Senate Oil Profits Hearings: Life Imitates Atlas Shrugged

Sometimes, unfortunately, life imitates art.
Caroline Baum, in a brilliant column at Bloomberg.com, demonstrates some regrettable parallels between Atlas Shrugged and the recent hearings on oil company profits.
In the wake of record earnings Senators Frist, Domenici, et al elected to question Hank Rearden, er… Exxon CEO Lee Raymond, about his business.
Dominici (as cited in Baum’s column) said:

”I expect the witnesses to answer whether you think your current profits are excessive and to talk about what they intend to do with the reserves and the profit accumulations that they have.”

Raymond’s reply?

“The price is set on the world market by willing buyers and sellers, as to what willing sellers are willing to sell it for and willing buyers are willing to pay for it.”

Ayn Rand once said there were certain real life events she couldn’t put in her novel, since they were so outrageous she’d be accused of inventing them. Sadly, this wasn’t one of them.

Harry Potter and Political Philosophy

Instapundit points us to an interesting article, “Harry Potter and the Half-Crazed Bureaucracy,” scheduled to be published the Michigan Law Review. From the abstract:

This Essay examines what the Harry Potter series (and particularly the most recent book, The Half-Blood Prince) tells us about government and bureaucracy. There are two short answers. The first is that Rowling presents a government (The Ministry of Magic) that is 100% bureaucracy. There is no discernable executive or legislative branch, and no elections. There is a modified judicial function, but it appears to be completely dominated by the bureaucracy, and certainly does not serve as an independent check on governmental excess.
Second, government is controlled by and for the benefit of the self-interested bureaucrat. The most cold-blooded public choice theorist could not present a bleaker portrait of a government captured by special interests and motivated solely by a desire to increase bureaucratic power and influence. Consider this partial list of government activities: a) torturing children for lying; b) utilizing a prison designed and staffed specifically to suck all life and hope out of the inmates; c) placing citizens in that prison without a hearing; d) allows the death penalty without a trial; e) allowing the powerful, rich or famous to control policy and practice; f) selective prosecution (the powerful go unpunished and the unpopular face trumped-up charges); g) conducting criminal trials without independent defense counsel; h) using truth serum to force confessions; i) maintaining constant surveillance over all citizens; j) allowing no elections whatsoever and no democratic lawmaking process; k) controlling the press.
This partial list of activities brings home just how bleak Rowling’s portrait of government is. The critique is even more devastating because the governmental actors and actions in the book look and feel so authentic and familiar. Cornelius Fudge, the original Minister of Magic, perfectly fits our notion of a bumbling politician just trying to hang onto his job. Delores Umbridge is the classic small-minded bureaucrat who only cares about rules, discipline, and her own power. Rufus Scrimgeour is a George Bush-like war leader, inspiring confidence through his steely resolve. The Ministry itself is made up of various sub-ministries with goofy names (e.g., The Goblin Liaison Office or the Ludicrous Patents Office) enforcing silly sounding regulations (e.g., The Decree for the Treatment of Non-Wizard Part-Humans or The Decree for the Reasonable Restriction of Underage Sorcery). These descriptions of government jibe with our own sarcastic views of bureaucracy and bureaucrats: bureaucrats tend to be amusing characters that propagate and enforce laws of limited utility with unwieldy names. When you combine the light-hearted satire with the above list of government activities, however, Rowling’s critique of government becomes substantially darker and more powerful.
Furthermore, Rowling eliminates many of the progressive defenses of bureaucracy. The most obvious omission is the elimination of the democratic defense. The first line of attack against public choice theory is always that bureaucrats must answer to elected officials, who must in turn answer to the voters. Rowling eliminates this defense by presenting a wholly unelected government.
A second line of defense is the public-minded bureaucrat. Some theorists argue that the public choice critique ignores what government officials are really like. They are not greedy, self-interested budget-maximizers. Instead, they are decent and publicly oriented. Rowling parries this defense by her presentation of successful bureaucrats (who clearly fit the public choice model) and unsuccessful bureaucrats. Harry’s best friend’s Dad, Arthur Weasley is a well-meaning government employee. He is described as stuck in a dead end job, in the least respected part of the government, in the worst office in the building. In Rowling’s world governmental virtue is disrespected and punished.
Lastly, Rowling even eliminates the free press as a check on government power. The wizarding newspaper, The Daily Prophet, is depicted as a puppet to the whims of Ministry of Magic. I end the piece with some speculation about how Rowling came to her bleak vision of government, and the greater societal effects it might have. Speculating about the effects of Rowling’s portrait of government is obviously dangerous, but it seems likely that we will see a continuing uptick in distrust of government and libertarianism as the Harry Potter generation reaches adulthood.

Of course, the philosophical significance of the Harry Potter series is old news to Atlasphere members like Shawn Klein!

Reisman: Why the Nazis Were Socialists

Objectivist economist George Reisman has a new article at the Ludwig von Mises Institute titled “Why Nazism Was Socialism and Why Socialism Is Totalitarian.” The article was originally delivered as a lecture at the Mises Institute’s “The Economics of Fascism, Supporters Summit 2005.” It begins:

My purpose today is to make just two main points: (1) To show why Nazi Germany was a socialist state, not a capitalist one. And (2) to show why socialism, understood as an economic system based on government ownership of the means of production, positively requires a totalitarian dictatorship.
The identification of Nazi Germany as a socialist state was one of the many great contributions of Ludwig von Mises.
When one remembers that the word “Nazi” was an abbreviation for “der Nationalsozialistische Deutsche Arbeiters Partei â?? in English translation: the National Socialist German Workers’ Party â?? Mises’s identification might not appear all that noteworthy. For what should one expect the economic system of a country ruled by a party with “socialist” in its name to be but socialism?
Nevertheless, apart from Mises and his readers, practically no one thinks of Nazi Germany as a socialist state. It is far more common to believe that it represented a form of capitalism, which is what the Communists and all other Marxists have claimed.

