THIS 70's Show

When I think of the 70's a myriad of images comes to my mind.  On the one hand there's the fashions, like the leisure suit, platform shoes, spread-collared shirts unbuttoned to the waist with layers of gold chains handing down onto hairy chests, the smell of Aqua Velva, Brut, Hai Karate, and other best selling fragrances, etc.   There's also the images of John Travolta in his white polyester suit and black shirt disco dancing across the screen or bopping down the streets of Brooklyn in his leather jacket and long hair, movie s like Jaws, Star Wars, and more.  And who could forget Charlie's Angels and that poster of Farrah Fawcett in the swimsuit?  But, not all the images I recall from the 70's were as good.  I also recall the long lines at gas pumps, double digit inflation, double digit unemployment, and events like Watergate, The Iranian Revolution and Hostage Crisis, etc.

I can't decide which images disgust or frighten me more.  There is the image of my parents decked out in the fashions of the day practicing their disco moves in our basement with their friends, or the ones that showed up on the television night after night on ABC's "The Iran Crisis: America Held Hostage" which propelled Ted Koppel to stardom and served to create the long running "Nightline" series on ABC News.  There were the conversations about the latest fashion trends, esp the ones that took place at my house when Dad put on his first leisure suit, and the ones I remember about how they were going to pay the bills this month because everything seemed to cost so much more than it had a few short weeks ago.  I remember the discussions about whether my Mom should take extra shifts at the hospital or whether Dad should get a part-time second job.  I also remember my grandparents talking about what became of their money as well, and they were what I considered "rich" at the time.

As you can see, the 70's was not as it is shown in the popular sitcom "That 70's Show."  Sure the hairstyles and clothing are somewhat accurate, but there seems to be no mention of the economic and social malaise that plagued the country from the late 60's until the early 80's.  Notwithstanding the fact the the show at issue is a sitcom, still you would think there would have been some allusion to the realities of that decade.  If I had to guess a reason for these critical omissions, I would imagine it had something to do with the fact that the writers of that show were either not alive or not old enough to really REMEMBER the 70's. 

The same must be true of the writers of textbooks used by middle and high school students today, because I find the same lack of historical accuracy present in those tomes.   But this is not by accident.  After all, if you distort history when teaching it to those too young to have experienced it first hand, eventually those young people will outlive the ones that actually lived the history, so the only recollections to survive will be the distorted ones learned through the schools effectively re-writing and thus changing history.  If those who cannot remember the past are truly condemned to repeat it, then we're in for a nightmare of epic proportions.  

In all the reasearch I've done on the history of the 70's I can find any number of references to Watergate, Nixon, the evil Republicans, the Vietnam War Protests, Kent State, etc.  What is surprisingly absent from these historical references is any mention of the double digit inflation, double digit unemployment, out of control drug and sexual behaviors, the anarchy of groups like The Black Panthers and even The Weather Underground (Bill Ayers, ring a bell?).   Also missing is any suggestion as to the CAUSE of the economic miseries endured throughout the 70's.  It is our own "lost decade" and this fact seems to have been "lost" to the liberal writers of history.

Fortunately for me, I don't have to rely in these libral historians for my recollection.  When the 70's began, I was a student in elementary school.  When they ended, I was graduating high school.  I was too young to get into the discos and lose myself in the cocaine and casual sex of the disco era.  I didn't get my first fake ID card until after I had graduated from high school and was on active duty in the US Navy so I actually REMEMBER the 70's quite well.  I also had the good fortune to take one of the only economics courses in college I was able to stay awake in  from a professor who was so hell bent on discrediting Ronald Reagan's economic policies, that he was forced to look honestly at the economic misery of the 70's and at it's root cause.  That root cause, in a nutshell, was the rampant overspending by the US Government in the 1960s.

Now let's disect that statement a bit because I realize it is a loaded one.   That said, look at what was taking place during the 1960s.  At the beginning of the 60s, Kenendy was President and in the first year of his term we had the Bay of Pigs debacle, the Cuban Missile Crisis, and the beginnings of the Vietnam Conflict.  You also had the beginning of the Civil Rights Movement, and other such societal changes.  After Kennedy's assasination in 1963,  Lyndon Johnson took over the Presidency and in relatively short order, the conflict in Vietman was escalated to a full blown war, necessitating great increases in spending, and at the same time, you had the creation of the welfare state, ironically referred to as "The Great Society."  Wars are expensive, as we've just had a recent remider of, and social engineering is, likewise, very expensive.

