I do not understand US politics

 This is Joseph

Americans are a mystery. Consider this cunning plan to primary senators:

West Virginia Sen. Joe Manchin and Arizona Sen. Kyrsten Sinema — who aren’t up for reelection until 2024 — are the first Democrats on their target list, the left-wing strategists shared first with POLITICO. Chakrabarti and Trent are also former aides to Ocasio-Cortez.

Manchin and Sinema’s opposition to eliminating the legislative filibuster — which requires a 60-vote threshold for most legislation — is the main reason No Excuses is putting a call out for possible challengers. Progressives have increasingly pressed Senate Democrats and President Joe Biden to end the filibuster, arguing that in an evenly divided Senate it will be nearly impossible to find enough Republicans to pass major pieces of Biden’s agenda.

“The only real way to pressure any of these folks and hold them accountable to their promises is to threaten their power, and threaten the seat that they hold and threaten their reelection,” said Chakrabarti, who is also a former chief-of-staff to Ocasio-Cortez. “We sort of have this theory that the voters in Arizona and the voters in West Virginia would care more about action, they care more about jobs and their community and money in their pockets than they do about an arcane Senate rule called the filibuster.”

In an email to supporters Tuesday, the PAC will say, “Help us find the next AOC to replace Manchin and Sinema.” 

Like how is this supposed to work? Consider West Virginia where the only major statewide office held by a Democrat is held by Joe Manchin. It is 15 points more Republican than the nation as a whole. The election is not for another 4 years so primary threats ring rather hollow at the moment. 

Now let us compare to Alexandria Ocasio-Cortez's district: NY 14 went 72-27 for Biden in 2020. This was the same margin as Alexandria Ocasio-Cortez herself had. West Virginia went 69-30 for Trump (see the huge imbalance in the opposite direction). In 2018 it was Machin 49.6% to Morrisey 46.3%.

In other words, Joe Manchin massively outperforms the generic Democrat vote in WV. If you primary him with a strong progressive, that is the sort of person who will struggle to not be annihilated in the actual election. How does majority leader McConnell help matters at all? 

As an outsider, if you want to strengthen the progressive wing of the party then the place to go is the safe seats. For example, Diane Feinstein could be replaced by a much further left senator without running any serious risk of losing a California senate seat. Kamala Harris was viable in California and in no serious danger of being picked off. That makes sense as a primary target if shifting the senate to the left is the goal. 

But if you put in progressives in places they can't win (e.g., deep red states) then you risk replacing Joe Machin with somebody like Rand Paul or Josh Hawley. Do you think such a senator would break ranks with their party over the filibuster? Or that there would still be 50 votes if you picked off (selectively) the right wing democrats? 

Arizona is more complicated, as it has the potential to be a swing state and I am less willing to comment on that case, except to say that Kyrsten Sinema's filibuster position is currently moot unless Joe Manchin changes his mind. I don't know what benefit there is in forcing a senator to make a tough vote that could hurt them politically unless it actually has the potential to be decisive.

Edit: Mark points me to this post

All the little guys... you know... Fidelity, Vanguard, BlackRock

 The LA Times indispensable Michael Hiltzik points out yet another flaw in the popular David and Goliath take on the Gamestop story.

You say you want a revolution? 

What’s most amusing about the GameStop story, in a sad way, is the notion among small investors that they’re striking a revolutionary blow against the Wall Street establishment. 

“My goal isn’t to get rich on this, my goal is to bankrupt these billionaires,” says John Motter, an unemployed Angeleno who invested more than he received from the government’s coronavirus stimulus check in GameStop, as my colleagues Daniel Miller, Suhauna Hussain and Hugo Martìn reported. “I would buy magic beans on the street from a stranger if he said they had the potential to ruin a billionaire’s life.... A lot of people are really angry, and no one’s forgotten 2008.”

