobody lives there. Nobody except the Eskimos. Imean the Inuit peoples. LOOK AT ME! I am one myself! TodayI lost $5,000,000 in investments, my longtime partner left me,my cocker spaniel died of a venereal disease that could have beentreated if I'd known in time about the virtues of Obamacare, andI am no longer sure that I was right in my critique of the aerialshots in 'North by Northwest.' By the way, my friend and I willbe spending part of our evening robbing the other customers atgunpoint, because neither of us has enough cash to pay for thismeal. Just so you know. Dude."

Ah, fantasy! But I'll return to things that are real. I don'tthink David was prepared for the "server's" cross-examination.He just sat there, unable to respond. Maybe he was doing what Iwas doing - pretending to be deaf, or French, so the guy wouldgo away and signal the busboy to give us our water. But there wasno need to worry: our server wasn't interested in anything wehad to say; he'd simply been trained to recite a boorish litany ofsupposed friendship.

Why would anyone think this was a good idea? And whywould anyone think it was a pleasant and gracious custom topoint at your food and shout, "You still workin' on that?" But

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November 2009

Courrielche was skeptical of this attempt to enlist art­ists in what he perceived to be a propaganda campaign ­a perception amply confirmed by the lead man on the call,NEA Communications Director Yosi Sergant, who noted that"Obama has a strong arts agenda ... and has been very sup­portive of both using and supporting the arts in creative waysto talk about the issues facing the country.... now Obama isputting out the call of service to help create change."

"Ask what you can do for your country": if there is any dic­tum which sums up the beliefs of our leaders in Washington,on both sides of the aisle, it is this totalitarian call to nationalservice - which Obama in his children's sermon will cer­tainly reference. This supposed imperative, after all, is a cen­tral component both of Obama's special-interest leftism, andalso of John McCain's "national greatness" conservatism. Inthe conference call, it was presented in its most blatant formto these creators and taste-makers, most of whom as dutifulHope-poster wavers could be expected to commit themselvesunreservedly to the NEA intiative.

It may seem to many that trying to preverit the "politici­zation" of the NEA is like trying to shut the barn door afterthe horse has bolted. But, as Courrielchenotes, in the 40-oddyears the NEA has been in existence, he couldn't find"a singleinstance of the agency creating or supporting a national ini­tiative that encouraged the art community to address currentissues under contentious debate." And, unlike the technotardsin charge of Obama's inevitably awkward TV address, theseartists are not ignorant of media; these are concert promoters,art directors, marketing mavens; moreover, these are street-

that's what "servers" from one end of the republic to another nowdo, at the conclusion of every course, and if possible before thecourse is concluded. I remember telling Muriel Hall, who hadspent the whole of her long life on the East Coast, that this waswhat people said in California. She thought I was joking. Thatwas over a decade ago. Now the joke is everywhere.

But I'm sorry to be talking so much about what goes on inrestaurants. There are countless worse things. Here's one.

On August 5, Los Angeles County Police Chief Bill Brattonannounced his retirement. He said he would miss his job; thenhe added, "But policing is never finished. That's the great thingabout it." Let's see - the great thing about being a cop isn't pre­venting crime or bringing justice to criminals; it's the persistenceof crime and criminals, right?

Or do you think he didn't mean that? Maybe. Then what didhe mean - if anything?

Given the choice, however, 1'd prefer meaninglessness topolitical correctness. And political correctness wouldn't be half asbad as it is, if it were combined with even a faint concern for thestructure and sound of language. But it never is.

People who believe that "men" (as in "all men are createdequal") is "sexist," because it refers only to males, are obviouslyignorant of the history of the English language and the meaningof English words. No synonym of "mankind" or "everyone" evermeant "males." But when I hear a choir sing, "Joy to the world,the Lord is come; / Let we our songs employ," I realize how manypeople have an oh, so sensitive ear for "sexist" words but no earwhatever for basic grammar. ("Shall we go downtown?" "Yes,let we.") And why should anyone assume that people who can't

artists, underground poets, independent journalists - thisinitiative is recruiting not only those who know how to getmessages out in contemporary society, but also those whosestatus as "outsiders" make them indispensible in overcomingany lingering skepticism among their peers.

Consider too the other organizers of the call: aiding theNEA (in the form of Sergant) were representatives of theWhite House Office of Public Engagement; United We Serve;Rock the Vote; and Russell Simmons. This last is arguablythe most influential man in American culture, a hiphop andfashion mogul who with a nod of his head can make an art­ist's career. That'd be the carrot: the stick is that anyone refus­ing to participate could find funding hard to come by, as theNEA remains the single biggest source of artistic funding inthe country. And, as shown by the direct links to Obama andhis indentured-servitude campaign, any holdouts could alsofind themselves as political pariahs, denounced by their fel­low conference-callers and shunned by an increasingly politi­cized arts community.

Several commentators have jumped from this point tobackdoor evocation of Godwin's Law, but one need not raisethe ghost of Leni Riefenstahl to recognize that little good cancome of yoking art to power. At best, the result will be a sortof cultural Keynesianism, extending the broken-window fal­lacy to aesthetic products. At worst, there will arise a de factocommittee on un-American artistry, ostracizing those whoseproducts are deemed insufficiently hortatory: observe thehatchet job done on John Mackey, whose Whole Foods storesare fixtures in campus and arts communities, for the crime of

spend a moment thinking about English grammar ought to beentrusted to revise English vocabulary?

There are much more important examples of boorishness.This summer, President Obama made a mess of his reputationas the Platonic form of racial sensitivity, first by flying off thehandle about the police having acted "stupidly" in the case ofProfessor Gates (whose conduct was presumably impeccable),then by repenting, not in sackcloth and ashes but in an over­tailored suit, acknowledging that his words might have beenbetter ... "calibrated." Tell me, what honest person prideshimself on the careful calibration of his words? This was boorishopenness, closely followed by boorish wiliness.

The president should simply have apologized for his raciallyinflammatory remark. Instead, he did what Bill Clinton loved todo: he constructed sentences in which the individual words weretrue but the sentences themselves were false. Since Clinton, thispractice has been called "parsing." Did I say something dumb?Did I say something that everyone else regards as a transparenthalf-truth, equivocation, or outright lie? No, I didn't. I just failedto "calibrate" my statement well enough. But don't conclude, onthat basis, that I ever in my life said something wrong.

How often has Mr. Obama, either before his election or afterit, plainly admitted a real mistake? The answer is: as often as Mr.Clinton did. Yet both of them spend half their time equivocatingabout it.

Remember all those comments by President Obama abouthow his healthcare "reforms" were "revenue-neutral," despite theCongressional Budget Office's projections of a trillion-dollar loss?His statements could certainly have been better calibrated. Yet

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drawing on decades of corporate experience to offer Obamaadvice on healthcare reform.

This, then, is the real danger of Obama's schoolhouseaddress: it's political sleight of hand, drawing criticismfor the indoctrination it is ill-equipped to deliver, deflect­ing criticism away from more subtle initiatives much bettersuited to propaganda. Don't be fooled by spectacle: through­out his career, Obama has done his real dealings throughpublic-interest and labor groups, under the guise of commu­nity organization. And for most of these dealings, there willbe no Courrielche on hand to expose what's going on behindthe scenes. - Andrew Ferguson

Reach out and touchy feely someone - Itis easy to be critical of how businesses have responded to theglobal warming alarmist agenda. Most firms have fallen overthemselves promising to reduce carbon dioxide (C02) emis­sions, in ways that are economically impossible or that reducetheir profitability - but not all of them have.

AT&T Chairman Randall Stephenson recently listeda number of economically feasible ways to reduce C02:greater reliance on telecommuting, web-based data manage­ment, online delivery of books and other informational ser­vices, real-time CPS systems that encourage efficient trafficflows, and dynamic electricity pricing with telecommunica­tion links. Unfortunately, many of these good ideas will beblocked by various state and local laws. Archaic ideas of pri­vacy limit informational exchange. Labor rules limit people'soptions to work from home. Trade barriers restrict informa­tion outsourcing. These things reduce incentives to upgrade

by "revenue" he simply meant "something that has nothing to dowith reality," and by "neutral" he meant "ditto."

Try this. It's from an August 5 Associated Press report aboutthe corruption conviction of nine-term Congressman WilliamJefferson of New Orleans, the honorable member of the Housewho was caught with $90,000 in cash in his freezer. Sounds bad,doesn't it? And it is. In times like these, it's a terrible thing to takeall those greenbacks off the market. Some stimulus! But to theAP the important thing was how members ofthe public reacted tothe case against the congressman.

The AP found, as it usually finds, that even when an argu­ment is absolutely conclusive, some of the public are opposed andsome of the public are not opposed. And as usual, the AP's publicwas distinguished by its boorish lack of logic.

One middle-aged lady, surprised on the street as she waswaiting for a ride (in case you wondered where the AP findsauthorities to interview), offered some typically nonconsecutivethought: "There was so much controversy, the way they went tothe man's home and took stuff.... He was no worse than theothers."

The logicians call this kind of argument tu quoque - "youtoo," or in this case "they too." There's evidence that the con­gressman took bribes? So do the rest of them! And therefore . . .what?

This logic emerged in another form, from a Christianminister who promised that he would be Jefferson's "supporteruntil the last breath in [the minister's] mouth": "IfMarion Barry[former mayor ofWashington] can be convicted of smoking crackcocaine on video and come back, then I think Bill Jefferson can

November 2009

grids and impede creative proposals, such as Stephenson's,that encourage more rational pricing.

However, Stephenson also supports popular, yet dubious,energy policies. AT&T plans to increase its reliance on alterna­tive fuel vehicles. It is unclear whether Stephenson endorsesthe current subsidy policies that make wind energy and otherless viable power sources possible. Government energy effi­ciency standards - for light bulbs, through E-Star programsfor appliances, and so forth - are not free. They impose costsin terms of either price or product quality. After all, if con­sumers preferred the products, there would be no need forgovernment mandates or ad campaigns. Granting energyconservation priority over other human needs may even exac­erbate such serious problems as global hunger, as has hap­pened because of pro-ethanol government policies.

Capitalism, by means of its dominant institution, themodern corporation, has done many things worthy of praise.Unfortunately, business has failed to market its virtues. Ratherit has too often acquiesced to populist and political pressureregarding energy and other fields of politically correct policy.Businesses play defense, merely tweaking regulatory poli­cies, at great cost to themselves. The telecommunications sec­tor has suffered from overregulation of the grid and confusedantitrust policies that limit rational reorganization, restrictingAT&T and others' ability to innovate creatively.

In "Creating the Corporate Soul," a look at the history ofcorporate communication, Roland Marchand notes that notlong ago AT&T was a leader in establishing legitimacy. AT&Tpromoted its communication networks as a social good,

have a second chance." Again, "he too." And unfortunately, thisargument may be vindicated. The honorable Mr. Jefferson maywell get another try at the trough.

But so much for logic. How about taste? Plain old-fashionedtaste? And how about a taste for liberty?

Carl Isackson, a denizen of northern California, reports avisit to a school concert. "One of the second-grade classes," hesays, "sang Santana's 'Evil Ways' with changed lyrics":

You've got to change your evil ways - people! ...You've got to use it, re-use it, recycle today,Tell your friends and your parents to start right away,This can't go on !

Was there no one in the audience except Carl who thoughtit was a trifle tasteless for second-graders to tell their parentsand guests that they had "evil ways"? Was there no one exceptCarl who thought it was tasteless for adults to ventriloquize theirfinger-pointing puritanism by using second-grade children astheir dummies?

I don't think Carl is off-base in comparing this rudeness tothe behavior encouraged in totalitarian states: "I can just see thekids reporting to their teachers that Mommy's eating cookies

instead of fruit and Daddy isn't recycling his wine bottles. Then,off to the gulag!"

Carl doesn't mean to be funny about this, and I don't either.Ayn Rand warned us to fear the influence of the second-raters.Now we must fear the influence of the second-graders, who arebeing trained to be even more boorish than their parents - andmuch more open about it.

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November 2009

proudly asserting that it enhanced America's core values offreedom, security, and fairness. AT&T produced brilliant adsduring this period - the "Reach Out and Touch Someone"ad series extolling America's egalitarian values and morerecently, the prize-winning, "Girls Just Wanna Have Fun,"illustrating a mobile phone resolving the problems of a work­ing mother. The mobile phone, much like Samuel Colt'srevolver, had become a "great equalizer." And, as Marchandmentions, other businesses followed AT&T's example.

Today, AT&T still provides a healthy alternative to the apol­ogetic stance of most businesses, but even it has succumbed topopular whims championed by its critics. Capitalism has yetto gain the moral legitimacy it merits, and that failure, if notsoon addressed, will prove costly. - Fred Smith

Shut up, they explained - Earlier this year, theU.S. House of Representatives discussed and subsequentlypassed the cap-and-trade bill, a massive new tax and regu­latory regime intended to slow global warming by dramati­cally cutting U.S. emission of greenhouse gases (GHG). (Ofcourse, India and China, which produce more GHGs than wedo, have refused to join us in this act of economic hara-kiri.)But it has now been revealed that during the same period abrave researcher at the EPA, Dr. Alan Carlin, put out a reportexpressing reservations about the science behind the globalwarming hypothesis, and the EPA went to great lengths tosuppress both the report and the author.

Yes, that's right. President Obama, during his campaign,loudly trumpeted promises of transparency in governance,and an end to what he claimed was the politicization of sci­ence. But his administration tried to bury the nearly 100-pagereport written by Carlin and an associate in March. Carlin, bythe way, has been with the EPA for 35 years, and is a senioranalyst with the Agency's National Center for EnvironmentalEconomics.

When Carlin's boss, Al McGartland, was presented withthe report, he emailed Carlin a command forbidding him fromentering into direct communication about it with anyone out­side the agency. In another email, McGartland said that sincethe EPA had already determined to issue its "finding" thatcarbon dioxide endangers the environment (a finding that didproceed to issue, in March), Carlin was to cease all inquiryinto climate science.

But the report and the emails have just been outed by theCompetitive Enterprise Institute (CEI). The report makes fas­cinating reading, and is available in full from the CEI website,despite the EPA's attempt to quash it.

Since the release of the report, Carlin has been subjectedto a concerted smear campaign. He is now labeled a "denier,"although he isn't; he merely wants the science of global warm­ing to be reexamined before we make any major economicchanges. His credentials have also been questioned. After all,his detractors say, he is "only" an economist - despite thefact that his undergrad degree, from Cal Tech, is in Physics.

The points Carlin makes should have been discussed inthe debate over the cap-and-trade bill. They are trenchant andcompelling. He notes that the EPA's most recent position onglobal warming (set forth in March in its Technical SupportDocument, the "TSD") was the basis for the cap-and-tradelegislation approved by the House and awaiting action in the

12 Liberty

Senate. But the EPA's position is based upon science that ismore than three years old, in a field (climate science) that israpidly changing. He points in particular to six major areas inwhich the EPA's science is out of date.

First, as he notes, during the past 11 years, average globaltemperatures have dropped, while both the atmospheric levelof carbon dioxide and the amount of worldwide carbon emis­sions have steadily gone up. Second, the consensus among cli­mate scientists that anthropogenic global warming is causingthe number and intensity of hurricanes to increase has brokendown. Third, the consensus among climatologists that globalwarming it causing Greenland to lose its ice cover has nowcollapsed. Fourth, the TSD was formulated before the currentworldwide recession hit, with its consequent dramatic slow­ing of the increase of carbon emissions. Fifth, a paper thatcame out this year strongly questions the claim that there isa strongly positive feedback of water vapor from increasingcarbon dioxide levels - a claim that lies at the heart of thevast majority of computer models that predict global warm­ing. In fact, the data indicate a decrease of water vapor froman increase of carbon dioxide.

Finally, another paper, also out this year, argues that thesolar data upon which the TSD rests are faulty. Indeed, thepaper concludes that solar variability can explain up to 68%of the increases in global temperatures.

Dr. Carlin's report deserves to be discussed, and I hopeit will be discussed in the Senate debate. As an economist,he undoubtedly understands the massive economic costs ofcap-and-trade. And as a free American, he certainly doesn'tdeserve to be silenced. - Gary Jason

Pat and Adolf - Patrick Buchanan stirred up a fusswith his column, "Did Hitler Want War?", which was pub­lished on Sept. 1, the 70th anniversary of the day Germanpanzer divisions rolled into Poland. Buchanan argues that theanswer is "no" - an opinion that outraged a number of com­mentators. I wasn't outraged, but I wasn't impressed, either.

Buchanan argues that Hitler invaded Poland because ofhis appetite for Danzig, a city-state between Germany andPoland, and a protectorate of Poland. Buchanan does notmention Germany's remilitarization of the Rhineland beforethat, or the annexation of Austria, or the deal at Munich forthe Sudetenland, or Hitler's breaking of that deal in his con­quest of the rest of the Czech lands. Danzig was not a demandthat stood alone. It came at the end of a string of demands,and a large broken promise.

The Allies had carved out Danzig (now Gdansk) fromGerman territory at the end of World War 1. Buchanan callsit "a town the size of Ocean City, Md.," which is grossly inac­curate. Danzig Free State contained 759 square miles (half thesize of Rhode Island) and 366,000 people, double the popula­tion of today's Providence, R.I.

True, Danzig was 950/0 German-speaking. It had beencut from Germany without its consent and, Buchanan says,"Even British leaders thought Danzig should be returned."Buchanan's column implies (but does not say) that had Danzigbeen returned, Hitler would not have ordered the invasion ofPoland. The problem with this argument is that when Hitlerdid go to war, he didn't just order the conquest of Danzig, andstop there; he ordered the conquest of two-thirds ofPoland. His

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actions told the story. Danzig was a pretext. He wanted Polandas Lebensraum - living space - for the German people.

He was not devoted to peace. In his first years in power, hebuilt up the German military as much as he could, and duringthe 12 years of his regime, he ordered the invasion of· everycountry that touched Germany except Switzerland. This is nota leader who Udidn't want war." No doubt he didn't want allthe countries fighting him that eventually did, but he was rad­ically aggressive, belligerent, and willing to risk war.

Some of this is hindsight, of course; but Buchanan is alsoarguing from hindsight. He avoids discussion of the realproblem by running after a straw man - the argument thatthe West had to stop Hitler because he aimed to take over theworld. That was said by a lot of people, including PresidentRoosevelt. It was nonsense, and it's easy for Buchanan toknock it down. Germany was not strong enough to thinkseriously about taking over the world. It was a land poweronly, and its land power crested at Leningrad, Moscow, andStalingrad. It had no navy except for U-boats and a hand­ful of capital ships, which the British sank or chased back toGerman-occupied ports fairly early in the war. The Germanarmy could not get across the Atlantic. It couldn't even getacross the English Channel.

In the second half of his column, Buchanan knocks downthe Utake over the world" thesis. But his demolition jobdoesn't get him where he wants to go. He set out to prove thatHitler didn't want any kind of war, and if that's so, the obviousquestion is, "Then why did he start one in 1939?" And twoyears later, in invading the Soviet Union, why did he startanother one? - Bruce Ramsey

The long wake of the law - An odd and per­plexing matter has come up in the Netherlands. A 13-year-oldDutch girl, Laura Dekker, wants to sail around the world ­alone. And her parents have given her permission. The state,however, has intervened to delay, and perhaps prevent, Ms.Dekker's departure.

I should mention that the young lady is already an accom­plished sailor. She was born while her parents were sailingaround the world, and spent the first four years of her life atsea. She has sailed solo as far as England.

According to reports, Laura's parents tried to dissuadeher, but eventually gave in to her pleadings. Apparently themother, a German woman, was more opposed than the dad,but as the parents are in the middle of divorce proceedings,she feared losing contact with her daughter. Of course, shemay lose the child forever if the latter actually attempts thecircumnavigation.

Personally, I think it's too a big a job for a 13-year-old, nomatter how good a sailor she may be. We know that braindevelopment, including the area that controls judgment, isnot complete before about age 25. There are good reasons whywe prevent minors from doing certain things. On the otherhand, a 17-year-old English boy just completed a solo voyagearound the world. At 14, he crossed the Atlantic alone.

Is the state justified in intervening? The parents, who arenot deranged, decided Laura could attempt the voyage. Theirdecision may be wrong, but should government then step in?

A Dutch court decided it should. Once Laura's proposedvoyage became known publicly in the Netherlands, the Dutch

November 2009

equivalent of Child Protective Services obtained a court orderblocking her from setting off. The girl has been put under thesupervision of child care workers for 60 days while a court­appointed psychologist determines her ability to withstandthe stresses the voyage would entail. The judges even consid­ered removing Laura from her father's home, but decided shecould remain there under state guardianship.

Now it seems obvious to me that the state has a right, andindeed an obligation, to intervene when children are physi­cally or sexually abused in the home. I even accept (thoughwith some uneasiness) the state's right to compel very sickchildren (Le., minors) to undergo medical treatment againsttheir parents' wishes. But this case disturbs me. Shouldn'tLaura's parents, who are expert sailors, decide whether toallow their child to sail around the world? It's not as if Momand Dad planned to place a toddler in a boat and then push itout to sea. So what justification is there for the involvement ofsocial workers, psychologists, and judges?

We may believe that in this case Mom and Dad are usingvery poor judgment, but should the state get involved, andshould it have the right to do so? I would like to know whatother libertarians think about this. - Jon Harrison

All the president's ads - I've just seen tworecently released public service ads, both starring our presi­dent. Before seeing these I was concerned that he wasn't get­ting enough air time.

In the first, he takes a moment from his busy schedule toshare with us his insight that fathers should spend time withtheir kids. For those eager to follow the president's recommen­dation but simply unable to understand what to do, he is kindenough to provide specific examples. It seems that fathers can"play ball, visit a park, or go to the zoo." He assures fatherswho are concerned about the time commitment that "it doesn'ttake that much time," which must be true because he has twogirls himself and despite running everyone else's lives seemsto find time to spend with them.

The second ad shows him extolling the virtues of volun­tarism, going so far as to mention the great volunteer effortsof the astronauts who got us to the moon. I had assumed thatthe astronauts were actually paid military personnel, doingtheir jobs. My error.

I understand that upcoming ads will show the presidentproviding pointers for children learning to tie their shoes andthe proper technique for stacking plates in the dishwasher tooptimize their shine. At this journal's deadline, rumors that a24/7 cable All Obama channel is in the works have not beenconfirmed, but requests to the FCC for call letters WOBMAhave been denied as duplicative. - Ross Levatter

The dissent of man - "Dissent is patriotic." Idetested that phrase from the moment I first heard it - muchas I detested the equally inane phrases "the audacity of hope"and"change we can believe in." Though, mercifully, that first,once ubiquitous, phrase is now rarely heard, I find it comingto mind.

First, I am not so sure that dissent and patriotism arenaturally equivalent. The two do not equate in the way thisphrase was used by Democrats who opposed the Iraq orthe Afghanistan war; they simply sought to avoid questionsabout any alternatives they might offer. The way this phrase

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November 2009

is written, and was uttered by Democrats, implies that dissentin and of itself is patriotic. In that regard, the phrase makesno sense. Among the definitions of dissent are"disagreement,withholding assent, to disagree with the methods, goals, etc.,of a political party or government." Dissent is simply an act.If, perhaps, it was written and uttered as "I dissent from thiswar because it is against my fundamental ideals, philosophy,and beliefs," then it would have made sense. Of those whowere against the war(s), it seems that only libertarians madesuch cogent statements.

Second, among the definitions of dissent is "to dis­agree with or reject the doctrines or authority of an estab­lished church" and "separation from an established church."Regardless of one's opinion of former President Bush, no onecould plausibly maintain that his supporters treated him as anobject of religious devotion. Unfortunately, the same cannotbe said about the current president's supporters. The fervorof many of Obama backers - especially those in the media ­borders on religious fanaticism. I feel comfortable stating thatmany of us are indeed dissenters from any religious aspectsof this presidency.

Third, almost everyone is aware of the tea parties andthe more recent town hall meetings. The town hall meetingsappear to have been intended as staged forums for politiciansto tell American citizens what shall be done about healthcare.Any of the numerous video clips available online reveal howoffended the politicians hosting these gatherings were by anyexpression contrary to what they wanted to tell the audience.Though I have yet to be able to attend a town hall meeting, Ilove what's happening, The American citizenry seems to beawakening from its stupor, no longer complacently accept­ing the repeated infringements of its freedoms in the form oflaws, regulations and ordinances (which like the healthcarereform proposal, are cast as for our own good).

Change is happening. Whether Democrats wish to "believein" this change is immaterial. Citizens are engaging the gov­ernment that is supposed to be by the people, for the peo­ple. And, this change is forcing the Democrats to expose theirown hypocrisy. Now that they hold the reins of government,Democrats no longer see dissent as patriotic - they are firmlyopposed to it.

Finally, I still don't know if the phrase "dissent is patri­otic" is accurate. But, frankly I don't care. What I do knowis that active, intense dissent from "the methods, goals, etc.,of a political party or government" which is fundamentallyat odds with ideals of liberty, is absolutely necessary - nowmore than ever. - Marlaine White

Past, prologue - President Obama's early-Septem­ber address to the nation's public school children stirred upa fair bit of controversy. Right-wing commentators expressedjustifiable concern about what the content of the speech mightbe, and shock that the Department of Education had providedassociated lesson materials to schools that included questionslike "Why is it important that we listen to the President?" and/lAre we able to do what President Obama is asking of us?"Throw in the presidential hagiographies that many studentswere assigned to read prior to the address, and it's under­standable that parents might worry their children were beingprepped for political indoctrination.

14 Liberty

Commentators on the left rushed to assure the nation thatthe president would address the importance of education,not hot-button political topics, and pointed out that, after all,George H.W. Bush had given a similar address to the nation'sschools in 1991 - no matter that Democrats complained thenjust as Republicans complain now.

In fact, the two episodes, taken together, are a fine exampleof team mentality in action. In both cases, partisan teammatesof the current commander in chief defended the president'saddress, while opposing teammates derided it as an abuse ofpower. Both teams now ignore the arguments they made 18years ago, because their positions are reversed.

Being a member of neither team, I find it amusing, in onesense, to see through the rhetoric and recognize it as the dis­sembling and obfuscation it is. In another sense, it's dismay­ing to realize that because everybody is busy cheering for hisown team and demonizing the other one, few people stop toconsider the danger in setting up any politician, under anycircumstances, as an inspirational figure for the nation'schildren.

The nature of politics is so conducive to corruption andthe abuse of power that every politician - in any position,from any party - should be regarded, at best, with unflag­ging skepticism. We may be stuck with such people litteringthe public sphere, but we should save any inclination towardhero worship for people who've earned it outside the realmof the parasitic class. More than anything, we should teachthe nation's children to doubt the motives and promises ofpeople who wield power, and in the rare case in which a poli­tician proves their suspicions wrong, they can be pleasantlysurprised. - Eric D. Dixon

Waterworld - I live on an island that is part of anatoll. An atoll is the coral ring around the place where a largerisland used to be. Over the eons, the island eroded away butleft behind the much sturdier reef, which is very similar to asolid band of concrete. Coral grows only under water, so atthe time when this atoll was formed, the land I'm sitting onwas at least a few inches under water at low tide. Right now,this land is a few feet above water at high tide.

