Category Archives: Monetary Policy

Why Ron Paul also matters more than Romney, Santorum and Obama

What would it take for Ron Paul to endorse Romney?

TAMPA, April 7, 2012 – GOP frontrunner Mitt Romney continues to win primaries and Ron Paul still won’t go away.

Part of the reason is that the Paul campaign understands the primary process and knows a little history. Romney’s support is lukewarm, while Paul’s actual delegate total is dramatically understated.

As Robert Wenzel points out, Paul is a lot like Warren Harding. Harding went into the brokered 1920 convention with only 6% of the delegates, but emerged as the party’s nominee. Harding won the general election in a landslide and took a very non-interventionist approach to the Depression of 1921.

Free market economists cite Harding’s refusal to intervene in that crisis for the quick recovery that followed.

So, there is no reason not to take Ron Paul at his word when he says that he is still in the contest to win the nomination. Still, speculation persists that he has made a deal with Romney for an eventual endorsement.

In return, Paul would get a speaking slot at the convention, consideration for his son Rand, or concessions in the party platform.

Both Paul and Romney have repeatedly denied this. Paul acknowledges that he is open to talk to the other candidates and that Romney, a personal friend, is easier to talk to. However, anyone who believes Ron Paul will simply endorse the nominee in exchange for political favors doesn’t understand Ron Paul or his Revolution.

Continue at Communities@Washington Times…

Do Republicans really want to defeat Obama?

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TAMPA, Fl., April 2, 2012 —The Republican Party has energized its base around the idea that Barack Obama must be defeated to save America from “socialism.” They won a majority in the House in 2010 by focusing on Obamacare. They claim that this election is a turning point. Obama must be defeated or America will be “fundamentally changed.”

There is only one problem. All of the candidates they are running will lose to Obama, with the exception of Ron Paul.

In order to win the general election, the Republicans need independents and Democrats. They also need a media narrative that shows a clear contrast between their candidate and Obama. They get all of this with Paul and none of it with Romney, Santorum, or Gingrich.

During the 2010 elections, Republicans pulled off a rhetorical coup. They successfully labeled Obamacare as “socialism” while at the same time mobilizing millions of senior citizens against the program because it would hurt Medicare. Hats off to their spin doctors. It won’t be that easy this year. If they want to attack Obama on Obamacare, they can’t run a candidate who signed the same program into law in Massachusetts (Romney), who supported its individual mandate for twenty years (Gingrich), or who voted for the Medicare prescription drug benefit (Santorum).

Santorum hasn’t endorsed the individual mandate, but Obama can argue that he’s all for government healthcare and “spreading the wealth around” because of Medicare Part D. The Republican base might swallow Santorum’s rebuttals, but for the rest Obamacare gets neutralized.

Continue at The Washington Times Communities…

How the Fed Steals for the 1% (Tom Mullen on the Huffington Post)

Gilligan, The Skipper, and the Federal Reserve

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Now here’s another tale of our castaways.

Imagine if life on the island were different. Instead of seven stranded castaways, there were only four: Gilligan, the Skipper, Mr. Howell, and Ben Bernanke.

Besides non-existent ratings without Ginger and Mary Ann, some other things would be different. Imagine that there was only one thing to buy on the island, coconuts. Now, of course, this takes a willing suspension of disbelief, because we know that these four people would need more than just coconuts to survive. They would need clothing and shelter and might want other comforts that the island might conceivably provide. They would all provide different services to each other and trade them for the services of their fellow castaways. But in this example, the only thing that they trade for are coconuts.

Mr. Howell owns the coconut orchard, which produces 100 coconuts per year. Mr. Bernanke is in charge of the currency, the Island Reserve Notes (IRNs). In order to purchase the only available product for sale on the island, one must use IRNs. Barter or the use of other commodities to make this purchase is prohibited. Each coconut costs 1 IRN.