In fact, many on Wall Street are enjoying the ride, even as proxies for small investors. As of last March, the three biggest investors in GameStop were the investment management firms Fidelity, Vanguard and BlackRock, which combined owned more than 50% of the shares.

BlackRock reported that as of Dec. 31 it still owned 9 million shares, which means that over the last month the firm and its clients added about $2.1 billion to the value of their holdings (on paper).

It's like a David and Goliath story where David slays Goliath then Goliath falls on David crushing him to death

Or maybe David dies from friendly fire. I'll admit that I don't have all of the details of the analogy worked out but than neither have most journalists covering the story and that hasn't slowed them down.

One place where they do have a grasp of  the complexities is Marketplace. In particular, the weekly wrap does a good job taking apart the standard narrative. (You're probably already familiar with the excellent Catherine Rampell, but Linette Lopez is another journalist you should be following, especially if you like to annoy Elon Musk)

 

Please make it stop

This is Joseph

From the Washington Post:

Meanwhile, the inexorable arithmetic of dollars times demography has taken us past the point of no return. It’s no longer possible to say that, by starting now, we can avert massive, and massively unfair, changes in the promises we have made, or that current beneficiaries have nothing to worry about. That line was crossed even before the emergency budget blowout of 2020 added trillions to the debt tab we will dump on younger generations.

 Honestly, how do we even address this one? First, national debt includes investment (like purchasing a house) and debt used to increase investment can actually improve the long term fiscal outlook of the nation. Second, there is not a shortage of resources to pay for social security. Before you call this an question of all of the programs, note this piece:

A start on mitigation would be for the Social Security Administration to begin including in beneficiary bulletins a disclosure that, starting soon, the system cannot fulfill all of its commitments. The disclosure could then provide sample calculations of the amount of savings a given recipient will need to replace those expected payments under alternative scenarios.

This is not a "Medicare only" concern. But are we really, as a nation, incapable of generating enough wealth to pay social security benefits? By 2035 (somewhat of a demographic local peak), these benefits are projected to rise from 5% of GDP to 6.1% of GDP. But there is room for large tax cuts apparently, such as TCJA. Note that we could cover this entire gap by (for example) raising taxes to the levels of France or Germany. 

This is not to say that there are not risks in budget deficits. But these risks are just as real for tax cuts as they are for entitlement expenses. Similarly, the idea that you should never increase taxes is bonkers, but rather that this needs to be balanced. You could find the difference by dropping military spending to UK levels, for example, and still have revenue to spare. Or follow Matt Yglesias on the road to One Billion Americans, and drop the cost as a % of a much larger GDP. 

There are lots of decisions that can be made. Why are the retirement security programs always the first things on the chopping block? Because it looks like a declaration of values rather than a financial necessity. 

Be very wary of the standard Gamestop narrative

 We'll be coming back to the hopelessly wrong-headed short-seller take (when your arguments come from Elon Musk...), but you should also take a hard look at the "little guys beat the big boys at their own game" headlines. This spike certainly did screw over a multibillion dollar hedge fund, but that doesn't mean that the small retail investors are on the whole going to come out ahead on this. If this is a once and future $5 stock, it's safe to say that a lot of RobinHood traders will not (did not?) time the peak.

 Putting aside the complicated options discussion for a later time, we have reason to  believe that for every individual investor who bought at $20 and sold at $200, there are a few who jumped in after the stock had gone up 1,000%. 2021 is not likely to go well for the latter group.

 

Battlespeech pic.twitter.com/kiMV70O9qR

— Looposhi (@22loops) January 19, 2021

 

As always, for a smart take on a muddled story I recommend Hiltzik.

If I had waited three years, I would have had much better examples

 The big difference that jumps out at me comparing the view now and then is that in 2017 I felt compelled to make the case that the delusional fringe was big enough to threaten the GOP.

 

Tuesday, August 15, 2017

The GOP needs the crazies more than the crazies need the GOP.

