Episode 800: North Korea’s Capitalists Listen· 24:06

Even inside North Korea, the most restrictive, socialist regime in the world, there are entrepreneurs. People are dreaming up ideas of services to offer, products to sell, businesses to start. They’re called the ‘donju,’ and they’re part of North Korea’s small middle class. Kim Jong Un, North Korea’s leader, doesn’t throw them in jail.

This is relatively new. For a long time, even tiny acts of capitalism were thought of as ‘honey-coated poison’ by the North Korean government. Private business was banned. It has crept in at the edges slowly, but Kim Jong Un has set two main goals for his country: Build up the nuclear weapons program and grow the economy.

The Republican Waterloo

Conservatives once warned that Obamacare would produce the Democratic Waterloo. Their inability to accept the principle of universal coverage has, instead, led to their own defeat.

.. At precisely the moment we were urging the GOP to march in one direction, the great mass of conservatives and Republicans had turned on the double in the other, toward an ever more wild and even paranoid extremism. Those were the days of Glenn Beck’s 5 o’clock Fox News conspiracy rants, of Sarah Palin’s “death panels,” of Orly Taitz and her fellow Birthers, of Tea Party rallies at which men openly brandished assault rifles.

.. AEI would provide a home for the emerging “reform conservative” tendency. Its president, Arthur Brooks, would speak eloquently of the need for conservatives to show concern for the poor and the hard-pressed working class.

.. The mood then was that supporters and opponents of the Obama administration were engaged in a furious battle over whether the United States would remain a capitalist economy at all.

.. it was precisely because I appreciated its unwelcomeness where I worked that I had launched an independent blog in the first place.
.. I fruitlessly argued through 2009 and 2010 that Republicans should do business with President Obama on health-care reform.
.. It seemed to me that Obama’s adoption of ideas developed at the Heritage Foundation in the early 1990s—and then enacted into state law in Massachusetts by Governor Mitt Romney—offered the best near-term hope to control the federal health-care spending that would otherwise devour the defense budget and force taxes upward.
.. I suggested that universal coverage was a worthy goal, and one that would hugely relieve the anxieties of working-class and middle-class Americans who had suffered so much in the Great Recession.
.. They had the votes this time to pass something. They surely would do so—and so the practical question facing Republicans was whether it would not be better to negotiate to shape that “something” in ways that would be less expensive, less regulatory, and less redistributive.
.. Increasingly isolated and frustrated, I watched with dismay as people I’d known for years and decades incited each other to jump together over the same cliff.

.. There were leaders who knew better, who would have liked to deal. But they were trapped. Conservative talkers on Fox and talk radio had whipped the Republican voting base into such a frenzy that deal-making was rendered impossible. How do you negotiate with somebody who wants to murder your grandmother? Or—more exactly—with somebody whom your voters have been persuaded to believe wants to murder their grandmother?I’ve been on a soapbox for months now about the harm that our overheated talk is doing to us. Yes it mobilizes supporters—but by mobilizing them with hysterical accusations and pseudo-information, overheated talk has made it impossible for representatives to represent and elected leaders to lead. The real leaders are on TV and radio, and they have very different imperatives from people in government. Talk radio thrives on confrontation and recrimination. When Rush Limbaugh said that he wanted President Obama to fail, he was intelligently explaining his own interests. What he omitted to say—but what is equally true—is that he also wants Republicans to fail. If Republicans succeed—if they govern successfully in office and negotiate attractive compromises out of office—Rush’s listeners get less angry. And if they are less angry, they listen to the radio less, and hear fewer ads for Sleepnumber beds.

So today’s defeat for free-market economics and Republican values is a huge win for the conservative entertainment industry. Their listeners and viewers will now be even more enraged, even more frustrated, even more disappointed in everybody except the responsibility-free talkers on television and radio. For them, it’s mission accomplished. For the cause they purport to represent, it’s Waterloo all right: ours.

.. Over the next seven years, Republicans would vote again and again to repeal the Affordable Care Act. Total and permanent opposition to the law would become the absolute touchstone of Republican loyalty. Even Donald Trump, who dissented from so much of the old orthodoxy, retained this piece of the doxology.

.. Some of the conservatives who voted “no” to the House leadership’s version of repeal may yet imagine that they will have some other opportunity to void the law. They are again deluding themselves.

.. Too many people benefit from the law—and the Republican alternatives thus far offer too little to compensate for the loss of those benefits.

