California vs. the Productive Class

California is sinking fast economically, as we explained in States in Budget Crisis.

The Los Angeles Times points out that California placed 48^th in a study of business-friendly states, trailed only by New York and New Jersey -- and that was the good news. A few weeks later, the Times reported even more dismal information.

Leading with the news that Chief Executive magazine had named California the worst place to do business for the eighth year in a row, they went on to detail some of the reasons.

Its 10.9% unemployment rate is only lower than Nevada's and Rhode Island’s. A third of U.S. welfare recipients live in California, the report noted. High state taxes and bundles of red tape make operating a business in the state unaffordable to many companies, critics say.

Last year, 254 California companies moved some or all of their work and jobs elsewhere -- 26% more than 2010. Most chief executives in Silicon Valley said they won't expand in the state, according to the survey.

In The California "Austerity" Trap, Robert Upshaw points out that California's expected budget shortfall has mushroomed to $16 billion and in response, Governor Jerry Brown offered a plan that ups the top tax bracket rate by 3% for the next seven years and increase sales taxes by one-fourth of 1 percent for four years.

In response to these woes, California's solution is to attack its underground economy, estimated by the state at between $60 and $140 billion, rather than lowering the tax and regulatory burdens that have driven that substantial portion of the economy underground, as Reason reports.

Is Directive 10-289 in Our Future?

I'm currently rereading Ayn Rand's Atlas Shrugged, thanks to an ongoing discussion of the book with a first-time reader-friend from the previously mentioned Absolute Write Politics & Current Events forum.

For those not familiar with the novel, it tells the story of an America choking on special favors and regulation, where each attempt to "fix" things leads only to more problems, where legislation promoted for the "common good" instead serves to line the pockets of the politically-connected, where regulations claimed to promote stability instead institutionalize stagnation. An America where "too big to fail" applies not only to banks, but to the steel mills, copper mines, and railroads of those who curry favor with the administration.

An America, in short, not too far distant from the one we inhabit today.

Licensed to Live: Occupations

Author's Note: Just below the masthead at the top of the page you'll see a new Contents link. The linked page lists all Tireless Agorist columns, arranged loosely as a table of contents or reading list by category. I hope you find it useful for exploring The Tireless Agorist.

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In 1787 one could get most any job or open most any business without seeking the government's permission to do so. Today, nearly one in three U.S. workers needs a license to pursue their chosen occupation, and starting a new (legal) business without the involvement of both a state-licensed attorney and a state-licensed accountant is a fool's errand. Two recent studies do much to explain the rapid growth of the underground, apolitical economy that we explored in The Apolitical Economic Superpower and the rest of the Phoenix Society series of columns.

Occupational Hazards

The Institute for Justice recently released Occupational Licensing in 50 States and D.C., a study examining the impact of licensing on 102 low and moderate-income occupations. In 1950, only one in 20 U.S. workers needed a license to pursue their chosen occupation. Today, the ratio approaches one in three.

Barefoot College - Electrifying Empowerment

In some of the poorest villages of India and Africa, illiterate grandmothers are bringing the gift of light. This is the amazing story of Barefoot College, responsible not only for training illiterate solar engineers, but also water engineers, designers, communicators, midwives, architects and rural social entrepreneurs.

Barefoot College, established in 1972 by Sanjit "Bunker" Roy, has been championing a bottom-up approach to education and empowering rural poor since 1972. Roy's vision was to educate the local people, who would then be able to use the skills and knowledge to raise themselves from poverty. He initially hired what he describes as "paper-qualified urban professionals," but found they would spend only a few months at the project before leaving for positions in the cities. Beginning in 1977, he began using local people who had attended the college to do the teaching, designing the programs to use simple technology in innovative ways.

Roy's model -- educating local people through peer-to-peer learning -- is transformational in that it relies on the passing on of traditional skills and knowledge rather than an emphasis on outside educators bringing new ideas and influences. Local people are trained as doctors, teachers, engineers, architects, designers, mechanics, communicators and accountants.

Roy has disrupted the model that many NGOs and well-endowed foundations promote in the developing world, namely a top-down approach led by outside, often governmental, institutions.

White Male Privilege

It must be nice to be a baby boomer heterosexual white man.
During an online discussion about voting, after I sarcastically recommended the lesser of two evils theory, I got this clever non-sequiter dropped in my lap.

It must be nice to be a baby boomer heterosexual white man.

My reply, although pointed, was far too brief.

Actually, it sucks. We can't blame our failures on the inequities in the system and postulate that if only we get the right people into political office they'll fix everything. We have to face the stark reality that the One Percent's idea of "equality" is to destroy the "privileged" middle class so that all the ninety-nine percent are equally disadvantaged and dependent on their largess, rather than removing the roadblocks that allow everyone to compete with those who are politically protected and achieve all they're capable of achieving.

My concept of equality does not mean we're all equally powerless to do anything without permission from the state and grateful for whatever paltry portion of our own efforts they deign to let us keep.