The following is not really a voting paradox, but it is kind of in the neighborhood. You have three stockholders for a company. A holds 48% of the shares, B holds 49%, and C holds 3%. Assuming that any decision needs to be approved by people holding a majority, who has the most power? The slightly counterintuitive answer is no one. Each shareholder is equal since an alliance of any two will produce a majority.

Now let's generalize the idea somewhat. Let's say you have N shareholders whom you have brought together to form a majority. Some of the members of your alliance have a large number of shares, some have very few, but even the one with the smallest stake has enough that if he or she drops out, you will be below 50%. In this scenario, every member of the alliance has equal veto power.

I apologize for the really, really basic fun-with-math explanation, but this principle has become increasingly fundamental in 21st-century politics. At the risk of oversimplifying, elections come down to my number of supporters times my turnout percentage versus your number supporters times your turnout percentage. Arguably the fundamental piece of the conservative movement has been to focus on ways to maximize Republican turnout while suppressing democratic turnout. (Yes, I'm leaving a lot out but bear with me.)

There are at least a couple of obvious inherent dangers in this approach. The first is that there is an upper bound for turnout percentage. This is especially worrisome when the number of your supporters is decreasing. Sen. Lindsey Graham was alluding to this when he observed that they weren't making enough new old white men to keep the GOP strategy going.

There is, however, another danger which can potentially be even worse. When you need nearly 100% of your supporters to show up to the polls in order to win, you create a situation where virtually every faction of your base has veto power. One somewhat perverse advantage of the large base/low turnout model is that groups of supporters can be interchangeable. You have lots of situations where you can alienate a small segment but more than make up for it elsewhere. In and of itself, this allows for a great deal of flexibility, but the really important part is the power dynamic. You have to represent a large constituency in order to wield veto power.

Probably since 2008 and certainly since 2012, pretty much every nontrivial faction of the GOP has held veto power which means the question is no longer who has it, but who is willing to use it. The Tea Party was the first to realize this. Now the alt-right has caught on to the dynamic as well.

Even with increasingly aggressive and shameless voter suppression techniques, Republicans tend to get fewer votes. It is true that they have, through smart strategy and tactics, managed to get an extraordinary number of offices out of those votes, but it is a precarious situation. We can debate how many people really believe in shadowy Jewish banker conspiracies or Martian slave labor camps, but it is almost certainly a large enough group to sway some close elections if the crazies collectively decided to go home or, worse yet, opt for a third party.

Ed Kilgore (whom I follow and generally respect) had a badly ill-informed post Trump Should Emulate Buckley and Tell Racists: ‘I Don’t Want Your Vote.’ That simply won't work for Trump or the GOP. They need the crazies more than the crazies need them.

 

Smullyan's vampires and and insane humans might come in handy

Particularly at a time when identifying the truly crazy has become a high priority.

For those not familiar with the late, great mathematician-philosopher-magician's work...

Inspector Craig Visits TransylvaniaInspector Craig of Scotland Yard was called to Transylvania to solve some cases of vampirism. Arriving there, he found the country inhabited both by vampires and humans. Vampires always lie and humans always tell the truth. However, half the inhabitants, both human and vampire, are insane and totally deluded in their beliefs: all true propositions they believe false, and all false propositions they believe true. The other half of the inhabitants are completely sane: all true statements they know to be true, and all false statements they know to be false. Thus sane humans and insane vampires make only true statements; insane humans and sane vampires make only false statements. Inspector Craig met two sisters, Lucy and Minna. He knew that one was a vampire and one was a human, but knew nothing about the sanity of either. Here is the investigation: Craig (to Lucy): Tell me about yourselves. Lucy: We are both insane. Craig (to Minna): Is that true? Minna: Of course not! From this, Craig was able to prove which of the sisters was the vampire. Which one was it?— From Logician Raymond Smullyan

This may not be the perfect bitcoin story, but it's pretty damned close

This sort of thing happens more often than you'd expect... unless you've kept up with the crypto world, in which case this sort of thing happens exactly as often as you'd expect.

