Category Archives: Political Philosophy

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.

Response to Letter from Senator Bill Nelson Concerning Independence Day

4 Replies

I received a holiday message from one of my senators with the customary admonishment about how grateful I should be to the government and its soldiers for my supposed freedom. I felt compelled to remind the senator that freedom is an inherent, inalienable right, bestowed by my creator and not by any government, and to refute this preposterous claim that invading third world countries is somehow making me freer. As one forced to pay for all of this, I find the claim particularly distasteful on the 4th of July. So, in the spirit of the holiday, I reprint his letter and my response here, so that the facts can be submitted to a candid world.

July 3, 2011

Dear Thomas,

I gave my Fourth of July message in the Senate this past week, and would like to share it with you. 

Some 235 years ago this weekend, John Adams proclaimed that July 2 would mark the most memorable epoch in the history of America.  It was on that day the Continental Congress declared the 13 colonies free and independent of Great Britain’s crown.  It was two days after that when Thomas Jefferson’s Declaration of Independence was adopted.

And when did Americans first celebrate their independence?

Philadelphia is said to have thrown a big party on July 8, 1776, including a parade and the firing of guns.  George Washington, then camped near New York City, heard the news on July 9 and celebrated then.  But in 1781, Massachusetts became the first state to recognize July 4 as a state celebration.  Ten years later, the young nation’s celebration was dubbed Independence Day.

This Independence Day, I hope every American will stop and think for just a minute about our freedoms – and just how much we owe those who came here long before us and mutually pledged to each other their lives, their fortunes, and their sacred honor.   And let us also remember the young men and women who have died in defense of those freedoms.

We traditionally observe the Fourth with fireworks and fanfare, pomp and parade.  But today we remain engaged in far-away struggles to promote and protect the rights of others who, like us, value freedom and independence.  Many of our soldiers, sailors, airmen, Marines and Coast Guardsmen are spending their Fourth in Iraq and Afghanistan and other parts of world.

I recently was reminded of the commitment and selfless sacrifice demonstrated by one of America’s World War II veterans, who lives in my state of Florida.

U.S. Army Staff Sgt. Robert Rickel, of Boca Raton, served as a waist gunner on a B-17 Flying Fortress.  Sgt. Rickel survived the daring bombing campaign of Schweinfurt, Germany in October 1943, and was awarded the Distinguished Flying Cross for his heroism or extraordinary achievement.

Sgt. Rickel and all the military members and all their families knew the risks and sacrifices they were making were worth it.   As President Reagan once said, “Some things are worth dying for … democracy is worth dying for, because it’s the most deeply honorable form of government ever devised by man.”

Indeed, our democracy is something to celebrate.  I wish everyone a Happy Fourth of July.

Bill

July 4, 2011

Senator Nelson,

The founders of our republic considered democracy “the most vile form of government” (James Madison). They did everything they could to try to limit the power that the majority had over the individual. That’s why they founded “a republic, if you can keep it” (Benjamin Franklin). Obviously, we have failed.

They also objected to the existence of standing armies during peacetime and would likely be taking up arms again if they were taxed by their government for anything other than defense of their own property. While I respect the courage and sacrifice of the soldiers, it is apparent that they are grossly misinformed. There is no cause-effect relationship between the wars that the United States has been involved in, at least since WWII, and what freedom we have left, which diminishes every day. I challenge anyone advancing this sophism to explain exactly how Americans would be less free if we had not invaded Korea, Viet Nam, Somalia, Yugoslavia, Iraq, or Afghanistan. Of course any such explanation would be a list of non sequiturs and absurdities.

As a net taxpayer, I grow increasingly irritated by the ubiquitous exhortations by politicians and media figures to be “grateful to the troops for my freedom,” with the implicit accusation that I am not grateful enough. Even if one accepts the preposterous claim that these wars are making us freer, the gratitude should be directed at those who pay for all of this. I see no reason why I should be grateful to someone whose salary, expenses, education, and sometimes even retirement are all paid for by me – while I have to try to pay for all of those same expenses for myself and my family with what is left after the government’s rapacious taxation.

I for one will not be celebrating our democracy today. Rather, I will celebrate our lost republic in the hopes that it can one day be restored. I hope you will consider my thoughts on this matter and govern accordingly.

