A Constructive Idea For Promoting a Free Organ Market: Ask the Patients

I’m not attacking anyone anymore. I’m done. Everyone gets my point. I may be unhinged sometimes, but I can rehinge myself. Now I’m back on the hinge, so here we go.

Here’s a constructive idea. How about someone from the Halachic Organ Donor Society or any other philanthropist interested in promoting a free market in organs, do the following:

How about we go around and ask every single patient in need of a kidney that we can find, in the United States, in Israel, in Europe, in the entire world, just ask them, would they want to buy a kidney on the free market from a willing seller?

My conservative guess is the poll would be, approximately, 100% to 0% in favor of Yes.

Let’s ask them what they think. If we really care about those in need of a kidney, we should commission a global poll. And let’s see how close my estimate is to reality.

People are accusing me of being on a high horse. Fine. I accept. But I dare say all of us debating this issue from a public policy standpoint are on a bit of a high horse too, putting forth academic reasons for support or rejection of a free market in organs, when we all have working kidneys and do not need one. We are all a bit unqualified to submit an opinion. We have to ask the patients what they want.

Now who wants to sponsor that poll?

 

Should I be More Respectful towards Shmuly Yanklowitz?

Update Hoshana Rabba 5776: R. Yanklowitz has reversed his position and I publicly apologize for attacking him on this issue.

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This is a question I’ve been pondering seriously for a few days. Admittedly, I have a natural tendency towards sarcasm and cynical writing. That’s where I go. But I’ve been struggling over the last two days, because I thought perhaps those arguing for a more civilized debate had a point.

But I have now rejected that position. Here’s why.

Respectful disagreements should be reserved for purely intellectual or ritualistic arguments. What’s kosher, what’s not, what happened 3,000 years ago at Sinai and what didn’t. Is there only One God or 17 Gods? Is He physical or not? Those that cannot conduct themselves respectfully in those realms, their arguments will be lost, because nobody will pay attention to two people yelling at each other over issues that do not involve life and death, and they will relegate them to two curmudgeons yelling at each other in an alleyway. Respectful debates over purely religious matters will outlast, in books, treatises, and debates. People will read and think about them for centuries.

A teacher of mine implicitly compared me to one of Rebbi Akiva’s students that disrespected his peers and died without having made any influence. But that does not apply here. Why? הכא במאי עסקינן? There, Rebbi Akiva’s students disrespected each other over purely intellectual matters. They all died without any influence. But Shmuly Yanklowitz’s positions are life and death. And he is on the wrong side.

People will die TODAY because they cannot purchase a kidney on the free market. People will die TODAY because they cannot sell their kidney on the free market. People are dying NOW. And Shmuly is egging it on.

If you, dear reader, were on dialysis, and you needed a kidney, would you not purchase one one the free market from a willing seller?

Would Shmuly Yanklowitz, if God forbid Chas Veshalom his remaining kidney malfunctions, want to purchase one on the free mraket if no one donated to him? Or would he rather die for his anti market principles?

When it involves life and death, you throw out diplomacy. With life and death, you go for the jugular and you hold nothing back. That is what I have done and that is what I will do, whenever life and death comes up again with Shmuly.

What’s my evidence? Rashi called the Biryonim, those that wanted war against the Romans during the 2nd Temple Period, אנשים ריקים ופוחזים למלחמה. Empty worthless warmongerers. That was their argument. Even though the Biryonim had a moral position, to get rid of the invaders, Chazal had to delegitimize them because it was a life and death issue.

Shmuly has no moral position, so Kal Vachomer he deserves no respect.

If it were just minimum wage, I wouldn’t scream. If it were just equal-work-equal-pay, I wouldn’t single him out. If it were just Rubashkin’s, I wouldn’t take him into the ring and challenge him publicly. If it were just Pollard, not a word from me. None of that is life or death.

I didn’t even yell at him when he came out against organ sales, when he called that “shameful” in a 2009 article in HaAretz. Even though that is a life and death issue, because many people can make that mistake, and I know what fights to pick. Nobody who said that those Rabbis were shameful for trafficking kidneys was being manipulative. They were simply understandably mistaken.

I DID publicly attack Shmuly when he advocated sending weapons over to Syrian terrorists, because not only is that life and death, it’s MY OWN life and death, because I LIVE HERE. He doesn’t.

