Tag Archives: natural law

>The Natural Law Provides the Answers

>There are many well-intentioned people that invoke the Constitution of the United States when looking for the solutions to what they believe (or are led to believe) are “dilemmas” confronting America today. This results in spirited debates about what the framers of the Constitution might have intended when writing it, in spite of the fact that there are hundreds of essays by our founders that explain what they intended beyond any reasonable doubt.[1] However, establishing the specific meaning of each article or phrase in the Constitution cannot supply the answers to the questions confronting us now. The Constitution is not a philosophical document. It is a legal one. As such, it does not express the philosophy upon which our nation was founded. In other words, it does not answer the question, “What will our government attempt to do?” but rather, “How will our government attempt to do it?”[2]

The answer to the former question, “What will our government do?” or, more precisely, “What should our government do?” is answered by the other of our founding documents, The Declaration of Independence. Some mistakenly dismiss the Declaration because “it does not have the force of law,” which it does not. This completely misses the point. The law is merely the attempt to codify the underlying principles of justice – to put the philosophy into practice. However, it is the Declaration that articulates that philosophy. Like the Constitution, the statements made in this document are clear and unambiguous. While often mistaken for platitudes that are left open to subjective interpretation, each statement in the Declaration of Independence actually has a specific, objective meaning that must be known in order for the whole to be understood.

The very first sentence of the Declaration contains one of its most important philosophical concepts: the laws of nature and of nature’s God. Before one proceeds any farther, it is vital to determine exactly what the law of nature is, for it is the foundation for all that follows. The law of nature is clearly defined in John Locke’s Essay Concerning the True Original Extent and End of Civil Government.

“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…”[3]

Reason is the law of nature that the Declaration refers to. It was reason that allowed Locke and our founders to observe the self-evident fact that all men are created equal, to conclude based upon that observation that they are endowed with certain unalienable rights, and to further conclude that the sole purpose of government is to secure these rights. These were not articles of faith, but reasoned conclusions based upon empirical evidence.

That it was Locke’s philosophy that our founders adopted is also clear. They did not conclude, as Hobbes did, that man should give up his natural rights upon entering society in return for the security that an absolute monarch could provide. Neither did they conclude that man must subordinate his rights to the “general will,” as Rousseau thought necessary for civil society. Rather, they clearly stated, as Locke did, that the purpose of government was to secure our rights.

There are further conclusions that proceed directly from this. First, we do not have “Constitutional rights.” Our rights are neither granted by the U.S. Constitution nor by its first ten amendments, commonly referred to as the “Bill of Rights.” Our natural rights precede the government and the Constitution. The so-called Bill of Rights does not grant rights but rather prohibits certain violations of our rights by the government.[4] The Constitution is a means toward an end: the end of securing our rights. To the extent that it does so it is a useful instrument. To the extent that it fails to do so it is not.

Similarly, we must also conclude that we cannot lose our inalienable rights. The very meaning of the word “inalienable” means that they cannot be taken away, not even by majority vote. Regardless of any Supreme Court decision or new legislation, our rights will not and cannot ever change. No Constitutional Amendment can revoke our rights or grant us new ones. Those rights may be violated by unjust laws, rulings, or Constitutional amendments, but they remain our rights nevertheless. It is appropriate for us to demand that they be respected and it is our duty to defend them, for the exercise of our natural rights is the essence of being human.

Finally, our Declaration answers the question that is ultimately asked whenever our present difficulties are truly understood. “What can I do?”

Our Declaration also answers this question.

“That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.”

This also comes from Locke, who wrote,

“…whenever the legislators endeavour to take away, and destroy the property of the people, or to reduce them to slavery under arbitrary power, they put themselves into a state of war with the people, who are thereupon absolved from any farther obedience, and are left to the common refuge, which God hath provided for all men, against force and violence. Whensoever therefore the legislative shall transgress this fundamental rule of society; and either by ambition, fear, folly or corruption, endeavour to grasp themselves, or put into the hands of any other, an absolute power over the lives, liberties, and estates of the people; by this breach of trust they forfeit the power the people had put into their hands for quite contrary ends, and it devolves to the people, who have a right to resume their original liberty, and, by the establishment of a new legislative, (such as they shall think fit) provide for their own safety and security, which is the end for which they are in society.”[5]

Based upon these passages, one might be tempted to conclude that we have no alternative but armed rebellion. To be sure, it is the right of every individual to defend himself by force when his natural rights are violated, for violation of those rights is the definition of the state of war. However, before loading our weapons, we should stop to consider whether our government has truly acted against the will of the people or not. Has it truly acted against our will in establishing massive redistribution programs that violate each individual’s right to property and bankrupts us as a whole? If so, then what of the tens of thousands cheering President Obama as he promised universal health care and the tens of millions who voted him into office? Has our government truly acted against our will in creating and expanding our military empire and tyrannical security/police state? If so, then what of the tens of thousands cheering President Bush and the tens of millions who voted him into office?

In truth, reason should force us to recognize that our government has not become the monster that it is by acting contrary to our will, but by giving us exactly what we have asked it for. As a people, we now openly refer to government as a “provider of services” rather than a “securer of rights.” We have elevated Democracy to an ideal, allowing the majority to grant the government power to violate the very rights that it exists to protect, most consistently property, which is the means of both life and liberty. This was anticipated by our founders, who warned us specifically against the dangers of democracy.

“Wherever the real power in a Government lies, there is the danger of oppression. In our Government, the real power lies in the majority of the Community, and the invasion of private rights is chiefly to be apprehended, not from acts of government contrary to the sense of its constituents, but from acts in which the Government is the mere instrument of the major number of Constituents.”[6]

We have forgotten that the “checks and balances” written into our Constitution were put there to protect us from democracy. We no longer have any concept of what our natural rights are, much less how best to secure them or even that we should be trying to secure them. If anything, we have come to believe that man in civil society has what Hobbes mistakenly believed he possessed in the state of nature – a right to everything, which is why he equated the state of nature with the state of war. Our society now exists in that state of war of “everyone against everyone” that Hobbes described in his state of nature, for most of us believe that we have a right to everything and that we can bring the force of government to bear against our neighbors to secure that right. To engage in armed defense of what we think are our rights amidst such confusion would result in a bloodbath of unprecedented proportions, which is no small statement considering the wars of the last century. As important as rediscovering our true natural rights is the understanding of what we do not have a right to – namely the life, liberty, or property of any other human being.

It is not the majority that determines what our rights are, but it is the majority that makes the laws that are supposed to protect them. We must rediscover our founding philosophy and persuade our fellow Americans to again accept it as our creed, with a written Constitution as its supporting code.[7] For any one of us to regain our freedom, we must “educate and inform the whole mass of the people.[8]” While they are ignorant of the law of nature, they are a force of tyranny that cannot be overcome, no matter how just the cause or how committed the patriot. Once reacquainted with this most fundamental of laws, they are equally irresistible as the “only sure reliance for the preservation of our liberty.[9]” When the inhabitants of America are again guided by reason to reclaim their natural rights and to defend those rights for everyone, we can institute new Government without firing a shot. What could be more progressive than that?

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[1] These are, of course, the Federalist Papers and the rebuttals to them called the Anti-Federalist Papers.

[2] Even the preamble, which states “in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense…,” is really a list of objectives, rather than a statement of the ultimate goal.

[3] John Locke Second Treatise on Civil Government Ch. 2 Sec. 6

[4] Neither are the rights specifically protected in those amendments an exhaustive list of our rights. To ensure that there would be no confusion on this matter, the Ninth Amendment clearly states that the “enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.”

[5] Locke, Second Treatise Ch. 19 Sec. 222

[6] Madison, James to Thomas Jefferson October 17, 1788

[7] This wonderful characterization of the Declaration of Independence as our American Creed and the Constitution as its corresponding Code was suggested to me by my friend and respected colleague, David R. Gillie.

[8] Jefferson, Thomas Letter to James Madison December 20, 1787 Memoirs, Correspondence, and Private Papers of Thomas Jefferson: Late President of the United States Vol. 2 edited by Thomas Jefferson Randolph Henry Colburn and Richard Bentley New Burlington Street London 1829 Pg. 277

[9] Ibid.

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

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>What Is This Free Market We Keep Hearing About? Part II

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>Previously, I wrote an article entitled “What Is This Free Market We Keep Hearing About?” In it I attempted to demonstrate that a free market is the only economic system compatible with liberty, in addition to being the system that will yield the best results for society. The dissenting views were familiar ones, which I will attempt to answer.

The first category of dissenting opinions came from those that somehow misunderstood the article to have argued that a free market exists right now, or has existed in the recent past (perhaps under the Republican regime that has thankfully gone the way of the hula hoop). For the record, we have not had any semblance of a free market since at least the New Deal, and probably not since the institution of the Federal Reserve and the income tax in 1913. If anything, we have had markets that have been “progressively” less free in each succeeding decade, the trend accelerating markedly during a few notable periods, including the 1910’s, the 1930’s, the 1960’s, and the present devastation of our liberty that is occurring before our very eyes. As I have argued more extensively before, the Bush years did not represent free markets.

The next broad category of comments could generally be grouped as those which implied that a truly free market system would amount to no government or restrictions at all and therefore necessitate that market participants would have to be trusted to “do the right thing” at the expense of their own profits. Those making this argument went on to say that history shows that “the corporations” or other wealthy market participants will always choose profit over the good of society.

This is a complete misunderstanding of the concept of free markets presented in the article and of the non-aggression principle of liberty in general. “Non-aggression” does not mean the absence of the use of force (government) under any circumstances. In a free market, there is a very necessary role for government to play, just as in nature there is an appropriate time for the use of force. Specifically, the government brings force to bear against those who have committed or are committing aggression against another’s rights. In a truly free market, the government prevents any party from using coercion or fraud to secure an exchange of property. If a company lies on its financial statements to attract investors or credit, it is the government’s job to prosecute those responsible for fraud. If a company employs violence or the threat of violence in trying to eliminate its competition, it is the government’s responsibility to prosecute the aggressor in defense of the victims.

However, if the company participates in exchanges of property whereby all participants voluntarily consent to the terms and all information pertaining to the transactions are represented truthfully, then that activity is beyond the reach of government, just as speech, religion, and conscience are beyond the reach of government because they do not represent acts of aggression against anyone else’s rights.

With the natural boundary of non-aggression enforced, the market requires no consideration for any participant other than the pursuit of profit. With truly free markets, it is never true that society is threatened unless firms sacrifice their profits to benefit society. Rather, firms can and should pursue only profit so long as they commit no aggression against another’s rights. The law should never be a positive force – it should never compel anyone to do anything. It should only prohibit certain actions, namely those that amount to aggression (fraud being aggression against the rights to property). It is this principle that is consistently violated by our modern brand of “regulation.”

This brings us to a third category of objections, namely that insufficiently regulated markets have resulted in the massive consolidations that have occurred over the past quarter century, decreasing competition and creating overly influential corporations that dominate markets and our government. This argument is rooted in the same misconception as the first – that we have had free markets at some point in our recent past. However, even if one argues that some “deregulation” has taken place and that is the reason for the consolidation, the position still begs one question. Why are new competitors not entering the market to compete with these overly dominant corporations?

There are only two possibilities. One is that the corporations in question have achieved natural monopolies. A natural monopoly is a good thing. It means that one firm is producing products of such high quality and such low price that no other firm is able to compete with it. A natural monopoly can only be sustained as long as the monopolist continues to offer products that consumers prefer over all others based upon their own voluntary decisions. Natural monopolies harm no one.

The only other explanation for a dearth of competition is that there are artificial forces at work that are keeping competition out. This means that market participants are not acting voluntarily, but make their choices under some type of coercion. There is only one entity that can legally coerce participants in any market – government. In fact, it has been the ocean of rules and regulations itself – in violation of every market participant’s natural rights – that has led to the dearth of competition in our supposedly free markets. This conclusion is intuitive. If the corporations are not natural monopolies then their competition must have been eliminated unnaturally or artificially, i.e, by the government.

It is abundantly clear that our labyrinthine regulatory structure is an artificial barrier to new competition, particularly since the regulations are now written by the very corporations they are supposed to govern. However, the root of the problem is not bad regulations or corruption. It is the fact that any barriers to human action exist at all beyond those that prevent aggression. Even without back door deals and outright corruption, these artificial barriers necessarily favor entrenched market players over new firms trying to enter the market, as compliance with regulation drives up start up and compliance costs beyond what all but the largest firms can afford.

The so-called “deregulation” in many of our markets did nothing to dismantle this quagmire of regulation, but merely eliminated barriers to consolidation while continuing to insulate established players from new competition. The results were predictable but certainly not the results of natural market forces. The proper solution to this problem is not to violate the rights to liberty and property by prohibiting one company from buying another, but rather to remove the further violations of those rights that our massive regulatory structure represents.

On this point there were some thoughtful comments attempting to determine whether corporations have rights or whether only people have rights. I would argue that the rights in question when discussing corporations are those of the shareholders, who retain all of the same rights to life, liberty, and property as any other market participant. Some argued further that the shareholders obtain certain privileges granted by government, particularly in limiting liability, that justify taxes or restrictions that would not be justified on individuals.

However, this argument ignores the fact that corporations are required to register and therefore declare to all of society their corporate status. As the decisions to form a corporation, buy its stock, lend it money, or purchase its products are all made voluntarily and with full knowledge of its corporate status, there is no justification for government to impose special restrictions upon a corporation outside of those disclosure requirements necessary to inform the public that it is a corporation.

Finally, there were those that argued that unfettered free markets result in corporations achieving too much “power,” rather than merely too much wealth. Corporate “power” is a misnomer. Power is the ability to use force. Only government has power. It is government’s sacred duty to wield that power only in defense of each individual’s rights. No matter how much wealth a corporation obtains, it exercises no power, unless it literally spends its capital to raise an army and engage in open rebellion. Clearly, this has not been the case. However, it is also clear that corporate or other wealthy interests have used their wealth to buy political favors and to induce politicians to pervert the laws themselves, leading directly to the quasi-fascist economy that we find ourselves confronted with today.

This has been a failure of government, not the free market. It is certainly not admirable when an individual or group uses its wealth to achieve injustice. Nor are interested parties participating in a free market when trying to bring government force to bear upon competitors or other market participants. However, it is ultimately government that is entrusted to preserve justice. The members of government are never compelled to allow wealthy interests to persuade them to abandon their duty. It is the government’s job to say “no,” and when they fail to do so they are destroying the free market, not licensing it.

This brief article certainly does not answer every specific argument made against free markets, but it does illustrate something common to all of them: all objections against free markets result from a misunderstanding of what a free market is. A free market is one in which no one’s rights are violated, resulting in all transactions occurring by mutual, voluntary consent. Participants in a free market practice the non-aggression principle. This does not require unrealistic virtue from market participants, because it is government’s duty to enforce the non-aggression principle. Every economic problem plaguing American society today stems from some departure from the free market, which is some violation of the rights of market participants. Justice is the protection of those rights. Social justice can only be achieved when absolutely free markets exist. Properly understood, freedom and free markets are one and the same.

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

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>What is This Free Market We Keep Hearing About?

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>“…every man, as long as he does not violate the laws of justice, is left perfectly free to pursue his own interests his own way and to bring both his industry and capital into competition with those of other men.”

– Adam Smith (1776)[1]

As President Obama and his pet Congress continue their crusade to expand the reach of government into our lives, “conventional wisdom” continues to tell us that socialized medicine, rampant wealth redistribution, and government control over one industry after another is “necessary” because of the supposed failure of the free market to adequately address the needs of society. The way the “free market” is characterized by politicians and media pundits, it is not surprising that most Americans seem to regard it as some sort of special interest group (Mr. Undersecretary, the gentlemen from the free market are here to see you). Doubtless, when most Americans hear the words “free market,” they picture the CEO’s of Detroit automakers flying in on corporate jets or Wall Street financiers busy mastering the universe. This mischaracterization of the free market is ironic, seeing as both of these groups have recently sought and obtained capital from people who were not free to refuse (taxpayers).

So, before trying to ascertain whether or not the free market has failed society, it is necessary to define exactly what it is. This is not so much difficult as it is inconvenient for those who either wish to exert control over our lives or who wish to be controlled by those that they believe can offer them security in exchange for their liberty – even if it means destroying liberty for everyone. For both of these groups, the “free market” is something that must be characterized as something that it is not. To recognize it for what it is would both threaten their own ability to justify their positions and concede to their victims that what they advocate is in fact abject slavery. Neither result is palatable to opponents of the free market, so gibberish is necessary for them from both a moral and practical perspective.

So, let us say here what it seems that no one anywhere wants to come out and say: the free market is simply all members of society exercising their inalienable rights. It is nothing more and nothing less. Any other system, by definition, violates some or all of these rights.

Every individual has a natural right to labor and to keep the fruits of his labor (his property). This is his only means of pursuing his happiness. There is only one role for government in this area: to defend the property of each individual against theft by another person or group. A truly free market limits government’s role in regards to property to this natural boundary – for any further role constitutes government committing the very crime it exists to prohibit.

Every individual has a natural right to liberty – to do as he pleases as long as he does not commit aggression against the equal rights of another. In a free market, there can be no “regulation” (as we incorrectly understand the term today). The laws that restrict human action must be limited to those few necessary to ensure that no individual is forced or defrauded while paticipating in an exchange of property nor forced to accept any terms that he does not freely consent to. As the quote from Adam Smith illustrates, one cannot talk about “free markets” without at the same time incorporating the Non-Aggression Principle of Liberty. While Smith is generally regarded as the “father of capitalism,” he never actually called his economic system by that name. Instead, he referred to it as “a system of natural liberty.” Given the confusion that now accompanies the word “capitalism,” it might be better to revert to Smith’s terminology.

Since a free market is by definition the only system that allows individuals to exercise their rights, to say that an unfettered free market does not work is to say that society will not work unless those rights are systematically violated and that those violations must be protected by the law. A greater perversion of justice is unimaginable. Yet, the majority of our elected officials champion exactly this. Sadly, the majority of their constituents blindly parrot their horrific slogans.

In response to this argument, the more cunning opponents of liberty will say that we have given the free market a chance to work and it has failed. False prophet of freedom Alan Greenspan is notable among this gang of vipers. However, any lucid analysis of the difficulties that we find ourselves in now can indisputably be traced to the aspects of our society that prevent free markets. Bad mortgage loans were made because government committed the fraud of monetary inflation combined with the theft of guaranteeing loans with taxpayer money. The skyrocketing cost of health care is a result of government committing the theft of taking money from one individual and using it to buy health care for another, suspending the natural law of supply and demand with artificial demand. Contrary to the idea that individual rights must be balanced with societal needs, it is the violation of individual rights that causes all of our societal problems, most pervasively our economic problems.

As it is merely the economic application of the Non-Aggression Principle of Liberty, the free market is the only system that allows individuals the ability to exercise their right to pursue their happiness. By doing so, they naturally seek to profit from their labor and compete with each other without committing aggression against each other’s rights. History shows that individuals acting in this manner produce enormous benefits for their fellow human beings. The steam engine, the automobile, the airplane, the telephone, and virtually every other technological advance that provides a tangible improvement in the quality of human life have been the result of human beings peacefully competing with each other for profit.

Conversely, the atomic bomb, the concentration camp, and every other technology which serves the purpose of death, destruction, and enslavement have been the result of governments forcefully confiscating property from their citizens which would otherwise have been put to productive use.[2] It has only been by violating the individual, inalienable rights to life, liberty, and property that any of these horrors were able to come to fruition.

The free market has not failed. The free market is Freedom itself, and while it has only occurred for brief moments throughout history, it has never, will never, and can never fail. When we are confronted with gibberish about the failure of free markets and the need for government to “play a role in the economy,” or for a “public-private partnership,” let us not let ourselves be led into a carefully framed argument about what might provide more health care, produce more automobiles, or save more jobs. Let us recognize these arguments for what they are: a declaration of war upon our inalienable rights.

As our Declaration of Independence states, government’s purpose is to secure our rights, including our inalienable right to a free market within which to exchange our property. Whenever any Form of Government becomes destructive of this end, it is our right and our duty to alter or abolish it. Not only must we resist further government expansion into our economy, we must begin dismantling the institutions of tyranny that government has already established over the past century. Our representatives must hear this from us every day until they call off their attack upon our rights or until they can be removed from office. There is nothing in any of our lives that is more important than this right now.

Check out Tom Mullen’s new book, A Return to Common Sense: Reawakening Liberty in the Inhabitants of America. Right Here!
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[1] Smith, Adam An Inquiry into the Wealth of Nations from An Inquiry into the Wealth of Nations: Selections edited by Laurance Winant Dickey Hackett Publishing Indianapolis, IN 1993 pg. 165
[2] The reader should avoid confusing private companies developing weapons for the government with “the free market.” The fact that the companies are privately owned does not mean that they are operating in a free market. Quite the contrary. Since the buyers of their products do so involuntarily (taxes), the development of new weapons and subsequent sale of them to the government has nothing to do with a free market.

>Collectivist Republicans Losing Their Fight

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>For eight years, the only reasonable commentary on government policy came from the left. While George W. Bush was president, supporters of the Democratic Party correctly protested the evil war of aggression in Iraq, the abominable use of torture by our military and intelligence agencies, and the sinister aspect of our own government listening to our phone calls, reading our e-mails, and infiltrating our peaceful clubs and organizations as part of the tyrannical War on Terror. Regardless of their motivation, all of these criticisms from the left were valid. The Bush administration, especially while enjoying the support of a Republican majority in Congress, was one of the most damaging administrations to our liberty of any in recent memory.

Of course, these persistent attacks by the Democrats were not really motivated out of a love of liberty. They simply represented a rival gang appealing to the American public’s dissatisfaction with the Bush administration for their own political ends. If anyone doubts this, simply put your ear to the ground and listen for a moment. While the Obama administration marches forward in expanding the War on Terror, fights in court to solidify the government’s right to spy on its own citizens, and has actually confirmed the government’s right to torture under the guise of prohibiting it (as long as said torture is called by another name), all protests from the left against these abominable practices have stopped (kudos to Rachel Maddow and Glen Greenwald who are both notable exceptions).

Since it is apparent that the Democrats are not going to reverse any of these Bush-era incursions against liberty, we can see what President Obama really meant by “change.” While breaking every promise he made to his supporters regarding war, torture, and domestic spying, he has launched an all-out assault on what is left in America of the individual rights to property and free enterprise. His American Recovery and Reinvestment Act handout to existing welfare programs instead of to the “shovel-ready projects” that he claimed the bill would fund, his health care “reform” initiative that will merely attempt to implement programs that have already failed in Europe and Canada, and his destruction of contract law in stiffing secured creditors in the GM bankruptcy are only the beginning.

While all of this might seem gloomy, it should at least represent a political opportunity for the Republicans. Finally, the Republicans have a chance to start making sense and appealing to the natural sense of justice inside each American that was the reason for their political demise in the first place. However, while it might appear on the surface that they are taking advantage of this opportunity, they are not. While railing against what they call Obama’s socialism, they fail to recognize the reason that they will fail in opposing him: their arguments are as collectivist as Obama’s.

Consider their arguments against “Obamacare.” They argue that a government-run program would be inefficient, would eliminate competition through artificially low prices subsidized by tax revenues, and would result in lower quality care and rationing. All of these things are true.

Regarding the government’s takeover of the automobile industry, they argue that the government doesn’t know how to make cars, that forcing the American manufacturers to try to make “greener cars” will only raise their costs and make them less competitive, and that without eliminating the labor union contracts that brought down the American automakers in the first place, they can never compete with foreign automakers, not even those operating in the United States. All of this is true as well.

As just one more example, the Republicans criticize President Obama’s call to expand public works projects, including adding 275,000 jobs under Americorps. They argue that these are not “real jobs,” that once the projects are completed the jobs will go away, and that government cannot create real, sustainable economic growth. Only the private sector can create jobs that last. Again, all true.

While all of these arguments are valid, they are share the same flaw: they are all made based upon what they believe will achieve the best aggregate economic results. Their arguments amount to “the beehive will make more honey under our system than theirs.” Like the Democrats, their positions all proceed from the belief that the “needs of society” or the “greater good” outweigh the rights of the individual. If anyone doubts this, then they should take a few moments to read a transcript of John McCain’s acceptance speech upon receiving the Republican nomination for president last year.

The correct argument against all of President Obama’s programs is that they violate the individual rights that government is supposed to protect. Government is an institution of justice, not economics. It exists solely to protect the life, liberty, and property of its constituents. The minute that government attempts to achieve anything beyond this, it must necessarily destroy those rights in the process. As Thomas Jefferson said,

“To take from one because it is thought that his own industry and that of his father’s has acquired too much, in order to spare to others, who, or whose fathers have not exercised equal industry and skill, is to violate arbitrarily the first principle of association–‘the guarantee to every one of a free exercise of his industry and the fruits acquired by it.”[1]

When government protects life, liberty, and property, enforces the sanctity of contracts, and punishes only violence or fraud, the “free market” that results does produce higher economic productivity and a more equitable distribution of wealth. The beehive does in fact make more honey when the individual rights of the bees are respected. However, when those rights are violated in an attempt to manage the results, the wealth-generating mechanism is destroyed. There is no conflict between individual rights and the needs of society. Securing the rights of every member of society is society’s greatest need.

These are supposed to be the central principles of the Republican Party. Their name itself should be an enormous public relations advantage for them over the Democrats, as our Constitution guarantees us a republican form of government – not a democratic one. Yet what word did we hear from George Bush to describe our nation and its philosophy for all eight years of his presidency? “Democracy.” There is a good reason for that.

Despite their talk about free markets, capitalism, and smaller government, the Republicans have rarely practiced these principles over the past century. The closest they came to fielding a presidential candidate that intended to govern by them was Barry Goldwater, and we the people handed him the most one-sided defeat in American history. After that, Republicans have decided to “talk like libertarians but govern like European social democrats,” as Thomas Dilorenzo so eloquently put it.

After giving the greatest inaugural address of the 20th century (and yes, I am counting John Kennedy’s), Ronald Reagan went on to save Social Security. He had his chance to make a stand and point out that nothing with the word “social” in it was likely to work, besides it being abhorrent to liberty, yet he contradicted everything he said in that wonderful first speech and raised taxes to perpetuate American socialism for another generation. He also ran deficits that exploded the national debt, started the Rex 84 program (the dreaded FEMA camps), and launched the War on Drugs. So much for the “Goldwater Republican.”

George Bush similarly came into office talking about “smaller government,” and “free markets (not to mention his “humble foreign policy”), yet he expanded federal entitlements more than any president since LBJ and cheered on Clinton’s “ownership society,” whereby people who couldn’t afford houses got loans for them anyway because they got to use other people’s money as collateral. Like so many of his Republican predecessors, George Bush’s idea of “free markets” was merely that his friends on Wall Street and in corporate America made as much money as possible, regardless of the fact that they did so because of artificial market conditions created by the Federal Reserve, Fannie Mae/Freddie Mac, and the spider web of regulations that are now written by the very corporations that they are supposed to govern. All of these institutions represent government interference with the free market, fundamentally violating property rights and insulating government-favored corporations from competition. If that is “capitalism,” then Stalin and Mussolini were history’s greatest capitalists.

That brings us to newcomer Sarah Palin. Somehow, she seems to have acquired immunity from criticism of her economic policies despite being the most overt Republican socialist alive. As governor, she put a windfall tax on oil companies operating in Alaska and redistributed their profits to Alaskan citizens. She says that the oil in the ground under Alaska belongs to “the people of Alaska,” instead of to those who risk and spend their own capital to drill for it. When Hugo Chavez did that, it was socialism. When a Republican governor did it, it was “standing up to big oil.”

So, the Republicans are out for now and the Democrats are presently in a position of unchecked power. The minute that they gained the advantage, they began proposing monstrous programs that could truly destroy the last vestiges of our republic. As a result, it is tempting for many to think that the Republicans can be “reformed” or “infiltrated.” Perhaps their decisive defeat has “scared them straight” and will force them to adhere to their supposed principles. One might say to oneself, “At least their rhetoric invokes some of our founding principles. If only we could redirect them while they are rudderless, perhaps we could use their political infrastructure to champion liberty.”

The Democrats have never tried to hide what they are about, least of all during this past election cycle. They sold us socialism and they are going to deliver. We may have to learn the hard way how evil and destructive that system is.

On the other hand, the Republicans have continually sold us free markets, smaller government, individual liberty, and then delivered…socialism. One could make a compelling argument that the misconception that capitalism causes the problems in our mixed economy while socialism provides the solutions is due in large part to people mistaking the economic policies of the Republican Party as “capitalism.” It is not. It is corporatism at best, and fascism at worst – if indeed there is a difference between the two. They combine that with at least as much support for the mammoth entitlement programs as the Democrats. Reagan said that FDR was the U.S. president that he admired most. That really says it all.

The prospect of the present Democratic regime left unchallenged should horrify every sane person with any desire at all to live his own life and have any control over his future. For over a century, our conditioned response in times like these has been to run from one gang of thieves to the other. The Republicans are now on deck, warming up with the familiar big government program of military deficit spending, “compassionate conservative” welfarism, and their hypocritical pandering to the “Chrisitan Coalition.” Four years of misery under the Democrats may be just enough to allow 51 percent of Americans to forget how bad the Bush years really were.

What if this time it were different? Instead of doing the same thing over again and expecting a different result, what if we let the Republicans die? They are gasping for air now, without a viable candidate for president and without a prayer of making up ground in the Congress. Their demise would be nothing unprecedented – political parties have come and gone in America for most of our history. The Federalists, the Whigs, the Democratic-Republicans – all of these put presidents into office but eventually went away. The demise of a political party in the United States is long overdue. Imagine if the libertarian wing of the Republican Party abandoned it, making it impossible for them to gain either the White House or a majority in Congress for the foreseeable future? That would spell the beginning of the end of the bipartisan tyranny that we have lived under for the past century.

There is no danger of an indefinite Democratic reign within our government. President Obama and his Democrats are not just going to fail. They are going to fail spectacularly. Hopefully that will be apparent by the next presidential election. If not, then certainly by 2014 or 2016 it will be obvious to the whole world that Obama’s brand of socialism not only should not continue, but cannot continue. Socialism is unsustainable and America has practiced it for far too long. Its inevitable self-destruction is at hand. The present Democratic platform merely steps on the gas pedal as the vehicle approaches the cliff. We are going over the edge sooner than most people think.

When that happens, there is going to be a political backlash against the Democrats that will make the last Republican defeat look like a split decision. What if at that time there was no Republican Party left to bring in more of the same? Imagine the coalition that might be formed to fill that void. Libertarian Republicans, disenfranchised Democrats who truly supported Obama’s anti-war, anti-torture, anti-spying head fake, and all of those independents that presently vote for the “lesser of two evils” could come together. Who knows who else might come out of the woodwork and vote if there truly were something different on the table?

Only when at least one of these criminal gangs is dismembered will there ever be any “change” in Washington. With the Republicans out of the way and the Democrats completely discredited, the chance for a true revolution in Washington couldn’t be better. You may say I’m a dreamer, but life without Republicans should at least be considered. With the taste of Bush and Cheney fresh on our tongues, what do we have to lose?

[1] Jefferson, Thomas Letter to Joseph Milligan April 6, 1816 (regarding Destutt de Tracy‘s Treatise on Political Economy) from The Writings of Thomas Jefferson, Vol. 14 edited by Albert Ellery Bergh and Andrew A. Lipscomb The Thomas Jefferson Memorial Association 1904 pg. 466

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

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Liberty Is An Absolute

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“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.”

– Thomas Jefferson (1816)[1]

Over the past week I’ve made two round trip flights by air, which means I’ve had the distinct pleasure of passing through airport security four times in seven days. It may be my imagination, but I believe our friendly neighborhood TSA officers are getting more authoritarian. While the officer at the podium still exhibits call center courtesy, those charged with seeing people negotiate the canvass rope maze and show up with their license and boarding pass ready have taken to shouting orders, as if managing a chain gang. This characterization isn’t far from the truth. However, I don’t really blame the officers personally that much. Their job is to get people to act in a completely unnatural manner, partially disrobing in a crowded room full of strangers just for starters. With the exception of frequent travelers, no one is ever going to do it right.

So, as the days go by and thousands of new travelers shuffle in and forget to have their licenses ready, forget to take their suntan lotion out of their carry on, try to go through the metal detector with their jackets on, and do a thousand other things that innocent people would never think twice about doing, the frustration must build with these foot soldiers in the War on Terror. “I just told you yesterday that you can’t bring liquids through security!” they must think, forgetting that the little old lady they are snarling at today is not the same little old lady from yesterday, or the day before, or the day before that…

However, my sympathy does not go so far as to let me forget what is happening each time I remove my shoes and render my person, papers, and effects insecure against unreasonable searches. Regardless of the chirpy greeting by the uniformed agent with the infrared flashlight or the bizarre signs attempting to characterize this shakedown as some type of customer service (Rather be molested in private? Just ask…), I always remember what is really going on: I am being investigated for a crime.

There is no probable cause, no writs, no warrants sworn by oath or affirmation. In fact, for the 90-year-old gentlemen in front of me who just put his cane through the x-ray machine and is now holding onto the glass wall as he tries to stumble through the metal detector without it, there is no scenario any reasonable person could imagine where he would or could harm anyone. Yet he is a suspect, too.

Most sane people who observe spectacles like this immediately conclude that law enforcement is going too far. Surely, there must be a better balance between liberty and security. But in thinking this they have already made an error. When it comes to liberty, there can be no balance. Liberty abides no compromise. Liberty is an absolute.

For generations, Americans have been conditioned to believe there are no absolutes. The truth is always the synthesis of the extremes and compromise is the supreme virtue. These ideas proceed from the “intellectual class” that dominates our education system – a breed that long ago abandoned reason for the Hegelian confusion that allowed them to embrace communism. It is from this quarter that the spurious arguments against liberty proceed. “Absolute liberty is anarchy” or “you must balance liberty with the needs of society” or Bill Clinton’s infamous “When personal freedom’s being abused, you have to move to limit it.” All of these arguments are groundless. Those who make them don’t know what liberty is.

The passage from Jefferson is not meant to suggest that it originated with him or our founders. They got it from Locke, who developed his ideas from ancient sources. As Locke said, men are naturally in “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.”[2] The natural right to liberty is absolute within a natural limit: the law of nature. What is this law? The law of nature is reason, which “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.”[3]

Thus, a state of absolute liberty “is not a state of license.”[4] People exercising their right to liberty do not have an unqualified right to do whatever they wish, regardless of the consequences. There is a clear and unambiguous limit to even what a person in an absolute state of liberty may do. He may do anything he wishes as long as he does not harm another in aggression, which he absolutely may not do.

Therefore, it is just more politicians talking gibberish when we hear arguments for more or less liberty or balancing liberty with security. Liberty does not conflict with any proper functions of government. When there is conflict between government and liberty, it is always government that’s wrong. Most importantly, as our founding document clearly states and reason demands, liberty is an unalienable right. It is for no one to limit, regulate, or balance with anything. The minute any limit on human action is put in place beyond “the bounds of the law of nature,” liberty has ceased to exist. One is either free or not free. You cannot enslave someone a little.

Once liberty is properly understood, there are a few conclusions one can draw about the purpose of government. First, government cannot at the same time secure the right to liberty and prevent crime. The minute government acts before a crime has been committed, it has destroyed liberty. Since they have committed no aggression, those restrained by a government crime prevention policy should be free to do whatever they choose, but are not.

To preserve liberty, government may only prosecute and punish crimes after they are committed, except in those rare instances when a law enforcement officer happens to be at the scene of a crime as it is taking place. Even military action is something our founders understood was only justified when a state of war already existed, which I wrote about in more detail in an article last year. That is why they granted Congress the power to declare war. To declare something presupposes it already exists.

An understandable first reaction to this idea is that in order to be free we must offer ourselves up as sitting ducks to criminals and foreign armies, only justified in responding after the damage has been done. This is refuted by the second conclusion one must draw from understanding liberty: that each individual has not only a right but a responsibility to defend himself. While this may sound frightening, it isn’t. This is really the only choice you have, whether you live in a free society or not. In all but the rarest of cases, the government simply is not there at the moment you are attacked. You must defend yourself the best that you can and try to survive. Only afterwards can the law come to your aid. This is why liberty and the right to bear arms are inseparable from one another.

In addition to destroying your liberty, crime prevention will always fail. A just law is one that prohibits aggression, like the law against murder. Once an aggressor has decided to violate this just and natural law, he is certainly not going to be dissuaded by some societal rule of conduct attempting to prevent him from having the opportunity to commit the real crime. He will simply break that law, too, as do so many murderers when they use illegal firearms to commit their crimes. Only the innocent are punished by attempts to prevent crime. They either follow the unjust law and surrender their liberty or are unjustly punished while committing no aggression.

This inevitable failure leads to the most ominous aspect of government’s misguided attempt at crime prevention: its equally inevitable expansion. With each new failure, the preventative measures must be increased in intensity to prevent further failure. The actions of all must be more and more limited until all opportunity to commit a crime is eliminated, which is impossible even under martial law. So, it is a steady march onward, with a police state the only logical end. Each new failure in the war on drugs or the war on terror takes us another step down that road.

Life in a state of liberty is not perfect. It makes no guarantees, other than the opportunity to pursue your happiness. You may prosper or you may be poor. You may be safe or you may come to harm. Chance will certainly have some effect on your life. We all deal with unexpected circumstances we cannot control, both good and bad. But liberty gives you the ability to act upon those things in life you can control, in the way you believe will be best for you and those you care about. Without liberty, you can control nothing and it is only a fool who believes any government can guarantee he will never be poor or never come to any harm. There is only one thing that life without liberty does guarantee: you will never truly be able to pursue your happiness. Robbed of that, why live at all?

[1] Jefferson, Thomas Letter to Francis Walker Gilmer June 7, 1816
[2] Locke, John Second Treatise of Government Hackett Publishing Company, Inc. Indianapolis, IN (1980) Pg. 8
[3] Locke, John Second Treatise of Government Hackett Publishing Company, Inc. Indianapolis, IN (1980) Pg. 9
[4] Ibid

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.

Life, Liberty, and Property Are Inseparable

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The reason why men enter into society, is the preservation of their property; and the end why they chuse and authorize a legislative, is, that there may be laws made, and rules set, as guards and fences to the properties of all the members of the society, to limit the power, and moderate the dominion, of every part and member of the society: for since it can never be supposed to be the will of the society, that the legislative should have a power to destroy that which every one designs to secure, by entering into society, and for which the people submitted themselves to legislators of their own making; whenever the legislators endeavour to take away, and destroy the property of the people, or to reduce them to slavery under arbitrary power, they put themselves into a state of war with the people, who are thereupon absolved from any farther obedience, and are left to the common refuge, which God hath provided for all men, against force and violence.

– John Locke[1]

Life, liberty, and property were the central, inalienable rights that formed the foundation of the great experiment in self government called the United States of America. The founders of our country never broke apart this sacred triumvirate, because each one of these rights is inextricably bound to the other. No one of these three can exist without the other. Moreover, when all three are secured, it is almost impossible for injustice to exist. Wherever one does find injustice, one invariably finds a violation of one of these three basic rights at its root.

While it is certainly true that today the rights to life and liberty are grossly violated in innumerable ways, they are nevertheless at least spoken of by our politicians. However hypocritically, they at least say that they value life and liberty, even as they pervert those sacred rights as justification for their wars and plunder.

Yet, they never even hypocritically evoke the right to property. No journalist ever challenges them based upon it, and honestly, most average Americans don’t talk about it either. As a principle, property has vanished from our consciousness. However, as all of the great philosophers throughout history have understood, there is no right to life or liberty without property. In fact, property is part and parcel of life itself.

What is property? It is that which an individual rightfully owns. Included among every human being’s property are his mind, his body, his conscience, and his actions. Every act of mind and body undeniably belongs to the actor, including that act which he engages in more than any other: his labor. To deny someone’s right to ownership of his mind, body, or labor is to make him a slave.

It is labor that allows each individual to sustain his existence and pursue his happiness. All consumption must be preceded by production. Production can only be achieved through human labor. In fact, there is no way for an individual to pursue any goal, whether material, intellectual, or spiritual, without exertion. Even the search for God requires an intellectual and spiritual effort – it cannot commence without labor.

For most of us, the bulk of our labor is devoted to providing the basic necessities of life for ourselves and our children. Some portion of it also provides the extras – the toys, the vacations, or the dining out that enriches our lives and adds to our happiness. A further portion is devoted to study, prayer, or just simple reflection – the quest for meaning and purpose in our lives. None of these things are possible without labor; our labor provides them all. Every item in every store is the product of someone’s labor. Every phone call you make is made possible by someone’s labor. Healthcare is someone’s labor, as is education.

However, the actual effort of mind and body is not the most precious aspect of labor. If human beings were immortal, we could afford to spend our labor and its fruits indiscriminately, consuming as much as we wished and providing anything to anyone who asked it of us. If a shoemaker were able to make shoes for the rest of eternity, then certainly there would not be a bare foot on the face of the earth. If the land developer were immortal, we would all live in a mansion.

However, we are not immortal, and it is this fact that places such a premium on our labor. Our labor is not just composed of the exertion of mind and body that is necessary to produce some good or service. That exertion happens over time, the hours or days of the laborer’s life. Every hour of our labor is an hour of our life from a limited supply which cannot be replenished. Whatever we have produced with our labor now contains that portion of our life which we have sacrificed to produce it.

So, when human beings trade their goods or services with one another, they are really trading pieces of their lives. If they have exchanged their labor for money with an employer or customer, that money now contains some part of their lives – a part that can never be reclaimed. That is why the same verb is used for both money and time – both are “spent” in exchange for some benefit. Both also represent each individual’s means of self determination.

Therefore, it is impossible to call a person free if he does not own his labor and all the product of his labor. It is only through his labor that he can provide better food, clothing and shelter for himself and his family, send his children to better schools, or realize the leisure time necessary to grow intellectually and spiritually. His labor is his means to determine the course of his life. Without self determination, there is no liberty.

Furthermore, to deny a human being ownership of his labor is also to deny his right to life itself. Since his labor is his means of sustaining his existence, once his right to ownership of his labor is denied he lives only at the arbitrary whim of whoever has claimed ownership of it. For such a person, life is now a privilege granted by someone else, rather than a right.

To the founders of the United States of America, all of this was self evident. When one reads the writings of Samuel and John Adams, Jefferson, Madison, or Locke, one finds one word that is used many times more often even than liberty: property. Recognizing property as nothing more than the individual’s labor and/or the product of his labor, the founders placed the protection of property as the very highest priority of government. In fact, they often stated that it was the only priority of government. While no high school history book or Hollywood biopic even hints at this fact, merely reading the words of the founders for oneself puts any debate on this point to rest.

Let us apply this concept to a contemporary issue. The unambiguous statements in the Declaration of Independence that all human beings have unalienable rights and that government’s sole purpose is to secure them should absolutely beg at least one timely question from most Americans today. Why did the founders not provide for the right to health care? Why did they not establish Medicare or Medicaid? Given a whole system of government whose purpose was to secure individual rights, why was this right so glaringly overlooked?

Of course, the answer to that question is that the founders recognized that health care was not a right. Health care, like every other good or service, is someone’s labor. No one but the laborer can have a right to it. To say that people have a right to health care is really to deny the health care provider a right to his own life, for it is impossible for both he and his patient to have a right to ownership of his labor. It is no less a crime to forcefully rob the health care provider’s fee from a third party (the taxpayer), for that simply denies the taxpayer’s right to his own life. In either case – whether the health care provider is forced to treat the patient for free or a third party is forced to pay the bill – someone’s labor, some part of someone’s life, is being stolen from him. This is the specific crime that government exists to defend its citizens against. By instead committing this crime, government becomes the most grotesque absurdity imaginable.

This is not to imply that we are at some sort of crossroads because President Obama and his pet Congress are closing in on expanding government healthcare. We came to that crossroads decades ago and quite undeniably took the wrong road. Until our philosophy changes and we recognize that retirement benefits, health care, research grants, corporate subsidies, investment in alternative energy – all money, goods, and services – are really pieces of someone’s life that cannot be seized from them without their consent (not even by majority vote), we will never restore the liberty that we have lost. Instead, we will continue to be the most pitiable form of slave, not bound to one master, but to everyone.

When a fellow human being offers to buy your product or hire you for your services, he has paid you the highest compliment imaginable. That person has offered a piece of his life to you in exchange for something that you have to offer, which is itself a piece of your own life. He is saying that you have value and that what you offer is worth hours or days of his life that he can never reclaim. This consensual interaction between free people is the most beautiful aspect of civil society and has been responsible for every improvement in the quality of human life that has ever occurred throughout history.

Conversely, when a fellow human being points a gun at you and demands that you provide him with some good or service, he commits the most egregious crime imaginable, short of pulling the trigger and ending your life at that moment. For in reality, he is really stealing a piece of your life that you can likewise never reclaim. He may be committing this crime because he wishes to increase his wealth without earning it, or he may desperately need whatever he takes from you, but it is the same crime nonetheless. This interaction is the most evil aspect of civil society and has been responsible for every war and human misery that has ever occurred throughout history.

Government can only be organized to fulfill one of two purposes: to protect your property or to take it from you – for whatever purpose government or its constituents deem fit. There is no third choice. To organize society around competing groups stealing from one another is to create a society whose citizens exist in a perpetual state of war with one another – for the use of force to obtain another’s property without his consent is the definition of the state of war.

Such a society cannot endure indefinitely. Ours has come to the beginning of its inevitable end. Countless empires throughout history – some much more preeminent in their worlds than we are in ours – have disintegrated for exactly the same reason. We can still choose justice over injustice but our philosophy must change. We must again institute a government that secures our rights, rather than annihilates them in the attempt to provide us with the property of others.

This will not happen by any act of government itself. Whether we elect a liberal or a conservative, we will never achieve different results by continually electing different people or parties but asking them to do the same thing – provide us with the property of others. It must be the people who change their philosophy and then demand that government assume its appropriate role according to that philosophy. Our government ultimately gives us what we ask for. For the past century, we have increasingly asked it to make us slaves, seduced by the siren’s song of comfort and security without responsibility. This can only be provided to each of us at another’s expense and can only be provided to others at ours. Once we reject the idea that we can claim a right to another human being’s life, the chains that bind us will be broken. Then, it will matter not who makes our laws.

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

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[1] Locke, John Second Treatise of Government Hackett Publishing Company, Inc. Indianapolis, IN (1980) Pg. 111

Politicians Talking Gibberish About Health Care

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Joint_blog_close_PS-0774 Every minute of every day, Americans are subjected to politicians and media pundits talking gibberish. There really is no other word for it, whether the particular subject is economics, foreign policy, or even climatology. However, the gibberish that is getting the most attention right now concerns health care “reform.” President Obama is leading the Democrats with the familiar socialist model that has failed in every industrialized nation in which it has been tried. The Republicans are answering with gibberish of their own. You have to especially admire the Republicans, because they are not only fomenting nonsense from a discredited, minority position, but are actually trying to suck up to voters by selling their version of government-run, loot-funded health care as a “free market solution.” Only the party of George W. Bush could be capable of gibberish like this.

To truly appreciate how bizarre the arguments are, let’s break down what our ruling class is really saying. Sometimes the music bed, the interruptions by the self-absorbed interviewer, or even the graphics leading into next segment can obscure the gibberishness of some of their assertions.

Let us start by examining the position of the Democrats. They assert that every human being has a right to health care, and that it is the government’s job to provide for those who cannot afford it. There are three key terms here: right, health care, and provide. Let’s define the first two.

Right: that which an individual is entitled to without the consent of or compensation to anyone else. For example, people have a right to life. That is, they do not need anyone’s permission, nor are they obligated to compensate anyone in order to live. It is appropriate for an individual to demand, rather than ask for, their right to life to be respected.

Health care: a service which primarily consists of the labor of health care providers. For example, a physician exerts his mind and body, utilizing his education and experience, to attempt to diagnose and treat a patient’s illness or injury. That physician’s labor is “health care.”

Let us now restate the argument made by the Democrats, using these definitions in place of the terms themselves.

“Every individual is entitled to the labor of health care providers without compensating them or obtaining their consent. It is appropriate for individuals to demand, rather than ask, that health care providers treat them for free.”

Gibberish.

To be fair, although the Democrats repeat their slogan about the “right to healthcare” ad infinitum, they do not actually propose that the government defend this “right” directly. Instead, they use their own peculiar definition of the third term previously cited, “provide.” Americans continue to be bewildered by this parlor trick, whether because they are easily confused or because it is more convenient to be fooled than not. In any case, “provide” to the government means that they will employ the method described by William Graham Sumner where A & B get together to pass a law requiring C to do something for X. So as not to miss the opportunity to describe this plainly, this really means that they are going to use the brute force of government to force some people to pay for health care for others. That is all it is, when you peel away the doubletalk, jingoism, and spin.

Moreover, it is not just your property that the government will take in order to run its program. It will also require another huge portion of your liberty as well. In a recent speech about his health care reform plans, President Obama suggested that “we” must begin encouraging healthier lifestyles, including getting our children away from computer games and back to playing outside. “We” means “the government.” Of course, when it is the government’s responsibility to pay for the health care of other people, the government now claims a right on behalf of taxpayers to see that those people keep themselves as healthy as they can in order to limit the cost. There are already government-imposed exercise programs in Japan. Americans should be aware that the same rules will apply here. One can almost hear the government “instructress” from Orwell’s 1984 screaming from the telescreen.

“Smith W.! Yes, you! Bend lower, please! You can do better than that. You’re not trying. Lower, please! That’s better, comrade.”[1]

Political gibberish often conceals rather horrifying ideas. Thankfully, we have an opposition party that is opposing these heinous proposals, correct? As the people from Hertz say, “Not exactly.”

It is true that Republicans oppose a government-run health care plan. As reported in the Wall Street Journal, the Republican summary of their “Patient’s Choice Act” argues that “ The government would run a health plan “with the compassion of the IRS, the efficiency of the post office, and the incompetence of Katrina.”[2] All true, but of course the so-called party of individual liberty and free markets fails to argue the main point: the government – we the people – do not have the right to forcibly take money from one person and give it to another, not even for the purposes of paying for their health care. Nowhere in any report made public nor in any interview with a spokesperson for this “opposition party” will you hear this argument. There is a good reason for that.

Of course, the Republicans will argue that their plan works through the tax system and actually let’s families “keep more of their own money” to spend on health care, but a careful read of the WSJ article reveals that the same redistribution scheme is hidden within the stale “free market” rhetoric. First, the Republican plan would eliminate the tax exemption for employers when they provide health insurance benefits to their employees. This amounts to a tax increase on employers, whether they continue to provide the benefits or whether they eliminate them and merely pay taxes on the extra net income. What would the government do with this new revenue?

“Instead, it would give an annual tax credit of $2,300 to each individual and $5,700 to each family that they could use to offset the cost of their health insurance. Low-income families would get extra money to buy into private insurance plans.” [emphasis added]

So, in an effort to appear to be protecting the property rights of their more affluent base but at the same time buy the votes of those who cannot afford health care, the Republicans will simply tax those whom they think they can get away with taxing and call their own version of wealth redistribution a “tax cut,” much like George Bush’s “tax refunds” of the past decade. Of course, there is only one word for the suggestion that you can “cut” or “refund” taxes for people who are not paying taxes.

Gibberish.

As usual, the American public is served up a carefully framed debate that attempts to appear to have two sides but doesn’t. In either case, we are getting “reform” of the health care system in the only way that any government can “provide” anything. They are going to forcibly take away the property (taxes) of one group of people and use it to provide property (health care) to another group. Lest anyone mistakes this brutal practice as “the wrong means to a compassionate end,” let us remember the only reason that politicians from either party suggest this: to buy the votes of those who believe that they will benefit from it. Since there are more who would receive benefits in the voting base of the Democratic Party, they are more open about what they are really doing. Since there are more of those who will be forced to pay in the base of the Republican Party, they try to spin their redistribution scheme as a “free market solution.” However, it is dressed up, it amounts to one thing; stealing.

In addition to ignoring the fundamental violation of rights that is part and parcel of any government provided service, both the Republicans and Democrats seem completely unaware of the root cause of the problem: health care is only so expensive because government already provides so much of it. This is the other elephant sitting in the corner whenever politicians from either party start talking about health care reform.

Last year, total health care spending in the United States amounted to roughly $2.4 trillion dollars. Medicare and Medicaid alone accounted for over $800 billion, or 33% of that. Add the Veteran’s Administration and other smaller government health care programs, and government is directly providing almost half of all health care delivered in this country. What does this have to do with the price? Any first-year economics student can tell you.

Price is determined by the intersection of supply and demand. Demand has two components: the desire to buy a good or service and the ability to buy that good or service. Let us assume that the desire for health care services is unlimited, as it is for many other goods or services. In that case, the only factor that can limit demand for health care services is ability to pay. This is the factor that most influences the price of every other good or service provided in the marketplace, including food, clothing, and shelter, which are even more vital to human life than health care. It is the finite amount of money that the buyers have to spend which keeps the price down and makes most goods affordable to those on limited budgets.

However, when government makes something an entitlement, demand suddenly becomes unlimited. Since the government now must provide the benefit and they have the option of taxing or printing what money they need to provide it, there is no longer anything holding down the price. This is the reason that we have seen health care prices skyrocket in recent decades. They will continue to rise until all resources are consumed trying to provide them.

State and local governments have already been experiencing this for years because of the exploding cost of their shares of the Medicaid programs (half of Medicaid benefits are paid by the states, some of which require their local governments to pay a percentage as well). They cannot print their own money, so they have instead cut their police forces and other legitimate functions of government in order to divert money to the insatiable Medicaid beast. In one local county in upstate New York, 100% of the property taxes collected in that county and $40 million dollars of sales tax revenue – the county’s only other revenue source – went to pay that county’s share of the Medicaid bill for their recipients. Now, it has been reported that the majority of the TARP funds that were supposed to go to “shovel-ready infrastructure projects” are instead being earmarked for “existing state social programs.” An audit of these payments would undoubtedly reveal that the bulk will go to Medicaid.

Economic laws are like the forces of nature. They can be held off, as a levy holds off a flood, but they will eventually overwhelm any attempt to violate them. The most fundamental economic law is this: you cannot consume more than you produce without taking the difference from someone else. Government produces nothing. Therefore, any health care benefit that government provides must be funded with money taken by force from someone else. There is no political theory, mathematical equation, or black magic incantation that can change this.

However, even if we are able to put aside the moral repugnancy of this practice, we cannot do so forever. Once voluntary exchange is abolished, market forces are suspended and the price of providing health care will rise until the government is no longer able even to steal enough to pay for it. That day was only a few decades away for the existing government health care programs before the economic crisis we find ourselves in now (which was similarly caused by government for all of the same reasons). If government attempts to provide everyone with health care, the end will come much sooner.

This sheds light on a fundamental misconception that underlies all of the societal problems that American society faces today: the belief that there is a conflict between individual rights and the “needs of society.” This conflict doesn’t exist. Protecting the rights of every individual serves the needs of society. Violating those rights, for whatever purpose, destroys society. In fact, it is by violating the individual rights of its constituents that government causes nearly every societal problem we face. The high price of health care is just one example.

There is only one moral and practical answer to the high cost of health care: we must get government out of the health care business entirely. That includes rejecting new programs proposed by either major party and figuring out a humane way to get our children out of the existing entitlement system without cutting off those presently dependent upon the benefits. The only lucid argument I’ve heard so far has been put forth by former presidential candidate, Congressman Ron Paul. He suggests that we dismantle our $1 trillion per year overseas military empire and use that money to pay Medicare and Social Security benefits while our children are allowed to enter the workforce without enrolling in the system themselves.

What do you know? A politician moved his lips and something besides gibberish came out.

[1] Orwell, George 1984 Part I Ch. 3

[2] Adamy, Janet “Republicans Offer Health-Care Plan” The Wall Street Journal May 21, 2009

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

How Do We Defeat Racism and Discrimination Once and For All?

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We haven’t heard a lot lately about discrimination in the job market. Perhaps the economic crisis has pushed it into the background. “Progressives” may be too busy promoting their economic gibberish (Keynesianism) to fall back on this tried and true “divide and conquer” issue. However, as surely as night follows day, there will come a time when our friends in Congress will again need a different reason to try to tell people how to conduct their business, and nothing garners more support than railing against discrimination. When that shoe finally drops, I have a suggestion. Let’s not go back down the road of affirmative action, quotas, or any other idiotic idea that our retro-liberal Congress is likely to resurrect. There is only one remedy for discrimination in the workplace: free market capitalism.

I can speak from personal experience that this is true. I have interviewed thousands of people for jobs over the course of my life. The candidates were black, white, Hispanic, male, female, young, and old. How did I decide who to hire? I chose the same way every time. I picked the candidate that I believed would make me the most money. When I chose a black candidate or a woman, I did not do so because I wanted to promote diversity or equality. I did not do it out of altruism or for women’s rights. When I made those decisions, I had one thing and one thing only on my mind – profit.

Sometimes, I chose a white male over a black female and didn’t give it a moment’s thought. Sometimes, exactly the opposite was true. Nonetheless, in each case I chose based purely on my own self-interest (or that of my employers). I did not hire people to help them and they did not come to work for me to further some missionary cause (or even because of my sparkling personality, believe it or not). They came to work for me because the opportunity I offered them would benefit them personally more than any other available to them at the time.

The people that have worked for me in the past and who work for me now are my equals. They have skills and services to sell and I am their customer. We deal with one another in the same way that people deal with one another when buying or selling a house. I am looking to get the highest quality work that I can for the best price. They demand the highest price that they can get for their services. They choose to sell those services to me because I am willing to meet their price. If they call me “Mr.” or “Sir,” it is not out of subservience any more than the owner of an exclusive restaurant is subservient when he calls you “Sir” or “Madam” while you are paying him $150 per plate. When someone buys your product, you show gratitude for the high compliment they have paid you. They have chosen what you have to offer over all other alternatives.

Were I to make hiring decisions based upon anything other than the profit motive –based upon racial discrimination for example – the market would punish me. It would reward my competitor with a more talented employee and an advantage in the market. If I were to do this habitually, my competitors would soon have more talented employees throughout their organizations and I would be forced out of business. Anyone who has run a business knows that one cannot afford to discriminate based upon anything but profit. The market forces me to ignore race, creed, or sex for my economic survival. Only politicians remind me that I should consider demographics.

The plain fact that no politician in history has ever understood is that the market requires no altruism for everyone to benefit. Competition for employees creates higher wages and better benefits. If competition for jobs drives wages down, then the cost of production drops with wages and real wages rise despite the nominal decrease. There is no need to “balance” profit and social justice. The profit motive creates social justice. People exchanging their goods or services with one another by mutual, voluntary consent is social justice. It is only coercion that is unjust.

When people are left to themselves to deal with one another by mutual, voluntary consent, the profit motive will trump racism and discrimination every time. Show me a firm that passes on superior talent because of race or sex and I will show you a firm that is not going to be around for very long. Show me an entire industry that has put the best talent on the sidelines due to race, sex, or age, and I will be open for business in that industry the very next day. Within six months, I will be that industry’s next billionaire. The company with the most talented employees wins – every time.

This relationship between employer and employee – between buyer and seller of services – is one based upon all parties acting in their own self interest. My employees do not need my help or my altruism – they need my business, just as I need the business of my customers. They strive to perform at the absolute highest level that they can so that they can demand even more money from me for those services. I happily pay it when their improved performance increases my sales or my profits. I offer less when I can get the same performance at a lower price.

The beneficiaries of all of this are our customers. I am constantly trying to lower my costs and raise the quality of my products. I do this to gain market share and increase profits. My employees continually improve their service to our customers so that they can make more money for themselves. Higher performance from my employees is what raises the quality of my products.

Neither I nor my employees bother to stop and take note of the color of anyone’s skin or whether they are a man or a woman. We cannot afford to and, quite frankly, we just don’t have the time. This is the way the real world works. Just ask anyone who has to make a living in it. Only politicians and the people they are able to confuse see it any differently.

So, the next time your politicians bring up discrimination in the workplace, try to explain all of this to them. Tell them to put away their pamphlets and spend some time with you – working for a living. Six months spent actually earning a living rather than living off taxes collected at gunpoint would make capitalists of them all. You may say I’m a dreamer, but just imagine the freedom and prosperity that would result.

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

>A Nation of Hyenas

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>One never knows where one will find profound metaphors for human existence and society, and I certainly wasn’t looking for one while channel surfing last weekend after a morning of yard and house work. However, I had the good fortune to flip on Mutual of Omaha’s Wild Kingdom and observe a perfect analogy to what our once-great society has become.

That episode was about the cheetah, the fastest land animal on earth. The cheetah is a beautiful creature. As the show pointed out, it is literally built for speed at the expense of brute strength, of which it has relatively little compared to other predators in its habitat. While unfortunate for the antelope, it was nonetheless quite inspiring to watch a high-speed pursuit of that animal by the cheetah, exhibiting gracefulness which rose to the level of poetry. Having made her kill, the cheetah brought the antelope back to feed herself and her young.

However, the story was not to end so happily for this family. The smell of blood in the air had attracted a pack of one of the cheetah’s competitors, the hyena. While the aforementioned lack of brute strength would probably not allow the cheetah to fight off even one hyena, that fact was irrelevant in that it was ten or twelve hyenas which now threatened her. Why? They were after the antelope – the fruits of the cheetah’s labor – and were going to use their greater numbers to take it from her by force. They weren’t intent upon killing the cheetah or her young, but were willing to do so, if necessary, to obtain her property without her consent. The cheetah weighed the risks to herself and her cubs and retreated, left to try to make up the loss elsewhere to provide for her family.

A few nights later I broke an embargo of sorts and actually watched a “news” program. I tuned in Cavuto on Fox News[1], which is one of the few shows where actual journalism seems to occur occasionally, despite its network affiliation with right wing propagandists Hannity and O’Reilly.

Cavuto’s regular panel of guests is arguably the most libertarian one can find anywhere in the “mainstream media,” regularly featuring Jonathan Hoenig, Peter Schiff, and even Yaron Brook, President of the Ayn Rand Institute.

That night, the auto company bailouts were again on the docket, and familiar arguments were made by Hoenig and the other panelists about why the results would be worse if the government took control of the auto industry. Cavuto’s token panelist from the left[2] (a female panelist whose identity I have been unable to verify), made the now also-familiar argument that “we bailed out Wall Street and now Main Street is demanding that the government do something for them.” Most of the panelists answered correctly that they were against the Wall Street bailouts as well, a point that was left unemphasized due to several people talking at once. However, the real chance for a meaningful debate still lay ahead. The boisterous Cody Willard set the stage when he said, “if you want to help them, send them your money, but don’t hold a gun to my head.”

The reply from the panelist arguing the liberal perspective was monumental:

“That’s why we have a democratically-elected government and the people want the government to do something.”

When she gave that answer, it was time to stop the quips, the witticisms, and even delay going to a commercial, if necessary. Despite the fact that the host trivialized the exchange by talking over part of both her and Willard’s comments, the exchange between the two was enormous beyond what most viewers probably realized.

There are many who would probably consider Willard’s statement a half-facetious exaggeration for effect. It was not. It is the horrifying reality of what any government bailout or other redistribution of wealth represents. We as Americans have forgotten that all government action is exercised under exactly these circumstances: at gunpoint. That is the purpose of government, to exercise brute force on behalf of its constituents when it becomes necessary to do so. That is why our government was originally so limited. The founders of our nation believed that brute force was only justified in self defense. Therefore, government action was limited to protecting its constituents from harm by other people, whether it was harm by a fellow citizen or a foreign army.

However, when the government undertakes to “do something” about a failed bank or auto company, it really means that We the People have decided to apply brute force to the problem, even though it is not a matter of self defense. Willard was completely accurate: a government bailout of a distressed auto company, whether it saves jobs or not, is really the people using their collective means of brute force (the government) to take property from one group of people and give it to another. This exchange is done at gunpoint – there is no consent by the party being taken from. Had the managers or the employees of the auto company armed themselves and sought to raise the funds themselves by stealing them at gunpoint from the people directly, they would have been arrested and prosecuted for armed robbery. However, Willard’s opponent in the debate argues that there is some ethical difference because a “democratically-elected government” acts as the armed robber in their stead. What can the difference possibly be?

This is the fundamental question that we as a society must answer if we are ever going to reverse the downward spiral we find ourselves in. Do we believe that individuals have inalienable rights or do we believe that a majority vote can take those rights away?

If one takes an objective look at our society as it has evolved over the past century, one must conclude that we have already answered it. Stripped of euphemism, almost every government institution in our society amounts to us using the brute force of government to violate the inalienable rights of our neighbors. Let us consider just a few examples.

Government involvement in healthcare has driven the price so high (through the artificial demand it creates) that the poor and elderly cannot afford it. Our answer is to apply the brute force of government to steal the money at gunpoint from one group of people to provide healthcare to another. In a truly bizarre development, that practice has now resulted in such high prices that almost no one can afford healthcare. So, we will now steal from everyone to provide healthcare for everyone. Lewis Carroll couldn’t have dreamed of anything quite so mad.

In order to be able to stop working but still enjoy the quality of life we feel we deserve after a certain age, we use the brute force of government to steal from those who are still productive to support those who are not. We could save for our retirement, but we choose instead to steal. We call this “Social Security.” It should be called, “Anti-Social Insecurity.”

Similarly, in order to afford to buy a house without saving the necessary down payment and establishing superior credit, we use the brute force of government to compel our neighbors to guarantee our mortgage loans with their money. When the inevitable tsunami of defaults occurred last summer, some objected to the government stealing the money to cover the losses of the banks. In truth, the money had been stolen decades ago, the minute that Fannie Mae was established.

Rather than saving the money for college tuition or allowing our children to work their way through college if we cannot afford to pay the tuition in full, we use the brute force of government to compel our neighbors at gunpoint to guarantee our student loans with their money. As with healthcare, this evil practice has driven the price of college tuition so high that not only are students going into long-term debt just to pay for their education, but their parents are taking out decades-long loans as well.

Should fortune not smile upon us or should we not develop marketable skills with which to obtain employment, we use the brute force of government to steal the money needed to sustain us from our fellow citizens. We call this the “social safety net,” but it also should be recognized as “anti-social.”

If we believe that we have a scientific theory that could lead to a new discovery that will benefit society (and enrich ourselves), we do not seek out capital to research it from those who can provide it voluntarily. We use the brute force of government to steal the money from our neighbors with the flimsy justification that “federal funding of research” will “benefit all of society” with a new medicine or a new technology.

This is by no means the length and breadth of the ways in which we violate each other’s rights on a daily basis. Every program funded by government, besides those that have the express purpose of defending our rights (police forces, the courts, the military), amount to the same thing: using our collective means of brute force to extract money from one group and give it to another.

What should be obvious is that it is not one evil group (the poor, the elderly, the corporations, Wall Street, etc.) that engages in this morally repugnant practice. Politicians will pick their scapegoats to play to their own power bases. The Republicans will blame the poor to get votes and campaign contributions from their base, the corporations and the rich. The Democrats will blame the rich and the corporations to get votes and campaign contributions from their base, the unions, average Americans, and the poor (the poor have only their votes to give and get back only the most miserable portion of the loot).

However, we must wake up to the fact that we all have a hand in this. The steady growth of one redistribution scheme after another has made it virtually impossible to function in our society without in some way participating in the looting of our fellow citizens, while we are at the same time looted ourselves. We have established all of these redistribution schemes through the democratic process. This past century has not been a progressive century. It has been a regressive one. We have regressed from a society of free people that respect each other’s inalienable rights to a society that is based upon competing groups stealing from one another through the brute force of government. We use only the support of greater numbers (majority vote) to justify the institution of each new crime. We have regressed to the brutal law of the jungle. We have become a nation of hyenas.

This has all followed logically from one fundamental break we made from our founding principles. We have elevated democracy to an ideal, at the expense of the individual rights that our government – and any government of free people – was constructed to protect. We have convinced ourselves that anything a majority vote sanctions is just, even if it violates those rights. Once we accepted that premise, the seeds of our destruction were sown.

As one might expect, this is something that the founders of our nation warned us specifically against. When one takes an objective look at our founding documents, the first thing that should jump off the pages is how little democracy there really was in our original government. Only the House of Representatives was chosen directly by the people, with the president and senate chosen indirectly by electors or the state legislatures, respectively.

More importantly, it is vital to realize what all of the limits, checks and balances, and even the Bill of Rights were intended to protect us from. They were intended to protect us from democracy.

One does not need to engage in interpretation to support this claim. The founders said it explicitly on more occasions that one could count. Here are just a few examples:

“Democracy is the most vile form of government … democracies have ever been spectacles of turbulence and contention: have ever been found incompatible with personal security or the rights of property: and have in general been as short in their lives as they have been violent in their deaths,”[3]

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

“There is no maxim, in my opinion, which is more liable to be misapplied, and which, therefore, more needs elucidation, than the current one, that the interest of the majority is the political standard of right and wrong.”[5]

These vitriolic attacks upon democracy and majority vote from the founders of our nation would probably surprise most Americans. Nevertheless, there they are. The founders understood that democracy was a means, not an end. Their end was protection of the inalienable rights of each individual. Democracy was only good and just insofar as it helped to defend those rights. Furthermore, it must be prevented from being used to violate them. Again, the founders said this explicitly.

“In short, it is the greatest absurdity to suppose it in the power of one, or any number of men, at the entering into society, to renounce their essential natural rights, or the means of preserving those rights; when the grand end of civil government, from the very nature of its institution, is for the support, protection, and defence of those very rights; the principal of which, as is before observed, are Life, Liberty, and Property. If men, through fear, fraud, or mistake, should in terms renounce or give up any essential natural right, the eternal law of reason and the grand end of society would absolutely vacate such renunciation. The right to freedom being the gift of God Almighty, it is not in the power of man to alienate this gift and voluntarily become a slave.”[6]

This passage elucidates another conclusion that proceeds from natural law. Not only is each individual prohibited from using the majority vote to violate the rights of his fellow citizens, he is prohibited from using that vote even to relinquish his own rights. That is because rights are not granted by society. They are inherent in man’s nature itself. They are non-transferable. They cannot be taken or even given away. That is the meaning of “inalienable.”

It was at the turn of the last century that we made the fundamental change in our philosophy. Since that time, we have held democracy up as our ideal at the expense of our natural rights. We did this primarily to justify the routine violation of one specific right: property. It is no accident that as democracy has become more and more extolled as an ideal, property has become more and more reviled. We have even had professors in American universities teach their students that “property is theft.”

Of course, like the hyena, we really do not care what our fellow citizens say or believe. We will not expend much energy in violating their rights to free speech or freedom of religion, because in the end we have nothing to gain from violating those rights. However, by violating their rights to the fruits of their labor, we do gain enormously at their expense. This is the true danger of democracy. We must face up to this plain fact and stop talking about everything but property. As Adams also said, “Now what liberty can there be where property is taken away without consent?”

We are at a crossroads. The system we have built upon the brutal law of the jungle is about to collapse. We are presently suggesting even more brute force (government) to try to preserve it. If we continue on this course, the relationship between predator and prey on the African savannah will seem civilized compared to the state of our society. Unfettered democracy – not unfettered capitalism – has brought us here. We must choose respect for our inalienable rights over the loot that unfettered democracy can provide us with. If not, we must admit to ourselves that the way in which we live and deal with one another is no different from that of the savage beasts of the jungle. A return to our founding principles is our only hope.

Are we not men?

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

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[1] “Cavuto” Fox Business News May 27, 2009.
[2] While hard-core progressives might call her a “Fox News Liberal” for even appearing on the hated network, her role on this telecast was without question to argue the liberal side of the issue.
[3] Madison, James Federalist #10
[4] Jefferson, Thomas To Dupont de Nemours Washington ed. vi, 591 1816
[5] Madison, James Letter to James Monroe October 5th, 1786
[6] Samuel Adams The Rights of the Colonists (1772) The Report of the Committee of Correspondence to the Boston Town Meeting, Nov. 20, 1772 Old South Leaflets no. 173 (Boston: Directors of the Old South Work, 1906) 7: pg. 419.

The Myth of the Laissez Faire President

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It is generally accepted that one must wait several decades before looking back at an event or an era with sufficient “historical perspective.” Only from that vantage point can the significance and long-term effects of any piece of history be objectively observed, quantified, and analyzed. However, there is a dilemma inherent in this long-standing tradition. It is that there are always interested parties who wish to characterize significant events or eras in history in a way that suits their own agenda. As a result, by the time sufficient time has passed to satisfy the need for “historical perspective,” these interested parties have created an official story regarding the events in question and have had time to convince the majority of people that this official story is the truth. By the time a generation has passed, the official story has become both accepted history for academia and “conventional wisdom” for average citizens. Regardless of facts, reason, or any perspective whatsoever, the official story now is the truth.

Such has been the case countless time throughout American history. It is universally accepted that America’s Civil War started over slavery, and credits Abraham Lincoln with “freeing the slaves.” History and conventional also wisdom tells us that the quality of life of the working class in America declined during the industrial revolution, and credits the “progressive movement” for instituting needed reforms that saved the working class from capitalism. Most relevant to our situation in America today, history blames the Great Depression of the 1930’s on Herbert Hoover’s “laissez faire capitalism” and “unregulated free markets,” and credits FDR’s New Deal with ending the Depression and restoring prosperity.

When presented in the textbooks of high school history or college survey courses, there is a certain logic and reasonableness to these versions of historical events that makes them very easy to understand and accept. There is only one problem: none of them are true.

Americans are already familiar with the official story of our present crisis. Too much laissez faire capitalism” has resulted in an unprecedented crisis caused by predatory lenders, irresponsible borrowers, speculators, and other market participants acting in an environment with too little regulation. Without oversight, “unregulated free markets” naturally resulted in market players choosing short term profits over long-term prudence. This process was fueled during the past decade by George W. Bush’s “laissez faire policies.”

There is only one problem with this story – none of it is true, either. None of the problems we face today were caused by unregulated free markets and the policies of George W. Bush were in no way “laissez faire.” This is much more than an academic argument. The premise that unregulated capitalism is to blame for our present economic crisis is the basis for every action that our government is taking right now. If that premise is incorrect, then the results of action taken based upon it could be disastrous.

It is probably a good idea at this point to define some terms. Assuming that “laissez faire capitalism” and “free markets” mean the same thing, what I mean when I use those terms is this: a market economy where all exchanges of property are made with the mutual, voluntary consent of all parties to those transactions. While government’s role is limited in such a system, it is nevertheless crucial: to ensure that all transactions are made with the mutual, voluntary consent of all parties. To put it most succinctly, government’s role in a free market is to protect the property rights of each individual.

Is this what George W. Bush did or at least attempted to do? Let us examine the Bush economic policies and see for ourselves.

Bush campaigned on and did follow through upon a promise to cut taxes. He did this by reducing the income tax on the highest income earners and by sending each American family a “refund” of several hundred dollars. One might be tempted to argue that this was a move in the direction of free markets, as the returned money represented reductions of a government that had grown far beyond its role of defending life, liberty, and property. Thus, the tax money collected for these illegitimate functions was a violation of the property rights government was supposed to protect and the tax cuts were a partial remedy for those violations. This is what any self-respecting Republican would have you believe.

There is only one problem: there were no reductions in government. In fact, Bush greatly increased the size of the government with military and new entitlement spending. As a result, he ran huge deficits and doubled the national debt. Looked at objectively, there was a tenuous relationship at best between the money taxpayers had previously paid in taxes and the checks sent out by the government after all of that tax money was already spent. Furthermore, millions of Americans who hadn’t even paid taxes received “refund” checks anyway. Seen for what it was, this “tax refund” was merely a ploy to buy votes with other people’s money dressed up in Republican rhetoric, as well as a way to perpetuate debt-fueled consumerism for the benefit of President Bush’s friends in corporate America. Handing out money to people to whom it doesn’t belong has nothing to do with free markets, whether that money is borrowed from other nations or printed out of thin air. It represents complete distortion of the markets by government, along with a fundamental violation of the property rights of present and future generations.

Amidst this confusion we seem to have forgotten one major contributor to the aforementioned deficits: the Medicare drug plan. The Medicare drug plan was the Bush administration’s program from start to finish, and it was rammed through the legislature despite its dubious administrative plan and complete lack of funding. While it was rightly criticized for both of these faults, no media outlet seems to have recognized its complete antagonism toward free markets. In addition to violating property rights by forcing one group of individuals to pay for the healthcare services of others, Medicare and other government health care programs completely distort the health care market, creating artificial demand that inflates prices and suspends market forces. Here we have another major component of President Bush’s policy that is the complete antithesis of laissez faire capitalism.

The mass illusion about this president’s policies doesn’t stop there. The American public also seems to think that major deregulation occurred under President Bush, but actually the exact opposite is true. Even the Gramm-Leach-Bliley Act (repealing the Glass-Steagall Act), often mistakenly blamed for the massive expansion of derivatives that helped fuel the housing bubble, was actually passed when President Clinton was still in office. Bush’s only significant effect on the regulatory structure was to increase regulation, not decrease it.

Due to the political fallout from the accounting scandals during the early years of Bush’s presidency, especially the Enron scandal, Bush championed new, completely unnecessary, and profoundly destructive regulations under the Sarbanes-Oxley act. Despite the fact that the accounting scandals were clear cases of fraud, which was already illegal and which was prosecuted without a single new regulation, President Bush had a political need to show that he was “doing something” about corporate crime.

So, again in complete opposition to “free markets,” Bush signed Sarbanes-Oxley into law, saying as he did so that the bill represented “the most far-reaching reforms of American business practices since the time of Franklin Delano Roosevelt.”[1] Invoking FDR should have been enough on its own to erase any perception of Bush as a champion of free markets, but the hated “laissez faire” moniker seems to be a tough one to shake. As we now know, the Sarbanes-Oxley Act has been terribly destructive to American markets and has contributed to a migration of new investment away from America and to more business-friendly countries. Chalk up another victory for Bush against free markets.

Finally, there is Bush’s role in the housing bubble, the straw that broke the proverbial camel’s back regarding America’s borrow and spend economy of the past several decades. Here it should be noted that the lion’s share of the blame for this debacle should go to the Federal Reserve System, which kept interest rates artificially low and expanded money and credit to counter what would have been two recessions in the late 1990’s and early 2000’s. Remember, the private Federal Reserve System does not answer to any branch of the federal government. One could certainly argue that both Clinton and Bush merely happened to be in office while the Federal Reserve blew up two massive bubbles during their presidencies (the NASDAQ bubble and the housing bubble).

However, it was not just low interest rates or the expansion of money and credit that caused the housing bubble to inflate. There was also the role of government-sponsored enterprises Fannie Mae and Freddie Mac, which guaranteed mortgages that would not have been written in a free market. Starting with Clinton and continuing with Bush, the executive branch played cheerleader to the “ownership” society whereby every American was entitled to own their own home, whether they could afford the mortgage that went with it or not.

The mortgage debacle is often cited as an example of the “unregulated free market” producing negative results. Since both the “predatory lenders” and the “irresponsible borrowers” were acting voluntarily, the millions of subsequent defaults are characterized as the result of too little regulation on the market, allowing these freely-acting participants to eschew prudence for short-term profits. However, this analysis omits one very important fact: there were not two parties to most of these mortgage transactions, but three.

The forgotten third party was, of course, the taxpayer. It was the taxpayers’ money that was put up as collateral for the loans guaranteed by Fannie Mae and Freddie Mac, and the taxpayer was not acting freely. The taxpayer was forced by government to back these loans without his consent and against his best interests. Had the government not committed this crime against property rights to serve its goal of an “ownership society,” none of the defaulting loans would have been made.

In a truly free market, the desire for profit is balanced by the presence of risk. When one is lending one’s own money, the possibility that the borrower will default forces the lender to adhere to high lending standards to avoid making a bad loan. This is not done out of some civic duty or professional integrity (not that many lenders don’t possess both of these qualities), but out of recognized necessity for economic survival. The balance between desire for profit and risk is a naturally occurring market force when all participants are acting voluntarily in their rational self interest. However, by allowing lenders and borrowers to use other people’s money as collateral, this natural market force was suspended. To go on to call the resulting disaster the result of “unregulated free markets” is nonsense in the first degree.

Ironically, Clinton and Bush each pursued the exact same policy regarding the housing market for very different reasons. Clinton pressured Fannie Mae to take more and more risk in order to play to his base: low-income Americans who would not qualify for a mortgage in a truly free market. Bush went right on encouraging the process in order to appease his base: Wall Street investment houses that were making a killing securitizing mortgages. Regardless of the motivation, what is important to realize is that this policy is completely antithetical to the concept of free markets or laissez faire capitalism.

Of course, once the crisis began, most people recognize that nothing President Bush did could be characterized as “laissez faire.” Bush himself admitted that he was abandoning free market principles because “the market is not functioning properly,” a bizarre statement from one who supposedly believes in free markets in the first place. His massive intervention into the economy and egregious redistribution of wealth are characterized by the media as a departure from his previous “laissez faire approach.” Yet, anyone can see that this “laissez faire approach” was complete fiction. So why do all but a few contrarians keep saying it anyway?
There is an answer to that question. Characterizing Bush’s policies as “laissez faire” does serve a very useful purpose for politicians. It provides them with justification to loot more property and seize more power. The all-out war on free enterprise presently being waged by President Obama and his cohorts in Congress would not be possible if most Americans did not believe the official story that Bush’s presidency was an era of “laissez faire capitalism” or “unregulated free markets” and that these policies caused the economic crisis. Only the continued willingness by the majority of Americans to swallow this economic gibberish allows the destruction of our liberty to march forward.

To my fellow Americans, I say this: No politician (save perhaps one) is going to come forward and tell you the truth. Most of them don’t know the truth, and those that do have figured out that this official nonsense serves their own ambitions, just as saying that the world was flat once served the ambitions of medieval rulers. It is up to you to rub your eyes and look at the world as it really is. Two plus two does not equal five and you know that. Similarly, people voluntarily exchanging their own goods and services with one another can never cause anyone harm and deep down you must know that, too. It is time to reject the idiotic history that is being written about our present difficulties and demand that the evil incursions into our liberty cease immediately. You have enormous power when you know what to demand. It all starts with recognizing the obvious despite the well-funded efforts of those who wish to deceive you. As the good book saith, the truth shall set you free.[2]

[1] Bumiller, Elisabeth (2002-07-31). “Bush Signs Bill Aimed at Fraud in Corporations“. The New York Times
[2] John 8:32