Best regards, 

Tom Mullen

Can Ron Paul Really Be Right About Everything?

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I was in Jacksonville last Friday for an event called “Ron Paul on the River.” The Republican presidential candidate was supposed to speak there, but had to cancel at the last minute due to a Libya vote in the House scheduled on short notice. While it was disappointing that the congressman would not appear, the keynote speaker that appeared in his place was well worth the trip.

Doug Wead is a self-confessed former member of the Establishment. In addition to being a best-selling author and world-renowned speaker, Wead has worked as a special advisor to President George H.W. Bush and on the campaign of George W. Bush. According to Wikipedia, Time magazine called Wead “an insider in the Bush family orbit.”

A good portion of Wead’s speech in Jacksonville focused on issues on which he had formerly disagreed with Paul. At one point, he made the startling statement, “but now I agree with him on everything.” He encouraged Paul supporters to persevere through the difficulties of supporting an anti-Establishment candidate and to remember that “logic and the truth are on your side.”

It is not fashionable to admit that you agree with someone “on everything.” To say that you do is to invite the accusation of belonging to a personality cult whose members blindly follow their leader no matter what position he takes. Indeed, this criticism is leveled at Paul’s grassroots supporters, who are called “Paulites” by detractors, implying that they have a pseudo-religious devotion to Paul rather than informed positions on the issues.

In modern American political thought, where only the results of political action are considered rather than the rights of the parties involved, it is not considered reasonable to agree with anyone 100% of the time. For someone like Wead, whose living depends upon his credibility as an expert on those things he writes and speaks about, there is a certain amount of risk in making this statement. Yet he did it in Jacksonville without hesitation, emphasizing the words “on everything” to ensure that no one missed the point.

This immediately struck me, because it was the second time in as many weeks that I had heard a statement like this from someone who had something to lose by saying it. Appearing on The O’Reilly Factor, John Stossel answered O’Reilly’s assertion that Ron Paul hadn’t won the New Hampshire debate by saying, “But he’s right about everything and you’re wrong.” O’Reilly retorted, “Everything?” Stossel repeated, “Everything.” When O’Reilly pressed yet again with the same question, Stossel finally backed up to “Just about everything.”

Stossel is a television journalist, so credibility is arguably even more important to his living than it is to Wead’s. That is not all the two have in common. Stossel also admits that he regrets much of the first 20 years of his career when he attacked the free enterprise system and championed increased government regulation over business. Like Wead, Stossel was a member of the Establishment, albeit from the other side of its aisle. Now, despite the risk to his credibility, he says that Ron Paul is right about everything.

So is this some sort of quasi-religious devotion? Are Paul’s followers simply caught up in a mass hysteria over someone who is likeable and has demonstrated his integrity for so long that they abandon their reason to avoid critical examination of his positions? Isn’t it impossible for an intelligent person to agree with someone on everything?

The answer to all three of these questions is “no.” In fact, contrary to what conventional wisdom tells us, it is actually illogical to agree with Paul on some things and not others.[1] As I’ve said before, Paul is simply applying the central libertarian axiom to each issue. As long as he applies the axiom properly and does not make an error of logic, he is going to come out with a position that is consistent with libertarianism 100% of the time.

For those in the grip of this “conventional wisdom” that has led us to the brink of societal collapse, Paul’s answers are anything but consistent. On economic policy, he seems like a hardcore conservative, surpassing all other Republicans in his zeal to eliminate regulation and taxes. On foreign policy and social issues, he seems to be some sort of lefty hippie, arguing to legalize all drugs, allow homosexuals to marry if they wish to (he wants government out of marriage even at the state level), and to immediately order home every soldier stationed on a foreign base.

Those just learning about libertarianism might conclude that it is some sort of “compromise” between conservatism and progressivism/liberalism. This is untrue. Libertarianism evaluates political issues from a completely different perspective than either mainstream political philosophy. Sometimes, conservatives happen to agree with libertarians, but for different reasons. Sometimes, the same is true for progressives/liberals. Libertarians care not for who agrees/disagrees. They follow one simple principle and let the chips fall where they may.

