Rick Jones

Rick Jones

Capitalism based on speculation is immoral

When this republic was founded, there was a widespread distrust of finance and banking and a hatred of speculation, especially among farmers. These attitudes reflected their Christianity. Historically Christianity had opposed charging interest and other features of capitalism.

Many felt it was a biblical commandment to work. (Genesis 3:19) The biblical notion of justness had a sense of proportionality as "an eye for an eye and a tooth for a tooth." The idea that a person could be become fabulously wealthy without visible signs of work was unacceptable to them. This was not politics of envy; it was a sense of justice.

Avoid the ruts of the past

At Sam Weller's bookstore, in the most low and deeply discounted area, I found a hard cover book for $1: "The Trouble With Money: A Prescription for America's Financial Fever," by William Greider. It was published in 1989 -- over 22 years ago. Yet these words on the back cover might make one think it was just published: "The conservative era has created a ... system that liberates banking and finance for new adventures in risk taking, yet assures the players that if something goes terribly wrong and they sustain great losses, the U.S. government will step in and pick up the tab. The process of picking up the tab is under way -- and on an awesome scale."

Government is not responsible for wrong incentives

Republican candidate Herman Cain says the unemployed should blame themselves for their plight. (One wonders if Cain would have said that to the one fourth of the nation who were unemployed during the height of the Great Depression.) Current Republican ideology wants to blame economic problems on government. Therefore, the other Republican candidates imply the unemployed might blame the president for their plight -- although they absurdly state that government can't create jobs.

Yet the primary cause of our economic meltdown was not government. (Those who see the source of the problem as Fanny Mae and Freddie Mac should recall that those two actually lost market share to their private-sector competitors during the height of the bubble.) Nor was the cause individual law breaking such as Bernie Madoff-type Ponzi schemes -- that is why so few have gone or will ever go to prison. Rather, the primary cause of the housing bubble and the economic meltdown was the perverse financial incentives which encouraged people to engage in activities that were harmful to society as a whole.

Adam Smith's insights on class

"Whenever there is great property, there is great inequality. For one very rich man there must be at least five hundred poor, and the affluence of the few supposes the indigence of the many. ... The acquisition of valuable and extensive property, therefore necessarily requires the establishment of civil government." Adam Smith, -- Book V, Wealth of Nations

Recently, President Obama has been accused of promoting class war. But the conservative free market fundamentalism, which entered the political stage in the late 1970s and early 1980s, is described by many as a one-sided class war, waged by those on top. Certainly, the data shows that even by the end of the 1980s, a large share of the income gains were going to the wealthiest. That trend has continued and intensified and has been much more pronounced in the U.S. than other nations. This redistribution of wealth has occurred because astronomical sums of money have pushed U.S. politics to the right. Both Rick Perry's verbal assaults on Social Security -- a centerpiece of the New Deal -- and Herman Cain's very regressive tax schemes can be seen as a continuation of the one-sided class warfare waged against the poorer classes.

Unstable capitalism has been propped up

It is possible to lay a large share of the blame for our economic problems on President George W. Bush. When Bush was leaving office, Nobel Prize-winning economist Joseph Stiglitz and Harvard Professor Linda Bilmes did an article "The Ten Trillion Dollar Hangover: Paying the Price for Eight Years of Bush," arguing that Bush had added more to our debt than all previous presidents combined and his mountains of debt would crimp President Barack Obama's ability to deliver the kind of change he promised.

Several months after Obama's presidency began David Leonhardt, New York Times Pulitzer Prize-winning columnist, analyzed the deficits. He noted that the Congressional Budget Office had predicted annual surpluses of over $800 billion for 2009-2012 as the Bush presidency began. He put the spending into four categories: Recession costs; Bush policies; Bush policies which Obama extended; and Obama policies. He found 37 percent was caused by the recession. By far Obama's biggest contribution to the deficit was to continue the Bush wars and tax cuts. But 7 percent was caused by the Obama stimulus and 3 percent was the result of Obama's spending on health care, education and other spending.

Unions helped create the middle class

For several decades, it has been fashionable and politically correct to bash labor unions. Whereas they comprise such a small part of the population and spend so much less than business on political campaigns, most people have a very unbalanced view. When I worked on the assembly lines of Chevrolet, and later Chrysler, I was a member of the United Auto Workers, yet had very little understanding of union contributions to American life.

To a large extent before the Franklin D. Roosevelt presidency (1933 to 1945), our national government was strongly anti-union. The Pullman strike of 1894 illustrates this.

