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Keith Halderman

A front page headline in today’s Washington Times reads ”Chavez survives recall; observers find no fraud.” Now, why should anyone be surprised by this? As the link to Greg Palast’s article, provided by William Marina directly below, points out the rule of Hugo Chavez has provided tangible benefits to the poor Venezuelans who make up the overwhelming majority of the population. No need for fraud or intimidation on the part of Chavez existed and any distortion of the vote that occurred most likely went in the other direction.

In an earlier post Pat Lynch takes a much more hostile view of Chavez’s victory comparing it to the most recent electoral triumph of Saddam Hussein. He states that “Elections were held in the Soviet Union and we all know the results of those exercises in freedom and liberty. I suspect Chavez to be only a shade better than the Kremlin when it comes to managing vote counting and the like.” I strongly disagree with the implications of this statement and believe the Venezuelan election results to be a genuine expression of the will of the people involved. Although, I think that a comparison with the last election in Iraq is apt.

Both elections were referendums in the sense neither leader faced an opponent and in each case the leader won an overwhelming victory. As I have stated above, I credit Chavez’s victory to his popular policies but I do acknowledge that fear played a role in Hussein’s over 90% win. The question is, how big a role?

Since weapons of mass destruction and revenge for 9-11 have disappeared as reasons for our invasion of Iraq, there has been a great deal of ink spent on the evils of Saddam Hussein’s regime. All other dictators pale in contrast, even the ones in Zimbabwe and North Korea who are systematically starving their people to death. However, almost all the prose concerning Iraqi mass graves and torture chambers ignore two salient facts: the people in the mass graves got there largely because they responded to a call for an uprising by the first Bush Administration who then left them hanging and that only a tiny minority of politically active people were ever subject to arrest and torture. My wife grew up in Taiwan when it was ruled in a very dictatorial fashion by Chiang Kai-Shek She has told me that almost all people simply did not have anything to do with politics and were therefore left alone.

I remember seeing a PBS special on the career of Saddam Hussein a while back and it pointed out that when the oil money started coming in Hussein acted like Chavez is acting now, he spread it around in the form of roads, hospitals, schools and other items that the people wanted. He became very popular with the Iraqi equivalent of Joe Sixpack because up until the Gulf War life continually got better under Hussein’s rule and he saved the Iraqis from rule by the Iranian Mullahs. Any anger about the decline in conditions after the Gulf War was directed towards the U.S., not Saddam Hussein, because we imposed sanctions.

Our biggest intelligence failure before this most recent invasion was to look at that 90% plus vote for Hussein and write it all off to intimidation. We failed to see that the large majority of the Iraqi citizens still supported him and hated us. Therefore, there would be no roses strewn at the feet of liberators only the resentment, revenge, and violence reserved for conquerors. So far, over 900 hundred American soldiers have paid for that mistake with their lives.

If all of the people who wax so eloquent about what a wonderful thing regime change has been for the Iraqi people really cared about those people, they would be arguing that we give the Iraqis the only thing they have ever really wanted from us, that is to be left alone by us.


Wednesday, August 18, 2004 - 02:23


Aeon J. Skoble
Call me insensitive, but this seems to me just plain silly. Timothy Noah has a piece at Slate taking Dairy Queen to task for insensitive product naming - he claims they made a colossal blunder naming their coffee+ice-cream+crushed-ice drink the"MooLatte" because that"sounds like""mulatto," and that's offensive. Part of the reason he claims it's offensive is that the drink is light-brown. Of course, it's only light brown if you order the Mocha - the French Vanilla and Cappucino are different colors. So let me see if I get this: not only are there offensive words we ought to avoid, but sensitivity also requires us to avoid words that sound like offensive words? Please. (BTW, I've had their Mocha MooLatte. It's a silly name, but a very tasty concoction, if you've got a caffeine jones and a sweet tooth.)

Wednesday, August 18, 2004 - 08:50


Chris Matthew Sciabarra

I've been thoroughly enjoying watching a number of events at the Athens Summer Olympics, everything from gymnastics to the adventures of 19-year old American swimming phenom Michael Phelps and awesome Aussie swimmer Ian Thorpe (who has fins for feet: size 17!!). Thorpe won gold over Phelps the other night, but the Aussie team lost to the US team last night.

