Friday, September 25, 2015

Freedom-Based Arbitration

This is my standard ...

Freedom-Based Arbitration
1.      Arbitration shall enforce the law of this agreement to effectuate its purposes,  and
2.      Shall decide the issues by the application of the Law of Equal Liberty (each has the right to do with his/her own what he/she wishes so long as he/she does not forcible interfere with the equal right of another.) 
3.      The American Arbitration or its equivalent entity shall be used for any dispute and their decision absolutely final and binding on all parties of any such action. 
4.      Any such arbitration shall take place in the city of physical residence, WESTCLIFFE, Co.(optional… or where action initiated?) and
5.      The Arbitrator decides the venue for any further action. 
6.      Finally, only the two parties of any such action are allowed to work with the Arbitrator. 
7.      Any arbitration will be between the two (or three) injured parties and the Arbitrator and only they may partake or be present in any meeting, representing parties to the action.
8.      Involved parties can attend meeting via Skype or other web-based audio/visual software; e.g. Zoom.
9.      The arbitrator’s decision is final.

Monday, May 19, 2014

Finding Freedom during Power-Madness at White house using NSA

Disturbing, but just another revelation on NSA spying and who took control of it, the White house. Question is who took control of the white house? It is not Obama or previously bush who is pulling the strings.

My daughter is graduating this week-end. Her world is the generation that will be leading the Turning into the darkest winter for some time, four generations. i will participate, but living in the high mountains, i will survive a bit longer than city dwellers.  Dig in folks, dig in.

And this too, shall pass, but not until there is a 4th Turning, a dark winter:(See Note after article)

“We have the power. We don’t need them.” And he made clear that the power he was referring to was the commander-in-chief’s chief’s wartime authority. (And that we do not need to protect or automatically encrypted information about Americans, as they did before at the No Such Agency!)

Read article below to remind yourself, "Power corrupts and absolute..."

 

NSA Spying Is a Power Grab

  •   The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Infowars.com Twitter Alex Jones' Facebook Infowars store

Washington’s Blog
May 19, 2014

Top security experts – including the highest-level government officials and the top university experts – say that mass surveillance actually increases terrorism and hurts security.

Image: NSA (Wiki Commons).

They say that our government failed to stop the Boston bombing because they were too busy spying onmillions of innocent Americans instead of focusing on actual bad guys.

Moreover, high-level NSA executive Bill Binney – who created the agency’s mass surveillance program for digital information – made it easy for the NSA to catch bad guys without spying on innocent Americans … all while strengthening America against security breaches.

(Binney is a 32-year NSA veteran widely regarded as a “legend” within the agency.  Binney was the senior technical director within the agency and managed thousands of NSA employees.  Binney has been interviewed by virtually all of the mainstream media, including CBSABCCNNNew York TimesUSA TodayFox NewsPBS and many others.)

Binney’s system automatically encrypted information about Americans … but that information could be decrypted if a judge ordered that a specific American was a bad guy or was connected with a bad guy.

But after 9/11, the NSA instead switched to the current system which conducts mass surveillance on all Americans.  Specifically, the system rolled out by the NSA after 9/11 used Binney’s system … butstripped out all of the encryption which would have protected Americans’ privacy absent a court order.

Why Did They Do It?

Why did the NSA switch from the privacy-protecting system which worked to catch terrorists to one that spied on all Americans in violation of their constitutional rights?

A very high-level congressional committee security staffer – Diane Roark – gave a hint on a Frontline show this month. Roark was the congressional staffer in charge of overseeing the NSA for the Republicans on the House Intelligence Committee.

Roark explains:

NARRATOR: [Senior House Intelligence Committee staff between 1985-2002 Diane] Roark was summoned to the top deck at the NSA to meet with Director Hayden.

DIANE ROARK: My whole point in going there was to ask him why he had taken off the protections, the encryptions and the automated tracking. I asked this any number of times, and he always evaded answering. And I finally just decided I was not going to leave the room until I got an answer. And so I kept asking.

So about the fifth time, he looked down, and I remember he could not look me in the eye, and he said, “We have the power. We don’t need them.” And he made clear that the power he was referring to was the commander-in-chief’s chief’s wartime authority.

In other words, the Constitution was tossed out the window and all Americans have been subjected to Orwellian surveillance ever since – not because it’s necessary or even efficient – but simply because they decided that they had the raw power to do so.

Washington’s Blog asked senior NSA veteran Bill Binney why he thought NSA switched from an automatic privacy-protecting encryption program to its current dragnet.

Binney told us:

When you drop the privacy protections, you are able to spy on all your political opponents and do the things that the IRS does plus get rid of people you don’t want in government, like General Petraeus and General Allen and others like Elliot Spitzer, etc.

Further, you can target Supreme Court Judges,  other judges, Senators, Representatives, law firms and lawyers, and just anybody you don’t like … reporters included.

It also meant they did not have to go to the FISC [Foreign Intelligence Surveillance Court] to get a warrant to look into US citizens.

Washington’s Blog is not sure if NSA had a direct hand in the firing of CIA director General Petraeus, General Allen, or Elliot Spitzer. But spying may have played a part.

Spitzer – the tough New York Attorney General who went after corrupt bankers more than anyone since – was snared through the Patriot Act. Former CIA director General Petraeus was brought down whenthe government spied on his email communications. Binney has previously said that Petraeus seems to have gotten on the government’s “enemies list”, and was thus spied on … and drummed out as CIA director. General Allen was also relieved of his position when his emails were leaked.

Binney has also said that “We are now in a police state“, because the government is “laundering” data generated by mass surveillance, to go after people that – for whatever reason – the government doesn’t like. This is especially concerning because it is clear that mass surveillance is being used more to crush dissent than to stop terrorism. (And that’s been true for 500 years. And see this).

Another high-level NSA whistleblower – Russel Tice – says that the NSA is spying on – and blackmailing – top government officials and military officers, including Supreme Court Justices, high-ranked generals, Colin Powell and other State Department personnel, and many other top officials. And see this:

 He says the NSA started spying on President Obama when he was a candidate for Senate

~~~XXX~~~

Note from this article:

Authors William Strauss and Neil Howe document these cycles in their 1997 book The Fourth Turning. The book reminds us that the old adage “There is nothing new under the sun” is truly rooted in fact. The issues that we are facing today – with new faces and slightly different angles – are the same realities that our ancestors dealt with during their times of crisis.

“History is seasonal,” write Strauss and Howe, “…and winter is coming.” “Like nature’s winter, the saecular winter can come early or late. A Fourth Turning can be long and difficult, brief but severe, or (perhaps) mild. But, like winter, it cannot be averted. It must come in its turn.”

As a society we are sensing the coming winter and (hopefully) preparing accordingly, just as past generations did at their time of crisis. Government is certainly preparing for massive upheaval just in time for the arrival of the Fourth Turning.

What is a turning?

As Strauss and Howe point out, history is made up of highs and lows. During a high, government and institutions are built up while values are established and commonly held. Another generation is born and these institutions are questioned and undermined. Then, an “unraveling” era unfolds. As Strauss and Howe write, “Both the demand and supply of social order are falling. This is the autumnal quadrant of the saeculum, when vines luxuriate, fruit spoils, leaves fall, and the respect for life’s fundamentals reappears.”

A saeculum – which is divided into four “seasons”, culminating in a crisis  – is the average length of a long human life, after which there is a societal “reset”. A Fourth Turning happens when issues that have been boiling without resolution for years explode. “Subliminal fears… become urgent” heading into the Fourth Turning.

“Political and economic trust will implode. Real hardship will beset the land, with severe distress that could involve questions of class, race, nation and empire. The very survival of the nation will feel at stake. Sometime before the year 2025, America will pass through a great gate in history, commensurate with the American Revolution, Civil War, and twin emergencies of the Great Depression and World War II.”

4th turnings can happen in more than one nation at a time. As the world has become extremely connected and globalized, most of the world may enter into a 4th turning cycle at the same time, exacerbating its impact on everyone. During these turnings, an entrenched elite fight tooth and nail to remain in power.

Individual choices will alter the outcome

As Strauss and Howe point out, the outcome of this season of radical change and potential destruction is up to us. This generation, just as America’s founders did, will provide the heroes and legends for the next. Your actions and choices during this time will alter the outcome of this historical time period and set the cultural agenda for the next cycle. Your contribution can be as simple as making changes in your personal life and aligning yourself with right principles and truth. It may be as big as speaking out on important issues and spreading ideas for change. Karl Rove once said of the elite, “We’re history’s actors… and you, all of you, will be left to just study what we do.” The truth is that we the people influence history. We are the individuals who either accept or reject the elite’s designs for our future.

This article was posted: Monday, May 19, 2014 at 5:39 am

 

--   Freedom always, Family and friends before all  Noël  Guiding Principles:  o  Do harm to no one  o  Take from none his own  o  Gold is coined freedom  o  'Right to Carry' puts teeth in freedom & liberty  It's time for a little civil disobedience against illegal laws & those who promote them:  Liberty Begins Locally!!!!  0 Walk on the grass                                  0 Buy unregistered firearms   0 Buy produce from local farmers          0 Watch for "agent provocateurs"     with cash  0 Practice liberty until it becomes          0 Smoke some grass     a habit  0 Paint-ball red light cameras!                0 Practice jury nullification  0 Barter, trade, buy second-hand          0 Stop voting in national elections     to avoid state. liquor      & income taxes  0 Vote locally for less government,       0 Pay cash, stop using credit cards     less taxes, less regulation  0 Practice self help health                       0 Don't get vaccinated! Take Vitamin D3!                       Visit my blog http://wulirider.blogspot.com/  Learn about Liberty & Power, and finding liberty in today's world, especially in these most interesting times. Or here for something 'new' http://excitingnewdirections.blogspot.com  Try this: http://libertypreservationcustercounty.wordpress.com/ ;  http://fortwestcliffe.wordpress.com/2011/02/25/this-fortress-built-by-nature-for-herself-westcliffe-facing-coming-hard-times/      Interested in freedom & Liberty?  http://www.isil.org/resources/philosophy-of-liberty-index.html

Sunday, May 11, 2014

Freedom First, Private property always or we lose all to the globalist tomorrow...


A meme dominated today in most of the world. It is a false idea, a myth that allows a small elite to convince and control the masses. It is a mind-game that has worked, still works, but is failing at the margins.

The inverse of this prevailing meme is unfolding, growing among the youth and leading to a revolution.

the prevailing meme is the Hobbesian idea that...

The antithetical opposite meme is unfolding: prosperity comes from individual freedom, peace from trade and security from self responsible defense.

Prosperity comes from living in peace and being secure, as individuals, not provided by  armed government agents.  Individuals should be armed to protect themselves, their families, their communities and their personal property.

(My newest blog,living Free one community at a time
for more information on creating liberty for yourself and your community or county.)
This is the opposite of what exists around the world today:  government provided peace & security  via might-is-right or based on false homo sapien sapiens assumptions, chaotically fighting and killing each other without a 3rd party to keep order...

but individuals living self responsible lives.

Those seeking elite control over people advocated Thomas Hobbes philosophy, that man who revert to chaos without a 3rd party to prevent it: government became the agent for insuring peace via security, justice via the courts and law enforcement.  These became the assumed minimum government roles that have grown and become the engine behind warring and taking freedoms away for security.

I will present the case, some personal experiences, and reference several libertarian writers who have written extensively on Peace and Security issues and make the case with clarity.  I include several links and three Appendices of articles relevant to the topic. I hope you find value in what is written here and in the excellent materials found at the links and in the appendices.

Thomas Hobbes was wrong, individuals do not need a 3rd party, the State, to provide this.  We can do it ourselves. But the state assumed this position and voila, we have State wars, tyranny and aggression all for the peace and security of its people.

Bah; humbug...

True and lasting Prosperity comes from living in peace and being secure. This means individual prosperity, individual peace and individual security. This comes from being master of your own body, mind and emotions.  This means having the natural, God-given right to live your life, use your body and mind, and any natural resources found and turned into value for self or others.  The right to life, liberty and property means the right to defend others from taking it from you.

This essay presents some ideas, principles and concepts that deflate and destroy the commonly held myth that the state can provide peace or security.  I watched the Mal-application of this since the false flag of 911 and the take-over of America by dangerous war mongering ideologues.  I saw what the EU and the Africa Union are doing with these ideas to destroy any individuality or hopes of prosperity within any of the member states, assuming the global view of Africa was the only way to avoid Hobbesian chaos, based on the EU's promotion of said-same model.

Knowing that any encroachment on private property of self or one's work or earnings, via regulation, taxation or decree is and remains wrong; wrong in an ethical sense and definitely wrong in a moral sense, if you believe as I do that all creation comes via the individual and not groups; that individuals bring life energy to the world, not group's or democracies legislating morality like Brussels or the AU in Addis Ababa, Ethiopia. Talk about an enigma wrapped in a mystery, (misquoting Churchill on Russia);  The interventionist operating through the AU, a fortress with walls in the middle of Addis, with heavy security to get in, TSA searches into key buildings. elevator passes to get from one floor to another.  All this in a country that ranks near the bottom for freedom and prosperity, run by a long series of tyrannical rulers, government controlled everything including telecommunications.  A country where the dictates of the president are so feared that a mandate spoken in the morning by him is heard by the afternoon in every village and town causing fear and loathing among the peasants.

It was the possibility of working there for 1-2 years, where it struck me that this was anathema to my own beliefs.  This possibility cut to the quick my self awareness of should I continue to support full time an agency that promotes ideas that just are not viable in my world view? I decided I would not work there full time, but only as a short term consultant, where I could provide services and share my ideas without falling under their hierarchy of control over my actions.

I hope to offer enough ideas for the reader to better understand that any global solutions are a fallacy, that all forms of group think are illusions of those who seek to plunder you and your friends, assuming they know what is best for you and the world. Whether Climate change or peace or security, the fallacy remains the same, i know best for others; my views shall be implemented with the barrel of a gun for your own good.

I am reminded of the dominant economic taught around the world, based on the work of Keynes.  His approach presents government via the Hobbesian view, as necessary for an orderly world. But as Simon Black writes (Appendix III), " Taking that a step further and presuming that a government committee can centrally plan an entire economy or financial system is just ludicrous. But it doesn't stop people from trying."  He goes on to say,

"John Maynard Keynes is one of the most famous economists in history; decades ago he wrote THE economic playbook still used by governments and central banks around the world today.  His writings include such pearls of wisdom as:

  • "earthquakes, even wars... serve to increase wealth. . . "
  • "Can a country spend its way into recovery? Yes."
  • "State-run capitalism must be run by the right people." Precisely. And everyone else is just supposed to trust them to be good guys.
Keynes was a staunch advocate of 'state-run capitalism', an oxymoron rivaled only by "almost pregnant" and "fight for peace".

I have seen this in the USA, EU and AU.  The latter, trying to make Africa for Africans, but using a globalist or interventionist model to control and dominate all Africans, and via Peace and security work at the AU "fight for peace".

This is truly ludicrous, an oxymoron, a twisted logic that has become the myth of endless borrowings of funds from EU and other partners, literally bankrupting Africa in time, giving total resource base to foreigners over time.  There is another model, self determination, the focus of this essay.  However, as far as foreign aid, the Chinese have chosen a more reasonable model, providing the funds for rights to buy the resources from Africa, first.  A bit more humane, more of a voluntary deal found in capitalism.

Richard Ebling in article (Appendix II) captures the difference today between the free market model and that of the prevaiing 'intervention' model of most countries and economic unions like the EU or AU or any of the international organizations like the UN, World bank, Etc. First I reference his eight free market points and then will list his eight interventionist points

Quoting, Ebeling, "Here are eight points that define a genuine free-market economy, or what Mises referred to as the "unhampered economy":
  1. All means of production are privately owned.
  2. The use of the means of production is under the control of private owners who may be individuals or corporate entities.
  3. Consumer demands direct how the means of production – land, labor and capital – will be used.
  4. Competitive forces of supply and demand determine the price for consumer goods and the various factors of production including labor.
  5. The success or failure of individual and corporate enterprises is determined by the profits or losses these enterprises earn, based on their greater or lesser ability to satisfy consumer demands in competition with their rivals in the marketplace.
  6. The market is not confined to domestic transactions and includes freedom of international trade, investment and movement of people.
  7. The monetary system is based on a market-determined commodity (e.g., gold or silver), and the banking system is private and competitive, neither controlled nor regulated by government.
  8. Government is limited in its activities to the enforcement and protection of individual life, liberty and honestly acquired property.
 Now, quoting him again,Defining the Interventionist Economy:

"Unfortunately, many modern politicians and academics who say they endorse free-market capitalism are willing to tolerate a great deal of government intervention.
"When it comes to identifying the role of government in their conception of the market order, many if not most "conservative" economists still assume that government must be responsible for a social safety net that includes Social Security, some form of government-provided health care and unemployment compensation; must have discretionary monetary and fiscal powers to support supposed desired levels of employment and output; must regulate industry to assure "competitive" conditions in the market and "fair" labor conditions for workers; and must directly supply certain goods and services that the market allegedly does not provide.
Indeed, many people who claim to be "on the right" believe that government should institute some or all of these "public policies." It should be appreciated, however, that the very notion of "public policy," as the term is almost always used, supports government intervention in the market in ways that are simply inconsistent with a genuine free-market economy.
Interventionism as public policy is not consistent with the free market since it intentionally prevents or modifies the outcomes of the market. Here are the eight points of the interventionist economy:
  1. The private ownership of the means of production is either restricted or abridged by government.
  2. The full use of the means of production by private owners is prohibited, limited, or regulated by government.
  3. The users of the means of production are prevented from being guided by consumer demand through a network of government regulations, controls, prohibitions and restrictions.
  4. Government influences or controls the formation of prices for consumer goods and/or the factors of production, through such interventions as price supports, subsidies, or minimum wage laws.
  5. Government reduces the impact of market supply and demand on the success or failure of various enterprises while increasing the impact of its own influence and control through such artificial means as price and production regulations, limits on freedom of entry into segments of the market and direct or indirect subsidies.
  6. Free entry into the domestic market by potential foreign rivals is discouraged or outlawed through import prohibitions, quotas, domestic content requirements, or tariffs, as well as capital controls, and restrictions on freedom of movement.
  7. The monetary system is regulated by government for the purpose of influencing what is used as money, the value of money and the rate at which the quantity of money is increased or decreased. And all these are used as tools for trying to affect the levels of employment, output and growth in the economy.
  8. Government's role is not limited to the protection of life, liberty and property.
After this extensive quoting of Ebeling, I try and return to the idea that peace and security are an example of an economic good that is a failing of government and reflects the mal investment in such a public view or good and would best be done via the private sector, as part of the natural order.

Richarh Maybury of the Early Warning Report (Search for this on web) and author of a series of books explaining libertarian ideas, his Uncle Eric series, says that the world, since the creation of the state sees the world as either must be run by tyrants or chaos so why not stick with the tyrant versus total chaos?!  He points out that the America experiment, the American Revolution for self determination, an idea that spread rapidly around the world, was the birth of the THIRD alternative, FREEDOM. The idea was born that the alternatives were tyranny , chaos or freedom.  And it is the idea of self determination, the individual against the POWERS-that-be, the ursurpers of your work and monies, the plunders, that would change the world forever and open the door to a true new way.

Like the Guttenburg press changed the world forever, the Internet has opened the door again and the youth of the world are clamoring for freedom from government with an exponential glee and resolve that can and will change the world.  tyranny, like getting obese, feeds on its own failings, and seeks to dominate and control until the individuals are dying, unable to feed the beast any more, but the beast seeks more.
  
This some what disjointed essay is based on the works of several libertarians, but especially Hans-Hermann Hoppe; in particular his book of essays, "The Myth of National Security: Essays on the theory and history of Security Production."

It is available on-line via mises.org and is a must read to fully grasp the alternative to the Hobbesian view held by all Western cultures, Europe in general and the world at large, that man is savage and needs a 3rd party to keep them from killing one another.  Given this view, especially underlying the creation of the State as THAT entity in the late middle ages, has resulted in the perpetuation of  the myth of the value of the state.  this idea includes an economic fallacy too, that any monopoly can do other than provide less quality and quantity of a given good, in this case security and its higher order peace, at a higher cost!  that is than if competition is allowed.

This reality, the failings of the state to provide any economic good, including security or even justice is  so clearly evident but ignored by the statist.  As stated later in detail and in appendix II, governments killed 120 million in the 20th century alone, non-combatants.  the myth is exploded with this figure alone, as the beast of government is revealed as it wages war on others, its own people and makes them pay ever higher taxes and live ever less free from the regulations that slowly turn them into serfs and slaves over time by any definition used. 

So, yes, Freedom First, Private property always or we lose all to the globalist (or Interventionist) tomorrow...

Freedom and liberty are words used to capture the idea of individual sovereignty.  History is written by the victors and that has meant the conquerors of a place or people.  They have presented their overload status as special and have become demigods, via self defined gods, kings and queens.

