Many people write or speak to tell us what we should think. Some want to be believed because they are experts, or think they are. Some want to be believed because they claim to speak for us. Some have had revelations. Others want us to trust them because they communicate through prominent media outlets. Many tell us what we should think. I write to encourage my readers to think for themselves. I write to ask you to inquire. Question me. Have fun.

  
Comment of the Day
How to pay for the wall?

Apr 04, 2017

If you want to build the wall, pay for it with your own money. How much of your own money are you willing to donate? Trump received 62,979,879 votes. If each of Trump’s supporters voluntarily donates at least $1,000, which corresponds to about $42 per month for the next two years, and if we encourage those who are more affluent to double their donations, then Trump can have on hand about $100 billion, which may suffice for a substantial piece of the wall. Hence, all of you who are talking loudly about spending my money on building this wall, stay away from my wallet, but open your own wallet and send money to the “Build the Wall Fund.” Put your money where your mouth is.

PREVIOUS COMMENTS
What is wrong with Russia?
Dec 22, 2015

It appears that Russian leaders cannot free themselves from the medieval concept of regional influence, where weaker neighbors were subdued into becoming serf states. Is anyone capable of explaining to them that in these times of a global economy, any influence comes from economic strength? Russia, thanks to its size, natural resources and well-educated labor force, has everything that it takes to maintain a dominant position in the region, just by maintaining free trade with all its neighbors. It can do so without military interventions in Georgia and in Ukraine. Russia has everything that it takes to be a respected wealthier neighbor, to whom everyone in the region would turn for help when needed. Instead, it is a bully and a hooligan. It would take so little to change that. But it is so hard for Russia to do it. 

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Closed mind for closed borders
Nov 19, 2015

Known to some as a libertarian, Llewellyn H. Rockwell Jr. speaks against open borders. His argument is that it is an infraction against private property. He misses the point that most people migrate just because Mr. Rockwell’s neighbors want them on their private property – for picking apples, washing the dishes or writing a computer code. Then, Mr. Rockwell wrongly laments that those foreigners invited by his neighbors violate his private property rights by loitering in the public spaces that he frequents. He wants the government to deny the rights of his neighbors to do on their private property whatever they wish, so he will not need to face immigrants in the public spaces. Mr. Rockwell left the train called “liberty” at the station called “xenophobia.”    

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They do not know…
Sep 14, 2015

Mr. Trump says: “A lot of what I’m doing is by instinct.” I prefer that our President would make decisions based on systematic due diligence. The instinct that guides Mr. Trump in his professional life arrives from his vast experience, starting when he was growing up under the mentoring of his successful father, followed by a solid education and years of practice. Mr. Trump's confidence is misguiding, as it gives his supporters the illusion that someone who mastered real estate dealing can be equally skillful as President. It is similar to the illusion surrounding Dr. Carson, that he can be as good a President as he is a brain surgeon. If both gentlemen were humbler, they would realize that they qualify to be President equally as much as Mr. Trump qualifies to conduct brain surgeries and Dr. Carson to run Mr. Trump’s real estate empire. The problem is not that they do not know many things they should; the problem is that they do not realize that.

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Freedom cannot be legislated, its restriction can
Mar 31, 2015

Indiana voted in the Religious Freedom Restoration Act. In his WSJ piece, Gov. Mike Pence claims it was needed to protect the religious freedoms of Hoosiers. Every legislative act by its nature limits someone’s freedom. The only way of increasing freedom is by identifying existing laws that curb personal liberties and then eliminating them.  Hence, if Gov. Pence sees that under some circumstances, the religious freedoms of Hoosiers are not respected, he could correct the situation by eliminating laws causing this problem. We have the Bill of Rights, and it suffices. No “enhancements” are needed.