 From CNN:

 A British man who accidentally threw a hard drive loaded with bitcoin into the trash has offered the local authority where he lives more than $70 million if it allows him to excavate a landfill site.

IT worker James Howells got rid of the drive, which held a digital store of 7,500 bitcoins, between June and August in 2013. He had originally mined the virtual currency four years earlier when it was of little value. 

But when the cryptocurrency shot up in value and he went in search of it, he discovered that he had mistakenly thrown the hard drive out with the trash.  

Now, with his lost bitcoin having soared even further, Howells has approached Newport City Council in Wales to ask for permission to dig a specific section of the landfill site where he believes the hard drive ended up. 

...

"The value of the hard drive is over £200m (around $273 million) and I'm happy to share a portion of that with the people of Newport should I be given the opportunity to search for it. Approximately 50% would be for investors who put up the capital to fund the project, and I would be left with the remaining 25%," he added.

Of course the city, realizing the vanishingly small likelihood of finding and retrieving data from a hard drive thrown away almost seven years ago, has chosen not to approve this, but hope is not yet lost for Howells. Fortunately for him, the kind of people who would invest millions in a bitcoin scheme seldom have a really strong grasp of the concept of expected value.

"So it would appear that, in August of the election year, we have a political party not so subtly suggesting that its nominee should drop out."

I had forgotten about this bit of wishful thinking from the GOP almost five years ago.

 

Thursday, August 4, 2016

"On any other day, that might seem strange"

[I didn't realize it until I started doing the background reading, but the parts about the Collegiate Network fit nicely with the origins-of-conservative-media-in-the-seventies thread that started yesterday and will continue when I get around to commenting on this.]

If, like me, you're spending way too much time on political news lately, you certainly heard about this report from ABC's Jonathan Karl:

Republican officials are exploring how to handle a scenario that would be unthinkable in a normal election year: What would happen if the party's presidential nominee dropped out?

ABC News has learned that senior party officials are so frustrated — and confused — by Donald Trump's erratic behavior that they are exploring how to replace him on the ballot if he drops out.

As the reliable Josh Marshall has pointed out, there is no direct evidence from the Trump camp that the candidate has any thoughts of dropping out. These rumors look something like trial balloons, albeit an odd one, since the event in question is unlikely and, more to the point, the people floating the balloon have no say in whether it happens.

Rather than speculate on the intent of the message (hint, empty threat, groundwork for intervention, blowing off steam -- I'm kidding about that last one), I think it's more interesting to think about the path this and other stories take to get to our news feeds. In situations like this, the source of the rumors is often more telling than the content. In this case, that would be Karl, and that is remarkably informative.

Karl is not just a conservative journalist, he is a carefully cultivated product of a decades-long, highly successful conservative movement media initiative.

The Collegiate Network (CN) is a non-profit tax-exempt 501(c)(3) organization that provides financial and technical assistance to student editors and writers of roughly 100 independent, conservative and libertarian publications at leading colleges and universities around the United States. The CN estimates that member publications have a combined annual distribution of more than two million[citation needed]. Since 1995, the CN has been administered by the Intercollegiate Studies Institute (ISI), headquartered in Wilmington, Delaware

...

In 1979, the Institute For Educational Affairs (IEA) responded to the request of two University of Chicago students for start-up funding for a new conservative newspaper, Counterpoint. By 1980, the grant program had been expanded and named the Collegiate Network, and by 1983, under the continuing administration of the IEA, had added both internships and persistent operating grants for conservative campus newspapers. In 1990, the Madison Center for Educational Affairs merged with the IEA to maintain funding for what had expanded to 57 conservative student publications. The Intercollegiate Studies Institute took over operations in 1995 and has since administered the CN from Wilmington, Delaware.

Take a look at a few of his fellow alumni: Matthew Continetti, Ann Coulter, Dinesh D'Souza, Laura Ingraham, Rich Lowry, John Podhoretz, Ramesh Ponnuru, and Peter Thiel.