Why is it above water now? Every coral isle dotted aroundthe 154-mile circumference of the ancient island is the sameheight above water, and this is true for just about every atoll inMicronesia. It's not likely that tectonic forces lifted the wholething out of the water while keeping everything else level. Theonly reasonable conclusion is that sea levels were once muchhigher than they are now. From where I'm sitting, I'd say theywere roughly 10 feet higher. And they had to be that high forquite a long period of time for the very slow-growing coral tobuild to this point.

While I'd hate for global warming to submerge my home,it does seem that would be the more common state of nature.

- Jeff Wrobel

Private practice - It was the classic slip-n-crunch. Istepped on wet tile in my bare feet and the next thing I knew,I was dancing an impromptu salsa that ended with a thud onmy wrist. Ouch! I'm usually a wait and see kind of personwhen it comes to medical care, but this felt like a break.

I don't have a regular physician here (1 live part-time intwo different states), so 1 thought about going to the local

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emergency room to get an x-ray, but ERs are designed formajor trauma and I was just nursing a sore wrist. I didn't needShostakovich when the neighborhood piano teacher woulddo. So I asked the ER receptionist if there was a walk-in clinicin the area. She told me about a clinic in Yonkers and gave methe phone number and address. Good for me, I thought. 111save money and time.

At the walk-in clinic I asked how much the visit wouldcost me. (I have a high deductible that wouldn't kick in forsomething like this.) "That depends on your income," thereceptionist replied.

"Let's just assume I'll be paying the full amount," I toldher. "How much will it be?"

"I don't know," she insisted. "It all depends on yourincome." I looked around and realized that I was in a wel­fare clinic. All I wanted was a private, for-profit, ambulatoryurgent care center, the kind where you can go for minor ill­nesses and injuries without needing an appointment.

The answer to my next question was just as discouraging:"How long will it take to have it x-rayed?"

She looked at the clock. "First you have to see a doctor.And Radiology closes at 12:30." It was already noon. I gaveup on the x-ray, bought a soft cast from the drug store, andimmobilized the wrist myself.

A few days later I was lamenting the lack of non-welfarewalk-in clinics in our county. My friend told me about onenear her home. My wrist was still hurting, so I went to theurgent care center she recommended.

There I was greeted by a smiling receptionist who tookmy information and offered me a seat. Ten minutes later I wasushered into an examining room, where I hadn't even openeda magazine before the nurse practitioner walked in, examinedmy wrist, and sent me to the Radiology Center down the hall.Although it was a separate business, I didn't have to fill outadditional forms; all of that was handled by computer. Tenminutes later I was back at the clinic, and five minutes afterthat the N.P. was giving me instructions for treatment andsending me on my way. Total time? Less than one hour.

I'm a big fan of nurse practitioners and physicians' assis­tants. They are highly trained professionals who can do justabout everything a medical doctor will do during an ini­tial visit. They can diagnose illnesses, treat simple fractures,suture wounds, and prescribe antibiotics. They work closelywith large medical practices and can refer a patient quickly toa doctor or hospital in case of serious illness or injury, oftensecuring an appointment faster than the patient could doalone.

Nurse practitioners and physicians' assistants usuallyspend more time with the patient, and they charge less. OneN.P. I know charges a flat $25 per visit, and she schedules afull half hour for each patient so she can spend some timetalking about lifestyle and nutrition. She doesn't take insur­ance, but who needs to file with an insurance company whenthe total charge is barely more than a co-pay would be?

Medical care is one of two services I know of where weare expected to buy without asking the price. (The other isa funeral.) This factor is the bane of the third-payer system,and the primary reason that healthcare costs continue to sky­rocket. Increasing the variety and availability of health careby encouraging the expansion of alternative providers will do

November 2009

more to reduce costs than any government program.We haven't had a free market in health care for over 100

years. We have to get government out of the way and let atrue free market do what it does best: increase the quantity,quality, and availability of goods and services. A combinationof high-deductible insurance to pay for catastrophic illnessesand injuries coupled with health savings accounts to pay forday-to-day expenses is the best way to achieve the best healthcare for the most people at the lowest cost. - Jo Ann Skousen

Dash it all - A lot of people are upset these days.The federal takeover of healthcare, pending inflation, text­messaging while driving: you name it, we've got things tobe unhappy about. As for me, I'm unhappy, too - about thedemise of the emdash. It's dying faster than newspapers.

The emdash is the equivalent of an emphatic comma orparenthesis. According to the "Chicago Manual of Style," itis used to amplify or explain (see example above). It's muchmore powerful than the puny endash, which is used mainlyfor connecting numbers, as in "Duke beat UNC 64-63." (Bothare good crossword-puzzle words, however.)

But no one knows how to make an emdash in Word. It'stricky; you have to type two hyphens without spaces, andthe dash doesn't form until you've put a space after the sec­ond word. (There's also the technique of going to the symbolmenu item, but that takes time - and where is it, anyway?)

It's easier to type a space and that little bitty endash fol­lowed by another space. And now that publishers are simply"inputting" authors' Word manuscripts, even genuine pub­lished books (the latest, "After Tamberlane," by John Darwin)are riddled with those little floating flecks surrounded byspace. Pretty soon the emdash will be completely forgotten.Even crossword-puzzle writers won't have it to kick aroundanymore. - Jane S. Shaw

Warring paradigms - Anthropologists and soci­ologists tend to view the world in terms of communities; theyemphasize the way in which society shapes how individualsinteract with one another. Economists and psychologists tendto view the world in terms of how individuals affect society.But are these perspectives so different?

Ronald Coase, F.A. Hayek, and other economists displaya rich understanding of the cultural context in which indi­viduals interact. Indeed, Coase sees the market as the set ofcultural and legal rules that allow individuals to conduct vol­untary exchange with one another in society.

These thoughts are triggered by "Missing Persons: ACritique of Personhood in the Social Sciences," by the lateMary Douglas and her colleague, Stephen Ney. In this vol­ume, Douglas critiques the dominance of homo economicusin the political world (she wrote this book before the recentresurgence of political collectivism). She portrays economicman as "selfish and unmannered, brutish as Caliban, naiveas Man Friday." But is this the view libertarians really holdof man?

To some extent, it is. Libertarians do talk of "method­ological individuals." America does not go to war with Iraq;rather, some people in power commit troops to that theater.And Randians eschew any concept of mankind that is not self­centered.

Coase and many libertarians believe the purpose of policy

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November 2009

is to steer the cultural and legal institutions that reduce trans­action costs in, and thus barriers to, voluntary exchange amongindividuals. This approach to economics is certainly "social,"yet, it is also profoundly libertarian, in a sense. Perhaps theterm "classical liberal" better captures this societal element oflibertarianism. Reducing transaction costs liberates the energyand genius of otherwise isolated individuals, allowing themto interact with others.

We at CEI. are seeking better to understand the ways inwhich individuals react differently in the political world of"rational ignorance" from the way. in which they react inthe private world of self-interest. Since the modern world isroughly half political and half private, it is critical for us tounderstand it and to craft our policies and their marketingaccordingly.

Now, does anyone know of any social psychologists orcultural anthropologists with some understanding and sym­pathy for individual freedom? If so, I'd appreciate an intro­duction . . . - Fred Smith

The color of stupidity - Seattle Mayor GregNickels, who led more than 500 U.S. mayors to sign a promiseto abide by the Kyoto Protocols, and who is president of theU.S. Conference of Mayors, has lost his bid for reelection. Inthe August 18 primary, after seven and a half years in office,he came in third behind two political novices.

In the March Liberty, I had a Reflection about MayorNickels. During a big snowstorm last December, his peoplehad refused to salt the streets. Salt was said to be bad for thesalmon in Puget Sound. This is a "green" city and an 85%Democratic city, but voters wouldn't excuse having nearlyunusable streets for a week. In their next chance to vote forhim, three-quarters voted for somebody else.

The snow was the most recent thing, but it wasn't theonly thing. There is a matter of a highway, old US 99, whichbypasses downtown along the waterfront. In the 1950s, thishighway was put into a double-decked concrete viaduct. In2001 an earthquake left the viaduct damaged but still usable,and in 2002 Mayor Nickels proposed to tear it down andreplace it with a tunnel.

The arts people and the urban-design people had alwayshated the viaduct. Most of them welcomed the tunnel, nomatter what it cost. So did Seattle's downtown establish­ment, because a tunnel would make the waterfront nicer,and unblock some views. The tunnel was, of course, the mostexpensive option. The state highway people wanted to build anew viaduct for a billion or so less. The progressives wantedto knock down the viaduct and replace it with bus service ­the "surface transit option." The conservatives (there are a fewof those in Seattle) wanted to prop up the old viaduct with abit of steel and keep using it for another 30 years.

Gov. Christine Gregoire, Democrat, offered Seattle moneyfor a new viaduct, but not enough for a tunnel. Nickels heldout for a tunnel. He asked the state's two Democratic senatorsto get money in Washington, DC, on the argument that Route99 carried international cargo, making the tunnel part of atransportation project of national importance. Actually theextra cost of a tunnel rather than a viaduct was not a transpor­tation project but a beautification project. It wasn't of nationalimportance; it wasn't even of suburban importance.

16 Liberty

Well, the senators couldn't get the money. Even the Bushpeople weren't that stupid.

To strengthen the mayor's hand against the governor, inMarch 2008 Seattle had a public vote. The ballot said viaduct,yes-no; tunnel, yes-no. Mayor Nickels was hoping for peopleto vote yes for a tunnel and no for a viaduct. They voted no onboth: 55% no on a viaduct and 70°1<> no on a tunnel. He said hewas happy with the vote because the viaduct had been clearlyrejected.

Enter the Discovery Institute, a conservative thinktankthat champions Intelligent Design, which refers to human ori­gins, not roads. Discovery also promotes transportation proj­ects - big ones. Here it argued that the mayor's tunnel wasthe wrong kind. His was a cut-and-cover project. That was toomessy. It would tear up the waterfront for seven years. Whatwas wanted was a bored tunnel, deep, like the one under theEnglish Channel. A bored tunnel wouldn't disrupt the city.Others picked up the argument (not crediting the DiscoveryInstitute, which is untouchable by Seattle liberals).

And so Nickels cut a deal with the governor to have a tun­nel bored from one end of downtown Seattle to the other. Thestate was to pay any cost overruns. The legislature codified thedeal, except that it changed the part about overruns: Seattlewould pay for those. Mayor Nickels laughed this off, sayingthe state's proviso was unenforceable. And there, on August18, it stood. No other vote of the people had been held otherthan the one in 2008, in which 70% had said, "No tunnel."

Mike McGinn, one of the two candidates who knockedNickels out on August 18, made "no tunnel" the big issue ofhis campaign. He is a Green, and because he favors the sur­face transit option, he won the votes of the left. By pointingout again and again the tax liability of the tunnel, he also, Ithink, got most of the votes of the right.

There was another thing on the Seattle ballot on August18: a 20-cent tax on disposable grocery bags, whether paperor plastic. The idea was to "incent" people to use cloth bags,which would not foul the environment either in their man­ufacture (paper) or disposal (plastic). The City Council hadpassed the tax, Mayor Nickels had signed it, and the two can­didates who beat him both supported it. But the plastic-bagmanufacturers had collected signatures for a referendumand had run a campaign to annul it. In mailers and TV adsthey argued that the law was punitive, that it exempted bigretailers like Wal-Mart, and that it hurt the poor. The grocerychains, except 7-Eleven, gave them little help. But they spent$1.3 million - a fact trumpeted by opponents - and theybeat it. The vote was 53% no. The bag tax was defeated, hav­ing never gone into effect. - Bruce Ramsey

Behind closed doors - In past issues of LibertyI've mentioned the various real estate scandals involving keymembers of Congress, such as Sen. Chris Dodd (D-CT) andRep. Charlie Rangel (D-NY). There's another such affair, onethat's being largely ignored by the major media, which seemto function primarily as propaganda organs for the DemocratParty.

The Countrywide Financial Corporation, which was sucha large player in the recent mortgage crisis, had a special VIPprogram, officially called "Department 850" by Countrywidebut nicknamed "Friends of Angelo" by company employees

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(after Angelo Mozilo, Countrywide's controversial CEO). Thisprogram existed to give sweetheart loans to powerful govern­ment officials, including many of those supposedly havingoversight responsibility for the mortgage industry.

Now, you would think that, given the massive mortgagemeltdown from which the country still struggles to recover,Congress and the mainstream media would be on fire to dis­cover precisely who got UDepartment 850" loans, under whatconditions, and why. After all, Countrywide generated a lotof the dicey paper that Freddie Mac and Fannie Mae bought,which cost the taxpayers dearly.

To his credit, Rep. Darrell Issa, ranking Republican mem­ber of the powerful House Oversight and GovernmentalReform Committee, has been fighting to have the committeesubpoena the damn records, so we can all discover which ofour virtuous solons got these loans. But he is being stymied bythe chairman of the committee, Rep. Edolphus Towns (D-NY),who has refused to issue the requisite subpoenas.

Why on earth would he do that? Because he was himself aFriend of Mozila.

Yes, it turns out that Rep. Towns received a VIP loan ­actually, two loans - from Countrywide. Towns denies thathe knew he was getting special loans, but his claim seemsdubious on the face of it. Not only were the interest rates con­siderably lower than the going rates at the time, but both ofthe mortgages had a mailing address that referenced URoom850" at Countrywide's headquarters.

Let us accept Rep. Towns' claim that he didn't know hewas getting special treatment. Fine. Then what does he haveto hide? Why should he block the acquisition of records, sothat the oversight committee can, you know, like, overseethem?

Towns' actions reek of corruption. But they don't muchinterest the news media. - Gary Jason

Guarded optimism - I've been in India for a weekand I have to say, I have never felt more optimistic about myhomeland.

The reason has absolutely nothing to do with the govern­ment (which is extraordinarily corrupt) or Prime MinisterManmohan Singh (who is perhaps the most spineless humanbeing I have known).

I attribute my optimism to technology. Telephony, inter­net, and other media are bringing enlightenment to some ofthe most backward parts of India.

Of course, India is still a pathetically poor, violent, corrupt,self-centered, lawless, abusive, and extremely superstitiouscountry. Unless you spend your time here only in five-starsurroundings, you will be literally and figuratively molestedalmost nonstop. However, technology is changing the culture,bringing in awareness, and rather rapidly. I cannot help beingamazed at the small civilities now developing, fruits of mod­ern commercial customs. The changes are happening, in theirsmall ways, in so many areas, and the interactions betweenthose areas, that I doubt it is possible to predict what Indiawill look like in 20 years.

It is Black Swan country. But it will be a very, very differ­ent country, and in my opinion mostly much better.

I have just been to the gym here in Bhopal. It has expandedto perhaps four times its former size. The machines are all new

November 2009

and modern. And still I could not find a machine to work on.This has all happened in the last six months.

But that's the little picture. In the big picture, what is hap­pening is a sea change in the attitude of middle-class Indians.They have grown increasingly polite and sophisticated. I hadthought that India's historical baggage would make it diffi­cult for it to change. I was wrong. Indians in their early 20s arehardly distinguishable from those in the West, and are per­haps more optimistic and focused. I have talked and talkedfor the last week with all possible people. I can see that theEnglish language and India's better interaction with the Westwill make it possible for it to change rather rapidly, once thosenow in their 20s come to positions of leadership.

I visited Morena, a small town in central India. Violencehas a long and deep history in this part of India (as it has inthe rest). The local culture is about Umight is right." That beliefruns so deep in this area that you would be stupid to negoti­ate with most people, based on what you would call ulogic"and "rationality." The belief system is not very different fromwhat you perhaps see in parts of Africa: uI want this so I willtake it." You have to experience this to understand it.

In Morena, kidnappings are common. Murders and rapesare used to settle scores. You stole from me, so I will rape yourdaughter, the logic goes. This area is well-known for humantrafficking. Just 25 years back, it was known for the open auc­tioning of women. And often such things are supported bythe local democratically elected bodies. No wonder that I see"democracy" as a fanatical western religion.

Today's newspaper says that the government did virgin­ity tests on girls that it helped get married. This is unconsti­tutional, but the people in the government are so appallinglystupid that they did not even realize that what they weredoing was unconstitutional.

Corruption in India seems to be worse than it ever was,but then, I have just been to the driver's licensing office.

The changes of the past two decades have been attrib­uted to Manmohan Singh, democracy, and liberalization. I donot believe in this attribution. I attribute the changes of thesedecades to media, telecommunication, and the general tech­nological revolution.

I normally don't like media; I have no interest in whatruns on it. But if you understand the time and space in whichMorena exists, even the stupid programs on TV have beenculturally revolutionary. They have brought a lot of aware­ness among the people. In Morena, people now resist, go tothe media, and fight back. Children, increasingly educated inEnglish, move out to bigger cities, to work in big companies,and then bring back new ideas, to give to their parents. Thismay be setting off a chain reaction.

In my gym in Bhopal, there is a girl who wears aCheGuevara T-shirt. Every cell in my body wants me to ask her ifshe ever cared to ask her parents what socialism really means.But then, if you understand the time and worldview that a lotof the country exists in, even a lazy interest in the likes of Cheis a sign of a significant improvement in the thought process.This is a move from a lifestyle of absolutely no ideas to thatof a few.

Four hundred million SIM cards have been sold in India.Although this is believed to mean that there are now 400million subscribers in India, the real figure is much lower.

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November 2009

Everyone I know has more than one SIM card. There are evencellphones with a multi-SIM-card option. When I lived inDelhi, a call to Bangalore would cost $2 a minute in today'sreal terms. It would have taken a huge bribe to get a phoneconnection; property prices were often valued on the basis ofthe connection. Now the same connection is virtually free, andthe call costs perhaps one-half of 1% of what it did before.

So low are the cellphoning costs that most people don'tseem to know what they are. This has made it possible for thepoorest people to keep themselves informed. Because of theselow prices, the growth rate in cellphones will continue for along time. I did not appreciate the revolutionary effect of thison India's isolated villages. But even Morena is showing signsof changing.

But the biggest change I have seen is that in the attitude ofpeople below 25 years of age. They might as well have comefrom a different culture. They do not have the utter corrup­tion of my parents' generation or the confused and conflictedminds of my generation. Of course I am only talking abouta small section of middle-class youth. But now these folksensure that other people will line up. Until two years back, Ihad never seen this happening. In Bhopal, these youths actu­ally stop to give way to the disabled or the old. A few yearsearlier it was normal to hear the old and disabled being calledsuch and asked to hurry up or move out of the way. And thisseems to be forcing the parents of these youths to mend theirways.

To me, an amazing change is starting to happen, whichwill in the final analysis have more consequence for growththan anything else. I can see a change that I could not havepredicted when I was here only eight months ago. I hadnot expected that given the aid of technology, culture couldchange so rapidly.

So, despite the fact that I see huge short-term social prob­lems, I am no longer pessimistic about India. I see hope,growth, and very good possibilities of making money. Sooptimistic have I grown that I have just taken an Indian cell­phone connection. I have also, with some difficulty, renewedmy Indian driving license - a process which shows there isstill a long way to go before corruption will cease to be a partof every transaction. - Jayant Bhandari

Modestly proposed - There are so many rumorsabout healthcare reform going around these days, it's hard toknow what's true. For instance, I just heard about a new pro­gram coming out from the Department of Health and HumanServices called Cash for Geezers. It tries to eliminate the hugecosts paid by the government for Medicare patients in theirlast month of life and deal as well with the growing shortageof organs needed for transplant.

If your grandparents are on Medicare and meet certainother qualifications (Alzheimer's; other forms of dementia;send more than two complaining letters per year to their con­gressman; don't contribute to the DNC), you can tum them into the nearest university-affiliated medical center for $4,500cash!

There, the Geezer brain is smashed so that no one else canturn it in for cash (a clever cost-savings technique that guardsagainst fraud and abuse). The transplantable organs are thenharvested and reused. The financial savings to the govern-

18 Liberty

ment, especially after the passage of universal coverage, istremendous. Those on the transplant list benefit too. As WhiteHouse Press Secretary Robert Gibbs said, "It's a real win­win. Young people get cash to help stimulate the economy;Medicare costs fall; transplant waiting lists go down. Old peo­ple no longer have to suffer for a month only to die."

This program makes as much sense as most governmentprograms, and more than many. So you can understand myconfusion about whether it has actually been proposed or isjust a brainstorming ... so to speak ... effort of some pol­icy wonk at the Center for American Progress (likely a wonkwith bills to pay, whose grandparents no longer send birth­day gifts). - Ross Levatter

Smashing our way to prosperity - PresidentObama says that the energy legislation he sponsored, a cap­and-trade scheme along with subsidies for new energy tech­nologies, will create 3 million new jobs. Thus he displays onceagain a knowledge of economics on par with the average teen­age ninja turtle, another pop icon of virtue if not of economicliteracy.

You can say a lot about cap-and-trade, depending on whereyou stand in the global warming debate. What is clear is thatit will act like a tax on energy, which will ripple through theeconomy. What is also inarguable is that the government hasa lousy track record for picking winning technologies (read:companies). Job creation? Since when does increasing coststhroughout the economy create new jobs, even if you throwsubsidies at a few favored companies to make up for it? Theanswer is, only in the wacky world of Obamanomics.

But why stop at cap-and-trade and subsidies? The pres­ident should hire an army of patriotic hooligans to breakevery window in America, then a second army of glaziers tofix them. Voila. Another 3 million jobs, maybe six. House Bill2556: Break It and Fix It.

Since Obama defers to Pelosi to flesh out his economic ini­tiatives, expect the following enhancements:

• No homeowner will be allowed to fix his ownwindows (gotta protect those new jobs).

• Only unionized glaziers need apply (gotta rewardthose Democratic Party stalwarts).

• Anyone earning less than $50,000 can claim a taxcredit for repair costs, whether or not he ownsa home, or a window, or, for that matter, paystaxes (gotta be fair).

• Income earners above $250,000 will pay the costof repairs (or the theoretical value of the repairs)for everyone.

There you have it, an economic policy for the Age ofObama: deficit spending, financial stimulus, bailouts, subsi­dies, higher energy costs for all, higher personal taxes on thewell-off, a stew of politics, ideology, and class warfare, devoidof economic literacy. - Bob Marcus

Nixon with charisma - As Obama's healthcaresocialization bill faced a surprising surge in opposition, hebegan to resemble Dick Nixon ever more eerily. We beheldyet another Obama persona: NixoBama.

Perhaps the most famous self-defining remark byNixoBama is what he said to a group of fans in Philadelphia

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during his campaign: "If they bring a knife to the fight, webring a gun." But what really brought out NixoBama was thesight of angry constituents showing up at various Democraticcongresspeople's "town hall" propaganda sessions, intendedto grease the wheels for the American National Health System(brought to you by your friendly neighborhood post office).Everywhere on the internet were videos of statist Dems sweat­ing as angry constituents peppered them with questions abouthow much Obamacare would cost, whether it would requirerationing, and so on.

NixoBama and his flunkies in Congress were furious. Theycalled these protesters such epithets as (quoting from a DNCofficial, Brad Woodhouse) "angry mobs," "mobs of extrem­ists," and "rabid right wing extremists." The Democratic pow­ers-that-be claimed that these people were organized by thevile insurance industry. Nancy Pelosi immediately reportedthat the anti-Obamacare protesters were carrying swastikas,and both she and Rep. Steny Hoyer branded the protesters"un-American." Rep. Brian Baird (D-Vancouver) said that theprotesters were using Brown Shirt tactics. NixoBama even setup an email address, [email protected], so that bien pensantcitizens can narc off those filthy traitors who question social­ized health care, or spread lies about it. You have to admit thisis a clever twist: an automated enemies list.

I couldn't resist sending an email myself, reporting a par­ticularly egregious liar about health care: Barack Obama him­self. No doubt I can expect a tax audit in a month or so.

That Obama and his backers are doing this is doubly hyp­ocritical. First, Obama started his career as a "communityorganizer." Obviously, this community organizer supportsorganizing only leftist communities.

Second, Obama, during his campaign, urged his follow­ers to confront people and politicians of opposing views. Forexample, in a campaign speech in Elko, NV, he said, "I needyou to go out and talk to your neighbors. I want you to talkto them whether they are independent or whether they areRepublicans. I want you to argue with them and get in theirface." But nobody is allowed to do the same with him or hispunk brigades.

This NixoBama is certainly an amazing piece of work.- Gary Jason

Che-town - A friend recently gave me a copy of anarticle from the Russian publication Pravda. It was a com­mentary about Americans willingly rolling over for socialism.Though recent popular mobilization inspired by dissent overObama's healthcare proposal gives me hope that we can pre­vent the conversion of our free society to a socialist one, itremains an uphill battle.

Over time, American citizens have gradually traded lib­erty for eccentricity. The epitome of this unequal exchangeis seen on college and university campuses across America.Anyone who has occasion to frequent them can attest to thefollowing. Our undergraduates have a penchant for express­ing their "individualism" (as I have often heard students callit) and "freedom of expression" in their attire. In expressingsaid individualism and freedom, virtually all of them wear thesame clothing. Some are goth. Some are punk. My favorite ­and, by far the most common expression of "individualism"- is the ubiquitous "Che" shirt. "Che" shirts are so prevalent

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on American campuses, I've often wondered if these shirts arehanded out at student orientation.

I am not a prude or a generational snob. And I am notpicking on college and university students. They simply serveas a useful example of a larger problem of self-deception inour (at least for now) free society.

Our society seems to have lost the· very important dis­tinction between individualism and idiosyncrasy. Citizensare mistakenly equating a definitional conflation for an ideo­logical, philosophical, political outlook. Talk about false con­sciousness! The difference between mere idiosyncrasy andindividualism as a philosophy or ideology is huge. Economic,philosophical, social, and political theories and ideologies ofindividualism maintain that individual initiative, action, andinterests should be independent of governmental or socialcontrol; that the source of rights and duties originates in indi­viduals, and not in the social whole; and, that the individ­ual and not society is the paramount consideration or end.Idiosyncrasy is an individual's peculiar physical or mentalconstitution; a characteristic, habit, or mannerism peculiarto an individual - an eccentricity or quirk, such as the blue­streaks I wore in my hair as an undergraduate, or my onelegal colleague's habit of always wearing polka-dot ties.

The Rule of Law (as I have discussed in previous reflec­tions) has played a significant role in this unequal bargain.Citizens have continually forfeited control of their own livesby allowing greater government control over their lives in theform of ever increasing laws and regulations. As a society, weseem to have allowed a greater (and welcome) social tolerancefor eccentricity and formerly"abnormal" behaviors to substi­tute for actual freedom.

