Quotulatiousness

April 2, 2026

The persistent wish to “seize the means of production”

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

On the social media site formerly known as Twitter, The Rational Animal explains why the din of progressives demanding that “the rich” be dispossessed of their property always leads to the worst kind of results:

This perfectly captures the parasite’s delusion: that wealth is static loot to be seized and redistributed.

Here’s what actually happens when you “repossess all their stuff”:

The producers will rebuild. They’ll create new wealth because that’s what they do. They identify opportunities, solve problems, innovate, build businesses, and generate value. Their wealth came from their minds, not magic.

The looters will consume what they stole at light speed and wind up with nothing. Because they never learned to produce. They only know how to take.

Look at every socialist revolution in history: seize the factories, the farms, the businesses. Within years, everything collapses. The factories stop producing. The farms stop yielding. The wealth evaporates. Venezuela. Cuba. Soviet Union. Zimbabwe. The pattern is identical.

Why? Because wealth isn’t stuff sitting in a vault. Wealth is the ongoing process of human intelligence applied to production. Confiscate a factory and you get the building. You don’t get the knowledge, vision, and competence that made it productive.

The “rich” you want to loot aren’t dragons hoarding gold. They’re producers creating value. Rob them and you rob everyone, including yourself.

You’ll be left with ruins and still blame capitalism.

Update: Fixed missing URL.

March 31, 2026

Reaction to Avi Lewis being elected federal NDP leader

Filed under: Cancon, Economics, Media, Politics — Tags: , , , , — Nicholas @ 03:00

On the social media site formerly known as Twitter, L. Wayne Mathison responds to an ill-informed snipe at @TheFoodProfessor for a post about Avi Lewis:

This take reads like someone who’s never had to meet a payroll or balance a ledger under real pressure.

Accusing the “Food Professor” of being bribed is just noise. No evidence, no numbers, just a conspiracy to avoid the actual argument. Classic move when the facts aren’t cooperating.

I ran a grocery business. Not a theory. Not a model. A real one. Thin margins, constant spoilage risk, price swings, labour costs, supplier pressure, and customers who notice every 10-cent increase. Grocery isn’t some gold mine. It’s a logistics grind with razor-thin profit.

Here’s the part people like this never mention:
Canada’s total grocery profits are roughly $6 billion. Spread that across 40 million people and you’re looking at maybe $12 a month per person if you wiped out every dollar of profit.

So what’s the fantasy here?

Government steps in, runs stores “for the people”, eliminates profit… and somehow prices magically drop while efficiency improves?

Let’s test behaviour, not intentions.

What happens when you remove profit?

No incentive to optimize operations
No accountability for waste
Political hiring instead of performance hiring
Pricing driven by optics, not supply reality
Losses covered by taxpayers … meaning you, again

You don’t eliminate costs. You just hide them and move them.

I lived through high interest rates north of 20%, carried customer debt, and still had to make the numbers work. Government doesn’t operate under that discipline. It can fail indefinitely and call it policy.

Public grocery isn’t “not Marxist”. It’s not even that sophisticated. It’s just naive.

The real issue isn’t ideology. It’s a complete lack of understanding of how incentives drive outcomes.

You don’t fix affordability by replacing people who have to be efficient with a system that doesn’t.

You fix it by increasing competition, reducing regulatory drag, and letting supply actually respond.

Everything else is theatre.

In the National Post, Kelly McParland outlines the scale of challenge Lewis is facing to make the NDP electorally viable again:

Thumbnail of one of Avi Lewis’s campaign shorts

After two weeks on the road [Jagmeet Singh] finally conceded to reality, allowing that while “I would be honoured to serve as prime minister … I don’t want to presuppose the outcome of the election”.

Maybe Lewis should start straight off with that line, since choosing him as leader saves the party from pretending it expects to find itself in power. “The return of the NDP starts today!” Lewis declared in his victory speech, but as the most out-there ideologue of the candidates he defeated he’ll have a harder time convincing ordinary Canadians than he did winning over his fourth-place party. A film-maker and activist, he’s not just left-wing, but way off in a universe of his own.

His ambitions are dazzling: a Canada powered entirely by renewable energy in which everyone gets a guaranteed income, vast infrastructure projects are built to sustain the environment, farmers produce healthier, affordable, cleaner food while homebuilders concentrate on energy-efficient homes for lower income groups. All this paid for by an economy that somehow remains vibrant while its vital energy industry is crippled, jobs are lost, taxes are raised, royalties are increased, government spending balloons, the carbon tax is re-introduced and “the rich” are somehow found to have plenty of excess revenue to cover the costs.

