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The Three Types of Government Spending

Any objection whatsoever to some new, tax-funded government program elicits a consistent response from liberals or progressives. “You just don’t want to pay your fair share,” or “I guess we won’t see you driving on any of those government roads or calling the government police or fire departments.” The underlying assumption is that taxation is an all or nothing proposition. Either there is nothing that the government can collect taxes for or there is nothing that the government cannot collect taxes for. There are no principles upon which to base an answer to the question, “Is this a legitimate function of government?”

While there are probably thousands of different services that governments spend money on, they can generally be divided into three broad categories: security, public services, and wealth redistribution. Libertarians[1] argue that the only legitimate government spending is on security. Conservatives generally approve of security and some public services with their rhetoric while engaging in all three types of spending when in public office. Liberals generally endorse all three types of spending with both their rhetoric and their actions while in public office.

“Security” includes all government functions which attempt to defend citizens from aggression against their rights by other human beings. These would include the military, various police forces, and the civil and criminal courts. These are the functions of government whose purpose is to secure the individual rights of life, liberty, property, etc.

It is important to remember that even if these are legitimate functions of government, it does not mean that they cannot be abused. For example, a small suburban village in a low-crime area may not need more than the county sheriff for a police force, but may instead bear a tax burden of village, town, county, state, and even federal police forces. However, these debates revolve around how efficiently the services are being provided, not whether they should be provided by the government at all.

“Public services” generally refers to services provided to all members of society. What makes a service a “public service” is that it can be reasonably assumed that every member of the society has an equal opportunity to utilize it. Examples include roads, bridges, public libraries, garbage collection services, and fire departments. Libertarians argue that these are goods and services that the private sector can provide. Their objection to providing them with tax dollars is that those who do not consent to purchase them are still forced to pay. While this is also true of security services, libertarians acquiesce to those on the assumption that it would be impossible to exercise property rights without a government in place to defend them.

Certainly, a bridge between a new suburb and the city may improve commerce for the entire city. However, it is not necessary to protect anyone’s rights. Therefore, libertarians argue that those who want to build the bridge should provide the capital for it themselves and are perfectly within their rights to charge a fee to those who wish to use the bridge. Conservatives have traditionally argued that these services can be funded by the government and provided by private corporations under government contracts. Liberals generally support public services as well, although they sometimes object to them being provided by private firms.

Like security services, public services are prone to abuse and corruption, even if one accepts that they are legitimate functions of government. Public funds are often wasted on services that are not needed or services that are poorly rendered because they are provided by politically-connected government employees or private firms, rather than by the most qualified. Consider the “bridges to nowhere,” the roadwork construction projects that never end, or the multitude of scandals where it was discovered that $500 was spent on a single nail or some other gross abuse of public funds occurred.

The third category of government spending is wealth redistribution. Wealth redistribution collects taxes from one group of people in order to provide services to another group. What makes this type of government spending different from public services is the fact that the goods or services provided do not benefit all members of society equally. For example, health benefits under Medicaid are paid for by all taxpayers but are only available to people whose income is under a defined eligibility level. Thus, those funds are literally taken from one group and redistributed to another. Both libertarians and conservatives argue that this is nothing more than legalized theft, although conservatives have often led or acquiesced to expansion of this type of spending once in office. President Bush’s expansion of Medicare is one of the most recent examples. Liberals and progressives generally support this type of spending, arguing that it is each person’s moral responsibility to “contribute.”

In order to have an informed debate about a new government program, one must identify which category the proposed program belongs in. Too often the distinctions between these categories are blurred by both critics and proponents. Most often, a program that would properly be categorized as wealth redistribution is represented as a public service in an effort to persuade those that must pay for it that it is their civic duty to do so.

Read the rest at Euro Pacific Capital…

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.

What is Limited Government?

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It is certainly encouraging to see a massive grassroots movement demanding that government cease its exponential growth. The Tea Party movement has already flexed its muscles in some high-profile elections, and there is widespread consensus that it will be a factor in the 2010 elections. For the first time in over a century, there is a critical mass of people actually demanding limited government.

However, there is one very important question that must be answered. What is limited government?

The answer supplied by Republicans for the past several decades has been “lower taxes, balanced budgets, and less government spending.” These are all wonderful ideas, although Republicans have hardly put them into practice when given the reins of power. Afterwards, their supporters have chastised them for “not being true conservatives,” although I’m not sure that the conservative movement has ever really been about “small government.” In any case, the fundamental assumption underlying conservative rhetoric is that the limits of government are quantitative. One is led to believe that if the government would only spend less on health care, education, stimulus packages, and other programs (excluding the military, of course), that freedom, peace, and prosperity would be just around the corner.

However, limited government has nothing to do with how much money government spends, but rather what government is allowed to spend money on. Restoring freedom and constitutional government depends not just upon cutting taxes, but redefining what services government can legitimately tax its citizens to underwrite. At one time in America, there was a clear and unambiguous answer to that question: taxation was limited to underwriting the defense of life, liberty, and property.

Politicians have to mince words in order to keep fragile constituencies together, so they rarely make unambiguous statements. When one faction among their supporters opposes a new government health care program, they cannot agree on principle and say that government should have no role in providing health care. This would alienate another faction among their supporters that are currently benefitting from an already well-established government health care program. So, the politician uses words like “sensible” and “market-driven” in order to attack his opponent’s program without acknowledging the principle that it violates whether administered “sensibly” or not.

Truly limited government can only mean one thing: enforcing the non-aggression principle, known to our founders as “the law of nature.” Jefferson said that no man has the right to commit aggression on the equal rights of another, and that is all from which the law ought to restrain him. As government is merely the societal use of force, its limits are no different than the limits on the use of force by an individual. An individual may use force only in defense against aggression and under no other circumstances. He may never initiate force. The words “sensible,” “lower,” and “smaller” do not apply. The limits on government are absolute.

The argument that needs to be made against the current health care program is that it violates the law of nature. By forcing some people to pay for health care services that are provided to others and by forcing everyone to purchase health insurance regardless of their consent, government exceeds the natural limits of its power. It initiates force and thereby commits aggression against every individual in society. The initiation of aggression results in the state of war. It is for this reason that the new health care program should be repealed. Once the argument is diverted to one simply about cost or the practical means to fund the program, the principle of limited government has been abandoned.

While this is a relatively simple answer, as are all answers to questions of justice, it is a double-edged sword for conservatives. Once the true limits of government power are acknowledged, then a large swath of the conservative platform is called into question. Most obviously, garnering support from older Americans in opposing “Obamacare” on the grounds that it will necessitate cuts in Medicare contradicts the principle of limited government. The flimsy distinction between the new health care program and the old has been that Medicare recipients have “paid into the system all of their lives.” While this is undoubtedly true, everyone knows that those payments all went to underwrite previous beneficiaries and not into some magical trust fund. Medicare is no less a redistribution program than Obamacare. It just benefits a different special interest group.

While support for Medicare may merely be a political necessity for conservative politicians, truly limited government is also at odds with what has become the bedrock of modern conservatism: support for the worldwide U.S. military establishment. This is not to say that limited government means no military establishment at all. However, it does mean that the government has no legitimate authority to maintain standing armies overseas, to fight wars to protect one nation from another, or to protect a foreign people from a despotic government. The natural limit of government military action is to defend its own citizens against aggression by a foreign nation. Beyond this, it is initiating force and exceeding that natural limit.

One might argue that every individual has a right and a duty to protect a fellow human being from aggression by a third party, and that therefore the U.S. government’s military interventions around the world are justified. This was the basis for the (second) argument for the Iraq war. Saddam Hussein was oppressing his people and the United States had a duty to protect them from him. However, no individual has a right to force someone else to defend a third party against aggression. Every American had the right to send money to support Hussein’s opponents or even to go and fight in a revolution to overthrow him. However, no American had the right to force his neighbor to do so. The natural limit on military spending is that which is necessary to protect those taxed to support it. Humanitarian aid in any form must be voluntary.

Liberals constantly use the term “fair share” when justifying the egregious taxation and redistribution system that the U.S. government has become. Of course, this begs the question, “What is my fair share of services that I don’t use and that I actively oppose?” The only rational answer to this question is “zero.” However, once you come to this inescapable conclusion, virtually all government social and economic programs must be eliminated, as they are all based upon taxing one person in order to provide benefits to another.

