So we’re not running out of oil?

Plentiful Petroleum

by George Giles

As the first decade of the twenty-first century draws to a close it is worth reviewing topics that may impact every man, woman and child. The disastrous Bush Administration pulled the legs out from under the baby boomers retirement with his inability to veto any spending bill. He has even crippled the future of the unborn. Lil’ Bush launched a global war on an adjective (terrorism) without any strategic objective. Previous wars had nouns as the subject. Social spending increased as well, not to mention the subversion of the Constitution and the Bill of Rights. Obama HAS taken up right where Lil’ Bush left off. Immense deficits and a monstrous national debt are threatening to consume us. As awful as this scenario is these are abstract concepts to Joe Public, something that plays little or no part in their daily lives. What about the impending eco-doom and the fact that we are running out of oil? These are abstract concepts that all the benighted masses can reify for themselves.

The conventional wisdom is that the burning of fossil fuels is leading to a global catastrophe that must be averted. At the same time we are running out of oil so quickly, the story goes, that oil production will plummet any day now sending the American lifestyle and economy into a tail spin from which it will never recover. This phenomenon called Peak Oil means that oil production has peaked and that existing fields are near depletion with no new significant oil fields being found.

I have beaten Al Gore like a government mule on multiple occasions in these hallowed pages. Al Gore is the Teflon ecologist as none of his lies, misrepresentations, and twisting of facts stick to him. Even for a politician he sets records for mendacity; Al lies like a rug. No longer in office this crank ecologist managed to get a Nobel Prize for not actually knowing anything about climate science. Al’s mantra must be that he never lets the truth interfere with a good story. This man is unbounded; there is literally nothing that he will not take the credit for (creating the Internet, saving the whole planet, blah blah blah …) with no more credentials than being a rich man’s son and dropping out of graduate school. Not exactly the credentials most Nobel laureate’s possess.

I have written about peak oil before in LRC. The most recent piece can be found here. The basic thesis is quite simple: we are not running out of oil. Hubbert is as wrong as wrong can be. The facts backing up this assertion are simple: every year in the past 60 years has had more petroleum reserves at the end of the year than at the beginning. This is certainly an odd phenomenon to be sure for something that is dooming the entire planet. This is pretty much the exact opposite of what Hubbert forecasted. Let’s get some reification: in December of 2009 world petroleum reserves were estimated to be 1.31 trillion barrels aka 131,000,000,000 of them. A barrel as a concept is only useful to a petroleum engineer. A barrel is 42 gallons. So a trillion barrels is 5,502,000,000,000 gallons, aka 5.5 quadrillion gallons, which is actually a whole lot. Experts will say that reserve estimates are crude (no pun intended) at best, and that variance can be as large of 10% or more. Ecologists always round these numbers down presaging disaster, and marketing people will round them up. Nevertheless entrepreneurs continue to explore; which is a powerful statement that the free market makes about the future profit potential. Petroleum exploration is very expensive using techniques that are right on the forefront of science and engineering.

Even if skeptics will quibble about the number I have chosen the point is still obvious: how can we be running out of something we always seem to have more of, even including the 100 million barrels or so that we consume each and every day. The balance of justice will tip in my favor, Hubbert is wrong and I am right at least in the short run. Clearly there is not an infinite reserve of petroleum because everything is finite in the very long run.

The gas giant planets of Jupiter, Saturn, Uranus and Neptune are largely composed of hydrogen and methane which indicates that crude petroleum feedstock is abundant in our solar system. Thus there is some reason to think that some of this lies in the interior of our planet which slowly but surely percolates through the rock to the upper layers of the crust. Along the way methane gets oxidized into longer chain molecule as byproducts of methanogen metabolism. Man sees rocks as solid, but scientists know that they are porous at the molecular level; a large sponge, retarding, and filtering, but not stopping migrations thanks to Archimedes’ Principal, aka buoyancy. Oil exploration does not look for oil directly. They look for the rock formations that trap oil migration through the crust. This is the abiotic theory of petroleum creation. Thomas Gold raised 25 million dollars (USD) and sunk a well 6 miles into the Swedish bedrock. Sweden is a country without any known petroleum reserves. Gold found methane; methanogen’s and longer chain organic molecules. His excellent book The Deep Hot Biosphere should be on everyone’s reading list, except apparently Al Gore’s.

The earth’s oxygen is not a product of planet formation but has been and continues to be a product of primitive organism metabolism. Plants and other organism’s convert carbon dioxide into the oxygen we breathe. Carbon dioxide (CO2) is a food to this ecosystem. In some ecological sense the burning of petroleum is a symbiotic relationship between man (no other animal consumes the petroleum found in the crust) and the plant world. Mankind produces CO2 as a byproduct of petroleum consumption and the plants respond by producing oxygen.

Global warming is the catastrophe which has been hyped by the media and has thus been transmogrified into a cultural bogeyman targeting humanity. Global warming is the direct result of increased atmospheric CO2 which is produced by mankind in their insidious combustion of petroleum. Global warming will cause the north and south poles to melt which will destroy all waterfront property around the world; it will cause new biological threats to develop. New strains of influenza and other viral and bacterial threats will see the additional few parts per million of CO2 as the go signal to run wild. This is of course a pile of crap, but indicative of the shallow reasoning environmentalists use. Most of us learned this as a fable in grade school: "Chicken Little". Smokin’ Hot Al Gore runs around the world like a power-drunk Chicken Little searching for ignorant rubes that he can save. Runs is not accurate: Al flies around the world on private jets like a power-drunk Chicken Little. There are no TSA cavity searches for this vanguard of mankind. Still Al’s fable always ends the same way he is anointed king and the environmental ninnies open up concentration, I mean, reeducation camps. Al was so close to the levers of power that he cannot get it out of his mind. His fever dreams are replete with scenarios where he would act Presidential and force people to do the right thing. To date the American people and the Constitution have kept him at bay. He is not deterred; he spews his eco-madness non-stop as an attention-getting tool lest the public forget who their savior is.

