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Sheldon Richman
The least appreciated form of tyranny in the United States goes by the names"redevelopment" and"government-business partnership." While everyone knows about the threat of development-oriented eminent domain, thanks to the 2005 Supreme Court decision in Kelo v. New London, local tyranny goes much deeper than the"mere" taking of property in order to give it to another private party. A case out of Port Chester, N.Y., illustrates the danger.
The rest of this week's TGIF column is at the Foundation for Economic Education website.
* * *
Over the last several days former President Gerald R. Ford has been repeatedly praised for “healing” the nation in the aftermath of Richard Nixon’s Watergate scandal. Democrat, Republican, and solemn pundit alike paid extravagant tribute to the man who, in their view, saved the American people from “disaster.” But is that what Ford really did? . . .

“The long national nightmare is over,” Ford said. But it wasn’t a nightmare for the American people. It was a nightmare for the power elite. Their very legitimacy was in peril. The debt to Ford for restoring their legitimacy is owed by those who hold and aspire to power, not by those who suffer under it.
Read the rest of this week's op-ed,"What Exactly Did Gerald Ford Heal?," at The Future of Freedom Foundation's website. Cross-posted at Free Association.

Saturday, January 6, 2007 - 10:03


Sudha Shenoy
Many US comments on certain of the circumstances of Saddam Hussein’s execution, have failed to appreciate the role of Iraqi political history. Thus Christopher Hitchens refers to “Muqtada Sadr's riffraff taunting their defenseless former tyrant….While Saddam Hussein was alive, they cringed.” He ends: “To know that the U. S. government had even a silent, shamefaced part in it is to feel something well beyond embarrassment.”

Why _were_ members of Moqtada al-Sadr’s Mahdi army there? And earlier, Nuri al-Maliki, the PM, was shown on television, signing the warrant (in red ink.) Why?

Why _were_ members of Moqtada al-Sadr’s Mahdi army there? And earlier, Nuri al-Maliki, the PM, was shown on television, signing the warrant (in red ink.) Why?

Saddam’s brutal repression of his political rivals has to be remembered here. Al-Maliki is a member of the Dawa (Islamic Call) party. This party was founded around 1958 by the Ayatollah Muhammad Baqir al-Sadr. It gained followers especially amongst poorer & less-educated Shias, & openly &violently opposed Saddam’s rule in the 1970s. Saddam imprisoned & executed many leading members of the party, then, at the end of March 1980, sentenced its members & affiliates to death. Many more members were executed. Others fled to Iran & Syria. At the beginning of April 1980, Dawa members attempted unsuccessfully to assassinate Saddam’s Foreign Minister. Saddam had Ayatollah Baqir al-Sadr & his sister killed a few days later. In 1982 Dawa then attempted to assassinate Saddam, who retaliated by killing people from Dujail, the town concerned. -- It was for this that he was executed. -- Dawa attempted another assassination in 1987, & violently opposed the war with Iran.

Ayatollah Sadiq al-Sadr, Baqir’s cousin, hesitated to undertake political activity. But he eventually took over the Sadrist organisation, & obtained a mass of followers. He was assassinated, together with two of his sons, by Saddam’s agents in February 1999. Moqtada al-Sadr is his youngest son, & also the son-in-law of Ayatollah Baqir al-Sadr.

When Saddam eventually went on ‘trial’, many Iraqis saw the whole thing as a show with a foregone conclusion.

The above provides some context for assessing American influence in Saddam’s execution. True, American officials & officers _did_ try

behind
the scenes to mitigate the haste with which he was executed. True, Americans _did _ imprison Saddam -- & then released him to Iraqi officials. He _was_ transported by an American helicopter to the site of his hanging, & an American helicopter did take his body to Tikrit. And no doubt US govt officials had helped him in many ways throughout his brutal career. But _which_ set of influences played the _major_ role here? _Which_ ghosts were most prominent at the execution -- Ayatollah Baqir al-Sadr, his sister Amina, Ayatollah Sadiq al-Sadr & his two sons, the hundreds of Dawa party members executed, the young men killed in retaliation (above), etc., etc.? Or was George II the presiding genius?


Friday, January 5, 2007 - 05:35


Jason Kuznicki
More Mises. Extra libertarian teaser: Private money!

Now read, already.

Via the excellent (but sometimes NSFW) Towleroad, I found the following:


PROVINCETOWN — A pocketful of pirate “gold” might pave the road to a new form of local currency aimed at stretching residents’ finances and bringing the community together.

The Unitarian Universalist Meeting House is behind the idea — slated to be rolled out on Jan. 15 — to create a local, legal barter currency that residents can use to exchange skills and services. UU Meeting House Rev. Alison Hyder said most people living in town have a skill, resource or interest that could be of use to someone else. By using the paper barter currency, called “dune doubloons,” residents can pay for a pie or putting up storm windows or guitar lessons without using real cash.

Fascinating. Compare Mises' discussion of the demise of an unsound money (TM&C ch 13):

The emancipation of commerce from a money which is proving more and more useless in this way begins with the expulsion of the money from hoards. People begin at first to hoard other money instead so as to have marketable goods at their disposal for unforeseen future needs—perhaps precious-metal money and foreign notes, and sometimes also domestic notes of other kinds which have a higher value because they cannot be increased by the state (for example, the Romanoff ruble in Russia or the"blue" money of com munist Hungary); then ingots, precious stones, and pearls; even pictures, other objects of art, and postage stamps. A further step is the adoption of foreign currency or metallic money (that is, for all practical purposes, gold) in credit transactions. Finally, when the domestic currency ceases to be used in retail trade, wages as well have to be paid in some other way than in pieces of paper which are then no longer good for anything.

