Author Archives: Tom Mullen

Is the Patriot Act Unpatriotic?

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Republican presidential hopefuls Newt Gingrich and Ron Paul had an interesting exchange at the National Security Debate hosted by CNN on November 22nd. Not surprisingly, Gingrich supported the Patriot Act, going so far as to say that it should be “strengthened.” Paul argued that “the Patriot Act is unpatriotic,” because the legislation undermines American liberties. He thinks it should be abolished. Both men did well making their points and each got enthusiastic applause from their supporters. But who was right?

At first glance, it might have seemed as if Paul had stumbled into a “gotcha” by bringing up Timothy McVeigh. In supporting his assertion that one must never give up liberty for security, Paul argued that Timothy McVeigh, the terrorist who blew up a federal building in Oklahoma City in 1995, was prosecuted, convicted, and executed under the existing laws, without the “tools” that the Patriot Act provides to law enforcers. Gingrich replied:

“Timothy McVeigh succeeded. That’s the whole point. Timothy McVeigh killed a lot of Americans. I don’t want a law that says after we lose a major American city, we’re sure going to come and find you. I want a law that says, you try to take out an American city, we’re going to stop you.”

Paul responded:

“This is like saying we want a policeman in every house, a camera in every house, because we want to prevent child beating and wife beating. You can prevent crimes by becoming a police state. So, if you advocate the police state, yes, you can have safety and security and you might prevent a crime, but the crime then will be against the American people and against our freedoms and we will throw out so much of what our revolution was fought for. So don’t do it so carelessly.”

It is likely that uncommitted observers – those not passionately for Paul or Gingrich – thought that both men made good points and that the right answer is “somewhere in the middle.” To be moderate is always viewed as being more reasonable. But is that really true? I believe that the question debated here between Paul and Gingrich is a fundamental question and compromise is impossible. To use a well-worn but appropriate cliche, Gingrich wants America to cross the Rubicon. Once we do, there is no going back.

The crux of the matter is preemptive government. Not just preemptive war, but the ability of the government to act preemptively in any situation. Paul takes the libertarian position that is based upon the non-aggression principle. Government force may never be employed against anyone until that person has invaded the person or property of another. Gingrich takes the more Hobbesian-conservative position: if the government is not all-powerful, we will all be killed.

If “patriotic” means the love of one’s country’s ideals, the highest being liberty for Americans, then you have to agree with Paul. That’s because not only is non-aggression the libertarian position, it’s the founding principle underlying the Declaration of Independence and Bill of Rights. The meaning of the word “liberty” is to be free from coercion, which is free from other people initiating force against you. Once the government or anyone else is legally empowered to do so, rather than limited to responding with force in defense against an aggression that you’ve already committed, then liberty as Thomas Jefferson understood it is gone.

Non-aggression is the concept expressed in the statement that “no person shall be…deprived of life, liberty, or property, without due process of law.” In other words, the government can’t use force against you until it is not only asserted but proven that you have committed an aggression against the person or property of someone else.

If you’re reading this to mean that the government is powerless against individuals until after they’ve committed a crime, then you’re correct. That is the price of liberty and there really is no way to compromise it. Force must always be initiated by someone. To be free means that it is never initiated against the innocent, at least not with the endorsement of the law. A person is innocent until they actually commit a crime. You cannot prosecute someone for what might be in his mind – at least not in a free country. As Paul argued, once you throw out the principle of liberty, you have invited the police state, complete with ubiquitous surveillance, unwarranted searches, curfews, and the rest. It is astounding how much of it is already in place in a nation that calls itself “the land of the free.”

The obvious concern with this line of reasoning is that it would seem that to be free, one must set oneself up as a sitting duck for criminals and terrorists, powerless to resist them until it is too late. Ed Meese cited the “42 terrorists attacks, amied at the United States…thwarted since 9/11,” and went on to say, “Tools like the Patriot Act have been instrumental in finding and stopping terrorists.”

I don’t know how Meese arrived at that number, but it doesn’t jibe with reality. I suspect that it includes all of the entrapment schemes that have been perpetrated by federal law enforcement officers, whereby an undercover agent poses as a terrorist and approaches a mentally unstable person for the purpose of convincing him to participate in a phoney terrorist plot. Once the hapless “terrorist” agrees, the undercover agent arrests him and charges him with a crime.

All of the attempted terrorist attacks that the American public know about since 9/11 have defeated the Patriot Act and other security “tools” insituted since that crime was committed. The shoe bomber and the underwear bomber were both overpowered by private citizens acting in their own defense, after the would be terrorists had defeated the security measures within the Patriot Act and the TSA. Even on 9/11, with the federal government already in charge of security, albeit without the “tools” of the Patriot Act, the only crime that was prevented was the one that would have been perpetrated using Flight 93. Again, it was private citizens acting in their own defense and defense of their neighbors that thwarted the attack. While they were unsuccessful in defending their own lives, they prevented the loss of many, many more.

This illustrates another fundamental element of liberty – the right of each person to be allowed to provide for their own defense. The right and duty of each individual to defend themselves to the best of their ability replaces absolute power in the hands of the government. Consistent with this idea, Paul has been a staunch advocate of the 2nd amendment, while Gingrich, although he supports the right to bear arms in rhetoric, also voted for the Lautenburg Gun Ban and the Criminal Safezones Act, sponsored by Nancy Pelosi.

Gingrich tries to qualify his position on the Patriot Act by drawing a conceptual line between criminal law enforcement and national security. He says that “criminal law – the government should be on defense and you should be innocent until proven guilty. National security – the government should have many more tools in order to save our lives.”

In other words, if the government decides that “national security” is threatened, you are  no longer innocent until proven guilty. He also says that Americans must “build an honest understanding that all of us will be in danger for the rest of our lives.”

Do the math.

This exchange between Paul and Gingrich represents a fundamental choice that the American people have to make. They can take personal responsibility for their security and take power back from the federal government or they can hand unchecked power to the federal government along with their liberty. There is no “centrist” or “moderate” position, because once the principle is conceded, liberty is gone.

As Benjamin Franklin warned, the choice between liberty and security is a false one. No, there were not nuclear weapons in 1755, but to think that the existence of nuclear weapons changes the principle is counterintuitive. Franklin spoke those words in 1755 because the same choice existed then as now. Those who sacrifice liberty in the hopes of greater security deserve neither and will get neither. The most immediate threat to one’s security is always the closest one – the government itself.

In deciding who was right in this debate, Americans are really deciding whether liberty is something they cherish or whether Franklin, Jefferson, Adams and the rest were wrong. If they were wrong or if we’ve decided that there is something fundamentally different today that trumps those timeless principles, let’s at least dispense with the notion that we live in the “land of the free.” At the next sporting event, let the singer end with “o’er the land of the secure, and the home of the safe.” It may not be pleasing to the ear, but neither is Gingrich’s plan for a “secure” America.

Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

© Thomas Mullen 2011

What is Greed?

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Whether you are liberal, conservative, libertarian, or none of the above, it is hard not to feel some sympathy for the “Occupiers.” Even if do not agree with them on every issue, there is something very American about a grassroots movement to “fight the man” and protest the existing order. After all, that is how the united States of America were born. As with the Tea Party, it is refreshing to see a group of Americans objecting to something about the sad state of our republic, rather than indifferently accepting each new depridation like sheep awaiting the slaughter.

It is in this spirit that I take issue with one of the central themes of the OWS movement: the fight against “greed.” Here is one area where I believe that the Occupiers are chasing a phantom. Greed is the government’s favorite hobgoblin. Any politician with a bad record, skeleton’s in his closet, or some other threat to his phoney baloney job can invoke this loosely defined vice and count on some level of support in his time of need (for votes). But what is greed and how can one fight it?

That is two questions and one cannot answer the second before resolving the first. I believe that if you asked any 10 people at random for their definition of greed, you would get 10 different answers. The first answer is usually “a desire to have more than one needs.” However, this doesn’t hold up very well. It is obvious that all people desire more than they need. Without accumulating more wealth than what is minimally needed for survival, no human being can read or write a book, create a work of art, or perform an act of charity. In fact, none of what we commonly call “culture” would be possible if human beings did not accumulate the excess wealth that affords them the leisure time to create art, literature, charitable organizations, or the other blessings of society.

To this objection, proponents of the “more than one needs” definition will immediately clarify. “No, I meant desiring far more than one needs.” This clarification is just as problematic. How much is too much? Who sets the limit? At what point has one changed from being a hard worker to being “greedy?” Does that limit change from person to person? Is there a greed-o-meter out there that can set a dollar amount?

If one accepts this definition of greed, the solution to the problem is even murkier than the definition itself. Exactly what is to be done about the fact that “the 1% cares only about profits and not about the  rest of society?” Should businesses take specific actions to cut their profits? What are those actions? The great majority of all new businesses fail within their first year, even when their sole motivation is profit. How is an entrepreneur to know for sure that his business will succeed at all, much less make “excessive” profits? What action can he take to counteract this? Should he cease to innovate, improve efficiencies, lower costs for consumers, improve the quality and features  of his products, or employ people? These are the things that entrepreneurs do to make profits. Specifically which one is “bad” for the 99%?

To be fair, many of the comments on the OWS Demands page are more specific. As I’ve said before, they are definitely in the ball park when they finger the financial sector. However, comments like this one indicate that they haven’t yet found their seats:

“The moneyed elite of our society has changed from being apart of the team that built an economy that raised the lives of all men with ample profits for themselves to a Gambler, who only wants to keep score through the accumulation of money, ever screaming for more profits for themselves at the expense of the people they pretend to serve.”

This is a popular theme and not just among OWS supporters. The accusation that economic players in the financial sector took excessive risks that harmed people other than themselves is almost universally accepted, even by conservatives. Remember George W. Bush’s famous pronouncement, “Wall Street got drunk.”

However, the statement that the “gamblers” make “profits for themselves at the expense of the people they pretend to serve” just doesn’t compute. Wall Street did take excessive risks during the boom that predeceded the bust. They did indeed take those risks in the hope of making greater profits. However, those profits would not have been made at the expense of the people they serve. The people they serve would have made those profits, too, on their own money. They voluntarily gave their money to the financial sector in the hopes that the “gamblers” would win them a return on their investment. Had all gone well, the 99% would have realized a huge return. It is fashionable to claim that financiers make money for producing nothing, but this isn’t true. They make money from their ability to make sound investments and the willingness of other people to pay them to do if for them.

So what can be done about this problem? How do politicians or their constituents, who know nothing about investing (which is the whole reason that they give their money to financiers in the first place), make rules for how much risk investors are allowed to take? Do those rules apply to their own investments? Without some risk, there are no new businesses, no new jobs, no economic growth. How much risk is too much and who decides? The investors themselves or people who know nothing about investing? If investors are not allowed to take whatever risks they deem prudent and the result is that the economy in America dies, will the 99% take responsibility for that? We know that the politicians won’t.

All of these seemingly insoluble dilemmas spring from the initial premise about greed. As long as greed is defined in terms of how much wealth one desires to accumulate, the conclusions that one draws from that premise will always be absurd. The amount of wealth one accumulates or desires to accumulate is immaterial. Instead, it is the means by which one wishes to acquire it that is vital.

If you change your definition of greed from “desiring more than one needs” to “desiring more than one has earned,” then all of the contradictions and ambiguities disappear. Of course, we are immediately begging the question of how to define “earned,” but that is a simple matter. One has earned wealth if one has acquired it without initiating the use of force against anyone else. Under this definition, money given to someone as a charitable contribution qualifies as earned just as profits made from selling products do. In this scenario, the amount of wealth one is able to accumulate has a natural limit – the amount that others are willing to pay for one’s goods or services. This eliminates those troublesome questions about how much is too much in terms of profit.

To be greedy, then, is not the desire to accumulate more wealth than one needs, but the desire to accumulate more than others are willing to pay you for your services. For in order to do that, you must forcibly take the money that they would not willingly give. There is only one institution in all of society that can facilitate this legally: government.

Thus, if Person A accumulates $1 million by selling 100,000 units of his product at $10 per unit, he is not being greedy. He has made an equitable exchange with his fellow human beings: $1 million in products for $1 million in money. In this scenario, he and the 99% are square. Each has benefitted equally from the exchange. We know that he has earned his $1 million because the consumers set the price of his products with their voluntary decision to buy.

Now consider Person B, who wishes to accumulate that same $1 million through government employment, subsidies or privileges. No one voluntarily buys his product. The fact that the government has to either subsidize Person B or protect him from competition means that he is trying to sell something that people would not otherwise buy at his asking price. At best, Person B has sold something at a higher price than people are willing to pay. At worst he has sold something that his fellow humans don’t want at all, but are forced to purchase by the government.

Either way, Person B is greedy – he wishes to accumulate wealth beyond what people are willing to pay him voluntarily. In other words, he is willing to commit armed theft against his neighbors. As you can see, Person B may be far more greedy in his desire for even $50,000 than Person A is in his desire for $100 million, if Person B plans to obtain it by force and Person A means to obtain it through voluntary exchange.

OWS is right to want to stamp out greed, but they aren’t defining it correctly. Since Woodrow Wilson, progressives have been making the same fundamental error in failing to distinguish between legitimately acquired wealth and wealth acquired through government force. It is the latter that OWS should look to stamp out, rather than indiscriminately condemning anyone who becomes wealthy. The most effective way to fight greed by its true definition is to take the Occupation to Washington, D.C., where the power that the greedy utilize resides.

Imagine a world in which every individual has an equal chance to be a millionaire, but only if he offers his fellow individuals $1 million in benefits, with the 99% deciding for themselves how much they are willing to pay. That is a world without greed. That is what we used to call “freedom.”

What If Iran…

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As another “holiday” weekend draws to a close, Americans have again been bombarded with exhortations to thank the U.S. military establishment for their supposed freedom. This theme pervades all aspects of American culture. Uniformed military personnel are granted privileges on airlines, discounts at restaurants, hotels, and other business establishments. This past summer, I attended my daughter’s dance recital at the Tampa Performing Arts Center. At the midpoint of the performance, men in uniform were rolled out onto the stage and a long tribute follwed, including patriotic-sounding music and a special dance routine, with a pair of army boots spotlighted at the front of the stage. The militarization of American culture is inescapable. That no one seems to recognize the similarity between this cultural worship of the military and the same by another militarized society of not so long ago is truly horrifying.

It may not be fashionable to say so, but I am sick and tired of being told to thank the military. The idea that thanks is owed grows out of the inability of most Americans to recognize simple cause and effect relationships. As I’ve said before, Americans seem to be unwilling to ask themselves the most basic questions about precisely how U.S. wars have made them freer. What are the specific results that the U.S. military has either achieved or prevented in the past 70 years that have led to this supposed increase in freedom? How would we be less free if the U.S. government did not fight one or more of those wars? While I have dealt with this at length before, let me summarize briefly:

1. U.S. citizens are not freer because the U.S. military invaded Korea.

2. U.S. citizens are not freer because the U.S. military invaded Viet Nam.

3. U.S. citizens are not freer because the U.S. military invaded Grenada (does anyone really take this one seriously?).

4. U.S. citizens are not freer because the U.S. military invaded Somalia.

5. U.S. citizens are not freer because the U.S. military invaded Kuwait.

6. U.S. citizens are not freer because the U.S. military invaded Iraq.

7. U.S. citizens are not freer because the U.S. military invaded Afghanistan.

Now, I know that these statements are at odds with conventional wisdom and will be regarded as unpatriotic by conservatives and even most liberals. However, after completing the required ad hominem attack upon the author, I challenge anyone who disagrees to refute these statements logically, providing a reasonable argument that there is some cause-effect relationship between the cited wars and the relative freedom of U.S. citizens. It will be particularly difficult to make the argument in the case of Viet Nam, where the objective (to prevent North Viet Nam from taking over South Viet Nam) was not achieved. U.S. citizens should have been less free as a result. Were they? How?

Cause and effect. It is the first and most basic natural law of the universe. It is the first concept that human beings must master before they can begin to undertsand the world around them. This understanding is imperative when performing the simplest task, like crossing the street. An inability to understand the cause and effect relationships between drivers and pedestrians can get you killed. The danger is exponentially greater when considering spending hundreds of billions of dollars to send hundreds of thousands of armed men to some far-off land.

The so-called debate on Iran provides yet another example of the inability of most Americans to recognize cause and effect relationships. Assuming that the Iranian government is attempting to build a nuclear weapon, the government-media complex has presented a narrow range of options from which Americans are expected to choose, with all others off the table. They are 1. Bomb or invade Iran now, before they get a nuclear weapon or 2. Impose economic sanctions (i.e., a military blockade/act of war) and bomb or invade them later. All of this is predicated upon the assumption that Iran will immediately use this nuclear weapon the minute they build it. While even the most hawkish conservatives would probably concede that there is not much chance that Iran will develop an inter-continental ballistic missile capable of striking the U.S. anytime soon, they cite the possibility that Iran may use this weapon against Israel.

This is where Americans don’t seem to be able to call upon the most basic critical thinking skills. Let’s assume that the hawks are correct. Iran develops a nuclear weapon. Let’s assume that one sunny morning, they decide to fire it. What would happen next?

Israel has approximately 300 nuclear weapons in its arsenal and the most well-trained and equipped military establishment in the Middle East. Do the math. The idea that Iran would preemptively nuke Israel, resulting in its complete destruction, is preposterous. Yet, most American citizens either refuse or are incapable of engaging in this simple analysis and instead give their tacit or enthusiastic support to whatever destructive foreign policy  decisions their leaders make.

There is the argument that Iran is led by a government that is not reasonable and therefore would not consider its inevitable destruction before attacking Israel with a nuclear weapon. Of course, “not reasonable” is a label that would fit any government like an old pair of shoes , but is Iran’s government less reasonable than any other? Let’s consider a few facts.

Iran has not invaded another country in over 200 years. The last overt aggressive action that the Iranian government has taken against another nation is the taking of hostages from the U.S. embassy in 1979 (the Iran-Iraq War was a defensive one for Iran). If asked why the Iranians did this, I’m sure most politicians would respond with the “they hate us for our freedom” mantra. Unfortunately, most Americans are willing to believe that the leaders of foreign nations have the same motivations as the villains in comic books.

Assuming that the hostages were taken because the Iranians “hate us for our freedom,” a few questions should immediately spring to mind. Why did they not take hostages from the German Embassy, or the French Embassy, or the Dutch Embassy? Were those countries so much less free than the United States that the Iranians would not have similar hatred toward them? Americans are asked to swallow this nonsense without question and ignore the Iranians’ stated reason for the kidnapping: the U.S.-led overthrow of the democratically-elected Iranian government and subsequent installation and decades-long support of the brutal Shah.

U.S. taxpayers are now being asked to once again abandon cause-effect reasoning in order to support the next steps on the path to war with Iran. They are asked to assume that somehow the results of a military conflict with Iran would be different from the results of the military conflicts in Iraq and Afganistan. After 10 years and trillions of dollars, not to mention lost American and civilian lives, absolutely nothing has been accomplished by either of those wars. Neither has America been rendered freer as a result of them. On the contrary, Americans now live in what any lucid person would describe as an Orwellian police state, complete with electronic surveillance, warrantless searches and seizures, and summary execution of U.S. citizens – without trial or even indictment – at the order of an American dictator. These have been the results of the “War on Terror.” No sane person should expect anything but more of the same if it is expanded further.

Ron Paul was far too polite in responding to the “What if Iran…” question. It is time for Americans to stop worshipping their military establishment and start thinking critically about these issues. Whether they develop a nuclear weapon or not (which is their right as much as any sovereign nation’s), Iran is never going to initiate war with it. What is certain is that if the U.S. government is allowed to lead its country into another destructive war, Americans will be less free, further in debt, and more hated around the world than they are now. The last ten years should be all the proof we need.

Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

© Thomas Mullen 2011

OWS and the Tea Party: In the Ball Park But Haven’t Found Their Seats

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As the 2012 elections approach, there is now a left wing protest movement to mirror the right wing Tea Party. Occupy Wall Street (OWS) and its many offshoots claims to represent “the 99%” of Americans who are not among the richest 1%. Like the Tea Party, OWS sees economic catastrophe ahead if America’s economic system is not fundamentally changed. Unlike the Tea Party, which places the blame for America’s economic woes on the doorstep of politicians, OWS points the finger squarely at Wall Street – and anyone else who makes enough money to qualify for a “1%” membership card.

It is actually refreshing to see Americans from both sides of the political spectrum interested enough to actually object to something. Whether marching around and carrying signs actually accomplishes anything is debatable. However, the Tea Party has already shown that political careers can be made or ended when enough people get both fed up and organized. While OWS is not as politically organized as the Tea Party was at this point in 2009, it has already made it over the toughest hurdle – getting a critical mass of people off the couch and out into the streets. As labor unions and other left wing special interests get more involved, it is likely that a bona fide political movement will emerge from the present confusion. Like the Tea Party, OWS might even change a few seats on their side of the aisle. But what then?

If the results of the Tea Party Congress are any indication, the answer to that question is “nothing.” Yes, the new Congress made some symbolic statements, like requiring the members to read the Constitution aloud during the opening session. But when it came to actually advancing their supposed agenda in a substantive way – cutting the size of the federal government and reigning in deficits – not much happened. A proposal emerged to cut $100 billion out of the $1.6 trillion deficit, which would have been meaningless even if it passed. Beyond that, it’s been business as usual inside  the Capitol, with Congressmen from both sides of the aisle continuing to spend money the federal government doesn’t have and kicking the can a  little further down the road.

Left wing Americans should already know the electoral process is unlikely to produce substantive change. As the third year of Obama’s presidency draws to a close, there is almost nothing of substance either his supporters or his critics can point to that differentiates his presidency from that of George W. Bush. Both championed and got passed an expansion of government involvement in the health care system that costs taxpayers about $100 billion per year directly and likely causes distoritions in the health care market that are far more costly than that. Both started a few new wars in the Middle East. Both expanded the federal government’s power to spy on its own citizens. Both passed “sweeping regulatory reforms” that further crippled America’s already weak economy. Both expanded executive power unconstitutionally. Both set new precedents in attacking the Bill of Rights.

But the similarity between the two that should resonate most  with OWS supporters is this: both filled their cabinets with Wall Street and corporate insiders and never made a move those special interests didn’t like. Sure, Obama made some populist, anti-business statements early in his presidency, but when it came to “Change” in the healthcare system, his program turned out to be a half trillion pear year handout to the health insurance industry. That wasn’t exactly what the true believers had in mind, but it was business as usual for corporate-owned Washington.

In short, two hugely trumpeted “revolutions” in American politics – a leftwing  one in 2008 and a right-wing one in 2010 – have failed to move the needle one degree in Washinton, D.C. A lot of articles were written and a lot of television talk shows were provided with material about both, but absolutely nothing has changed. Sooner or later, one has to answer the question: Why not?

The answer is even the genuine grassroots members from both the left and the right don’t understand what is ailing America. They know something is wrong, but decades of government propaganda bolstered by shoddy education have left most Americans unequipped to figureout what it is. In fact, both the Tea Party and OWS share the same fundamental misconceptions about The Problem.

Both the Tea Party and OWS believe Republican presidents, especially Ronald Reagan, had somehow created a laissez faire capitalist economy during their presidencies. The Tea Partiers believe America must get back to Reaganomics, while OWS believes it was the root cause of today’s problems. Both of them are wrong. Neither Ronald Reagan nor George W. Bush signed one bill that substantively made the American economy more laissez faire. In fact, Bush actually signed Sarbanes-Oxley, which he himself called “the most sweeping regulatory reform since the New Deal.” Even what the media called “deregulation” during the Reagan years was mostly regulatory tweaks that were passed under Carter. Tom Woods covers this in detail in Rollback, so I won’t attempt to reconstruct the whole argument here. In short, “deregulation” never happened. It was just one huge, Jedi mind trick, similar to “hope and change.”

That brings us to misconception number two: regulation itself. Both movements misunderstand the relationship between our present corporate economy and government regulation. The Tea Party believes getting rid of regulations as Reagan supposedly did would “get the government out of the way” of America’s corporations, resulting in huge gains in productivity and employment. OWS believes more regulations will reign in “corporate greed” and protect the little guy from those same rapacious corporations. Again, both of them are wrong.

A truly unregulated free market would not result in a few, large corporations controlling every economic sector. Nor would it result in most of society’s wealth being concentrated within a small percentage of the population. While no one alive has ever lived under such a system in terms of the entire economy, we have seen it in a particular sector within the last two decades. As Bill Bonner pointed out, the high tech industry existed for a time as an unregulated free market. Did this result in entrenched corporations getting bigger and concentrating even more wealth in the hands of a few? Absolutely not. As Bonner reminds us, “They created an entirely new industry…with new companies nobody had ever heard of. And then, they destroyed some of the biggest businesses in America.”

Government regulation creates barriers to entry for new firms and dampens innovation. In other words, it insulates entrenched corporations from competition, causing the very consolidation and concentration of wealth OWS objects to. That’s why established corporations never object to new regulations. Why should they? They end up writing the regulations themselves with one thing in mind – protect their position from the competition that would occur in a free market. That’s what makes left wing support for increased government regulation so tragically ironic. It’s like they are rushing to the scene of a fire with a sistern full of gasoline.

The Tea Party purports to favor less government regulation, but they have no idea what the results would be. They, too, do not understand the difference between our present corporatist system and a free market. Were the economy truly deregulated, most of the corporate giants they hold up as symbolic of the free market would be gone. Only those which could deliver better products at lower prices in the face of unrelenting competition would survive – and only for as long as they could continue to do so. Upward mobility would return. Large fortunes would again be made by “college drop-outs, computer nerds, products of teenage mothers and broken marriages” (Bonner again), just as the misnamed “robber barons” largely came from the ranks of the poor. Conservatives didn’t like that in the 19th century – and they might not like it now, either. But that’s what the free market does. It rewards innovation, productivity, and achievement, regardless of the social pedigree of the innovator.

Neither OWS nor the Tea Party recognizes how economically destructive the gargantuan U.S. military establishment is. There were some left wing protests against the Iraq War during the Bush years, but that is a non-issue for OWS. Now that there is a Democrat running the empire, the left seems to have made its peace with war. The left never objected to the continuation of the decades-long occupations of Europe, Japan, Korea, or the 130 or so other countries the U.S. government currently has troops in. In purely economic terms, those programs dwarf the active wars.

Of course, support for this trillion-dollar-a-year abomination is a key plank of the Tea Party movement, which is against taking money from one American and using it to buy healthcare for another American, but has no problem taking money from one American and using to (supposedly) buy “freedom” for people in other countries. Not only is this direct transfer of wealth draining America of scarce resources, but it has completely skewed what’s left of American manufacturing towards producing products that don’t increase wealth. Wealth is only increased when products are produced that people voluntarily buy. No one voluntarily buys weapons or the services of military personnel. And those resources in turn don’t produce anything at all.

Both the left and the right view imperialism as somehow part and parcel of laissez faire capitalism. Nothing could be further from the truth. The foundation of capitalism is voluntary exchange. There is nothing a military force can do under the guise of “protecting America’s vital interests” or “opening up markets for American companies” that has anything to do with capitalism or voluntary exchange. Even if an army really did influence people in other countries to trade with American companies, that would not be capitalism any more than Fannie Mae or Freddie Mac influencing people to take out loans was capitalism. When it’s not voluntary, it’s not a free market. Whatever its true purpose is (and there are a lot of theories), the U.S. government’s massive military establishment is just another large, bankrupt government program.

However, the most harmful misconception OWS and the Tea Party share is not really a misconception at all. It is the failure to recognize the most destructive element in the American economy – the Federal Reserve. The failure of either movement to make the Federal Reserve a priority or even acknowledge its existence explains many of the other misconceptions. Both the artificial booms each attribute to their presidents of choice – Clinton for liberals, Reagan for conservatives- and the inevitable busts each blame on  presidents of the other party- Carter and Obama for conservatives, Bush 1 and Bush 2 for liberals – can all be traced back to the predicable results of Federal Reserve monetary policy. Even if all of the other economic interventions were eliminated and this one intervention were left in place, most of the economic problem would still exist.

The Tea Party claims to oppose Obama’s “socialism,” but fails to see the Federal Reserve as a fundamentally socialist institution. Its stated purpose is to transfer wealth from one individual or group to another at the direction of central economic planners. It doesn’t get much more socialist than that. A few conservatives might object to the way a particular Fed chairman conducts the business of the Fed, but almost none object to the Fed itself. Yet compared to the transfer of wealth that occurs when the Fed inflates the currency, all of the U.S. government’s welfare programs combined pale in comparison. Since the Fed transfers wealth to Wall Street and corporate America, one might understand their reluctance to oppose that aspect of it. But what about a small group of government hacks attempting to direct the entire economy? If that’s not “socialism,” then what is?

OWS is similarly disinterested in the Federal Reserve, even though it exists to transfer wealth from the 99% to the 1%. For both groups, ignorance is probably the majority of the problem. The Fed has managed to stay out of the spotlight for most of the past century, taking the credit for supposed recoveries and avoiding all blame for the business cycle itself. Yet, even if it did what it purported to do, it should still be Public Enemy No. 1 to both OWS and the Tea Party. Until most Americans understand how destructive this institution is, no amount of “reform” is going to make our economic problems go away.

So, the next election will be influenced by two grassroots movements committed to solving America’s problems. One says the problem is government. They are right. The other says it is corporations and the financial elite. They are also right. As a friend of mine likes to say, both groups “are in the ball park, but they haven’t found their seat.” One can only hope for a moment of clarity on both sides. If they could only see things as they really are, they’d be marching side by side.

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

Perry vs. Romney? What Do Conservatives Really Want?

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According to the left-leaning media and punditry, the race for the Republican nomination for president is dominated by right wing extremism. Positions as frightening as phasing out Medicare and getting rid of the Department of Education are being bandied about, with the only solace for liberals being the knowledge that those positions will moderate once the primaries are over and the Republican candidate tries to appeal to voters beyond the Republican base.

Supposedly, Rick Perry and Mitt Romney represent this “hard shift to the right” within the Republican Party, which is why they are in first and second place, respectively, in national polls. However, given the histories of these two men and their present stand on the issues, that narrative just doesn’t jibe with reality. In fact, if average conservative Americans really believe what they say they believe, it is difficult to figure out how any of them could cast a vote for Perry or Romney.

By “average conservative Americans,” I mean those people not in public office and unconnected to the political machine who vote in polls this early in the election cycle. Everyone knows these people. We work with them, socialize with them, live with them. Unlike most people we know, they feel strongly about politics and identify themselves as conservatives. They care enough to follow the nomination races over a year before the general election and can articulate an opinion, as opposed to the majority of Americans who will say something like “I haven’t made up my mind yet” to cover for the fact that they have no idea what any of the candidates in either party stand for.

I think that most would agree that this group of people generally say they believe in small government, free enterprise, traditional family and religious values, and (let’s face it) unqualified worship of the U.S. military, no matter how it is employed. These are the things that conservatives say that they are for.

It is not so much what they are for as what they are against that brought the Republican Party back from the brink in 2010. The Tea-powered victory in 2010 rode a wave of conservative backlash against Barack Obama and his socialist agenda of big government healthcare, environmentalism, and wealth redistribution. More than anything else, it was Obamacare that served as the rallying point. Anyone who attended a Tea Party event can attest to the fact that the overwhelming majority of the signs and speeches (when not glorifying the military) represented opposition to this evil, Marxist scheme. If only Obamacare could be repealed, America would return to the capitalist paradise
that it was under George W. Bush.

With that in mind, one has to ask how Mitt Romney is even in the race. After all, it was the Massachusetts healthcare plan supported and signed into law by Governor Romney that inspired Obamacare in the first place. Despite Romney’s insistence that there are “major differences” between the Massachusetts plan and Obama’s, the only tangible difference that he has been able to cite is that his plan was run at the state level and not forced on every American citizen as a “one-size fits all solution.” Other than that, I don’t believe that Romney or anyone else has been able to point out a fundamental difference between Romneycare and Obamacare.

So that’s what all of the noise was about in 2010? The Tea Party rallies, the signs, the angry town hall meetings? I thought that conservatives objected to the fundamental socialist principles embodied in Obamacare: the central economic planning, the government-enforced mandate, and the wealth redistribution. I don’t remember signs saying “let the states run Obamacare.” It was get rid of government-run healthcare (except for Medicare) or we’ll be living in the 1960’s-era Soviet Union before the next election.

“People can change,” some supporters might tell you, and that is certainly true. But has Romney really changed? As of this writing, the issues page on his website says, “States and private markets, not the federal government, hold the key to improving our health care system.”

Not just “private markets,” but “states and private markets” hold the key. It would seem that Romney hasn’t changed his mind at all about his state-run, big government socialist healthcare program. If Romney’s only defense of his plan is that it was run at the state level rather than the national level, then average American conservatives should be automatically vetoing his candidacy on Romneycare alone. Yet Romney led the race until Rick Perry entered, and is still a solid second.

That brings us to Rick Perry. He has also convinced his conservative supporters that he has changed his views since previously being a Democrat. That is certainly not unprecedented. Conservative icon Ronald Reagan was once a Democrat before becoming what most conservatives perceive as the quintessential conservative president. However, Perry wasn’t just a Democrat.

If there is any one person in second place to Obama as the arch-villain in conservative mythology, it is Al Gore, (or Algore as Rush Limbaugh refers to him). Gore is the undisputed leader of the liberal environmentalist movement, which lays the blame for the global warming that conservatives don’t even believe exists at the feet of free enterprise. If Obamacare was the peanut butter of the present administration’s  platform in 2008, then Cap and Trade was the jelly. Conservatives wanted no part of either, and see Gore as every bit the evil Marxist that Obama is because of his leadership on this issue.

Believe it or not, it was this Conservative Public Enemy No. 2 that Perry supported as a Democrat in the 1988 primaries. He not only supported Gore, but actually chaired his campaign in Texas. He could have supported the eventual Democratic nominee, Michael Dukakis, whose most striking difference to Gore was his refusal to bow to environmental interests at the expense of economic development, as documented in the New York Times. In other words, even as a Democrat, Perry backed a radical environmentalist extremist instead of a somewhat more moderate centrist.

Again, people can change their minds, but has Perry changed his? Does he oppose Cap and Trade on principle, as most conservatives say they do? Apparently he does not, according to his actions as governor. As with Romney on healthcare, Perry is completely supportive of a policy that conservatives say they are fundamentally opposed to, as long as the evil is perpetrated by the state governments rather than the feds. The chief difference between the Cap and Trade imposed on Texans and that imposed by the federal government seems to be that Texas measures emissions limits on the whole facility while the EPA measures it on every smokestack. Is that the sole objection that average conservatives have to Al Gore and his global warming (excuse me, climate change) agenda?

As with Romney, Perry’s support for a key plank in the socialist-liberal agenda should be a deal killer for anyone remotely describing themselves as conservative. Yet not only has Perry been able to sidestep any criticism on this position, he’s currently leading the nomination race by a comfortable margin.

So, what do conservatives really want? If these polls are any indication, they want a good-looking former governor with a suspiciously liberal background who is good at spouting hardcore conservative rhetoric and then doing exactly the opposite once he gets into office. In other words, they want Ronald Reagan, the former New Deal Democrat who suddenly became a libertarian-leaning ultra-conservative and rode that rhetoric into the White House, where he promptly doubled the size and power of the federal government, raising taxes six times and further empowering the Department of Education that he promised to abolish.

It’s not as if there are not alternatives. Ron Paul, currently running third, actually believes in the principles conservatives say they hold dear and has voted consistently according to them as a 12-term Congressman. He is on the record vowing to get rid of the Department of Education, along with Energy, Commerce, and most of the others. You won’t hear anything like that from Romney or Perry, yet it’s an uphill battle for Paul, supposedly because of his foreign policy positions.

But what about Herman Cain and Gary Johnson? As a libertarian, I don’t buy into the “government should be run like a business” philosophy, but most conservatives do. Both Cain and Johnson take this approach, with Johnson promising to deliver a balanced budget proposal in his first year, including abolishing the Department of Education. Yet these two candidates aren’t even on the map with conservative voters.

With several nationally-televised debates completed and plenty more coming, conservative voters have plenty of alternatives in selecting a candidate. According to their most fiercely-held beliefs, conservatives should be voting “anybody but Perry or Romney,” yet those two lead the race. One has to wonder where all of these supposed “right wing extremists” are hiding.

Contrary to the liberal media narrative that the Republican Party has shifted hard to the right and is fielding “extremist” candidates to run against Obama, the primary race looks more like business as usual. Former liberals and big government conservatives are railing against government to energize their conservative supporters, while at the same time openly supporting cornerstones of the liberal agenda. If Perry and Romney are an indication of where conservative voters are headed in 2012, then the Democrats have nothing to worry about, even if Obama loses.

Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

© Thomas Mullen 2011

What is a Job?

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The usual chatter has begun following President Obama’s Sept. 8 call for a $417 billion government spending package designed to stimulate economic growth, create jobs, and improve the nation’s crumbling infrastructure. As always, the commentary, both pro and con, focuses on speculation about the potential results of the program.

Will this latest stimulus money actually reach “shovel-ready projects,” or will it again disappear down the black hole of state subsidies for Medicaid and education? How many jobs will the program actually create and what happens to those jobs when the program is over?
There is never any clear winner in debates like this. While the future is still unknown, Republicans will predict failure while Democrats will predict success. Once the program is over, Republicans will pronounce failure while Democrats will declare victory. The retrospective debate about the results of the program will go on until the media moves on to something else, only to be resurrected again at election time when Republicans will characterize the program as another “bridge to nowhere” while the Democrats will claim that it saved the economy.

There is rarely a definitive answer to questions about the results of government action, even after the fact. This may be one reason why most government programs never really end. The answers are much less ambiguous and elusive when the discussion is shifted from results to rights. To do that, we must answer a previous question.

What is a job?

One might assume everyone knows the answer to this apparently simple question, but I doubt it. In fact, judging by what politicians, media, and even friends and neighbors have to say about jobs and unemployment, I’m convinced almost no one in America today understands what a job really is.
As I’ve said before, a job is a transaction between a buyer and a seller. The employer is the buyer and the employee the seller, selling his services to the employer for a mutually agreed upon price. This is a voluntary transaction for both parties, just like the buying and selling of lawn mowers or breakfast cereal. The buyer offers to purchase services at the price he can afford. The seller decides whether to accept those terms or not. Both parties are free to decide not to go through with the sale at any time. Unless a specific term of employment has been agreed to, both parties are also free to cease doing business at any time. The employee can quit the job (refuse to continue selling the service) and the employer can terminate employment (refuse to continue purchasing the service).

There is only one way in which a purchaser of services can continue to employ people on an ongoing basis. The services provided by the sellers must produce products that make a profit. If the firm loses money, then the employer must increase his sales or lower his operating costs. The latter solution most often means purchasing fewer services (layoffs).

The voluntary association between buyer and seller of services (the employment contract) depends upon another voluntary association between the firm and its customers. The firm’s customers must choose to pay more for the firms products than the cost of producing them, including labor, material, rent, administration, and all other costs of production. It is that choice by customers that creates a market value for the products, for the market value is merely the amount of money the highest bidder will voluntarily pay. If no one was willing to buy the firm’s products at any price, then those products would have a market value of zero.

When the opportunity exists to sell products at a higher price than the cost of producing them, it typically attracts more than one firm, and those firms compete with each other for the customers willing to buy their products. Thus, employment opportunities become abundant in that particular industry, as more and more firms enter the market to take advantage of the opportunity.

Before the first product of any of these firms is produced, the owners must purchase the labor, materials, production facilities, equipment, and other capital goods necessary to make those first and all subsequent products. The owners purchase these capital goods and labor with savings – which are the result of consuming less than they produced over a period of time in the past. The only reason they choose to invest these savings into the venture is the opportunity for profits. Without that opportunity, they would consume their savings in the present or hold them for security against future misfortune instead of risking losing them by starting the new firm.

As long as there are customers willing to buy the products the firm produces, the model is self-sustaining and productive. From a societal view, both the owners and employees of the firm and the customers are adding more goods and services to society. Remember, the customers are only able to buy the firm’s products because of the products they’ve produced and sold to their customers, including employers. Just like the firm, they must produce products other people are willing to buy voluntarily. This is what gives them their purchasing power.

There is one word that sums up the entire process of economic growth and job creation: choice. The market price of products, the wage levels that can be sustained in the production of those products, the number of people that can be employed, and the quantity of products that can be produced all depend upon the ability for economic agents to make rational choices in their own self-interest. Without freedom of choice, there can be no market, no division of labor, no prices, and ultimately no jobs. It is the degree to which all economic agents are free to make the best choices they can that determines how productive, efficient, and prosperous an economy will be.

All of this goes out the window the minute one begins talking about the government “creating jobs.” By definition, nothing the government does allows any individual freedom of choice. This is where most people get confused, because they imagine the government to be a wealthy benefactor with money of its own. This misconception is reinforced when President Obama (and neither he nor the Democrats are by any means alone on this) refer to government spending programs as “investment.” It all sounds very prudent and morally sound until one considers what is really going on.

Whenever the government “invests” in a particular industry, whether it is producing “green” cars, bridges, buildings or roads, it is overriding the choices made by customers in the past. What customers and what choices? The choice by taxpayers not to purchase that car, bridge, building or road. As we’ve seen, when there are people willing to buy products at a price higher than the cost of producing them, there are entrepreneurs ready to take advantage of that opportunity and the products get produced. They do not choose to do this in order to help society, but to help themselves. Nevertheless, they do help society by producing the needed or wanted products and employing the people necessary for that production.


Not only are taxpayers forced to purchase products they have previously chosen not to buy, but the entire nature of the employment contract is fundamentally changed. No longer does an employer purchase services from an employee for the sole purpose of realizing a return on his capital investment. Now, the taxpayer is forced to purchase the services of the employee, with no hope of a return. The best he can hope for is somewhere a bridge, building or road he had previously chosen not to purchase gets built. Meanwhile, the employer is able to make profits that would otherwise be unavailable to him, because the government has forced taxpayers to pay at least part of his operating costs.

While society does get a new car, bridge, building or road, the value of those products is lower than the cost of producing them. This is why government-created jobs end as soon as the government stimulus money is removed. If the products produced and the jobs related to producing them were economically viable, entrepreneurs would already be creating them. Therefore, government-created jobs actually make society poorer, because they result in products worth less than the cost of producing them. Ironically, politicians will often boast that they created more jobs than their opponents, which actually means they created more poverty than their opponents.

By definition, all government spending comes from savings, because it is wealth produced by economic agents but not consumed. Therefore, government-created jobs actually destroy capital, as no self-sustaining production or profits result from that capital investment. Not only is that capital wasted and destroyed on the unproductive temporary jobs, but it is no longer available to create other jobs producing products people would voluntarily buy. In terms of the economic harm caused by government stimulus, this is only the tip of the iceberg. For more, read Peter Schiff’s testimony to Congress on this subject as well as one of his primary sources, Bastiat’s That Which is Seen and That Which is Not Seen.

Once you understand what a job really is, a lot of what you hear about jobs from politicians and the media sounds completely outlandish. You may hear it stated that everyone has a right to a job, but that can’t be true. How can anyone have a right to force other people to buy their products? If such a right existed, then no company would ever go bankrupt. Whenever it began losing money, it would simply appeal to the government to protect its right to force people to buy from it.

More often you will hear that everyone has a right to “a living wage,” but this makes no more sense. The price of any product in a free society is the result of mutual agreement between the buyer and the seller. Either party has the right not to make an exchange if they are not satisfied with the price. Government interventions like minimum wages interfere with this right. In fact, it is the seller of services (employee) whose rights are more infringed by minimum wages laws, which prevent him from selling his services below a certain price even if he wishes to. That anyone believes the government has a legitimate authority to set an arbitrary price level and then forcibly prohibit people from selling their services at a lower price speaks volumes about how little we value freedom in the land of the free.

No, the supposed right to a job or the right to forcibly fix the price of a job are not real rights. They both involve initiating the use of force against other people and no one has a right to do that. In fact, the true rights at issue with this program are the rights of the unwilling buyers of these services, the taxpayers. They have a right not to be forced to buy goods or services against their will. Yet violating this right is the only way any government can ever create a single job. That the only debate between either major party is over how the government can create jobs, rather than whether the government should attempt to create jobs, reinforces that liberty is not even a consideration in the formulation of federal government policy.

Yet, it is its own colossal trampling of liberty in a thousand other ways that has created the economic malaise the government is attempting to respond to right now. If we ever want to see those unemployed people get back to work, we have to understand what a job is and how and why jobs are created. Then, the government’s part in the solution becomes clear: start securing our rights instead of violating them and stop wasting our money in the misguided attempt to create jobs.