All posts in Capitalism

Reagan Vs. Obama – Social Economics 101

I posted this clip to help promote the informative documentary film “I WANT YOUR MONEY” Buy the full documentary athttp://www.IWantYourMoney.net. If you like this short clip, you will love the full length documentary. It features great in-depth interviews with economic experts and knowledgeable political figures including:
Mike Huckabee
Stephen Moore
Michael Reagan
William Voegeli
Star Parker
Kenneth Blackwell
Edwin Meese lll
Thad McCotter
Newt Gingrich
Lee Edwards
Pete Wilson
Steve Forbes
Gary Bauer
Kate Obenshain
Chris Edwards
David M. McIntosh
Lila Rose
John Stossel
Allen Icet
Rob Schaaf
John Stossel
Tom McClintock
Andrew Breitbart
George Runner
Alison Fraser

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Critics of capitalism call global protest in June

Anti-capitalism activists sing in front of the university campus during the 2012 World Social Forum in Porto Alegre, southern Brazil, on January 25. Thousands of critics of capitalism meeting in Brazil called Sunday for a worldwide protest in June to press for concrete steps to tackle the global economic crisis.:ViatThousands of critics of capitalism meeting in Brazil called Sunday for a worldwide protest in June to press for concrete steps to tackle the global economic crisis.

Via: Breitbart

The World Social Forum wrapped up a five-day meeting in this southern Brazilian city, urging citizens to “take to the streets on June 5″ for the global action, which would be in support of social and environmental justice.

The forum also announced a “peoples’ summit” of social movements to be held in parallel with the high-level UN conference on sustainable development scheduled next June 20-22 in Rio.

The Rio+20 summit, the fourth major gathering on sustainable development since 1972, will press world leaders to commit themselves to creating a social and “green economy,” with priority being given to eradicating hunger.

But World Social Forum participants, including representatives of the Arab Spring, Spain’s “Indignant” movement, Occupy Wall Street, and students from Chile, sharply criticized the concept of “a green economy” that would allow multinational corporations to reap the profit.

“The political and economic elites are the one percent who control the world and we are the one percent seeking to change it. Where are the (other) 98 percent?” said Chico Whitaker, one of the Forum’s founders.

“There are many who are happy because each time they get more consumer goods, but many are concerned and unsatisfied. The challenge for us is to speak with them.”

“If we do not raise the issue of inequality, we won’t solve the problems,” said Venezuelan sociologist Edgardo Lander.

“If the system is not capable of redistributing and deal with inequality, we have to do it ourselves,” agreed Sam Halvorsen, of the Occupy London movement.

The Forum is an alliance of social movements opposed to the World Economic Forum, the annual gathering of the world’s economic and political elites held at the same time in the Swiss resort of Davos.

Addressing the gathering Thursday, Brazilian President Dilma Rousseff appealed for “a development model that articulates growth and job creation,battles poverty and decreases inequalities,” and advocates for the “sustainable use and preservation of natural resources.”

Candido Grzywoski, one of the founders and a coordinator of the Forum, said the urgency of the global economic crisis and the popular indignation around the world “gave us more unity in diversity.”

The Forum, which drew around 40,000 participants this year, has its roots in 1999 street protests in the US city of Seattle during a World Trade Organization meeting but it settled in Porto Alegre as its regular venue 12 years ago when it drew 20,000 activists from around the world.

Next year, it will be held in Cairo.

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Obama: People Don’t Get Rich On Their Own, They’re Successful Because Of The Federal Government…

Via: Weaselzippers, He’s about as clueless as it gets.

(Fox News) — President Obama tells a college audience that people don’t get rich on their own. Obama’s point that without government and paying your fair share, ultimately the successful wouldn’t be able to get where they are.

“We do not begrudge wealth in this country. I want everybody here to do well. We aspire to financial success, but we also understand that we’re not successful just by ourselves,” President Obama said at a campaign event in Ann Arbor, Michigan on Friday morning.

“We’re successful because somebody started the University of Michigan. We’re successful because somebody made an investment in all the federal research labs that created the internet. We’re successful because we have an outstanding military that costs money. We’re successful because somebody built roads and bridges. And laid broadband lines and these things didn’t just happen on their own. And if we all understand that we’ve got to pay for this stuff, it makes sense for those of us who’ve done best to do our fair share and to try to pass off that bill on to somebody else, that’s not right. That’s not who we are,” he said.

