Author Archives: Tom Mullen

Trump’s Protectionist Fallacies Have Been Refuted By Free Market Economists for Hundreds of Years

n-ADAM-SMITH-largeIt’s easy to understand the visceral attraction to Donald Trump’s campaign. My own libertarian heart beats a little stiff when he waves the one finger salute at establishment institutions that crush our freedom, including the Republican Party leadership, the mainstream media and the useless D.C. politicians themselves.

It’s not what Donald Trump is against that bothers me. It’s what he’s for. So much attention has been paid to his immigration stance from a race perspective that no one seems to care how anti-free market his platform is. Trump is running on economic fallacies that have been consistently refuted by free market economists for hundreds of years.

When Adam Smith wrote Wealth of Nations, it wasn’t to refute the “godless socialists” 21st-century Republican voters believe are taking over the world. It was to refute the kinds of protectionist ideas championed by conservatives like Edmund Burke and Alexander Hamilton in Smith’s day, Abraham Lincoln eighty years later, and Trump today.

Read the rest at The Huffington Post…

 

Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

 

Job growth in WNY has speed, but does it really have credibility?

Pair_of_2009_SolarCity_Dodge_SprintersA July 26 article in the Buffalo News rejoiced, “Job growth in WNY gains speed, credibility.” There is no doubt about the speed. The credibility may be another story.

Writer David Robinson gave due credit to “high-profile projects, from the Medical Campus to Solar City’s 1,500-employee solar panel factory, that are giving a jolt to the local job market, first because of all the construction associated with those projects, and eventually with the hiring that will take place as those businesses ramp up.”

What he didn’t mention was why those two sectors were enjoying such spectacular growth: tax breaks and other incentives provided by local, state and federal governments.

It has become fashionable to call tax breaks “subsidies,” based on the perverse idea the government not only has a legitimate claim to all wealth you’ve created in the past, but any you may create in the future. Tax breaks aren’t subsidies, but they are part of a larger economic system that has never worked.

Step One is to tax and regulate everyone into a state of complete economic paralysis. Buffalo’s local governments perfected that fifty years ago. They never got around to Step Two until now.

Step Two is to grant limited relief to those businesses who either represent something politicians like or who promise to deliver something politicians need. Solar City does both. They represent the green energy movement, the cause célèbre of politicians everywhere. They have also promised to create a significant number of jobs, which helps politicians get reelected.

This may seem like a win-win for everyone, until that buzzkill called “economic reality” turns on the lights and turns off the music. Growth created by government privilege almost always turns out to be temporary. Viable business plans don’t need government assistance to make a profit and create new jobs. They produce products customers are willing to pay for at a price that supports the company’s costs and profits.

Solar City may or may not have a viable business plan. We don’t know, because it is presently riding government “subsidies” in all its markets, not just in Buffalo. We do know its stock is down over 8% since it reported earnings in May. We’ll get another report later this week.

The risk is Solar City turns out to be another Chevy Volt, a product that never would have made it to market without similar assistance from the government. Despite that assistance, the product’s sales have consistently failed to materialize. The government continues to help keep the product alive, but if jobs were actually dependent upon producing it, they’d cease to exist. Chevy’s sales of viable products are what actually subsidize the Volt.

Not only does this form of central economic planning promote unviable business ventures over viable ones, it encourages businesses to do economically idiotic things, like hire more people than it needs. A June 11, 2015 article in the News lamented, “Billed by officials as creating 400 jobs, FedEx center in Hamburg will fall short of that tally.”

The article attempts to incite outrage that Fedex has reneged on its promise of 400 jobs in return for the tax incentives, although it acknowledges it may have been politicians who made that promise, not Fedex. Lost in all of this is the basic economic principle that a business venture is supposed to produce its product at the lowest cost possible. It’s economically harmful to everyone when it intentionally raises its costs for political reasons.

That the other significant contributor to WNY jobs is the medical sector is ominous for all the same reasons. Medical care was already the most subsidized economic sector in human history before Bush and Obama subsidized it even more. It receives real subsidies, meaning direct cash payments from the government that represent about half of all U.S. health care spending. What happens when those subsidies run out?

Central economic planning doesn’t work. They found that out the hard way in the Soviet Union and China, where tens of millions literally starved to death because of it. Central Economic Planning Lite as practiced in this country doesn’t work, either. If tax breaks stimulate growth, they should simply be granted to all businesses, no strings attached. Then, the market will allow viable businesses to create permanent jobs.

