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Showing posts with label TANSTAAFL. Show all posts
Showing posts with label TANSTAAFL. Show all posts

Friday, February 21, 2020

Election Reminder TANSTAAFL

A reposting from a couple of years ago here in which a reminder of "There ain't no such thing as as a free lunch" (TANSTAAFL) as a warning of the efforts of "democratic socialists" to claim power over your lives. What are you willing to pay of sacrifice for "free stuff."
Just how far out are some members of the "Democratic Socialists of America?"

Some clues in the National Public Radio piece What You Need To Know About The Democratic Socialists Of America
Here's how one socialist sums up his beliefs:

"I think we just need to realize that the end goal is, ultimately, like social control of the means of production," said Joe Cernelli, a founding member of that West Virginia DSA chapter. "You know we don't just want to improve capitalism, we will ultimately want to get rid of it."

That's not just his idea; the DSA views capitalism as an oppressive system — "We see it as fundamentally undemocratic," as DSA National Director Maria Svart put it. Here's how she sums up what the group wants:

"When it comes right down to it, we believe people need to be able to live a dignified life. I mean, there are certain things that should not be left up to the market," she said.

Removing some parts of the economy from the forces of the free market, for example. In other words, socialism.

In the DSA's ideal economy, some sectors — like health care and utilities — would be government-controlled. Other businesses would be worker-owned, as Svart explains it.

"Let's say you were negotiating at a bargaining table with workers in a bakery, and the workers said, 'Look, we want more than a quarter of the bread; we want half of the bread, or we want two-thirds of the bread,' " she said. "The socialist would say, 'Actually, we want the bakery. We want to control it all, for all of our benefit.' "
Oh. Management by committee? Or by the whole? Are some workers going to be more equal than others in order to direct the effort of the bakery? Will there be meetings to discuss what products will be produced - a ban on unhealthy things like cakes and doughnuts and an increase in non-GMO, gluten free products? What happens if the consumers reject the bakery products? Can the workers dump "free-riders" - non-productive "owners?" Or will they demand other bakeries conform to their product list?

I've got to hand to these people - they truly believe that humans can be perfected by this approach and "if only" "real socialism" were applied then everything would be wonderful. That "true belief" relies on a total lack of historical knowledge and a whole lot of magical thinking.

Then there's the need to get rid of that messy U. S. Constitution thing:
It's easy to focus on the "socialist" part here, but the word "democratic" is also a part of the group's name, and members often stress that part of their ideology. They say putting workers in charge of businesses, for example, necessarily makes those businesses more democratic.

But beyond that, the group advocates for some pretty revolutionary changes to democracy, like abolishing the Senate. The DSA calls it "extremely unrepresentative" for the way it gives both tiny and huge states alike two senators each — the group would like to replace it with a more representative body.
And, of course, money is never a problem for these folks - they'll just raise taxes on the "wealthy" and on "corporations" to pay for their pipe dreams. Of course, those "corporations" have employees who are free to purchase stock in their companies or other companies, thus becoming "worker-owners" - who will be hurt by the confiscation of the income generated by their work and the work of their fellow workers.

Well, as many of us know, this sort of thinking has not worked well in other places.

What Exactly is a Socialist Economy?:
In a capitalist economy, the market determines prices through the laws of supply and demand. For example, when demand for coffee increases, a profit-seeking business will boost prices to increase its profit. If at the same time, society’s appetite for tea diminishes, growers will face lower prices, and aggregate production will decline. In the long run, some suppliers may even exit the business. Because consumers and suppliers negotiate a new “market-clearing price” for these goods, the quantity produced more or less matches the public’s needs.

Under a true socialist system, it’s the government’s role to determine output and pricing levels. The challenge is synchronizing these decisions with the needs of consumers. Socialist economists such as Oskar Lange have argued that, by responding to inventory levels, central planners can avoid major production inefficiencies. So when stores experience a surplus of tea, it signals the need to cut prices, and vice versa.

One of the critiques of socialism is that, even if government officials can adjust prices, the lack of competition between different producers reduces the incentive to do so. Opponents also suggest that public control of production necessarily creates an unwieldy, inefficient bureaucracy. The same central planning committee could, in theory, be in charge of pricing thousands of products, making it extremely difficult to react to market cues promptly.

Furthermore, the concentration of power within government can create an environment where political motivations override the basic needs of the people. Indeed, at the same time the Soviet Union was diverting vast resources to build up its military capability, its residents often had trouble attaining a variety of goods, including food, soap, and even television sets.
Political motivations? When the government controls work, housing, and medical care it can control behavior by selectively denying access to such things to disfavored groups as happened in the former Yugoslavia, as set out in David Rieff's Slaughterhouse: Bosnia and the Failure of the West (p87)
. . . But most people still expected to work in the same place for life, and had grown accustomed to looking to the workplace for all kinds of accompanying benefits. Being fired meant losing a great deal more than a paycheck . . . what were indispensable were the health insurance and other state benefits that were immediately revoked when a person was fired.

