A Libertarian
Theory of Government, or Why We Don't Need the State
Written as a letter to Greg
Claus, aide to U.S. Representative Brad Schneider (D, IL-10)
(the former opponent of the
author, Joseph W. Kopsick,
in the 2016 U.S. House race in Illinois's 10th
District)
Intended to explain to the prospects of coalition-building between
Democrats, Libertarians, Socialists, and Greens,
and of bridging the divide between classical liberals and modern liberals
in the name of restoring the Bill of Rights
and fighting the resurgence of fascism in the Republican Party
Table of Contents
PART I: What Are Our Rights?
Part
I, Chapter 1: The Right to Be Presumed Innocent
Part
I, Chapter 2: The Right to Unlimited Rights
Part
I, Chapter 3: The Right to Keep and Bear Arms
Part
I, Chapter 4: The Rights to Marriage and Abortion
Part
I, Chapter 5: The Rights to Travel and Drive, Smoke and Drink, and Vote
Part
I, Chapter 6: The Rights to Work and Unionize
Part
I, Chapter 7: The Rights to Participate in Strikes and Boycotts
Part
I, Chapter 8: Summary / Interlude
PART II: Solving Problems
Part II, Chapter 1: Progressives
Have Too Much Faith in Government
Part II, Chapter 2: Public vs.
Private Property
Part II, Chapter 3: Returning the Democratic Platform to
First Principles
Part II, Chapter 4: Making
the Tax Structure Less Punitive Towards Production and Industry
Part II, Chapter 5: Free Markets
Lower Costs, Resulting in “Free Stuff”
Part II, Chapter 6: The State Has
No Essential Functions, and Doesn't Need to Exist
Part II, Chapter 7: Balancing the
Budget and Paying Off the National Debt
PART I: What Are Our Rights?
Part I, Chapter 1: The Right to Be Presumed Innocent
China's mass surveillance state, and
its practice of numbering people through its social credit score system, bring
to mind caste systems, and the Nazis' system of numbering Holocaust prisoners.
What is America, if not a nation
that loves freedom, and hates the crimes of authoritarian regimes like these,
against the very people they were supposed to protect? What is America, if not
a nation that presumes innocence until proven guilty, and which takes neither
life, nor liberty, nor property, until after a person has been proven
guilty or something?
Why should innocent babies – in a
free or unfree country – be treated as if they were guilty prisoners the
moment they're born? Fingerprinted, measured, and assigned a nine-digit Social
Security number to memorize their whole life, and expected to participate in a
consumer credit system?
Our Founders recognized, and
instilled it as a principle of governance in our nation's system of law, that a
just government's rightful powers are derived from the consent of the governed.
How is the consent of the governed protected when a baby is compelled to
associate with a state, before it even becomes able to comprehend what a state
is (when adult students of authoritarian regimes have not even begun to fully
comprehend the horrors of totalitarianism and states gone wrong)?
The birth certificate, and our
compulsory citizenship and association with the Social Security and credit
systems, represent Fifth and Thirteenth Amendment takings from the innocent and
involuntary servitude. The Fourth and Fifth Amendments to the U.S. Constitution
recognize a pre-existing freedom from unreasonable searches and seizures
whereupon no warrant has been issued. How is any of this legal?
Part I, Chapter 2: The Right to Unlimited Rights
The text and meaning of the Ninth
Amendment are forgotten to most Americans. The Ninth Amendment reads, “The
enumeration in the Constitution, of certain rights, shall not be construed to
deny or disparage others retained by the people.” This refers to negative
rights (freedom from government interference), not positive rights (which
derive from duties or privileges, and which rest on the approval of other
people).
Essentially, the Ninth Amendment
states that the mere fact that a right is named in the Constitution, should not
be interpreted to mean that they are the only rights that we have. We have
enumerated (named) rights, and we have un-enumerated (unnamed) rights.
