Allow People To Interact

All the noise about the Elon Musk-led Department of Government Efficiency (DOGE) lopping off unneeded chunks of the Federal Government and the horrified response by the big government-favoring progressive left got me thinking about what the purpose of Government is in the modern world and how we can match it to those goals.

My take on the question will shock and horrify others, but hear me out. The purpose of modern Government is to provide the structure for free and open markets to thrive. These markets are another way of saying people can freely and safely interact.

Markets are the best way to allocate resources to better the human condition. Nothing, including the various forms of socialism, mercantilism, feudalism, or tribalism, has lifted humanity more than free and open markets. If you don’t accept this, I urge you to read “Super Abundance.” As the structures necessary for markets to thrive expanded, humanity’s living standards have dramatically improved, even as its numbers have grown.

The reasons for market superiority aren’t hard to find. Billions of people using the latest information will arrive at better decisions and make them quicker than the relatively few elites in Government. In the information age, this advantage only grows.

Markets are the most democratic form of choice. People vote for their preferences. These are hard choices because their money is involved rather than theoretical. We are all human, so markets make mistakes momentarily but self-correct as new information enters the continuous exchange. We invest funds to receive a proper return. If the profit potential leaves, so do we.

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Trump Can Do Better

Donald Trump often sees problems, but as someone who spends little time on in-depth analysis, he comes up with questionable solutions. One example is his suggestion that Jordan and Egypt take in Gazans to ease reconstruction efforts. The two nations immediately shot down the idea, and it isn’t hard to see why. Jordan already has more Palestinian refugees than native citizens. Returning to “Black September” in 1970, their presence has been problematic. They’re not about to add to a problem they never wanted in the first place.

Egyptian President Abdel Fattah el-Sisi gained his position by disposing of the previous Muslim Brotherhood government. Hamas, which governs the Gazans, is an outgrowth of the Muslim Brotherhood’s Palestinian branch. The last thing he wants is to strengthen the Brotherhood’s numbers in his country.  

Trump should’ve known all this and avoided the negative blowback. Still, the president isn’t wrong to wonder, as a builder himself, how you can build a viable Gaza in place of the existing rubble when overrun with 2,000,000 displaced people in just 141 square miles. Gaza was overpopulated and under-employed before the war. Now, the situation is infinitely worse.

Considering Gaza’s makeup, I offered my “Solution for Gaza” posts. Rather than a full-scale invasion, designate areas to be leveled by explosives, inform everyone to leave, then blow them up. Working towards the sea and away from the Israeli border, food and other supplies are landed on the shore by ship. The ships are then required to take women, children, and infirm to safety in accepting countries. If the Arab world and other countries are concerned about these Palestinians, let them show it. International aid now supporting the Gazans would follow them, so there was little if any, increase in cost.

People were horrified, claiming it would level and depopulate Gaza. Looking at things now, with Gaza a pile of rubble and the number of women and children killed, the plan seems a lot better than what has happened.

I never thought the destruction and shipping of refugees would go on for very long before Hamas would give in. Faced with a slow but relentless low-cost action, Hamas couldn’t wait for the last Gazan civilian shipped out of a leveled Gaza. Pressure from other Arab countries faced with accepting Palestinian refugees would leave Hamas little choice.

Even though the situation is different now, with Gaza destroyed, few Gazans have left. We have to understand why there were so many Gazans. In 1948, 7000,000 Arabs fled the new nation of Israel, mainly at the urging of the Grand Mufti of Jerusalem. The U.N. established the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNWRA) 1949 to aid them. The agency set up numerous camps ringing Israel:

Why did the U.N. feel it was necessary to create a new refugee agency when the International Refugee Organization (IRO) had existed since World War II and was doing great work in resettlement? This group evolved into the Office of the United Nations High Commissioner for Refugees (UNHCR), the primary vehicle for caring for and resettling refugees worldwide. It has accomplished the resettlement of tens of thousands of refugees annually.

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Changing Times

In line with my efforts to see all sides of an issue, I keep up with ideas on both the left and the right. CNN and Washington Post (WP) columnist Fareed Zakaria usually provides good insight into establishment thinking, especially on foreign affairs. His latest  WP column is an eye-opener. He calls into question the left’s efforts to benefit the working class.

Most noncollege graduates in Red states voted for Trump and Republicans, even though the Biden administration made significant efforts to provide job-producing projects there. Instead of appreciating their benefactors, the ingrates voted for the opposition.

Zakaria feels the left’s prevailing theory is to move away from a market-oriented economy to one with sweeping government interventions. “It passed massive infrastructure and climate spending bills, explicitly designed to help noncollege educated Americans.” Zakaria points to two congressional districts, one in Texas and the other in Mississippi, that received the most significant government-backed projects but still voted increasingly Republican.