Meanwhile, today, the Olympics return to the ancient city of Olympia... for the very first time in 16 centuries. Things are not quite the same as they were back then; the word"gymnasium," after all, comes from the Greek"gymnos," which means naked, and unlike the ancient competitors, the modern ones don't perform in the nude. But, like it was back then, the Olympia venue still has no seats for spectators (the Greek"stadion," from which"stadium" is derived, means"a place to stand"). So, the spectators will stand or sit on the ground while watching such events as the shot put

This return to Olympia has some personal meaning for me as well; though I've never visited the city, it is the birthplace of my maternal grandparents, who came to America early in the 20th century. (My grandfather was actually the founding pastor of the first Greek Orthodox Church in Brooklyn, the Three Hierarchs Church, where I was baptized.) By contrast: my paternal grandparents came from Porto Empedocle, Sicily (named after the Agrigentine philosopher and poet Empedocles, whom Aristotle called the inventor of rhetoric and whose own grandfather was victorious in horse racing at the Olympics in 496 BCE). I often joke that my"heritage" is of gods... and godfathers. Still, like many, I'm one of those Greek-Sicilians with no ties to either the diner business or the mob...


Wednesday, August 18, 2004 - 08:57


Keith Halderman
Now days, the television show with the strongest libertarian content is Penn and Teller’s Bullshit on Showtime. They have looked at such diverse subjects as recycling, PETA, the funeral industry, the Bible, and the war on people who use certain kinds of drugs, in a very entertaining way, always using a free market and individual liberties perspective. Tomorrow night, August 19th, at 10PM (it will be repeated numerous times) they take on one of our most sacred of cows, 12 step programs. It is certain that they will remain consistent in their point of view because the show will include Jeff Schaler author of Addiction is a Choice.

My favorite Penn moment did not occur on Showtime, however, it came during Politically Incorrect. They were discussing a TV appearance by Bill Clinton related to that woman he did not have sex with. Penn said he was a little disappointed because he was hoping for an on the air suicide.


Wednesday, August 18, 2004 - 11:08


Pat Lynch
While I'm a bit surprised my lament about Venezuela has prompted two negative reactions, I'll take this opportunity to suggest, at the very least, some sort of musical might come from this. An Evita sequel? Perhaps with Antonio Banderas playing Chavez? Don't cry for me Venezuela, the truth is I've slept with Castro! He's such a cutie, not such a bastard....

First, Bill's quote from Wanniski. Agreed that it often takes Nixon to go to China, but I suspect anyone who has Chavez's views and ties is NOT going to go supply side. Remember this isn't Brazil. Chavez has tons of oil money coming into the country; he's not a leftist who's being forced by market forces to compete and liberalize. Call me crazy about this (it wouldn't be the first time), but I don't see Chavez calling up the Chicago econ department for advice anytime soon.

Let me address Keith's lengthy blog with a lengthy reply. I think he and I may disagree slightly less than it appears on the surface. Let me start there.

I agree that basically if the election result is" certified" by a collection of various international organizations, that's fine - give the people what they want as the Kinks would say. I would hope you and I would agree that elections as preference aggregation tools are deeply flawed, as public choice theory has shown us, but ok, I'll grant you in some vague way the"people" have spoken. But I'd say in very much the same way that I'm always pretty depressed when the people speak in the U.S. after elections, I think this result in Venezuela fits that category.

And let's not kid ourselves. Chavez is a bad guy who violates basic human rights, intimidates opponents and uses state power to oppress people. Let's leave the BBC out of this and go to Human Rights Watch who in April sent Chavez an open letter condemning the actions of the military in beating opponents and random by standers, throwing tear gas in their eyes, shocking them with electric batons, and spraying them with high pressure hoses. Did that change the results so that he won? Maybe, maybe not, but I for one wouldn't defend his human rights record.

Moreover I'll take serious issue with two of the broader claims you seem to be making (and if I'm wrong here I apologize). First, you seem to say that Chavez is, in fact, helping the poor of Venezuela. Nothing could be further from the truth. He's violated the rule of law and basic property rights; he's invited thousands of Cubans into the country to promote socialism; he's not introducing markets, rule of law, or any limits on his own power. He opposes the proposed FTAA that would open up free trade throughout South America. If state run literacy programs and other" crumbs" can be seen as some strange bread and circus advantage to the poor I don't understand it.