.. America committed itself for the first time to the principle of universal (or near universal) health-care coverage. That principle has had seven years to work its way into American life and into the public sense of right and wrong. It’s not yet unanimously accepted. But it’s accepted by enough voters—and especially by enough Republican voters—to render impossible the seven-year Republican vision of removing that coverage from those who have gained it under the Affordable Care Act.

.. Paul Ryan still upholds the right of Americans to “choose” to go uninsured if they cannot afford to pay the cost of their insurance on their own. His country no longer agrees.

.. Health care may not be a human right, but the lack of universal health coverage in a wealthy democracy is a severe, unjustifiable, and unnecessary human wrong.

.. As Americans lift this worry from their fellow citizens, they’ll discover that they have addressed some other important problems too. They’ll find that they have removed one of the most important barriers to entrepreneurship, because people with bright ideas will fear less to quit the jobs through which they get their health care.

.. They’ll find they have improved the troubled lives of the white working class succumbing at earlier ages from preventable deaths of despair.

.. What I would urge is that those conservatives and Republicans who were wrong about the evolution of this debate please consider why they were wrong: Consider the destructive effect of ideological conformity, of ignorance of the experience of comparable countries, and of a conservative political culture that incentivizes

  • intransigence,
  • radicalism, and
  • anger over
  • prudence,
  • moderation, and
  • compassion.

No Wonder Millennials Hate Capitalism

The anti-Communist Victims of Communism Memorial Foundation was alarmed to find in a recent survey that 44 percent of millennials would prefer to live in a socialist country, compared with 42 percent who want to live under capitalism.

..  But given the increasingly oligarchic nature of our economy, it’s not surprising that for many young people, capitalism looks like the god that failed.

..  the rich people who would benefit from the measures passed by the House and the Senate tend to be older (and whiter) than the population at large.

Younger people would foot the bill, either through higher taxes, diminished public services or both. They stand to inherit an even more stratified society than the one they were born into.

.. there’s also an ideology at work, one that sees the rich as more productive and deserving than others.
.. consider what Senator Chuck Grassley, Republican of Iowa, told The Des Moines Register about the need to repeal the estate tax, which falls only on heirs of multimillionaires and billionaires. “I think not having the estate tax recognizes the people that are investing, as opposed to those that are just spending every darn penny they have, whether it’s on booze or women or movies,” he said.
.. Senator Orrin Hatch ..  He went on to rant against the poor: “I have a rough time wanting to spend billions and billions and trillions of dollars to help people who won’t help themselves — won’t lift a finger — and expect the federal government to do everything.” It was unclear whether he was talking about the nearly nine million children covered through CHIP or their parents.
.. You don’t have to want to abolish capitalism to understand why the prospect is tempting to a generation that’s being robbed.

Quit Modifying Capitalism

Profits should be pure, generated from price signals between buyers and sellers.

  • .. Bernie Sanders offers a fine place to start. “Do I consider myself,” he asked at an October 2015 rally, “part of the casino capitalist
  • .. Mr. Gore co-wrote “A Manifesto for Sustainable Capitalism,”
  • .. Thomas Piketty’s now largely discredited book, was published in English. Mr. Piketty called for a tax on dynastic wealth .. the emergence of a new patrimonial capitalism.”
  • .. Nobel Prize winner Joseph Stiglitz tried to one-up Mr. Piketty, complaining in a 2014 article for Harper’s magazine about “phony capitalism.”
  • .. The conspiracy theorist and occasional filmmaker Oliver Stone .. surveillance capitalism
  • .. It never ends. In 2012, Britain’s then-Prime Minister David Cameron talked about “socially responsible and genuinely popular capitalism” and blamed Labour for “turbo capitalism.”
  • ..  China practices state-directed capitalism. The jury is still out.

.. Drop the modifiers. There is only one type of capitalism that works, and it goes like this: Someone postpones consumption, invests his savings to produce a good or service, delights customers, generates profits, and then consumes and invests what’s left in further production. These profits are pure, generated from price signals between buyers and sellers, without favoritism from experts or elites. It isn’t hard to grasp.

.. Most of this was once self-evident, but in 2017 capitalism is losing the mind-share game. Where does all this end up? For something scary, skip the next Stephen King clown movie. Instead read up on postcapitalism and progressive mutualism. It sounds like Venezuela.