Students manifesting their freedom of expression or "indi­vidualism" by sporting "Che" shirt uniforms rarely, if ever,seem to truly contemplate ideologies of individualism, likelibertarianism. I have also found that many of these students,contentedly clad in their uniforms and satisfied with idiosyn­crasy mislabeled and misunderstood as individualism, veryseldom consider what they cannot do - from campus speechcodes, to smoking bans, to restrictions on academic freedom- and the larger implications of that. They have given up somany liberties, and all they got was a lousy T-shirt.

- Marlaine White

How minimal? - I regretfully recognized, long ago,that my philosophic views weren't, well, sexy.

I recall, for example, taking a course in Existentialism as anundergrade I wish I could have bought that rap - you know,life is meaningless, so just engage the world, choose your val­ues and your life project, and bear bravely on. Select a courseof action, and don't worry, no course of action can be provenor justified logically; you just need to be authentic!

Brother, that was real leather-jacket philosophy, philoso­phy for tough guys. If some chick asked you (as they some­times did back then) if you would respect her in the morning,you just shouted, "Existence precedes essence, babe! Dealwith it!", and it was done. You were in like Flynn, or at leastlike Sartre.

It never clicked for me. I could never figure out why com­mitting yourself to an action made it right. Couldn't I authen­tically choose to be a drug addict or a Nazi? It all escaped me,

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even though I love Paris immensely.Matters are the same for my political philosophy. I really

wish 1could be an anarchist. To say you want a minimal gov­ernment sounds so wimpy. And to say you are a "minarchist"sounds just weird. Why not be bold and say to hell with allgovernment? It seems so much cleaner and bolder, tougher,more masculine. It is so conceptually clear and consistent.

Of course, a philosophy or an ideology can be conceptu­ally clear and consistent, not to mention "masculine," and stillbe wrong, vile, or even outright nuts. Need I mention Nazismor communism?

But I can understand the appeal of the no-governmentmantra. When you say you favor a minimal government, theobvious challenge you are going to hear is, "Well, once youstart thinking that a little government is necessary, on whatbasis, and at what point, do you draw the line? How can youargue with a modern statist liberal who just wants more ofwhat you yourself think is necessary?" It would appear thata minarchist inevitably falls prey to a Sorites paradox: if yousay that X amount of government is good, why not X plussome small amount more? And then why not a small amountmore, and so on, until you have socialism or worse?

One important tool for making the case for minimal gov­ernment is empirical data on the relationship between gov­ernment size and economic growth. There are quite a feweconomic studies showing that both too little and too muchgovernment stifle the growth of prosperity, and seeking toquantify that tradeoff.

A really excellent recent contribution to the literature hasjust been released by the Institute for Market Economics (theIME), one of the preeminent neoliberal economic thinktanks inEastern Europe (it is based in Bulgaria). The article, "What isthe Optimum Size of Government?", is by economists DimitarChobanov and Adriana Mladenova and is available for down­load from the IME website.

The article notes that, at present, the average size of gov­ernments, measured as the total of government spending atall levels as a percentage of GDP, is about 41°k for the OECD(Organisation for Economic Cooperation and Development)countries. The United States, alas, is right up there at over 370/0- much larger than many Americans realize, supposing us tobe a country that doesn't believe in Big Government.

The authors then do an extensive literature survey. (Thesurvey alone is 17 pages; it is appended to the paper so thatthe reader can rapidly check out the prior studies.) They notethat most prior studies had shown a statistically significantand markedly unfavorable relation between the size of gov­ernment and economic growth.

Of course, they note, the "quality" of government entersin as well, but even when you are dealing with a relativelygood government (minimally corrupt, for example), big gov­ernment hurts the economy. Get it much beyond its core func­tion - protection of people's property and liberty, includingnational defense, provision of a. stable legal framework, andpromotion (not necessarily provision) of very basic publicgoods - and government lowers prosperity.

As to the sweet spot, Le., the optimum size of government,the prior studies ranged rather widely, from as low as 170/0to as high as 40°,10. Most of the estimates, however, fall in therange of 20% to 30% for the optimal size of government. That

20 Liberty

means that the OECD governments, including our own, arealmost all too large.

But the authors were able to refine the estimate consider­ably. They found that at the 95°,10 confidence level, the opti­mal level of government spending is 25%, using the standardmode1. And they suggest that it is probably considerablylower, given limitations on the data, such as the fact that thedata are skewed because rent seeking is pervasive even incountries with smaller governments ("rent-seeking bias").The paper makes interesting reading. It helps minarchistsspecify the size of government they prefer. Unfortunately, itstill won't make minarchism particularly sexy. - Gary Jason

Managed constituents - In the Town Hall meet­ings about medical care, the Ron Paul movement has been inthe thick of it. At the meeting I attended, held on Aug. 12 inEverett, WA, by Rep. Rick Larsen, Democrat, several peopleflew the yellow Gadsden flag with the snake, and one manwrapped himself in it like a cape, holding his hand up to becalled upon. Well, they didn't call on him.

The meeting was held outdoors in a small baseball stadium,with the congressman standing near home plate. Both sides- for and against Obamacare - showed up. Nearly 3,000people attended, sitting on bleachers, many of them holdingsigns. Opponents had handmade signs, such as these:

National Healthcare=National SuicideNational Care is Rationed CareNo Govt run 1/take a number" healthcarePreserve Freedom: Join a MOBNo to SocialismMy Life, My Death, My BusinessHealth Care Is Not a Right

The other side had professionally printed signs suppliedby the unions and by Planned Parenthood. But many on theleft were more radical, and had their handmade signs, too:

Private Insurance Companies ARE Death PanelsPut Single Payer on the Table

At one point Larsen measured the two sides by elicitingcheers, and declared the crowd evenly divided. It was not;there were more opponents. That was also apparent in the peo­ple called on to speak. The congressman's staff tried to makeit random, and most of the people called on were critics.

The Paul sentiment was clear when one man stood up andsaid that Larsen had an enviable job, because he got "to workwith my personal hero, Ron Pau1." Some in the crowd cheeredat that, some whooped, some hooted, and some laughed. Noother Republican politician was mentioned by any of thequestioners.

The Paul supporter said he had two questions. The first waswhether Larsen would support Paul's audit-the-Fed bill. Thesecond was whether there was anything in the Constitutionthat authorized the federal government to force Americans tobuy health insurance.

The second was the better question, at least for this forum.Larsen answered the first (no) and called for the next ques­tion. Shouts broke out.

"Answer the other question!""What about the Constitution?"He ignored them, answering the questioners selected by

his staff and not the ones shouting at him. But a few question-

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ers later, his staffer picked a woman who said her husbandwas a libertarian, and cared about that unanswered question."My question is," she said, "where in the Constitution do yousee a mandate for health care?"

Larsen replied, "There is no mandate for health care inthe Constitution. There is no mandate for the Air Force in theConstitution." In other words, don't worry about it. He saidthat constitutional questions are up to the Supreme Court(and might have added that the Court would no doubt followthe precedent of Helvering v. Davis, 1937, in which it approvedSocial Security on a vote of 7-2).

Opponents asked other questions. Said one man, "Is thereany example of government running things better than theprivate sector - I mean, anything?"

"Medicare," Larsen said. There were some hoots at this,but not too many.

A woman asked the congressman if he believed peoplehad a right to health care. She thought they did not have sucha right.

"I don't know the answer to that," he said.Rep. Jim McDermott, the leftwing Seattle Democrat, would

probably have said yes. A longtime supporter of single-payer,McDermott had signed on to a "Medicare for all" single-payerbill. Larsen told the crowd, "I don't support a single-payersystem." When a leftist from Radical Women, Seattle, spokein favor of one, Larsen said, "Ill pass your comments on toJim McDermott," a polite reminder that she was not in hisdistrict.

A man said that Larsen should read "The Whole FoodsAlternative to ObamaCare," an opinion piece by CEO JohnMackey that had appeared in the previous day's Wall StreetJournal. The man noted that the piece had begun with a quo­tation from Margaret Thatcher: "The problem with socialismis that eventually you run out of other people's money."

"I agree," Rep. Larsen said. "That is a problem withsocialism."

When David Arnold Bishop, an independent contractorfrom Snohomish, Washington, said, "I can't live the way I liveunless I'm free," Larsen said he agreed with that, too.

Larsen urged everyone to be polite and was polite himself.Knowing there would be acrimony, he had begun the meetingby having a high-school girl sing the national anthem - "onething we can all agree on," he said. Larsen is a skilled politi­cian. He is also a fairly sure vote for Obamacare, when and ifit reaches the floor of the House. - Bruce Ramsey

Overinflated fears - You've all heard them atcocktail parties, the inflationary cognoscenti.

"So, Ted you made 8% on your investments this year. Well,let me remind you, my friend, that since inflation ran at (let ussay) 3%, you only made 5%"

Dumb! It all depends. Mainly on two things.First, the accuracy of the inflationary figures. Economics in

general is hostage to numerical accuracy. (They just recentlyfigured out that the CPI is as flighty as your pet cockatoo.Energy included? Groceries, taxes, cab fares in Yazoo City?)Besides that, there's got to be a huge political bias in a numberthat affects 10 million retirement checks.

Second, the fact that in reality all of us have our own indi­vidualized index, depending on what we buy and sell. What

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is good for me is bad for you, or vice versa. Our market bas­kets of goods and services are all different. Sure there's over­lap, but let gas prices skyrocket - so what? I'll still be sittingon my patio reading and watching the rust grow on my '02Mercury sitting in the driveway. And college tuition - thatinflationary dragon can continue to breathe fire; I ain't got nokids to eddicate. The housing market flips and the averageannual price scoots up 100/0. Who cares? There are no houseson my get list.

And there is no universal number that applies to all ofus. How could it be otherwise? Memories of such anomaliesas the Weimar Republic disaster mesmerize economists, andhighly distort our investment judgments. Sometimes 8% is80/0. I say we've vastly overstated the danger. And even whenthe roar of the government printing presses breaks the soundbarrier, it's magnifying the price of all my possessions, is itnot? - Ted Roberts

First thing we do . . . - On August 25, on thelegal blog Volokh.com, a 4th-Amendment expert and con­servative law professor, Orin Kerr, published a post entitled"Explaining the Unpopularity of Lawyers."

It led, in less than 24 hours, to over 180 comments, as themany lawyers who haunt Volokh.com responded - someseriously, others capriciously.

I read them all.But I'm still not clear. Why does the unpopularity of law­

yers require explanation? - Ross Levatter

It's not easy being green - Not since JimmyCarter has a president managed to bungle things so badly insuch a short time. Indeed, he bids fair to eclipse the wretchedCarter's failures, which is probably why Carter admires him.

Not content with the healthcare debacle, BungleBama isleaving his mark in the energy arena. His truly sophomoricvision of replacing fossil fuels not with nuclear power (whichhe shuns, despite his campaign promises), but with wind,solar, and biofuels, is blowing up in his face.

Consider the Van Jones debacle. Anthony "Van" Jones wasObama's choice to be the "Green Jobs Czar." He escaped scru­tiny, because as a presidential czar he doesn't have to be vet­ted by Congress, and because America's news media (a.k.a.the Fourth Estate) are of course giving Obama a completepass on everything he does.

But the counter-media took notice of Obama's strangeappointment. It turned out that Jones was a race-baiting leftistnut-bar of the first rank. Where to begin? He was videotapedcalling Republicans "assholes" for being less enviro-screwythan he is. He also signed a petition for the 9/11 "Truthers,"who allege that George Bush was complicit in the attackupon the World Trade Center. All in all, a remarkable choicefor a president who ran on a platform of healing partisandivisions.

Jones was also on record as describing himself as a com­munist - in the 1990s! I mean, talk about crazy timing; youchoose to become a commie after communism collapses. God,what a buffoon.

He has also publicly pushed his view that "white pollut­ers" have been "steering poison" towards - guess whom?- black folk. This ties in with his remarkable sociological anal­ysis of the Columbine High School killings. To quote Jones,

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November 2009

"You've never seen a Columbine done by a black child. Never.They always say, 'We can't believe it happened here. We can'tbelieve it's these suburban white kids.' It's only them!"

As these and other incidents became known (it has nowbeen discovered that the American public knows how toGoogle someone, even if the soi-disant "journalists" in themainstream media don't) Jones resigned over the Labor Dayweekend.

But Obama's dream of a "green jobs" explosion (whichwas supposedly Jones' area of "expertise," as if one couldhave expertise in a domain that is void of content) looks rag­gedy, anyway. Consider several recent reports.

First, the release - to complete lack of interest by the main­stream media - of a major study by the Energy InformationAdministration. This work, dryly entitled "Energy Marketand Economic Impacts of H.R. 2454, the American CleanEnergy and Security Act of 2009," estimates that the cap­and-trade bill Obama and Pelosi rammed through the Houseof Representatives in June will by itself raise electric powerprices by a massive 200/0 within 20 years (over and above otherprojected increases).

Unlike prior reports critical of the bill, including one byCRA International that estimated it will cost 3.2 million jobsover the next 15 years (the subject of a previous Reflection ofmine), this is one report the Obama administration is find­ing hard to dismiss. The Energy Information Administrationis not some private thinktank; it is part of the U.S. Departmentof Energy.

Second, a story from The Wall Street Journal (Sept. 3), car­rying the sober headline "Spanish Solar-Power Collapse DimsSubsidy Model." It seems that the Spanish government hasthrown in the towel about its massive solar power program,which only recently Obama touted as an example of howgreen energy is economically beneficial.

As of last year, fully half of all new solar power instal­lations were located in Spain. But by the end of 2008, as theworld recession hit that country, the government decided itcould no longer afford its prodigious subsidies for such aneconomically ludicrous technology. Indeed, solar power com­panies around the world have had to slash jobs dramatically.

Finally, another recent WSJ article (Aug. 27), with theclever title "u.S. Biofuel Boom Running on Empty," exploresthe collapse of the so-called "biofuels revolution." "Biofuels"is a term that encompasses three types of fuel: biodiesel (pro­duced from vegetable oils and animal fats); "next generationfuels" (produced from plants such as switch grass that are notfoodstuffs); and ethanol (produced here from corn, and else­where - in the sane world - from sugar cane).

But two-thirds of the American biodiesel capacity is nowidle, because of the fall in oil prices. For example, GreenHunter Energy, the country's biggest biodiesel refiner, ceasedproduction several months ago and is contemplating selling arecently built plant.

Meanwhile, the companies that produce or plan to pro­duce next-gen biofuels are finding capital virtually impossibleto get. No doubt hindering their progress is the fact that CelloEnergy (which was expected to supply nearly three-fourthsof the government-set target for biofuels produced from cel­lulose) has been found guilty in federal court for defraudingthe investors.

22 Liberty

This is all on top of the widely acknowledged failure ofcorn-based ethanol to prove economically viable. Thanks toMidwest congresspeople, corn ethanol productions get tre­mendous subsidies, so it will likely stumble on, despite thefact that it has driven up food prices and proven to be ridicu­lously costly as a fuel.

The obvious way to deal with global warming and depen­dence on foreign oil is a rapid expansion of our nuclear powerindustry, together with a dramatic expansion of drilling foroil and gas in areas of the country foolishly put off-limits forhuman use by insane environmentalist regulation. But Obamarefuses to consider, much less do, either one. - Gary Jason

The Kennedy curse - It is said that people makegods in their own likeness. If that is true, what kind of peoplecreated Edward Kennedy (1932-2009)?

Kennedy's biological father was a goatish, pro-fas­cist crook whose politics were chiefly motivated by Irish­American nationalism and the desire to make one or more ofhis children president, for no other reason than that they werehis children. His mother was a twisted religious bigot. ("Dadwas the spark," Teddy recalled; "Mother was the light of ourlives.") Their children were all, to one degree or another, seri­ously damaged by their domineering parents. One of the chil­dren was lobotomized by a father disgusted by her mental"slowness." The others were deformed by the assumptionthat the only way to amount to anything was to achieve powerover others. A more vicious premise can hardly be imagined.It is fortunate that at least one of them - John F. Kennedy ­knew better, although his life was still grievously influencedby his father's political ambitions and his lessons in sexualaggression.

Teddy, youngest male of the family, was a person of aver­age intelligence and below-average capability, darkly over­shadowed by his older brothers. He got Cs at prep schoolbut was admitted to Harvard because his family was rich.At Harvard he was caught cheating and expelled. At theUniversity of Virginia Law School he was ticketed for recklessdriving four times and received the kind of punishment thatthe children of wealthy fixers generally receive.

In 1962, after a one-year career as assistant to the districtattorney of Suffolk County, Massachusetts, he was elected tothe Senate of the United States, for no other reason than thathis father was rich and his brother was president. He was 30years old, and he held the job for the rest of his life.

In 1969, he hosted a party on Chappaquiddick Island, MA,for some girls who had worked for his brother Robert's presi­dential campaign the previous year. Drunk, he took one ofthe girls out in his car and drove the car off a bridge. Whilehis companion struggled for life in the overturned vehicle,Kennedy extricated himself, ignored the lights in a nearbyhouse, fled across the island, swam an inlet, and returnedto his hotel. In the morning, other people discovered the carand the dead girl, and Kennedy finally reported his associa­tion with the event, after soliciting advice from the kind ofstatesmen who flock around money and power. He went ontelevision to deliver the first of many lachrymose speeches inwhich he urged people to support him because his brotherswere dead. And Massachusetts voters did support him. Theyreelected him eight times.

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During the following years, Kennedy repeatedly ran orthreatened to run for the presidency, convinced that a personwho had no work experience, no relevant education, no ana­lytical ability, no sense of morality, no qualifications of anysort except his association with a wealthy family, had a dutyto become the nation's chief executive. He failed ignomini­ously. Eventually he gave it up, having discovered that evenso incompetent and unpopular a figure as Jimmy Carter couldbeat him handily. Strangely, political pundits were incapableof reaching the same conclusion. For the rest of his life theyconsidered Kennedy the idol of the American people.

After magnanimously relinquishing the presidency, Teddydevoted himself to his four favorite pursuits: drinking, eating,womanizing, and pushing people around ("legislating"). Likeother people who know just enough to understand that thereis always someone dumber than they are, Kennedy played thedemagogue to an audience of poor people and Hollywoodliberals, making violent speeches in which he denounced allwho opposed his policies as racists and sexists. Then, in pri­vate, he cuddled up to Republican politicians who had noqualms about selling out their party. Together, they produced"compromise legislation" that (imagine!) gave Kennedy vir­tually everything he had originally wanted. (The press laudedthis as "bipartisanship.")

Kennedy's constant desire was to increase the power ofgovernment. Always he advocated state power, from the dayswhen he demanded universal conscription to the days whenhe demanded racial quotas for hiring ("quotas, shmotas" washis contemptuous dismissal of those who objected to this pat­ent inequity) to the days when he moved heaven and earthto impose government healthcare on an unwilling populace.He could not be troubled to read a book, consult experience,or consider the logical implications of the things he wanted.He just wanted them, because they gratified his ego, no mat­ter what the costs might be to others. He had money, so hewanted power. He was a wicked man, a thousand times morewicked than the man who holds up a 7-Eleven, desiring onlythe cash that's in the till.

In 2008, Kennedy developed brain cancer. Instead ofresigning the duties he could no longer fulfill, he kept onbeing a senator, using his remaining days to demand moregovernment, plan a heroic funeral, and try to get his homestate to change its electoral laws so that a clone could beinserted in his place. He died on August 25, before he coulddo any more harm. President Obama, in his funeral oration,called him "the greatest legislator of our time" and "the soulof the Democratic Party."

Soul. Can it be that this ranting, bloated, redfaced drunkwas the soul of anything?

It staggers the imagination. Yet this was the hero of theacademics and the intellectuals. This was the organism overwhich National Public Radio claimed "the nation is in mourn­ing." This was the entity that prompted Yahoo News to run aheadline in this form: "Throughout history, Kennedys havegrieved losses in public" - as if the Kennedys had, like gods,existed from the dawn of time, making spectacles of them­selves to mortals and reveling in their attention.

All of this is embarrassing to contemplate. But the big­gest embarrassments are the teachers and commentators, thepolitical leaders and self-proclaimed idealists, who created

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Edward Moore Kennedy in the image of their highest aspira­tions. - Stephen Cox

Where's my guillotine? - Sen. Edward M.Kennedy died in late August. His passing brought forth theusual prefabricated obituaries and reverent balderdash. Afew, lonely voices pointed out that the arc of the man's life ­from cheating in college to depraved indifference to a youngwoman's death to a failed marriage to unseemly abetting ofhis nephew's indictable offenses - was not something decentpeople should emulate.

Kennedy's politics were, of course, orthodox urban stat­ism. Reflexive, unexamined. No surprise there; he representedMassachusetts in the u.s. Senate.

But neither his politics nor his shoddy personal life waswhat made the man so loathsome. What did?

The feeble-minded television pundit Eugene Robinsonstumbled around the point when he said - as a compliment,apparently - that Kennedy played the part of a prince well.What is this, the Grand Duchy of Fenwick?

The flabby, dissolute, venal brother of iconic popular fig­ures was a "prince." That's why I loathed him. And why Iloathe the likes of Eugene Robinson. Off with their heads!

- Jim Walsh

He's outta here - Tuning in the Red Sox game onthe evening of Aug. 26, I was confronted with what I had man­aged to avoid all day - the death of Teddy Kennedy. I hadmade a point of not looking at the morning papers or turningon any cable news programs (especially MSNBC and CNN) inorder to avoid the overwrought displays of mourning for thatbloated excuse for a statesman.

The Red Sox organization, however, went all-out to honorthe blob. The flag was at half-staff; the PA announcer read along, saccharine tribute to the man; a moment of silence wasobserved. All this for a guy who was expelled from Harvardfor cheating, used his connections to avoid combat during theKorean War, and left a woman to drown after driving his caroff a bridge.

What really struck me about the Sox's tribute was a line inteam owner John Henry's encomium. Kennedy, Henry wrote,"shaped the lives of millions." Well, perhaps he did. Certainlyhe threw plenty of money at people's problems (real or imag­ined) during his very, very long career in politics. I may havebeen one of the few members of the viewing audience whowent cold at the words. Imagine a single legislator, elected bythe voters of one medium-sized state, "shaping" the lives ofmillions of Americans. Be it for good or ill, do we want oneman to have such power? In Kennedy's case, of course, it waslargely for ill.

The senator's martyred brothers, whatever one thinks oftheir politics, had courage, and President Kennedy deservesto be honored for getting us out of the Cuban missile crisiswithout a nuclear war, and then ending nuclear testing in theatmosphere. But Teddy? A limousine liberal par excellence,an inebriate, a cheater, a man who fled the scene of an acci­dent while a woman was drowning - this excuse for a mandeserves burial at Arlington? Bah! I say good riddance.

- Jon Harrison

Robert Novak, R.I.P. - It is fashionable toscorn Robert Novak (1931-2009), the political journalist and

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November 2009

television commentator who died on August 18, a victim ofone of the several grave illnesses that plagued him during thelatter part of his life.

Modern liberals hated Novak for the cynical way in whichhe exposed the cynicism of their social projects, the heartlessway in which he revealed the heartlessness of their humani­tarianism. Modern conservatives feared his mordant wit, hisnever-concealed assumption that they were mostly provin­cial hacks, like the liberals, although they came from anotherprovince. Many libertarians distrusted him because he wasonly a "libertarian conservative." What was that, anyway?

The libertarians ignored the fact that Novak's motto was"Always love your country but never trust your government."Like the modern liberals and conservatives, they refused toappreciate the fact that Novak was the smartest journalist inWashington. He had a virtually unmatched ability to think forhimself, so naturally he failed to please most people, most ofthe time. But he usually hit whatever target he aimed at. Onthe typical Washington "insider" show ("Capital Gang," forinstance), the conversation went like this:

Establishment media liberal: "Insiders tell me ... The NewYork Times got it exactly right ... The experts agree ... Thisis a good bill - not a perfect bill, but a bill that will bring thiscountry into the 21st century ... I know that Neanderthalslike Novak may disagree [smile, eyebrow lift, and snort fromNovak] ... "

Establishment media conservative: "It's obvious thatsomething must be done ... The nation demands action, andrightly so ... Nevertheless, the devil is in the details ... Thebipartisan amendment now being drafted by Senator Smurfremedies most of the problems that Novak and other reac­tionaries have been orating about [angelic smile from Novak]... Insiders tell me ... The experts agree ... It's important toreach a viable consensus ... "

Novak: "As everyone knows, or ought to know, this billis a complete disaster ... It will increase the national debt byroughly 5% ... It will cause a massive loss of jobs ... No oneis really in favor of this turkey except the fanatics and the lob­byists for groups that plan to profit from it, so it will probablypass, unhappily for the republic ..."

Establishment media liberal and establishment mediaconservative: Momentary silence, accompanied by hatefulglances. Nervous, though condescending, chortles.

Moderator: "Well, now we've heard from Robert Novak.As usual, Bob [amicable sarcasm, as if to a retarded boy],you're the only one who's right."

But he was. And that's why people tuned in to those shows.It wasn't to watch the $500,000 a year ignoramus from TheNew York Times or the wry little Oyrish humorist from PBS; itwas to watch Bob Novak, the Prince of Darkness, who got thatname because of his educated pessimism about the preten­sions of this country's political leadership, a subject he alwaysunderstood much better than the pundits he encountered.

Novak wrote a nationally syndicated column for 45 years.He was a pioneer of the television talk show. But it's his autobi­ography, "Prince of Darkness" (2007), that will keep his mem­ory alive. I reviewed that book when it came out, and I don'twantto repeat all the things I said back then (visit Liberty'swebsite and look for the June 2008 issue). But let me ask you,How many autobiographies of Washington journalists have

24 Liberty

you read? That few? Why? Could it be because you've foundthat these people normally write like the hack politicians theycover, as opposed to reveal?

Novak didn't hesitate to disclose the facts, about otherpeople or about himself. He withheld information only whenhe thought innocent people would be damaged. He depictedmost of the political functionaries and almost all the presi­dents he knew as brazen liars or astonishing fools (usuallyboth). He reached similar conclusions about the people whoran for the presidency and failed. In addition, he depictedmuch of his own life as folly, with particular attention to theamazing quantities of liquor he guzzled before deciding tostop being a drunk.

He told his life story with the kind of detail that almostno memoirist ever includes, right down to the amounts ofmoney he received for his writing and his television appear­ances. It has been said that people are much more willingto discourse about their sex lives than to hint at the size oftheir bank accounts; but Novak, again, was the exception.He showed himself changing from drunk to sober, fromagnostic to Christian, from modern liberal to libertarian con­servative, and he did so without any hint of self-righteous­ness. Describing his 1998 baptism, for which Senator DanielMoynihan acted as a sponsor, he quoted Moynihan as joking,"Well, Bob, now that you've become a Catholic, when are yougoing to become a Christian?"