Voters who continue to back the NDP will now know exactly what they’re casting their ballots for. That wasn’t always clear under previous leaders. Thomas Mulcair didn’t hate trade deals or pipelines enough to satisfy party stalwarts deeply hostile to both. To the unyielding, Singh did a deal with the devil when he agreed to prop up Justin Trudeau’s Liberals, even if the decision succeeded in squeezing out some policy victories.

Small victories aren’t in Lewis’s lexicon. He wants a revolution. “This is more than a rigged economy, it is a war on working people”, he declared on Sunday. “It is immoral, it is unCanadian and we cannot let it stand.”

March 19, 2026

Government creates a problem – yet the solution is always “more government!”

Filed under: Bureaucracy, Cancon, Government — Tags: , , , , — Nicholas @ 03:00

On the social media site formerly known as Twitter, L. Wayne Mathison explains the vast drawbacks of asking governments to solve problems:

Government bureaucracy is like a snow machine that keeps blasting, then hires more people to shovel the mess it just made.

We’re told it exists to help. To protect. To serve. Nice story. But in practice, it behaves more like a self-preserving organism. It doesn’t solve problems cleanly. It multiplies them, then offers to manage the mess it helped create.

Here’s the part most people miss. Bureaucracies don’t grow because problems get bigger. They grow because complexity gets rewarded. The more tangled the system, the more valuable the people who run it. That’s not a bug. That’s the incentive structure.

William Niskanen called this decades ago. Bureaucrats maximize budgets, not results. Bigger department, bigger influence. If a problem gets solved too efficiently, the machine loses a reason to exist. So problems don’t disappear. They get “managed”.

Then comes the language game.

Confusion gets dressed up as compassion.
A program no one understands becomes “comprehensive”.
A policy that creates dependency becomes “support”.
Failure becomes “underfunding”.

It’s like hiring a mechanic who loosens parts just to bill you for tightening them later.

Now zoom in on Canada. Then zoom in tighter on Manitoba.

We don’t just have bureaucracy. We have an oversized public sector that’s crowding out the very engine that pays for it. In Manitoba especially, government employment makes up a huge slice of the workforce compared to the private sector that actually generates wealth. More administrators, fewer producers.

And here’s the quiet problem. Public sector growth doesn’t face the same discipline as the private sector. If a business bloats, it dies. If a department bloats, it asks for more funding.

So the balance drifts.

More people administering. Fewer people building, investing, risking.
More rules. Less output.
More spending. Slower growth.

It creates a kind of economic inversion. The part of society that redistributes wealth starts to outweigh the part that creates it. That’s not sustainable. It’s like living off the interest of a bank account you’ve stopped contributing to.

Politicians don’t fix this because growth is easy to sell. Cuts are not. No one gets applause for saying, “We’re going to do less”. So the system expands in one direction only.

Forward. Always forward. Never back.

Meanwhile, taxpayers are handed the bill and told it’s the price of caring.

Here’s the hard reframe. Bureaucracy isn’t malfunctioning. It’s doing exactly what it’s rewarded to do. Expand. Protect itself. Justify its existence.

If you want a different outcome, you need different incentives.

Measure outcomes, not spending.
Reward efficiency, not headcount.
Shrink what doesn’t work, no matter how “important” it sounds.

Because if you don’t trim the machine, it doesn’t stay the same size.

It learns to eat.

March 16, 2026

QotD: Political entrepreneurs and federal subsidies

[In his book The Robber Barons], Josephson missed the distinction between market entrepreneurs like Vanderbilt, Hill, and Rockefeller and political entrepreneurs like Collins, Villard, and Gould. He lumped them all together. However, Josephson was honest enough to mention the achievements of some market entrepreneurs. James J. Hill, Josephson conceded, was an “able administrator”, and “far more efficient” than his subsidized competitors. Andrew Carnegie had a “well-integrated, technically superior plant”; and John D. Rockefeller was “a great innovator” with superb “marketing methods”, who displayed “unequaled efficiency and power of organization”.

Most of Josephson’s ire is directed toward political entrepreneurs. The subsidized Henry Villard of the Northern Pacific Railroad, with his “bad grades and high interest charges” show that he “apparently knew little enough about railroad-building”. The leaders of the Union Pacific and Central Pacific, Josephson notes, “carried on [their actions] with a heedless abandon … [which] caused a waste of between 70 and 75 percent of the expenditure as against the normal rate of construction”. But it never occurs to Josephson that the subsidies government gave these railroads created the incentives that led their owners to overpay for materials and to build in unsafe areas. He quotes “one authority” on the railroads as saying, “The Federal government seems … to have assumed the major portion of the risk and the Associates seem to have derived the profits” — but Josephson never pursues the implication of that passage.

Burton W. Folsum, “How the Myth of the ‘Robber Barons’ Began — and Why It Persists”, Foundation for Economic Education, 2018-09-21.