The Homebrew Production Model

In earlier columns in this series, we've explored technologies that promise to challenge mass production and distribution of goods, much as decentralized arts have begun to challenge the major media outlets and local farming is becoming a nascent threat to factory farming; technology that will soon be as readily available to the local craftsman as farming implements are to the local farmer.

Both an ecological and economic case can be made for the wastefulness of the current production-push model of goods creation. Making cheap, disposable goods centrally and distributing them globally in a never-ending cycle uses considerably more resources and energy than crafting durable, repairable goods for a smaller geographic area. As with produce, the hidden costs of socialized infrastructure account for a considerable portion of the supposed economic advantages of mass production.

The counter-argument can be made that only centralized production lines can produce many goods, such as today's sophisticated electronic consumer goods. To continue down the path toward a more decentralized economy, new models of decentralized production will be necessary. Fortunately, some models have already shown themselves to be viable, and others offer great promise.

Detroit: America's Greece

As most everyone knows by now, Greece is broke. The government has borrowed all there is to borrow. They've made all the promises they can possibly make. And they're going to be able to deliver on neither obligation. Bondholders and citizens alike have discovered that the well of unending plenty is dry. But this didn't happen overnight, and even now there is much denial of the final outcome, although the signs have been on the horizon for years. The euro-based Greek economy is dead; what the establishment will do to recreate a replacement "official" economy is yet to be seen. Nor is Greece the only euro-state in trouble. Portugal, Ireland, Italy and Spain are in similar shape, with many others not far behind.

Meanwhile, the Greek people are seeking their own ways around the mess that their national leaders have created, to some degree with the cooperation of those leaders, as we discovered in Greece Surrenders to the Underground Economy.

Detroit, like Greece, has failed. The government of Detroit is collapsing, soon to be replaced, one way or another. Battles have erupted between the Detroit City Council and Michigan Governor Rick Snyder to determine which group will take temporary control of the city (and eventually the ultimate blame for the collapse of Detroit's political machine).

Accidental Agorists Rebuild A Road

Here's the story of a community getting together to repair a road, bridge and all, because the government couldn't or wouldn't get the job done and they weren't willing to set around and watch their livelihoods destroyed. What this Tireless Agorist finds most interesting is that they don't even realize they're agorists, or that they're involved in a voluntaryist, entrepreneurial, counter-economic political demonstration of direct action, as surely as Mahatma Gandhi and his supporters on the Salt March. This is how the world will change.

Their livelihood was being threatened, and they were tired of waiting for government help, so business owners and residents on Hawaii's Kauai island pulled together and completed a $4 million repair job to a state park -- for free.

Polihale State Park has been closed since severe flooding destroyed an access road to the park and damaged facilities in December.

The state Department of Land and Natural Resources had estimated that the damage would cost $4 million to fix, money the agency doesn't have, according to a news release from department Chairwoman Laura Thielen.

The state couldn't get it done for at least two years, so Ivan Slack, owner of one of many businesses reliant on the park, went looking for volunteers.

Open-Source Freedom

A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects.
Robert A. Heinlein
Northwestern Localist asked an interesting question in response to the column Homebrew Production is Coming.

How many years are we from designing and building our own farm equipment, transportation, etc. etc.? This kind of technology makes massive centralized government control less viable.

I happened to know the answer is zero, which sent me searching for something I vaguely remembered, and that led me to the today's column. While Northwestern Localist won't be printing up a tractor on a RepRap machine any time soon, his question goes far beyond that, to the concept of shared knowledge.

Exploitation: A Matter of Perspective

Matt Yglesias asked what was perhaps a rhetorical question at Slate on Friday, in his column The Real Story Is Everywhere In China Where They're Not Making Apple Stuff.

He first notes that "Public radio's popular This American Life episode about abuses in the Foxconn factories that make Apple products has been retracted on the grounds of the "significant fabrications" it apparently contained."

Matt then suggests that perhaps Apple's real sin was in "exposing our delicate western sensibilities to the misery [of Chinese workers]."

As he points out, "You don't read articles about working conditions in factories making socks destined for export to Kazakhstan, and you don't read articles about working conditions on the rice farms that people eagerly leave to go toil in the sock factory."

And then it's time for the rhetorical sucker punch. I use that term as a compliment, not a pejorative; it's an important question to ask.

When you read something bad about a Foxconn factory and then see that thousands of people line up for the chance of a job at one of them, that really ought to make you wonder. What were those guys doing the day before they decided to stand in line? How did that look?

Well, Matt, thanks to the New York Times, this Tireless Agorist can answer that question for you, through the eyes of a young man born in China and now attending an American university. He sent the following note to David Pogue, who included it in his column What Cameras Inside Foxconn Found.

Today I Beat Up Your Mom

There's apparently nothing in the world better for one's self-righteous pride than verbally threatening and mentally beating up on an older white lady who's enabling your sense of privilege, at least if you're of the mindset of the author of this Daily Kos "Diary."

"If you say one more fucking thing I'll go find your manager and all three of us can discuss this."

At that, she suddenly deflated. Now the look in her eyes was fear. She looked down and meekly mumbled "Ok. Sorry sir."