The Ninth Amendment recognizes that “your rights may not appear listed here”,
and “just because it isn't mentioned in the Constitution, doesn't mean it's not
one of your rights”.
The deeper spirit of the Ninth
Amendment is to recognize that our rights do not come from the Constitution,
nor from the law or government, nor any piece of paper, in general. Our rights
are pre-existing; that is, our ability to do as we please without harming
others, comes from our natural ability to move around and exert our will, but
also to be limited by others' right and capacity to do the same. The
Constitution merely recognizes those equal rights, and codifies them, and
attempts to provide equal protection under the law.
In fact, if something does
appear in the Constitution, it's more likely that it isn't one of
your rights. More likely, it's something that the government decided that its interference
in, and the need to preserve existing jobs, was more important than your
privacy and your property, and the development of new technologies, etc..
Nowhere does the Constitution
prohibit us from marrying; defending ourselves; hunting; traveling; working;
quitting; nor joining, leaving, nor forming a union; nor engaging in boycotts.
These are natural freedoms that our Founders thought didn't need to be
mentioned in the Constitution as one of our rights.
Part
I, Chapter 3: The Right to Keep and Bear Arms
Including the rights to hunt, fish, work, unionize, etc., in the Constitution, would have only confused people. It would have caused them to think – just as they have assumed about the gun control debate - that just because something is mentioned in the Constitution, it must be solely federal business, or that the only way to achieve the intended outcome is with more (or continued) state intervention, and more state hoarding of that “right” for itself, as a privilege (and so on). Nothing could be further from the truth.
The Democrats' rejection of the
Second Amendment is not well-founded. All workers should be armed, or at least
all those who reject authoritarianism, racism, imperialism, and hierarchy and
exploitation in the workplace.
The original intent of the Second
Amendment was to protect not our right to hunt, nor even out right to defend
ourselves against criminals, but our right to shoot at government officials who
have overstepped the bounds of their authorized duties. Consulting the comments
of George Mason, Thomas Jefferson, and others, will bear that claim out. As is
evident from the previous draft of the amendment before it was compromised and
then adopted, another one of the amendment's intentions was to acknowledge and
protect our right to resist compulsory service in the military draft.
While the risk of the draft
returning may seem distant, selective service registration is currently
compulsory for adult males, and a recent effort by Senator Rand Paul which
would have abolished the draft, fell flat on its face. Moreover, dozens upon
dozens of figures in politics and the media have endorsed either bringing the
draft back, and/or expanding the scope of who must register for the draft
(namely, women). I do not want to serve in Donald Trump's army, and I do not
want to surrender my guns to it. I would prefer to engage it in battle. Why
would I surrender weapons to the government, when I know that of the 200
million people who died in the 20th century at the hands of their
own governments, 55 million of them were in countries that had legally disarmed
their citizens first?
The ideas that people will be more
safe when they surrender their weapons to the government, rather than less
safe, should be as ridiculous to Americans as the idea that a mass surveillance
state can protect our privacy, instead of deprive us of any and all
ability to have privacy, or even exert ownership of our homes (in the face of
warrantless wiretaps by the N.S.A., and warrantless searches by the F.B.I.).
The Second Amendment exists for
precisely the reason we see before our eyes: to protect us from our own
government, from renegade law enforcement agents, and from forcible service in any
armed forces. A race-obsessed president has said his officers should confiscate
citizens' guns before going through due process, which proves that he
either doesn't understand due process, doesn't respect it, or both. Can
vulnerable populations trust their city governments not to hire racist police
officers (occasionally giving them access to federally-provided military-grade
equipment)?
Security and privacy are neither
mutually exclusive, nor diametrically opposed. We cannot sacrifice one for the
other, without destroying both. We must not give up privacy in order to receive
security, but instead seek security through privacy. This is the right
to be secure in our persons, papers, homes, and effects – and the right to be
free from unreasonable searches and seizures – which is recognized in the
Fourth Amendment.