Before I make my second point, just to set the record straight, I opposed the Iraq war, and have done so consistently on this blog. Second, just because people are"left alone" because they stay out of a dictators way, doesn't somehow make anything that those dictators do ok. I'm confused by your Iraq/Taiwan point. Are you saying the people in those mass graves are our fault? I'd agree that the Bush administration was partially responsible for some of what went on after the war, but let's not put our heads in the sand - Saddam is a really bad guy who killed a lot of people. We can agree that our removal process stunk, but let's not suggest we forced him to slaughter everyone they are digging up. He killed a lot of people who opposed him, and the last time I checked, opposing political power was the sort of fundamental right that libertarians were fighting for.

Again I may not be understanding your broader point about our invasion - which I agree was wrong. But I don't see how blaming us for Saddam's actions makes that claim.

Let me see if I can use an historical example. Everyone agrees that Mayor Richard J. Daley ruled Chicago using techniques that were often illegal and consistently unethical. However people also agreed that the guy had wide spread support. Now, what to do with him? We'd like him to play by a fairer set of rules and protect basic liberties. I'd agree invasion is not the way to handle this, but should we not feel frustration that Venezuelas did not pick a path towards greater openness and liberty?


Wednesday, August 18, 2004 - 12:46


Ivan Eland
August 17, 2004

American athletes at the heavily fortified Olympic games in Athens have been assigned bodyguards by the U.S. State Department and have practically had to assume secret identities in an attempt to remain safe. Fearful of a terrorist attack, American spectators have stayed away from the games in droves. Both the Republicans and the Democrats seem to be throwing up their hands and capitulating to the notion that the world has simply become more dangerous. But this more dangerous world is very much one of the U.S. government's making.

At an international event where pride of origin is usually encouraged, U.S. athletes are apparently being told not to wear t-shirts that would identify them as Americans. In a great understatement, one Olympic coach was quoted in the San Francisco Chronicle as saying, “How the world is now, America isn't the favorite country.” One might ask how the “Home of the Free and the Land of the Brave”-a model of political and economic freedom geographically removed from most centers of conflict-has put its citizens in mortal danger by becoming so generally despised.

The answer is simple. Although the U.S. government repeatedly warns its citizens of imminent terrorist attacks and takes draconian measures-both at home and abroad-in the name of “national security,” it really does not have many incentives to actually make those citizens safer. According to an anonymous active intelligence official, who has almost two decades of experience in the fields of terrorism, militant Islam, and South Asia and who is the author of Imperial Hubris: Why the West Is Losing the War on Terror, “One of the greatest dangers for Americans in deciding how to confront the Islamist threat lies in continuing to believe—at the urging of senior U.S. leaders—that Muslims hate and attack us for what we are and think, rather than for what we do.” Yet President Bush continues to tell the American public that the terrorists “hate us for our freedoms.” The president's statements fly in the face of the opinions of experts on Osama bin Laden's motivations—such as the aforementioned author and Peter Bergen, one of the few Western reporters who have interviewed the head of al Qaeda. President Bush's rhetoric also contradicts poll after poll in Islamic countries (and much of the world), which indicate that those populations don't hate U.S. culture, freedoms, wealth, or technology, but U.S. foreign policy. So why does the president keep making such statements?

Like the Bush administration's misleading statements concerning a collaborative relationship between al Qaeda and Saddam Hussein, such deception hides what really drives U.S. government policy. But no wacky conspiracy theories need be conjured up. Research by political scientists and public choice economists indicate that in the absence of adequate public scrutiny, highly organized and well-connected vested interests-both inside and outside of the government-drive government policies. Because such policies concentrate their benefits on those interests, the pressure groups care greatly about them and lobby the U.S. government for their implementation. Unfortunately, the policies' costs are less noticeable because they are distributed widely among taxpayers and the general public. Also, the smokescreen thrown up by politicians masks what is really going on. So even though the U.S. government is more often concerned with defending vested interests than with protecting the bulk of its citizenry, only rarely is there a public uproar.