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Greed-driven health care
Feb 27, 2015

The solution to our health care crisis is in the implementation of more market-driven mechanisms into our health care policy. This is the only way to give patients the freedom to make decisions regarding their care between them and their doctors; not having these decisions made by faceless bureaucrats. The biggest obstacle in implementing a change of this kind is in a deep public conviction that the introduction of the free market into health care will result in doctors, hospitals, the pharmaceutical industry and everybody else involved being guided by their greed, not the best interests of sick people. The biggest challenge in overturning Obamacare is not in Washington. It is in winning the argument with Americans that free-market-driven health care can serve their needs much better than the government-distributed one.

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Immigration inaction
Feb 17, 2015

Congress could not agree on the immigration reform. President Obama resorted to executive orders. Now he is stopped by a court order. It is sad to see that this legal wrangling substitutes for real discussion on why we have this immigration crisis and what we should do to get it resolved. Most Americans have strong, ideologically motivated views about immigration. If they were right, the policies implemented would work, and we would not have a problem anymore. We have an ongoing problem because most Americans are wrong in their understanding of what caused massive illegal immigration and what we should do to get it corrected. There will be no progress until someone  addresses this problem. For more about why we have this immigration mess go here.  

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The price is always right…

…Prof. Krugman is wrong

In his column “The Price Is Wrong” Prof. Krugman argues with the free market proponents on how to address our unemployment. The Austrians, as Prof. Krugman calls them, see the solution by forcing presently unemployed to go back to work at suppressed wages by cutting off “moocher-friendly programs like food stamps, unemployment benefits, disability insurance, and whatever.” Prof. Krugman calls this approach “prima facie absurd.” I would take a second look at this option.

Somewhere in between, Prof. Krugman takes a cheap shot at his opponents claiming that: “it doesn’t matter what you say about their position, any comprehensible statement leads to angry claims that you don’t understand their depths.” My stake in it is that, as an engineer and a businessman, I have no problem in understanding the so-called Austrians, but see lapses in the reasoning of Prof. Krugman. Hence, let us leave Austrians alone, and let me focus on my understanding of Prof. Krugman, hoping that one day he may write something allowing a layman such as myself to comprehend his reasoning.

No doubt Prof. Krugman knows much more about economy than I do. What makes me nervous is Prof. Krugman’s confidence that he is knowledgeable enough to be a master economy manipulator. In this sense, I have a fundamental disagreement with Prof. Krugman as I envision government as an arbiter guaranteeing equal liberties of enterprise for all private ventures, big and small. My field experience tells me that when given freedoms of enterprise individuals pursuing their selfish goals always will come up with creative ways to resolve all of our big problems; much better than the central government with all the professors advising it.

As an engineer I spent a big part of my professional live troubleshooting and fixing problems. It strikes me that Prof. Krugman does not even mention any reasons for our current market disequilibrium. He does not attempt to fix the problem by analyzing and eliminating its causes. For him our high unemployment is a god given cataclysm, such as a tornado or earthquake, and the government should address it accordingly, by throwing money at it.

The real problem is that American economy is not competitive in the global market anymore. We have great infrastructure, we have technology, and we have human capital. Hence, why is it so bad when it is supposed be very good?

Our immigration policy is a bunch of nonsense. In Canada, 19.8% of population is foreign born; it is 12.9% in the U.S., including illegal immigrants. That 7% difference amounts to about 20 million of workers and consumers that we need. Opponents of increased immigration bring up high unemployment. We have it due to mismatching of supply and demand caused by our immigration policy. Guest workers would fill the gaps. In my completely unscientific estimate every 1000 low wage workers would create about 200 well-paid managerial and blue collar jobs. This is the way to deal with unemployment. Government seems to be confused how to address this issue and this constitutes uncertainty of the markets, resulting in postponing investments. I would not be myself, if on this occasion I did not mention that I prepared the immigration reform proposal called the Freedom of Migration Act.

Presently government directly runs 45% of our healthcare, but practically controls it all. We all agree that our healthcare system is unacceptably inefficient. Instead of freeing the market from the present government inefficiency, somehow Americans were lured into supporting even greater role of the government in our healthcare system. Business people understand dangers they face in 2014, and it is the factor causing many of them to sit on cash and wait. Again, I prepared a market driven health care reform proposal called life cycle health insurance.

