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Food Stamp Nation

May 16th, 2012

Remember Marx, ‘from each according to his ability, to each according to his need.’ The release of the number of American citizens on food stamps is frightening.

Its staggering, but more American citizens are on food stamps now than any other time in American history.

According to the US Department of Agriculture, a record 44.7 million American people are participating in the Supplemental Nutrition Assistance Program.  This is a $75.3 BILLION dollar cost annually.

Something has gone terribly wrong with the faith Americans have traditionally had in govmint policy.  The faith was never misplaced; it was used to further the ambitions of a political class.

Our guess here at Team Lumaj is simple to understand:  political cynicism will be met with the brutality of realism; an abiding faith that ideas matter; ideas inseparable from the moral conviction that the foundation of American Exceptionalism is LIBERTY.

Sic Semper Tyrannis



Keynes Is Wrong Again

May 16th, 2012

Those arcane specialists at the Federal Reserve ‘remember everything but learn nothing’.  So how did we get into this mess?

Keynesian Economics is the forte for those that love centralization.  It’s the theory that you fight an economic downturn by pumping more money into the economy to encourage demand and create jobs.  Unfortunately, it does not work!  With the arrival of digital technology and the beginnings of a decentralized economy, there is no justification for political centralization.  As Reagan and his economic team proved, the entire edifice of Keynesian craft has no effect on incentives.

The fallacies of Keynesian economics were exposed decades ago by Friedrick Hayek, Ludwig von Mises and Milton Friedman.  Keynesian thinking could not explain nor fix stagflation (high unemployment and high inflation).  The entire 1970’s saw unmitigated double digit inflation, high interest rates and massive unemployment.  Reagan knew that public policies and the political philosophy underwriting it were wrong.  Reagan’s decision to dump Keynesian economics in favor of classical economics emphasizing personal, individual incentives gave us a 25 year economic boom.

We now have 26.5 million unemployed.  That’s a very conservative number given that our unemployment rate is about 18%.  U.S. economic recovery will only come from private, job creating investments; as they always have!  Producing long-term economic growth will require a fundamental change in public policies:  lower tax rates, reliable monetary policy from the Federal Reserve, low cost energy, elimination of job-killing regulations, this is how we start any economic boom.

So why is Team Obama stuck in that 70’s show?  It’s really simple:  failed Keynesian economists are authoritarian; they will never acknowledge the necessity that is individual liberty, freedom, choice.

Sounds like we need an election!



What was Bernanke Thinking

May 15th, 2012

Just what was Bernanke and Paulson thinking back in 2008?

Inflation is another form of taxation.  It’s hidden so it’s really closer to theft.  Let me explain how Bernanke and Paulson, in choosing the path to promote inflation were really accommodating a liberal Congress.

The thinking behind the Federal Reserve’s Quantitative Easing (printing money) was not just to increase consumer spending, but to help the Treasury Department’s huge interest commitment on its debt by means of an implicit hidden tax.

It’s the hatred of creditors that fueled Bernanke and Paulson.

Funny thing though, liberal govmint pursues policies preventing individual sovereignty and freedom while Americans finance every aspect of their lives, we’re simply prevented from NOT borrowing!  So govmint bureaucrats hate individual freedom, demand that we borrow and then hate to have to pay for political commitments!!  This is coercion.  We’re surrounded by authoritarians who refuse to acknowledge that man is free, and public policies must be shaped by that freedom.

Reagan was right, when we needed Lions, we had Rabbits.



Standing Up Against Tyranny

May 14th, 2012

It’s a shame that most people today aren’t familiar with Lech Walesa, Vaclav Havel, Alexander  Solzhenitsyn and numerous other dissidents that put their lives on the line to reveal to the world that evil exits.  I name only those few simply because they’re the most famous.  There are others, perhaps too numerous to mention.  That is why Sergei Brin and Peter Thiel decided to make the Vaclav Havel Prize for Creative Dissent.