Limited government does require each individual to pay his fair share, which is the cost to protect his own life, liberty, and property and that of his dependents. It is limited to what is necessary to “secure these rights.” While everyone may not have an equal amount of property, everyone has equal rights and thus an equal stake in providing for their defense. An examination of the U.S. government’s budget reveals that the cost of providing this defense of individual rights is orders of magnitude less than what is spent now. A government operating within its natural limits would not require an income tax, a value added tax, or a “fair tax.” American history has already proven this.

While it may be justified in a theoretical sense, America’s massive redistribution state cannot be abolished with the stroke of a pen. Not even the staunchest libertarian really wants to see Social Security, Medicare, or public welfare turned off tomorrow, with the poor and elderly left to fend for themselves. However, to be committed to limited government means to be committed to working towards eliminating these programs, not reforming them. This may take generations to accomplish, but we must first at least acknowledge that they have to go.

What we can do right now is end our worldwide military empire. Unlike the social programs, this would not mean short-term hardship in exchange for long-term gain. Getting our soldiers out of the 130 countries that they are stationed in would provide an immediate benefit both to the United States and the rest of the world. Proponents of the empire would argue that a sudden withdrawal of our troops would “destabilize” the regions that they are stationed in, but this is absurd. The presence of troops does not provide stability. It inspires resentment and provokes the inhabitants to retaliate. Without a troop presence in the Middle East, the motivation for terrorism would quickly fade. It is much easier to recruit suicide bombers when you can show your recruits armed troops in their own neighborhood than it is trying to convince them to give their lives to stop women in some far off land from wearing mini-skirts. Does anyone really believe that this is why they want to kill us?

A little simple arithmetic will demonstrate that even eliminating all military spending would not allow us to pay for our welfare state. The total military budget is around $700 billion, while Social Security and Medicare alone are over $1 trillion, with Medicaid adding $400 billion more. This does not even take into consideration all of the smaller programs for housing, education, medical research, “infrastructure,” energy, agriculture – all of these programs violate the principle of limited government for the same reason that Obamacare does. Added together, the vast majority of non-military federal spending is some type of wealth redistribution. It would seem that there is no equitable way out.

The answer lies in revisiting the “fair share” idea. Unlike taxation, there is no such thing as a fair share of benefits derived from other people’s money. We must recognize that in order to undo the century of damage we have done to our society, some people are going to have to pay out more than they receive in benefits. We could certainly come up with a plan whereby people my age, in their mid-40’s, would only be guaranteed catastrophic coverage through Medicare and reduced payments from Social Security, both payable only with a demonstrated need rather than as an entitlement. This would allow new workers to get out of the system altogether and finally restore limited government and true social justice. Would it be fair? No. Neither is the status quo. However, it would lead to prosperity and justice for our children. The status quo will lead us to our destruction.

This is only one strategy and I am sure that smart people could come up with others. As the old saying goes, the first step in solving our problem is admitting that we have one. If we want limited government, we must recognize that it is far more than Obamacare or welfare for the poor that is violating the law of nature. Let us continue to oppose Obamacare, but let us also acknowledge the vast amount of work to do even after this new incursion into our liberty is vanquished.

Check out Tom Mullen’s new book, A Return to Common Sense: Reawakening Liberty in the Inhabitants of America. Right Here!

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>The Fed Audit Goes the Way of the Tea Party

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>”Once you admit that the individual is merely a means to serve the ends of the higher entity called society or the nation, most of those features of totalitarianism which horrify us follow of necessity.”

– F.A. Hayek, The Road to Serfdom (1944)

When Congressman Ron Paul proposed his bill to subject the Federal Reserve System to regular audits, it was no secret what his ultimate objective was. If there was any doubt, his subsequent book, End the Fed, eliminated it. Congressman Paul hoped to educate the public about just what the Federal Reserve does – transfer wealth. With regularly scheduled audits, average Americans would see that new money and credit created by the Fed in the form of loans makes its way quickly and consistently to Wall Street, defense contractors, and government agencies.

Meanwhile, people would slowly begin to catch on that this apparent act of magic was not without a cost; that in fact, they were bearing the cost themselves through the loss of their purchasing power due to inflation of the money supply. This could plausibly start a popular movement to do exactly what Paul has been calling for throughout his political career. The key to the strategy was to educate Americans on the principle at issue with the Federal Reserve.

The principle is each individual’s right to keep his own property, which the Fed is completely antagonistic to. The Federal Reserve System is an instrument of theft. Even if managed flawlessly (which it never has been) by its government-appointed central planners, the Fed would still accomplish every one of its goals by taking property from some people and giving it to others. It is no less a wealth redistribution scheme than Medicaid, food stamps, or Social Security. The only difference is a cosmetic one. Instead of clumsily removing dollars from Person A’s bank account and depositing them into Person B’s, as Congress does through taxation and appropriation, the Fed operates with a more graceful subtlety. It allows Person A to keep his dollars while merely creating new ones for Person B. However, Person B’s new purchasing power has not been created. It has been stolen from Person A, whose dollars are now worth something less than they were before the new dollars were printed.

It is no mistake that a state-controlled central bank with an exclusive monopoly was one of Karl Marx’s ten planks of the Communist Manifesto. A system in which people are forced to use a state-sponsored currency, manipulated by a central bank to transfer wealth in support of the goals of the state at the expense of the individual is a completely communist, collectivist idea. No matter which monetary policy is pursued, the existence of monetary policy is anti-capitalist and anti-freedom.

Sadly, that central point has been largely obscured due to the varied ideologies of the people that make up the coalition that Congressman Paul has put together. Instead of an indictment of the ongoing theft that central bank monetary policy represents, the focus has shifted exclusively to the money and credit created during and after the financial crisis of 2008. The newly proposed one-time audit will show that the funds were directed towards Wall Street banking giants and foreign central banks. Both then and now, the cries of “but what about average Americans?” can be heard from populists of every political persuasion. It is no longer a question of whether or not we should steal, but rather how we should split up the loot.

It is important to remember that even if 100% of the money and credit in question was instead directed to average Americans in danger of mortgage foreclosure, it would still be stealing. The purchasing power in question would still have been taken from Person A in order to be redistributed to the troubled borrowers. Moreover, it would be just as economically destructive, as all wealth redistribution by government ultimately is. The only distinction would be that a different special interest group would be benefitting at the expense of the rights of those victimized to underwrite them.

This dearth of principle is pervasive in political protest movements in America today. There are no end of demagogues calling up the ghosts of early American heroes of liberty; some even wearing three-cornered hats for effect. The Tea Party is one example. Certainly it is laudable that its members oppose “Obamacare,” but how many would show up for Tea Party rallies if opposition to Medicare was also part of the platform? In reality, the lion’s share of support for the so-called Tea Party comes from Medicare beneficiaries who object not to government-provided health care, but to the program that they benefit from being cut to fund a program for other people. They also largely support the forced redistribution of wealth from individuals to military contractors and the government in support of the United States’ worldwide military establishment, which they extol as if it weren’t also a massive government program.

It is a sobering reality that any real understanding of liberty has been completely eradicated in the minds of most Americans today. Instead, we have become a collection of special interest groups, all competing with each other politically for other people’s money. Our “progressive” education system has rendered most Americans completely incapable of conceiving that there is an alternative to a government-directed economy. When confronted with the bank bailouts of 2008, the universal, conditioned response was one of outrage that wealthy bankers were getting public funds and average American homeowners were not. The idea that it was a violation of the rights of those from whom the money was taken never entered into their minds.

Why would it? That principle had never been taught to them in school. It was not voiced in the media. No politician, conservative, liberal, or otherwise, articulated it at all. The closest thing to it was the “moral hazard” argument, that rewarding the people who caused the problem would only lead to further problems. However, this is a sound economic argument made from a collectivist perspective, based upon what might acheive the best aggregate results, rather than one based upon freedom or individual rights. That the economic analysis happens to be true in the case of the “moral hazard” argument only further obscures the fundamental principle that makes it true. One might conclude from this argument that central planning and wealth redistribution would be beneficial if the planning and redistribution were done more wisely. The moral hazard argument correctly points to a negative effect but distracts us from the underlying cause – the violation of individual rights. It is this underlying cause that is at the root of every societal problem facing America today.

