Wednesday, August 27, 2014

Sociology Explains Nothing


A recent article posted on The Star takes issue with Stephen Harper’s tendency to dismiss sociological explanations for crimes. For example, in response to the murder of Tina Fontaine, Harper argued that her death was an isolated incident and that the murder was not part of a sociological phenomenon. Harper also made similar comments in response to the attempted bombing of a VIA train last year. The journalists at The Star take issue with this attitude because supposedly it is an “ideological attempt to prevent Canadian society from being able to identify and tackle its structural injustices.” While I can’t defend everything Harper has done or said, I feel his objective approach to this crime is commendable, especially since it doesn’t capitulate to the incessant whining of social justice warriors.


How does one distinguish between an isolated incident and a structural phenomenon? The Star article claims that structural injustices differ from individual crimes in that crimes by individuals can be traced back to a single person(s), whereas structural injustices are committed by society at large. If that is the case, I fail to see how Ms. Fontaine’s murder should be regarded as the latter rather than the former. Considering that we don’t even know who the murderer is yet, it doesn’t make sense to attribute his/her motivations to racism, as that is not likely the case. 


Most of what is deemed as structural injustices are no more than statistical disparities between one group and another. For instance, the article implies that the difference between the murder rate of aboriginal Canadian women and non-aboriginal women is indicative of structural racism. Leave it to the crazy SJW’s to automatically claim this to be the result of racism or sexism. However, differences in the murder rate between one group and another cannot by itself reveal structural discrimination. Tina Fontaine was a runaway teenager. Seeing as though the vast majority of child abductions happen to runaway children[1], I would venture to say that Ms. Fontaine’s status as a runaway put her at far greater risk of being murdered than being aboriginal.  There are often underlying differences between the groups (such as economics, cultural values, level of education, etc.) that lead to such statistical disparities. In Canada, men are far more likely to be the victims of aggravated assault and murder than women[2]; however, few SJW’s would suggest this statistical disparity to be the result of sexism or racism since it does not fit in with their preconceived narrative—namely that women and minorities are oppressed whereas white men never are. There is no simple, convenient explanation for why men are murdered far more often than women, or why aboriginal women are murdered more than white women, but to simply dismiss this as sexism or racism clearly ignores all the nuances and complexities of human interactions. However, when the statistical disparities do reflect the world view of the SJW’s, then they will be the first to cry racism or sexism.


I don’t have anything against the academic discipline of sociology per se, but we all know that when The Star talks about “structural injustices”, what they really mean is finding a way to blame everything on either sexism, racism, capitalism, or all the above—a practice that is far removed from anything resembling the scientific method. It should be remembered that Tina Fontaine wasn’t murdered by society, she was murdered by an individual person, whose motivations for doing so were solely his own. The reason why I believe the attitude conveyed by The Star is toxic is because it diverts the responsibility of Ms. Fontaine’s murder away from the individual who committed it and imposes it collectively on society. Since Ms. Fontaine’s murder was the result of structural racism according to these people, it is society that needs to atone for it. For Stephen Harper to acknowledge these “structural injustices” would mean effectively signing a blank check away to any social justice warrior or special-interest groups who claims to have the answers. It’s funny that the solution to rectifying so-called structural injustices typically involves the redistribution of wealth in some form or another.


When Margaret Thatcher said that “there is no such thing as society”, she meant that there is no entity called “society” that may speak, feel, think, or act on anyone’s behalf. Society is an abstract concept referring to the various relationships between individuals, and to speak of society apart from individuals is to remove all humanity from the discussion.  It may be tempting to blame society for a heinous crime like the murder of Tina Fontaine when there is no suspect to point the finger at yet. However, trying to impose the guilt of one individual upon an entire collective is an absurd accusation. Stephen Harper is demonstrating a level-headed approach to such a heinous crime instead of resorting to knee-jerk emotional reactions.






[1] http://www.freerangekids.com/crime-statistics/
[2] http://www.statcan.gc.ca/pub/85f0033m/2010024/t001-eng.htm

Thursday, August 14, 2014

Doing Away with Door-to-Door Mail Service


Last year, Canada Post announced that it would be phasing out door-to-door delivery for many communities across Canada. In addition to the elimination of door-to-door delivery, the price of stamps has also increased to 85 cents up from 63 cents as an effort to curd loses of $104 million dollars last year. Canada Post has said that replacing door-to-door delivery with community mailboxes will have the largest impact on the $1-billion Canada Post deficit. The Transportation Minister Lisa Raitt said that Canada Post is “modernizing its business and aligning postal services with the choices of Canadians.”[1]

As technology improves the way we communicate, the volume of written letters continues to decline. The decline in the volume of transaction mail over the past decade can be attributed directly to the emergence of the internet. The web has made writing letters all but obsolete, since sending email is not only free and simple, but one doesn’t pay for the cost of shipping and postage. Written letters are quickly going the way of the typewriter, the horse-drawn carriage, and the flintlock pistol. Therefore, if Canada Post is going to remain a viable and sustainable business in the decades to come, it needs to adapt to the march of technology.

However, many people in my community still do not recognize the need for doing away with door-to-door delivery. Almost every second household on my street brandishes a lawn sign lauding their support for maintaining this service. A petition on Change.org even has over 150, 000 signatures from those who wish to keep door-to-door delivery. Many people feel very strongly about this issue, even though the reasons they give for why door-to-door delivery should be maintained are not very persuasive.
The petition on change.org has the following to say,

“My grandfather, god rest his soul, was a WW2 veteran and became a mailman. They take their work very seriously otherwise they would not brave the weather. My current mail carrier is also proud of the service she provides for the community. Why change something that is working well for communities across Canada?”