March 14, 2026

Quid pro quo – something that is given in return for something else

Filed under: Cancon, China, Media, Politics — Tags: , , , , , — Nicholas @ 03:00

In the National Post, Tristin Hopper considers what the Parliamentary floor-crossers got in exchange for their loyalty:

Image from Melanie in Saskatchewan

Nunavut MP Lori Idlout has now become the fourth opposition member to join the Liberals in just the last five months, joining three Conservative MPs.

While there have been more than 100 MP floor-crossings since Canada’s 1867 founding, the circumstances have never looked quite like this. In any prior instance where multiple MPs shifted party loyalties in a short period of time, it was almost always because of a seismic political issue such as First World War conscription or Quebec separatism.

But in this case, all four floor-crossers gave vague reasons for the move, if they even tried to explain it at all. Idlout’s statement, issued by the Liberal Party, explained her switch as endorsing “strong and ambitious government that makes decisions with Nunavut — not only about Nunavut”.

Unmentioned is that the four also saw personal benefits for their defection to the government benches. A cursory summary is below.

Thus far, there are no tangible goodies to d’Entremont’s surprise November floor-crossing. He hasn’t received a position in cabinet, a pay raise or any special titles. What he did seem to secure, however, was his job.

When rumours first began to leak out that the Liberals were actively seeking floor-crossers among the Conservatives, one commonality emerged among the MPs being solicited: They all represented tightly contested ridings that were now polling for the Liberals.

This was particularly true of d’Entremont’s Acadie-Annapolis riding in Nova Scotia. He won it for the Conservatives by just 536 votes in 2025. And given a surge in Liberal popularity across the Maritimes in interim months, it now seemed likely to swap back to the Liberals; which it had done as recently as 2015.

D’Entremont’s former Conservative colleagues would allege quite directly that the defection had been done purely to remain as the MP for Acadie-Annapolis.

After the floor-crossing, Conservative MP Rick Perkins would allege that d’Entremont had told him the weekend prior, “If an election is held now, I will lose my seat. I might as well not run.”

“There is nothing in his floor crossing about principles. It was about keeping his job,” Perkins wrote in a Facebook post.

Ma also represents a tightly contested riding. Markham-Unionville had gone Liberal as recently as 2021, and he won in 2025 with just 50.65 per cent of the vote as compared to 47.05 per cent for his Liberal opponent.

But it only took a few days after the floor-crossing before Ma was conspicuously added to Prime Minister Mark Carney’s delegation headed to the People’s Republic of China and Qatar.

As noted by National Post‘s Chris Nardi at the time, Ma was the only member of the delegation who wasn’t a minister or a parliamentary secretary. His highest applicable rank was that he was vice-chair of the Canada-China Legislative Committee, a group comprising 11 other MPs and senators who didn’t similarly receive a seat on the plane.

March 10, 2026

There’s ordinary virtue signalling, then there’s virtue costuming

Filed under: Media, Politics — Tags: , , , , — Nicholas @ 03:00

On the social media site formerly known as Twitter, L. Wayne Mathison describes what happens when virtue signalling becomes someone’s entire persona:

When Virtue Becomes a Costume

Here’s an old village joke: if a man walks around telling everyone how humble he is, check his pockets. He’s usually carrying a mirror.

That’s roughly how the modern “woke” phenomenon works. It presents itself as moral enlightenment, but most of the time it behaves like a status game, who can signal the most compassion, the loudest outrage, and the strongest allegiance to the fashionable cause of the week.

My definition is blunt: woke politics is moral signalling replacing moral responsibility.

It’s not about solving problems. It’s about performing concern.

And once you start looking at it that way, the pattern shows up everywhere.

The Performance Economy of Virtue

Rob Henderson calls these “luxury beliefs”.

Luxury beliefs are ideas held mostly by wealthy or highly educated people that signal status but impose real costs on everyone else. The people promoting them rarely suffer the consequences.

Think about it.

Defund the police.
Abolish prisons.
Decriminalize hard drugs.
Romanticize homelessness as a “lifestyle choice”.

Who pushes these ideas hardest?

Not the working-class neighbourhood dealing with break-ins. Not the single mother living beside a drug market. It’s usually professors, activists, and celebrities living in safe neighbourhoods with security cameras and gated buildings.

The belief becomes a badge of moral sophistication.

The consequences fall somewhere else.

This is the luxury belief machine.

The Five Laws of Stupidity at Work

Carlo Cipolla’s Five Laws of Human Stupidity explains the rest.

His argument was beautifully cynical: stupidity is not about intelligence. It’s about behaviour.

A stupid person, he wrote, is someone who causes harm to others while gaining nothing themselves.

Sound familiar?

Look around at some modern activism and you’ll see Cipolla’s laws running like background software.

Law #1: Always underestimate the number of stupid people.

Every generation believes it has escaped mass foolishness. Every generation is wrong.

