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In Reason, Matt Welch notes that twenty years ago, the world witnessed the fall of the Soviet Union and Communist Europe. Yet the MSM is barely mentioning the anniversary of this momentous occasion and the dramatic effects seen around the world.
On August 23, 1989, officials from the newly reformed and soon-to-be-renamed Communist Party of Hungary ceased policing the country’s militarized border with Austria. Some 13,000 East Germans, many of whom had been vacationing at nearby Lake Balaton, fled across the frontier to the free world. It was the largest breach of the Iron Curtain in a generation, and it kicked off a remarkable chain of events that ended 11 weeks later with the righteous citizen dismantling of the Berlin Wall. …
…In 1988, according to the global liberty watchdog Freedom House, just 36 percent of the world’s 167 independent countries were “free,” 23 percent were “partly free,” and 41 percent were “not free.” By 2008, not only were there 26 additional countries (including such new “free” entities as Croatia, Estonia, Latvia, Lithuania, Serbia, Slovakia, and Slovenia), but the ratios had reversed: 46 percent were “free,” 32 percent were “partly free,” and just 22 percent were “not free.” There were only 69 electoral democracies in 1989; by 2008 their ranks had swelled to 119.
And even these numbers only begin to capture the magnitude of the change. The abject failure of top-down central planning as an economic organizing model had a profound impact even on the few communist governments that survived the ’90s. Vietnam, while maintaining a one-party grip on power, launched radical market reforms in 1990, resulting in some of the world’s highest economic growth in the last two decades. Cuba, economically desperate after the Soviet spigot was cut off, legalized foreign investment and private commerce. And in perhaps the single most dramatic geopolitical story in recent years, the country that most symbolized state repression in 1989 has used capitalism to pull off history’s most successful anti-poverty campaign. Although Chinese market reforms began in the late ’70s, and were temporarily stalled by the Tiananmen Square massacre (which, counterintuitively, emboldened anti-communists in Europe), China’s post-Soviet recognition that private enterprise should trump the state sector helped lift hundreds of millions out of poverty. …
…It was no accident that, in the midst of Washington’s illegal and ill-fated bailout of U.S. automakers, Swedish Enterprise Minister Maud Olofsson, when asked about the fate of struggling Saab, tersely announced, “The Swedish state is not prepared to own car factories.”
When Western Europeans are giving lectures to Americans about the dangers of economic intervention, as they have repeatedly since Barack Obama took office, it’s a good time to take stock of how drastically geopolitical arguments have pivoted during the last two decades. …
Camille Paglia is here. This is the month she responds to reader’s letters.
I have been deeply impressed by the citizen outrage that spilled out into town hall meetings this year. And I remain shocked at the priggish derision of the mainstream media (locked in their urban enclaves) toward those events. This was a moving spectacle of grassroots American democracy in action. Aggrieved voters have a perfect right to shout at their incompetent and irresponsible representatives. American citizens are under no duty whatever to sit in reverent silence to be fed propaganda and half-truths. It is bizarre that liberals who celebrate the unruly demonstrations of our youth would malign or impugn the motivation of today’s protestors with opposing views.
The mainstream media’s failure to honestly cover last month’s mass demonstration in Washington, D.C. was a disgrace. The focus on anti-Obama placards (which were no worse than the rabid anti-LBJ, anti-Reagan or anti-Bush placards of leftist protests), combined with the grotesque attempt to equate criticism of Obama with racism, simply illustrated why the old guard TV networks and major urban daily newspapers are slowly dying. Only a simpleton would believe what they say.
Tony Blankley reaffirms what we already know. Washington is insane and out of control.
Want to hear a real laugher? Despite the current disharmony in politics, there’s one policy on which all of Washington agrees. Republicans and Democrats, House and Senate, president and Congress all agree that after last fall’s financial crisis, the federal government has to more closely regulate the financial industry to protect our economy from risk of systemic financial collapse.
Here’s the joke. As boom- and bust-prone as high finance always has been and remains, the greatest systemic risk to our economy is not Wall Street. It’s the growing federal debt (and weakening dollar) being enacted by those Washington politicians – the ones who want to protect us from Wall Street. …
…And yet, the same Congress and president who want to stop the banks from taking too much risk cannot stop themselves from ever more deficits. Indeed, so intoxicated – nay, hypnotized! – by debt is the current government that it is not even proposing to try to cut back. …
Lawrence Kadish, in the WSJ, explains why something must be done to stop Washington’s spending.