Novak had a real and often hilarious sense of humor. Hehad a large knowledge of American history and an encyclo­pedic knowledge of how things work in America. He hadgenuine insights about what we piously call Our PoliticalSystem, and he expressed his insights crisply and cogently.Few of his thoughts were original, and some of them were,in my view, dead wrong; but they were never stereotyped,never motivated by a desire to reach a consensus with eitherthe Ins or the Outs. He was original, and that's a lot to sayabout anyone. - Stephen Cox

Rose Friedman, R.I.P. - When Rose Friedmandied on August 18 at the age of 98, the chief theme of theobituaries was the close partnership she had with her morefamous husband, Milton Friedman.

As far back as 1962, "Capitalism and Freedom," a path­breaking book based on a series of lectures by Milton, includedthe words "with the assistance of Rose Friedman" on the titlepage. "She pieced together the scraps of the various lectures,"Milton wrote in the preface, "coalesced different versions,translated lectures into something more closely approachingwritten English, and has throughout been the driving force ingetting the book finished."

Given today's attitudes, one might wonder, if she did allthat, why wasn't she named coauthor? In later books such as"Free to Choose" and "The Tyranny of the Status Quo," Rosewas, indeed, coauthor. But the real answer to the question isthat their partnership was based on a division of labor, onethat suited them both.

Rose had been an excellent graduate student at theUniversity of Chicago, praised by the prominent economistFrank Knight, for whom she was a research assistant. But shenever finished her dissertation. And once she and Milton were

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The Law

Property Rights or

ovation would exceed that amount, it automatically - andillegally - assesses the owner for the construction of side­walks, curbs, lighting, and other projects. This demand can beextremely expensive: in the Griswolds' case, the city asked foran upfront payment of $114,979.

But, recognizing that such an amount would prove pro­hibitive to many homeowners, the city also offers an alter­native. For those who cannot afford the illegal assessment,the city offers a waiver form, giving up the voting right con­ferred by the state constitution, and waiving any right to "fileor bring any protest, complaint, or legal action of any naturewhatsoever challenging the validity of the proceedings." Thiswaiver is quite explicit, specifying that "the owner herebyconsents to, and approves of . . . the levy of an assessmentagainst the property ... [and] grants to the city a proxy toact for and on behalf of the owner, the owner's successors,heirs, assigns, and/or transferees, for the limited purpose of

Property Permissions?

by Timothy Sandefur

A disturbing trend, reaching back to theProgressive Era, continues to deform propertyrights in America.

When Craig and Robin Griswold applied for a building permit to renovate their small home inthe southern California city of Carlsbad, they were shocked to learn what city officials wanted in exchange:the city demanded that they give up their right to vote.

Article XIII of the state constitution guarantees Californiahomeowners the right to vote on whether their properties areassessed for the value of local improvements such as the con­struction of new streetlights or sidewalks. Assessments differfrom property taxes in that they are levied only on the prop­erties in the neighborhood that benefit from these improve­ments. In 1996, after years of abuse by cities that routinelyassessed property owners without restraint, voters passedan initiative amending the constitution and requiring citiesto hold elections before assessing property owners for localimprovements.

But Carlsbad officials have found a way to avoid this con­stitutional provision. Rather than allowing homeowners tovote on assessments, the city simply imposes assessments onhomeowners whenever they remodel their homes in waysthat cost more than $75,000. This estimate is done by the city,according to its own formula, when the homeowner appliesfor the necessary building permits. If the city thinks the ren-

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November 2009

completing and submitting an assessment ballot in support ofthe levy of the assessment." In other words, in exchange for apermit to renovate their home, the Griswolds were forced togive up their constitutionally protected voting right - andthe waiver binds not only the Griswolds, but anyone to whomthey might sell or give the property.

The Griswolds, represented by attorneys at the PacificLegal Foundation, filed a federal civil rights lawsuit to chal­lenge the constitutionality of the assessment scheme, arguingamong other things that it's an illegal poll tax, since the cityconditions the right to vote on the payment of a fee. Althoughthe trial court dismissed the case on a procedural technicality,the Griswolds appealed to the 9th Circuit Court of Appeals,which heard oral arguments in May.

It might seem outlandish that government officials woulddemand that property owners waive their right to vote inexchange for a building permit, but this case is only oneextreme example of an increasingly common phenomenon:the abuse of permitting powers by local governments thatwant to force property owners to give up their rights - tomoney, to land, or to the ballot - in exchange for permissionto use their own property as they wish. Nor is it an isolatedincident. The city of Santa Rosa, California, enforces an ordi­nance that forces permit applicants to give up their right tovote on a different kind of tax. Similar rules appear to be inplace in Missoula, Montana.

In the 1987 case of Nollan v. California Coastal Commission,the United States Supreme Court invalidated an attempt byone of the state's most intrusive bureaucracies to extort landfrom a Malibu family who sought a permit to construct a sec­ond story on their home. Commission members claimed thehome would create a "psychological barrier" between motor­ists on Pacific Coast Highway and the nearby beach. Butrather than denying the permit, or imposing a height restric­tion, the Commission demanded that the Nollans agree toan easement allowing the general public to walk across theiryard to the beach. In the decision he wrote for the 5-4 court,Justice Antonin Scalia explained that government agenciescannot make demands on property owners that are totallyunrelated to the potential effects of construction. They maymake such demands only when proposed construction mightharm the public or impose significant new demands on pub­lic resources - as when new home construction will increase

"I urge the Court to take into consideration thefact that my client only burglarized local merchants!"

26 Liberty

traffic and overload local roads. Even then, the demands mustsomehow help alleviate those effects. If the government canmake demands on permit applicants without any such con­nection, Scalia wrote,

the situation becomes the same as if California law for­bade shouting fire in a crowded theater, but granted dis­pensations to those willing to contribute $100 to the statetreasury. While a ban on shouting fire can be a core exer­cise of the State's police power to protect the public safety... adding the unrelated condition alters the purpose....Similarly here, the lack of nexus between the conditionand the original purpose of the building restriction con­verts that purpose to something other than what it was.The purpose then becomes, quite simply, the obtaining ofan easement . . . without payment of compensation. . . .In short, unless the permit condition serves the same gov­ernmental purpose as the development ban, the buildingrestriction is not a valid regulation of land use but IIan out­and-out plan of extortion."

Scalia's point seems obvious if one presumes that land­owners have the right to use their property as they see fit,consistently with the rights of others. Under this premise ­known in the law as the "sic utere principle," from a Latinphrase meaning "one should use one's property so as not toinjure someone else" - it makes sense for the governmentto deny permits to people whose construction might harmthe public. Government agencies might also take a lesser stepthan outright denial: they might require the owners somehowto reduce the deleterious effects of their projects, for instance.If officials have the "power to forbid construction," wroteScalia, then they also have "the power to condition construc­tion upon some concession by the owner, even a concession ofproperty rights, that serves the same end."

But not everyone holds the sic utere principle that propertyowners are free to use their land as they see fit. Indeed, manyif not most judges and law professors today view that rightas no right at all, but rather as a permission given by the stateto those citizens it deems worthy. On this premise, requiringowners to pay for the privilege of using their property makesperfect sense. This was the approach taken by Justice WilliamBrennan, who wrote a dissenting opinion in the Nollan case."[S]tate law is the source of those strands that constitute aproperty owner's bundle of property rights," he argued. Thusif a state decrees that owners have no right to develop theirproperty, or to exclude others from walking across it, that isthe end of the matter. He regarded it as "curious" for Scaliato "somehow suggest[] that 'the right to build on one's ownproperty' has some privileged natural rights status."

In the two decades since Nollan, some academics have gonequite far in arguing that owners of property can be forced topay for the privilege of using what belongs to them. ProfessorsGideon Parchomovsky of the University of Pennsylvania andAbraham Bell of Fordham have labeled this approach "giv­ings," to contrast it with the 5th Amendment's "takings"clause. When the government takes an action that increasesthe market value of property - such as granting a buildingpermit - it may, in their words, "collect a 'fair charge' inexchange for the giving." Whether or not lawyers and judgesexplicitly embrace Bell and Parchomovsky's approach, it is inreality the way many local governments view their permittingauthority. In fact, shortly after the Griswolds filed their voting

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rights lawsuit, Carlsbad City Attorney Ron Ball told the SanDiego Union-Tribune, "In this state, development is a privi­lege and development is allowed to be conditioned."

This is the crux of the dispute. If private property is a basichuman right, then it pre-exists the state, and governmentbears the burden of justifying the limits that it imposes on anowner's freedom to use what belongs to him. But if propertyis created by government's decision not to interfere, then theowner must obtain that permission by yielding other rights.As Janice Rogers Brown, then a justice on the CaliforniaSupreme Court, wrote in a 2002 case, local governments tak­ing the second approach effectively tell property owners, "Wehave the power; therefore, pay us to leave you alone. By anymeasure, that is extortion.... Instead of the government hav­ing to pay compensation to property owners, the governmentnow wants property owners to compensate it to get back thefair value of property the government took away throughregulation."

The notion that property rights are created by govern­ment fiat is an old one, but its contemporary form is a legacyof the Progressive Era, when philosophers and judges over­threw the concept of natural rights underlying the AmericanConstitution, and replaced it with the positivist view thatrights are simply spaces of free discretion that citizens enjoythanks to the state's protective influence. Progressive intellec­tuals were often quite explicit that their theory did not stopwith property rights: all rights, including freedom of speechand freedom of religion, were simply privileges of citizenship."All my life I have sneered at the natural rights of man," wroteOliver Wendell Holmes, one of the pioneers of the Progressiveapproach. For Holmes and his allies, the state manufacturedindividual rights to serve its own purposes. Thus, for instance,free speech was to be protected, not to preserve individualautonomy, but because society benefits from the exchange ofopinions. "Persecution for the expression of opinions seemsto me perfectly logical," wrote Holmes in a famous 1919 case.But "the theory of our Constitution" is that "the ultimate gooddesired is better reached by free trade in ideas." And sincegovernment creates the freedom of speech to serve its ownends, it can also squelch free expression if that is more condu­cive to its ends. Thus in another case that same year, Holmesheld that a war protester could be jailed for distributing pam­phlets protesting the draft. uWhen a nation is at war manythings that might be said in time of peace are such a hindranceto its effort that their utterance will not be endured." TheProgressives took the same view of private property. JusticeBrandeis encapsulated the era's attitude toward individualfreedom when he wrote urights of property and the liberty ofthe individual must be remolded, from time to time, to meetthe changing needs of society."

The conception of private property as a tentative govern­ment permission carries with it troubling philosophical andpractical baggage. First, it implies that wealth is a fixed prod­uct to be divvied up according to some criterion such as fair­ness or equality. It takes no account of the origin of wealth,

November 2009

or of the rights of those who produce it. The classical liberalconception of private property on which the Constitutionwas based sees property as inseparable from the liberty withwhich the individual creates wealth. Because a person devotestime and effort to the construction of a thing, that thing is

In exchange for a permit to renovate theirhome, the Griswolds were forced to give uptheir constitutionally protected right to vote.

rightfully his, not according to a scheme of social improve­ment, but according to principles of justice. Grounded in theindividual's natural desires for a realm of privacy and theimprovement of his standard of living, this conception ofproperty rights combines a humane moral insight - that, inJohn Locke's words, IIbeing all equal and independent, no oneought to harm another in his life, health, liberty, or posses­sions" - with powerful economic incentives. Each person isresponsible for his own pursuit of happiness, able to enjoythe rewards, and required to suffer the burdens, of his ownprivate choices. But the Progressive approach is silent on thequestions of wealth's origins, or the individual's just claim tothe product of his labor. Instead, it assumes that wealth ­and the individual effort that gives rise to it - belongs to thestate, and should be distributed according to the state's lights.Indeed, for the Progressives there were to be no meaningfulbarriers to the government's power of controlling individualchoice and redistributing wealth. UTo these thinkers," wrotepolitical scholar Charles Merriam in 1903, "it appears that theduty of the state is not and cannot be limited to the protec­tion of individual interests, but must be regarded as extend­ing to acts for the advancement of the general welfare in allcases where it can safely act, and that the only limitations ongovernmental action are those dictated by experience or theneeds of the time.... It is not admitted that there are no limitsto the action of the state, but on the other hand it is fully con­ceded that there are no 'natural rights' which bar the way. Thequestion is now one of expediency rather than of principle."That this approach posed a serious danger to individual free­dom and dignity was made clear by the Progressives' latersuccesses in imposing prohibition, segregation, and eugen­ics programs - including the forcible sterilization of women,which Justice Holmes ruled to be constitutional in the infa­mous 1927 case Buck v. Bell. The right to have children wasjust another discretionary benefit that the state could takeaway for society's "benefit."

Lawyers refer to local governments' extortionate demandsfrom property owners as lIexactions," and in addition to theirphilosophical weaknesses, they have some troubling practical

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November 2009

consequences. Exactions have become so commonplace thatsome researchers blame them for the wildly distorted cost ofreal estate in states like California, where the abuse of per­mitting powers is particularly egregious. In his latest book,"The Housing Boom And Bust," economist Thomas Sowelleven blames them in part for the recent economic downturn.Sowell observes that one of the reasons for the artificial risein housing prices preceding last year's real estate crash wasthe excessive burden placed on builders by local govern­ment regulators. Because exactions and other bureaucraticcosts emanate from city or county governments, the nationalmarket became speckled with enclaves of exaggerated hous­ing costs. Although "most of the country was not sufferingfrom skyrocketing housing prices," those communities withexcessive burdens on construction were - and the conse­quence was an illusory crisis that politicians strove to addressby devising easy financing options for risky first-time buy­ers. "Government regulations and interventions are preciselywhat pushed lending institutions to reduce the standardswhich they had traditionally required of prospective borrow­ers before making mortgage loans to them." It was the low­ering of those standards that precipitated a series of defaultsleading to today's recession.

It is easy to see why the burdens that local governments puton building permits would translate into confiscatory housingprices. In one 2006 case, the Sacramento suburb of Elk Grove,California, demanded that Muhammed Ahmad and his wifeJonette Banzon pay $240,360 in "in lieu fees" in exchange fora permit to construct a second story on their home. The cityexplained that the fees were for such street improvements aspaving roadways, adding street signs and stripes, and for the

Commission members claimed the homewould create a "psychological barrier" betweenmotorists on Pacific Coast Highway and thenearby beach.

planting of new trees. In another case, the California CoastalCommission agreed to allow Dan and Denise Sterling to builda home on their 143-acre property in San Mateo County - butonly if they signed a permanent easement pledging foreverto use 142 acres of their land as a farm. The Sterlings aren'tfarmers or ranchers, but the owners of a modest doublewidewhere they live with their four children. "[T]he Commissionwants most of my land put under a government easement andset aside for farming," said Dan Sterling, "but farming is theone thing my family couldn't make a living at with this prop­erty. What's really happening here is that we're being forcedto give this land over as a park or open space for the commu­nity, but we still pay taxes on it, and are still responsible forthe other liabilities of property ownership."

Forcing particular landowners to give up rights inexchange for permission to use their property allows localgovernments to avoid the politically unpopular alternative of

28 Liberty

paying for public amenities with tax dollars. If political leaderscan make developers pay for the construction of roads, street­lights, new libraries, or parks, such projects seem to most vot­ers to have been provided for "free." In fact they are not free;they are extracted from individual property owners who lack

If private property is a basic human right,then government bears the burden ofjustifyingthe limits that it imposes on an owner's free­dom to use what belongs to him.

the political influence necessary to defend themselves frompolitical exploitation. And, as the New York Court of Appealsobserved in a 1976 decision,

the ultimate economic cost of providing the benefit is hid­den from those who in a democratic society are given thepower of deciding whether or not they wish to obtain thebenefit despite the ultimate economic cost, however ini­tially distributed. In other words, the removal from pro­ductive use of private property has an ultimate social costmore easily concealed by imposing the cost on the owneralone. When successfully concealed, the public is not likelyto have any objection to the 1/cost-free" benefit.

These effects became starkly real to southern Californiabusinesswoman Janet Auxier in 2006, when local officialsordered her to construct three new sections of roadway,install traffic lights and a new water main, and make otherimprovements totaling more than $200,000 - even thoughshe had not applied for a permit to begin with. Auxier, whoruns a business that sells decorative rock and gravel, boughtthe land in 2003 in the desert city of Hesperia, California. Theproperty, which sits alone with no neighboring structures,had previously been used by a business that sold plaster anddrywall. The large lot and isolated building were perfect forstoring and selling different types of rock. She never plannedto build on or renovate the property, which was already prop­erly zoned for her business.

Nevertheless, city enforcement officers began fining herfor operating without a "site plan," a complicated docu­ment that, according to city ordinances, only developers arerequired to prepare. Although the city never told her why shewas being required to prepare such a plan when she was not adeveloper, Auxier hoped that the city would leave her alone ifshe cooperated. She hired an engineering company to preparea site plan which would make clear that she did not intendto build anything or change the property in any significantway. Nevertheless, after three years of negotiations, and morethan a dozen fines, officials finally accepted her site plan onlyon the condition that she construct hundreds of thousands ofdollars in new public improvements - improvements withno relationship to any effects of her use of the property. PacificLegal Foundation attorneys took Auxier's case to challengethe city's actions; that lawsuit is now awaiting review by atrial court.

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The city's motives are clear. By requiring Auxier to paythe cost of improvements, political leaders can portray them­selves as visionaries and their cities as dynamic pro-growthcommunities, without requiring voters to face the costs ofpublic economic-development programs. Meanwhile, indi­vidual property owners like Auxier don't have the politicalmuscle to persuade local officials to leave them alone. Theyare the quintessential "insular minority." Yet despite courts'self-serving claims that they take special care to protectminority rights, judges actually make little effort to defendproperty owners from such exploitation. Dominated still byProgressive-era attitudes toward private property, the judi­ciary virtually always defers to local government authority- most notoriously in the 2005 eminent domain case, Kelo v.New London, when the Supreme Court abandoned any seriouslegal limit on the power of local officials to seize homes andbusinesses for the benefit of politically connected developersand ambitious bureaucracies.

Rules limiting the uses of land have existed for centuries.But the Progressive era witnessed a fundamental intellectualshift, as intellectual leaders - and particularly lawyers andjudges - jettisoned the founders' classical liberal conceptionof natural rights and replaced it with the idea of rights as per­missions. This helped reinforce the Progressives' fondnessfor central planning and urban redevelopment. "Progressivesloathed the absence of a comprehensive plan," wrote lawprofessor Eric Claeys in a recent issue of the Fordham LawReview. "Recall that Progressives liked to equate the localcommunity to an organism.... Progressives measured thepolitical health of the city by the extent to which citizens actedwith a common purpose; a comprehensive prearranged cityplan was proof that they were."

That era's leading innovation in land-use control was theconcept of "'zoning," validated by the U.S. Supreme Court inthe case of Village of Euclid v. Ambler Realty in 1926. JusticeGeorge Sutherland, torn between his own Progressive politi­cal leanings and his sincere belief in the importance of privateproperty rights, ruled that zoning laws were constitutionalbecause they simply modernized the long-understood prin­ciples of nuisance law: "There is no serious difference of opin­ion in respect of the validity of laws and regulations fixing theheight of buildings within reasonable limits, the character ofmaterials and methods of construction, and the adjoining areawhich must be left open, in order to minimize the danger offire or collapse, the evils of overcrowding and the like, andexcluding from residential sections offensive trades, indus­tries and structures likely to create nuisances," he wrote. Inhis eyes, zoning simply existed to prevent "a right thing in thewrong place, like a pig in the parlor instead of the barnyard."

But zoning was much more than that, as became clearover the ensuing decades. Rather than organizing the usesof property in any systematic and rational way, zoning lawsonly shifted the power to determine the use of land out ofthe hands of property owners - where those decisions weremade by balancing supply and demand - and into the hands

November 2009

of political authorities, where decisions are made on the basisof popularity and influence. The zoning map of any majormetropolitan area today would probably look every bit asrandom and haphazard as the land-use map of a century ago.Cities are not more rationally or systematically planned now;the major difference is that land-use decisions are made on apolitical rather than on an economic basis. Houston is the lastmajor city in America not to have adopted extensive zoning(although city officials exploit a variety of land-use restrictionsto achieve similar purposes). Yet while some of its neighbor­hoods are more eclectic than neighborhoods in cities withzoning, these differences are not dramatic. Instead, land usesin Houston are more closely tied to the actual desires of con­sumers and landowners than they are in other cities, wherethey are dictated more by the political influence of develop­ers, environmentalists, unions, and other lobbyists. One con­sequence is that housing costs in Houston are significantlylower than those in other cities. A 2,OOO-square foot home inHouston costs about $120,000; in New York City the price is$1.7 million. As a Houston-area contractor wrote in a recentissue of The Objective Standard, "Because Houston's buildersand developers are less shackled by land-use restrictions, theyare able to use property in ways that make the most economicsense; they are better able to supply the market with propertyfor each type of use; they are able to sell and lease propertyat lower prices; and they are able to change land uses moreeasily and efficiently than would be possible under zoninglaws."

So long as zoning was seen as a variety of nuisance law, itwas possible that such restrictions might be logically limited.The concept of "nuisance" builds on the sic utere principle. Sicutere accorded property owners a broad realm of individualchoice. But as zoning morphed into the Progressive centralplanning model instead, land uses became dictated by a newprinciple: an individual may use land only so far as approvedby government officials. In his book "Restoring The LostConstitution," law professor Randy Barnett argues that "wemust choose between two fundamentally different construc­tions of the Constitution.... We either accept the presump­tion that in pursuing happiness persons may do whatever isnot justly prohibited or we are left with a presumption thatthe government may do whatever is not expressly prohib­ited." But in the context of private property rights, this choice

R56TAURANT

"I didn't have any cash, so I used eminent domain."

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was made long ago by the Progressive-era shift away fromtraditional nuisance concepts - premised on the classical lib­eral view that individuals have the natural right to act freelyas long as they injure nobody else - and toward the centralplanning conception that individual freedom is only a privi­lege the individual lacks until given it by the state. With thatshift, zoning was transformed from a rule for keeping pigsout of parlors, into a tool with which bureaucrats could sculptneighborhoods as they saw fit.

Like zoning laws, permit-based exactions give governmentofficials, instead of consumers, broad power to make deci­sions about the land use. One common exaction demandedof developers who wish to construct apartment buildings isthat they also build a certain amount of "affordable housing."For example, in 2006, the city of Santa Monica, California,adopted an ordinance forcing developers to rent at least 20°,10of their apartment units at below-market prices. A coalition ofapartment owners sued, arguing that under the Nollan deci­sion, the ordinance was an unconstitutional taking of theirproperty. But state court judges dismissed the case, holdingthat the limits set by the Nallan decision do not apply to exac­tions imposed by ordinances, but only those imposed by zon­ing boards or other committees. The United States SupremeCourt refused to hear the case.

A lawsuit like the Griswolds' voting rights case· mayseem extreme, but in fact there is little difference in princi­ple between it and demands by other local governments thatproperty owners yield land or money in exchange for permits.If property rights are only a privilege extended by govern­ment fiat, then public officials have broad power to set theconditions for those grants. And if it can force landowners togive up their money, or their land, or to devote some of theirproperty to below-market rental or to permanent farming,why not also demand that she waive her right to vote?

The central problem is the shift away from the Founders'classical liberal view of natural, human rights and toward theProgressives' view that rights are permissions based on politi­cal consensus. With that shift came a gradual change in thenature of land-use regulation; originally a mechanism for pre­venting nuisances, land-use planning morphed into a devicefor centralized social planning. Where nuisance law· soughtto protect each person's equal right to use property as he seesfit, the Progressive central planning model holds that expertsshould choose the "right" uses of land - uses that mayormay not reflect the actual desires of individuals - and enforcethat vision on property owners. The problems with land-useregulation will not be resolved until Americans, and partic­ularly lawyers and judges, rethink their basic philosophicalapproach to private property rights.

But this endeavor, too, is obstructed by the legacy ofh Progressive-era judges, who believed that courts have no

business addressing philosophical issues. They argued thatsuch issues are better left to the legislature; in their eyes, thejudiciary's role is limited solely to applying the law. Thiswas the theory of "judicial restraint," another Progressive­era innovation. "If my fellow Americans want to go to Hell, I

30 Liberty

will help them," Oliver Wendell Holmes told a friend. "That'smy job." But this conception of the judge's role would havestruck the Constitution's authors as farcical and danger­ous. They expected and even encouraged judges to addresscomplicated and abstract questions of justice and individ­ual rights. Indeed, it is impossible for judges to interpret the

The California Coastal Commission agreedto allow the Sterlings to build a home on their143-acre property- but only if they signeda permanent easement pledging forever to use142 acres of their land as afarm.

Constitution without doing so. That document explicitlydeclares that no person shall be deprived of property with­out due process of law. Yet these terms are left undefined.Without understanding what the framers understood by thewords "law," or "property," this constitutional injunction isincomprehensible. Holmes and other Progressive judges heldthat the Constitution does not embody any particular politi­calor economic theory at all, but is a blank slate on whichelectoral majorities can write their preferences into law: ''It ismade for people of fundamentally differing views," Holmeswrote in his most famous dissenting opinion. "The word 1ib­erty,' in the 14th Amendment, is perverted when it is held toprevent the natural outcome of a dominant opinion...." ToJames Madison and other Founders, this was the very defini­tion of liberty in a democracy. "Wherever the real power in aGovernment lies, there is the danger of oppression," Madisonwrote in 1788. "In our Governments the real power lies in themajority of the Community, and the invasion of private rightsis chiefly [sic] to be apprehended, not from acts of Governmentcontrary to the sense of its constituents, but from acts in whichthe Government is the mere instrument of the major numberof the constituents."

Thanks to the overwhelming influence of Progressivethinkers, however, many of today's judges, including suchconservative stalwarts as Justice Scalia, hold that questionsabout human rights are beyond their purview. Indeed, in theNollan case itself, Scalia made a remarkable concession. Whileexplaining that land-use restrictions must relate to a legiti­mate government interest, he observed that "Our cases havenot elaborated on the standards for determining what consti­tutes a 1egitimate state interest.' "

This is an astonishing thing to say. If the justices of theUnited States Supreme Court cannot say with any degree ofconfidence what is and is not a legitimate state interest, thenthey would seem to have no work left to do. If one does notknow the ends one is pursuing, then one has no foundationfor discussing the means chosen to pursue them.. It would belike trying to judge the usefulness of a map without having

continued on page 34

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I don't know what stories you have heard about VA hos­pitals, but I can tell you this: they are all true. VA hospitals areworse for you than Nazis. At least they were for my brother-in­law's dad. He was a genuine World War II hero, a paratrooperwho solo-jumped behind German lines to spy out troop dis­positions and, somehow, made it home alive. He didn't makeit home alive from the VA, though.

Luther was a bricklayer who had just finished a job thatrequired him to haul hundreds of concrete blocks high ontoa scaffold, then spend ten hours a day placing the blocks intoa wall, so he was in plenty good health. But he did have thatirregular heartbeat his doctor told him he should get lookedinto sometime, and he decided Wednesday would be as gooda day as any to drop by the VA and have it checked out. Beinga member of the FDR generation, he actually trusted the gov­ernment to do something like that.