I have traveled the world doing development work for over thirty years.  I have seen the prevalence of development banking and funding being used to gain control over people and lands, via government loans that rarely are repaid, but do give sovereignty over to the bankers or as Joseph P. farrell says, Banksters.  this is a blending of banking and gangsters, a more apt description of what is going on today.  (See his writings and many books on this and related topics)

I leave that thought and want to move on to the idea that without a full understanding of private property, over self, your body and mind, we will lose our humanity.  A respected and clear writer on this is Hans-Hermann Hoppe whose writings make this self evident, this article is a classic for understanding this topic, entitled "The Ethics and Economics of Private Property" is a must read. (Or see Appendix I below)

That said, I question my own history of working with development banks like the World Bank, even USAID.  Each of these groups are really the front line agencies that promote the anti-private property or collectivist view as the preferred model for controlling human kind by an multi layers elite.

Like an Economic Hit Man role as written by ???  I have served the beast and now understand that too well.  My singular hope is that my continued work with such groups will allow me to increasingly espouse the failings of their model and the value of free-market, not interventionism, less government and less regulation and taxation.  Mind you, it is a horrendous task, a laviatnian of pro-government modeling as can be seen in the ever multiplying models like the regional groups seeking to oversee their geographic areas, like the Africa Union.  Each of these are politically driven and without much if any merit-based work, seeking to collectively solve issues versus promote sovereignty of the individual or the country.

I mention but one area of concern; Peace and Security as a major pillar for the AU.  Their model is the interventionist model, assuming that peace and security comes from the UN model of disarming the people, and arming only the armies of the government and larger collective groups of government armies.  Sadly, this leads to move insecurity and more non peace, as so clearly shown in the writings of Hoppe referenced above.

May I take the time, have the talent to frame my thoughts and words to develop this argument based on Austrian economics, the works of Mises, Rothbard and hoppe, each a disciple of the former and who together has literally formulated the depth behind what I would like to cover.

As Richard Maybury said, most of the world only knows Tyranny or chaos; whereas the America Revolution and history brought to light the value of individual liberty and freedom or the THIRD choice FREEDOM.  The Internet has provided the channel and means for anyone, anywhere to research and learn that their is now available freedom as a choice not just tyranny and chaos.

Anyone researching on the web can now learn that prosperity is higher among countries moving toward less government and less taxation than those moving toward more regulation and taxation. Anyone can learn that governments that tax more are ever more intrusive into your lives and see you as cattle or human resources to be robbed and used to take from and give your hard earned money to special interests. fight wars or live the high life.

having recently traveled to Africa, I was surprised by the number of soldiers with weapons and the level of security at various locations, mini TSA-type security at entrances, then again at each building.  And then realize that no one can have personal protection!  It is so sad to see the right to be armed and take responsibility for oneself is negated and treated as a crime, but the soldier or police is ever more intrusive and bullying in behavior and demanding you behave.

As discussed by  Richard Ebeling in article below, the EU impact and take-over in political modeling and using collectivism, we-know-better-than-you what is good for you, they instill, enforce and make sure only the 'government' has guns, not the people.  They state that having control over you and your right to self defense, will lead to peace and security.  That tribal wars and culture differences do not matter and can be mitigated by giving to the government, those in power, the use of force and coercion and strife  and warring will end.

It never has and can not.  For the one with the gun will use it to destroy those in disfavor, wrong color, ethnic group or whatever.  It is the way of power and those in power since forever. How many times has a government disarmed a populace, a group usually for 'their own well being' and then turned around and performed genocide for some reason or the other?  Eight times I can recall, list available if just search Internet.

Any libertarian who studies power and freedom, studies the history of power, discovers what makes prosperity work, private property.  But government under the guise of interventionism, communism and socialism and even fascism having failed time and again, having killed hundreds of millions of non combatants in the 20th century alone, is an abysmal failure of political philosophy.  So, now those seeking to plunder---and that is what governments do, plunder---use interventionism to run people's lives and life off taxes on the people, regulating them from birth to death. 

Hoppe writes about this.  One principle he points out is that any monopoly  leads to lower quantity. less quality and higher cost regardless of the situation, regardless of the culture, whether in private or public delivery of the service.  Secondly, that competition lead to the opposite, lower cost, greater availability  and higher quality.  Once you realize this, you must ask, WHY would anyone give the right to protect people to a single group, government? It has always and forever lead to oppression of the people, mass killings and all in the name of its for the betterment of all.  Boulder dash...

The American revolution and Switzerland are the sterling examples of leaving private property of body, mind and soul, plus any productive use of any resource in the hands of the individual.  This means leaving trade alone, leaving it free to be done as a voluntary action between two individuals.  that they remain in control of their own defense, and, only as an organized local militia or Action Group, stand ready to work together in emergencies for the community, against aggression, foreign or domestic and as the home land defense model that works!

An armed  society is a polite society.  Security is self responsible behavior, not the policeman down the street.  He is a political lacky for a politician, not for you.  Your safety in a dark alley is not walking in dark alleys, but if you do, to be prepared to defend yourself from any aggressor as necessary.  And a 9mm or 45 speaks volumes; someone wants to rob you or rape you?  You are the only one that can make that moment be the first one for a self determined future versus a victim to tyranny and a crazy seeking to take what is your, your life, your possessions even your sanity in an act of violence.

Each country where I have been and now around the USA, the SWAT team, bullying police have become the norm, especially where the people are without weapons for self protection.  I find it strange, bu true that most democrats, most politically liberal or progressive people like being victims, like depending on the police if attacked or homes broken into;  strange, then the system can report the crime, the rape, the death caused, the robbery of your goods.

History of all collectivist of 20th century shows 120 million NON-military deaths from armed governments.  That is, arm the government and the deaths go up.

Arm the people and deaths go down.

I urge you to read Mises.org; lewrockwell.com; read the works of Austrian School and learn how prosperity comes from less government, less regulation and less taxation; not more.  But the governments of the world keep pushing the opposite.

Look into not one world order, but nullification and secession, more smaller sovereign communities.  I rather live in a free society, a sovereign community that favors liberty and freedom versus the one next door that favors taxation and regulations.  Give individuals the option to move where and do what they want within a like-minded community versus a single all encompassing one world order or an EU or an AU or whatever group of jurisdiction trying to legislate, regulate and tax you to death. 

Democracy is soft socialism and socialism is collectivism, favoring the elite few to run your life.  Study the history of the American Revolution, the idea of republic and the model of Switzerland.  Study the value of the idea of the power of the PURSE and the SWORD.  The latter, is premised on each individual, each FREE man is self responsible and part of a militia for the sovereign community or city-state to serve as the homeland security for emergencies and invasion, foreign or domestic if government goes awry.

DC has gone awry, taken over by globalist, if not something more sinister.

Attached is an excellent overview of self ownership and then another article on free markets and the interventionist clash...
Sincerely
Wulirider

 Appendix I

Argumentation and Self-Ownership

by Hans-Hermann Hoppe
by Hans-Hermann Hoppe

Recently by Hans-Hermann Hoppe: The Property And Freedom Society — Reflections After Five Years



I will first state this general theory of property as a set of rulings applicable to all goods, with the goal of helping to avoid all possible conflicts by means of uniform principles, and I will then demonstrate how this general theory is implied in the nonaggression principle. According to the nonaggression principle, a person can do with his body whatever he wants as long as he does not thereby aggress against another person's body. Thus, that person could also make use of other scarce means, just as one makes use of one's own body, provided these other things have not already been appropriated by someone else but are still in a natural unowned state.
As soon as scarce resources are visibly appropriated — as soon as somebody "mixes his labor" with them, as John Locke phrased it,[1] and there are objective traces of this — then property (the right of exclusive control), can only be acquired by a contractual transfer of property titles from a previous to a later owner, and any attempt to unilaterally delimit this exclusive control of previous owners or any unsolicited transformation of the physical characteristics of the scarce means in question is, in strict analogy with aggressions against other people's bodies, an unjustifiable action.[2]
The compatibility of this principle with that of nonaggression can be demonstrated by means of an argumentum a contrario. First, it should be noted that if no one had the right to acquire and control anything except his own body (a rule that would pass the formal universalization test), then we would all cease to exist, and the problem of the justification of normative statements simply would not exist. The existence of this problem is only possible because we are alive, and our existence is due to the fact that we do not, indeed cannot, accept a norm outlawing property in other scarce goods next to and in addition to that of one's physical body. Hence, the right to acquire such goods must be assumed to exist.
Now, if this is so, and if one does not have the right to acquire such rights of exclusive control over unused, nature-given things through one's own work (by doing something with things with which no one else has ever done anything before), and if other people have the right to disregard one's ownership claim to things which they did not work on or put to some particular use before, then this is only possible if one can acquire property titles not through labor (i.e., by establishing some objective, intersubjectively controllable link between a particular person and a particular scarce resource), but simply by verbal declaration, by decree.[3]
However, the position of property titles being acquired through declaration is incompatible with the above-justified nonaggression principle regarding bodies. For one thing, if one could indeed appropriate property by decree, this would imply that it would also be possible for one to simply declare another person's body to be one's own. Clearly enough, this would conflict with the ruling of the nonaggression principle, which makes a sharp distinction between one's own body and the body of another person.
Furthermore, this distinction can only be made in such a clear-cut and unambiguous way because for bodies, as for anything else, the separation between "mine and yours" is not based on verbal declarations, but on action. The observation is based on some particular scarce resource that had in fact — for everyone to see and verify because objective indicators for this existed — been made an expression or materialization of one's own will or, as the case may be, of somebody else's will.
More importantly, to say that property could be acquired not through action but through a declaration would involve an obvious practical contradiction, because nobody could say and declare so unless his right of exclusive control over his body as his own instrument of saying anything was in fact already presupposed, in spite of what was actually said.
As I intimated earlier, this defense of private property is essentially also Murray Rothbard's. In spite of his formal allegiance to the natural-rights tradition, Rothbard, in what I consider his most crucial argument in defense of a private-property ethic, not only chooses essentially the same starting point — argumentation — but also gives a justification by means of a priori reasoning almost identical to the one just developed. To prove the point I can do no better than simply quote:
Now, any person participating in any sort of discussion, including one on values, is, by virtue of so participating, alive and affirming life. For if he were really opposed to life, he would have no business continuing to be alive. Hence, the supposed opponent of life is really affirming it in the very process of discussion, and hence the preservation and furtherance of one's life takes on the stature of an incontestable axiom.[4]
So far it has been demonstrated that the right of original appropriation through actions is compatible with and implied by the nonaggression principle as the logically necessary presupposition of argumentation. Indirectly, of course, it has also been demonstrated that any rule specifying different rights cannot be justified. Before entering a more detailed analysis, though, of why it is that any alternative ethic is indefensible, a discussion which should throw some additional light on the importance of some of the stipulations of the libertarian theory of property — a few remarks about what is and what is not implied by classifying these latter norms as justified is in order.
In making this argument, one would not have to claim to have derived an "ought" from an "is." In fact, one can readily subscribe to the almost generally accepted view that the gulf between "ought" and "is" is logically unbridgeable.[5] Rather, classifying the rulings of the libertarian theory of property in this way is a purely cognitive matter. It no more follows from the classification of the libertarian ethic as "fair" or "just" that one ought to act according to it, than it follows from the concept of validity or truth that one should always strive for it.
To say that it is just also does not preclude the possibility of people proposing or even enforcing rules that are incompatible with this principle. As a matter of fact, the situation with respect to norms is very similar to that in other disciplines of scientific inquiry. The fact, for instance, that certain empirical statements are justified or justifiable and others are not does not imply that everybody only defends objective, valid statements.
On the contrary, people can be wrong, even intentionally. But the distinction between objective and subjective, between true and false, does not lose any of its significance because of this. Instead, people who would do so would have to be classified as either uninformed or intentionally lying.
The case is similar with respect to norms. Of course there are people, lots of them, who do not propagate or enforce norms that can be classified as valid according to the meaning of justification I have given above. However, the distinction between justifiable and nonjustifiable norms does not dissolve because of this, just as that between objective and subjective statement does not crumble because of the existence of uninformed or lying people.
Rather, and accordingly, those people who would propagate and enforce such different, invalid norms would again have to be classified as uninformed or dishonest, insofar as one had made it clear to them that their alternative norm proposals or enforcements cannot and never will be justifiable in argumentation.
There would be even more justification for doing so in the moral case than in the empirical one, since the validity of the nonaggression principle and that of the principle of original appropriation through action as its logically necessary corollary must be considered to be even more basic than any kind of valid or true statements. For what is valid or true has to be defined as that upon which everyone — acting according to this principle — can possibly agree. As I have just shown, at least the implicit acceptance of these rules is the necessary prerequisite to being able to be alive and argue at all.
Why is it then that other nonlibertarian property theories fail to be justifiable? First, it should be noted, as will become clear shortly, that all of the practiced alternatives to libertarianism and most of the theoretically proposed nonlibertarian ethics would not even pass the first formal universalization test and would fail for this fact alone!
All these versions contain norms within their framework of legal rules that have the form, "some people do, and some people do not." However, such rules that specify different rights or obligations for different classes of people have no chance of being accepted as fair by every potential participant in an argument for simply formal reasons.
Unless the distinction made between different classes of people happens to be such that it is acceptable to both sides as grounded in the nature of things, such rules would not be acceptable because they would imply that one group is awarded legal privileges at the expense of complementary discriminations against another group. Some people, either those who are allowed to do something or those who are not, would not be able to agree that these were fair rules.[6]
Since most alternative ethical proposals, as practiced or preached, have to rely on the enforcement of rules such as "some people have the obligation to pay taxes, and others have the right to consume them," or "some people know what is good for you and are allowed to help you get these alleged blessings even if you do not want them, but you are not allowed to know what is good for them and help them accordingly," or "some people have the right to determine who has too much of something and who too little, and others have the obligation to accept that," or even more plainly, "the computer industry must pay to subsidize the farmers, the employed for the unemployed, the ones without kids for those with kids," or vice versa. They all can be discarded as serious contenders to the claim of being a valid theory of norms qua property norm, because they all indicate by their very formulation that they are not universalizable.
What is wrong with a nonlibertarian ethic if this is resolved and there is indeed a theory formulated that contains exclusively universalizable norms of the type "nobody is allowed to" or "everybody can"? Even then the validity of such proposals could never hope to be proven — not because of formal reasons but because of their material specifications. Indeed, while the alternatives that can be refuted easily as regards their claim to moral validity on simple formal grounds can at least be practiced, the application of those more sophisticated versions that would pass the universalization test would prove for material reasons to be fatal: even if one tried to, they simply could never be implemented.
There are two related specifications in the libertarian property theory with at least one of which any alternative theory comes into conflict. According to the libertarian ethic, the first such specification is that aggression is defined as an invasion of the physical integrity of other people's property.[7] There are popular attempts to define it as an invasion of the value or psychic integrity of other people's property. Conservatism, for instance, aims at preserving a given distribution of wealth and values and attempts to bring those forces that could change the status quo under control by means of price controls, regulations, and behavioral controls. Clearly, in order to do so, property rights to the value of things must be assumed to be justifiable, and an invasion of values, mutatis mutandis, would have to be classified as unjustifiable aggression.
Not only does conservatism use this idea of property and aggression; redistributive socialism does too. Property rights to values must be assumed to be legitimate when redistributive socialism allows me, for instance, to demand compensation from people whose chances or opportunities negatively affect mine. The same is true when compensation for committing psychological, or "structural violence" is requested.[8] In order to be able to ask for such compensation, what one must have done, namely affect my opportunities, my psychic integrity, or my feeling of what is owed to me, would have to be classified as an aggressive act.
Why is this idea of protecting the value of property unjustifiable? First, while every person, at least in principle, can have full control over whether or not his actions cause the physical characteristics of something to change and hence can also have full control over whether or not those actions are justifiable, control over whether or not one's actions affect the value of somebody else's property does not rest with the acting person but rather with other people and their subjective evaluations. Thus, no one could determine ex ante if his actions would be qualified as justifiable or unjustifiable.
One would first have to interrogate the whole population to make sure that one's planned actions would not change another person's evaluations regarding his own property. Even then, nobody could act until universal agreement was reached on who is supposed to do what with what, and at which point in time.
Clearly, because of all the practical problems involved, everyone would be long dead and nobody could argue any longer, well before agreement could be reached.[9] Even more decisively, this position regarding property and aggression could not even be effectively argued because arguing in favor of any norm implies that there is conflict over the use of some scarce resources; otherwise there would simply be no need for discussion.
However, in order to argue that there is a way out of such conflicts it must be presupposed that actions must be allowed prior to any actual agreement or disagreement because if they were not, one could not even argue so. Yet if one can do this (and, insofar as it exists as an argued intellectual position, the position under scrutiny must assume that one can), then this is only possible because of the existence of objective borders of property — borders which anyone can recognize as such on his own without having to agree first with anyone else with respect to his system of values and evaluations.
Such a value-protecting ethic, too, in spite of what it says, must in fact presuppose the existence of objective property borders rather than of borders determined by subjective evaluations, if only in order to have any surviving persons who can make its moral proposals.
The idea of protecting value instead of physical integrity also fails for a second related reason. Evidently, one's value, for example on the labor or marriage market, can be and indeed is affected by other people's physical integrity or degree of physical integrity. Thus, if one wanted property values to be protected, one would have to allow physical aggression against people.
However, it is only because of the very fact that a person's borders — that is the borders of a person's property in his own body as his domain of exclusive control, which another person is not allowed to cross unless he wishes to become an aggressor — are physical borders (intersubjectively ascertainable, and not just subjectively fancied borders) that everyone can agree on anything independently (and agreement means agreement among independent decision-making units!).
Only because the protected borders of property are objective (i.e., fixed and recognizable as fixed prior to any conventional agreement), can there be argumentation and possibly agreement of and between independent decision-making units. Nobody could argue in favor of a property system defining borders of property in subjective, evaluative terms because simply to be able to say so presupposes that, contrary to what theory says, one must in fact be a physically independent unit saying it.
The situation is no less dire for alternative ethical proposals when one turns to the second essential specification of the rulings of the libertarian theory of property. The basic norms of libertarianism are characterized not only by the fact that property and aggression are defined in physical terms; it is of no less importance that property is defined as private, individualized property, and that the meaning of original appropriation, which evidently implies making a distinction between prior and later, has been specified.
It is with this additional specification as well that alternative, nonlibertarian ethics come into conflict. Instead of recognizing the vital importance of the prior-later distinction in deciding between conflicting property claims, they propose norms which in effect state that priority is irrelevant for making such a decision and that late-comers have as much of a right to ownership as first-comers.
Clearly, this idea is involved when redistributive socialism makes the natural owners of wealth and/or their heirs pay a tax so that the unfortunate late-comers can participate in its consumption. It is also involved when the owner of a natural resource is forced to reduce (or increase) its present exploitation in the interest of posterity. Both times it only makes sense to do what one does when it is assumed that the person accumulating wealth first, or using the natural resource first, has thereby committed an aggression against some late-comers. If they had done nothing wrong, then the late-comers should have no such claim against them.[10]
What is wrong with this idea of dropping the prior-later distinction as morally irrelevant? First, if the late-comers (those who did not do something with some scarce goods), indeed had as much of a right to them as the first-comers (those who did do something with the scarce goods), then nobody would ever be allowed to do anything with anything, as one would have to have all of the late-comers' consent prior to doing what one wanted to do.
Indeed, as posterity would include one's children's children — people who come so late that one could not possibly ask them — to advocate a legal system that does not make use of the prior-later distinction as part of its underlying property theory is simply absurd, because it implies advocating death but must presuppose life to advocate anything.
Neither we, nor our forefathers, nor our progeny could, do, or will survive and say or argue anything if one followed this rule. In order for any person — past, present or future — to argue anything it must be possible to survive now. Nobody can wait and suspend acting until everyone of an indeterminate class of late-comers happens to come around and agree to what one wants to do.
Rather, insofar as a person finds himself alone, he must be able to act, to use, to produce, and to consume goods straightaway, prior to any agreement with people who are simply not around (and perhaps never will be). Insofar as a person finds himself in the company of others and there is conflict over how to use a given scarce resource, he must be able to resolve the problem at a definite point in time with a definite number of people instead of having to wait unspecified periods of time for unspecified numbers of people.
Simply in order to survive, then, which is a prerequisite to arguing in favor or against anything, property rights cannot be conceived of as being timeless and nonspecific regarding the number of people concerned. Rather, they must be thought of as originating through acting at definite points in time for definite acting individuals.[11]
Furthermore, the idea of abandoning the prior-later distinction would simply be incompatible with the nonaggression principle as the practical foundation of argumentation. To argue and possibly agree with someone (if only on the fact that there is disagreement) means to recognize the prior right of exclusive control over one's own body. Otherwise, it would be impossible for anybody to say anything at a definite point in time and for someone else to be able to reply, for neither the first nor the second speaker would be a physically independent decision-making unit anymore at any time.
Eliminating the prior-later distinction, then, is tantamount to eliminating the possibility of arguing and reaching agreement.
However, as one cannot argue that there is no possibility for discussion without the prior control of every person over his own body being recognized and accepted as fair, a late-comer ethic that does not make this distinction could never be agreed upon by anyone. Simply saying that it could be would imply a contradiction, for one's being able to say so would presuppose one's existence for an independent decision-making unit at a definite point in time.
Hence, one is forced to conclude that the libertarian ethic not only can be justified and justified by means of a priori reasoning, but that no alternative ethic can be defended argumentatively.
Notes
[1] John Locke, Two Treatises on Government, ed. Peter Laslett (Cambridge: Cambridge University Press, 1970), esp. vols. II, V.
[2] On the nonaggression principle and the principle of original appropriation see also Rothbard, For A New Liberty, chap. 2; idem, The Ethics of Liberty, chaps. 6—8.
[3] This is the position taken by Jean-Jacques Rousseau, when he asks us to resist attempts to privately appropriate nature-given resources by, for example, fencing them in. He says in his famous dictum; "Beware of listening to this impostor, you are undone if you once forget that the fruits of the earth belong to us all, and the earth itself to nobody" ("Discourse upon the Origin and Foundation of Inequality Among Mankind," in Jean-Jacques Rousseau, The Social Contract and Discourses, ed. G.D.H. Cole [New York: 1950], p. 235). However, to argue so is only possible if it is assumed that property claims can be justified by decree. How else could "all" (even those who never did anything with the resources in question) or "nobody" (not even those who made use of it) own something unless property claims were founded by mere decree?
[4] Rothbard, The Ethics of Liberty, p. 32; on the method of a priori reasoning employed in the above argument see also, idem, Individualism and the Philosophy of the Social Sciences (San Francisco: Cato Institute, 1979); Hans-Hermann Hoppe, Kritik der kausalwissenschaftlichen sozialforschung. Untersuchungen zur Grundlegung von Soziologie und Ökonomie (Opladen: Westdeutscher Verlag 1983); idem, "Is Research Based on Causal Scientific Principles Possible in the Social Sciences? Ratio (1983); supra chap. 7; idem, A Theory of Socialism and Capitalism, chap. 6.
[5] On the problem of deriving "ought" from "is" see W.D. Hudson, ed., The Is-Ought Question (London: Macmillan 1969).
[6] See Rothbard, The Ethics of Liberty, p. 45.
[7] On the importance of the definition of aggression as physical aggression see also Rothbard, ibid., chaps. 8—9; idem, "Law, Property Rights and Air Pollution," Cato Journal (Spring, 1982).
[8] On the idea of structural violence as distinct from physical violence see Dieter Senghass, ed., Imperialismus und strukturelle Gewalt (Frankfurt/M.: Suhrkamp, 1972). The idea of defining aggression as an invasion of property values also underlies both the theories of justice of John Rawls and Robert Nozick, however different these two authors may have appeared to be to many commentators. For how could Rawls think of his so-called difference-principle ("Social and economic inequalities are to be arranged so that they are reasonably expected to be to everyone's — including the least advantaged ones — advantage or benefit," John Rawls, A Theory of Justice [Cambridge, Mass.: Harvard University Press 1971], pp. 60—83, 75ff.), as justified unless he believes that simply by increasing his relative wealth a more fortunate person commits an aggression, and a less fortunate one then has a valid claim against the more fortunate person only because the former's relative position in terms of value has deteriorated?! And how could Robert Nozick claim it to be justified for a "dominant protection agency" to outlaw competitors, regardless of what their actions would have been like? (Robert Nozick, Anarchy, State, and Utopia [New York: Basic Books, 1974], pp. 55f.) Or how could he believe it to be morally correct to outlaw so-called nonproductive exchanges, i.e., exchanges where one party would be better off if the other one did not exist at all or at least had nothing to do with it (as, for instance, in the case of a blackmailee and a blackmailer), regardless of whether or not such an exchange involved physical invasion of any kind (ibid., pp. 83—86) unless he thought that the right to have the integrity of one's property values (rather than its physical integrity) preserved existed? For a devastating critique of Nozick's theory in particular see Rothbard, The Ethics of Liberty, chap. 29; on the fallacious use of the indifference curve analysis, employed both by Rawls and Nozick, idem, Toward a Reconstruction of Utility and Welfare Economics (New York: Center for Libertarian Studies, Occasional Paper Series, No. 3, 1977)
[9] See also Rothbard, The Ethics of Liberty, p. 46.
[10] For an awkward philosophical attempt to justify a late-comer ethic see James P. Sterba, The Demands of Justice (Notre Dame, Ind.: Notre Dame University Press, 1980), esp. pp. 58ff., 137ff.; on the absurdity of such an ethic see Rothbard, Man, Economy, and State, p. 427.
[11] It should be noted here that only if property rights are conceptualized as private-property rights originating in time does it then become possible to make contracts. Clearly enough, contracts are agreements between enumerable physically independent units which are based on the mutual recognition of each contractor's private ownership claims to things acquired prior in time to the agreement and which then concern the transfer of property titles to definite things from a definite prior to a definite later owner. No such thing as contracts could conceivably exist in the framework of a late-comer ethic!
Reprinted from Mises.org.
August 21, 2010
Hans-Hermann Hoppe [send him mail] is distinguished fellow at the Ludwig von Mises Institute and founder and president of the Property and Freedom Society. His books include Democracy: The God That Failed and The Myth of National Defense. Visit his website.


Appendix II


The Free Market vs. the Interventionist State
April 15, 2014
Editorial By Richard Ebeling
In whatever direction we turn, we find the heavy hand of government intruding into virtually every aspect of American society. Indeed, it has reached the point that it would be a lot easier to list those areas of people's lives into which government does not impose itself – and, alas, it would be a very short list. But it was not always that way.
Around a hundred years ago, say, in the first decade of the 20th century, all levels of government in the United States only taxed away and spent about 8 percent of national income, leaving 92 percent of what individuals had produced and earned in their own hands to use and spend as they thought best as free people.
Plus, there was no regular deficit spending because the federal government in Washington, D.C. annually balanced its budget; and it often even ran budget surpluses with which it paid down government debts accumulated during past "national emergencies," usually a war that had earlier needed rapid funding with borrowed money.
Today, all levels of government – federal, state and local – tax or borrow and, then, spend around 40 percent of the Gross Domestic Product in the United States. And if one adds the financial cost imposed upon the citizenry in the form of economic and social regulations to which businesses and enterprises must conform, the total burden of government is significantly higher.
Government has also influenced the American people in another way: They have lost their understanding of what a free-market society was, could and should be. The growth in the interventionist and redistributive state over the last 100 years has resulted in several generations who have come to think that political paternalism is as normal and "American" as apple pie.
The Change in American Economic Policy
This shift in the role of government in American society was noticed by the free-market, Austrian economist, Ludwig von Mises, while traveling around the United States on a lecture tour back in 1926. After returning to Austria, he delivered a talk on "Changes in American Economic Policy" at a meeting of the Vienna Industrial Club. He explained:
"The United States has become great and rich under the rule of an economic system that has set no restrictions on the free pursuits of the individual, and has thereby provided the opportunity for the country's productive powers to be developed. America's unprecedented economic prosperity is not due to of the richness of the American soil; instead, it is due to an economic policy that has reflected how best to exploit the possibilities offered by the land.
"American economic policy has always rejected–and still rejects today–any protection for inferior or less competitive against that which is efficient and more competitive. The success of this policy has been so great that it is hard to believe that Americans would every have reasons to change it."
But Mises went on to tell his Viennese audience that new voices were being heard in America, voices that claimed that America's economic system was not managed "rationally" enough and that it wasn't "democratic" enough because the voters did not have it in their immediate power to influence the direction of industrial development. Governmental controls were being introduced not to nationalize private enterprise but to direct it through various regulatory methods.
The American economy was certainly far less regulated by government than the countries in Europe, Mises pointed out. However, there were strong trends moving the United States along the same, more heavily interventionist path Europe had been traveling for a long time. In the America of 1926, Mises observed, "But today both major parties, the Republicans as well as the Democrats, are ready to undertake very radical steps in this direction in order to win the votes of the electorate." He concluded, "There can be no doubt that the results America would achieve from such a policy would be no different than what it has 'achieved' in Europe."
In Europe, the trend towards collectivism in the 1930s and 1940s took some extreme forms. Socialism, communism, fascism and Nazism were all tried on the other side of the Atlantic. They represented a total rejection of a free economy and individual liberty. In America, the collectivist trend never went to such an extreme, though Franklin D. Roosevelt's first New Deal came very close to the fascist model.
Defining the Free Market Economy
Socialism, communism, fascism and Nazism are now all but dead. They failed miserably. But they have been replaced by what is merely another, more watered down form of collectivism that may be called "interventionism." Indeed, interventionism is the predominant economic system in the world today. In 1929, Ludwig von Mises published a collection of essays under the title, "Critique of Interventionism." He argued,
"All writers on economic policy and nearly all statesmen and party leaders are seeking an ideal system which, in their belief, is neither [purely] capitalistic nor socialistic, is based neither on [unrestricted] private property in the means of production nor on public property. They are searching for a system of private property that is hampered, regulated, and directed through government intervention and other social forces, such as labor unions. We call such an economic policy interventionism, the system itself the hampered market order."
He added, "All its followers and advocates fully agree that it is the correct policy for the coming decades, yea, even the coming generations. And all agree that interventionism constitutes an economic policy that will prevail in the foreseeable future."
With the demise of communism in the 1990s, public policy around the world, including in the United States, is back to where it was when Mises wrote these words 85 years ago. Comprehensive government ownership of the means of production and a fully centralized planned economy has very few adherents left, even "on the left." At the same time, in spite of all the casual rhetoric about the triumph of capitalism, we have not seen much evidence of a movement toward a truly free-market system.
Here are eight points that define a genuine free-market economy, or what Mises referred to as the "unhampered economy":
  1. All means of production are privately owned.
  2. The use of the means of production is under the control of private owners who may be individuals or corporate entities.
  3. Consumer demands direct how the means of production – land, labor and capital – will be used.
  4. Competitive forces of supply and demand determine the price for consumer goods and the various factors of production including labor.
  5. The success or failure of individual and corporate enterprises is determined by the profits or losses these enterprises earn, based on their greater or lesser ability to satisfy consumer demands in competition with their rivals in the marketplace.
  6. The market is not confined to domestic transactions and includes freedom of international trade, investment and movement of people.
  7. The monetary system is based on a market-determined commodity (e.g., gold or silver), and the banking system is private and competitive, neither controlled nor regulated by government.
  8. Government is limited in its activities to the enforcement and protection of individual life, liberty and honestly acquired property.
Defining the Interventionist Economy
Unfortunately, many modern politicians and academics who say they endorse free-market capitalism are willing to tolerate a great deal of government intervention.
When it comes to identifying the role of government in their conception of the market order, many if not most "conservative" economists still assume that government must be responsible for a social safety net that includes Social Security, some form of government-provided health care and unemployment compensation; must have discretionary monetary and fiscal powers to support supposed desired levels of employment and output; must regulate industry to assure "competitive" conditions in the market and "fair" labor conditions for workers; and must directly supply certain goods and services that the market allegedly does not provide.
Indeed, many people who claim to be "on the right" believe that government should institute some or all of these "public policies." It should be appreciated, however, that the very notion of "public policy," as the term is almost always used, supports government intervention in the market in ways that are simply inconsistent with a genuine free-market economy.
Interventionism as public policy is not consistent with the free market since it intentionally prevents or modifies the outcomes of the market. Here are the eight points of the interventionist economy:
  1. The private ownership of the means of production is either restricted or abridged by government.
  2. The full use of the means of production by private owners is prohibited, limited, or regulated by government.
  3. The users of the means of production are prevented from being guided by consumer demand through a network of government regulations, controls, prohibitions and restrictions.
  4. Government influences or controls the formation of prices for consumer goods and/or the factors of production, through such interventions as price supports, subsidies, or minimum wage laws.
  5. Government reduces the impact of market supply and demand on the success or failure of various enterprises while increasing the impact of its own influence and control through such artificial means as price and production regulations, limits on freedom of entry into segments of the market and direct or indirect subsidies.
  6. Free entry into the domestic market by potential foreign rivals is discouraged or outlawed through import prohibitions, quotas, domestic content requirements, or tariffs, as well as capital controls, and restrictions on freedom of movement.
  7. The monetary system is regulated by government for the purpose of influencing what is used as money, the value of money and the rate at which the quantity of money is increased or decreased. And all these are used as tools for trying to affect the levels of employment, output and growth in the economy.
  8. Government's role is not limited to the protection of life, liberty and property.
It is also important to note that the "public policies" these eight points represent must be implemented through violent means. Only the threat or use of force can make people follow courses of action that are different from the ones that they would have peacefully taken if it were not for government intervention. There is really nothing "public" about these policies, after all; they are coercive policies imposed by government.
Free Markets and the "Law of Association"
Contrast these policies with the policies of the free market. What is most striking is the voluntary nature of market arrangements. The means of production are privately owned, and the owners are free to determine how those means of production will be employed. Thus, control over the means of production is depoliticized, that is, outside of the control or influence of the government. Since control is not located in one political place but is dispersed among a wide segment of the society's population, it is also decentralized.
Individuals, therefore, own and control the means through which they can maintain and improve their own circumstances, and not be dependent upon a single political source for employment or the necessities and luxuries of life. But it is not just the owners of the means of production who have a high degree of autonomy in the free-market economy; consumers do, too, since they are the ones who determine what products and services will be in demand.
The basis of society, Ludwig von Mises emphasized, is what he called "the law of association." Men can more successfully improve their individual condition through cooperation, and the means through which that cooperation can be made most productive is the division of labor. By taking advantage of individual talents and circumstances through specialization, the total quantity and quality of society's output can be dramatically improved. Individuals do not have to try to satisfy all their own wants through isolated activity.
Once they specialize their activities, they become interdependent; they rely upon each other for the vast majority of goods and services they desire. But it is this very interdependency that gives production its real and true social character. If men are to acquire from others what they desire, they must devote their energies to producing what those others are willing to accept in trade.
The fundamental rule of the market is mutual agreement and voluntary exchange. Each member of society must orient his activities toward serving the wants of at least some of the other members in an unending circle of trade. The Scottish moral philosopher Adam Smith observed over two hundred years ago:
"Man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely to prevail if he can interest their self-love in his favor, and show them that it is to their own advantage to do for him what he requires of them. Whosoever offers to another a bargain of any kind, proposes to do this. Give me that which I want, and you shall have this that you want is the meaning of every such offer; and it is in this manner that we obtain from one another the far greater part of those good offices that we stand in need of. It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard for their own interest. We address ourselves, not to their humanity, but to their self-love, and never talk to them of our own necessities but of their own advantages."
This is what assures that the uses for which the means of production are applied are guided by consumer demand. Each individual must find a way to satisfy some of the needs of others before he can successfully satisfy his own. As a result, the prices for consumer goods and the factors of production are not decreed by government but are formed in the marketplace through the competitive forces of supply and demand. Success or failure is determined by the profits and losses earned on the basis of the greater or lesser ability to meet consumer demand in competition with rivals in the marketplace.
Abandoning Our Constitution
In 1936, the Swiss economist and political scientist William E. Rappard delivered a lecture in Philadelphia on "The Relation of the Individual to the State" in which he emphasized that no one could read the accounts of the constitutional debates of 1787 or the famous "Federalist Papers" without realizing that the Founders were "essentially animated by the desire to free the individual from the state." He even went on to say, "I do not think that anyone who has seriously studied the origin of the Constitution of the United States will deny that it is an essentially individualistic document, inspired by the suspicion that the state is always, or always tends to be, dictatorial."
Reflecting upon the trends he observed in the United States in the New Deal era of the 1930s, Professor Rappard concluded: "The individual demanding that the state provide him with every security has thereby jeopardized his possession of that freedom for which his ancestors fought and bled."
Is Soviet-style communist central planning now in the ash heap of history? Yes. Are masses of people in the West willing to walk in blind, lockstep obedience to fascist demagogues in torchlight parades? No. And hopefully, neither form of totalitarianism will ever again cast its dark collectivist shadow over the West. However, nearly 80 years after Professor Rappard's observations about statist trends in America and around the world, Western democracies are still enveloped in the tight grip of the interventionist state.
Private property increasingly exists only on paper. And with the abridgment of property rights has come the abridgment of all the other individual liberties upon which a free society is based. Our lives are supervised, regulated, controlled, directed and overseen by the state. Look at any part of our economic and social lives and try to find even one corner that is free from some form of direct or indirect government intrusion. It is practically impossible to find such a corner.
This is because our lives are not our own anymore. They are the property of the state. We are the tools and the victims of public policies that are intended to construct brave new worlds concocted by intellectual and political elites who still dream the utopian dream that they know better than us how our lives should be lived.
Today, it is not free-market forces but political directives that most often influence what goods and services are produced, where and how they are produced and for what purposes they may be used. If we pick up any product in any store anywhere in the United States we will discover that hundreds of federal and state regulations have actually determined the methods by which it has been manufactured, its quality and content, its packaging and terms of sale and the conditions under which it may be "safely" used by the purchaser. If we buy a tract of land or a building, we will be trapped in a spider's web of land-use, building code and environmental regulatory restrictions on how we may use, improve, or sell it. Every facet of our lives is now subject to the whims of the state.
Economics, Morality and the Law
In an environment in which "public policy" determines individual lives and fortunes and in which social and economic life has become politicized, it is not surprising that many Americans have turned their attention to politics to improve their market position and relative income share. Legalized coercion has become the method by which they get ahead in life.
And make no mistake about it: Every income transfer, every tariff or import quota, every business subsidy, every regulation or prohibition on who may compete or how a product may be produced and marketed and every restraint on the use and transfer of property is an act of coercion. Political force is interjected into what would otherwise be a system of peaceful and voluntary transactions.
Over time, interventionism blurs the distinction between what is moral and what is not. In ordinary life, most people take for granted that certain forms of conduct are permissible while others are not. These are the Golden Rules we live by. Government's task in human society is to enforce and protect these rules, which are summarized in two basic principles: Neither force nor fraud shall be practiced in dealings with others; and the rights and property of others must be respected. In the moral order that is the free-market economy, these principles are the wellspring of honesty and trust. Without them, America is threatened with ultimate ruin – with a war of all-against-all in the pursuit of plunder.
When individuals began to ask government to do things for them, rather than merely to secure their individual rights and honestly acquired property, they began asking government to violate others' rights and property for their benefit.
These demands on government have been rationalized by intellectuals and social engineers who have persuaded people that what they wanted but didn't have was due to the greed, exploitation and immorality of others. Basic morality and justice has been transcended in the political arena in order to take from the "haves" and give to the "have not's." Theft through political means has become the basis of a "higher" morality: "social justice," which is supposed to remedy the alleged injustices of the free-market economy.
But once the market becomes politicized in this manner, morality begins to disintegrate. Increasingly, the only way to survive in society is to resort to the same types of political methods for gain as others are using, or to devise ways to evade the controls and regulations. More and more people, therefore, have been drawn into the arena of political intrigue and manipulation or violation of the law for economic gain. Human relationships and the political process have become increasingly corrupted.
In the 1920s, Ludwig von Mises explained a crucial aspect of this corruption of morality and law:
"By constantly violating criminal laws and moral decrees [people] lose the ability to distinguish between right and wrong, good and bad. The merchant, who began by violating foreign exchange controls, import and export restrictions, price ceilings, etc., easily proceeds to defraud his partners. The decay of business morals . . . is the inevitable concomitant of the regulations imposed on trade."
Mises was, of course, repeating the lesson that the French classical economist Frederic Bastiat had attempted to teach in the 1850s in his famous essay, "The Law." When the state becomes the violator of liberty and property rather than its guarantor, it debases respect for all law. People in society develop an increasing disrespect and disregard for what the law demands. They view the law as the agent for immorality in the form of legalized plunder for the benefit of some at the expense of others. And this same disrespect and disregard sooner or later starts to creep into the ordinary dealings between individuals. Society verges on the brink of lawlessness.
Trends Can Change – With the Will to Make It Happen
Bastiat predicted the moral bankruptcy that has been brought on by the interventionist state. But are we condemned to continue in a state of moral and political corruption?
Many thoughtful observers shake their heads and conclude that the answer is, "Yes." But it is worth recalling that in 1951 Ludwig von Mises wrote an essay called "Trends Can Change." He was replying to those who despaired at that time that socialist central planning was increasingly dominating the world. The situation seemed irreversible; political, economic and social trends all seemed to be heading in the direction of comprehensive collectivism. Said Mises:
"One of the cherished dogmas implied in contemporary fashionable doctrines is the belief that tendencies of social evolution as manifested in the recent past will prevail in the future, too. Any attempt to reverse or even to stop a trend is doomed to failure . . .
"The prestige of this myth is so enormous that it quells any opposition. It spreads defeatism among those who do not share the opinion that everything which comes later is better than what preceded, and are fully aware of the disastrous effects of all-round planning, i.e., totalitarian socialism. They, too, meekly submit to what the pseudo-scholars tell them is inevitable.
"It is this mentality of passively accepting defeat that has made socialism triumph in many European countries and may very soon make it conquer in this country [the United States] too . . .
"Now trends of evolution can change, and hitherto they almost always have changed. But they changed only because they met firm opposition. What [Hilaire] Belloc called the servile state will certainly not be reversed if nobody has the courage to attack its underlying dogmas."
The trend towards totalitarian socialism was reversed. It was reversed by its own inherent unworkability. It was reversed by the faith of millions of people in the Soviet bloc who would not give up on the dream of freedom and by a courageous few who sacrificed their careers, their property and even their lives to make that dream a reality. And it was reversed by friends of freedom in the West who helped prevent its triumph in their own homelands and who provided an intellectual defense of liberty and the free market.
Interventionism in America in these early decades of the 21st century is a trend that can also be reversed. Its own inherent unworkability and strangulation of the wealth-creating mechanisms of the market will start the reversal process. But that is not enough. We must rekindle our belief in and desire for freedom. And some of us have to speak out and refute the rationales for interventionism.
We need to share with our fellow citizens a powerful vision of the free society and the unhampered economy. If we succeed, the trend of the 21st century can be a trend toward greater individual freedom, an expanding global free marketplace and rising standards of living and opportunity for all.
- See more at: http://www.thedailybell.com/editorials/35213/Richard-Ebeling-The-Free-Market-vs-the-Interventionist-State/#sthash.qrsf7vHE.dpuf

Appendix III
Simon black; April 21, 2014
Sovereign Valley Farm, Chile

Having traveled to well over 100 countries, I have seen some pretty shocking signs of poverty around the world.

In parts of Asia, it's not uncommon for parents in poor villages to sell their children for bags of rice... or for children to be stolen outright and sold as orphans to unsuspecting foreigners.

In Africa, I've seen people who are so destitute they intentionally mangle and gash their own bodies just to give themselves good cause to shock foreign tourists into donations.

But I'd have to rank poverty in Cuba as the most extreme.

Going to Cuba is like going back in time. The country lacks basic products and services, many of which we consider staples in modern life.

Most roads and buildings are in horrendous condition. And the average person in the country has to make do with just a few dollars a month.

All of this stems from a system of central planning in which government essentially owns and controls... everything. Businesses. Property. Medical services. Anything larger than a bicycle.

Teams of bureaucrats lord over the Cuban economy trying to manipulate and control every possible variable. They dole out housing allowances. They set manufacturing quotas. They control prices of goods and services.

Nevermind that any high school economics student understands why price controls don't work... and typically lead to shortages.

That's precisely what's happening right now.

Cuba's state-run condom distributor has been centrally planning safe sex for years. And, surprise, surprise, they're not doing a very good job of it.

Condoms are now at critically low levels in Cuba. And the government's solution is to sell expired condoms from two years ago. It's genius.

Like the toilet paper shortage in Venezuela, the infamous electrical blackouts in Argentina, or those mythical stories of Soviet boot factories, it's clear that central planning simply does not work. Ever.

Even in a single industry as innocuous as toilet paper or condoms, there are simply too many variables in the equation.

Taking that a step further and presuming that a government committee can centrally plan an entire economy or financial system is just ludicrous. But it doesn't stop people from trying.

John Maynard Keynes is one of the most famous economists in history; decades ago he wrote THE economic playbook still used by governments and central banks around the world today.

His writings include such pearls of wisdom as:

"earthquakes, even wars... serve to increase wealth. . . "

and my favorite:

"Can a country spend its way into recovery? Yes."

Keynes was a staunch advocate of 'state-run capitalism', an oxymoron rivaled only by "almost pregnant" and "fight for peace".

Keynes believed that we little people aren't competent enough to arrange our own finances, and "the duty of ordering the current volume of investment cannot safely be left in private hands".

He was also a staunch advocate of modern central banking-- the concept of awarding a tiny unelected banking elite with total control of the money supply.

He saw it perfectly fine to have a group of men sitting in a room making monetary decisions that would literally impact the entire world... so long as it was the right men.

As he wrote, "State-run capitalism must be run by the right people." Precisely. And everyone else is just supposed to trust them to be good guys.

Cuba may be centrally planning its condom industry. But the United States is centrally planning the entire global monetary system.

Cuba may be selling expired condoms... but the United States is selling expired credibility.

And just as in Cuba, they are creating bubbles, panics, shocks, crises, and gargantuan inefficiencies.

Like Cuba, the cracks are showing and the system is decaying rapidly. Major governments and central banks are now insolvent, particularly on a mark-to-market basis.

History shows that central planning has always had a finite shelf life. Do you really want all of your assets, savings, and income invested in this system as it collapses?

Appendix IV 

The Democratic Dilemma and the Need to Limit Government
This is, in a sense, the modern democratic dilemma.
Over the last one hundred years, there have been fewer and fewer restraints on what is viewed as the proper role of government in society. The arena in which government may take an active part, both in the United States and around the world, grows ever wider. This widening arena of government has become the playground of special interest politicking from both the political "left" and "right" by those hoping to gain something through government intervention at the expense of others in society.
In 2013, there were over 12,000 registered lobbying groups in Washington, D.C. They officially spent more than $3.2 billion in 2013 to influence legislation on behalf of special interest groups from across the political spectrum, and reflecting virtually every sector of the U.S. economy. Just since this century began in 2001, annual spending by Washington-based lobbying groups (in real inflation-adjusted dollars) has increased by nearly 50 percent.
How do we break out of this dilemma, and return to limited government? Unfortunately, there are no electoral "quick fixes" or political sleights-of-hand that can reduce or eliminate the political paternalism and plunder land of the modern interventionist welfare state.
A Return to the Idea of Individual Rights Inviolable by Government
It requires a sea change in the philosophical, ethical and political-economic premises upon which American society operates. In other words, those of us who believe in and desire liberty and a free society must return to "first principles" and articulate the same to others.
We must hone our own understanding of the ideas and ideals upon which the United States was originally founded, and most especially as enunciated in the Declaration of Independence, where it was clearly and explicitly stated that freedom is inseparable from the recognition and defense of those inalienable rights to "life, liberty, and the pursuit of happiness" that are universally possessed by each and every individual.
In more modern times, Ayn Rand expressed this concisely and insightfully in her essay, "Man's Rights" (1963):
"If one wishes to advocate a free society – that is, capitalism – one must realize that its indispensible foundation is the principle of individual rights. If one wishes to uphold individual rights, one must realize that capitalism is the only system that can uphold and protect them.
"'Rights' are a moral concept . . . the concept preserves and protects individual morality in a social context – the link between the moral code of a man and the legal code of a society, between ethics and politics. Individual rights are the means of subordinating society to moral law . . .
"A 'right' is a moral principle defining and sanctioning a man's freedom of action in a social context. There is only one fundamental right . . . a man's right to his own life . . . The right to life is the source of all rights – and the right to property is their only implementation. Without property rights, no other rights are possible. Since man has to sustain his life by his own effort, the man who has no right to the product of his effort has no means of sustaining his life. The man who produces while others dispose of his product, is a slave . . .
"The United States regarded man as an end in himself, and society as a means to the peaceful, orderly, voluntary coexistence of individuals . . . and that the only moral purpose of a government is the protection of individual rights . . .
"To violate man's rights means to compel him to act against his own judgment, or to expropriate his values. Basically, there is only one way to do it: by the use of physical force. There are two potential violators of man's rights: the criminals and the government.
"The great achievement of the United States was to draw a distinction between the these two – by forbidding to the second [government] the legalized version of the activities of the first [private plunder]."
As long as people believe that "society" or the "democratic majority" or some empty notion of the "general welfare" comes before and is above the rights and interests of the peaceful individual, then there will be no breaking out of the trend towards the growing size and scope of government's controlling reach over all of us.
It must become "second nature," a "habit of the mind" for Americans in general to once more take it for granted that certain things are, well, "just not done." And more precisely, that it is the duty of government to protect the right of each individual to his life, liberty, and honestly acquired property, and not to violate that person's rights.
For it to become "second nature" and a "habit of the mind" again, people must rediscover the reason for and rightness of an inviolable "right" of each individual to his own life, which should not be sacrificed to some mystical and imagined "higher good" or any collective entity called "the nation," or the "state" or "society."
This is why, in answer to her own question, "Philosophy, Who Needs It?" Ayn Rand once argued that each of us does; we must become intelligent students of the theory of individual rights based on reason and reality.
Changing the Course of Human Events with Right Ideas
Enough of us have to have sufficiently done so that we can explain to others the essentials of such a theory of individual rights, and with sufficient persuasiveness that those other, too, come to see the rightness in them. Then it won't matter that most people never have an incentive to know enough to decide whether the U.S. Department of Education is spending too little or too much on a "common core" curriculum or whether the Defense Department has just the right number of aircraft or ocean vessels to "police the world."
Enough people will enter the voting booth and think as "second nature" and as a "habit of the mind," is this candidate for or against respect for and protection of individual rights? Does this party platform advocate or oppose private property and free market capitalism? Does this party and these candidates believe that the function of government is to defensively protect the citizens of the country from the clear and present dangers of foreign aggressors or do they wish to sacrifice the lives and fortunes of Americans in foreign adventures and wars?
Most people, if they see a person drop their wallet will pick it up and hand it back to them, because as "second nature" and "habit of the mind" they take for granted that taking what belongs to another is "wrong." For a free society to prevail it is necessary for many people to no longer give even a second thought that it is ethically right for them to run to government and take by political power what they would never think of stealing in their private interactions with others.
It is not that advocacy of liberty should become a "prejudice," that is, a preconceived idea not based on reasoned reflection or learned experience. A mere "faith" in freedom without a well-grounded set of reasons for advocating it will not sustain a free society in the long run.
What it does mean is the each generation must be encouraged to think about and learn the meaning of individual rights, and what they imply about the nature of man, human associations, and the role and place of a government in society.
If properly and effectively understood, it will become the generally accepted notion that, "Well, every thinking and reasonable person knows that . . . using the coercive power of the government to compel any man to sacrifice his life for others is as ethically not right as expecting others to be forced to sacrifice for him."
Then, as a matter of implied "first principles" it will be impossible for some in the society to successfully coerce others through the tools of political power, because it will be culturally counter to the general "habit of the mind" that liberty is too precious as both a moral and practical matter to be forgone for even the most attractive short-run gains from political paternalism and plunder.
It is neither an easy nor a quick task to change, in this sense, the "climate of opinion" about the appropriate moral order to sustain a free, prosperous and ethically healthy society. But we have no tools other than our minds and our reason and an understanding that it is in our own self-interests to try.
If enough of us take on this task the growth in government can be both halted and reversed. The world of coercive plunder can be replaced with a human community of free men pursuing mutually beneficial peaceful production. The democratic dilemma of every growing government will be brought to an end.
- See more at: http://www.thedailybell.com/editorials/35234/Richard-Ebeling-Why-Government-Grows-and-How-to-Reverse-It/#sthash.HDHUikUn.dpuf

Why Government Grows, and How to Reverse It
Editorial By Richard Ebeling
Regardless of where someone may view himself along the political spectrum (conservative, libertarian, or modern liberal), there are always a variety of government programs and activities that they either think are not worth the money or should not be the business of government in the first place. Yet, it seems almost impossible to rein in government. It keeps growing in size and scope in one direction after another. Why? And is there any way to reverse it?
Increasing Government Spending and Taxing
The federal government keeps getting bigger and more intrusive and more costly. In the 2013 fiscal year that ended on September 30, 2013, Washington spent a bit more than $3.4 trillion. This compares (in inflation-adjusted 2013 dollars) with 2.1 trillion in 1993. In other words federal spending has increased by 62 percent over the last twenty years.
The same dramatic growth has occurred on the revenue side. The federal government took in about $2.8 trillion in taxes in fiscal 2013, compared to $1.7 trillion in 1993 (in 2013 inflation-adjusted dollars), for a 65 percent increase in government revenues compared to two decades ago.
This increase in expenditures and revenues over the last twenty years is reflected in the tax burden on the American people. The average household paid $28,205 in taxes to the federal government in 2013, up from $22,230 (in inflation-adjusted 2013 dollars) in 1993, or a 27 percent increase in twenty years. While the population of the country has increased by around 22 percent during this time period, per capita federal government spending has risen by 33 percent.
Both "entitlement" spending (Social Security, Medicare) and "discretionary" spending (including defense) have significantly increased over these two decades. Discretionary spending went up about 50 percent over this period, while entitlement spending rose by 100 percent.
Special Interests and the Growth in Government
According to "public choice" theory, this growth in government transcends the political differences in modern democratic society. Rather, it is structured into the existing political system itself.
Public choice theorists are economists who argue that the political process should be studied in the same manner as markets are analyzed. Over the last several decades, they have attempted to explain the factors behind the growth of government in modern democratic society. They say that individuals in the political arena are motivated by self-interested goals (which can include ideological or ethical ends, as well as financial gains).
This self-interest prompts individuals and "special interest" pressure groups to weigh the costs and the benefits in deciding to be for or against various government policies; and they attempt to influence political outcomes through their votes, their campaign contributions, and their lobbying expenditures.
Their goal to obtain through either government regulations or income redistribution what they cannot or do not want to peacefully and voluntarily acquire on the open, competitive market: other people's money.
Rather than earning the revenues or income they desire by offering the consuming public more, better and less expensive products, they turn to government to get anti-competitive domestic regulations, import restrictions against foreign rivals, or subsidies or government contracts to acquire the additional wealth they want – all at taxpayers' and consumers' expense, of course.
If they are "non-profits" such as many environmental groups, they turn to government to restrict people's use of their own private property through land use prohibitions or regulations, or through government control and ownership of land and wildlife they want preserved from private access and development. Unable to persuade enough of their fellow citizens to voluntarily contribute sufficient money to buy up and maintain the land they wish "untouched by man," they turn to the coercive power of government to get what they want through taxes and regulations.
Politicians, Bureaucrats and the Growth in Government
Politicians, on the other hand, desire to be elected and reelected. They gain political office by "selling" programs, regulations, and spending taxpayer dollars for the benefit of various constituent groups whose campaign contributions and votes they hope to receive.
Why do they want to be elected or reelected? So they can impose on the citizenry – both supporters and those who may have voted against them – programs and spending and taxing that they arrogantly presume to be good for "the people," under the presumption that they know what is good for others; and which those others would want of their own free will if only they were intelligent enough to have the wisdom and values that those holding political office believe they possess.
Of course, sometimes the desire for political office arises out of pure personal ambition, including the desire to "leave their mark on history," their "legacy" that future generations of little children will learn about in government schools. And, sometimes, it is the simple desire for power over others, and any material wealth that can come their way through political plunder and manipulation.
Those who run the government bureaucracies desire larger budgets and greater administrative responsibilities over economic and social affairs. They hope to gain promotions, higher salaries, and more control through discretionary decision-making.
Larger budgets and expanded regulatory authority opens the door to promotions and higher salaries in the government pay grades. In addition, some of those in the government departments, bureaus, and agencies suffer from the "psychology of the petty bureaucrat" who craves power over others; others who deferentially have to come to them and plead for the regulatory and licensing permissions without which the honest men of the market place cannot go about their productive business.
Bureaucrats' Incentive to Never Get the Job Done
There is also a perverse incentive mechanism within the halls of bureaucratic power. Those who manage and work in these government departments and agencies have little or no incentive to "solve" the problems for which their department or agency was originally created. If they do so they lose the rationale for maintenance of or increase in the budgets and authority without which they have neither their incomes nor positions.
This stands in stark contrast to the incentives for the private enterpriser in the competitive market. In the free market there is only one way to gain and retain the consumer business from whose purchases market-base enterprises earn their revenues: to solve people's problems.
It may be a tastier coffee or frozen dinner; or a more wrinkle-free shirt or suit; or a longer-lasting chewing gum; or better fitting and lighter wearing prescription eye glasses; or a better quality and less expensive private education; or a wider covering and lower premium car insurance or health insurance policy. Whatever it may be, in the voluntary free market attracting customers and winning their repeat business requires private enterprisers to make people's lives easier, more comfortable and less expensive.
There are no such incentives within the government bureaucracies, in which the "servants of the people" have monopoly control over certain services and regulatory rules and permissions. In addition, they acquire their incomes not through voluntary transactions but through compulsory taxation.
If this is the crude, but no less true reality behind the "public interest" and "general welfare" political rhetoric and ideology with which those in political power attempt to mesmerize citizens and taxpayers, then why, once it is understood, does the governmental system of paternalism and plunder persist?
Concentration of Benefits, Diffusion of Burdens
One of the core ideas of the public choice theorists is that there is a bias toward growth in government spending and redistribution that results from the pattern of a "concentration of benefits and a diffusion of burdens." The logic of this process was actually explained more than a century ago, in 1896, by the famous Italian economist and sociologist Vilfredo Pareto.
Imagine that in a country of 30 million people, the government proposes to tax each citizen $1 more, and then redistribute the extra $30 million among a special interest group of 30 individuals. Each taxpayer will have one extra dollar taken away from them by the government for the year, while each of the 30 recipients of this wealth transfer will annually gain an extra one million dollars.
Pareto suggested that the 30 recipients would collectively have a strong incentive to lobby, influence, and even corruptly "buy" the votes of the politicians able to pass this redistributive legislation. Each individual taxpayer, on the other hand, will have little incentive to spend the time and effort to counter-lobby, influence, and petition members of the legislature merely to save one dollar off his or her tax bill.
Let's look at the U.S. federal government's budget. In 2013, the per capita amount of government expenditures was around $11,000 for every man, woman and child. Not everyone, of course, pays taxes. The average taxpayer burden of government spending in 2013 came to around $26,000. However, the cost of each of the government departments and bureaus and the specific line items in their respective budgets was only a fraction of the overall tax burden.
Big Government Spending, Individual's Tax Burdens
Suppose a "conservative" is critical of the Department of Education, thinking that many of its activities are misplaced, or perhaps that the whole department should be abolished. While the Department of Education spent nearly $72 billion last year, the average taxpayer only shoulder $522 of this expense or on average only $43.50 in monthly taxes, which came to around $1.45 a day. This is far less than a latte at Starbucks or a lunch meal at a fast food establishment.
In most instances, it would be hard to interest a member of the general taxpaying public to learn enough about the pros and cons of the actual programs run by the Department of Education for him to make an informed decision as to whether nor not what the Education Department was doing was really worth it. After all, even if the Department of Education was abolished, it would save the average taxpayer less than two dollars a day, assuming taxes were cut by the full amount.
On the other hand, that $72 billion is concentrated on the incomes and activities of, at most, several hundreds of thousands of teachers, educators, school administrators, and textbook and school-supply providers. Those federal dollars represent a sizable portion of their administrative budgets, take-home pay, and business profits. The lobbying and voting incentives, therefore, will be heavily on the side of those who see financial and related gains from continuing and increasing federal spending on government-funded education.
Someone on the "liberal" side of the political spectrum might be equally critical of some of the line item spending in the Department of Defense budget, or on subsidies to corporate agri-businesses funded by the Department of Agriculture. But the same bias would work in these areas of government activity, as well, making it difficult to create the necessary political counterweights to lobby for the reduction or elimination of these federal programs.
The Defense Department's spending on warplanes and battleships, uniforms and boots, ammunition and weaponry, spying devices and unmanned drones represents hundreds of millions, sometimes billions of dollars to the various contractors who win and fulfill these military contracts. They have a strong incentive to lobby and influence for the greatest amount of defense-related spending, and to know every detail and potential rationale to demonstrate that such expenditures are in the "national interest" and why they are the right ones to get the taxpayer-funded procurement deals.
But how many taxpayers will have the motive and incentive to wade through all the (unclassified) details concerning the various parts of Defense Department spending to make an informed decision about how much defense spending America needs and of what type, considering that even if some programs were to be cut back or eliminated it would maybe result in a cut in his personal taxes by the equivalent of a few dollars a day. For most individual citizens their time and attention have a higher value in doing other things.
Because of this, government tends to grow in many directions in the form of concentrated benefits for special interest groups of all types at the expense of the general citizenry and taxpayers. The dispersed financial burden that falls on each taxpayer as his "contribution" to fund these programs nonetheless adds up, of course, to hundreds of billions, indeed trillions, of dollars a year of government spending.
Division of Labor and the Bias Toward Producer Interests
Since the time of Adam Smith in the eighteenth century, economists have emphasized the productive benefits from specialization through the division of labor. Each of us will be materially far better off if we specialize in what we are relatively more productive at doing, and then trade away our particular good or service for what others are offering to sell us. This is really the basis for all the material, scientific, intellectual, and cultural advancements of modern civilization.
But near the beginning of the twentieth century, British economist Philip Wicksteed pointed out, in his "The Common Sense of Political Economy" (1910), that such specialization also tends to create a bias against the open, competitive market in which people need to apply themselves in the most productive and cost-efficient ways. This was also strongly emphasized by the free market, German economist Wilhelm Röpke, in his work, "The Social Crisis of Our Time" (1942).
Once individuals have divided their labors, each becomes the producer of one product (or at most a small handful of things) and the consumer of all the multitudes of goods that others in society produce. But it is impossible for any of us to buy the goods that others offer to us as consumers, unless we have first succeeded in earning an income from what we are selling on the market in our own role as a producer.
Because of this, our interest as a producer always tends to take precedence over our role as a consumer, it has been argued. If I oppose some special interest group that is trying to get a subsidy from the government, I may save a dollar in my role as taxpayer and consumer (to use the earlier example from Pareto). But is it worth the cost in time, effort and expenditure to do so?
On the other hand, lobbying and otherwise influencing the legislative process to win some favor or privilege for myself and the others in my sector of the economy may produce better financial results. A protective tariff to limit foreign competition, for example, or a regulatory or licensing rule that restricts new domestic rivals can increase my income per year by tens of thousands of dollars, in my role as a producer.
The Democratic Dilemma and the Need to Limit Government
This is, in a sense, the modern democratic dilemma.
Over the last one hundred years, there have been fewer and fewer restraints on what is viewed as the proper role of government in society. The arena in which government may take an active part, both in the United States and around the world, grows ever wider. This widening arena of government has become the playground of special interest politicking from both the political "left" and "right" by those hoping to gain something through government intervention at the expense of others in society.
In 2013, there were over 12,000 registered lobbying groups in Washington, D.C. They officially spent more than $3.2 billion in 2013 to influence legislation on behalf of special interest groups from across the political spectrum, and reflecting virtually every sector of the U.S. economy. Just since this century began in 2001, annual spending by Washington-based lobbying groups (in real inflation-adjusted dollars) has increased by nearly 50 percent.
How do we break out of this dilemma, and return to limited government? Unfortunately, there are no electoral "quick fixes" or political sleights-of-hand that can reduce or eliminate the political paternalism and plunder land of the modern interventionist welfare state.
A Return to the Idea of Individual Rights Inviolable by Government
It requires a sea change in the philosophical, ethical and political-economic premises upon which American society operates. In other words, those of us who believe in and desire liberty and a free society must return to "first principles" and articulate the same to others.
We must hone our own understanding of the ideas and ideals upon which the United States was originally founded, and most especially as enunciated in the Declaration of Independence, where it was clearly and explicitly stated that freedom is inseparable from the recognition and defense of those inalienable rights to "life, liberty, and the pursuit of happiness" that are universally possessed by each and every individual.
In more modern times, Ayn Rand expressed this concisely and insightfully in her essay, "Man's Rights" (1963):
"If one wishes to advocate a free society – that is, capitalism – one must realize that its indispensible foundation is the principle of individual rights. If one wishes to uphold individual rights, one must realize that capitalism is the only system that can uphold and protect them.
"'Rights' are a moral concept . . . the concept preserves and protects individual morality in a social context – the link between the moral code of a man and the legal code of a society, between ethics and politics. Individual rights are the means of subordinating society to moral law . . .
"A 'right' is a moral principle defining and sanctioning a man's freedom of action in a social context. There is only one fundamental right . . . a man's right to his own life . . . The right to life is the source of all rights – and the right to property is their only implementation. Without property rights, no other rights are possible. Since man has to sustain his life by his own effort, the man who has no right to the product of his effort has no means of sustaining his life. The man who produces while others dispose of his product, is a slave . . .
"The United States regarded man as an end in himself, and society as a means to the peaceful, orderly, voluntary coexistence of individuals . . . and that the only moral purpose of a government is the protection of individual rights . . .
"To violate man's rights means to compel him to act against his own judgment, or to expropriate his values. Basically, there is only one way to do it: by the use of physical force. There are two potential violators of man's rights: the criminals and the government.
"The great achievement of the United States was to draw a distinction between the these two – by forbidding to the second [government] the legalized version of the activities of the first [private plunder]."
As long as people believe that "society" or the "democratic majority" or some empty notion of the "general welfare" comes before and is above the rights and interests of the peaceful individual, then there will be no breaking out of the trend towards the growing size and scope of government's controlling reach over all of us.
It must become "second nature," a "habit of the mind" for Americans in general to once more take it for granted that certain things are, well, "just not done." And more precisely, that it is the duty of government to protect the right of each individual to his life, liberty, and honestly acquired property, and not to violate that person's rights.
For it to become "second nature" and a "habit of the mind" again, people must rediscover the reason for and rightness of an inviolable "right" of each individual to his own life, which should not be sacrificed to some mystical and imagined "higher good" or any collective entity called "the nation," or the "state" or "society."
This is why, in answer to her own question, "Philosophy, Who Needs It?" Ayn Rand once argued that each of us does; we must become intelligent students of the theory of individual rights based on reason and reality.
Changing the Course of Human Events with Right Ideas
Enough of us have to have sufficiently done so that we can explain to others the essentials of such a theory of individual rights, and with sufficient persuasiveness that those other, too, come to see the rightness in them. Then it won't matter that most people never have an incentive to know enough to decide whether the U.S. Department of Education is spending too little or too much on a "common core" curriculum or whether the Defense Department has just the right number of aircraft or ocean vessels to "police the world."
Enough people will enter the voting booth and think as "second nature" and as a "habit of the mind," is this candidate for or against respect for and protection of individual rights? Does this party platform advocate or oppose private property and free market capitalism? Does this party and these candidates believe that the function of government is to defensively protect the citizens of the country from the clear and present dangers of foreign aggressors or do they wish to sacrifice the lives and fortunes of Americans in foreign adventures and wars?
Most people, if they see a person drop their wallet will pick it up and hand it back to them, because as "second nature" and "habit of the mind" they take for granted that taking what belongs to another is "wrong." For a free society to prevail it is necessary for many people to no longer give even a second thought that it is ethically right for them to run to government and take by political power what they would never think of stealing in their private interactions with others.
It is not that advocacy of liberty should become a "prejudice," that is, a preconceived idea not based on reasoned reflection or learned experience. A mere "faith" in freedom without a well-grounded set of reasons for advocating it will not sustain a free society in the long run.
What it does mean is the each generation must be encouraged to think about and learn the meaning of individual rights, and what they imply about the nature of man, human associations, and the role and place of a government in society.
If properly and effectively understood, it will become the generally accepted notion that, "Well, every thinking and reasonable person knows that . . . using the coercive power of the government to compel any man to sacrifice his life for others is as ethically not right as expecting others to be forced to sacrifice for him."
Then, as a matter of implied "first principles" it will be impossible for some in the society to successfully coerce others through the tools of political power, because it will be culturally counter to the general "habit of the mind" that liberty is too precious as both a moral and practical matter to be forgone for even the most attractive short-run gains from political paternalism and plunder.
It is neither an easy nor a quick task to change, in this sense, the "climate of opinion" about the appropriate moral order to sustain a free, prosperous and ethically healthy society. But we have no tools other than our minds and our reason and an understanding that it is in our own self-interests to try.
If enough of us take on this task the growth in government can be both halted and reversed. The world of coercive plunder can be replaced with a human community of free men pursuing mutually beneficial peaceful production. The democratic dilemma of every growing government will be brought to an end.
- See more at: http://www.thedailybell.com/editorials/35234/Richard-Ebeling-Why-Government-Grows-and-How-to-Reverse-It/#sthash.Yu0VoSmR.dpuf
Why Government Grows, and How to Reverse It
Editorial By Richard Ebeling
Regardless of where someone may view himself along the political spectrum (conservative, libertarian, or modern liberal), there are always a variety of government programs and activities that they either think are not worth the money or should not be the business of government in the first place. Yet, it seems almost impossible to rein in government. It keeps growing in size and scope in one direction after another. Why? And is there any way to reverse it?
Increasing Government Spending and Taxing
The federal government keeps getting bigger and more intrusive and more costly. In the 2013 fiscal year that ended on September 30, 2013, Washington spent a bit more than $3.4 trillion. This compares (in inflation-adjusted 2013 dollars) with 2.1 trillion in 1993. In other words federal spending has increased by 62 percent over the last twenty years.
The same dramatic growth has occurred on the revenue side. The federal government took in about $2.8 trillion in taxes in fiscal 2013, compared to $1.7 trillion in 1993 (in 2013 inflation-adjusted dollars), for a 65 percent increase in government revenues compared to two decades ago.
This increase in expenditures and revenues over the last twenty years is reflected in the tax burden on the American people. The average household paid $28,205 in taxes to the federal government in 2013, up from $22,230 (in inflation-adjusted 2013 dollars) in 1993, or a 27 percent increase in twenty years. While the population of the country has increased by around 22 percent during this time period, per capita federal government spending has risen by 33 percent.
Both "entitlement" spending (Social Security, Medicare) and "discretionary" spending (including defense) have significantly increased over these two decades. Discretionary spending went up about 50 percent over this period, while entitlement spending rose by 100 percent.
Special Interests and the Growth in Government
According to "public choice" theory, this growth in government transcends the political differences in modern democratic society. Rather, it is structured into the existing political system itself.
Public choice theorists are economists who argue that the political process should be studied in the same manner as markets are analyzed. Over the last several decades, they have attempted to explain the factors behind the growth of government in modern democratic society. They say that individuals in the political arena are motivated by self-interested goals (which can include ideological or ethical ends, as well as financial gains).
This self-interest prompts individuals and "special interest" pressure groups to weigh the costs and the benefits in deciding to be for or against various government policies; and they attempt to influence political outcomes through their votes, their campaign contributions, and their lobbying expenditures.
Their goal to obtain through either government regulations or income redistribution what they cannot or do not want to peacefully and voluntarily acquire on the open, competitive market: other people's money.
Rather than earning the revenues or income they desire by offering the consuming public more, better and less expensive products, they turn to government to get anti-competitive domestic regulations, import restrictions against foreign rivals, or subsidies or government contracts to acquire the additional wealth they want – all at taxpayers' and consumers' expense, of course.
If they are "non-profits" such as many environmental groups, they turn to government to restrict people's use of their own private property through land use prohibitions or regulations, or through government control and ownership of land and wildlife they want preserved from private access and development. Unable to persuade enough of their fellow citizens to voluntarily contribute sufficient money to buy up and maintain the land they wish "untouched by man," they turn to the coercive power of government to get what they want through taxes and regulations.
Politicians, Bureaucrats and the Growth in Government
Politicians, on the other hand, desire to be elected and reelected. They gain political office by "selling" programs, regulations, and spending taxpayer dollars for the benefit of various constituent groups whose campaign contributions and votes they hope to receive.
Why do they want to be elected or reelected? So they can impose on the citizenry – both supporters and those who may have voted against them – programs and spending and taxing that they arrogantly presume to be good for "the people," under the presumption that they know what is good for others; and which those others would want of their own free will if only they were intelligent enough to have the wisdom and values that those holding political office believe they possess.
Of course, sometimes the desire for political office arises out of pure personal ambition, including the desire to "leave their mark on history," their "legacy" that future generations of little children will learn about in government schools. And, sometimes, it is the simple desire for power over others, and any material wealth that can come their way through political plunder and manipulation.
Those who run the government bureaucracies desire larger budgets and greater administrative responsibilities over economic and social affairs. They hope to gain promotions, higher salaries, and more control through discretionary decision-making.
Larger budgets and expanded regulatory authority opens the door to promotions and higher salaries in the government pay grades. In addition, some of those in the government departments, bureaus, and agencies suffer from the "psychology of the petty bureaucrat" who craves power over others; others who deferentially have to come to them and plead for the regulatory and licensing permissions without which the honest men of the market place cannot go about their productive business.
Bureaucrats' Incentive to Never Get the Job Done
There is also a perverse incentive mechanism within the halls of bureaucratic power. Those who manage and work in these government departments and agencies have little or no incentive to "solve" the problems for which their department or agency was originally created. If they do so they lose the rationale for maintenance of or increase in the budgets and authority without which they have neither their incomes nor positions.
This stands in stark contrast to the incentives for the private enterpriser in the competitive market. In the free market there is only one way to gain and retain the consumer business from whose purchases market-base enterprises earn their revenues: to solve people's problems.
It may be a tastier coffee or frozen dinner; or a more wrinkle-free shirt or suit; or a longer-lasting chewing gum; or better fitting and lighter wearing prescription eye glasses; or a better quality and less expensive private education; or a wider covering and lower premium car insurance or health insurance policy. Whatever it may be, in the voluntary free market attracting customers and winning their repeat business requires private enterprisers to make people's lives easier, more comfortable and less expensive.
There are no such incentives within the government bureaucracies, in which the "servants of the people" have monopoly control over certain services and regulatory rules and permissions. In addition, they acquire their incomes not through voluntary transactions but through compulsory taxation.
If this is the crude, but no less true reality behind the "public interest" and "general welfare" political rhetoric and ideology with which those in political power attempt to mesmerize citizens and taxpayers, then why, once it is understood, does the governmental system of paternalism and plunder persist?
Concentration of Benefits, Diffusion of Burdens
One of the core ideas of the public choice theorists is that there is a bias toward growth in government spending and redistribution that results from the pattern of a "concentration of benefits and a diffusion of burdens." The logic of this process was actually explained more than a century ago, in 1896, by the famous Italian economist and sociologist Vilfredo Pareto.
Imagine that in a country of 30 million people, the government proposes to tax each citizen $1 more, and then redistribute the extra $30 million among a special interest group of 30 individuals. Each taxpayer will have one extra dollar taken away from them by the government for the year, while each of the 30 recipients of this wealth transfer will annually gain an extra one million dollars.
Pareto suggested that the 30 recipients would collectively have a strong incentive to lobby, influence, and even corruptly "buy" the votes of the politicians able to pass this redistributive legislation. Each individual taxpayer, on the other hand, will have little incentive to spend the time and effort to counter-lobby, influence, and petition members of the legislature merely to save one dollar off his or her tax bill.
Let's look at the U.S. federal government's budget. In 2013, the per capita amount of government expenditures was around $11,000 for every man, woman and child. Not everyone, of course, pays taxes. The average taxpayer burden of government spending in 2013 came to around $26,000. However, the cost of each of the government departments and bureaus and the specific line items in their respective budgets was only a fraction of the overall tax burden.
Big Government Spending, Individual's Tax Burdens
Suppose a "conservative" is critical of the Department of Education, thinking that many of its activities are misplaced, or perhaps that the whole department should be abolished. While the Department of Education spent nearly $72 billion last year, the average taxpayer only shoulder $522 of this expense or on average only $43.50 in monthly taxes, which came to around $1.45 a day. This is far less than a latte at Starbucks or a lunch meal at a fast food establishment.
In most instances, it would be hard to interest a member of the general taxpaying public to learn enough about the pros and cons of the actual programs run by the Department of Education for him to make an informed decision as to whether nor not what the Education Department was doing was really worth it. After all, even if the Department of Education was abolished, it would save the average taxpayer less than two dollars a day, assuming taxes were cut by the full amount.
On the other hand, that $72 billion is concentrated on the incomes and activities of, at most, several hundreds of thousands of teachers, educators, school administrators, and textbook and school-supply providers. Those federal dollars represent a sizable portion of their administrative budgets, take-home pay, and business profits. The lobbying and voting incentives, therefore, will be heavily on the side of those who see financial and related gains from continuing and increasing federal spending on government-funded education.
Someone on the "liberal" side of the political spectrum might be equally critical of some of the line item spending in the Department of Defense budget, or on subsidies to corporate agri-businesses funded by the Department of Agriculture. But the same bias would work in these areas of government activity, as well, making it difficult to create the necessary political counterweights to lobby for the reduction or elimination of these federal programs.
The Defense Department's spending on warplanes and battleships, uniforms and boots, ammunition and weaponry, spying devices and unmanned drones represents hundreds of millions, sometimes billions of dollars to the various contractors who win and fulfill these military contracts. They have a strong incentive to lobby and influence for the greatest amount of defense-related spending, and to know every detail and potential rationale to demonstrate that such expenditures are in the "national interest" and why they are the right ones to get the taxpayer-funded procurement deals.
But how many taxpayers will have the motive and incentive to wade through all the (unclassified) details concerning the various parts of Defense Department spending to make an informed decision about how much defense spending America needs and of what type, considering that even if some programs were to be cut back or eliminated it would maybe result in a cut in his personal taxes by the equivalent of a few dollars a day. For most individual citizens their time and attention have a higher value in doing other things.
Because of this, government tends to grow in many directions in the form of concentrated benefits for special interest groups of all types at the expense of the general citizenry and taxpayers. The dispersed financial burden that falls on each taxpayer as his "contribution" to fund these programs nonetheless adds up, of course, to hundreds of billions, indeed trillions, of dollars a year of government spending.
Division of Labor and the Bias Toward Producer Interests
Since the time of Adam Smith in the eighteenth century, economists have emphasized the productive benefits from specialization through the division of labor. Each of us will be materially far better off if we specialize in what we are relatively more productive at doing, and then trade away our particular good or service for what others are offering to sell us. This is really the basis for all the material, scientific, intellectual, and cultural advancements of modern civilization.
But near the beginning of the twentieth century, British economist Philip Wicksteed pointed out, in his "The Common Sense of Political Economy" (1910), that such specialization also tends to create a bias against the open, competitive market in which people need to apply themselves in the most productive and cost-efficient ways. This was also strongly emphasized by the free market, German economist Wilhelm Röpke, in his work, "The Social Crisis of Our Time" (1942).
Once individuals have divided their labors, each becomes the producer of one product (or at most a small handful of things) and the consumer of all the multitudes of goods that others in society produce. But it is impossible for any of us to buy the goods that others offer to us as consumers, unless we have first succeeded in earning an income from what we are selling on the market in our own role as a producer.
Because of this, our interest as a producer always tends to take precedence over our role as a consumer, it has been argued. If I oppose some special interest group that is trying to get a subsidy from the government, I may save a dollar in my role as taxpayer and consumer (to use the earlier example from Pareto). But is it worth the cost in time, effort and expenditure to do so?
On the other hand, lobbying and otherwise influencing the legislative process to win some favor or privilege for myself and the others in my sector of the economy may produce better financial results. A protective tariff to limit foreign competition, for example, or a regulatory or licensing rule that restricts new domestic rivals can increase my income per year by tens of thousands of dollars, in my role as a producer.
The Democratic Dilemma and the Need to Limit Government
This is, in a sense, the modern democratic dilemma.
Over the last one hundred years, there have been fewer and fewer restraints on what is viewed as the proper role of government in society. The arena in which government may take an active part, both in the United States and around the world, grows ever wider. This widening arena of government has become the playground of special interest politicking from both the political "left" and "right" by those hoping to gain something through government intervention at the expense of others in society.
In 2013, there were over 12,000 registered lobbying groups in Washington, D.C. They officially spent more than $3.2 billion in 2013 to influence legislation on behalf of special interest groups from across the political spectrum, and reflecting virtually every sector of the U.S. economy. Just since this century began in 2001, annual spending by Washington-based lobbying groups (in real inflation-adjusted dollars) has increased by nearly 50 percent.
How do we break out of this dilemma, and return to limited government? Unfortunately, there are no electoral "quick fixes" or political sleights-of-hand that can reduce or eliminate the political paternalism and plunder land of the modern interventionist welfare state.
A Return to the Idea of Individual Rights Inviolable by Government
It requires a sea change in the philosophical, ethical and political-economic premises upon which American society operates. In other words, those of us who believe in and desire liberty and a free society must return to "first principles" and articulate the same to others.
We must hone our own understanding of the ideas and ideals upon which the United States was originally founded, and most especially as enunciated in the Declaration of Independence, where it was clearly and explicitly stated that freedom is inseparable from the recognition and defense of those inalienable rights to "life, liberty, and the pursuit of happiness" that are universally possessed by each and every individual.
In more modern times, Ayn Rand expressed this concisely and insightfully in her essay, "Man's Rights" (1963):
"If one wishes to advocate a free society – that is, capitalism – one must realize that its indispensible foundation is the principle of individual rights. If one wishes to uphold individual rights, one must realize that capitalism is the only system that can uphold and protect them.
"'Rights' are a moral concept . . . the concept preserves and protects individual morality in a social context – the link between the moral code of a man and the legal code of a society, between ethics and politics. Individual rights are the means of subordinating society to moral law . . .
"A 'right' is a moral principle defining and sanctioning a man's freedom of action in a social context. There is only one fundamental right . . . a man's right to his own life . . . The right to life is the source of all rights – and the right to property is their only implementation. Without property rights, no other rights are possible. Since man has to sustain his life by his own effort, the man who has no right to the product of his effort has no means of sustaining his life. The man who produces while others dispose of his product, is a slave . . .
"The United States regarded man as an end in himself, and society as a means to the peaceful, orderly, voluntary coexistence of individuals . . . and that the only moral purpose of a government is the protection of individual rights . . .
"To violate man's rights means to compel him to act against his own judgment, or to expropriate his values. Basically, there is only one way to do it: by the use of physical force. There are two potential violators of man's rights: the criminals and the government.
"The great achievement of the United States was to draw a distinction between the these two – by forbidding to the second [government] the legalized version of the activities of the first [private plunder]."
As long as people believe that "society" or the "democratic majority" or some empty notion of the "general welfare" comes before and is above the rights and interests of the peaceful individual, then there will be no breaking out of the trend towards the growing size and scope of government's controlling reach over all of us.
It must become "second nature," a "habit of the mind" for Americans in general to once more take it for granted that certain things are, well, "just not done." And more precisely, that it is the duty of government to protect the right of each individual to his life, liberty, and honestly acquired property, and not to violate that person's rights.
For it to become "second nature" and a "habit of the mind" again, people must rediscover the reason for and rightness of an inviolable "right" of each individual to his own life, which should not be sacrificed to some mystical and imagined "higher good" or any collective entity called "the nation," or the "state" or "society."
This is why, in answer to her own question, "Philosophy, Who Needs It?" Ayn Rand once argued that each of us does; we must become intelligent students of the theory of individual rights based on reason and reality.
Changing the Course of Human Events with Right Ideas
Enough of us have to have sufficiently done so that we can explain to others the essentials of such a theory of individual rights, and with sufficient persuasiveness that those other, too, come to see the rightness in them. Then it won't matter that most people never have an incentive to know enough to decide whether the U.S. Department of Education is spending too little or too much on a "common core" curriculum or whether the Defense Department has just the right number of aircraft or ocean vessels to "police the world."
Enough people will enter the voting booth and think as "second nature" and as a "habit of the mind," is this candidate for or against respect for and protection of individual rights? Does this party platform advocate or oppose private property and free market capitalism? Does this party and these candidates believe that the function of government is to defensively protect the citizens of the country from the clear and present dangers of foreign aggressors or do they wish to sacrifice the lives and fortunes of Americans in foreign adventures and wars?
Most people, if they see a person drop their wallet will pick it up and hand it back to them, because as "second nature" and "habit of the mind" they take for granted that taking what belongs to another is "wrong." For a free society to prevail it is necessary for many people to no longer give even a second thought that it is ethically right for them to run to government and take by political power what they would never think of stealing in their private interactions with others.
It is not that advocacy of liberty should become a "prejudice," that is, a preconceived idea not based on reasoned reflection or learned experience. A mere "faith" in freedom without a well-grounded set of reasons for advocating it will not sustain a free society in the long run.
What it does mean is the each generation must be encouraged to think about and learn the meaning of individual rights, and what they imply about the nature of man, human associations, and the role and place of a government in society.
If properly and effectively understood, it will become the generally accepted notion that, "Well, every thinking and reasonable person knows that . . . using the coercive power of the government to compel any man to sacrifice his life for others is as ethically not right as expecting others to be forced to sacrifice for him."
Then, as a matter of implied "first principles" it will be impossible for some in the society to successfully coerce others through the tools of political power, because it will be culturally counter to the general "habit of the mind" that liberty is too precious as both a moral and practical matter to be forgone for even the most attractive short-run gains from political paternalism and plunder.
It is neither an easy nor a quick task to change, in this sense, the "climate of opinion" about the appropriate moral order to sustain a free, prosperous and ethically healthy society. But we have no tools other than our minds and our reason and an understanding that it is in our own self-interests to try.
If enough of us take on this task the growth in government can be both halted and reversed. The world of coercive plunder can be replaced with a human community of free men pursuing mutually beneficial peaceful production. The democratic dilemma of every growing government will be brought to an end.
- See more at: http://www.thedailybell.com/editorials/35234/Richard-Ebeling-Why-Government-Grows-and-How-to-Reverse-It/#sthash.Yu0VoSmR.dpuf