Tom Mullen as a guest on Liberty Underground Radio Show
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Lord and Levin Welcome Ron Paul to the Top Tier
Punctuated by his move past Michele Bachmann into third place in the race for the Republican nomination for president, Ron Paul has arrived in the “top tier.” While this is a significant positive for his supporters, it does not mean that opposition to Paul from within the party will diminish. On the contrary, now that it is undeniable that he really could win the nomination, Paul’s supporters should expect attacks from the opposition to intensify. They have.
Beginning with a piece in the American Spectator by Jeffrey Lord, conservative opponents of Paul have fired the first shots in what from here on out will probably be an all-out bombardment of Paul and his platform. I say “Paul and his platform” because along with substantive criticism of his positions, one should expect a generous amount of ad hominem directed at Paul himself. Judging from the Lord piece and Mark Levin’s replies in weighing in on the matter, one can expect even more mudslinging than usual.
That is not to single out Lord or Levin as particularly unique in this regard. Mudslinging or “muckraking” has been a part of American politics since the earliest days of the republic. Contrary to what many Americans seem to believe, there never was a “golden age” of American journalism where reporters objectively reported the facts and avoided all political bias. In fact, early American newspapers were not only unapologetically biased; they were unconcerned about even the veracity of the mud they slung. During the election of 1800, John Adams was reported to have “ordered Charles Cotesworth Pinckney to London to procure four pretty mistresses to divide between them.” [1] Adams laughed off this completely false accusation, saying that Pinckney must have kept them all to himself.
Indeed, Ron Paul is unique among politicians for his refusal to attack his opponents personally, even when he vehemently disagrees with their positions. After Rick Perry suggested that Ben Bernanke’s monetary policies might be treasonous, Ron Paul declined to join in even when invited to. Asked by Wolf Blitzer to respond to Perry’s comments, Paul refused to take the bait, saying “I try never to make it the individual as much as the philosophy.”
In the same spirit, I would like to take a look at Lord’s and Levin’s criticisms of Paul and respond to the substantive parts of them. Generally, both accuse Paul of not being a true conservative due to his foreign policy of non-interventionism. Lord claims that this policy is rooted in “neo-liberal” philosophy and that in Paul’s case, like many of the supposed neo-liberals that Lord cites, the policy is also motivated by racism (anti-Semitism being racism directed at Jewish people). Finally, Lord accuses Paul of being disingenuous in portraying the founding fathers as non-interventionist, citing Washington’s invasion of Canada during the Revolutionary War, John Adams’ prosecuting of the Quasi War, James Madison’s prosecution of the War of 1812, and James Monroe’s Monroe doctrine.
Taking these points in order, the first concerns “non-interventionism.” What is it and what is its motivation?
First, we have to recognize the actual definition of the word “intervene.” It certainly does not mean using force to defend oneself. If an individual is attacked by a mugger and uses force to defend himself, he is not “intervening.” Intervention is by definition the interposing of one party into the affairs of two or more others. Thus, if England and France go to war, and Russia enters the war on France’s side, then Russia is intervening. Likewise, if a revolution occurs in Albania, and Spain enters the war on the side of the rebels, Spain is intervening. However, if the United States were attacked by Russia and used military force to defend herself against the attack, the United States would not be intervening.
Ron Paul consistently states that the United States should have a strong national defense but should also be non-interventionist. Is this philosophy rooted in racism? In my own interview with him in July 2011, Paul confirmed that the underlying philosophy that informs all of his positions is the libertarian non-aggression axiom (this question and answer begins around the 11:50 mark). This axiom holds that no human being has the right to initiate force against another, including against their person, liberty, or justly acquired property. This is what makes Paul’s positions against the welfare state, the Patriot Act, and preemptive war consistent. All of these policies represent the initiation of force.
Mssrs. Lord and Levin do not distinguish the concept of non-aggression from pacifism. This is an error. Libertarians like Paul are fierce defenders of the right to bear arms precisely because they are not pacifists. They recognize the right, even the duty, to defend oneself with force against aggression. This applies both to the relationship between individuals within society and the relationship between nations. Paul does not champion pacifism if another nation attacks the United States. However, he opposes the United States initiating force against another nation, even if that nation’s policies are oppressive or otherwise objectionable.