Walter Block sums this up best in terms of understanding how libertarians like Paul formulate  their positions.

“This is because libertarianism is solely a political philosophy. It asks one and only one question: Under what conditions is the use of violence justified? And it gives one and only one answer: violence can be used only in response, or reaction to, a prior violation of private property rights.”

In order to understand Ron Paul’s platform, there are two conclusions one must reach. The first is that libertarians are correct that violence is only justified in response or reaction to a prior violation of private property rights. Block does not limit the definition of “private property” to land ownership or even physical property in general. Instead, property includes all of one’s life, liberty, and justly acquired possessions. So, any murder, assault, theft, fraud, or coercion would be violation of a private property right. Based upon that understanding, ask anyone if they agree that violence should never be initiated, but instead only used in defense, and you will almost always get agreement. So far, so good.

The second thing that one must conclude in order to understand Ron Paul is that all government action is violent action. This is where it gets difficult for conservatives and liberals alike. While it is easy to see the government’s use of its military as an act of violence, it is harder for people to see that other government activities represent violence. How could providing healthcare, ensuring workplace safety, or licensing barbers be violent acts?

This is the great truth that hides in plain site under every human being’s nose. In order to recognize it, one must disengage the deep, emotional attachments that almost everyone has developed to some or all government activity. Once you get someone to that point and they are truly ready to reason, they will come to the libertarian conclusion every time. To the genuinely interested and rational person, only one question is necessary:

“What if you do not cooperate?”

I cannot count how many times I have asked this question and received in response a stare – not a blank stare, but a thoughtful one. You can see the wheels turning. Sometimes they will begin to speak, then stop themselves while they think some more. They are looking for a hole in the theory. They are unable to find one. They are genuinely interested in either proving or disproving your argument. By that time, you have won.

For those who do not immediately “see the light,” you can pick any government action and walk them through that reasoning process:

You: Suppose that I do not wish to participate in Medicare and withhold only that percentage of my payroll taxes that would otherwise go to fund it. In return, I agree not to make use of any of the Medicare benefits. What will happen to me?

Him/Her: You will be charged with income tax evasion.

You: What if I don’t answer the charge?

Him/Her: You will be arrested.

You: What if I do not agree to submit to the arrest?

Him/Her: You will be physically forced to submit.

You: And if I resist further?

Him/Her: (reluctantly) You will be killed.

You: So, you now agree that we are forced to participate in Medicare under the threat of violence, correct?

Him/Her: (Even more reluctantly) Yes.

You: Is there any government tax, law, or regulation that we are not similarly forced to participate in under the threat of violence? Are not all of these answers the same in relation to even the least significant government regulation, like a parking ticket?

Recall the final scenes in the 1999 movie, The Matrix. After Neo’s “resurrection,” he stands up to once again face the agents that had apparently killed him a moment before. However, when we see the matrix through Neo’s eyes, as he sees it now, the whole world is made up of lines of green code. Neo had been told early in the movie that the matrix is a computer-generated illusion. He heard it, but did not know it. He is now seeing that world as it really is for the first time. His mind has reasoned through and understood all of the implications of what Morpheus has told him. Once he truly understands, he is invincible.

This is a wonderful metaphor for the libertarian “conversion.” Once one has had the epiphany that all government action is violent action, there are only three choices. 1) You come to the same conclusions that Ron Paul does on every issue, 2) You disagree with Walter Block and conclude that it is morally justifiable to initiate violence against other people, or 3) You abandon logic and stop acknowledging reality. This is why Paul told the Today Show’s Matt Lauer that “economic liberty and personal liberty are one and the same and foreign policy that defends America and not police the world [sic] – that’s part of the package as well.”

Doug Wead, John Stossel, and millions of Paul’s supporters have had this revelation. This is why they agree with Paul without exception. They refuse to accept the other two choices available to them: to support the initiation of violence or to abandon logic and refuse to acknowledge reality. This is not fanaticism. It is the inevitable conclusion that one must come to if one employs logic and faces reality. That is why Doug Wead said, “logic and the truth are on your side.”

