freedom is moral – Outrun Change

Magic of the price signal to change production levels.

Fourteen wells on one pad, located on the southeast side of Williston, N.D. Photo by James Ulvog.

The double black swan of COVID-19 pandemic from the demand side and Saudi Arabia flooding the market from the supply side is creating a sales problem and storage problem for the oil industry.

Regulators in Texas are thinking about about ordering a pro-rate reduction in production. In other words, they are considering giving each producer an order on how much to cut.

North Dakota has no such plans.

North Dakota is planning to rely on capitalism to rapidly adjust production.

Continue reading “Magic of the price signal to change production levels.”

The 2010’s: best decade in history.

Matt Ridley explains the best improvement in living standards for us humans over a single decade is the decade that ends today, 12/31/19.

(Cross-post from my other blog, Freedom is Moral.)

He explained his point from multiple directions on 12/21/19 in Spectator: We’ve just had the best decade in human history. Seriously.

A few of his points that caught my interest:

The rate of extreme poverty in the world has dropped from 60% when he was born to under 10% in this decade. If you ache to seek less people in dirt eating poverty that is a wonderful thing.

Continue reading “The 2010’s: best decade in history.”

“Magic without wizards”, or, why is your favorite bread on the shelf when you want it?

Consider merely the way that your favorite bread is always available, usually from many bakeries. And at the time you want. The bakery doesn’t know whether you will stop in on your way to work, during lunch, or after having dinner.

How can it be that several bakeries know to have your choice of bread available, whether sourdough loafs, whole wheat biscuits, rye rolls, croissants, or cranberry bagels? How did they know to order enough yeast, oil, and flour? How did they know what mix to bake before the sun came up?

How did the wholesalers know enough to deliver the right amount of flour to all the pizzerias, bakeries, and pastry shops?

How did the farmers know enough to plant the right amount of wheat, oats, barley, and rye last spring to harvest enough this fall to satisfy all those bakers?

Hmm. What could be getting all those people working together to make sure my favorite and your favorite bread is available when you or I want it?

Ponder these and many more questions just in terms of having bread on the shelf in this video, called “It’s a wonderful loaf:”

[youtube=https://youtu.be/ljULutAUL7o?t=33]

The answer of how all that happens is readily available for all who want to find it.

Continue reading ““Magic without wizards”, or, why is your favorite bread on the shelf when you want it?”

Why I am so optimistic – 3

The future is so bright we need sunglasses. Image courtesy of DollarPhotoClub.com

The number of people working in manufacturing has been declining for many years. Those job losses will continue at the same time as technology disrupts other industries causing the loss of more jobs.

This is not a new concept. Technological advances have devastated farm employment over the last 150 years.

(Cross-post from my other blog, Nonprofit Update.)

Prof. Thomas Tunstall pondered Where the New Jobs Will Come From. Sub headline on his 11/4/15 article said:

In 2007 iPhone application developers didn’t exist. By 2011 Apple had $15 billion in mobile-app revenues.

Consider the percentage of the population employed in agriculture over time: Continue reading “Why I am so optimistic – 3”

Why I am so optimistic – 2

200 years ago subsistence agriculture was the norm across the planet. Photo courtesy of DollarPhotoClub.com — 200 years ago brutal poverty was the norm across the planet. Not so today. Photo courtesy of DollarPhotoClub.com

Previously mentioned when I look at long-term economic trends I am incredibly optimistic. When I look at the headlines this morning or news from the political world, I am very discouraged.

(Cross-post from my other blog, Nonprofit Update.)

To see one illustration of why I am so optimistic for the long-term, check out a column by Glenn Reynolds at USA Today: Actually, things are pretty good / Free markets and free inquiry have changed the historic ‘norms’ of poverty and violence.

Earlier post summarized in one paragraph what caused this radical improvement.

Here are a final two points from the article I’d like to highlight:

Second, it is possible for us collectively to turn back history.

Continue reading “Why I am so optimistic – 2”

Why I am so optimistic – 1

When I look at the political news or any news in general I get very pessimistic about our future.

In contrast, when I look at the amazing things happening beyond the headlines in today’s newspaper I feel incredibly optimistic.

Consider that private companies are developing the technology for space exploration. Consider the energy revolution created by hydraulic fracturing and horizontal drilling. Consider radical changes in technology that are making so many things easier, faster, and cheaper. Consider that anyone that wants to do so can publish their own book, distribute their own music, or create a feature movie.

As a tiny illustration, look at my company and pastimes. Technology allows me to run a high quality CPA practice without any staff. In my spare time I am a publisher and journalist. Anyone in Europe or North America or most of Asia could easily do the same and at minimal cost.

(Cross post from my other blog, Nonprofit Update.)

When I look at long-term economic trends I am incredibly optimistic.

For yet one more explanation of why that is the case, consider a column by Glenn Reynolds at USA Today: Actually, things are pretty good / Free markets and free inquiry have changed the historic ‘norms’ of poverty and violence.

Until relatively recently, an illness-filled short life of dirt-eating poverty was the normal condition for practically everybody on the planet. In the last 100 or 200 years life has gotten radically better for practically everyone.

Continue reading “Why I am so optimistic – 1”

Do you really want to give up your freedom and become a serf?

What could possibly go wrong with giving a leader the power to fix all our problems? There is a great chance said leader will use that power to force people to fix things. You could wind up being told in microscopic detail every single thing you can do.