Law #2: Stupidity is independent of education.

A PhD does not vaccinate someone against bad thinking. Sometimes it just gives them fancier vocabulary.

Law #3: A stupid person harms others without benefit.

Policies driven by emotional slogans often damage the very communities they claim to protect.

Law #4: Non-stupid people underestimate stupidity’s power.

This is why sensible people are constantly surprised when destructive ideas gain traction.

Law #5: A stupid person is the most dangerous type of person.

Unlike criminals, they don’t know what they’re doing. And unlike the selfish, they aren’t pursuing rational gain.

They simply push the lever harder.

The Hollywood Example

Even entertainment hasn’t escaped the pattern.

Hollywood increasingly behaves less like a storytelling industry and more like a political signalling club. The pressure to conform is real: careers depend on being publicly aligned with the dominant ideology, and dissent can carry professional consequences.

The incentives are obvious.

Actors gain admiration by championing fashionable causes. They receive praise, awards, and moral approval, often without sacrificing anything material in their own lives.

It’s “virtue” at almost zero cost.

The Moral Time Machine

Then there’s what Bill Maher once joked about: the moral time machine.

Modern activists judge people from centuries ago as if those individuals possessed today’s cultural knowledge and moral vocabulary. It’s a kind of historical self-congratulation, imagining how virtuous we would have been in 1066 if only we had been there.

But that trick isn’t really about history.

It’s about status.

If you can condemn the past loudly enough, you look enlightened in the present.

The Incentive Problem

Here’s the uncomfortable truth.

Most systems don’t run on morality. They run on incentives.

Corporations chase profit.
Media chase attention.
Algorithms chase engagement.
Political activists chase moral prestige.

If the reward structure encourages outrage and virtue signalling, that’s exactly what people will produce.

Not because they’re evil.

Because incentives work.

The Reframe

The real divide in modern politics isn’t left versus right.

It’s performance versus results.

One side asks:

“Does this policy sound compassionate?”

The other asks:

“Did it actually improve people’s lives?”

That’s the question that cuts through the noise.

Because compassion measured by intentions is theatre.

Compassion measured by outcomes is responsibility.

Here’s the test I use now.

When someone proposes a moral crusade, ask three questions:

Who pays the cost?

Who receives the applause?

What happens if the policy fails?

Luxury beliefs collapse under those questions almost instantly.

And the moment the performance stops, something interesting happens.

We can finally start solving the problem.

[NR – emphasis added]

Update, 11 March: Welcome, Instapundit readers! Have a look around at some of my other posts you may find of interest. I send out a daily summary of posts here through my Substack – https://substack.com/@nicholasrusson that you can subscribe to if you’d like to be informed of new posts in the future.

February 21, 2026

Oh Look, They Want a Mercenary Army

Filed under: Europe, Military — Tags: , , , , , — Nicholas @ 04:00

Akkad Daily
Published 20 Feb 2026

Get a country worth fighting for. Join Restore: https://www.restorebritain.org.uk/joi…

February 14, 2026

The EU’s plans to drain the “wine lake” … again

Canada isn’t the only place with rigidly governed agricultural cartels … the European Union has always been a big fan of governing agricultural markets by fiat rather than allowing the markets to sort out how much of which product should be produced. One of the biggest markets actively distorted by EU regulation is the wine industry, where faulty regulations ended up paying for a vast over-supply of wine in the 1980s and 90s. Rather than eliminating the regulatory structures, the EU continues to prefer letting bureaucrats dictate to producers:

When the Common Agricultural Policy was established, it was quickly determined that one of its core objectives would be the protection of farmers, ensuring stable incomes and food security. In the wine sector, this logic translated into strong interventionism aimed at expanding and stabilizing production.

For decades, Brussels subsidized vineyard planting, protected minimum prices, and absorbed producers’ economic risk, disconnecting production decisions from signals of demand. Producing more ceased to be an economic choice and became a politically safe decision.

This approach created a structural market distortion. As wine consumption began to decline across Europe for demographic, cultural, and economic reasons, the artificially incentivized productive structure remained intact and unable to adjust.

It was in this context that, during the 1980s and 1990s, the first major shock occurred, known as the wine lake: massive wine surpluses with no outlet. Even then, Brussels treated this episode as an isolated and temporary phenomenon, ignoring the fact that it was the direct consequence of existing policies. By persisting with the same strategies, the problem ceased to be episodic and became structural.

In the early 2000s, the European Union was finally forced to recognize that the wine crisis was not temporary. However, instead of removing production incentives and restoring the market’s adjustment function, it opted for a new form of intervention: subsidizing the voluntary uprooting of vineyards. The decision to destroy productive capacity ceased to be economic and became administrative, decreed from the European political center, with profound effects across several countries.

