Tag Archives: Election

Accepting false pretenses: The real political problem

       It is often asked how we can possibly change the nature of politics in the U.S. Ironically, this question often directly precedes or follows a party-centric idealistic rant premised on the idea that one party or the other represents the solution. And this, in fact, is where the problem lies. But in all fairness it is not the existence of parties which is inherently bad, just people’s blind adherence to them that is dangerous.

     People use party identification to predict how a politician might act. This is a good thing and can be an accurate tool for quickly measuring a politician’s central platform. The problem is, people allow the parties themselves to define what that means; in this sense, party affiliation is a poor indicator. A proper analogy would be if a father were to allow his daughter’s date to effectively characterize himself as a celibate angel who would never have physical intentions…and then believe it. In the analogy, it is not surprising the date is trying to sell that garbage, only that the father buys it. The same is true in politics. I am never shocked that politicians are disingenuous; I am instead constantly shocked that we continue to fall for it.

     Two good examples are this:

a) Republicans constantly are declaring how Republican politicians like the free market and

b) Democrats continue to believe that Democratic politicians wish to help the “disadvantaged.”

In both examples, voters who blindly follow those assumptions ignore two important potential implications:

1) Both are ill-suited at accomplishing their positions or

2) They are spurious declarations of ideology.

      Let us assume the least offensive choice (#1) is true, then why do we keep voting for idiots who cannot, after many decades, even begin to accomplish their task. It is not as if these people have spared any cost in the “pursuit” of these objectives; so they have clearly availed themselves as incapable of accomplishing anything [perhaps this is why slip-on shoes are in such high demand in Washington?]. However, I am resistant to accept the explanation that they are just stupid which requires many more moving parts to be accurate.

       Next, let us address option #2, that the political parties are instead not being genuine about their intentions. This would better explain why seemingly intelligent people continuously act in ways contrary to their stated intentions. Employing Occam’s Razor would tell us that number 2 is the correct reason for politicians saying one thing and doing another.

     The logical next question to ask is why would they do this? Well, most simply put, because it works. The parties spew forth hyperbole, and the electorate laps it up. And when a voter is confronted with the fact that their party’s policies have been utter failures at achieving their stated objectives, the trained response is that it is the other party’s fault. This is evidenced by the parties constantly trying to redefine each other; they do not see earning voters through merit as a primary concern, instead they see affecting the others image as a more effective method of winning elections through voter attrition. Even those people who are self-proclaimed independents often buy into the party mantras. The sad reality of political failures is simple: if we (the voters) want to see what is wrong with American politics we would better benefit from using a mirror than a microscope.

Unions are cartels that should be subject to anti-trust laws

        Most people are familiar with the general idea of anti-trust laws and proceedings; but, as with many things the devil is in the details. A major problem that underscores this greater issue is a lack of understanding of the exact nature of labor. People often think of labor and capital as having a protagonist/antagonist relationship and this misconception is quite profitable to labor leaders and their political allies. However, the pervasiveness of this misconception does great harm to those who directly control labor—individuals; particularly those individuals who have the lowest skill levels which are most often the poor, minorities, and young people. People see laborers as having no leverage in the business relationship and thus assign laborers a more limited value.

        First of all, there are two primary factors of production: labor and capital. Labor is the efforts of people in producing goods and services for trade. Capital describes the accumulation of machinery and tools (often thought of monetarily) that are used in the production process. Neither factor holds a distinctive advantage over the other as a general rule, but differing circumstances can tip the scales of control to one or the other.

        This can be seen throughout history and even today. For example, there was a period in time when labor was so highly demanded (thus, labor held the advantage) that employers would wait outside of prisons to hire people as they were released. In the modern day, people who hold strong skills in computer programming or web design (etc.) can command significant salaries and benefits. These are not the instances that the media and politicians focus on; instead they choose to highlight the false narrative of the minimum wage and the “plight” of entry-level, low wage workers. This misses the reality of the damage done by labor unions by creating a sleight of hand, parlor trick.

         We—rightly—prosecute the collusion (cartelization) of business (owners of capital) if they join together to fix prices or production levels in a manner to extract much higher profits from the market than the competitive (more often the monopolistically competitive) value of their outputs. However, when it comes to labor unions, who collude openly on a national scale and across industry sectors (e.g. SEIU and AFL-CIO), we see that not as being an extortion of the consumer as we do in the capital example. Instead, we see labor unions—simply groups of individuals colluding to monopolize and thus increase their market power artificially—as merely protecting their members from an otherwise predatory institution. This is not the reality when it comes to mega-unions. The reality is that they are utilizing their control of one of the two primary factors of production in the same way businesses do when they collude; therefore consumers pay significantly higher prices which would resemble monopoly level pricing.

