Quotulatiousness

January 14, 2019

Lysander Spooner and the US postal system

Filed under: Government, History, Liberty, USA — Tags: , , , — Nicholas @ 03:00

Naomi Mathew recounts the battle between anarchist Lysander Spooner and the United States Post Office:

This is a story about a philosopher, entrepreneur, lawyer, economist, abolitionist, anarchist — the list goes on. As his obituary summarizes, “To destroy tyranny, root and branch, was the great object of his life.” Although he is rarely included in mainstream history, Lysander Spooner was an anarchist who didn’t merely preach about his ideas: He lived them. No example illustrates this better than Spooner’s legal battle against the US postal monopoly.

Born in 1808 in Athol, Massachusetts, Lysander Spooner was raised on his parent’s farm and later moved to Worcester to practice law. Eventually, he found himself in New York City, where business was booming — but not for the Post Office.

The Postal System of the 1840s

In Spooner’s day, government subsidized the cost of building infrastructure used for mail routes. Postage rates paid for these subsidies, which in turn made the rates expensive. For example, in 1840 it cost 18.75 cents, over a quarter of a day’s wages, to send a letter from Baltimore to New York.

Corruption was another issue facing the post office. Positions appeared to change after each election cycle, indicating political cronyism. Congress was also under pressure from the coach contractor lobby, and favorable postage routes were often given to contractors with political connections. Thanks to a legal monopoly it had enjoyed since the Confederation, the Post Office remained the sole legal mail business despite its skyrocketing costs and corruption.

In his book Uncle Sam, The Monopoly Man, William Wooldridge describes how high postal costs led some to defy postal laws: Traveling individuals doubled as temporary, private postmen. By the 1840s, these illicit services were chipping into government revenues. Eventually, a court ruled it legal for individuals (but not companies) to carry mail. As a result, underground mail enterprises sprung up. Agents covertly used the existing rails, coaches, and steamboats to transport letters. It is estimated that in 1845, a third of all letters were transported by private mail firms.

December 17, 2018

Sun Yat-sen – A Killing in Hong Kong – Extra History – #1

Filed under: China, History — Tags: , , , , , — Nicholas @ 04:00

Extra Credits
Published on 15 Dec 2018

Growing up in Honolulu, Sun Yat-sen had an expansive, exciting education, which would inspire him when he moved to Hong Kong as a young adult ready to change the world as a doctor — and as the leader of the “Revive China Society” interested in overthrowing the Qing government.

Sun Yat-sen was a dangerous man. The Qing were right to fear him. After all, he’d bring 2,000 years of imperial rule crashing down.

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November 30, 2018

England: South Sea Bubble – Lies – Extra History

Filed under: Americas, Britain, Business, Economics, Government, History — Tags: , , , , — Nicholas @ 02:00

Extra Credits
Published on 9 May 2015

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No historian is perfect, so it’s important we acknowledge our mistakes where we find them (with the help of our viewers, no less)! After we clear up some discrepancies that emerged during the South Sea Bubble series, we turn to answering some common questions that came up during this series on economic history. In a period where financial masterminds like John Blunt engaged in trickery meant to confuse other people and hide his real activities, it’s no wonder that many viewers had questions about what insider trading is and how Blunt could endlessly inflate stock prices for his unprofitable company. This is a history show, but we do our best to explain! As a bonus, James also reads Robert Knight’s letter to Parliament on the eve of his illegal flight and tells some cool stories about Robert “It was Me” Walpole.

November 29, 2018

England: South Sea Bubble – It Was Walpole – Extra History – #5

Extra Credits
Published on 25 Apr 2015

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Robert Walpole’s attempts to use the South Sea Company scandal to enhance his own ambitions are threatened by the appearance of Robert Knight, a former South Sea employee whose records of corporate bribery implicate Walpole and his friends in Parliament. But faced with threats of retribution if he ever shares these records, Knight flees the country rather than face a public inquiry. Although he gets caught and sent to prison in Antwerp, Walpole deftly engineers his release and escape. With Knight finally gone, Walpole teams up with John Blunt to pin the blame for the South Sea stock bubble on his political opponents, conveniently clearing the way for himself to become essentially the first Prime Minister of England. He also makes sure that all of his own supporters get off easy (if not scot free) for their involvement, and even Blunt walks away from the South Sea Bubble with more money than he started with.

November 28, 2018

England: South Sea Bubble – The Bubble Pops – Extra History – #4

Filed under: Americas, Britain, Business, Economics, Government, History — Tags: , , , , — Nicholas @ 02:00

Extra Credits
Published on 11 Apr 2015

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With the South Sea Company’s value dangerously inflated, Blunt drives one more scheme to raise stock prices – and it finally backfires on him. Early investors (including the famous politician Robert Walpole) seize the opportunity to sell their stock while the value is high, and the general public finally realizes that the South Sea Company has no actual worth. Everyone who didn’t sell their stock in the first round finds themselves suddenly bankrupt as the stock value plummets. Even King George, on vacation when disaster strikes, loses a large amount of the royal fortune. Robert Walpole, however, sees this as an opportunity to make himself a hero of the public. Hiding his own involvement in the South Sea Swindle, he cancels all debts owed for the company’s stock to help put its public investors back on their feet. Despite this, the public demands an inquiry and Walpole must walk a thin line between his facade as defender of the people and the reality of his, his party, and the King’s blatant corruption.

