Monday 2 August '10 show notes

  • Guests:
    • William Yeatman of the Competitive Enterprise Institute.
    • Jim Gilchrist, co-founder of The Minuteman Project and co-author (with Jerome Corsi) of "Minutemen: The Battle to Secure America's Borders".
  • Topics:
    • How do we live in America after the American Dream has died?
    • As global warming consumes the world with heat, fires and floods...how can the shills for the fossil fuel industry continue to sow doubt and confusion?
    • The Big Green Buy: How Obama can use the government's purchasing power to spark the clean-energy revolution
    • "Give Me Your Papers" law is in effect ... do you want big government involved in our interaction with labor?
  • Bumper Music:
  • Today's newsletter has details of today's guests and links to the major stories and alerts that Thom covered in the show, plus lots more. If you haven't signed up for the free newsletter yet, please do. If you missed today's newsletter, it is in the archive.
  • Quote: "What a country calls its vital economic interests are not the things which enable its citizens to live, but the things which enable it to make war. Gasoline is much more likely than wheat to be a cause of international conflict." -- Simone Weil (1909-1943).
  • Article: "Alexander Hamilton's 11 point plan)".
    A full view having now been taken of the inducements to the promotion of manufactures in the United States, accompanied with an examination of the principal objections which are commonly urged in opposition, it is proper, in the next place, to consider the means by which it may be effected. In order to a better judgment of the means proper to be resorted to by the United States, it will be of use to advert to those which have been employed with success in other countries. The principal of these are:
    1. Protecting duties -- or duties on those foreign articles which are the rivals of the domestic ones intended to be encouraged.
    Duties of this nature evidently amount to a virtual bounty on the domestic fabrics; since, by enhancing the charges on foreign articles, they enable the, national manufacturers to undersell ;all their foreign competitors. It has the additional recommendation of being a resource of revenue. Indeed, all tile duties imposed on imported articles, though with an exclusive view to revenue, have the effect, in contemplation, and, except where they fill on raw materials, wear a beneficent aspect towards the manufacturers of the country.
    2. Prohibitions of rival articles, or duties equivalent to prohibitions.
    This is another and an efficacious mean of encouraging national manufactures; Of duties equivalent to prohibitions, there are examples in the laws of the United States, but they are not numerous. It might almost be said, by the principles of distributive justice; certainly, by the duty of endeavoring to secure to their own citizens a reciprocity of advantages.
    3. Prohibitions of the exportation of the Materials of Manufactures.
    The desire of securing a cheap and plentiful supply for the national workmen, and where the article is either peculiar to tile country, or of peculiar quality there, the jealousy of enabling foreign workmen to rival those of the nation with its own materials, are the leading motives to this species of regulation. It is seen at once, that its immediate operation is to abridge the demand, and keep down the price of the produce of some other branch of industry -generally speaking, of agriculture-to the prejudice of those who carry it on; and though, if it be really essential to the prosperity of any very important national manufacture, it may happen that those who are injured, in the first instance, may, be, eventually, indemnified by the superior steadiness of an extensive domestic market, depending on that prosperity; yet, in a matter in which there is so much room for nice and difficult combinations, in which, such opposite considerations combat each other, prudence seems to dictate that the expedient in question ought to be indulged with a sparing hand.
    4. Pecuniary bounties.
    This has been found one of the most efficacious means of encouraging manufactures, and is, in some views, the best. Though it has not yet been practised upon by the Government of the United States (unless the allowance on the expiration of dried and pickled fish and salted meat could be considered as a bounty), and though it is less favored by public opinion than some other modes, its advantages are these:
    A. It is a species of encouragement more positive and direct than any other, and, for that very reason, has a more immediate tendency to stimulate and uphold new enterprises, increasing the chances of profit, and diminishing the risks of loss, in the first attempts.
    B. It avoids the inconvenience of a temporary augmentation of price, which is incident to some other modes; or it produces it to, a less degree, either by making no addition to the charges on the rival foreign article, as in the case of protecting duties, or by making a smaller addition. The first happens when the fund for the bounty is derived from a different object (which may or may not increase the price of some other article, according to the nature of that object), the second, when the fund is derived from the same, or a similar object, of foreign manufacture. One per cent. duty on the foreign article, converted into a bounty on the domestic, will have an equal effect with a duty of two per cent., exclusive of such bounty; and the price of the foreign commodity is liable to be raised, in the one case, in the proportion of one per cent.; in the other in that of two per cent. Indeed the bounty, when drawn from another source, is calculated to promote a reduction of price; because, without laying any new charge on the foreign article, it serves to introduce a competition with it, and to increase the total quantity of the article in the market.
    C. Bounties have not, like high protecting duties, a tendency to produce scarcity.
    D. Bounties are, sometimes, not only the best, but the only proper expedient for uniting the encouragement of a new object.
    The true way to conciliate these two interests is to lay a duty on foreign manufactures of the material, the growth of which is desired to be encouraged, and to apply the produce of that duty, by way of bounty, either upon the production of the material itself, or upon its manufacture at home, or upon both.
    Pecuniary bounties are, in most cases, indispensable to the introduction of a new branch. Bounties are especially essential in regard to articles upon which those foreigners, who have been accustomed to supply a country, are in the practice of granting them.
