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Existing and pending home sales reported by the National Association of Realtors. Photo: Reuters)

The National Association of Realtors said Thursday its pending home sales index increased 3.4 percent to a seasonally adjusted level of 112.4 in April. The index, which is based on contract signings for purchases of previously owned homes, increased for the fourth straight month from an upwardly revised reading of 108.7 in March to its highest level in 9 years.

Economists surveyed by The Wall Street Journal had expected pending home sales would rise 1% in April. Home sales typically close within a couple months after signing.

The index rose 14 percent in April on a year-over-year basis, which marks the eighth consecutive year-over-year increase. The index is nwo at its highest level since May 2006.

“Realtors are saying foot traffic remains elevated this spring despite limited–and in some cases severe–inventory shortages in many metro areas,” said Lawrence Yun, NAR’s chief economist. “Homeowners looking to sell this spring appear to be in the driver’s seat, as there are more buyers competing for a limited number of homes available for sale. As a result, home prices are up and accelerating in many markets.”

Yun also expressed confidence in the housing market in the event the Federal Reserve decides to raise interest rates over the summer. But he did say that the market would need to see a boost in inventory and evidence of moderating price growth.

“The housing market can handle interest rates well above 4 percent as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers — especially first-time buyers — are able to obtain a mortgage,” Yun said.

However, for the first time ever since the National Mortgage Risk Index began tracking, the market share of high-risk loans outnumbered the share of low-risk loans. The NMRI for Agency purchase loans came in at a series high in April and the share of high-risk Federal Housing Administration (FHA) loans and the subindex for VA loans also reached series highs.

The co-directors of AEI’s International Center for Housing Risk say the housing lobby, the Yun and the NAR, have successfully convinced the government to again inject artificial risk into the marketplace.

“With leverage unconstrained by the Qualified Mortgage regulation, increasing competition between Fannie and FHA, and eventually Freddie, will slowly introduce destabilizing risk nationally,” said Edward Pinto, the former chief credit officer for Fannie Mae and co-director of AEI’s International Center on Housing Risk. “The goal of the NMRI is to quantify and pinpoint these leverage trends in real time.”

In April, Agency loan originations continued on their disturbing trend, migrating from large banks to non-banks. According to the survey’s directors, this shift in market share represents much of the upward trend in the composite NMRI. Nonbank lending is substantially riskier than large bank lending it replaces.

“One hears all the time that first-time buyers have limited access to mortgage debt. But this isn’t true,” said Stephen Oliner, co-director of AEI’s International Center on Housing Risk and senior fellow at UCLA’s Ziman Center for Real Estate. “Many first-time buyers with low FICO scores and little money down are buying homes every month.”

Regional Data

After falling four straight months, the PHSI in the Northeast bounced back solidly (10.1 percent) to 88.3 in April, and is now 9.4 percent above a year ago. In the Midwest the index increased 5.0 percent to 113.0 in April, and is 13.3 percent above April 2014.

Pending home sales in the South rose 2.3 percent to an index of 129.4 in April and are 14.8 percent above last April. The index in the West inched 0.1 percent in April to 103.8, and is 16.4 percent above a year ago.

[brid video=”9132″ player=”1929″ title=”NAR Chief Economist Lawrence Yun on April 2015) Pending Home Sales”]

The National Association of Realtors said Thursday

isis-israel-hamas

File photo: From left to right, the Islamic State (ISIS), the Israeli flag, and the Gaza-based terror organization Hamas.

The UN envoy for Children and Armed Conflict recommended Secretary-General Ban Ki-moon include the IDF on a list of nations and organizations accused of atrocities against children. The international blacklist current includes terror organizations such as the Islamic State (ISIS), al-Qaeda, Boko Haram, and various Taliban groups.

“We are not resting until this is put away and will continue efforts to persuade the secretary-general not to include Israel on this list,” a senior Foreign Ministry told PPD. “We will do so until the last minute.”

Fortunately, for Israelis, officials at the secretary-general’s envoy have indicated to PPD that Ban was skeptical of the recommendation and is worried that such a move would severely damage their reputation, and stability in the Middle East.

“Israel-haters are threatening the United Nations and no one is complaining about them. It’s a scandal and it’s hypocrisy,” a Foreign Ministry official told YNetNews. There are unfortunately a lot of situations in which children are killed in zones of conflict and yet no one dares put them on the list. Do you know how many kids the Saudis have killed while bombing Yemen? I want to see the UN secretary-general’s Algerian envoy dare to include Saudi Arabia on the list.”

While U.S. President Barack Obama was no friend of Israel during the conflict last summer and, particuarly shows disdain for Prime Minister Benjamin Netanyahu, his party has been tossed from the body of government that funds the United Nations. A top Republican, Sen. Lindsey Graham, R-S.C., warned the UN during a recent visit to Israel.