For example, in the case of the invasion of Iraq, vested interests benefited from destroying an enemy of Israel and getting new U.S. military bases on the oil-rich Persian Gulf to replace those being lost in Saudi Arabia. The Bush administration rhetorically exaggerated the threat from Iraqi “weapons of mass destruction” and implied a false connection between al Qaeda and Saddam Hussein to hide the real reasons for the invasion. Unfortunately, the common citizen is left with the bill: $200 billion and counting, the unnecessary deaths of many U.S. servicemen and Iraqis, and inflamed world opinion against the United States that will very likely lead to more-not less—terrorism against American citizens at home and abroad.

More generally, special interests, such as the oil companies, lobby the U.S. government for intervention overseas to serve their interests. When this results in blowback terrorism against American citizens-for example, the September 11 attacks-something has to be done to hide the government's own generation of demand for its provision of “security.” The intense anti-U.S. hatred of al Qaeda has to be ascribed to American freedom, culture, wealth, or technology, all of which cannot be changed desirably or easily. By contrast, American citizens-including U.S. athletes and spectators at future Olympics-could be made much safer by rapidly making a meddling U.S. foreign policy overseas more humble. But then the latter change would be a new form of terror-striking fear into the hearts of the U.S. foreign policy elite and the interests they represent.

Wednesday, August 18, 2004 - 15:44


Roderick T. Long
[cross-posted at Austro-Athenian Empire]

Last week I linked to an audio file of my Mises Institute anarchism talk. There’s now a written transcript online as a PDF file here.

Wednesday, August 18, 2004 - 22:32


David T. Beito

Tuesday, August 17, 2004 - 12:47


William Marina

Not all Free Market advocates are opposed to Hugo Chavez. Jude Wanniski, under the title"Three Cheers for Hugo Chavez," posted a link to the column by the BBC’s Greg Palast, along with this comment:

"There`s been lots of ink spilled on the recall election of President Hugo Chavez of Venezuela, but most of it that I`ve seen in the major media gave little indication why we should have expected his victorious outcome in Sunday`s voting. Yes he`s a lefty, but what have the right-wing political leaders of Latin America done for their economies in recent years? All Chavez needs is a little more supply-side advice on macro-economics and Venezuela could boom, even with lower oil prices. Greg Palast, who covers Venezuela for the BBC`s"Newsnight", got his arms around the relevant issues in this analytical piece that appeared in the London Guardian Monday."

Dick Cheney, Hugo Chavez and Bill Clinton's Band.


Tuesday, August 17, 2004 - 17:57


Donald J. Boudreaux
I just returned from lecturing in Bulgaria and vacationing on Cape Cod. I took the latter opportunity to read, for the first time, George Eliot's magnificent novel Middlemarch. It crackles with wise insights. Here are just a few:

"Wise in his daily work was he:
To fruits of diligence,
And not to faiths or polity,
He plied his utmost sense.
These perfect in their little parts,
Whose work is all their prize --
Without them how could laws, or arts,
Or towered cities rise?" [Chap. 40]
....

"I think we have no right to come forward and urge wider changes for good, until we have tried to alter the evils which lie under our own hands." [Chap. 39]
....

".... there is nothing more thoroughly rotten than making people believe that society can be cured by a political hocus-pocus." [Chap. 46]

Monday, August 16, 2004 - 08:36


Chris Matthew Sciabarra

My colleague, David Hinckley, long-time columnist for the NY Daily News has an interesting compendium of Talk Radio responses to the McGreevey story. Just take a look here and see how"McGreevey gets kind words from Rush (!)" ... that's Rush Limbaugh, not Rush the progressive rock band.


Monday, August 16, 2004 - 08:42


Pat Lynch
Tough news this morning that Hugo Chavez apparently survived the recall attempt against him by a much wider margin than anticipated. Dems and Republicans alike have been strangely silent about this Castro wanna be this year as the process towards his recall progressed, and I hope that's because they believed any anti-Chavez rhetoric would have hurt the opposition.