All resistance to government wealth redistribution is a good thing, regardless of whether the motives of every protestor are completely “pure” as defined by political theorists. The one-time audit of the Fed will be helpful, even if it is motivated in large part by the politics of jealousy rather than principle. However, it is the job of everyone who believes in and yearns for freedom to point out early, often, and loudly that the central objection to the Fed should be that it steals in the first place, not to how it divides up the take. Once that distinction is clear in the minds of average Americans, it is a cure for virtually all of our afflictions of government.

Check out Tom Mullen’s new book, A Return to Common Sense: Reawakening Liberty in the Inhabitants of America. Right Here!

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Fighting For Our Freedom?

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iraq war To even question the active wars in Iraq and Afghanistan or the now-institutionalized worldwide military empire being maintained by the U.S. government draws tourrettes-like attacks from all who identify themselves as conservatives. Not only are critics of U.S. foreign policy accused of being unpatriotic or even traitorous, but conservatives routinely go so far as to label them ungrateful. The argument goes that critics of the empire enjoy the freedom of speech with which they criticize the government only because the military has fought to defend that freedom. Therefore, those who oppose the present wars or our military presence around the world should be ashamed of themselves for “biting the hand that feeds them.”

Of course, this argument rests upon an assumption. The assumption is that if the U.S. had not fought any of its past or current wars or had not maintained its military presence around the world, that we would have lost some or all of our freedom. This fundamental assumption is never questioned (or I suspect even considered) by supporters of U.S. foreign policy, despite the fact that it completely disintegrates under even superficial examination.

Let’s give conservatives WWII for now, Pat Buchanan’s interesting arguments notwithstanding. Is there any credible argument to be made regarding any of the major wars that the United States has waged since 1945 wherein one could conclude that not fighting it would have resulted in a loss of freedom for Americans? What chain of events can any reasonable person construct whereby U.S. citizens would have lost their freedom if not for the invasions of Korea, Viet Nam, Afghanistan, or Iraq?

The first two post-WWII wars were justified for ostensibly the same reason. We supposedly had to prevent the communist governments of North Korea and North Viet Nam from taking over South Korea and South Viet Nam, respectively, because if we did not, communism would spread like a virus throughout all of Asia and eventually the world. This was the so-called “Domino Theory.” While anyone with a globe that is more or less correctly scaled can see through the ridiculousness of the argument in terms of Korea, one need not even resort to conjecture to refute this argument regarding the Viet Nam war. History has shown in its case that the domino theory was completely untrue.

North Viet Nam did take over South Viet Nam. The U.S. pulled out of Viet Nam in defeat and the very outcome that the U.S. had spent 14 years, the lives of 50,000 U.S. soldiers, and hundreds of billions of dollars attempting to prevent came to pass. The communists took over all of Viet Nam.

Did American citizens lose any freedom as a result? No. In fact, as young men were no longer conscripted into the army to participate in this futile exercise, anti-war protestors were no longer being suppressed, and a huge chunk of government spending was eliminated (in theory, anyway), Americans were actually far freer once the war was lost than they were while it was being fought.

There is no argument to be made, no matter how far logic is stretched or how much disbelief is suspended, that Americans lost any freedom as a result of the loss of the Viet Nam war. Therefore, the assertion that the troops fighting it were “fighting for our freedom” must be false.

Moreover, communism didn’t spread like wildfire beyond Viet Nam. After approximately 12 years, it imploded there just as it did in China at about the same time. In the mid-1980’s, the Vietnamese began transitioning to a market economy, just as China did. Today, both countries are arguably as capitalist as the United States, which unfortunately isn’t saying much.

As for Korea, the most generous conclusion one could come to regarding the “fighting for our freedom” theory is that the jury is still out – sixty years later. U.S. troops are still stationed at the 38th parallel, supposedly keeping the communist barbarians from taking over South Korea as a stepping stone to the rest of the world. Here speculation is certainly necessary, but not random speculation. While it certainly would not be a postive outcome for South Koreans, can anyone seriously argue that if North Korea took over South Korea tomorrow that American freedom would be lost or even noticeably diminished? How?

Fast forward 25 years and consider the present war in Iraq. That war was started based upon on the assertion that Iraq possessed weapons of mass destruction that it was preparing to use against its neighbors to destablize the Middle East. Let’s pretend for a moment that this assertion was not proven completely false. Exactly how would another war in the Middle East, which would presumably resemble Iraq’s ten-year war with Iran, jeapordize the freedom of American citizens? What cause and effect relationship could possibly be established between Middle Eastern politics and American freedom? This question has to be answered before the “fighting for our freedom” assertion can be proven.

There is only one answer: none. The Middle East has been unstable for thousands of years, and freedom has come and gone for countless western nations regardless of political devleopments in the Middle East, with the exception of the actual invasions of Western Europe by Muslim nations in the Middle Ages. Those were ultimately defeated. Certainly today the Middle Eastern nations pose no military threat to Europe, much less the United States. To assert that Afghanistan could possibly threaten American freedom borders upon the absurd.

Putting the active wars aside for the moment, any objective observer would be even harder pressed to conclude that the U.S. military presence in the other 135 countries in which the U.S. maintains troops is contributing anything toward American freedom. Can anyone seriously argue that if the U.S. government were to remove the 56,000 troops presently stationed in Germany that American freedom would somehow be jeopardized? How? The same question applies to the 33,000 troops in Japan, the 10,000 in Italy, and so on. There is simply no reasonable argument to be made that Americans would be one iota less free if all of these troops were to come home.

Warfare conducted for any purpose other than defending the borders of the nation does not make Americans freer. On the contrary, it destroys freedom without exception. More of Americans’ property is confiscated in taxes to support warfare. Freedom of speech is curtailed. Opponents of the war are rounded up and imprisoned or exiled. Privacy is destroyed by the government in search of enemy spies or saboteurs. These destructions of freedom have occurred during every war that the United States has ever fought, including all of the wars of the past 60 years.

Furthermore, America’s vast military presence in countries where no active war is being fought also results in less freedom for Americans. Regardless of the public relations efforts of the U.S. military establishment, foreign troops are universally regarded the same way by the citizens of countries where they are stationed: they are resented. This resentment breeds terrorism in some countries and other forms of protest in others. Americans traveling abroad are much less free in what they can do, where they can safely go, and where they are welcome because of resentment born of U.S. troops stationed in foreign nations.

As Randolph Bourne famously observed, “war is the health of the state,” and the state is the enemy of freedom. America was founded upon the idea that the state was “at best a necessary evil” and that there was an inverse relationship between war and liberty. James Madison wrote that if “tyranny and oppression come to this land, it will be in the guise of fighting a foreign enemy. No Nation could preserve its freedom in the midst of continual warfare.” History has proven him correct. In the post-WWII era, the wars have become more numerous and longer and government has grown exponentionally. With the expansion of war and the state, freedom has diminished.

This is not an argument for pacifisim or against the actual soldiers. We live in a world with other nations that pose a threat to our lives and liberty and there must be some means to defend ourselves against an aggressor nation. Whatever their reasons for joining, the men and women who serve in our miltary do make a huge sacrifice. The overwhelming majority of them serve honorably both on the battlefield and off. They join believing that they are defending our nation and freedom and the blame for our foreign policy does not rest with them. A military force cannot function with each of its members questioning every order before carrying it out. They have an obligation to disobey an order which is obviously immoral, such as shooting a non-combatant or torturing a prisoner, but beyond situations like those they must carry out their orders without question. They place a sacred trust in their civilian leaders to deploy them only when it is absolutely necessary.

It is those civilian leaders who have violated that trust over and over again for the past sixty years. It is they who have not supported our troops, spending their lives like so much loose change in wars that have been fought for everything but freedom. They have sent them to countries that pose no military threat to the United States whatsoever and then tied their hands with rules of engagement that, whether intentionally or not, have prolonged those wars for years and even decades. There can be no greater insult to the honor of brave soldiers than to exhort them to give their lives defending freedom when in fact freedom is not at issue in the war.

