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Labor Day 2022 – MLLG Special Posting . . . Economic Liberty – Not Government – Creates Wealth

Who do you trust to look out for children: the government or their parents?

Labor Day 2022 – MLLG Special Posting . . .

Economic Liberty – Not Government – Creates Wealth

By: George Noga – September 4, 2022

I hope you enjoyed summer. We begin with a preview of coming attractions. This fall we take on some radioactive issues such as homelessness, guns and schools, the 1619 project and slavery. There will be provocative posts for Columbus Day, Thanksgiving and Christmas. We will present our fearless forecast for the November election. We also revisit our three signature issues of climate change, spending crisis and school choice – each with new insights and analysis. My favorite post compares progressives to the collective hive of the Borg – you will find the similarities downright scary.

Economic Liberty and Cheap Third World Labor

On Labor Day we rightfully celebrate the dignity of work. We also should celebrate capital, which makes labor more productive and raises wages. Labor alone has wrought only poverty; but when capital alloys with labor, it puts labor on steroids and ends poverty. Labor Day also brings predictable condemnations of cheap third world labor from labor leaders, the media and progressives, who believe all of the following.

  1. Capitalists choose to pay subsistence wages amidst deplorable conditions.
  2. Profits could be used for higher wages and better working conditions.
  3. Child labor always is exploitative and condemnable.
  4. Globalization and free trade harm the poor in the third world and the US.
  5. Boycotts of companies using third world labor help foreign and US workers.

All the above beliefs are economically illiterate. Third world workers already are at subsistence; anything that increases the cost of employing them is at their expense. The higher the price of anything, the less will be bought; this applies to labor in developing countries. Improving the condition of workers requires economic liberty and minimal interference from government. Third world workers voluntarily (even eagerly) take low paying jobs because they are preferable to the devastating rural poverty they fled.

Time and time again, in Hong Kong, South Korea, India and China, workers are much better off after only one generation. Even Japan once was a third world country; I can remember when “made in Japan” was an eponym for shoddy and cheap. Dickensian England was indeed grim, but after one generation wages exploded, life expectancy and literacy soared, child nutrition and mortality improved, child labor receded, school enrollment surged and great prosperity, continuing to this day, was unleashed.

Third world workers (yes – including children) are better off working than the life they left behind. It was no different in the United States. My uncle began working in the coal mines at age six because small children with lithe bodies could crawl into small spaces. Child labor was not uncommon in early twentieth century America, but parents always remove children from the labor force just as soon as humanly possible and long before child labor laws are enacted, which was not until 1938 in the USA. Who do you trust to have the best interests of children at heart – government or their parents?

Globalization and free trade benefit the poor in third world countries and in the USA. Boycotts are the province of economically ignorant, virtue signaling progressives. Great harm would befall displaced third world workers trying to lift their families out of poverty. Low-income Americans likewise would be harmed by being forced to pay more for many products. Walmart and similar stores, which sell goods manufactured in developing countries, save the typical American family about $200 per month.

Economic liberty, combined with capitalism, has lifted billions of people out of poverty just in our lifetime. Extreme poverty has plunged from 45% in 1980 to under 10% today; during that same time, world GDP more than tripled. Workers in developing countries are on the first rung of the economic ladder to success. They need economic liberty without government interference to continue climbing the ladder.

It wasn’t that long ago when America was a developing country utilizing child labor, particularly in mining and agriculture. By the way, my uncle, who worked in the coal mines beginning at age 6, later became an electrical engineer and lived to be 101.

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Next – Shocking links between the Borg (from Star Trek) and progressives

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Travels with George: 1968 to 1972 (Part II)

Playing golf in Portugal was much cheaper and easier than in New York.

Travels with George: 1968 to 1972 (Part II)

By: George Noga – July 31, 2022

During these dog days of summer, I am taking a break from defending liberty and skewering government. I worked at a major airline in New York City from 1968 to 1972 and had a pass good for free first-class travel on any airline anywhere in the world. This is the second part of my misadventures; if you missed the first part last week (Israel, Athens, Marrakesh, Hong Kong, Macau, Djakarta), it is on our website.