It is five years since the housing market collapse. The government assisted banks too big to fail but had no clear policy for homeowners trapped in the game run by big boys. This impoverished many Americans, and left almost nonexistent the housing market, usually one of the economy motors. Again, this uncertainty made many people with money stay on the sidelines and wait for the dust to settle. As a reader may guess it, I prepared the plan to help homeowners as well.

On top of the above we have a swarm of petty government regulations on all levels making it much harder for a person of limited means to open a new business. Consequently, fewer people than ever before does it. Summarizing, we need more capitalism, less socialism.

For Prof. Krugman it is a much easier problem. His recipe seems to be in more government spending, by increasing debt (eventually taxes will need to pay it) or by currency manipulation. He sees wealthy people and big corporations sitting on an abundance of cash and not willing to open new businesses because there is not enough demand for products and services they might offer. He is not interested to find out what obstacles the government should remove in order for these people to start investing. His thinking is how to use the power of the central government in order to force these riches to put their money in motion against their free will. As a businessman, I can assure Prof. Krugman that regardless of how clever the government policy is, no business person will stay in business unless there is profit to be made, and that the intrusiveness of the government is always outsmarted by the ingenuity of business people.

Instead of scratching his head on how to steer people into opening new businesses, into creating a new wealth, Prof. Krugman’s recipe is in increased government spending, so instead of becoming inventive in producing new wealth, people put their ingenuity in getting access to the government distributed wealth already created. This is not the way to expand economy; this is moving money from the left packet to the right one.

However, maybe I am missing something. Let us just make a few calculations how that increased government spending could work.

Let us say, that the government through taxes or currency manipulations takes from me $1000 and gives it to my potential customers; then let us assume that they will spend all that money on my products. Let us say that I need an additional $800 (and let us assume that I have it or can borrow it) to produce whatever my customers are willing to pay me $1000. After everything is set and done I will lose $800, instead of $1000 I will have only $200, but my customers will gain $1000 in value of my products. In total it will be $1,200. One may say that thanks to government intervention we enriched society as a whole, of $200. Isn’t wonderful?

It is not, as it can work only as long as my wealth is unlimited. Eventually my money will run out or I will run away with my money (many big corporations already keep their cash reserves abroad) and the government will need to address the original problem: why I did not want to use my money on my own will? The trick as above, could work if my customers getting that extra $1000 would use this additional cash to start or expand a business, and generate a new wealth this way. However, they face the same obstacle as I do; it is as hard for them to make a profit as it is for me. Hence, most of the $1000 that the government took from me and gave to others will go to consumption. After that we will be back at square one.

Will the logic change if it will be a trillion dollars? This might be the reason that some Austrians agree with Prof. Krugman that “printing money (…) and government borrowing drive up interest rates;” however, to Prof. Krugman’s discontent say: “but not here, not now.”

About me

I was born in 1951 in Gdansk, Poland.
Since my high school years, I have interest in politics and love for writing. During my college years, I started writing to student papers and soon became freelance author to major Polish political magazines.

In 1980 I wrote a book “Czy w Polsce może być lepiej?” (“Could it be better in Poland?” – this book is available only in Polish) analyzing major problems in Poland at the time and outlining possible solutions.

I was among those Polish political writers who by their writings contributed to the peaceful system transformation that finally took place in 1989. Since 1985, I live in the Chicago area. I went through the hard times typical of many immigrants. Working in service business, I have seen the best and the worst places, I met the poorest and the richest. I have seen and experienced America not known to most of politicians, business people, and other political writers. For eleven years, I ran my own company. Presently, I am an independent consultant.

My political writing comes out of necessity. I write when I see that the prevailing voices on the political arena are misleading or erroneous. Abstract mathematics and control theory (of complex technological processes) strongly influenced my understanding of social phenomena. In the past, my opponents rebuked my mathematical mind as cold, soulless, and inhuman. On a few occasions I was prized for my engineer’s precision and logic.

I have a master’s degree in electronic engineering with a specialization in mathematical machines from Politechnika Gdańska (Technical University of Gdansk).

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