The Polish American Foundation for Economic Research and Education (PAFERE) hosted us for presentations at 17 schools, universities, and public events in 5 cities around Poland over Spring Break. Interviews were provided to radio, television, and newspaper journalists and meetings were held with The Łódź Political Club, The Nowogrodzka 44 Discussion Club, and the PAFERE Conference on “Ethical Sources of the Present Crisis: What Will Be the Future of Capitalism?”
PHOTO 1- Virgis, Kenli & Ken
Audiences were most interested in hearing about causes and cures for the global monetary crisis. They have a healthy skepticism of the panicked clamor to give trillion dollar bailouts to cronies in the financial sector. In fact, many Poles felt that the “recession” was being over-hyped. How else could American politicians get away with bailout pledges that amounted to more than double the total expense of World War II?
Students, well-versed in the politics of corruption in Eastern Europe, were bitterly amused to learn of the revolving door in Washington D.C. where personnel and payoffs so deftly coursed through the halls of government and allied corporate boardrooms. PAFERE was founded in a staunchly Catholic Poland to combat immoral political behavior that blatantly violates the Seventh Commandment: “Thou shalt not steal.”
Ken did much of the talking and Kenli did most of the thinking. She provided the technical support for power point presentations and coached timing and relevance. Virgis Daukas, Kenli’s “uncle” and founder of the Lithuanian Free Market Institute, provided counsel, transportation, and laughs. [See photo 1 L-R: Virgis, Kenli, Ken]
Other topics included Free Market Ethics, Trade and Labor Protectionism, and the new, third Polish edition of The Adventures of Jonathan Gullible: A Free Market Odyssey. People came from all over the country seeking autographs for copies published nine years ago in Lublin and Kraków. Ironically, this educational tool of Small Business Hawaii has made a greater impact in Poland than in Hawaii.
The perennial question on the tour was, “When will the recession end?” We answered with a straight face, “August 23 at 8:47 AM.” But this is not a joking matter for Poles. After all, they experienced the worst of inhuman horrors for half a century, when their neighbors east and west sacrificed personal liberties to political tyrants who promised to rescue them from the 1930’s Depression.
Kenli returned to her studies at the University of Buckingham in the British isles where she is a leader in the Economist Club. Ken returned to the islands where he learned that Jonathan Gullible has been renamed Jamal Attaib for the new Arabic edition in Jordan. This is the 43rd language edition. [Photo: Book cover of Jamal Attaib.]
How would Jonathan ever get home? He was a hearty, honest lad, willing to do any kind of work. Perhaps he might find a job with a ship’s crew. Surely an island had to have a harbor and ships in it. As he pondered the problem, a thin man struggled to load a bulky machine onto a big, horse-drawn wagon. He wore an eye-catching red suit and a stylish hat with a large feather stuck in the band. Catching sight of Jonathan, the man hollered, “Hey kid, I’ll pay you five kayns to help me load.”
“Kayns?” repeated Jonathan curiously.
“Money, paper payola. Ya want it or not?”
“Sure,” said Jonathan, having no better idea of what to do. It wasn’t work on a ship, but he needed to earn his keep. Besides, the man looked shrewd and could offer some advice. After much pushing and shoving, they managed to heave the unwieldy machine on board. Wiping his brow, Jonathan stood back panting and looked at the object of his labor. The machine was large with beautiful designs painted all over. On the top was a large horn, such as the one Jonathan had once seen on a hand-cranked phonograph back home.
“Such beautiful colors,” said Jonathan, feeling dizzy while staring at the intricate, pulsating patterns. “And what’s that big horn on top?”
“Come around front, and see for yourself.” So Jonathan climbed up on the wagon and read the sign painted with elegant gold letters: “GOLLY GOMPER’S DREAM MACHINE!”
“A dream machine?” repeated Jonathan. “You mean it makes dreams come true?”
“It sure does,” said the sharp-faced man. He twisted out the last screw and removed a panel in back of the machine. Inside were the works of a simple phonograph. Instead of a hand crank, it had a spring with a wind-up key. A switch turned the turntable on.
“There’s nothing but an old music box in there!” declared Jonathan.
“What’d you expect,” said the man, “a fairy godmother?”
“I don’t know. I thought it would be a little, uh, mysterious. After all, it takes something special to make people’s dreams come true.”
A sly grin spread across the man’s thin face and he gave Jonathan a long hard look. “Words, my curious friend. It just takes words to make some dreams come true. The problem is you never know just who will get the dream when you wish for something.”
Seeing Jonathan’s puzzled expression, the man reached into his pocket and produced a crisp white, tiny business card. He introduced himself in his staccato nasal twang, “Tanstaafl’s the name. P.T. Tanstaafl.” Just then he noticed that he had given Jonathan the wrong card, one that read “G. Gomper” instead. He snatched it back. “Excuse me, son, that’s yesterday’s card.”
Shuffling through his wallet he found another card of a slightly different size and color presenting today’s name. He then pulled out a poster with elegant gold lettering that he pasted over the original name on his sign. It now read, “DR. TANSTAAFL’S DREAM MACHINE.”
The man explained smoothly, “People have their dreams, right? It’s just that they don’t know how to make dreams come true, right?” Dr. Tanstaafl nodded his head every time he said “Right?” Jonathan began nodding dumbly in unison.
“So you pay money, turn the key, and this old box plays a certain subtle instruction over and over again, right?” Tanstaafl nodded again, Jonathan followed with a bob. “It’s always the same message and there are always plenty of dreamers who love to hear it, right?”
“What’s the message, Mr. Tanstaafl?” asked Jonathan, suddenly conscious of his head bobbing up and down.
The man corrected Jonathan, “Please! Doctor Tanstaafl. As I was saying, the Dream Machine tells people to think of whatever they would like to have, and…” The man glanced around to see if anyone else was listening, “Then it explains to the dreamers what to do. And in a very persuasive manner, right?”
“You mean it hypnotizes them?” asked Jonathan, his eyes widening.
“Oh no, no, no, no, no!” objected the man. “It tells them that they are good people and that what they wish for is a good thing, right? It’s so good that they should demand it, right!”
“Is that all?” Jonathan said in awe.
“That’s all.”
After a moment’s hesitation, Jonathan asked, “So what do these dreamers demand?”
The man pulled out an oilcan and proceeded to oil the gears inside. “Well, it depends a lot on where I put this machine. I frequently put it in front of a factory like this one—Bastiat Builders.” He jerked a thumb in the direction of a squat two-story building across the street. “And sometimes I set up by the Palace of Lords. Around here, people always want more money. More money is a good thing, ya know, ‘cuz prices are always going up and people always need more, right?”
“So I’ve heard,” said Jonathan, rolling his eyes. “Do they get it?”