Lest opponents of this libertarian philosophy tag it as “leftism” the reader should understand that it was the central principle that inspired Thomas Jefferson’s philosophy. In his own words,
“Our legislators are not sufficiently apprised of the rightful limits of their powers; that their true office is to declare and enforce only our natural rights and duties, and to take none of them from us. No man has a natural right to commit aggression on the equal rights of another; and this is all from which the laws ought to restrain him.”[2]
This was by no means the only time that Jefferson invoked the non-aggression principle. He invoked it in defending religious freedom, saying ““The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbor to say there are twenty gods or no God. It neither picks my pocket nor breaks my leg.”[3]
In fact, on nearly every occasion where he had the opportunity to define the role of government, he invoked this principle. His first inaugural address was centered around it.
“What more is necessary to make us a happy and a prosperous people? Still one thing more, fellow-citizens — a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicities.”[4] [emphasis added]
That this founding principle is completely consistent with non-interventionism is reflected by Jefferson’s support for it in that same speech.
“Equal and exact justice to all men, of whatever state or persuasion, religious or political; peace, commerce, and honest friendship with all nations, entangling alliances with none;”[5]
Lord points to Jefferson’s war with the Barbary pirates as an example of interventionism, but this is absurd. Jefferson was not intervening in a dispute between two other nations or an internal dispute within one. He was defending the United States against acts of war that had been committed against them. On May 10, 1801, the pasha of Tripoli formally declared war against the United States. Jefferson’s military response was completely consistent with non-aggression and its sub-corollary, non-interventionism. Again, neither non-aggression nor non-interventionism are synonymous with pacifism.
As Tom Woods and Kevin Gutzman have pointed out, all of the early American wars cited by Lord as examples of the founders being ‘interventionists” were in fact similarly defensive. Lord’s citing of the Quasi War with France as “interventionist” is particularly confused. The whole reason that it was called a “quasi” war was Adams staunch refusal to ask for a declaration of full-out war, even against the wishes of many in his own party. As I have written before, Adams actually considered avoiding war with France the crowning achievement of his presidency.
As I argued regarding Obama’s war in Libya, taxing American citizens to defend people in other countries similarly violates the non-aggression principle. If conservatives actually believe that the U.S. government can tax Americans to provide freedom or security to people in other countries, then what is their objection to the liberal policy of taxing American citizens to provide healthcare or housing to other Americans? In either case, one person is taxed to provide benefits exclusively to another. Is this conservative? It certainly isn’t libertarian.
On the racism/anti-Semitism charge, there is nothing in any of Ron Paul’s public statements, voting record, or writing that can remotely support a charge of racism or anti-Semitism. In his own words,
“Racism is simply an ugly form of collectivism, the mindset that views humans only as members of groups and never as individuals. Racists believe that all individual who share superficial physical characteristics are alike; as collectivists, racists think only in terms of groups. By encouraging Americans to adopt a group mentality, the advocates of so-called “diversity” actually perpetuate racism. Their intense focus on race is inherently racist, because it views individuals only as members of racial groups.”
Lord and Levin accuse Paul of not being a true conservative and of espousing major tenets of the liberal philosophy. However, it is they who adopt the tactic that conservatives consistently accuse liberals of using: making an unfounded charge of racism in the hope that the mere association of the word with the position will evoke an emotional response in the minds of voters and persuade them to oppose the position, regardless of its merits. I agree with conservatives that this is a dishonest and reprehensible tactic.
They also accuse Paul and some of his supporters of not being conservative for criticizing Reagan. Reagan, who said in this interview that “the very heart and soul of conservatism is libertarianism,” invoked Jefferson’s first inaugural in stating that it was government’s role to keep us from harming each other, but should not try to keep us from harming ourselves. However, as the interview goes on, Reagan is able to put virtually the whole progressive regulatory state into the former category, with very little recognized as part of the latter. This lends insight into his presidency, where the size and the power of the federal government doubled, despite his libertarian rhetoric both before and after his election.
