Saturday, April 4, 2020

Walter Williams

By Walter E. Williams | April 2, 2020 2:23 PM EDT

I'm not sure whether COVID-19, first identified in Wuhan, China, in the U.S. qualifies as a true disaster. Putting the disease in perspective, we might look at current influenza illnesses. According to Centers for Disease Control estimates, between Oct. 1, 2019, and March 14, 2020, there have been 390,000 to 710,000 hospitalizations as a result of the flu, 38,000,000 to 54,000,000 flu illnesses and 23,000 to 59,000 flu deaths. That's compared with, as of March 27, a total of 85,356 cases of COVID-19 resulting in the deaths of 1,246 people.

But let's agree that COVID-19 is a disaster and ask what the appropriate steps are to deal with it. One of the first observations about any disaster is that the quantity demanded of many goods greatly exceeds the supply. There is a shortage. The natural market response when there is a shortage is for prices to rise. Rising prices produce several beneficial effects. They reduce the incentive for people to hoard while suppliers, motivated by the prospect of higher profits, are incentivized to produce more of the good in short supply.
Thirty-four states and the District of Columbia have anti-price gouging laws that prohibit "excessive and unjustified" increases in prices of essential consumer goods and services during a federal, state or local declared emergency. Price gouging is legally defined as charging 10 to 25% more for something than you charged for it during the month before an emergency. Sellers convicted of price gouging face stiff fines and perhaps prison terms.

But what about hoarding? Often hoarding creates the shortage. In uncertain times, people may purchase three dozen eggs instead of one dozen. They may want to maintain stockpiles of canned goods and buy up large quantities of cleaners, paper towels and toilet paper. This kind of behavior has left some with overflowing freezers, shelves of sanitizers and garages full of toilet paper while their neighbors are left either wanting for the same items or paying what some call "excessive and unjustified" prices.
While it's difficult to get beyond emotions, the fact is that consumers are not forced to buy products for the higher (gouged) price. If they pay, it is likely because they see themselves as being better off acquiring the good than the alternative - keeping their money in their pocket. Higher prices charged have a couple of unappreciated benefits. First, they get people to economize on the use of the good whose price has risen. That is higher prices reduce demand and encourage conservation. That helps with the disaster.
With higher prices, profit-seeking suppliers know that they can make more money by bringing additional quantities of the goods to the market. This increases the supply of goods, which helps to drive prices back down. Anti-price gouging laws disrupt these two very important functions of the marketplace and enhance and prolong a disaster. In other words, in a disaster, we want people to economize their use of goods and services and we want suppliers of these goods and services to produce more. Rising prices encourage these actions. Anti-price gouging laws stymy those incentives and create the pretense that a disaster does not exist.

Some people might reluctantly agree that allowing prices to rise during a disaster helps allocate resources. But they'll complain that's not the intention of greedy sellers who are out to profit. I say, so what? It's not sellers' intentions that count but what their actions accomplish that's important -- namely, getting people to conserve more and suppliers to produce more.
Many of the problems associated with a disaster would be eliminated if people's buying behavior were the same as it was before the disaster. To get people to behave nicely and consider their neighbors is the ultimate challenge. I think rising prices are the best and most dependable way to get people to be considerate of their fellow man.

Monday, March 23, 2020

Walter Williams

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Socialism’s Past


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By Walter E. Williams | March 18, 2020 2:22 PM EDT

Senator Bernie Sanders' call for socialism has resonated among many Americans, particularly young Americans. They've fallen prey to the idea of a paradise here on Earth where things are free and there's little want. But socialists never reveal what turns out to be their true agenda. Let's look at the kind of statements they used to gain power. You'll note that all of their slogans before gaining power bore little relation to the facts after they had power.
Vladimir Lenin promised, "Under socialism all will govern in turn and will soon become accustomed to no one governing." That's Friedrich Engel's prediction about "the withering away of the state." Lenin also promised, "Communism is Soviet power plus electrification," and "No amount of political freedom will satisfy the hungry masses." Lenin's successor, Joseph Stalin, said, "Advance towards socialism cannot but cause the exploiting elements to resist the advance, and the resistance of the exploiters cannot but lead to the inevitable sharpening of the class struggle." He also said, "Gaiety is the most outstanding feature of the Soviet Union," and that "Gratitude is a sickness suffered by dogs."