As random speculation, I wonder if Saddam would have won a referendum before the invasion? Elections were held in the Soviet Union and we all know the results of those exercises in freedom and liberty. I suspect Chavez to be only a shade better than the Kremlin when it comes to managing vote counting and the like.

Chavez wouldn't shut the oil taps off to be sure, but he's clearly a nut job who's invited tens of thousands of Cubans into the country to staff enormous public works projects. Building the free society it ain't, and for those of us hoping for its progress, this is clearly a step back.


Monday, August 16, 2004 - 17:43


Chris Matthew Sciabarra

While commentators continue to wonder if there is any hope of avoiding catastrophe in Iraq, others, such as Christina Asquith, focus on the important story of trying to rebuild education in that war-torn country. Asquith's essay,"With Little More Than Hope, Iraqi Colleges Try to Rebuild," which appears in last week's edition of The Chronicle of Higher Education, focuses on the fact that"after 35 years of Saddam, educators contend with too much violence and too little money from the U.S. and its allies." The first issue for the universities, indeed, for all of Iraq, is the issue of security."University presidents, who already have personal bodyguards, were concerned about radical Islamic groups, looters, death threats, and angry students," writes Asquith."After a tumultuous academic year under U.S. guidance, the true test of whether Iraqi universities will emerge from 35 years of dictatorship and war as an independent and free-thinking system is about to begin."

The effort has been spearheaded by John Argesto, who, as leader of the American team, advised Iraqi higher education authorities, leaving them"structures for a self-governing system, including a democratic procedure for hiring and firing administrators, and a 'declaration of academic freedom and responsibilities' that forbids religious and political intimidation. Those steps were hailed as major changes after 35 years of centralized control and intimidation by Mr. Hussein's Baath Party."

But with little money forthcoming, and the omnipresence of violence, many higher educators live under a cloud of fear. In fact, Asquith observes,

dozens of intellectuals—including the former president of Baghdad University; the deputy dean of the Medical College at Basra University; and Abdul Latif al-Mayah, a political-science professor at Al-Mustansiriya University—have been assassinated by unknown assailants. Student demonstrations and Islamic militias have shut down campuses. The university presidents voted to postpone student elections in the spring, the first open voting scheduled on campuses in three decades, out of fear of student-on-student violence. In this climate of terror, few feel safe to speak freely. ...
All Iraqi universities and colleges reopened after the war, but attempting to carry on has often seemed to students and staff members like an exercise in futility. Some students and professors lost theses, lectures, and years of research in the looting. Heavy traffic, bomb threats, and U.S. roadblocks have made attendance spotty on campuses in Baghdad. With no electricity, students had no fans, air-conditioning, or lights to study at night. They were often asked to phone their professors the night before an exam to see if it was still scheduled. Professors, many of whom have received anonymous death threats and seen their colleagues assassinated, were sometimes reluctant to show up for work. Protests by students and staff members against the U.S. attack on Falluja shut down most universities in April. The University of Karbala was taken over by supporters of Moktada al-Sadr, a radical Islamic cleric, in the same month, and not even Mr. al-Bakaa, the minister, is certain of its current status. Westerners and some Iraqis traveling on highways outside Baghdad have been kidnapped or ambushed. As a result information about life on campuses in Karbala, Mosul, or Basra is hard to obtain."It was a very difficult school year," says Hussain Ali, who graduated in June from the College of Engineering at the University of Baghdad."The university was closed three times for more than a week. Many of us couldn't get to college because of the traffic. Professors were killed by students. The students say, 'If you don't pass me, I'll kill you.'" Worst of all, professors and students say, is that after 35 years of intellectual repression and 14 years of U.N. sanctions, the intellectual renaissance that Iraqi academics had hoped would follow Mr. Hussein's fall has not come about.

Worse still, even those American professors who have attempted to help stabilize the situation have maintained that

the issue of safety has discouraged them from pursuing projects in Iraq. ..."The security situation deteriorated so quickly it was difficult to get people's attention—and it seemed there were more pressing needs than exchanges," says Richard Couto, a professor of leadership and change at Antioch University. He visited Baghdad twice last year and proposed taking Iraqi professors to the United States for training in the latest research techniques. But over time he lost motivation, he says:"I also despaired of the hopeless mess that we seem to have made in Iraq and that there was any solid ground on which to stand and work for change."

