Earlier this year, I read Escape from Camp 14: One Man’s Remarkable Odyssey from North Korea to Freedom in the West, by Blaine Harden. It was very riveting. If you want to know the extent to which Totalitarian government can go, this book is a must-read.
There is no limit to the ways that government will assault your dignity–and humanity–given sufficient power. Shin Dong-hyuk–the only known person to have been born in a North Korean prison camp–and managed to escape, provides a stirring, damning, devastating real-life testimony to that.
Enter The Hunger Games, by Suzanne Collins. I’ve got several FB friends–and a couple friends from my church–who have read it, and the feedback was very good. I still was reluctant to read it, as it appeared to be a fad. The Christian hoopla over the book reminded me of The Prayer of Jabez, and some pastors even went as far as preparing Bible studies based on various themes in the book. I had a bad feeling about that.
Then my former crisis pregnancy center boss–JH–recommended it. She’s of a similar mind as me, and, usually, if she recommends something, I’m not disappointed.
The Hunger Games (THG) was no exception.
THG takes place in a futuristic society called Panem, located in North America, with the Capitol based in what we know as the Rocky Mountains. The country is divided into twelve geographical districts, with a thirteenth that allegedly was destroyed for rebelling against the Capitol. As punishment for the rebellion, each year a boy and a girl from each district–between ages 12 and 18–are selected to fight it out in The Hunger Games. This is televised in a reality show setting, with the contestants–called “tributes”–fighting each other to the death within a large climate and terrain-controlled arena.
The plot begins in the poorest of the districts: District 12, which is in Appalachian coal mining territory. The main character–Katniss Everdeen–volunteers for the Games in order to take the place of her 12-year-old sister (Primrose), who was drawn from the names of girls. The male “tribute” from their district–Peeta Mellark–has had a crush on Katniss since his youth.
The leadup to the Games is sickening to read, as you have a government-media culture that puts the best reality show face on what is basically a kill-fest. Before the Games, the tributes are under pressure to put on a great posture for “Gamemakers” in order to get donations from sponsors that will prove invaluable during the games. Fashion consultants give special attention to the costume design, tributes get scores on their abilities with weapons and fighting techniques, and even their televised interviews.
The tributes themselves are also a sea of complexity:
Katniss: A survivor through and through, and who is very cynical about her fellow competitors. She is reluctant to trust anyone, even though she is not averse to forming some alliances, such as with Rue;
Peeta: A baker’s son who has been in love with Katniss his whole life. He has done many things intentionally to help and protect Katniss, even at risk to his life. Still, Katniss has trouble trusting him.
Rue: a young girl whose great talent is roaming high among the trees, and evading captors. She forms a friendship with Katniss, who also is effective in the trees;
Foxface: a young girl whose great strength is staying away from the fights. She is very evasive, very sneaky;
The “Careers”: these tributes have been trained their entire lives for the Games. They are big, tough, and brutal. They will kill even their “allies” without a second thought. They have their sights trained on Katniss from the get-go. The most notorious of the bunch–Cato–is one of the last standing.
The Games pits tributes against each other, and–like a reality show–encourages alliances and subplots while pushing them to kill each other. The “Gamemakers” often switch the conditions–such as weather–in order to get more action going. Ultimately, it pits the people of the respective districts–who watch the games religiously–against each other, as they root for their tributes to kill others.
The complexity does not merely extend to the tributes, either.
The trainer for Peeta and Katniss–Haymitch, a former Games winner–was drunk, surly, and shrewd. He is difficult for either Peeta or Katniss to trust, and yet he has a tendency to come through for them in ways they don’t expect.
I don’t know Suzanne Collins, nor am I aware of her political leanings or her thoughts on the direction of government. I suspect that her views are probably well to the left of mine.
But in THG, Collins gives us a devastating portrait of where we are heading as a country. To call it Orwellian would not do THG justice: Next to Panem, Orwell’s Oceania is a libertarian paradise. It is what you get when you combine North Korean-style fascism with American reality television culture.
Four and a half stars.

Book Review: America’s Great Depression, by Murray Rothbard
Understanding the dynamics of economic calamities is extremely important; unless we heed the lessons learned when they happen, we are going to repeat the cycle.
If Murray Rothbard’s account of the events leading up to–and following–the onset of the Great Depression are accurate, then we have not learned that lesson. Rothbard lays that out in unadulterated detail in America’s Great Depression.
In fact, as one reads the book, all one needs to do is change the names and the dollar amounts, and we get a near-identical picture of our current financial crisis.
Rothbard starts by making the case for the Austrian (Von Mises) theory of the business cycle: that boom-bust cycles are caused by infation of the money supply which leads to an eventual correction (recession/depression) that causes the money supply to deflate, leading to drops in wages and prices. (Prior to 1929, depressions usually lasted little more than a year before full employment eventually returned.)
After he lays out the dynamic, he then confronts–very effectively–the various criticisms of the Austrian model.
