Sunday, January 30, 2022

Payday Lending Restrictions Would Punish Responsible Lenders and Borrowers and Violate Rights

Beverly Brown Ruggia is the Financial Justice Program Director for New Jersey Citizen Action, and her New Jersey Star-Ledger op-ed pans a financial bill in the legislature. In Legislators must stop this bill. It perpetuates a cycle of poverty in New Jersey, Ruggia writes


S3611/A3450 will allow New Jerseyans early access to their earned wages. It’s another form of payday lending in disguise, structured to enrich payroll advance companies while potentially trapping low-income workers in a destructive cycle of debt.


I do not have a particular opinion on S3611/A3450. I have not studied the details. But that’s not important to this post. What is relevant is Ruggia’s opposition and reasoning. 


Note first that she immediately pivots to so-called payday lending, a form of ultra-short term credit that involves borrowing against one’s next paycheck within a few days of receiving it. Here is Ruggia’s take on it:


S3611/A3450 sets no fee limits, allowing companies to skirt New Jersey’s lending laws, or usury caps, designed to protect our residents from outrageous interest rates. For example, a $100 advance taken five days before payday with a $5 fee is equivalent to a 365% annual rate, far greater than the 30% annual rate allowed in New Jersey.


Note the package deal being peddled here. A $5 fee on a 5-day loan becomes an annual rate of 365%, even though the loan is not a yearly loan. It’s apples and oranges and it is deceiving. So how does Ruggia arrive at that erroneous assertion?


[These types of loans] can force low-income workers into taking back-to-back advances, trapping them into an endless and destructive debt trap. The National Consumer Law Center (NCLC) estimates that users average between 12 to 120 advances per year, and many take out even more than that.


Nobody forces anyone to take out these loans, any more than anyone is forced to borrow against his credit card.


Any form of borrowing can be abused, including credit cards. But so-called payday loans, like credit cards—a form of ultra-short term borrowing—can be a valuable financial management tool, as well. That’s why they’re popular among many workers. Yes, an irresponsible person can trap himself into a cycle of ever-expanding debt. But it’s he who traps himself, not the company that loaned him the money in good faith. Responsible people don’t let that happen, and should not be shut out from this financial tool to protect the irresponsible. 


The author portrays this type of lending as a corporate boon at the expense of the poor, evading the fact that lending is a mutually agreed-upon trade. Ruggia exclaims:


Lobbyists have portrayed this bill as an innovative solution for cash-strapped employees. But S3611/A3450 would only benefit the fintech and payroll advance companies seeking to enrich themselves at the expense of workers and their families.


I guess “innovative solutions for cash-strapped employees” is not a value. This is typical Leftist snobbery and self-serving delusions of superiority. Ruggia apparently believes that businesses are predators and low income people are too stuped and short-sighted to make intelligent, self-interested financial decisions. And those evil lenders, who make these financial management tools available, are only out “to enrich themselves at the expense of workers and their families.” No, they “enrich” themselves through their product offerings, just as workers advance their own financial interests by taking advantage of these loan products. Like any Marxist, Ruggia seems never to have discovered the principle of trade, in which each side seeks to advance her own self-interest through mutual agreement.


Ruggia finally gets around to acknowledging the value of these ultra-short term payday loans, albeit with a back-door plug for job-killing minimum wage laws:


Workers without access to ready cash could benefit from a variety of solutions. There is the technology to allow companies to pay workers early, free of charge, and there are rainy day programs and savings plans. The simplest solution would be to pay workers better wages to help ensure they don’t fall into ruinous debt.


Ruggia apparently doesn’t know that high income people also get into self-imposed financial trouble. Irresponsible financial handling is not a monopoly of low income—or “vulnerable” in Ruggia’s distorting terminology—folks. Yes, there are ways to plan for cash emergencies. But that’s no reason to legally take any financial tool away, and the state has no legitimate power to outlaw payday loans. It’s job is to police against fraud in the market, but otherwise leave people free to contract for the purpose of lending and borrowing.


