Category Archives: Political Philosophy

What If Barack Obama Had Not Been Elected?

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Most conservatives abhor Barack Obama’s presidency. They believe that Obama is leading the United States to its ruin and that nothing is more important than defeating him in the next election. They believe that our very way of life is threated if they do not succeed. I don’t happen to share their opinion that there is a substantive difference between the Bush and Obama administrations, or that anything today would be different if John McCain had been elected.

However, let’s say for the sake of argument that conservatives are correct. The Obama administration is bent on altering American society in fundamental and irreversible ways. Nothing is more important than removing him from office.

Still, conservatives do not look to violently overthrow the present administration. They recognize that, whether the choice was a wise or a foolish one, a majority of those Americans who cared enough to vote chose Barack Obama as their president. So, no matter how relentlessly the Republican Party attacks Obama through its vast network of think tanks, talking heads, and media outlets, no matter how nasty or allegedly unfair conservative talk radio may be, when all is said and done, conservative efforts to remove Obama from office are peaceful.

But what if Obama had not been elected?

What if John McCain had won the election, but was then removed from office in a coup d’état fomented by covert agents of a foreign government? What if that government then installed Barack Obama as president, overriding the wishes of the American electorate? What if that foreign government propped up the Obama administration for decades and American citizens were unable to depose him peacefully through the electoral process?

What if Americans decided to rebel against this tyranny and overthrow Obama in a revolution? What if the foreign government called the American rebels insurgents or terrorists for removing the tyrant, when it was obvious to the whole world that the Americans had been justified in deposing Obama as a usurper backed by foreign interests?

What if, after the revolution, Americans elected a leader that they felt represented their values but that people in other countries did not like? What if the foreign government that had previously overthrown John McCain joined with other countries and imposed sanctions upon Americans, using military force to prevent voluntary trade between the United States and other countries? What if that foreign government sent billions of dollars to Mexico, allowing her to arm herself with nuclear weapons, but forbade the United States to similarly arm herself in her own defense?

What if that same foreign government armed and supported Canada in waging a decade-long war against the United States? What if that government then turned on Canada and invaded her, setting up military bases on her soil, with tens of thousands of troops capable of striking at the United States at any moment?

What if Americans resented the sanctions and threats of violence directed at them and responded with threatening statements of their own?  What if Americans were vilified as terrorists for opposing these aggressive actions with manly firmness? What if the United States had not invaded another country in over 200 years, but was still characterized as a threat to the whole world by a government that routinely invaded other nations, had already overthrown the U.S. government once in the past, had armed America’s neighbors with weapons of mass destruction, and regularly issued official government statements calling for “regime change” in the United States?

What if there were credible rumors that a preemptive nuclear strike by Mexico was imminent? What if the foreign government pledged its full support for Mexico and warned Americans not to attempt to arm themselves adequately to prevent this unprovoked attack? What if it was apparent to all Americans that they had no chance to fight their enemies in a conventional war and win?

What would Americans be prepared to do then?

For more thought-provoking “What Ifs?” see here, here, and here.

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

Is the Patriot Act Unpatriotic?

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

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

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

Paul responded:

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

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

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

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

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

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

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

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

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

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

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

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

Do the math.

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

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

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

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

© Thomas Mullen 2011

What is Greed?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Perry vs. Romney? What Do Conservatives Really Want?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

© Thomas Mullen 2011

What is a Job?

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

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

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

What is a job?

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

Lord and Levin Welcome Ron Paul to the Top Tier

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Punctuated by his move past Michele Bachmann into third place in the race for the Republican nomination for president, Ron Paul has arrived in the “top tier.” While this is a significant positive for his supporters, it does not mean that opposition to Paul from within the party will diminish. On the contrary, now that it is undeniable that he really could win the nomination, Paul’s supporters should expect attacks from the opposition to intensify. They have.

Beginning with a piece in the American Spectator by Jeffrey Lord, conservative opponents of Paul have fired the first shots in what from here on out will probably be an all-out bombardment of Paul and his platform. I say “Paul and his platform” because along with substantive criticism of his positions, one should expect a generous amount of ad hominem directed at Paul himself. Judging from the Lord piece and Mark Levin’s replies in weighing in on the matter, one can expect even more mudslinging than usual.

That is not to single out Lord or Levin as particularly unique in this regard. Mudslinging or “muckraking” has been a part of American politics since the earliest days of the republic. Contrary to what many Americans seem to believe, there never was a “golden age” of American journalism where reporters objectively reported the facts and avoided all political bias. In fact, early American newspapers were not only unapologetically biased; they were unconcerned about even the veracity of the mud they slung. During the election of 1800, John Adams was reported to have “ordered Charles Cotesworth Pinckney to London to procure four pretty mistresses to divide between them.” [1] Adams laughed off this completely false accusation, saying that Pinckney must have kept them all to himself.