And part of recognizing that we
cannot have security without privacy, and recognizing that government's just
powers derive from the consent of the governed, is recognizing that the government's
right to possess and use weapons, derives from our own individual, personal
right to keep and bear arms. The fact of legal, personal ownership of tanks
and drones in America will attest to that. However, the N.R.A. (National Rifle
Association) does not have an interest in popularizing the civilian ownership
of powerful weapons (at least not when Republicans are in power, and at least
not for civilians who aren't white citizens in good standing with the law).
Part I, Chapter 4: The Rights to Marriage and Abortion
The demand for government
legalization of gay marriage was just a tired admission that the government has
the ultimate authority to say who's married and who's not. It doesn't. People's
agreements, and their family Bibles, and their loved ones, and the communities
of people who recognize them as married, decide that.
But since common-law marriage only
survives in about 7 states, and since most people value government-recognized
equality more than government leaving them alone, we have a society in which we
have to pay the government - in its own money, which it creates, and controls
the value of – and ask it permission (and permission to apply for a
license; that's asking permission to get permission) before we can
get married.
So instead of me and my girlfriend
(or boyfriend) saying that we're married, and that the government either ought
to recognize that marriage as valid, or else butt-out of the issue, we're
half-wondering why we have to buy the right to legally have sex with our
spouses from the government. It doesn't seem natural.
A legislator in Oklahoma proposed getting
rid of legal marriage altogether as a response to the state considering
legalizing gay marriage. And maybe that would be for the best! After all,
government doesn't belong in marriage, for the same reason it doesn't belong in
the bedroom. Is love a matter of the law, or isn't it? Why would anyone who
isn't in love with the government, want the government to take any part
in their union? Is love a matter of the law, or isn't it? Why would anyone who
isn't in love with the government, want the government to take any part
in their union?
Government should have no business
in either trying to promote or slow population growth; because
government cannot control how productive I am, nor how productive my family is,
nor control our ability to sustain ourselves and remain independent. So why
should we – the people who fund the government, and pay government employees'
paychecks – be expected to ask the government permission before marrying, using
contraception, or getting an abortion?
Many Americans incorrectly assume
that Roe v. Wade conferred a positive right to an abortion. And
in a way, it seems to, even if only because many people think it entitles them
to “free abortion on demand”. But Roe v. Wade, far from conferring
the right to an abortion, recognizes the right to get an abortion, but
only if your state says it's okay. It could even be argued that Roe v. Wade
is no longer “the law of the land” on abortion matters, but that Planned
Parenthood v. Casey is, because in that case, the Supreme Court recognized
states' rights to limit access to abortion if certain conditions are not
fulfilled.
None of these restrictions are
necessary; they all subject our freedoms to government permission, whether it's
life, liberty, property, sex and family matters, working, unionizing, etc.. Even traveling across the land, in the country
of our own birth, requires a permit.
Part
I, Chapter 5: The Rights to Travel and Drive, Smoke and Drink, and Vote
What is a driver's license, but a
state-issued permit to leave the state, that we have to pay for? Dozens of
early 20th century American courts ruled against the imposition of a
fine for the right to drive, ruling that it effectively amounted to imposing a
fee to leave the state.
Although courts have ruled that a
driver licensing fee is not dissimilar from a fee that we are charged (almost
as a penalty) for leaving a state, they have not gone so far as to
declare them interruptions of the free, regular flow of interstate commerce.
But in my view, this is problematic on Commerce Clause grounds, because,
with that driver licensing fee, the state favors its own domestic travel,
including commercial travel, over that of other states.
The existence of driver licensing
fees is not compatible with a voluntary society, a voluntary government, the
natural unenumerated freedom of locomotion and travel, and the necessity of the
federal government to ensure that the free flow of labor and capital across
state lines remain regular, uninhibited, unrestricted, and perfectly mobile in
the long run, in such a way that states are unable to pass any laws that
favor their own industry, commerce, or travel over that of other states.