This, from the Financial Justice Program Director for New Jersey Citizen Action, a statewide advocacy and empowerment organization that advances social, racial and economic justice for all. Justice for all--unless you’re the type of person who makes sound financial decisions, I suppose. Where’s the individual justice? What about responsible borrowers? Why should they be denied these loans? Why should a lender be denied the freedom to service responsible people with payday loans, if they have customers who want them? Responsible people and legitimate entrepreneurs are to be denied their freedom to voluntarily contract for the sake of irresponsible people. Of course, that’s “social” justice; that’s economic “justice”. And it is morally perverse. It is the opposite of the only genuine justice -- individual justice.


Beware the champions of “vulnerable” people. It’s your freedom and rights that they are really after.


Related Reading:


A Lesson in the Crucial Distinction Between Economic and Political Power


Limiting Access to Payday Loans May Do More Harm than Good—Paige Marta Skiba

One of the few lending options available to the poor may soon evaporate.


Where Does Valid Law End and Regulation Begin? -- my article for The Objective Standard

The Morality of Moneylending: A Short History by Yaron Brook for The Objective Standard

Thursday, January 27, 2022

Listen to Children? They Should Be Doing the Listening

A 2018 New Jersey Star-Ledger guest column calls for An emerging voice we should listen to: Our young people. The authors, Healthy Schools Now activist Jerell Blakeley and high school junior Justis Brown, speak out against unhealthy physical deterioration in the schools and end with a pivot into the gun control contraversy. *


Before we delve into these issues, let’s back up and address more fundamental issues.


Before you can learn to be “advocates for causes,” you need to know what you believe, which presupposes learning to think independently. You need to realize that feeling isn't thinking; that reality doesn't bend to your arbitrary demands (“Healthy Schools NOW”); that full context is crucial, and mental integration of facts and experience is crucial to grasping context; that there are other perspectives based on experience, not a teacher’s training; that almost all of what you learn in your lifetime does not come from school: It is still in your post-school future, if you are really willing to learn.


Education is about learning to think and self-govern in pursuit of self-flourishing; about transforming the whim-worshipping two year old into the free-thinking, reality-oriented, rational adult. Your not going to get there by being a mouthpiece for a school establishment dominated by a monopolistic, ideologically oriented political institution--the teachers union. When I listen to the young, I’m really mostly hearing their teachers. 


School children, by definition, lack the wherewithal to form permanent uncompromising positions on crucial issues. That’s why they are called school children. They are in the process of acquiring the mental tools of rational, objective thinking. Take the gun issue. You want control NOW. What about the crucial starting point of any discussion on “gun control”--the individual right to self-defense, what that right derives from, and the proper role of government regarding this right. Today, the big rage is Greta Thunberg and her Children’s Crusade against Climate Change, which is firmly ensconced in the biased, one-sided climate catastrophist camp. Clearly, these children are tools of the adult-driven, quasi-religious Environmentalist/Political/Industrial/Climate complex.


School kids should understand where they are at. High school is the minor leagues. Students’ (and their teachers’) main focus at this point in time should be to develop their own critical faculty, not go looking for causes to advocate for or against. They should be focussed on how to make convincing arguments, not making arguments. They need to learn to organize their thoughts and the facts of reality, and integrate them into principles. In short, they need to know what they are talking about. That comes from listening, without strings attached—which means, listening to even what they see as the most outrageous ideas, because “outrageous” ideas might actually be the truth.


Teachers should know this. The big leagues come later. I’ve been there. Looking back, I can honestly say that my k-12 years were mostly a waste of time. Almost all of what I know, including how to think about causes and deal with opposing opinions, I had to self-learn. I had to reach the big leagues on my own. 


I want to make clear that I am not saying that “children should be seen and not heard.” That is not education, either. What I am saying is that school children need to do a lot of listening themselves—in fact, a lot more listening than talking. Children lack the life experience of adulthood. That’s reality. 


* [Jerell Blakeley is a campaign organizer for the New Jersey Work Environment Council and coordinates the Healthy Schools Now coalition. Justis Brown is a junior at International High School in Paterson and a graduate of the Healthy Schools Now Student Leadership Academy.]


Related Reading:


The Anti-human Tyrade of an Ungrateful 16-Year-old


Education: It’s the Philosophy, Stupid!