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Palin on husband’s Newt endorsement: ‘First dude went rogue’ [VIDEO]

From Fox Business News “Follow the Money” on January 10:

Read more: http://dailycaller.com/2012/01/11/palin-on-husbands-newt-endorsement-first-dude-went-rogue-video/#ixzz1j7rxgHKO

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Limbaugh: Newt’s rhetoric ‘sounds like left-wing social engineering’

Rush LimbaughOn Monday, conservative talk show host Rush Limbaugh warned that former House Speaker Newt Gingrich’s use of liberal talking-point language to attack Republican presidential front-runner Mitt Romney was making him “uncomfortable.” He doubled down on that criticism Tuesday, comparing Gingrich to President Barack Obama.

“That is what the people who indict capitalism say,” Limbaugh said. “It continues to make me uncomfortable.”

Limbaugh compared a Gingrich “Fox & Friends” appearance on Tuesday morning to Obama’s April 2010 remark that “at a certain point you’ve made enough money.” But in a critique reminiscent of Gingrich’s May 2011 attack on Wisconsin Republican Rep. Paul Ryan’s budget roadmap, Limbaugh called Gingrich’s commentary “left-wing social engineering.”

“The way Newt is talking here — I never heard him speak this way before, I must tell you,” Limbaugh said. “And the way he is speaking, this sounds like left-wing social engineering. Does it not, when I have to play an audio sound bite from Barack Obama to translate what Newt said about Romney and Bain?”

Limbaugh also disclosed that his Bain Capital was his syndication partner since the firm bought his former syndicator Clear Channel Communications in 2006. But he said in his dealing with the company, it has been nothing like what Gingrich is describing. He also said Gingrich’s remarks were something you might see on an Occupy Wall Street flyer.

Listen:

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Read more: http://dailycaller.com/2012/01/10/limbaugh-newts-rhetoric-sounds-like-left-wing-social-engineering/#ixzz1j6kIGP4y

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I Pencil

My Family Tree as told to Leonard E. Read

RP.1
I am a lead pencil—the ordinary wooden pencil familiar to all boys and girls and adults who can read and write.*

RP.2
Writing is both my vocation and my avocation; that’s all I do.

RP.3
You may wonder why I should write a genealogy. Well, to begin with, my story is interesting. And, next, I am a mystery—more so than a tree or a sunset or even a flash of lightning. But, sadly, I am taken for granted by those who use me, as if I were a mere incident and without background. This supercilious attitude relegates me to the level of the commonplace. This is a species of the grievous error in which mankind cannot too long persist without peril. For, the wise G. K. Chesterton observed, “We are perishing for want of wonder, not for want of wonders.”

RP.4
I, Pencil, simple though I appear to be, merit your wonder and awe, a claim I shall attempt to prove. In fact, if you can understand me—no, that’s too much to ask of anyone—if you can become aware of the miraculousness which I symbolize, you can help save the freedom mankind is so unhappily losing. I have a profound lesson to teach. And I can teach this lesson better than can an automobile or an airplane or a mechanical dishwasher because—well, because I am seemingly so simple.

RP.5
Simple? Yet, not a single person on the face of this earth knows how to make me. This sounds fantastic, doesn’t it? Especially when it is realized that there are about one and one-half billion of my kind produced in the U.S.A. each year.

RP.6
Pick me up and look me over. What do you see? Not much meets the eye—there’s some wood, lacquer, the printed labeling, graphite lead, a bit of metal, and an eraser.

Innumerable Antecedents

RP.7
Just as you cannot trace your family tree back very far, so is it impossible for me to name and explain all my antecedents. But I would like to suggest enough of them to impress upon you the richness and complexity of my background.

RP.8
My family tree begins with what in fact is a tree, a cedar of straight grain that grows in Northern California and Oregon. Now contemplate all the saws and trucks and rope and the countless other gear used in harvesting and carting the cedar logs to the railroad siding. Think of all the persons and the numberless skills that went into their fabrication: the mining of ore, the making of steel and its refinement into saws, axes, motors; the growing of hemp and bringing it through all the stages to heavy and strong rope; the logging camps with their beds and mess halls, the cookery and the raising of all the foods. Why, untold thousands of persons had a hand in every cup of coffee the loggers drink!