Gilligan and the The Skipper each perform different services for each other and the other two which they trade for these paper notes in order to buy coconuts. At a given point in time, Gilligan and The Skipper each have 50 IRNs.

There are a few things that are true. The first is that the IRNs held by Gilligan and the Skipper have no value of their own. Their value is wholly derived from the coconuts that they can buy with the IRNs. Neither do the ISNs have any value off the island. Back in civilization, the currency is not recognized, although if a mainlander were to acquire some IRNs, he would be able to purchase coconuts with them if he ever found himself stranded on the island.

Secondly, Gillligan and the Skipper are equally wealthy, not because they both have the same amount of IRNs, which don’t have any intrinsic value, but because they are both able to buy an equal quantity of the available products. They are each able to buy one half of all coconuts produced in one year in Mr. Howell’s orchard. In other words, each has the same purchasing power in the island economy.

Now, suppose Mr. Bernanke decided to print 5 additional IRNs and give them to the Skipper. The Skipper would immediately be wealthier, as his purchasing power has now increased by 10 percent. He can now buy 55 coconuts instead of 50. But where did this new purchasing power come from? Was it really created out of thin air just by printing additional IRNs?

Mr. Bernanke might say yes. However, there are still only 100 coconuts available to purchase. Since there is no way for Mr. Howell’s orchard to produce more than 100 coconuts during the current year, it would seem that Gilligan can still buy 50 coconuts, the Skipper can likewise buy 50 and his 5 additional IRNs are worthless until there are more coconuts available to purchase. How can the Skipper take advantage of the additional IRNs?

Obviously, there is only one way. Rather than trading 1 IRN for each coconut, the Skipper will now offer Mr. Howell more than $1.00 IRN per coconut. While he may offer different prices at different times, depending upon how hungry he is, let’s say that the average price he offers Mr. Howell over the year is $1.05. This is the new market price, which Gilligan has to pay as well. Mr. Howell certainly isn’t going to sell coconuts to Gilligan at 1 IRN apiece when he can get 1.05 from the Skipper. So, with Gilligan and the Skipper each paying on average 1.05 per coconut, the Skipper is now able to buy 52.4 coconuts, while Gilligan can only buy 47.6.

What we have seen is a transfer of wealth. The Skipper is now 2.4 coconuts wealthier. However, this new purchasing power was not magically created simply by printing the 5 extra IRNs. It was transferred from Gilligan, who can now afford only 47.6 coconuts, even though he has the same amount of IRNs that he had before. No one snuck into Gilligan’s hut and removed any of his money. He still has the exact same amount. But he has been robbed nonetheless. Regardless of how laudable the reasons given for printing the new IRNs and giving them to the Skipper – to stimulate the economy, create new jobs, etc. – it was nevertheless accomplished through theft.

It should also be noted that no additional wealth has been created. The total number of coconuts that Gilligan and the Skipper are able to purchase is still 100. The wealth has simply been redistributed from Gilligan to the Skipper. Imagine if this were to go on for decades. At some point, the Skipper would be fabulously wealthy and Gilligan would be destitute.

Now, the only reason that this theft is possible is the law that forces Gilligan to use the IRNs. If he were able to pick bananas and offer them in trade for the coconuts, he might be able to produce enough in bananas to buy more coconuts than the Skipper. Only the power invested in Mr. Bernanke allows him to transfer wealth and it is the only power he has. He doesn’t produce a single coconut himself. He simply decides how those coconuts are going to be distributed.

One might also argue that the Skipper might invest the extra 5 IRNs in capital goods and thus expand production on the island. It is possible. However, it is less likely that the Skipper is going to make wise decisions on what capital goods to invest in with purchasing power that was stolen from someone else than with money he saved himself. After all, if he decides to invest in a scheme that doesn’t pan out, he can go back to Mr. Bernanke and get more IRNs. In reality, these funds are loaned to the Skipper and he must pay them back with interest. However, he is really getting an involuntary loan from Gilligan and using Gilligan’s purchasing power to acquire capital goods. Each time he does, he becomes wealthier and Gilligan becomes poorer. Adding insult to injury, the Skipper gets to retain ownership of the new capital goods and keep all of the profits from the investment – with the cost of the investment provided by Gilligan!