Government Medicine

Healthcare Down

at the DMV

by Bill Merritt

No need to fear what's on the horizonwhen we can dread what's already in place.

I don't want to sound like an ingrate here, but the Veterans Administration is not the healthcareprovider of choice for anybody who actually has a choice.

I know, I know. As a libertarian, I'm not supposed to be sucking on the government's tit. But a few years ago BlueCross raised my premiums a hundred dollars a month to coverthe cost of the IJ'legislatively mandated benefits" that the stateof Oregon had forced health insurance companies to provideas part of someone's scheme to get reelected. The benefits inquestion turned out to be an extra day, all expenses paid, inthe maternity ward for anybody who has just given birth. Thiswas not a benefit I was ever likely to benefit from, but there itwas. Provided to me by law. Paid for by me, also by law, andpricing me right out of the private insurance market.

As long as I was rationalizing sucking government tit, itoccurred to me that I hadn't had all that much choice aboutbeing a veteran, either; and the more I thought about it, themore it seemed meet and right for Uncle to front me a littlehealthcare in return. Yea, very meet and right. And Uncle'sbounden duty, once my thoughts got rolling in that direction.Verily, healthcare is the least he can do for me. Unfortunately,healthcare through the Veterans Administration is the least hecan do.

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November 2009

The VA stuck him with a needle which gave him an infec­tion. By Friday, the infection was so bad that they sent a bloodsample down to the lab to find out what was infecting him. Itwas a ten-minute test, and any other lab in the world wouldhave shot back the results half an hour later, but a three-dayweekend was coming up, this was a VA lab, and the resultsdidn't arrive until the following Tuesday. Luther turned outto have an easy sort of infection to treat, but, without the testresults, nobody treated it. By Tuesday, the old paratrooperwas dead.

What triggered this rant was an article in the NewYorker in which some overly important twit named HendrikHertzberg tried to persuade the rest of us that the healthcareplan Hillary Clinton schemed up back when she wanted toget herself elected wasn't nearly as scary as the one she triedto ram down our throats in 1993. Because Hillary's later planwould have been modeled on the VA system, Hertzbergassured us, nobody should have been spooked by the pros­pect of actually having to receive healthcare under the thing.He wound up with the soothing conceit that VA healthcareis one of the "most efficient, merciful ... components of theAmerican health-care system."

This kind of crap is the Left's Fantasyland way of dealingwith the fact that no society on earth can afford top-of-the-linehealthcare for all its citizens. Modern medicine is too complexand way too expensive for everybody to have as much of it ashe needs. Every country has to cut corners, and every cornercut hurts lots of people. Different countries just cut differentcorners.

When you ask people on the Left whose system works bet­ter than ours, whose model should we scrap ours in favor of- Canada's? Britain's? Cuba's? Red China's? - they neverpoint to these foreign debacles, at least if they know anythingabout what goes on in those countries. Instead, they point tothe VA.

The VA is the model we want, the American Lefty says.The VA is one of the most efficient and merciful components ofour healthcare system. All we have to do is open the VA to allAmericans and presto chango, health problems are solved.

This kind of blather just reinforces my impression that nomember of the American Left has ever actually served in the

~0

( J\lVOTe!

"You're damn right my health plan will cover erectile dysfunction!"

32 Liberty

military. In fact, it leaves me thinking that members of theLeft are so cut off from the rest of society that they don't evenknow any veterans. If they did, they might have heard somebasic facts about VA healthcare, such as what happens whenyou try to fill a prescription.

VA prescriptions are fillable at VA pharmacies, so that'swhere you take them. When you get to the pharmacy, some­thing like 20 or 30 old farts - unless this is the day the buscomes in from the Old-Vet's Home, in which case many,many more old farts - will be waiting in leatherette-coveredgovernment chairs ahead of you. At the end of the room willbe four or five pharmacy windows where, when your turncomes, you hand in your prescription. Some windows will beempty, some will have a pharmacist inside. But just becausethere's a pharmacist in a window doesn't increase your oddsof being called to that window, at least not any time soon,because, mainly, the pharmacists aren't accepting prescrip­tions. Instead, they are involved with important paperworktasks, and only deal with veterans when they need to cleartheir heads and take a momentary break from their real work.On average, a vet gets called to a window about every 20 min­utes. With one or two dozen guys ahead of you, you can spendthe better part of a day waiting to hand in your prescription.

This isn't to get pills, mind you. Pills come hours later ­at the end of another line, stalled in front of another window.That is, assuming the pharmacist jotted down the right noteswhen he read your prescription, the person filling the pre­scription went to the right shelf, and the person who handedyou your pills grabbed the right bottle. You'd better check,because lots of times one of them didn't. But if you discoversomething amiss, you have to start over. I have made as manyas five trips to the VA to have a single prescription filled.

If you are of a reflective turn of mind, it will occur to youthat you shouldn't ever have to wait to hand in a prescrip­tion, that it would be a small matter for your doctor to phonethe prescription directly to the pharmacy and an even smallermatter for the physician's assistant to post it on the pharma­cy's computer. An almost trivial matter for someone at thepharmacy to set out a pasteboard box and let everybody dropprescriptions in. But none of this would be the GovernmentWay. Being ignored by a bureaucrat is the Government Wayand, by golly, ignored by a bureaucrat you will be. Unless youcan't stand it anymore and call attention to yourself. Whichhappened once while I was there.

The pharmacists had been not calling vets to the windowfor so long that one old fart lost his cool and pointed out thathe had been sitting in a leatherette-covered chair all morning,and couldn't one or two of you gentlemen please see yourway clear to actually dealing with the folks you are here todeal with? Hearing this, a fellow who looked old enough tobe the last surviving soldier from the Spanish American Warventured in a quavery voice something along the lines of,Yeah, I've been here a long time, too. Which led a couple ofCivil War vets, and one or two from the War of 1812 and, I'mpretty sure, a guy left over from the Continental Army, to pipeup in agreement. A general murmur began to rise from walk­ers and wheelchairs and gurneys around the room, and allthree pharmacists stopped what they were doing and lookedup, one for the first time that morning. Veterans out of control,you could almost see them thinking.

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We have a situation here, the pharmacists told them­selves, then did what they had undoubtedly taken seminarsto learn to do when a situation arises. They slammed steelshutters over all five windows, going into lockdown mode assmoothly and thoroughly as a Federal Reserve bank threat­ened by terrorists.

As bad as left-wing Americans imagine our private health­care system to be, I challenge anyone to name another phar­macy in the country that has to keep physical barriers andformal procedures at the ready just to protect its employeesfrom outraged customers.

This didn't happen at some run-of-the-mill backwoodsoutpost of the VA, either. This happened at the Portland,Oregon, Veterans Administration Medical Center, probably

The VA stuck Luther with a needle whichgave him an infection. The infection wouldhave been easy to treat, but nobody at the VAhospital treated it. Within a week, the old para­trooper was dead.

the finest, most cutting-edge, most award-winning hospitalin all VAdom. Because it is so well run, because its standardsare so high and it is so generally well thought of, the PortlandVAMC attracts healthcare workers from all over the country tohone their skills working with the finest of their profession.

This brings up an odd point. These pharmacists may actu­ally be good at being pharmacists. It's just that having to spendmost of their professional lives doing government paperworkmakes them look bad. On the other hand, they may havestarted out good at being pharmacists but were dulled intotheir present level of ability through a kind of reverse PeterPrinciple from years of mind-numbing routine and unrelent­ing boredom. On the third hand, they may be sitting at thatpharmacy window because every private hospital, drugstore,and HMO they applied to out of pharmacy school checkedtheir transcripts, looked over their letters of reference, andthen sent them a polite note thanking them for their interestand promising to keep their application on file in case a suit­able vacancy comes up.

Like every other employer, the VA hires what it can get,and (there is no courteous way of putting this) the VA is notJohns Hopkins. Not every best-and-brightest, most energeticand intellectually active up-and-coming young medical pro­fessionallooks to a lifetime of federal wages, federal job secu­rity and federal paperwork as the creme-de-Ia-creme of careeropportunities.

Johns Hopkins or not, the VA still has a lot of hospitals anda lot of clinics to staff and, because their reputation precedesthem, they may have to dip deeper into the applicant poolthan most storefront clinics in America would consider bestpractice. Add to this the general inability of any governmentagency to deal forthrightly with poor employees throughdemotions, firings, or even promotion of everybody else forany reason besides longevity, and the VA has no management

November 2009

tools left, other than overmanagement through rules andpaperwork that are guaranteed to squeeze the competenceout of the people who don't need so many rules and so muchpaperwork to make them do their jobs.

With these factors at work, you can find profession­als at the VA with a level of remove from modern theoriesof medicine that should have been hard to come up with inany Western community since the close of the Middle Ages.If Hertzberg had ever talked to a vet, he might know some ofthis. He might even have heard stories about the kind of peo­ple you can run into down there.

Here's a story he should hear. Recently I was in Oregonfor a wedding and took the opportunity to check in with adoctor - not because I needed medical care but because theVA has a rule that if you don't come by at least once a year,it drops you from its rolls. Since I didn't have any pressinghealth needs other than to arrange to have some medicationsmailed to me in Africa, the doctor and I had time to chat, theconversation spun badly out of control, and she wound uprevealing more about her opinions on the role of medicine inthe modern world than was, perhaps, wise.

Things began to take a wrong turn when she asked thestandard doctor-initiated question about whether I smoke.Not yet, I said, but I have noticed that a lot of people seem toenjoy smoking and, since I'm getting to the age where cancerwon't have time to catch up with me, I'm thinking of taking upthe habit. Do you have any advice on how to get started? Heradvice consisted of asking why I didn't want to live forever.

I told her I thought 85 would be just about right for me,that I'd never known anybody much older who seemed veryhealthy or very happy.

No, she told me, no, no. Don't think like that. If you canjust hold out until 2020 everything will be different. You canlive forever and stay young the whole time.

I have to admit that staying young forever has been anambition of mine for more decades than I care to confess, thata large part of me had been waiting to hear just these wordsfrom a respected medical professional, and that I perkedright up when I heard them from her. Staying forever young,

We haveasituation here, the pharmacists toldthemselves, then did what they had undoubt­edly taken seminars to learn to do when a situ­ation arises. They slammed steel shutters overall five windows, going into lockdown mode.

I thought, would be just the thing to give up starting smok­ing for. I even had a theory about how it might work. Thishas something to do with the Singularity, I told myself. TheSingularity is coming. So I asked my new best-friend doctorhow much progress the Singularity was making, and would itreally be here in time to save me? And got a blank look.

"You know," I said. "The Singularity. When all the trendsconverge."

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November 2009

Still blank."Computers double in power every 18 months. By 2020

they will be as smart as we are. They might even wake up.A year and a half later, they will be twice as smart. That'sgoing to mean something important, and it's going tohappen about the time nanotechnology takes off and you doc­tors start injecting little machines into our bodies to fix what­ever hasn't even gone wrong yet. Which will occur just as thebioengineers learn how to custom-grow body parts out of beefbroth and old nail parings. Theyll even be designing bodyparts that none of us ever had before. After the Singularity,the very definition of what it means to be human will be soradically ..."

"Things of this world are not going to give you everlast­ing life," the doctor interrupted sweetly. "All you have to dois hang on until the Second Coming and let Jesus take care of

"

Jesus? "Jesus is going to cure my ... ?""Human medicine can't cure anything."This led to a short philosophical dialogue on the efficacy

of human medicine, in which my government-provided doc­tor revealed that, doctor or no, she meant what she said: so­called "medical" cures were nothing less than small-scaledivine intercessions. It was the personal intervention of God,not the miracle of human medicine, that was hard at workwhen somebody got cured. Having been cured by humanmedicine on more than one occasion while God was on coffeebreak, I didn't share her lack of confidence in the powers ofscience. But, then, maybe hers was a conclusion derived fromspending too much time at the VA.

Now, I suppose that discovering your doctor doesn'treally believe in medicine might come as a surprise along thelines of discovering that Mother Teresa didn't really believe inGod. Both these revelations came as a surprise to me, but nei­ther came as a shock. I am naturally suspicious of people whomake a big, important social cause out of their poverty, andanybody who gets his healthcare from the VA has been desen­sitized to a lot more than mere off-the-wall theories. You willbe, too, once Hertzberg and his ilk have their way and youstart spending time down there.

I don't know what the doctor would have done if I hadbeen sick. Fired up a hymn? Wafted incense across my body?Interceded through the power of prayer? Called for a laying­on of hands? Whatever, it very likely would have spared me atrip to the pharmacy, and that would have been a plus. Evengovernment pharmacies only trade in the products of human

medicine. At least, as far as I know. Regardless of any possibleside benefits, though, had the VA let me choose my own doc­tor, I would have gone for somebody with a firmer grasp onthe value of evidence-based medicine.

Hertzberg and lots of other people who think VA health­care is just the ticket for the rest of us are going to point outthat my stories, and all the ones you have heard, too, areanecdotal. You can expect that. Refusing to acknowledge evi­dence you can't refute is the last refuge of somebody who islosing an argument. But there is nothing misleading aboutanecdotes. Anecdotes convey real human experience. In themedical world, an entire corpus of knowledge is built up ofanecdotes. Doctors call them case histories and, when enoughcase histories tell the same story, doctors say we have an epi­demic. And it's a pretty serious epidemic that can kill an oth­erwise healthy man within a few days.

My brother-in-law's dad was the very guy a grateful nationhad in mind when we set up the Veterans Administration.War hero. Greatest Generation. Not very well-heeled, so gov­ernment-provided medical services were something he couldreally use. You aren't. You never parachuted behind Nazi linesto spy out troop movements, and it's hard to see why the VAwould be any more vigorous in protecting your health than itwas that of the old paratrooper.

Now here's the thing: the VA can't do any better. It's notjust a matter of tinkering around the margins, of replacingcrazy Christians with atheists, of giving pharmacists sensitiv­ity training, or seeing to it that test results come back whenthey can still do some good. None of it, or anything else, willmake a bit of difference as long as the government is provid­ing the healthcare. No matter what scheme Mr. Obama andthe Senate and all the Hendrik Hertzbergs cheering them onmay cook up, ipso facto profundo, if the government providesit, it will be government-provided healthcare.

No matter how much money we throw at it, no matterhow much effort we pour into trying to make it work the waylots of our healthcare system works right now, entrustingAmerica's health care to America's government will result inthe same efficiency, innovation, compassion, individual ini­tiative, and attention to detail, the same 21st-century manage­ment practices, the same moderate fees and array of choices,the same ability to take our business elsewhere if we don'tlike the way we are treated, that we have learned to expectfrom entrusting our driver testing to the Department of MotorVehicles.

But perhaps I understate. D

Property Rights - or Property Permissions?, from page 30

any destination. And if one has no concept of the boundarybetween legitimate and illegitimate government purposes,then there is little room left for a judiciary designed to policethe boundaries of legislative power.

Of course, the Constitution's authors knew well enoughwhat a legitimate state interest is: they wrote as much in theDeclaration of Independence, when they said that govern­ment exists to secure individual rights to life, liberty, and thepursuit of happiness - not to redistribute wealth for the ben­efit of politically influential lobbyists. Their belief that gov­ernment should, in Jefferson's words, "restrain men from

34 Liberty

injuring one another" and "leave them otherwise free to regu­late their own pursuits of industry and improvement," is fun­damentally incompatible with the Progressive view of rightsas government permissions, much less their faith in the centralplanning model of land-use regulation, both of which domi­nate courts and legislatures today. At the center of disputeslike the Griswold, Auxier, and Sterling cases, and thousands ofothers like them, is a crucial philosophical conflict about thenature of individual freedom in the constitutional order. Aslong as lawyers and judges shun these profound questions,they will be unable to resolve these cases. D

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in the Barcelona Olympics of 1992. A necessary part of prepa­ration for a major event is "peaking," and a necessary part of"peaking" is "resting" - a.k.a. doing nothing. But there beingonly so much nothing that we could do, my fellow athletesand I spent a good deal of time surfing a kind of private inter­net - punching buttons on one of the "Amicus" terminalsthat linked our far-flung canoe & kayak slalom venue withthe main Barcelona Olympic Village.

I was standing at a terminal, looking up that evening'scompetitions. "Swimming, 400 meter freestyle finals, Women;Roller Hockey preliminaries, SUI vs. JPN; table tennis prelim­inaries, men's doubles: KOR, FRA, eRO, JPN, PRK, lOP."

Now, I took pride in my mastery of the Olympic three­letter abbreviations. At a glance I could read off Switzerland,Japan, Korea, France, Croatia; I could even identify PRK asNorth Korea. But lOP? That had me stumped. Islands of thePacific? Iopia?

More button punching, and the computer gave up its little

Ban 'emAil

by Jamie McEwan

The Olympic Games should be a showcase for the world'sgreatest athletes. Instead, it's a quota-driven spectacle with adisproportionate number of third- and fourth-tier competitors.

There came a moment, 17 years ago, when the International Olympic Committee showed ­or at least seemed to show - a momentary concern for athletes, of all people. Not just for the handful ofmedia darlings whom the IOC couldn't help but notice, but for a group of ordinary, garden-variety world-class athletesstruggling for their once-a-quadrennium chance to share theOlympic limelight.

Though best known for living high on the expense accountsof cities bidding for the privilege of hosting the games, theInternational Olympic Committee members took a rationaland even innovative course of action that benefited no oneexcept a few score international athletes. And in so doingthey showed the world how much better a sporting event theOlympics could be.

I refer to 1992, the year when the Committee temporarilycreated a new category of competitor: the "lOP."

Perhaps embarrassed by the subversive simplicity of itsown plan, the International Olympic Committee did notestablish this revolutionary category with what would havebeen the appropriate fanfare and publicity. Nor did the pressseize upon this unprecedented departUre from Olympic pro­tocol. The only reason that I myself happened to notice wasthat I was there, a curious athlete with time on his hands.

I was preparing to compete in the whitewater slalom event

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November 2009

secret: lOP didn't signify any country at all. lOP stood for"Independent Olympic Participant."

Whoa! How had lOP table-tennis competitors "Grujic,Slobodan" and "Lupulesku, Ilija," managed that?

While I had been concentrating on training and trials, anew era had dawned, unnoticed. Grujic and Lupulesku weretwo of 59 competitors (all from parts of what had once beenthe Socialist Federal Republic of Yugoslavia) who, for the firsttime since the disorganized days of the three earliest mod­ern Olympics, were permitted to compete without nationalaffiliation.

The last remaining piece of Yugoslavia still using the name"Yugoslavia" had been banned from the Olympic Games.There was nothing surprising about that; it would be anunusual Olympics indeed in which at least one country wasnot banned. The surprising thing was that the InternationalOlympic Committee seemed to care, not about Yugoslavia,but about Yugoslavian - and Macedonian - athletes.(Macedonia, another chunk of the old SFR of Yugoslavia, hadnot existed long enough to form its own National OlympicCommittee.) The IOC's unprecedented solution was to createa new category of competitor: the lOP.

Plain white uniforms. Olympic anthem if you win. Please,stay out of the opening ceremonies. But you can compete.

This sane, elegantly simple stratagem could have benefitedlarge numbers of athletes over the years: from those without acountry after World War II to the South African athletes whohad come of age during their country's 30 years on the bannedlist. (It must have felt very strange to the black South Africans ·banned from international competition because their govern­ment was discriminating against them.)

Sane, simple, and revolutionary. The quiet inclusion ofthese athletes without a country pointed up the fact that itis not countries that compete in the Olympics, but athletes.People, individual people. And seeing how easily one or twocountries could be dispensed with brought up the intriguingquestion: why not dispense with all of them?

Recent history has shown how shifting and arbitrary thesethings called "nations" can be. So why wait for the next cri­sis? Why not preempt the inevitable political maneuverings,the boycotts and sanctions, by doing away with nations alto-

Grujic and Lupulesku were two of 59Olympic athletes who were permitted to com­pete without national affiliation.

gether? What worked for the Yugoslavian and Macedoniancompetitors could work for all of us, all the time. Keep theathletes, but ban the countries, each and every one of them.

Ban 'em all.What are the Olympic Games about, anyway? If they are

about sport, then removing the "nation" as the unit of athleteselection would make for a far better sporting event. You maythink that you've been seeing the world's best athletes gather

36 Liberty

every four years, but you haven't. The allocation of Olympicentries by country - at times by continent - varies from sportto sport, but in no case is athletic ability the first criterion. Ifyou're a table tennis player from China, a slalom canoeist fromSlovakia, or a swimmer from the United States, my advice is,change nationalities as fast as you can. Through the vagariesof national selection, many potential medalists are excludedfrom the world's most prestigious sporting event.

In 1992 the world record holder in the decathlon, DanO'Brien, sat out the games, and the world champion kayaker,Shaun Pierce, was left at home. History repeated itself in last

The allocation of Olympic entries variesfrom sport to sport, but in no case is athleticability the first criterion.

year's Beijing Olympics when the reigning world championin kayak slalom, Sebastian Combot of France, failed to qualifyas France's single allowed entry. What's more, the eventualbronze medalist, Benjamin Boukpeti - a lifelong resident ofFrance who had only once visited his father's native Togo ­would have been excluded as well, if it had not been for thefortunate heritage that allowed him to enter as a Togolese.Birthright alone enabled Boukpeti to compete in an event inwhich he was demonstrably good enough to medal. Manyaren't so lucky. I would wager that every sport, at everyOlympics, excludes potential medalists, while at the sametime allowing far less accomplished competitors to share theOlympic experience with an arbitrary selection of the world'selite athletes.

Ignoring national origin would make it possible to createan authentic showcase for the world's best. Selection could bebased on the previous year's world championships, on WorldCup competitions, or on international rankings, with a fewslots left open for late bloomers to qualify from early-seasoncompetitions. A fairer and more competitive Olympics wouldresult.

What's more, this non-nationalistic format would givethe ghost of Baron Pierre Coubertin, founder of the mod­ern Olympics, at least the ghost of a chance to see his origi­nal hopes of fostering international understanding fulfilled.Unfortunately, his noble plan held the seeds of self-contradic­tion from its very beginning, planted there by the good baronhimself. In one and the same speech Coubertin could feel"well assured that the victors in the Stadion at Athens wishedfor no other recompense when they heard the people cheerthe flag of their country in honor of their achievement" - heis referring to the scene at the very first Olympics in 1896 ­and go on to suggest that the games "may be a potent, if indi­rect, factor in securing universal peace."

History suggests that 20th-century sports have had theopposite effect. If so, it's little wonder, for the current Olympicformat - copied by most international sports competitions ­is more calculated to inflame rivalries than to inspire fellow-

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ship. The awards ceremony, with its flag raising, its playingof the winner's national anthem while losers and spectatorsstand at respectful attention, represents in potent symbolismthe submerging of individual achievement in a glorification ofnational identity. The infamous "Hitler" games of 1936, withall their Aryan strutting, were not an aberration, but simply anunusually forthright expression of the jingoism that underliesthe modern games. Although there isn't a contemporary viceor corruption that hasn't an ancient counterpart, those admit­tedly xenophobic Greeks got one thing right: the format of theoriginal Olympics glorified the individual human being, notthe group. And perhaps it's not coincidence that the ancientgames endured 1,200 years without a single missed Olympiad.Twelve centuries without a gap! It's an especially astonishingrecord when you consider that the modern Olympics couldn'tget through their first century without failing, not once butthree times, to hold the quadrennial celebration. Where's Zeuswhen we need him?

Admittedly, banning countries from the Olympics wouldnot be enough to take the politics out of sport. There is a poli­tics to everything; it will never entirely go away. But at leastwe could restrict International Olympic Committee wranglingto pole-vault specifications and which new sports to include,and leave the flag waving to the fans in the stands. And to thenetworks, of course.

Other things being equal, we1l always be more excitedwhen a friend wins over a stranger, a local over someonefrom another coast, someone who speaks our language oversomeone who chatters incomprehensibly in a foreign tongue.Redheads will tend to cheer for redheads. That's human

nature, I suppose. I wouldn't try to stop the Chinese fromunofficially putting together a volleyball team, or the UnitedStates from assembling a swimming relay. But how backwardand absurd it is to require that teams be formed by the happen­stance of citizenship.

Doing away with all the mandated nationalistic preeningwould make for a more congenial international gathering.Have the athletes march into the opening and closing cere­monies grouped by sport, not nation. Apply the same restric­tions to nationalistic symbols on uniforms that are applied tocommercial logos. Sure, nationalism will sneak in through theback door. Fine. But make it sneak. Don't welcome it with abig brass band. Do away with those anthems. Burn the flags.Or rather, stitch them into something useful, like quilts.

It's true, banning countries from the Olympics makes toomuch sense to actually happen. Changing the status quo mightwell require the well-aimed thunderbolts of divine interven­tion. The modern Olympic movement is all about medalcounts and flags and anthems and uniforms, all the trappingsof nationalism, simply because nationalism fuels the Olympicmachinery. Almost all national sports teams - the UnitedStates being a notable exception - are heavily subsidized bytheir governments. And in the United States, where televisionratings are the single most important metric of Olympic suc­cess, the average viewer can only be sucked into watching abunch of minor sports he doesn't care about by the possibilitythat "his" jock will beat "their" jocks. Take away nationalismand the Olympics would become nothing but ... a sportingevent.

We can only dream. D

* TWO ACCOMPLISHED AND FASCINATING SPEAKERS ** LIVELY DISCUSSIONS AND PRESENTATIONS *Sheldon Richman

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Sheldon Richman: editor of FEE's flagship publication The Freeman,senior fellow at the Future of Freedom Foundation, engaging speaker,and author of the award-winning Separating School and State.

Lawrence Reed: president of the Foundation or Economic Education,president emeritus of the Mackinac Center for Public Policy, freelancejournalist, prolific writer, and popular speaker. For an interview ofLarry Reed on Reason~ please see http://fee.org/videos/68/.

Lawrence ReedIrvington, NY

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November 2009

Reflections, from page 24

married (in 1938), they were in agreement that she wouldplace the care of her children above her career as an econo­mist. Thus, there was never a question of "whose career camefirst," she wrote in the Friedmans' 1998 joint memoir, "TwoLucky People."

For those aware of today's frantic cross-country marriagesand difficult "spousal hires" in academia, this peaceful andcooperative coexistence between two tremendously talentedpeople may seem very mid-20th century; and indeed it was."In part this attitude on my part was probably a reflection ofthe times," she wrote in her memoir. "Women's lib was notyet on the horizon."

But there was more to it than that. "From the beginning,"she wrote, "I have never had the desire to compete withMilton professionally (perhaps because I was smart enoughto recognize that I couldn't). On the other hand, he has alwaysmade me feel that his achievement is my achievement." Andshe was less comfortable in the limelight than he.