Ironically, it was the latter, the welfare state, that so bloated the federal budget that we were in deep deficit spending before the end of Johnson's first term of office.  The argument for the Great Society was that with the new found freedoms earned as a reasult of the civil rights movement, the US had a duty to help care for and support minorities as they were integrated into our society.  While this sounds good, as most liberal social engineering programs do, it was a LIE.  Lyndon Johnson, like Andrew Johnson (no relation) before him, was a rabid racist.  He did not want minorities integrated into society, but rather wanted to keep them segregated on their side of town without using the "S" word and offending his liberal constituents. 

The whole premise of the welfare state was to say to minority citizens that if they would agree to live where the government told them to, and vote the way the government told them to, that the government would see to it that they would have everything they needed to live comfortably, if not well, and that all they had to do was to behave and stay out of everyone else's way.  Rather than integrating minorities into our society it had just the opposite effect, as most social engineering programs do.  It created a welfare dependent class that contributed nothing but debt, illigitimate children, and drugs to our culture.  This resulted in increases in welfare recipients and the prison population all of which were spiralling out of control until the system was finally reformed by one William Jefferson Clinton.  But the evils of welfare is the subject for a whole different article altogether.

The point of the comparison was that the spending of the 60's was what caused the double digit inflation and unemployment of the 70's.  Now the difference between the spending then, and the spending now is that in 60's we were spending our own money.   We weren't borrowing it from the Chinese or anybody else.  Also, the social security trust fund was still intact and not a Ponzi scheme like it is now.  Add to that, the amount of spending then pales in comparison to the amount of spending now, even after you adjust for inflation, cost of living increases, etc.   If spending our own money caused us to lose a decade, what do you think spending borrowed money will do? 

%o put it in the form a model everyone can relate to, this would be the equivalent of attempting to save money by not paying your monthly bills with your salary, but rather by taking out a credit card for each such bill, paying the bill with the credit card, and making the minimum interst payment on each card every month.  In the beginning you would save money by making only those minimum payments instead of paying the full amount of the bill, but how long would it take for you to max out that card and have the minimum payment ballon to where it exceeded your regulary monthly bill payment?  Now imagine doing that for every bill you have each month.  Eventually the minimum payments would exceed your bills, your cards would be maxed out, and the bills would keep on coming.  No one in their right mind would do that, would they?

Well, you might think that, but in my 10 plus years working as a bankruptcy paralegal I saw exactly that same scenario over and over again.  This is exactly what our own government is doing as we speak.  If spending REAL money caused us to lose a decade, imagine what we're looking at with what's happening today? 

Every time I hear some politician or political pundit talking about today's economy being the worst since the Great Depression, I want to scream at my TV "What about the 70's you Moron?" Sometimes I even DO, because most the politicians and pundits ARE old enough to have some memories of that "lost" decade, even if they were too busy doing coke and having rampant casual sex in the local disco to remember ALL of it.    But for those of whose only reference to the 70's is the sitcom "That 70's Show," or the distortions of liberal historians, THIS 70's show is not going to be a sitcom and it's going to last a lot longer than half an hour.

Thanks in no small part to this admininistration's unrealistic attitudes towards the production of domestic energy, we're likely to see a repeat of another familiar icon from the 1969s. I remember very well the long lines at the local gas station or the sign "Sorry, Out of Gas" that appeared at the most inopportune of times.  Like it or not, gasoline is the life blood of this country and as long as alternative energy is not in our foreseeable fugure, we're going to have to provide the oil we need domestically which would help solve the unemployment problem to some extent, pr we're going to have to continue to transfer massive asmounts of our wealth to nations that do not have our best interests at heart.  We can no more stop using gasoline than we can stop using oxygen and if you think the French went wild over lack of bread, wait til you see Americans without affordable gasoline or other energy.   Exploiting the tragedy of the gulf  rig explosion  to artificially reduce the supply and increase the cost of energy to the average citizen is reprehensible at best. Likewise, closing down offshore oil rigs will only lose many more jobs, result in the rigs being dismantled and taken to a more user friendly location, and the oil that should be ours will be lost to the Chinese now drilling off the cuban coast in SHALLOW waters.  Where's the sense in any of THAT?