There are goals: marketizing the structure of the universities, wiring them for the Internet, encouraging debate and inquiry. But there is still no money to bring these goals to fruition.

Of Iraq's two dozen ministries, the one for higher education was the last to receive funds, and it got the least. The Ministry of Education, which runs the country's elementary and secondary schools, has benefited from a $65-million contract won from the U.S. government by an American company for rebuilding efforts, as well as $103-million from the World Bank and $100-million expected from other donor nations. The Ministry of Higher Education, however, received less than $20-million in benefits from contracts between the United States and American universities early on, along with about $20-million from donor nations, and so far nothing from the World Bank.

Crony corporate arrangements aside, the fact is that

Iraqi higher education was in a shambles after the war. An estimated 80 percent of the country's 22 universities and 43 vocational colleges had been damaged, some beyond repair. One campus of Iraq's third-largest institution, Basra University, was a collection of empty hulks and piles of rubble. The higher-education ministry estimated a nationwide rebuilding cost of $1.2-billion."We're not talking about libraries and labs; we need chairs," Salman D. Salman, Basra's president, said in December as he stood in a classroom with no windows or door."We need 15,000 chairs."

Agresto had hoped to create a decentralized university system"free from religious influences," while the new Iraqi Minister of Higher Education, Ziad Abdel Razzaq Aswad,"a member of a radical Sunni Islamist group," has fought for greater centralization of the universities."He expected professors to ask the government for permission to travel, as they had under Mr. Hussein's regime. He wanted the ministry to again control the hiring and firing of deans."

One thing Argesto aimed for was the bolstering of liberal arts to assist in the building of a democracy. But Argesto is frank:"I worry about a country where history and heritage and literature aren't prized, where philosophy and political philosophy and normative studies aren't basic parts of the curriculum. For a country to produce leaders, it has to be a country where people can think clearly and write persuasively and understand more than just their specialty."

Indeed, compartmentalization and a lack of integration are not characteristics only of American universities. Nation-building of the kind sought by the Bush administration requires the building of an integrated understanding of the free society (something the neocons know nothing of), as well as the nourishment of democratic"know-how," precisely the kind of tacit traditions and customs that Iraq has never really had.

Still, as"professors and students are struggling with a new academic discipline: democracy," they introduce such courses as"Human Rights and Public Liberties" and even Ph.D. programs on"Democracy and Human Rights," neither of which were possible under the Hussein regime. These courses are the ideological replacements for the"Baath Party indoctrination course" that was so prevalent under Hussein."In most cases, however, students say they have been presented with no new books or ideas; they just share photocopies of lecture notes by professors who haven't left Iraq in decades."

Other troubling cultural changes are underway, however. Whereas Iraq was among the most"secular" of states in the Islamic Middle East, now, the power of radical Islam is being felt like never before.

Changing the curriculum depends first on maintaining security on the campuses and persuading students not to turn to radical Islamic groups for stability. ... Some students say the slowness of reform efforts allows fundamentalist religious groups to gain a foothold at the universities and misrepresent democracy to students who have little understanding of it. Students on many campuses say the groups have been pressuring young women to wear the Islamic head scarf and breaking up boy-girl couples strolling on the campus. Some students believe that the religious groups are behind the assassinations of professors.

"The uncertainty is fatal to freedom of speech," Asquith writes."In April members of Mr. al-Sadr's militia descended on dozens of campuses in black clothing and armbands, holding rallies and threatening students. Even administrators were hesitant to oppose them. Many women covered their heads just to be safe." As one ministry official puts it:"Every student who has an idea thinks he also must have a machine gun. They think this is democracy. We must show them what democracy is and how to respect it."

Liberal democratic ideas and machine guns are opposites. The former cannot be instituted by the latter. But it can be readily destroyed by the latter. A free society can only flourish upon a delicate cultural latticework that will take generations to weave. What were the neocon nation-builders thinking when they embarked on this crusade?


Sunday, August 15, 2004 - 11:15


Roderick T. Long
[cross-posted at Austro-Athenian Empire]

It is no crime to be ignorant of economics, which is, after all, a specialized
discipline and one that most people consider to be a"dismal science."
But it is totally irresponsible to have a loud and vociferous opinion on
economic subjects while remaining in this state of ignorance.