Unfortunately the climate science to support these assertions is actually very thin even if present in copious amounts. It consists mainly of computer simulations of questionable predictive value. These models must be carefully tuned in order to converge at all. This same tuning can show many results like a perpetual ice ball planet or a raging inferno similar to Venus. A reputable climate scientist will admit this in professional publications but these facts always seems to get dropped from discussion in propaganda venues like Time, Newsweek, Financial Times, or the Economist. These models can generate many forms of disastrous outcome in glossy four-color graphics. What they can’t do is accurately predict the climate future. No amount of spending on supercomputers (always taxpayer funded) will change this fact. It is an initial condition boundary value problem for a system of coupled non-linear partial differential equations that can never be compensated for. If you read the hyperlinked data the problem is in the smoothness (the weather can never be smoothed out).

Temperature data over the last 150 is a worthless statistic when you consider that this planet has been around for 4.5 billion years, and that life emerged only in the last 600 million years. For millions of years the Earth was covered by a massive ice sheet that prevented sunlight from striking the ground. In the last hundred thousand years there have been multiple ice ages and warm periods, yet life prevails.

The mendacity of this "science" threatens all of humanity. The third world struggles to get into the first world. They do this by increasing their energy consumption in their daily lives by working in some form of hampered market economy. This increase in energy consumption allows them to produce goods like running shoes, trendy fleece jackets, and iPods. If either global-warming or peak petroleum cranks have their way energy consumption across the planet will decrease. New laws will only serve to strangle the economy of utility to be found from the division of labor. This strangulation will be most severe in the developing world; it literally threatens billions.

Socialism kills millions when confined to a single country (China, Russia, and Cambodia). If adopted on the world scale it threatens billions. Democracy is the god that the west is trying to get the whole world to implement. Ecologists and Socialists have failed miserably as the body politic knows to reject their eco-prophets at the polling place. Al Gore, John Kerry, current communist bozos and Ralph Nader have all been rejected in their manifold attempts to have their hands on the most powerful levers in the world: the American Imperial Presidency.

It is the developing world that will be punished the most. It should seem odd that a celebrity like Al Gore can have a mansion that consumes twenty times the monthly average utilities in the town where he lives, Nashville. He can also fly around the world in private jets to spew his provocative mendacity. His eco-devotee worshippers never question big Al’s carbon footprint either personal (currently) or the 8 years of president on-deck imperialist to Clinton. Big Al will tell us with a straight face that global cooling is really global warming that has gone into a stealth mode, just to fool us. Bill Clinton is now a fulltime buffoon and acts like one; he knows where he belongs. Gore takes himself serious and is very dangerous to mankind thanks to his Nobel status.

The Intra-Government Panel on Climate Change spews questionable science at the entire world through mass media replication of the mendacious façade of impending doom. Taxpayers around the world get bilked for this science. Their tentacles reach into all other domains via regulation. If the triple threat of climate change, petroleum production, and intra-governmental socialism are successful then billions will suffer and millions will certainly perish.

These clowns who cannot predict the weather next week want to predict it forever. Unlike TV weathermen political predictions turn into laws thanks to prevaricating politicians like Al Gore. These laws are directly targeted at capitalism to destroy it. Politicians know that capitalism via Human Action is their mortal enemy as it strips them of all their power. Politicians are just ordinary citizens that have power over others. It is this power that they crave to yield. Capitalism and Political "Science" are in a death match to the end because one cannot exist without destroying the other.

Socialism is the stealth political platform that peak oil and climate doomsayers promulgate. It is a thinly veiled menace to the body politic of the first, second and third worlds. Socialism via ecological regulation will punish the taxpayers and workers of the entire planet. The first world can adapt to some extent as they have shown through all the market crashes, recessions, regulations wars and market hampering of the twentieth century. It is the developing world that will be damaged the most, and these are the planet’s most endangered ecosystems. Energy and market transactions are the only way out of the cruel misery of poverty and ignorance. They do not love their children or their cultures any less than the developed world and should be accorded the same chance to prosper.

Let’s make the next decade one in which reason takes the field of the political debate and rolls back the twin threats of "Peak Oil" and Climate Change socialism. Ignore the Hubbert’s and Gore’s of the world. Let us welcome the developing nations like China, India and others into the fraternity of peace and prosperity through capitalism.

December 31, 2009

George Giles [send him mail] is the founder of the Gonzo School of Economics, the radical branch of Austrian Economic Theory. He was the youngest Republican ever elected in 1972 at age 17. You could be elected at age 17 if the office was not assumed until after age 18. It only took 3 months of local GOP meetings to become a virulent Libertarian ever after.

Copyright © 2009 by LewRockwell.com. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

The Best of George Giles

Watching the watchdogs

Is There a Constituency for Liberty in the U.S. Media?

by William L. Anderson

When I was a journalism student at the University of Tennessee 35 years ago, one thing we were told over and over again was that journalism served a “watchdog” role in keeping tabs on government. I had assumed (naïvely, of course) that the term “watchdog” meant serving as a counterforce against the predations of the state.

Alas, what I have found that it really means is that modern journalists and their mainstream organs like the New York Times, Washington Post, Vanity Fair, Time and Newsweek, not to mention a gaggle of numerous smaller wannabe publications, are making sure that the state is using all of its powers and then some to push people into line. As a college professor who works on a faculty that is overwhelmingly left-liberal, the one thing I hear time and again from my colleagues is that people need a tough, “kick-ass” government to make them behave.