Eventually, production might expand, but it will have expanded far less than if the Skipper had been forced to accumulate his capital by consuming less coconuts. This would put downward pressure on the price of coconuts, making Gilligan wealthier while the Skipper became wealthier still once he realized a return on his investment.

Of course, no economy is this simple. There is never only one product or service to purchase in any economy. Neither have we accounted for the coconuts that Mr. Howell consumes, nor for the presence of Ginger, Mary Ann, the professor, or Mrs. Howell, who could all conceivably produce other products or services to offer each other in the island economy.

However, even if there were seven castaways – or 300 million – the principle would remain the same. There would be some finite amount of wealth that all of their efforts combined could produce. All other factors being equal, printing new IRNs and distributing them unequally among the inhabitants would produce the same increase in prices and the same redistribution of wealth.

The only honest way to expand production would be for some of the islanders to save some of their earnings and invest them in capital goods. This would have the effect of raising the overall wealth of the island and any disparity in individual wealth would be the result of those individuals producing more for the other islanders to consume, not from redistribution through the production of new paper currency. Moreover, since production could only be expanded by real savings, instead of by a privilege granted by Mr. Bernanke, they would all have an equal opportunity to save themselves and compete with those producing more. All of these factors would tend to make income disparity decrease, instead of increase as it does under the IRN System.

There is only one question that remains. Why does Gilligan allow the IRN System to continue?

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

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

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Kindle edition now available here!

Paperback here!

Hello friends,

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

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

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

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

Reviews

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

– Representative Ron Paul (TX-14)

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

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

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

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

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

Chapter 1 What is Freedom?

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

– Frederic Bastiat¹ (1850)

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

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

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

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

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

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

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

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

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

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

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

In a letter to James Monroe, he also said,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Initiating the use of force or violence

2. Infringing upon another person’s liberty

3. Harming them in their possessions.

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

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

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

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

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

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

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

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

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

End Notes

Introduction: The American Crisis

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

Chapter 1: What is Freedom?

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

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

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

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

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

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

7 Declaration of Independence, United States 1776 National Archives…

8 Locke Second Treatise pgs. 131-32

9 Locke Second Treatise pg. 133

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

Get the Kindle Edition here! Paperback here!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Centralization Is Insane

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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 20^th and early 21^st 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.

Why a Debt Default Would Be Wonderful

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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.”

What’s So Hard to Understand About Ron Paul?

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Ron-Paul This time things are going to be different for Ron Paul’s presidential run. After correctly predicting the collapse of the housing bubble and the resulting financial and economic crisis, Paul has become a mainstay on business talk shows, especially on the conservatively-oriented Fox News. One can almost sense the resignation in the voices of talk show hosts and reporters as they acknowledge that Paul will not be ignored by the media this time around – which is ironic because it is these same people who ignored him in 2008.

However, while supporters will rejoice at the increased quantity of coverage of Paul’s campaign, they should be realistic about the quality of the coverage. Namely, supporters should expect that conservatives will agree with him on most of his economic positions, including cutting down the welfare state and rolling back government regulations, but disagree with him on foreign policy.

Similarly, supporters should expect that liberals will agree with Paul on foreign policy (although somewhat reservedly while there is a Democrat running the empire) and civil liberties, but disagree with him on economic policy, especially when it comes to Paul’s positions on responsibly ending Social Security and Medicare.

