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From The Atlantic, an explication of economist Paul Romer’s idea to build modern-day Hong Kong-like enclaves to promote development in poverty-stricken counties:

When Romer explains charter cities, he likes to invoke Hong Kong. For much of the 20th century, Hong Kong’s economy left mainland China’s in the dust, proving that enlightened rules can make a world of difference. By an accident of history, Hong Kong essentially had its own charter—a set of laws and institutions imposed by its British colonial overseers—and the charter served as a magnet for go-getters. At a time when much of East Asia was ruled by nationalist or Communist strongmen, Hong Kong’s colonial authorities put in place low taxes, minimal regulation, and legal protections for property rights and contracts; between 1913 and 1980, the city’s inflation-adjusted output per person jumped more than eightfold, making the average Hong Kong resident 10 times as rich as the average mainland Chinese, and about four-fifths as rich as the average Briton. Then, beginning around 1980, Hong Kong’s example inspired the mainland’s rulers to create copycat enclaves. Starting in Shenzhen City, adjacent to Hong Kong, and then curling west and north around the Pacific shore, China created a series of special economic zones (more…)

Do you want to hear some really bad news? I mean dauntingly bad, horrifyingly bad, news so bad you could spend days or even weeks ruminating on it, worrying about it, desperately praying for it not to be true.

Are you ready? Here goes:

While you might have heard that the national debt in the United States is approaching $14 trillion, the actual unfunded liability of all American governments exceeds $125 trillion.

Stupefying, ain’t it?

And stupefying is precisely the right word, since news like that brings out the stupid in people. Nothing enervates the chicken in Chicken Little like a weather report predicting falling skies. If you find yourself in the business of selling advertising or shrieking treacly books or quack nostrums to Chicken Little, it behooves you to hire yourself some weathermen. Worked for Al Gore, didn’t it?

Am I being cynical? Not so much. Mainly I’m just being old.

I am an old libertarian. Not an old man, I hope, though of course I’m not getting any younger. But I have been a very radically committed libertarian since I was 19 years old, and an anarcho-capitalist since I was 24. I have been swimming in this ocean for 30 years, where many folks all (more…)

Do you want something to cheer about? Hayek’s The Road to Serfdom is the number one best-seller at Amazon.com right now:

It gets better. The Federalist Papers is at number fourteen.

I think a lot of people are annoyed that the free country they still remember clearly has somehow vanished right from under their noses. It’s very inspiring to see them searching for it so assiduously. My read is that this is very different from 1994…

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Reasons to be cheerful, part zero: The ground we stand upon is firm and the lever of the human mind grows ever stronger.

I need to take this someplace else. I am madly off-topic here more often than not, this for the past couple of years. I think I may be in the third act of this spectacle of ideas I have made of my life, and I can’t even say, yet, if it’s a farce in three acts or a tragedy in five. I would prefer an epiphany, to say the truth, a symphony, a grand opera composed of nothing but the simplest and most obvious of abstractions, an idiot’s guide to what every last idiot among us has always known forever, has never once doubted, and has always, always betrayed — until now.

But that’s why I’m cheerful, I think, despite everything. There is still so much time left to us, amidst the crush of on-rushing events. I am thrice lucky, I know it: I can see and I can understand what I am seeing. I can think and I can transcribe my thoughts. And I live in a time when the thoughts of everyone in human history who ever thought (more…)

Countries that pursue policies of economic freedom have rich populations. Countries that obstruct free enterprise have poor populations. The relative wealth or poverty of a given population is strongly correlated with and can be readily predicted from the level of economic oppression in that political economy. This is easily understood from Austrian and Classical economic theory, but it’s stunning to see how relentlessly the theory is borne out in the real-life experiences of the countries of the earth:

This map is from The Heritage Foundation’s Index of Economic Freedom.

Interestingly, relative wealth and poverty are also very fairly correlated with perceptions of the local population of the integrity or corruption of government officials.

This map is from Transparency International’s Corruption Perceptions Index.

What’s especially striking is to look at the two maps together: Government corruption is correlated with economic oppression. This is not really surprising, but it seems to tell us everything we need to know about wealth and poverty: The closer a given country is to being a slave-state, the closer to starvation the people of that country will be.