The modern mantra of journalists is “comfort the afflicted, afflict the comfortable,” and we see that theme pursued time and again. This leads to situations that tell me that the press sees itself as the entity that will ensure that the government keeps all of us in line, as we cannot be trusted with anything as individuals. And Lord help someone who really thinks that the Bill of Rights was a restriction against the powers of the state against individuals; such thinking is “so 18th Century” or worse.

Take the Martha Stewart case, for example. According to the Usual Pundits on both the right and the left, the conviction and imprisonment (albeit rather brief) of Stewart represented a triumphant moment in which we once again affirmed the Principle that No One is Above the Law. Actually, it demonstrated a more fundamental condition fully supported by the mainstream media (or MSM): the state and its prosecutors are above the law, and the press will make sure of that.

Why do I make such a charge? There was no way the feds could charge Stewart with insider trading, and they knew it. Thus, they hatched a plan with the NYT and Wall Street Journal being complicit in lawbreaking: prosecutors fed secret grand jury information to those papers that was designed to damage the stock price of Martha Stewart Living and compel Stewart to meet with prosecutors and investigators in order to stop the bleeding. (In fact, Stewart was convicted of lying to investigators during that fateful meeting.)

It is a felony to leak grand jury information and is punishable by up to five years in prison. Yet, the feds did it and no one – no one – in the media complained about this episode of lawbreaking which was done in order to trick someone into committing a “crime” so that the press could have its Big Story and the prosecutors could indict and convict its Big Fish.

So, who is above the law here? The “watchdog” media assured federal prosecutors and their minions that both they and the media could do what they darned well please, and the law be damned. (After all, the law only is for “little people,” not for Important People like prosecutors and reporters for the NYT.) There was no mention of this situation on any editorial pages of our “prestigious” newspapers; instead, we saw only the self-congratulation that happens when the media allies itself with dishonest prosecutors to railroad “chosen” people into prison.

Lest anyone think I am simply “defending the rich” (which, apparently, is a crime in and of itself in this present time), I also look at the behavior of prosecutors across the country who regularly violate the law and certainly the U.S. Constitution, all with the blessings of the media, both right and left. It is very rare that any news organization calls for any sanctions to be placed on prosecutors who are exposed as lawbreakers.

Tom Kirkendall, a Houston attorney who actually cares about the Bill of Rights, has written many posts on his blog about the prosecutorial wrongdoing in the Enron case and the prosecution of R. Allen Stanford. (The only thing the feds have not done in the Stanford case is to declare him an “enemy combatant” and hold him in the same conditions they held José Padilla.)

Yet, there is no outrage in the media. Ironically, Stanford’s treatment is not much different than the treatment given in Russia to Mikhail Khodorkovsky, a businessman who apparently angered Vladimir Putin. However, the NYT had a lengthy article condemning Khodorkovsky’s imprisonment, but apparently believes that denying bail to an American businessman and holding him in conditions reserved for those on death row is perfectly acceptable.

As one who was involved in the infamous Duke Lacrosse Non-Rape, Non-Kidnapping, and Non-Sexual Assault case, I can tell you that the MSM will swallow just about anything from prosecutors, providing it fits the anti-capitalist and anti-Bill of Rights narrative that dominates the American media today. Even though most journalists think of themselves as being far superior in intelligence than most Americans, the leaders of the “Newspaper of Record” were True Believers in the “Magic Towel” that allegedly appeared in the Duke case, a towel that managed to make the DNA of Crystal Mangum appear while not wiping away the DNA of anyone else.

Yes, the same journalists who want us to believe that simple cotton towels have magical properties also want us to believe that it is OK for government-funded “scientists” to fake data and engage in outright fraud just to save us from the fate of “climate change.” Oh, and these are the same people who believe that Al Gore is a genius, an “intellectual’s intellectual.” (Actually, I had some dealings with Gore when I worked in Tennessee and can tell readers that the guy was just another fat, scripted politician who enjoys average intelligence at best.)

Indeed, the MSM is no “watchdog” of government. Journalists are lapdogs of the state, and little more than that. As for the constituency of liberty, I do find it telling that the one politician who does speak out for real liberty, Ron Paul, is derided in the MSM as a “kook” and a “nutcase.” Somehow, that makes sense to me, given what I have seen in the media. From Sean Insanity at Fox News to Rachel Mad Dog at MSNBC, we see that the media loves dictators, “take-charge” people who throw around their weight. As for liberty, well, that is passé at best and dangerous at worst.

December 29, 2009

William L. Anderson, Ph.D. [send him mail], teaches economics at Frostburg State University in Maryland, and is an adjunct scholar of the Ludwig von Mises Institute. He also is a consultant with American Economic Services. Visit his blog.

Copyright © 2009 by LewRockwell.com. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

Conservatism isn’t really about small government

The Intellectual Incoherence of Conservatism

Hans-Hermann Hoppe

Modern conservatism, in the United States and Europe, is confused and distorted. Under the influence of representative democracy and with the transformation of the U.S. and Europe into mass democracies from World War I, conservatism was transformed from an anti-egalitarian, aristocratic, anti-statist ideological force into a movement of culturally conservative statists: the right wing of the socialists and social democrats.

Most self-proclaimed contemporary conservatives are concerned, as they should be, about the decay of families, divorce, illegitimacy, loss of authority, multiculturalism, social disintegration, sexual libertinism, and crime. All of these phenomena they regard as anomalies and deviations from the natural order, or what we might call normalcy.