November 27, 2018

England: South Sea Bubble – Buying Out Britain – Extra History – #3

Filed under: Americas, Britain, Business, Economics, Government, History — Tags: , , , — Nicholas @ 02:00

Extra Credits
Published on 28 Mar 2015

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The time has come for Blunt to enact the final act of his scheme: taking on the 31 million pound British debt. When Parliament initially balks at transferring responsibility for that much money to Blunt’s insolvent South Sea Company, he bribes them with special deals on his own stock. Despite a legal clause that should have locked the stock price until the company began paying off the debt, Blunt keeps introducing new plans to inflate the stock price and pocket the money for himself. He does everything from selling stocks on layaway to loaning people money so they could buy more stocks from him, creating an artificial demand for South Sea Company stock that drives the company’s worth up to 300 million pounds: a staggering ten times the initial value of the already stunning debt it had assumed. His success, founded entirely on speculation with no actual revenue from trade, not only starves out other businesses across Britain but exceeds the total amount of money in the country’s entire economy. This bubble can not last.

November 18, 2018

The Toronto Circus Riot of 1855

Filed under: Cancon, History — Tags: , , , , — Nicholas @ 02:00

The History Guy: History Deserves to Be Remembered
Published on 26 Oct 2018

In 1855 Toronto, a fireman and a clown walked into a brothel. What followed would change the course of one of the world’s great cities.

The episode is intended for educational purposes. All events are portrayed in historical context. No graphic depictions of violence are included.

The History Guy uses media that are in the public domain. As photographs of actual events are sometimes not available, photographs of similar objects and events are used for illustration.

Patreon: https://www.patreon.com/TheHistoryGuy

The History Guy: History Deserves to Be Remembered is the place to find short snippets of forgotten history from five to fifteen minutes long. If you like history too, this is the channel for you.

October 2, 2018

QotD: Legal plunder

Filed under: Government, Law, Liberty, Quotations — Tags: , , — Nicholas @ 01:00

Sometimes the law defends plunder and participates in it. Thus the beneficiaries are spared the shame and danger that their acts would otherwise involve … But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them and gives it to the other persons to whom it doesn’t belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish that law without delay — No legal plunder; this is the principle of justice, peace, order, stability, harmony and logic.

Frédéric Bastiat, The Law, 1850.

September 26, 2018

QotD: Offensive and defensive use of the law

Filed under: Government, Law, Quotations — Tags: , , — Nicholas @ 01:00

As long as it is admitted that the law may be diverted from its true purpose — that it may violate property instead of protecting it — then everyone will want to participate in making the law, either to protect himself against plunder or to use it for plunder.

Frédéric Bastiat, The Law, 1850.

September 10, 2018

QotD: Perversion of the law

Filed under: Law, Liberty, Quotations — Tags: , — Nicholas @ 01:00

The law perverted! The law — and, in its wake, all the collective forces of the nation — the law, I say, not only diverted from its proper direction, but made to pursue one entirely contrary! The law become the tool of every kind of avarice, instead of being its check! The law guilty of that very iniquity which it was its mission to punish! Truly, this is a serious fact, if it exists, and one to which I feel bound to call the attention of my fellow citizens.

Frédéric Bastiat, The Law, 1850.

September 3, 2018

Planes, Trains, and… Actually, just Trains

Filed under: History, Railways, USA — Tags: , , , , — Nicholas @ 02:00

Knowing Better
Published on 18 Sep 2016

The railroad has affected your life more than you may have realized. From starting the mail order business to creating some of America’s greatest landmarks, see how this simple transportation system shaped the country we live in today.

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Why Trains Suck in America – Wendover Productions – https://youtu.be/mbEfzuCLoAQ

Photo Credits –
American Waterways/Canals are edits of images I used to teach in 2011 – The originals were from Wikicommons and have long since been removed or updated. No Copyright Information can be found.
The Three Proposed Railroad Routes are edits of images I used to teach in 2013 – The originals were from Wikicommons and have long since been removed or updated. No Copyright Information can be found.

I don’t normally add comments about the daily 2:00am videos, but there are a couple of things in this video that I think needed to be addressed. First, he rather casually skips over the vast increase in American railway building even before the enabling legislation for the transcontinental lines, and misses a great opportunity to explain how important they were in determining the outcome of the American Civil War. Second, and rather more irritatingly, he blithely asserts the common myth about the “Big Oil” conspiracy to buy up and shut down municipal light rail (streetcars, interurban railways, and radials). The various streetcar systems had almost all been economically shaky since the Great Depression (many had to be taken over by the municipalities involved to keep them out of bankruptcy), and the huge increase in private car ownership after World War 2 was the coup de grâce that finished off most of the rest. During the same time, bus routes were encroaching on the streetcar’s territory and had the huge advantage of not being tied to rails (allowing relatively easy re-routing without huge construction costs).