Indeed, Ron Paul is unique among politicians for his refusal to attack his opponents personally, even when he vehemently disagrees with their positions. After Rick Perry suggested that Ben Bernanke’s monetary policies might be treasonous, Ron Paul declined to join in even when invited to. Asked by Wolf Blitzer to respond to Perry’s comments, Paul refused to take the bait, saying “I try never to make it the individual as much as the philosophy.”

In the same spirit, I would like to take a look at Lord’s and Levin’s criticisms of Paul and respond to the substantive parts of them. Generally, both accuse Paul of not being a true conservative due to his foreign policy of non-interventionism. Lord claims that this policy is rooted in “neo-liberal” philosophy and that in Paul’s case, like many of the supposed neo-liberals that Lord cites, the policy is also motivated by racism (anti-Semitism being racism directed at Jewish people). Finally, Lord accuses Paul of being disingenuous in portraying the founding fathers as non-interventionist, citing Washington’s invasion of Canada during the Revolutionary War, John Adams’ prosecuting of the Quasi War, James Madison’s prosecution of the War of 1812, and James Monroe’s Monroe doctrine.

Taking these points in order, the first concerns “non-interventionism.” What is it and what is its motivation?

First, we have to recognize the actual definition of the word “intervene.” It certainly does not mean using force to defend oneself. If an individual is attacked by a mugger and uses force to defend himself, he is not “intervening.” Intervention is by definition the interposing of one party into the affairs of two or more others. Thus, if England and France go to war, and Russia enters the war on France’s side, then Russia is intervening. Likewise, if a revolution occurs in Albania, and Spain enters the war on the side of the rebels, Spain is intervening. However, if the United States were attacked by Russia and used military force to defend herself against the attack, the United States would not be intervening.

Ron Paul consistently states that the United States should have a strong national defense but should also be non-interventionist. Is this philosophy rooted in racism? In my own interview with him in July 2011, Paul confirmed that the underlying philosophy that informs all of his positions is the libertarian non-aggression axiom (this question and answer begins around the 11:50 mark). This axiom holds that no human being has the right to initiate force against another, including against their person, liberty, or justly acquired property. This is what makes Paul’s positions against the welfare state, the Patriot Act, and preemptive war consistent. All of these policies represent the initiation of force.

Mssrs. Lord and Levin do not distinguish the concept of non-aggression from pacifism. This is an error. Libertarians like Paul are fierce defenders of the right to bear arms precisely because they are not pacifists. They recognize the right, even the duty, to defend oneself with force against aggression. This applies both to the relationship between individuals within society and the relationship between nations. Paul does not champion pacifism if another nation attacks the United States. However, he opposes the United States initiating force against another nation, even if that nation’s policies are oppressive or otherwise objectionable.

Lest opponents of this libertarian philosophy tag it as “leftism” the reader should understand that it was the central principle that inspired Thomas Jefferson’s philosophy. In his own words,

“Our legislators are not sufficiently apprised of the rightful limits of their powers; that their true office is to declare and enforce only our natural rights and duties, and to take none of them from us. No man has a natural right to commit aggression on the equal rights of another; and this is all from which the laws ought to restrain him.”[2]

This was by no means the only time that Jefferson invoked the non-aggression principle. He invoked it in defending religious freedom, saying ““The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbor to say there are twenty gods or no God. It neither picks my pocket nor breaks my leg.”[3]

In fact, on nearly every occasion where he had the opportunity to define the role of government, he invoked this principle. His first inaugural address was centered around it.

“What more is necessary to make us a happy and a prosperous people? Still one thing more, fellow-citizens — a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicities.”[4] [emphasis added]

That this founding principle is completely consistent with non-interventionism is reflected by Jefferson’s support for it in that same speech.

“Equal and exact justice to all men, of whatever state or persuasion, religious or political; peace, commerce, and honest friendship with all nations, entangling alliances with none;”[5]

Lord points to Jefferson’s war with the Barbary pirates as an example of interventionism, but this is absurd. Jefferson was not intervening in a dispute between two other nations or an internal dispute within one. He was defending the United States against acts of war that had been committed against them. On May 10, 1801, the pasha of Tripoli formally declared war against the United States. Jefferson’s military response was completely consistent with non-aggression and its sub-corollary, non-interventionism. Again, neither non-aggression nor non-interventionism are synonymous with pacifism.