The man pulled back and wiped his hands on a rag. “Some do—just like that!” he said with a snap of his fingers. “The dreamers stormed down to the Palace and demanded laws that would force the factory to give them a threefold increase in pay and benefits.”
“What benefits?” said Jonathan.
“Like security. More security’s a good thing, right? So the dreamers demanded laws that would force factories to buy insurance for them. Insurance for sickness. Insurance for unemployment. Insurance for death, right?”
“That sounds great!” exclaimed Jonathan. “Those dreamers must have been very happy.” He turned to look back at the factory and noticed that there didn’t seem to be much going on. Faded paint made the buildings look tired and no lights shined from the dirty, broken windows. Pieces of shattered glass lay scattered over the sidewalk.
The man finished his oiling, replaced the back panel and tightened the screws back into place. With a final wipe of his rag over the polished surface of the box, he bounced out of the cart and went to check the harness. Jonathan jumped down and turned to the man repeating, “I said they must have been very happy—I mean to get all that money and security. And grateful, too. Did they give you a medal or a banquet to celebrate?
“Nothing of the sort,” said Dr. Tanstaafl curtly. “I nearly got tarred and feathered. They almost destroyed my delicate Dream Machine last night with rocks, bricks, and just about anything else they could throw. You see, their factory closed yesterday and the workers’ blamed me.”
“Why’d the factory close?”
“It seems the factory couldn’t earn enough to pay the workers’ raises and benefits. Now they’ve got to retool and try making something else.”
“But, then,” said Jonathan, “that means the dreams didn’t come true after all. If the factory closed, then nobody gets paid. And nobody gets security, either. Nobody gets anything! Why, you’re just a swindler. You said that the Dream Machine…”
“Hold on there, chap! The dreams came true. What I said was,” stressed the man slowly, “that you never know just who will get the dream when you wish for something. It so happens that every time an old factory closes here on the isle of Corrumpo, that very dream comes true across the waters on the Isle of Nie. A new factory recently opened there, just a week’s sail from here. Plenty of new jobs and security over there. As for me, well, I collect my money from the machine no matter what happens.”
Jonathan thought hard about the news of Nie, realizing that there was another island, one more prosperous than this one. “Where’s this Isle of Nie?” he asked.
“Far over the horizon to the west. The people of Nie have a factory just like this. When factory costs rose here, the factories over there got a lot more orders. They understand that having more customers is the best way of getting more of everything—pay and security. The workers on Corrumpo can’t just demand more from the customers. There ain’t no such thing as a free lunch, ya know. Everything has a cost.”
Dr. Tanstaafl chuckled as he tied the machine down with straps. He paid Jonathan for his help then climbed onto the driver’s seat and shook out the reins. Jonathan looked at the money he had been given and suddenly worried that it was soon going to be worth less. It was the same ‘legal tender’ the couple had shown him in front of the Official Bureau of Money Creation. “Hey, Dr. Tanstaafl, wait!”
“Yeah?”
“Could you pay me with some other kind of money? I mean, something that’s not gonna lose value?”
“It’s legal tender, pal. Ya gotta take it. Do you think I’d use this stuff if I had a choice? Just spend it quickly!” The man yelled at his horse and he was off.
Jonathan shouted after him, “Where are you going now?”
Dull two- and three-story wooden row houses with an occasional taller apartment building lined the streets of the town. Then Jonathan noticed one grand, elegant home, standing apart from the row houses, isolated on an expansive green lawn. It looked solidly built, adorned with attractive latticework and freshly painted white walls.
Curious, Jonathan approached the house and found a crew wielding heavy sticks, attacking the rear of the home and trying to tear it down. They weren’t very enthusiastic and moved very slowly at the job. Nearby, a dignified, gray-haired woman stood with her hands clenched, visibly unhappy at the proceedings. She groaned audibly when a piece of the wall came down.
Jonathan walked over to her and asked, “That house looks well-built. Who’s the owner?”
“That’s a good question!” the woman shot back vehemently. “I thought I owned this house.”
“You thought you owned it? Surely you know if you own a house,” said Jonathan.
The ground shook as the entire rear wall collapsed inside. The woman stared miserably at the cloud of dust billowing up from the rubble. “It’s not that simple,” yelled the woman over the noise. “Ownership is control, right? But who controls this house? The Lords control everything—so they’re the real owners of this house, even though I built it and paid for every board and nail.”
Growing more agitated, she walked over and ripped a paper off a single post left where a whole wall had stood moments before. “See this notice?” She crumpled it, threw it down and stamped on it. “The officials tell me what I may build, how I may build, when I may build, and what I can use it for. Now they tell me they’re tearing it down. Does that sound like I own the property?”
“Well,” ventured Jonathan sheepishly, “Didn’t you live in it?”
“Only so long as I could keep paying the property taxes. If I didn’t pay, the officials would have booted me out faster than you can say ‘next case’!” The woman grew red with fury and continued breathlessly, “No one really owns anything. We merely rent from the Council so long as we pay their taxes.”
“You didn’t pay the tax?” asked Jonathan.
“Of course I paid the cursed tax!” the woman practically shouted. “But that wasn’t enough for them. This time, the Lords said that my plan for the house didn’t fit their plan—the master plan of ’superior owners,’ they told me. They condemned my house—gave me some money for what they said it was worth. And now they’re going to clear it away to make a park. The park will have a nice big monument in the center—a monument to one of their own.”
“Well, at least they paid you for the house,” said Jonathan. He thought a moment and asked, “Weren’t you satisfied?”
She gave him a sidewise look. “If I was satisfied, they wouldn’t have needed a policeman to finalize the deal, now would they? And the money they paid me? That was taken from my neighbors. Who’ll compensate them? The Lords won’t pay ‘em!”
Jonathan shook his head in bewilderment. “You said that it was all part of a master plan?”
“Ha! A master plan!” the woman said sarcastically. “That’s a plan that belongs to whoever has political power. If I spent my life in politics, then I’d be able to impose my plans on everyone else. Then I could steal houses instead of building them. It’s so much easier!”
“But surely you need a plan in order to have a wisely built town?” said Jonathan hopefully. He tried to find a logical explanation for the woman’s plight. “Shouldn’t you trust the Council to come up with such a plan?”
She waved her hand at the row houses. “Go see for yourself. The worst plans are the few that they actually complete—shoddy, costly, and ugly.”
Turning to face Jonathan, she looked straight into his eye, “Think of this, they built a sports stadium where nine of every ten spectators can’t see the field of play. Because of their shoddy work, it cost twice as much to repair as it cost to build in the first place! And their great meeting hall is only available to visitors, not for the taxpayers who paid for it. Who did the planning? The Lords. They get their names emblazoned in stone and their friends get fat contracts.”
