THE INCREDIBLE BREAD MACHINE
Starts off by giving an example of an Amish person that has his two horses as the IRS came in and took them away from him for the fact that he didn’t payed his taxes. They auction them for 400$ and because he owed $380, they returned him $20. This is not logical for the viewpoint that he has not used a single service from the state and they are taking away from him his profit from his present in order to give him money after when he is old enough that he can’t take care for himself.
Chapter 1
“The capitalist were the exploiters, the reset of the nation the exploited.”
There was unrestrained competition on the one hand and monopoly on the other –both were bad.
Against human dignity, and in the nation’s moral and spiritual values.
Government participation began to bring order out of the chaos and social justice out of the economic tyranny of the “robber barons”. This is what history is saying in the books.
What is the tyranny of the robber barons?
Laissez faire capitalism is an economic system of voluntary exchange between individuals without interference from the government.
Subsidies, franchises, land grants and associated gvnt involvement which are not characteristics of laissez faire capitalism.
In a free economy if a company is mismanaged, an opposition group of stockholders can gain control.
It is our best interest to give low rates and do all we can to develop the country and create business.- James Jerome hill
Central pacific railroad was very expensive and it was not achieved through the mechanism of a free market, but by legislative action
What does it mean to exacting them? P20
Distributive justice, equality
What is the nature of the services railroads?
The relative absence of government controls enabled new competitors to spring up, and in the end it was the consumer who benefited.
It was not the reformer or the politician that ended the grim necessity for child labor; it was capitalism.
There was unrestrained competition on the one hand and monopoly on the other –both were bad.
Against human dignity, and in the nation’s moral and spiritual values.
Government participation began to bring order out of the chaos and social justice out of the economic tyranny of the “robber barons”. This is what history is saying in the books.
What is the tyranny of the robber barons?
Laissez faire capitalism is an economic system of voluntary exchange between individuals without interference from the government.
Subsidies, franchises, land grants and associated gvnt involvement which are not characteristics of laissez faire capitalism.
In a free economy if a company is mismanaged, an opposition group of stockholders can gain control.
It is our best interest to give low rates and do all we can to develop the country and create business.- James Jerome hill
Central pacific railroad was very expensive and it was not achieved through the mechanism of a free market, but by legislative action
What does it mean to exacting them? P20
Distributive justice, equality
What is the nature of the services railroads?
The relative absence of government controls enabled new competitors to spring up, and in the end it was the consumer who benefited.
It was not the reformer or the politician that ended the grim necessity for child labor; it was capitalism.
Chapter 2
Boom and bust business cycles are characteristics of capitalism (stated)
A money market free from government intervention provides the ideal exonomic stabilizer, the interest rate
What low interest rates indicate: if low, people are willing to lend, they are willing to forego immediate consumption for the sake of future profits.
This money then goes for loans to businessman. If many people do this there would be abundant and interest rates will fall.
What high interest rates indicate: money for lending is in short supply. The higher rats discourage investment in long term capital goods for which no secure market will exist.
The day of reckoning can be postponed by further credit expansion, but it cannot be evaded permanently.
Artificial credit expansion might be caused by direct government control of credit. In any case the result of this monetary inflation will be an interest rate held at an artificially low level, this setting the stage for a boom and bust cycle.
Prior to the crash of 1837, the principal problem was the unsound paper currency by the state banks. The bust by 1837 was followed by the gvt managed inflation attending the Civil War.
A money market free from government intervention provides the ideal exonomic stabilizer, the interest rate
What low interest rates indicate: if low, people are willing to lend, they are willing to forego immediate consumption for the sake of future profits.
This money then goes for loans to businessman. If many people do this there would be abundant and interest rates will fall.
What high interest rates indicate: money for lending is in short supply. The higher rats discourage investment in long term capital goods for which no secure market will exist.
The day of reckoning can be postponed by further credit expansion, but it cannot be evaded permanently.
Artificial credit expansion might be caused by direct government control of credit. In any case the result of this monetary inflation will be an interest rate held at an artificially low level, this setting the stage for a boom and bust cycle.
Prior to the crash of 1837, the principal problem was the unsound paper currency by the state banks. The bust by 1837 was followed by the gvt managed inflation attending the Civil War.