The power of the powerless was on display Friday, May 11, 2012 as the names, biographies and political appeal of three individuals dominated the news wires.  Team Lumaj thought it necessary to give short appeal to just a few admirable individuals that suffer for their convictions.

Ai Weiwei is a 54 year old Chinese dissident.  After the 2008 Sichuan earthquake that took the lives of thousands of children in badly built schools, he decided to cover the façade of a Munich art museum with 9,000 children’s backpacks spelling out in bright Chinese characters, a mothers lament for her 7 year old daughter.

After being nearly beaten to death in 2009, he tweeted images of his brain scan to followers.  For American liberal Republicans throughout the ‘establishment’ that fear China, we must admonish you to discover the fragility of contemporary China.

The second laureate is Manal al-Sharif, a 33 year old Saudi women nearly flogged to death for driving!  The Saudi medieval appeal to coercion never quite makes its way to the State Department, foggy bottom always pursues policies inimical to the moral foundation of freedom:  individual liberty.

The third Havel Prize goes to Aung San Suu Kyi of Burma.  Her National League of Democracy currently has gained minority status in parliament; but 15 years of house arrest (read coercion) is breaking under international pressure to recognize Burmese rights.  The hermetic cultures throughout the Pan-Pacific region, ones traditionally informed from the passivism of Buddhism, are discovering the appeal of political engagement/reform that comes with international trade.

The odyssey that dominates the lives all these individuals is a stark reminder that defeating tyranny is a lifetime struggle.

We owe it to those who suffer the brutalities of tyranny, a refuge, a hope, firm knowledge in the belief that goaded Jefferson:  The tree of liberty must be refreshed from time to time with the blood of tyrants.



Ann Schwartz & Milton Friedman with Team Lumaj

May 11th, 2012

At 92 years old and still working at the National Bureau of Economic Research in Washington D.C., Team Lumaj recently read Dr. Ann Schwartz’s book who along with Milton Friedman in 1963 penned the authorized version of A Monetary History of the United States.  She happily recounted how both media, Congress and most of establishment types just don’t understand how we got into our current fiscal, monetary mess, nor do they understand how to fix it.  For Dr. Schwartz, it’s really quite simple:  we’re getting it wrong again!

Dr. Schwartz said that to understand the nature of contemporary market disturbances we have to understand why banks are not lending to one another and why credit spreads are so high (a credit spread is the difference in cost between what private/government borrowers pay.)  This is not due to a lack of money available.  It has nothing to do with the money supply. It has to do with the complete lack of faith in the ability of borrowers to repay debts.  The Federal Reserve as gone about this problem as if there’s a shortage of money/liquidity.  That is not the problem.  The basic problem for the market is the uncertainty that balance sheets of financial firms are credible.

Even after the Federal Reserve floods the country with money, credit spreads remain far too high.  Credit spreads haven’t budged because banks don’t know who is solvent and who is not.  It is this uncertainty that is the fundamental problem of our contemporary political economy.

Our problem, she says, is made more difficult in that banks have all these exotic assets on their ledgers that they cannot price, they don’t know the value of.  Selling them to the Federal Reserve was only part of a solution.  Look, saving the dollar and saving banks is two different things.  Why are they toxic?  You cannot sell them, no one knows what their worth and your balance sheet is not credible with them residing on it, so the whole market freezes up.  The problem is compounded by acknowledging the dilemma:  how do you price toxic assets, so she sees the Fed’s original move in toxic asset purchasing fine but it doesn’t address fundamental problems that besiege our market.  The dirty little secret was that selling toxic assets at market prices would lead to bank insolvency and the freezing of credit markets.  Paulson did the right thing to switch from buying bank assets to recapitalizing banks directly.  According to Dr. Schwartz, saving the banks and saving the banking system is not the same thing.  After all, keeping insolvent banks afloat only prolonged the crisis, according to Schwartz they should not be recapitalizing firms that should be shut down.