For more information, keep reading

Hudgins to Speak at Hillsdale College

Ed Hudgins plans to address this interesting topic soon at Hillsdale:

Having Your Economics and Ethics Too
(Or Can Mises’ Subjectivism Lead to Ayn Rand’s Objectivism?)
By Edward Hudgins, Executive Director
The Objectivist Center & Atlas Society
7:30pm, Thursday, November 17, 2005
Roberts Room, Cresge Building
Hillsdale College — Hillsdale, Michigan
Ludwig Von Mises was one of history’s greatest free- market thinkers. But while this key figure in the Austrian School believed there could be a science of the means — praxeology — and thus an objective foundation for economics, he maintained that all ends and thus all ethics ultimately are subjective.
But Hudgins shows that using Mises’ own methodology and focusing on the same phenomenon that he studied — human action — one finds the foundations for an objective ethics as well, a foundation without which a free market is impossible.
For further information, contact Brendan McCurdy, bmmccurdy at hillsdale.edu or 630-631-4897.

Bidinotto: The Republican Betrayal of Individualism

From Robert Bidinotto:

With the recent gasoline price crisis, congressional Republicans had a matchless opportunity to rally public opinion in order to steamroll radical environmentalists, and, at long last, open taboo regions — such as the Arctic National Wildlife Reserve, and offshore regions in the Pacific — to fossil fuel exploration.
But no. Once again, in the face of moral opposition — and just as they did after their 1994 “Republican Revolution” against “big government” — the congressional Republicans have blinked, and backed down. As a result, they have now guaranteed that those vital resources will remain undeveloped for the foreseeable future — and thus have also guaranteed our continuing dependence on the anti-American Muslim world for our energy needs…a dependency that is directly causing the deaths and crippling of thousands of brave young American soldiers.
Okay, I have had it.

If you agree, then keep reading…

TOC Summer Seminar 2006

The Objectivist Center has announced that it will hold its 17th Annual Summer Seminar conference July 1-8, 2006, on the campus of Chapman University. The Chapman campus is located in Orange, California, close to Orange County/John Wayne Airport, Disney World, Huntingdon Beach, and of course everything else in the Los Angeles area. The Seminar program and registration information will be available in early 2006.

TOC on Islamism and Terrorism

Two new articles from the lastest edition of The Objectivist Center‘s The New Individualist.

Ed Hudgins, in “The Means and Ends of Islamists,” shows that the violent means of the Islamists reflect their culture of death and that the silence of their more peaceful co-religionists is moral abdication.

Bruce Thornton, in “Multiculturalism and its Discontents,” explains how multiculturalism is at the root of the London bombings. All the more relevant now that France is suffering the same fate.

Is the Free Market Un-French?

Yes, according to French Prime Minister Dominique de Villepin.
As reported by Debra Sounders on Townhall.com, with 30% of French Muslims unemployed, Interior Minister Nicolas Sarkozy “embraces the sort of Anglo-American free-market economic reforms that should raise employment levels and offer opportunity to the economically disenfranchised.”
Unfortunately, Prime Minister Dominique de Villepin “prefers the government-rich model — government programs and job counseling — and dismisses the Sarkozy approach as un-French.”
Sounders aptly remarks: “There is such a thing as being too French, after all. High unemployment, for example, is very French. Strikes are French. These riots are French.”
For further reading…

Diamond Ring vs. First Edition of Atlas Shrugged

Here’s a cute anecdote from the article “Diamonds Not Always A Bride’s Best Friend,” about the role of diamonds, currently and historically, in wedding engagements:

Sandy Chin, 31, said her feminist side would never allow her to have a ring that, as she puts it, “shows you are the possession of someone else, which is disgusting to me.” So, instead of a ring, her fiance bought her a first edition copy of “Atlas Shrugged” by Ayn Rand.

Bidinotto: Jihad Begins in Europe?

Robert Bidinotto has a terrific new article on the riots in France. He begins:

As many observers have noted, the mainstream media (MSM) have marched in lockstep in their desperation to minimize the role that Islamism may be playing in the wave of rioting and vandalism plaguing France during the past two weeks. Typical of this effort by “reporters” not to report the bald (if politically incorrect) facts is The New York Times of November 5, which declared: “While the vast majority of the young people behind the nightly attacks are Muslim, experts and residents warned against seeing the violence through the prism of religion.” Apparently we are to believe that the more significant causal factor is the fact that they are “youths,” or “young people,” or even “youngsters” — words which appear prominently in every article, in order to bury any rare, passing mentions of the word “Muslim.”
But truth will out, and it’s getting harder and harder for the Leftist press to maintain this fiction. References to Islam are increasing, and even Newsweek now speculates about the role of Islamists in the Paris terror. If this trend continues, pretty soon the MSM might even begin to acknowledge the wisdom in columns by Mark Steyn.
But what is the specific cause of the Muslim uprising in France?

Keep reading…