People were even made insecure in their lodgings . . . In Serbia proper, people's fear of being fired . . . and losing a flat owned by that enterprise was one of the ways the Milosevic regime compelled consent. Better support the regime than be out in the street homeless. In Banja Luka, this legacy of the Titoist period provided the Serb authorities with the next move in the process of ethnically cleansing the urban non-Serbian population. The firing itself was only the beginning. For once when someone's dismissal had been made known officially, the next step was for a letter to be sent demanding that the person vacate the apartment in which he or she had been living.

Thus, to be deprived of a job was almost to stop being citizen, to be forcibly be moved from the status of non-Serb to the status of non-person in only a couple of official decrees.
Far-fetched in the U.S.? Noticed any people losing their jobs because of current or even lost past transgressions of the whatever today's standard of politically correct behavior is?

In case you haven't gotten the message, the DSA is all about power. The power to take control of your life and the lives of all Americans and subvert them to the will of a small group of people who have the firm belief that they know what is best for all of us - despite what we may believe.
If you've paid attention to the Democrat Party debates, the whole premise is about the right of the state to control your lives, from cradle to grave.

Some of those who think "free college" is a great idea haven't the smarts to think ahead to the point that the state eventually will decide what must be studied. Think that's an exaggeration? You can go to any local school district today and see that federal government funding has determined what major parts of the approved curriculum are and failure to comply will result in loss of federal funding.

As set out here:
....Department of Education does not directly oversee the nation’s 100,000 public schools. States have some oversight, but individual municipalities, are, in most cases, the legal entities responsible for running schools and for providing the large majority of funding through local tax dollars.

Still, the federal government uses a complex system of funding mechanisms, policy directives, and the soft but considerable power of the presidential bully pulpit to shape what, how, and where students learn.
See also here. And here:
The federal government is not without authority, however, as the federal government exercises control at times based on the amount of funding it provides states. This is especially true in higher education, as the federal government wields its unofficial power by set strict requirements for schools to be eligible for federal grant and loan programs, something that almost no college or university can survive without.

This is true in primary and secondary education also. Each state is responsible to submit their requisition for educational grants and funds individually to be eligible for federal funding. Therefore, the federal government can control state systems by funding programs that are deemed acceptable within its standards and by granting more aid to some states as compared to others based on their proposals. However, states do not get most of their educational funding from the federal government; in fact most of the funding comes from the state taxation system. Therefore, states can choose not to follow federal guidelines for funding and still run their educational system outside of the federal guidelines. Most choose, however, to follow federal guidelines in order to receive federal aid.
This semi-indirect control over education based on funding and "standard setting" may explain why some political parties strive so hard to appeal to educators, the key to controlling what is "acceptable" thinking.

Whining about the "unfairness" and "anti-democratic" nature of the Electoral College and the U.S. Senate are just part of the same lust for power. The lust that our Constitution was designed to contain.

Thursday, July 17, 2014

TANSTAAFL, "There Ain't No Such Thing as a Free Lunch" and the Defense Budget

David R. Henderson, TANSTAAFL, There Ain't No Such Thing as a Free Lunch
"TANSTAAFL." It stands for "There Ain't No Such Thing As a Free Lunch." Science fiction writer Robert Heinlein popularized the acronym in his novel The Moon is a Harsh Mistress.
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There are two meanings of the expression, "There Ain't No Such Thing as a Free Lunch." The first, which is always true, is that there is scarcity, and scarcity necessitates tradeoffs. The second, which is almost always true, is that when someone offers you something "for free," he expects something in return. Both are important meanings of the expression. And both are highly relevant to understanding economics and human behavior.
About 42 or so years ago, an "Intro to Economics" course I observed used a book tited Tanstaafl (There Ain't No Such Thing as a Free Lunch) - A Libertarian Perspective on Environmental Policy by Edwin Dolan. Here's a portion of the introduction:

Just as a thought experiment, try pondering how "free" healthcare is provided.

Get it?

But, hey, this is post about National Defense! So how does TANSTAAFL apply?

Okay, how about this?
[President] Obama last week requested $3.7 billion from Congress to respond to the flow of children crossing the border but that did not include additional funding for the military, which is housing thousands of immigrant children and trying to contain the violent drug trade.
Regardless of the merits of spending $3.7 billion on people entering the U.S. illegally, there is the question of the tradeoffs the military must make in "housing thousands of immigrant children and trying to contain the violent drug trade." After all, the military is a scarce resource that must always tradeoff resources to accomplish its missions. What missions will be sacrificed to bear the costs associated with these children? Do we want to fire thousands of highly trained people to allow the budget to balance?