Then there's China's Chairman Mao Zedong, who said: "Socialism must be developed in China, and the route toward such an end is a democratic revolution, which will enable socialist and communist consolidation over a length of time. It is also important to unite with the middle peasants, and educate them on the failings of capitalism." Mao advised: "A communist must be selfless, with the interests of the masses at heart. He must also possess a largeness of mind, as well as a practical, far-sighted mindset."
Cuban dictator Fidel Castro said: "Capitalism has neither the capacity, nor the morality, nor the ethics to solve the problems of poverty. We must establish a new world order based on justice, on equity, and on peace." He added, "I find capitalism repugnant. It is filthy, it is gross, it is alienating... because it causes war, hypocrisy and competition."
Venezuelan dictator Hugo Chavez promised: "I am going to do my best to try to create a country in which children are not living in poverty, in which kids can go to college, in which old people have health care. Will I succeed? I can't guarantee you that, but I can tell you that from a human point of view it is better to show up than to give up." Adding, "I am convinced that the path to a new, better and possible world is not capitalism, the path is socialism."

His successor Nicolas Maduro said: "Fidel Castro represents the dignity of the South American continent against empires. He's a living legend: an icon of independence and freedom across the continent."
Bernie Sanders' statements are not that different from those of Lenin, Stalin, Castro, Chavez and other tyrants. Sanders says, "Let us wage a moral and political war against the billionaires and corporate leaders, on Wall Street and elsewhere, whose policies and greed are destroying the middle class of America," and "We need to change the power structure in America, we need to end the political oligarchy."
Stalin's campaign didn't mention that he would enact policies that would lead to the slaughter of 62 million people in the Soviet Union between 1917 to 1987. Mao Zedong didn't mention that his People's Republic of China would engage in brutal acts that would lead to the loss of 76 million lives at the hands of the government from 1949 to 1987. The late Professor Rudolph J. Rummel of the University of Hawaii documented this tragedy in his book "Death by Government: Genocide and Mass Murder Since 1900."
Because socialism is a fight against basic human nature, it requires brute force in the attempt to reach its goals. The best warning about socialism comes from Aesop, who said, "Those who voluntarily put power into the hands of a tyrant ... must not wonder if it be at last turned against themselves." We shouldn't ignore Martin Luther King Jr.'s warning, "Never forget that everything Hitler did in Germany was legal."

Wednesday, March 18, 2020

Walter Williams

By Walter E. Williams | March 18, 2020 2:22 PM EDT

Senator Bernie Sanders' call for socialism has resonated among many Americans, particularly young Americans. They've fallen prey to the idea of a paradise here on Earth where things are free and there's little want. But socialists never reveal what turns out to be their true agenda. Let's look at the kind of statements they used to gain power. You'll note that all of their slogans before gaining power bore little relation to the facts after they had power.

Vladimir Lenin promised, "Under socialism all will govern in turn and will soon become accustomed to no one governing." That's Friedrich Engel's prediction about "the withering away of the state." Lenin also promised, "Communism is Soviet power plus electrification," and "No amount of political freedom will satisfy the hungry masses." Lenin's successor, Joseph Stalin, said, "Advance towards socialism cannot but cause the exploiting elements to resist the advance, and the resistance of the exploiters cannot but lead to the inevitable sharpening of the class struggle." He also said, "Gaiety is the most outstanding feature of the Soviet Union," and that "Gratitude is a sickness suffered by dogs."

