labor Archives - Zenconomics

Employment Does Not Drive Economic Growth

For the head of the Federal Reserve Board Janet Yellen — and most economists — the key to economic growth is a strengthening in the labor market. The strength of the labor market is the key behind the strength of the economy. Or so it is held. If this is the case then it is valid to conclude that changes in unemployment are an important causative factor of real economic growth.

This way of thinking is based on the view that a reduction in the number of unemployed persons means that more people can now afford to boost their expenditures. As a result, economic growth follows suit.

We Need More Wealth, Not Necessarily More Employment

The main driver of economic growth is an expanding pool of real wealth, gained through deferred consumption and increases in worker productivity. Fixing unemployment without addressing the issue of wealth is not going to lift economic growth as such.

It is the pool of real wealth that funds the enhancement and the expansion of the infrastructure, i.e., an expansion in capital goods per individual. An enhanced and expanded infrastructure permits an expansion in the production of the final goods and services required to maintain and promote individuals’ lives and well-being.

If unemployment were the key driving force of economic growth then it would have made a lot of sense to eradicate unemployment as soon as possible by generating all sorts of employment.

It is not important to have people employed as such, but to have them employed in wealth-generating activities. For instance, policy makers could follow the advice of Keynes and his followers and employ people in digging ditches, or various other government-sponsored activities. Note that the aim here is just to employ as many people as possible.

A simple commonsense analysis however quickly establishes that such a policy would amount to depletion in the pool of real wealth. Remember that every activity, whether productive or non-productive, must be funded. When the Fed or the federal government attempt to increase employment through various types of stimulus, this can result in the expansion of capital goods for non-wealth generating projects which leads to capital consumption instead of growth.

Hence employing individuals in various useless non-wealth generating activities simply leads to a transfer of real wealth from wealth generating activities and this undermines the real wealth-generating process.

Unemployment as such can be relatively easily fixed if the labor market were to be free of tampering by the government. In an unhampered labor market, any individual that wants to work will be able to find a job at a going wage for his particular skills.

Obviously if an individual demands a non-market related salary and is not prepared to move to other locations there is no guarantee that he will find a job.

For instance, if a market wage for John the baker is $80,000 per year, yet he insists on a salary of $500,000, obviously he is likely to be unemployed.

Over time, a free labor market makes sure that every individual earns in accordance to his contribution to the so-called overall “real pie.” Any deviation from the value of his true contribution sets in motion corrective competitive forces.

Purchasing Power Is Key

Ultimately, what matters for the well-being of individuals is not that they are employed as such, but their purchasing power in terms of the goods and services that they earn.

It is not going to be of much help to individuals if what they are earning will not allow them to support their life and well-being.

Individuals’ purchasing power is conditional upon the economic infrastructure within which they operate. The better the infrastructure the more output an individual can generate.

A higher output means that a worker can now command higher wages in terms of purchasing power.

Article originally posted at Mises.org.

Birth – What Are the Philosophical Options?

by Carol Phillips D.C. – ICPA.org:

A woman’s body is exquisitely designed to conceive, nurture, and birth another human being. After conception, a woman and unborn child will unite in an oceanic blend of energy and identity… where one ends and the other begins no one knows.

A woman becomes a parent at the moment of conception. Every decision made from that moment on will affect her unborn child in some way. In order for her influence to have a positive affect, a woman must be prepared to make educated and informed decisions concerning the foods she will consume, the thoughts and images she will imprint on her baby’s developing brain, and the birth model she will embrace – technological, holistic, or humanistic. A female child spends her entire early life preparing for the possibility of motherhood so she can inadvertently make those decisions.

During childhood, a young girl learns to parent by example. She watches her mother and records subconsciously what she observes. Later, a teenage girl prepares her body for motherhood. Without her conscious knowledge, a teenager stores some of the nutrients she consumes to insure she has the building blocks to form a body for future children. For example, she must consume folic acid to prevent birth defects; essential fatty acids to build the central nervous system and peripheral nerves of a future embryo; and calcium for future fetal bone growth. Nature does its best to insure that a woman is prepared for parenting, but the forces of nature are not enough if she is not an active participant. Her body can not store what she does not consume. Consequently, we must educate our young girls early on about the concept of preparing their bodies for conception.