There are bound to be people who have an emotional attachment to the notion of home mail delivery, but warm sentiments alone do not generate revenue. It would be just as absurd as somebody suggesting that Blockbuster Video should stay in business and operate at a loss just because they have an emotional attachment to their big blue store signs. It seems that those opposed to ending door-to door delivery want to have their cake and eat it too. They want Canada Post to continue the service despite the fact that they do not contribute to demand by purchasing stamps or writing letters. If one is truly adamant about maintaining door-to-door delivery, the most sensible way of having their voice heard is by actually writing letters. Show Canada Post that there is in fact a demand for mail delivery. Voting with your wallet is more effective than displaying signs on your lawn or signing some petition that will likely just be ignored.

              However, there will probably not be a renaissance of letter-writing anytime in the foreseeable future. The internet is just too efficient a means of communication that snail mail is hard-pressed to compete with it. I don’t think the majority of people are going to spend money on stamps that they don’t have to just for the sake of continuing door-to-door mail service. Being a Crown Corporation, I doubt Canada Post would be making these changes unless they were absolutely necessary. Instead of feeling nostalgic about the death of an obsolete means of communication, we should be celebrating the birth of a new one.



[1] http://www.cbc.ca/news/canada/ottawa/canada-post-to-phase-out-urban-home-mail-delivery-1.2459618

Monday, July 14, 2014

Why Salon.com is Wrong About ReservationHop

             

                It seems like the writers over at Salon.com are desperate for something to whine and complain about. This article, entitled the 1 Percent’s Loathsome Libertarian Scheme: Why We Despise the New Scalping Economy, takes issue with a new application called ReservationHop which makes reservations at restaurants and then auctions them off to the highest bidder. According to the author of the article, Andrew Leonard, this application discriminates against poor people and creates “market-based class stratification”. Although I fail to see how ReservationHop is uniquely libertarian, (as suggested in the article title) I believe it provides a useful service that will generally make booking reservations more efficient. Not only is this application a useful tool in that respect, but a portion of the revenue being made is given to the restaurants themselves. There’s really nothing at all for Salon.com to complain about. Regardless, they found a way to demonize the creators of this application. therefore, I feel like I should defend them.

Leonard writes,

“I am pretty sure I don’t want to live in a society where every possible interaction with my fellow human being is up for auction at the right price point.”


            Nor will you. This is just a slippery slope fallacy. Applications such as ReservationHop are fulfilling an obvious need by selling sought-after restaurant reservations to those who are willing to pay for them. It makes sense that some restaurants apply the pricing system for reservations if they are very popular. Many popular restaurants do not have available space for everyone who wishes to eat there—especially at peak hours. Since there is a greater demand for reservations than restaurants are able to supply, those who can afford to should have the option of purchasing their reservations. This is just an efficient way of allocating the few available tables to those who want them the most. This dystopian nightmare Leonard tries to portray where “every possible interaction with your fellow human beings is up for auction” is nonsense. He then writes,

“Even when they are solving a problem, there’s a whiff of parasitism. What was once clear becomes muddy. When the answer to the question of why we can’t find a reservation available at our favourite restaurant is because someone unaffiliated with the restaurant has figured out a way to profit from our demand that just feels yucky.”
            Ever notice that what a normal person would consider rational and innovative behaviour, socialists call parasitism? That’s probably why socialist utopias throughout history have been so prosperous in comparison to those wicked capitalists, right guys?
            The arguments Salon.com presents against ReservationHop come crumbling down once they are exposed to the light of scrutiny. Chances are, the reservations being auctioned off on ReservationHop are only at the most expensive, high-status restaurants—the kinds of places you have to bribe the doorman just to get into. I doubt that any sane person would bother to sell, let alone purchase fake reservations at a Denny’s, McDonalds, or Pizza Hut. It just wouldn’t make sense to auction off reservations unless the restaurant in question was near-impossible to get into otherwise. The vast majority of restaurants are not packed on a regular basis so I highly doubt that ReservationHop will have any noticeable impact on the way most people make reservations. Mr. Leonard will still be able to eat at his favourite restaurant as easily as before.

            The great thing about ReservationHop and other applications like it is that they tap into a previously unsatisfied demand. The creator of these applications clearly saw something that was inefficient with the way restaurants took reservations, so he created a service that fixed it. Not only does ReservationHop solve the problem of getting reservations at sought-after restaurants, but it generates revenue and even shares its profits with the restaurants themselves. It’s win-win scenario for everyone. If this is what liberals call “parasitism” then power to the parasites!

“What’s happening with the new scalping apps is not democratization. It’s the exact opposite—it’s market-based class stratification.”

            Horseshit. ReservationHop is no more “class stratification” than a grocery store that charges an extra nickel for plastic bags. I think it’s fair to say that if a poor person can’t afford to spend $6 for a reservation, they probably should not be eating at restaurants in the first place. When you live in a world with a scarce amount of resources, you should expect to compete with others for those resources. Reservations of course are no exception. Even if applications such as ReservationHop did not exist, we would still expect to see people competing for reservations at fancy restaurants. For instance, if you wanted to make a reservation at some place, you would have to phone them days, or even weeks in advance to ensure you get the table you want at the time you want. Even then, there was no guarantee that you would get the reservation you wanted since someone else could have made the very same reservation before you. Now, instead of wasting one’s time and energy fighting for a reservation, one can simply pay a small fee and your reservation is guaranteed. As you can see, people have competed for reservations before, ReservationHop just found a way to allocate them efficiently.
           

Leave it to the misguided and unpleasant writers over at Salon.com to find fault with something that will generally benefit people. Then again, if anything gives individuals more free choice, it is heresy in the eyes of collectivists. I think this application is a great idea and I will be interested to hear of any future developments on it.