Yet, although Milton Friedman might have won a NobelPrize without Rose, one of the activities that brought him themost fame, the "Free to Choose" documentary series on PBS,might never have happened without her. When the opportu­nity arose, Milton was reluctant. He thought of himself as awriter influencing economists, not a spokesman on a publictelevision series. But Rose disagreed and persuaded him toaccept the project. She was associate producer, and as Miltonwrote in his memoir, she "played an indispensable role: sheparticipated in every planning session and every editing ses­sion; she was on every shoot ... she was the best critic of myperformance, and perhaps most important the only one will-

Letters, from page 6

ing to be blunt in criticizing me."The fact that Rose became a graduate student in econom­

ics at the University of Chicago is itself somewhat remark­able, considering that she was born in a small, mostly Russiantown in what is now Ukraine. Her family moved to Portland,Oregon, when she was two years old. Her father worked as apeddler (he eventually owned a couple of small stores).

Rose attended public school, then Reed College for twoyears. In her junior year, she went to the University of Chicago,where her brother, Aaron Director, ten years older than she,was already on the faculty. Rose met Milton, also a graduatestudent in economics at Chicago, in 1932. Six years later theywere married, and their partnership, as well as the creation oftheir family, began. They had two children, Janet and David,the latter well-known to readers of these pages.

It is said that Rose is the only person who ever bestedMilton in an argument (but I haven't found out what thatargument was). For the most part, they were in agreement.Rose told The Wall Street Journal in 2006 that their first policydisagreement was over the U.S. entry into Iraq in 2003. Shefavored it; her husband was opposed.

Much of w!Jp.t I know about Rose Director Friedmancomes from the 650-page memoir, "Two Lucky People," arich collection of anecdotes and personal history, with sprin­klings of policy discussion. The only thing wrong with it is itstitle. Luck is not randomly distributed. Together Milton andRose Friedman forged a partnership that has revolutionizedthinking around the world, bringing back acceptance of freemarkets. Rose Friedman played a vital role, and we are all for­tunate that she was there. - Jane S. Shaw

It's a clever way of deflecting the ques­tion, "Where is Abel?" He gives a trueanswer - it's not my job - withoutgiving the real answer - his body is inthe grain field where I left him. A clas­sic example of sidestepping an issue byanswering a question with a question.

But I think you go too far in ma­ligning those who simply approach thediscussion from a different angle. Akeeper - one who keeps animals in azoo, as you point out, or political pris­oners in a tower (also called a "keep"),or who keeps a willing mistress in anapartment for that matter - is re­sponsible for feeding and shelteringthe animals (or prisoners, or mistress)because, they no longer have the free­dom to provide for themselves. "Keep"means "to retain," but it also means "tomaintain," "to guard," "to observe" (asthe Sabbath), "to stay fresh" (not spoil- interesting in the context of Abel'sdecomposing body), "to provide foror support." All these definitions dem-

38 Liberty

onstrate the dual nature of "keeping"- the keeper exerts control over theone who is kept, but at the same timeis controlled by the needs of the one hekeeps.

The title "My Sister's Keeper," asit turns out, works in both senses ofthe word. By providing her sister withblood, stem cells, tissue, and perhaps akidney, the healthy sister keeps (pro­vides for) her cancer-ridden sister, butalso keeps her imprisoned in a bodythat has become painful and exhaustingand a hospital room that has becomedepressing and confining. Only wheneach acknowledges the right not to bekept do they both find freedom.

MythopoesisIn my opinion, people talk and write

way too much about Ayn Rand and herworks. Her big books speak for them­selves, and I'm glad to see so manyfolks reading them. But the chatterboxfull of Randians and anti-Randians

that too often overflows into the pagesof Liberty is tedious. Stephen Cox'sreview of Anne Heller's new Rand bi­ography ("Ayn's World," October) isthe first thing about Rand that I havereally enjoyed reading in years. It takessome work to know Rand well and stillbe able to step out of the Randian uni­verse and give it some context. Cox didthe work in his review and apparentlyHeller does it in her biography.

Still, I have a bone to pick. (And, afterall, why even write to the editor with­out a bone?) Cox identifies a "goldenthread" of literary artists who have cre­ated "self-substantive literary realities."As soon as he named the artists, I knewexactly what he meant: Rabelais, Swift,Melville, Faulkner, Borges, Tolkien.Next came Cox's outrageous claim that"none of them created a Following, aCircle, a Cult as Rand did." To that non­sense I retort: Frodo Lives!

Michael ChristianSan Diego, CA

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"Churchill, Hitler, and 'The Unnecessary War': How Britain Lost Its Empire and theWest Lost the World," by Patrick J. Buchanan. Crown, 2008, 540 pages.

The Tangled Web

Leland B. Yeager

Pat Buchanan is a provocative con­troversialist on TV panels about publicaffairs. He is no libertarian. Still, his lat­est book can bolster a libertarian slanton foreign policy, as 111 explain at theend of this review.

With the word "war," singular,Buchanan evidently counts World WarsI and II as episodes in a great war dom­inating the first half of the 20th cen­tury. Harsh provisions of the Treatyof Versailles, including some that eventhe victorious Allies came to recognizeas unjust, offered material for Hitler'sdemagogy about those grievances.Buchanan mentions a London dinnerparty shortly after Hitler came to power.Someone asked, "By the way, wherewas Hitler born?" "At Versailles," LadyAstor snapped back (p. 110). Buchanannotes Keynes' warnings against avindictive peace in "The EconomicConsequences of the Peace" (1919), buthe overl~oksLudwig von Mises' simi­lar warnings in a book published a fewmonths earlier ("Nation, State, and

Economy," 1919, translated NYU Press,1983). In a memo written just before theend of World War II in Europe, WinstonChurchill blamed the ascendancy ofHitler largely on American pressure todrive the Habsburgs out of Austria andthe Hohenzollems out of Germany:"By making these vacuums we gavethe opening for the Hitlerite monster tocrawl out of its sewer onto the vacantthrones" (111). The U.S. "Senate neverdid a better day's work than when itrejected the Treaty of Versailles," saysBuchanan (110).

His book offers many examples of"uchronia," counterfactual or what-ifhistory (which I discussed in Liberty,September 2009). Agreeing, I think,with most historians, Buchanan arguesthat almost nobody in power wantedWorld War 1. What if Kaiser Wilhelm IIhad not waited until too late to send hisdesperate appeal for peace to his cousinCzar Nicholas II? A petty and almostaccidental quarrel between Austria­Hungary and Serbia impinged on acontagion-prone tissue of alliances andunderstandings, including Germany's

careless expression of support forAustria-Hungary, as well as countries'just-in-case plans for mobilization andwar (such as Germany's Schlieffen Planfor getting at France through Belgium).

Buchanan suggests that World WarII, which was in a sense a resumption ofWorld War I, was also unnecessary. Itwas not a fated response to Axis aggres­sion and so was not the "good war" ofstandard opinion, not in its origin, any­way. I am not sure that I am convinced.

Buchanan maintains that Hitler,villain though he was, was not aimingat world conquest or even at reduc­ing Britain and France to vassalage. Headmired the British Empire and, likesome German statesmen before WorldWar I, wanted Germany and Britain torecognize each other as natural allies.But he did want to undo the inequitiesof Versailles, which had even barred acustoms union between Germany andthe Austrian rump of Austria-Hungary.He wanted to absorb the Germaniairredenta wherever German-speakingmajorities apparently so desired. Theseincluded Austria, the Sudetenland of

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"Don't be too impressed - he got it for surrendering."

November 2009

Czechoslovakia, Danzig, and at leastpart of the Polish Corridor. He did notwant all currently or formerly German­speaking territories. According toBuchanan, he was willing to leaveAlsace-Lorraine to France and theformerly Austrian South Tyrol (AltoAdige) to Italy, even accepting the cul­tural Italianization of German-speakerswho chose not to move away. Not oncein the book does Buchanan find anyNazi aspirations for mainly German­speaking Switzerland. Besides wantingto absorb German-speaking territorieswhere the inhabitants desired to beabsorbed, Hitler did hope to carve outLebensraum for Germans in the East,presumably in Russia - also riddingthose territories of Jews. He appar­ently expected Poland to be a satelliteally in this drive toward the East. Butsuch plans fall short of a drive for worlddomination. Buchanan implies that theWestern powers would better havestood aside if the two totalitarian dicta­torships fought each other.

Buchanan suggests that Hitler pre­ferred diplomatic to military triumphs.He was an opportunist. He remilita­rized the Rhineland in 1936 in violationof treaties, when, as he himself recog­nized, a bit of firmness by Britain andFrance would have stopped him. InMarch 1939, without a shot, he occu­pied the rump of Czechoslovakia, whichhad been left defenseless by the fron­tier adjustments permitted by the Westat Munich in 1938. Poland, jackal-like,seized part of Czechoslovakia whenHitler's dismemberment of it providedthe opportunity; but on Sept. 1, 1939, he

IlolielPeatePrize

invaded Poland, opportunistically butmistakenly believing, from the spine­lessness of the Western powers thus farexhibited, that an ambiguous Britishguarantee to Poland meant nothing. Hedid not expect a world war.

On March 31, 1939, exasper­ated by Hitler's occupation of rumpCzechoslovakia and by his seizureof formerly German Memel fromLithuania - another bloodless victory- Prime Minister Neville Chamberlainhad announced in Parliament thatBritain would guarantee the indepen­dence of Poland. He had not said thatit would guarantee Poland's frontiers.Actually, according to Buchanan, hewas vaguely suggesting that Polandcompromise with Hitler on the Danzigand Corridor issues. As for dishonorin not carrying through on the guar­antee, in Buchanan's view the real dis­honor came in Chamberlain's makinga guarantee that was impossible to ful­fill. (Here, as elsewhere in this account,I do not promise a slavish paraphraseof Buchanan; rather, I offer an obviousinterpretation of his words.)

Buchanan does not clearly say whatshould have been done. My guess isthat he thinks Hitler should have beenstopped much earlier, at best beforeeasy triumphs had emboldened himand anyway before he became readyfor war. Given those great mistakesof omission, however, he implies thatBritain should have recognized the sit­uation in March 1939 and bought timewith further appeasement, if only on theDanzig and Corridor issues. As thingsworked out, the guarantee to Poland,

and its consequences, left the worldwith a destructive war and Poland witha half century of Nazi and then Sovietdomination. Buchanan quotes severalother historians who also see the guar­antee as a mistake. Britain might betterhave remilitarized more quickly so as tosupport a policy of containment.

Significantly, among the peoplewhom Buchanan thanks for help orinspiration is the architect of America'spost-World War II containment pol­icy, who sent him a letter applaudinghis treatment of similar themes in anearlier book. "Embracing the wisdomof George Kennan," Buchanan says,"America pursued a policy of contain­ment and conscious avoidance of aThird World War" (417).

Buchanan says little about the warin the Far East. Several pages do reviewwhat Australia's Prime Minister BillyHughes called "an act of breathtakingstupidity" - the Washington NavalConference of 1921-22 (116). Before andat the conference, Britain appeased theAmericans by giving up its overwhelm­ing naval power and its 20-year-old alli­ance with Japan. Surprisingly however,Buchanan fails to discuss the severeAmerican sanctions against Japan ­probably justified but still provocative- that preceded Pearl Harbor.

Buchanan does offer several percep­tive character sketches. Not all countriesand leaders, Hitler and Stalin excepted,were as villainous or as virtuous as theirstandard reputations say. While notbelaboring Woodrow Wilson's flaws,Buchanan says enough to reinforcemy view that on a list of the worst U.S.presidents, Wilson would be a strongcandidate for top honors. George W.Bush also draws some well meritedcriticism. And despite one's sympa­thy for Czechoslovakia and Poland inthe period that Buchanan studies, theimmediately pre-war leaders of thosecountries, to judge from his descrip­tions, behaved recklessly and wereno saints. Hitler was a worse villain,of course; and Buchanan reviews hisatrocities, including atrocities againstthe Jews. Although he finds the secondworld war "accidental," like the first,Buchanan in no sense comes across asan apologist for Hitler. Reasonably,however, he considers Stalin an evenmore murderous villain.

Buchanan attends more to Churchill

40 Liberty

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than to Hitler. He does not disparageChurchill's heroic leadership during thedark days of 1940, when Britain stoodalone, nor his then-unfashionable pre­science about Hitler during the 1930s. (Istill have "The Second Brush Up YourGerman," by J.B.C. Grundy, publishedin London as late as 1939. The les­sons feature a British family travelingin Germany who admire Nazi institu-

Buchanan maintains thatHitler was not aiming atworld conquest or even atreducing Britain and Franceto vassalage.

tions and policies and even uniforms.)Churchill was, however, something ofa chameleon. He had switched politicalparties several times. In 1919 he urgedwar against the new Bolshevik regimein Russia; by the time of the Tehranconference in 1943 and Yalta in 1945, hewas fawning disgustingly over Stalinand ready to abandon most of EasternEurope to him, even though a commit­ment to protect Poland had triggeredBritain's entry into the war: His realistic"Iron Curtain" speech came belatedly,in 1946.

Churchill distinguished betweensuperior and inferior races, evidentlywilling to carry "the white man's bur­den." He wanted to preserve the BritishEmpire, while, ironically, his wartimeally Roosevelt wanted to see it disman­tled. Churchill also took an interest ingenetics, wanting to deter mentallyinferior people from breeding. His rac­ism was only partial: he was not an anti­Semite but rather a Zionist.

Churchill was no military genius,even though he served as First Lordof the Admiralty from 1911-15 andagain from 1939--40. He devised theGallipoli campaign of 1915, whichturned out to be a bloody Allied disas­ter. He opined that submarines were oflittle use in warfare and that airplanescould do little damage to battleships(contrary to U.s. and Japanese experi­ence later at Pearl Harbor in 1941 and

Midway in 1942). But Churchill wasan ingrained war hawk. He relishedhis military experiences in India, in theSudan (where he rode in the last cav­alry charge of the British Empire), andin the Boer War. A few days before warbroke out in 1914 he wrote to his wife,"Everything tends toward catastrophe& collapse. I am interested, geared upand happy. Is it not horrible to be builtlike that?" (28). During the war, as FirstLord of the Admiralty, he wrote: "MyGod! This is living history.... I wouldnot be out of this glorious delicious warfor anything the world could give me"(66 and picture caption).

After the Germans had laid downtheir arms and surrendered their war­ships in 1918, he successfully advo­cated continuing the Allied "starvationblockade" for some months, despite thehumanitarian pleas of Herbert Hoover.His aim, he said, was to "starve thewhole population - men, women,and children, old and young, woundedand sound - into submission." In theHouse of Commons, March 1919, heexulted: "We are enforcing the blockadewith rigour, and Germany is very nearstarvation" (79).

Even in citing remarks such asthose, Buchanan's book does not readlike an ideological polemic or set ofpersonal denunciations. Buchanan doesnot pretend to be a professional histo­rian; he draws on published, not archi­val, materials. Nevertheless, expositorywork such as his deserves respect, evenadmiration. Without dealing in pal­pable exaggerations, it makes historyinteresting and, so far as its subject per­mits, enjoyable. Buchanan writes in astraightforward, uncomplicated, lucidstyle that other writers would do wellto imitate. True, he uses a great manydirect quotations, some of them lengthy,a practice that might seem reminiscentof an undergraduate term paper; yetthey are well chosen and fit smoothlyinto the text.

I cannot vouch for the accuracy ofall of Buchanan's historical details andquotations, let alone the soundness ofhis sweeping judgments. Almost everylong nonfiction work presumably com­mits a flew slips. Buchanan makes anambiguous remark about "Napoleon'sforeign minister Talleyrand" sittingwith leaders of the victorious coalition atthe Congress of Vienna in 1814-15 (73).

November 2009

Talleyrand was no longer Napoleon'sforeign minister. Still, the book's manysources and its detailed documentation- 63 pages of citations (not discursivenotes) and a 13-page bibliography ­suggest reliability.

Ten full-page maps help carry thestory. Sixteen pages of photographs pic­ture the main actors, all captioned withapt and some with ironic quotationsby or about the subjects. One pictureshows Mussolini and Hitler meeting inVenice in 1934, labeled with Mussolini'sobservation: "What a clown this Hitleris." Yet Hitler is wearing nonde­script civilian clothes, while Mussoliniappears in high boots, flared britches,and the rest of a pretentious militaryuniform. Neville Chamberlain appearstriumphantly waving a paper at HestonAerodrome on returning from Munichin 1938: "I've got it! I've got it! Here is apaper which bears his name" - Hitler'sname. Regrettably, there are no photo­graphs of Woodrow Wilson and otherallied leaders on their hands and kneesporing over the big map of the Europethat they were recarving at Versailles.Nor are there pictures of the ambitiousspokesmen of various nationalitieswho pressed their desires at WoodrowWilson's Paris hotel in 1919.

My strongly favorable opinion ofthe book may not be typical. It fasci­nated me as a review of then-currentevents that I had followed since Hitler

On a list of the worst U.S.presidents, Woodrow Wilsonwould be a strong candidatefor top honors.

took power in January 1933, when I waseight years old. But the book shouldappeal to other readers for its story toldin a gripping way.

The note "About the Author" atthe end of the book calls Buchanan"America's leading populist conser­vative." He does not openly push thatideology, however; and without claim­ing to do so, he teaches welcome les­sons for libertarians. It may be no

Liberty 41

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"Arthur Seldon: A Life for Liberty," by Colin Robinson.Profile Books, 2009, 220 pages.

Arguing forCapitalism

November 2009

coincidence that Joseph Stromberg andDavid Gordon, both associated with thelibertarian Ludwig von Mises Institute,are among the people thanked for help.

Most libertarians are skeptical aboutforeign involvements and guarantees.Buchanan argues along the same lines,making national self-interest the primeconsideration in foreign policy andurging that war be avoided wheneverreasonably possible. (Some call this"appeasement.") We should not pre­sume to meddle in the affairs of othercountries, not even to implant "democ­racy" (a word much abused by people'spropensity to cram all sorts of goodthings into its meaning). We shouldheed John Quincy Adams' warning

Gary Jason

As free-market economics appearsto wane in many parts of the world,especially the United States, a newlypublished book offers some succor.Colin Robinson has written an excellentbiography of Arthur Seldon, the bril­liant economist who played a centralrole in formulating the neoliberal eco­nomic policies that Margaret Thatcher'sgovernment instituted a generationago. Both as a writer and as an editor,Seldon contributed greatly to defend­ing and modernizing classical liberal­ism. His writings (recently collectedand published through the LibertyFund) fill seven volumes. As an editorand editorial director for the Instituteof Economic Affairs (lEA), arguably thegreatest among classical and neoliberal

42 Liberty

and not go forth looking for dragons todestroy.

Buchanan's judgment may beflawed, but his arguments deserveattention, especially by persons whomay wind up disagreeing. Myself, Idon't condemn all programs of collec­tive security against aggression (norperhaps does Buchanan), but let's berealistic. It is absurd to recruit countriesremote from the Atlantic Ocean into theNorth Atlantic Treaty Organization, asAmerica has done. And if politicians'ignorance and arrogance of power pre­vail as much in international affairs asBuchanan suggests, why suppose any­thing different about their handling ofdomestic affairs? 0

thinktanks, he edited writers such asMilton Friedman and Friedrich Hayek.

Seldon was born Abraham Margolisin 1916, in anything but wealthy circum­stances. His parents, Masha and PinchasMargolis, were poor Jewish immigrantsfrom Russia, living in the East End ofLondon. He was the youngest of fivechildren, and his parents died whenhe was two years old. He was taken inby various foster homes before beingadopted by another Jewish immigrantcouple, Eva and Marks Slaberdain. Hegrew up in a household that respectedlearning, self-improvement, and com­munity-based charity - values thatinformed his later work.

When Seldon was 18, he won ascholarship (a munificent 80 pounds ayear!) to attend the college of his choice.(Robinson doesn't note this, but Seldon

was thus able to go to college because ofa voucher program, the kind of programhe would later advocate.) In a decisionthat helped set his course for life, hechose the London School of Economics.

At this time, the economics depart­ment was well stocked with classical lib­erals, most famously Friedrich Hayek,Arnold Plant, and Lionel Robbins,along with Ronald Coase as lecturer.Hayek and Coase would be recipientsof the Nobel Prize. Seldon studied atthe LSE from 1934-37, graduating withfirst-class honors. He was appointedresearch assistant to Arnold Plant andheld the appointment until WorldWar II broke out. It was during thistime that he changed his name from"Slaberdain" to "Seldon."

After his wartime service, Seldonconsidered an academic career, butchose instead a career in the businessworld that permitted him to pursuehis academic interests. He became theeditor of trade magazines, first for thedepartment store industry, then for thebrewing industry. It was a fortunatechoice. At the department store maga­zine he met his future wife, Marjorie;and his journalistic experience led to hisselection in 1957 for his role at the thenrecently established lEA.

He had a lot to offer. At 40, he wasat the height of his energy, with a solideducation in classical economics and adecade of experience in business. Andthe job had a lot to offer him. He hada chance to support his family whilewriting and helping others write pub­lications that crafted free-market poli­cies, many of which would be adoptedin the UK and beyond.

Robinson's book gives the readera wealth of biographical informationabout Seldon, much of it contributedby his friends and family. But I foundespecially useful the last four chapters,which explore his political and eco­nomic worldview.

Seldon developed a view of capi­talism that was a synthesis of his deepworldly experience and his wide aca­demic learning. This view fused classi­cal economics, Austrian economics, andpublic choice theory.

In a free-market system, as classi­cal liberal economists had recognized,consumers have the freedom - "thepower of exit," as Seldon liked to callit - to switch from producers whom

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Read:Arthroscopic Politics(and other good stuff)

they don't like to producers whomthey do. Moreover, as Hayek and othereconomists of the Austrian school hadpointed out, the free market imple­ments a discovery process that allowsentrepreneurs to explore new avenuesof production and expand existing pro­duction methods, in a spontaneous,self-correcting way, facilitated by thelanguage of pricing. Seldon elucidatedthis system, adding to it a theory of pub­lic choice. Public choice theory (amongwhose influential early advocates wereJames Buchanan and Gordon Tullock,lEA contributors) recognizes that gov­ernments are complex organizationsrun by self-interested individuals,though with monopolistic power thatleaves individuals little if any power ofexit.

Seldon's ideas, synthesized frommany sources, enabled him to articu­late, in an unusually clear and compel­ling way, the virtues of capitalism, thevices of government intervention, andthe policies that might possibly reformthe welfare state. His two most influen­tial books were the shorter "CorrigibleCapitalism, Incorrigible Socialism," andthe longer "Capitalism," both publishedin the 1980s, and both powerfully per­suasive. Capitalism, he argued, embod­ies incentives natural to human beings,and thus maximizes efficiency, flexibil­ity, and freedom. Socialism, because ittries to appeal to incentives that aren'tnatural, does the reverse.

Seldon maintained that the fourfamous problems of capitalism ­inequality, monopoly, worker alien­ation, and negative externalities- are all easily capable of remediation.Inequality of income can be addressedby programs such as earned incometax credits. Monopoly is corrected bythe marketplace: any private companythat achieves a temporary monopoly ina free market will soon see competitorscome into existence, unless the gov­ernment interferes. Alienation can bereduced by worker ownership of cor­porate stock. (And, I would add, thefree market weeds out companies withpoor working conditions, as other com­panies compete for good workers.) Asfor negative externalities (the unfavor­able effects of other people's actions),they are present - and starkly evident- in socialist systems as well as capi­talist ones, and clearly defined property

rights will keep them in check.But the defects of socialism

ignorance, inefficiency, social conflict,monopoly, coercion, corruption, andsecrecy - are basically incurable. Thereis no way outside of a free market forwould-be managers to set appropriateprices and adjust production, and theignorance of managers inevitably leadsto inefficiency. Social conflict is alsoinevitable, because minority views areunwelcome in a socialized order; andso is monopoly, because the essence ofsocialism is the state's destruction ofcompetition. Add to the list of inevi­tables both coercion and corruption.Coercion is needed to keep the citi­zenry compliant. Corruption resultswhen markets are driven underground,protecting themselves by bribing theeconomic rulers - who after all have astrong incentive to keep many of theirown actions secret.

In short, Seldon was a remarkablefigure. His clear arguments and com­pelling evidence allowed him to reach awide audience, and to convince them ofthe argument for economic liberty. AsRobinson nicely puts it,

November 2009

His influence came not only from thepower of his ideas but from his abilityto express them succinctly, withoutresort to technical jargon, in terms that"opinion-leaders" could understand,and in his ability to draw conclusionsfor policy. He was not only a prolificwriter, with one of the major worksof classical liberalism of recent times("Capitalism") to his credit, he wasalso a splendid editor of the works ofothers, with the ability to formulate apublishing programme with a clearpurpose, to find authors to carry itthrough and to make their work moreunderstandable (p. 147).

Seldon was also one of those rarethinkers who understand "the big pic­ture" of economics and the contempo­rary state. In this regard, it may havebeen helpful that he did not pursuea Ph.D., with its inevitable focus ontechnical problems and sophisticatedmathematics. It took a broad thinkerto predict in 1980, as Seldon did, that"China will go capitalist. Soviet Russiawill not survive the century. Labouras we know it will never rule again." Iknow Ph.D.s who cannot grasp thosefacts, even today. D

Liberty 43

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November 2009

UCauses of the Crisis," a symposium in Critical Re­view: A Journal of Politics and Society, volume 21,numbers 2 and 3 (2009), ed. Jeffrey Friedman. 272 pages.

Bubble Bobble

Bruce Ramsey

The Great Recession has not beena good time for libertarians. The Leftcrows that the market has failed.Deregulation failed. The libertarianGreenspan, who could not see a bub­ble until it popped in his face, admittederror. Feeling the sting of derision, lib­ertarians have turned to their own the­ories, aiming for an exit door labeled"Not the Market."

Libertarian economists of theAustrian school, who have some wis­dom about recessions, reassure us; forthe purest Austrians the cause is neverthe market, because their theory of themarket doesn't have any recessionsin it. Their theory is that investors aremisled by the central bank, which mis­prices credit, making it too cheap, andthat they rationally overinvest andcreate a boom. The implication is thatif there were no mispricing of credit,there would be no boom, and thereforeno bust.

And yet we have had booms andrecessions, and have been having themfor 200 years, whether we had a centralbank or not.

That the Austrian theory has its fin­ger on one of the causes is certainly truethis time. But the history of markets,and of economic enthusiasms, belies theidea that the causal agent is always thecentral bank. Enthusiasms begin in themind of man. They become fads, andthey may affect lenders as well as bor-

44 Liberty

rowers, whether credit is mispriced ornot. Capitalism has its ups and downsbecause capitalism allows people tomake their own decisions, and peopleare prone to act in herds.

Market analyst and historian JamesGrant said it well in "The Trouble withProsperity" (1996):

Cycles in markets are inevitable, irre­pressible, and indispensable. Even ifsome all-knowing central bank couldcreate a state of economic perfection- measuring out growth in ideal, non­inflationary doses, neither too muchnor too little - human beings wouldrespond by overpaying for stocks andbonds. In this way they would restoreimperfection.