However, most contemporary conservatives (at least most of the spokesmen of the conservative establishment) either do not recognize that their goal of restoring normalcy requires the most drastic, even revolutionary, antistatist social changes, or (if they know about this) they are engaged in betraying conservatism’s cultural agenda from inside in order to promote an entirely different agenda.

That this is largely true for the so-called neoconservatives does not require further explanation here. Indeed, as far as their leaders are concerned, one suspects that most of them are of the latter kind. They are not truly concerned about cultural matters but recognize that they must play the cultural-conservatism card so as not to lose power and promote their entirely different goal of global social democracy.1 The fundamentally statist character of American neoconservatism is best summarized by a statement of one of its leading intellectual champions Irving Kristol:

“[T]he basic principle behind a conservative welfare state ought to be a simple one: wherever possible, people should be allowed to keep their own money—rather than having it transferred (via taxes to the state)—on the condition that they put it to certain defined uses.” [Two Cheers for Capitalism, New York: Basic Books, 1978, p. 119].

This view is essentially identical to that held by modern, post-Marxist European Social-Democrats. Thus, Germany’s Social Democratic Party (SPD), for instance, in its Godesberg Program of 1959, adopted as its core motto the slogan “as much market as possible, as much state as necessary.”

A second, somewhat older but nowadays almost indistinguishable branch of contemporary American conservatism is represented by the new (post World War II) conservatism launched and promoted, with the assistance of the CIA, by William Buckley and his National Review. Whereas the old (pre-World War II) American conservatism had been characterized by decidedly anti-interventionist foreign policy views, the trademark of Buckley’s new conservatism has been its rabid militarism and interventionist foreign policy.

In an article, “A Young Republican’s View,” published in Commonweal on January 25, 1952, three years before the launching of his National Review,  Buckley thus summarized what would become the new conservative credo: In light of the threat posed by the Soviet Union, “we [new conservatives] have to accept Big Government for the duration—for neither an offensive nor a defensive war can be waged . . . except through the instrument of a totalitarian bureaucracy within our shores.”

Conservatives, Buckley wrote, were duty-bound to promote “the extensive and productive tax laws that are needed to support a vigorous anti-Communist foreign policy,” as well as the “large armies and air forces, atomic energy, central intelligence, war production boards and the attendant centralization of power in Washington.”

Not surprisingly, since the collapse of the Soviet Union in the late 1980s, essentially nothing in this philosophy has changed. Today, the continuation and preservation of the American welfare-warfare state is simply excused and promoted by new and neo-conservatives alike with reference to other foreign enemies and dangers: China, Islamic fundamentalism, Saddam Hussein, “rogue states,” and the threat of “global terrorism.”

However, it is also true that many conservatives are genuinely concerned about family disintegration or dysfunction and cultural decline. I am thinking here in particular of the conservatism represented by Patrick Buchanan and his movement. Buchanan’s conservatism is by no means as different from that of the conservative Republican party establishment as he and his followers fancy themselves. In one decisive respect their brand of conservatism is in full agreement with that of the conservative establishment: both are statists. They differ over what exactly needs to be done to restore normalcy to the U.S., but they agree that it must be done by the state. There is not a trace of principled antistatism in either.

Let me illustrate by quoting Samuel Francis, who was one of the leading theoreticians and strategists of the Buchananite movement. After deploring “anti-white” and “anti-Western” propaganda, “militant secularism, acquisitive egoism, economic and political globalism, demographic inundation, and unchecked state centralism,” he expounds on a new spirit of “America First,” which “implies not only putting national interests over those of other nations and abstractions like ‘world leadership,’ ‘global harmony,’ and the ‘New World Order,’ but also giving priority to the nation over the gratification of individual and subnational interests.”

How does he propose to fix the problem of moral degeneration and cultural decline? There is no recognition that the natural order in education means that the state has nothing to do with it. Education is entirely a family matter and ought to be produced and distributed in cooperative arrangements within the framework of the market economy.

Moreover, there is no recognition that moral degeneracy and cultural decline have deeper causes and cannot simply be cured by state-imposed curriculum changes or exhortations and declamations. To the contrary, Francis proposes that the cultural turn-around—the restoration of normalcy—can be achieved without a fundamental change in the structure of the modern welfare state. Indeed, Buchanan and his ideologues explicitly defend the three core institutions of the welfare state: social security, medicare, and unemployment subsidies. They even want to expand the “social” responsibilities of the state by assigning to it the task of “protecting,” by means of national import and export restrictions, American jobs, especially in industries of national concern, and “insulate the wages of U.S. workers from foreign laborers who must work for $1 an hour or less.”

In fact, Buchananites freely admit that they are statists. They detest and ridicule capitalism, laissez-faire, free markets and trade, wealth, elites, and nobility; and they advocate a new populist—indeed proletarian—conservatism which amalgamates social and cultural conservatism and socialist economics. Thus, continues Francis,

while the left could win Middle Americans through its economic measures, it lost them through its social and cultural radicalism, and while the right could attract Middle Americans through appeals to law and order and defense of sexual normality, conventional morals and religion, traditional social institutions and invocations of nationalism and patriotism, it lost Middle Americans when it rehearsed its old bourgeois economic formulas.

Hence, it is necessary to combine the economic policies of the left and the nationalism and cultural conservatism of the right, to create “a new identity synthesizing both the economic interests and cultural-national loyalties of the proletarianized middle class in a separate and unified political movement.”2 For obvious reasons this doctrine is not so named, but there is a term for this type of conservatism: It is called social nationalism or national socialism.

