An Austrian Critique of Hyperwage Theory: An Introduction

I chose to read, though not as thoroughly, the book Hyperwage Theory by a certain Thads Bentulan. (By the way, you can download a copy here: http://hyperwage.googlepages.com/Hyperwage-Theory-Compilation-Complet.pdf )

 

I first heard of the concept of hyperwage thanks to the Tax Planning Module of the RFP Program. I was quite entertained with the way Ms. Bigay delivered her lecture. But I felt something amiss. But I chose to dismiss it for the following months. But now, after having read the book, I find it lacking in merit, especially when viewed in light of Austrian Economics.

 

There are lapses of logic in the author's book. The only thing I could find consistent is his misrepresentations. Now, to be fair, I will read and reread this book for deeper analysis. 

I cannot and will not make a single post about it. The topics covered by hyperwage and the implications are wide. Hence, I have to institute this series. I cannot say that I can publish my findings on a regular basis. But I will try to post as soon as possible.

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Downloaded the 2007 Edition of Hyperwage Theory

I've skimmed some of its contents but I'm bothered. I will some thoughts later criticial of it, but IO will first read it with an open mind and suspension of disbelief. I'll start reading it tomorrow.

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Misesian Definition of an Entrepreneur et al

Mises defines our functions as follows:

In the context of economic theory the meaning of
the terms concerned is this: Entrepreneur means
acting man in regard to the changes occurring in the
data of the market. Capitalist and landowner mean
acting man in regard to the changes in value and
price which, even with all the market data remaining
equal, are brought about by the mere passing of
time as a consequence of the different valuation of
present goods and of future goods. Worker means
man in regard to the employment of the factor of
production human labor. (Human Action)

as cited in p104 of Economics for Real People

Emphases are mine.

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Repost: Help@Payatas Needed

EVERYONE: Help needed at Payatas. Corpses all over. no media attention. Please repost so others can also take action.

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Why Socialism Must Always Fail

This is an article that appeared in Capitalism Magazine. It is a down-to-earth exposition and elaboration of the problem of economic calculation posed by Ludwig von Mises. The economic calculation critique has continued to be the best explanation of why people should reject any form of socialism. It appeared in the 1920s but several people have not grasped or continue to ignore the impossibility of socialism. For this, I want to do my part of helping to educate as many as I can that only free markets are based on reason and thus desirable.

The article is quite long, which is why I will only quote certain excerpts. But, interested readers are given a link by which the full text can be accessed.

 

http://www.capmag.com/article.asp?ID=600

 

Why Socialism Must Always Fail: Ludwig Von Mises on Economic Calculation under Socialism

by Emmanuel Forgolou  (June 25, 2000)

"Without calculation, economic activity is impossible. Since under Socialism economic calculation is impossible, under Socialism there can be no economic activity in our sense of the word ... All economic change, therefore, would involve operations the value of which could neither be predicted beforehand nor ascertained after they had taken place. Everything would be a leap in the dark. Socialism is the renunciation of rational economy." -- Ludwig von Mises, Socialism, 1981, pp. 103-105.

Von Mises Socialism

First published in 1922 (under the title Die Gemeinwirtschaft), Mises' masterpiece Socialism was the lone dissenting voice to challenge the prevailing intellectual orthodoxy of his time.

In the aftermath of the Russian Revolution, an entire army of "useful idiots" (as Lenin contemptuously called Western intellectuals) were proclaiming the superiority of socialism. Blind to the massive evidence of socialism's failure that started accumulating as soon as the Bolsheviks came to power, collectivists throughout the world were singing paeans to the wave of the future that would allegedly sweep the outmoded capitalist methods of production into oblivion.

An essential aspect of Mises' exposition of the irrationality inherent in socialism is his concept of "economic activity." Mises does not use this notion to describe any processes entailed in producing goods. Arbitrary production plans set by the caprice of some commissar or planning board do not constitute economic activity. To qualify as economic activity in Mises' use of the term, production must be guided by rational principles.

The context in which Mises establishes the irrationality of socialism rests on the fundamental economic difference between capitalism and socialism, which economically consists of the private vs. communal ownership of the means of production.