Watching Paul’s appearance on The View, one could already see this dynamic in action. While the ladies on the show were very gracious to the congressman, Whoopi Goldberg took the lead in asking some policy questions and demonstrated the liberal take on Paul perfectly. She first stated that she agreed that she would like to see the wars end, but wanted to know how Paul could get us out of them (a concern that never would have arisen with a Republican running the empire). After Paul gave his customary answer, “we marched right in there, we can march right out,” Goldberg then challenged Paul on his position that healthcare is not a right. She truly looked baffled that any politician could be both anti-war and anti-entitlement.

On the conservative side, media figures have been doing the opposite routine with Ron Paul for years. Glenn Beck (pre-blackboard) routinely had Paul on during the economic crisis and always emphasized his agreement with Ron Paul’s economic positions and his disagreement on foreign policy. Ann Coulter has also weighed in on Paul in this way, as have countless other media figures.

Neither conservatives nor liberals agree with Ron Paul that the Federal Reserve should be abolished.

Conservatives believe that along with what they would call “free market capitalism” (their version including privileges and subsidies for big business), one must support a large military establishment and an aggressive foreign policy. For conservatives, it is just inconceivable that anyone could support one and not the other. This is not a position that can be supported by reason. Rather, it is closer to an article of faith to which conservatives have developed a deep emotional attachment. The conservative philosophy still has its roots in the “ancien regime,” whereby the king/executive and a wealthy elite control commerce and support a large, active military establishment, both for the aggrandizement of the empire.

Liberals believe this, too. They share the mistaken perception of conservatives that free market capitalism is dependent upon an imperialistic foreign policy. However, instead of wholly supporting it, they wholly oppose it, confusing the state capitalism supported by conservatives with a truly free market. Therefore, liberals oppose imperialism and free markets as if one cannot exist without the other and cannot conceive of anyone who could disagree. As with conservatives, their positions are not reasonable. They are likewise articles of faith, rooted in the ideals of ancient democracies in which the majority had unlimited power over the life and property of individuals, taken to new extremes by Marx and other socialists in the modern era.

Ron Paul’s positions do not fit into either one of these belief systems, nor does he seem to “compromise” between the two. Conservatives accuse him of being too liberal. Liberals accuse him of being too conservative. For both groups, many of his positions seem completely unexplainable.

To his supporters, Paul’s positions are so obviously consistent that they often attribute genuine confusion about them to some sort of media conspiracy. Paul bases all of his positions on what we today call “the non-aggression axiom,” which Thomas Jefferson and his supporters called “the law of nature.” This is a very simple principle which states that because we are all created equal, no one individual or group has the right to initiate force against another. Consistently applied, this principle prohibits the government from running welfare programs, regulating commerce beyond prohibiting aggression, or waging war unless the nation is actually attacked.

Paul insists that the military only be used after a declaration of war because in order for Congress to issue this declaration, the president has to cite the overt acts of war committed by the other nation against the United States. The Congress then deliberates and votes to determine whether or not a state of war already exists. That process binds the government’s use of the military to the law of nature. That is the way the declaration of war power has been exercised in every case in American history.

The main reason that conservatives and liberals do not understand Paul’s reasoning is that they have never heard of the non-aggression axiom. Despite the fact that it was the founding principle of the United States, it is not taught in schools. It is not discussed in the media. Instead, 100% of political debate revolves around results. “If the government does A, will B or C be the result?” Conservatives argue B, liberals C. Neither discusses the rights of the parties involved. Paul bases all of his positions upon these rights, which is how all political decisions should be made.

On May 5, Paul will participate in the first debate among candidates seeking the Republican nomination for president. One should not expect the objections to his positions to be substantively different than they were in 2008. While he may get more respect and stage time from the media, conservatives will still try to attack Paul’s foreign policy positions. The most that supporters should expect is the grudging admission that he may be right on economic policy, but that his foreign policy would be some sort of disaster. This follows logically from the fact that conservatives apply the tenets of their political faith and Paul follows the law of nature. He may be right, but don’t expect most conservatives or liberals to have caught up with him yet.

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