…When the government spends more than its revenue, there is a budget deficit. These deficits are paid for by Washington selling interest bearing Treasury securities. If the government were ever to default on its promise to pay periodic interest payments or to repay the debt at maturity, the United States economy would plunge into a level of chaos that would make the Lehman bankruptcy look like a nonevent. …
…In stark but simple terms, unless Americans are made aware of this financial crisis and demand accountability, the very fabric of our society will be destroyed. Interest rates and interest costs will soar and government revenues will be devoured by interest on the national debt. Eventually, most of what we spend on Social Security, Medicare, education, national defense and much more may have to come from new borrowing, if such funding can be obtained. Left unchecked, this destructive deficit-debt cycle will leave the White House and Congress with either having to default on the national debt or instruct the Treasury to run the printing presses into a policy of hyperinflation.
It is against this background that Washington is now debating whether to create social programs it can’t afford. …
Robert Samuelson writes that projected per capita GDP increases through 2030 will be surpassed by government spending. Legislators are mortgaging future generations’ earning power to the hilt.
…Downward mobility is possible. Expanding health spending would raise taxes (to pay for government insurance), lower take-home pay (to pay for employer-provided insurance) or increase out-of-pocket medical costs. Other drains also loom: higher energy prices to combat global warming; higher taxes to pay for underfunded state and local government pensions and repair aging infrastructure; higher federal taxes to cover deficits and payments to retirees (much of which reflect health spending). The pressures will undermine private living standards and other public services (schools, police, defense).
The young’s future has been heavily mortgaged. Taken together, all these demands might neutralize gains in per capita incomes, especially if the economy’s performance, burdened by higher taxes or budget deficits, deteriorated. One study by Steven Nyce and Sylvester Schieber of Watson Wyatt Worldwide, a consulting firm, examined just health spending. The continuation of present trends would result in “falling wages at the bottom of the earnings spectrum and very slow wage growth on up the earnings distribution. These dismal wage outcomes would persist over at least the next couple of decades.”
To be sure, extra health care enhances our well-being. Some care extends life and improves quality of life. But the connections between being healthy and more health spending are loose. The health of most people reflects personal habits and luck. They get few benefits from high spending. The healthiest 50 percent of Americans account for just 3 percent of annual spending, reports the Kaiser Family Foundation; the sickest 15 percent represent nearly 75 percent. Half of spending goes to those 55 and over, a third to those 65 and over. Any expansion of health care tends to be a transfer from young to old. …
We hear from another liberal today. In The Nation, John Nichols tells the Obama administration to stop complaining about its press coverage. He says the prez has become the “Whiner in Chief.”
…In fact, presidents should go out of their way to accept invites from media that can be expected to poke, prod and pester them. The willingness to take the hits suggests that a commander-in-chief is not afraid to engage with his critics. It also reminds presidents, who tend to be cloistered, that there are a lot of Americans who get their information from sources that do not buy what the White House press office is selling. …
…If the Fox interviewers are absurdly unfair, the American people will respond with appropriate consternation. On the other hand, if they are aggressive and pointed in their challenges, Obama will rise or fall on the quality of his responses. His aides, if they have any faith in their man’s abilities, should bend over backwards to accept some Fox interviews. They should also accept an invite from PBS’ Bill Moyers, who would pose tougher – and, yes, more informed — questions than the Foxbots. …
…As for the Obama administration, whether the grumbling is about Republicans on Fox or bloggers in pajamas, there’s a word for what the president and his aides are doing. That word is “whining.” And nothing — no attack by Glenn Beck, no blogger busting about Guantanamo — does more damage to Obama’s credibility or authority than the sense that a popular president is becoming the whiner-in-chief.
And we have interesting technology news. Paul Taylor, in the Financial Times, reports on Dyson’s new bladeless fan.
First there was the bagless vacuum cleaner, then the towel-less hand dryer: Now James Dyson, the British inventor, has developed a bladeless electric fan which went on sale Tuesday in the US and Australia.
The Dyson Air Multiplier fan – which looks like something straight out of a sci-fi movie – uses advancements in airflow engineering instead of traditional blades to ‘multiply’ air 15 times and push out 119 gallons of smooth and uninterrupted air every second.
As a result, Dyson claims the bladeless fan, which works by forcing a jet of air out of a narrow circular slit and then over an aerofoil-shaped blade, is at least as efficient as its bladed counterpart, more comfortable and much safer. …