     Furthermore, just as other monopolies who do not enjoy regulatory protection by government which controls market entry, they induce others to enter the market and capture their market share by offering superior products at lower prices [note: natural monopolies that do not rely on regulatory control of market entry do exist; however, they are quite rare]. The effects of the monopoly, outside of government intervention, are often limited in their scope. We can see the results of this in the automobile market where, as trade restrictions relaxed (which is good for the US consumer), the foreign car producers began to rapidly grow against the domestic ones which were plagued by higher than natural equilibrium labor costs and diminishing relative quality (as a way to fight costs) versus the competition. The eventual result was that all those people who owned and controlled the labor factor of production in the car market and enjoyed higher than appropriate levels of profits (pay and benefits) ended up dropping their long run incomes to zero as new competitors entered and captured market share. From a labor perspective, these new market participants would include southern state workers who drew in production facilities as well as foreign workers (via outsourcing).

      Additionally, areas densely populated with people who enjoyed this monopoly level pricing for their labors collapsed as the monopoly structure of their labor force declined. Their government, bloated on the excess of extracting unrealistic levels of profits in their labor force from other areas in the country, could not sustain the drop in tax revenues and have essentially become ghost towns (Detroit’s population in 1950 was 1.8 million and is approximately 700,000 today). Also, the greater than equilibrium labor cost overall in markets like Detroit due to unionization of the auto industry crowded out other industries making Detroit perilously dependent on one industry.

        The real long-run winners in the equation have been the labor unions themselves (not their members) and the politicians who have enjoyed control of their votes and contributions for many years. The losers in the short run were workers that did not gain entry into those industries and, in the long run, all the people of areas once dominated by big labor production. People often say that unions were once a good thing and that somehow is supposed to justify the existence of mega union entities; however, I find that logic to be severely flawed. Instead, I argue that unions are still positive things when they are constrained to plant (or perhaps firm) level entities. This reduces large scale collusion while granting the owners of labor a more even position in the negotiating process without giving them unfettered control of the production of certain markets completely. Owners of a particular firm control all of the capital for that firm, but no single laborer controls all of the labor for a firm; therefore, an alliance of firm level labor can be positive without being punitive to consumers or damaging to the industry sector. Also, compulsory inclusion in unions should not exist because this removes the competitive nature of markets which allow a fair blend of profits to capital and labor simultaneously, while ensuring maximum marginal value to the consumers.

What is the Electoral College…and is it a good thing?

      Since the election I have had several requests to do a blog about what the Electoral College (EC) is and what purpose it serves.  The question is reminiscent of the same question that was asked following the 2000 election when the Electoral College and the “popular vote” split between Bush and Gore.  You may ask why I put the popular vote in quotations, and that is an easy question to answer:  there is no such thing as a constitutional popular vote for president and as such it is a measureable myth of sorts.

       Obviously most people know that the Electoral College is outlined in the Constitution (Article II, Section 1); however, it is 1) the value of the Electoral College and 2) how it came to be which causes confusion and creates a bit of disinterest in the electoral process.  First, I will tackle the most common questions surrounding its value in today’s world.  Second, I will give some background as to why the Framers of the Constitution felt it necessary for the resistance of tyranny.

Question #1:  Where does the number come from?

      There are 538 electors (half plus one equals 270 to win) which make up the EC and the number of those electors represents the composition of Congress; one for each of the 435 voting members of the House and one for each of the 100 voting members of the Senate.  I know you are beginning to question my math skills, but do not be concerned!  The additionally 3 electors represent the non-voting “representatives” from the District of Columbia.

Questions #2:  Why do some states have more this time than 2008?

      Great question!  The answer:  reapportionment.  Reapportionment takes place after every census based on the changes in population from state to state (and district to district).  For example, from 2008 to 2012 Ohio and New York lost 2 electoral votes each and Texas gained 4 electoral votes.  As population changes so does representation in the House and the electoral allocation.

Questions #3:  Since the “popular vote” does not count, why bother voting?