Perhaps.

The U.S. Army is looking to cut 120,000 troops by 2020:
The 2014 QDR states that the active Army will reduce from its war-time high of 570,000 to 440,000–450,000 Soldiers.
If you want to see how that plays out, look at the suggested economic impact (tradeoff) on some of the communities that surround military bases.

For example, at Ft Campbell, Ky which could lose up to 16,000 troops and civilians by 2020:
With those losses, yearly income in the area is expected to fall by 7.7 percent, or $986.6 million. Total reduction in sales is estimated at $768.6 million with a corresponding loss in sales tax receipts in both Tennessee and Kentucky estimated at between $7.4 to $11.6 million annually.
Sorry, FT Campbell, we need that money for other things more important than your local economy.

Or how about Langley AFB which has some 742 position cuts proposed?:
The plan does not break down the 742 positions between military and civilian personnel.

"It does not mean 742 people at Langley are losing their jobs," said Capt. Erika Yepsen, an Air Force spokeswoman. "It means that 742 positions are coming off the books."
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It should be considered "a disappointment to the local economy," but just how much remains to be seen, said Bruce Sturk, director of federal facilities support for the City of Hampton. It comes one week after the Army announced a potential cut of up to 4,200 people at Fort Eustis in Newport News should deep spending reductions return in 2016.
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The positions cut at Langley are part of a plan to reduce 3,459 positions in the Air Force, both in the U.S. and overseas. It is designed to save $1.6 billion in the next five years, but the positions will be limited sooner than that, said Air Force Secretary Deborah Lee James.
A billion here, a billion there, pretty soon you can afford to "respond to the flow of children crossing the border."

TANSTAAFL hits the Navy, too. See Navy Cancelled New Destroyer Flight Due to Ohio Replacement Submarine Costs:
The looming hit to the shipbuilding budget from the Navy’s plan to build 12 new nuclear ballistic missile submarines resulted in the cancellation of a fourth flight of Arleigh Burke destroyers (DDG-51) as well as the controversial plan to layup 11 Ticonderoga-class guided missile cruisers (CG-47), the navy’s chief shipbuilder told a congressional panel in a recent hearing on cruiser and destroyer modification.

The shifts in the Navy’s large surface combatants come as the $100 billion bill for the 12 new boomers begin to take up more and more of the Navy’s shipbuilding budget — leaving less and less for other shipbuilding programs.
You know, someone has to decide - which is more important - a new bunch of destroyers we want to replace anyway or 12 new boomers? Ah, well, boomers. Sorry, there, surface Navy, but . . . make do, make do.

Got a scarcity of ships? Well then, make them deploy longer to meet the identified needs. See 8-month deployments become the 'new norm':
“Our deployments are going to be seven-and-a-half, eight months,” said Rear Adm. Brian Luther, whose staff monitors operations tempo for the chief of naval operations. “So what I think you can say is the six-month deployments will be the exception rather than the norm. And the new norm now will be the seven-and-a-half, eight-month deployments.”

Navy officials strenuously objected to that notion of routine, longer deployments two years ago, but cruises continued to creep longer.

Indeed, the strain sailors have felt in the past few years is backed up by newly released Navy data showing the fleet’s deployment pace recently spiked to record levels, a flux littered with long cruises and short turnarounds that is upping wear and tear on sailors and ships.....
Tradeoffs everywhere.

Now, like anyone else who has suffered through a budgeting process, I know that deciding priorities is hard. Very hard. Especially when you are broke. But when you are broke, you need to learn to say "no" to things you can't afford so that you can eventually say "yes" to things that you need.

The key to budgeting is deciding what you what the end result to look like ("Given the obligations we face around the world, we need 340 ships of the following types to be in place by 2020" or "While we can make do with an active army force of 440,000, we need a strong reserve component for activation on short notice and we need to pay to maintain that force.").

Budgeting requires strategic planning and risk assessment to make the numbers involved relate to reality.

Then that budget has to be sold to the funding agent - Congress. Because National Defense is written into the Constitution, it ought to have a higher priority than non-Constitutional wants. On the other hand, someone in Congress should keep the military honest in its planning and risk assessment work.

Sadly, the tradeoff many Congressmen make in the defense budgeting process is making sure their state or district get its share of the pie.

Now, if you wonder that suggested big cuts to a major base in Kentucky have anything to do with the Senate minority leader being from that state and running for re-election, you might be a little cynical. Maybe.