(As for most of the leaders of the so-called Christian Right and the “moral majority,” they simply desire the replacement of the current, left-liberal elite in charge of national education by another one, i.e., themselves. “From Burke on,” Robert Nisbet has criticized this posture, “it has been a conservative precept and a sociological principle since Auguste Comte that the surest way of weakening the family, or any vital social group, is for the government to assume, and then monopolize, the family’s historic functions.” In contrast, much of the contemporary American Right “is less interested in Burkean immunities from government power than it is in putting a maximum of governmental power in the hands of those who can be trusted. It is control of power, not diminution of power, that ranks high.”)

I will not concern myself here with the question of whether or not Buchanan’s conservatism has mass appeal and whether or not its diagnosis of American politics is sociologically correct. I doubt that this is the case, and certainly Buchanan’s fate during the 1995 and 2000 Republican presidential primaries does not indicate otherwise. Rather, I want to address the more fundamental questions: Assuming that it does have such appeal; that is, assuming that cultural conservatism and socialist economics can be psychologically combined (that is, that people can hold both of these views simultaneously without cognitive dissonance), can they also be effectively and practically (economically and praxeologically) combined? Is it possible to maintain the current level of economic socialism (social security, etc.) and reach the goal of restoring cultural normalcy (natural families and normal rules of conduct)?

Buchanan and his theoreticians do not feel the need to raise this question, because they believe politics to be solely a matter of will and power. They do not believe in such things as economic laws. If people want something enough, and they are given the power to implement their will, everything can be achieved. The “dead Austrian economist” Ludwig von Mises, to whom Buchanan referred contemptuously during his presidential campaigns, characterized this belief as “historicism,” the intellectual posture of the German Kathedersozialisten, the academic Socialists of the Chair, who justified any and all statist measures.

But historicist contempt and ignorance of economics does not alter the fact that inexorable economic laws exist. You cannot have your cake and eat it too, for instance. Or what you consume now cannot be consumed again in the future. Or producing more of one good requires producing less of another. No wishful thinking can make such laws go away. To believe otherwise can only result in practical failure. “In fact,” noted Mises, “economic history is a long record of government policies that failed because they were designed with a bold disregard for the laws of economics.”3

In light of elementary and immutable economic laws, the Buchananite program of social nationalism is just another bold but impossible dream. No wishful thinking can alter the fact that maintaining the core institutions of the present welfare state and wanting to return to traditional families, norms, conduct, and culture are incompatible goals. You can have one—socialism (welfare)—or the other—traditional morals—but you cannot have both, for social nationalist economics, the pillar of the current welfare state system Buchanan wants to leave untouched, is the very cause of cultural and social anomalies.

In order to clarify this, it is only necessary to recall one of the most fundamental laws of economics which says that all compulsory wealth or income redistribution, regardless of the criteria on which it is based, involves taking from some—the havers of something—and giving it to others—the non-havers of something. Accordingly, the incentive to be a haver is reduced, and the incentive to be a non-haver increased. What the haver has is characteristically something considered “good,” and what the non-haver does not have is something “bad” or a deficiency. Indeed, this is the very idea underlying any redistribution: some have too much good stuff and others not enough. The result of every redistribution is that one will thereby produce less good and increasingly more bad, less perfection and more deficiencies. By subsidizing with tax funds (with funds taken from others) people who are poor, more poverty (bad) will be created. By subsidizing people because they are unemployed, more unemployment (bad) will be created. By subsidizing unwed mothers, there will be more unwed mothers and more illegitimate births (bad), etc.

Obviously, this basic insight applies to the entire system of so-called social security that has been implemented in Western Europe (from the 1880s onward) and the U.S. (since the 1930s): of compulsory government “insurance” against old age, illness, occupational injury, unemployment, indigence, etc. In conjunction with the even older compulsory system of public education, these institutions and practices amount to a massive attack on the institution of the family and personal responsibility.

By relieving individuals of the obligation to provide for their own income, health, safety, old age, and children’s education, the range and temporal horizon of private provision is reduced, and the value of marriage, family, children, and kinship relations is lowered. Irresponsibility, shortsightedness, negligence, illness and even destructionism (bads) are promoted, and responsibility, farsightedness, diligence, health and conservatism (goods) are punished.

The compulsory old age insurance system in particular, by which retirees (the old) are subsidized from taxes imposed on current income earners (the young), has systematically weakened the natural intergenerational bond between parents, grandparents, and children. The old need no longer rely on the assistance of their children if they have made no provision for their own old age; and the young (with typically less accumulated wealth) must support the old (with typically more accumulated wealth) rather than the other way around, as is typical within families.

Consequently, not only do people want to have fewer children—and indeed, birthrates have fallen in half since the onset of modern social security (welfare) policies—but also the respect which the young traditionally accorded to their elders is diminished, and all indicators of family disintegration and malfunctioning, such as rates of divorce, illegitimacy, child abuse, parent abuse, spouse abuse, single parenting, singledom, alternative lifestyles, and abortion, have increased.