The United States government is broke. It has accumulated a debt that can never legitimately be repaid. While entitlement programs are ultimately far more economically destructive, costing over twice as much as U.S. military adventures, the $700 billion annual military budget is the next largest contributor to the deficits. Of that $700 billion, less than $200 billion is spent fighting the two current active wars. An active war should represent the high water mark of government spending, yet most of our military expenditures go to support standing armies in places like Germany and Japan.

It is evident that the military could be downsized by orders of magnitude without jeapordizing U.S. security in the least. In fact, the U.S. would be far more secure without troops in 135 countries inspiring resentment against Americans and fighting wars against nations that could not launch a military attack against the United States in anyone’s wildest dreams. Most importantly, the lives of hundreds of thousands of our troops, their opponents, and the innocent civilians in the countries that they fight in would be spared.

The gargantuan U.S. military establishment survives because American soldiers and civilians continue to accept the assertion that it is necessary to preserve our freedom. This assertion is at best a destructive delusion and at worst an insidious lie, told by people who care nothing for our troops or the civilians they defend. It is time to stop believing the lie and to truly support our troops. Bring them home.

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

The Three P’s: Things Government Cannot and Should Not Do

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In this late stage of America’s devolution from constitutional republic to social democracy, one is hard pressed to find meaningful debate about the role of government. Despite a 24/7 news cycle and endless political commentary on talk radio, most Americans have not once in their lives heard the question, “What is the purpose of government?” Certainly, we hear that “the government should do this” or “the government should not do that” in regard to particular issues, but nowhere will you hear a meaningful discussion about the overall mission of government. Indeed, answering this question might not be all that beneficial to our chattering classes, because once it is answered, there is little need for hours and hours of more talk. Clarifying the role of government makes the answers to most political questions rather simple and unambiguous. It is hard not to suspect that many of our politicians avoid this subject intentionally.

If America is truly the “land of the free,” then there can be only one answer to this question. The purpose of government is to defend its constituents against aggression. Period. Since “liberty” and “the non-aggression principle” are one and the same, it is impossible for government to have any other purpose, or any additional role.

As government is by definition the societal use of force, any action of government other than defense against aggression must itself be aggression. To induce human action through aggression is coercion. When coercion is practiced by government, it is called tyranny.

Freedom is the ability to exercise one’s will in the absence of coercion. Therefore, freedom is impossible once government is allowed to perform any function other than defense. If freedom is exercising one’s will in the absence of coercion, one cannot be free while being coerced. Two plus two cannot equal five.

That leaves a multitude of actions that government must be prohibited from engaging in. They generally fall into three categories, which I like to call “the Three P’s.” The Three P’s are to prevent, to promote, and to provide. There is no way for government to engage in any of these three activities without destroying the liberty that it supposedly exists to defend. Yet, this is 99 percent of what government in modern America does.

Most Americans look to government to prevent crime. Once a particularly heinous crime is reported in the media, there are universal outcries about the failure of government to prevent it. Almost no one stops to think about what it really means for government to “prevent crime.” By definition, to prevent something is to act before it happens. Since all government action represents the use of force, government can only prevent crime by initiating force against people who have committed no crime. Force must always be initiated by someone. The initiating party is the aggressor. There is no other possibility.

This is not merely a theoretical or academic argument. Think for a moment about the results of government’s various “crime prevention” efforts. Gun control disarms the victims of crimes while empowering violent criminals who don’t care about gun control laws. Economic regulations which attempt to prevent fraud insulate protected corporations from competition, emboldening them to commit more fraud. Worst of all, the War on Terror, the ultimate government crime prevention program, has harassed millions of American citizens while allowing terrorists to walk onto planes with explosives in their shoes, underwear (and who knows where else), and has laid waste to an entire nation in order to determine that the “weapons of mass destruction” it supposedly possessed did not in fact exist.

In addition to preventing crime (including terrorism), that war also claims to undertake another of the Three P’s: to “promote.” Once it became clear that there were no weapons of mass destruction in Iraq, a new rationalization was needed for our brutal invasion of that country. That new reason turned out to be our missionary desire to “promote democracy.” Without getting into the erroneous perception that “democracy” and “freedom” are synonymous, it should be quite clear after seven years of uninterrupted martial law in Iraq that our government has failed to achieve either democracy or freedom. Only government can be capable of missing the irony of ordering people at gunpoint to be free. While it might play for some good laughs in a Peter Sellers or Monty Python movie, it is really quite horrifying when one considers that our government takes this position in all seriousness.

It is not only in foreign policy that government reaps disastrous results when trying to “promote.” Consider its attempts to promote “clean energy.” One need look no farther than the ethanol fiasco or “Climategate” to see the results government gets in promoting respect for the environment.

The same underlying reason accounts for the similarity of results when government tries to “promote” or to “prevent.” In both cases, force is initiated against individuals who have committed no aggression themselves. In order for government to “promote” anything, it must act. When government acts in the absence of aggression, it commits aggression. By committing aggression against and therefore overriding the decisions of millions of individuals, government causes innumerable unintended consequences. All of them can be traced to the initiation of force.

The third of the Three P’s is by far the most destructive when undertaken by government: to provide. The illusion that government can “provide” anything springs from a loss of recognition of what government is. Government is the use of force, not by an individual, but by all of society. As it is a destructive force, rather than a creative one, it can produce nothing. Therefore, it can only provide something to one citizen that it has forcefully seized from another. This holds true whether it is attempting to provide healthcare, education, housing, or any other form of property.

The fact that human beings spend the majority of their time on earth laboring to fulfill their wants or needs makes this the most costly of the Three P’s. While warfare represents violent aggression against millions of people, government’s usurpation of human labor initiates violence against everyone. While the cost of warfare in human lives cannot be expressed in dollars and cents, there is at least a limit to the amount of lives it can affect and the length of time it will go on (despite government’s best efforts to make it universal and indefinite). However, once government has claimed a right to the labor of its constituents, no one is spared and the subjugation never ends.

While the active wars in Iraq and Afghanistan amount to less than $200 billion per year (as if those amounts were not staggering themselves), the U.S. government spends trillions of dollars each year attempting to provide its citizens with healthcare, retirement benefits, education, housing, and other necessities. Government’s results in all of these areas are the same: disastrous. The healthcare, education, and housing provided by government are more expensive, of lower quality, and in shorter supply than would be the case if government did not attempt to provide them. Aggression cannot create prosperity any more than it can create freedom.

Thomas Paine wrote that “government is at best a necessary evil.” He understood clearly what government is: an institution of violence. As individuals, we understand that the need may arise to commit violence against another human being, but only justifiably for one reason: to defend our lives against aggression. Should we be faced with that unfortunate choice, we may be justified in resorting to violence but afterwards regret that the need to do so arose. Most importantly, no sane person claims a right to initiate violence under any other circumstances. As we do not possess this power as individuals, we cannot delegate this power to government. Any legitimate power possessed by government must derive from the individuals who constitute it.

To put it most succinctly, government must always be limited to a negative power. It is the societal extension of the individual right of self defense. As individuals cannot use force to prevent, promote, or provide, government cannot either. Individuals have no right to force one another to do anything, even if they believe that it is in the victims’ best interests. So, whenever the question arises of whether government should involve itself in some new aspect of its citizens’ lives, remember the Three P’s. If the new program represents any of them, it is time for each individual to exercise his most basic right in respect to his government: the Fourth P, to prohibit.

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

The Constitution Does Not Protect Our Property

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>The U.S. Constitution is widely believed to have been written to limit the powers of the federal government and protect the rights of its citizens. Inexplicably, this belief is held even by those who acknowledge that the constitutional convention was called for the express purpose of expanding the powers of the federal government, supposedly because the government under the Articles of Confederation was too weak. That this was the purpose of the convention is not a disputed fact. Nevertheless, most people who care at all about the Constitution continue to believe and promote the “Constitution as protector of rights” myth.

To the extent that the Constitution enumerates certain powers for the federal government, with all other powers assumed to be excluded, it does set some limits on government. When one includes the first ten amendments of the Constitution, it also protects certain rights. Indeed, the ninth amendment makes the very important point that the specific protections of certain rights does not in any way deny the existence of others, while the tenth amendment makes explicit the implied limitation to enumerated powers in the Constitution itself. At first glance, the so-called “Bill of Rights” seems to confine government power within an airtight bottle, rendering it incapable of becoming a violator of rights instead of protector of them.