Grant, who makes his living writ­ing about the credit markets, wrotethat book during "the great modera­tion," the Volcker-Greenspan periodof the '80s and '90s, in which upturnswere extraordinarily long and down­turns mild and short. His book was awarning that the financial firmamentwas still subject to earthquake. He wasright. Crises are part of capitalism. Buttheir details differ and require specificexplanations. Particularly the recentone. Jeffrey Friedman has a theoryabout the causes of the Crash of 2008.Friedman is an academic in political sci­ence, and an unusual one. He is a freemarket supporter who bases his liber­tarianism on an argument from humanignorance and the inherent limitationsof democratic rule. He rejects natural­rights theory - he has gone to lengths

to poke holes in it - but he ends up inmuch the same place as the folks withwhom he argues. And that makes himan interesting guy.

He is not an economist, economichistorian, or financial-market partici­pant. As editor of the journal CriticalReview, he is in the position of lettingothers analyze the financial world andjudging their work. In the latest, 272­page issue, he offers 11 essays by 21authors, most of them professors orgraduate students of economics or busi­ness and finance. They are from smallcolleges and big universities, includingStanford, MIT, NYU, and Columbia.Some are from Europe; one is from theNational Bank of Poland. They pointthe finger of blame at the Fed's mone­tary policy, the Basel accords, deregula­tion, Fannie Mae and Freddie Mac, theCommunity Reinvestment Act, creditrating agencies, and executive bonuses.An essay on credit default swaps pointsthe finger away from them.

In his own essay, Friedman says thathis contributors' explanations "can, inthe main, be fit into a larger mosaic withhardly any friction between the pieces."He is being diplomatic here. He is quitediscriminating in the pieces he choosesfor his mosaic. He takes a good deal morefrom NYU professors Viral Acharya andMatthew Richardson, who hang theirtheory on the Basel accords, than fromColumbia University Professor JosephStiglitz, who blames deregulation andthe Republicans. Friedman may be noexpert on finance, but he is an expertat argument, and as editor of CriticalReview he is in a position to make themost of that ability.

What crashed in 2008, Friedmansays, was a system of regulated capi­talism. The question he wants to reach"is whether it was the capitalism or theregulations that were primarily respon­sible." I wouldn't frame the question inquite that way. When I hear the word,"responsible," I think of people, not sys­tems. I would say the responsibility forthe failure of Lehman Brothers lies inthe people who ran it. Still, capitalismis a system of rules. Most of the ruleshave been written by the government- some with the support, some withthe acquiescence, and some with theopposition of capitalists. In any case, ifthey protect irresponsible behavior, or,especially, if they encourage it, there

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"You used to be an investment consultant, Fred - what should I do with this quarter I found?"

is a systemic problem. This is whatFriedman is after.

The story of the crash starts with thebubble in mortgages. It was created bylenders lowering their standards. By2006 the average subprime loan (Le., aloan to a borrower with weak credit)required just 50/0 down. Lenders alsoeased up on qualifying terms: in manycases they stopped verifying the bor­rower's income. A gardener could buyan $800,000 house if he claimed to owna golf course. At the same time, 30-yearmortgage rates fell to 5.25°1<> - the low­est rate in more than 50 years. Peoplehad never seen such a deal in all theirlives, and they responded. They createda bubble in house prices.

Also, by 2006 more than 900/0 of allsubprime mortgages were adjustable­rate. Washington Mutual offered the"I% OptionAdjustable Rate Mortgage,"which allowed a buyer to pay a 1°1<> ratefor the first five years, while an internalinterest rate allowed the amount thatwas owed to keep piling up. At the fifthyear, the loan reset, with a new, higherloan amount and a market rate of inter­est. This was a gambler's product. I'veheard it blamed for much of the bubblein Southern California.

The lenders sold truckloads of dodgypaper to Fannie Mae and Freddie Macand to investment banks such as BearStearns and Lehman Brothers. Theseinstitutions packaged the loans intobonds, most of which were rated tri­ple-A and sold to institutional buyers.Finally, companies such as AmericanInternational Group created a deriva­tive product called a credit-defaultswap: loss insurance on the bonds.

All this was the thing that collapsed.Who is to blame? Critical Review hasessays blaming Congress, for passingthe Community Reinvestment Act andpromoting Fannie Mae and FreddieMac; and the Federal Reserve, for keep­ing credit too cheap for too long. ToFriedman, each makes up part of theanswer, but they are foundation thingsonly. He focuses on two other matters.

First, the rating agencies, Fitch,Moody's, and Standard & Poor's. Theyrated the bonds and stamped triple­A, the highest quality, on bonds laterlabeled toxic. Friedman lays much ofthe blame for the disaster on the mis­rating of bonds, and I think he is right.Why did it happen? Others have argued

that bond raters have a structural prob­lem. They are paid by the institutionsthey rate, and thus have an incentiveto overlook financial warts. Friedmanargues that they have a different struc­tural problem: the federal govern­ment licensed them so that there wereonly three companies doing the work.Further, government has effectivelyrequired bond issuers to buy their ser­vices. Collectively, they have a guar­anteed market; they don't have to do agood job in order to get paid.

I don't like protected oligopolies,and I think Friedman has somethinghere. But I'm not convinced that itbears the weight he wants to put on it.Oligopoly power will have some effecton the culture of a company - a badeffect - but it is not a complete explana­tion for a disaster like this. To me, beingpaid by the issuer seems a more directproblem, but that doesn't satisfy either.Both these conditions have existed fordecades. They are background.

Reading the essays in CriticalReview, and other literature on the sub­ject, the idea I get is that the raters had asystem based on formulas which, withincertain parameters, worked. When youhave something that works and makesyou money, you keep doing it. It takesunusual intelligence and discipline toask: what if this stops working? What ifwe are confronted with the unexpected?You'd think a company as important asLehman Brothers, Standard & Poor's, or

November 2009

Washington Mutual would have some·one asking those questions. Maybe theydid, and they didn't listen to him. Therewere people in the financial world (JimGrant was one) who predicted big trou­ble. Grant had been a bear for so manyyears that people discounted what hesaid. But there is always a reason notto listen, especially if you're makingmoney.

Second, Friedman focuses on thefreeze-up in the commercial banks.This happened because the banks hadso much invested in mortgage-backedbonds. Why so much? Two papers inFriedman's volume point to the Baselrules, an international standard for banksafety. When a bank makes an ordi­nary loan, the Basel rules require it toset aside capital equal to 8% of the loan.Mortgages, being backed by real prop­erty, are deemed safer; their set-asideis 4%. A bond backed by a diversifiedpackage of mortgages is deemed saferyet. Its set-aside is only 1.6%. The paperby Acharya and Richardson argues thatcommercial banks loaded up on mort­gage-backed bonds "to avoid mini­mum-capital regulations."

But why did bankers do this?Acharya and Richardson suggest thatthey took extraordinary risks becausethey filled their pockets that way. Banksearned more money and paid senioremployees higher bonuses. Friedman isunconvinced. If it were simply a matterof greed, he maintains, bankers would

Liberty 45

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Notes on Contributors

November 2009

have bought lower-rated double-Abonds that qualified under the Baselrules and yielded more than a triple-Abond of the same type. But among mort­gage-backed bonds the bankers boughtalmost exclusively triple-A-rated paper,which was supposed to be of the high­est quality. "They, like everybody else,believed in the accuracy of the triple-Aratings," Friedman writes. "They wereignorant of the fact that triple-A ratedsecurities were riskier than advertised."Maybe. No doubt some were ignorant.But maybe also the prospect of bonusesamounting to hundreds of thousandsor millions of dollars made bankers less

(Baloo is a nom de plume of Rex F. May.

David Beito is an associate professor ofhistory at the University of Alabama, andauthor of Taxpayers in Revolt and From Mu­tual Aid to the Welfare State.

Jayant Bhandari is a Vancouver (Canada)based writer.

Doug Casey is a contributing editor ofLiberty.

Scott Chambers is a cartoonist living inCalifornia.

Stephen Cox is a professor at UC SanDiego. His most recent book is The NewTestament and Literature.

Eric D. Dixon is editor for the Show-MeInstitute, Missouri's free-market thinktank.

Andrew Ferguson is a contributing edi­tor of Liberty. At present he is working ona biography of science-fiction writer R.A.Lafferty.

Doug Gallob is a composer and musictechnologist living in Denver.

Jon Harrison is a contributing editor ofLiberty.

Gary Jason is a contributing editor ofLiberty.

Ross Levatter is a physician living inPhoenix.

Bob Marcus is a long time reader of Lib­erty, an entrepreneur, CEO, world traveler,and libertarian living in San Francisco.

Jamie McEwan is a canoe bum and some­times author.

Bill Merritt is a sometimes-novelist livingin Gaborone, Botswana. If you are offendedat what he has to say, you are welcome totry to pursue him through the Botswanalegal system.

46 Liberty

than eager to look closely for reasonsto stop doing what they were doing.Maybe their reason for buying triple-Abonds was not only to. safeguard theiremployer but also to .... insulate them­selves from criticism.

I put the choice to my wife, Anne.Years ago, she was a vice president atCitibank. Whose explanation mademore sense, self-protection or honestmistakes?

"You're just making up theories,"she said.

Her thought is more like Friedman's:ignorance. But it was not an earnestignorance. The bankers she remem-

JBruce Ramsey is a journalist in Seattle.

Ted Roberts' humor appears in newspa­

pers around the United States and is heard

on NPR.

Timothy Sandefur is a senior staff attor­

ney at the Pacific Legal Foundation, which

represented the Griswolds, Janet Auxier,

Mohammed Ahmad and Jeanette Ban-

zon, and the Sterlings. He is the author of

Cornerstone of Liberty: Property Rights in 21stCentury America.

Jane S. Shaw is president of the John

William Pope Center for Higher Education

Policy.

Jo Ann Skousen is entertainment editor of

Liberty. She lives in New York.

Fred Smith is president of the Competi­

tive Enterprise Institute.

Laurence M. Vance writes from Pensacola,

Florida. He is the author of Christianity andWar and Other Essays Against the Warfare

State.

Jim Walsh is an assistant editor of Liberty.

Marlaine White is a former government

attorney completing a Ph.D. in international

relations and comparative politics at the

University of Maryland.

Jeff Wrobel is an engineer who blows up

missiles in the Marshall Islands.

Leland B. Yeager is Ludwig von Mises

Distinguished Professor Emeritus of Eco­

nomics at Auburn University.

bers were not much like the entrepre­neurs posited by Austrian economics.They were employees - some politicaland backbiting, some freeloading, mostthinking of their position more than thebank's, and all willing to hop to anotherbank. The investment guys were notengaging in grand strategy. They weredressing up the balance sheet so thatthe quarterly numbers looked good.Most of them had been doing their jobsfor less than ten years.

Economics has its limits. It's true, asthe economists say, that incentives mat­ter. They matter a lot. But, as Friedmansays, economists often overlook the factthat knowledge, or the absence of it, alsomatters. Feelings, beliefs, and all theother components of the human psychematter too. Most people are not profitmaximizers except in the tautologicalsense of wanting what they want. Norare they fully informed.

Bankers are also subject to bad ideas,and to fads.

I had an interview with a man whohad been one of the top three executivesof Washington Mutual, a bank that wasseized by the FDIC during the crisis andpalmed off to J.P. Morgan Chase. I knewthis banker from the 1980s, when I wasa financial reporter for a daily newspa­per. If I had a difficult question aboutcredit markets, he was the man I'd call.He knew the bank and the markets. Heunderstood regulations and regulators,having been a regulator himself. Hewas the image of a smart, solid, sensi­ble mortgage banker. I asked him whathad happened. "We all drank the Kool­Aid," he said.

Is that a fault of capitalism or ofpeople? If you say it is the fault of peo­ple, remember that the Marxists usedto excuse the failures of communismby saying that people were not goodenough for it. We laughed at themwhen they said that, so let's not say itourselves. Let's admit that capitalism,which allows people to make their owneconomic decisions, allows bad deci­sions as well as good ones. It allowspeople to make bad decisions en masse,and have a bad outcome.

As libertarians and classical lib­erals, let's also keep pointing out, asFriedman does repeatedly, that empow­ering a central regulator to manage ourdecisions has its own set of risks, andusually bigger ones than not doing so.

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Jllnglourious Basterds," directed by Quentin Tarantino. Wein­stein/Universal, 2009, 152 minutes.

BeyondAllusions

An Alan Greenspan, despite his hard­money sympathies, may set the interestrate too low, and invite a bacchanalia.A Barney Frank, envisioning a world inwhich every American can owe FannieMae money on his house, may be pur­suing goals other than your own. And,as Friedman points out at the end of hisessay, a layering-on of regulations overthe decades may create unintendedside effects, just as several drugs, pre­scribed by doctors at different times fordifferent purposes, may together makea patient violently ill.

Or, to adopt Warren Buffett's meta­phor, the tide went out, and the mort­gage originators, the commercial

Jo Ann Skousen

In one of his early, low-budget films,Alfred Hitchcock cast himself in twominor roles to avoid paying an extraactor, and a tradition was born. Hisfamous walk-ons continued in almostevery film, first because he supersti­tiously believed it contributed to hissuccess, and later as an inside joke heplayed with his fans. Searching for hiscameo appearances became such anobsession with viewers that it often dis­tracted them from the story, so Hitchbegan inserting his appearances early inthe film to get them out of the way andlet the audience settle into the story.

Director Quentin Tarantino hasdeveloped a similar trademark in hismovies, patterning many of his scenesafter iconic moments in classic filmsand naming his characters after famous

bankers, the investment bankers, thebond raters, and the insurance compa­nies were all swimming naked. "Weneed regulation!" people say - andyes, damn right;· their doings need tobe made regular, made rational andsane and proper. But made regularby whom? Many of the bare bottomsbelong to the government.

Friedman ends his piece by say­ing: don't expect too much of regula­tors. This is particularly true, he argues,if the bad decisions in the private sec­tor are mistakes rather than cheating.Cheating can be obvious. For cheatingwe have cops. Mistakes are obviousonly in hindsight. D

film figures. Fans love identifying theclues, and Tarantino loves giving themsomething to look for. Even the mis­spelling of this film's title is a game heplays, perversely refusing to explain itsmeaning in interviews - a tactic thatgives every fan's guess an equal chanceat being correct. (I think it's a reflectionon the backwoods Tennessee roots ofthe main character, Aldo Raine.)

Set in France during World War II,"Inglourious Basterds" opens like aspaghetti western with its wide wind­swept vista, its whistling sound track,a young girl hanging clothes on theline, a bad guy seen arriving in thedistance, and a cat-and-mouse inter­change between this menacing visi­tor (Col. Landa, played by ChristophWaltz) and the deceptively calm farmer(Denis Menochet). Menochet is rivetingas the farmer cornered in his own house

November 2009

in this opening scene, and Waltz is thequintessential Nazi officer throughoutthe film, suave, sinister, and psycholog­ically sadistic.

During their conversation, Landasays, "So they call me 'Jew Hunter,'"with a self-satisfied smile, remindingfilm buffs of the recurrent joke, "So theycall me Concentration Camp Erhard" inMax Lubitsch's excellent World War IIfarce "To Be or Not to Be" (1942) withJack Benny and Carole Lombard. (ThereI go, showing off that I "got it.")

And that's one of the problemswith Tarantino's precocious technique.Film references, both subtle and pro­nounced, permeate his films, incitingself-satisfied chuckles from show-offsin the audience that can be just as dis­tracting as watching for Hitchcock toappear. My recommendation? Justwatch the movie. It's a fabulous film,tense and engrossing, with remarkableperformances by a sometimes unlikelycast (Mike Myers plays it straight asBritish General Ed Fenech, and RodTaylor is almost overlooked as WinstonChurchill), including Brad Pitt at hisbrassiest best. So sit back and enjoy theshow - and save the game of "Where'sWaldo" for a second or third viewing.

Several story lines develop and inter­sect in this taut, entertaining thriller,with Col. Hans Landa as the thread thatties them together.

Aldo Raine (Brad Pitt - and yes,that's a reference to both Aldo Ray andClaude Rains) is a likeable, wisecrackinglieutenant in the Army Special Servicesleading a "Dirty Dozen"-like assassi­nation squad of Jewish-American Nazikillers. A moonshiner from Tennessee,Raine speaks with a slow drawl butreacts with a quick draw. Like the "Bad"assassin in Leone's "The Good, the Bad,and the Ugly," he's open to negotia­tion, but he always keeps his word. Pittis exuberant as Raine, thoroughly com­mitted to his cause and over the top inhis delivery. He owns every scene.

Shosanna (M~lanie Laurent) is ayoung Jewish woman passing as aFrench cinema owner in Nazi-occupiedParis. Laurent's Shosanna is cool,haughty, and mature beyond her years.She survived an attack in which herfamily was killed by Nazis, and has anunderstandable hatred for anything andanyone German. WhenJoseph Goebbelscomes to town looking for a theater in

Liberty 47

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"The Creature from Jekyll Island: A Second Look at theFederal Reserve," 4th edition, revised, by G. Edward Griffin.Amer Media, 2009, 608 pages.

Uncle Sam'sMoney Machine

November 2009

which to premier his latest propagandafilm (a film featuring a German hero ina bell tower, reversing a famous scenefrom "Saving Private Ryan"), Shosannahatches a devilish plot.

Bridget von Hammersmark (DianeKruger) is the beautiful, daring, Germanactress working with the Allies as a dou­ble agent, a la Carole Lombard's charac­ter Maria Tura, in "To Be or Not to Be."(Stop me!) Like Maria Tura, she mustuse all her acting skills to remain calmand lively when her meeting with theAllies and Nazis doesn't go as planned.This is probably the best scene in afilm filled with tension-packed scenes.Kruger is radiant as the sultry, playful,and quick-thinking von Hammersmark.In fact, the entire cast shines.

Tarantino eschews the modern cine­matic technique of using jerky handheldcameras in favor of the more traditionalstabilizing dollies and cranes. Manyof his scenes are wide and beautiful,whether their location is a Germanforest, a French hillside, an ornatemovie theater, or a basement tavern.His close-up ·shots are deliberate and

Doug Gallob

Is "The Creature from Jekyll Island"a horror story? Emphatically yes. Theleading character in Griffin's book isevery bit as shadowy as Bram Stoker'svampire or Stephen King's fog, yet farmore terrifying. Unlike these mythi­cal forces, it actually lives and breathesamong us. The few who are able to makeout its dismal form stand helplessly by,able to do little more than shout the

48 Liberty

meaningful. In short, he knows how tohandle a camera.

While I highly recommend"Inglourious Basterds" as one of thebest films so far this year, I must warnyou that it is, like most Tarantino films,occasionally and swiftly brutal. War ishell, and it is bloody. Fortunately thesescenes are brief and well telegraphed,so if you're squeamish like me, justclose your eyes for a second. The storyand the acting are worth an occasionalsquirm.

If there is any message to this filmit is this: there is nothing gloriousabout war. It kills good people andturns good people into killers. Whetherdriven by grief or glory, no one gets outunscathed - not the Germans, not theJews, and not the Americans. Raine,who proclaims himself "part Injun" anddemands 100 Nazi scalps from each ofhis men, kills without batting an eye.While we might laugh at his drawlingdemeanor and marvel at his unflinch­ing courage, we can't possibly glorifyhis tactics. His band of assassins areindeed "inglourious basterds." D

occasional unheeded warning.This creature is the Federal Reserve

System. With every breath it sucks thelife from all who are not politically orfinancially connected. Every inhala­tion is a recall of debt and contractionof the money supply, every exhalationa fresh printing of money and the inevi­table inflation that accompanies it. Eachbreath wreaks havoc on real wealthand economic stability, yet somehowthe creature's handlers always manage

to come out ahead. The rest of us canonly watch the stored fruits of our labordestroyed.

The title refers to the creature'sbirth, which can be traced to a meet­ing of seven very wealthy men on JekyllIsland in Georgia. The story begins bydescribing this meeting in true horrorstyle:

The New Jersey railway station wasbitterly cold that night. Flurries ofthe year's first snow swirled aroundstreet lights. November wind rattledroof panels above the track shed andgave a long mournful sound amongthe rafters.

But the book is more than a horrorstory. Is it a scholarly treatise? Yes andno. Griffin purposely wrote the bookfor laymen after finding most otherbooks on the Federal Reserve, howeveraccurate or thorough, a little too dry,convoluted, or unwieldy. Through hisresearch, Griffin came to the conclu­sion that the essence of this topic is farsimpler than is usually presented. Likemost libertarians, I have a tad moreunderstanding of, and far more interestin economics than, the typical schmoon the street. But when it comes rightdown to it, I am an economic amateur,a layman. As a layman, I can attest thatGriffin has created a very accessiblebook.

Part of the reason for reading a booklike this is to try to understand thingsthat have always seemed· mysterious.Where did money come from, andwhy do we trust it? Why is it that weare willing to be paid for our labor withlittle pictures of George Washington?Who the hell are Smith and Hayek andKeynes and Morgan and Rothschild,and why should we care? When wehear that "the Fed has raised (or low­ered) interest rates," what does thatmean? Many of us simply nod ourheads so as not to look stupid, but trulyhave no idea of why or how "the Fed"or its "interest rates" affect us.

For those of us who have won­dered about where money comes from,it is worth the price of the book just toread Griffin's second section, "A CrashCourse on Money." What is commod­ity money? Receipt money? Fractionalmoney? Fiat money? Are your eyesglazing over? They shouldn't. By thetime Griffin is through explaining theterms for various forms of money and

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the history of how they came into useit will seem so easy and obvious youllwonder why you never understoodit before. In IJ'The Wealth of Nations,"Adam Smith provides a very goodexplanation of the origins of money, anexplanation that I enjoyed immensely,but for a modern audience, I thinkGriffin's concise explanations are muchmore understandable.

Despite his layman's focus, Griffinhas still managed to pack the book withfacts and details, copious footnotes, andmany pages of bibliography. If his rep­resentations of fact aren't accurate inany respect, the documentation is avail­able to refute them. If they are accurate,they provide detailed support for bothhis viewpoint and his conclusions. Thefew times he wanders off into conjec­ture, he lets you know he is doing so.He also manages to keep the book up todate, by means of frequent editions andreprintings. Though the book was origi­nally published in 1994, the newest edi­tion includes a section on the mortgagemeltdown that began in 2008.

ifCreature" is simultaneously aneconomic primer, a political primer,and an historical primer. It gives theeconomic, political, and historicaldetails of the Federal Reserve System,but these specifics aren't nearly as inter­esting as the understanding Griffinbrings to the creature's species, thecentral bank, and its genus, the cartel.He maps the history of central bank­ing and fractional reserve bankingonto the history of economic stability,including four instances of times whenAmerica has tried central banking, oneof them before the Revolution. Sureenough, periods of economic instabil­ity are characterized by the use of frac­tional money (paper money of whichonly a fraction is backed by valuablecommodities), and fiat money (moneyrequired to be accepted as legal tenderby government fiat). Griffin rejects thecommon idea that the boom-bust cycleis inevitable and ties the cycle directlyto the use of fractional and fiat money,shoWing great stretches of history with­out boom-bust cycles, when fractionaland fiat money was rejected.

Griffin outlines the history of bail­outs in the system, showing case aftercase of bankers and politicians makinghay from businesses that were IJ'too bigto fail." He shows that our latest bailouts

(of GM, AIG, and so forth) are nothingnew. Public bailouts of private compa­nies have been going on for many years.He also shows that little in this failure­bailout cycle is accidental. He detailsthe rule set that is carefully followed toenrich a few players in the oft-repeatedbailout game. He demonstrates the wayin which the International MonetaryFund and the World Bank follow thesame bailout playbook on an interna­tional level. He elucidates the benefitsof war to the creature under study, dis­cussing European wars financed bythe Bank of England and modern warsfinanced by the Federal Reserve.

This is also a how-to book - nothow to start a war but how to changethe system. Griffin sketches two possi­ble futures. His IJ'pessimistic scenario"describes what will happen to us if wecontinue our present course: totalitari­anism and poverty. His IJ'realistic sce­nario" offers specific steps we shouldtake to avoid that fate. (He does notoffer an IJ'optimistic scenario" becausewe are so far gone that even our bestcourse of action will be quite painful. )

Finally, as I joyfully admit, thisbook presents a conspiracy theory. Iam an unabashed, unapologetic con­spiracy theorist. I know it is fashionableto equate IJ'conspiracy theorist" withIJ'kook" and to intone the phrase with aslight sneer of disgust. Yet just becausewe're paranoid doesn't mean they aren'tout to get us. Government-sponsoredcartels are one form of conspiracy thathas been pretty well documented andconfirmed throughout history. Thereis evil and mischief in the world, andmuch of the suffering that humanbeings undergo results from the collab­oration of other humans.

Very rarely does evil introduceitself twirling a moustache like SnidelyWhiplash, rubbing its hands togetherand practicing the perfect IJ'bwa-ha­ha-ha-ha!" of Satanic laughter. Evil ismore mundane and innocent in appear­ance, even to itself. In IJ'The GulagArchipelago," Aleksandr Solzhenitsynrecognizes that evildoers are rarelyaware of their evil. They are not likeShakespeare's lago, who lJ'identifies hispurpose and motives as being black andborn of hate." IJ'But no," Solzhenitsynsays, IJ'that's not the way it is! To do evila human being must first of all believethat what he is doing is good, or else that

November 2009

it's a well considered act of conformitywith natural law." Solzhenitsyn laterdescribes how much evil arises sim­ply from thoughtless expediency. Hugewaves of human suffering are causedby humans with good intentions. Howmany children and families have beendestroyed by the well-meaning bozosrunning the child custody industry?

So, just as individual human evilrarely springs directly from ill intent,conspiracy is rarely a pack of villainsgathering together with the expresspurpose of making others suffer.Suffering is simply the unfortunate costand unintended consequence of achiev­ing the conspirators' goals in the mostexpedient manner. The conspiratorsin Griffin's story may at various timeshave had good intentions toward therest of us, but for the most part, theyhave played a game in which your well­being and mine are simply irrelevant.We are at best sheep to be fleeced.

Although Griffin details the roles ofspecific conspirators, naming Morgansand Rothschilds and Rockefellers bythe dozen, it is once again the generalnature of the conspiracy that is mostinstructive. The Federal Reserve Systemis simply one more example of collu­sion between the most powerful play­ers of a particular industry, in this casebanking, and the most powerful playersin the political sphere. Politicians andbankers both benefit by legalizing frac­tional and fiat money. Politicians canbuy votes with this money created outof nothing, while (some) bankers collectinterest on the same imaginary money.The scheme is financed by the populacethrough inflation, by the requirementthat people accept this highly manip­ulated play money as legal tender, nomatter how wildly it fluctuates againstreal commodities, goods, or services.