This model, presented as temporary, set a dangerous precedent. Rather than allowing less viable producers to exit the market through prices and economic choice, the state began paying for withdrawal, subsidizing the costs of adjustment and normalizing the idea that the correction of public policy errors should be financed with more public money.

This policy did not solve the underlying problem. It merely reduced cultivated area temporarily, while leaving intact the regulatory architecture which had created the initial distortion. The sector became trapped in a cycle of incentivized expansion, predictable crisis, and administrative correction.

It is within this framework that the Wine Package emerges as the European Union’s latest set of measures for the wine sector. The package relies on an administratively planned reduction of supply through financial incentives for vineyard uprooting, complemented by regulatory adjustments, temporary support measures, and crisis management instruments. Instead of allowing the market to adjust to declining consumption, Brussels once again opts for the destruction of productive capacity as a policy tool. Although the package includes support measures and environmental framing, its central axis remains the administrative reduction of supply.

The impact of these decisions is not marginal. The European wine sector represents a significant share of the European Union’s economy, sustaining approximately 2.9 million direct and indirect jobs and contributing more than €130 billion to EU GDP.

January 31, 2026

“… nations are what Kurt Vonnegut would call a ‘granfalloon'”

Filed under: Economics, Europe, History — Tags: , , , , , , , — Nicholas @ 05:00

On the social media site formerly known as Twitter, Devon Eriksen responds to an older tweet about the replacement of “original” Romans during the Republic with other ethnicities over the course of the Empire:

Any time a nation allows slavery, de jure or de facto, the business owning class immediately tries to replace the working class with slaves.

If they succeed, the nation collapses and everyone dies. A nation cannot survive if it’s populated by slaves.

Why?

Because nations are what Kurt Vonnegut would call a “granfalloon” … his word for an association that only exists because people believe in it.

Now Vonnegut, who was a liberal and therefore wrong about everything important, meant to mock the concept of nations and tribes by coining this term. He believed them to be unnecessary throwbacks to humanity’s primitive past … a delusion he was able to sustain because he never had to try existing without one.

Granfalloons are indeed arbitrary — you could base them on anything — but humans cannot survive without them. Because humans are a pack animal.

If you drop your cat off somewhere in the woods at night, assuming he is a healthy and physically fit cat, he will likely survive, regardless of his unhappiness at the sudden deficiency of chin scratches and clean laundry to sleep on.

Try that experiment with your dog, and he’ll die.

Why? It’s not because cats are smarter than dogs. They’re about the same.

It’s because cats are not a pack animal. A cat doesn’t need other cats to survive. The basic unit required to execute all cat survival strategies is one cat.

Dog survival strategies work just fine, too, but they require multiple dogs. A lone dog will die because he cannot execute his survival strategies by himself.

And so it is with humans.

The great error of the classical liberal worldview is that, because history is full of tribes fighting wars over scarce resources, that it was the tribes, not the scarcity, that caused conflict.

So they decided they were going to get rids of tribes, and nations, and religions, all the granfalloons, and just glue everything together with economics. And there would somehow be world peace.

Kurt Vonnegut was a dreamer.

Unfortunately for all of us, he was not the only one.

So the experiment was carried out, and in every single place it was carried out, things got observably, obviously worse. Sometimes “gosh the boomers had it way easier than us” worse, and sometimes “what shall we do these corpses, Comrade Commissar” worse, but always worse.

Because economic incentives alone cannot hold a society together.

Economic incentives, without ethnic or cultural solidarity, get you nothing but massive robbery and fraud.

It’s why the Biden Administration let millions of third world savages into America. It’s why Proctor and Gamble sells you poison food, and why the American Heart Association takes their money to lie to you and say it’s healthy. It’s why every product you buy, from your Tesla to your laptop to your security camera system, tries to spy on you and control how you use the thing you paid for and theoretically own. It’s why you’ve never held the same job for more than three years, because they either laid you off or gave you two percent raises every year until you had to find a new company to pay you what you’re actually worth.

When there is no granfalloon, there is no incentive not to cheat. And no, fear of punishment doesn’t work. The police cannot arrest, try and convict everyone. And when there is no granfalloon, the enforcers themselves have no incentive to actually perform, instead of looking just busy enough to get paid, or taking bribes to look the other way.

An atomized group of individuals, unconnected by a granfalloon, have no morality, because morality isn’t something an individual has. It’s something a tribe has, because what the word “morality” actually means is the system of behavior that tribe members display towards each other.

A slave has no morality. He has no sense of responsibility, not only for the nation, not only for his masters, but even for his fellow slave. He is homo economicus, the man who responds purely to incentives of reward and punishment.

A slave has no granfalloon.

Kurt Vonnegut famously wrote “If you wish to examine a granfalloon, just remove the skin of a toy balloon.” By which he meant that such associations are nothing but a puff of air, and therefore unimportant.