I’ve posted about High Speed Railways a few times before.

August 27, 2018

QotD: The trouble with term limits

Filed under: Politics, Quotations, USA — Tags: , , — Nicholas @ 01:00

I used to be a big supporter of term limits, but I think the evidence at this point is that they actually empowered lobbyists and activist groups, both because politicians going back to the “real world” needed somewhere to work after they left office, and because the politicians were too naive to recognize when they were being taken for a ride by a special interest. The longer I stay in Washington, the more skeptical I am of any silver bullet …

Megan McArdle, commenting on Facebook, 2016-11-11.

August 22, 2018

QotD: Corruption

Filed under: Government, Quotations — Tags: — Nicholas @ 01:00

People do not oppose corruption in politics and government. They oppose only the corruption that does not steer loot and social domination to them. After all, the entire process of so-called democratic government is nothing but corruption writ large and backed by the threat of violent force.

Robert Higgs, “Political and Governmental Corruption Is a Feature, Not a Bug”, The Beacon, 2016-11-04.

July 19, 2018

Crony capitalists of the military-industrial complex

Matthew D. Mitchell comments on some of the problems with government contractors and their all-too-cosy relationship with the government officials who hand out the public’s funds:

… as economist Luigi Zingales explains in his book, A Capitalism for the People, governments contracting with private interests has its own set of risks:

    The problem with many public-private partnerships is best captured by a comment that George Bernard Shaw once made to a beautiful ballerina. She had proposed that they have a child together so that the child could possess his brain and her beauty; Shaw replied that he feared the child would have her brain and his beauty. Similarly, public-private partnerships often wind up with the social goals of the private sector and the efficiency of the public one. In these partnerships, Republican and Democratic politicians and businesspeople frequently cooperate toward just one goal: their own profit.

When President Dwight Eisenhower warned against the “unwarranted influence” of the “military-industrial complex,” he was concerned that certain firms selling to the government might obtain untoward privilege, twisting public resources to serve private ends. It is telling that one of those contractors, Lockheed Aircraft, would become the first company to be bailed out by Congress in 1971.

For many observers, the George W. Bush administration’s “no-bid” contracts to Halliburton and Blackwater appeared to exemplify the sort of deals that Eisenhower had warned of. It is true that federal regulations explicitly permit contracts without open bidding in certain circumstances, such as when only one firm is capable of providing a certain service or when there is an unusual or compelling emergency. In any case, a report issued by the bipartisan Commission on Wartime Contracting in 2011 estimated that contractor fraud and abuse during operations in Afghanistan and Iraq cost taxpayers an estimated $31 to $60 billion. This includes, but is not limited to:

    requirements that were excessive when established and/or not adjusted in a timely fashion; poor performance by contractors that required costly rework; ill-conceived projects that did not fit the cultural, political, and economic mores of the society they were meant to serve; security and other costs that were not anticipated due to lack of proper planning; questionable and unsupported payments to contractors that take years to reconcile; ineffective government oversight; and losses through lack of competition.

Governments may also award contracts to perform a service that has more to do with serving a parochial interest than with providing a benefit to the paying public. For example, Congress may order the Pentagon to procure more tanks even though the Pentagon itself says the tanks aren’t needed. Paying General Dynamics hundreds of millions of dollars to produce unneeded tanks in order to protect jobs in particular congressional districts may be an abuse even if the underlying process by which the contract was awarded is legitimate.

June 30, 2018

Wealthy virtue-signalling hurts the poor

Filed under: Books, Economics, Environment, Politics — Tags: , , , , , — Nicholas @ 03:00

At Catellaxy Files, Rafe Champion discusses some of the points raised by Matt Ridley in his recent book:

Essentially, the poor pay for the virtue-signalling of the rich. Dr Matt Ridley opens chapter 14 of Climate Science: The Facts with some blunt claims.

    Here is a simple fact about the world today. Climate change is doing more good than harm. Here is another fact. Climate change policy is doing more harm than good.

On top of that he points out that the poor are carrying the cost of today’s climate policy. That is something for the ALP [Australian Labour Party] and the social justice warriors to think about.

This should remind people of another great postwar example of destructive virtue-signalling – massive foreign aid to the developing nations aka the Third World. That did more harm than good for the people of the Third World, apart from the crony criminals in power. The great Lord Peter Bauer was onto that very smartly, starting in the 1940s and his findings have been consolidated lately, notably by William Easterly [in] The White Man’s Burden: Why the west’s efforts to aid the rest have done so much ill and so little good. There are exceptions to the rule such as hands-on medical care and private education.

Ridley mentions in passing some of the cases where apparently smart people have made very bad calls, starting with a prominent and wealthy leftwinger who he debated on TV. Faced with the charge that climate policy was hurting the poor he replied “But what about my grandchildren?”. As though the future wellbeing of the presumably affluent and privileged grandchildren of the talking head might be threatened by policies that help the poor who are with us at present. Ridley also cited a son of Charles Darwin who thought that eugenic breeding programs were essential to save civilization and Paul Ehrlich who in 1972 predicted that millions would die due to over-population (prompting the one-child policy in China).

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