Tuesday, June 5, 2018

Political Correctness and Ritual Purification

Purification has been a constant in the worst 20th century totalitarian crimes, such as gulags, mass murders, and ethnic cleansing. Totalitarian, socialist movements, which aim to supplant religion with belief in the socialist state, reinvent purification rituals and infuse them with violence and intolerance.
Religious purification rituals are, in today's world, mostly not coercive. In the Jewish faith, the ritual bath or mikveh is used by men and women in association with sexual relations and childbirth and as part of the conversion process. The tradition was adopted by Christianity in the ritual of baptism. All religions have processes and rituals of purification, to include the separation of men and women and dietary rules such as kashrut and halal. In Catholicism there are seven sacraments, and several Protestant faiths believe in the cleansing power of the Holy Spirit.
The impulse toward purification is ingrained in the human psyche, and it may have arisen because of tribal relations, both in terms of acceptance of new members and exclusion of those who violate tribal norms. It is difficult to know whether such patterns are instinctive or cultural. In either case purification is common to most cultures, but the left in its interest in radical transformation of society has put greater and more violent emphasis on purification than ever before.
The nineteenth century saw a rejection of religious faith and  an invention of newly violent and punitive varieties of purification. The French Revolution saw the Reign of Terror, in which supporters of the Catholic Church and the monarchy were guillotined. Marx believed that society needed to be purified of capitalists and exploitation and that the purest, most sacred form of economic relation was that of the industrial working class or proletariat managed by its own dictatorship. Wilhelm Marr, the left-wing, German founder of the Anti-Semitic League--and creator of the term "antisemitism"--saw purification as the elimination of Jews. The American eugenicists, who were an important if not dominant element in the Progressive movement, saw purification as the improvement of the genetic stock. Hitler and the Nazis carried forward these left-wing purification faiths.
The concept of purification among left-wing activists has evolved into an even more totalitarian doctrine of political correctness. From a faith in industrialization and proletarian work, through the efforts of Frantz Fanon and 1960s activists, who substituted race for class in their analyses, the left became a movement of identity rather than class politics. Purification became political correctness, the belief that any who oppose the agenda of left-wing identity politics, including those who believe in Christianity, those who oppose government-enforced equality agendas, and those who tell off-color jokes, must be cleansed.
The purification rituals of the American left target Republicans, classical liberals, Christians, and supporters of the Second Amendment, all of whom are banished by media, school district and university committees of public safety.
In the media, the telling of off-color jokes is grounds for immediate banishment. Much as Increase Mather and his followers burned witches to purify their community, so does ABC Television fire comedians for political incorrectness. Some forms of sexual deviance, those forms allied with the American left-wing committees of public safety, are hallowed and pure. Other forms of sexual deviance, which are not so allied, are impure.

Monday, June 4, 2018

How Long Will the Dollar Runup Last?

Below is a picture of the log of the dollar valued in milligrams of gold. The sharp decline in the dollar began around 1971, following the Great Society and around the time of the abolition of the gold standard in 1971. The Great Society and mega-government of the LBJ and Nixon eras and the post-Reagan stock market bubble have been funded with paper money. Before then the dollar was relatively stable. The source of the chart is PricedinGold.com . (See the chart here. The inflection point that worries people holding gold now is the local bottom. My late friend Howard S. Katz wrote about the commodity pendulum  whereby Fed monetary expansion reduces the cost of capital, expands the number of miners, pushes down the cost of gold and other commodities, causes bankruptcy among the miners, which in the end results in a whipsaw and additional sharp leg down in the dollar and up in gold. You can see that in the post-1983 Reagan reflation pattern, which ended with the stock market correction of 2000 and an additional sharp decline in the value of the dollar. The question is whether the massive monetary expansion of 2008-2014 will result in an even greater upturn in the value of the dollar than the 1983-2000 upturn. That is, will the current upturn in the dollar's value continue for 17 years or more, as did the 1983-2000 upturn in the value of the dollar. I don't claim to know the answer, but gold miners have sold at depressed levels for some time.

Sunday, May 27, 2018

Social Security Is a Welfare, Not a Pension, Plan

I'm going to be 64 this week, so I've been thinking about Social Security, a program I've actively opposed since the 1970s but one in which I have been compelled to participate.

Social Security is a welfare and not an insurance plan.  Its advocates claim that it is both, but that is impossible. Insurance is actuarially fair: It spreads the risk of loss fairly across a population. In contrast, welfare plans are redistributive: They compel some to give up wealth to subsidize others.

There are legitimate reasons to support welfare and charity, and there are legitimate reasons to reject political lying. In order to convince Americans to accept Social Security, the Democrats pretended that it is a fair insurance plan. To do so, they created a deception that the taxes into Social Security, FICA, are insurance premiums even though there is no legal connection between FICA and Social Security benefits.

They also created a deception that there is a Social Security fund that is equivalent to a pension fund and that FICA taxes build someone's fund, which is returned in retirement. There is a fund, but it is more in the nature of a cash box than a pension fund. Social Security has always been primarily a pay-as-you-go system. A relatively large excess accumulated because of the temporary Boomer population bubble, but that would have dissipated had the politicians not (legally) looted the fund.

Democratic Party politicians gave voters the impression that FICA is a contribution to an insurance plan and not a regressive income tax.  Many voters also believe that their Social Security benefits equate to their contributions.

Social Security benefits do not equate to contributions. The use of wage bands allocates higher benefits per dollar to lower-wage participants. Disability benefits are more heavily distributed to actuarially identifiable groups, but there is no charge to those groups.

Anyone who does not benefit from salary bands or disability benefits is unlikely to participate in Social Security. Hence, the Democrats had to make the plan authoritarian and compulsory. The authoritarianism and compulsion seal Social Security's status as a welfare rather than an insurance plan.

Insurance is an economically fair method of managing risk, and risk-averse consumers need no compulsion to purchase it. Social security is not economically fair; it is equivalent to any other form of welfare. Hence, there is limited economic motivation, save altruism, for net contributors to participate.

Saturday, May 26, 2018

My Interview on Redeemer Broadcasting

Dan Elmendorf of Olivebridge, NY interviewed me on his Redeemer Broadcasting radio chain, which has seven stations in upstate New York, New Jersey, and Maryland.  The interview will air on May 27, and it is linked here. The stations include WFSO, WNEQ, WYNE, and WXMD. The interview concerns the link between university scientism and political intolerance.