Free Markets, Free People
Apparently Bruce and Michael prefer to watch the Superbowl, our nation’s annual celebration of Communism, than do a podcast that may help spread the word about individual liberty.
Meanwhile, in baseball, the only truly American game, pitchers and catchers report to Spring Training in 8 days.
Leave it to former White House Chief of Staff and current Mayor of Chicago Rham Emanuel to provide us with the example. George Will tells the sorry story:
Politics becomes amusing when liberalism becomes theatrical with high-minded gestures. Chicago’s government, which is not normally known for elevated thinking, is feeling so morally upright and financially flush that it proposes to rise above the banal business of maximizing the value of its employees’ and retirees’ pension fund assets. Although seven funds have cumulative unfunded liabilities of $25 billion, Chicago will sacrifice the growth of those assets to the striking of a political pose so pure it is untainted by practicality.
Emulating New York and California, two deep-blue states with mammoth unfunded pension liabilities, Chicago Mayor Rahm Emanuel (D) has hectored a $5 billion pension fund into divesting its holdings in companies that manufacture firearms. Now he is urging two large banks to deny financing to such companies “that profit from gun violence.” TD Bank provides a $60 million credit line to Smith & Wesson, and Bank of America provides a $25 million line to Sturm, Ruger & Co.
Chicago’s current and retired public employees might wish the city had invested more in both companies. Barack Obama, for whom Emanuel was chief of staff, has become a potent gun salesman because of suspicions that he wants to make gun ownership more difficult. Since he was inaugurated four years ago, there have been 65 million requests for background checks of gun purchasers. Four years ago, the price of Smith & Wesson stock was $2.45. Last week it was $8.76, up 258 percent. Four years ago, the price of Sturm Ruger stock was $6.46. Last week it was $51.09, up 691 percent. The Wall Street Journal reports that even before “a $1.2 billion balloon payment for pensions comes due” in 2015, “Chicago’s pension funds, which are projected to run dry by the end of the decade, are scraping the bottoms of their barrels.”
So we have the Mayor of Chicago using, well, Chicago style “politics”, to make a “moral statement” that likely few of his citizens agree with and hurting an already failing retirement system by demanding stocks that are doing well be dropped. We call that “moral preening” and, of course, it’s no skin off his back – he’s not the one losing the money – retirees are. Screw serving the public welfare – his job. He’s all about hurting the public welfare to make a private moral statement.
As for the false moral equivalency? Here you go:
Nevertheless, liberals are feeling good about themselves — the usual point of liberalism — because New York state’s public pension fund and California’s fund for teachers have, the New York Times says, “frozen or divested” gun holdings, and Calpers, the fund for other California public employees, may join this gesture jamboree this month. All this is being compared to the use of divestment to pressure South Africa to dismantle apartheid in the 1980s.
Guns are as evil as “apartheid” and thus should be dealt with the same way. Because everyone knows that owning a gun is precisely the same as being an oppressive racist using the power of government to enforce your racism. Or moralism.
Never mind the fact that:
Guns are legal products in America, legally sold under federal, state and local regulations. Most of the guns sold to Americans are made by Americans. Americans have a right — a constitutional right — to own guns, and 47 percent of U.S. households exercise that portion of the Bill of Rights by possessing at least one firearm.
The left, as it usually does, is going to demonize an industry just as they have the fossile fuel industry. Amusingly, that too is one of the left’s “apartheid divestment” moves.
Moral grandstanding, however, offers steady work, and the Chronicle of Higher Education reports a new front in “the battle against climate change”: “Student groups at almost 200 colleges and universities are calling on boards of trustees to divest their colleges’ holdings in large fossil-fuel companies.” Of course, not one share of those companies’ stock will go unsold because academia is so righteous. Others will profit handsomely from such holdings and from being complicit in supplying what the world needs. Fossil fuels, the basis of modern life, supply 82 percent of U.S. energy, and it is projected that they will supply 78 percent of the global increase in energy demand between 2009 and 2035, by which time the number of cars and trucks on the planet will have doubled to 1.7 billion.
Of course, that’s not a problem for fossile fuel companies because their stocks aren’t going to go without a buyer. Institutional investors who actually are interested in helping build wealth in a portfolio will snap them up. What will suffer? University endowment funds, that’s what. Most people would call that sort of moral preening a “self-inflicted wound”. It won’t change a thing, it’s moral relativisim at its worst and someone else will be happy to take the dividend income those boobs are foregoing.
Institutions of higher education will, presumably, warn donors that their endowments will be wielded in support of the political agenda du jour, which might include divesting from any company having anything to do with corn, source of the sweetener in many of the sodas that make some people fat and New York’s mayor cranky. Or anything to do with red meat, sugar, salt, trans fats, chickens not lovingly raised . . . .