Cutting Angels’ Wings

Senator Chris DoddCongress has passed or contemplated so many blunders of late that I, for one, am finding it harder and harder to muster fresh outrage toward every new one. But this latest being cooked up by Chris Dodd deserves a special shout out:

First, Dodd’s bill would require startups raising funding to register with the Securities and Exchange Commission, and then wait 120 days for the SEC to review their filing. A second provision raises the wealth requirements for an “accredited investor” who can invest in startups—if the bill passes, investors would need assets of more than $2.3 million (up from $1 million) or income of more than $450,000 (up from $250,000). The third restriction removes the federal pre-emption allowing angel and venture financing in the United States to follow federal regulations, rather than face different rules between states.

All the prerogatives over private businesses; all the power over health care, now near absolute; all the dabbling in the inner workings of financial institutions; in short, all the regulation in the world, couldn’t satisfy this government. Are the Democrat legislators ever going to have enough? Or is their regulatory fetish feverishly looking for new, exotic objects?

Read the rest in Commentary Magazine.

Jeffrey Sachs sucks: “Poverty Trap” debunked

I was peripherally acquainted with Jeffrey Sachs’ work from a while ago, and didn’t think much of it. Nothing seemed to distinguish him from the many misguided Keynesians who dominate the public arena of mainstream economics by default nowadays. But while all purist free-enterprise champions are alike in what they advocate, I guess every dull little statist economist is a statist in his/her own way, with a unique master plan for development, each involving creative offshoots of applied Communism, some more deranged than others.

Sachs’ uniqueness doesn’t end there: He is not your run-of-the-mill statist economist always on the perpetual brink of choking on his own triviality. He knows what he is and he certainly knows what he is doing. Unlike most laughable economists who sound so stupid only because they cannot see how overly seriously they take themselves, Jeffrey Sachs is pure self-aware evil!

Fascista Sachs

In his interview with Steven Colbert he sounds like a crook and a charlatan. Listen to him talk, pay attention to his smile, the look on his face, and tell me if you don’t see a man who knows he is lying on the spot. There is nothing misguided about him, he is fully premeditated in what he is doing.

Hanging out with Bono and Angelina Jolie has got to make Sachs second-handedly feel like a superstar, and second-hand glory is more then enough for a pathetic authoritarian creature to get off on. He knows he will be long dead before his voodoo economics falls out of fashion so he’s completely safe and comfortable riding the wave of popularity propelled by the cumulative mediocrity of Oprah-worshiping drones in particular, and the entire ecosystem of leftist-strife spewers in general. Good for him!economist rock-star

Note in the Colbert interview how cheaply he is pandering to the moonbat base by spewing venom on the military and W. Bush. Sachs is befuddled at how “the President” has allotted to the crusade against malaria (read: handouts to Africa) for the next five years, the measly equivalent of the daily budget of the military. That makes no sense “in his book/s”, since the military is just killing people and not helping anyone, whereas Sachs could save the world with that cash! Oh brother… They just have trouble figuring out anything at all in Washington these days. Instead of signing Sachs a blank check, they give him a laughable $1.5 billion to work with.

If only “the President” were a feudal lord free to piss the spoils from his taxpayer vassals on grandiose personal-charity events to his heart’s content! W. Bush is certainly under no obligation to give any money at all; it is in fact arguable that he is under an implicit constitutional obligation to not spend taxpayer money on handouts to other countries, which generally end up benefiting only their dictators and some distinguished ungrateful parasites like Sachs, whose genial administrative plans for that money are sure to entail much more than just a multi-billion-dollar mosquito-net shopping-spree.


It is obvious to me that Jeffrey Sachs is a conman, but it might not be obvious to you, so I will stop pushing on that front because at the end of the day it’s not so relevant whether he is a crook or just a misguided moron, but rather whether his economics adds up. So let’s turn to his economic ideas and consider them on their own merits. Everything Jeffrey Sachs has said (and I expect him to ever have to say) about development pivots around the “poverty trap”, a conjecture whose gist can be safely summarized as follows:

Poor countries are so poor today because they started out so poor for one reason or another, that their people cannot even minimally afford to save today to accumulate capital for investment. And it takes a critical mass of investment to achieve any tangible results in development, since for example, a bridge constructed only half-way through is of no use, but once it is fully built, it will rock the world! But the dirt-poor subSaharan Africans cannot afford to save for projects that will deliver results the day after tomorrow: they would starve by tomorrow if they cut their consumption every-so-slightly today to give rise to investment! So you see, they’re stuck in a Poverty Trap, and we the West need to give them just enough aid for them to make it through the initial hump, to get out of the trap. They’d be all set from there on.

This is the focal point of Sachs’ argument for development. Please watch carefully while this snotty undergrad blasts off Mr. Smarmy Harvard PhD with a single unpretentious quasi-rhetorical question:

If the key to development is escaping this poverty trap, then wouldn’t foreign direct investment be perfectly capable of doing the job instead of foreign aid?

The opposite of Sachs’ booga-booga poverty crap should normally be observed: countries starting out at the very bottom of the developmental ladder for “one reason or another” should grow at rates much faster than normal due to the proverbial catch-up effects. Investment in India returns a whooping 19% on average! Countries too poor to save for themselves don’t need to: rich foreigners can supply the capital, the natives only have to freely accommodate it. Everybody wins, and no Big Plan is needed, just a native government that sufficiently tolerates free enterprise.

But there is no foreign investment going on in Africa. Investors won’t inject their funds into those countries because the volatility of institutional thuggery that doesn’t give a shit about its citizens’ life, liberty, and property, let alone the property of foreign investors, is not conducive to profit-generation. Africa doesn’t need any handouts: they just fatten its dictators, cripple whatever free independent spirit its people have, give parasitic jobs to an army of bureaucrats, and hold these countries back from moving towards freedom and self-reliance. What Africa desperately needs is government, of the kind that will let its people be. The best thing that could ever happen to the continent would be for America to colonize it and govern it according to its constitution for a century or so.

But Jeffrey Sachs urges governments to throw money to a cause which no private investor is willing to back. There would be no returns from it, no end to poverty through it, and no end to it, period… just handouts after handouts after handouts. He knows it too, if you read between the lines he is calling it what it is in so many words: perpetual charity.

And being the authoritarian cock that he is, he won’t stop at urging people to donate individually and privately. His great cause, his Big Plan is larger than life: not only private investors won’t walk the walk, but even private philanthropists will not give enough to satiate Sachs. The Government is his only hope, the only agent rich and careless enough to finance his Big Scheme. And despite receiving insane amounts of taxpayer money, he yet bites the fat hand feeding him, complaining that the US government won’t just give him any number he fancies. Every cent that he does receive is taken by force, since he has not been able to raise it voluntarily through cheesy U2 concerts, private charity, and private investment combined. It’s a $1.5 billion no one else but the government would give him, and it’s still not enough, it’s never enough.

BonoSachsJeffrey Sachs makes me sick.

I rest my case…