Buffalo should try this approach and lead the nation in demonstrating the power of the free market, instead of following Washington to another disaster.

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

A Practical Solution: Run Police Departments Like Fire Departments

n-COP-GUN-large570Do you lie awake at night in constant fear a fire will break out and nothing will be done to put it out?

For the 99% of the population not suffering from pyrophobia or a similar neurosis, the answer to that question is “no,” even though firefighters aren’t patrolling the streets in their big red trucks. They still manage to arrive at the scene of a fire within minutes of an emergency call.

Why can’t police departments be run the same way?

If they were, Walter Scott, Freddie Gray, and Sandra Bland would be alive today. All three encountered police doing what would be considered outlandish for any other institution charged with public safety: roaming the streets, looking for trouble.

No one had called 911 asking for protection from Scott, Gray or Bland. No judges had issued warrants for their arrests. All three were, at least at the time of their arrests, just walking or driving down the street, minding their own business. They were detained in what are generally considered “routine” but are in reality wholly unnecessary encounters with police.

There has been a lot of digital ink and warm air expended on whether these victims of tragedy were treated differently because of their race. There are compelling arguments on both sides of that question, but no practical solutions offered by anyone. At the end of these discussions there is invariably some vague reference to “more training” or bland platitudes. Everyone knows nothing will change.

I’m going to suggest a solution that will sound radical, even in a country that styles itself “the land of free.” Let’s get cops off the streets, unless responding to a 911 call or serving a warrant issued by a judge. Everyone would be freer and safer, including the police officers themselves.

Read the rest at The Huffington Post…

 

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

Sandra Bland’s Arrest Wasn’t Racism; It Was Something Even Worse

n-POLICE-CAR-large570It’s easy to assume racism when watching the video footage of Sandra Bland’s arrest. Admittedly, the first question that entered this writer’s mind when watching it was, “Would a white woman have been treated this way during a routine traffic stop?”

I believe the answer is “yes,” if the white woman committed the cardinal sin Sandra Bland committed. It wasn’t her being black that started the tragic chain of events. It was refusing to follow a police officer’s orders.

At some point between ratification of the Fourth Amendment and the death of Sandra Bland, the entire principle underpinning that constitutional protection has been lost. The Fourth Amendment assumes armed agents of the state can’t be trusted to issue their own orders. That’s why we have warrants in the first place. They are permitted only to enforce the orders of an impartial judge, who authorizes them to apprehend suspects upon the judge’s determination of probable cause.

That’s not to say many or most officers aren’t well-intentioned or trustworthy. But their job is to use force. That role must be separated from the issuance of orders.

Read the rest at the Huffington Post…

 

Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

 

Trump’s popularity is democracy in action

trump paulIn the past two Republican primary elections, we had a candidate who consistently defied the Establishment by articulately and intelligently telling the truth, remaining firm in his principles even when it cost him politically, and had a well thought out plan to change the political course of this country. He struggled to get 2 million votes.

This year, we have a candidate who consistently defies the Establishment by just “making shit up,” contradicting well-documented positions he’d taken just a few years ago, and delivering his message with all the eloquence of a punchy boxer in his twilight years. He’s leading in the polls.

That’s democracy in action, something the Constitution was designed to protect us from. God help us all.

 

Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

 

Greek “no” vote on austerity isn’t remotely heroic or “libertarian”

greece-referendum-_3365507bThe 21st century global banking system based on fiat currencies and redistribution of wealth through inflation is immoral and destructive. That doesn’t mean stiffing your creditors is at all justified, heroic or remotely “libertarian,” as many on my newsfeeds are suggesting.

The Greeks who decided to take two month vacations, vote themselves useless government jobs and then retire at 50, all on someone else’s dime, aren’t the victims today. They are as much the perpetrators as the so-called “banksters.”

Photo: Sakis Mitrolidis/AFP

The real victims are those hardworking Greeks who have hitherto paid for all of this and the honest creditors who lent them money, although the latter have some culpability for bad judgment.

The Greek “no” vote on accepting “austerity” measures in return for additional loans from the European Central Bank (ECB) was more like a childish tantrum than a blow for freedom.

Imagine if you couldn’t pay your rent and asked a friend for a loan. If she agreed, stipulating you must cut your ice cream consumption from $100 to $50 per month, you wouldn’t be considered heroic for defiantly refusing her terms and still not being able to pay your rent or repay the other friend you borrowed from last month.

The Greek vote had nothing to do with liberty, but it was certainly democracy in action. Over two hundred years ago, John Adams wrote,

“Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide.”

