Head-Scracthers

Dave Davis Commentary, Policy, Stopping Inflation, Uncategorized , , , ,

Confusion rules. Has there been a time when, other than wars or economic reversals, everything was so up in the air? In just the last couple of weeks, we’ve had a meltdown over frozen Greenland, a fleet racing to the Middle East for possible military action against Iran, and the appointment of a Federal Reserve chairman philosophically at odds with the President, who appointed him. All with worldwide implications. What can we make of all this?

We’ve gone from giving the U.S. Greenland or else, to we’ll work things out—no big deal. Wait, wasn’t our need to possess Greenland a necessity for national defense? As I pointed out in the last post, we already had access to everything in Greenland that we would ever need. We antagonized our allies for no discernible end. Will Trump return to his demands again down the road?

The administration is correct in acknowledging the Arctic’s rapidly increasing importance. Still, as others and I pointed out, China has more to fear from us regarding the new Arctic trade routes than we do from it. This map makes it obvious where the choke point for both routes lies, and it isn’t Greenland. It is already part of the U.S., our state of Alaska:

As you can see, both new shorter routes run through the Bering Strait, which Alaska dominates. A reasonably strong Alaska military position could close the strait to China’s trade, and China would have to pay hell to regain passage there, even if they could. After all, China would have to move its forces a great distance under to attack, only to find a well-positioned enemy. If we take the proper military steps in Alaska, we, not China, possess the leverage in the Arctic.

Given this strategic fact, Trump’s campaign to grab Greenland was about his legacy, rather than national defense. We’ll determine the cost of his vanity later.

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Trumpland

Dave Davis Commentary, Policy, Uncategorized , , , ,

President Trump has loudly demanded ownership of Greenland as a matter of crucial national defence. Highlighting Greenland’s role in Arctic trade routes and national defense, he drew a dire picture.

Our U.N. ambassador, Mike Waltz, made the administration’s case on several TV shows by claiming that, in the event of problems in the Arctic, the Island doesn’t even have an icebreaker—no wonder they need us.

To understand the situation, we need to know why the Arctic is becoming so important. This map should help:

With warming temperatures, two significant new trade routes are emerging. The Northern Sea Route, which mainly runs through Russian waters, and the Northwest Passage, which runs by Greenland, Canada, and the U.S. (Alaska). As I pointed out in my post, “What’s Trump Thinking,” The Former is of the utmost importance to China. A shorter route to Europe, accessible to Russian resources, is the future. That’s why China isn’t about to allow Russia to change alliances without a painful response.

The search for a Northwest Passage dates back centuries, driven by obvious commercial advantages. Now it’s happening. As with any critical trade route, it needs protection. It’s still the Arctic, so commercial and military vessels will need icebreaker support. As NATO allies, Denmark, Canada, and the U.S. should have no problem establishing bases and patrols as required.

Of course, Ambassador Waltz is correct in highlighting the need for Icebreakers. Still, you can’t look to the U.S. We have two or three ancient icebreakers that may or may not be available in a time of need. We’ve ordered a couple from Finland, hopefully for delivery in 2028. Presently, the Northwest Passage depends on Canada’s 18 capable ships, with even more modern ones on the way. With the increasing importance of icebreakers, note that Denmark has more than the U.S.:

With the safety of the Northwest Passage more dependent on Canada than the U.S., let’s look at Trump’s other military arguments for U.S. ownership of Greenland. We need the Island for the Golden Dome defence system, but that’s just an upgrade to the North American Aerospace Defense Command (NORAD), which includes bases across the frozen north of the U.S., Canada, and Greenland.

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The Pursuit Of Happiness

Dave Davis Commentary, Policy, The Long Journey to "More", Uncategorized , , , ,

While waiting for the long-overdue Supreme Court Tariff ruling, I’ve had time to reflect on why so many Americans have either a dim view or little knowledge of our capitalist economic system. How can a simple, common-sense system be misunderstood by so many?