Here's a characteristically blunt take on the relationship from Charles Pierce back in 2013:

Long ago, Congresswoman Marcy Kaptur of Ohio once told me that she thought my craft went bad when it became the province almost exclusively of the over-educated, that it had professionalized itself out of its traditional role, that she wished there were a few more people practicing journalism who'd first worked on a loading dock, or in a mine, the way people used to come to the job. Here, with Karl, we apparently have a perfect product of the well-financed and staggeringly successful network of conservative institutions and programs launched more than 40 years ago by The Powell Memo. Assuming the FAIR report is accurate, then Jonathan Karl was not trained as a journalist, because the Collegiate Network doesn't produce journalists. It produces partisan warriors. He was not trained as a reporter, because the Collegiate Network doesn't produce reporters. It produces propagandists. He was not trained as a newsman, because the Collegiate Network doesn't produce newsmen. It produces hacks.

This is, of course, indelicate for someone in my business to say but, at every level of his steady rise in the business, some executive should have looked at Karl's resume, seen The Collegiate Network there, and then shitcanned the thing before the interview process even began. Are there conservatives who are good reporters? Absolutely. But all the ones that I know came up the same way I did, and none of them came up through the coddled terrariums of the activist Right. They learned their craft. They were not trained to be spies in the camp of the enemy. They were not trained to be moles. And every damn one of them would have checked those phony e-mails before throwing them out to the public, and most of them wouldn't have fallen for them, because they are journalists, reporters, and newsmen. They are not partisan warriors, propagandists, or hacks. If Jonathan Karl doesn't like being called a hack, then he should stop being a hack. Here's one way to do it.

Like many successful journalists including Woodward and Bernstein, Karl's career is largely based on his close relationship with a network of well-placed contacts. In this case, the contacts are overwhelmingly in the Republican Party and the conservative movement. At the risk of putting too fine a point on it, when Jonathan Karl breaks the story, it is usually something that the leadership of the GOP would like to get out there.

So it would appear that, in August of the election year, we have a political party not so subtly suggesting that its nominee should drop out. Even if nothing comes of it, that is an extraordinary development.

But these  are strange times.

 

Back in 2013, we suggested that the Conservative Movement was losing control of its disinformation machine and the result threatened the GOP...

I'm trying not to be too dickish about this but, yes, there is a degree of "we told you so" in these reposts. It's satisfying to go back and see that most or your old arguments (some of which very much ran counter to conventional wisdom) have held up over the years. There is, however, a more important point. One of the ways we check the quality of our hypotheses and narratives is to see how well they age. If you keep telling variations on the same story for eight or ten years and it continues to be reasonable and relevant, perhaps there's something to it.

 From Journalistic Decline and GOP Dysfunction

On the right wing media side, journalists traded off their normal role as providers of feedback in order to be more effective motivators. This is perhaps most obvious with Ailes and Fox News where the goal (after turning a profit) was clearly to shape (and in some cases, falsify) the facts in such a way as to keep the base loyal and energized. In the short term, the strategy worked well but it always had inherent risks, risks that have finally started doing serious damage.

You can read this partly as a cautionary tale of Straussianism gone awry. The first, the most fundamental assumption of any society based on the noble lie is that you have a hierarchy with well-defined classes of the liars and the lied-to and that all major decisions are made by people in the first class.

Here's an analogy: officers have been known to paint overly rosy pictures for soldiers ("Things are going great on the Western front." "The enemy's factories are in ruins." "Victory is near."). We can argue over the ethics of this kind of lying, but it's easy to see why some officers might do it.

Now imagine that through a combination of field promotions, broken lines of communication and general confusion,  strategic and tactical decisions start being made by people who actually believe all of the misinformation that was fed to the ranks. I'm no military historian but I'm fairly sure this would probably end badly.