RP.9
The logs are shipped to a mill in San Leandro, California. Can you imagine the individuals who make flat cars and rails and railroad engines and who construct and install the communication systems incidental thereto? These legions are among my antecedents.

RP.10
Consider the millwork in San Leandro. The cedar logs are cut into small, pencil-length slats less than one-fourth of an inch in thickness. These are kiln dried and then tinted for the same reason women put rouge on their faces. People prefer that I look pretty, not a pallid white. The slats are waxed and kiln dried again. How many skills went into the making of the tint and the kilns, into supplying the heat, the light and power, the belts, motors, and all the other things a mill requires? Sweepers in the mill among my ancestors? Yes, and included are the men who poured the concrete for the dam of a Pacific Gas & Electric Company hydroplant which supplies the mill’s power!

RP.11
Don’t overlook the ancestors present and distant who have a hand in transporting sixty carloads of slats across the nation.

RP.12
Once in the pencil factory—$4,000,000 in machinery and building, all capital accumulated by thrifty and saving parents of mine—each slat is given eight grooves by a complex machine, after which another machine lays leads in every other slat, applies glue, and places another slat atop—a lead sandwich, so to speak. Seven brothers and I are mechanically carved from this “wood-clinched” sandwich.

RP.13
My “lead” itself—it contains no lead at all—is complex. The graphite is mined in Ceylon. Consider these miners and those who make their many tools and the makers of the paper sacks in which the graphite is shipped and those who make the string that ties the sacks and those who put them aboard ships and those who make the ships. Even the lighthouse keepers along the way assisted in my birth—and the harbor pilots.

RP.14
The graphite is mixed with clay from Mississippi in which ammonium hydroxide is used in the refining process. Then wetting agents are added such as sulfonated tallow—animal fats chemically reacted with sulfuric acid. After passing through numerous machines, the mixture finally appears as endless extrusions—as from a sausage grinder-cut to size, dried, and baked for several hours at 1,850 degrees Fahrenheit. To increase their strength and smoothness the leads are then treated with a hot mixture which includes candelilla wax from Mexico, paraffin wax, and hydrogenated natural fats.

RP.15
My cedar receives six coats of lacquer. Do you know all the ingredients of lacquer? Who would think that the growers of castor beans and the refiners of castor oil are a part of it? They are. Why, even the processes by which the lacquer is made a beautiful yellow involve the skills of more persons than one can enumerate!

RP.16
Observe the labeling. That’s a film formed by applying heat to carbon black mixed with resins. How do you make resins and what, pray, is carbon black?

RP.17
My bit of metal—the ferrule—is brass. Think of all the persons who mine zinc and copper and those who have the skills to make shiny sheet brass from these products of nature. Those black rings on my ferrule are black nickel. What is black nickel and how is it applied? The complete story of why the center of my ferrule has no black nickel on it would take pages to explain.

RP.18
Then there’s my crowning glory, inelegantly referred to in the trade as “the plug,” the part man uses to erase the errors he makes with me. An ingredient called “factice” is what does the erasing. It is a rubber-like product made by reacting rape-seed oil from the Dutch East Indies with sulfur chloride. Rubber, contrary to the common notion, is only for binding purposes. Then, too, there are numerous vulcanizing and accelerating agents. The pumice comes from Italy; and the pigment which gives “the plug” its color is cadmium sulfide.

No One Knows

RP.19
Does anyone wish to challenge my earlier assertion that no single person on the face of this earth knows how to make me?

RP.20
Actually, millions of human beings have had a hand in my creation, no one of whom even knows more than a very few of the others. Now, you may say that I go too far in relating the picker of a coffee berry in far off Brazil and food growers elsewhere to my creation; that this is an extreme position. I shall stand by my claim. There isn’t a single person in all these millions, including the president of the pencil company, who contributes more than a tiny, infinitesimal bit of know-how. From the standpoint of know-how the only difference between the miner of graphite in Ceylon and the logger in Oregon is in the type of know-how. Neither the miner nor the logger can be dispensed with, any more than can the chemist at the factory or the worker in the oil field—paraffin being a by-product of petroleum.