            

Thursday, July 10, 2014

Robert Nozick's Argument against Wealth Redistribution


Wealth inequality has existed to some degree in every free society known to man. In the United States of America in particular, the current disparity between the richest and the poorest is astronomical. Many people today have argued that it is unethical for some individuals to accumulate so much wealth while others have barely enough to keep themselves alive. It is the responsibility of the state, according to these welfare economists, to maximize net happiness by distributing wealth from the richest individuals to the poorest. Some have argued that these redistributions should be in the form of taxation, while others of more revolutionary persuasion advocate the appropriation of others’ holdings by force. Regardless of how it is attempted, wealth redistribution of any kind is patently immoral, according to the philosophy of Robert Nozick (1938-2002). Nozick is considered by many, including myself, to be one of the most influential libertarian thinkers. His 1974 book, Anarchy, State, and Utopia is a phenomenal text that sets the groundwork for much of modern libertarian philosophy[1]. In Chapter Seven of Anarchy, State, and Utopia, entitled Distributive Justice, Nozick makes what I believe to be the soundest argument against wealth redistribution.

According to Nozick, someone’s entitlement to a holding is justified only if it was voluntarily transferred to them. Acquiring something by trade, by purchase, by gift, or on loan is a justifiable claim to a possession, but if something is acquired by extortion or thievery, then that holding is not just and Nozick would argue that in a free society, such an injustice would need to be rectified. Nozick’s Entitlement Theory is historical. If the sequence of events leading up to someone acquiring an object is justifiable, then so is the acquisition. If, for example, a burglar stole a television and then sold it to a friend, and that friend gave me the television as a gift, I would still not be entitled to the television since it was first acquired by unjust means. Therefore, as long as a given distribution of wealth came about by just means, then that distribution, according to Nozick is also just, regardless of how unequal the distribution may be. Those who complain about wealth inequality must understand that the current distribution of wealth has come about through voluntary exchange and the laws of supply and demand acting throughout history. Even though some people are extraordinarily wealthy and some live in destitute poverty, does not entail that anybody (especially the government) can claim possession of another’s holding for the purpose of redistribution.  

A person can only be entitled to a holding if he acquired it by just means. To illustrate this point, Robert Nozick presents what has come to be known as the Wilt Chamberlain Argument[2]. Nozick asks us to imagine a society with an egalitarian distribution of wealth, which he calls D1. Now imagine that in this society, Wilt Chamberlain puts on a basketball game and charges spectators twenty-five cents each to watch him play. Assuming that one million people decide to watch him play basketball, then Chamberlain would make a quarter of a million dollars from this transaction and all the spectators would be out one quarter. Nozick calls this new distribution of wealth D2. Even though the new distribution in D2 is extremely unequal compared to D1, D2 is still morally justifiable if all the spectators voluntarily chose to pay Wilt Chamberlain the quarter. In D2, Chamberlain would be far wealthier than anyone else, but he would still be entitled to every quarter given to him. This example shows how a non-egalitarian distribution is still justifiable even if a great disparity exists between the poorest and the richest. Inequality is not immoral as long as the transactions that brought about such an inequality were themselves moral and not coerced.

100-point games played and 20, 000 women laid

Nozick argues that a society with an egalitarian distribution of wealth is not only immoral, but impossible, since such a society would have to arrest all transactions between consenting individuals. Nozick writes,

“The general point illustrated by the Wilt Chamberlain example is that no end-sate principle or distributional patterned principle of justice can be continuously realized without continuous interference with people’s lives... To maintain a pattern, one must either continually interfere to stop people from transferring resources as they wish to, or continually interfere to take from persons resources that others for some reason chose to transfer to them.”[3]


Even if a society could somehow redistribute all wealth in accordance with an egalitarian principle, the distribution would not remain equal for very long. As the Chamberlain argument demonstrates, people are always going to voluntarily engage in transactions with others. These transactions are naturally going to make some people extraordinarily wealthy, and other people, by their own undoing, extremely poor. The problem with welfare economics is that it assumes there to be some ideal state of wealth distribution that would make everyone better off. It is an end-state philosophy. Reality is not composed of end-state distributions however, but of continuous transactions in which resources exchange hands between those who are entitled to them. To propose that there is some ideal distribution of wealth is therefore absurd because it completely discounts how the current state of wealth inequality came about. In order to impose a given distribution of wealth, the state would have to use force against anyone who did not act in accordance with the ideal distribution, which would not only be in violation of individual rights, but would also entail an enormous waste of time and effort.


As we can see, there is nothing inherently wrong with wealth inequality, regardless of what socialists and welfare advocates would have you believe. In a free society, the most talented and business-savvy individuals are bound to accumulate wealth, whereas those with no particular skills will not. As long as those wealthy people have earned their money through voluntary transactions, then they are entitled to every penny of it. It would be unethical, according to Nozick, for any Robin Hood-like character to redistribute the holdings of others on the basis that a current distribution is unequal. A free society must respect the life, liberty, and property of all.





[1] http://plato.stanford.edu/entries/nozick-political/#MinStaVerIndAna
[2] Nozick, Robert. Anarchy, State, and Utopia, pg. 161
[3] Nozick, Robert. Anarchy, State, and Utopia, pg. 163

Saturday, July 5, 2014

It's Time to Abolish the LCBO


Following the end of prohibition in Canada in 1927, the government passed the Liquor Control Act. Howard Ferguson, who was then Premier of Ontario and main proponent of the act, claimed that its goal was to “allow people to exercise a God-given freedom under reasonable restrictions… and promote temperance, sobriety, personal liberty, and above all, respect for the law.” The result of the Liquor Control Act was the establishment of a Liquor Control Board of Ontario, the LCBO, which monopolized the sale of liquor in the province. Prohibition in Canada was a failure just as it had been in the United States. Widespread smuggling, bootlegging, prescription-abuse, and illicit production ensured that nobody was actually prohibited from drinking alcohol. However, when the United States ended prohibition in 1933, they privatized their industry, whereas in Canada, we opted for a more half-hearted solution. The Liquor Control Act of 1927 ensured that the ugly ghosts of prohibition are still lingering with us in the form of the LCBO. This system we are left with gives drinkers a lot to be desired; LCBO stores have poor selection, inconvenient hours, and unreasonably high prices. The current proponents of the LCBO argue that having a monopoly on liquor sales will allow the province to control alcohol abuse and prevent underage drinking. To its credit, the LCBO does a good job in that respect. Anyone who has ever shopped there knows how stringent most employees are with checking ID, and the LCBO also runs many campaigns aimed at promoting responsible drinking and healthy choices. Many people also argue that because the LCBO charges such a high mark-up on most of their products, that this discourages drinking. I believe that people who make such arguments underestimate the ability of the free market to prevent alcohol related abuse. The current system of province-enforced liquor control is antiquated, inefficient, unreasonable, and should be abolished to make way for privatization of the sale of alcohol.