But having been surrounded by air all his life, in abundant supply, Kurt had forgotten that air is important.

You need it for breathing.

Try removing the skin of a SCUBA tank.

December 7, 2025

The great military leaders of the past have been … quirky

Filed under: Bureaucracy, History, Military, USA — Tags: , , , — Nicholas @ 03:00

On the social media site formerly known as Twitter, @InfantryDort considers the clear evidence that most of the greatest generals of history were, at the very least, eccentric:

Most real post I’ve seen all month.

Yes, the process weeds them out.

Until all that remains is some corporatized astroturfed version of … whatever.

Military commanders in the modern era MUST lack personal audacity to some degree. Almost without exception.

Because audacity is “dangerous”. It can be unpredictable. And this is a bad thing in a world obsessed with safety and predictability.

But a military without it, is just one on anti-depressants. You never feel the highest highs or the lowest lows.

You just … exist, in inspirational purgatory.

So you will never see a Napoleon, Patton, Allen, or Sherman ever again.

Their modern equivalents mostly got out as captains because the experience they were promised from history, is now covered in bubble wrap. Wearing a bib and a football helmet.

The modern military is devoid of both victory and defeat. A victory you aren’t allowed to win. A defeat you can explain away. Much of it is due to the American people themselves, and their disdain for violence. At least violence against what sane people classify as enemies.

We have a chance to take it back. A chance to return to glorious and sometimes unhinged leadership. But the rot is thick. And the Empire Strikes Back daily.

My infinite gratitude, and the gratitude of a fawning nation, will rest with those who display the force of will to make it happen.

And crush the corporatization of military leadership once and for all.

The world awaits. And one wonders if our country has the appetite for it all, short of an existential crisis in a war of national survival.

Update, 8 December: Welcome, Instapundit readers! Please do have a look around at some of my other posts you may find of interest. I send out a daily summary of posts here through my Substack – https://substack.com/@nicholasrusson that you can subscribe to if you’d like to be informed of new posts in the future.

November 11, 2025

How not to solve your housing affordability crisis

Filed under: Economics, Government, USA — Tags: , , , , , , — Nicholas @ 04:00

On the social media site formerly known as Twitter, Devon Eriksen explains why allowing fifty-year mortgages are not the solution that financial journalists seem to think they are:

    Wendy O @CryptoWendyO

    I don’t think a 50 year mortgage is bad.
    It gives everyone more flexibility financially
    You can pay a mortgage off early
    Not sure how else to lower home costs in 2025

Buyers: “How much will this house cost me?”

Sellers: “What’s your budget?”

Buyers: “Well, it was 500K, but with these new fifty year mortgages, I think it could stretch to million.”

Sellers: “I have an astonishing coincidence to report.”

Look, I don’t know exactly who’s retarded enough to need to hear this, but if you throw money at something, you get more of it.

Which means that if you subsidize demand, you get more demand.

And if you have the same supply, and more demand, price goes up.

This is how the federal Stafford Loan program made college a gateway to permanent debt slavery. Subsidize demand, price goes up.

The reason people don’t understand this is that most people are only smart enough to think about individuals, not populations.

They think if you have more money, you can buy more things, as if things come from the item store in a Japanese console RPG, where the store always has infinity stuff to sell you, and infinity money to buy your loot.

People who are capable of thinking about large groups quickly realize that money is just a way of distributing things.

Like, there’s a limited supply of things, and you’re just choosing who gets them. Having more money doesn’t make more things.

Except … it should, shouldn’t it?

Eventually?

Like, if apples get super expensive, because somebody invented a new kind of apple that’s so delicious that everyone wants them, then the price of those apples goes up, so more people start growing them.

So why doesn’t that work with houses and colleges?

Why don’t the super-inflated prices of those things inspire profit-minded people to make more?

It’s almost as if there were some sort of gatekeeper, whose permission you needed to make a house or a university.

But that’s impossible, because this is a totally capitalist country, so you can just do things, right?

Ian Runkle/Runkle of the Bailey chimes in:

Okay, let’s talk about 50 year mortgages.

First, let’s talk about what sets the price in a market where there’s more demand than supply. It’s set by what people can afford to pay, which means the payment/month.

What that means in practical terms is that the total price isn’t the limiter. It’s the monthly payment.

So, if X house is going for a price that has a 2500/month payment, the market is going to land total prices on a 2500/month payment.

So, increasing the mortgage terms makes things more affordable for about six months before the market adjusts. After that, it stops making it more affordable.

But “affordable” here doesn’t mean inexpensive. In fact, quite the opposite. Extending from a 30 year to a 50 year mortgage is likely to double the cost of credit.

But that’s before the prices adjust upward to “eat” the supposed affordability gains.

This doesn’t make houses more affordable, it makes them more expensive by far.

