Saturday, July 28, 2012

Culture Still Matters

Source: Culture Still Matters May 31, 2012
This week I am leading a military history tour on the Rhine River from Basel, Switzerland, to Amsterdam. You can learn a lot about Europe's current economic crises by just ignoring the sophisticated barrage of news analysis and instead watching, listening, and talking to people as you go down river.
Switzerland, by modern standards, should be poor. Like Bolivia, it is landlocked. Like Italy, it has no real gas or oil wealth. Like Afghanistan, its northern climate and mountainous terrain limit agricultural productivity to upland plains. And like Turkey, it is not a part of the European Union.
Unlike Americans, the Swiss are among the most homogeneous people in the world, without much diversity, and make it nearly impossible to immigrate there.
So Switzerland supposedly has everything going against it, and yet it is one of the wealthiest nations in the world. Why and how?
To answer that is also to learn why roughly 82 million Germans produce almost as much national wealth as do 130 million Greeks, Portuguese, Italians, and Spaniards. Yet the climate of Germany is somewhat harsh; it too has no oil or gas. By 1945, German cities lay in ruins, while Detroit and Cleveland were booming. The Roman historian Tacitus remarked that pre-civilized Germany was a bleak land of cold weather, with little natural wealth and inhabited by tribal savages.
Race does not explain present-day national wealth. From 500 B.C. to A.D. 1300, Switzerland and Germany were considered brutal and backward in comparison to classical Greece and Rome, and later Renaissance Venice and Florence.
Instead, culture explains far more -- a seemingly taboo topic when economists nonchalantly suggest that contemporary export-minded Germans simply need to spend and relax like laid-back Southern Mediterraneans, and that the latter borrowers save and produce like workaholic Germans to even out the playing field of the European Union.
But government-driven efforts to change national behavior often ignore stubborn cultural differences that reflect centuries of complex history as well as ancient habits and adaptations to geography and climate. Greeks can no more easily give up siestas than the Swiss can mandate two-hour afternoon naps. If tax cheating is a national pastime in Palermo, in comparison it is difficult along the Rhine.
I lived in Greece for over two years and often travel to northern and Mediterranean Europe and North Africa. While I prefer the Peloponnese to the Rhineland, over the years I have developed an unscientific and haphazard -- but often accurate -- politically incorrect method of guessing whether a nation is likely to be perennially insolvent and wracked by corruption.
Do average passersby throw down or pick up litter? After a minor fender-bender, do drivers politely exchange information, or scream and yell with wild gesticulations? Is honking constant or sporadic? Are crosswalks sacrosanct? Do restaurant dinners usually start or wind down at 9 p.m.? Can you drink tap water, or should you avoid it? Do you mostly pay what the price tag says, or are you expected to pay in untaxed cash and then haggle over the unstated cost? Are construction sites clearly marked and fenced to protect pedestrians, or do you risk walking into an open pit or getting stabbed by exposed rebar?
To put these crude stereotypes more abstractly, is civil society mostly moderate, predicated on the rule of law, and meritocratic -- or is it better characterized by self-indulgence, cynicism and tribalism?
The answers to these questions do not hinge on race, money or natural wealth, but they do involve culture and the way average people predictably live minute by minute. Again, these national habits and traditions accrued over centuries, and as much as politics or economics, they explain in part why Bonn is not Athens, and Zurich is not Naples, or for that matter why Cairo is unlike Tel Aviv or why Mexico City differs from Toronto.
There is one final funny thing about contemporary culture. What people say and do about it are two different things. We in the postmodern, politically correct West publicly pontificate that all cultures are just different and to assume otherwise is pop generalization, but privately assume that you would prefer your bank account to be in Frankfurt rather than Athens, or the tumor in your brain to be removed in London rather than Lisbon.
A warm sunset with an ouzo on a Greek island beach may be more relaxing than schnapps on the foggy Rhine shore, but to learn why Greeks will probably not pay back what they owe Germany -- and do not believe that they should have to -- take a walk through central Athens and then do the same in Munich

Thursday, July 19, 2012

Obama's Rhetoric

Once again, THomas Sowell captures the essence of the issue, clearly and concisely. A MUST READ!

Obama's Rhetoric- Thomas Soowell Townhall.com
Barack Obama's great rhetorical gifts include the ability to make the absurd sound not only plausible, but inspiring and profound.
His latest verbal triumph was to say on July 13th, "if you've been successful, you didn't get there on your own." As an example, "Somebody invested in roads and bridges. If you've got a business -- you didn't build that. Somebody else made that happen."
Let's stop and think, even though the whole purpose of much political rhetoric is to keep us from thinking, and stir our emotions instead.
Even if we were to assume, just for the sake of argument, that 90 percent of what a successful person has achieved was due to the government, what follows from that? That politicians will make better decisions than individual citizens, that politicians will spend the wealth of the country better than those who created it? That doesn't follow logically -- and certainly not empirically.
Does anyone doubt that most people owe a lot to the parents who raised them? But what follows from that? That they should never become adults who make their own decisions?
The whole point of the collectivist mindset is to concentrate power in the hands of the collectivists -- which is to say, to take away our freedom. They do this in stages, starting with some group that others envy or resent -- Jews in Nazi Germany, capitalists in the Soviet Union, foreign investors in Third World countries that confiscate their investments and call this theft "nationalization."
Freedom is seldom destroyed all at once. More often it is eroded, bit by bit, until it is gone. This can happen so gradually that there is no sudden change that would alert people to the danger. By the time everybody realizes what has happened, it can be too late, because their freedom is gone.
All the high-flown talk about how people who are successful in business should "give back" to the community that created the things that facilitated their success is, again, something that sounds plausible to people who do not stop and think through what is being said. After years of dumbed-down education, that apparently includes a lot of people.
Take Obama's example of the business that benefits from being able to ship their products on roads that the government built. How does that create a need to "give back"?
Did the taxpayers, including business taxpayers, not pay for that road when it was built? Why should they have to pay for it twice?
What about the workers that businesses hire, whose education is usually created in government-financed schools? The government doesn't have any wealth of its own, except what it takes from taxpayers, whether individuals or businesses. They have already paid for that education. It is not a gift that they have to "give back" by letting politicians take more of their money and freedom.
When businesses hire highly educated people, such as chemists or engineers, competition in the labor market forces them to pay higher salaries for people with longer years of valuable education. That education is not a government gift to the employers. It is paid for while it is being created in schools and universities, and it is paid for in higher salaries when highly educated people are hired.
One of the tricks of professional magicians is to distract the audience's attention from what they are doing while they are creating an illusion of magic. Pious talk about "giving back" distracts our attention from the cold fact that politicians are taking away more and more of our money and our freedom.
Even the envy that politicians stir up against "the rich" is highly focussed on those particular high income-earners whose decisions the politicians want to take over. Others in sports or entertainment can make far more money than the highest paid corporate executive, but there is no way that politicians can take over the roles of Roger Federer or Oprah Winfrey, so highly paid sports stars or entertainers are never accused of "greed."
If we are so easily distracted by self-serving political rhetoric, we are not only going to see our money, but our freedom, increasingly taken away from us by slick-talking politicians, including our current slick-talker-in-chief in the White House.