The collapse of an inflation policy carried to its extreme—as in the United States in 1781 and in France in 1796—does not destroy the monetary system, but only the credit money or fiat money of the state that has overestimated the effectiveness of its own policy. The collapse emancipates commerce from etatism and establishes metallic money again.

No, the end isn't near. The experiment seems driven less by a fear of worthless dollars than... by what? It's hard to say.

There are also sound reasons to believe that the whole experiment will fail; consider the following:

The dune doubloon program is based on a successful barter system that originated in Ithaca, N.Y., where over 900 participants accept “Ithaca Hours,” the local barter currency aimed at promoting local economic strength and community self-reliance. It also keeps the money “local,” which could be an asset in Provincetown, Hyder said, where people with myriad skills have little to do in the winter.

The theory of comparative advantage suggests quite strongly that there is little to gain in keeping an economy"local:" While locality has a definite emotional appeal, this appeal does not necessarily correspond to any economic benefit, and when comparative advantage comes into play, whatever benefits there are to locality are often entirely swamped.

And then there's this:

The program will kick off with a potluck dinner at 5 p.m. Monday, Jan. 15, at the UU Meeting House, 236 Commercial St. People and stores that sign up for the program will receive $50 in dune doubloons free.

The gold doubloons will be worth $10 and the silver $5. However, the idea is that each hour of service or time spent creating a product is worth $10, Hyder said.

“Everybody is treated the same and everyone’s time is worth the same,” she said.

Question: Supposing that various individuals face various levels of demand for their labor, what is the likely outcome of this setup? It seems plain to me that the uniform wage must disappear almost immediately. That, or the more productive laborers, those whose work is in the highest demand, will find that they can always work for more doubloons -- while those whose labor is less valuable will find themselves unable to participate in the system at all.

So, a question: Why are they doing this? I find the stated reasons puzzling and unsatisfactory. I'm wondering what's going on. Ideas?

Friday, January 5, 2007 - 09:37


Stephen Cox
The February issue of Liberty is now available. It includes personal histories of Milton Friedman by Mark Skousen and Tibor Machan, an assessment of his career by Bruce Ramsey, and a less significant entry by Stephen Cox.

Bruce Ramsey also contributes an analysis of the Great Depression in a review of Robert Higgs' "Depression, War, and Cold War"; and Timothy Sandefur performs a thorough autopsy on the failure of eminent domain reform in California.

Those are some of the highlights of the new issue.

Friday, January 5, 2007 - 14:31


David T. Beito
I'm off to the American Historical Association conference to interview candidates and fight for a resolution at the business meeeting on Saturday at 4:45 p.m. The resolution condemns the use of speech codes to restrict academic freedom. Details here.

If you are an AHA member and can attend, the sponsors of the resolution need your help. It will be an uphill battle to get this passed but the potential pay-off for academic freedom of winning will be enormous.


Thursday, January 4, 2007 - 11:16


Sheldon Richman
There they were, watching as the casket bearing former President Gerald R. Ford was taken to Air Force One for the trip to Grand Rapids, Michigan: former congressmen, former House staffers, current congressmen, and other dignitaries.

Intoned MSNBC commentator Chris Matthews:"They are the foothills of Mount Rushmore."

Gag me with a spoon.

Cross-posted at Free Association.

Wednesday, January 3, 2007 - 07:42


David T. Beito

I hereby give Pursuit of Happyness a glowing endorsement. It is a compelling, energetic, and unabashed celebration of free markets, individual responsibility, and old-fashioned pluck. Based on a true story, Will Smith plays Chris Gardner, a man who never lets up in his dream of becoming a stockbroker despite the responsibilities of a young son and the lack of a college education. Smith’s performance deserves an Oscar nomination, at least if merit still counts for anything in Hollywood.

While the critics have generally praised the film, it has rubbed some of them the wrong way. More than a few have found it hard to stomach the novelty of a sympathetic black character in a major Hollywood film who aspires to be a stockbroker and quotes Thomas Jefferson without irony or apology.

For example, Jeffrey M. Anderson sees a “disturbing...depression era attitude toward the class system. Here, the wealthy are mainly kind, generous folk and the poor are angry and vindictive. Gardner's ambition is admirable, but the movie dimly believes that great wealth is the final answer to all his problems.”

With unconcealed disdain, Peter Sobczynski reports how Smith as Chris “ponders unironically what he sees as the great American meritocracy, by way of Thomas Jefferson’s phrasing for the Declaration of Independence. He’s especially impressed that the founding father was wise enough to see the 'pursuit' was all that might be deemed a right, at least for those considered entire people at the time (as opposed to, say, those considered 3/5ths people).” Even more unforgivable for Sobczynski is the film’s inattention to “racism, on institutional or individual levels.”

John Beifuss's summary of the main themes is misleading but equally illustrative of the mind-set of the critics: “With Reagan hovering in the background as a sort of patron saint of economic self-determination and Captain America as the son's superhero of choice, the movie segregates its characters into two categories: Guitar-strumming hippie chicks, homeless nutcases, Chinese-speaking day care operators and non-Smith black folks -- bad; rich white stock brokers with box seats at 49ers games -- good.”

Most of the critics, however, have faulted the film for predictability and excessive sentimentality. Don’t let them keep you out of the theater. Pursuit of Happyness is about ideas and refreshingly subversive ones at that, especially for a Hollywood film.


Wednesday, January 3, 2007 - 13:10


Mark Brady
That is to say, I hope you all enjoy a very happy and prosperous 1710! Go here, here, here, and here to find out more.

Monday, January 1, 2007 - 01:45