We had a pretty clear example of this kind of a breakdown in the Romney team's analysis of poll data in the last days of the election. There was clear value for Romney in having his supporters believe that he was ahead but that value was more than negated by having his advisers believe the same misinformation. You can see similar dysfunction in the recent shutdown where many congressmen made what now appear to be disastrous decisions based apparently sincere belief in such Fox News talking point as "people won't get that upset about a shutdown."

Put more broadly, the processes that allow the right version of the truth to get to the right people – something that has been an integral part of the Republican strategy – has seemingly broken down entirely.

In addition to the largely random flow of misinformation, conservative media created an unforeseen problem in the rank and file with narrative momentum. When most members of a group get much of their information from outside, there's a natural friction on in-group narratives when members realize that their version is not shared by the general public. Conservative media is immersive to an unprecedented degree. Narratives like "the only time Republicans lose is when they become too moderate" are allowed to build unchecked.

On a related note, the immersive quality also greatly facilitates social norming. This greatly encourages extreme positions and widens the gap when members of the group try to communicate with outsiders.

It would have been wrong somehow if the Trump administration hadn't seen a Bitcoin resurgence

Fortunately,  the Financial Times has been doing its usual first-rate job poking at the bubble. Here Jemima Kelly explains how meaningless the standard Bitcoin narrative is. The whole piece is highly recommended as is the HODL link and Trolly's blog.

The first problem is that bitcoin is not of course a company — nor even, we would argue, an asset — so working out its “market cap” is a non-starter. As some of you might remember, it was originally designed to be a currency that could be used to buy actual things! And although it fails to meet all the criteria that would make it a currency, it does have one thing in common with it: its price is underpinned by sheer faith. The difference being that with fiat currencies, that faith is effectively placed in the governments of the nation states who issue them, whereas for bitcoin, the faith is placed in . . . the hope that other people will keep having the faith. A faith in faith, if you will.
...

Another problem is that although 18.6m bitcoins have indeed been mined, far fewer can actually be said to be “in circulation” in any meaningful way.

For a start, it is estimated that about 20 per cent of bitcoins have been lost in various ways, never to be recovered. Then there are the so-called “whales” that hold most of the bitcoin, whose dominance of the market has risen in recent months. The top 2.8 per cent of bitcoin addresses now control 95 per cent of the supply (including many that haven’t moved any bitcoin for the past half-decade), and more than 63 per cent of the bitcoin supply hasn’t been moved for the past year, according to recent estimates.

What all this means is that real liquidity — the actual available supply of bitcoin — is very low indeed. That’s quite obvious even without knowing the stats above from the price moves — you don’t see smooth ups and downs like you might expect in other markets where the demand is coming from real supply-and-demand dynamics rather than speculation, but sudden lurches upwards and cliff-like drops.

So the idea that you can get out of your bitcoin position at any time and the market will stay intact is frankly a nonsense. And that’s why the bitcoin religion’s “HODL” mantra is so important to be upheld, of course.

Because if people start to sell, bad things might happen! And they sometimes do. The excellent crypto critic Trolly McTrollface (not his real name, if you’re curious) pointed out on Twitter that on Saturday a sale of just 150 bitcoin resulted in a 10 per cent drop in the price. As Trolly said to us over the phone:

If you can destroy the market like that in the space of seven or eight minutes, that shows there is no liquidity and no depth — nobody is there to take the other side of the trade when things start moving. You have these extreme moves because everyone is on the same side.

More than 2,000 wallets contain over 1,000 bitcoin in them. What would happen to the price if just one of those tried to unload their coins on to the market at once? It wouldn’t be pretty, we would wager.
 
    What we call the “bitcoin price” is in fact only the price of the very small number of bitcoins that wash around the retail market, and doesn’t represent the price that 18.6m bitcoins would actually be worth, even if they were all actually available.

So the “market cap” is in this way nonsense multiplied. You times two things together that don’t reflect what they claim to — the “circulating supply” and the “price” — and voilà!
 

For some reason, this feels like the real end of 2020

So here's some music for a belated New Year's Day. 

