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StreetScooby

Businessmen Versus Bureaucrats

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Thought this was a very good article.
Here's the link, and I've copied the article, also.

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There are generally just two ways people deal with each other: with reason or with force.

Reason is the businessperson's approach. Regardless if he is a trader, a CEO or lemonade-stand operator, the capitalist understands that if he wants something from you, he's got to offer you a value in return. He can't force you to buy his real estate, "green" energy, or failing auto company, he can only try and convince you though discussion and trade that it's in your own self interest. The choice is always yours.



Businessmen Versus Bureaucrats

Here's the complete article:

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TRADECRAFT
JULY 23, 2012, 11:57 A.M. ET

Businessmen Versus Bureaucrats
Hoenig: The government increasingly relies on force, rather than reasoning with people the way businessmen do.

By JONATHAN HOENIG

There are generally just two ways people deal with each other: with reason or with force.

Reason is the businessperson's approach. Regardless if he is a trader, a CEO or lemonade-stand operator, the capitalist understands that if he wants something from you, he's got to offer you a value in return. He can't force you to buy his real estate, "green" energy, or failing auto company, he can only try and convince you though discussion and trade that it's in your own self interest. The choice is always yours.

That basic fundamental negates the cliched and commonplace assertion, popularized even by our own elected officials, that trade is destructive and that profit-seeking businessmen are evil. In reality, just the opposite is true: Regardless if it's for a share of stock, an education or a sandwich, voluntary trade is productive as both parties' needs are satisfied. After all, that's why they're trading.

Force is not the tool of businessmen, but of bureaucrats. Whereas a businessman must appeal to your mind, government bureaucrats effectively put a gun to your head. They force you to you pay for banks, insurance companies, and deadbeat homeowners. They also force businesses to sell certain types of products, offer certain types of wages and operate in a certain fashion.

If a hooded thug stole your savings or tied your arms behind your back, we'd call it a crime. It's still a crime even though it's a suit-wearing bureaucrat doing the stealing.

In a free market, the economic power achieved by Wal-Mart (WMT: 72.14, 0.29, 0.40%), McDonald's (MCD: 88.06, -0.88, -0.99%) or any other successful company has been earned, not expropriated.

And while a businessman can't insist you to act against your own judgment, our government can and increasingly does, Obamacare is just the latest example of government force replacing individuals' own voluntary judgment regarding what's in their own self interest.

Stripped of the flowery language about how "we are our brother's keeper" and "the common good", government intervention into the free market is done by those who believe your judgment or voluntary choice is moot.

For over four years, government has been engaged in an arbitrary campaign purportedly to spur economic growth. Every single initiative, from stifling regulation to "Cash for Clunkers" to inflationary manipulation of interest rates has involved the use of government force, the result of which has been more debt, less liberty and continued economic lethargy. Economic freedom, as we wrote last year, remains the one stimulus that has yet to be actually tried.

The reason the average income in communist North Korea is $1,800/year compared to nearly $50,000 in the United States isn't because the water in New York Harbor is any different than that in Pyongyang. Rather, it's the ideas and dominant philosophy that determine the result. North Korea, like Cuba, Venezuela, Zimbabwe and a long list of other collectivist countries, employ force against their own citizens as a matter of practice. The results speak for themselves.

The United States' historical success came not from natural resources or global plunder, but ideological commitment to reason. From the smallest start-up to the S&P 500's biggest names, wealth is a product of man's capacity to think: to deal with others in voluntary, mutually beneficial and productive trade.

If Washington and the American people are looking for a "secret sauce" to remedy our economic malaise, that's it.

Jonathan Hoeing is managing member at Capitalistpig Hedge Fund LLC
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The article would be an excellent starting point for a one-semester course in logical fallacy and how it's used in contemporary politics.



What are you seeing as a logical fallacy?


Here ... THIS might help.

I will buy you a bottle of fine imported beer for each fallacy you can identify in the article. ;)

Here's one:

Proof by verbosity

Proof by verbosity, sometimes colloquially referred to as argumentum verbosum - a rhetorical technique that tries to persuade by overwhelming those considering an argument with such a volume of material that the argument sounds plausible, superficially appears to be well-researched, and it is so laborious to untangle and check supporting facts that the argument might be allowed to slide by unchallenged.

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That basic fundamental negates the cliched and commonplace assertion, popularized even by our own elected officials, that trade is destructive and that profit-seeking businessmen are evil. In reality, just the opposite is true: Regardless if it's for a share of stock, an education or a sandwich, voluntary trade is productive as both parties' needs are satisfied. After all, that's why they're trading.



Productive for whom exactly? Left to their own devices, most business people would cut off your head and shit down your throat if it meant making extra money.
~D
Where troubles melt like lemon drops Away above the chimney tops That's where you'll find me.
Swooping is taking one last poke at the bear before escaping it's cave - davelepka

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>what fallacy do you see in the author's article?