November 1, 2025

EBTpocalypse imminent?

Filed under: Bureaucracy, Food, Government, USA — Tags: , , — Nicholas @ 03:00

The US government’s extended “shutdown” may trigger the loss of Supplemental Nutrition Assistance Program (SNAP) benefits to around 10% of America as of Saturday. A few years ago, Nathan Mayo pointed out that despite the good intentions of the SNAP program, it isn’t actually doing the job it is meant to be performing:

A recent administrative action has permanently increased benefits for the Supplemental Nutrition Assistance Program (SNAP) by 25 percent. Unfortunately, this historic boost fails to address the structural problems that plague this nearly 60-year-old program.

The official Supplemental Nutrition Assistance Program (SNAP) webpage proudly proclaims that, “SNAP provides nutrition benefits to supplement the food budget of needy families so they can purchase healthy food …”

To that admirable end, the program formerly known as food stamps distributed $79 billion to 40 million people last year. Yet this desire to provide wholesome food to needy families conflicts with clear evidence that wholesome food is not what they think they need. Whether they play by the rules or not, people receiving SNAP benefits currently spend between 70-100 percent of that benefit on things other than healthy food.

Government researchers determined that average SNAP recipients increase their food expenditure by only 30 percent of the value of their benefits. In other words, a person previously spending $300 on food a month who qualifies for $100 of food stamp benefits will start spending $330 on food and shift the $70 from his existing budget to other purposes. This surprisingly low percentage suggests that food is not recipients’ top priority, as people who were in dire need of food would be expected to boost their food budget by the full value of the benefits.

What of the hope that needy families will buy nutritious food? According to a study of a major retailer, recipients spend about 20 percent of their total grocery budget on junk food, with soft drinks as the top purchase—enough to supply a family of four with 20 two-liters of soda per month. Given the marginal amount of SNAP spent on food and the typical benefits for a family, SNAP literally expands the grocery budget by the exact amount needed to cover the junk food. SNAP recipients also spend about 27 percent less on fruits and vegetables than non-SNAP households. This difference cannot be attributed to a lack of access because around 85 percent of SNAP purchases are made at large chain grocery stores with vast produce selections. However, one factor in these choices is likely smaller grocery budgets and the fact that fresh produce is more expensive.

A less savory contributor to this poor nutrition may be that SNAP encourages unhealthy purchases through the “house money” effect. When gamblers win money, they are less careful with their winnings since they view the “house money” as more disposable than their own cash. Similarly, when people receive SNAP dollars, they are sometimes less careful about their purchases than they would be with their hard-earned dollars.

On the one hand, the lack of SNAP benefits might be lower impact than expected, or it might mean most major American cities go “full Mad Max“:

There are 41.7 million Americans slurping up Supplemental Nachos And Porkrinds (SNAP) benefits. That’s an amazing number, and it shows just how far down the bread and circuses route that we’ve gone. I was surprised at the number, but I can now surmise that the only people voting for Democrats are single white women and freeloaders. But I repeat myself.

The federal government shutdown is, as I write this, dragging into its fourth week. I’m generally pretty happy about that since the impact to almost everyone I know is … zero. However, that may soon change. EBT cards, (EBT stands for Entitled Bums Treats) are about to have a zero balance.

The Democrats in the Senate have voted a dozen times as I write this to not fund the SNAP (Socialist Nourishment And Pampering) program. The reason? This is one of their key weapons against Trump. They want to blame Trump for not having a budget because it won’t fund the SNAP (Scam Network for Appetite Pandering) program. Since people who use EBT (Endless Bailout for Takers) aren’t generally the ones who pay attention to anything that takes longer than 17 seconds, they’ll buy it.

Some states (Virginia, for one) realize that the place will look like Mad Max in by Monday if the pizza rolls stop flowing, and have found some cash in the couch cushions to kick the can down the road. New Jersey doesn’t even own a couch, so they have no money, and Connecticut has mobilized their National Guard for emergency ramen drops.

No more swiping for that purple drank or Hot Pockets®. When the EBT (Everyone But Taxpayers) card goes dry, life may get … interesting.

What will happen? “Mostly peaceful” flash mobs looting grocery stores. These flash mobs will make the 2020 riots look like a church picnic gone wrong because someone demanded gluten-free tofu.

Because SNAP (Subsidized Nuggets for Apathetic Parasites) isn’t just a program: it’s the duct tape holding urban America’s powder keg together. As mentioned, there are 41.7 million people, about 12.3% of the U.S. population, who rely on those cards for daily food.

H/T to Clayton Barnett for that link.

Oh, but wait … yet another judge has issued a ruling directing the federal government to ignore the lack of congressional approval or funding:

An order today from a federal judge in Massachusetts requires the Trump administration to pay SNAP benefits even though Congress hasn’t funded the current operation of the program.