Conceiving and nurturing the unborn child are only two of the most important concepts we must teach future parents. Entrusted with the guardianship of a new life, a pregnant mother must also learn that all decisions surrounding her pregnancy, labor, and delivery should be based on knowledge and confidence rather than fear or impatience. Therefore, one of the most important concepts a parent must educate herself about is the birth model she will choose to adopt.

There are three basic philosophical models that a pregnant parent may choose from. The first and most commonly adopted is the technocratic model. In this paradigm, a parent accepts that the human body functions like a machine. Robbie Davis-Floyd in Birth As An American Rite of Passage demonstrates how this model, which is the foundation of modern obstetrics, views the female body as unpredictable and inherently defective. Consequently, it may malfunction at any time. The basic tenet of this model of birth holds that some degree of intervention is necessary in all births. Women who embrace the technocratic model enter the birthing room believing that science is there to take care of them and save them from the pain and anguish of childbirth.

On the opposite end of the spectrum is the holistic model. Within this paradigm of birth, the family is the significant social unit instead of the hospital. Under the holistic model, the human body is a living organism with its own innate wisdom, an energy field constantly responding to all other energy fields. Female physiological processes, including birth, are healthy and safe and need no medical intervention. Under this model, the mother’s mental and emotional attitudes affect her performance during birth, as do the beliefs and actions of the partner. It is almost impossible for a parent who adopts the holistic paradigm to deliver within the hospital environment because of the inherent institutional management of birth associated with the technocratic approach.

In-between these two diametrically opposed models of birth lie the humanistic model. When adopting this paradigm, a mother believes she is an individual and must be treated as such. She believes she has the right to promote shared decision-making and responsibility for all aspects of the birth process. This model views the parent holistically while remaining open to the use of technology if applied judiciously. When a pregnant parent adopts a humanistic model, she surrounds herself with loving people who are willing to assist her by walking with her, rubbing her back, helping her move in and out of the bath, holding her, encouraging her, and providing support for any decision she makes. Her birth may occur either in the home, a birthing center, or a hospital if she has a birth attendant who also adopts the humanistic model.

Before women can make decisions concerning which birth model best suits her own philosophical beliefs, she must know that she has several options. As a profession, we must educate ourselves and our patients about the two models that are most suited to our vitalistic belief system. If we all learn how to honor the inherent wisdom of women and developing newborns, we can have a positive impact on the mental, physical, and spiritual growth and development of the next generation.

Article originally posted at ICPA.org.

Non-intervention: Don’t Just Do Something; Stand There!

submitted by jwithrow.

Journal of a Wayward Philosopher
Non-intervention: Don’t Just Do Something; Stand There!

February 26, 2015
Hot Springs, VA

The S&P opened at $2,114 today. Gold is up to $1,215 per ounce. Oil is back up to $50 per barrel. Bitcoin is up slightly at $237 per BTC, and the 10-year Treasury rate opened at 1.94% today.

Don’t just do something; stand there!

I chuckled when I heard this spin on the popular cliché in regards to the proper approach to natural childbirth. Then it occurred to me that this call for non-intervention is applicable for pretty much every other subject we take interest in here at Zenconomics: finance, economics, health care, education, government, all of them. Modern culture has taken a hyper-invasive approach in each of these areas to most everyone’s detriment.

Non-intervention in childbirth is based on the understanding that the mother is perfectly capable of delivering her child without any external ‘help’ save the support of her partner and her health care team. Non-intervention in childbirth operates on the firm belief that the mother’s body is perfectly designed for the task at hand and we have a lot of historical evidence to support this position.