“There’s a report that may come out any day now where the United Nations is considering the State of Israel in the same category as Boko Haram when it comes to crimes against children,” Sen. Graham said. “If that ever happened, if the United Nations embraced a report putting the State of Israel in the same categories with terrorist organizations in terms of the way they treat innocent people, particularly children, that would be an outrage that would not go unanswered.”

Graham has threatened to defund the United Nations before over reports President Obama was gearing up to support a UN measure of Palestinian statehood. U.S. funding represents roughly a quarter of the UN budget.

A UN envoy recommended Secretary-General Ban Ki-moon

unemployment-benefits

The Labor Department said on Thursday first-time jobless claims rose for the week ending May 23 by 7,000 to a seasonally adjusted 282,000. Claims for the prior week were revised to show 1,000 more applications received than previously reported.

Economists polled by Reuters had forecast claims slipping to 270,000 last week. A Labor Department analyst said there was nothing unusual in the state-level data.

The four-week moving average of claims — which is widely considered to a better measure of labor market trends, as it irons out week-to-week volatility — increased 5,000 last week to 271,500. The four-week moving average of continuing claims declined 70,250 between the April and May survey periods, which typically indicates a further drop in the unemployment rate from a near seven-year low of 5.4 percent last month.

However, labor force participation continues to be a major driver of falling unemployment, not a solid labor market. The number of people still receiving benefits after an initial week of aid actually rose by 11,000 to 2.22 million in the week ended May 16.

“The State of the Unemployed,” a Harris survey of 1,553 working-age Americans conducted for Express Employment Professionals, found that 40 percent of unemployed Americans have completely given up looking for work.

The Labor Department said on Thursday first-time

home-foreclosures

National and State Mortgage Risk Indices are tracked and released by AEI’s International Center on Housing Risk.

The National Mortgage Risk Index (NMRI) for Agency purchase loans came in at a series high 12.08 percent in April, as the market share of high-risk loans outnumbered the share of low-risk loans for the first time since tracking began.

The NMRI gained 0.2 percent from the average for the prior three months and 0.7 percent on a year-over-year basis. The share of high-risk Federal Housing Administration (FHA) loans and the subindex for VA loans also reached series highs.

“With leverage unconstrained by the Qualified Mortgage regulation, increasing competition between Fannie and FHA, and eventually Freddie, will slowly introduce destabilizing risk nationally,” said Edward Pinto, the former chief credit officer for Fannie Mae and co-director of AEI’s International Center on Housing Risk. “The goal of the NMRI is to quantify and pinpoint these leverage trends in real time.”

In April, Agency loan originations continued on their disturbing trend, migrating from large banks to non-banks. According to the survey’s directors, this shift in market share represents much of the upward trend in the composite NMRI. Nonbank lending is substantially riskier than large bank lending it replaces.

“One hears all the time that first-time buyers have limited access to mortgage debt. But this isn’t true,” said Stephen Oliner, co-director of AEI’s International Center on Housing Risk and senior fellow at UCLA’s Ziman Center for Real Estate. “Many first-time buyers with low FICO scores and little money down are buying homes every month.”

The NMRI is perhaps the most thorough housing market survey in the industry, regarding its sample size and low propensity for error. The results are based on nearly the universe of home purchase loans with a government guarantee. In April, for instance, the NMRI data included 158,000 such purchase loans, up from 138,000 loans a year earlier. With the addition of these loans, the total number of loans that have been risk rated in the NMRI since November 2012 increased to 6.0 million.

Other notable takeaways from the April NMRI include:

• For the first time, the share of high-risk loans exceeded the share of low-risk loans.

• The NMRI for first-time buyers hit 15.28 percent, a new series high. The credit standards for first-time buyers are not tight, with the median FICO score of first-time buyers in April remaining unchanged at 705, slightly below the median for all individuals in the US.

• FHA’s cut in its annual mortgage insurance premium, which took effect in late January, appears to have been largely a zero-sum game to date, with much of the higher FHA volume representing loans poached from other agencies.

• The collapse in the share of agency loans originated by large banks continued in April, offset by nonbanks, which have much less capital and much higher mortgage risk.

The NMRI results in April pop the balloon of the upbeat Commerce Department report released last Tuesday, which found new home sales of single-family units rose more than expected in April and the median price surged. Sales increased 6.8 percent to a seasonally adjusted annual rate of 517,000 units. March’s sales pace was revised up to 484,000 units from the previously reported 481,000 units.

However, this and other sector reports should be taken in context with the NMRI, which clearly shows the government again injecting artificial risk in to the housing market.