As Tom Woods and Kevin Gutzman have pointed out, all of the early American wars cited by Lord as examples of the founders being ‘interventionists” were in fact similarly defensive. Lord’s citing of the Quasi War with France as “interventionist” is particularly confused. The whole reason that it was called a “quasi” war was Adams staunch refusal to ask for a declaration of full-out war, even against the wishes of many in his own party. As I have written before, Adams actually considered avoiding war with France the crowning achievement of his presidency.

As I argued regarding Obama’s war in Libya, taxing American citizens to defend people in other countries similarly violates the non-aggression principle. If conservatives actually believe that the U.S. government can tax Americans to provide freedom or security to people in other countries, then what is their objection to the liberal policy of taxing American citizens to provide healthcare or housing to other Americans? In either case, one person is taxed to provide benefits exclusively to another. Is this conservative? It certainly isn’t libertarian.

On the racism/anti-Semitism charge, there is nothing in any of Ron Paul’s public statements, voting record, or writing that can remotely support a charge of racism or anti-Semitism. In his own words,

“Racism is simply an ugly form of collectivism, the mindset that views humans only as members of groups and never as individuals. Racists believe that all individual who share superficial physical characteristics are alike; as collectivists, racists think only in terms of groups. By encouraging Americans to adopt a group mentality, the advocates of so-called “diversity” actually perpetuate racism. Their intense focus on race is inherently racist, because it views individuals only as members of racial groups.”

Lord and Levin accuse Paul of not being a true conservative and of espousing major tenets of the liberal philosophy. However, it is they who adopt the tactic that conservatives consistently accuse liberals of using: making an unfounded charge of racism in the hope that the mere association of the word with the position will evoke an emotional response in the minds of voters and persuade them to oppose the position, regardless of its merits. I agree with conservatives that this is a dishonest and reprehensible tactic.

They also accuse Paul and some of his supporters of not being conservative for criticizing Reagan. Reagan, who said in this interview that “the very heart and soul of conservatism is libertarianism,” invoked Jefferson’s first inaugural in stating that it was government’s role to keep us from harming each other, but should not try to keep us from harming ourselves. However, as the interview goes on, Reagan is able to put virtually the whole progressive regulatory state into the former category, with very little recognized as part of the latter. This lends insight into his presidency, where the size and the power of the federal government doubled, despite his libertarian rhetoric both before and after his election.

If the heart and soul of conservatism is truly libertarianism as Reagan argued, then true libertarians and conservatives would have to criticize Reagan’s presidency. He did not, as he promised he would, abolish the Department of Education, but expanded it. He did not, as he promised, reduce the size and influence of the federal establishment back within the limits imposed upon it by the Constitution. He did not lower taxes. He raised them. He did not cut government spending – it doubled on his watch, outpacing the spending increases of Carter and Clinton by large orders of magnitude. Both libertarians and conservatives should criticize these aspects of his presidency. Doing so doesn’t make them less libertarian or conservative. It merely confirms that they have a grip on reality.

Finally, the personal nature of Levin’s attacks on Mike Church and Jack Hunter belie their lack of substance. Levin calls Church a moron, accuses him of being intoxicated on the air, and even belittles Church’s supposedly insignificant radio audience. Most people are familiar with the ad hominem attack. While passion for one’s viewpoints is understandable, “attacking the man” rather than the man’s arguments amount to a capitulation that one has lost the debate. Don’t expect this to diminish as Ron Paul’s popularity continues to increase. Supporters of the establishment have good reason to fear a Paul presidency, and one can expect the attacks on him and his supporters to get uglier and uglier. And yes, expect supposed conservatives to act just like liberals in calling anyone who disagrees with them a racist. Welcome to the top tier, Congressman Paul.

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

© Thomas Mullen 2011

[1] McCullough, David John
Adams pg. 544
[2] Jefferson, Thomas Letter
to Francis Walker Gilmer June 7, 1816 from The Works of Thomas Jefferson edited
by Paul Leicester Ford G.P. Putnam‘s Sons New York and London The Knickerbocker
Press 1905 pg. 533-34
[3] Thomas Jefferson, Notes on
Virginia, Query XVII 1782
[4] https://avalon.law.yale.edu/19th_century/jefinau1.asp
[5] Ibid

The Tenth Amendment Run Amok?

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In between “gotcha questions” and the Pawlenty-Bachman slurfest, an interesting discussion actually occurred during the Fox News presidential debate staged in Iowa on Thursday night (8/11/2011). It concerned Tim Pawlenty’s quite valid criticism of Mitt Romney’s role in expanding government healthcare in Massachusetts. During Romney’s term as governor, he signed into law a state healthcare plan that served as the basis for what is popularly known today as “Obamacare.”