If the heart and soul of conservatism is truly libertarianism as Reagan argued, then true libertarians and conservatives would have to criticize Reagan’s presidency. He did not, as he promised he would, abolish the Department of Education, but expanded it. He did not, as he promised, reduce the size and influence of the federal establishment back within the limits imposed upon it by the Constitution. He did not lower taxes. He raised them. He did not cut government spending – it doubled on his watch, outpacing the spending increases of Carter and Clinton by large orders of magnitude. Both libertarians and conservatives should criticize these aspects of his presidency. Doing so doesn’t make them less libertarian or conservative. It merely confirms that they have a grip on reality.
Finally, the personal nature of Levin’s attacks on Mike Church and Jack Hunter belie their lack of substance. Levin calls Church a moron, accuses him of being intoxicated on the air, and even belittles Church’s supposedly insignificant radio audience. Most people are familiar with the ad hominem attack. While passion for one’s viewpoints is understandable, “attacking the man” rather than the man’s arguments amount to a capitulation that one has lost the debate. Don’t expect this to diminish as Ron Paul’s popularity continues to increase. Supporters of the establishment have good reason to fear a Paul presidency, and one can expect the attacks on him and his supporters to get uglier and uglier. And yes, expect supposed conservatives to act just like liberals in calling anyone who disagrees with them a racist. Welcome to the top tier, Congressman Paul.
Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.
© Thomas Mullen 2011
Adams pg. 544
What Are They Afraid Of?
In this interview, Ron Paul inadvertently coined what should be the new slogan of his campaign.“What are they afraid of?”
He was talking about the blatant suppression by the media of any positive news about his campaign. For the few somewhat principled journalists that have admitted that it is intentional, the excuse offered has been that the media ignore him because he can’t win. However, this is counterintuitive. Is it not largely media coverage that propels candidates to the “top tier” in political races? Does anyone seriously believe that even Ronald Reagan or Bill Clinton would have won their respective primaries, much less the presidency, if the media had not covered their campaigns?
And this is not just a matter of ignoring Ron Paul or failing to cover him. Headlines like this one, “Bachmann wins Iowa straw poll, Pawlenty takes 3rd,” demonstrate that the media are not just ignoring Paul, they are tripping over themselves to actively suppress news of his campaign. In what other competition in any context does a headline feature the 1st and 3rd place finishers and not the 2nd? This anti-Paul campaign was so obvious to comedian Jon Stewart that he put together a hilarious (yet disturbing) lampoon of it on his show.
No, Paul’s “unelectability” is not sufficient (even if it were valid) to explain a blackout so pervasive that “ignoring the elephant in the room” is hardly a sufficient metaphor. If nothing else, Paul’s virtual tie in the Ames Straw Poll demonstrates that he is at least as electable as Michele Bachmann, whom every media outlet in the world now places in the “top tier” of Republican candidates, while at the same time going out of their way to avoid mentioning the name of the candidate who trailed her in that poll by an amount of votes that any statistician would deem “statistically insignificant.”
What are they afraid of?
There is an answer to Ron Paul’s question and he knows it as well as anyone. For any government-connected special interest, whether conservative or liberal, Paul is the grim reaper. He openly opposes it all and cannot be bought. He puts conservatives to shame for their hypocrisy about “free markets” and “small government,” while doing the same to liberals for their hypocrisy about “ending foreign wars” and “protecting civil liberties.” Worst of all, both conservatives and liberals know that he is not in the tank with anyone and will actually do what he says if he gets into office.
Conservative media do not want Americans to hear that Ronald Reagan and George W. Bush grew the size of the government more than their Democratic predecessors by large orders of magnitude. They do not want to hear that W’s only significant economic policy was Sarbanes-Oxley, which W himself compared to the New Deal. They don’t want Americans to be reminded that the conservative platform used to include eliminating Jimmy Carter’s Department of Education, but that Republicans under George W. Bush greatly expanded its power. Neither do they want attention called to the fact that Republicans under Bush expanded the welfare state more than any president since Lyndon Johnson. They are desperate not to let Americans find out that Ron Paul gets more support from active military than any other Republican, despite his anti-war stance. Most of all, they do not want conservative American voters to know that Ron Paul polls better against Barack Obama than any other Republican candidate.