Toward Real "School Reform"


Maria Montessori: Her Life and Work by E. M. Standing 

Monday, January 24, 2022

Media Climate Change Propaganda “News” Rolls On

A recent Associated Press article posted by Martha Bellisle demonstrates how climate change propaganda can distort the facts to present a completely alternate “reality”.


Colorado’s late December 2021 wildfires that destroyed homes and neighborhoods have become the latest fodder for the Left’s quasi-religious climate agenda. In Climate change, new construction mean more ruinous fires, Bellisle “reports”


The winter grassland fire that blew up along Colorado’s Front Range was rare, experts say, but similar events will be more common in the coming years as climate change warms the planet — sucking the moisture out of plants — suburbs grow in fire-prone areas and people continue to spark destructive blazes.


I put “reports” in scare quotes because this article is really an opinion piece masquerading as news—or at the least a combination of news and opinion. First, note that the Colorado event was “rare”. Not unprecedented—none of the weather events suddenly blamed on climate change these days are unprecedented. This is true of the weather conditions that set up the fires. They were not unique. They’ve happened in the past, and will happen in the future. Yet climate change is blamed, implicitly and with no evidence whatsoever, for this fire event. This is a now-common refrain--to mindlessly label every weather event climate change. Note also that human activity—development in wildfire-prone areas and careless people—were the real reasons for the destructiveness of these fires. But the obligatory climate change has to be shoehorned in.


Next we see that “similar events will be more common in the coming years as climate change warms the planet.” “Will”, not may. That’s opinion, not fact. And how much more common? To date, despite decades of dire, hysterical predictions, extreme weather has not become more extreme to any significant extent, if at all. Yet . . . 


“These fires are different from most of the fires we’ve been seeing across the West, in the sense that they’re grass fires and they’re occurring in the winter,” said Jonathan Overpeck, a professor in the School for Environment and Sustainability at the University of Michigan. “Ultimately, things are going to continue to get worse unless we stop climate change.”


The assertion that these fires “are going to continue to get worse” is, as I stated, pure speculation. The assertion that “we [can] stop climate change” is pure fantasy. Climate change is a regular, ongoing feature of Earth’s atmosphere, whether humans are a contributing cause or not. If “stop climate change” means stop human influence on the climate, what Overpeck is really advocating is to stop human progress and flourishing, and make man vastly more vulnerable to climate dangers, as people were before the beginning of the Industrial Revolution—a genocidal “solution.” Where are the Associated Press fact checkers?


As Former Obama Administration science adviser Steven E. Koonan, IPCC independent Expert Reviewer and clean energy advocate Michael Shellenberger, and many other knowledgeable experts have shown, the observed facts simply do not support the view that wildfires, and weather extremes in general, are getting worse or more numerous globally. Or if they are, the change is marginal and in any event impossible to pin on a changing climate with any degree of certainty.


Note also that alternative solutions to the chimera of stopping climate change, such as what Reason science correspondent Ronald Bailey discusses in depth, gets no coverage, despite the fact that the policies being advanced by political climate hacks to stop climate change would cause an unimaginable human catastrophe, which will be documented in energy expert Alex Epstein’s next book, that would dwarf that which would occur from any increase in extreme weather.


Bellisle and the Associated Press should be ashamed of themselves for advancing such sloppy journalism, blatant misinformation, and fake news.


Related Reading:


QUORA: ‘Why is there such strong pushback on climate change at the same time as we are seeing overwhelming proof of weather extremes in the USA?’


The Moral Case for Fossil Fuels— by Alex Epstein 


The End of Doom: Environmental Renewal in the 21st Century—by Ronald Bailey 


Apocalypse Never: Why Environmental Alarmism Hurts Us -- by Michael Shellenberger


Unsettled: What Climate Science Tells Us, What It Doesn't, and Why It Matters – by Steven E. Koonin 


The Rightful Place of Science: Disasters & Climate Change—by Roger Pielke Jr. 