Romney replied with a defense based upon the Tenth Amendment to the US Constitution, saying Massachusetts passed a law that was right for Massachusetts, but President Obama forced a “one size fits all solution” on the entire nation, usurping the powers reserved to the states or the people.

Calling him a “constitutional expert,” panelist Chris Wallace asked Congressman Ron Paul whether the states “have a constitutional right to make someone buy a good or a service just because they are a resident.” Paul replied,

“No, the way I would understand the Constitution, the federal government can’t go in and prohibit the states from doing bad things and I would consider this a very bad thing. But you don’t send in a federal police force because they’re doing it and throw them into court.”

Rick Santorum replied that this argument represented “the Tenth Amendment run amok” and paraphrased Abraham Lincoln saying “the states don’t have the right to do wrong.” He argued that the United States is a nation built upon moral laws, implying that he would support the federal government overriding the state government if an action of the state violated those moral laws.

So, what moral law does “Romneycare” violate and should the federal government step in and intervene?

For libertarians, many aspects of both Romneycare and Obamacare violate the moral law of non-aggression. It initiates force against individuals who have not aggressed against others by forcing them to buy a product. It forcibly steals their money to buy healthcare for other people. It forces them to pay for a government-run “exchange” which distorts the market and privileges government-connected health insurers.

Whether most conservatives see it from this perspective is not clear – they rarely make arguments based upon rights, rather than results. But Rick Santorum believes Romneycare is immoral, by whatever moral standard he is using.

So, let’s assume Romneycare does violate an underlying moral law that precedes government and violates the rights of the individuals in Massachusetts. As a libertarian, I certainly agree that it does. I also agree (and I don’t get to say this much) with both Rick Santorum and Abraham Lincoln that “the states don’t have the right to do wrong.” Violation of the rights to life, liberty, and property are wrong regardless of whether they are perpetrated by federal, state, or local governments.

But that’s not what Congressman Paul said. Paul did not assert the state government had any rights. He said the federal government does not have the power to override the states on this issue. This is a crucial distinction to make if one wishes to understand the Tenth Amendment and why violating it has been the chief cause of the national crisis we find ourselves in today.

The Declaration of Independence states that governments derive their just powers from the consent of the governed. It doesn’t talk about government rights because they do not exist. Governments don’t have rights. Only people have rights. Governments are invested with specific, limited powers by the people who establish them. Those powers originate in the people and are delegated to the government for the purpose of securing their rights, as the Declaration also states. If a power is not specifically delegated to the government, the government cannot exercise it. To do so is to exercise power without the consent of the governed.

For the men who declared independence from Great Britain, the consent of the governed was the only way to reconcile government power with liberty. The government was only allowed to exercise power the people agreed to delegate to it. The powers enumerated in the Constitution are those which have this consent, given through the representatives who drafted and ratified it.

Many libertarians today reject the idea that a majority vote can substitute for the consent of the individual. Therefore, they reject all government as the exercise of arbitrary power. Even those who do not hold this view must recognize that calling ratification of the Constitution by majority votes in the state legislatures “consent of the governed” still requires an extremely elastic definition of the word consent. But at least there is some argument to be made that the powers delegated in that document were agreed to by the people.

There is no argument to be made that powers not delegated in the Constitution have the consent of the governed. That is why there is an amendment process; so new powers can be delegated to the federal government if a majority of the states truly wish to do so.

The powers delegated to the federal government deal primarily with issues outside the states. Power is delegated to create armies and navies to defend the republic against invasion. Power is delegated to regulate interstate commerce, which was intended merely to prevent protectionism between the states. There is no power delegated there allowing the federal government to regulate anything within the states. As Thomas Jefferson said, “I believe the States can best govern our home concerns, and the General Government our foreign ones.”[1]

What does all of this have to do with Romneycare? It means Ron Paul was right. The government doesn’t have the power to “prevent the states from doing bad things.” Why not? Because the people of those states never consented to give the federal government that power. The federal government exercising powers not delegated to it, even to repeal a bad law, is not substantively different from Russia or China interfering in the legislative process of a state. Exercising power without the consent of the governed is tyranny, regardless of who perpetrates it.

There is always desire to allow the federal government to exercise this power on those rare occasions when it is actually overriding a bad state law, instead of writing bad laws of its own. As Kevin Gutzman documents in his book, The Politically Incorrect Guide to the Constitution, the states originally had a lot of internal laws that people today might not necessarily agree with. Some of the states had state religions. The Massachusetts Constitution originally required people to attend religious instruction. While libertarians would vehemently disagree with those laws, allowing the federal government to interfere is not the answer. Once that Pandora’s Box is opened, you are on the road to a $3.8 trillion a year federal government with a $14 trillion debt and $100 trillion in unfunded liabilities. Exercising non-delegated powers was the train it rode in on.

