The Daddy Knows Best Inaugural Address

by Iain Murray on January 20, 2009 · 20 comments

in Energy, Global Warming, International, Nanny State, Politics as Usual, Sanctimony, Stimulus to Nowhere

Fatal conceit alert! Here’s the text of the Inaugural Address, with some comments from your humble servant.

For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act – not only to create new jobs, but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We will restore science to its rightful place, and wield technology’s wonders to raise health care’s quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age. All this we can do. And all this we will do.

Obama already shows that he does not understand infrastructure. The grids – roads and electric grids and so on – only work if the flows – cars and energy – are allowed to flow freely. And flows only work if the grids are sufficient to allow them to flow. This is why liberating or constructing grids is of no help if you restrict the flows, and vice versa. An electric grid designed to meet the demands of the next 30 years will be of no help if we restrict ourselves to the false promise of solar and wind power, which cannot possibly provide more than a tiny fraction of our energy at current – or foreseeable – technology. Similarly, what good is a road network if we restrict our cars to a range of 40 miles? A proper approach to infrastructure liberates both. The best government can do for infrastructure is actually to get out of the way. NEPA reform is essential.

As for “science in its rightful place” – I hope so! Something to inform, not dictate policy.

And “soil” – does that mean nuclear?

Now, there are some who question the scale of our ambitions – who suggest that our system cannot tolerate too many big plans. Their memories are short. For they have forgotten what this country has already done; what free men and women can achieve when imagination is joined to common purpose, and necessity to courage.

What the cynics fail to understand is that the ground has shifted beneath them – that the stale political arguments that have consumed us for so long no longer apply. The question we ask today is not whether our government is too big or too small, but whether it works – whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. Where the answer is yes, we intend to move forward. Where the answer is no, programs will end. And those of us who manage the public’s dollars will be held to account – to spend wisely, reform bad habits, and do our business in the light of day – because only then can we restore the vital trust between a people and their government.

Ah, a classic obfuscation deployed against the “cynic” – that’d be me, a loyal follower of Diogenes the Dog. “Big plans” are the fatal conceit. “Big works” we could and can handle. There is a big difference. As for the question of the size of government, the most important insight of liberalism is that government that “works” is often still harmful (see J.S. Mill, passim). The tyranny of the majority works for the majority, not the minority. That’s why government has to be limited as a moral imperative, never mind the mountain of economic evidence in favor of limited government.

Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful eye, the market can spin out of control – and that a nation cannot prosper long when it favors only the prosperous. The success of our economy has always depended not just on the size of our Gross Domestic Product, but on the reach of our prosperity; on our ability to extend opportunity to every willing heart – not out of charity, but because it is the surest route to our common good.

The market has self-limiting devices to prevent it spinning out of control, but too often government regulates against them. It can also be spun out of control by government pushing it too hard in the wrong direction, as happened here, both in the UK and US. I do have to agree with him on opportunity, however. Opportunity is at the base of resiliency and adaptation to circumstance. What we cannot do, on the other hand, is guarantee opportunity, for that by its very nature reduces resiliency. Instead, we must have institutional reform to allow people to make the most of what they have, whether their resources be modest or ample. Property rights, rule of law, the market, many others – all are institutions that allow opportunity and which government has weakened.

…roll back the specter of a warming planet. We will not apologize for our way of life

Interesting juxtaposition. It would be nice if he meant it. Moreover, the use of the word specter is appropriate – a terrifying fantasy that exists only to frighten naive people.

To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds. And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to suffering outside our borders; nor can we consume the world’s resources without regard to effect. For the world has changed, and we must change with it.

Again, I agree completely with the professed end, but the means by which he hopes to achieve it contradict the end. Artificially restricting energy access on a global basis will keep the poor in poverty and guarantee suffering outside our borders. That is why we need a different approach.

I’ll pass over the cant and the security issues, and end by commenting on a misinterpretation of George Washington:

“Let it be told to the future world…that in the depth of winter, when nothing but hope and virtue could survive…that the city and the country, alarmed at one common danger, came forth to meet [it].”