Fossil Future: Why Global Human Flourishing Requires More Oil, Coal, and Natural Gas--Not Less—by Alex Epstein 


False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet—by Bjorn Lomborg

Sunday, January 23, 2022

Joe Biden—the Real Protégé of Jefferson Davis

In a leadup to Martin Luther King Jr. day, 2022, President Joe Biden gave a rousing speech in Georgia pushing his party’s so-called Freedom to Vote: John R. Lewis Act, which combines the Freedom to Vote Act and the John R. Lewis Voting Rights Advancement Act. But this was no mere campaign-style speech. Biden dove right into the thick of political philosophy, reaching straight back to the Founding of America. In doing so, Biden clearly and explicitly exposed the reactionary premises of the Democratic Party.


Before we delve into that let me briefly say a bit about this bill. First, despite the title, this bill is not about voting rights. Nowhere in the United States are voting rights an issue. No one is advocating for violating anyone’s right to vote. Democrats’ hysterical fear mongering demagoguery notwithstanding, the whole hoopla is really only about voting procedures and rules, and who -- Congress or state legislatures -- has responsibility over them. That's a vitally important Constitutional separation of powers issue. But while most states are revising, or have revised, their voting laws following last year’s emergency Covid-19 revisions to facilitate the 2020 presidential elections, the right to vote is not anywhere threatened. Specific features of these revised voting laws can be debatable. But an assault on voting rights? No one has ever pointed to one. See my recent post Jesse Jackson’s Big Lie: ‘American Democracy is Under Siege’.


Second, the real danger in this bill are the poison pills designed to undermine rights to freedom of speech, assembly, conscience, and privacy. One provision would establish taxpayer funding of federal elections—which means that the people who seek our votes, which if they win gives them the authority to pass laws that we are forced to live under, will be able to pick our pockets at gunpoint (tax us) to pay for their campaigns. Another provision would ban so-called “dark money,” which is private money donated to political action committees engaged in issue or candidate advocacy. The political and moral horrors of these provisions is covered in my post HR-1 is An Assault on Free Speech, Property Rights, Freedom of Conscience, and Privacy (HR-1 is the precursor to the current bill). 


That said, Biden’s Georgia speech is  much more consequential than any one act of congress because it is deeply philosophical in a way that goes straight to the heart of what America is. Here are some excerpts from Remarks by President Biden on Protecting the Right to Vote, with my annotates:


In our lives and the lives of our nation — the life of our nation, there are moments so stark that they divide all that came before from everything that followed.  They stop time.  They rip away the trivial from the essential.  And they force us to confront hard truths about ourselves, about our institutions, and about our democracy.


This is true. And Biden and the Democratic Party are making this one of those stark moments -- but not in the way Biden means.


Today, we come to Atlanta — the cradle of civil rights — to make clear what must come after that dreadful day when a dagger was literally held at the throat of American democracy.


As we shall see, Biden’s “American democracy” is nothing like anything America stands for. After reciting horrible events in which “time stopped”—bombings of black churches, murders of children, Ku Klux Klan attacks—Biden states:


They stopped — time stopped, and they forced the country to confront the hard truths and to act — to act to keep the promise of America alive: the promise that holds that we’re all created equal but, more importantly, deserve to be treated equally.  And from those moments of darkness and despair came light and hope.


Yes, indeed. The promise of America is anchored in the recognition of original equality and the right to be treated equally -- by the government and its laws. Does Biden really understand what that means?


Democrats, Republicans, and independents worked to pass the historic Civil Rights Act and the voting rights legislation.  And each successive generation continued that ongoing work.


Again, true. The “historic Civil Rights Act and the voting rights legislation” followed Martin Luther King’s reminder of “the magnificent words of the Constitution and the Declaration of Independence,” and his hope “that one day this nation will rise up and live out the true meaning of its creed: ‘We hold these truths to be self-evident, that all men are created equal,’” and finally grant negroes “the riches of freedom and the security of justice,” a “dream” of King’s that is “deeply rooted in the American dream.” Keep this in mind, as we move deeper into Biden’s speech.


But then the violent mob of January 6th, 2021, empowered and encouraged by a defeated former president, sought to win through violence what he had lost at the ballot box, to impose the will of the mob, to overturn a free and fair election, and, for the first time — the first time in American history, they — to stop the peaceful transfer of power.


That certainly was a mob attempting to impose its will. As we will see, Biden, the worshiper of Democracy, is the last person to complain about mob rule.