However, this theory does not hold up well under closer examination. To begin with, the Constitution itself does not protect a single right other than habeas corpus, and that comes with a built-in exception. What the Constitution does do is grant powers, and not just to a representative body, as the Articles of Confederation did, but to three separate branches. That leaves it up to the Bill of Rights to serve the purpose of protecting our rights. Generally, those ten amendments protect our rights under extraordinary circumstances, but not under ordinary circumstances. More specifically, the Bill of Rights provides protections for the individual during situations of direct conflict with the federal government, such as when one is accused or convicted of a crime, when one is sued, on the occasion of troops being stationed in residential areas, or when one speaks out against the government or petitions it for redress of grievances.

Make no mistake, these protections are vital and have provided protections for the people against government abuse of power many times in U.S. history. However, they have proven ineffective against the slow, deliberate growth of government power under ordinary circumstances, when the specific conditions described in those amendments do not exist. This is primarily due to the absence of protection, either in the Constitution or in any subsequent amendment, of the most important right of all: property.

By “property,” I do not mean exclusively or even primarily land ownership, although land ownership is one form of property. By “property,” I mean all that an individual rightfully owns, including his mind, body, labor, and the fruits of his labor. It is specifically the right to the fruits of one’s labor that the Constitution fails entirely to protect. In fact, it makes no attempt to do so whatsoever.

In the Constitution itself, the word “property” appears only once, and that is in reference to property owned by the federal government (an inauspicious start). Nowhere does it make any mention of property owned by the citizens.

The document does grant the federal government the power to tax “to pay the Debts and provide for the common defense and the general welfare of the United States.” This is a strikingly unlimited scope for which the federal government may tax its citizens. Arguments that taxes may only be collected to underwrite the subsequently enumerated powers have been struck down. Sadly, those decisions have probably been correct. While the power of the Congress to pass laws is explicitly limited to those “necessary and proper for carrying into Execution the foregoing Powers,” no such language binds the power to tax. The fact that the explicit limitation exists for lawmaking (which Congress ignores anyway) but not for taxation lends further weight to the argument that the Constitution grants Congress unlimited power to tax its citizens.

One can certainly make the argument that in 1789, the term “general welfare” would have been interpreted much differently than it is today. Indeed, one might assume that the term “general welfare” meant the general protection of each individual’s rights. Perhaps that is what many of the founders believed at the convention. However, it is clear that Alexander Hamilton and his Federalists, the driving force behind calling the convention, had far different ideas about what the term “general welfare” meant. Remember that for Hamilton, the purpose of government was not the protection of rights, but the realization of “national greatness.” This could only be achieved at the expense of individual rights, primarily property rights.

So, the Constitution itself grants Congress unlimited power to tax and does not even mention, much less protect, the individual right to keep the fruits of one’s labor. Certainly the Bill of Rights addresses this deficiency, doesn’t it?

It does not. Like the Constitution itself, the Bill of Rights is virtually silent on the central right of property. Out of all ten amendments, the word “property” appears in only one of them:

“No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.”

Unlike the congressional power to tax granted in the Constitution, the constitutional protections codified in the Fifth Amendment are severely limited to specific, extraordinary circumstances. The entire Fifth Amendment is set in the context of criminal law, granting certain protections to the accused and/or convicted. The phrase “due process of law” is a specific legal term that refers to those accused of a crime being given notice of the charges, opportunity to face their accusers, call witnesses in their defense, etc. This was obviously the intent of this protection of property, rather than a general protection of property rights against taxation.

Even if one discards the clear intention of this clause of the Fifth Amendment and interprets “due process of law” more broadly, the amendment offers no more protection of property than if one interprets the clause narrowly. Since the power to tax is an enumerated power, Congress would be following due process of law simply by levying the tax in the first place.

The last clause of the Fifth Amendment, regarding property taken “for public use,” is similarly limited to extraordinary circumstances. This clause undoubtedly refers to eminent domain, which is a grievous abuse of property rights, but certainly not one that affects a large percentage of the population. Even here, no right is protected. The clause merely requires the government to give the victim “just compensation.” There is no mention of the primary component of the right of property, consent.

Furthermore, there is no mention of how “just compensation” is to be determined, although history has shown that the government itself determines what compensation is just arbitrarily. In a free society, the value of property is determined by the price at which the owner is willing to exchange it. However, since there is no requirement here of the owner’s consent, no such price determination can occur.

As for the remaining protections of property in the Constitution and Bill of Rights, there are none. These two phrases, protecting property under only the most extraordinary circumstances are the length and breadth of the Constitution’s involvement with this most fundamental right. It is this deficiency that has allowed the federal government to grow into the monster that it is, concerned with virtually nothing but the redistribution of wealth.

If you believe the official myth about the Constitution, this might seem shocking. After all, the document was drafted by the same people that had seceded from their nation and fought a long and bloody war primarily to defend their right to keep the fruits of their labor. How could they draft a document to recreate their government, which they said only existed to secure their rights, and not only fail to secure the most important right, but actually empower their government to violate it with impunity? Certainly this was history’s most colossal error.

However, when you consider the political platform of the Federalists, which included corporate welfare, monetary inflation, deficit spending, government debt, and militarism, all designed to maintain the wealth and power of a privileged elite at the expense of the rest of the citizenry, the unlimited power to tax and lack of protection of property seem less like error and more like deliberate intention.

Whenever the subject of “constitutional rights” (a problematic term itself) comes up, people reflexively refer to the right of free speech. This is an important right, and one defended across the political spectrum. However, free speech, freedom of the press, and the other rights protected by the Bill of Rights, without property rights, are inconsequential – the mere window dressing of liberty. It is property that enables one to determine the course of one’s own life. Without it, the right to life is no right at all, but rather a privilege granted by those who own your labor.

George W. Bush was an enthusiastic supporter of the right of “free speech.” During a town hall meeting, an average American who opposed Bush’s policies rose and began hurling insults at the president, eliciting boos from the Bush-friendly audience. Bush reprimanded the crowd, reminding them that this man had a right to speak his mind, even if they did not like what he had to say. It was not the only time that he stood up for free speech. This was no accident. A government that has the unlimited power to seize the property of its citizens can afford to be magnanimous when it comes to free speech. Yet, for the citizen who no longer owns the fruits of his own labor, the right to complain makes him no less a slave.

Conservatism Is Not What We Need

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conservative-liberal-road-sign-cropped-proto-custom_28 If you are going to listen to Washington politicians at all, it is always best to listen to the party that is currently out of power. After each election, it is the job of the losers to try to attack the winners in any way they can. Often, they inadvertently advocate genuine principles of liberty in the process.

During the 8-year nightmare that was the Bush administration, it was the Democrats who stumbled upon these principles in their efforts to regain the throne. It was they who pointed out that the government should not be spying on its own citizens, that the president was assuming un-delegated powers through executive order, and that it was neither morally justified nor prudent to invade a third world nation that had committed no acts of aggression against the United States and lacked any reasonable means to do so. Their hysterical mouthpiece, Keith Olbermann, even went so far as to cite a long-forgotten document, the U.S. Constitution.

Of course, it is now abundantly clear that these arguments were made simply out of expediency. With the Democrats in power, it is now the Republicans’ turn to “fight City Hall,” and they have rolled out their usual rhetoric about small government, free markets, and traditional family values. Moreover, they, too, have rolled out the U.S. Constitution and waived it around in opposition to the Democrats’ plans to “spread the wealth around.”

Let’s take note that the Republicans are now correct in opposing the main tenets of the Democratic agenda, including expansion of government involvement in health care, “Cap and Trade,” and other wealth redistribution schemes. Amidst all of the usual noise coming from Washington and its media pundit class, it is only the Republicans that are making any sense at all.

Unfortunately, this is shaping up to produce familiar results. There is a growing movement for “change” that promises to “throw the bums out” in the next two elections. However, those who are part of this movement do not stop to consider what the Republicans’ true agenda will be once they regain power. As they have for over 100 years now, Americans are dashing to the other side in their perennial political game of “pickle in the middle.” They still haven’t learned that the pickle never wins.