The National Mortgage Risk Index (NMRI) for

nsa-headquarters

June 6, 2013: A sign stands outside the National Security Agency (NSA) campus in Fort Meade, Md. (Photo: AP)

The Patriot Act has a bad pedigree and an evil history. In the fearful days immediately following 9/11, the Department of Justice quickly sent draft legislation to Congress that, if enacted, would have permitted federal agents to violate their oaths to uphold the Constitution by writing their own search warrants. The draft subsequently was revealed to have been written before 9/11, but that’s another story.

The House Judiciary Committee reviewed the legislation and revised it so that it would meet Fourth Amendment norms. The revised version permitted federal agents to write their own search warrants for business records, but the warrants could be challenged by the custodian of the records or by the person whose records were being sought. Because the records were in the hands of a third party, they were in no danger of destruction.

The Fourth Amendment was written largely to assure that the general warrants British soldiers used to search the colonists’ homes would never be lawful in the United States. General warrants were issued by secret courts in London based on the government’s needs, not on evidence of wrongdoing. They authorized the bearer to search wherever he wished and seize whatever he found.

In order to protect the natural right to be left alone — privacy — the Framers enacted standards in the Fourth Amendment that required the government to produce evidence about the person whose records it wants — called probable cause — and present that evidence to a judge when it wants a search warrant. If granted, the Constitution requires that the warrant particularly describe the place to be searched or the person or thing to be seized.

After the House Judiciary Committee took all this into account in its redrafting of the proposed Patriot Act, the House Republican leadership and the George W. Bush White House pulled a fast one. They switched the painstakingly negotiated version of the Patriot Act for the original version and posted the original version on the House intranet, and leadership scheduled a vote within the hour of posting.

It is safe to say that no member of the House read the Patriot Act in that hour. It takes about 20 hours to read, as it is hundreds of pages in length, and it amends dozens of prior statutes that also must be read. Most House members clearly never knew what they were authorizing. The only negotiated-for provision that survived the switch was the sunset provision of section 215.

Section 215 only authorizes the feds to write their own search warrants for business records and for surveillance of so-called lone-wolf terrorists no matter what telephone they may use. The Bush and Obama administrations secretly persuaded the secret Foreign Intelligence Surveillance Act (FISA) court that somehow section 215 also permitted the NSA to acquire bulk data from telephone and computer use based on the government’s needs, not based on probable cause.

Bulk data is undifferentiated as to persons. Rather, it is collected by zip code or area code or service provider customer base. Section 215 expires at the end of this week.

The U.S. Court of Appeals for the Second Circuit, the second highest court in the land, declared the collection of bulk data under section 215 to be illegal. The court ruled that the language of section 215 does not authorize bulk data collection, and no section of the Patriot Act does. That court gave Congress until June 1 to clarify the language. If Congress fails to do so by June 1, the court will entertain applications to bar the NSA from collecting bulk data, and it indicated it would likely grant those applications.

Last week, the House voted to revise section 215, and the Senate did not. Thus, it is likely to expire on Sunday night.

President Obama, who falsely claims to be opposed to the collection of bulk data, can stop it with his signature, but he has not done so. He claims to favor the House version of surveillance, which has ridiculously been dubbed the Freedom Act.

The Freedom Act would get the NSA’s computer geeks physically out of the facilities of telecoms and computer servers, but would let them back in digitally with the FISA court’s approval, and that approval is not conditioned on probable cause. Rather, it is to be granted whenever the NSA needs the data. In the 14 years of all this spying, the NSA has made more than 34,000 requests of the FISA court; only 12 have been denied.

If section 215 expires next week, the feds will need individualized search warrants in order to listen to phone calls. They already have been getting individualized search warrants for the phone calls and emails of potential lone-wolf terrorists and for the business records of suspected terrorist groups and those whom they have successfully prosecuted for terrorist acts.

If all of the above is not enough to induce anyone in Congress faithful to the Constitution to reject extending section 215, perhaps the findings of the inspector general of the Department of Justice itself will. Late last week, he released a report in which he found that the bulk collection of data has not stopped a single act of terror or aided a single federal terrorism prosecution since the Patriot Act became law on October 26, 2001.

The government’s bulk collection of data must go. It assaults freedoms, and it fails to enhance our safety.

The government's bulk collection of data in

 

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Michael Brelo hugs his attorney, Patrick D’Angelo, after the verdict in his trial Saturday, May 23, 2015, in Cleveland. Brelo, a patrolman charged in the shooting deaths of two suspects. (AP Photo/Tony Dejak)

Last Sunday, 88-year-old Lois Mickey Nash sat in church as talk swirled around her about an upcoming march through the streets of Cleveland, and she made a decision.

“I’m going to march,” she said to herself. Not her usual thing to do.

After church, she announced her plans to her 89-year-old sister, Catherine Mickey Johnson, and to her niece, too.

“I’m going to march,” she told them. “I need to see everyone come together.”