Chapter 3
What the government subsidizes, to an appreciable extent it controls.
“the old trick is of turning every contingency into a resource for accumulating force in the government”
only by permanent reference to a stable standard can a currency be kept sound and can the citizens of a nation protect themselves from the narcotic of politically, inspired inflation.
It can be anything other than gold. Gold is used for the durability, limited supply and aesthetic value, it is a global acceptance as a valued commodity.
By its ability to influence credit, government can bring the business cycle under control by: it can raise interest rates to damp out a boom and it can lower them to stimulate business in order to avoid a depression.
Government is the principal cause of a boom and bust cycle.
Money is not wealth, it is only a medium of exchange. True wealth is in the goods and services that people can actually use.
Higher salary higher taxes, higher cost of living, the only who benefits is the government, because they will charge you more taxes.
What is fair competition?
Damned if you do damned if you don’t.
Illegal steps to monopoly?
Basic law of economies is that prices are not set arbritarily by a business, but are determined by the demand for a product.
What is the antitrust?
But the present as well as the future is always changing to meet ever new economic conditions.
Two kinds of monopolies: coercive and natural
Natural monopoly exists by virtue of the size of the market which it serves and the size of the company itself.
Coercive monopoly: through the use of physical force, or fraud, prevents competitors from entering the market.
New deal meant accumulation of force where the bureaucrat extends his control over the economy.
Years ago the federal government undertook to subsidize cotton farmers. But then it was discovered that the persistently high price of American cotton was hurting cotton exports. So the government subsidized exporters. But then American mill owners pointed out that foreing mills were getting American cotton cheaper than American mills could get it. So now the American mills are being subsidized. And sos the growers, the exporters, and the mills are now all indebted to the state for assitance. And what the state subsidizes, to an appreciable extent it controls. “the old trick”.
Gold- global acceptance as a valued commodity
Gold was nationalized in 1934
Gold would be used by the government for “spending programs” which would keep the economy moving.
Artificial increase
When government increases its own purchasing power via the printing press, it only diminishes the purchasing power elsewhere in the economy.
First the government through its central bank, creates conditions of easy bank credit. Also, overa period of years governments spends more tan it takes in, and the resulting federal deficit is financed by creating more paper money in the banking system. The influx of new money and credit forces prices upward. Having tried to create prosperity” by monetary inflation, and the finding that prices rise steeply, the government usually claims that it needs controls to curb the price increases which it has caused. It needs control, it asserts, in order to curb the inflation which it created.
Controls, and possibly dictatorship, follow inflation as day follows night.
United States v. Aluminum Co. the Alcao case.
In 1888 Alcoa produced ten pounds of aluminum daily at $8.00 a pound. By the late 30s, when the original suit was brought, the output had increased to 300 milions pounds yearly, and the price had dropped to 20 cents a pound.
On the free market every company is faced with the possibility of competition, even if at a given time it appears to have a monopoly in its market. The competition will come from companies selling alternative products or newly discovered materials possibly far superior to the older products.
Other companies are restricted by law from entering into competition. Postal office, transit system, telephone company, and other companies are not allowed to compete with them.
Non Efficiency of the monopolies. U.S Postal Service
No one but the government is allowed to deliver first class mail, and no one is allowed to put anything in your mailbox. An airmail letter from Chicago to Miami takes an average of 58 hours to be delivered compared to the 23 hours it took in 1961.
Consumer pays higher prices because of the lack of competition
It has a deficit (not paying property or social security taxes) stills has a $1.7 billion deficit which is underwritten by the treasury.
Consumer has to cover the cost of any deficit as well.
Min. wage
We cannot make a man worth a given amount by making it illegal for anyone to offer him less. We merely deprive him of the right to earn the amount that his abilities and opportunities would permit him to earn, while we deprive the community of the moderate services he is capable of rendering. In brief for a low wage we substitute unemployment.
The higher the minimum wage rises, the less economic it is to employ them.
Goods or services priced higher than demand justifies will not find a buyer on the free market.
Labor unions
Unions are specially exempted from the antitrust laws, thus they can conspire to monopolize but business cannot. Legislation passed to protect weak unions which can get whatever they want for themselves at the expense of other workers and consumers.