Moreover, with the socialization of the health care system through institutions such as Medicaid and Medicare and the regulation of the insurance industry (by restricting an insurer’s right of refusal: to exclude any individual risk as uninsurable, and discriminate freely, according to actuarial methods, between different group risks) a monstrous machinery of wealth and income redistribution at the expense of responsible individuals and low-risk groups in favor of irresponsible actors and high-risk groups has been put in motion. Subsidies for the ill, unhealthy and disabled breed illness, disease, and disability and weaken the desire to work for a living and to lead healthy lives. One can do no better than quote the “dead Austrian economist” Ludwig von Mises once more:

being ill is not a phenomenon independent of conscious will. . . . A man’s efficiency is not merely a result of his physical condition; it depends largely on his mind and will. . . . The destructionist aspect of accident and health insurance lies above all in the fact that such institutions promote accident and illness, hinder recovery, and very often create, or at any rate intensify and lengthen, the functional disorders which follow illness or accident. . . . To feel healthy is quite different from being healthy in the medical sense. . . . By weakening or completely destroying the will to be well and able to work, social insurance creates illness and inability to work; it produces the habit of complaining—which is in itself a neurosis—and neuroses of other kinds. . . . As a social institution it makes a people sick bodily and mentally or at least helps to multiply, lengthen, and intensify disease. . . . Social insurance has thus made the neurosis of the insured a dangerous public disease. Should the institution be extended and developed the disease will spread. No reform can be of any assistance. We cannot weaken or destroy the will to health without producing illness.4

I do not wish to explain here the economic nonsense of Buchanan’s and his theoreticians’ even further-reaching idea of protectionist policies (of protecting American wages). If they were right, their argument in favor of economic protection would amount to an indictment of all trade and a defense of the thesis that each family would be better off if it never traded with anyone else. Certainly, in this case no one could ever lose his job, and unemployment due to “unfair” competition would be reduced to zero.

Yet such a full-employment society would not be prosperous and strong; it would be composed of people (families) who, despite working from dawn to dusk, would be condemned to poverty and starvation. Buchanan’s international protectionism, while less destructive than a policy of interpersonal or interregional protectionism, would result in precisely the same effect. This is not conservatism (conservatives want families to be prosperous and strong). This is economic destructionism.

In any case, what should be clear by now is that most if not all of the moral degeneration and cultural decline—the signs of decivilization—all around us are the inescapable and unavoidable results of the welfare state and its core institutions. Classical, old-style conservatives knew this, and they vigorously opposed public education and social security. They knew that states everywhere were intent upon breaking down and ultimately destroying families and the institutions and layers and hierarchies of authority that are the natural outgrowth of family based communities in order to increase and strengthen their own power. They knew that in order to do so states would have to take advantage of the natural rebellion of the adolescent (juvenile) against parental authority. And they knew that socialized education and socialized responsibility were the means of bringing about this goal.

Social education and social security provide an opening for the rebellious youth to escape parental authority (to get away with continuous misbehavior). Old conservatives knew that these policies would emancipate the individual from the discipline imposed by family and community life only to subject him instead to the direct and immediate control of the state.

Furthermore, they knew, or at least had a hunch, that this would lead to a systematic infantilization of society—a regression, emotionally and mentally, from adulthood to adolescence or childhood.

In contrast, Buchanan’s populist-proletarian conservatism—social nationalism—shows complete ignorance of all of this. Combining cultural conservatism and welfare-statism is impossible, and hence, economic nonsense. Welfare-statism—social security in any way, shape or form—breeds moral and cultural decline and degeneration. Thus, if one is indeed concerned about America’s moral decay and wants to restore normalcy to society and culture, one must oppose all aspects of the modern social-welfare state. A return to normalcy requires no less than the complete elimination of the present social security system: of unemployment insurance, social security, Medicare, Medicaid, public education, etc.—and thus the near complete dissolution and deconstruction of the current state apparatus and government power. If one is ever to restore normalcy, government funds and power must dwindle to or even fall below their nineteenth century levels. Hence, true conservatives must be hard-line libertarians (antistatists). Buchanan’s conservatism is false: it wants a return to traditional morality but at the same time advocates keeping the very institutions in place that are responsible for the destruction of traditional morals.

Most contemporary conservatives, then, especially among the media darlings, are not conservatives but socialists—either of the internationalist sort (the new and neoconservative welfare-warfare statists and global social democrats) or of the nationalist variety (the Buchananite populists). Genuine conservatives must be opposed to both. In order to restore social and cultural norms, true conservatives can only be radical libertarians, and they must demand the demolition—as a moral and economic distortion—of the entire structure of the interventionist state.

Hans-Hermann Hoppe is professor of economics at the University of Nevada, Las Vegas. Read and sign the Hoppe Victory Blog. This essay is based on a chapter from Democracy, The God that Failed (2001) that was given as a speech in 1996. Post Comments on the main blog.

1 On contemporary American conservatism see in particular Paul Gottfried, The Conservative Movement, rev. ed. (New York: Twayne Publishers, 1993); George H. Nash, The Conservative Intellectual Movement in America (New York: Basic Books, 1976) Justin Raimondo, Reclaiming the American Right: The Lost Legacy of the Conservative Movement (Burlingame, Calif.: Center for Libertarian Studies, 1993); see further also chap. 11.

2 Samuel T. Francis, “From Household to Nation: The Middle American populism of Pat Buchanan,” Chronicles (March 1996): 12-16; see also idem, Beautiful Losers:Essays on the Failure of American Conservatism (Columbia: University of Missouri Press, 1993); idem, Revolution from the Middle (Raleigh, N.C.: Middle American Press, 1997).

3 Ludwig von Mises, Human Action: A Treatise on Economics, Scholar’s Edition (Auburn, Ala.: Ludwig von Mises Institute, 1998), p. 67. “Princes and democratic majorities,” writes Mises, “are drunk with power. They must reluctantly admit that they are subject to the laws of nature. But they reject the very notion of economic law. Are they not the supreme legislators? Don’t they have the power to crush every opponent? No war lord is prone to acknowledge any limits other than those imposed on him by a superior armed force. Servile scribblers are always ready to foster such complacency by expounding the appropriate doctrines. They call their garbled presumptions “historical economics.”

