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(Mises)—Several months ago, I was on a long car trip with my dad, and we listened to a podcast that gave some commentary on the following headlines from the New York Times and the Wall Street Journal: “AI Poses ‘Risk of Extinction,’ Industry Leaders Warn” and “AI Poses ‘Risk of Extinction’ on Par with Pandemics and Nuclear War, Tech Executives Warn.”
Obviously, this was in the wake of new AI technologies like ChatGPT and others. This is also not a new issue. In 2017, the Wall Street Journal also published “Protecting Against AI’s Existential Threat.” Of course, AI has been impressively more developed recently, bringing the usual reactions—assumptions that this technology will totally change everything, amused interest, reasonable concerns (e.g., students cheating), and the typical hand-wringing.
All this was in response to a recent statement from the Center for AI Safety, who posted an open letter with the following warning: “Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.” As these claims were made, even by creators of the technologies, I had a sneaking suspicion that I already knew what these AI companies wanted: cronyism. Not long after that, my suspicions were confirmed by the inevitable call for that one, vague, seemingly magical word that everybody seems to demand in situations like these. That word is “regulation.”
Arguing a similar point soon after the announcement of this “existential threat,” another writer from the Wall Street Journal perceptively wrote an article titled, “AI is the Technocratic Elite’s New Excuse for a Power Grab.” That said, while there is certainly a penchant for the technocratic elite to form and expand bureaucracies in order to regulate, it is worth mentioning that very often these very companies are themselves the biggest proponents of government regulation of their industries.
Why would private firms ever want cumbersome government regulation? The answer is cronyism. Cronyism, crony capitalism, “crapitalism,” corporatism, managed capitalism, a “mixed” economy, or fascism are different titles for the same concept. Whatever the designation, it is a public-private partnership that employs the powers of the state to grant special legal privilege to non-State entities for their mutual benefit at the expense of the consumer/taxpayer.
Private businesses and government are often not enemies but very comfortable friends. More than that, their working together is always in the name of protecting the consumer/taxpayer. Depending on their ideology, people might see themselves teaming up with business against the government or teaming up with government against business, but they rarely recognize that there is a third option—government and business teaming up against the consumer/taxpayer.
By inviting “regulation,” private firms can use the legal apparatus of the government to limit competition, raise barriers to entry for competitors, restrict output for higher prices, and shift the costs of “health and safety” standards to the taxpayers. These are options that businesses and industries would never have save an alliance with the state. The taxpayers will pay the government, via bureaucratic agencies, to inspect and maintain certain standards for businesses, which removes the costs of these standards from the business, subsidizes their operations, and places them on the taxpayer. Oddly enough, this regulative bureaucratic apparatus can simultaneously be burdensome by hampering the productive aspects of a business, assistive in providing for costs to businesses and industries that they would otherwise have to bear, and incompetent in the goal of protecting consumers.
A costly regulatory burden for competitors, an attempt to capture the market, movement toward monopolization, the government as enforcer, and getting the consumer/taxpayer to pay for bureaucracies to write more regulations and inspect standards: What business wouldn’t at least be tempted?
Cronyism has a long history. In fact, monopoly used to mean exclusive legal grants of government privilege to certain companies, not arbitrary standards like firm size, number of firms, or market share. Cronyism has also had a long history in the United States, especially since the Progressive era (ca. 1890–1920). We are often told that the Progressive era involved the government intervening to stop monopoly when the truth is precisely the opposite—the government intervened with a new bureaucratic technocracy, usually at the request of private firms, to stifle competition and impose monopoly.
This took place in all sorts of areas, such as meatpacking, insurance, textiles, money and banking, etc. It turned out, according to G. Edward Griffin, that use of the word “reform” would be enough: “The American people are suckers for the word ‘reform.’ You just put that into any corrupt piece of legislation, call it ‘reform’ and people say ‘Oh, I’m all for “reform,”’ and so they vote for it or accept it.”
Furthermore, while the tendency in America was toward competition, this was unacceptable to many businesses who invited and embraced new “regulations” and “reforms.” Writes historian Gabriel Kolko, “Ironically, contrary to the consensus of historians, it was not the existence of monopoly that caused the federal government to intervene in the economy, but the lack of it.” The simple solution was, “Monopoly could be put over in the name of opposition to monopoly!” The same word was used, but the content could be the opposite. Government, itself a monopoly, was to monopolize industries because, if it didn’t, monopolies might result!Many vaguely call for “regulation” because they may not know what else to ask for whenever they see a problem, but often businesses call for it to use the governmental apparatus to their benefit at the expense of the consumer/taxpayer.
As the new and growing AI industry develops, it should be no surprise that they want “regulation.” It is probably not that they really believe that the AI technology they produce is a literal threat to human existence, but that, by leaning into the scaremongering and the statist non sequitur, they can form a cozy relationship with the government first and legally limit competition to their benefit. The American people are suckers for “reform.”
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