Government contributes to artificial surpluses and artificial shortages of commodities through various price control programs.
Hoover administration (after GD) in an effort to keep commodities stable, decided on a program to subsidize the farmers, hoping to keep the bottom from failing out of agriculture prices and saving the farmers from bankruptcy.
The grain stabilization corporation used $500 million to purchase surplus grain, but the sum was used up shortly and had failed to stabilize prices of the three major commodities in the program- wheat, cotton, and wool.
The cost to the nation from this program was higher unemployment and wasted resources that came at a time we could not afford them.
When the government sets a price minimum price on a product and that price is higher than the free market price, an artificial surplus of the product results, when a government sets a maximum price on a product that is lower than the market price, an artificial shortage of that product results.
“the old trick is of turning every contingency into a resource for accumulating force in the government”
only by permanent reference to a stable standard can a currency be kept sound and can the citizens of a nation protect themselves from the narcotic of politically, inspired inflation.
It can be anything other than gold. Gold is used for the durability, limited supply and aesthetic value, it is a global acceptance as a valued commodity.
By its ability to influence credit, government can bring the business cycle under control by: it can raise interest rates to damp out a boom and it can lower them to stimulate business in order to avoid a depression.
Government is the principal cause of a boom and bust cycle.
Money is not wealth, it is only a medium of exchange. True wealth is in the goods and services that people can actually use.
Higher salary higher taxes, higher cost of living, the only who benefits is the government, because they will charge you more taxes.
What is fair competition?
Damned if you do damned if you don’t.
Illegal steps to monopoly?
Basic law of economies is that prices are not set arbritarily by a business, but are determined by the demand for a product.
What is the antitrust?
But the present as well as the future is always changing to meet ever new economic conditions.
Two kinds of monopolies: coercive and natural
Natural monopoly exists by virtue of the size of the market which it serves and the size of the company itself.
Coercive monopoly: through the use of physical force, or fraud, prevents competitors from entering the market.
New deal meant accumulation of force where the bureaucrat extends his control over the economy.
Years ago the federal government undertook to subsidize cotton farmers. But then it was discovered that the persistently high price of American cotton was hurting cotton exports. So the government subsidized exporters. But then American mill owners pointed out that foreing mills were getting American cotton cheaper than American mills could get it. So now the American mills are being subsidized. And sos the growers, the exporters, and the mills are now all indebted to the state for assitance. And what the state subsidizes, to an appreciable extent it controls. “the old trick”.
Gold- global acceptance as a valued commodity
Gold was nationalized in 1934
Gold would be used by the government for “spending programs” which would keep the economy moving.
Artificial increase
When government increases its own purchasing power via the printing press, it only diminishes the purchasing power elsewhere in the economy.
First the government through its central bank, creates conditions of easy bank credit. Also, overa period of years governments spends more tan it takes in, and the resulting federal deficit is financed by creating more paper money in the banking system. The influx of new money and credit forces prices upward. Having tried to create prosperity” by monetary inflation, and the finding that prices rise steeply, the government usually claims that it needs controls to curb the price increases which it has caused. It needs control, it asserts, in order to curb the inflation which it created.
Controls, and possibly dictatorship, follow inflation as day follows night.
United States v. Aluminum Co. the Alcao case.
In 1888 Alcoa produced ten pounds of aluminum daily at $8.00 a pound. By the late 30s, when the original suit was brought, the output had increased to 300 milions pounds yearly, and the price had dropped to 20 cents a pound.
On the free market every company is faced with the possibility of competition, even if at a given time it appears to have a monopoly in its market. The competition will come from companies selling alternative products or newly discovered materials possibly far superior to the older products.
Other companies are restricted by law from entering into competition. Postal office, transit system, telephone company, and other companies are not allowed to compete with them.
Non Efficiency of the monopolies. U.S Postal Service
No one but the government is allowed to deliver first class mail, and no one is allowed to put anything in your mailbox. An airmail letter from Chicago to Miami takes an average of 58 hours to be delivered compared to the 23 hours it took in 1961.
Consumer pays higher prices because of the lack of competition
It has a deficit (not paying property or social security taxes) stills has a $1.7 billion deficit which is underwritten by the treasury.
Consumer has to cover the cost of any deficit as well.