Jabbing a finger into Jonathan’s chest, she declared, “Only foolish plans have to be forced on people. Force never earned my trust!” Fuming, she glared back at her house. “They haven’t heard the last from me!”
As Jonathan strode through the town he immediately noticed a dignified well-dressed man kneeling in the street, trying painfully to walk. Yet, the man didn’t appear to be crippled—just short. Jonathan offered a helping hand, but the man brushed him aside.
“No, thank you!” said the man, wincing in pain. “I can walk okay. Using knees take some getting used to.”
“You’re okay? But why don’t you get off your knees and walk on your feet?”
“Ooooh!” moaned the man, squirming in discomfort. “Just trying to adjust to the tax code.”
“The tax code?” repeated Jonathan. “What’s the tax code have to do with walking?”
“Everything! Ow!” By now the man settled back on his heels, resting from his torturous ordeal. He pulled a handkerchief from his shirt pocket and mopped his brow. He shifted his balance to massage one knee, then the other. Many layers of worn-out patches had been sewn on at the knees. “The tax code,” he said, “has recently been amended to level the field for people of different heights.”
“Level the field?” asked Jonathan.
“Please stoop over so I don’t have to shout,” pleaded the man. “That’s better. The Council of Lords decided that tall people have too many advantages.”
“Advantages of tallness?”
“Oh, yes! Tall people are always favored in hiring, promotion, sports, entertainment, politics, and even marriage! Ooooh!” He wrapped the handkerchief around the newest of many tears on his gray pants. “So the Lords decided to level us with a stiff tallness tax.”
“Tall people get taxed?” Jonathan glanced sideways and felt his posture begin to droop.
“We’re taxed in direct proportion to our height.”
“Did anyone object?” asked Jonathan.
“Only those who refused to get on their knees,” the man said. “Of course, we’ve allowed an exemption for politicians. We usually vote tall! We like to look up to our leaders.”
Jonathan was dumbfounded. By now he found himself slouching, self-consciously trying to shrink. With both hands pointing down at the man’s knees he questioned incredulously, “You’ll walk on your knees just to get a tax break?”
“Sure!” replied the man in a pained voice. “Our whole lives are shaped to fit the tax code. There are some who have even started to crawl.”
“Wow! That must hurt!” Jonathan exclaimed.
“Yeah, but it hurts more not to. Ow! Only fools stand erect and pay the higher taxes. So, if you want to act smart, get on your knees. It’ll cost you plenty to stand up.”
Jonathan looked around to see a handful of people walking on their knees. One woman across the street was slowly crawling. Many people scurried about half-crouching, their shoulders hunched over. While a few walked proudly erect, ignoring the sanctions completely. Then Jonathan spied three gentlemen across the street sitting on a park bench. “Those three men,” indicated Jonathan. “Why are they covering their eyes, ears, and mouths?”
“Oh, them? They’re practicing,” replied the man as he leaned forward on his knees to shuffle along. “They’re practicing for a new series of tax proposals.”
With all this talk about Capitalism and Free Markets systems failing us one has to wonder if the talking heads on the financial shows truly understand basic economics or are they projecting their interpretation to sway public opinion.The fact is the U.S. is not under a Free-Market system.Free Markets by definition is markets not interfered by the government.We have just the opposite of Free-Markets in America.If we did, we would not have government backed Reverse Mortgages, trade agreements like NAFTA, CAFTA and the like.Nor Sarbanes-Oxley, Fanny and Freddie Mac, we wouldn’t have legislation that permitted HMO’s and PPO’s to be formed.And the biggest one of all, a Central Bank like the Federal Reserve Bank dictating the value of the dollar.A Free-Market system would let the value float and be priced by buyers and sellers.That’s called the equilibrium price, remember Econ 101?Instead the value of the dollar is managed by a handful of men at the Fed.They are independent from our Government.Neither Congress nor the people have any say or any direct control over the actions of the Fed.Whenever the chairman gets pulled in front of a Congressional committee he just sits there and gives often befuddling answers.In a Free-Market society there wouldn’t be the thousands of regulations and legislation in this country creating a market climate induced by the government favoring certain businesses.Making well connected business and government insiders wealthy at the taxpayers’ expense. This is exactly what we have today.
The housing crisis was brought about by many cascading factors but the root cause is due to the monetary policies of the Federal Reserve Bank.The Fed was following a policy (based on Keynesian School of Economics)of lowering interest rates to spur economic activity.The Keynesian School of thought is by lowering interest rates you promote lending and consumption of products and services which in turn will lead to more employment and greater economic prosperity.While this does actually work in the short term and creates a “boom” this artificial lowering of the interest rates also creates a “bust”.Let me explain why.To lower interest rates the government increases the money supply.Meaning they print and circulate more “dollars”.This makes loans cheap (easy to obtain) but because money is now more widely available this now bids up prices on assets (i.e. houses. stocks).This is exactly what happened in the latest housing crisis. Due to the Fed policy people were are getting cheap loans and purchasing houses therefore prices are going up (because of artificial demand).Investors see that prices are rising sharply eager to get in on the action investors start buying up houses which accelerates prices even further.Then builders, seeing a demand start getting loans or investments to build to meet the demand.This is called misallocation of capitol.This misallocation of capitol by consumers, investors and builders will lead to money invested on this asset to be wasted.This scheme works as long as there is a never ending amount of consumers, loans and money to be spent on housing.But as soon as there is no one to keep buying up property, prices begin to level then eventually fall.Builders with excess inventory cannot sell and default on their loans. Wages lag behind inflation which is caused by the money supply expansion policies of the Federal Reserve. Prices are so high on houses they are disproportionate to wages and most people cannot afford a house without prices falling. And the people that did buy houses at the end of the cycle are now stuck with a debt greater than the value of their declining asset (home).This greatly lowered demand will have the opposite effect of the artificial demand created by the actions of the Fed.Businesses created in the “boom” phase will either go out of business completely or lay off workers due to the “new economic reality”.There will be an unwinding of economic activity creating a “bust”.This is history repeating itself.This is what happened in the Savings and Loans in the ‘80’s, .com bubble in the ‘90’s and the roaring 20’s just prior to the Great Depression.
So as you can see Inflation (more specifically monetary Inflation) is directly caused by the Federal Reserve Bank.Although most people do not understand how inflation comes about they do intuitively understand that inflation is bad.Where most people make the mistake is that they feel inflation is a fact of life but it doesn’t have to be.The Federal Reserve had failed miserably to meet one of its primary directives which is to have price stability.Instead, since the creation of the Fed in 1913 the purchasing power of the dollar has fallen to 4% of its original purchasing power.The United States did very well without a Central Bank for hundreds of years.We will do well again without one.The Keynesian School has failed us we should now look towards the policies promoted by the Austrian School of Economics which have been a long time critic of the Keynesian School.