4 Ludwig von Mises, Socialism: An Economic and Sociological Analysis (Indianapolis, md.: Liberty Fund, 1981), pp. 43 1-32.

End of Science as We Know It

The New World Order in Science

by Henry Bauer

I’m going to sketch a chronology and analysis that draw on the history of several centuries of science and on many volumes written about that. In being concise, I’ll make some very sweeping generalizations without acknowledging necessary exceptions or nuances. But the basic story is solidly in the mainstream of history of science, philosophy of science, sociology of science, and the like, what’s nowadays called "science & technology studies" (STS).

It never was really true, of course, as the conventional wisdom tends even now to imagine, that "the scientific method" guarantees objectivity, that scientists work impersonally to discover truth, that scientists are notably smarter, more trustworthy, more honest, so tied up in their work that they neglect everything else, don’t care about making money . . . But it is true that for centuries scientists weren’t subject to multiple and powerful conflicts of interest. There is no "scientific method." Science is done by people; people aren’t objective. Scientists are just like other professionals – to use a telling contemporary parallel, scientists are professionals just like the wheelers and dealers on Wall Street: not exactly dishonest, but looking out first and foremost for Number One.

"Modern" science dates roughly from the 17th century. It was driven by the sheer curiosity of lay amateurs and the God-worshipping curiosity of churchmen; there was little or no conflict of interest with plain truth-seeking. The truth-seekers formed voluntary associations: academies like the Royal Society of London. Those began to publish what happened at their meetings, and some of those Proceedings and Transactions have continued publication to the present day. These meetings and publications were the first informal steps to contemporary "peer review."

During the 19th century, "scientist" became a profession, one could make a living at it. Research universities were founded, and with that came the inevitable conflict of interest between truth-seeking and career-making, especially since science gained a very high status and one could become famous through success in science. (An excellent account is by David Knight in The Age of Science.)

Still it was pretty much an intellectual free market, in which the entrepreneurs could be highly independent because almost all science was quite inexpensive and there were a multitude of potential patrons and sponsors, circumstances that made for genuine intellectual competition.

The portentous change to "Big Science" really got going in mid-20th century. Iconic of the new circumstances remains the Manhattan Project to produce atomic bombs. Its dramatic success strengthened the popular faith that "science" can do anything, and very quickly, given enough resources. More than half a century later, people still talk about having a "Manhattan Project" to stop global warming, eradicate cancer, whatever.

So shortly after World War II, the National Science Foundation (NSF) was established, and researchers could get grants for almost anything they wanted to do, not only from NSF but also from the Atomic Energy Commission, the Army, the Navy, the Air Force, the Defense Advanced Research Projects Agency (DARPA), the Department of the Interior, the Agriculture Department . . . as well as from a number of private foundations. I experienced the tail end of this bonanza after I came to the United States in the mid-1960s. Everyone was getting grants. Teachers colleges were climbing the prestige ladder to become research universities, funded by grant-getting faculty "stars": colleges just had to appoint some researchers, those would bring in the moolah, that would pay for graduate students to do the actual work, and the "overhead" or "indirect costs" associated with the grants – often on the order of 25%, with private universities sometimes even double that – allowed the institutions to establish all sorts of infrastructure and administrative structures. In the 1940s, there had been 107 PhD-granting universities in the United States; by 1978 there were more than 300.

Institutions competed with one another for faculty stars and to be ranked high among "research universities," to get their graduate programs into the 20 or so "Top Graduate Departments" – rankings that were being published at intervals for quite a range of disciplines.

Everything was being quantified, and the rankings pretty much reflected quantity, because of course that’s what you can measure "objectively": How many grants? How much money? How many papers published? How many citations to those papers? How many students? How many graduates placed where?

This quantitative explosion quickly reached the limits of possible growth. That had been predicted early on by Derek de Solla Price, historian of science and pioneer of "scientometrics" and "Science Indicators," quantitative measures of scientific and technological activity. Price had recognized that science had been growing exponentially with remarkable regularity since roughly the 17th century: doubling about every 15 years had been the numbers of scientific journals being published, the numbers of papers being published in them, the numbers of abstracts journals established to digest the flood of research, the numbers of researchers . . . .

Soon after WWII, Price noted, expenditures on research and development (R&D) had reached about 2.5% of GDP in industrialized countries, which meant quite obviously that continued exponential growth had become literally impossible. And indeed the growth slowed, and quite dramatically by the early 1970s. I saw recently that the Obama administration expressed the ambition to bring R&D to 3% of GDP, so there’s indeed been little relative growth in the last half century.

Now, modern science had developed a culture based on limitless growth. Huge numbers of graduates were being turned out, many with the ambition to do what their mentors had done: become entrepreneurial researchers bringing in grants wholesale and commanding a stable of students and post-docs who could churn out the research and generate a flood of publications. By the late 1960s or early 1970s, for example, to my personal knowledge, one of the leading electrochemists in the United States in one of the better universities was controlling annual expenditures of many hundreds of thousands of dollars (1970s dollars!), with several postdocs each supervising a horde of graduate students and pouring out the paper.

The change from unlimited possibilities to a culture of steady state, to science as zero-sum game, represents a genuine crisis: If one person gets a grant, some number of others don’t. The "success rate" in applications to NSF or the National Institutes of Health (NIH) is no more than 25% on average nowadays, less so among the not-yet-established institutions. So it would make sense for researchers to change their aims, their beliefs about what is possible, to stop counting success in terms of quantities: but they can’t do that because the institutions that employ them still count success in terms of quantity, primarily the quantity of dollars brought in. To draw again on a contemporary analogy, scientific research and the production or training of researchers expanded in bubble-like fashion following World War II; that bubble was pricked in the early 1970s and has been deflating with increasingly obvious consequences ever since.