But when that artificially sweetened article came out about Shmuly donating his kidney to an orphan was published, that was it.

Shmuly isn’t just another Statist who makes mistakes sometimes about his positions. There are people who are for minimum wage who I still respect, because that mistake, while resulting in an immoral position, is common and understandable. Equal-work-equal-pay I also get, even though it still results in an immoral position, I wouldn’t say anyone who holds those is immoral to his core.

But once you combine no organ sales with a manipulative publicity stunt via donating an organ, if you don’t have the courage to come out and support a free market in organs, I’m coming after you for everything.

Shmuly Yanklowitz embodies everything I am against. He is essentially political, with everything he does. He is a perfect target, and I will use him for publicity just like he uses publicity for himself. If I can get him to publicly support a free market in organs, I have succeeded. I will publicly apologize for everything I have said, take it all down, and become his loyal supporter, even though he still is against sweatshops, for equal-work-equal-pay, and for minimum wage – which by the way all stem from a minimum wage argument and are all the same issue anyway.

So once I was going to attack him on organ donation, everything else came with it.

Support a free market in organ sales Shmuly. And donation. And I will be on your team. And I will beg your forgiveness and God’s.

Actually I’ll make it even easier for you. Publicly admit that maybe you are mistaken about organ trafficking, and say that only people who steal organs and sell them are shameful, but not people who traffic voluntary sales on the black market. Say publicly that you will consider the position, and take back your shameless reproach of those Rabbis, assuming they did not steal or traffic any stolen organs.

Tell us, Rabbi Shmuly Yanklowitz, if you needed a kidney God forbid, and you could either purchase one from a willing seller, or die, would you rather die for your principles? Tell us. Answer me. I want to know.

And even if you would rather die, what right do you have to condemn death on others?

On Organ Donation, Organ Sales, and Hypocrisy

Update Hoshana Rabba 5776: R. Yanklowitz has reversed his position and I publicly apologize for attacking him on this issue.

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I wrote a post on Times of Israel accusing someone of hypocrisy for supporting organ donation but opposing free market organ trade. It was taken down.

Here is the full post.

Let me preempt this blog with a few sentences.

First, I’m clearheaded and calculated. I know what I’m writing, and I won’t take any of it back, except on one condition. My argument is those who support organ donation, or even themselves donate organs, but are against free market organ trade, are hypocrites. Shmuly Yanklowitz donated a kidney, and that’s great. He is also against free market organ trade.  (UPDATE: Here is proof.) He is therefore a hypocrite. If he supports free market organ trade publicly, I will take back my attack and issue an apology.

Second, I am not against organ donation. I’m totally for it, I believe anyone should be able to donate anything he wants to anybody, and I believe it is a positive mitzva (commandment from God) to do so. What Shmuly did was an objectively good thing, and he deserves credit for saving a man’s life at the risk of his own.

Third, I personally would not donate a kidney unless it was for immediate family (certain) or even extended family (possible), because I love them more than others. I would, however, sell a kidney of mine of it were legal and I needed the money to survive or for my family to survive. So I’m not claiming anyone would donate a kidney and it’s no big deal. It’s a big deal. He did it. Good for him.

Fourth, I carry a Halachic Organ Donor card (a card that says I am willing to donate upon death) in the event I am killed, Chas VeShalom (God forbid), and can donate.

THAT SAID…

Here’s the background. On June 19th an article came out on Times of Israel about Rabbi Shmuly Yanklowitz, who donated a kidney to save a Jew’s life. The article was, I would say, pretty much the mirror image of a hatchet job. It was so clearly structured to make Shmuly look like a saint with a halo that it’s almost hard to read in its saccharine sycophantic tone, showering Shmuly with praise and flattery.

I know Shmuly. Not very well, but I know him. For a year I learned with him at Yeshivat Chovevei Torah, which I left after a year to move to Israel. He continued on to get Smicha (Rabbinic ordination). I didn’t. Back then I was not a libertarian, but I was moving in that direction. I was always amazed by Shmuly’s undying energy. The man could never tire. He was like superman. He still is. But I was always uncomfortable with how he made use of his energy, mainly his politics. I hate politics. All politics. And Shmuly was always, and still is, very political. I would say it is his essence. See my article “Politics is a Dirty Word” for more on that.