Biden goes on to trash the new Georgia voting law designed, he asserts, to “suppress the right to vote.” This is a law that makes it much easier to vote than 10 years ago, because it includes early voting, remote drop boxes, and “no-excuse” mail-in balloting--meaning mail-in ballots can be requested without any reason. Biden spouts the voter suppression lie despite myriad experts who have observed that, at worst, the new law will not have any effect on turnout and that the provisions of Georgia’s new law generally compare favorably with many other states. Thus, as Jonah Goldberg points out, “Biden will be the second president in a row to tell voters in Georgia there’s no point in voting because the system is rigged,” without justification. The first, of course, was Donald Trump, in the leadup to the Georgia Senate runoff elections a year ago, handing control of the Senate to the Democrats.


After further demagoging, Biden pivots to a call to selectively end the filibuster so as to allow a simple Senate majority to pass the voting bill:


Today I’m making it clear: To protect our democracy, I support changing the Senate rules, whichever way they need to be changed — (applause) — to prevent a minority of senators from blocking action on voting rights.  (Applause.)  


When it comes to protecting majority rule in America, the majority should rule in the United States Senate.  [My emphasis]


And so Biden’s reactionary philosophic treason begins to come into focus. America has never been about “protecting majority rule.” America has always been about protecting individual self-rule—inalienable individual rights—from tyrannies of every kind, including electoral majorities.


Then comes the clincher—Biden’s philosophic treason in full bloom:


I make this announcement with careful deliberation, recognizing the fundamental right to vote is the right from which all other rights flow.


This is nothing short of a repudiation of America and its Enlightenment roots. The Declaration of Independence states clearly, in these “magnificent words” as per Doctor Martin Luther King Jr., 


We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed . . . [my emphasis]


This is not mere rhetorical flourish. The idea of unalienable Rights and the government’s sole purpose to “to secure these rights” is deeply rooted in Enlightenment philosophy, led by John Locke and, ultimately, clarified and solidified by 20th Century philosopher Ayn Rand. The principle of individual rights is derived from man’s individual nature as a rational being, and precedes government. The truth is the exact opposite of Biden’s reactionary formulation: Man’s  fundamental rights to Life, Liberty and the pursuit of Happiness are the rights from which all other rights flow—including the right to vote.


After railing against Trump and his supporters for attempting to commandeer “the kind of power you see in totalitarian states, not in democracies,” Biden announces that rights are privileges granted by government, a foundational power of totalitarian states. This is not a power of constitutional republics such as, in its Founding ideals—the very same ideals drawn on by King in support of his Civil rights Movement—the United States of America!


So what does it mean, in practice, when “the fundamental right to vote is the right from which all other rights flow?” It means majority rule. Mob rule. When rights flow from the right to vote, then all rights flow from government—and the flow goes both ways.


  • It means the “rights” of majorities to vote minorities into slavery, which was a plank of the antebellum Democratic Party. 
  • It means the “rights” of majorities, or the majority’s elected representatives, to force unwilling citizens to fund political campaigns. 
  • It means the power to vote in governments to grant “rights” to material benefits, such as healthcare or education, that take away the rights of the citizens who are forced to provide and/or fund them—selectively, as in the regulatory welfare state, or across the board, as in a fully socialist country
  • It means the “right” of voters to install sharia law, violating the right to freedom of religion.
  • It means that Jim Crow laws were legitimate, democratically legitimate. Those laws were established by elected representatives--and, for a time upheld by the courts.


That’s exactly the evil that the Founders abolished. When the British government began systematically to take away the colonists’ “rights of Englishmen,” the Founders realized that there must be a firmer foundation for rights than the benevolence (or lack of) of a King or other ruling authority, including the rule of elected legislatures. They found that firm foundation for the preservation of their rights in the theory of natural rights, a product of The Enlightenment; the theory that man by his very nature, and his relationship to broader nature, requires the freedom to take the actions necessary for the furtherance of his life, secured by, in the words of John Locke, inalienable individual rights.  


