Strike The Root Blog

Most people would agree that the government giving gifts to a small number of corporations is wrong. It falls outside the powers and thus the rights of the US federal government, and thus it is also unconstitutional, for those who think there’s any value left in that document.

The problem with doing something wrong is that it often generates even more wrongs. Now that my money has been stolen to reward AIG’s failure, the US house of representatives has felt the need to selectively punish the same corporation it wrongly gifted. In passing the bill that taxes select AIG bonus recipients at a confiscatory 90% rate, 328 ignorant congressmen violated Article I of the constitution twice.

Most people need to be reminded what section 9 of article 1 says: “No bill of attainder or ex post facto Law shall be passed.” A bill of attainder is, per Wikipedia, “an act of legislature declaring a person or group of persons guilty of some crime and punishing them without benefit of a trial.” An ex post facto law is a law that “retroactively changes the legal consequences of acts committed or the legal status of facts and relationships that existed prior to the enactment of the law” (per the same source).

Ex post facto, really? Yes, the bill would make the 90% tax on AIG retroactive to December 31, 2008.

This is a solution that pleases a very angry and very dangerous president. For those willing to defend Obama’s actions, imagine the havoc for which this precedent paves the way. Think about a Bush-like predecessor, perhaps. Do you want this person arbitrarily gifting favorite companies, or arbitrarily punishing companies that have fallen out of political favor?

There is no justifying either the bailout or the punishment. “But, we had to bail out AIG and these companies…” Well, no. By allowing AIG to succeed, we reward failure, and instill a system that will create larger and larger corporations. That should be frightening to even the socialist left who likes the idea of government control over corporations.

Instead, AIG and ilk should have been allowed to fail, or better, do whatever it had to in order to figure out how to survive. The outcome? Lots of people would probably have suffered. Better “lots” than “all.” But what positive might have come out of this? Perhaps ingenuity from some of the bailed out companies, cleverness that would have enabled their survival and advanced our survival skills in the face of severe economic problems. Perhaps the failures might even have signalled the end of monstrous corporations like AIG, begat by a widespread lack of trust in them; this failure might have led to the rebirth of small, competitive financial firms with little political power. I know who would be happy with that!

The cynical, conspiracy-theory side in me says that all of these events are scripted. From failure (long predicted by sensible economists) to bailout to revenge, it’s all about granting the monstrously bloated US federal government even more power over you.
Too bad for all of us that a petulant Obama will likely get his way for a while.

Mises.org recently published a transcript of the late Austrian economist F.A. Hayek’s appearance on NBC-TV’s Meet the Press back in 1975.

Then, as now, there was a great deal of economic turmoil facing the U.S. and much of the rest of the world. Hayek contended then that the turbulence was mainly caused by the central bank’s inflation of the money supply in order to finance unsustainable central planning, a criticism that equally applies today. Hayek suggested that the answer then was for the Federal Reserve System to simply stop inflating and allow resources to be reallocated according to consumer demand, however painful that adjustment may be in the short term. That’s a suggestion that equally applies to today’s turbulence, but one that Republicans and Democrats alike have shunned in favor of bail-out capitalism and pie-in-the-sky “stimulus” spending and all the massive debt and inflation that goes along with it.

The interview is interesting enough to read for all of the parallels to recent events, but there was one answer from Hayek that I found particularly striking.

One of the interviewers suggested that to simply cease inflation and allow for new economic adjustments to take place would most likely lead to more unemployment, and for that to happen in the already troubled inner cities would most likely lead to anger, frustration and violence amongst those populations, which would then most surely be followed by governmental crack-downs. The interviewer asked Hayek what he would do to ameliorate any ill social effects deriving from further unemployment among urban populations during any post-inflationary adjustment period.

Here’s Hayek’s answer:

“Well, I don’t think there is anything I can do about it. We’ll have to tide over the storm which may be threatening.”

Wow, how refreshing it is to hear such an intellectually honest answer from a public intellectual! How incredibly rare that is. Your typically neo-Keynsian/neoliberal court intellectual–blindly assuming the interviewer’s implied assumption that predominantly black and hispanic populations in inner cities are simply incapable of pulling themselves up by the bootstraps to be gospel truth–would have heard his cue and trotted out all sorts of half-baked ideas for wasteful government welfare programs. Hayek, however, did not so arrogantly assume that he knew what was better for people he knew nothing about.