I never identified with his interpretation of “social justice” and “civil rights” that seemed to me, even back then, to be covers for political power. But I gave him the benefit of the doubt and said to myself it just wasn’t my taste. Or that I didn’t have the energy for all this stuff. That Shmuly was better than me and more dedicated, and I was just lazy. Or at least just normal. (Many people on reading this will conclude I’m just jealous.) I can think of very few people who can match Shmuly’s dedication. (In his case, dedication to politics.)

Well, then things started to click in my ideological life, and I found the principle that would guide me for the rest of my life. That principle is the Non Aggression Principle, otherwise known as the NAP. It is an extremely simple thing. It says no human being should ever exert violent force against any other innocent human being. Any human being who does, is, to the extent that he violates that principle or advocates violating that principle, immoral. The NAP is a principle most would agree with. It sounds fairly straightforward. But everyone always finds exceptions, especially Rabbi Shmuly Yanklowtiz.

Before I go into the more esoteric violations of the NAP that Rabbi Yanklowitz engages in, the most pertinent is this, and here, I admit, I am making an assumption, but I think it’s an accurate one.

Shmuly is against a free market in organs. He is therefore a hypocrite, because on the one hand he believes everyone who needs a kidney should have a kidney, but he doesn’t believe in allowing the market to reach the clearing price for such a good. The clearing price is the price where the amount of sellers equals the amount of buyers, where everyone willing to trade for a kidney can get one. When the market price for a good like a kidney is set below the market price, shortages develop. A shortages is when not everyone who is willing to trade for a kidney can get one, due to the fear of government reprisal by force. The government-mandated price for a kidney is ZERO, because one is only allowed to donate rather than sell.

When shortages develop in the organ market, people die. As the article on Shmuly and his heroic deed states, there are 101,662 people in the US awaiting a kidney transplant. Only 17,000 free transplants took place last year, most from deceased people. That means about 85,000 people, most if not ALL willing to trade for a kidney, will definitely have to go through another year of painful dialysis not knowing if they will survive, and many of them will die, because they cannot legally purchase a kidney.

But that’s just one side of it. There are millions of people in the world with extra kidneys. Shmuly is quoted in the article as saying God put two kidneys in his body, so he was meant to give one away. And what about the other 6 billion people on the planet with two kidneys? Should they not be allowed to sell one of them voluntarily to save a life? Is that somehow not as good as donating? Either way you’re saving a life. In one case you get money. In another case you don’t. Either way the life is saved.

The other side is the billion or more (I don’t know these numbers, I’m sure Shmuly does though) people starving around the world, or living in shanties off a dollar a day, mothers who throw babies they cannot afford to raise out into the forest to die. These destitute people, all of them have two kidneys. But they are not allowed to exchange them for desperately-needed money that they need to support their families and survive. And so their families die. And so do the people that could have used a kidney, that they were willing to exchange money for but could not do so for fear of government violence against them.

Being against voluntary organ sales violates the Non Agression Principle, because it employs force against innocent people who want to engage in a voluntary exchange, and threatens them with violence if they do. It also violates the NAP because it advocates violence against innocent sufferers of chronic kidney disease like the man Shmuly saved, because they would be VERY willing to purchase a kidney on the free market to save their lives, but if they do so they are threatened with prison.

Digressing a bit, Shmuly is also against so-called sweatshops in the Third World. Some of his political activity is directed against low-paying (by our standards) factory work in the Third World, and forcibly shutting it down. People who work in sweatshops at low pay by our standards are doing it because it is the best of all possible alternatives. The alternatives in those countries are prostitution or starvation. Those who advocate forcibly shutting down sweatshops without providing an alternative are condemning children to prostitution and death.

Shmuly is also an advocate of the minimum wage, and even raising it. The minimum wage makes it illegal to employ people whose labor is valued below an arbitrary number of dollars. It says that anyone whose labor is not worth X dollars an hour is not allowed to work. And if he works, voluntarily, for anything below that number, he or his employer or both will be put in prison. This hurts the weakest sectors of society, the unskilled, who must then resort to crime to survive because they cannot get jobs at all.