Unlike the REAL 70's which we got through in discos, snorting coke, and boffing our brains out with any partner that would stand still and let us, this generation is not going to have such pleasant diversions.   But, for the benefit of those that missed the original "lost decade", thanks to our failed war on drugs, the coke supply is still up to meeting the demand, and thanks to liberal social engineering in our schools, casusal sex is as plentiful today as it was then.  Finally, thanks to "Mama Mia" you can still hear ABBA on the radio, in FM stereo instead of AM mono this time. Who says you can't improve on an original?

The Gifts of a Dictator

In ancient Rome a man by the name of Gaius Julius Caesar came to power because he understood a very simple principle. He understood that the average Roman citizen preferred the gifts of a dictator to earning those same things through their own industry and effort in the free market economy that Rome was fortunate enough to have at the time. Caesar consolidated his power by using the spoils of his conquests in Germany, France, and Briain to buy the affection and loyalty of the common or plebian class of Rome. In doing this, he violated the age-old undertanding with his fellow nobles of the Patrician class which ultimately led to his assasination at the hands of those self-same Patrician senators he had angered.

Consider the key words in the pharae "Gifts of a Dictator" and you get a clearer picture of why such gifts are not, or should not, be preferable to the rewards earned in a free market economy. The first word, "gift" implies something given freely and with love from a friend, relative, or loved one. Gifts conjure images of Christmas, birthdays, families and friends. These are generally positive images that invoke warm and fuzzy sentiments. Now consider the word "Dictator" and a much different image comes to mind. Personally I think of the more tryannical Caesars such as Tiberius, Caligula, and Nero. If you're less inclined to the classics, you have the more modern examples such as Stalin, Hitler, Castro, Pol Pot, etc. These names definitely do NOT invoke any warm and fuzzy sentiments.

The gifts from a dictator are very likely to come with serious strings attached and it is those strings that make the case for NOT taking any gifts from a dictatorial entity. After all, the entity that has the power to give gifts also has the power to take them away whereas what you earn by your own efforts, no one can take from you with the possible exception of the government by taxation.

If you need a more concrete example of why a political encomony is not a good thing, take a look at the largest political economy in modern history, the former Soviet Union. In the last 70's, the era of the leisure suit, platform shoes, and discos like Studio 54, there was a climactic anomaly that started with an unusually early warming period followed by a very bitter cold snap. This resulted in the decimation of the corn and grain crops of the former Soviet Union and did considerable damage to the US farmers crops as well. The difference was that unlike the farms of the Soviet Union, which suffered more than 90% crop losses, the US farms only suffered about 30% losses. The US farmers were able to sell their crops at a higher cost, but they were still able to feed not only the US, but were able to sell food to the Soviet Union as well. Though there was no formal trade between the US and the Soviets at the time, President Carter offered to sell food to Premier Leonid Breznev to keep the Russian people rom starving and possibly preventing another Russian Revolution.

Anyone who has ever looked at a map of the former Soviet Union couldn't help but notice that the USSR had signicantly more farmland than the USA. Also noteworthy is the fact the farms in the Soviet Union were not the small family farm operations that we have in the USA, but rather that the farms in the Soviet Union were large collective industrial operations with thousands of workers whose career path had been predestined by their aptitude test scores at the elementary school level. Notwithstanding the fact that these farm workers were less than thrilled with their jobs, they still had to DO the work or they risked ending up in the army or a gulag. Given these seeming advantages, why were the Soviets unable to feed their population without our assistance.