To get an idea of the effects privatization would have in Ontario, we should look to Alberta. When Alberta privatized its alcohol industry back in 1993, many people argued that alcohol abuse, violence, and drunkenness would become rampant as a result. However, crime statistics indicate that violent crimes such as theft, murder, battery, and sexual assault declined sharply in Edmonton during the years following privatization. Instances of impaired driving fell nearly forty percent from 1993 to 1995.[1] A decline in violent crime can occur for a variety of factors, and I am not suggesting that the privatization of liquor sales in Alberta directly caused this drop in crime, but nobody can make the argument that privatization leads to more crime. Arguments that privatization would encourage alcohol abuse are also unsubstantiated.  From 1993 to 1997, Alberta witnessed a substantial decline in alcohol sales[2][3]. Although alcohol consumption per capita is high in Alberta, alcohol abuse is still much higher in Saskatchewan, a province which maintains a liquor monopoly similar to that of Ontario.[4]  I fail to see how the social ills attributed to alcohol are mitigated under a government monopoly. Provided they are over the age of 19, alcoholics, drunk-drivers, and those with violent tendencies can still access alcohol at the LCBO just as easily as the many responsible drinkers.

The "world's finest beer", according to the LCBO.

Arguments of public safety are not substantial enough to justify the enormous deadweight loss caused by the LCBO. Since it has no competition, the LCBO has no motivation to be efficient or price its merchandise according to supply and demand. LCBO has been known to reward suppliers by voluntarily paying them a higher wholesale price than is dictated by the market, which not only ensures retail prices are higher, but also that less revenue is being collected for the province.[5] The way LCBO justifies these astronomical price mark-ups is that they discourage people from drinking, but they also mean that the province is not maximizing their tax revenue. It would be pointing out the obvious to suggest these policies may not have been devised in sober judgement. Another inefficiency of the LCBO should be apparent to anyone who has shopped at any of the locations in the past twenty years—namely that the stores are all so well-decorated, staffed, stocked, and maintained. It may seem trivial to complain about how nice the stores look, but it demonstrates the inherent inefficiencies of having one firm supply the entire market. A monopoly has no competition and thus cannot be held to the same standards of accountability as in a market with multiple firms. If the staff at McDonalds piss you off, you can go to Burger King. If the décor at Home Depot makes you noxious, you can shop at Lowes. If a firm fails to live up to the standards of its customers, then the customers will go elsewhere, ensuring that every firm is held accountable to the needs and tastes of the market. However, LCBO faces no such competition, so why do they spend so much money to make the stores look pretty? People would still shop at the LCBO even if the stores were covered with bloodstains, broken glass, and the cashiers spat in your face as you left—simply because we have no other option.  The LCBO are profligate spenders, and everything from their lavish stores to their glossy magazine, Food & Drink, to their myriad of employees (many given $100, 000 salaries[6]) testifies to the inefficiencies of the liquor monopoly. All these resources being needlessly spent to maintain Ontario’s control on liquor sales could undoubtedly go to a better cause.


Privatization will be beneficial because it would open the sale of liquor in Ontario to market competition—providing consumers with a wider selection of alcohol, and more convenient ways of obtaining it. If alcohol is taxed and sold in stores like tobacco products, then it can still be kept out of the hands of minors, and the province can still make revenue off it. Since, the province of Alberta took in $11-billion off liquor mark-ups.[7]  Without the deadweight loss and inefficiencies incurred by the LCBO, Ontario would likely take in more revenue if liquor sales were privatized. Not only that, but the retail price of alcohol would likely decrease as it did in Alberta[8], even with government mark-ups taken into consideration. Everyone will benefit from privatization. The free-market can serve the needs of the public better than any monopoly—even one that is conceived with good intentions such as the LCBO. The ghosts of prohibition have haunted us for long enough. It’s time to abolish the Ontario liquor monopoly.

Now it's time to have a drink.





[3] http://www.fcpp.org/files/9/70.%20Ending%20Saskatchewan's%20Prohibition-Era%20Approach%20to%20Liquor%20Stores.pdf
[4] http://www.fcpp.org/files/9/70.%20Ending%20Saskatchewan's%20Prohibition-Era%20Approach%20to%20Liquor%20Stores.pdf
[5] http://www.thestar.com/news/canada/2012/01/09/cohn_lcbos_pricing_policy_doesnt_add_up.html
[6] http://winesinniagara.com/2011/04/lcbo-sunshine-list-in-case-you-were-wondering/
[7] http://www.huffingtonpost.ca/mark-milke/alberta-privatized-liquor-stores_b_3984754.html
[8] http://oldfraser.lexi.net/publications/pps/5/s6_economics.html

Wednesday, July 2, 2014

Labour Unions Kill a Wal-Mart




Back in April 2005, workers at a Wal-Mart in Jonquiere, Quebec voted to join a labour union. In response, Wal-Mart closed down the store. Last week, The Supreme Court of Canada ruled that in doing so, Wal-Mart violated Quebec’s labour laws, and the employees who lost their jobs as a result of the closing are now entitled to receive financial compensation. Wal-Mart’s anti-union policies have angered many people throughout the years and the incident in Jonquiere was also featured in the documentary WALMART: The High Cost of Low Price. It seems that many people have this a priori assumption that Wal-Mart is evil and anything it does is utterly contemptible. Proponents of labour unions argue that workers cannot survive on a minimum wage and that in order to receive adequate wages, they need the representation of labour unions. The fact that Wal-Mart forbids employees to unionize, they argue, is indicative of the company’s greed and contempt for its workers.