The Democratic Party, along with the Confederate intellectuals, rejected those principles by radically reinterpreting the Founding of America as a Democracy, not a constitutional republic. The Democrats haven’t changed their stripes. They claimed rights were grants of state authority, derived from the vote, rather than from the laws of nature, and their elected governments deprived blacks their rights—The fundamental right to vote is the right from which all other rights flow--or not flow, as elected representatives deemed to declare. Today, on Democratic Party reactionary premises, an entire country can be voted into socialist slavery. The Democratic Party has Democratic Socialists embedded within. Venezuela elected and re-elected socialists leaders Chavez and Madura, and rights were systematically stripped away--voted away--turning Venezuela into an unfree, impoverished basket case. 


That’s what you get when you declare that rights come from the state--that the fundamental right to vote is the right from which all other rights flow. As we can clearly see in theory and in practice, a government from which rights flow is also a government from which rights can recede. Biden has it backwards. In fact, in a Democracy as conceived by Biden, the right to vote is the “right” that puts all other rights at risk.


Then came the final outrage of Biden’s philosophic treason. Biden framed the debate over his Freedom to Vote: John R. Lewis Act in apocalyptic demagoguery—as a choice of democracy over autocracy, light over shadows, justice over injustice; as a choice for or against voter suppression, election subversion, and democracy. With a straight face, Biden dropped the hammer on opponents:


So, I ask every elected official in America: How do you want to be remembered? 


At consequential moments in history, they present a choice: Do you want to be the si- — on the side of Dr. King or George Wallace?  Do you want to be on the side of John Lewis or Bull Connor?  Do you want to be on the side of Abraham Lincoln or Jefferson Davis?


It was the Confederate intelligentsia that repudiated the ideal of inalienable individual rights, summarized as “natural rights theory,” and reconceived America as a Democracy under which all rights flow from government—to protect their slavocracy. Who, then, is siding with the president of the slaveholding Confederacy, Jefferson Davis? Biden’s belief that “the fundamental right to vote is the right from which all other rights flow,” a principle upon which his Justice Department is basing its lawsuit against the state of Georgia over that state’s new election law, dovetails seamlessly with the philosophy of the Confederate States of America and its Democratic Party allies. 


To Joe Biden and the Democratic Party, election to political office in America is not an honorable job that entails doing the legal work of securing the fundamental rights to life, liberty, property, and the pursuit of happiness of its citizens. To today’s democratic socialist Democrats, like the antebellum Democrats and the Jim Crow Democrats and the welfare state Democrats, getting elected to political office is a license for totalitarian power—to do the work of deciding what rights are, who gets them, who doesn’t, and to enforce those “rights” through legal coercion. While pretending to be on the side of mid-twentieth century civil rights crusaders, Biden is actually on the opposite side philosophically. Whereas Martin Luther King Jr., for all of his mixed and inconsistent politics, was squarely on the side of the Founding principles. Joe Biden has chosen the opposite side. And since philosophy is the primary engine of history, who, then, sides with Jefferson Davis? Add to this the fact that, as political scholar Michael Barone reminds us, “George Wallace, Bull Connor, and Jefferson Davis were all partisan Democrats.” 


The evidence is indisputable. Joe Biden is the Real Protégé of Jefferson Davis.


[This post was updated on 1/26/2022.]


Related Reading:


Voting Rights are Not the ‘Most Fundamental Right’—or Even a Fundamental Right. 


The Dangerous Totalitarian Premise Underpinning the Justice Department’s Suit Against Georgia’s New Election Law


America's Revolutionary Mind: A Moral History of the American Revolution and the Declaration That Defined It by C. Bradley Thompson


America; Democracy or Republic or Both--Why it Matters


Senator Mike Lee is Right: America ‘is not a Democracy’


Rights and Democracy


Constitutional Republicanism: A Counter-Argument to Barbara Rank’s Ode to Democracy


Mesmerized by Elections, the NJ Star-Ledger Forgot that Tyranny is Tyranny


The Conscience of the Constitution: The Declaration of Independence and the Right to Liberty—Timothy Sandefur


Equality and the American Dream by C. Bradley Thompson


Martin Luther King Jr. and the Fundamental Principle of America by Michael A. Laferrara, my article for The Objective Standard



Related Viewing:


What Are Rights and Where Do They Come From? by Harry Binswanger