-- Murray N. Rothbard


In the wake of Hurricane Charley, we're seeing the usual governmental threats of violence against"price gougers." This is such an insane policy that even the barest acquaintance with economic principles should be enough to expose it as the disastrous bungle it is -- but economic ignorance seems to know no limits.

So let's haul out the Econ 101 basics. Here's how the market’s self-correction mechanism works.

When there's a shortage of some good, what needs to happen? Obviously, production of the good needs to be increased -- and in the meantime, consumption needs to be rationed. This is precisely what the price system accomplishes: the shortage of the good gives sellers an incentive to raise prices. This in turn simultaneously signals the consumers to constrain their consumption of that good and gives producers an incentive to step up their production and provision of that good. As a result, the shortage is redressed. (The same corrective process, in reverse, occurs in response to a glut.)

Now what happens when government imposes a price ceiling? The economy's self-healing signals are suppressed. By preventing the price from rising, government causes the good to be supplied in smaller quantities than it would otherwise be. As a result, the shortage is prolonged.

Would it be nice if, in the wake of a catastrophe, sellers provided necessary goods at below the new market price, out of the goodness of their hearts? Sure; if some charitable sellers are willing and able to do that, that's great. But anybody who's going to do that will do it with or without the anti-gouging laws; and if they can provide sufficient quantities to address the shortage, would-be"gougers" aren’t going to make any profits anyway. If"gougers" are making profits, that shows that there are too few charitable sellers to cure the shortage; the prospect of making profits at the new, higher market price is what draws"gougers" into the market. The sane response would be to welcome in the"gougers"; competition among them will quickly restore supply and eliminate the shortage (thus eliminating the opportunity for further"gouging" as well). Instead, government bans the"gougers" and so perpetuates the shortage. Following up a natural disaster with the artificial disaster of anti-gouging laws simply compounds the problem; first people get hit by a hurricane, which causes the shortage, and then they get hit by the government, which fights tooth and nail the market"s attempts to fix the shortage. The best analogy to anti-gouging laws would be a doctor who keeps ripping the scabs off his patients' wounds as fast as they form.

Price controls cause and maintain shortages. Always and everywhere. This is one of the simplest and most basic economic laws there is. It's known to anyone who knows even the rudiments of economic reasoning (a description which apparently does not apply to our elected officials). Nor do the laws of economics suddenly go into abeyance because there's been an emergency; those are not among the laws that rulers have the power to suspend.

Is it a bad thing when hurricane victims have to pay extra-high prices for necessities? Of course (just as it's a bad thing when you’ve got scabs forming on your body). And any (peaceful) measures that can get those goods to the people who need them at a lower price, or even for free, would be worth supporting. But anti-gouging laws do not replace high-price opportunities to buy necessities with an equal number of low-price opportunities to buy the same necessities; instead, they reduce the total number of such opportunities in the present and extend that reduction farther into the future. In the face of catastrophic shortages, no governmental response could be more criminal.

Sunday, August 15, 2004 - 22:40


Arthur Silber

I have previously noted that, despite the view taken by most of those concerned with individual rights and civil liberties, the three Supreme Court decisions about the Bush administration's treatment of prisoners in the"War on Terror" were, in fact, almost a complete victory for the executive branch. In that earlier post, I also quoted one article which pointed out that the Supreme Court left the door wide open for the administration to continue to avoid the most basic requirements of our legal system.

So all of this was entirely predictable:

In its Rasul decision, the Supreme Court recognized the Gitmo detainees' right to file a writ of habeas corpus in federal court. But the high court never said this had to be a meaningful right to habeas corpus, nor did it define the practical parameters of such a right. Issues like the right to counsel and the proper location for habeas corpus suits were left to the imagination. Not surprisingly, the administration has seized on this ambiguity to resume its post-9/11 legal offensive in the courts. The essence of the legal strategy is to litigate every single procedural and technical issue to the full extent of the law, using the vast resources of the Justice Department to delay judicial action as long as possible. The implicit purpose is clear: to delay justice so that detainees can be held and squeezed for intelligence.