 

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Although Mises' analysis is purely economic, it illustrates the effects of an abstract philosophic principle in an economic practical context. That principle is that capitalism is the only economic system based on reason, while socialism rests on arbitrary whim. While capitalism cannot be effectively defended solely on economic grounds, Mises' exposition is of tremendous value to philosophical defenders of capitalism.

Mises' conclusion can be combined with the defense of capitalism on the basis of the rational moral code defined by Ayn Rand (in "The Virtue of Selfishness" and "Capitalism: The Unknown Ideal"). In a brilliant demonstration of the power of integration, the philosophy of reason and sound economic theory concur to uphold the rationality of capitalism and expose the patent irrationality of socialism.

The truth of Mises' analysis was confirmed by historical experience. The irrationality of socialism was revealed in the fate of all socialist experiments conducted throughout the twentieth century. Stalin's Ukraine famine, the widespread starvation brought about by Mao's "Great Leap Forward," the decadent misery that is a daily fact of life in North Korea, Vietnam, Cambodia, Cuba, and all other socialist utopias is writ large for the full slate of the practical manifestations of Mises' conclusion that "Socialism is the renunciation of rational economy."

Now if only the economic professors at Yale and Harvard could grasp this fact.

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Translate to English: Pang-ilang Presidente ng Pilipinas si President Corazon Aquino?

May thread kasi sa SULIT forum tungkol kung Sino ang Mas Matalino, iyung mgaling sa English o magaling sa Math? 

Definitely, Math ang isasagot k. You really need to practice thinking there. Sa English, while admirable, you can develop it by sheer habit especially if you grew up in an environment where people are perennially English-speaking.

Eh may nanghamon nung ever puzzling Question nung hindi masagot ng mga magagaling sa English ang tanong ko sa Mathematical Logic at Abstract Algebra. Pang-ilang Presidente ng Pilipinas si President Corazon Aquino?

Alam nating walang direct English statement that could word-for-word translate it. Kaya ginawa ko, I used mathematical statements. Alam kong valid ito.

Let x be an element of X where X is the set containing past, present, and future Philippine Presidents.

Consider the statement:  x is the nth President of the Philippines. (n is a natural number)

Suppose x = Corazon Aquino, what is the value of n? 

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Viral Post: WARNING – Deplorable practice of Create Abundance 2020

The following is a note made by Mr. Alvin Tabanag regarding questionable activities of a certain group. I have reproduced the full text below. This post should appear simultaneously in My Posterous, Plurk, Facebook, Blogspot, and Multiply.

 

 

Alvin Tabanag, RFP - Pinoy Smart Savers

Acting on a tip from a concerned citizen, we have confirmed reports that members of a group calling itself Create Abundance 2020 (CA2020) have inserted unauthorized flyers in our book “Kaya Mo, Pinoy! 12 Steps to Build Wealth on Any Income” in several branches of two different bookstores. We have called the attention of the heads of these branches and secured copies of the flyers as evidence.

Flyers were also found inside the open books of other popular local and foreign authors like Robert Kiyosaki, Donald Trump, Brian Tracy, John Maxwell, Francisco Colayco, Larry Gamboa and Chinkee Tan. We can only surmise that the flyers were secretly and illegally inserted to give the impression that the books’ authors are endorsing the activities of CA2020. This same group has been dropping the names of known personalities in personal finance presumably to give an air of credibility to their activities.

Pinoy Smart Savers Learning Center DOES NOT support or endorse the activities of Create Abundance 2020. On the contrary, we’ve been very vocal against their continued operation despite the absence of a DTI, SEC & BIR registration and a business permit. We also find their investment scheme dubious.

We demand that Create Abundance 2020 legitimize their operation by securing the required legal documentation and to refrain from illegal and unethical practices in promoting their activities. Until these measures are taken, we strongly advise the public to ignore invites from the group and avoid investing with them.

Maraming salamat.

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Start of Cleaning up my emails

I have my main email account cluttered by pitches made by Internet Marketers. While I love Internet Marketing, I disapprove of the practices of many of pitching every time they email people in their list. My first target would be a well-known Filipino Internet Marketer. While I'm proud of his success and I love the bonuses I get once in a blue moon, you practically don't provide any value. So bye, I'll start opting out from nay lists and with you for a start.