        Well, this is where I hear people showing concern as to whether to vote or not.  The statewide popular vote does determine the electoral allocation.  So, yes you should vote…but only if you take enough time to care and become at least moderately informed.  [Quick Tip:  If you do not know the names of both the current president and vice-president, do your neighbors, children, and fellow citizens a favor and keep it at the house; you can always vote on American Idol instead!!!]

       Now, this is where the water really muddies and we must begin transitioning into the purpose of the EC.  Our Constitution was designed, regardless of what your high school teacher or friendly neighborhood lefty may have told you, to enumerate (grant) certain specific powers to the government of the United States; the rest of which would be “reserved to the States respectively, or to the people (Amendment 10)…Seriously, it says it in there and was written by the same guy who designed the framework of the Constitution (James Madison).  In a nut shell, this means that the states maintain a level of sovereignty and this is the first step into understanding why exactly the EC is important:  (semi) sovereign states choose presidents, not the general public.

       In fact, the EC was an elaborately developed strategy to avoid a popular vote because the only thing the Framers may have feared more than the tyranny of a king was a tyranny of the majority.  Actually, the whole idea of even having a president was quite contentious, but I will refrain from that discussion for the purpose of keeping it as short as possible.  But what of all the cries of majority rule and we must follow the will of the people(?)…well, to state it simply, that is a bunch of crap.  Consider the words of Madison (Oct. 5, 1786) concerning majority rule:  “In fact it is only reestablishing under another name and a more specious form, force as the measure of right.”  Additionally, Madison (Oct. 17, 1788) warns that government’s oppressive capacity does not come from “acts of Government contrary to the sense of its constituents, but from acts in which the Government is the mere instrument of the major number of the constituents.”  Majority rule was anything but a well-respected concept then, as it should be now.

      However, if you are still not convinced that majority rule (which always results in the minority being taken advantage of, or worse) is a bad thing let me remind you of a few incidents in the history of both the US and the world in which the much-fabled majority ruled:  Jim Crow and slavery in America and the Jewish Holocaust orchestrated by that hero of democracy, Adolf Hitler.   Still want to order up a heaping helping of good ole democracy?  [Note:  that is why we are guaranteed a republican form of government in the Constitution and the term democracy does not show up even once.]

     There were other alternate ideas for voting the president into office, one was a vote by the House of Representatives (similar to the parliamentary system of England) and it was even kicked around that the Senate should elect the president.  These ideas were unsuccessful because they placed into peril the concept of the separation of powers by putting the legislature in control of the executive branch; and, seeing how much politicians try to bribe the people to get into office, it is hard to imagine the hijinks that would have occurred in that format.

        Because of those reasons (primarily) the EC was born as a system for which states chose the president, but not necessarily through any direct vote of the people.  [Fun Fact:  each state retains the power to determine how electors will be selected; so, if the states decided to let the state legislatures pick the electors, they could and the citizens of the state would no longer be able to vote for the president (depending on the structure of the state constitutions, of course).]  People often point to the limited campaigning in the several swing states as a solid justification for the popular vote by noting that more states would be important; however, that is naïve at best.  Instead of campaigns in the swing states, politicians would merely double down on large population centers in political strongholds to boost their margins in those areas in an attempt to outpace the popular vote of any competitors.  Thus, states like California, Texas, New York, Florida, and Illinois would become major players in presidential politics and it would seem profoundly imprudent to give California any further say in the president than they already have…besides they are too busy screwing up their own state to need any more responsibilities.

       The Electoral College seems to be wrapped in a shroud of mystery, but is a relatively simple and very relevant creation of our Framers.  The problem that comes in explaining it is that it requires the acknowledgement that majority rule is a profoundly poor system (a truth that the very designers of the system knew well).  Our Framers were not some obscure set of hick farmers with a lack of understanding of the principles of an organized society (as is sometimes suggested); instead they were a very highly educated, well-studied group of political scholars.  If you doubt this I would suggest you visit the Library of Congress and review the display of Jefferson’s personal library; it is full of volumes of political theory from Plato to John Locke (in French, English, and Latin).  They studied and understood political history and what had led to the failures of republics and the rapid erosion of liberty that plagued democracies throughout history; therefore, it is no wonder that liberty in America has survived many assaults and continues beyond the accepted life-expectancy of a free society.  We have already irreparably damaged a part of our Constitutional structure through the perversion that is the 17th Amendment (subject for another blog); and it is uncertain how many more assaults, by those who wish to impose the will of the majority through the police power of government, that our republic may be able to survive.