The Justice Department's lawyers make no attempt to hide this legal strategy. In footnote 14 of their filing before the federal district court in Washington, D.C., in Al-Odah v. United States, the administration's lawyers explicitly reserve the right to litigate niggling procedural issues, such as whether this is the proper defendant in a habeas corpus action, and the proper location for such suits. There is some irony here, because those are the two grounds the Supreme Court used to kick back the lawsuit by Jose Padilla, a U.S. citizen held as an enemy combatant in South Carolina. Even though the Justice Department lost in the other two terrorism cases before the Supreme Court, it now hopes to use the same procedural tactics it used to defeat Padilla's claim to avoid petitions for habeas corpus from detainees at Guantanamo. The strategy appears the same: deny every right, and fight every claim, for as long as possible, so that interrogations and intelligence collection at Gitmo can continue unimpeded by legal process.

I recommend you read the entire article, written by a former U.S. Army officer. And the writer notes the broader significance of the administration's tactics:
The issue here is not so much the detainees' rights per se (although the detainees might say otherwise) as the need to restore the U.S. commitment to the rule of law in the eyes of the world. To date, the United States has not been able to enlist many of its allies to help shoulder the burden of Iraq, and Sen. John Kerry is unlikely to do much better given the current state of animus toward the U.S. in the world. Treating the wartime detainees fairly by giving them a fair hearing before a neutral magistrate (as ordered by the Supreme Court) would go a long way toward rebuilding bridges with our allies abroad. American moral leadership on these issues will also help win hearts and minds in Iraq, where the parallels between the Abu Ghraib abuses by U.S. soldiers and Saddam Hussein's henchmen are all too easy to draw. But none of that will happen if the United States continues to drag its feet, kicking and screaming at every step of the way. Indeed, if the fight to implement Rasul takes as long as the fight for equality after Brown, then many of the detainees at Gitmo could die in captivity before they see their rights vindicated.
And I must note again the truly awful irony of the fact that while Bush, et al. tell us we are fighting to establish"freedom" abroad, they seek to undercut already existing and Constitutionally-guaranteed freedoms here at home.

It is hardly a winning strategy, for the simple yet profoundly important reason that it undercuts our moral authority on the deepest level. And even if our own leaders fail or refuse to recognize that fact, many others around the world are not so blind. It also hands our genuine enemies an invaluable weapon with which to attack us -- a weapon which the administration could remove at once, if it only chose to do so. The fact that it does not, and apparently will not, is a deep stain on our country, a profound wrong to the detainees (and impliedly to all of us), and a shame that will not begin to be erased until the administration reverses course.

(Cross-posted at The Light of Reason.)


Sunday, August 15, 2004 - 23:51


William Marina
The opening of the Olympics mentioned another myth; that Pythagoras invented the mathematics theorum named after him in the West. Chinese mathematicians had developed it about 500 years earlier, and it was tranmitted across the Persian Empire into the Greek world. Pythagoras was more Persian than Greek anyway, wearing the Persian trousers, living in the Asia minor area, and the leader of the aristocratic conspiracy which hated Greek democracy and science.

Saturday, August 14, 2004 - 00:31


William Marina

The Atlantic September issue has an interesting comment on "Prison Islam." To view the Justice Dept. Report, click here.


Saturday, August 14, 2004 - 08:30


Chris Matthew Sciabarra

The morning news has been dominated by a few stories, from the resignation of New Jersey's Governor Jim McGreevey (who came out as a"gay American" under possible charges of sexual misconduct and cronyism) to the victory of Iraqi athletes over Portugal in the soccer competition at the Summer Olympics (which gets under way, officially, in Greece, the home of its birth, this evening). The skies of Baghdad were lit up with celebratory gunfire. Considering that former Olympic athletes were tortured by the sons of Hussein any time they lost a competition, I am sure that this gunfire was the kind that any freedom-loving person could appreciate, whatever one's stance on the Iraq war. And whatever one's views of the Olympics, it is my hope that from this Friday the 13th opening until the closing ceremonies on August 29th, the focus is on athletic excellence and not on terrorist slaughter amidst security lapses.


Friday, August 13, 2004 - 07:39