RP.21
Here is an astounding fact: Neither the worker in the oil field nor the chemist nor the digger of graphite or clay nor any who mans or makes the ships or trains or trucks nor the one who runs the machine that does the knurling on my bit of metal nor the president of the company performs his singular task because he wants me. Each one wants me less, perhaps, than does a child in the first grade. Indeed, there are some among this vast multitude who never saw a pencil nor would they know how to use one. Their motivation is other than me. Perhaps it is something like this: Each of these millions sees that he can thus exchange his tiny know-how for the goods and services he needs or wants. I may or may not be among these items.

No Master Mind

RP.22
There is a fact still more astounding: the absence of a master mind, of anyone dictating or forcibly directing these countless actions which bring me into being. No trace of such a person can be found. Instead, we find the Invisible Hand at work. This is the mystery to which I earlier referred.

RP.23
It has been said that “only God can make a tree.” Why do we agree with this? Isn’t it because we realize that we ourselves could not make one? Indeed, can we even describe a tree? We cannot, except in superficial terms. We can say, for instance, that a certain molecular configuration manifests itself as a tree. But what mind is there among men that could even record, let alone direct, the constant changes in molecules that transpire in the life span of a tree? Such a feat is utterly unthinkable!

RP.24
I, Pencil, am a complex combination of miracles: a tree, zinc, copper, graphite, and so on. But to these miracles which manifest themselves in Nature an even more extraordinary miracle has been added: the configuration of creative human energies—millions of tiny know-hows configurating naturally and spontaneously in response to human necessity and desire and in the absence of any human master-minding! Since only God can make a tree, I insist that only God could make me. Man can no more direct these millions of know-hows to bring me into being than he can put molecules together to create a tree.

RP.25
The above is what I meant when writing, “If you can become aware of the miraculousness which I symbolize, you can help save the freedom mankind is so unhappily losing.” For, if one is aware that these know-hows will naturally, yes, automatically, arrange themselves into creative and productive patterns in response to human necessity and demand—that is, in the absence of governmental or any other coercive masterminding—then one will possess an absolutely essential ingredient for freedom: a faith in free people. Freedom is impossible without this faith.

RP.26
Once government has had a monopoly of a creative activity such, for instance, as the delivery of the mails, most individuals will believe that the mails could not be efficiently delivered by men acting freely. And here is the reason: Each one acknowledges that he himself doesn’t know how to do all the things incident to mail delivery. He also recognizes that no other individual could do it. These assumptions are correct. No individual possesses enough know-how to perform a nation’s mail delivery any more than any individual possesses enough know-how to make a pencil. Now, in the absence of faith in free people—in the unawareness that millions of tiny know-hows would naturally and miraculously form and cooperate to satisfy this necessity—the individual cannot help but reach the erroneous conclusion that mail can be delivered only by governmental “master-minding.”

Testimony Galore

RP.27
If I, Pencil, were the only item that could offer testimony on what men and women can accomplish when free to try, then those with little faith would have a fair case. However, there is testimony galore; it’s all about us and on every hand. Mail delivery is exceedingly simple when compared, for instance, to the making of an automobile or a calculating machine or a grain combine or a milling machine or to tens of thousands of other things. Delivery? Why, in this area where men have been left free to try, they deliver the human voice around the world in less than one second; they deliver an event visually and in motion to any person’s home when it is happening; they deliver 150 passengers from Seattle to Baltimore in less than four hours; they deliver gas from Texas to one’s range or furnace in New York at unbelievably low rates and without subsidy; they deliver each four pounds of oil from the Persian Gulf to our Eastern Seaboard—halfway around the world—for less money than the government charges for delivering a one-ounce letter across the street!

RP.28
The lesson I have to teach is this: Leave all creative energies uninhibited. Merely organize society to act in harmony with this lesson. Let society’s legal apparatus remove all obstacles the best it can. Permit these creative know-hows freely to flow. Have faith that free men and women will respond to the Invisible Hand. This faith will be confirmed. I, Pencil, seemingly simple though I am, offer the miracle of my creation as testimony that this is a practical faith, as practical as the sun, the rain, a cedar tree, the good earth.

RP.29

Leonard E. Read (1898-1983) founded FEE in 1946 and served as its president until his death.

“I, Pencil,” his most famous essay, was first published in the December 1958 issue of The Freeman. Although a few of the manufacturing details and place names have changed over the past forty years, the principles are unchanged.
* My official name is “Mongol 482.” My many ingredients are assembled, fabricated, and finished by Eberhard Faber Pencil Company.