Manias have their origin in an expansive monetary policy; the Federal Reserve is responsible for generating the boom of an asset.  And as for creditors, they are no more worthy of being rescued than ordinary people who’ve been hurt by this.

Dr. Schwartz firmly believes that our current mania and subsequent bust must be laid at the feet of an irresponsible Congress and a Federal Reserve that sought to fight the ‘last war’, not perceiving accurately the synoptic problem of how an overly accommodating liberal Congress created through overt centralization the very seeds to destroy this great Republic.



Connecticut Manufacturing: The Rising

May 10th, 2012

You often hear about the catastrophic collapse that was American manufacturing.  True to form but not quite historically accurate, for Americans are an exceptional people, we’re the most resourceful even when Socialist policies are imposed on us.  Given how George Orwell lamented how British Socialists decried the loss of manual labor to market efficiencies, we here at Team Lumaj thought to put Connecticut’s manufacturing loss in proper perspective.

We accept the writings of Allan Meltzer, David Malpass, even John Taylor on credentialing the total unemployment rate around 15 million citizens.  Nevertheless, the nature of American manufacturing has changed drastically from its peak in the 1970’s.  Since then, America has lost more than 6 million manufacturing jobs, however, our output in manufacturing remains at historic highs!!  Come again?

American manufacturing output is at an all-time high!

Today’s total output is nearly 3 times our 1970’s peak.  This fact is adjusted for both inflation and currency depreciation!  Given the social impact of superior craft in applied robotics, Americans produced $1.8 Trillion in goods in 2010 (last known reported statistic), that’s about $100 million dollars more than China, WITH ONLY ABOUT A TENTH AS MANY WORKERS, thanks to automation and technological advances that increased productivity.  Goods that took one thousand American workers to produce are now performed at higher output levels with only 177 workers.

The choice is not between American workers or Chinese workers, for China’s GDP remains the size of Italy; the choice is between American machines and Chinese workers!

Perhaps the real problem is the relation between US manufacturing jobs and our deficit in requisite skills.  But the bedrock of this problem must be laid at American education.  As our previous posts have elaborated, the crisis of American education is inseparable from the crisis that is the American Family.

Sounds like we need an election.



Connecticut’s Exhausted Women

May 10th, 2012

The feigned outrage that has become the “War On Women” must be exposed for the phony campaign slogan it is, but then again liberals don’t really govern, they admonish the political hay they create.

Don’t look for anyone other than Conservatives to understand the social impact that confiscatory taxation has become for contemporary women.  The sheer ability to muster the daily courage to hold down a job outside the house along with domestic responsibilities as mother and wife is daunting.  Only Conservatism speaks of the “combatant status” that is today’s mother.

Conservatives speak to the reality that has become of today’s women:  exhaustion.

What do women get in exchange for autonomy:  a depreciated currency coupled with confiscatory taxation!  Do we need to be reminded that the least among us are hurt the most by the fierce ideology that is today’s liberalism.

Conservatives can indeed explain why fat-boy government in general disproportionately hurts women; for true liberation would articulate policies that reflect a view of work worthy of true freedom.

In 1950 mothers with children under age 6 accounted for only 12% of the workforce.  Today that number is over 60%.  Many of these women who now work are penalized by outdated polices that haven’t kept pace with big shifts in American demography.

We could start by dismantling a progressive tax code and the serve penalties it imposes on marginal tax rates.  How about the punitive tax burden of child care costs, this is the primary reason why so many women in today’s economy can’t afford to work.  How about junking the antiquated 1938 Fair Labor Standards Act for flex time, this is an invaluable option for many working mothers attempting to juggle both work and family.  Polls indicate that over 80% of women would prefer to pack more hours into fewer days and receive compensation time off.