Once Rothbard has made the case for the Austrian model, he lays out a stunning assessment of the events of the 1920s and early 1930s.
Here are some observations:
*Just like the 1020s, the Federal Reserve inflated the money supply in the late 1990s. The stock market bubble burst in 1929; the tech bubble burst in March 2000.
*When the stock market crashed in 1929, the Fed responded by inflating the money supply even further. In 2001, the Fed cut the Fed Funds Rate and the Discount Rate by a combined 1,000 basis points.
*The Hoover Administration, contrary to modern dogma, responded with a very interventionist policy:
Contrast that with today’s actions by President Bush, Treasury Secretary Paulson, and Fed Chairman Bernanke:
Sadly, Rothbard makes the damning case that none of the government efforts to “help” the economy worked; in fact, their interference in the market only made the Great Depression worse. A 1 or 2 year correction turned into a 10-year disaster during which the GDP fell over 50%.
If Rothbard’s case is accurate–and it appears to be so–then the world in general, the United States in particular, is in for a nasty ride.
Why does Rothbard’s case seem strong? It is monetarily sound.
If you are working and earning $30,000 per year, then start taking out loans and opening up credit card accounts–credit expansion–then you will be able to spend a lot more and acquire a lot of assets faster than you would by living on your salary.
The trouble is, you cannot run up an infinite amount of debt. At some point, the deflation must happen. Either (a) you cut your spending and pay down your debts, (b) the creditors move in and seize your assets, or (c) you go bankrupt, or (d) first (b) then (c). After the correction, assuming you have learned your lessons, you can then recover.
It’s the same way with economies, only nations–unfortunately–can always print more money and create new credit out of thin air whereas we cannot. When nations create large amounts of fiat money, it comes back and bites us one of two ways:
(1) It results in high inflation, possibly hyperinflation (like Zimbabwe)
(2) It results in larger government debt (like the United States)
Either way, it adversely impacts the economy by impeding the natural correction process. At best, it defers the crash for a later date (and at compound interest). At worst, it prolongs a crash that is in progress.
Rothbard has provided a necessary indictment of three sacred mantras in serious need of public debate today:
(1) Government intervention to ease the effect of recessions
(2) The Federal Reserve and their role in business cycles
(3) Fractional reserve banking.
Rothbard makes a devastating case against government intervention–in the form of increased spending–to prevent and mitigate recessions. He shows that, as the depression kicked in, the government’s burden on the taxpayer–and the GDP–actually increased. This resulted in money going to government–which produces little or no economic value–where it could have gone to industry, which does produce economic value. He also takes Hoover’s attack on short-sellers to task, as it prevented the necessary corrections that would have made market liquidation more orderly.
In fact, he makes a strong case that, during recessions, government sould cut spending and reduce their proportionate load on the taxpayers.
Arguably, his most damaging indictment was on the Federal Reserve. Their monetary policies of the 1920s–in collusion with the Harding, Coolidge, and Hoover administrations–ramped up a level of global economic activity that was not sustainable. We created money faster than the economy created value. This made for a crash that should not have been surprising.
In addition to the Federal Reserve, Rothbard aimed both barrels at the paradigm of fractional-reserve banking. He quite aptly referred to it as a counterfeiting system. Most people don’t realize this, but when a bank gives you a loan, they are not giving you money; they are creating money on your behalf. When debts go unpaid and banks must write that off, that results in the destruction of money and a deflation of the money supply.
In lieu of fractional reserve banking, Rothbard makes a strong case for the gold standard, which mitigates the capacity of our Treasury to play with the money supply.
This does leave us a warning, however: even within a gold standard, government will work to inflate the money supply. This is because, as Rothbard eloquently puts it: politically, inflation is always preferable to recession.
Unfortunately, Rothbard’s critique of Hoover-Roosevelt does not shine a positive light on Bush-Paulson-Bernanke. Even worse, both major Presidential candidates–McCain and Obama–support the very same policies that Bush has implemented; they differ only on details. Neither has said a word about monetary policy or the role of the Fed.
In fact, while Bernanke likes to say that he learned the lesson of the Great Depression–he credits Friedman’s monetarism and promises that he will never let it happen again–even Anna Schwartz, Friedman’s partner in A Monetary History of the United States–chides Bernanke for “fighting the last war”.
Bush, in turn, has abandoned the supply-side heritage of Reagan in favor of Hoover-FDR Keynesianism on steroids.
What can we expect in the next 6 to 12 months? If I had the perfect answer, I’d be on television.
While the bailout money could provide some semblance of a recovery as lenders start lending again, the resultant debt is going to bode catastrophically for the American people. Economic activity is not going to reach its prior level for many years. Irrespective of who wins on Tuesday, neither will be able to snap a finger and make all things well.
For now, Americans need to cut spending, stock up on necessities (food), and work to pay down debts. I’d venture to say that, regardless of the short-term effect of the bailout, things are going to be trending badly for a while.
As Rothbard points out, government is not helping this one bit.