“Stay in your lane” is a frequently heard refrain nowadays, normally a piece of advice directed at those who, by virtue of some aspect of their identifying characteristics or profession or beliefs, express views which are deemed unwelcome. “Stay in your lane” is not often fair and appropriate advice to be given in debate.
I submit, however, that “Stay in your lane” is usually fair and appropriate advice to give a Marxist who opines on matters which concern the moral, efficient, and effective satisfaction of human wants.
On a recent Saturday morning, with equal parts amusement, frustration, and resignation, I read novelist Sally Rooney’s analysis of an economic situation. Noting Rooney’s position as a self-described Marxist, it was no shock to see her strident call for the government to reinstate an expiring ban on evictions that had been introduced over winter 2022/23 and her proposed solution to housing shortages—the abolition of private property (where that private property is a rental property). The collectivist impulse is strong with Marxists, no matter the costs to humanity. Indeed, some Marxists regarded it as a great loss when the beautiful perpetrators of the Holdomor, that great atrocity, fell from power.
While Marxists might find the inconvenient truths of reality and husbandry hard or unpalatable to grasp, they remain in force as they have done for millennia. Satisfaction of human wants (the end) requires means. Producing means requires time and other goods and resources. Resources that are saved and not consumed allow the production of goods which satisfy the ends. Landlords are people who have husbanded and accumulated their resources and chosen to provide the use of residential property to those (tenants) who do not have the resources to acquire their own for whatever reasons.
Rooney, our Marxist scribe, views such providers of a residential property as mere “middlemen between existing homes and the people who want to live in them.” The value the landlord—the capitalist, the entrepreneur—provides in investing his resources into a home which allows another (the renter) to use that home when he cannot afford or chooses not to purchase one of his own is utterly lost on our Marxist scribe and Marxists generally.
Our Marxist scribe concludes normal people sell their property only when they “judge that the price of an asset has reached its peak.” This is only half right and ignores the question of why so many are choosing to do so at the same time. More accurately, people sell their property when the expected future benefits of holding fall below those of selling now.
Private landlords look up and see a future of ill-informed, shortsighted invective fueled by a tidal wave of political opportunism, economic illiteracy, and envy, with the sole effect (if not aim and objective) of making it unfeasible to be a private landlord. An Irish landlord already knows that rents can’t be adjusted to account for inflation and interest rate rises.
Landlords see legislators proposing that “no fault evictions” be outlawed (i.e., the landlord’s ability to regain access to their property is to be seriously curtailed and possible only on very limited and prescribed grounds). They see proposals that all sales of rental property must leave the tenants in situ, often at rents far below the prevailing market, which in turn depresses the prices they could receive from a future purchaser. They see proposals to give tenants a first option to buy when a landlord wishes to sell (and it is extremely unlikely that the tenant will be required to be the highest bidder).
Landlords know the system is loaded against them if a tenant decides to stop paying rent. In consequence, landlords are necessarily deciding either to sell up or never become landlords to begin with. I have covered the causes and effects of the shortfall in Irish housing stock and rent control previously.
No matter. Our Marxist scribe asserts there is a fixed stock of property that either exists now or which will be built in the future, and this can only house so many people—be they owners or renters. This is a grotesquely simple and very Marxist assertion. Each and every housing intervention, restriction, and control that has been introduced and argued for by the Left has the effect of limiting the supply of housing stock—and consequently pushing rents up. Marxists never consider how individuals will change their behavior and choices when faced with such restrictions and invariably fail to heed the parable of the broken window. Supply lost due to disincentivizing the production of that supply is invisible to them, and the knock-on effects of reduced supply elude them entirely.
Our Marxist scribe’s piece merely proves the truth of Thomas Sowell’s famous observation, “The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics.” Rooney opines, “Why would the government lift the ban? It’s so unpopular! They can only be trying to curry favor with private landlords to win their votes.” She clearly sees everything through the lens of what is quick, easy, expedient, and popular. In the case of our Marxist scribe, the long-term solution is obvious: the state should acquire any properties owned by the “exploitative” private landlords. There must be no private ownership of rental properties. The state can provide rental accommodation, and at far cheaper rents!
“Free” lunches, such as heavily subsidized rents, are always popular with Marxists and those who are either unable or unwilling to consider where the resources to provide the lunches come from and the implications of appropriating or diverting those resources from other uses. Alas, nothing is ever free; somebody, somewhere, will be forced to bear the costs, and they will do their utmost, as is their right as a sovereign individual, to avoid those costs. The state, described by Frédéric Bastiat as “that great fiction by which everyone tries to live at the expense of everyone else,” can only plunder resources from taxpayers (current ones through taxation or future ones through borrowing) or from the population as a whole via inflation and then redistribute them, badly.
At least, I trust, Rooney—as a self-described Marxist—does not avail herself of the Irish income tax code’s artist’s exemption. No good Marxist would deny the state tax revenue, of course.
Our Marxist scribe is indeed a novelist whose currency is in the realm of fiction and fantasy, and her forays into the world of reality and logical analysis fall flat. She should stay in her lane. However, it is not her profession as a novelist which suggests she should do so, but rather, it is her Marxism.
About the Author
James Murphy, CFA FRM BA MBS BL is an experienced financial services professional with over 25 years of experience in the banking, finance and hedge fund industry with interests in finance, economics, law, history and politics and the interplay between these fields.
Article cross-posted from Mises.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