Then there's China's Chairman Mao Zedong, who said: "Socialism must be developed in China, and the route toward such an end is a democratic revolution, which will enable socialist and communist consolidation over a length of time. It is also important to unite with the middle peasants, and educate them on the failings of capitalism." Mao advised: "A communist must be selfless, with the interests of the masses at heart. He must also possess a largeness of mind, as well as a practical, far-sighted mindset."
Cuban dictator Fidel Castro said: "Capitalism has neither the capacity, nor the morality, nor the ethics to solve the problems of poverty. We must establish a new world order based on justice, on equity, and on peace." He added, "I find capitalism repugnant. It is filthy, it is gross, it is alienating... because it causes war, hypocrisy and competition."
Venezuelan dictator Hugo Chavez promised: "I am going to do my best to try to create a country in which children are not living in poverty, in which kids can go to college, in which old people have health care. Will I succeed? I can't guarantee you that, but I can tell you that from a human point of view it is better to show up than to give up." Adding, "I am convinced that the path to a new, better and possible world is not capitalism, the path is socialism."

His successor Nicolas Maduro said: "Fidel Castro represents the dignity of the South American continent against empires. He's a living legend: an icon of independence and freedom across the continent."
Bernie Sanders' statements are not that different from those of Lenin, Stalin, Castro, Chavez and other tyrants. Sanders says, "Let us wage a moral and political war against the billionaires and corporate leaders, on Wall Street and elsewhere, whose policies and greed are destroying the middle class of America," and "We need to change the power structure in America, we need to end the political oligarchy."
Stalin's campaign didn't mention that he would enact policies that would lead to the slaughter of 62 million people in the Soviet Union between 1917 to 1987. Mao Zedong didn't mention that his People's Republic of China would engage in brutal acts that would lead to the loss of 76 million lives at the hands of the government from 1949 to 1987. The late Professor Rudolph J. Rummel of the University of Hawaii documented this tragedy in his book "Death by Government: Genocide and Mass Murder Since 1900."
Because socialism is a fight against basic human nature, it requires brute force in the attempt to reach its goals. The best warning about socialism comes from Aesop, who said, "Those who voluntarily put power into the hands of a tyrant ... must not wonder if it be at last turned against themselves." We shouldn't ignore Martin Luther King Jr.'s warning, "Never forget that everything Hitler did in Germany was legal."

Friday, March 6, 2020

Walter Williams

By Walter E. Williams | March 4, 2020 1:56 AM EST

Here are a few headlines about an African tragedy: “Africa’s Worst Locust Plague in Decades Threatens Millions” (The Wall Street Journal), “‘Unprecedented’ Locust Invasion Approaches Full-Blown Crisis” (Scientific American), “Somalia Declares Locust Outbreak a ‘National Emergency’” (The National) and “UN Calls for International Action on East Africa Locust Outbreak” (Bloomberg Green). This ongoing tragedy is mostly man-made, according to an analysis by Paul Driessen, who is a senior policy adviser with the Committee for a Constructive Tomorrow (CFACT) and the Center for the Defense of Free Enterprise.

Driessen says that billions of desert locusts have attacked the eastern Africa nations of Kenya, Ethiopia, Eritrea, Djibouti and Somalia. According to the U.N., the locust attack in Kenya is the worst in 70 years and the worst in 25 years for other east African nations. Locusts are destroying crops and threatening tens of millions of Africans with lost livelihoods and starvation. These locust swarms can blanket 460 square miles at a time and consume more than 400 million pounds of vegetation daily. They reproduce fast, too, meaning locust swarms could be 500 times bigger in six months.

