John Galt's Revenge

So the tax cuts will be extended and the President is courting CEOs to get them to spend money and step up hiring. I was watching CNBC the other day with interviews of the various CEOs who met with the President and while they were talking a good game of cooperation with the administration, some of their body language and facial features led me to believe otherwise. Some of the CEOs gave the impression that they were no longer the pitchforkees but rather the ones who would do the pitchforking, metaphorically speaking, of course.

Not so long ago, businesses, in particular, small businesses with little protection from the government were under threat. Taxes, health care and unemployment were all going up and regulations that would stifle growth gave owners no incentive to hire or grow. Owners battened down the hatches by holding money on the sidelines and hired as few people as possible. In essence, they went John Galt, maybe not exactly along the lines of Atlas Shrugged,but for the most part, they withdrew their talents, protected their assets, and let the government feel the heat from those not able to get jobs or benefit from these companies. This heat led Obama to understand that his presidency was in jeopardy and that without the "motors of the world," he could not succeed. But more importantly, these businesses struck a blow against creeping collectivism. Good for them.

PJTV: "Going Galt": One year later

My show is from the PJTV studio in Washington D.C. where I interview Ed Hudgins of the Atlas Society on "Going Galt" one year later. We talk about "going Galt," the Tea Party movement and why it's time for Americans to launch a moral offensive to combat encroaching government.

You can watch the show here.

"...the only way to assert your human dignity is to walk away."

Stuart Schneiderman: Is America Going John Galt?:

They do not know and do not care that the productive human beings who make the economy run are about to walk away from it all. They are not seeing things in terms of human beings and in terms of policies that might or might not work. They are seeing a golden opportunity to right what they perceive as a decades-old wrong. They are not going to miss the chance.

So,the new governing class is constantly attacking the productive class, vilifying them, disrespecting them, doing everything possible to lower their status. When someone is taking away the fruits of your labor and using you as their whipping boy the only way to assert your human dignity is to walk away.

Will small business "Going Galt" be Obama's downfall?

As I read about the unemployment numbers going up, now to 9.8%, I can't help but wonder if small businesses will be the catalyst that brings down this administration. The commenters to a blog post at Don Surber's Daily Mail blog seem to be on the right track in understanding why small businesses are not hiring:

Commenter Sean says:

Businesses aren’t hiring because no one knows what in the hell our economic system is going to look like 5 years, or even 5 months, from now.

Will “Cap and Trade” get implemented as the Democrats hope?

How much of an upheaval will “Healthcare Reform” end up being?

Is the administration and Congress done overhauling regulation of the Financial Industry?

No prudent investor is going to bet their money (i.e., invest in growth) when it is conceivable that the government is going to radically alter how 50% of this nation’s economy functions.

Commenter RJGatorEsq. responds to Sean:

Sean is absolutely correct. I am an employer. I know a lot of other small business owners. I, and they, are just about unanimous: “I need some help, but I am not going to hire until I see what Obama is planning to do to us.”

Another commenter responds:

Sean is spot-on, but misses the potential for union mischief with the passage of EFCA. How many entrepreneurs are going to pour their money and effort into starting or expanding companies when a handful of union thugs can show up, bully their way into organizing your firm and then you have to spend two years with an Obama Labor Dept. telling you how much you have to pay your employees?

And finally, another says:

Exactly. Add to that Obama and the Congressional Democrats treating capitalism and every successful business like criminal enterprises to be plundered and you have a manufactured crisis.

Many business owners I have talked with say they are scaling back and not hiring because of the uncertainty of this political climate. Even if the economy recovers, many small business owners will stay on the sidelines because it may be too expensive for them to do otherwise. It's a capital strike as described in Amity Shlaes' excellent book, The Forgotten Man.


For example, a man who owns a painting business recently told me that his workers comp costs just went up making each employee more expensive. He is unsure how much worse it will get in the future. The result to this uncertainty? Fewer workers will be hired. The current administration's hostility towards small business may be their downfall. And as small business provides most of new jobs in the US, it should be. For how long will the citizens of this country stand for roughly 10% or higher unemployment?

Who's Afraid of John Galt?

Do you ever wonder what some writers are smoking when they try to interpret what you say in a blog post? Today, Glenn received a copy of Mother Jones magazine at his office with a note attached that there was an article he might be interested in. The article, entitled, "And the Rand Played On" was about "Right-wingers heading for the hills" by "going Galt." Unfortunately, it does not seem to be on the web, at least I couldn't find it at their site.