Jonathan accompanied the forlorn woman and her boy a couple miles to her relatives on another farm. They thanked him warmly and invited him to stay. One look told him that the house could barely contain the whole family, so he excused himself and continued on his way.
The road took him to the edge of a river with bridge leading toward a walled town on the other side. “What an odd bridge,” thought Jonathan. The narrow bridge held an imposing divider. On the right-hand side of the bridge, an arrow pointing to the town read, “ENTER STULTA CITY, ISLE OF CORRUMPO.” On the other side of the divider, another similar sign simply read, “EXIT ONLY, DO NOT ENTER.”
That was not the oddest feature of the bridge, however. Piles of sharp rocks and massive boulders blocked the entire entry side of the bridge. To cross in to town, you had to climb over the jagged rocks. Several travelers had dropped their parcels by the way or into the river rather than haul them over the craggy barrier. Others, especially the elderly, simply turned back. Behind one feeble traveler, Jonathan spied a familiar yellow-striped cat with a ragged right ear, sniffing and pawing at a bundle that had been discarded. As he watched, the cat extracted a piece of dried meat from the torn bundle.
In contrast, the exit side of the bridge was smooth and clear. Merchants carrying goods out of town departed with ease.
Jonathan clambered over the entrance side of the bridge, slipping on the uneven footing and hauling himself over the larger rocks. He finally arrived at a great stone wall with a pair of thick wooden gates thrown wide open. People riding horses, people carrying boxes and bundles, and people driving all manner of wagons and carts traversed the roads inside. Jonathan straightened his shoulders, dusted off his tattered shirt and pants and marched through the gateway. The cat slipped in behind him.
Just inside, a woman, holding a rolled parchment, sat behind a table that was covered with bright little medallions. “Please,” asked the woman, giving a wide smile and reaching out to pin one of the medallions onto Jonathan’s shirt pocket, “won’t you please sign my petition?”
“Well, I don’t know,” stammered Jonathan, “But I wonder if you could direct me toward the center of town?”
The woman eyed him suspiciously. “You don’t know the town?”
Jonathan hesitated, noting the chilly tone that had crept into her voice. Quickly, he said, “And where do I sign your petition?”
The woman smiled again. “Sign just below the last name, right here. You’re helping so many people with this.”
Jonathan shrugged his shoulders and took up her pen. He felt sorry for her, sitting all bundled in heavy clothing, sweating profusely on such a pleasant, sunny day. “What’s this petition for?” asked Jonathan.
She clasped her hands in front of her as if preparing to sing a solo. “This is a petition to protect jobs and industry. You are in favor of jobs and industry, are you not?” she pleaded.
“Of course I am,” said Jonathan, remembering the enterprising young woman who was arrested for threatening the jobs of tree workers. The last thing he wanted was to sound disinterested in people’s work.
“How will this help?” asked Jonathan as he scribbled his name badly enough so that no one could possibly read it.
“The Council of Lords protects our local industries from products that come from outside of town. As you can see, we’ve made progress with our bridge, but there’s so much more to be done. If enough people sign my petition, the Lords have promised to ban foreign items that hurt my industry.”
“What is your industry?” asked Jonathan.
The woman declared proudly, “I represent the makers of candles and coats. This petition calls for a ban on the sun.”
“The sun?” gasped Jonathan. “How, uh, why ban the sun?”
She eyed Jonathan defensively. “I know it sounds a bit drastic, but don’t you see—the sun hurts candle makers and coat makers. People don’t buy candles and coats when they’re warm and have light. Surely you realize that the sun is a very cheap source of foreign light and heat. Well, this just cannot be tolerated!”
“But light and heat from the sun are free,” protested Jonathan.
The woman looked hurt and whined, “That’s the problem, don’t you see?” Taking out a little pad, she tried to draw a few notations for him. “According to my calculations, the low-cost availability of these foreign elements reduces potential employment and wages by at least fifty percent—that is, in the industries which I represent. A heavy tax on windows, or maybe an outright prohibition, should improve this situation nicely.”
Jonathan put down her petition. “But if people pay for light and heat, then they will have less money to spend on other things—things like meat or drink or bread.”
“I don’t represent the butchers, or the brewers, or the bakers,” the woman said brusquely. Sensing a change in Jonathan’s attitude, she snatched away the petition. “Obviously you are more interested in some consumer whim than in protecting the security of jobs and sound business investment. Good day to you,” she said, ending the conversation abruptly.
Jonathan backed away from the table. “Ban the sun?” he thought. “What crazy ideas! First hatchets and food, then the sun. What will they think of next?”
Republican National Committee leaders are pushing a resolution accusing President George W. Bush and congressional leaders of embracing socialism. Ralph Z. Hallow of the Washington Times covers this story.
“We can’t be a party of small government, free markets and low taxes while supporting bailouts and nationalizing industries, which lead to big government, socialism and high taxes at the expense of individual liberty and freedoms,” said Solomon Yue, an Oregon member and co-sponsor of a resolution that criticizes the U.S. government bailouts of the financial and auto industries. Republican National Committee Vice Chairman James Bopp Jr. wrote the resolution and asked the rest of the 168 voting members to sign it.
The question locally is will local Hawaii Republicans active and dormant rally around the growing nationwide cause to support personal freedom and oppose expansive local bureaucracy Hawaii Republican leadership has either promoted or turned a blind eye to?
Paths converged with the dirt trail as it broadened into a gravelly country road. Instead of jungle, Jonathan passed rolling pastures and fields of ripening crops and rich orchards. The sight of all that food growing reminded Jonathan of how little he had eaten for lunch. He detoured toward a neat white farmhouse, hoping to find his bearings and maybe another meal.
On the front porch, he found a young woman and a small boy huddled together crying. “Excuse me,” said Jonathan awkwardly. “Is there any trouble?”
The woman looked up, eyes wet with tears. “It’s my husband. Oh my husband,” she wailed. “I knew one day it would come to this. He’s been arrested,” she sobbed, “by the Food Police!”
“I’m very sorry to hear about that, ma’am. Umm, did you say ‘Food Police’?” asked Jonathan. He patted the dark head of the boy sympathetically. “Why did they arrest him?”
The woman gritted her teeth, fighting to hold back tears. Scornfully, she said, “His crime was—well, he was growing too much food!”
Jonathan was shocked. This island was truly a strange place! “It’s a crime to grow too much food?”
The woman continued, “Last year the Food Police issued orders telling him how much food he could produce and sell to the country folk. They told us that low prices hurt the other farmers.” She bit her lip slightly, then blurted out, “My husband was a better farmer than all the rest of them put together!”