Theodore Dalrymple reflects on how the imposition of a Marxist redistributionist policy impoverishes what had been a self-sustaining economy:

I next spent a few years (1983 to 1986) in Tanzania, a country that presented another experiment in treating poverty as a matter of maldistribution. Julius Nyerere, the first—and, until then, the only—president, had been in charge for more than 20 years. His honorific, Mwalimu—Teacher—symbolized his relation to his country and his people. He had become a Fabian socialist at the University of Edinburgh, and a more red-blooded one (according to his former ally and foreign minister, Oscar Kambona, who fell out with him over the imposition of a one-party socialist state) after receiving a delirious, orchestrated reception in Mao’s China.

One can say a number of things in Nyerere’s favor, at least by the standards of postindependence African leaders. He was not a tribalist who awarded all the plum jobs to his own kind. He was not a particularly sanguinary dictator, though he did not hesitate to imprison his opponents. Nor was he spectacularly corrupt in the manner of, say, Bongo of Gabon or Moi of Kenya. He was outwardly charming and modest and must have been one of the only people to (more…)

In a comment to my post on the NAR’s most recent attempts to rape the taxpayers, Michael Cook set forth a number of subtle economic fallacies. I am not picking on Michael. He is simply repeating Marxist propaganda that is ubiquitous, more’s the pity. But I thought it were well to take these claims apart, to illustrate how these kinds of fallacious arguments are used to frustrate human liberty. I’m taking this to a separate post because the comments thread on the original post is already wildly off topic.

So: Start here, quoting from Michael’s comment:

The very capitalist machine everyone here loves was bolstered by the use of slaves.

This is simply false, not alone simply by definition. The first word in “free enterprise” is “free.” Transactions in a free economy are always mutually-voluntary. If someone is being coerced, what is occurring is a crime, not an honest trade. Every modern economy we can speak of is in some way a form of socialism — a criminal conspiracy harnessing the power of the state to advantage certain people at the expense of the others. Slavery is of a piece with this pattern, although it predates modern economies by many millennia. Moreover, it was (more…)

A Ramblin’ Gamblin’ Willie story

“I married myself a quiet man. He told me so himself, many times. When he was drunk, he’d shout it to the world.”

Mary Canary said that. She says stuff like that just to make sure no one’s listening. And no one on the bus was, no one except me.

And Mary Canary is not her real name. It’s Maria Carnase, and I had to work on her quite a while to get that out of her. She’s not quite homeless, not quite penniless, not quite elderly and only mildly odorous. She’s bone thin and desiccated, and her flowered tent dress fit her like a tent. Her hair is not quite white and she wears it under a net. She had on cheap sneakers and compression hose bunched up at the ankles; seemingly, there was no flesh on her legs for the hose to compress. She has a bus pass and a mission. The bus pass is paid for by the taxpayers, but the mission is all her own.

“I like the sound of a pedal steel guitar. It makes me think of a cat curling up for an ear-scratching.”

A college girl with a black ponytail stared hard at her (more…)

John Stossel on the phractured physics of “green” energy:

Maybe the electric car is the next big thing?

“Electric cars are the next big thing, and they always will be.”

There have been impressive headlines about electric cars from my brilliant colleagues in the media. The Washington Post said, “Prices on electric cars will continue to drop until they’re within reach of the average family.”

That was in 1915.

In 1959, The New York Times said, “Electric is the car of the tomorrow.”

In 1979, The Washington Post said, “GM has an electric car breakthrough in batteries, now makes them commercially practical.”

I’m still waiting.

“The problem is very simple,” Bryce said. “It’s not political will. It’s simple physics. Gasoline has 80 times the energy density of the best lithium ion batteries. There’s no conspiracy here of big oil or big auto. It’s a conspiracy of physics.”

Yes, Stossel is pop-science. You can only go so far with him. But this may be the only article you will see that explains why so many of the highly-touted environmentaloid “solutions” are pipe-dreams, based in wishful thinking and a math education that foundered on the shoals of Algebra. Read the whole thing.