This was the day after a common pleas judge absolved Cleveland police Officer Michael Brelo, who is white, in the shooting deaths of two unarmed civilians who were black.

This was just two days before the city of Cleveland and the Department of Justice would announce an agreement on the conditions of a court-ordered consent decree to improve the relationship between police and the neighborhoods full of residents who do not trust them.

On Tuesday, Lois joined hundreds of prayerful, peaceful people of the Greater Cleveland Congregations coalition. Lois is black, and many of her fellow marchers didn’t look a thing like her. On the outside, I mean. Only on the outside.

They came from churches, synagogues and mosques, and some came just because they felt welcome. They gathered in a hotel in downtown Cleveland and nodded as organizers asked them not to carry political signs and to ignore whatever got yelled at them. Then they headed toward the Justice Center, where they rallied, and then on to the steps of City Hall, where they rallied again.

They prayed and listened to speeches and sang songs of the civil rights movement. Every so often, someone would shout “thank you, officer” to police who had closed the streets to traffic.

It was hot, and Lois slowed down some, but she did not stop. “I needed to see everyone come together,” she told me a few hours later. “Just like one family, like we’re all God’s children. I looked around and thought, ‘This is the way it’s supposed to be.'”

The most revealing story about Lois Mickey Nash during our two-hour interview involves her, a hot rod and two white guys ready to race.

This happened in a suburb just east of Lois’ home in Cleveland.

“Sometime in the ’60s,” she says. “Things were different back then,” she quickly adds.

Lois was a courier for a dental supply company, and she drove to make deliveries all over northeast Ohio. On this particular day, she had just pulled up to the intersection of Cedar and Lee roads in Cleveland Heights.

“I was waiting at the light,” she says. Minding her own business, she adds. “Then two white guys pulled up next to me.”

I am listening to this story in the living room of Lois’ niece Kathryn Johnson, who lives in her childhood home with her 89-year-old mother, Catherine, in Cleveland’s Fairfax neighborhood. Mother and daughter sit in comfortable chairs and lean in as if this were the first time they’ve ever heard Aunt Lois’ story. As I quickly learn, these three women have a habit of paying rapt attention to one another.

Wiry and feisty, Lois shows no signs of last year’s concussion from falling at church, which laid her back for six months. She raises her right foot and starts pumping it in the air.

“They were revving their engine,” she says, referring to those white guys. “You know, like this.” She growls. Vroom, pump, vroom, pump.

“So I did this.” She raises her right foot again and revs her own engine. The volume of the vroom suggests her engine was louder.

“What happened?” I ask. She shoots me a look I haven’t seen since my mother died in 1999.

“I raced ’em. That’s what.”

“Who won?” I ask. That look again.

“You know I did.”

After the race, the two guys motioned for her to stop. She pulled over, and then she gave them what they wanted.

“I raised the hood of the car and let ’em get a look,” she says, beaming. “They were amazed. They kept pointing to the engine and saying, ‘Where did you get that?'”

When I ask whether that could happen now, her smile evaporates, and she collapses into the back of the sofa. “No,” she says, shaking her head. “I still like my hot rods, but I would never try to do that with white guys again. Too dangerous.”

She shakes her head. “Like I said, that was a different time.”

That’s another reason she marched Tuesday. She remembers.

She remembers how she and her sister grew up with Italians and Hungarians and Jews. How they shopped at their stores and sat down at one another’s dinner tables. How she could rev her engine at a stoplight and a couple of white guys never doubted her intentions.

“That could happen again, you know,” Lois says as her sister and niece nod. “If we all pull together.”

We’re going to spend months here parsing the contents of this consent decree. We’ll hash out what is and isn’t happening in Cleveland fast enough, soon enough, big enough. It’s exhausting to think about.

But for me, for just a moment, hope swept in on the heels of 88-year-old Lois Mickey Nash. If she can believe in change, then so will I.

Pulitzer-prize winning columnist Connie Schultz on the

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A crowd gathers for Republican presidential candidate, and former U.S. Senator, Rick Santorum’s formally declaring his candidacy for the 2016 Republican presidential nomination during an announcement event in Cabot, Pennsylvania, May 27, 2015. REUTERS/Aaron Josefczyk

Former Sen. Rick Santorum, R-Penn., kicked off his second campaign for president Wednesday railing against “big government” and “big money.” Santorum, speaking in front of factory workers at a business located near his western Pennsylvania hometown, pledged to bring back American manufacturing jobs and look out for the working class.

Holding up a piece of coal in one hand and an American flag in the other, the 2012 second-place finisher promised if elected to get rid of Obama’s executive orders, regulations that are killing Americans jobs, dismantle the “corrupt federal tax code” and the IRS.