The Republicans are having remarkable success in painting President Obama’s agenda as socialist and their “conservatism” as its antithesis. Most average Americans who identify themselves as conservatives accept this argument. If socialism redistributes wealth through the force of government, then conservatism, being its opposite, must oppose such redistribution of wealth. If socialism means that the economy will be centrally planned by government “experts,” then conservatism, being its opposite, must leave those decisions with private citizens. If socialism results in big government, conservatism, being its opposite, must result in small government. These are the assumptions that inform the political decisions of most conservative American voters.

There is only one problem. None of them are true.

The conservative-liberal dichotomy is as old as politics itself. It was present at the founding of the American republic. However, despite the Republicans’ claim to represent America’s founding principles, America was actually founded upon radically liberal ideas. The secession from the British Empire was in essence a complete rejection of conservatism.

Most Americans today believe the primary motivation for the American Revolution was a separation from the British government. However, the revolutionaries only acquiesced to the necessity of complete separation as a last resort. Even after Lexington, Concord, and Bunker Hill, the colonists were still making attempts to settle their differences with the British king and remain in the British Empire. The primary objection of the colonists was not the British king being their executive, but the conservative, mercantilist economic system that the British government enforced. The colonists objected to the policies of corporate welfare, protectionist tariffs, a central bank, militarism, and the taxes levied upon them to support these and other aspects of the worldwide British Empire. Had the British not imposed this system upon them, they would have been content to remain British citizens.

As soon as the Revolutionary War was won, the exact same debate erupted within the new American political system. Alexander Hamilton and his Federalists wished to replicate the British mercantilist system under an American government that would closely mirror the constitutional monarchy of Great Britain. The Federalists were the party of big government, national debt, corporate welfare, militarism, and central bank inflation.[1]

They wished to preserve the status quo insofar as the role of government and the nature of civil society was concerned, which benefitted a privileged, wealthy elite. They were the conservatives.

Socially, this party was the less tolerant of dissenters and tended to promote religion as useful in informing public policy. During Adams’ presidency and with the Federalists in control of Congress, the Alien and Sedition Acts were passed, making it illegal to criticize the government. These also are core conservative principles.

Their opponents, Thomas Jefferson and his Democratic-Republicans, promoted exactly the opposite ideas. They wished to radically change the role of government in society to one that was strictly limited to enforcing the non-aggression principle of liberty, most importantly economic liberty. They were opposed to corporate welfare or any other government redistribution of wealth, railed against the dangers and injustice of standing armies and the national debt, and opposed the central bank. Over and over, when asked about the role of government, Jefferson applied the non-aggression principle to arrive at an unambiguous answer. Always his answer supported each individual’s right to do as he pleased as long as he did not violate the rights of others, and to keep the fruits of his labor.

Jefferson and his followers insisted upon a “wall of separation” between church and state and denounced the Alien and Sedition Acts. They advocated free speech, civil liberties, and tolerance. These are core liberal principles.

While the conservatives gained the early lead due to George Washington’s election as president and subsequent appointment of Hamilton as treasury secretary, it was not a decisive victory. Washington, who along with Vice President John Adams was certainly a more moderate Federalist, also appointed Jefferson to his cabinet as secretary of state. This set the stage for an epic battle between the two ideologies after Washington departed from politics. Adams eventually broke with Hamilton and his party, costing him the 1800 election, and resulting in a decisive liberal victory by Jefferson and his Democratic-Republicans. For the next 60 years, it was the liberal ideology of individual liberty, limited government, and economic freedom that dominated federal politics.

During this time, the conservatives constantly fought to establish bigger government, the central bank, and the other tenets of mercantilism that defined American conservatism. After the Federalist Party disbanded, they were replaced by the Whigs, a party made up of the same people and advocating the same principles as the Federalists. By this time, Jefferson’s Democratic-Republicans had also had a split, and had emerged as the Democrats.

The Whigs were never successful in achieving their goals, and eventually disbanded. However, as before, the same people and the same principles of big government were back again in 1860, this time calling themselves “Republicans.” They finally won a decisive victory in electing Abraham Lincoln to the presidency and a majority in Congress. Immediately, the Republicans began implementing their agenda of corporate welfare, protectionist tariffs, and higher taxes. Contrary to conventional wisdom, it was this economic agenda (particularly the tariff) that motivated the southern states’ secession from the Union, not merely a disagreement over slavery.

It is vital to understand that the Republican Party was born as the party of big government, inheriting traditional, conservative big government principles from its conservative philosophical ancestors, the Whigs and Federalists. For most of its history, it has remained true to these principles, up to and including the Bush II administration. Barry Goldwater’s more libertarian platform during the 1960’s was a divisive anomaly in the conservative movement. Its popularity was later exploited by Ronald Reagan’s administration to implement the usual conservative philosophy of bigger government, militarism, and debt.

The problem for Americans today is that there is no longer an opposition party that represents a true antithesis of these principles. By the dawn of the 20th century, the Democrats had completely abandoned their platform of individual liberty and economic freedom and adopted a socialist, democratic ideology of popular wealth redistribution.

Where the Republicans continued to promote a system which plundered the many for the benefit of the privileged few, the Democrats no longer objected to government as an instrument of plunder and now merely fought to divide up the loot differently. They were no longer truly liberal, although they perverted that word in popular culture to mean exactly the opposite of what it really means. Since then, Americans have had to choose between two parties whose ideologies are fundamentally hostile to liberty.

One week ago, Congressman Ron Paul gave a speech at the Conservative Political Action Conference (CPAC) that both mainstream Republicans and Democrats disagree with. Of course they do. It was an eloquent articulation of America’s founding principles of individual liberty and limited government. Like Jefferson, Paul consistently applied the non-aggression principle of liberty to every aspect of government, concluding that we must end our worldwide military empire, end the welfare state (both corporate and popular), and get rid of the plundering Federal Reserve.

Socially, he advocated tolerance, civil liberties, and the right of every American to express his or her opinion, even if those opinions contradicted Paul’s own most preciously-held beliefs. Despite being likely the most truly Christian person in any branch of the federal government, he never once made any allusion to religion during his entire speech, except for a purely academic reference to Thomas Aquinas’ principle of the just war (he alluded to this as part of his anti-war argument). Young Americans for Liberty, an affiliate of Paul’s Campaign for Liberty, invited a gay pride group to the conference, invoking a bigoted outburst from one of the younger conservative speakers just before Paul took the stage. Paul’s followers roundly booed him out of the auditorium.

Ron Paul pitched his ideas as “conservative,” but they are not. During one point in the speech, libertarian radio commentator and publisher of Liberty Pulse, Kurt Wallace, turned to me and exclaimed delightedly, “Ron Paul is a radical!” He is. Like Thomas Jefferson, Patrick Henry, and the rest of the most pro-liberty founders of the United States, Ron Paul is a radical liberal (in the true sense of the word “liberal”). He is also an extremist, in the true sense of that word. He refuses to compromise his principles regardless of the political consequences.

Average Americans elect Republicans because they believe that Republicans will give them small government, low taxes, and economic freedom. They are mistaken. What they are yearning for has nothing to do with the Republican Party or the more general ideology called “conservatism.” What they really want is radical change. They demonstrated this in giving Ron Paul a victory in the CPAC straw poll. They also proved once again that they are wiser than the political class in Washington. At this critical juncture in American history, there is only one thing that can bring America back from the brink of social, economic, and political collapse: radical, anti-conservative change from leviathan government to extreme liberty.

[1] Thomas Dilorenzo’s books, Hamilton’s Curse and The Real Lincoln document the true roots and history of American conservatism superbly.

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?

>Symbolism Abounds at the Winter Olympics

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>Perhaps there are those who will say it is a stretch, but for me the medal presentations last Monday night (Feb. 15) for the men’s moguls competition at the winter Olympics were steeped in symbolism. Most of the media attention was focused on the fact that Alexandre Bilodeau was the first Canadian to win Olympic gold on Canadian soil. He also knocked off the heavily-favored former gold medalist, Dale Begg-Smith, who had turned in one of his best performances. However, the fact that Begg-Smith and Bilodeau finished ahead of American bronze medalist Bryon Smith contained a hidden message that I doubt most Americans caught.