Liberal media have similar motivations. They do not want liberal voters to know that there is a Republican who is truly anti-war, an embarrassment to their peace-candidate-turned-warmonger president. They do not want liberals to know that it is a Republican who is truly against the corporate state, which Obama has jumped directly in bed with, if he wasn’t born there. They do not want liberals to be reminded that all of the civil liberties violations for which they excoriated George W. Bush have been expanded by “the One.” Most of all, like the conservative media, they don’t want liberals to know that Ron Paul polls better against Barack Obama than any other Republican candidate.
Being a corporatist cabal, like most other industries in the post-New Deal American economy, the media are not interested in the truth being known. They are interested in preserving their government-protected privileges and those of all of their special interest associates, both conservative and liberal. They are terrified of Ron Paul’s message even being heard. Why? Because the truth has a way of “ringing true” that propaganda does not, no matter how much money is behind it.
In short, the corporate media is afraid that Ron Paul will wake up average Americans to the fact that liberal and conservative special interests captured the government many decades ago, that their perception of American society as free and prosperous is a lie, that the leviathan state was never their benefactor, but rather designed specifically to rip them off, and that the whole thing is coming to an end. They are afraid because Ron Paul will open their eyes and minds. Once he does, the party is over for conservative and liberal special interests alike. The days of growing wealthy on the backs of average Americans – and most shamefully, on their blood – start coming to an end the day he takes the oath of office.
What are they afraid of more than anything else? That if Americans actually get the chance to hear him out, he will win.
Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.
3rd Annual Florida Liberty Summit featuring Ron Paul Aug. 19-21!
I’m excited! I’m headed to the Florida Liberty Summit this weekend in Orlando Florida. This is an event you do not want to miss! Sponsored by the Florida Campaign for Liberty, the event will feature Republican Congressman of Texas and presidential candidate Ron Paul as keynote speaker.
Fresh off his virtual tie in the Ames, Iowa Straw Poll on August 13, Congressman Paul will be bringing his message of individual liberty, sound money, and strict adherence to the U.S. Constitution on both domestic and foreign policy to what is expected to be another huge turnout of supporters from across the political spectrum.
Joining him will be host of powerhouse speakers including Doug Wead, best-selling author and former advisor to Presidents George H.W. and George W. Bush, Phil Giraldi, former CIA counter-terrorism specialist, Bruce Fein, author and former Deputy Attorney General for the Reagan Administration, Dr. Yuri Maltsev, author and former economic advisor to USSR President Gorbachev, Tom DiLorenzo, author and Loyola University economics professor, Jack Hunter, nationally-known writer and political analyst, and yours truly, Tom Mullen, author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America. You couldn’t ask for a better lineup. A complete roster of the confirmed speakers can be found here.
In addition to speeches by experts on subjects ranging from economic policy to foreign policy to civil liberties to the Second Amendment, attendees can participate in the best political training anywhere. There is also an opportunity for a private briefing on Friday and a Saturday morning breakfast with Congressman Paul, as well as a Saturday evening “Author’s Liberty Banquet” honoring the conference’s authors.
Ron Paul’s birthday is August 20, so you can even help celebrate! But don’t tell Ron. It’s a surprise!
Tickets are going fast, but you can still register for this historic event here.
Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.
The Tenth Amendment Run Amok?
In between “gotcha questions” and the Pawlenty-Bachman slurfest, an interesting discussion actually occurred during the Fox News presidential debate staged in Iowa on Thursday night (8/11/2011). It concerned Tim Pawlenty’s quite valid criticism of Mitt Romney’s role in expanding government healthcare in Massachusetts. During Romney’s term as governor, he signed into law a state healthcare plan that served as the basis for what is popularly known today as “Obamacare.”
Romney replied with a defense based upon the Tenth Amendment to the US Constitution, saying Massachusetts passed a law that was right for Massachusetts, but President Obama forced a “one size fits all solution” on the entire nation, usurping the powers reserved to the states or the people.