I agree with Griffin's relation of thespecifics to his generalizations aboutthe conspiracy. I object, however, tohis labels for the two broad conspir­ator classes. He calls these peopleIJ'monetary scientists" and IJ'politicalscientists" - terms far too benign fortheir objects, and slander to real scien­tists. A scientist's purpose is to increaseknowledge and understanding. Theplayers in the Federal Reserve game arenot that benign. They cannot succeedwithout obscuring knowledge andunderstanding. D

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November 2009

Singing inthe Rain

"Woodstock," directed by Michael Wadleigh, 40th anniversarybox set. Warner Brothers, 2009, 224'minutes.

"Taking Woodstock," directed by Ang Lee. Focusf~atures,2009, 120 minutes.

"Woodstock: Three Days That Rocked the World," byMike Evans and Paul Kingsbury. Sterling Publishing, 2009, 288pages."Hair," directed by Diane Paulus. Al Hirschfeld Theatre, NewYork.

Jo Ann Skousen

In the summer of 1969 my mother,my sister, and I roamed the country onan extended road trip, traveling fromCalifornia to Louisiana to Colorado andback and stopping wherever it lookedinteresting. My mother was pretty coolabout letting my sister and me do what­ever we wanted along the way, providedthat we indulged her penchant for nat­ural wonders. We explored CarlsbadCaverns and the Petrified Forest ofArizona, but we also scored tickets toa Byrds concert at the Fillmore in SanFrancisco, attended a Jimi Hendrix con­cert in LA, grooved to an Eric Burdon& War concert in Topeka, and hungout one weekend with a group calledNickel Bag in a little town in Arkansas.You can probably guess where this arti­cle-ought to be leading: summer, 1969,road trip, music - Woodstock, right?

Almost. We heard the ads on theradio for this crazy concert in NewYork, started driving in that direction,and then for some reason hung a leftat Little Rock and went to Pike's Peakinstead. I guess it was my mother's turnto choose the destination. Of course, it

50 Liberty

turned out to be the concert of a life­time, and we missed it.

Now it's 40 years later, andWoodstock is open again - as amuseum and performing arts centerhosting such musicians as Bob Dylan,John Mellencamp, Arlo Guthrie, Peterand Paul (no Mary), and Willie Nelsonin its first season. Several of the origi­nal performers returned for the 40threunion. They included Richie Havens,who opened the show 40 years ago,and Country Joe (without the Fish).This time the weather was clear, every­one had tickets, and the sold-out crowdnumbered 15,000, not "half a millionstrong." They also kept their clotheson.

Nestled in the Catskill Mountainsabout two hours north of Manhattan,the Museum at Bethel Woods - nearthe real site of the "Woodstock" festival- is well worth a visit, with or with­out a concert. An interactive multime­dia exhibit reminds visitors that the'60swere the best of times and the worst oftimes: an American had walked on themoon exactly one month before theconcert, but hundreds of thousands ofAmerican soldiers were still stalkingthe jungles of Vietnam, and protesters

were marching on campuses and sit­ting in at lunch counters. The museumrecaptures these memories with videoclips, artifacts, and brief quotations.Of course, the music of the '60s is cel­ebrated throughout the museum.Memorabilia from the era, includinglunch boxes, record players, flashcubecameras, transistor radios, and a widearray of vinyl albums are on display; Iconfess to saying several times, "I usedto have one of those!"

Most fascinating is the entrepreneur­ial story of how 25-year-old MichaelLang, who had staged the Miami PopFestival in 1968, and Artie Kornfeld,a songwriter and the youngest vice­president of Capitol Records, coaxedtheir vision of a music and art festivalinto existence. Rounding out the part­nership were two young men who putup the money, wrote the contracts,sold the tickets, and watched over thebooks. Joel Rosenman was an attorneywho had never actually practiced law,and John Roberts was a budding entre­preneur who had recently inheritedhalf a million dollars and was lookingfor "nutty business ventures." A popmusic festival was about as granola asthey come.

Together these young guys hired ateam of experienced designers, promot­ers, caterers and production coordina­tors, along with state-of-the-art lightingand sound engineers. Because of them,and aided by the hillside setting thatcreated a natural amphitheater, nearlyeveryone could see and hear the con­cert, even when attendance swelled tohalf a million. Without this professionalteam pulling off a high-quality show,the peaceful chaos could have turnedviolent.

Woodstock would probably havebeen just a blip on the radar if it weren'tfor the documentary film that became"Woodstock." Serving as a second assis­tant director and editing the footage(along with Oscar-nominated ThelmaSchoonmaker) was a then-unknownNYU film student named MartinScorsese. Yes, Scorsese. Handling one ofthe cameras from a tiny platform nextto the stage, he found the experiencetense and relentless. He was "trying tostay upright in the tiny space ... hun­gry and exhausted," with a "restive ­potentially violent - presence behindus": the sea of muddy concertgoers.

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Scorsese also suggests - rightly,I think - that the film is what setWoodstock apart from other musicfestivals that year and turned it intothe iconic concert that defined thedecade. "Without the film," he writesin the foreword to Mike Evans and PaulKingsbury's book, "woodstock, theconcert, would not be more than a foot­note to the social and cultural history ofthe 1960s - represented by a still photoin a picture book, a line or two in thehistory books."

The movie won an Oscar for BestDocumentary in 1970. It has gonethrough several re-edits over the years.A director's cut was issued in 1994 anda 40th anniversary DVD was releasedthis year. The documentary broughtWoodstock to middle America, makingthe music accessible to millions of newfans who might never attend a concert,let alone a love-in - and to festivalattendees who were too far back (or toofar out) to hear it at the time. When onewatches the film today, one thing thatstands out is how fresh and clean-cutthe concertgoers and musicians look.They may have been countercultural,but they weren't gangsta.

"Woodstock," the film, holds upremarkably well. The remastered direc­tor's cut is sharp, the sound is good,and the whole work is as enjoyable towatch now as it was in 1970. The split­screen presentation happened almost

Woodstock would prob­ably have been just a blip onthe radar if it weren't for thedocumentary film that became"Woodstock. "

by accident. During the editing pro­cess, Scorsese and Schoonmaker pro­jected the film from all seven cameras atonce, and they liked it that way. It cap­tured the multi-layered atmosphere ofthe festival. They also understood thatthe real story was in the music, so theyincluded long, uncut performancesinterspersed with interviews and back­ground scenes. Each new version of the

documentary has added several art­ists, with the latest edition providing 17uncut performances from the festival.At 224 minutes the result is too long fortheater viewing, but it's a great way toenjoy the music at home.

Originally the festival was sched­uled and booked in Woodstock, N.Y.,a bucolic village already known asan artists' colony where Bob Dylan,Richie Havens, and Tim Hardin ownedhomes, and other musicians, such asJoan Baez, Janis Joplin, James Taylor,and Jimi Hendrix, visited regularly toperform at weekend jam sessions called"Shoutouts" at Pansy Copeland's farm.The neighbors should have been usedto the idea of a concert.

Nevertheless, when town fathersrealized that Lang and Kornfeld antici­pated selling as many as 100,000 ticketsto their three-day event, they renegedon the deal, citing worries about van­dalism, violence, and drugs. The pro­moters soon signed a deal with anothervenue 30 miles away in Saugerties, butwhen local residents there got wind ofit they also demanded that the concertbe cancelled. Nobody wanted thosedamned drug-using hippies dirtyingup their town. A third location, downthe road in Wallkill, was cancelled forthe same reason, after promoters hadalready created trails and carved natu­ral sculptures into trees and bouldersin preparation for the 11& art" portionof the festival. Finally, a venue wassecured 70 miles away at Max Yasgur'sdairy farm in Bethel, N.Y., and tick­etholders were once again informed ofthe change.

Admittedly, there was good rea­son for residents to be worried aboutviolence. College students had beenpicketing for civil rights and demon­strating against the Vietnam War allyear. I remember being terrified in 1965by nightly news picturing the race riotsin· the Watts area of Los Angeles, justten miles from my home. When tickettakers at the sold-out Hendrix concert Iattended in 1969 had to close the doorsto people without tickets, angry fanstore down a 40-foot light pole in theparking lot and used it as a batteringram against the locked doors. The con­cert was cut short as a nervous Jimi washustled offstage. My friends and I madeour way to our car through clouds oftear gas while cops threw canisters

November 2009

directly at fleeing individuals. Temperswere short, and anything could incite anangry mob. As Crosby, Stills, Nash, &Young reminded us plaintively in song,there were "four dead in O-hi-o," killed

When local residents gotwind of it they demandedthat the concert be cancelled.Nobody wanted those damneddrug-using hippies dirtyingup their town.

in the Kent State University confronta­tion between students and soldiers, justthe next year, indicative of the volatileatmosphere.

But Woodstock was different.Attendees knew that the venue hadbeen changed four times because localresidents didn't want them, so theyhad something completely different toprove. Instead of resorting to violence,they would "give peace a chance.""We11 show them!" turned into a cele­bration of peace and cooperation ratherthan a scene of angry hordes demand­ing food, water, and lodging. Lang andKornfeld worked around the clock tosolve problems, hiring helicopters to flyin the musical groups who couldn't getto the venue by car and buying up allthe produce from nearby farms - pro­duce that the catering crew chopped onwooden platforms and cooked in galva­nized trash cans. Wisely, the manage­ment abandoned its ticket booths andjust let everyone in.

With the New York Thruway trans­formed into a parking lot, transporta­tion became problematic. Attendeesabandoned their cars and walked, butLang and Kornfeld still had a concertto put on. They used horses and motor­cycles to travel around the venue inaddition to the helicopters ferrying themusicians. Everyone was late. Whilewaiting for the next act to arrive, RichieHavens played his planned set, thenplayed songs he hadn't performed inyears, then made up a song on the spotthat became synonymous with the festi­val, his now famous "Freedom."

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"You're trying to find yourself? - No offense, but if I were you, I'd look for somebody else."

November 2009

All of this is well documented atthe newly opened Museum at BethelWoods. One of the most popular fea­tures is the psychedelic bus where vis­itors can take a seat and imagine thedrive to Woodstock while watchinga video through the front windshieldand listening to the "news" on the van'sradio. A living museum allows visitorsto record their memories of Woodstockand the '60s. Best of all is the concertsimulation where visitors can lie downon giant bean bags (benches are pro­vided for the less adventuresome), lookup ata simulated sky, and watch a sur­round-screen presentation of the eventthat includes several performances,scenes of mudslide frolics, and imagesof food preparation for the half-millionconcertgoers.

Those who can't visit the museumcan experience some of the same nos­talgia through Evans and Kingsbury's"Woodstock," which draws heavily onthe artifacts exhibited at the museum.Presented almost like a scrapbook,with bright colors and pop typography,"Woodstock" reprints photographs,posters, newspaper articles, tickets, andeyewitness accounts of key figures whoworked behind the scenes as well asthose who attended the conference. Theentrepreneurial story alone is worth the$35 price.

After visiting the museum, read­ing the book, and listening to the com­memoration in song on radio stationsduring the 40th anniversary weekend,I was hyped to watch Ang Lee's movie,"Taking Woodstock." The film is based

on the autobiographical account of ElliotTiber (then Teichberg), whose Russian­Jewish immigrant parents owned theEl Monaco Motel in Bethel where Langand Kornfeld eventually set up theirheadquarters. Elliot (Henry Goodman)was the leader of the Bethel Chamberof Commerce and had already appliedfor, and received, a permit to host hisown annual summer musical festival.(A more modest affair, this would havefeatured a local band and a few recordsplayed in the parking lot of the motel.)He transferred his permit to Lang andKornfeld, and Woodstock had a legallysanctioned home.

"Taking Woodstock" starts well,with several hilariously understatedmoments. Eugene Levy is especiallygood as Max Yasgur, whose farm wasleased when Lang and Kornfeld discov­ered that the motel's fields were littlemore than a swamp. "Now, 111 expectyou to tidy up afterward," Yasgur sayswith the condescending demeanor of afather giving instructions to the babysit­ter. Imelda Stanton is equally amusingas Sonia Teichberg, Elliot's tightfistedmother. "They only used those sheetsone night and they didn't do anythingon them," she yells at Elliott as he car­ries a load of linen out of a vacatedmotel room. "Put them back on thebed! Don't you know detergent costsmoney?" He pauses for a moment, thendutifully returns to put the sheets backon the bed for the next guests.

Jonathan Groff is also excellent as thefresh-faced festival promoter, MichaelLang. Sporting a halo of curls reminis-

cent of Jim Morrison, Lang knows howto get around obstacles rather than bar­rel through them. Freedom isn't justabout free speech, free tickets, free­flowing drugs, or free love; it startswith free markets. He understands thepower of a dollar in calming angry, sus­picious residents. If the community isgoing to be inconvenienced, then he11pay them enough to make it worththeir inconvenience. Share the wealth,and everyone goes home happy. AsElliot finally realizes, "I'm the Chamberof Commerce. And this whole thing isabout commerce!"

The first half hour of the film islaugh-out-Ioud funny. Unfortunately,somewhereon the way to the WoodstockMusic & Art Festival, director Ang Leetook a wrong turn and ended up at theEl Monaco - for the duration of the fes­tival. How is it possible to make a filmabout Woodstock without showing asingle artist or playing a single song?Lee manages to do it. It's like making amovie about the 1984 Olympic hockeygame, where the United States miracu­lously beat Russia, and focusing on theguy running the snack bar at the prac­tice rink back home. Unbelievable.

Lee concentrates on Elliot Teichberg- a charming young man to be sure,but certainly not interesting enough tomerit a whole movie, when the greatestmusic festival ever staged is going ontwo miles down the road. Sure, I took aleft turn at Little Rock and never madeit to the concert, but Teichberg wasalready on the spot. He has no excusefor missing the festival. We watch himfight with his mother, slide in the mud,experience his first acid trip, claimcredit for making it a free concert, andcome out of the closet. But he never getsto the music. And consequently neitherdo we.

The most incongruous sight in along list of incongruous sights (includ­ing lots of joyful, bouncing, frolicking,full-on nakedness) is Liev Schreiber asVilma, a pistol-packing, cross-dressingblonde offering his/her security ser­vices when the Teichbergs refuse to payoff a couple of toughs in the protectionracket. Perhaps it would have workedif Lee had cast an unknown actor in therole, but Schreiber is just plain creepy,hitting on Elliott as a man in somescenes and Elliott's father as a womanin others, then making sandwiches

52 Liberty

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and brownies with the old ladies in thecommunity. I think it's supposed to befunny, but it's just weird.

In short, UTaking Woodstock" isone of the biggest film disappointmentsof the season. UStealing Woodstock"might have been a more appropriatetitle, since the movie demonstrates howa virtual nobody tried to take creditfor a major event. We get it - Elliot'sfestival permit was vital. But Lang,Kornfeld, and their professional crewdeserve the credit for pulling the con­cert off. Not to mention the credit duethe musicians! The film is not worth theprice of a ticket, not worth the postageon your Netflix account, not even worthyour time if it shows up on MTV.

Woodstock's official posters called ituAn Aquarian Exposition," a strangelyprophetic moniker, given the delugethat poured down for most of that week­end. The phrase derived at least partof its inspiration from another artisticphenomenon, a musical that opened onBroadway and in London's West Endin 1968: the counter-culture rock operauHair," with its iconic theme song UAgeof Aquarius." At that time, uHair" wasone of the edgiest plays to hit the legiti­mate stage. It delivered an antiwar mes­sage and an in-your-face celebration ofdrugs, sex, profanity, and nudity. It alsospawned several top-40 hits, includingOliver's uGood Morning Starshine,"the 5th Dimension's UAquarius/Let the

How is it possible to makea film about Woodstock with­out showing a single artistor playing a single song? Leemanages to do it.

Sunshine In," Three Dog Night's UEasyto be Hard," Nina Simone's uAin'tGot Noll Got Life," and the Cowsills'UHair."

The plot of this musical is a looseinterweaving of the experiences of sev­eral members of a U tribe" of friends whogather in what appears to be a park orparking lot to sing, talk, make out, anddo drugs. The main story line (although

it, too, is very loose) follows one charac­ter, Claude, as he makes decisions thatlead to his being drafted, sent to war,and sent home in a box. As the charac­ters take their turns in the limelight thestage morphs into a classroom, a bed­room, a living room, a protest rally, abattlefield, and even a long acid trip,without the use of props or sets.

The current production at the AlHirschfeld theater on Broadway earnedthe 2009 Tony for Best Revival of aMusical. The cast is exuberant as theyprowl the theater aisles, balance on therailings, and play with audience mem­bers' hair. Costumes are colorful andretro, with lots of beads, fur, fringe, andflowing cottons that once announcedthe hippie generation's embracing ofmultiple cultures. Yet many of the songsare offensively antireligious, belyingthe characters' profession of peace,love, and tolerance. Much of the musicis familiar and engaging, but it's morenostalgic now than edgy - you won'tleave the theater inspired to change theworld, although you may want to goshopping for a retro mini-dress.

Characters sing a variety of protestsongs that were once shocking and top­ical: uHashish," USodomy," and uI'mBlack/Colored Spade" appear early inthe first act. But the themes are datednow, the anger and angst in the charac­ters' voices more whiny than moving,and the profanity more juvenile thanshocking. Moreover, at the time "Hair"was written audiences needed no expo­sition, but 40 years later it's harder toempathize with the characters' con­flicts when the story lines are presentedas swirling images with no back story.Even the title song, "Hair," has lost itsimpact. Members of today's audiencemay have hair that is short, long, pur­ple, spiked, or shaved completely off,with nobody to object and few to notice.The show is still great fun, but it's nolonger relevant.

At the time, however, hair was verymuch a symbol of freedom and self­ownership. It was the first thing to gowhen a man entered the armed ser­vices. Schools and businesses requiredmen to keep their hair above the ear andabove the collar. And hair was an out­ward symbol of gender - boys woretheir hair short, and girls wore it long.Taking ownership of one's hair wasn'tjust a fashion statement back then -

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"Julie & Julia," directed by Nora Ephron. Columbia Pictures,2009, 123 minutes.

Iron Chef,Zinc Saucier

November 2009

it was a statement of personal identityand ownership.

Clothing, too, is no longer so firmlydictated by conformity; a tourist injeans may sit in the audience next toa businessman in a suit, and both willfeel comfortable. The most telling partof "Hair" is perhaps the final scene,in which cast members bring peoplefrom the audience onto the stage fora brief "love-in" of dancing and song.This scene is exuberant and joyful, andprobably made a strong statement inthe '60s when there was a distinct con­trast between a cast in hippie attire andan audience in formal dress. But at theperformance I attended recently it wasdifficult to distinguish who were theactors and who were the people fromthe audience. The protest clothes ofthe '60s are sold at Saks Fifth Avenuetoday.

Forty years later, Bethel, N.Y., isagain a peaceful, bucolic setting of roll­ing hills, winding roads, and leafy trees.You can even see a few cows munchingplacidly on what was once Max Yasgur'sdairy farm. Fancy coffees and pastriesare available at the snack bar. Visitorsarrive in nice cars and there is plenty ofparking. The concert venue has a realstage, real seats, and a roof. It's hardto imagine a sea of bodies huddlingagainst the rain and slipping throughthe mud. It's even harder to imagine

The themes are dated now,the anger and angst in thecharacters' voices more whinythan moving, and the pro-fanity more juvenile thanshocking.

anyone wanting to do it again. It's thekind of experience that improves withmemory. It can be imitated in fashion.And it can be enjoyed through muse­ums, books, movies, and albums ­the means by which the WoodstockMusic & Art Festival will live on. Butthe strongest survival may turn out tobe the'60s' assertion of personal signif­icance, identity, and self-ownership.D

54 Liberty

Jo Ann Skousen

"Julie & Julia" is two stories in one,both of them true. In 2002 Julie Powell(played by Amy Adams) was in a funk,working for an insurance companydealing with survivors of the 9/11 ter­rorist attacks and looking for some­thing meaningful to do with her life(that sentence should give you a clueto Julie's self-absorption). She came upwith a plan: she would cook every rec­ipe in Julia Child's "Mastering the Artof French Cooking" and write a blogabout it.

This naturally leads to the other halfof the story: how Julia Child (MerylStreep) came to write said book. In 1948Julia was in a funk, having just movedto Paris with her diplomat husbandand looking for something meaning­ful to do with her life. "What do youlike most to do?" her husband (StanleyTucci) wisely asks in the film. "Eat!"she responds unabashedly, a deliciousbite of sole meuniere still melting in hermouth. She came up with a plan: shewould learn to cook French food - atLe Cordon Bleu, no less!

Both projects ended up as books,and both ended up on the screen as well- Julia's on the small one, Julie's on thelarge. Child's cooking show ran for tenyears and became the model for cook­ing shows today; Julie's book is signifi­cant because it brought Julia's story tothe big screen.

Streep settles comfortably intoJulia's large shoes, playing the role withgleeful abandon. She relishes her food,guffaws at her own foibles, and gamely

carries on when things go wrong. Sheloves her husband passionately, andhis love for her is just as apparent. Thesection includes an equally strong andebullient performance by Jane Lynch asJulia's sister, Dorothy. This portion ofthe film is delightful and robust, madeeven stronger by the short but poignantreference to Julia's heartbreak at notbeing able to have children. She bar­rels through life with a stiff upper lip,an effervescent smile, and a fine set ofknives.

Adams, always a fine actor, por­trays Julie Powell admirably. It's funwatching her tryout every recipe (andreach for the Tums nearly every night).She moves from perky brightness toweepy meltdown with equal ease, por­traying her character as she apparentlywas written. Some moments are quitespontaneous and clever. The problemis, Powell simply isn't as interestingas Child. One waits for Julia's story toreturn in the way one munches on aroll while waiting for the entree to beserved.

Although the storytelling is uneven,the film is well worth seeing. The storyof Julia Child's indefatigable determi­nation to publish her cookbook shouldinspire any entrepreneur, .and JuliePowell's story will likely cause you tothink, "Darn. I could have done that!"- followed by a hopeful "I could dosomething else!"

But watch out for your waistline andreach for the Turns - at the very least,the film will inspire you to sharpenyour knives and start cooking. As Juliawould say, "Bon appetit!" D

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Yekaterinburg, RussiaObstacle in the fight

against dark wizardry,from the BBC's desk in theUrals:

A Russian man is hopingto produce a little magic to get

him elected Sverdlovsk regionalgovernor, by taking the name of

Harry Potter. The fictional boy wizard ishugely popular in Russia.

But he will not be able to call himself plain Harry Potter, aselection rules state that Russian citizens who change their nameh~ve to retain their patronymic - their genuine father's first name.

Medina, Saudi ArabiaLegal trouble on the thousand and second night, re­

counted in Saudi paper AI-Watan:A Medina family has taken a genie to court, alleging theft and

harassment. The lawsuit filed in Shariah court accuses the genie ofleaving them threatening voicemails, stealing their cell phones andhurling rocks at them when they leave their house at night.

An investigation was under way, local court officials said. "Wehave to verify the truthfulness of this case despite the difficulty ofdoing so," said Sheikh Amr Al Salmi, the head of the court. A localcharity has moved the family to a temporary residence while thecourt investigates.

Gabarone, BotswanaUnsurmountable obstacle for constitutional law, re­

ported in the Botswana Mmegi:Cabinet minister Margaret Nasha has declared that Setswana

is difficult, hence the constitution cannot be translated into thenational language.

Nasha told parliament that it is impossible to translate law intoSetswana. She explained that Setswana is very difficult but thelanguage used in law docUluents is even worse.

Fucking, AustriaQuixotic attempt at preventing the inevitable, from the

Cleveland Leader:Surveillance cameras are being installed outside Fucking, a

mountain village near Salzburg, in order to deter tourists from tak­ing snapshots of themselves having simulated or real sex under­neath the town's welcome sign. Warnings about the cameras will beposted in order to encourage visitors to take tamer pictures.

"I'm sure each of them think they're the first to think of it butbelieve me they're not," said one resident.

Syracuse, N KAbrupt end to attempted revival of the barter economy,

from the Massena (N.Y.) Daily Courier-Observer:Police said a 45-year-old man, Angelo Colon, offered 42-year­

old Omar Veliz a slaughtered pig as partial payment for a bag ofcrack cocaine. The two men were spotted making the deal on a

street comer. Colon paid half a pig and $10

~e-r-rit Incownt·ta for a $5.0 bag of crack. Veli~ told police-L t I I ........ the pIg was for a celebratIOn for a rela-t • tive being released from jail.

While officers were arrestingthe suspects, someone took the

pig.

New YorkNovel infraction, from the New York Post:

A Brooklyn woman said her father apparently lay dead forweeks in a minivan while police repeatedly left parking tickets onthe vehicle below the Brooklyn-Queens Expressway underpass.

Police made a gruesome discovery earlier this week while get­ting ready to tow the van - a decomposed body in the back seat.The body was identified as George Morales, and he had been deada month, in a van with four parking tickets.

Norfolk, Va.Solidarity with our sesquipedalian brethren, in the

Hampton Roads Pilot:During an interview for CNBC, a fly intruded on President

Obama's conversation with correspondent John Harwood."Get out of here," the president told the pesky insect. When

it didn't, he waited for the fly to settle, put his hand up and thensmacked it dead. "Now, where were we?" Obama asked Harwood.Then he added: "That was pretty impressive, wasn't it? I got thesucker."

Yet the Norfolk-based group PETA wants the flyswatter­in-chief to try taking a more humane attitude the next time he'sbedeviled by a fly in the White House.

PETA is sending President Barack Obama a Katcha Bug Hu­mane Bug Catcher, a device that allows users to trap a housefly andthen release it outside.

WashingtonRattling the Supreme Court's swear jar, from the An­

napolis Capital:The Supreme Court deleted exple­

tives left and right while narrowlyupholding a government policy thatthreatens broadcasters with finesover the use of even a single curseword on live television, issuingsix separate opinions that usednone of the offending wordsover 69 pages.

The precipitating eventswere live broadcasts ofawards shows in which Bono,Chef, and Nicole Richie ­Justice Antonin Scalia referredto the latter two as "foul-mouthedglitteratae from Hollywood" ­let slip or perhaps purposely saidvariations of what Scalia called "the F- andS-words."

Martin County, Fla.Bold implementation of one of the world's oldest de­

fenses, from the Treasure Coast Palm:Martin County Sheriff's detectives didn't buy it when a

48-year-old Jensen Beach man claimed that his cat was down­loading child pornography on his computer. Keith R. Griffin wascharged with 10 counts of possession of child pornography afterdetectives found more than 1,000 child pornographic images on hiscomputer, according to a news release.

Griffin told detectives he would leave his computer on and hiscat would jump on the keyboard. When he returned, there would bestrange material downloaded, the release states.

Special thanks to Rich Burns, Russell Garrard, Bill Merritt, and Tom Isenberg for contributions to Terra Incognita.(Readers are invited to forward news clippings or other items for publication in Terra Incognita, or email [email protected].)

Liberty 55

Page 56: Liberty Magazine November 2009 - Jayant Bhandari...ule where being at work, applying for jobs, or caring for kids has higher pri ority. I volunteer on an afternoon shift at the pantry