 

Real World Evidence and the covid-19 vaccine

This is Joseph

Israel is currently the world leader in giving vaccines for covid-19 with > 2 million first doses and only 400,000 second doses. They are also in the midst of a surge of cases, among those with a single shot. Now some of this can be attributed to people taking risks before the vaccine has time to kick in and build antibodies. But it shows the challenges of estimating the actual outcome of policies like "First Doses First" without trial evidence. 

Now this approach may yet be vindicated -- it is too early in the Israeli experiment to draw firm conclusions and the popular press account lacks a great deal of information other than that the country is setting case records. We may find out that things end up better than it currently looks once the analysis allows tighter sequencing between vaccine timeline and incident infections. 

But I think that this just emphasizes how important it is to get a wide rollout of the full vaccine protocol in the most expedient manner possible. 

Vaccination is the ultimate stimulus

One of the great strengths of Marketplace's Kai Ryssdal is his insistence on making sure listeners never have a chance to forget fundamental context. He opens or closes segments with reminders that the the markets are not the economy and that China doesn't pay the tariffs, we do.

Marketplace has also consistently pointed out that the economy can't recover in the middle of a deadly pandemic. The corollary being that the best way to help the economy is to speed up distribution of the mRNA vaccines and, perhaps more importantly, fast track the approval for AstraZeneca.

But it could be hard to sustain that optimism in the short term, said economist Robert Frick at Navy Federal Credit Union.

“If retail spending doesn’t climb back, if companies aren’t really investing because so many people have COVID, we can’t ignore how tough the next few months are going to be,” Frick said.

He predicts that six months from now, by midsummer, enough people will have been vaccinated that spending will pick up again. More people will be making restaurant reservations, going out to shop and buying airline tickets.

But, “a lot of people are assuming it’s going to be like a light switch,” Frick said. “Given the troubles with vaccine rollout and the number of people who don’t want to get vaccinated, there’s a light at the end of the tunnel, which is herd immunity. That’s going to take probably not until some time next year.”

Harvard economist Jason Furman said the economy is gonna have a lot of fuel to burn.

“People will have money. They actually had higher incomes after taxes and transfers in 2020 than normal, [and] they had lower spending,” Furman said. “So there will be about $2 trillion of dry powder — of excess saving — to spend.” 

Furman said there will be two big problems, though: A lot of long-term unemployed people will be out of savings altogether, and a lot of businesses will have closed their doors for good.

Martin Luther King’s Acceptance Speech, on the occasion of the award of the Nobel Peace Prize in Oslo, December 10, 1964

Your Majesty, Your Royal Highness, Mr. President, Excellencies, Ladies and Gentlemen:

I accept the Nobel Prize for Peace at a moment when 22 million Negroes of the United States of America are engaged in a creative battle to end the long night of racial injustice. I accept this award on behalf of a civil rights movement which is moving with determination and a majestic scorn for risk and danger to establish a reign of freedom and a rule of justice. I am mindful that only yesterday in Birmingham, Alabama, our children, crying out for brotherhood, were answered with fire hoses, snarling dogs and even death. I am mindful that only yesterday in Philadelphia, Mississippi, young people seeking to secure the right to vote were brutalized and murdered. And only yesterday more than 40 houses of worship in the State of Mississippi alone were bombed or burned because they offered a sanctuary to those who would not accept segregation. I am mindful that debilitating and grinding poverty afflicts my people and chains them to the lowest rung of the economic ladder.

Therefore, I must ask why this prize is awarded to a movement which is beleaguered and committed to unrelenting struggle; to a movement which has not won the very peace and brotherhood which is the essence of the Nobel Prize.