Judge Indira Talwani, an Obama appointee, concludes that people will be harmed if SNAP benefits are not provided, and Congress previously appropriated contingency funds for emergencies in the SNAP program, so there’s no need for current appropriations — the executive branch must use emergency and contingency funds to pay for current operations despite the absence of current appropriations.

[…]

Defendants — the Trump administration — are required to use contingency funds to pay for current operations, whether or not Congress has funded current operations. A court has just concluded that a federal program must operate in the absence of current appropriations. That’s … an interesting choice.

Update, 3 November: Welcome, Instapundit readers! Please do have a look around at some of my other posts you may find of interest. I send out a daily summary of posts here through my Substack – https://substack.com/@nicholasrusson that you can subscribe to if you’d like to be informed of new posts in the future.

October 28, 2025

Arguments against importing skilled workers

Filed under: Business, Cancon, Economics, Government, Media, Politics — Tags: , , , , — Nicholas @ 03:00

I’ve been against the importation of huge numbers of unskilled workers — which we have been doing at an ever-increasing rate over the last ten years — but I generally accepted the need for bringing in those immigrants with skills and talents we needed. On his Substack, Spaceman Spiff argues against even skilled immigration:

In most Western countries there is a determined campaign to normalize skilled immigration. It is not just pursued but celebrated as both enlightened and necessary for our survival.

This is so much a part of the West we overlook the observation it is rejected in most parts of the world.

Foreign people now compete with us inside our borders rather than safely outside. Individuals with whom we will typically share no history, heritage or even outlook, all needed for a stable society. In some cases, groups hostile to our way of living and unwilling to maintain it, even working to undermine it, a recipe for conflict.

When explained in plain English it clearly is an unusual thing for anyone to accept.

We need skilled workers

The importation of skilled workers is always sold as a positive. They are educated or they bring niche talents. They improve our competitiveness to help us take on the world.

The sales pitch is relentless. Even those uncomfortable with rapid demographic change parrot claims about the benefits of foreign workers who then compete with domestic workers.

We are told we are lucky to be able to attract such amazing talent as if the immigrants are choosing from a buffet of impressive options rather than fleeing poverty and corruption as is usually the case.

When all else fails, and the narratives are questioned, they trot out the classic line, that the immigrants do the work our own people won’t do. Naturally they erase the last clause in that sentence, they do the work our own people won’t do for the money offered.

Interchangeable units

We are told many of the blessings of the West would not be possible without importing talented foreigners, despite all evidence to the contrary, not the least of which is the social, economic and technological black holes many of them come from.

If they are so talented why are their homelands so disastrous?

Such obvious questions are discouraged. Instead we are encouraged to think of it as gaining access to the best from around the world, as if countries are just collections of interchangeable economic units.

We are told it is like building up a sports team. The emphasis is on the excellence of the players. The world-class performance is a consequence of being able to cast such a wide net.

But it is really more like drafting in men to play in women’s sports leagues.

October 15, 2025

QotD: Taxes in a zero elasticity world

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

The problem with most politicians is when they enact a law, they seldom ask, “Then what?” They assume a world of what economists call zero elasticity wherein people behave after a tax is imposed just as they behaved before the tax was imposed and the only difference is that more money comes into the government’s tax coffers. The long-term effect of a wealth tax is that people will try to avoid it by not accumulating as much wealth or concealing the wealth they accumulate.

Walter E. Williams, “Let’s Not Waste a Crisis”, Townhall.com, 2020-05-12.

September 25, 2025

David Friedman on markets, governments and whether we need either?

Filed under: Economics — Tags: , , , , — Nicholas @ 02:00

Adam Smith Institute
Published 16 May 2025

​When markets go awry, who is to blame? Some blame greedy profiteers, whilst others blame governments for tinkering with incentives and supply chains. Where does the truth lie? And what role should the government play when markets go wrong?

​​​Professor David Friedman is a physicist, leading free-market economist and Professor Emeritus of law at Santa Clara University. The son of Nobel Prize-winning economist Milton Friedman, David has authored many textbooks on free-market and libertarian theory. In 1973, he published The Machinery of Freedom, which has been ranked by Liberty magazine as one of the “Top Ten Best Libertarian Books” of all time.

TIMESTAMPS

0:00 – Intro
1:00 – What is a market failure?
2:44 – Restaurant analogy
4:15 – Negative externalities
5:00 – Positive externalities
5:50 – Malls
6:55 – Radio
7:40 – Price System
8:48 – Why most economists aren’t libertarians?
9:26 – Government action is a political market
12:30 – Secure property rights for future benefits
15:27 – Stalin
16:15 – Military examples
18:20 – Teaching
19:47 – Desert example
20:55 – Conclusion
22:19 – End

Older Posts »

Powered by WordPress