Calling him a “constitutional expert,” panelist Chris Wallace asked Congressman Ron Paul whether the states “have a constitutional right to make someone buy a good or a service just because they are a resident.” Paul replied,
“No, the way I would understand the Constitution, the federal government can’t go in and prohibit the states from doing bad things and I would consider this a very bad thing. But you don’t send in a federal police force because they’re doing it and throw them into court.”
Rick Santorum replied that this argument represented “the Tenth Amendment run amok” and paraphrased Abraham Lincoln saying “the states don’t have the right to do wrong.” He argued that the United States is a nation built upon moral laws, implying that he would support the federal government overriding the state government if an action of the state violated those moral laws.
So, what moral law does “Romneycare” violate and should the federal government step in and intervene?
For libertarians, many aspects of both Romneycare and Obamacare violate the moral law of non-aggression. It initiates force against individuals who have not aggressed against others by forcing them to buy a product. It forcibly steals their money to buy healthcare for other people. It forces them to pay for a government-run “exchange” which distorts the market and privileges government-connected health insurers.
Whether most conservatives see it from this perspective is not clear – they rarely make arguments based upon rights, rather than results. But Rick Santorum believes Romneycare is immoral, by whatever moral standard he is using.
So, let’s assume Romneycare does violate an underlying moral law that precedes government and violates the rights of the individuals in Massachusetts. As a libertarian, I certainly agree that it does. I also agree (and I don’t get to say this much) with both Rick Santorum and Abraham Lincoln that “the states don’t have the right to do wrong.” Violation of the rights to life, liberty, and property are wrong regardless of whether they are perpetrated by federal, state, or local governments.
But that’s not what Congressman Paul said. Paul did not assert the state government had any rights. He said the federal government does not have the power to override the states on this issue. This is a crucial distinction to make if one wishes to understand the Tenth Amendment and why violating it has been the chief cause of the national crisis we find ourselves in today.
The Declaration of Independence states that governments derive their just powers from the consent of the governed. It doesn’t talk about government rights because they do not exist. Governments don’t have rights. Only people have rights. Governments are invested with specific, limited powers by the people who establish them. Those powers originate in the people and are delegated to the government for the purpose of securing their rights, as the Declaration also states. If a power is not specifically delegated to the government, the government cannot exercise it. To do so is to exercise power without the consent of the governed.
For the men who declared independence from Great Britain, the consent of the governed was the only way to reconcile government power with liberty. The government was only allowed to exercise power the people agreed to delegate to it. The powers enumerated in the Constitution are those which have this consent, given through the representatives who drafted and ratified it.
Many libertarians today reject the idea that a majority vote can substitute for the consent of the individual. Therefore, they reject all government as the exercise of arbitrary power. Even those who do not hold this view must recognize that calling ratification of the Constitution by majority votes in the state legislatures “consent of the governed” still requires an extremely elastic definition of the word consent. But at least there is some argument to be made that the powers delegated in that document were agreed to by the people.
There is no argument to be made that powers not delegated in the Constitution have the consent of the governed. That is why there is an amendment process; so new powers can be delegated to the federal government if a majority of the states truly wish to do so.
The powers delegated to the federal government deal primarily with issues outside the states. Power is delegated to create armies and navies to defend the republic against invasion. Power is delegated to regulate interstate commerce, which was intended merely to prevent protectionism between the states. There is no power delegated there allowing the federal government to regulate anything within the states. As Thomas Jefferson said, “I believe the States can best govern our home concerns, and the General Government our foreign ones.”[1]
What does all of this have to do with Romneycare? It means Ron Paul was right. The government doesn’t have the power to “prevent the states from doing bad things.” Why not? Because the people of those states never consented to give the federal government that power. The federal government exercising powers not delegated to it, even to repeal a bad law, is not substantively different from Russia or China interfering in the legislative process of a state. Exercising power without the consent of the governed is tyranny, regardless of who perpetrates it.