Santorum is no doubt hoping that GOP history repeats itself. Republican nomination historically would dictate that Santorum’s entrance into the 2016 presidential race would mark the entrance of the frontrunner to the race for the nomination. However, this is not a historically analogous cycle, and even the candidate admits he is a heavy underdog in a far more crowded and talented field.

He beat out eventual 2012 nominee Mitt Romney in the Iowa caucuses and won 11 state races during the primaries, but the bloc of voters he will be vying for will be courted by a larger number of candidates this time around.

As of Wednesday, the PPD average of polls showed him ranking 10th, which is just enough to make the cut in the first debate hosted by FOX News and a spot on the top-tier debate on CNN. Yet, he is behind other social conservatives that will also be chasing the voters that supported Santorum last time, including former Arkansas Gov. Mike Huckabee and Ben Carson, both declared candidates.

Santorum is now the seventh candidate to have formally announced, and attempted to position himself as the working-class candidate.

“Working families don’t need another president tied to big government or big money.”

Santorum argued his experience will set him apart, and that he isn’t worried about his underdog status.

“This is a long process,” Santorum told reporters. “One of the things that I feel very comfortable with — I’ve been through this process before. It’s a completely wide open race.”

Santorum served in the Senate from 1995 to 2007 before he was defeated in the Democratic midterm landslide by roughly 16 points. But the former senator has been the underdog before, and not just in the 2012 GOP nomination. In 1990, Santorum was a long-shot candidate for a House seat that he won against seven-term incumbent Democratic Rep. Doug Walgren.

And he does have the record on corruption he claimed in his speech Wednesday. As a member of the “Gang of Seven,” the new lawmaker made headlines by going after House Democrats as well as focusing on the House banking scandal.

Santorum also won election to the U.S. Senate in 1994 at age 36, winning statewide in a state where Democrats outnumber Republicans by roughly 1 million voters.

Still, at least three other Republicans, all of which are at risk of not qualifying for the first GOP debate, are also expected to formally announce their White House campaign plans in the next two weeks. Sen. Lindsey Graham, R-S.C., is at risk of losing all of the local and state talent to declared candidate Republican Sen. Marco Rubio. Former Texas Gov. Rick Perry and former New York Gov. George Pataki are also badly trailing in the polls.

Meanwhile, on the Democratic side, Maryland Gov. Martin O’Malley is also expected to enter the race this weekend before heading to Iowa and New Hampshire to draw voters away from declared Democratic candidates Hillary Clinton and Democratic socialist Sen. Bernie Sanders of Vermont.

Former Sen. Rick Santorum, R-Penn., kicked off

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General George Washington depicted praying in “The Prayer At Valley Forge” by Arnold Friberg.

In modern America, if ignorance were a marketplace commodity, then it wouldn’t be worth spit. That pretty much sums up the first thought that crossed my mind after reading the recent article by Alana Massey in The New Republic.

Forget institutionalized racism. The White Protestant Roots of American Racism demonstrates that institutionalized ignorance is a far more prevalent, and severe problem in our current political discourse.

Massey claims that continued racism plaguing white Americans today can be traced back to Protestantism, more specifically, its unique Protestant ethic. She cites largely unrelated polling data and grossly misrepresents a core–if not, the paramount–traditional American philosophy to draw these conclusions. It’s not only a historically inaccurate argument, but an intellectually feeble one. Unfortunately, this myth-based view toward American traditionalism is shared by most on the American Left.

There are almost too many absurd claims and mischaracterizations to address one-by-one. But, as someone who literally wrote the book on the historical and psychological role the Protestant ethic played in American political philosophy, I feel I must respond and debunk them in the interest of truth.

The Protestant Ethic and the Pursuit of Wealth

Massey cites The Protestant Ethic and the Spirit of Capitalism, the truly seminal work by German sociologist Max Weber, as the authority on the Protestant work ethic. However, it is painfully obvious she, herself, has never actually read it. Instead, she tapped the wealth of ignorance being spewed by radical revisionists in academia to portray the Protestant ethic as “a belief that the more material wealth you have, the closer you are to God.”

This is a mind-numbingly simplistic understanding of the Protestant ethic. In reality, and in Weber’s own words, nothing could be further from the truth.

“On the side of production of private wealth, asceticism condemned both dishonesty and impulsive avarice,” Weber correctly observed. “What was condemned as covetousness, Mammonism, etc., was the pursuit of riches for their own sake. For wealth in itself was a tempta-tion [sic].”

Weber, searching for the origin and true Spirit of capitalism, found what Massey and her leftist cohorts either continue to miss or are incapable of comprehending. The source of their obligation to labor, or what is referred to as the “calling,” was in truth not a desire for personal gain but an obligation to God.

The Protestant ethic is the idea that the highest form of moral obligation of the individual is to fulfill his duty in such worldly affairs. A virtuous individual should strive to obtain a position in society where they are able to serve the public and make a positive contribution to the general welfare, as well as ensure they never become a burden.