“I don’t think there is anything I can do about it.” To hear any of your court intellectuals and assorted think tank “experts” make such an admission today would probably cause a complete tear in the space-time continuum, simultaneously catapulting all of us into an alternate reality.

Chesley B. (”Sully”) Sullenberger is a god.

Seriously. If I were to run into the guy on the street tomorrow, I would simply be in awe of his presence. That’s because Sullenberger actually crash landed a malfunctioning U.S. Airways jet on the Hudson friggin’ River and nobody was seriously injured. That is just positively amazing. It’s one of those achievements that should stand as a glaring reminder to the rest of us as to what human beings can really accomplish. That act was nothing less than the culmination of many years of intense focus, careful study and much mastering of some very tricky technical skills. Just amazing.

It’s interesting, though, that I hear so many people around me mention his experience as an F-4 fighter pilot in the U.S. Air Force. The upshot of these conversations is thank the gods for “our” military, so that people can learn such highly valued, life-saving skills. The irony never seems to dawn on these people that the mission of the armed forces is to destroy human life, whereas Sullenberger preserved human life.

But they also seem to forget that Sullenberger has been flying commercial airliners since about 1980, whereas he spent only six years in the Air Force. Why jump to the conclusion that what Sullenberger was able to do yesterday must have come from his military experience, rather than from his more numerous years as a commercial airline pilot?

And why this assumption that only the military could provide the kind of training needed to fly airplanes so skillfully? It’s true that many military pilots take their flying experience into the commercial airline industry. But surely if there was no military at all, that does not mean that we would all be doomed to flying in planes piloted by incompetents. There’s no reason to doubt that some of the billions and billions of dollars that would be spared from “national defense” each year would instead be spent by the airline industry itself, or currently existing flight schools, on continuously improving pilot training and education.

Interestingly, Sullenberger is the founder of a business that provides “technical expertise and strategic vision and direction to improve safety and reliability in a variety of high risk industries.” Sullenberger’s actions yesterday demonstrate that highly skilled individuals offering their technical expertise in the marketplace in pursuit of their own personal gain—rather than myriad bureaucrats and their rules and regulations—are the most effective at keeping people safe in potentially dangerous situations.

(Cross-posted at The Postmodern Tribune.)

More ammo for journalists:

The state wants your children….

….and this is how it gets them:

The real policy of No Child Left Behind:

Stealing money and lending it cheap:

The central planners meet to decide how to engineer the next depression:

A hopeful look at the future- tools of war become lawn ornaments:

Lots of ghosts and boogie men in Afghanistan:

The Emperor-To-Be is drowning in estrogen:

Fasten your seatbelt for a wild ride:

Hey, W.- Dodge this:

Seeking instructions how to kill for the state in the name of God and….

….Success!:

The hands of the savior or tools of the devil?  Have they ever seen a hard day’s work?:

The Emperor’s audience continues to decline in stature….

….and numbers:

Still more murder, and Israel’s (and the U.S.’s) fingerprints are everywhere:

Praise those who have the courage to resist….

….rather than cower in fear:

Gimme that old time religion….

….it’s good enough for me:

Out of our way! Just a lil’ ol’ funeral in Texas:

Genocide in Gaza, but “No comment”:

Future terrorists to keep the show going, forever and forever:

Accidental illustration- Palestinians hopelessly entangled by Zionist Israel:

The kids turn to Johnny Law for guidance….

…..and are rewarded for obedience to the state:

After all the bailouts and stimulus programs are complete, the lowly tax serf carves up what’s left:

Stand by your man.  Let history be the judge:

Shaman rituals for the Magic Negro:

The state is melting, melting:

On the lookout for terrorist coyotes. The Ex-Emperor-To-Be seems to have fewer and fewer friends:

The sky darkens as the coronation approaches (“From the sixth hour until the ninth hour darkness came over all the land.”):

Just a reminder- Homeland Security is diligently protecting our shores:

Just a party girl. Please ignore the trail of bodies behind her….