Notice the subject and the voice. The people came forth voluntarily. they were not commanded by a government or leader. Thomas Paine is asking his compatriots to help, but no government forced it – indeed, that is the point of the request, that it should be said that people did it voluntarily. And respond they did. They sprang forth from their farms and homesteads to see off a tyrant whose list of abuses to their ancient rights and freedoms served as an affront to their heritage and liberty. There was no fatal conceit in the creation of America, rather a reaction against it. [This paragraph has been edited to correct a misrepresentation. See comments.] That is why the misunderstandings, contradictions and wishful thinking embodied in this inaugural address will be no more than a footnote in history.

{ 18 comments }

Kristen Murray January 20, 2009 at 8:28 am

Great post baby!

AndyS January 20, 2009 at 9:19 am

You call Obama incoherent — then you write this?

"The grids – roads and electric grids and so on – only work if the flows – cars and energy – are allowed to flow freely. And flows only work if the grids are sufficient to allow them to flow. This is why liberating or constructing grids is of no help is your restrict the flows, and vice versa."

Iain Murray January 20, 2009 at 10:19 am

Inarticulate, yes, something I could not fault the President for. I have edited the typos, and thank you for drawing my attention to them, but I don't see it as incoherent.

Joe January 20, 2009 at 9:50 am

word choice – Barry's been using enormity as a synonym for enormousness when in fact it has a different meaning. he is loose with his word choice.

chris January 20, 2009 at 10:57 am

"The market has self-limiting devices to prevent it spinning out of control, but too often government regulates against them" — could you elaborate? Seems to me that without prudent regulation such as those encouraging transparency, proscribing fraud, etc, and frequent "checkups" such as the aborted investigation of Madoff years ago, the market is unable to limit itself.

If there's a thief or fraudster in the "free market" and no government to catch and punish him, how does the market limit itself? If financial products are so far removed from their assets that only a tiny fraction of buyers understand their value, how can it efficiently set a price?

Scott H January 20, 2009 at 11:00 am

"Notice the subject and the voice. The people came forth voluntarily. they were not asked, or worse, commanded, by a government or leader."

I'm no historian, but GW never asked for troops? And further, if simply asked, isn't the response still voluntary?

Iain Murray January 20, 2009 at 11:12 am

Again, you're right – I should have reviewed this instant response more closely. Paine's words are themselves a request, but not a command. I'll edit accordingly.

AndyS January 20, 2009 at 11:23 am

OK — taking "coherent" to mean "an orderly, logical, and aesthetically consistent relation of parts"…

1. Obama mentions "electric grids", but somehow you add automobiles to the discussion.

2. You then assert that grids only work when the things that flow on them flow freely. Actually, many grids only work because the things they carry are NOT allowed to flow freely — such as the road system you've inserted into the argument! Without traffic lights, speed restrictions, and other methods of managing flow, roads wouldn't work at all.

3. You quickly add a concept of "liberating" grids, even though Obama's speech makes no mention of such a concept and it's painfully out of place in your argument.

4. You assert that adding capacity makes no sense when restrictions are in place, though that's plainly untrue. Since you've raised the issue of roads — a couple of new lanes would help my drive home, even if the traffic lights remain.

5. You worry about what might happen if we "restrict ourselves to the false promise of solar and wind power", though Obama certainly hasn't indicated any such restriction.

6. You then question the value of a road system if cars were to be limited to a range of 40 miles. Nobody seems to be suggesting any such limitation. Even so, a road system would be extremely useful if cars were limited to that range, though the constant stops to refuel would be frustrating.

7. Your next sentence reads: "A proper approach to infrastructure liberates both." I think you mean that a proper approach would liberate electric grids and roads, though perhaps you mean cars and electricity. More importantly — why do grids and roads require liberation? From what must they be freed? I can't guess what this means, and you certainly haven't provided any clues.

8. Suddenly the liberation theme is dropped, and we read that government must get out of the way. Does this mean that speed limits will finally be abolished? No — it means that the National Environmental Policy Act must be reformed. NEPA is an extensive piece of legislation whose most important provisions require the preparation of Environmental Impact Statements. Now I'm completely lost — what is it about the requirement for environmental assessments that imprisons the electrical grid in something it must be liberated from so that the flows "are allowed to flow freely"?