During his 2008 presidential campaign, Ron Paul lost the Washington state primaries by a considerable margin. However, he won big in Spokane. Why? Because that was the one part of Washington in which Paul’s campaign was able to schedule an appearance. During that campaign, Howard Stern remarked about his exposure to Paul’s message just as Wead, Stossel and millions of Paul supporters have: “I think I agreed with everything that dude just said.” Stern went on to say that he had never heard of Paul before and that it was a shame that the Republican Party was not taking him seriously.

Once a reasonable person hears the libertarian message, it is inevitable that they will not only agree, but agree completely and without exception. This is the antithesis of fanaticism. It is reason. It is recognizing the real world for what it truly is and applying logic to those observations. It is the consistent application to separate political issues of one undeniable principle, which can only lead to libertarian conclusions. It is actually illogical and fanatical to come to any others.

During the 2008 presidential campaign, the Establishment media had a strategy to combat this very troublesome dynamic: Don’t let the message be heard. That is no longer a viable strategy. Paul’s grassroots supporters have forced his platform into the mainstream. The media is simply unable to ignore Paul’s campaign this time around. The libertarian message will be heard. Whether or not Paul wins the presidency is secondary. Every day, more Americans are hearing the truth for the first time and its power is irresistible. The revolution is underway. Whether it takes a year, a decade, or longer, liberty is going to prevail.

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

© Thomas Mullen 2011

[1] This assumes that Paul continues to apply libertarian reasoning consistently. It is certainly possible to disagree with him if he misapplies the theory. There are also fine points of theory that libertarians would take Paul to task for, but not on his general positions on the domestic and foreign policy of the federal government.

Extremism Is the New Race Card

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There was a time in American politics when the “race card” was an effective Establishment strategy against arguments it could not refute logically. Regardless of how unrelated an issue may have been to race, the Establishment would try to make a connection in order to avoid confronting the troublesome argument. Alternatively, they might completely ignore the issue at hand and simply present evidence that the proponent himself was racist. So distasteful is racism to most Americans that the mere suggestion that a politician might be racist was enough to condemn any idea, policy, or position he might take, whatever its merits.

Today, that is no longer true. While hardcore liberals still try to use the race card to discredit anyone who opposes their policy positions, it is apparent that it no longer resonates with average Americans. It was always a strategy with a limited shelf life. Besides, it is only effective for one half of the Establishment. If the race card sounds hollow and timeworn coming out of the mouths of liberals, it sounds downright ridiculous when employed by conservatives.

Besides, the entire ruling Establishment is in trouble. Their welfare-warfare state is coming apart at the seams. While the blue team and the red team will continue to fight with each other, they both realize that average Americans are becoming more open to hearing from people who refuse to put on either jersey. Something must be done to stifle any reasonable consideration of these unapproved ideas. The ruling class needs a new pocket ad hominem, one that can be used by conservatives or liberals.

Extremism has filled the void. “Extremist” is a word that elicits an immediate emotional response. Thanks to the all-out propaganda campaign against extremism, average Americans immediately associate the word with images of bomb-laden Muslim terrorists or McVeigh-like “militia types,” both apocalyptic threats to all of humanity. The moment an argument is made that departs from the status quo, the tag of extremism is applied to its author in the attempt to deflect attention away from the argument itself.

The most discouraging aspect of this new slur tactic is its effectiveness.  Not only is it employed by both conservatives and liberals, but it is immediately given credence by both sides as well. Recall any discussion you’ve had on a political issue. If a position is taken that is outside of the Mitt Romney-Hillary Clinton continuum, it is inevitable that someone in the room will allege extremism. Heads will immediately nod in agreement, as if merely uttering the word makes the allegation true. It is also assumed without question that any “extremist” position must be wrong. The result? The discussion goes back to the continuum. So it goes in millions of households and hundreds of millions of minds.

But what does the word “extremism” mean? Merriam-Webster defines it (in the most relevant of several definitions) as “going to extreme lengths.” Often, extremism is characterized as “too much of a good thing.” For example, one might agree that too many carbohydrates in one’s diet is not healthy, but consider eating no carbohydrates at all as “extreme.”

However, what does the word mean when applied to politics? If politics is the pursuit of justice, can any position be accurately characterized as “extremist?” Can there ever be too much justice?

Read the rest at LewRockwell.com…

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.