Africa’s locust plague is man-made. Economic development organizations and activist nongovernmental organizations have foisted “agroecology” on the poorest nations — an organic-style agriculture. They promote the virtues of peasant farming. So how do these poor farmers fight the locust plague? Driessen says: “Desperate Africans are responding with ‘time-tested’ methods: whistling and shouting loudly, banging on metal buckets, waving blankets and sticks, crushing the bugs perhaps even roasting and eating them, under UN-approved nutrition programs. In Eritrea, they are using ‘more advanced’ methods: hand-held and truck-mounted sprayers. In Kenya, police are firing machine guns and tear gas into the swarms!”
Antonio Guterres of Portugal, the U.N. secretary-general, claimed global warming as a cause of the problem. He said there is a link between climate change and the unprecedented locust crisis plaguing Ethiopia and East Africa. Guterres said: “Warmer seas mean more cyclones generating the perfect breeding ground for locusts. Today the swarms are as big as major cities and it is getting worse by the day.”
Guterres’ suggestion that global warming is the cause of today’s plague is sheer nonsense. Locust infestations have been feared and revered throughout mankind’s history. Devastating locust attacks in Egypt around 1446 B.C. were mentioned in the Book of Exodus in the Bible. “The Iliad” describes locusts taking flight to escape fire. Plagues of locusts are also mentioned in the Quran.
Driessen concludes: “A primary reason this plague of locusts has overwhelmed East Africa — indeed, perhaps THE primary reason — is that the UN Food and Agricultural Organization, other UN agencies and multiple environmentalist NGOs have been extolling and imposing ‘agroecology’ on Africa. This highly politicized ‘movement’ rabidly opposes hybrid seeds, synthetic insecticides and fertilizers, biotechnology, and even mechanized equipment like tractors! Acceptance of its tenets and restrictions has become a condition for poor farmers getting seeds and other assistance, and their countries and local communities getting development loans and food aid.”

By the way, locusts are not only a threat to crops; they threaten people in another way. In early January, a Boeing 737 on final landing approach to Dire Dawa, Ethiopia, found itself in the midst of a massive cloud of locusts swarming above the airport. The insects were sucked into the plane’s engines. Their bodies were splattered across the windshield blinding the pilots to the runway ahead. The Boeing 737 climbed above the swarm. The pilot depressurized the cabin so he could open the side window and reach around to clear the windshield by hand. Diverting to Addis Ababa Bole International Airport, the pilot was able to land the plane safely.

Friday, February 21, 2020

Walter Williams

By Walter E. Williams | February 20, 2020 4:20 PM EST

A recent Pew Research Center survey finds that only half of American adults think colleges and universities are having a positive effect on our nation. The leftward political bias, held by faculty members affiliated with the Democratic Party, at most institutions of higher education explains a lot of that disappointment. Professors Mitchell Langbert and Sean Stevens document this bias in “Partisan Registration and Contributions of Faculty in Flagship Colleges.”

Langbert and Stevens conducted a new study of the political affiliation of 12,372 professors in the two leading private and two leading public colleges in 31 states. For party registration, they found a Democratic to Republican (D:R) ratio of 8.5:1, which varied by rank of institution and region. For donations to political candidates (using the Federal Election Commission database), they found a D:R ratio of 95:1, with only 22 Republican donors, compared with 2,081 Democratic donors.
Several consistent findings have emerged from Langbert and Stevens' study. The ratio of faculty who identify as or are registered as Democratic versus Republican almost always favors the Democratic Party. Democratic professors outnumber their Republican counterparts most in the humanities and social sciences, compared with the natural sciences and engineering. The ratio is 42:1 in anthropology, 27:1 in sociology and 27:1 in English. In the social sciences, Democratic registered faculty outnumber their Republican counterparts the least in economics 3:1. The partisan political slant is most extreme at the most highly rated institutions.

The leftist bias at our colleges and universities has many harmful effects. Let's look at a few. At University of California, Davis, last month, a mathematics professor faced considerable backlash over her opposition to the requirement for faculty “diversity statements.” University of California, San Diego, requires job applicants to admit to the “barriers” preventing women and minorities from full participation in campus life. At American University, a history professor recently wrote a book in which he advocates repealing the Second Amendment. A Rutgers University professor said, “Watching the Iowa Caucus is a sickening display of the over-representation of whiteness.” University of California, Berkeley, professor and former Secretary of Labor Robert Reich chimed in to say: “Think about this: Iowa is 90.7% white. Iowa is now the only state with a lifetime voting ban for people with a felony conviction. Black people make up 4% of Iowa’s population but 26% of the prison population. How is this representative of our electorate?” A Williams College professor said he would advocate for social justice to be included in math textbooks. Students at Wayne State University no longer have to take a single math course to graduate; however, they may soon be required to take a diversity course.
Then there's a question about loyalty to our nation. Charles Lieber, former chairman of the Department of Chemistry and Chemical Biology at Harvard, was arrested earlier this year on accusations that he made a materially false, fictitious and fraudulent statement about work he did for a program run by the Chinese government that seeks to lure American talent to China. He was paid $50,000 a month and up to $158,000 in living expenses for his work, which involved cultivating young teachers and students, according to court documents. According to the Department of Justice, Lieber helped China “cultivate high-level scientific talent in furtherance of China's scientific development, economic prosperity and national security.”