As I’ve said before, the Constitution itself was an enormous expansion of government power at the time. But even its delegation to the federal government of vast new powers  had limits. Today, no limits are recognized. If the federal government can ever be fixed, those limits have to be restored. Individuals, local governments, and state governments all do bad things. But a federal government with unlimited power is not the answer. We’ve tried that for the past one hundred years. Not only is it time to start enforcing the Constitution’s limits on federal government power; it’s time to start imposing new ones.

[1] Jefferson, Thomas Letter to Justice William Johnson June 12, 1823 from Jefferson Writings Literary Classics of the United States  edited by Merrill D. Peterson pg. 1476

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

Centralization Is Insane

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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 20th and early 21st centuries in just this manner. There is at least one thing that will be quite obvious to them: centralized government is insane.

Consider the premises upon which this present paradigm relies: All facets of society must be planned and managed by experts. The judgment of the experts trumps the rights or choices of any individual. The choices made by the experts will result in a more orderly society and greater happiness for the individuals who comprise it. There will be better results from one small group of experts controlling everyone than multiple groups of experts controlling smaller subgroups of society.

Of course, libertarians reject every one of these assumptions on its face. A free society does not tolerate “planning” or “management” by anyone. All choices are left to the individual, as any attempt to plan or manage his affairs amounts to either violation of his liberty, looting of his property, or both. However, let’s assume that the first three assumptions of the present paradigm are valid and merely examine the last. Even that does not hold up to scrutiny.

Suppose an entrepreneur starts a business. At first, his market is local. He opens retail outlets that are managed by store managers. The entrepreneur is the CEO of the company and manages the store managers. Even at this point, the CEO must trust day-to-day decisions to his managers. He has no time to make everyday decisions as he tries to grow his business. The managers do this for him and he concentrates on strategic goals.

His business is successful and soon he begins opening outlets outside of the original market. He now has a need for regional managers to manage the store managers. He manages the regional managers and leaves the details of how they operate within their regions to them.

The business continues to grow. With retail outlets in every state, there are now too many regions for the CEO to manage directly. The CEO appoints executive directors to manage larger regions, each comprising several smaller ones. There is an executive director for the west coast, another for the Midwest, and another for the east coast. Of course, the CEO has the assistance of his corporate vice presidents who manage sales, operations, human resources, and other company-wide functions from the corporate office.

Now, suppose that one day the CEO decides to fire the executive directors, the regional managers, and the store managers. He will now have the salespeople, stock clerks, and cashiers for thousands of retail outlets report directly to him and his corporate vice presidents. Would anyone view this decision as anything but insane?

As silly as this proposition sounds, this is a perfect analogy for how we have chosen to organize society for the past century. The paradigm rests upon the assumption that every societal problem can better be solved if the CEO and his corporate staff manage the cashiers and the salespeople directly. Like all failed paradigms, anomalies are piling up that refute its basic assumptions.

This paradigm assumes that centralized government can provide a comfortable retirement with medical benefits for average Americans, yet Social Security and Medicare are bankrupt. It assumes that a central bank can ensure full employment and a stable currency, yet the value of the dollar is plummeting and unemployment approaches record highs (especially when the same measuring stick is used as when the old records were set). It assumes that the national government’s military establishment can police the world, yet the most powerful military in history cannot even defeat guerrilla fighters in third world nations. It assumes that the central government can win a war on drugs, yet drug use is higher than at any time in history. It assumes that experts in Washington can regulate commerce, medicine, and industry, yet we get Bernie Madoff, drug recalls, and massive oil spills.

Hundreds of years ago, the prevailing medical science paradigm assumed that illnesses were caused by “bad humors” in the blood. Based upon that assumption, doctors practiced the now-discredited procedure known as “bleeding.” They would literally cut open a patient’s vein in an attempt to bleed out the bad humors. As we now know, this treatment often killed the patient, George Washington being a notable example. Most rational people today view the practice of bleeding as nothing short of lunacy.

Ironically, this is a perfect analogy for the paradigm of centralized government. The very act of a small group of experts attempting to manage all of society drains its lifeblood. It is the un-coerced decisions of millions of individuals that create all of the blessings of civilized society. It is the attempt by a small group of people to override those decisions that is killing society before our very eyes. Someday, people will look back on our foolishness and laugh as we do now at the misguided physicians who bled their patients to death. The present paradigm is dying. The revolution has begun.

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

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.”

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.