I do not believe that Wal-Mart exploits its employees or harms poor communities. Due to their low prices, poor people can afford to buy more goods at Wal-Mart than they could at a less competitive store. Even if someone earns minimum wage, they can still afford to feed and clothe themselves thanks to the cheap supply of goods available at Wal-Mart. As a result of this cheap supply of goods, the standard of living in poor communities is greatly improved. The reason Wal-Mart can afford to keep their prices so low is because their business model is so austere and efficient—they cut corners wherever they can. Wal-Mart executives don’t ride around in gold-plated limousines; they fly coach and share hotel rooms with colleagues. The Wal-Mart headquarters isn’t a palace; it’s just a drab, normal-looking building.[1] This austerity extends to all Wal-Mart employees, which is why the company frowns upon unions and ostentatious benefits. Wal-Mart maintains its low prices because they pay their employees the wages that they do. If unionization, as in the Jonquiere case, would entail an increase in wages, then the Wal-Mart business model would no longer be viable to earn a profit. If the business model is not viable then the store must close. That’s Business 101. With these considerations in mind, one can see that Wal-Mart actually benefits poor communities—it’s labour unions that harm them.


The classic mantra from the left is that all corporations are greedy and wicked and they would pay their employees in pennies if the heroic labour unions weren’t there to stand up to them. Those who make such accusations not only betray their ignorance of basic supply and demand, but also their seething contempt for the rich. Labour unions are entirely self-serving organizations who benefit their own members at the expense of everyone else, and whose sole purpose is to siphon off wealth from one beneficiary to another. For example, if the US Airline Pilots Association bargains for a higher wage, then the cost will be passed onto the public through an increase of airplane ticket prices. Union leaders might claim that they are bargaining for wages at the expense of profits, but this is not true. Corporate profits are just not big enough. After taxes, corporate profits only amount to less than six percent of the total national income, whereas over eighty percent of total national income goes to pay for wages, salaries, and fringe benefits.[2]  Therefore, the cost of any benefits gained through union bargaining are almost always passed on to consumers. Since Wal-Mart prizes its ability to sell goods cheaply, one can see how unionization of their employees would not be in their best interest.



Unions also slow job creation. As labour unions bargain for higher wages and benefits, the cost for the business to hire new employees becomes more expensive. This means that a business will hire fewer employees and many people who are looking for work in that sector will be unable to find a job. Examples of this can be seen throughout history. In the 1920s, the United Mine Workers of America, led by John L. Lewis secured wages for its workers that were unprecedented at that time; as a result, the price of coal skyrocketed. Businesses also could no longer afford to hire coal workers, so they were gradually replaced with machines. By the early 1960s, there was massive unemployment in the coal industry and once prosperous mining towns became virtually deserted.[3] This example demonstrates the fact that unions only benefit their own members at the expense of everyone else. If unions were really looking out for the best interests of all workers, then they would dissolve themselves immediately.


Those who condemn Wal-Mart for closing their store in Jonquiere should reconsider their position. It is usually rich middle-class people who hate Wal-Mart because they see the company’s austere and frugal nature as exploitive of lower classes. However, Wal-Mart employs 1.4 million Americans[4] and 90 000 Canadians[5], contributing greatly to the workforce, and they can afford to sell goods at a discount to those who may not have been able to afford them otherwise. I see Wal-Mart as beneficial to any community because they are a cheap source of everyday goods. Why should Wal-Mart have kept that one store in Jonquiere open if unionization made their business-model unviable? Rational people are in business to make a profit, and if no profit is to be made in Jonquiere, Quebec, then businessmen will go elsewhere.






[1] http://money.howstuffworks.com/wal-mart.htm
[2] Friedman, Milton. Free to Choose: A Personal Statement. Pg. 234
[3] Sowell, Thomas. The Thomas Sowell Reader. Pg. 72
[4] http://www.forbes.com/sites/realspin/2013/11/27/why-do-1-4-million-americans-work-at-walmart-with-many-more-trying-to/
[5] http://walmartcanada.ca/Pages/Company%20Profile/168/163/163

Sunday, June 29, 2014

Top Ten Stupid Socialist Blunders


The following is a list of the ten worst blunders committed by socialist and collectivist states throughout history. These blunders range from crimes of pure negligence and stupidity to acts of violence and genocide. I have tried not to pick isolated incidents (of which there are many), but rather the items on this list are microcosms of the larger structural flaws in collectivist ideology. This list stands as a stark remainder of the failures caused by the implementation of socialism throughout history and why it should never be attempted again.


10. Chilean Inflation

Winning by a narrow margin in the 1970 election, Chilean president Salvador Allende became the first Marxist to be democratically elected as the leader of a Latin American country. During his first speech as head of state, Allende vowed to “destroy the economic basis for capitalism” and nationalize Chile’s copper mines—the main source of the country’s income. To the contempt of Chilean conservatives, businessmen, and the United States government, he attempted just that. Through excessive spending and buying out of shareholders, Allende was able to requisition most of the nation’s mines and factories. In 1972, however, the effort had become increasingly militarized, with armed party members seizing many of them by force.

These immoral and anti-capitalist tendencies of his eventually ran the Chilean economy into a fatal nosedive. By 1972, the government was 300 million dollars in debt, real wages had dropped nearly ten percent, and the inflation rate was 163%. The country was also relying more on agricultural imports to feed its people, increasing 84% since 1970.[1] Due to the gross mismanagement of the economy, American banks stopped giving the Chilean government loans, and as a result, Allende printed more money. When he was finally thrown out of power in a military coup in 1973, the inflation rate had reached a whopping 508%.[2] Salvador Allende’s successor, Augusto Pinochet initiated free market policies by privatizing the factories and paying the nation’s debt. The economy finally improved and the inflation rate stabilized.