I left then, proud of myself and still full of anger.

The Diary of DuzT, cleverly titled "Today I told off a cashier who was trashing the president," is a poster-child example of Dr. Michael Huemer's essay that we recently discussed in Why People Are Irrational About Politics. Thanks, DuzT.

Why the World Thinks I'm Crazy

The people who are crazy enough to think they can change the world,
are the ones who do.
Apple advertising campaign, "Think Different," 1997
From our earliest experiences, we are taught to respect authority. This teaching continues through the socializing experience of our schooling, and its value is proven in the success that people achieve in their careers by learning to "go along to get along." Peer pressure and the media reinforce the lesson every day. It's hardly surprising that those who develop an anti-authoritarian attitude are considered somewhat outside the mainstream of conventional society.

Bruce Levine, Ph.D. is a clinical psychologist known as somewhat of an anti-authoritarian himself. He recently published an interesting piece at Mad in America examining the relationship between the mental health profession and anti-authoritarians. He begins by noting a couple of interesting conclusions he's drawn during his career.

In my career as a psychologist, I have talked with hundreds of people previously diagnosed by other professionals with oppositional defiant disorder (ODD), attention deficit hyperactive disorder (ADHD), anxiety disorder (AD) and other psychiatric illnesses, and I am struck by (1) how many of those diagnosed are essentially anti-authoritarians, and (2) how those professionals who have diagnosed them are not.

He follows with a definition of the anti-authoritarian personality.

Uncle Sam's Clogged Arteries

There are many reasons for the listless, if not moribund, state of the US economy. Today, this Tireless Agorist would like to tackle the topic of the clogging of the arteries of commerce. I'm not referring to the continual degradation of the physical infrastructure on which commerce depends; the roadways, railbeds, waterways and airways along which products move, the systems that bring us clean water and carry away our waste, or the pipelines, electrical generation plants and transmission grid that power our industry, although that would be a good topic for a future posting. In this essay, we'll address the impact of ever-growing regulation on economic production, innovation, and competition.

The Code of Federal Regulations totaled 165,494 pages as of the end of 2010, the most recent data according to the Office of the Federal Register. This is an increase of 132% from 71,224 pages in 1975. These regulations are enforced by more than 50 agencies, and a 2005 study by the Small Business Administration found that the cost of all these rules seven years ago was more than $1.1 trillion dollars a year, more than Americans paid in federal income taxes in 2009. That figure includes only the direct burden placed on consumers. Constraints on innovation, new inventions or products that never reached the marketplace cannot possibly be measured, since they are by nature undefinable.

And note we're speaking only of federal regulations; for businesses involved in interstate commerce, there may be as many as 50 sets of state regulations they must adhere to. Nor does it stop there. Many counties and municipalities have their own sets of rules and regulations that must be strictly adhered to under the risk of financial penalties or even permission to continue operations.

If You Build It, They Will Come

If you drive a car, I'll tax the street, If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat, If you take a walk, I'll tax your feet.

Don't ask me what I want it for If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman

- The Beatles -
Seven-year-old Carter King likes to fish with his dad. He likes it so much that he and his dad built a fourteen-foot wooden boat in the garage together so they could go fishing more often. Being good citizens, (or knowing they'd get nabbed by the state if they didn't have a bunch of ugly letters and numbers painted on the side) they properly registered the boat, paying the appropriate fees.

Not long after, Mr. King began receiving letters from the Tennessee Department of Revenue, informing him that because he was a boat dealer and manufacturer, he owed an additional $539 in taxes on the boat.

Of course, Mr. King assumed it was a mistake, so he contacted the auditor assigned to his case. Nope, there was no mistake. The state knew the boat was built by Carter and his dad in their garage, for their own use. Indeed, the state doubled down, warning that the family could face injunctions or misdemeanor charges if they don't pay up.

The Department of Revenue isn't talking. Requests for interviews are rejected, not only for this particular case, but about the issue in general.

When you have the guns and cuffs, own the courts and hold the keys to the jail cells, why be reasonable about $539?

Mr. King, instead of focusing on the piddling $539, should be preparing his operation for an onslaught of other government agencies, now that he's been declared a boat dealer and manufacturer.

Politics vs. the Productive

EarthSky tells of Zombie Ants.

It’s like something out of a horror movie. A parasitic fungus infiltrates the body of a tropical carpenter ant, feeding on it and manipulating its body. The fungus forces the dying ant to the forest understory, an environment more conducive to its growth. The invasion of this fungal body-snatcher culminates with it sprouting a spore-laden fruiting body from the dead ant’s head.

This brings to mind the eternal struggle between the economic means and the political means, as first delineated by Franz Oppenheimer in the early 1900s, and introduced to American readers by Albert Jay Nock in his book "Our Enemy the State" in 1935.

There are two methods, or means, and only two, whereby man’s needs and desires can be satisfied. One is the production and exchange of wealth; this is the economic means. The other is the uncompensated appropriation of wealth produced by others; this is the political means.