Quiz II

1.What is Social Darwinism? The belief that the economy and civilization evolve naturally to reward the virtuous hard-working smart rich and give their just deserts to the lazy stupid undisciplined poor. For the government to intervene to help the poor would be tragic (The Tragedy of American Compassion – Bush41 favorite book. hence huge cuts in medicaid in the new budget. Paying hospital bills for the poor? Tragic idea!

2. In what parts of the world was Social Darwinism politically powerful in the late 1800’s and early 1900’s? What worldwide phenomenon did this lead to? Germany, France, Belgium, USA, Japan.

(NOT China – which was being abused by the English, Germans, Japanese. China and Islam would have felt that their relative power reflected their natural superiority BEFORE the West humiliated them. The previously superior Muslim world was invaded by Napoleon in 1803. In late 1800’s they were “the sick man of Europe”.)

3. Using SD for Social Darwinists and WJB for the populists tell what each group thinks about Progressive income taxes.

WJB and Teddy Roosevelt – “progressives” - believed the rich should help the mass of society by paying more toward the cost of government. The SD insisted that they pay MUCH MUCH LOWER RATES than the poor as with the Tariff. To SD’s taxing the superior rich is immoral. SD factory owners etc were subsidized by the higher prices they could charge on items subject to tariffs.

5. Who pays most of consumption taxes including tariffs and sales taxes? Why?.

Workers and the poor pay much more – much higher rates - because they consume almost all of their income – they have little extra to save. The rich consume a tiny fraction of their income so pay a tiny fraction of the effective rate for the poor.

6. What was the early Christians’ attitude to making money on money rather than work?

You will go to hell for “reaping what you did not sew.” This was Usury – condemned by Aristotle, Christ, Mohammed – almost all early moral philosophers.

Jews were made to do this and could not own land in most places. This cemented their “evil” nature – Shylock and the pound of flesh à HOLOCAUST, formation of Israel etc

7. What is the SD attitude to taxing money made on money rather than work – interest, capital gains etc?

The Bush43 Rove Norquist utopian goal is to get rid of all taxes on capital – move all taxes to consumption. Their explanation is that they want to improve the savings rate. The savings rate – about 2% under Reagan’s low taxes on the rich – rose to about 5% after Clinton raised taxes upper brackets and balanced the budget – and is down to about 0% under Bush43 with the HUGE deficits soaking up savings. Pragmatic results seem not to match rhetoric.

8. How do payroll taxes affect workers / employment?

They hit labor and employment very hard. Hiring a worker is 16%+ more costly due to payroll. Makes machines and automation more competitive at the margin.

9. What are the principles of pragmatism? Do not accept any single principle as answering all questions. Look at a problem from many angles. Look at the context and results. There are no clear lines between ends and means. Almost all categories are fuzzy – we will note that “freedom” “Christian” political labels and many other categories are not really telling us much. Truth is often statistical not absolute.

10. Why did the Civil War inspire pragmatism? The principle of anti-slavery was very compelling yet “thou shalt not kill” also has some weight. The results of rabid belief in a single principle was huge bloodshed – and blacks not that “free” except in theory. Let’s not get carried away by philosophical principles or certainties.

11. What did WJB say about the Phillipines war? Let them run their own affairs ASAP – vote etc. Give them independence. Those who claim “brown” people are incapable may be hiding greed and will cause slaughter. “Yet another civilized power with its banner of the Prince of peace in one hand and its loot basket and butcher knife in the other”. We had to kill about 300,000 to make the “welcome” us.