There is always desire to allow the federal government to exercise this power on those rare occasions when it is actually overriding a bad state law, instead of writing bad laws of its own. As Kevin Gutzman documents in his book, The Politically Incorrect Guide to the Constitution, the states originally had a lot of internal laws that people today might not necessarily agree with. Some of the states had state religions. The Massachusetts Constitution originally required people to attend religious instruction. While libertarians would vehemently disagree with those laws, allowing the federal government to interfere is not the answer. Once that Pandora’s Box is opened, you are on the road to a $3.8 trillion a year federal government with a $14 trillion debt and $100 trillion in unfunded liabilities. Exercising non-delegated powers was the train it rode in on.
As I’ve said before, the Constitution itself was an enormous expansion of government power at the time. But even its delegation to the federal government of vast new powers had limits. Today, no limits are recognized. If the federal government can ever be fixed, those limits have to be restored. Individuals, local governments, and state governments all do bad things. But a federal government with unlimited power is not the answer. We’ve tried that for the past one hundred years. Not only is it time to start enforcing the Constitution’s limits on federal government power; it’s time to start imposing new ones.
[1] Jefferson, Thomas Letter to Justice William Johnson June 12, 1823 from Jefferson Writings Literary Classics of the United States edited by Merrill D. Peterson pg. 1476
Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.
Centralization Is Insane
The latest much-ado-about-nothing crisis passed, with a result that should seem familiar. In 2008, Americans were told that if the TARP bill (a $787 billion taxpayer-funded welfare handout to large banking institutions) wasn’t passed, the stock market would crash and massive unemployment would follow. After an unsuccessful first attempt to pass the bill amidst angry opposition from constituents, the bill passed on a second vote. Subsequently, there was a stock market crash followed by massive unemployment.
This time, our political/media cabal told us that if Congress was unable to pass a bill to raise the debt ceiling, that the government would not be able to meet its short term obligations, including rolling over short term bonds with new debt. U.S. debt would be downgraded from its AAA status, and a default would be imminent. After the melodrama, Congress passed the bill raising the debt ceiling. Standard and Poor’s subsequently downgraded U.S. Treasury debt anyway, and deep down everyone knows that a default is coming as well, one way or another.
We are seeing the end of a paradigm. Thomas Kuhn argued in The Structure of Scientific Revolutions that anomalies eventually lead to revolutions in scientific paradigms. His argument holds equally true for political paradigms as well.
A paradigm is a framework within which a society bases its beliefs. For example, people at one time believed that the forces of nature were the work of a pantheon of gods. Sunlight came from one god, rain from another. The earth was a god, as was the moon. With nothing to disprove the premises of the paradigm, it persisted. People went on believing that sunlight and rain were the work of sun and rain gods because there was no compelling reason for them to believe otherwise.
However, within any paradigm there are anomalies. Anomalies are contradictions – phenomena that cannot be explained within the framework of the paradigm. People have a startling capacity to ignore or rationalize away these anomalies. While it may defy logic to continue to believe that rain comes from a rain god even after evaporation and condensation has been discovered and proven, people would rather ignore the anomalies and cling to the paradigm than face the fact that the paradigm is false.
Once there are too many anomalies, the paradigm fails, and a new one must take its place. This new paradigm renders the old one absurd, even crazy. At some point in the future, people will look back on the political paradigm of the 20th and early 21st centuries in just this manner. There is at least one thing that will be quite obvious to them: centralized government is insane.
Consider the premises upon which this present paradigm relies: All facets of society must be planned and managed by experts. The judgment of the experts trumps the rights or choices of any individual. The choices made by the experts will result in a more orderly society and greater happiness for the individuals who comprise it. There will be better results from one small group of experts controlling everyone than multiple groups of experts controlling smaller subgroups of society.
Of course, libertarians reject every one of these assumptions on its face. A free society does not tolerate “planning” or “management” by anyone. All choices are left to the individual, as any attempt to plan or manage his affairs amounts to either violation of his liberty, looting of his property, or both. However, let’s assume that the first three assumptions of the present paradigm are valid and merely examine the last. Even that does not hold up to scrutiny.
Suppose an entrepreneur starts a business. At first, his market is local. He opens retail outlets that are managed by store managers. The entrepreneur is the CEO of the company and manages the store managers. Even at this point, the CEO must trust day-to-day decisions to his managers. He has no time to make everyday decisions as he tries to grow his business. The managers do this for him and he concentrates on strategic goals.