Min. wage
We cannot make a man worth a given amount by making it illegal for anyone to offer him less. We merely deprive him of the right to earn the amount that his abilities and opportunities would permit him to earn, while we deprive the community of the moderate services he is capable of rendering. In brief for a low wage we substitute unemployment.
The higher the minimum wage rises, the less economic it is to employ them.
Goods or services priced higher than demand justifies will not find a buyer on the free market.
Labor unions
Unions are specially exempted from the antitrust laws, thus they can conspire to monopolize but business cannot. Legislation passed to protect weak unions which can get whatever they want for themselves at the expense of other workers and consumers.
Government contributes to artificial surpluses and artificial shortages of commodities through various price control programs.
Hoover administration (after GD) in an effort to keep commodities stable, decided on a program to subsidize the farmers, hoping to keep the bottom from failing out of agriculture prices and saving the farmers from bankruptcy.
The grain stabilization corporation used $500 million to purchase surplus grain, but the sum was used up shortly and had failed to stabilize prices of the three major commodities in the program- wheat, cotton, and wool.
The cost to the nation from this program was higher unemployment and wasted resources that came at a time we could not afford them.
When the government sets a price minimum price on a product and that price is higher than the free market price, an artificial surplus of the product results, when a government sets a maximum price on a product that is lower than the market price, an artificial shortage of that product results.
Chapter 4 Kneading Bread
So long as the individual does not initiate force or fraud against another individual he should be free to associate or not to associate with whomever he chooses- this is a fundamental right of all citizens in a free society.
Legislation which seeks forcibly to segregate or integrate private property should be opposed because both activities constitute a violation of the right of individuals to dispose of their property as they see fit.
Since government in a free society must treat all citizens equally, the right to property applies equally to all individuals.
Government chooses to violate the right of some people in order to grant privileges to those it previously failed to protect.
Government lacks the knowledge necessary for success because information is scarce and costly in the absence of markets.
Government take resources from the public but use them to maximize their own welfare
Liberty is lost when government consumes private economic resources.
Under conditions of voluntary exchange in free markets, a racial tensions and conflict are kept to a minimum.
Need does not establish the right to violate the rights of others-
October 1973 11 million individuals receiving Aid to Families with Dependent Children. 33% over 1970 were there were 8.3 million
Nyc 328,000 in 1960. 1972 grown to 1,275,000.
Government is notoriously inefficient when it comes to welfare programs. San diego program for dependent children of the court during 1973 spent $944,532 for administration and only $322,384 on the actual support and care of these children.
Individuals have voluntarily given great amounts of money and time to help those in need. As they want to rather than the government decides for them.
Ought and must help those in need contradicts the very meaning of freedom
In a free society the individual is not compelled to serve others. In a free society is not the proper function of the government to impose that decision by force.
Feeling of satisfaction
Mandatory- resentment is frequent
Private charity
A right and demand from others.
If the government didn’t have a welfare program, people would be more inclines to provide protection for themselves. If the government plan were competitive, people who wanted to join it would, and people who found they could get a better deal elsewhere would.
Legislation which seeks forcibly to segregate or integrate private property should be opposed because both activities constitute a violation of the right of individuals to dispose of their property as they see fit.
Since government in a free society must treat all citizens equally, the right to property applies equally to all individuals.
Government chooses to violate the right of some people in order to grant privileges to those it previously failed to protect.
Government lacks the knowledge necessary for success because information is scarce and costly in the absence of markets.
Government take resources from the public but use them to maximize their own welfare
Liberty is lost when government consumes private economic resources.
Under conditions of voluntary exchange in free markets, a racial tensions and conflict are kept to a minimum.
Need does not establish the right to violate the rights of others-
October 1973 11 million individuals receiving Aid to Families with Dependent Children. 33% over 1970 were there were 8.3 million
Nyc 328,000 in 1960. 1972 grown to 1,275,000.
Government is notoriously inefficient when it comes to welfare programs. San diego program for dependent children of the court during 1973 spent $944,532 for administration and only $322,384 on the actual support and care of these children.
Individuals have voluntarily given great amounts of money and time to help those in need. As they want to rather than the government decides for them.