Imbecilic monetary policy and economic mismanagement are trademarks of collectivist regimes. When a government engages in such irresponsible behaviour as seizing property and printing money, it is no wonder that other countries would be wary of doing business with them. Chile was certainly not the only socialist nation to have a runaway inflation rate, but it stands as a perfect example of how economic mismanagement can cripple the economy of such regimes.


9. Suppression of Free Speech in East Germany
The Stasi spied on you before Obama made it cool.

            From 1961 to 1990, Germany was split into two states by the Berlin Wall. The eastern half of Germany, known as the German Democratic Republic, was governed by the Stasi, a brutal secret police force.  The Stasi were meticulous at gathering information and keeping files on individuals they considered subversive, which in GDR, was just about everyone. Speaking out against the regime or discussing the Berlin Wall was strictly forbidden in GDR and censorship of information was strictly enforced by the state. If you were suspected of questioning the tenets of communism, then you would be imprisoned and tortured by the Stasi as a political prisoner. Other topics that were similarly forbidden to discuss in GDR included capitalism, fascism, pollution, the standard of living, education, homosexuality, pornography, alcoholism, and depression. Art that was not approved by the state was also banned.[3]

The split of Germany into two halves is significant because it acts as a natural experiment to show what happens when two previously identical nations adopt radically different policies. Under the capitalist-leaning west, the country prospered, whereas in the socialist East, a concrete wall was built to prevent people from fleeing. Proponents of collectivism never cease to argue how capitalism is tyrannical and oppressive, but if you compare the freedom of speech in GDR to the Federal Republic of Germany, it is the socialist state that is more oppressive. It is common among most socialist countries that freedom of speech is curtailed to some extent in order to maintain the illusion of homogenous public support.  One would be hard-pressed to argue how capitalism is more oppressive since freedom of speech and of the press is usually taken for granted in open societies. Unfortunately, we will never know the true cost that censorship had in GDR since great works of art that did not fit the vision of the state were hidden, destroyed, or were simply never created.

8. Personality Cult in Gaddafi’s Libya

In Socialist Libya, you can have a watch in any colour you want, as long as it's Gaddafi.

            In 1969, when he was only 27 years old, Muammar Gaddafi overthrew King Idris of Libya in a bloodless coup and began his 42 year-long rule of the country, which he later renamed The Great Socialist People’s Libyan Arab Jamahiriya. His political ideas, outlined in The Green Book, can be loosely described as the marriage of socialism and Islam. In typical fashion of both ideologies, Gaddafi fostered a cult of personality that would make Stalin or Saddam Hussein seem like the pinnacle of modesty in comparison. Prior to his violent overthrow in 2011, it would have been impossible to walk down the streets of Tripoli without seeing images of the dictator plastered all over the city. Much of the wealth generated by the country by its oil reserves was siphoned off by Gaddafi to fund his extravagant projects and vacations abroad. He also used state funds to supply weapons to global terrorist organisations and his government was responsible for the bombing of Pan Am Flight 103 in 1988.


           The Great Socialist People’s Libyan Arab Jamahiriya was just one of many socialist regimes ruled by a dictator who used the state as his personal bank account. Gaddafi didn’t give a fuck about the Libyan people, he only cared about himself. His idiosyncrasies, such as his all-female-virgin bodyguards, his massive bulletproof tent, and his eccentric outfits testify to his narcissism and corruption. Libya would have likely been a better place today had its wealth not been embezzled by Muammar Gaddafi.


7. Venezuela Shortage of Consumer Goods
Fuck, they're all out of Gatorade.


            It is characteristic of socialist regimes that their economic policies are self-destructive and betray a lack of understanding with basic laws of supply and demand. Due to its recently discovered oil reserves, Venezuela has become a moderately wealthy country, but its socialist leanings have kept the general public from enjoying any prosperity. During the reign of Hugo Chavez, extensive price controls were enforced that prevented certain goods from being sold above a given price. Even after Chavez’s death, the country continues to pass idiotic controls, such as a 30% ceiling on profits earlier this year.[4] All these regulations and price controls have produced results one might expect—widespread shortage of consumer goods. Some examples of products that are absent from Venezuelan store shelves include flour, sugar, cooking oil, deodorant, milk, butter, beer, coffee, and most desperately, toilet paper. The nation’s Toyota and Chrysler plants recently closed their doors as tires also became increasingly scarce. Many citizens rely on black markets to acquire certain goods, and must deal with the exorbitant prices and endless queues just to purchase a small bag of rice.[5]


            If you never bother to consider the long-term consequences of such policies, price-controls and profit ceilings seem like they might be beneficial, especially to the poor. Many people also take the wide selection of consumer goods in American grocery stores for granted. Most don’t bother to think where these goods come from, why they were produced, or how they were transported to the grocery store. Thus, many people don’t stop to consider how price controls will affect the supply of goods and assume that if the state is making things cheaper, then it must be for the better. However, those firms that produce and supply these goods do so to turn a profit.  If there is no money to be made by supplying Venezuela with toilet paper or deodorant, then firms will take their business elsewhere. The disastrous effects of price controls in socialist Venezuela demonstrates the disconnect between fluffy socialist rhetoric and the cold facts of reality and human nature. The dictatorship of the proletariat is not a world full of cheap and plentiful goods, but a world in which you wipe your ass with newsprint.