 

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I'll use thi spost to test if I can embed Youtube videos via Posterous in the hope that I can see them in my Multiply...I'll embed Dave Ramsey's video as recommended by Sir Randell.

 

 

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Testing Posterous-to-PLURK-to Facebook Integrations

I'm having a hard time directly integrating my Posterous with Facebook, so I reactivated my Plurk-to-FB integration. The purpose of this test, for the information of those viewing the full text in Multiply, Blogger and elsewhere, is to test if I can post an update via Posterous that can be seen in my Facebook newsfeed thru my Plurk-FB integ. We'll see.

 

If this works and you're online in FB and you're one of my contacts there, you'll see my update as Testing Posterous-to-PLURK-to Facebook Integrations with a shortened link to this post@ Posterous.

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Testing Blogger and Twitter Integrations with Posterous

Added Blogger and Twitter to My Posterous.

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Acad Mode: Setting New Directions

These past few months, nay even years, I find myself not as driven as I hoped to be. It really feels nice to be driven in pursuit of a bigger goal. Anyway, I find that this needs to be changed if I want to take further challenges. What's good for today, I have chiseled a major block. I have renewed my commitment for new directions.

I cannot say I am religious. But if I were to ask GOD today why I had to pass the dark valleys of failure these past few years, perhaps he may answer in ways I do not expect. The years, if I think about them, did not come to waste.

Anyway, more of that sentimental stuff later. I also want to share a poem I found last year that best describes my attitude right now.

New Directions by Doris Warshay

I want to travel as far as I can go,
I want to reach the joy that's in my soul,
And change the limitations that I know,
And feel my mind and spirit grow;
I want to live, exist, "to be",
And hear the truths inside of me.

Kinakailangan Bang Ika'y Kalimutan?

Kinakailangan Bang Ika'y Kalimutan?
Marahil, iyun ang tamang hakbang
Aanhin pa ba ang ala-alang,
Hindi mo mapagtanto ang halaga?

Ikaw ba ay aking panaginip at ilusyon?
O Bangungut na hindi ko inasam?
Pareho! Panaginip at bangungot,
Bata'y kung saang anggulo titingnan.

Kailangan nga ba talaga kitang kalimutan?
Hindi kita gustong kalimutan.
At hindi iyun kakayanin sapagkat,
ang iyung ala-ala'y nakatatak na sa'kin panghabambuhay.

Ngunit kung dumarating ang mga sandaling
kailangang magpasya;
Masakit man, o imposible,
Sige, dapat na nga kitang Kalimutan, o Ala-ala.

Sa nagdaang mga taon,
Ika'y naging pasakit.
Kapit-kamay na aking mga tagumpay,
Pero ika'y nagseselos.

Ang gusto mo, aking ala-ala,
Wala akong makamit
sa dalawang naglalaban...
gusto mo, aking pagbagsak.

Ako'y nalinlang ng iyong pangako,
Pati pangako sa sarili'y aking iniwan;
Ako'y bumagsak, pilit bumabangot,
Pero hinihila mo, aking ala-ala.

Kaya't sa araw na ito,
Ginagawa kong opisyal,
Ang paglimut sa'yo,
At hindi ito masakit.

Ano ba ang mangarap ng matayog?
Kung ikaw ay nagseselos?
Paano ko mapagbubuti ang pananalapi,
Kung ikaw ay nasa gunita?

Kaya't kinakailangan ang paglimut.
Hindi lamang ito basta pag-alis sa isip,
Kundi ang buong pusong pasya,
Ng Paglihis ng ating mga landas.

Aking ala-ala, maraming oras aking sinayang;
Inalagaan kita, ngunit pabigat ka lang pala.
Hindi ko hinihingi ang pang-unawa mo,
At hindi mo rin ako inunawa.

At kalimutan mo ng ika'y naging bahagi
ng Aking Gunita.
Tanawin mo na lang ako sa hinaharap,
Matayog ang magiging lipad ko.

Literal o ispiritwal na mansyon,
sana's aking maipatayo;
Posible pa lang makamit,
Ng Dahil sa iyong paglisan.