Suddenly Jonathan heard the roar of laughter. A heavyset man strutted up the walk from the road to the farmhouse. “Ha!” he sneered, “I say that the best farmer is the one who gets the farm. Right?” With a grand sweep of his hand, the man glared at the woman and her son and commanded, “Now get your things packed and out of here! The Council of Lords has awarded this land to me.”
The man grabbed up a toy dog that was lying on the steps and thrust it into Jonathan’s hands. “I’m sure she can use the help, bud. Get moving, this is my place now.”
The woman stood up, eyes snapping in anger, “My husband was a better farmer than you’ll ever be.”
“That’s a matter of debate,” the man chuckled rudely. “Oh sure, he had a green thumb. And he was a genius at figuring what to plant and how to please his customers. Quite a man!” he added with a sneer. “But he forgot one thing—the Council of Lords sets the prices and crops. And the Food Police enforce the Council rules.”
“You parasite!” yelled the woman. “You always guess wrong, you waste good fertilizer and seed on everything you plant, and no one wants to buy what you grow. You plant in a flood plain or on parched clay and it never matters if you lose everything. You just get the Council of Lords to pay for the rot. They’ve even paid you to destroy entire herds and crops.”
Jonathan frowned, “Is there no advantage in being a good farmer?”
“Being a good farmer is a handicap,” answered the woman as her face reddened. “My husband, unlike this toad, refused to flatter the Lords and tried to produce honest crops and real sales.”
Shoving the woman and her boy off the porch, the man growled, “Enough! He refused to follow the annual quotas. No one bucks the Food Police and gets away with it. Now get off my land!”
Jonathan helped the woman carry her belongings. The woman and her son walked slowly away from their former home. At a bend in the road, all turned to take one last look at the neat house and barn. “What will happen to you now?” asked Jonathan.
The woman sighed, “I can’t afford to pay the high food prices. Luckily, we’ve got relatives and friends to rely on for help. Otherwise, I could beg the Council of Lords to take care of Davy and me. They’d like that.” Bitterly she muttered, “The dependency of others is the source of their strength. The strength of others is the source of their generosity.” She picked up the young boy’s hand and a large bundle in the other. “Come along Davy.”
Jonathan gripped his stomach—now feeling a little more sick than hungry.
The trail widened a bit as it cut through the dense jungle. The midday sun burned hot overhead when Jonathan found a small lake. As he scooped up some water to refresh himself, Jonathan heard someone’s voice warning, “I wouldn’t drink the water if I were you.”
Jonathan looked around and saw an old man kneeling at the shore, cleaning a few tiny fish on a plank. Beside him were a basket, reel, and three poles propped in the mud, each dangling a line in the water. “Is the fishing good?” inquired Jonathan politely.
Without bothering to look up, the man replied, somewhat crossly, “Nope. These little critters were all I got today.” He proceeded to fillet the fish and to drop them into a hot skillet that was set over a smoldering fire. The fish sizzling in the pan smelled delicious. Jonathan spotted the rough yellow-striped cat that he had followed already picking at scraps of fish gut. His mouth watered.
Jonathan, who considered himself an accomplished fisherman, asked, “What did you use for bait?”
The man looked up at Jonathan thoughtfully. “Ain’t nothing wrong with my bait, sonny. I’ve caught the best of what’s left in this here lake.”
Sensing a solitary mood in this fisherman, Jonathan thought he might learn more by just remaining silent awhile. Eventually, the old fisherman beckoned him to sit beside the fire to share some fish and a little bread. Jonathan devoured his meal hungrily, though he felt guilty about taking a portion of this man’s meager lunch. After they finished, Jonathan kept quiet and, sure enough, the old man began to talk.
“Years ago there were some really big fish to catch here,” the man said wistfully. “But they’ve all been caught. Now the little ones are all that’s left.”
“But the little ones will grow, won’t they?” asked Jonathan. He stared at the lush grasses growing in the shallow waters along the shore where many fish might lurk.
“Nah. People take all the fish, even the little ones. Not only that, people dump garbage into the far end of the lake. See that thick scum along the far side?”
Jonathan looked perplexed. “Why do others take your fish and dump trash in your lake?”
“Oh, no,” said the fisherman, “this isn’t my lake. It belongs to everyone—just like the forests and the streams.”
“These fish belong to everyone…” Jonathan paused, “including me?” He began to feel a little less guilty about sharing a meal that he had no part in making.
“Not exactly,” the man replied. “What belongs to everyone really belongs to no one—that is, until a fish bites my hook. Then it’s mine.”
“I don’t get it,” said Jonathan, frowning in confusion. Half speaking to himself, he repeated, “The fish belong to everyone, which means that they really belong to no one, until one bites your hook. Then, the fish is yours? But do you do anything to take care of the fish or to help them grow?”
“Of course, not,” the man said with a snort of derision. “Why should I care for the fish just so someone else can come over here at any time and catch ‘em? If someone else gets the fish or pollutes the lake with garbage, then there goes all my effort!”
With a mournful glance at the water, the old fisherman added wistfully, “I wish I really did own the lake. Then I’d make sure that the fish were well tended. I’d care for the lake just like the cattleman who manages the ranch over in the next valley. I’d breed the strongest, fattest fish and you can bet that no fish rustlers or garbage dumpers would get past me. I’d make sure…”
“Who manages the lake now?” interrupted Jonathan.
The weathered face of the fisherman grew hard. “The lake is run by the Council of Lords. Every four years, the Lords are elected to the Council. Then the Council appoints a manager and pays him from my taxes. The fish manager is supposed to watch out for too much fishing and dumping. Funny thing is, friends of the Lords get to fish and dump as they please.”
The two sat and watched the wind stir a pattern of ripples across the silver lake. Jonathan noticed the yellow cat sitting erect, sniffing and staring at a fish head on his plate. He tossed it and the cat caught the head neatly with one hooked paw. It looked very tough, with one ear torn from some old battle.
Mulling the old fisherman’s tale, Jonathan asked, “Is the lake well-managed?”
“See for yourself,” the old fisherman grumbled. “Look at the size of my puny catch. Seems like the fish get smaller as the manager’s salary gets bigger.”
The Founders’ inspired vision of limited government has been kept alive by the hard work and generosity of Americans who truly cherish individual Liberty… average people like you and me.
In the toughest times… times like we are facing right now in the life of our nation… freedom fighters have always stepped forward for America—armed with whatever it takes and at whatever sacrifice—to answer the call to defend our liberty. That’s how America was born and how we, as a free and sovereign nation, have survived.
A major economic crisis is unfolding in our nation. New government programs are started daily, and future plans are being made for even more costly government expansion. All are based on the belief that we’re in this mess because free-market capitalism and sound money failed. The obsession is with more spending, bailouts of bad investments, more debt, and further dollar debasement. Many are saying we need an international answer to our problems with the establishment of a world central bank and a single fiat reserve currency.
These suggestions are merely more of the same policies that created our mess and are doomed to fail.