The Greek democracy has the revolver to its head. Time will tell if democracy or common sense will prevail.

 

Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

 

Dear Queen Elizabeth: Can we come back?

Dear Queen ElizabethDear Queen Elizabeth,

It’s been 239 years and we’re finally ready to admit we made a mistake. Just as your predecessor warned us, taxes are much higher, the government more oppressive, and liberty more non-existent than they ever were under the British monarchy.

We’re willing to bury the hatchet and rejoin the British Empire with that sweet tax deal you had for us in 1775. Don’t worry about representation. We tried it. Taxes skyrocketed.

Everything else we complained about got worse, too. Representative government issues more general warrants than the king’s officers ever did. In most cases, it doesn’t even bother with warrants. It just vacuums up our electronic data and peruses it at its pleasure.

It calls controlling everything from the food we eat to the amount of water in our toilets “regulating trade,” when all King George meant by that was levying a few tariffs. Our Federal Register is over 80,000 pages long. It’s insane.

In short, we were wrong. Let’s just pretend the whole, silly misunderstanding didn’t happen. I know it’s asking a lot, but you seem even nicer than George III was.

We’re willing to pay next year’s taxes at 1775 rates in advance. What say you?

Sincerely,

Your Prodigal Colonists

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

Buffalo News Another Voice: Buffalo doesn’t need another interfering ‘master plan’

An editorial in The Buffalo News June 19 headlined “Welcome new master plan aims at making downtown core more people-friendly” said this:

“Yes, continued development could happen by accident, but it’s dangerous to leave growth up to chance and likely to produce less desirable results.”

Wrong. Leaving growth up to chance is Buffalo’s only hope for escaping the economic blight that has plagued it for over a half-century.

Let’s not forget what killed Buffalo in the first place: government interference in the marketplace and central planning, from destroying untold billions in waterfront property with wrongheaded expressways and disastrous public housing projects to larcenous taxes to stifling regulations.

“Leaving growth up to chance” really means leaving growth up to the market. Instead of government officials seizing money from taxpayers and deciding how it will be spent, each individual spends his or her own money as he or she sees fit.

This subjects new projects to the rigors of the market. Entrepreneurs face the prospect of losses if they build something people won’t buy voluntarily. When the government builds it, taxpayers don’t have a choice. They pay whether they want it or not. This steals capital from enterprises that can make a profit and employ people.

Read the rest at The Buffalo News…

Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

 

 

Buffalo doesn’t need another “master plan”

buffaloBUFFALO June 22, 2015 A June 19 Buffalo News Opinion piece entitled, “Welcome new master plan aims at making downtown core more people-friendly” said this:

“Yes, continued development could happen by accident, but it’s dangerous to leave growth up to chance and likely to produce less desirable results.”

Wrong. Leaving growth up to the market is Buffalo’s only hope for escaping the economic blight that has plagued it for over a half century.

Let’s not forget what killed Buffalo in the first place: central planning by the government, which destroyed untold billions in waterfront property with wrongheaded expressways and disastrous public housing projects, built the Subway to Nowhere and generally taxed and regulated the economy to death.

The alternative to central planning isn’t “leaving growth up to chance.” It’s leaving growth up to the uncoerced choices of producers and consumers. Instead of government officials seizing money from taxpayers and deciding how it will be spent, consumers spend their own money as they see fit.

When consumers have choices, entrepreneurs face the prospect of losses if they produce products people won’t buy voluntarily. When the government plans and subsidizes, taxpayers don’t have a choice. They pay whether they want to or not. This steals capital from projects that can make a profit and employ people and leaves us with projects that need subsidies to survive.

Having lived away from this city for ten years, I’ve been overwhelmed since returning at the extent of government interference in every economic decision. There is literally no new building or business initiative local government officials aren’t intimately involved in planning.

This is to some extent the natural result of taxing the daylights out of everyone and then offering tax breaks, perversely called “subsidies” in modern socialist parlance, to those who start businesses the government approves of. But Buffalo takes it to a whole new level.

After living and doing business in relatively freer places, I feel like I’ve moved back to 1960s Moscow. It’s abundantly clear why people are leaving this city to find opportunities elsewhere.

Most are familiar with Einstein’s definition of insanity: repeating the same procedure and expecting a different result. We’ve let government central planners kill Buffalo for too many decades. It’s time to try something new.

Let’s let the market decide what is built or not built in Buffalo. That’s what made America the richest country in the world. It’s what is rebuilding the places our young people are fleeing to.

We have nothing to lose but our fifty-year recession.

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.