Consider Begg-Smith’s story. As a teenager in Canada, he was not only a skiing phenomenon but a tech entrepreneur. His coaches told him that he was spending too much time on his business and not enough on skiing. Perhaps his coaches were simply skiing purists that insisted on a total commitment to the sport. On the other hand, perhaps they suffered from that epidemic philosophical disease that promotes contempt for all entrepreneurs and vilifies all who seek to profit from voluntary exchange – in other words to accumulate wealth by producing far more for their fellow human beings than they consume themselves. In any case, Begg-Smith and his brother/partner Jason decided to exercise their rights and vote with their feet. They moved to Australia where they could ski on their own terms and pursue their business interests as they saw fit.

It was symbolically appropriate that this man finished ahead of the American, because his life embodied a principle that Americans have forgotten. When the opportunities that he deserved were not made available to him where he was, he voted with his feet. He left his country and emigrated to one where he was free to pursue his happiness in the way that he wished to. This did not cost him victory on the ski slopes. In 2006, he took the gold medal in men’s moguls in Italy, having also become a millionaire from his internet business. Like most of the early Americans, he wasn’t deterred from leaving the country that stifled him by false platitudes about “patriotism.” He was proud of rather than ashamed of his desire to seek his fortune. Like our American ancestors, he was justly rewarded with victory on both fronts.

However, Begg-Smith finished second to an athlete who inadvertently embodied an even more American principle. While most Americans probably think first of government health care when they think of Canada, Alexandre Bilodeau didn’t just come from Canada. He came from Quebec – the French-speaking province that has smoldered for decades with the most American of all ideals: secession. Yes, the Parti Québécois espouses some of the precepts of social democracy that are ultimately hostile to true liberty, but the movement nevertheless recognizes one core American principle that most Americans have forgotten. The state exists solely to serve the individuals who comprise it, and the loyalty of those constituents ends where the state ceases to govern with their consent. Certainly, none of these ideas entered the mind of the talented young man who earned that gold medal, but that didn’t diminish the symbolic significance of a Quebec native besting an American.

Let me take a moment to congratulate Bryon Wilson. He skied magnificently and the difference between him, Begg-Smith, and Bilodeau (literally milliseconds) is too infinitesimal to have any real significance. All three athletes should be deservedly proud of the fact that they have achieved greatness in their discipline. However, I hope that somehow the allegoric message of this competition will burn itself into the hearts of every American. The two athletes that finished ahead of the American represented ideas that Americans have forgotten:

1. Let no nonsense about (false) patriotism keep you from pursuing your happiness.

2. To seek your fortune through trade is to seek to benefit your fellow man more than most other people do by large orders of magnitude. There is no nobler aspiration.

3. You have a right to choose not to vote with your feet, but instead to alter or abolish any government that fails to secure your rights or becomes destructive of that end. In other words, you have a right to secede.

Should Americans rediscover these simple, uniquely American values, who could set bounds to the heights to which they could ascend?

Check out Tom Mullen’s new book, A Return to Common Sense: Reawakening Liberty in the Inhabitants of America. Right Here!

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>What Do Oranges, Furnaces, and Your IRA Have in Common?

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>On Friday, an average American spent the entire day with the federal government without ever leaving his home. No, there was no knock on his door by some plain-clothes Gestapo. Neither was he treated to one of those infamous “no-knock raids” where a small army of thugs with various acronyms spelled out on their backs burst into the homes of the innocent and terrorize whomever happens to cross their paths. Nothing so dramatic happened that day. However, the long arm of the federal government made itself equally palpable nonetheless.

The first thing that he tried to do that day seemed innocuous enough. Being a native of Western New York and now living in Florida, he attempted to schedule a pick-up to ship some freshly-picked Florida oranges to a friend back home. He had purchased the oranges from a local orchard a day earlier, putting aside about two dozen for his friend in the wintry north. Anyone who has eaten oranges fresh from the tree here in Florida can tell you what a difference there is in freshness and taste from those purchased in grocery stores in the north when they are several days or weeks older. There is also a significant difference in price, especially this time of year. Oranges in Florida cost about $.40 per orange, while those same oranges cost about $1.50 each when purchased in Western New York.

For all of these reasons, our average American decided to do something nice and send a couple of dozen freshly picked oranges up north. That’s when he had his first encounter with the federal government. It turns out that what he was attempting to do was extremely dangerous and therefore prohibited by USDA regulations. According to the USDA website,

Under current federal regulations, all shipments of fresh citrus are prohibited from leaving Florida unless they meet certain requirements, including:

• Inspection of the grove within 30 days of harvest;

• Treatment of the fresh fruit with a special decontaminant;

• Issuance of a federal limited permit that must accompany the fruit. The limited permit confirms that the inspection and treatment have been carried out; and

• Clear marking on the packages to indicate the fruit is prohibited from being delivered to other citrus-producing states.

The reason given for these regulations is that they are “designed to prevent the spread of citrus canker to other citrus-producing states while preserving Florida’s fresh fruit citrus market.” Surely the reader is familiar with citrus canker – that pandemic scourge that rivals swine flu in its danger to all of humanity if not for the federal government and its regulations.

There are a few consequences of this legislation that the government would have us believe are purely coincidental. The first is that the federal government is now authorized to collect a tax, which is all the fee for the “limited license” really is. The second is that citrus growers are effectively insulated by law from any out-of-state competition. Ironically, the federal government supposedly derives its authority to impose such a regulation from the commerce clause of the Constitution – which was written to prevent protectionism by the states!

The effect of these regulations is that consumers everywhere – in citrus producing and non-citrus producing states – pay higher prices for oranges. For those states without citrus growers, the licensing costs and higher costs due to limited shipping options are passed on to consumers. This is what explains Western New Yorkers paying $1.50 per orange. Even in citrus producing states, consumers pay a higher price than they otherwise would if their in-state growers had to compete with out-of-state growers freely shipping their products into the market. Of course, the government and its “progressive” supporters would have us believe that these are merely necessary costs of public safety. It couldn’t be that large, corporate citrus producers had anything to do with lobbying for and perhaps even writing these regulations, could it? Surely, the additional profits and insulation from competition are purely coincidental, aren’t they?

Having resigned himself that he could not ship the oranges himself without the federal license, which was not cost-effective for two dozen oranges, our subject acquiesced to send the oranges directly from an orchard licensed to ship out of state (at a premium price) and moved on to his next order of business. He needed a furnace for one of his rental properties. Being a small businessman who owned or managed approximately 100 properties, it was his responsibility to repair or replace any home appliances that ceased functioning. As a furnace is a significant cost for a small business, he consulted a well-known internet resource to see if he could get a deal on purchase and installation. He found several vendors advertising low-cost installations for home furnaces.

The cost of the home furnace that he selected was about $800. The cost to have a licensed HVAC contractor install the appliance was approximately $1,700 (remember this is New York), for a grand total of $2,500. The vendor on the internet worked for one of the established HVAC contractors that sell and install these appliances. He was offering to sell the furnace at the advertised price of $800 and install it for $300. This represented a savings of $1,400 – significant for a small property management company. When the small businessman offered to accept the offer and pay by credit card, the internet vendor educated him on what was going on. The transaction would have to be executed in cash, because it would be in violation of federal regulations. Not wishing to run afoul of the law, the small businessman declined and acquiesced to pay the $2,500.

It should be remembered that the vendor was not offering to sell stolen goods. He was selling the actual furnace at the same price that the HVAC contractor was selling it at. The internet vendor was merely offering to do the installation labor at what amounted to a real market cost of about $300. Why can the HVAC contractor charge $1,700 to send the exact same technician to install the exact same furnace? Only because it belongs to a cartel that is created by federal regulation and licensing requirements. Again, the reason given is public safety. We can’t have just anyone installing HVAC equipment or we would all be blown up within a week. It couldn’t be that large, corporate manufacturers and HVAC contractors associations lobby the government to pass these competition-stifling regulations, could it?

What did our average American businessman do next to garner the attention of the federal government? Nothing. Frustrated and having spent an inordinate amount of time on two seemingly simple activities, he decided to call it a day. However, the fact that he was sitting in his home doing nothing does not necessarily mean that he was free from federal intrusion. While reading some personal e-mails, one popped into his inbox from his financial advisor. It concerned his IRA.