“Govr. Thomas was so pleas’d [sic] with the Construction of this Stove, as describ’d in it that he offer’d to give me a Patent for the sole Vending of them for a Term of Years; but I declin’d it from a Principle,” Benjamin Franklin wrote of the what we now know to be the Franklin Stove in his autobiography. “That as we enjoy great Advantages from the Inventions of others, we should be glad of an Opportunity to serve others by any Invention of ours; and this we should do freely and generously.”

Franklin, who was frequently cited by Weber, expressed a sentiment that was rather typical of a virtuous man in Protestant-dominated colonial America. Being a financially secure individual, he also refused profit over the lightning rod and labored to help others because “it pleased God,” and “the most acceptable service we render to Him is in doing good to his other children.”

Ironically, secular progressives have fractured the economic well-being of black Americans in a manner wholly independent of the typically-cited impact of Great Society-induced dependence. The secularization of American capitalism, which weakened the virtuous obligation to “worldly asceticism” and frugality, has made the pursuit of wealth an end, and an object of greed.

It was the diminished importance of virtue and the Protestant ethic that transformed “life, liberty, and the pursuit of happiness” into life, liberty, and the pursuit of selfishness. Neither capitalism nor the Protestant ethic are to blame.

“The impulse to acquisition, pursuit of gain, of money, of the greatest possible amount of money, has in itself nothing to do with capitalism. This impulse exists and has existed among waiters, physicians, coachmen, artists, prosti-tutes, dishonest officials, soldiers, nobles, crusaders, gamblers, and beggars,” Weber’s thesis states. “It should be taught in the kindergarten of cultural history that this naïve idea of capitalism must be given up once and for all. Unlimited greed for gain is not in the least identical with capitalism, and is still less its spirit.”

The White Protestant Roots of Race Equality

White Protestants have done more to further the promise of equality than big government has ever, or ever will, be worthy to receive credit for. To be sure, traditional American philosophy is a unique and, in many ways, contradictory combination of English common law, Natural Law and the Protestant ethic. However, as historian Robert Middlekauf correctly stated in the Glorious Cause, more than any other element to American society it was the common tenets of Protestantism and Natural Law that shaped our worldview and justified independence.

And these same tenets would serve as the justification to abolish slavery.

I, as well as others like Middlekauf and Bernard Bailyn, who have spent countless hours reading primary colonial sources  — i.e. letters, diaries, pamphlets and other correspondences — all agree that abolitionist sentiment was strong among our more notable Founding Fathers.

Contrary to Massey’s revisionist version of history, even many of those who personally owned slaves despised the institution and would later pay for their emancipation, as well as the education that was legally required to do so. She might be surprised to learn Franklin frequented the Pennsylvania Abolition Society, while John Jay, Alexander Hamilton and Aaron Burr were members of the New York Manumission Society.

George Washington, the central figure of her targeted racist fresco (The Apotheosis of Washington), who provided for the release of slaves working at Mount Vernon upon his wife’s death, said “there is not a man living who wishes more sincerely than I do to see some plan adopted for the abolition.”

Worth noting, most of Washington’s former slaves stayed with Martha Washington at Mount Vernon.

What founder-hating progressives refuse to acknowledge is that the fragility of the early republic made it a sad necessity to prioritize national preservation over slavery. But, make no mistake about it, for those of us who are intimately familiar with their works, there is little doubt our Founding Fathers knew they were laying a philosophical foundation that would inevitably end slavery.

And it was in the “racist,” white Protestant houses of God across our nation that the crime of slavery was indicted, not in the halls of progressive government.

William-Lloyd-Garrison-by-Jocelyn,-1833

Portrait of William Lloyd Garrison by Nathaniel Jocelyn, oil on panel, 1833, National Portrait Gallery, Washington, D.C.

The abolitionist movement exploded during the Second Great Awakening, which began in the first half of the nineteenth century. Equality under the “Laws of Nature and Nature’s God” demanded fulfillment of the promise of liberty for all–the promise of the American Revolution.

William Lloyd Garrison, who credited the 1826 book Letters on Slavery by Reverend John Rankin for attracting him to the cause, was a “Holy Warrior” and a product of the Protestant-led revival. He also happened to be the mentor to the prominent black American abolitionist– Frederick Douglas– who consequently, lived by the Protestant ethic and would no doubt denounce dependency programs supported by Massey and Co. as racist.

“All people were equal in God’s sight;” James B. Stewart wrote in Holy Warriors, “the souls of black folks were as valuable as those of whites; for one of God’s children to enslave another was a violation of the Higher Law.”

Unless Massey or her revisionist mentors can correct me, it wasn’t a higher law imposed by big government that Stewart was talking about.