And that's just your first paragraph of argumentation!

Logically and structurally, your post is incoherent.

Iain Murray January 20, 2009 at 12:01 pm

Any instant reaction will necessarily be briefer than ideal. Any of my points could be the subject of extensive further explanation, and I freely admit such explanation would make them easier to understand, but as any project manager knows, you sacrifice certain quality requirements to get something out quickly. Anyway,

1. Obama clearly mentions roads.

2. See research on "naked" roads.

3. My point is about Obama misunderstanding infrastructure, hence my introduction of liberalization which is crucial to understanding how infrastructure works.

4. If the traffic lights cause congestion, new capacity will generally not help as much as removing the traffic lights.

5. "We will harness the sun and the winds and the soil to fuel our cars and run our factories." Note absence of "some of" between "fuel" and "our cars" and between "run" and "our factories."

6. The Chevy Volt – the gold standard in electric cars at present – has a range of 40 miles. The Volt will not be on sale until next year, assuming the timetable does not slip. So that's realistically going to be the best electric cars can do during the first term of this administration.

7. Both refers to the overall theme of the paragraph – both grids and flows.

8. By any measure, freedom from government control is liberation. In infrastructure construction, NEPA is the biggest obstacle to timely project completion.

You have picked a few structural nits off my post, and I shall endeavor to explain more articulately in future posts, articles, or papers, rather than in this comments thread. I don't think you've successfully demonstrated any logical incoherence.

AndyS January 20, 2009 at 12:41 pm

A good project manager, aware of severe time constraints that might impact quality, would never foolishly open a product announcement with an insult to the work of other, better-prepared project leaders!

Bill Woods January 20, 2009 at 12:27 pm

"We will harness the sun and the winds and the soil to fuel our cars and run our factories. "

'And “soil” – does that mean nuclear?'

Biofuels, I figured. (The Iowa primary is only three years away.)

Brendan Smith January 20, 2009 at 12:32 pm

Chris you asked "The market has self-limiting devices to prevent it spinning out of control, but too often government regulates against them” — could you elaborate? "

The entire sub-prime mortgage crisis stemmed from the idea, generated by Congress during the Clinton administration that every low income family should have a home. This encouraged banks to make bad loans to people who could not afford them. In the end, when these loans went belly up as they were bound to do; it hurt not only the Banks, but it destroyed the very people they were meant to help. All of those low income families, most of whom did not have great credit in the first place; have now had their credit irrevocably destroyed.

Had the government not dictated policy to the market, these questionable loans, and the high risk investing they encouraged; would not have happened. The market would have policed itself. In fact, the market spinning out of control is the correction. It is just difficult for the populace to take becuase it directly affects them.

Alan January 20, 2009 at 2:48 pm

"Sub-prime" is not synonymous with a mortgage to a low-income family. By adjusting terms, rates and repayment schedules, low-income families can, and most often do, obtain prime loans. Conversely, those who are better off will often take out sub-prime loans. Current default rates on sub-prime loans are not greater than those on prime loans.

It is possible to write sound, prime mortgages for lower income families. It may take a bit more effort, it may make a little less profit, but it is well worth doing.

Alan January 20, 2009 at 3:00 pm

You're holding a 30 minute inspirational inaugural address to a pretty high standard, Ian. Why don't you cool your jets, and just enjoy the moment!

My favorite part – Obama went through the list of usual suspects: "We are a nation of Christians and Muslims, Jews and Hindus" then added "– and nonbelievers" !!! Now, that's RAD! All right, Obama!

Ray O January 21, 2009 at 4:14 am

Alan,

The speech may have taken 30 minutes to deliver, but I'd love to know how many man hours were put into the creation of it.

When you say "enjoy the moment"………..what moment?? My wife's Polish and she was hoping for a Polish President.

Alan January 21, 2009 at 5:38 am

She should run… In America, anything is possible!

Rich Webb January 21, 2009 at 5:46 pm

Heck, I was just hoping for an American, conservative, moral, responsible, patriotic President. And I didn't get ANY of these.

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