Anyway, the article begins by talking about me and states that I am a blogger for the "conservative Pajamas Media network" --newsflash to the author Amy Benfer: I am a blogger on blogspot, not at Pajamas Media-- but why get bogged down with too many facts? Benfer goes on to say that I liked what Joe the Plumber had to say and this "semi-employed, blue-collar media darling" reminded me of John Galt, and this is how I came up with with the "Going Galt theme." Huh? I don't remember doing this--if you can deduce how Joe the Plumber reminded me of John Galt from my "Going Galt" post, let me know.

Most of the article focuses on attempts to discount or insult anyone disagreeing with the author's worldview. I am seen as "confused," Right-wingers are "heading for the hills" and stars such as Angelina Jolie and Brad Pitt who dare read Ayn Rand's books are "Celebrity fans of the cult of selfishness."

But I have to say that I like it that Mother Jones is so intimidated by the "Going Galt" theme that they have dedicated three pages at Mother Jones to it and seem quite put out that Rand's book Atlas Shrugged is flying off the shelves to the tune of 200,000 copies in four months. If I can tie up that much lefty attention with so little effort on my part, I'm doing pretty well!

Older workers 'going Galt' by retiring early?

It seems that many older workers are retiring early rather than staying on the job (thanks br549):

Reporting from Washington-- Instead of seeing older workers staying on the job longer as the economy has worsened, the Social Security system is reporting a major surge in early retirement claims that could have implications for the financial security of millions of baby boomers.

Since the current federal fiscal year began Oct. 1, claims have been running 25% ahead of last year, compared with the 15% increase that had been projected as the post-World War II generation reaches eligibility for early retirement, according to Stephen C. Goss, chief actuary for the Social Security Administration....

The ramifications of the trend are profound for the new retirees, their families, the government and other social institutions that may be called upon to help support them.

Though the article points out that early retirement has its drawbacks (naturally, the concern is for women--who may have to learn to live on less if hubby gets lower benefits) my guess is that anyone close to early retirement figures it's now or never, given the possibility that Social Security benefits will be cut down or dry up in the near future.

Also, instead of paying income tax from their job, these older workers will now be sucking off the government tit (though to be fair, many put in more money than they will ever get back). It's even better than going Galt, it's becoming a moocher instead of a producer. Now that producers are punished and moochers rewarded, I can see the appeal.

Starve the Beast

The Galt Effect on Uncle Sam:

There are a thousand reasons why Federal receipts are down, but the one that is most interesting is the attitude towards government effect. Our attitude about how our government is doing can be good or bad, depending on how we side on the issues. If we feel that government is doing a good job, we’re more likely to prepare our tax returns and calculate our withholding based on an optimistic outcome (taking fewer risks). The reverse is also true: when we believe that the government is doing a bad job or mishandling our tax dollars, we will take riskier deductions on our tax return, as well as calculate our withholding in such a way as to prepare for a bad financial year (to hold back as much cash as possible), or with the intent to starve/punish the beast.

"Going Galt" continues...

Tom Blumer at PJM: Tax receipts plummet as Americans "go Galt:"

But then in mid to late June, along came the POR (Pelosi-Obama-Reid) economy. The Democratic triumvirate’s intent to starve the nation of energy, regardless of the consequences, and newly minted presidential nominee Barack Obama’s designs on punitively taxing 5% of the nation’s most productive in the name of redistributing money to everyone else, both became crystal clear. As a result, paraphrasing what I wrote at the time, businesses, investors, and entrepreneurs responded to the trio’s total lack of seriousness by battening down the hatches and preparing for the worst.

Yes, lower tax receipts might be a result of the economy but they are just as much psychological. No one knows what to expect from this administration. Why invest and risk growing a buisiness if much of it might be taxed or regulated away?

New blog with a Galt theme

I just read at Michelle Malkin's place about a new blog called Galtslist.com that is definitely worth a read. I like the idea for a protest sign for tomorrow's Tax Day Tea Parties. Take a look. But if you carry one, make sure to watch out for the Department of Homeland Security --they might just be looking for you.

Tea parties, "going Galt" and Atlas Shrugged

The Atlas Society has an interesting post on "going Galt":

“Tea parties.” “Going Galt.” You’ve probably seen a growing number of references to these in the media, online, and on signs at rallies reacting to new government spending and controls.