6. Communist China Starves to Death


            Between the three years of 1959 to 1961, China suffered a famine in which 40 million people starved to death. The famine was caused almost exclusively by the distribution policies of the government, but those sympathetic to Maoist communism erroneously put the blame on “enemies of the state” or natural disasters. When the government of China initiated The Great Leap Forward, private farms were abolished and the responsibility of grain distribution was placed in the hands of the state. The communes in charge of food production had to produce enough grain to meet state-imposed quotas, and the surplus grain they kept for themselves. However, as the government quotas increased, there became less and less grain left over as surplus. It also didn’t help that the communes had adopted idiotic farming techniques contrived by Soviet pseudoscientist, Trofim Lysenko, which further stunted crop yields. As a result, all the grain being produced by Chinese communes by 1959 was being seized by the state and the peasants starved en masse. For the next three years, China would experience the worst famine in recorded history, marked by violent crime, suicide, death, widespread cannibalization, and the market of human flesh. The eating of children and babies was common, where parents would swap each other’s children so they didn’t have to eat their own offspring.[6]


            Unable to see why the glorious and infallible doctrines of communism could cause such a catastrophe, the Chinese government naturally blamed “enemies of the state” and sent armed thugs across the country to seize any food they could find from peasants. They also initiated what came to be known as the Four Pests Campaign, which encouraged the killing of rats and sparrows, thought to be main destroyers of crops. Millions of sparrows were put to death. However, this only prolonged the famine since the mass death of sparrows allowed crop-eating insects like locusts to thrive and this further stunted the crop production.[7]
Don't kill the sparrows. They're your comrades.

            Widespread famines are not uncommon in socialist countries, but they are almost unheard of in capitalist ones. The fact that even some of these famines were the direct consequence of policies enforced by those socialist governments is a strong indictment against this reprehensible ideology. Fuck Chairman Mao.

5. Lev Mekhlis

            On the eastern front during World War Two, each division under Soviet command was appointed with one political commissar. The purpose of these commissars was to instil party solidarity with the soldiers and to ensure the war against Germany was conducted according to communist party guidelines. During the opening stages of Operation Barbarossa, they proved themselves to be largely ineffectual, as they frequently substituted the orders of the commanding officers with their own. This led to many needless and bloody Soviet defeats. One of the most notorious commissars was named Lev Zakharovich Mekhlis. He was a favourite of Josef Stalin, being such a vocal proponent, as well as participant in the Great Purges of 1936-38. For the whole course of the war, Mekhlis was sent around from headquarters to headquarters, executing Red Army officers for alleged insubordination. His presence was resented by the entire army. Mekhlis was adamant that deserters, malingers, and panic mongers were to be shot on the spot.[8] He also interfered in matters of command, being partially responsible for the fall of Sebastopol and Kerch to German forces in 1942. His orders at Kerch forbade the troops from digging in, and forced the command to move to the front trench. The Germans shelled the front trench and as a result, all Soviet division commanders at the battle were killed.[9]


            The nature of collectivism and socialism allows those like Mekhlis who have no discernable talents besides following orders and murdering people to rise to positions of authority. Mekhlis knew how to suck up to Stalin and he could spout socialist rhetoric, but he was a demonstrably ineffective military commander and he was responsible for thousands of unnecessary deaths. Collectivist ideology breeds complicit pieces of human waste like Lev Mekhlis.

4. Explosion of Birth Rates in Communist Romania

            During the early 1960s, Communist Romania was approaching zero population growth. Nicolai Ceausescu, the dictator of the country, decided that if the Romanian population was to grow, it would be through government legislation. Thus his government passed laws that abolished abortion, outlawed contraceptives, and divorce, collectively known as Decree770. Gynaecology exams were also mandated and pregnant women were closely monitored by the government to ensure that they did not get an abortion. Romanian couples who did not have children were forced to payer higher taxes, whereas non-working mothers received subsidies from the state. As a result of these policies, Romania’s birth rates exploded, nearly out of control. In 1968, Romania’s population had increased by nearly 100%.[10][11] It also didn’t help that Communist Romania faced a debt crisis during the 1980s that reduced the standard of living drastically. Families were forced into overcrowded apartments without heating or adequate food. Orphanages became bloated, nightmarish hells full of starving unwanted children. Even long after Ceausescu was thrown out of power, his idiotic pronatalist policies could be seen in the Romania’s overcrowded orphanages, prisons, and mental asylums.[12]


            The failure of these policies stands as testament to the ineffectiveness of central-planned economies and of collectivism in general. Outlawing all forms of birth control has the tendency to make birth rates explode, but in the poverty of communist Romania, such high birth rates could not be sustained. How his country was going to accommodate all the children being born under these policies, Ceausescu likely did not take into account. I believe such negligence is characteristic of most laws passed by other socialist regimes.


3. Massacre of Innocents in Cambodia


Cambodia was subjected to the brutal dictatorship of Pol Pot and the Khmer Rouge between 1975 and 1979. Pol Pot rose to power following the escalation of American bombing campaigns during the Vietnam War. In 1970s, American bombings had spilled over into Cambodia, galvanizing hatred towards to west and an embrace of The Khmer Rouge and Pol Pot’s anti-imperialist rhetoric. Pol Pot’s dictatorship was marked by mass killings, starvations, imprisonments, and torture. The dictator’s wrath was mostly directed at racial minorities such as Chinese and Vietnamese, as well as intellectuals, of whom Pol Pot was distrustful. Others who were targeted for killing included businessmen, artists, professionals, Buddhist monks, former government employees, and anybody accused of “economic sabotage.” Most victims of the regime were not shot, but were beaten to death savagely with tools such as shovels and pickaxes in order to save bullets.[13] All this bloodshed was an effort by Pol Pot’s communist government to establish a radical agrarian socialism, where former city-dwellers were forced to work in the fields for long hours each day. For those who dared criticize the regime, prisons such as Tuol Sleng were established where inmates would be starved and brutally tortured for months before being executed. Estimates range about how many were killed by The Khmer Rouge, but the figure is generally accepted to be in the millions, possibly as high as three million.[14] The systematic effort by the Khmer Rouge to murder its own people goes to show the true face of socialism. As with most collectivist states that commit genocide, most of those executed are innocent—their lives completely disposable, extinguished on a whim by a sociopathic dictator. So many of those who were exterminated were intelligent and productive people, and would have worked to make the world a better place had their lives not been wasted in the pursuit of a twisted socialist utopia.