Re-election with a bad economy

It is repeatedly asserted that unless the unemployment numbers improve the Republicans will win the presidency in 2012. But the outcome of the 1936 election suggests that that is not necessarily so.

In the aftermath of World War I (1914-1918) there was social turbulence. The public's desire to "return to normalcy" resulted in three conservative Republicans presidents from 1921 to 1933. Taxes for the wealthy were cut and inequality increased in the 1920s.

When labeling others, one labels himself

Large numbers of voters make very important political decisions on the basis of non-specific, vague and confusing labels.

Thus the side that is able to successfully label and define their opponents has a clear advantage.

There is a long history of the far right trying to brand moderates and even mild conservatives as "socialists." In 1950, conservative Republicans lead by the powerful Ohio Sen. Robert Taft wanted to adopt a campaign slogan for the congressional elections that would be "Liberty Against Socialism." They alleged that President Harry Truman's Fair Deal was "dictated by a small but powerful group of persons who have no concept of the true foundation of American progress, and whose proposals are wholly out of accord with the true interests of and real wishes of workers, farmers and businessmen."

Republican presidents fail security test

It is widely assumed that Republicans do a better job than Democrats of keeping the nation secure. But the history of Osama bin Laden furnishes many reasons to question that assumption.

States rights overrated

From the inception of the U.S. Constitution, there has been a widespread ignorance of how little it originally protected individual rights from abuses by state governments.

The Declaration of Independence asserts that men are endowed by their creator with certain unalienable rights. But the Constitution was written in an environment when states were older, more established, and often more powerful than our national government. The newly created and weak national government was in no position to protect individual rights that states infringed upon.

Thus, an individual had only as many rights as his state decided to grant. The Constitution recognized that the source of rights could be state governments; if a state chose to deny a person's unalienable rights, that was the state's prerogative.

The fascinating book, "Candid Insights of a Mormon Apostle: The Diaries of Abraham H. Cannon 1889-1895," illustrates how individual liberty was limited by states rights. On Feb. 3, 1890 Cannon wrote: "The U.S. Supreme Court decided that the Idaho Test Oath, which disfranchises all Mormons is constitutional. According to this oath ... no man who is a member of our Church can vote or hold office. This decision will doubtless have the effect to eventually debar every Mormon in the whole United States of the rights of freemen ... the time is fast approaching when the Saints will be called to ... save the Constitution from being trampled underfoot."

Plutocracy is gaining on democracy

There have been varying concepts of democracy over time but millions of Americans believe that Abraham Lincoln's Gettysburg address expressed the highest ideals of democracy. He expressed the hope that democracy would deepen and always endure when he concluded by resolving that, "this nation shall have a new birth of freedom, and that government of the people, by the people, for the people, shall not perish from the earth."

Significantly, in that same brief 10-sentence address, he asserted that our nation was "dedicated to the proposition that all men are created equal." An acceptance of that proposition is the basis for democracy. For if equality is accepted, then there is no reason to limit governing to a chosen few. But if heredity bestows a nobility or greatness on some that others lack, then precluding those in the lower caste from participation in government can be justified.

Utah's and Cuba's leaders bash Washington

Many republics are democracies such as the Republic of India or the French Republic. But some democracies are not republics, such as the Kingdom of Sweden.

The Utah House of Representatives believes that ideally people should live in a republic which is not a democracy. This was made clear with the passage of HB220 by a overwhelming vote of 57-17. According to the U.S. State Department there is only one republic in this hemisphere which is not a democracy: the Republic of Cuba. Interestingly, that republic shares a number of similarities with Utah:

Austerity prevents prosperity

It is a principle of economics that for every export there must be an import. That is, if the U.S. exports a million cars, then other nations have imported a million cars. Our exports are their imports. They are opposite sides of the same coin.

There is a similar relationship between income and spending. One person's or institution's (a business, church or level of government) spending is another person's or institution's income.

Economic interests guided the U.S.

Merchants played an important role in the creation of the U.S. Constitution. Several provisions of the Constitution served the interests of merchants by reducing states rights and concentrating power with the central government. Because states lost the right to issue paper money and control their commerce, the transaction costs for merchants was greatly reduced.

Limit corporate power

At this season Charles Dickens' "A Christmas Carol" is often viewed and read. As most know, Ebenezer Scrooge is a man of business who is obsessed with accumulating profits. Why does he have this obsession? Certainly he is not accumulating profits to give his family a nicer house or vacation; he has no family. Nor is he accumulating profits to make his life more plush; he eats moldy food and endures cold temperatures to save money. Clearly, the only reason he is accumulating profits is for the sake of accumulating profits.

His desire for profits is so st

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