Sooner or later all the people of the world will have to discover a way to live together in peace …

After contemplation, I conclude that this award which I receive on behalf of that movement is a profound recognition that nonviolence is the answer to the crucial political and moral question of our time – the need for man to overcome oppression and violence without resorting to violence and oppression. Civilization and violence are antithetical concepts. Negroes of the United States, following the people of India, have demonstrated that nonviolence is not sterile passivity, but a powerful moral force which makes for social transformation. Sooner or later all the people of the world will have to discover a way to live together in peace, and thereby transform this pending cosmic elegy into a creative psalm of brotherhood. If this is to be achieved, man must evolve for all human conflict a method which rejects revenge, aggression and retaliation. The foundation of such a method is love.

The tortuous road which has led from Montgomery, Alabama to Oslo bears witness to this truth. This is a road over which millions of Negroes are travelling to find a new sense of dignity. This same road has opened for all Americans a new era of progress and hope. It has led to a new Civil Rights Bill, and it will, I am convinced, be widened and lengthened into a super highway of justice as Negro and white men in increasing numbers create alliances to overcome their common problems.

I accept this award today with an abiding faith in America and an audacious faith in the future of mankind. I refuse to accept despair as the final response to the ambiguities of history. I refuse to accept the idea that the “isness” of man’s present nature makes him morally incapable of reaching up for the eternal “oughtness” that forever confronts him. I refuse to accept the idea that man is mere flotsom and jetsom in the river of life, unable to influence the unfolding events which surround him. I refuse to accept the view that mankind is so tragically bound to the starless midnight of racism and war that the bright daybreak of peace and brotherhood can never become a reality.

I refuse to accept the cynical notion that nation after nation must spiral down a militaristic stairway into the hell of thermonuclear destruction. I believe that unarmed truth and unconditional love will have the final word in reality. This is why right temporarily defeated is stronger than evil triumphant. I believe that even amid today’s mortar bursts and whining bullets, there is still hope for a brighter tomorrow. I believe that wounded justice, lying prostrate on the blood-flowing streets of our nations, can be lifted from this dust of shame to reign supreme among the children of men. I have the audacity to believe that peoples everywhere can have three meals a day for their bodies, education and culture for their minds, and dignity, equality and freedom for their spirits. I believe that what self-centered men have torn down men other-centered can build up. I still believe that one day mankind will bow before the altars of God and be crowned triumphant over war and bloodshed, and nonviolent redemptive good will proclaim the rule of the land. “And the lion and the lamb shall lie down together and every man shall sit under his own vine and fig tree and none shall be afraid.” I still believe that We Shall overcome!

This faith can give us courage to face the uncertainties of the future. It will give our tired feet new strength as we continue our forward stride toward the city of freedom. When our days become dreary with low-hovering clouds and our nights become darker than a thousand midnights, we will know that we are living in the creative turmoil of a genuine civilization struggling to be born.

Today I come to Oslo as a trustee, inspired and with renewed dedication to humanity. I accept this prize on behalf of all men who love peace and brotherhood. I say I come as a trustee, for in the depths of my heart I am aware that this prize is much more than an honor to me personally.

Every time I take a flight, I am always mindful of the many people who make a successful journey possible – the known pilots and the unknown ground crew.

So you honor the dedicated pilots of our struggle who have sat at the controls as the freedom movement soared into orbit. You honor, once again, Chief Lutuli of South Africa, whose struggles with and for his people, are still met with the most brutal expression of man’s inhumanity to man. You honor the ground crew without whose labor and sacrifices the jet flights to freedom could never have left the earth. Most of these people will never make the headline and their names will not appear in Who’s Who. Yet when years have rolled past and when the blazing light of truth is focused on this marvellous age in which we live – men and women will know and children will be taught that we have a finer land, a better people, a more noble civilization – because these humble children of God were willing to suffer for righteousness’ sake.

… peace is more precious than diamonds or silver or gold.

I think Alfred Nobel would know what I mean when I say that I accept this award in the spirit of a curator of some precious heirloom which he holds in trust for its true owners – all those to whom beauty is truth and truth beauty – and in whose eyes the beauty of genuine brotherhood and peace is more precious than diamonds or silver or gold.