2. North Korea
"This isn't my hair-dryer!"

            The Democratic People’s Republic of Korea is such an exhibition of bureaucratic incompetence and human cruelty that it would be difficult to pick one single blunder for this list. Since its official establishment in 1948 DPRK has run up a laundry list human right abuses. Economic mismanagement caused a massive famine between 1994 and 1998 in which 3 million people died. Even today, long after the famine officially ended, food is still scarce throughout the country—especially in the countryside. Peasants regularly starve to death in the hundreds. In 2013, the UN estimated that 84 percent of the country had “poor” levels of food consumption. Meanwhile, the current dictator of DPRK, Kim Jong-Un does not want for anything; in 2012 alone, he spent nearly 7 million dollars on goods like handbags, luxury watches, cosmetics, and alcohol. In that same year, he also spent 1.3 billion dollars on ballistic missile programs.[15] The North Korean Army, which is the fourth largest in the world, has an annual budget of 6 billion dollars.


            The most appalling side of North Korea is not its gross economic mismanagement, but its unsympathetic brutality towards its populace. Those who have escaped the many prison camps throughout the country testify to acts of extreme cruelty and barbarity. Inmates in these prisons face constant threats of arbitrary beatings and executions by the guards, who reportedly enjoy torturing inmates with cattle prods. Women are regularly raped and given forced abortions.[16] The number of political prisoners within North Korea has grown dramatically over the past five years, with an estimated quarter million imprisoned in 2011.[17] Considering the North Korean government does not release statistics to this effect leads one to wonder how much abuse is happening in the country that we don’t even know about yet.

            Such a disgraceful track record of abuse as that of DPRK is not uncommon for most other collectivist countries on this list. DPRK is but a single entry in the long list of failed socialist states. It is a sad reflection on the mental development of the west that some delinquents still apologize for the crimes of this regime.


1. The Great Purges Decapitate USSR
Marshal Mikhail Tukhachevsky, a prominent victim of the Great Purges.

            Josef Stalin was paranoid of everyone. As dictator of the Soviet Union, he saw enemies wherever he looked for them: among his friends, family, the army, the intelligentsia, fellow party members, and acquaintances. Stalin began his purges in 1936, seeking to eliminate the Old Bolsheviks who fought in the Russian Civil War as well as any political rivals, but as the purges progressed, individuals from all facets of society became targets. Nobody was safe. Ninety percent of Red Army officers were purged, including three out of five Marshals, thirteen out of fifteen army commanders, and all sixteen army commissars.[18] Many talented commanders like Mikhail Tukhachevsky, Alexander Yegrov, Iona Yakir, and Vitaly Primakov were all put to death. Prominent journalists, writers, politicians, engineers, and architects were also killed or imprisoned. All in all, declassified Soviet documents reveal that 681, 692 people were killed from 1937-1938—an average of one thousand executions a day.[19] Many more were arrested and died later in the gulags.


          The needless loss of so many Russian intellectuals and leaders meant that the Soviet Union was wholly unprepared to deal with the German invasion of 1941. Stalin’s purges had effectively decapitated the Red Army of all its best officers. Even the Soviet military doctrine which was written by Tukhachevsky, was replaced by a crude, and wholly ineffective one written by Kliment Voroshilov, a diehard Stalinist. Many of the tragic disasters on the eastern front during the early years of the war such as Smolensk (1941) and Kerch (1942) occurred as a direct result of the lack of well-trained, experienced Soviet officers.

            Those who are sympathetic to Soviet Russia laud the will of the communists to resist and ultimately beat back the Nazi invasion. However, the reason why the Germans had such success against the Russians in the early stages of Operation Barbarossa was  due to the unfit state of the Red Army to repel such an invasion. Stalin’s purges had consolidated his hold over the country and eliminated any opposition, but they were ultimately wasteful and unproductive. The Purges also indirectly led to millions of Russians being needlessly slaughtered during World War Two.







[1] http://historicaltextarchive.com/sections.php?action=read&artid=671
[2] http://historicaltextarchive.com/sections.php?action=read&artid=671
[3] http://en.wikipedia.org/wiki/Censorship_in_east_germany#Censored_topics
[4] http://news.investors.com/ibd-editorials/032014-694100-shortages-black-markets-emerge-in-socialist-venezuela.htm
[5] http://www.theguardian.com/global-development/poverty-matters/2013/sep/26/venezuela-food-shortages-rich-country-cia
[6] http://www.nytimes.com/1997/02/05/books/horror-of-a-hidden-chinese-famine.html
[7] Summers-Smith, J Denis. In Search of Sparrows, pg. 122-124
[8] Roberts, Geoffrey. Stalin’s Wars: From World War to Cold War (1939-1953), pg. 97
[9] James Lucas, War on the Eastern Front: The German Soldier in Russia 1941-1945

[10] http://study.abingdon.org.uk/geography/new/AS/AS_population/Population_policies/pop%20policies%202003/Romania/tsld004.htm
[11] http://en.wikipedia.org/wiki/Decree_770
[12] https://www.youtube.com/watch?v=3ISSgupUtpU
[13] http://en.wikipedia.org/wiki/Khmer_Rouge_period_(1975%E2%80%931979)#Terror
[14] http://www.mekong.net/cambodia/deaths.htm
[15] http://www.nytimes.com/2014/03/08/opinion/pyongyangs-hunger-games.html?_r=0
[16] http://guardianlv.com/2014/06/north-korea-accused-of-genocide-by-south-korean-human-rights-group/
[17] http://www.nytimes.com/2011/05/05/world/asia/05korea.html
[18] Courtois, Stephane. The Black Book of Communism. Pg. 98
[19] http://en.wikipedia.org/wiki/Great_Purge#Number_of_people_executed