Wouldn’t a dunce cap be a more appropriate product (Keepin’ America Stupid)?:

An idle GM assembly line awaits more bailouts and cheap credit:

A simple act by one brave man….

….can change the world in a blur….

….and arouse dissent among the victims….

….and put tyrants on the defensive:

Warning, rats in the area:

Good tidings of great joy! The reason for the season is still in the race:

The Ex-Emperor-To-Be will soon have no subjects to direct and harass:

They can’t protect their own building but they DO protect us from runaway basketball mascots:

Rapid Response for the Fatherland is on it’s way:

No room for individualists within the state collective:

No room for non-conformists within the civic religion:

Country First!:

This is what the corporate media thinks is important- A confirmed liar and thief has lunch with the daughter of a long dead president:

Make it a public display- Flush your allegiance to the state:

Wash regularly. Don’t’ let the horsesh%# accumulate on your rear bumper:

A great Christmas gift- A new dart board for the game room:

He’s drinkin’ again:

A political office for sale? Why the shock?

Gimme your best shot:

The Old/New Deal- Swapping lives for pretty rags:

Spread the terror- Collateral damage at home:

New corporate acronyms on the horizon- Gimme Money!….

….and Finance Our Rotten Designs!

Don’t let Johnny Law steal your Christmas:

Rule of Politics #23: Always put the receptive and easily convinced in the front row:

Save your breath- reason won’t work:

Dude, where’s my job?

Slammin’ concrete- another important defensive function:

How you’ll soon be flying the friendly skies:

It won’t happen sittin’ down. For state-initiated change, stand up and grab your ankles:

Snow in New Orleans- Reality just won’t conform to the climate kooks:

Start a hot new career in law enforcement!:

Socialist monkey wrenchers continue to give true anarchists a bad name:

Taking the lives of children isn’t enough for US Crusaders- Now, they’re taking their toys:

Entertainment on Capitol Hill- Watching the taxpayer get roped and tied:

Fly the rag proudly- Land of the Cowards and Home of the Slaves:

Obama reaches for answers. I thought he had them all!:

Please, keep reminding us Father Obama, that….

 She’s baaa-aaack! Some nightmares have a way of recurring:

Hillary gets an early start on setting fire to the world:

Cleaning up after a protest. What are the odds of seeing that in the US?

Homeland Security is everywhere:

You can’t be too careful. There’s no shortage of dumb bureaucrats:

Has yours arrived yet?

The Ex-Emperor finds a new neighborhood to invade. But how will he spend his time? That’s a big place for two people- how about a roomate?

No wonder they’re blind to the contradicting evidence:

Saint Nick takes a break during the long, secular Christmas nonsense:

Always plenty of saps to join in the fun, ….

….keeping the people mollified with bread….

….and circuses, ….

….leaving them exhausted from insatiable materialist appetites:

The Emperor contemplates his legacy….

….and “hangs” with the only folks who won’t put a rope around his neck:

Newman lives:

Warped state reasoning- a pretty rag will replace a father:

What to do? Charge ahead or let sleeping dogs lie?

Throughout the animal kingdom, liberty lovers object to Johnny Law and the mainstream media:

New York thugs-with-badges need some holiday overtime, so………Voila!:

Land of the Rescue….

….and Home of the Bailout:

The magic of democracy- Iraq will now belong to Iraqis “as long as the river still flows and the grass still grows:”

Preemptive insurgency- Obama, “let my people go:“

Where? I’m still searching:

Collectivism-on-the-Mall….

….and ancient, comical writings on the Capitol wall:

The state gets serious about keeping recruits in line:

Looking for healing. She touched his robe!:

A sense of urgency. Get them while they last:

A few lucky ones are able to escape the clutches of US crusaders:

Burying the dead of wars long past- a job never finished:

Confusion. The Emperor defends the free market.…

….but still reassures the bankrupt dinosaurs:

Keep them busy doing something. Obama‘s job policy:

Obama’s centurions aim to keep The Empire alive:

Together again? And you thought she was finished?: