Category Archives: The New Deal

If you’re really against fascism, repeal the New Deal root and branch

fdr signingIf there is one thing the American political right and left agree on, it’s that the other side is fascist. The left thinks Trump is Mussolini; the right points to Big Tech suppressing political dissent. We even have an organization that styles itself, “AntiFa,” its chief means for fighting fascism being to dress all in black and beat its political opponents with clubs.

We live in interesting times.

But for all the accusations of fascism, justified or not, no one ever makes mention of the overtly fascist institution that dominates a large part of our lives: the New Deal.

No, I don’t mean the Green one, proposed by democratic socialist Alexandria Ocasio-Cortez and others. I mean the now hoary, 88-year-old New Deal inspired directly by Mussolini’s fascism and praised both by Adolph Hitler and Il Duce himself.

This isn’t to equate the whole of Roosevelt’s governance to Hitler’s or Mussolini’s. But in economic terms, Roosevelt was in lockstep with the fascists.

Fascism rejected socialism’s government ownership of the means of production. For this reason, the left imagines fascism to be an extreme form of capitalism. It isn’t. Fascism was more anti-capitalist than it was anti-socialist, according to Mussolini himself.

As Mussolini wrote, “Fascism is definitely and absolutely opposed to the doctrines of liberalism, both in the political and the economic sphere…The Fascist State lays claim to rule in the economic field no less than in others.”

Fascism left business ownership in private hands, but at state direction. Business owners may have retained title ownership, but they largely produced what the state told them to produce, sold at prices dictated by the state, and made future plans based upon the needs and dictates of the state, rather than their individual interpretation of market signals.

FDR did precisely the same things under the pretense of fighting the Depression. The Supreme Court struck down a few of his worst abuses, but the fascist regulatory structure he built not only remains in place to this day; it continues to metastasize.

Fascism was also anti-democratic. It was “opposed to that form of democracy which equates a nation to the majority,” wrote Mussolini. Thus, the rules governing society, including economic activity, were made by an unelected bureaucracy taking its direction from a supreme leader who embodied the state and therefore the spirit of the nation.

The New Deal is similarly anti-democratic. Not only does it transfer myriad decisions previously made by private business owners to the government; it allows those decisions to be made by unelected bureaucrats in the executive branch.

This unconstitutional transfer of legislative power from Congress to the executive was rationalized away by New Dealers and their SCOTUS enablers by drawing an arbitrary distinction between legislation and “regulation.” This is dishonest. Whenever government officials write enforceable directives that either require or prohibit human action, they are legislating, no matter what those written directives are called.

These regulations are presented to the public with benign motivations like safety and fairness, just as Mussolini posited his fascist state, “concentrates, controls, harmonizes and tempers the interests of all social classes, which are thereby protected in equal measure.”

In effect, they amount to the government dictating the minute details of business operations to the owners.

This has several deleterious effects. First, it stifles creativity. Enforcing compliance with hundreds of thousands of regulations naturally tends towards all businesses being run the same way. Revolutionary improvements like the assembly line and mass production could never have occurred under the New Deal.

Who knows what innovation has been stifled since?

Second, all this compliance has a cost, which is much more easily borne by large firms than small ones. As time goes by and the regulatory burden gets heavier, the advantage of large firms over small widens. This has the effect of promoting consolidation and elimination of marginal producers.

In a laissez faire market, there is always a natural tension between large firms with economies of scale and smaller ones that can adapt more quickly to changing market conditions. Both the cost burden of regulation and its stifling of innovation neutralize the strengths of smaller firms and tilt the playing field dramatically towards large ones.

Yet, ironically, the New Deal is most staunchly defended by progressives who claim to oppose big business and support “the little guy.”

Third, the New Deal inevitably leads to what we now call, “regulatory capture,” meaning the large corporations themselves writing the regulations that govern them. When the government’s job is merely to prosecute crimes and referee civil actions, it can be accomplished by competent attorneys. But when the government aspires to regulate the minute details of business operations, it requires in-depth knowledge of the regulated industries, including understanding of sophisticated machinery and other technologies, supply chains, specific market conditions, etc.

Only an industry insider can provide that level of expertise. And so, the government must go to these insiders for recommendations on how to make their own industries “safer,” “fairer,” etc. Naturally, the government will turn to the largest firms, understood to be the most efficient, and who also have the money to lobby.

Anyone truly committed to ridding America of fascism should concern themselves less with what politicians they don’t like say or post on social media and instead support repealing the New Deal root and branch.

Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

It’s not labor unions that destroy the economy; it’s the New Deal and its awful progeny

First_United_States_Labor_Day_Parade,_September_5,_1882_in_New_York_CityTwo small minorities on either end of the political spectrum have strong feelings about Labor Day. One side sees the holiday as a celebration of all the victories hard working folks have won in securing their rights against greedy capitalists who would otherwise have them working twenty-three hours a day in sweat shops. The other side sees it as overt Marxism, so dangerous to all that’s good and holy the holiday should be renamed.

The other 95% are just damned glad to have the day off.

That the right wingers are paranoid doesn’t mean no one is out to get them. There is a very real connection between the holiday, the unions that proposed it and Marxism. American Marxists are firm supporters of unions, as were Marx and Engels themselves.

Neither is there any denying the damage unions appear to have done. Wherever labor unions are firmly entrenched, economic hardship proliferates. Outside the politically correct zone, everyone knows unions destroyed Detroit. If you have any doubt, just look at General Motors’ 2006 balance sheet. Either capitalists mysteriously ceased being greedy for the preceding fifty years or something forced them to be overly generous with pay and benefits, resulting in the bizarre preponderance of legacy benefit costs reflected there.

This would seem to be something of a paradox. How can this free association, an expression of the free market itself, be so harmful to our economic well-being?

The answer is labor unions themselves are not the problem. It’s labor union legislation, starting with the infamous “Wagner Act” (National Labor Relations Act of 1935) and continuing with subsequent legislation in the decades thereafter. These laws transformed the employment contract from a voluntary buyer-seller agreement to an involuntary one for one side.

The Wagner Act didn’t protect the right of sellers (employees) to freely associate and agree upon a minimum level of pay and benefits they would accept. They already had that right. The Wagner Act legalized violation of the buyers’ (employers) right to refuse to purchase their services. Just as sellers have a right to make collective bargaining a condition of the sale, buyers have a right to make individual bargaining a condition of their purchase.

In a free market, exchanges are supposed to happen only when both sides voluntarily agree to the price and the terms. If they can’t agree, they just don’t do business together, with each party free to buy or sell the services in question from and to others, respectively.

The Wagner Act overrides this natural law. It says the sellers are free to bargain collectively, but the buyer is not free to refuse. It makes one side of the agreement involuntary. Apart from the moral repugnancy of the idea, it causes huge economic distortions.

For example, it completely reverses the incentives for the sellers. If the buyers were allowed to negotiate freely with union and non-union members, the union would have to find a way to makes its members more productive than non-union workers to justify the higher price they ask for the same services.

Instead, unions in the present scenario have an incentive to make its workers less productive. Since the employer can’t say no, the union benefits from less productivity per worker, which results in a need for more total workers paying union dues. Anyone who’s been a new employee in a union shop will attest to the pressure from other employees to slow down one’s work in order to strengthen the union’s position at the bargaining table.

The right of buyers to buy from someone else or not buy at all is the most fundamental discipline a free market imposes on sellers. It is the only reason sellers seek to improve the quality and lower the price of their products. When this discipline is removed, prices go up and quality goes down. It’s the same phenomenon playing out in health care.

Ultimately, one shouldn’t blame labor unions for the economic misery they seem to spread. They are merely responding to incentives, just as do crony capitalists who benefit from protectionism. Put the blame squarely where it belongs, on the source of most human misery in this advanced age: government.

Enjoy the Labor Day holiday. Cook some hot dogs, crack open some cold ones and thank the hard workers the holiday is meant to honor under its rightful name. And while you’re at it, burn FDR in effigy for screwing everything up.

 

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

Even libertarians wrong on Monsanto Protection Act

TAMPA, April 3, 2013 ― While the high priests in black robes were hearing arguments on gay marriage, President Obama quietly signed the continuing resolutions act that keeps the federal government operating in the absence of a budget. Buried inside the bill was language that has become notoriously known as “the Monsanto Protection Act.” The blogosphere exploded with cries of conspiracy, crony capitalism and corruption.

Liberals oppose the provision for the usual reasons: It lets a big corporation “run wild” without appropriate government oversight, free to (gasp!) make bigger profits on food. More thoughtful liberal arguments have suggested it may threaten the separation of powers by allowing the executive branch to override a decision by the judicial.

The lunatic fringe believes that Monsanto will control the world’s food supply through intellectual property laws and enslave us all, like the evil corporation did with oxygen in Total Recall. Of course, let’s not forget that old saying. “Just because I’m paranoid, it doesn’t mean they’re not out to get me.”

The liberal reaction to this bill and Monsanto’s activities in general is not surprising. It’s the libertarian reaction that’s surprising and disappointing. Even the Ron Paul crowd sounds like New Deal Democrats when it comes to this corporate farming giant.

They say that regardless of how much he supports the free market, everyone has that one issue that he is hopelessly socialist on. For some, it’s roads and so-called “infrastructure.” For others, it’s intellectual property. For Thomas Jefferson, it was education. Apparently, for libertarians it’s farming.

Now, if libertarians want to argue that corporations shouldn’t exist at all, that the privilege of limited liability violates individual rights and leads to market distortions, that regulating the markets only insulates large corporations from competition, that’s one thing. I’ve been there, written that.

But that’s not what libertarians are suggesting. Believe it or not, even supporters of Ron Paul are suggesting that new government regulations be passed requiring Monsanto to label its packaging to indicate whether there are genetically modified organisms (GMOs) among the contents. This is as unlibertarian as it gets.

There are legitimate concerns about whether GMOs represent a danger to the public. Certainly, each person has a right to refuse to consume them, but they don’t have a right to force Monsanto’s shareholders to label their own property. Neither do they have a right to interfere with consumers who voluntarily purchase that property from Monsanto without a label on it.

The libertarian answer is for those concerned about GMOs to refuse to purchase food that is not labeled to their satisfaction. The market already provides those alternatives. There is no substantive difference between the possible safety risks in Monsanto’s GMO food and those inherent in any other technology that legitimizes government regulation of voluntary activity. Either libertarians believe in the market or they don’t.

We’ve been told that the “Monsanto Protection Act” allows the executive branch to set aside court rulings, with the implication that the president or his Secretary of Agriculture can allow growers like Monsanto to keep growing and selling a particular product even after a judge orders them to stop. We’re led to believe that this would apply in a scenario where GMOs have been ruled to have caused death or illness and a court has ordered the grower to cease and desist to protect the public. But that’s not what the language says.

“SEC. 735. In the event that a determination of non-regulated status made pursuant to section 411 of the Plant Protection Act is or has been invalidated or vacated, the Secretary of Agriculture shall, notwithstanding any other provision of law, upon request by a farmer, grower, farm operator, or producer, immediately grant temporary permit(s) or temporary deregulation in part, subject to necessary and appropriate conditions consistent with section 411(a) or 412(c) of the Plant Protection Act, which interim conditions shall authorize the movement, introduction, continued cultivation, commercialization and other specifically enumerated activities and requirements …”

Section 411 of the Plant Protection Act deals with the regulation of “plant pests,” which are widely defined in the bill to include protozoans, bacteria, fungi, animals, and generic categories like “infectious agent or other pathogen.”

So, what are we really talking about here? A court case to determine if a regulation that shouldn’t even exist can be used to disrupt the otherwise legal operations of a company whose product has been identified by someone as a “plant pest.” Who would bring such a charge? Most likely a competitor or a left wing group that opposes and seeks to disrupt all for-profit activity. It’s Standard Oil and the Sherman Anti-Trust Act all over again.

Libertarians are usually good at separating their opposition to crony capitalism from their support of the free market. That’s why you’ll find them attacking large corporations one day and defending them the next.

That means that when corporations use the government for illegitimate advantages, as Monsanto has in seeking intellectual property rights in its GMOs, the libertarian response is to oppose intellectual property rights. It is not to empower the government to further regulate the market and violate property rights. If it is, then why was FDR and the New Deal wrong?

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

 

But aren’t right-to-work laws also unjust?

TAMPA, December 13, 2012 ― As expected, the reaction to Monday’s column about Michigan’s right-to-work legislation inspired spirited discussion.

Weeding out both praise and invective that were unresponsive to my argument, there was a dissent that had merit. It was the libertarian argument that right-to-work laws also violate the rights of employers and employees to make a voluntary contract. An employer should be free to require membership in the union and/or payment of dues as a condition of employment.

Like most libertarians, I agree with that argument in principle, but one cannot evaluate right-to-work laws in a vacuum.

Right-to-work laws and the Taft-Hartley Act from which they proceed are wholly a reaction to the Wagner Act. The proponents of Taft-Hartley first tried to get the Wagner Act repealed. When the Supreme Court ruled Wagner constitutional, conservatives passed Taft-Hartley. If the Wagner Act were not already law, Taft-Hartley would be both unnecessary and unjust.

However, in the context of the Wagner act, neither is necessarily true. A brief allegory will illustrate.

Employer Smith sits down at the bargaining table with Union Jones. The two discuss potential terms of an employment contract, but are unable to reach an agreement. Jones wants more than Smith is willing or able to pay. Smith gets up to walk away.

Just then, Luca Brasi walks up and makes Smith “an offer he can’t refuse.” Brasi puts a gun to Smith’s head and invites him to sit back down, assuring him that at the end of the meeting, either his brains or his signature will be on a collective bargaining agreement.

Brasi is the Wagner Act.

Read the rest of the article…

Michigan unions say no right to work

TAMPA, December 10, 2012 – Lansing, Michigan is bracing for an onslaught of protestors following Republican Governor Rick Snyder’s indication that he would sign “Right to Work” legislation currently making its way through the state legislature. President Obama and Harry Reid have both joined Michigan Democrats in denouncing the bill.

As usual, both liberals and conservatives are already demonstrating their skewed perception of reality in weighing in on this debate. President Obama told workers at an engine plant outside Detroit that “what we shouldn’t be doing is trying to take away your rights to bargain for better wages,” as if the law would do any such thing.

However, Harry Reid surpassed all in obtuseness when he called the legislation a “blatant attempt by Michigan Republicans to assault the collective bargaining process and undermine the standard of living it has helped foster.”

Perhaps the senator should ask the residents of Detroit, an entire city laid waste by New Deal union legislation, how they are enjoying the standard of living it has produced.

Libertarians haven’t been able to say this in quite a while, but the conservatives are mostly right on this one, although perhaps for the wrong reasons.

The only troubling sentiment coming from grassroots conservatives is the animosity towards labor unions themselves. Many seem to believe that the mere existence of labor unions causes economic distortions. Nothing could be further from the truth. Labor unions themselves are not the problem.

Like virtually all human misery, labor market distortions are caused by the government. Specifically in this case, they are rooted in the National Labor Relations Act of 1935 (a.k.a. the Wagner Act).

Read the rest of the article…

 

Questions Obama and Romney won’t have to answer at tonight’s debate

TAMPA, October 16, 2012 – Tonight, we will be subjected to another presidential “debate,” in which two candidates who agree that government is the solution to everything argue about whose central plan is better. With the questions coming directly from the electorate and super-liberal Candy Crowley deciding which ones to ask, there is not much chance that big government will be challenged by anyone.

Wouldn’t it be refreshing if the candidates were actually asked substantive questions that couldn’t be answered with rehearsed talking points? Here are just a few that you won’t hear asked in any debate or interview:

1. Both of you support U.S. military involvement in the Middle East and elsewhere against nations that have committed no acts of war against the United States. How do you justify planned military action when no state of war exists?

2. Both of you support employing the U.S. military to promote “democracy” in other countries. Why is the U.S. taxpayer financially responsible for the liberty and security of everyone on the planet? When will this financial responsibility end?

3. You both agree that President Obama was right in signing the last NDAA bill which has provisions allowing the arrest and indefinite detention of U.S. citizens by the military without due process. How do you reconcile this policy with the 4th and 5th Amendments to the U.S. Constitution?

4. It is almost universally acknowledged that Social Security and Medicare have unfunded liabilities that can never be paid, with Medicare representing the graver financial threat. Both of you argue that the programs must be preserved. However, don’t U.S. citizens who weren’t even born when these programs were started have a right to opt out of them, if they agree to waive all benefits in exchange for not being required to pay in? Would you sign a bill allowing younger workers to opt out under those conditions?

Continue at Communities@ Washington Times…

Repealing Glass-Steagall did not create the banking monster

TAMPA, August 22, 2012 – As we approach the Republican and Democratic National Conventions with two major party candidates that don’t substantively disagree on anything, debate about the causes of the housing bubble and what should be done about it will inevitably recur.

Both candidates advocate massive government intervention. They just disagree about the details.

Neil Barofsky weighs in with the generally accepted argument that the repeal of Glass-Steagall was the creator of what he calls “the monster,” highly leveraged investment banks taking extraordinary risks that led to the 2008 financial meltdown.

Barofsky is right about Wall Street being a monster, but the repeal of Glass Steagall wasn’t its Frankenstein. As Tom Woods explains in his bestseller, Rollback,

“But did the repeal of two provisions of Glass-Steagall allowing affiliation of commercial banks with securities firms through their control by the same holding company contribute to the losses and risk that permeated the system? Certainly not. For one thing, commercial banks bought mortgage-backed securities for their AAA rating, their attractive return, and the minimal capital requirements associated with holding them; they did not acquire these assets because they were connected to investment banks that were trying to unload them.

Moreover, severe regulatory firewalls essentially prevent this kind of affiliation from contributing to losses or increased risk on the part of the commercial bank involved. The reverse problem, that affiliation with a commercial bank might bring down and investment bank, is exceedingly unlikely, given the relative magnitudes of assets held by each institution. The commercial banks’ assets were only a tiny fraction of those held by the investment banks they were affiliated with. These banks were in no position to cause the investment banks any serious problem, much less their complete downfall.”

If that’s true, then why was that “sucker going down,” as President Bush so eloquently put it?

Continue at Washington Times Communities…

Morning Joe Wrong on Ron Paul and Social Security

TAMPA, June 21 2012 — Ron Paul appeared on MSNBC’s Morning Joe yesterday, giving one of his most succinct criticisms of the Republican Party to date. Host Joe Scarborough had recently endorsed Paul and explained why he had voted for him in his Republican presidential primary.

For most of the segment, the hosts concentrated on Paul’s ideas, policy positions and vision for the future of the party. However, near the end of the segment, Sam Stein decided to ambush Paul on Social Security. After Paul explained his position on letting young people opt out of the program, Stein asked Paul if he collected Social Security payments himself. When Paul replied in the affirmative, Stein implied that Paul was being hypocritical by collecting Social Security payments while asking young people to opt out.

Non sequitur.

Ron Paul’s plan to phase out Social Security does not ask people who have paid into the program to forego the benefits. Those he wants to give the opportunity to opt out would also not be taxed to support Social Security. Perhaps somewhat surprised by the line of inquiry, Paul did not give the best answer he’s ever given to this question. However, he explained it in detail in my own interview with him last year.

Under Paul’s plan, those who have paid into the program would continue to receive the benefits they were promised. The funds not collected from young people who opt out would be raised from savings realized by Paul’s cuts to overseas military spending and elimination of federal departments.

So, Paul is not asking young people to do something that he is not willing to do himself. As he pointed out on Morning Joe, he’s still paying into Social Security right now.

Continue at The Washington Times Communities…

Everything the government does is a mandate

TAMPA, April 4, 2011 – Despite the drama created by the two days of oral arguments on Obamacare, I’m sticking to my original prediction that the controversial law will be upheld by the Supreme Court.

Let’s face it, if the Court upheld a law limiting the amount of crops that someone can grow on their own land for their own consumption, they’ll find a way to uphold this. Ricardo Alonso-Zaldivar of the Associated Press (AP) provides some of the possible reasoning that the Court may rely on.

The AP article points out that there are many other federal government healthcare mandates already in place. Medicare is an individual mandate. There is no option to “opt out.” Conservatives make the distinction that one is only taxed for Medicare if one has an income, while Obamacare forces you to buy a product just because you’re alive. That distinction is valid, but how what does it really mean?

If you choose not to have an income then you either starve to death or live off previously taxed income. Those living off savings and investments haven’t escaped the mandate. Those assets were acquired by previous income. If you’re living off public welfare, then the tax has simply been paid by somebody else. “Income” is necessary to human life. One cannot consume what one has not produced unless someone else produces it for you. Thus, you either comply with the Medicare mandate or die.

Lost in all of these minutiae is a core principle. Government itself is an individual mandate. You have no choice whether to purchase its services. You have no choice whether to obey its laws or pay its taxes. You either comply or you are dragged away by force or killed while resisting. Americans used to understand this.

Continue at The Washington Times Communities…

Free Excerpt – A Return to Common Sense: Reawakening Liberty in the Inhabitants of America

Kindle edition now available here!

Paperback here!

Hello friends,

Americans are waking up to the reality that our once free republic is in serious trouble. They are searching for answers to what seem like unsolvable problems: economic depression, unending war, political corruption, and vanishing liberties. What if there were just one answer – freedom? The American republic was founded upon that principle, yet few suggest it is the solution to any of our problems,  much less all of them. But if freedom is the answer, we first must know what it is. Sadly, most Americans do not. That is why I wrote this book.

I hope you enjoy the Introduction and Chapter One: What is Freedom?, which I am making available for free below. The subsequent chapters discuss how freedom can solve the many challenges we face.

To read the rest of this book, you can get the Kindle Edition here.

I look forward to fighting with you to restore our liberty.  – Tom Mullen

Reviews

“Thomas Mullen is a knowledgeable and passionate libertarian and A Return to Common Sense is a valuable addition to the libertarian literature. Those new to the freedom movement will benefit from Tom’s introduction to both the practical and moral arguments for freedom. Long-time activists will benefit from Tom’s explanation of why strict adherence to principle is vital to the future success of the liberty movement.”

Representative Ron Paul (TX-14)

Congressman and author of The Revolution: A Manifesto and End the Fed.

“A well written primer on economics, liberty, and government that even avid Austrians will enjoy. If you have been blinded by government and Wall Street propaganda, A Return to Common Sense will help open your eyes. I not only recommend that you add this book to your freedom library, but that you buy a few copies for your friends.”

Peter Schiff, President of Euro Pacific Capital, Inc and author of Crash Proof: How to Profit from the Coming Economic Collapse.

Tom Mullen has written a thorough and useful book. Those for whom a discussion of liberty is a new experience will discover in A Return to Common Sense a clear, easy to understand guide to the nature of freedom, and why it is essential to our fondest hopes for a civil society of opportunity, peace, and prosperity. For those who already share these values, it’s a welcome resource for perfecting our own knowledge and advancing our cause.

– Charles Goyette, author of THE DOLLAR MELTDOWN: Surviving the Impending Currency Crisis with Gold, Oil, and Other Unconventional Investments and RED AND BLUE AND BROKE ALL OVER: Restoring America’s Free Economy

Chapter 1

What is Freedom?

And what is this liberty, whose very name makes the heart beat faster and shakes the world?”

 – Frederic Bastiat1 (1850)

If there is one thing uniquely associated with America, it is freedom.  From the moment Cornwallis surrendered to Washington at Yorktown, America has been a symbol of liberty to the entire world.  Since the end of World War II, when the United States assumed a worldwide leadership role, it has been the leader of the “free world.”  At sporting events, standing crowds begin their ovation when the vocalist singing the national anthem gets to the words, “O’er the land of the free.”  Even in everyday conversations, scarcely a day goes by that one does not hear someone say, “Do what you like, it’s a free country.”

Although we all agree that America is the “land of the free,” there are questions about freedom that might be more difficult to answer.  What is freedom?  How is it defined?  What makes America the land of the free?  How would we know if we were to lose our freedom?  What is it that our soldiers die for and our politicians swear to defend?

We have been told a lot of things about what freedom is not.  From the end of World War II until 1991, most Americans understood that freedom was not communism.  For almost three generations, Americans lived in the “free world” during its cold war with the communist Eastern Bloc.  Without further thought or instruction, many children of the 20th century think of freedom merely as the antithesis of communism.  In some ways, this is not completely untrue, although it hardly provides a complete answer to our question.

Certainly, the mere absence of communism doesn’t necessarily guarantee freedom.  The 18th century British monarchy wasn’t communist, but the American colonists nevertheless considered it tyrannical enough to rebel against.  Likewise, the Royal House of Saud may be an ally of the U.S. government, but most Americans would not regard Saudi Arabia as a “free country.”

In addition to monarchies, there are plenty of dictatorships around the world that don’t enforce a communist system but are nevertheless oppressive.  While they also may be allies of the U.S. government, they certainly aren’t free countries, either.  So, a society is not free merely because it is not communist.

On the other hand, monarchy doesn’t seem to necessarily preclude freedom, either. Great Britain has been a relatively free country throughout much of its history, even when the monarchy was much more than a figurehead.  The American Revolution notwithstanding, Great Britain was at that time one of the freest societies in the world.  Therefore, rather than conclude that no freedom is possible under a monarchy, one might instead conclude that monarchies neither guarantee nor necessarily exclude freedom. Freedom or tyranny seems possible under almost any system of government.

Perhaps we can define freedom more easily by looking at its antithesis.  Merriam-Webster Dictionary lists slavery among antonyms for freedom.  Surely, we have found a start here.  Most people would agree that slavery is the complete absence of freedom.  Who can we imagine that is less free than the slave?  This is helpful in beginning to try to frame an answer, but freedom cannot be merely the absence of slavery.  Surely our founding fathers bled to give us a higher standard than this!

If we are told anything about what freedom is, it is that freedom is democracy.  If you ask most Americans, this is the answer you will get.  This is reinforced ad nauseum by politicians, media, and teachers in our public schools.  When Iraq held its first elections after the overthrow of Saddam Hussein, politicians and journalists universally celebrated the Iraqis’ “first taste of freedom.”

Certainly, democracy is a vast improvement over the autocratic rule of a dictator. But does democracy automatically mean freedom?  If democracy is rule by the majority, what about the minority?  What if 51 % of the people voted to oppress the other 49%?  Would that society truly be free?

Most Americans would be quite surprised to learn what our founding fathers thought about democracy.  Any objective analysis would conclude that their feelings lay somewhere between suspicion and contempt.

James Madison said, “Democracy is the most vile form of government … democracies have ever been spectacles of turbulence and contention: have ever been found incompatible with personal security or the rights of property: and have in general been as short in their lives as they have been violent in their deaths,”2

In a letter to James Monroe, he also said,

“There is no maxim, in my opinion, which is more liable to be misapplied, and which, therefore, more needs elucidation, than the current one, that the interest of the majority is the political standard of right and wrong.”3

While often extolling the virtue of majority rule, Thomas Jefferson nevertheless wrote,

“…that the majority, oppressing an individual, is guilty of a crime, abuses its strength, and by acting on the law of the strongest breaks up the foundations of society.”4

Can this be true?  The founding fathers were ambivalent about democracy?  For many people, this is tantamount to sacrilege.  More shocking still is what the Declaration of Independence and the U.S. Constitution say about democracy: nothing.  Nowhere in our founding documents will you find the word “democracy” or the assertion, implicit or explicit, that our government is a democracy.  How can this be?

Despite what we are taught virtually from birth, the United States of America has never been a democracy.  As only contrarians point out these days, it is a constitutional republic.  We choose our leaders using the democratic process of majority vote, but that is the extent to which the United States involves itself with democracy.

Like monarchy, democracy neither guarantees nor necessarily prohibits freedom.  Our founders actually feared that democracy poses a danger to freedom.  Apart from the pure heresy of the idea, it leaves us with a problem.  We are no closer to defining freedom.  If even democracy is not freedom, perhaps freedom doesn’t really exist!  If we are not to find freedom in democracy, where else can we look?

We certainly won’t learn what freedom is from our politicians.  While terrorism, healthcare, unemployment, gay marriage, and a host of other “major issues” dominate public debate, freedom is just too quaint, too academic, or too forgotten to get any airplay.  Yet, as we shall see as we explore the different subjects of this book, freedom is the fundamental issue.  In fact, despite what we perceive as a myriad of different problems facing the United States of America today, freedom is actually the only issue.  That may be hard to accept, given the decades of shoddy history, obfuscation, and plain old bad ideas we’ve been bombarded with.  Nevertheless, our greatest challenges and their solutions revolve around freedom.  If freedom is really that important, we’d better be absolutely sure we know what it is.

In order to answer the question posed by Bastiat at the beginning of this chapter, we will have to go back to the beginning.  Our founding fathers faced no such quandary about the definition of freedom. They knew exactly what it was.  They were children of the Enlightenment, and derived their ideas about freedom directly from its philosophers, especially John Locke.  While these philosophers were powerful thinkers and their ideas were (no pun intended) revolutionary at the time, the principles of liberty are relatively simple.  They are, as the namesake of this book concluded, common sense.  It was an understanding of these revolutionary ideas by average American colonists that inspired the revolution that gave birth to a nation.

The idea that opens the door to the true meaning of freedom is individual rights.  Despite the emphasis today on the “general welfare” and the “common good,” the American tradition of liberty has nothing to do with either.  Instead, the founders believed each individual was born with natural, inalienable rights.  The Declaration of Independence states,

“We hold these truths to be self evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights,” 5

This passage is quoted widely in popular culture.  Invariably, the words emphasized are “that all men are created equal.”  Certainly, these are fine words and worthy of veneration.  However, the rest of this passage is equally important.  Every human being, because of his equality with all other human beings, has rights no earthly power can take away.  These rights are “unalienable,” so that governments, even democratically elected governments, have no power to revoke them.  To the founding fathers this was self-evident.  It was true based purely upon man’s existence itself.

This idea is drawn directly from the philosophy of John Locke, who wrote,

“A state also of equality, wherein all the power and jurisdiction is reciprocal, no one having more than another; there being nothing more evident, than that creatures of the same species and rank, promiscuously born to all the same advantages of nature, and the use of the same faculties, should also be equal one amongst another without subordination or subjection,”6

While these rights are endowed by a Creator, the founders did not specify who the Creator was.  Too often, those arguing for the ideals of our republic make the fatal mistake of basing the natural rights upon belief not only in God, but specifically upon the Christian God.  While the founders were by no means opposed to Christianity, belief in it or even in God is not a prerequisite for the existence of the natural rights.  The beauty of this idea is that it transcends religion and thus welcomes members of all religions, and those with no religious beliefs at all.  Therefore, the first building block of freedom, individual, inalienable rights, can be claimed by Christians, Muslims, Jews, Buddhists, Hindus, atheists, by every person on earth.

So what are these inalienable rights, which cannot be taken away?  The Declaration goes on to say, “That among these are Life, Liberty, and the Pursuit of Happiness.”7

At first glance, this statement might be a bit deceiving, maybe even a little disappointing.  Life, Liberty, and the Pursuit of Happiness?  Is that all?  Surely we have more rights than these!  Of course, the Declaration says “among these,” so it does not limit the natural rights to these three.  But these three are important.  It is worthwhile to determine the meaning of each.

The right to life is pretty easy to understand.  Most civilized societies have laws against murder.  Each individual has a right not to be killed by another human being, except in self-defense.  So far, so good.  What about the other two?  We are in the midst of trying to define liberty, or freedom, so let us put that aside for the moment.  The third right listed is “the pursuit of happiness.”  What does that mean?  Does it mean nothing?  Or does it mean everything?  What if it makes me happy to steal cars or blow up buildings?  Surely, I don’t have a right to pursue happiness like that!

No. There is a natural limit on liberty and the pursuit of happiness. Again, we can find the answer in Locke,

“To understand political power right, and derive it from its original, we must consider, what state all men are naturally in, and that is, a state of perfect freedom to order their actions, and dispose of their possessions and persons, as they think fit, within the bounds of the law of nature, without asking leave, or depending upon the will of any other man.” 8

While people are free to do what they want, they must do so “within the bounds of the law of nature.”  What is the law of nature?  Locke goes on to tell us,

“The state of nature has a law of nature to govern it, which obliges every one: and Reason, which is that law, teaches all mankind, who will but consult it, that being all equal and independent, no one ought to harm another in his life, health, liberty, or possessions…” 9

Finally, we have some indication of what freedom is, rather than what it is not.  Liberty is not the unlimited ability to do whatever you want, nor is it confined to the arbitrary limits placed upon people by governments.  Contrary to the spurious argument that unfettered liberty would result in chaos, we see that the law of nature, Reason, very clearly and unambiguously prohibits some actions, even for people in a state of absolute liberty.  They are:

1.   Initiating the use of force or violence

2.   Infringing upon another person’s liberty

3.   Harming them in their possessions.

This last limit upon the actions of free individuals is important.  Locke spends an entire chapter of his Second Treatise talking about it.  It is related to property, which is arguably the most important right, while at the same time the least understood.  Property is important enough that we will spend the next chapter examining the subject.  To do this we will have to come to a clear definition of property, including how it is acquired, how it is exchanged, and what right the owner has to it.

More importantly, we have arrived at a definition of liberty.  It is the right of any person to do as they please, as long as they do not violate the equal rights of anyone else.  The latter half of this definition is generally referred to as the “non-aggression principle.”  Political activists associate this principle with libertarians, while intellectuals associate it with Ayn Rand’s philosophy of Objectivism.  Certainly both movements recognize and venerate it, but it is important to realize that neither is its source.  In fact, the non-aggression principle has been articulated with very little variation by all writers in the liberal tradition, including Locke, Jefferson, Paine, Bastiat, Mill, and later Rand and other 20th century writers and thinkers.

By applying this principle, the most complicated societal issues become astoundingly simple.  The ambiguous becomes unambiguous.  The answers become clear.  Virtually every problem facing America today can be solved by applying the principle of freedom.

There are a few points we should review for emphasis.  First, the rights mentioned in the Declaration of Independence and drawn out of Locke’s philosophy are inalienable.  They cannot be taken away by any power on earth, including a majority vote.  The reason the founders were suspicious of democracy was because of their fear that the majority would oppress the individual by voting away the individual’s rights, especially property rights.  This was the reason for the separation of powers and the limits on government authority.  Even a majority vote can be a threat to freedom.

The difference between a right and a privilege is a vital concept to understand.  A right is something you are born with, that you possess merely because you exist.  A privilege is something that is granted by another person, group, or a government.  Our country was founded upon the principle that all people have inalienable rights that cannot be taken away, not privileges granted by their government.  As John Adams so eloquently put it,

“I say RIGHTS, for such they have, undoubtedly, antecedent to all earthly government, — Rights, that cannot be repealed or restrained by human laws — Rights, derived from the great Legislator of the universe.”10

There is no need to be “thankful for the rights we have in America.”  All people have those rights and gratitude is neither necessary nor appropriate.  Rather, people are justified in demanding their rights, and any violation of them should be recognized as an act of aggression.

Second, in any conflict between individual liberty and the will of the majority, individual liberty prevails without compromise.  The majority has no right to violate the rights of the individual.   This is to some extent merely making the first point in reverse, but it is important enough to say in more than one way.  Society doesn’t have rights; individuals do.  Society is nothing more than a collection of individuals, so protecting each individual in society protects society.

Despite these seemingly undeniable truths, individual liberty is today under constant attack because of its perceived conflict with the common good or “the needs of society.”  While living together and agreeing not to initiate aggression against each other seems astoundingly simple, our politicians would have us believe there is something incredibly complicated about it.  They create a world in which civil society is a maze of moral dilemmas that only their astute guidance can lead us safely through.  Once liberty is properly understood and applied, all of these supposed dilemmas disappear.

End Notes

Introduction: The American Crisis

1 Paine, Thomas The American Crisis “The Crisis No. 1” December 19, 1776 from Paine Collected Writings edited by Eric Foner Literary Classics of the United States, Inc. New York, NY 1955 pg. 91

Chapter 1: What is Freedom?

1 Bastiat, Frederic The Law 1850 from The Bastiat Collection 2 Volumes Vol. 1 Ludwig Von Mises Institute Auburn, AL 2007 pg. 79

2 Madison,James Federalist #10    https://www.foundingfathers.info/federalistpapers/fedi.htm https://www.foundingfathers.info/federalistpapers/fed10.htm

3 Madison, James Letter to James Monroe October 5th, 1786 James Madison Center, The https://www.jmu.edu/madison/center/home.htm Phillip Bigler, Director, James Madison University Harrisonburg, VA https://www.jmu.edu/madison/center/main_pages/madison_archives/quotes/supremacy.htm

4 Jefferson, Thomas To Dupont de Nemours from Jefferson Writings edited by Merrill D. Peterson New York, NY: Literary Classics of the United States, 1984 pg. 1387

5 Declaration of Independence, United States 1776 National Archives and Records (website) https://www.archives.gov/exhibits/charters/declaration_transcript.html

6 John Locke Second Treatise on Civil Government from Two Treatises of Government C. and J. Rivington, 1824 (Harvard University Library Copy) pg. 132

7 Declaration of Independence, United States 1776 National Archives…

8 Locke Second Treatise pgs. 131-32

9 Locke Second Treatise pg. 133

10 Adams, John A Dissertation on the Canon and Feudal Law 1765 Ashland Center for Public Affairs (website) Ashland University  https://www.ashbrook.org/library/18/adams/canonlaw.html

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