The answer is very simple. Because US farms are predominantly family owned small businesses, when the crops were in danger of freezing, US farmers were willing to get themselves and their families out of bed in the middle of the night with hair dryers plugged into extention cords to warm their crops and prevent them from freezing to death. They were also willing to work through the night laying down plastic to protect the crops thereby saving their harvests. They were willing to take these extra measures because if they did not, they would not eat. Furthermore, if they couldn't sell their crops at market, they would not be able to pay their mortgages, car notes, etc. The difference between US and Soviet Farmers is that US farmers were motivated to go the extra mile because they had "skin in the game" to borrow one of President Obama's favorite expressions. The Soviet farmers, while being forced to work hard when they were on the farm, were nowhere to be found in the middle of the night when the damage was being done, because like most employees, they were home in bed and would not return to the farms until the following morning which was too late to save their crops.

This is why you don't want a political economy when you are blessed with a free market capitalist econony like we have here. If there are those who are willing to throw it away, it can only be because they either don't understand what they are giving up, or they are too lazy in their though processes to take advantage of the opportunities available to anyone and everyone in this economic system.

I'm not calling American workers lazy, only lazy in their thought processes if they think that the government can take better care of them in this country than they can take care of themselves with a little smart work on their part. Opportunities for success are as common in this free market economy as is sand on the beach. The problem most people have is that they expect to reap the rewards without putting out the effort. A free market ecomony is like an ocean full of fish. If you know how to fish, you'll never go hungry. Unfortunately, most Americans have forgotten how to catch a fish and prefer instead to get their fish from the freezer section at the local supermarket.

There's an old saying that says "if you give a man a fish you feed him for a day but if you teach a man to fish you feed him for a lifetime." This sums up free market capitalism in a nutshell. You'll never starve in a market driven economy if you know how to bait a hook. cast a line, and pull out a fish. But most of us don't know how to do those things and would prefer for the government to just pass out fish to those willing to stand in line to get them. The problem with that is that the government doesn't fish, either. In order for the government to give you free fish, it must first confiscate the fish from the fishermen who braved the icy waters of the North Atlantic, ripped their hands to shreds pulling nets full of fish from those icy waters, and descaled and cut off the heads and tails, gutted, and cleaned the fish, and were expecting to sell those fish for profit so they could pay their bills as well as feed some of the fish to their families.

Imagine if you were such a fisherman and when you pulled back into the harbor you were met by a government bureaucrat and armed federal agents who confiscated your cargo, but left you only enough fish to feed your family. You would be furious at those developments, of course. But the real conssequence of this confiscation would be that you might be less willing to go out and brave those icy waters again when it would be just as easy for you to sleep in and then go stand in line waiting for your free fish that the givernment confiscated from some other sap dumb enough to go out and put his life on the line. Eventually, no one is going to brave those icy waters and they where will we be? I seriously doubt that the givernment is going to go fishing to feed the rest of us while we stand idly by on shore waiting for our handouts.

I gave you an example of a political economy that failed so now let me show you what is possible in a free market economy. A high school graduate decided he didn't want to go to college but didn't want to work at a job for someone else either. So he persuaded his parents to let him take his tuition money and use it to buy a sandwich shop that we know today as Subway. This free market economy also enabled a couple of friends working in their parents garage to invent a gadget that was the basis for the company we now call Apple. Other kids working in garages formed mult-billion dollar multinational companies like Google, Yahoo, and so many more. People like Bill O'Reilly, Rush Limbaugh, Sean Hannity and others of their ilk, including the biggest liberal success story of them all, Oprah Winfrey, owe their successes to our free market economy. Only in America would their stories be possible.

Maybe we would take a minute to think about what we're so willing to throw away before we make the decisions that could eliminate our economic system and with it our prospects for success, especially if we're willing to exchange the infinite possibilities inherent in a free market ecnomy for a few measly gifts from a dictatorial entity. As we learned in grade school, there's no such thing as a free lunch. Someone has to pay for it, even if it isn't you.

Let me leave you with this closing thought. Aesop told a fable about a dog with a bone who saw his reflection in a river as he was crossing over a bridge. Unfortuately, the dog didn't realize that he was looking at his own reflection and thought he saw another dog with another large bone. Naturally, the dog thought he would take the other dog's bone and have two bones for himself. So he opened his jaw to snatch the other bone and as he did so, his own bone fell into the river and sank out of sight. The moral of the story is "be careful when grasping at shadows or you may lose what is real.