American Elephants

A Perpetual Motion Machine called Innovation by The Elephant's Child

British columnist Matt Ridley is always worth reading, but yesterday’s column was special.  He wrote:

When you think about it, what has happened to human society in the last 300 years is pretty weird. After trundling along with horses and sailboats, slaves and swords, for millennia, we suddenly got steam engines and search engines, and planes and cars and electricity and computers and social media and DNA sequences. We gave ourselves a perpetual motion machine called innovation. The more we innovated, the more innovation became possible.

It’s by far the biggest story of the last three centuries—the main cause of the decline of extreme poverty to unprecedented levels—yet we know curiously little about why it happened, let alone when and where and how it can be made to continue. It certainly did not start as a result of deliberate policy. Even today, beyond throwing money at scientists in the hope they might start businesses, and subsidies at businesses in the hope they might deliver products, we don’t have much of an idea how to encourage innovation at the political level.

What’s more, free-market economists have been in a special muddle about innovation for a long time. The economics profession spent a couple of centuries assuming that markets tend towards equilibria, through the invisible hand. Hence John Stuart Mill and John Maynard Keynes and pretty well everybody else in between assumed that we would see diminishing returns come to dominate human endeavour. But instead we experienced increasing returns, accelerating invention. As the author David Warsh put it in his book Knowledge and the Wealth of Nations (2006) some years ago, economists obsessed about Adam Smith’s invisible hand but forgot about his pin factory, where specialisation led to innovation.

One of my favorite histories is by John Steele Gordon, who deals with just that: the “Epic History of American Economic Power” in An Empire of Wealth. It’s a great read, and I recommend it enthusiastically. We are seeing all sorts of articles about the horrors of Socialism in the wake of Bernie Sanders, but this one deals with the other part: why Capitalism works and that a state that advances and encourages innovation is a result of a free people and an open society.

How some people can fail to understand those simple facts is apparently due to the failure of our schools and our colleges and universities. Many of our states do not require basic civics and history for graduation, a situation that drastically needs attention. Our colleges and universities are staffed to a significant extent with those who went for graduate degrees as a way to escape the draft for the Vietnamese War. You can hear that echo in banned or protested speakers on campus, and campus demonstrations.

Why Do the Democrats Hate Trump So Much? by The Elephant's Child

Bernie seems to be the leading Democrat candidate at present, and the Democrats are horrified. The object of the entire Democrat campaign is to get rid of Donald Trump, and they don’t think Bernie has much of a chance to defeat him. The Democrats really, really hate Donald Trump. But the commentary out there is interesting.

The Manhattan Contrarian said flatly:”If You Can’t Articulate A Limiting Principle On Government Expansion, You Get Bernie Sanders.” That was his headline, and he added:

Well, if you’re the party of free stuff, why shouldn’t the guy who offers the most free stuff win? Bernie is clearly willing to outbid all of his rivals in the free stuff auction. What makes you think anybody can beat him by just bidding less?

Alexandria Ocasio-Cortez announced her endorsement for the 2020 presidential election. She called for “publicly owned and run health care and education so that we have more freedom over our lives than the private sector provides.”

Brian Riedl, writing in City Journal on October 15, 2019 commiserated with Bernie’s heart attack, and said as long as he remains in the race, it’s worth taking his policy ideas seriously, since he has unveiled expensive new spending proposals on a near-weekly basis. All told, Sanders’s current plans would cost as much as $97.5 trillion over the next decade, and total government spending at all levels would surge to as high as 70 percent of gross domestic product. Approximately half of the American workforce would be employed by the government. The ten-year budget deficit would approach $90 trillion, with average annual deficits exceeding 30 percent of GDP.

And Victor Davis Hanson said yesterday, “Universities Breed Anger, Ignorance, and Ingratitude” “In turning out woke and broke graduates, they have a lot to answer for.”

When you get history and economics all mixed up with “social justice”, you are creating a major problem. I reject the idea that there is any such thing as “social justice” and if you go off chasing it, you are never going to arrive at a destination. It’s nice to dream of a world where nobody is poor, everybody has what they want and need, but that’s not how it works. Life is hard, bad stuff happens, there are accidents, illness, deaths, wars, family troubles, and you have to learn to cope. You don’t succeed by waiting for somebody else to fix things for you. The joy and the pride of arriving at a goal make the coping all worthwhile. We currently have an economy where most anyone that wants a job can find one. The rising is up to you.

%d bloggers like this: