Tag Archives: central economic planning

Centralization Is Insane

The latest much-ado-about-nothing crisis passed, with a result that should seem familiar. In 2008, Americans were told that if the TARP bill (a $787 billion taxpayer-funded welfare handout to large banking institutions) wasn’t passed, the stock market would crash and massive unemployment would follow. After an unsuccessful first attempt to pass the bill amidst angry opposition from constituents, the bill passed on a second vote. Subsequently, there was a stock market crash followed by massive unemployment.

This time, our political/media cabal told us that if Congress was unable to pass a bill to raise the debt ceiling, that the government would not be able to meet its short term obligations, including rolling over short term bonds with new debt. U.S. debt would be downgraded from its AAA status, and a default would be imminent. After the melodrama, Congress passed the bill raising the debt ceiling. Standard and Poor’s subsequently downgraded U.S. Treasury debt anyway, and deep down everyone knows that a default is coming as well, one way or another.

We are seeing the end of a paradigm. Thomas Kuhn argued in The Structure of Scientific Revolutions that anomalies eventually lead to revolutions in scientific paradigms. His argument holds equally true for political paradigms as well.

A paradigm is a framework within which a society bases its beliefs. For example, people at one time believed that the forces of nature were the work of a pantheon of gods. Sunlight came from one god, rain from another. The earth was a god, as was the moon. With nothing to disprove the premises of the paradigm, it persisted. People went on believing that sunlight and rain were the work of sun and rain gods because there was no compelling reason for them to believe otherwise.

However, within any paradigm there are anomalies. Anomalies are contradictions – phenomena that cannot be explained within the framework of the paradigm. People have a startling capacity to ignore or rationalize away these anomalies. While it may defy logic to continue to believe that rain comes from a rain god even after evaporation and condensation has been discovered and proven, people would rather ignore the anomalies and cling to the paradigm than face the fact that the paradigm is false.

Once there are too many anomalies, the paradigm fails, and a new one must take its place. This new paradigm renders the old one absurd, even crazy. At some point in the future, people will look back on the political paradigm of the 20th and early 21st centuries in just this manner. There is at least one thing that will be quite obvious to them: centralized government is insane.

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

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

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

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

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

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

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

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

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

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

Tom Mullen is the author oWhere 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.

Remarks to the Punta Gorda Tea Party July 3, 2010

I would like to thank the organizers of the Punta Gorda Tea Party for giving me the opportunity to come here today and speak to you on this joyous occasion. I say “joyous occasion” because I suspect that everyone of you, like me, has at sometime in the past imagined that he or she was the only person in the world who understood that our liberty was in jeopardy, or who cared enough to do something about it. Yet, today, although the danger has never been greater, there is joy in my heart, as I hope there is in yours, because of what this movement has made plainly obvious: we are not alone! In fact, to paraphrase words attributed to Japanese Admiral Yamamoto after the attack on Pearl Harbor, I believe that those who would dare to attack our liberty have merely awakened a sleeping giant.

I would like to take just a few moments to reflect upon the meaning of that which we fight for, to share a few words from those who established this land of liberty, and to humbly suggest to you an idea to carry forward in this sacred fight. I want to start with the question that I began my first book with, which is, “What is freedom?”

234 years ago, a man named Jefferson answered that question for us. I would like to share a few passages from Mr. Jefferson’s favorite philosopher. This man’s writing was so important to Jefferson that he actually had a resolution passed that said,

“Resolved, that it is the opinion of this Board that as to the general principles of liberty and the rights of man, in nature and in society, the doctrines of Locke, in his ‘Essay Concerning the True Original Extent and End of Civil Government,’ and of Sidney in his ‘Discourses on Government,’ may be considered as those generally approved by our fellow citizens of this, and the United States.”

I share this with you not to make some theoretical or academic point, but because the ideas Jefferson refers to have the utmost relevance to the struggle we find ourselves in now. Let me read to you the opening words of the essay by John Locke that Jefferson cites:

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

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

You no doubt recognize that this was the source of those famous words, “We hold these truths to be self evident – which means that no proof is required, for these truths can be directly observed in nature – that all men are created equal, that they are endowed by their creator with certain unalienable rights.”

I wanted to read those passages from Locke because they contain a very important point. Our natural liberty is not the license to do anything we wish. We must exercise our will “within the bounds of the law of nature.” But what are those bounds? What is the law of nature?

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

So, natural liberty is the right to order our actions AND DISPOSE OF OUR POSSESSIONS as we see fit, as long as we do not harm another person in his life, health, liberty, or possessions. Libertarians today call this “the non-aggression principle,” but it is really the principle of natural liberty itself. It is the fundamental, founding principle of the United States. It is vitally important that the connection between liberty and non-aggression be understood, for it is upon this foundation that the limits on government power rests.

Jefferson confirmed this many times over the course of his life. Whenever he was asked about the role of government in a particular matter, he consistently applied the non-aggression principle. In a letter he wrote in 1816, he said, ““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.”

Of religious freedom, Jefferson wrote, “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.”

On another occasion he wrote, “But rightful liberty is unobstructed action according to our will within limits drawn around us by the equal rights of others. I do not add ‘within the limits of the law,’ because law is often but the tyrant’s will, and always so when it violates the right of an individual.”

There are many more quotes just like these that I could read, but the point is made. You may ask yourself, “what does this have to do with Obamacare or any of the countless other present incursions into our liberty?” The answer is this: the reason that Obamacare violates our liberty is because it violates the non-aggression principle, which is liberty.

Now, I want to stop here to draw a crucial distinction. Non-aggression is not pacifism. While the principle of liberty forbids us to initiate force, we have a right and a duty to defend ourselves with force, if necessary, against those who commit aggression against us. And so, in order to secure our rights, we delegate this individual power to government – making government the societal use of force. It is also crucial to remember that all government action is backed by the force of arms. When we make laws, they must be followed or he who breaks the law will encounter that armed force. This power comes from us, from each individual – from our right to use force in self defense. However, we cannot delegate a power to government that we do not possess individually, and so the limit on government power is the same as the limit on individual power: that force may only be used in defense against aggression. When government is kept within this limit, its people are free. When it goes beyond this limit, even if the intentions are good, it is initiating force against its people and we call this tyranny.

When one person steals the property of another, we employ the societal use of force – government – to compel that person to make restitution and to accept punishment for the crime. This is consistent with the non-aggression principle. We call this justice.

When a foreign nation attacks us, we employ our military to defend our lives and liberty with force against that nation. This, too, is consistent with the non-aggression principle.

However, when the government makes a law that says that one person must pay the medical bills of another, or purchase a product that he does not consent to purchase, then it is the government that is the aggressor. It is the government that initiates force against someone who has not committed aggression himself. This is a violation of the non-aggression principle – a violation of liberty – and that is why it cannot be tolerated by a free people. No law written by men can violate the law of nature.

I respectfully suggest to all of you that this be the measuring stick against which you judge all acts of government, from its economic policies, to its criminal law, to its foreign policy. It was the non-aggression principle that our founders used to determine the limits of government power. It is the founding principle of our nation. Once you apply it, you will find that our government has violated our liberty for many decades. This has happened under Republican and Democratic rule. At home, it is characterized by the massive redistribution of wealth, not just for welfare for the poor, but for bankers on Wall Street, for farmers, for scientists, for educators, and for every one of us in programs like Social Security and Medicare – all of these are violations of our liberty that we must begin talking about responsibly phasing out, if we are to regain our freedom.

The violation of our founding principle extends to our foreign policy as well, for we fight wars with nations that have committed no aggression against us. This is a threefold violation: against the people of the nation we attack, against the soldier whose life is risked or sacrificed unnecessarily, and against the taxpayer who is forced to pay for it at the point of the same gun that compels him to pay for Obamacare.

Now, I know that the Tea Party movement strongly supports our troops and so do I. God help us if we ever become a nation that does not honor the men and women who walk in front of bullets to preserve our liberty. However, it is not the soldier that takes us to war. He does not make that decision – not because he is incapable of it – but because for a limited time while he serves, he pledges to follow the orders of his civilian leaders about where he will go and whom he will fight. By doing so, the soldier places a sacred trust in those leaders that they will call upon him to fight only when our lives and liberty are truly in danger.

Now, let me ask you one question: Do you truly believe that those same civilian leaders who have given you Obamacare, the Community Reinvestment Act, Fannie Mae, Amtrak – all of which are failed and bankrupt – were suddenly competent when they made decisions about taking us to war? I will suggest this to you: it is not merely incompetence, but a deliberate violation of our founding principle for the purpose of acquiring power that has informed all of their decisions. Remember that Washington, Adams, and Jefferson spent their entire presidencies trying to keep our country out of foreign wars. As James Madison said, “No nation could preserve its freedom in the midst of continual warfare.”

My friends, we are in a struggle for the greatest idea that the world has ever known: freedom. You, the Tea Party, are being attacked by the established powers with every weapon at their command, and for one reason only: they are afraid of you. They know that their power over you requires your continued consent and you are no longer willing to be governed without it. I ask you to remember the meaning of that great principle of liberty, the non-aggression principle, and apply it objectively to everything that our government does. You will find that most of what it does today violates that principle. In other words, even after we get rid of Obamacare and send this president and Congress job hunting, we will still have a lot of work to do. It will not restore our liberty to vote out those who commit one form of aggression and replace them with people who will merely commit another. We must select representatives from amongst ourselves who will accept the natural limits of their powers or we will be no freer than we are now. But I am joyful today because we the people have that power. We have slumbered for decades, but we slumber no more. The sleeping giant is awake and we are going to win.

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

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© Thomas Mullen 2010