Ought and must help those in need contradicts the very meaning of freedom
In a free society the individual is not compelled to serve others. In a free society is not the proper function of the government to impose that decision by force.
Feeling of satisfaction
Mandatory- resentment is frequent
Private charity
A right and demand from others.
If the government didn’t have a welfare program, people would be more inclines to provide protection for themselves. If the government plan were competitive, people who wanted to join it would, and people who found they could get a better deal elsewhere would.
Chapter 5 Burnt toast
A dictator cannot stay in power without controlling the sources of wealth.
The best practical guarantee of political freedom is that economic system in which the sources of wealth are privately owned and controlled, rather than concentrated in the hand of the state.
The surest guarantee of political and personal freedom has been the free market.
Laissez faire capitalism: an economic system in which all trade is based on voluntary exchange of goods and services, with government acting only to protect the participants from the use of force or fraud.
Freedom is the ability to act without hindrance or restraint.
Capitalism: men are free to buy and sell and trade the products of their own lives free from interference
Socialism- interference and control.
The best practical guarantee of political freedom is that economic system in which the sources of wealth are privately owned and controlled, rather than concentrated in the hand of the state.
The surest guarantee of political and personal freedom has been the free market.
Laissez faire capitalism: an economic system in which all trade is based on voluntary exchange of goods and services, with government acting only to protect the participants from the use of force or fraud.
Freedom is the ability to act without hindrance or restraint.
Capitalism: men are free to buy and sell and trade the products of their own lives free from interference
Socialism- interference and control.
Chapter 6 Staff of Life
Individualist recognizes as concerns only those relationship which he has voluntarily entered.
If all associations are voluntary, then the result is a free society in which each individual can make the most of his or her life. Only condition then is that no individual or group of individuals violate the rights of any other individual or group of individuals.
If men are compelled by law to serve the interests of others, it is not cooperation- it is called SLAVERY.
When each individual is allowed to live his life to its fullest extent without subjection to compulsion, then he is achieving the greatest good for himself. Since the initiation of force is not permitted in a free society, each individual is free to pursue his goals to the limit of his own capabilities. However, if the right of the individual to live in accordance with his own principles is prevented by state force, the individual’s good is incalculably reduced. If the good for each individual is substrantially reduced, then it follows that the common good is substantially reduced.
If all associations are voluntary, then the result is a free society in which each individual can make the most of his or her life. Only condition then is that no individual or group of individuals violate the rights of any other individual or group of individuals.
If men are compelled by law to serve the interests of others, it is not cooperation- it is called SLAVERY.
When each individual is allowed to live his life to its fullest extent without subjection to compulsion, then he is achieving the greatest good for himself. Since the initiation of force is not permitted in a free society, each individual is free to pursue his goals to the limit of his own capabilities. However, if the right of the individual to live in accordance with his own principles is prevented by state force, the individual’s good is incalculably reduced. If the good for each individual is substrantially reduced, then it follows that the common good is substantially reduced.
Chapter 7 Better bread than dead
Only human have rights. The rights which humans have are property
It then must follow that if production is necessary to life, and you own your life, then what you produce must belong to you, or there is no meaningful right to your own life.
The state controls your property. You just have the title
It then must follow that if production is necessary to life, and you own your life, then what you produce must belong to you, or there is no meaningful right to your own life.
The state controls your property. You just have the title
Chapter 8 Baker's Dozen
The case for economic freedom rests primarily on the consistency of the free market with man’s essential nature, on the basic morality of its system of rewards and punishments, on the protection it gives to the integrity of the individual.
Free Market- may conduct man’s lifelong search for purpose in his own way, in which each day he may order his life according to his own vision of his destiny, suffering both the agony of his errors and the pleasure of his successes.
Only government function- prevent initiation of force or fraud against its people by any individual group or government.
Capitalism will do is provide human beings with the material means of survival and the freedom to improve their lives in accordance with their own wishes.
Free Market- may conduct man’s lifelong search for purpose in his own way, in which each day he may order his life according to his own vision of his destiny, suffering both the agony of his errors and the pleasure of his successes.
Only government function- prevent initiation of force or fraud against its people by any individual group or government.
Capitalism will do is provide human beings with the material means of survival and the freedom to improve their lives in accordance with their own wishes.