None of this will happen with liberals.  Why?  Because union allies resolutely oppose any reform of the 40 hour law simply because the status quo gives union leaders more control over crafting working arrangements.  Remember how throughout the 1990’s Senate Democrats blocked Republican efforts to let workers negotiate directly with employers to schedule their hours, a provision that would have mainly benefitted women with children.

We should reform the impact that is meager Social Security benefits, for most women are left to pay for both death taxes and the meager annuity that Social Security provides.

Because women tend to move in and out of the workforce, union driven pension plans that reward long service rarely benefit women.  Meanwhile, arbitrary government limits contributions to retirement savings diminishing their outside savings contributions.

For the 21st Century, women want and need an economy with fiscal policies that provide choice, opportunity and ownership.  The liberals want a phony war.  Team Lumaj looks forward to the choice of battlefield to fight this one.  By all means Linda, Team Lumaj looks forward to debating the historical precedents that inform how “The Tower” conforms to Republican principals.



The Guardians of Liberal Republicanism Linda McMahon & Chris Shays

May 10th, 2012

Walking around Ossining, New York yesterday Team Lumaj ran into Alexis De Tocqueville, he opined on the State of Connecticut Republicans, especially Liberal Linda and the failed ‘Gypsy Moth’ that is Chris Shays.

Alexis insisted that:  “If despotism were to be established among democratic nations of our time, it might assume a different character; it would be more extensive and mild; it would degrade men without tormenting them.  Sovereigns might more easily succeed in collecting all political power into their own hands, and might interfere more habitually and decidedly with the circle of private interest, than any sovereign of antiquity could ever do.  But this same principle of equality which facilitates despotism also tempers its rigor. 

                I sincerely think that the species of oppression by which democratic nations are menaced is unlike anything which ever before existed in the world:  our contemporaries will find no prototype of it in their memories.  I seek in vain for an expression which will accurately convey the whole idea I have formed for it; the old words despotism and tyranny are inappropriate: the thing itself is new, and since I cannot name, I must attempt to define it.  I seek to trace the novel features under which despotism may appear in the New World.

                Above this race of men stands an immense and tutelary power, which takes upon itself alone to secure their gratifications, and to watch over their fate.  That power is absolute, minute, regular, provident, and mild.  It would be like the authority of a parent, if like that authority, its object was to prepare men for manhood; but it seeks, on the contrary, to keep them in perpetual childhood:  provided they think of nothing but rejoicing.  For their happiness such a government willingly labors, but it chooses to be the sole agent and the only arbiter of that happiness; it provides for their security, foresees and supplies their necessities, facilitates their pleasures, manages their principal concerns, directs their industry, regulates the descent of property, and subdivides their inheritances.  What remains, but to spare them all the care of thinking and all the trouble of living? 

                Because of the character of this debasement remains in accord with desire, it renders the exercise of free agency of man less useful and less frequent; it circumscribes the will within a narrower range, and gradually robs man of all the uses of himself; it has preordained and predisposed men to endure them, and oftentimes to look on them as benefits.  With this sovereign, the will of man is not shattered but softened, bent and guided; men are seldom forced by it to act, but they are constantly restrained from acting:  such a power does not destroy, but it prevents existence; it does not tyrannize, but it compresses, enervates, extinguishes, and stupefies a people.”

How else to say it:  the candidacy of McMahon and Shays embody the principles of this democratic despotism.  The only way forward for Connecticut is to vanquish the extorted obedience both claim to hold as our interests.

May 18 is coming!



Chris Shays: Wrong on the Constitution

May 9th, 2012

The ignorance that Chris Shays continues to maintain regarding the relation between ‘compromise’ and the construction of the American Constitution demonstrates an ignorance unworthy of any candidate for the US Senate.

First, liberal methodology is riddled with appeals to historicism.  Liberals feel (read think) that justification is amplified by appealing to facts.  This demonstrates a profound lack of rhetorical rigor; it embodies a fallacy that is perpetuated by appeals to facts divorced from their interior order.  Remember, words mean things!