A few years earlier, he had decided to take a portion of his retirement savings out of his traditional 401K and put it into an IRA with a company that specialized in foreign stocks. His strategy was to protect his savings from the ongoing depreciation of the U.S. dollar and the structural weakness of the U.S. economy in general, which was and is based almost purely on consumption and borrowing. The firm with which he opened his account invested his retirement money in foreign companies with strong balance sheets that were paying dividends. Overall, the investment strategy was sound and relatively conservative. In any case, it was his money to do with as he saw fit. Or so he thought.

It seems that since “the crisis,” the federal government had taken an interest in him in this respect as well – as always for his “protection.” His broker informed him that a “Client Profile” that he had been required by federal law to fill out upon opening his account had to be filled out again. However, since the company that he opened the IRA with specialized in foreign stocks, he now had to mark “Speculation” on his risk profile. The company had to have this signed affidavit on file in order to legally continue to manage his account. This was all designed to protect him from unscrupulous fund managers who might buy foreign stocks with his retirement money without telling him how risky said foreign investments might be.

Absurdity abounds in this regulation. The stocks in our subject’s portfolio all had strong balance sheets (modest debt-to-equity ratios) and were paying dividends. To invest in these, according to our government, is “speculation.” However, to invest in U.S. Treasury bonds – the bonds of an enterprise that is currently losing $1.6 trillion per year, has over $12 trillion in debt, and over $60 trillion in unfunded liabilities – would qualify as “low risk.” However, there is more to this story than pure government incompetence.

Consider the effects of a regulation such as this. There is some percentage of people who wisely got out of U.S. stocks and U.S. dollar-denominated assets in general over the past several years. However, after the misinformed propaganda campaign by our government against speculators as the cause of the recent financial and economic crises, there are a number of reasons that those people might not want to be labeled as “speculators” themselves. They might erroneously perceive speculation as unpatriotic or even evil, given what they have heard. The less gullible might fear more onerous federal actions against them once they are officially identified as speculators. In any case, this regulation is going to cause some people to close their accounts with companies that deal in foreign stocks or at least shift their assets back to U.S. stocks.

This is going to have the effect of raising the price of those U.S. stocks that these “speculators” decide to buy. That price increase does not represent real market forces at work, because without the regulation, the investors would have left their money in the foreign companies. Again, this is supposedly the unintended consequence of a regulation that is nevertheless necessary to protect the public. Who just happens to benefit? As usual, it is the large corporations whose stock prices will appreciate and who also just happen to fund the campaigns of the people who passed the regulation in the first place. Doesn’t anyone see a pattern here?

None of these regulations actually benefit the public. The citrus and furnace consumers pay exorbitantly higher prices and are certainly no safer from danger because the corporate cartel member filled out a government form and paid a licensing fee. How many people have to die from FDA-approved drugs (or from the unavailability of unapproved drugs) before this is sufficiently clear to average Americans? In the case of the foreign stock investor, he is actually harmed by the regulation if as a result of it he takes his money out of safe, foreign investments in viable companies and puts it into shaky U.S. corporations or soon-to-be-downgraded U.S. Treasury debt.

Progressives supposedly support these regulations in order to protect average Americans from the large corporations that they vilify at every opportunity. As we have seen ever since their hero, FDR, instituted this fascist regulatory structure in the 1930’s, they achieve exactly the opposite result. With each new set of regulations, large corporations grow richer, more influential, and more insulated from competition – all at the expense of the “little guy” that the regulations supposedly protect. To quote another progressive hero from the 1960’s, “When will they ever learn?”

>The Who Sing to the Obama Faithful

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>I must admit that as soon as I heard that The Who would be the halftime entertainment at the Super Bowl, the timeliness of what would likely be their last song immediately crossed my mind. However, that didn’t lessen the impact of seeing the aging rockers belt out their classic, “Won’t Get Fooled Again,” although this time with more significance for America than at any time since the song was written. The enthusiastic crowd – thousands of whom undoubtedly sport Obama/Biden bumper stickers on their vehicles – joined Townshend and Daltrey in thunderous unison each time the line “We don’t get fooled again” was sung. Ironically, the extent to which the song indicts Obama was probably lost on all, save the venerable old Englishmen themselves, who hail from a bygone era when the left was actually anti-establishment.

Certainly, there has not (yet) been “fighting in the street” here in America, but most of the Obama faithful do believe that the “change” he has promised represents a “new revolution,” whilst opponents certainly object to the “new constitution.” I’m not sure why, since as Jay Leno quipped a few years back, we’re not using the old one anyway. In any case, as Townshend says to begin the second verse, “the change it had to come.” What we are changing from and what we are changing into are questions that Townshend leaves to us to answer.

Fittingly, the word “change” is used five times during the song. However, the real message of the song is summed up in the last verse.

“There’s nothing in the street
Looks any different to me
And the slogans are replaced, bye the bye.
And the parting on the left
Is now parting on the right,
And the beards have all grown longer overnight.”

It is hard to believe that these words were written in the early 1970’s, as well as they describe the Obama campaign and presidency. Certainly, the slogans have been replaced. Obama started his presidential campaign as an anti-war candidate. Upon receiving the Democratic nomination for president, he subtly changed his stance from being anti-war to arguing that America was merely “in the wrong war.” Now, as he escalates the war in Afghanistan, expands that war into Pakistan, and revives his predecessor’s antagonism towards Iran, we find that even Iraq is not such a wrong war that we will not be leaving thirty to fifty thousand troops there after our combat mission officially ends. Haven’t we heard this strategy before?

Regarding “parting on the left now parting on the right,” the neo-conservatives that Obama was supposedly the antithesis of during his campaign couldn’t be cheering his war-mongering any more enthusiastically. While there is obligatory criticism by Republicans towards some of his tactical decisions or supposed hesitation in making them, they do not fail to dutifully commend the emperor for his overall strategic plan: more war, more debt, and – just as in every year of the Bush administration – the largest total DOD budget in American history (counting the actual on-budget Defense budget, the appropriations for the active wars, and the Homeland Security expenditures on the war formerly known as “The War on Terror”).

Domestically, those who hoped that “Change” meant an end to or at least a decrease in corporate welfare have been disappointed as well. In a classic bait-and-switch, it turns out that his signature health care “reform” plan is nothing more than a gift-wrapped half trillion dollars per year presented to corporate health insurance giants, courtesy of American taxpayers who will now have no choice but to buy their insurance. It is hard to imagine how any self-respecting progressive can “smile and grin” at this change, but so far they still do. The hypnotized may never lie, but they also seem completely unable to tell when they are being robbed blind.

Of course, President Obama did at least do something about the Bush administration’s practices of spying on its own citizens, tapping their phones, and reading their e-mails (to keep them safe). He sent a team of lawyers to court to defend all of these abominable practices, hoping to solidify his legal sanction to do exactly the same thing. This shouldn’t have surprised anyone, since while still in the U.S. Senate, Obama voted to grant immunity to telephone companies who complied with the Bush administrations invasions. Perhaps they were expecting Obama himself to “change” on this issue once he became president.

Finally, Obama had promised to go through every one of President Bush’s executive orders and overturn any that “trampled upon liberty.” Having completed his review, the only executive orders overturned or considered relate to stem cell research, oil drilling on federal land, and Bush’s “gag order” on international aid organizations regarding abortion. Conspicuously absent from the list are the infamous orders wherein Bush granted his office vast new powers during a state of emergency, which the hysterical Keith Olbermann quite justifiably wet himself over during several of his anti-Bush diatribes.

To summarize, let us review what liberals/progressives said they hated about the Bush administration. Unless memory fails, it was his immoral and unfunded wars, his preferential treatment of Wall Street and large corporations at the expense of Main Street, his illegal spying on and wiretapping of American citizens in the name of security, and his assumption of dictatorial powers via executive orders and a rubber-stamp Republican Congress. For all of those who voted for Obama to protest and end these atrocities, the last lines of “Won’t Get Fooled Again” couldn’t be more appropriate.

“Meet the new boss. Same as the old boss.”

Indeed he is. We have been fooled again, and if we simply put the neo-conservative Republicans back into office, it won’t be much different the next time, either. Isn’t it time we stopped doing the same thing over and over again and expecting a different result?

Check out Tom Mullen’s new book, A Return to Common Sense: Reawakening Liberty in the Inhabitants of America. Right Here!

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