Speaking of manmade statist laws, the Jim Crow era wasn’t inevitable and didn’t manifest out of thin air because the South couldn’t get over their loss after the Civil War. Big government policies pushed by dealers of social retribution (now referred to as social justice)–which President Abraham Lincoln opposed before his assassination–have been erased from the progressive history books.

Union army regiments seizing long-held family lands, the wholesale pillaging and burning of southern towns and raping of southern women, is the true story of Reconstruction we are no longer allowed to talk about. The final straw came in the form of the Grand Army of the Republic pension scheme, one of the nation’s first examples of true cronyism that by 1880 consumed 25% of the federal budget. The GAR lobby, a must-have endorsement for any progressive candidate, forced the South through taxation to pay veterans of the union army.

It was progressive big government that reignited hostilities toward the North, which resulted in the rise of Democrat-led “Redeemer” governments. They regained control of once-multiracial state governments and passed waves of legislation from 1887 to 1901, effectively ushering in the Jim Crow era.

The rest is history and, in truth, history tells us that black lives have always mattered to Protestant Americans. On the other hand, the proponents of big government, who have dominated their governance since the 1960s, just started to care about black lives because their votes matter now more than ever.

(NOTE: This article has been updated. A previous version stated Washington provided for the release of the slaves at Mount Vernon upon his death, which should have read his wife’s death. However, as the reader correctly notes, she emancipated the slaves prior to her death, regardless.)
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The People's Pundit, Richard D. Baris, responds

ATLAS-SHRUGGED-facebook

File photo: Atlas Shrugged cover image. (Photo: Facebook)

Over the years, I’ve had many arguments about economic policy with my statist friends. I put them into three categories.

  • The completely unreasonable statists blindly assert, notwithstanding all the evidence around the world, that bigger government and more intervention are actually good for growth.
  • The somewhat unreasonable statists acknowledge that bigger government and more intervention might have some minor “efficiency” costs, but those costs are acceptable and affordable in the pursuit of more “equity.”
  • The semi-reasonable statists admit that bigger government and more intervention hurt growth, but they argue that “libertarian types” must somehow be wrong because our predictions of economic chaos never materialize.

The folks in the last category have a point. For decades, advocates of limited government and free markets have warned about the economic cost of bad policy, yet where’s the collapse?

Why hasn’t Atlas shrugged, as libertarians have warned? Why have predictions of economic dystopia (examples here and here) been wrong?

I have two responses to these questions.

First, the economic damage caused by an expanding welfare state has been offset by improvements in other types of economic policy.

Second, maybe dour libertarians have been right, but got the timing wrong because it takes a long time and a lot of bad policy to destroy an economy.

And that’s today’s topic, because it certainly looks like both Greece and Venezuela have finally reached the end of the road. Let’s call it the Thatcher Inflection Point.

Here are some excerpts from a very grimNew York Times story about the economic misery in Greece

Bulldozers lie abandoned on city streets. Exhausted surgeons operate through the night. And the wealthy bail out broke police departments. A nearly bankrupt Greece is taking desperate measures to preserve cash. …In a society that has lived off the generosity of the government for decades, the cash crisis has already had a shattering impact. Universities, hospitals and municipalities are struggling to provide basic services… Greece is already operating as a bankrupt state. …For a generation of Greek politicians who saw government spending (and borrowing) as a national birthright, the idea of deploying only the money at hand has been jarring.

Egads, imagine the horror of only being able to consume what you’re able to produce. Obviously a violation of human rights!

Though some people apparently are learning the right lesson.

…for other Greeks who are eager to break from the country’s tradition of dispensing political favors to the well-connected, these years of imposed restraint have also provided a valuable lesson. “There are no free rides in this country anymore,” said Kostas Bakoyannis, 37, the governor of the Central Greece administrative region. “…Now we have to live on what we can make and produce.”

By the way, don’t cry too many tears for the Greeks. Yes, they’ve had to make genuine budget cuts since outlays peaked near the end of last decade. But government spending in Greece, after adjusting for inflation, is about the same level it was in 2000.

And that wasn’t an era of “harsh austerity.”

In other words, Greece wouldn’t be in trouble today had politicians simply obeyed my Golden Rule.

Besides, how can you feel sorry for a nation that subsidizes pedophiles and requires…um…stool samples to set up online companies.

When it comes to bizarre government policy, Greece truly is special.

Now let’s look at Venezuela, where economic buffoonery is an art form. My Cato colleague Steve Hanke has a new column about that nation’s grotesquely reckless monetary policy.

I estimate Venezuela’s annual inflation rate at 335%. That’s the highest rate in the world. For those holding bolivars, it amounts to: “no rule of law, bad money.” …Facing this inflationary theft, Venezuelan’s have voted with their wallets. Indeed, they have unofficially begun to dollarize the economy.