East Africa: I went on a photo safari in Kenya, Uganda and Tanzania. Seeing my first lion in the wild was exciting; seeing the 100th lion, less so. Unfortunately, my visit coincided with Idi Amin expelling the Indians from Uganda. I planned to go from Nairobi to Bombay, but the airport was jammed with thousands of Indians trying to get on flights to India; more thousands were camped around the airport. Just getting inside the airport was daunting. I was lucky it took me only two days to get on a flight.

India: My bad luck continued; I arrived in Bombay just as war broke out between India and Pakistan. The Pakistanis were bombing Bombay and there was a blackout in effect the entire time I was in India. I had a pre-dawn flight from Bombay to Bangkok and my taxi ride from the hotel to the airport (a considerable distance) in total darkness was harrowing, as no vehicles could use headlights nor was there any street lighting.

Portugal: Beside me, there were a few other unmarried TWA management personnel who liked to play golf, which was next to impossible living in Manhattan. It actually was easier and cheaper to golf in Portugal. Periodically, we flew (first class) Friday after work, arriving in Lisbon early Saturday. We checked into the 5-star Hotel Palacio in Estoril just outside Lisbon. We then played 36 holes with caddies at a nearby championship golf course. We napped briefly before dinner at the best restaurant in Portugal, followed by a succession of fado bars. We played another 18 holes Sunday before our afternoon flight to JFK. The total cost for everything – $60 per person!

Note: A few words are in order concerning prices: The USA was on the gold standard until 1971 and Europe was still recovering from WWII. Consequently, the dollar was absurdly strong; in many places the local currency seemed like monopoly money.

Hungary: I took my parents to Hungary as my mother was of Hungarian descent and spoke fluent Hungarian. This was my first time behind the iron curtain and crossing from Austria into Hungary was unforgettable. Our train was descended upon by a phalanx of armed police before crossing no-man’s land of dogs, razor wire, minefields and towers with searchlights. Welcome to the people’s paradise of Hungary.

Even after converting our dollars into forints at the official exchange rate, everything was ridiculously cheap. One night we had dinner for six (we invited a family we had met on the train) at a fine restaurant with ample Hungarian wine; the tab was $20. We stayed at a guest house in Budapest; the cost for all three of us including lodging and breakfast was $1.20. We traveled to the village where my grandmother was born and met relatives who never knew we existed. It was draining emotionally for everyone.

Austria: Just as with golf in Portugal, it was cheaper and better to ski the Alps. Over the Christmas – New Year’s holidays we would ski in Lech, Austria, one of this world’s top resorts. We stayed in a 5-star hotel that cost $16 per person per night including lodging, three meals and afternoon tea with live music. I skied Lech 6 times; one memorable trip there was with my wife in 1976. We spent an entire month in Europe during which we skied for three weeks in Lech. We stayed at a nice hotel (including breakfast) with a balcony overlooking the slopes, skied every day but one, and ate dinner at the finest restaurants. The total cost for the month including air was $2,000. Note: I took my family of four to Lech in 1999; the cost was well over $1,000 per day.

Switzerland: During all my travels I never missed a day of work. Once I flew from Australia arriving at JFK at 7:00 Monday morning. I changed at the airport and arrived at work on time. The only time I missed work was on a late flight from Switzerland (I was skiing in Zermatt) that got cancelled for mechanical reasons and there were no other flights to the US. It was on the flight the next day that I met my future wife.

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Ruminations: I visited over 30 countries while still in my 20s. I visited most of them again 40 to 50 years later after I had retired. A half century ago each country was distinctive; today, they all blend together. It was interesting to observe the incredible changes that took place throughout the world during the 50 years between my visits.

Although not well-off by any stretch, I was able to travel the world in high style at a young age. Thanks to my airline pass, huge airline discounts at hotels and an incredibly strong dollar, I was privileged to sample the very best this planet of ours has to offer.