One consequence of the bubble’s burst is that there are far too many would-be researchers and would-be research institutions chasing grants. Increasing desperation leads to corner-cutting and frank cheating. Senior researchers established in comfortable positions guard their own privileged circumstances jealously, and that means in some part not allowing their favored theories and approaches to be challenged by the Young Turks. Hence knowledge monopolies and research cartels.

A consequence of Big Science is that very few if any researchers can work as independent entrepreneurs. They belong to teams or institutions with inevitably hierarchical structures. Where independent scientists owed loyalty first and foremost to scientific truth, now employee researchers owe loyalty first to employers, grant-givers, sponsors. (For this change in ideals and mores, see John Ziman, Prometheus Bound, 1994.) Science used to be compared to religion, and scientists to monks – in the late 19th century, T. H. Huxley claimed quite seriously to be giving Lay Sermons on behalf of the Church of Scientific; but today’s scientists, as already said, are more like Wall Street professionals than like monks.

Since those who pay the piper call the tune, research projects are chosen increasingly for non-scientific reasons; perhaps political ones, as when President Nixon declared war on cancer at a time when the scientific background knowledge made such a declaration substantively ludicrous and doomed to failure for the foreseeable future. With administrators in control because the enterprises are so large, bureaucrats set the rules and make the decisions. For advice, they naturally listen to the senior well-established figures, so grants go only to "mainstream" projects.

Nowadays there are conflicts of interest everywhere. Researchers benefit from individual consultancies. University faculty establish personal businesses to exploit their specialized knowledge which was gained largely at public expense. Institutional conflicts of interest are everywhere: There are university-industry collaborations; some universities have toyed with establishing their own for-profit enterprises to exploit directly the patents generated by their faculty; research universities have whole bureaucracies devoted to finding ways to make money from the university’s knowledge stock, just as the same or parallel university bureaucracies sell rights to use the university’s athletics logos. It is not at all an exaggeration to talk of an academic-government-industry complex whose prime objective is not the search for abstract scientific truth.

Widely known is that President Eisenhower had warned of the dangers of a military-industrial complex. Much less well known is that Eisenhower was just as insightful and prescient about the dangers from Big Science:

in holding scientific research and discovery in respect . . . we must also be alert to the . . . danger that public policy could itself become the captive of a scientific-technological elite

That describes in a nutshell today’s knowledge monopolies. A single theory acts as dogma once the senior, established researchers have managed to capture the cooperation of the political powers. The media take their cues also from the powers that be and from the established scientific authorities, so "no one" even knows that alternatives exist to HIV/AIDS theory, to the theory that human activities are contributing to climate change, that the Big Bang might not have happened, that it wasn’t an asteroid that killed the dinosaurs, and so on.

The bitter lesson is that the traditionally normal process of science, open argument and unfettered competition, can no longer be relied upon to deliver empirically arrived at, relatively objective understanding of the world’s workings. Political and social activism and public-relations efforts are needed, as public policies are increasingly determined by the actions of lobbyists backed by tremendous resources and pushing a single dogmatic approach. No collection of scientifically impeccable writings can compete against an International Panel on Climate Change and a Nobel Peace Prize awarded for Albert Gore’s activism and "documentary" film – and that is no prophesy, for the evidence is here already, in the thousands of well-qualified environmental scientists who have for years petitioned for an unbiased analysis of the data. No collection of scientifically impeccable writings can compete against the National Institutes of Health, the World Health Organization, UNAIDS, innumerable eminent charities like the Bill and Melinda Gates Foundation, when it comes to questions of HIV and AIDS – and again that is no prophesy, because the data have been clear for a couple of decades that HIV is not, cannot be the cause of AIDS.

As to HIV and AIDS, maybe the impetus to truth may come from politicians who insist on finding out exactly what the benefits are of the roughly $20 billion we – the United States – are spending annually under the mistaken HIV/AIDS theory. Or maybe the impetus to truth may come from African Americans, who may finally rebel against the calumny that it is their reprehensible behavior that makes them 7 to 20 times more likely to test "HIV-positive" than their white American compatriots; or perhaps from South African blacks who are alleged to be "infected" at rates as high as 30%, supposedly because they are continually engaged in "concurrent multiple sexual relationships," having multiple sexual partners at any given time but changing them every few weeks or months. Or from a court case or series of them, because of ill health caused by toxic antiretroviral drugs administered on the basis of misleading "HIV" tests; or perhaps because one or more of the "AIDS denialists" wins libel judgment against one or more of those who call them Holocaust deniers. Maybe the impetus to truth may come from the media finally seizing on any of the above as something "news-worthy."

At any rate, the science has long been clear, and the need is for action at a political, social, public-relations, level. In this age of knowledge monopolies and research cartels, scientific truth is suppressed by the most powerful forces in society. It used to be that this sort of thing would be experienced only in Nazi Germany or the Soviet Union, but nowadays it happens in democratic societies as a result of what President Eisenhower warned against: "public policy . . . become the captive of a scientific-technological elite."

December 19, 2009

Henry H. Bauer [send him mail] is Dean Emeritus of Arts & Sciences and Professor Emeritus of Chemistry & Science Studies at Virginia Tech. His books about science and scientific unorthodoxies include Scientific Literacy and the Myth of the Scientific Method (1992), Science or Pseudoscience (2001), and The Origin, Persistence and Failings of HIV/AIDS Theory (2007). He currently writes an HIV Skepticism blog.

Copyright © 2009 by LewRockwell.com. Permission to reprint in whole or in part is gladly granted, provided full credit is given.