Here are a few:

>If a hooded thug stole your savings or tied your arms behind your back, we'd call it a >crime. It's still a crime even though it's a suit-wearing bureaucrat doing the stealing.

Misdirection. Yes, it is a crime if a "suit-wearing bureaucrat" stole your savings or tied your arms behind your back. It is not a crime if either the hooded thug or suit-wearing bureaucrat told you you had to pay your taxes, or make good on your mortgage payment.

>Stripped of the flowery language about how "we are our brother's keeper" and "the
>common good", government intervention into the free market is done by those who
>believe your judgment or voluntary choice is moot.

False dichtomy. Those are not opposites. Someone who supports veteran's hospitals (a clear government intervention into the healthcare system) does not necessarily "believe your judgment or voluntary choice is moot."

>Force is not the tool of businessmen, but of bureaucrats.

Just plain wrong. Force is indeed used by both. Try to get a mortgage from a good businessman then refuse to pay the bills. They will use force to evict you from the house and toss you on the street.

Would you like any others?

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Productive for whom exactly? Left to their own devices, most business people would cut off your head and shit down your throat if it meant making extra money.



In general, business transactions should be win/win for everyone. Otherwise, one party walks away. So, to answer your question, its productive for both parties involved.
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>If a hooded thug stole your savings or tied your arms behind your back, we'd call it a >crime. It's still a crime even though it's a suit-wearing bureaucrat doing the stealing.

Misdirection. Yes, it is a crime if a "suit-wearing bureaucrat" stole your savings or tied your arms behind your back. It is not a crime if either the hooded thug or suit-wearing bureaucrat told you you had to pay your taxes, or make good on your mortgage payment.



Mortgage payments fall in the realm of business transactions. You entered into that agreement, so you need to meet it.

Taxes on the other hand apparently have no limit, at least in Obama-land. It can, and has, reached a point where it's no longer voluntary.

That's the distinction that's being made.

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>Stripped of the flowery language about how "we are our brother's keeper" and "the
>common good", government intervention into the free market is done by those who
>believe your judgment or voluntary choice is moot.

False dichtomy. Those are not opposites. Someone who supports veteran's hospitals (a clear government intervention into the healthcare system) does not necessarily "believe your judgment or voluntary choice is moot."



Again, what limits on taxation exist? Right now, there appear to be none.

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>Force is not the tool of businessmen, but of bureaucrats.

Just plain wrong. Force is indeed used by both. Try to get a mortgage from a good businessman then refuse to pay the bills. They will use force to evict you from the house and toss you on the street.



Once you've voluntarily entered into a business transaction, then you are expected to uphold it.

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Would you like any others?



Sure.
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Bill, I think the point that you are missing is that business, when managed properly is regulated by choice. Yes some business men may slit your throat for a dollar, however, if you don't like dealing with him, you don't have to enter into an agreement and you can just walk away.

Government on the other hand, you can't walk away from. Government regulations as we have learned, are so long, ambiguous and encompassing, coupled with the fact that politicians frequently lie about what in them that we are starting to loose track of whats legal and illegal. And if you don't like a regulation, you can't walk away from it.

And good luck trying to get it repealed.
"There is an art, it says, or, rather, a knack to flying. The knack lies in learning how to throw yourself at the ground and miss."
Life, the Universe, and Everything

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Productive for whom exactly? Left to their own devices, most business people would cut off your head and shit down your throat if it meant making extra money.



Bull shit
"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

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Productive for whom exactly? Left to their own devices, most business people would cut off your head and shit down your throat if it meant making extra money.



In general, business transactions should be win/win for everyone. Otherwise, one party walks away. So, to answer your question, its productive for both parties involved.



Maybe win/win for the two making the trade, but at the end of the day the people working for these companies are the ones who end up suffering when there is no reasonable expectation of a labor standard, etc.

Most people running a business who are allowed to pay their employees less, would, provided they can find people willing to do the work. It's more money for the owner. Most people aren't in business to make their employees rich. This is one of the predominant reasons that we have problems with undocumented immigrant workers.

You also really don't need to go that far back in history to find substantially terrible working conditions for industrial workers, etc. Hell, that stuff still happens in places where there are no good regulations to prevent it.

While it's true that in the long run, everyone wins when employees are treated and compensated fairly, most people in power and running a business only care because the social pressure exists to care, which is due to government forced labor standards. The general nature of humans tends towards greed and self preservation in most circumstances. Even the politicians who force this stuff on businesses in the name of the greater good are only doing it for self motivating factors.

Wake up and smell the coffee, people aren't generally nice to one another on a large scale when the choice comes down to me or him.
~D
Where troubles melt like lemon drops Away above the chimney tops That's where you'll find me.
Swooping is taking one last poke at the bear before escaping it's cave - davelepka

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Productive for whom exactly? Left to their own devices, most business people would cut off your head and shit down your throat if it meant making extra money.