WE ARE TAKING A SUMMER BREAK. THE NEXT SCHEUDLED POST IS SEPTEMBER 4; HOWEVER, WATCH FOR POSIBLE UNPLANNED POSTS.

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Next on September 4th: Labor Day and MLLG preview for remainder of 2022

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Travels with George: 1968 to 1972

I was privileged to travel the world at a young age and when the dollar was king.

Travels with George: 1968 to 1972

By: George Noga – July 24, 2022

As suggested by some long-time readers, I am lightening up with personal anecdotes during the dog days of summer. Everyone my age has some gripping experiences and I certainly have my share. The headline above is a knockoff of Travels with Charley, about Steinbeck’s travels across America in the 1960s – a good read. Enjoy!

Upon completion of my MBA and military duty, I was hired by Trans World Airlines in 1968 as a financial analyst at its headquarters in midtown Manhattan; I remained at TWA until 1972. As management, I had a pass enabling me to fly anywhere on TWA. In 1969 I was promoted to middle management and received a pass permitting me to fly free first class on any airline anywhere in the world. Following are highlights.

Israel: I walked alone throughout the old city of Jerusalem, along the Via Dolorosa and to the Wailing Wall – all in territory recently liberated by Israel and long before tourists arrived; it was too dangerous. I then went to Bethlehem where I was the only non-Muslim in the town and the only person in Manger Square. I visited a kibbutz and went, along with a heavily armed patrol, to a nearby swimming hole. Everyone took turns swimming while the others stood guard with automatic weapons at the ready.

I rode the Marrakesh Express – literally and figuratively.

Athens: I arrived discombobulated after a long flight and awoke well before dawn. I took a cab to the Acropolis just as the sun crept over the horizon. I had the Acropolis entirely to myself for an hour; I was free to roam anywhere. The last time I was at the Acropolis, there were at least 5,000 tourists and much of it was closed off to visitors.

Marrakesh: After flying into Casablanca, I rode the Marrakesh Express to Marrakesh, both literally and figuratively – if you follow my drift. I stayed in the ultra-luxe La Mamounia Hotel, where Winston Churchill was a habitue. I paid $16 per night; today it would cost $1,000. My father was stationed in Marrakesh during WWII and his letters from there (which we still have) are very descriptive, adding cogency to my visit.

Hong Kong: I arrived in Hong Kong just as Chinese New Year was in full swing. The scene was pulsating, like nothing I had seen or even imagined. I intrepidly ventured into the street and mingled with the frenetic crowd as it paraded through the streets.

My bathroom consisted of a hole in the ground and a shovel.

Macau: I took the hydrofoil to Macau to test my luck; there were only two casinos back then. As I was boarding the last hydrofoil back to Hong Kong, a Chinese gentleman recognized me from the casino and, using sign language, beckoned me to follow. He led me to the penthouse suite where there was to be a private blackjack game with 10 people, not one of whom spoke English. I panicked when my turn came to deal because I knew if I lost the first few hands, I would be out of money. Fortunately, they were bad players, and I thankfully won the first several hands.

Djakarta: I was enroute to Singapore from Australia and foolishly stopped in Djakarta without hotel reservations. There was but one first-world hotel back then and it was full – people were even sleeping in hallways. I ended up at a hotel where the bathroom consisted of a hole in the ground and a shovel. It required several fingers of duty-free scotch to get to sleep. I awoke with lice and cajoled my way into the Intercontinental Hotel swimming pool where the chlorine was strong enough to kill the lice.

To cap it off, I was detained at the airport when leaving Indonesia and questioned in an intimidating soundproof room. The gendarmes thought I was a foreign intelligence agent and couldn’t understand why anyone my age would visit Djakarta without family or business. At length, I was able to convince them I was an airline employee. I barely made my thrice weekly flight to Singapore, which was heaven compared to Djakarta.

Next week, Travels with George continues with more misadventures in Africa (Uganda, Tanzania and Kenya), Austria, Switzerland, Portugal, Hungary and India.

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