Shmuly is an advocate of “equal pay for equal work,” which is an Orwellian euphemism for “women should be paid more than they are on the free market”. If women are paid a certain amount for whatever work and voluntarily agree to it, stopping that relationship is immoral. The market price for whatever work by whoever is doing it is already set by free agreement. Pushing it higher by violent force will put women below that arbitrary point “discovered” by university academics, out of work, and hurt the weakest of them.

I am aware that Shmuly is not a malicious person. But the things he advocates for are malicious and immoral. He just doesn’t understand why. It’s not because he’s stupid. It’s because if he does recognize it, he will realize the damage he has caused throughout the years and he will have to face it and do teshuva (repentance), which is very difficult to do.

Are there ways to advocate for issues of true justice around sweatshops and women’s issues and wages? Sure. If a sweatshop is caught offering children $1 an hour but only paying $0.50, Shmuly could start an organization fighting for the rights of these sweatshop children to get the amount of money they voluntarily contracted for. If a woman is offered $30,000 a year to be a manager of whatever, Shmuly could start an organization that makes sure she gets the amount of money she contracted for, and make it only for women if he wants. That would be fine.

Shmuly could start an organization that helps low-wage workers gain more skills so their labor can be more valuable. But no. He simply wants to outlaw their jobs, because advocating for political force is so much easier than doing actual work that helps people economically.

And that takes me to the kicker. Here’s the kicker. Shmuly is an incredibly ambitious man. There is no problem with being ambitious. It’s a good thing. The problem is when you use unjust laws, like the law against selling organs, to further your agenda of political force.

Now, please, imagine for a moment that selling organs on the free market were legal. If you wanted to sell your kidney to a dying man on dialysis, nobody would stop you. Women can sell their eggs already. There is no difference. Now, in that case, the supply of those willing to sell a kidney at whatever price agreed upon greatly exceeds those who need them. One could even theoretically contract people to sell their organs upon death with the money going to their heirs. Imagine the enormous amount of kidneys that would result from just that.

If that were the case, if people all over the world, destitute starving weak people, could sell a kidney for money voluntarily, then how much publicity do you think Shmuly Yanklowitz could get for donating a kidney?

The answer is ZERO. The price of kidneys would be low enough that whoever needs one would buy one immediately rather than wait for a donor at the risk of his life on dialysis.

If Shmuly donated in a world where there was a free market in kidneys, donating one would just be viewed as idiocy. There would be no need to do so.

But instead, in the world we live in, it is illegal to exchange a kidney for money. That DOES NOT mean that nothing is exchanged when someone donates a kidney. Shmuly gets a LOT out of donating a kidney. He gets publicity. He gets recognition. He gets reverence. He gets a following. He gets all that, and more. These are very valuable goods. This is VERY valuable to him personally, because he knows how to use all of these goods. To further his goals. To broaden his name. To further his own career.

In the same way that computer parts are only valuable to someone who knows how to put them together, so too publicity is only good for someone who knows how to use it. But it is a good nonetheless, just like money, only less marketable, and only marketable by publicity experts. 

Am I saying it was not selfless of Shmuly to donate a kidney? It was certainly selfless, in a very shallow strictly monetary interpretation of selflessness. It was selfless only in the sense that he did not get actual money for the kidney. But he got other things, other goods, less marketable for others, but very marketable for him. He got a barter exchange – a kidney for publicity – instead of a monetary exchange – a kidney for money. Anyone can use money. Money is the most marketable good, by definition. But only very skilled people, like Shmuly, can use publicity. It is a very specific kind of economic good. He will take this publicity and exchange that for money instead to complete his barter, for donations to his causes, for better job opportunities as the Rabbi who donated a kidney, for further publicity advocating for violence against women and the poor, by outlawing voluntary employment relationships for women (equal work equal pay) and low-skilled workers (minimum wage).

But even then, it is not a moral problem to exchange publicity for a kidney. That’s perfectly fine and moral. What is IMMORAL, however, is to exchange publicity for a kidney when at the same time you advocate outlawing any monetary transactions for kidneys, thereby jacking up the value of the publicity you obtain from donating, and then using that to further your own goals at the expense of the starvation of others, who cannot legally sell their kidneys for money when they desperately need to do so.