We don’t know for sure how long the human race has been around. History textbooks tend to start the timeline around 10,000 B.C. and they say we were all cavemen for about 25,000 years prior to that. I have seen compelling alternative studies that suggest the caveman story is largely false and that humans existed at least 100,000 years ago with relatively the same genetic structure and cognitive ability. Regardless of the timeline, what we do know is that children have been born naturally according to the non-intervention principle for 99.9% of human history. Modern hospitals did not take shape until the turn of the 20th century and 95% of all children in the U.S. were still born at home in 1910. The number of homebirths plummeted to 3% by 1960 and looks to have bottomed at 1% in 1980. Approximately 5% of all births in the U.S. are currently homebirths outside of the hospital.

The data shows that complications do occur during natural labor about 10% of the time and the vast majority of these cases are minor but best addressed in a hospital setting. This is the primary risk when doing a homebirth but the risk can be mitigated with an emergency back-up plan. Fortunately, the possible complications are well-documented and they can be detected early simply by monitoring the baby’s heartbeat during labor which is now very easy to do thanks to the advancement of technology.

U.S. hospitals are extraordinarily good at handling emergency complications but this has led to a hyper-invasive approach. U.S. hospitals view childbirth as an emergency situation and employ all manner of invasive interventions during every birth whether or not a complication arises. This interventionist approach actually increases both the probability of a complication occurring as well as the severity of that complication because invasive interventions have unintended consequences. This is why you hear about so many birth horror stories in the U.S. Standard interventions like planned inductions, synthetic labor enhancing drugs, drugs for pain relief, and the restriction of free-movement disrupt normal physiology which can have undesirable effects on both mother and baby.

Non-intervention in childbirth is about trust. We must trust in the magnificent creative power that permeates the Universe. We must trust in the chaotic order and balance of the natural world. We must trust in the innate strength and wisdom of the mother. And we must trust in the majesty of childbirth.

The non-intervention philosophy is simple, holistic, and comprehensive. This applies to natural childbirth just as it applies to holistic wellness practices, free market economics, sound personal finance, childhood education, and the role of government which we will look at tomorrow.

Non-intervention requires a commitment to research, knowledge, and understanding which will cut through unsubstantiated fear and propaganda. It requires strength of will and a calmness of mind capable of tuning out the noise while tapping in to the inner wisdom we all possess. Perhaps most of all non-intervention requires an acceptance of personal responsibility: we are each personally responsible for every choice we make.

Non-intervention is not complicated but it does fly in the face of modern culture. We are constantly inundated with messages of insecurity, materialism, conformity, status, fear, intolerance, and hate from mainstream media sources – especially from the television “news” programming. These messages almost exclusively hold intervention as the solution to any problem and this outlook has shaped modern culture as most people buy right in to this way of thinking. But an amazing internal transformation occurs within those who tune out the noise and embrace the philosophy of non-intervention.

Our midwife made a profound statement to wife Rachel and I during our initial informational interview and the wisdom of her words still echoes in my head:

”A good midwife knows when to sit on her hands.”

I am convinced that this ability to sit patiently on one’s hands with a calm mind while the crowd screams for action is the peak of self-discipline.

Until the morrow,

Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and the paradigm shift underway please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

The Majesty of Childbirth

submitted by jwithrow.

Journal of a Wayward Philosopher
The Majesty of Childbirth

October 27, 2014
Hot Springs, VA

The S&P is checking in at $1,964, gold is at $1,228, oil has dipped down to $79, bitcoin is trading hands around $355, and the 10-year Treasury rate is at 2.25% today.

October has been the most volatile month of 2014 for U.S. stocks. The Fed is supposed to end QE3 (quantitative easing) this month which has investors nervous. Does the market tank when QE3 ends as it did with the end of QE1 and QE2? Or is the economy all better and ready to resume some semblance of normalcy?

My guess: get ready for QE4.