His business is successful and soon he begins opening outlets outside of the original market. He now has a need for regional managers to manage the store managers. He manages the regional managers and leaves the details of how they operate within their regions to them.
The business continues to grow. With retail outlets in every state, there are now too many regions for the CEO to manage directly. The CEO appoints executive directors to manage larger regions, each comprising several smaller ones. There is an executive director for the west coast, another for the Midwest, and another for the east coast. Of course, the CEO has the assistance of his corporate vice presidents who manage sales, operations, human resources, and other company-wide functions from the corporate office.
Now, suppose that one day the CEO decides to fire the executive directors, the regional managers, and the store managers. He will now have the salespeople, stock clerks, and cashiers for thousands of retail outlets report directly to him and his corporate vice presidents. Would anyone view this decision as anything but insane?
As silly as this proposition sounds, this is a perfect analogy for how we have chosen to organize society for the past century. The paradigm rests upon the assumption that every societal problem can better be solved if the CEO and his corporate staff manage the cashiers and the salespeople directly. Like all failed paradigms, anomalies are piling up that refute its basic assumptions.
This paradigm assumes that centralized government can provide a comfortable retirement with medical benefits for average Americans, yet Social Security and Medicare are bankrupt. It assumes that a central bank can ensure full employment and a stable currency, yet the value of the dollar is plummeting and unemployment approaches record highs (especially when the same measuring stick is used as when the old records were set). It assumes that the national government’s military establishment can police the world, yet the most powerful military in history cannot even defeat guerrilla fighters in third world nations. It assumes that the central government can win a war on drugs, yet drug use is higher than at any time in history. It assumes that experts in Washington can regulate commerce, medicine, and industry, yet we get Bernie Madoff, drug recalls, and massive oil spills.
Hundreds of years ago, the prevailing medical science paradigm assumed that illnesses were caused by “bad humors” in the blood. Based upon that assumption, doctors practiced the now-discredited procedure known as “bleeding.” They would literally cut open a patient’s vein in an attempt to bleed out the bad humors. As we now know, this treatment often killed the patient, George Washington being a notable example. Most rational people today view the practice of bleeding as nothing short of lunacy.
Ironically, this is a perfect analogy for the paradigm of centralized government. The very act of a small group of experts attempting to manage all of society drains its lifeblood. It is the un-coerced decisions of millions of individuals that create all of the blessings of civilized society. It is the attempt by a small group of people to override those decisions that is killing society before our very eyes. Someday, people will look back on our foolishness and laugh as we do now at the misguided physicians who bled their patients to death. The present paradigm is dying. The revolution has begun.
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.
Tom Mullen on Mike Church Post Show Show 8-1-2011
Tom Mullen as a guest on Mike Church’s Post Show Show to discuss Government default.
Tom Mullen on Live Free Now Radio Show 7-30-2011
Tom Mullen as a guest on Live Free Now Radio Show Hosted by John Bush and Jason Rink
Why a Debt Default Would Be Wonderful

While it is likely the two parties in Congress will reach a deal before the August 2 deadline, I can’t help reflecting on how wonderful it would be if they didn’t. While Congressman Ron Paul has correctly pointed out the government has already defaulted at least three different times in its history, and continues to default every time it prints new money, it is not quite the same as an “on-the-books” failure to make a timely payment. That is exactly what America needs.
Politicians, mainstream economists, and the media tell us a U.S. government debt default would be catastrophic. Treasury bonds would be downgraded, interest rates would soar, and the massive government spending that has supposedly fueled the present (jobless) recovery would be severely curtailed, plunging the U.S. and possibly the world back into a deep recession.
Perhaps that is true. Nevertheless, a debt default by the federal government would still be a blessing, for several reasons.
First, one must remember that all government spending represents a redistribution of wealth (what we regular folks call “stealing”). The government forcibly confiscates money from those who have earned it and spends it for the benefit of someone else. The most insidious way the government does this is by borrowing. When it borrows, it is confiscating money from people in the future – some of whom are not yet even born – to hand out to special interest supporters today. To the extent it would prevent or decrease this, a default would result in a more just society.