For all these reasons, Rabbi Shmuly Yanklowitz is a hypocrite. He saved a life, yes, but that’s only because selling kidneys on the free market is illegal, and that is in violation of the NAP. If Shmuly donating a kidney were a truly selfless act, we would not have seen the article on Times of Israel. We would not have seen him claiming he knows what God wants from him, personally. We would not have seen a picture of him davening (praying) out of a Siddur (prayer book) right after surgery. We would not have known how many Smichas (Rabbinic Ordinations) he has or anything else and from whom. He would not have told anybody.

And if exchanging a kidney for money were legal instead of only exchanging a kidney for publicity, nobody would have cared.

And nobody should, except for the man he saved.

 

On Rabbi Shmuly Yanklowitz, Hypocrisy, Organ Donation and Exchange

UPDATE: READ THE FULL POST HERE. SHMULY HAS SINCE REVERSED HIS POSITION AGAINST A FREE MARKET IN ORGANS AND I HAVE APOLOGIZED.

Oh boy. I’m gonna get it for this one.

I wrote a blog for Times of Israel that dumped on a Rabbi, one who I do not respect very much, Shmuly Yanklowitz, for donating a kidney to a dying man. That sounds bad even to me, and I wrote the thing. The problem is not the donating. Donating is good. The problem is donating in the face of advocating against a free market in organs.

If Shmuly publicly supports an absolutely free market in organs, I will retract my criticism and issue a public apology.

Some of the sharper points. Read the rest at the link above:

And that takes me to the kicker. Here’s the kicker. Shmuly is an incredibly ambitious man. There is no problem with being ambitious. It’s a good thing. The problem is when you use unjust laws, like the law against selling organs, to further your agenda of political force.

Now, please, imagine for a moment that selling organs on the free market were legal. If you wanted to sell your kidney to a dying man on dialysis, nobody would stop you. Women can sell their eggs already. There is no difference. Now, in that case, the supply of those willing to sell a kidney at whatever price agreed upon greatly exceeds those who need them. One could even theoretically contract people to sell their organs upon death with the money going to their heirs. Imagine the enormous amount of kidneys that would result from just that.

If that were the case, if people all over the world, destitute starving weak people, could sell a kidney for money voluntarily, then how much publicity do you think Shmuly Yanklowitz could get for donating a kidney?

The answer is ZERO. The price of kidneys would be low enough that whoever needs one would buy one immediately rather than wait for a donor at the risk of his life on dialysis.

If Shmuly donated in a world where there was a free market in kidneys, donating one would just be viewed as idiocy. There would be no need to do so.

But instead, in the world we live in, it is illegal to exchange a kidney for money. That DOES NOT mean that nothing is exchanged when someone donates a kidney. Shmuly gets a LOT out of donating a kidney. He gets publicity. He gets recognition. He gets reverence. He gets a following. He gets all that, and more. These are very valuable goods. This is VERY valuable to him personally, because he knows how to use all of these goods. To further his goals. To broaden his name. To further his own career.

In the same way that computer parts are only valuable to someone who knows how to put them together, so too publicity is only good for someone who knows how to use it. But it is a good nonetheless, just like money, only less marketable, and only marketable by publicity experts. 

Am I saying it was not selfless of Shmuly to donate a kidney? It was certainly selfless, in a very shallow strictly monetary interpretation of selflessness. It was selfless only in the sense that he did not get actual money for the kidney. But he got other things, other goods, less marketable for others, but very marketable for him. He got a barter exchange – a kidney for publicity – instead of a monetary exchange – a kidney for money. Anyone can use money. Money is the most marketable good, by definition. But only very skilled people, like Shmuly, can use publicity. It is a very specific kind of economic good. He will take this publicity and exchange that for money instead to complete his barter, for donations to his causes, for better job opportunities as the Rabbi who donated a kidney, for further publicity advocating for violence against women and the poor, by outlawing voluntary employment relationships for women (equal work equal pay) and low-skilled workers (minimum wage).

But even then, it is not a moral problem to exchange publicity for a kidney. That’s perfectly fine and moral. What is IMMORAL, however, is to exchange publicity for a kidney when at the same time you advocate outlawing any monetary transactions for kidneys, thereby jacking up the value of the publicity you obtain from donating, and then using that to further your own goals at the expense of the starvation of others, who cannot legally sell their kidneys for money when they desperately need to do so.