It is unimaginable that Congress could be so derelict in its duty. It does nothing but condone the arrogance of the Fed in its refusal to tell us where the $2 trillion has gone. Every Member of Congress and every American should be outraged that conditions could deteriorate to this degree. It’s no wonder that a large and growing number of Americans are now demanding an end to the Fed.
The Federal Reserve created our problem, yet it manages to gain even more power in the socialization of the entire financial system. The whole bailout process this past year was characterized by no oversight, no limits, no concerns, no understanding, and no common sense.
I hear daily from Americans like you who are up in arms about what is going on in our nation. Messages come into my congressional office morning, noon and night. Taxpayers are outraged by the huge bailouts, the massive expansion of government and the refusal by Congress and the leaders of both parties to follow the Constitution.
Many Americans are frustrated—or even outright angry—about failed government policies that just tighten the government’s noose around our necks.
The results of the recent election and the socialist policies that we are seeing proposed are indeed reminiscent of FDR and the New Deal and are equally dangerous. Free market economists and historians have correctly pointed out that Roosevelt’s horrendous economic policies only served to prolong and extend the severity of the Great Depression by many years. When the market is not allowed to work, government-created economic downturns are only made that much worse.
Since the financial crisi s has become more and more apparent and the attempts by the Fed, and Treasury and Congress to solve the problem have become more desperate, my phone has been ringing off the wall with calls from media outlets wanting to interview me and get my opinions about what is going on and how we need to deal with it.
During the presidential election, do you remember how the media scoffed at my suggestions that we were facing economic disaster? They laughed at my calls for limited government, for abolishing the Fed and the IRS, for cutting federal spending at home and abroad to balance our budget, and my call for a sound monetary system.
Today, with the crisis at hand, they are not laughing any more.
But, if we love our nation, it is not sufficient for us to sit back and say “we told you so.”
The task before us is huge. Our challenge is both political and philosophical, but either way the solution must begin by properly educating Americans as to why our current out-of-control, misguided political and financial systems have failed, and what must be done to turn things around.
My Foundation for Rational Economics and Education (FREE) has been waging such an educational effort for several decades. We have had a great deal of success publishing newsletters and books and producing radio and TV programs teaching people about the Constitution and free markets and sound money.
FREE has done much to educate patriots like you and to win the battle for the hearts and minds of Americans young and old. Today, however, given the severity of the crisis we face, we must do even more in our battle to spread the truth It is imperative that we redouble and expand the work and scope of FREE’s educational effort. Right now, while people are still looking for answers and even the media is trying to figure out what in the world is going on, we must step in to fill the void that exists and to provide answers and solutions for the problems that face us.
You have been a faithful supporter of the cause of liberty. You understand the serious nature of the threats that confront us and the dangers posed to our freedom and our very way of life.
It is up to us step up and lead the pro-freedom movement, not just in Congress, but in every community and at every level of government and every institution of learning.
Our ability to lead this movement comes from your tax-deductible contribution to FREE. $50 or $100, or even $250 or more if you can afford it, is urgently needed to help fund the effort to turn our government and our nation around… before it is too late.
Leadership is sorely lacking in Washington. It is time for true leaders like us to step forward and offer the vision needed to point Congress and our nation in the right direction… and to halt the assault on our nation’s sovereignty.
This is a dangerous time. But it is also an historic opportunity. Please help today with your most generous, tax-deductible gift for freedom. We must act swiftly to fill the leadership void in Washington. The time is NOW and the need is urgent!!!
Please log on to www.FREE-NEFL.com and contribute to the incredibly important work of FREE. No gift is too small… and every donation will help me continue to lead the battle for Liberty.
I’m counting on you.
P.S. If you can help with $50 or more, I will send you my “Freedom Report” newsletter for a full year as my “thank you” for your generous help. And for a gift of $100 or more I would like to send you a copy of my book on foreign policy… A Foreign Policy of Freedom.
P.P.S. If you can help FREE with a magnificent gift of $500 or more, I’ll send you a personally autographed copy of my best-selling book, The Revolution: A Manifesto.
Fannie Mae, Freddie Mac, AIG, CitiGroup, the ‘Big 3′ and the union bosses all appear to be getting what they want this season, but the taxpayers are left with the looming debt - and an increasingly sluggish economy to boot. Merry Christmas!
In the past few months the federal government has dangerously overreached into the free market in an effort to jump start the economy. The government - or to be honest, the taxpayer - has already allocated nearly $1 trillion to help with mortgage foreclosures, to prop-up many of the nation’s financial institutions, and to provide a bailout, er…bridge-loan to the auto industry.
Now the Democrats are talking about spending another $500-700 billion more for ‘infrastructure improvements’ and other measures to stimulate the economy and create jobs. Here we go again. The last thing we need is the government in the job creation business. Does anyone truly believe government is more efficient in allocating capital than the free market?
During the holiday season we all want to give more and help those that are less fortunate. If Congress truly wanted to get into the Christmas spirit, the first thing it should do is remove the financial barriers to job creation and economic expansion. How about letting people keep more of their money and spending it as they see fit?
Here’s hoping Congress finds the Christmas spirit…soon.
In accordance with Mr. Gullible’s last wishes, I take up the task of recounting a story that he related to me over the years of our acquaintance. Strange as this story may sound to the reader, I have made every effort to remain true to his account, despite some minor literary license.
A Great Storm
In a sunny seaside town, long before it filled up with movie stars driving convertibles, there lived a young man named Jonathan Gullible. He was unremarkable to anyone except his parents, who thought him clever, sincere, and remarkably athletic—from the top of his tousled sandy-brown head to the bottoms of his oversized feet. They worked hard in a small chandler’s shop on the main street of a town that was home to a busy fishing fleet. It had a fair number of hard-working folk, some good, some bad, and mostly just plain average.
When he wasn’t doing chores or errands for his family’s store, Jonathan would steer his rough sailboat out the narrow channel of a small boat harbor in search of adventure. Like many youths spending their early years in the same place, Jonathan found life a little dull and thought the people around him unimaginative. He longed to see a strange ship or sea serpent on his brief voyages beyond the channel. Maybe he would run into a pirate ship and be forced to sail the seven seas as part of the crew. Or, perhaps, a whaler on the prowl for oily prey would let him on board for the hunt. Most sailings, however, ended when his stomach pinched with hunger or his throat parched with thirst and the thought of supper was the only thing on his mind.
On one of those fine spring days, when the air was as crisp as a sun-dried sheet, the sea looked so good that Jonathan thought nothing of packing his lunch and fishing gear into his little boat for a cruise. As he tacked beyond the rocky point of the lighthouse, he felt as free-spirited as the great condor that he watched soaring above the coastal mountains. With his back to the breeze, Jonathan didn’t notice the dark storm clouds gathering on the horizon.