The Boston Tea Party was a rebellion against excessive government. Today’s “tea parties” say “no” to spending without limit and the government takeover of our lives.

“Going Galt!” If you’ve read Ayn Rand’s Atlas Shrugged,you appreciate the parallels between today’s disintegrating world and the events depicted in that prophetic novel. Atlas Shrugged is the story ofhow productive people went on strike, withdrawing their services in protest against a society that damned them for being productive and expropriated the fruits of their labor.

The ideas in Atlas Shrugged can be powerful moral weapons to roll back the forces of repression and irrationality. The Atlas Society is your premier source for information on those ideas. We’ve compiled this page to help you understand the whole “Going Galt” phenomenon.

What is “Going Galt?”

* “Going Galt” doesn’t simply mean getting angry. That would be “Going Postal.” It means having righteous indignation at the injustice of a political system that bails out individuals and institutions for irresponsible behavior and at the expense of those like you who prosper through hard work and personal responsibly.

* “Going Galt” means asking in the face of new taxes and government controls, “Why work at all?” “For whom am I working?” “Am I a slave?”

Read the rest here.

And don't forget that tomorrow is the big Tea Party day. Join one in your area. Glenn and I will be at the Knoxville event covering it for PJTV.

Stuart Schneiderman on "going John Galt."

PJTV: Atlas Shrugged continued

PJTV interviews the executive director, Yaron Brook, of the Ayn Rand Institute about Atlas Shrugged, Rand's philosophy and how it pertains to the current crisis, and "going John Galt."

You can watch the interview here.

Blogger Don Surber asks, "Ok, what if doctors decide to go John Galt?" in a post today. He is referring to doctors in Britain who are being forced to cut their hours. This is not the same as "going Galt" where people do it purposely to reduce the tax burden, of course, but it should give us an example of what is to come should doctors and other professionals decide to "go Galt."

I have talked with people who say that some emergency room doctors are thinking of reducing their hours should taxes be raised and deductions reduced. One remarked, "Let some other sucker out there take over." I even heard one doctor looking forward to nationalized healthcare so he could work less. We should look to Britain to see how well a reduction of doctor's hours will go over for their health care system. Not well, I expect.

"Greedy bastard" or selfish?

Colbert talked about "going John Galt" on his show last night (about three minutes in). Naturally he makes fun of it, and does not seem to understand it from either a moral perspective, or as a form of protest. However, at least it is getting some attention. And as threatened as left-leaning types seem to be by the term, it must really strike a chord. It strikes me as odd that if you work and make money, you're a selfish bastard and if you stop working hard and making money, you're a selfish bastard. Which is it?

PJTV: "Going Galt" around the country

Today, econoblogger Megan McArdle from the Atlantic comes on to discuss "going John Galt," Atlas Shrugged, and why the Obama administration needs to be humble in their approach to the economic crisis. I then talk with some citizens from around the country--from Virginia, Ohio, and California--about their "Going Galt" experiences. Find out what others are doing and hear their suggestions and feelings on the bailouts, tax increases and more (currently free with no registration required).

You can watch here.

Looking for John Galt

We need guests for an upcoming show on PJTV on "going John Galt." I will be interviewing those of you who going John Galt in some way that you could talk about, cutting back your business, starting a vegetable garden, or some creative way (that is legal, of course). If you want to be interviewed, email JohnGalt@PJTV.com

"Going Galt" continued...

Michelle Malkin has a thought- provoking article at Townhall up today entitled, "Going Galt: America's Wealth Producers vs. Wealth Redistributors:"

Enough. Last Friday, thousands of Americans turned out to protest reckless government spending in the pork-laden stimulus package, the earmark-clogged budget bill, the massive mortgage-entitlement program and taxpayer-funded corporate rescues. Contrary to false left-wing blog smears that the hastily planned impromptu events were "Astro-turfed," the crowds were packed with first-time grassroots activists. They were people with families and day jobs whose usual definition of "community organizing" involves neighborhood yard sales or their kids' soccer matches. They were members of the silent majority who decided to be silent no more.

"Going Galt" isn't just about reducing taxable income, it is about getting involved politically. Many people are now carrying signs saying "Atlas will Shrug" or making references to John Galt. A small group can become a movement....