 

 

 

Rotem Sela is Awesome, Publicly Breaking the Law of Book Price Controls

This guy Rotem Sela is pretty cool. I know nothing about him, but what he’s doing is awesome. In this video, he’s wearing a shirt that says, “Books at illegal prices.” I’ve written about this minimum book price law twice, here and here. It’s a law that says prices on books by new authors must be above market level, in so many words.

By doing that, they make the books impossible to sell, putting new authors completely out of business.

It makes me want to cry how politicians just simply refuse to understand supply and demand, no matter how simple it is. Supply and demand meet at the market price. Make the market price illegal, and you have a surplus, meaning unsold stuff. The producers of the unsold stuff lose money. They stop producing it.

That’s it. That’s it that’s it that’s it. There’s nothing else to it. Same with minimum wage. Make market price wages illegal, and you have a surplus of workers, AKA permanent unemployment. That’s it that’s it. Nothing else to it.

Moshe Feiglin wrote a pretty good post today explaining the bad effects of the minimum book price law, but he still talks in socialist jargon and it bothers me. This paragraph, specifically, was pretty crappy: (worst parts in bold)

הכוונה היתה טובה – אין ספק (גם מרכס לא חשב להרעיב מיליונים). הרי סופרים מתחילים מקבלים גרושים ואת כל הרווח גורפות הוצאות הספרים המשומנות – אז למה לא בעצם? לקחת מהעשירים ולתת לעניים? מה יותר פשוט מזה. החוק עבר ברוב כמעט מוחלט

The intention was a good one, no doubt. (Marx wasn’t trying to starve millions either.) Of course beginning authors get peanuts and all the profit goes to the fattened book publishers, so why not price controls? Take from the rich and give to the poor? Nothing simpler than that. The law passed easily.

The implication is that, indeed, it would be nicer if authors got more money, but they don’t, and people are greedy, and there’s nothing we can do about it. These “reluctant libertarian” positions I call them are really annoying. It WOULDN’T be “better” if authors got more money. They get the money they get because that’s the market price for it. That’s it.

There is no and there cannot be any value judgement about what market prices are. They just are. They take into account what people want or don’t want and how much they are willing to pay, the supply the demand and the meeting point between the two.

And how does Feiglin know how much “profit” (by which he means interest) goes to the book publishers and how little goes to the authors? Has he looked at their profit margins? Does he see definitively that if the fat book publishers gave more of their fat profit to the sickly authors, they would still be net positive?

Whatever. He sneaks in these wacky sentiments sometimes when he makes a good point. And it’s annoying.

So Rotem Sela is breaking the law publicly and challenging the State in the open. I like this. Let’s see if he gets thrown into the Gulag by our enlightened lunatics in the Knesset. Also, interestingly, if you’ll notice he wording at the beginning of the video – “How did banks become so hated by the public?”

Good segway.

Retroactive Welfare Coming My Way, Considering Burning It

The “anti Zionist” “State-hating” State-welfare-enthusiast hypocrites of Shas and UTJ were able to get Netanyahu to not only raise the child stipend welfare back up to its previous high, but forced a retroactive payment covering all the missed welfare payments from when it was reduced.

This is another proof of how and why the State can never, ever shrink. It can only keep growing until the parasite kills the host. Until there is nothing left to steal. Like what’s happening in Greece. It’s about to get much worse there. Default is now 11 days away, and when they start printing Drachmas, every Greek citizen will lose all of his savings.

So even when a government can temporarily shrink itself, not only does it grow again, but the actual shrinking that it undertook is reversed as well.

As a result, I, who am lucky enough to have 3 kids, will be getting 1,680 shekels in retroactive welfare payments from the state.

Already I get 420 a month, which I give to Moshe Feiglin and Zehut. I also get a מענק עבודה of something like 2,000 shekels every three months or so (seemingly, I’ve only gotten it twice) which I never asked for nor filled out a form to get, which I also give to Zehut.

I’ve always wanted to simply burn this money and return the inflation to the people. I’ve physically gone into the Bituach Leumi office here in Karnei Shomron and actually asked them to stop paying me. They said that’s impossible. So I closed my bank account, opened a new one, and didn’t tell them about it, hoping they would stop. But the payments just kept coming.

The main reason I haven’t burned any money yet, but give it away to who I think has the best chance of stopping this, is that the main advantage of destroying the money will be as a public statement. I’d rather give it away than destroy it privately. But with this retroactive payment coming my way, I’m now seriously considering making a video of me destroying 1,680 shekels and putting it on YouTube.