It's not just Harvard professors. Newly found court records reveal that Emory University neuroscientist Li Xiao-Jiang was fired in late 2019 after being charged with lying about his own ties to China. Li was part of the same Chinese program as Lieber. A jury found a University of California, Los Angeles, professor guilty of exporting stolen U.S. military technology to China. Newsweek reported that he was convicted June 26 on 18 federal charges. Meanwhile, NBC reported that federal prosecutors say that University of Texas professor Bo Mao attempted to steal U.S. technology by using his position as a professor to obtain access to protected circuitry and then handing it over to the Chinese telecommunications giant, Huawei.
The true tragedy is that so many Americans are blind to the fact that today's colleges and universities pose a threat on several fronts to the well-being of our nation.

Friday, January 31, 2020

Walter Williams

By Walter E. Williams | January 29, 2020 10:43 PM EST

During President Donald J. Trump's impeachment trial, we'll hear a lot of talk about our rules for governing. One frequent claim is that our nation is a democracy. If we've become a democracy, it would represent a deep betrayal of our founders, who saw democracy as another form of tyranny. In fact, the word democracy appears nowhere in our nation's two most fundamental documents, the Declaration of Independence and the U.S. Constitution. The founders laid the ground rules for a republic as written in the Constitution's Article IV, Section 4, which guarantees “to every State in this Union a Republican Form of Government.”

John Adams captured the essence of the difference between a democracy and republic when he said, “You have rights antecedent to all earthly governments; rights that cannot be repealed or restrained by human laws; rights derived from the Great Legislator of the Universe.” Contrast the framers' vision of a republic with that of a democracy. In a democracy, the majority rules either directly or through its elected representatives. As in a monarchy, the law is whatever the government determines it to be. Laws do not represent reason. They represent power. The restraint is upon the individual instead of the government. Unlike that envisioned under a republican form of government, rights are seen as privileges and permissions that are granted by government and can be rescinded by government.

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Here are a few quotations that demonstrate the contempt that our founders held for a democracy. James Madison, in Federalist Paper No. 10, wrote that in a pure democracy, “there is nothing to check the inducement to sacrifice the weaker party or the obnoxious individual.”
At the 1787 Constitutional Convention, Edmund Randolph said that “in tracing these evils to their origin every man had found it in the turbulence and follies of democracy.” Alexander Hamilton agreed, saying: “We are now forming a republican government. (Liberty) is found not in "the extremes of democracy but in moderate governments. ... If we incline too much to democracy, we shall soon shoot into a monarchy.”
John Adams reminded us: “Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There was never a democracy yet that did not commit suicide.”
John Marshall, the highly respected fourth chief justice of the U.S. Supreme Court observed, “Between a balanced republic and a democracy, the difference is like that between order and chaos.”
Thomas Paine said, “A Democracy is the vilest form of Government there is.”
The framers gave us a Constitution replete with undemocratic mechanisms. One constitutional provision that has come in for recent criticism is the Electoral College. In their wisdom, the framers gave us the Electoral College as a means of deciding presidential elections. That means heavily populated states can't run roughshod over small, less-populated states. 
Were we to choose the president and vice president under a popular vote, the outcome of presidential races would always be decided by a few highly populated states, namely California, Texas, Florida, New York, Illinois and Pennsylvania, which contain 134.3 million people, or 41% of our population. Presidential candidates could safely ignore the interests of the citizens of Wyoming, Alaska, Vermont, North Dakota, South Dakota, Montana and Delaware. Why? They have only 5.58 million Americans, or 1.7% of the U.S. population. We would no longer be a government “of the people.” Instead, our government would be put in power by and accountable to the leaders and citizens of a few highly populated states. It would be the kind of tyranny the framers feared.