Jonathan had only recently begun to sail beyond the mouth of the harbor, but he was getting more confident. When the wind began to pick up strength, he didn’t worry until it was too late. Soon he was struggling frantically at the rigging as the storm broke over him with violent force. His boat tossed dizzily among the waves like a cork in a tub. Every effort he made to control his vessel failed, useless against the tremendous winds. At last, he dropped to the bottom of the boat, clutching the sides and hoping that he would not capsize. Night and day blended together in a terrifying swirl.
When the storm finally died, his boat was a shambles, its mast broken, sails torn, and it leaned in a definite list to starboard. The sea calmed but a thick fog lingered, shrouding his craft and cutting off any view. After drifting for days his water ran out and he could only moisten his lips on the condensation that dripped off the shreds of canvas. Then the fog lifted and Jonathan spotted the faint outline of an island. As he drifted closer, he made out unfamiliar headlands jutting from sandy beaches and steep hillsides covered by lush vegetation.
The waves carried him on to a shallow reef. Abandoning his craft, Jonathan swam eagerly to shore. He quickly found and devoured the pink guavas, ripe bananas and other delicious fruit that flourished beyond the narrow sandy beach in the humid jungle climate. As soon as he regained some strength, Jonathan felt desolate but relieved to be alive. He actually grew excited at his unintended plunge into adventure. He immediately set off along the white sand beach to discover more about this strange new land.
Hawaii Liberty Chronicles on Saturday, December 6, will begin releasing in chronology, portions of The Adventures of Jonathan Gullible by Ken Schoolland every Saturday.
This highly acclaimed, award winning work began as a radio series on KHVH in Hawaii and was later broadcast as a dramatic production in Alaska. This book has since been translated into more than twenty languages.
Schoolland is presently an associate professor of economics and political science at Hawaii Pacific University. Prior to that, he was the Director of the Master of Science in Japanese Business Studies program at Chaminade University of Honolulu and head of the Business and Economics Program at Hawaii Loa College.
Following his graduate studies at Georgetown University, he served as an international economist in the U.S. International Trade Com¬mission, the U.S. Department of Commerce, and on assignment to the White House, Office of the Special Representative for Trade Negotiations.
Schoolland left government for the field of education, teaching business and economics at Sheldon Jackson College in Alaska. He also taught at Hakodate University in Japan and wrote a book, Shogun’s Ghost: The Dark Side of Japanese Education, which has been published in English and in Japanese.
Schoolland is a member of the Board of Directors for the International Society for Individual Liberty.
The true antidote to racism is liberty. Liberty means having a limited, constitutional government devoted to the protection of individual rights rather than group claims. Liberty means free-market capitalism, which rewards individual achievement and competence, not skin color, gender, or ethnicity.
Li Zhao was born in Tianjin, China in 1958. Her father was a heart surgeon and her mother was an English teacher at Nankai University. For 10 years her family was exiled to the countryside near the Vietnamese border.
She experienced first-hand the tyranny of the Communists during the Cultural Revolution. This was also the experience of many of you and of your families. This caused her to appreciate the importance of individual liberty.
Li immigrated to America in the early 1980’s, studying at the University of Minnesota and then graduating from Chaminade University with a Master of Science in Japanese Business Studies. She has since taught Chinese at several schools, Punahou, Iolani, HPU, and now at Hawaii Baptist Academy. She is also the Youth Director at the Chinese Lutheran Church of Honolulu.
When she arrived in Hawaii she was shocked, shocked to find that many Hawaii politicians talked and behaved as if they wanted to bring communism to America. Having never had a chance to speak her mind in China, she decided that she had to take advantage of the freedom of democracy in America to challenge the other politicians, no matter how powerful they are.
Li Zhao is now the Chairperson of the Libertarian Party of Hawaii. She believes that the Libertarian Party shares her principles of individual liberty as no other political organization does.
The libertarian principle is this: that no one should take freedom away from peaceful people. The role of government should be neutral to protect people; government should not be used by various powerful people to take away the freedom of citizens who peacefully mind their own affairs.
If you and I do not have the right to use aggressive force against our neighbors, then we do not have the right to ask government officials to do this for us.
This leads to freedom in the marketplace, to civil liberties in our personal lives, and to a non-interventionist foreign policy abroad. This is not only the most practical and humanitarian basis for society, it is also the most ethical.
Editor’s note: Prices exampled reflect 2003, when this article was written (Schoolland was in seventh grade).
There is sugar in your candies, cookies, drinks, cereal and most other foods you eat. It is even in some toothpaste and medicine. If the United States would support a free market, then the prices of imported goods such as sugar would go way down. The free market means buying or trading goods with whomever you want, without regulations or taxes on your goods. I am going to show you how the free market would help us, using the example of sugar.
The price of sugar in the United States is about 22 cents per pound, but in the Philippines it is only about 7 cents per pound. That is almost one third of the price of sugar in America! Suppose, you have 3 dollars, and you want to buy some sugar. Do you want to spend 3 dollars or 1 dollar for the same amount? If you spend the 1 dollar, you have 2 dollars left over to buy other things.
The only problem is, the government won’t allow it. It is a crime to buy more than a regulated amount from outside the United States. You can be sent to jail and called a smuggler if you bring in too much sugar. Some people say that if we are allowed to buy sugar from outside the United States, then all of the money will leave America. But actually, if we spent the 1 dollar out of the United States, then we would have 2 dollars to spend on other American goods.
Yes, I know that the precious 1 dollar left the country, but is that really so bad? The government sends billions of dollars in foreign aid, to countries like the Philippines, every year. If the Filipinos could earn a dollar selling sugar to us, then maybe they wouldn’t need a dollar of our aid. This could help end poverty in the Philippines. In any case, they could spend that dollar back to America, to buy farming tools to help them develop.
Did you know that some farmers, who can’t profit by selling legal products, such as sugar, switch to selling illegal products, such as drugs. If those farmers could profit from legal products, they might not risk their lives in the drug industry.
Why does the government want the prices so high? Well, I don’t know, but stopping us from buying from other countries is not enough. They even pay farmers to destroy crops!
All of this hurts us, the consumers who have to pay higher prices, and us, the taxpayers, who have to pay higher taxes. I plan to write letters to our lawmakers and urge them to change this harmful policy. Please help me.
It is time to take charge of our own lives. We must seek free markets and greater personal liberty. This will not happen with politics as usual. Don’t waste your vote on the status quo.
~ Zhao Li, Hawaii Congressional District 1 candiate
This article was originally published in the Hawaii Reporter on April 27, 2008 as an analysis and vision statement in response to Governor Linda Lingle’s economic speech given on April 25, 2008. The only modification made from the original is a hyperlink to an article on the words, Jones Act. This initial article has developed into an ongoing series. Re-publications are forthcoming.