However, even if one doesn’t care about justice or property rights, a default would help correct the malinvestment that has caused this crisis in the first place. As I’ve said before, the entire U.S. economy is really one, huge bubble of misallocated resources, caused by a century of government intervention. The government’s backing of mortgages, together with monetary inflation by the Federal Reserve, were the primary causes of the housing bubble. This same dynamic exists in almost every sector of the economy.
The government also backs student loans for college. Just like it did to the housing industry, this government guarantee has inflated prices in higher education far beyond what could be supported by real demand. That in turn has led to the creation of millions of jobs in the education sector that only exist because the government subsidizes them. When the government funds are no longer there, the price of education will plummet, just as housing prices did, and all of those people will be out of work.
Healthcare is another sector with all of the same intervention-related problems. Government subsidies create artificial demand, inflating the price and misallocating resources to the healthcare sector. The healthcare industry is not forced to innovate in terms of delivering its services in more efficient ways because customers are forced to buy its products,
If you doubt this, just withhold the Medicare portion of your payroll taxes and see what happens.
This also creates jobs in the healthcare sector which are not supported by natural market forces. When the government can no longer subsidize them, those jobs will go away, just as they did in housing and education.
Banking, research, agriculture, energy, automobile manufacturing – there is not one sector where government is not overriding the voluntary transactions market participants would otherwise engage in. Wherever the government is spending taxpayer money, it is overriding a previous choice by taxpayers not to purchase that product. As F.A. Hayek observed in The Road to Serfdom, the government has never and can never make better choices than millions of market participants acting in their own self-interest. They simply lack the information necessary to do so.
Therefore, wherever the government is spending money to try to boost some aggregate statistic, it is making a problem bigger. If government spending is creating jobs, they are not real jobs. A real job is a voluntary contract between a buyer of services (an employer) and a seller of services (an employee). If that job is created because of government spending, a third party is introduced into the transaction who is not acting voluntarily.
Government-created jobs force taxpayers to purchase services from employees because it is not profitable for the employers in that sector to purchase them. Forcing taxpayers to purchase them doesn’t make those jobs any more profitable. It just depletes the capital available to create profitable jobs elsewhere.
The prospect of tens of millions more people unemployed may seem frightening, but that day is coming regardless of what politicians do. Economic laws are like the laws of nature. They will assert themselves in the end. Any job that requires the government to borrow more money to subsidize it is also a job that depends upon the lenders continuing to lend. As we have seen in recent Treasury bond auctions, those days are coming to an end. Raising the statutory debt ceiling only allows more phony jobs to be created, setting up more employees for the painful correction.
The most important reason a debt default will be beneficial is a philosophic one. It will force a complete paradigm shift in the way Americans think about the role of government. For a century, there has been no area of life that some special interest has not appealed to government to manage or subsidize. From the way we conduct commerce to the way we make personal decisions on food or healthcare to the way we coexist with our neighbors in other countries, nothing has been off-limits.
Complacency about our liberty has been one reason. The other has been the perception of infinite financial resources. The great wealth the United States generated in freer days provided a tax base and borrowing collateral that has always been perceived as unlimited. A debt default would shatter that foolish perception.
The default would be a bucket of cold water in the faces of a drowsy and compliant populace. It would wake people up to the reality Thomas Paine was aware of over 200 years ago, when he wrote that government “is at best, a necessary evil.” People would realize the government doesn’t “have our back,” other than to stick a gun in it to loot our liberty and wealth. We would no longer hear that horrid refrain from media pundits after some new government incursion or heist: “Well, the government had to do something.”
Instead, we would hear the resigned chorus, “Well, the government couldn’t do anything.” And perhaps, in some glorious, enlightened future, we’ll hear “The government shouldn’t do anything.”
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.
Tom Mullen on Ron Paul Money Bomb Radio Broadcast 7-19-2011
Tom Mullen joins host Wes Messamore for an interview on the Ron Paul Radio Broadcast at Ready For Ames
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