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It's Congress that poses the greatest threat to our liberties. The framers’ distrust is seen in the negative language of our Bill of Rights such as: Congress "shall not abridge, infringe, deny, disparage, and shall not be violated, nor be denied." When we die and if at our next destination we see anything like a Bill of Rights, we know that we're in hell because a Bill of Rights in heaven would suggest that God couldn't be trusted. 

Thursday, January 16, 2020

Walter Williams

By Walter E. Williams | January 15, 2020 5:07 PM EST

Criminal activity imposes huge costs on black residents in low-income neighborhoods of cities such as Chicago, Baltimore, Detroit, St. Louis, Philadelphia and many others. Thousands of black Americans were murdered in 2019. Over 90% of the time, the perpetrator was also black. Leftists and social justice warriors charge that what blacks have to fear most is being shot and killed by police, but the numbers don't add up. For several years, The Washington Post has been documenting police shootings in America. Last year, 933 people were shot and killed by police. Twenty-three percent (212) of people shot and killed were black; 35% (331) were white; 16% (155) were Hispanic and 201 were of other or unknown races. The high homicide rate within the black community doesn't begin to tell the full tragedy.

Crime imposes a hefty tax on people who can least afford it. They are the law-abiding residents of black neighborhoods. Residents must bear the time cost and other costs of having to shop outside of their neighborhoods. Supermarkets that are abundant in low-crime neighborhoods are absent or scarce in high-crime, low-income neighborhoods. Because of the paucity of supermarkets and other big-box stores in these neighborhoods, some "experts" and academicians have labeled them as “food deserts.” That's the ridiculous suggestion that white supermarket merchants and big-box store owners don't like green dollars coming out of black hands. The true villains of the piece are the criminals who make some businesses unprofitable. By the way, these are equal opportunity criminals. They will victimize a black-owned business just as they would victimize a white-owned business. The high crime rates in many black neighborhoods have the effect of outlawing economic growth and opportunities.

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In low-crime neighborhoods, FedEx, UPS and other delivery companies routinely leave packages containing valuable merchandise on a doorstep if no one is home. That saves the expense of redelivery and saves recipients the expense of having to go pick up the packages. In high-crime neighborhoods, delivery companies leaving packages at the door or supermarkets leaving goods outside unattended would be equivalent to economic suicide. Fearing robberies, taxi drivers, including black drivers, often refuse to accept telephone calls for home pickups and frequently pass prospective black customers who hail them on the street. Plus, there's the insult associated with not being able to receive pizzas or other deliveries on the same terms as people in other neighborhoods.
Another often-overlooked impact of crime is lower property values. Homes that wouldn't fetch $10,000, $20,000 or $40,000 suddenly fetch hundreds of thousands when large numbers of middle- and upper-income people purchase formerly run-down properties and fix them up. This is called gentrification, where wealthier, predominantly white, people bid higher rental prices thus forcing out low-income residents. As a result of gentrification, there is greater police protection and other neighborhood amenities increase.
Many make the erroneous assumption that black people don't care about crime. But black people strongly disapprove of the day-to-day violence that's all too common in their communities. What compounds that problem is a deep mistrust of police in poor black neighborhoods. This distrust, along with fear of reprisals by black criminals, causes an atmosphere of noncooperation with the police. It creates the “stop snitching” principle. This principle of snitches being worse than criminals themselves only exacerbates the crime problem in black communities by giving aid and comfort to the true enemies of the community — those who prey on the community and have little fear of being brought to justice. In some cities, less than 10% of murderers are ever charged.

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For decades, the problems of blacks could be laid at the feet of racial discrimination. Our ancestors started a civil rights struggle and won. Today, the most devastating problems of blacks are entirely self-inflicted such as high illegitimacy, family breakdown and unsafe communities. These problems have little to do with civil rights. But as long as blacks buy into the notion that white racism is the source of their problems, the solutions will be elusive forever