Bull shit




It's not like there are any good examples of this.
~D
Where troubles melt like lemon drops Away above the chimney tops That's where you'll find me.
Swooping is taking one last poke at the bear before escaping it's cave - davelepka

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Productive for whom exactly? Left to their own devices, most business people would cut off your head and shit down your throat if it meant making extra money.



Bull shit




It's not like there are any good examples of this.



Wide brush stupid statements standout for what they really are

That is why people who make them get called on it
"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

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>Mortgage payments fall in the realm of business transactions. You entered into that
>agreement, so you need to meet it.

Agreed, and if you refuse, you will be forced out of your house. Thus his claim that "Force is not the tool of businessmen, but of bureaucrats" is incorrect.

>Again, what limits on taxation exist?

You get to elect the people who decide what your taxes will be.

>Once you've voluntarily entered into a business transaction, then you are
>expected to uphold it.

Agreed. Once again you have demonstrated a fallacy of the author.

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Productive for whom exactly? Left to their own devices, most business people would cut off your head and shit down your throat if it meant making extra money.



Bull shit



Coming from a Koch Brothers employee, this is pathetic.

What do you think your superiors are up to? Tiddlywinks?

The Koch Brother are cutting off the heads of the middle class and shitting down our throats so as to preserve and expand their empire and influence.

Only the willfully blind and ignorant don't see it.

Your paycheck depends on moral and spiritual blindness. Severe skill in demonstrating these attributes is displayed in this venue.

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It's more money for the owner.



That's why people start businesses. You're free, at least at this point in time in America, to go start your own business.

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While it's true that in the long run, everyone wins when employees are treated and compensated fairly, most people in power and running a business only care because the social pressure exists to care, which is due to government forced labor standards.



I'm not saying there isn't a role for government. The question is - what limits exist there?

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The general nature of humans tends towards greed and self preservation in most circumstances.



Yes, that's commonly referred to as acting in one's own self interest. Which is what markets are all about. Everyone acting in their own self interest, but engaging in business transactions that benefit both parties in some way. If there isn't benefit to both parties, the business transaction doesn't happen. It's self regulating that way.
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>Bill, I think the point that you are missing is that business, when managed properly
>is regulated by choice.

No, it's regulated by mandate. If you let them make their own choices we get Enron, and Standard Oil, and Homestead Steel.

If businessmen could knock down your door, take all your money, leave you with nothing and then force you to work for them, they would - and they'd offer services to do that to other people for a low, low price. What stops them? That evil government, which passes laws that prevent theft and unfair labor practices.

> And if you don't like a regulation, you can't walk away from it.

And for people as a whole - that's a good thing. That's why you can work for a company, get paid a steady wage, be secure in your home etc etc. (Google "truck system" for an example of what a company does when it can.)

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If businessmen could knock down your door, take all your money,



Ok, so you're counting the Mafia as a business here. I don't think most people having this discussion would consider them to be valid businessmen.

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Agreed, and if you refuse, you will be forced out of your house. Thus his claim that "Force is not the tool of businessmen, but of bureaucrats" is incorrect.



Using the legal framework provided by our judicial system, which yes of course, is provided by our government.

What legal principles limit the actions of bureaucrats?

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Once again you have demonstrated a fallacy of the author.



We'll have to agree to disagree on this one.
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>Ok, so you're counting the Mafia as a business here.

The Mafia doesn't do that because they like to be mean. The Mafia does that because it is profitable to do so. That's the point.

Fortunately, we have laws that prevent most companies from doing that.

>Using the legal framework provided by our judicial system, which yes of course, is
>provided by our government.

Agreed!

>What legal principles limit the actions of bureaucrats?

Constitutionality and electability. You have control of one of those fortunately.

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Yes, that's commonly referred to as acting in one's own self interest. Which is what markets are all about. Everyone acting in their own self interest, but engaging in business transactions that benefit both parties in some way. If there isn't benefit to both parties, the business transaction doesn't happen. It's self regulating that way.



In an informed society which chooses to act together, sure. Billvon has mentioned a few more examples of this concept not being true. I linked one. Your premise breaks down when you scale up to society.

If minimum wage went away, it wouldn't take long for businesses to move the general pay scale a lot lower. At first you would have a choice, but in the long run, things would adjust in favor of the business owner. Most businesses would go for the short run gains, then cut and run if things failed.

There are even examples of this in skydiving (see: skyride).


I am a firm believe that most things should be ok for people to do. Drugs, prostitution, gun ownership, etc, really whatever. I don't care one bit what a person wants to do. The purpose of government should be to provide a stable national defense, basic infrastructure and intervene when something that I choose to do makes problems for someone else and that's it. Fair labor standards falls into basic infrastructure.

I do think that the government goes way too far in many things, but to fix that problem a whole lot is going to have to change.
~D
Where troubles melt like lemon drops Away above the chimney tops That's where you'll find me.
Swooping is taking one last poke at the bear before escaping it's cave - davelepka

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