That would merely cost you your freedom and make you a serf.

In musical terms, that might be called, oh, perhaps something like Serfdom USA:

[youtube=https://youtu.be/JoDcM0bH8AY]

Continue reading “Do you really want to give up your freedom and become a serf?”

More comments from winner of this year’s Nobel award in economics

Cover of Prof. Deaton's book, used under fair use, courtesy of Amazon.com — Cover of Prof. Deaton’s book, used under fair use for this review, courtesy of Amazon.com

Prof. Angus Deaton won the 2015 Nobel award in economics. Mentioned this earlier.

His contribution to expanding the frontier of economics knowledge is to study development and poverty from the consumption side instead of income side. This approach looks at what can people buy instead of what income they have.

Fun article talking about some of his ideas was in the Financial Times on October 12: Nobel Prize winner Angus Deaton shares 3 big ideas.

Inequality

Continue reading “More comments from winner of this year’s Nobel award in economics”

Fort Union Trading Post brochure shows the beauty of trade

During our September vacation in North Dakota, we were able to visit Fort Union Trading Post and Fort Buford. Both were a lot of fun to see.

The brochure produced by the National Park Service for the Fort Union Trading Post national historic site 25 miles southwest of Williston has lots of fun comments. I want to focus on the wages at the time and the wonderful beauty of free trade.

Continue reading “Fort Union Trading Post brochure shows the beauty of trade”

To sort through the question of how to share economic and health progress with everyone, check out a book from the winner of this year’s Nobel award in economics

Why have we seen such dramatic improvement in average wealth and average life expectancy everywhere in the last 100 or 200 years? What has led to a radical reduction in the number of people living in dirt-eating poverty in the last 50 years?

Over the last few years I have focused a lot of my reading on economics and history trying to figure out the answers to those questions. Why?

If we figure out the answer to those questions we can continue in the same direction. If we sort out how we got here, we can share that strategy with those who have not shared in the progress. If you want a different phrasing, we can radically narrow economic inequality within countries and between countries if we can answer those questions. We can help get even more people out of dirt-eating poverty.

(Cross posted from my other blog, Nonprofit Update.) Continue reading “To sort through the question of how to share economic and health progress with everyone, check out a book from the winner of this year’s Nobel award in economics”

Do you want to help lift another billion people out of dirt eating poverty or do you want to feel good about yourself?

Glenn Reynolds at Instapundit on 9/24:

If your goal is to lift people from poverty, capitalism does what nothing else does. So, if that’s your goal, you should support capitalism.

On the other hand, if your goal is to feel good about yourself, then choose another economic system.

Help people get out of poverty or feel good about yourself – economic policies and positions tend to do one or the other, not both. Which do you choose?

The source of wealth, as explained by two musicians.

Frank Zappa and Bob Dylan explain where jobs, growth, prosperity, and wealth come from.

Hint: it isn’t from government.

“A Business Lesson by Frank Zappa”

[youtube=https://www.youtube.com/watch?v=TWXUatVuxQg&feature=player_detailpage]

[youtube=https://www.youtube.com/watch?v=TWXUatVuxQg]

(Title: A Business Lesson By Frank Zappa – youtube name in case link fails: TWXUatVuxQg )

(Link: https://www.youtube.com/watch?v=TWXUatVuxQg )

He puts out $250,000 of his own money to get a tour ready. He takes all that risk expecting it will pay off later. Here’s the deal: Continue reading “The source of wealth, as explained by two musicians.”

“I, Egg”, or, how many millions of people have to cooperate for you to boil one egg?

Check out Exxon-Mobil’s commercial. Try to take a completely wild guess how many people are involved in getting one egg to your house and the number of people and millions of dollars of investment needed to get a bit of natural gas to the stove:

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=PmD8B64vSM8]

Continue reading ““I, Egg”, or, how many millions of people have to cooperate for you to boil one egg?”

In addition to gracious help from Indians, what moved the Pilgrims from starving to thriving?

The first winter for the Pilgrims was terrible. Between starvation, pneumonia, and tuberculosis, about half died.

The second winter was terrible, again with little food. Those who survived the first two winters only did so by the goodness of the Native Americans who graciously shared their food.

The third winter was far better, with plenty of food. In a few years, there was enough abundance that the Pilgrims had paid off their debt to those who financed their trip. They were alive, thriving, and free of debt.

Those are a few highlights of the Pilgrims’ story told by Karl Denninger in his article from 2006, which is reposted at Market-Ticker: The Truth About Thanksgiving.

What caused the change from starving to thriving is the part of the story I never heard growing up.

Continue reading “In addition to gracious help from Indians, what moved the Pilgrims from starving to thriving?”

Want to improve the lives of people at the bottom? Then provide economic freedom.

(Cross-post from my other blog, Freedom is Moral.)

“My family and I have succeeded by following the path to freedom. But that path is on the verge of vanishing. What we’re starting to see here in America now is a growth in the size and the scope of government that is now starting to look like the governments that we left behind.”

Here is how to lift people up the economic ladder:

Advancing economic freedom is the best way to improve human well-being, especially those at the bottom.

That’s the path to moving out of poverty and economic success. Check out this video from LIBRE Initiative:

[youtube=http://www.youtube.com/watch?v=yNHywGefNnQ&feature=player_embedded]

Continue reading “Want to improve the lives of people at the bottom? Then provide economic freedom.”