I’ve been reading Zhang Weiying’s “The Logic of the Market: An Insider’s View of Chinese Economic Reform” to better understand how the Chinese economy compares to our own. Most economists talk in jargon, but the Author explains capitalism in terms of happiness rather than marginal returns and GDP.

In capitalism, people engage in consensual exchange. Consumers and suppliers freely exchange a wide range of goods. As each gets what they asked for, both are happy. You go to the supermarket, you get what you want, and the store gets paid. Both of you win.

However, if goods or cash change hands with only one party happy and the other sad, it’s robbery. Think about that. Someone points a gun at you, demanding your stuff. The thief is happy, but you’re really sad. The point of human interaction is shared satisfaction, rather than gloom.

The gauging of happiness and sadness in society to determine whether an action is successful or just a thief. can be applied to both governance and economics. Most commercial transactions in free-market economies result in happiness for all the participants. You go to Costco, get a hot dog, and fill your cart with goods you value. At checkout, both you and Costco are happy.

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Trump: Inept Colonialist?

Dave Davis Commentary, Policy, Uncategorized , , , ,

Shades of the British in India, we depose a Leader favorable to our enemies, leaving the existing government compliant to our rule. Trump seized and deposed Venezuela’s leader and set up a colonial relationship with the remainder of his government.

Facing an overwhelming force, those in charge of the nation surrendered control of their primary asset, oil, to the U.S. We will take the oil and market it. Whatever amount we decide to share with Venezuela must be used to purchase U.S.-made goods.

These terms sound like our colonial relationship with King George’s Britain. Control of our trade lay with the mother country. We could only buy from British manufacturers. Our Declaration of Independence leaves no doubt about what we thought of the situation. Now, Trump has taken on George III’s mantle.

At least past colonial Empires went after places that produced stuff that didn’t compete with their home products. Tobacco, indigo, sugar, and tea didn’t grow in Britain or France. These mercantilist nations made money by selling colonial produce and by monopolizing the sale of manufactured goods to their colonies.

Isn’t someone in the present administration aware that the U.S. is the world’s top oil producer? It’s as if, when England was the largest wool exporter, it deposed a foreign leader to expand his nation’s wool production. One could see eliminating a competitor, but Trump only talks about rapidly expanding Venezuela’s output. Even crazy George III could see the flaws in this policy.

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Getting It Right At 250

Dave Davis Commentary, Policy, Uncategorized , , , ,

We always get to see numerous replays of the New Year’s Eve Times Square Ball drop, but this year was different. Instead of the Ball staying grounded, it went right back up, proclaiming the U.S.’s impending 250th birthday, to drop again on July 3. This coming event can’t help but shine a bright light on one of history’s most extraordinary groups-our founding fathers.

Sadly, the people with the loudest megaphones on both the right and the left have chosen to present a distorted view of these remarkable people. The New York Times’ much-debunked 1619 Project portrayed the Founding Fathers as pro-slavery and the Revolution fought to preserve it. While historians and economists pointed out the project’s numerous errors, it lives on in progressive circles along with the nonsensical idea “Slavery is America’s original sin.”

The only thing original about slavery in colonial America was the Quakers, along with their co-religionists in England, calling for the abolition of the eons-old practice. Before Quakers, no religion, not the Catholics, Muslims, Hindus, Buddhists, or any other religion considered slavery a sin. From the Quakers’ shared spaces with other congregationalist Protestants, the idea that slavery is an abomination spread. Slavery was hardly original here, but the abolitionist cause was.

In a world of hereditary caste systems, with people as chattels at the bottom, whether we called them slaves, serfs, coolies, or untouchables, their lives were controlled by those above them. Challenging this system was genuinely original.

It is telling that for all his achievements, Ben Franklin could never sit in the House of Lords. No wonder self-made Americans weren’t keen on the British class system.

It is, therefore, discouraging to see what many consider the beginning of the impending birthday celebration: Ken Burns’ six-part PBS series “The American Revolution” repeats the popular messaging in progressive circles that the founding fathers were pro-slavery.

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