Mr. Market tried to clean out the gutters back in 2008 by liquidating unsustainable debt but the Fed intervened. With their quantitative easing chicanery, the Feds not only prevented Mr. Market from liquidating bad debt, they also piled even more rotting debt on-top. Without QE, Mr. Market would be free to begin the healing process which requires clearing out bad debt and insolvent entities. But most of the bad debt lives on the balance sheets of the federal government and now the Federal Reserve (transferred from Wall Street) and liquidating this debt would reveal the fundamental insolvency of these entities.

How best to hide insolvency? Print money to pay the debts! Hence: QE4 coming soon – probably early 2016.

Shifting gears: Madison made her entrance last week!

She was born on October 20 at 9:59 pm right here in Hot Springs, VA.

In our dining room.

Oh don’t worry, we put the dining room table out in the garage and replaced it with an Aqua Doula pool and a queen-size mattress.

The result: a healthy 7 lbs 11 oz baby girl born completely naturally with no invasive interventions or pharmaceutical drugs necessary. Just like childbirth has been done for thousands of years!

Wife Rachel said the homebirth experience has far exceeded her expectations in every aspect.

Instead of laboring on her back underneath fluorescent lights hooked up to an I.V., monitors, pain-killers, and labor-enhancing drugs, Rachel paced back and forth from our Great Room to our kitchen while verbally telling Madison she couldn’t wait to meet her. No one was around to bother her save her husband who valiantly tried to be a breathing exercise leader while also laboring himself to fill up the 170 gallon Aqua Doula pool. Needless to say, Madison did not wait around to test her sea legs and she was born very peacefully on dry land… into her father’s waiting hands.

Upon her birth, there was no one waiting to rush her off to be weighed, measured, poked, prodded, or checked so Madison had to settle for laying in her loving mother’s arms instead. While mother and baby bonded in those first few minutes of life, our midwife and doula worked gently to make sure both parties were in good health as the birthing process neared completion. Once confident in the health of mother and baby, our health care team worked diligently to clean and sanitize the area, provide food and water, do laundry, provide advice, tips, and reassurance, and countless other things that a star-struck father couldn’t possibly pick up on in the most defining moment of his life.

Our midwife and doula monitored the situation and provided sound counsel for roughly four hours post-birth as well. “This is what real health care looks like”, I thought. Our midwife came back out to our house for a 36 hour appointment and then again for a five-day appointment. She also answered several phone calls and text messages at weird hours during the stretch in-between appointments as well.

The result of such wonderful health care service is that both mother and baby are in terrific health despite not having left the comfort of their own home. It will be more than two weeks from birth before mother and baby will need to leave their home for another appointment.

The entire experience has confirmed what we knew all along – that natural childbirth at home is a much healthier and happier alternative to hospital birth for both mother and baby.

Of course few others understood this. Some just shrugged at the eccentricity of such an endeavor. Some turned their nose up in disgust. Some thought us to be ignorant, selfish, and cheap.

What they didn’t see were the countless hours dedicated to learning, study, and research over the course of nine months. They didn’t see the pages turning in the books that were read. They didn’t see the computer screen scrolling as medical studies and articles were mentally consumed. They didn’t drive an hour and a half to natural childbirth classes every Thursday evening for six weeks after a full work-day to increase their knowledge and understanding before driving an hour and a half back home to get ready for the following work-day. They didn’t watch the videos and the documentaries or practice the comfort techniques or study the possible complications and their signs. They didn’t sit up at night discussing emergency plans and precautions. They didn’t give up coffee, tea, and soda (caffeine) or dramatically reduce their intake of processed foods for nine full months. They didn’t eliminate glucose from their diet for a full week in the final week of their pregnancy.

But someone did do all of these things.

Someone put the time, effort, and work in to make sure they were making the best decisions possible and to make sure they were fully prepared for what was to come. Someone decided that she would be responsible for educating herself first rather than being wholly dependent upon the status-quo.

Someone decided she would be Super-Mom.

To her I pledge my eternal love, respect, and service.

More to come,

Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and regaining individual sovereignty please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.