The United States Constitution was NOT the result of COMPROMISE!!!!  Even an ancillary reading of the Federalism Papers would confirm this.  Chris Shays has been in govmint for over 30 years and is ignorant of both how & why our Nation was founded.  (Dear Chris, the distinction between how/why is a real distinction, one not discovered nor affirmed in the liberal appeal to sentiment, for ignorance does not absolve one from the duty to know!)

The United States Constitution was formed from the impact of an insight that both Northern Federalists and Southern agrarian Anti-Federalists UNDERSTOOD:  NAMELY THE INTRINSIC WEAKNESS OF THE ARTICLES OF CONFEDERATION.  The Articles of Confederation could not provide nor sustain the intrinsic requirements needed to preserve a Union.  The weakness of the Articles of Confederation meant that appeals to absolute autonomy rendered American colonies subject to the tyrannical autocracies of Spain and/or England.  How could the colonies prevent or prevail by force of arms without a centralized government providing security; a security they implicitly distrusted.

Both parties understood that if the success that was the War of Independence was to be solidified, and promoted for future generations to enjoy, the interested parties (Federalist/Anti-Federalist) needed to construct and affirm a centralized government of limited, enumerated powers.   This is the gift that Madison discovered in his application of Federalism (example:  Separation of Powers Doctrine.)

Chris doesn’t understand a primal moral, political point regarding HOW the Constitution was formed:  both the Federalists and Anti-Federalists NEVER abandoned their belief in natural rights doctrine!

Dear Chris:  the debates are going to be fun!!!



American Exceptionalism

May 9th, 2012

Karol Wojtyla was right, nothing surpasses the glory that is human freedom.  This appeal to the gift that is our exceptionalism finds its echo in Lincoln:  “nothing is more fertile in prodigies than the art of being free; but there is nothing more arduous than the apprenticeship of liberty.” 

American Foreign and Domestic Policy has always been torn between Wilsonian idealism and the pragmatism of our Puritan forefathers.  We find this enduring paradox from the Athenian hold that became the suffocating idea of parochial sovereignty; the vortex that impelled brothers in arms to slaughter one another to a man throughout the Aegean, and the failure that is our contemporary Welfare State.

The appeal to idealism, whether it be Plato, Sunni piety or the confounding practicalities that shaped Cheney and Bush in affirming liberties grounded in human nature; however intractable it proved throughout Mesopotamia, was affirmed in the heroic mantle that became Petraeus and the winning surge of 2006.

The paradox grounding western appeals to both the ideal and the empirical were resolved in favor of human freedom.  This is why America to our Founders became the Novus Ordo Seclorum (the “new order of the age”.)

This is the promise that embodies America!  It has shaped both our domestic and foreign policies.  It is squandered by appeals to relativism and nihilism that inform our contemporary Democratic Party and liberal Republicans like Chris Shays and Linda McMahon, candidates completely uninformed the Republican tradition that gave us Lincoln and other steadfast leaders worthy of admiration.

What previous administrations struggled with is clearly affirmed by Conservatives:  human freedom is not a state of nature but an artifact of civilization!  The civilization that is inseparable from the promise of liberty is the Judeo-Christian Civilization; whose resounding apex is America.  Just ask dissidents of Evin prison, Castro’s Ladies in White even Syria’s Riad al-Turk, all affirm in joyous affirmation what it meant to know that their brutal suffering was known abroad.

Remember the photos of forced feeding of Andre Sakarov, the long deprivations that strengthened Alexander Solzhenitzen or the trials of brinkmanship that was Lech Walesa or Vaclav Havel?  How about the appeal that Reagan made to all American citizens, the sign of binding solidarity in a lit candle!  All were strengthened in knowing that America remained committed to a distinctly western principle:  the inviolability of conscience!

A principle easily squandered by a life of leisure (McMahon), or to the contrived posture of concern that masks an ignorance born from complacency (Shays).