    The continuance of bounties on manufactures long established, must almost always be of questionable policy: because a presumption would arise, in every such case, that there were natural and inherent impediments to success. But, in new undertakings, they are as justifiable as they are oftentimes necessary.
    5. Premiums
    These are of a nature allied to bounties, though distinguishable from them in some important features.
    Bounties are applicable to the whole quantity of an article produced, or manufactured, or exported, and involve a correspondent expense. Premiums serve to reward some particular excellence or superiority, some extraordinary exertion or skill, and are dispensed only in a small number of cases. But their effect is to stimulate general effort;
    6. The exemption of the materials of manufactures from duty.
    The policy of that exemption, as a general rule, particularly in reference to new establishments, is obvious.
    Of a nature, hearing some affinity to that policy, is the regulation which exempts from duty the tools and implements, as well as the books, clothes, and household furniture, of foreign artists, who come to reside in the United States-an advantage already secured to them by the laws of the Union, and which it is, in every view, proper to continue.
    7. Drawbacks of the duties which are imposed on the materials of manufactures.
    Such drawbacks are familiar in countries which systematically pursue the business of manufactures; which furnishes an argument for the observance of a similar policy in the United States; and the idea has been adopted by the laws of the Union, in the instances of salt and molasses. It is believed that it will be found advantageous to extend it to some other articles.
    8. The encouragement of new intentions and discoveries at home, and of the introduction into the United States of such as may have been made in other countries; particularly, those which relate to machinery.
    This is among the most useful and unexceptionable of the aids which can be given to manufactures. The usual means of that encouragement are pecuniary rewards, and, for a time, exclusive privileges. The first must be employed, according to the occasion, and the utility of the invention or discovery. For the last, so far w respects " authors and inventors," provision has been made by law. It is customary with manufacturing nations to prohibit, under severe penalties, the exportation of implements and machines, which they have either invented or improved. As far as prohibitions tend to prevent foreign competitors from deriving the benefit of the improvements made at home, they tend to increase the advantages of those by whom they may have been introduced, and operate as an encouragement to exertion.
    9. Judicious regulations for the inspection of manufactured commodities.
    This is not among the least important of the means by which the prosperity of manufactures may be promoted. It is, indeed, {255} in many cases, one of the most essential. Contributing to prevent frauds upon consumers at home, and exporters to foreign countries; to improve the quality, and preserve the character of the national manufactures…
    10. The facilitating of pecuniary remittances from place to place --
    A general circulation of bank paper, which is to be expected from the institution lately established, will be a most valuable mean to this end.
    11. The facilitating of the transportation of commodities.
    There is, perhaps, scarcely any thin" which has been better calculated to assist the manufacturers of Great Britain, than the melioration of the public roads of that kingdom, {256} and the great progress which has been of late made in opening canals. Of the former, the United States stand much in need;
    These examples, it is to be hoped, will stimulate the exertions of the Government and citizens of every State. There can certainly be no object more worthy of the cares of the local administrations; and it were to be wished that there was no doubt of the power of the National Government to lend its direct aid on a comprehensive plan. This is one of those improvements which could be prosecuted with more efficacy by the whole, than by any part or parts of the Union. "Good roads, canals, and navigable rivers, by diminishing the expense of carriage, put the remote parts of a country more nearly upon a level with those in the neighborhood of the town. They are, upon that account, the greatest of all improvement.”
    It may confidently be affirmed, that there is scarcely any thing which has been devised, better calculated to excite a general spirit of improvement, than the institutions of this nature. The are truly invaluable.
    In countries where there is great private wealth, much may be effected by the voluntary contributions of patriotic individuals; but in a community situated like that of the United States, the public purse must supply the deficiency of private resource. In what can it be so useful, as in prompting and improving the efforts of industry?
    All which is humbly submitted.
    ALEXANDER HAMILTON,
    Secretary of the Treasury.
  • Clip: Theodore Roosevelt. "Social and Industrial Justice", Oyster Bay, New York, c. August, 1912. Recorded on wax cylinder by Thomas Edison.
    "We stand for a living wage. Wages are subnormal if they fail to provide a living for those who devote their time and energy to industrial occupations. The monetary equivalent of a living wage varies according to local conditions, but must include enough to secure the elements of a normal standard of living--a standard high enough to make morality possible, to provide for education and recreation, to care for immature members of the family, to maintain the family during periods of sickness, and to permit a reasonable saving for old age.

    Hours are excessive if they fail to afford the worker sufficient time to recuperate and return to his work thoroughly refreshed. We hold that the night labor of women and children is abnormal and should be prohibited; we hold that the employment of women over forty-eight hours per week is abnormal and should be prohibited. We hold that the seven-day working week is abnormal, and we hold that one day of rest in seven should be provided by law."
  • Member of the day was Yvette O, who won a copy of "Unequal Protection: How Corporations Became "People" - And How You Can Fight Back" for posting "November election" on the message board.

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