Here’s John Hinderaker’s summary of the overall situation.

When a country can neither produce nor buy toilet paper, you know the end is approaching. …Venezuela’s regime is long past eating its seed corn; now it’s selling the furniture. Will Maduro’s government default on the country’s debt, some of which carries 30% interest? …The IMF is helping to keep Venezuela’s economy afloat, and if oil prices rise, the Maduro regime might be able to buy a little more time. But the end game is obvious: economic collapse.

I’ll add one modification (and I’m sure John would agree), which is that economic collapse is obvious if policy stays on the current path.

Venezuela (or Greece, or any other nation) could save itself by shifting to a policy of free markets and small government. But I’m not holding my breath.

By the way, I suppose we could also use the example of the Soviet Union. That was a collapse of turbo-charged big government.

But let’s close instead with a point about richer nations in the western world because some readers understandably are thinking that countries such as Germany, Japan, and the United States will never suffer the fate of nations such as Greece, Venezuela, and the Soviet Union.

That’s probably true, but keep in mind that demographic changes are a wild card. Simply stated, aging populations and poorly designed entitlement programs are a very unpalatable combination.

And if governments wait too long to implement reforms, the political obstacles may be too great. Restoring good policy is a lot harder once the people in the wagon outnumber the folks pulling the wagon (as illustrated by these cartoons).

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CATO economist Dan Mitchell on why hasn't

Obama-Barnard-Commencement

President Obama gives a commencement speech to the graduating students of Barnard College. (Photo: Asiya Khaki)

It’s graduation time! Have we learned much? No.

College has become a scam.

Some students benefit: those with full scholarships and/or rich parents so they don’t go deep into debt, those who love learning for its own sake and land jobs in academia and those who get jobs that require a college credential.

But that’s not most students.

Half today’s recent grads work in jobs that don’t require degrees. Eighty thousand of America’s bartenders have bachelor’s degrees.

Politicians such as Hillary Clinton promote college by claiming that over a lifetime, college graduates “earn $1 million more.” That statistic is true but utterly misleading. People who go to college are different. They’re more likely to have been raised by two parents. They did better in high school. They’d make more money even if they never went go to college.

Economist Bryan Caplan argues that there isn’t much evidence that college grads are paid more because they learned anything at college that is valuable to their jobs.

Getting into elite universities and graduating from them is mostly a “signaling” device, he says. It tells employers you’re a smart person, so employers can begin teaching you things you really need to know. Employers, not the colleges, turn out to be the ones making students valuable contributors.

This suggests college is more like a hurdle than an investment. It would be better if companies found cheaper ways to screen for talent than four years of college.

Most of America’s prestigious universities started out as training centers for the priesthood and ways of confirming your status as part of the upper crust. In many cases, that’s still true today.

Taxpayers shouldn’t be forced to subsidize that. But we are.

Now President Obama proposes spending more of your money on “free community college.” Senator and presidential candidate Bernie Sanders goes further, proposing “free tuition” at four-year public colleges.

Of course, “free” just means taxpayers are forced to pay.

This is nuts. When government subsidizes services, people supplying those services get wasteful. Colleges now spend millions on manicured lawns and fancy gyms.

A University of Missouri admissions officer bragged to my TV show crew about the university’s “day spa” and said when it comes to recruiting students, “more important than reading, writing and arithmetic” is giving “our Tigers spring break every time they step into the student recreation complex.”

I’m happy that Missouri’s students like their luxurious gym, but I don’t want to help pay for it. If the school thinks its “day spa” is crucial for recruiting, let them sucker their own alumni into making voluntary contributions for it. Leave taxpayers alone.

Government subsidies encourage students who don’t belong in college to go anyway. Many don’t graduate, feel bad about themselves and end up deep in debt. The subsidies also invite schools to increase the cost of tuition.

Democrats complained we need Obamacare because health care costs “were skyrocketing.” But while the cost of health care rose 296 percent over the past 30 years, college tuition rose 553 percent. College is now a grotesque spending bubble, funded by government, that’s about to burst.

Law professor Glenn Reynolds, author of “The Education Apocalypse,” writes, “The rapid increase in college tuition began just about exactly the time the federal government started helping to subsidize college … (Y)ou don’t want to engage in subsidies that make universities more bloated and more inefficient.”

But that’s what Obama and Sanders propose to do.

A more compassionate move would be to warn people that college is not as valuable as colleges advertise themselves to be.

PayPal co-founder Peter Thiel encourages students to escape the college trap by paying them $100,000 not to go to college and instead to found their own capitalist ventures.

If we really want to build a better future and not just keep going through the same old motions, experiments like that are a much smarter idea than throwing more money at the college bubble.

John Stossel on college: Forget free tuition,

People's Pundit Daily
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