But since that may get me in trouble, I may not do it. I never challenge the State head on like that. It’s too dangerous.

Any suggestions? How illegal is it to burn money?

Kahlon The Fake Has A Genius Idea for Bringing Down Real Estate Prices: Rent Control!

“In many cases rent control appears to be the most efficient technique presently known to destroy a city—except for bombing.”

Assar Lindbeck, The Political Economy of the New Left (New York: Harper and Row, 1972)

It’s all the same. There is never any change. It’s all the same total bullshit. The only reason people ever though Kahlon was different from all the other disgusting slime was that the media, licensed and directed by the State, decided it would be a good idea to paint a picture as if someone were slightly different in order to get people interested in granting the State more legitimacy.

Kahlon is a genius! He’ll stand up for the middle class! He’ll bring down housing prices! He’ll save everything! This is just Netanyahu’s way of getting 10 more seats in his stupid game. Kahlon is Likud, and he left it to get some more votes from the left for Bibi. That’s all this ever was. There is NO DIFFERENCE between Kahlon and Dov Henin or Bennett or Ahmed Tibi.

So his idea, just like I said it was going to be, is rent control. That’s the greatest idea that comes to any politician’s mind. Don’t let people build houses. Don’t give up your thieving control of the unhomesteaded land supply. Don’t help increase supply by getting out of the freaking way.

Just pass a law saying that higher prices are illegal. Why not pass a law that says everyone needs to have a yacht. Then they can sell it for a house. Why not pass a law that nobody is allowed to die.

We can see how well rent control is doing in Venezuela, where people there can’t even get basic goods while the government prints money to death and forbids prices from rising.

I already wrote a post about Tzipi Livni and Pretty Boy Lapid’s idea for bringing down housing prices. Guess what it was. Rent control. But if Kahlon says the same exact thing, he’s a freaking genius!

You know, when I first got into the whole libertarian crowd, and started seeing claims all over the place discrediting the media and claiming it was all rigged and worthless, I kind of poo-poohed it. These are just tinfoil hat types.

I already wrote about rent control here. What it does is destroy property, as landlords cannot charge enough to maintain the property, so they abandon it, and it becomes unliveable, which exacerbates the housing crisis.

It really is a simple issue. If there’s not enough of something, you MAKE MORE OF IT SO PRICE GOES DOWN.

But the government’s solution is tojust  FORBID THE PRICE FROM GOING UP

What a vicious little nothing creature Moshe Kahlon is.

Israel’s Price Controls on New Books Come Home to Roost

Three years ago, I wrote this, when some idiotic law was passed to force up the price of books so authors would make more money. Nobody likes the fact that when prices go up, demand goes down:

According to the bill, stores will not be allowed to discount the price of a book for 18 months following its publication. Therefore, the logic goes, people will be forced to buy the book at a higher price, thereby “protecting the author’s income”.

Well, this is genius. That should work well.

But there’s another possibility, with a likelihood of something along the lines of absolutely certain: Sales of new books will plummet at Tzomet Sfarim and Steimatzky when consumers can no longer find good deals on them. Authors’ royalties will fall through the floor. Tzomet Sfarim and Steimatzky’s sales will plunge in general,  chains will go out of business, unemployment will go up, and people will cry to the government to bail out the bookstores, or better yet, pass a national “support Israeli literature tax” to give the industry a boost so authors don’t starve because nobody is buying their books.

It took a year since the law took effect, but now the author lobby is pissed for shooting itself in groin. Sales of new books have plummeted. What a surprise. 

מה נשתנה? שנה לחוק הספרים

שנה עברה מאז נכנס לתוקפו חוק הספרים השנוי במחלוקת. התוצאה בינתיים היא ירידה במכירות, ברווחים ובמספר הספרים שיצאו לאור. החוק שרבים קיוו כי בזכותו ייחלץ הענף מהמשבר, לא מספק את התוצאות הרצויות

What happened? One Year After The Book Law

One year since the controversial Book Law came into effect, the results are a fall in sales, profits, and the number of books published. The law that many thought would save the industry from crisis has not delivered the desired results.