With much respect to the Honorable Governor Linda Lingle, many Hawaii citizens can’t help but wonder how often she rides around Oahu and sees the tell-tale signs of Hawaii’s failing economy? Such as the growing homeless population, rising food and energy costs, the rising cost of education and more residents uprooting than laying roots. Her recent speech about the current state of Hawaii’s economy - “Highlighting Hawaii’s Economic Challenges and Opportunities” - suggests a disappointing amount of disconnection with the hardships of the people of Hawaii.
Gov. Lingle mentioned that “reverberations from the U.S. economy are now being felt worldwide.” She then claims “that many of these stories [about a failing economy] simply don’t apply to Hawai‘i.” She then paints a healthy picture of Hawaii’s economy by pointing at several examples by using statistics that diverts the listener from realities of the issues.
First she claims that, although Hawaii’s economy has slowed down, there is still a projected growth of GDP by 2.5%. If the economy is slowing down and there is an increase in GDP growth, it is most likely to be the result of inflation. As more money is printed by the Fed in order to stimulate the economy, there will be a growth in GDP as more people spend this money. However, this only lasts temporarily as the value of the dollar will continue to decline as more money is printed. This is one reason why the cost of food and gas is increasing. It simply takes more money to purchase the same amount of goods.
Next she mentions the state’s low unemployment rate, the 4th lowest in the nation. The employment rate is often misunderstood. It is not a measure of the percentage of people that do not have a job. It is a measure of the percentage of the labor force that doesn’t have a job but are actively looking for work. So, if the unemployment rate is quoted as 5 percent, it does not mean that 95 out of every 100 people are working. It could mean, for example, that out of every 100 people, 60 are working, 35 are not working and don’t want to be working, and 5 are not working but are actively looking for employment. Thus using this rate tells us nothing. Doesn’t that make you wonder how many of the 1,900 workers laid off from Aloha Airlines were able to find a job. At least our Governor is cautiously optimistic that they will find work.
Gov. Lingle also claims that Hawaii has escaped the sub-prime mortgage crisis, while she does admit that foreclosures have increased in Hawaii. Even though Hawaii is ranked among the lowest in states in regards to foreclosure rates, we must always look at the numbers in perspective. Hawaii’s March foreclosure rate was 84.6 percent above the same month a year ago. The impact of the crisis on the mainland is rippling to our islands as many home buyers here in Hawaii are from the mainland, and are purchasing their second home. These numbers are decreasing, and will also impact that state’s economy.
She also states that, “our Administration will continue to be prudent in our spending and careful with taxpayer’s money. And I want to be clear, that I am committed to leaving the state budget in a better condition than the one in which I found it.” Is this why she called for a $306.7 million increase in the state’s operating budget, which would bring it to $10.8 billion? She also wanted a $100.2 million increase in the general-fund portion of the budget, which would take it to $5.4 billion. Our Governor’s policies are more in line with the out of control spending akin to the Democratic Party.
“When studying the economy, we often look back in history for insights and ideas. I believe it is worth taking a trip back more than two centuries to America’s infancy to heed the wisdom of our founding fathers,” says Lingle. She quoted Thomas Jefferson.
Here’s another great quote from Jefferson: “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” The biggest threat to our economy is the unconstitutional Federal Reserve, which is the root of our current economic crisis. By allowing this organization to print money out of thin air has dire economic repercussions. History has already shown how the Fed can do great damage, such as with the Great Depression. The only solution is to allow the free market to manage our money supply.
We are now peering into possibly the most painful economic period in our Hawaii’s history since statehood. Our Governor has over two years left to do her absolute best to free up our economy’s markets and lower state spending as best as she can.
It is time for significant reduction in state government size to reduce spending by eliminating the least efficient and productive portions of departments or departments in whole through streamlining.
Gov. Lingle must also promote a mandatory sunset law for the State of Hawaii that would automatically terminate all agencies or programs if they are not re-enacted by the Legislature every ten years.
It is time to open up many more free trade ports throughout the state to increase commerce and competition internationally. She must aggressively lobby for the repeal of the Jones Act that will lower costs of shipped in goods for the benefit of all Hawaii. The rest of the West coast and Alaska must be opened up to ship to Hawaii. This also results in lower fossil fuel usage.
With our fertile land and climate surrounded by ocean she must also pursue economic diversification in the most basic of needs. Unused agricultural land must be sold or leased at little or no price to skilled farmers rather than yield no production year after year.
Aquaculture must become another avenue of high produce for our state. Our high schools and universities must train up a generation of skilled farmers to freely and competitively yield optimum production for the sake of our state’s self-sufficiency.
We cannot afford any longer to not be at the forefront of solar and waste to energy technologies. Washington Place and the State Capitol could be the first to implement the latest and most cost efficient solar power technology.
Our Governor must lead our Legislators to mitigate the impact of governmental regulations on small businesses and to ensure that small businesses are adequately represented in the regulatory process.
Gov. Lingle would achieve saint-hood in the eyes of Hawaii’s public if she successfully led the charge to end the excise tax on food, medical services and housing in her last two years.
There are many more ways our honorable Governor could endeavor to free Hawaii’s economy. If she were to accomplish the third and fourth points alone, the final two years of her governorship would go down in our state’s history books as economically legendary.
Since statehood we have succumbed to a debilitating dependency on Federal dollars. The well is in the early stages of running dry. For Hawaii’s economic survival we must no longer settle for relegation to beggar state status, but instead double and triple our efforts towards the necessary competitive production of aqua and agricultural commodities. Our leaders must do what is right for the long term.
Within the next generation we must not only achieve energy independence, but also become a great exporter of what other states and nations need at competitive rates. We have incredibly challenging days ahead, but we must be determined to pull together and grow the Hawaii that the rest of the world will desire to be. The economic bottom line is that our great state of Hawaii must produce and our leaders must be our lead producers.
Those fighting for free enterprise and free competition do not defend the interests of those rich today. They want a free hand left to unknown men who will be the entrepreneurs of tomorrow…
In my discussions with friends (especially who’ve been mainly exposed to political science and economics through UH colored lenses) I’ve several times encountered the false dilemma that you either believe in fixed markets (corporatism) or fair markets (socialism). This false dilemma smears the word capitalism because of either the unbelief in or ignorance of genuinely free markets. In the case of unbelief, free markets are either sub-categorized under or seen as the dangerous bridge to corporatism. In the case of ignorance, free markets are synonymous with fixed markets. Sometimes impassioned and entertaining rhetoric accompanies the ignorant position.
Bob Murphy described some of the response he’s received about his book.
“… you’re always gonna get a few people that just call me a corporate shill and things like that… but the reaction’s been mostly positive.”