Attributing the continuing working-class Republican migration to race, identity, and culture issues among noncollege-educated whites, he thinks the Democrats should concentrate on their “solid base of college-educated professionals, women and minorities,” and strive to add moderate swing voters. He observes, “Biden keeps touting his pro-union credentials but is increasingly speaking of a bygone era. In 2023, only 6 percent of private sector workers belonged to a union.” The votes to win are elsewhere.

Shortly after reading the Zakaria article, I read Peter Suderman, Reason Magazine’s features editor, “Biden’s Legacy: He Didn’t Build That,” “…over and over again, that’s what happened under Biden: Vast sums were spent or authorized, but nothing came of it.” Maybe that’s why the people in Texas and Mississippi aren’t thrilled if there is no lithium refinery or battery factory. Because of red tape, opposition, and slow-moving bureaucracies, building things in the U.S. takes forever or never gets done.  

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’24’s Leftover Mysteries

As we enter 2025, some ’24 mysteries remain unresolved. Donald Trump ran his successful campaign with a variety of seemingly contradictory positions. I was reminded of these when the Cafe Hayek blog pointed to economist Mark Perry’s illustration:

This contradiction made me think of other Trump contradictions. Peace and safety while withdrawing our troops from the Middle East. Without our support, the Kurds overseeing tens of thousands of ISSIS followers may face an attack by Turkish forces, rendering them unable to prevent a resurgence of the deadly group. Remember, Turkish leader Erdogan has territorial ambitions of his own. This possibility doesn’t sound peaceful to me.

We all know that politicians make all sorts of claims that step on each other, but now it’s time to introduce legislation, and conflicts remain unresolved. The idea is to write one or two big reconciliation bills containing the whole Trump program.

Inflation is a paramount issue that accounts for Trump’s victory, yet many of the president-elect’s promises are likely to raise prices. Besides tariffs that, like sales taxes, increase what you’re paying, lower taxes for favored groups, such as those working for tips or retirees, will likely result in higher interest rates or printing money. As I’ve pointed out, either will raise prices.

Unquestionably, the Biden Administration’s wild spending on the Green New Deal, infrastructure, and chips led to the highest inflation in forty years, but will Trump attempt to repeal all of this legislation? Taken together, these acts are an enormous industrial policy. Repeal all since state-directed economies have no record of success.

The question is whether Trump will tackle the problems wholeheartedly or simply piecemeal. The latter will be conflict on conflict. For instance, will Trump’s buddy, Elon Musk, stand still for eliminating his electric vehicle incentives and green tax credit sales? Will members of Congress allow the scrapping of big projects scheduled for their districts? Many businesses have sunk big money based on the Biden-era legislation. Can they continue without the promised subsidies and credits, or must they swallow significant losses on sunk costs? Even major oil companies put big bucks into green projects.

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Donald the Great?

Having already written about some things to look for in the New Year, I’d like to take a new approach. Donald Trump’s talk about making Canafda the 51st state, buying Greenland, and repossessing the Panama Canal caused me to think of how leaders who see themselves as bigger than life seem focused on the past rather than charting a future that benefits those they lead.

Our major adversaries, Russia, Iran, and China, are centered on recreating old empires. Turkey may be poised to join this group. Putin in Russia regrets the loss of the Empire, created through centuries of Russian expansion culminating in the vast Soviet Empire, which collapsed under Cold War pressure. Setting up stooges in some adjoining territories and continuing to attack Ukraine, the Russian strongman is expending blood and treasure on a grand scale to reestablish the Empire.

The Histories of Empires from the Persian through the Sasanian, centered in Iran, fuel the Mullahs’ desire to widen their reach across the Middle East. They may, as Shites, even see themselves as rightful ones to bring back the Moslem Empire of the early caliphs.

No nation has a more extended History of Empire than China, going at least back to the Shang Dynasty (221 B.C.). Before the communists, the Ming Dynasty (1368 to 1644) was the last to attempt expansion, sending fleets and armies to gain control of both the land and maritime Silk Roads. However, reversals such as the Tummu crisis caused China to look inward. While Chinese fleets reached the east coast of Africa in the 15th century, they never rounded the Cape of Good Hope. Later in the century, the Portuguese did, and the direction of the history of the world changed. I covered this outcome in my “The 15th Century Came and nothing would ever be the same” post in “The Long Journey to More” series.

Xi Jinping seems intent on succeeding where the Ming Dynasty failed. His Belt & Road Initiative intends to recreate the land and maritime Silk Roads under Chinese control.

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