And now publishers are are not making money, so they’re not publishing new authors at all, because new authors are subject to price controls. It’s not going to be easy getting this piece of crap repealed.

Just like the minimum wage hurts the weakest workers, minimum book prices slaughter the weakest authors.

Amazing. The Law of Supply and Demand still works, even after these politicians passed laws to override it. I can’t believe it. Who can? Surely not Limor Livnat or Nitzan Horowitz.

Livnat has since retired from a life of telling people what to do and dictating how much books she didn’t write, doesn’t publish, and isn’t trying to sell should cost people, but “continues to work on projects” for the betterment of whatever. She should really stop doing anything, just stand still, don’t move, and don’t talk to anybody. Politicians should not try to better anything.

Don’t breathe too hard either.

 

Kahlon’s First Move To Lower the Cost of Living: Raise Taxes

I saw this one coming. If you thought Moshe Kahlon and his Kulanu Party are a group of economic geniuses, it turns out they’re a group of politicians looking for more excuses to take more money away from you. Really, only a politician could think up an idea like raising taxes to make your cost of living go down. Bluntly, it’s saying this: You want to be wealthier? I’ll just take more money away from you and then voila! You’ll suddenly be wealthier. Amazing.

An article out in Calcalist, a hack magazine if there ever was one where they throw jargon at you but nothing makes any sense, says that even before Kahlon goes into the Finance Ministry, the bureaucrats there are busy cooking up a plan to take away tax exemptions on property gains for those who own apartments as investments, and to tax rental apartments.

It’s amazing really. That this is what they think of. Not building more, not freeing up more land, not giving away land to build, not even selling land. Raising taxes.

What will this cause? A lot of people want to say that the tax raise will just be passed down to the renter. It won’t. That’s impossible. Rental prices are what they are not because of taxes, but because of supply and demand of houses.

What will happen, though, logically, is something like this:

The people that buy apartments to rent them out have the capital to do so. They have the savings to make a down payment on the house in order to rent it out. The ones that rent, usually do not have the capital or income to qualify for a mortgage. So they don’t buy houses. And now, even if they could, they’d have to pay taxes on property gains.

So what’s going to happen is that the moderately rich people who can afford a house or two as an investment, will sell them in order to escape the new taxes. But who will buy? The people who can’t afford a mortgage now? Certainly not. The ones who will buy will be the super rich who can afford so many houses that the economies of scale will keep real estate investment profitable only at a higher theshold that only the superrich can afford.

So the landlords scraping a living at modest investments, all that income will now go to the superrich. I have nothing against the superrich unless those riches came from government. I’m just saying that they end up benefiting the most from government intervention like this.

The other alternative would be to make it much much easier for a person who cannot afford a mortgage now, to afford one in order to buy a house. That would mean forcing banks to accept people who make no down payment, and then we’re back where we started at the housing bubble.

So super wealthy real estate owners rejoice. You’re about to get a lot more real estate at a discount. But rental prices ain’t goin down until you INCREASE SUPPLY.

 

 

Another Domino to be Added to the List of Catastrophic Catalysts

I’ve known this for a while, but never saw it in graphic detail. Bob Wenzel of Economicpolicyjournal, a blog I visit every day, had this infographic up on his site today.

Top Holders of US Debt

I’ve always known China is the largest holder of US treasury debt in the world. I didn’t know that Japan was right behind.

Japan is the only country on the planet that is more into Keynesian economics than the US. As I mentioned in my last post about the bonobo chimpanzee behaving former IMF head Dominique Strauss Kahn who only attended 4 sex parties a year, Japan is somewhere between 240% and 500% in debt to GDP. Whichever number you want to pick, it’s the highest debt to GDP ratio on the planet. And Japan holds $1.24T in face value of US treasury debt.

If this isn’t a highly unstable house of cards, I really don’t know what is. The situation is just beyond any scope of reason, while the media makes you blissfully unaware of any of it or its meaning. The most indebted country in the world is being propped up by the country with the highest debt concentration in the world.

These are aftereffects of a country that destroys another with two nuclear bombs and then proceeds to nurse it back to health. How would you feel if someone beat the living crap out of you to within an inch of death and then put you on life support until you sort of recovered? You’d feel indebted. $1.24T of indebtedness.

Sooner or later some tiny domino is going to fall. If you feel like you have to sneeze, duck and cover.