When have driver licensing
requirements ever stopped 14-year-old farm workers from driving farm vehicles,
or even cars? When have driver licensing requirements ever stopped younger
children from driving their parents to the emergency room? That said, what good
could possibly come from a stronger enforcement of the driver licensing law?
Nothing but higher costs to travel and work, putting the natural right to
travel across the land, up to a matter of paying and begging the government,
and making the people more dependent and submissive in the process.
Why must taxes be levied, and identification documents be shown, in order to purchase
tobacco and alcohol products? Why should any peaceful adult in good standing in
the community be required to reveal their identity, simply in order to enjoy a
smoke or a drink? And should a peaceful undocumented immigrant have to risk
revealing his citizenship status in order to do that?
Not only
do driver's licenses interfere with our right to freely travel (and to travel for
free), they interfere with our ability to vote. The vast majority of the
people who get driver's licenses and state I.D.s, are expected to pay for
them (on top of being required to have some sort of state-issued
identification). We are also required to identify ourselves in order to vote,
and to use a predetermined set of identification documents to do so. But
doesn't the driver's licensing fee, or state I.D. fee, effectively amount to a
poll tax (that is, because it is a fee paid for the privilege of voting)? How
is a fee, paid for something that is required in order to vote, any
different from a fee being paid directly in order to vote?
Part I, Chapter 6: The Rights to Work and Unionize
We have the right to work, not
because a state government promises us the right to keep working when our union
goes on strike, but because we are naturally able to hunt, gather, fish, and
plant and harvest crops. That labor is necessary for survival, and if those
goods aren't taken in surplus of what's needed, then the use and trading of the
goods do not need to be regarded as a commercial activity. Thus, labor
necessary for survival should not be considered subject to the Commerce Clause,
nor any state commercial codes.
Some Libertarians support Right to
Work laws, because they limit the power of unions and express a desire for
states' rights on the union issue. But Right to Work laws are laws, and
no laws are necessary. Right to Work laws only came about because the unions
which were empowered by the Wagner Act were required to represent all
workers, even those who didn't want that representation, thought the union
under-served them, or who wanted to form their own union.
If enforced long enough, and not
re-negotiated often enough, old labor contracts come to resemble laws with no
sunset clauses. Old labor contracts, which limited wages and the expectation of
raises based on old numbers, are an important contributor to wage stagnation.
This is why not everyone is eager to be represented by the most popular union
at the workplace (usually the only union at the workplace).
With more unions at each workplaces,
unions will compete for workers' membership. If we want more unions for workers
to choose from, and if we want it easier for workers to change membership from
one to another, then we need to expand our vocabulary so far as union security
agreements are concerned. We need to consider arrangements like members-only
collective bargaining, minority unionism, dual unionism, and M.O.N.M.U.s
(Members-Only Non-Majority Unions).
If we can spreading these practices
to workplaces everywhere, and protect the right of any two workers to engage in
concerted activity to start a union or prompt negotiation – even if they don't
have the approval of a majority of workers in their workplace or bargaining
unit – then we can ensure that the right to unionize is recognized as a natural
right, and not interfered with.
Part
I, Chapter 7: The Rights to Participate in Strikes and Boycotts
Unionization will only remain a
right, however, so long as government does not interfere with the right to leave
one's union, nor the right to go on strike, nor the right to engage in boycotts
and other labor actions. Also, the right to remain at the workplace during a
strike, and to continue working (unless someone has contractually agreed to
either join the strike or be fired, and they had ample opportunity to change
that).
Unfortunately, the fact that the
Taft-Hartley Act of 1947 exists, is a major interference in our right to engage
in meaningful, coordinated strikes, through bolstering existing boycotts and
strikes with secondary labor actions. These actions are perfectly voluntary,
yet they are illegal for no good reason.
The effects of banning secondary
labor actions have included 1) the protection of the interests of entrenched
capital, 2) the preservation of existing jobs and job numbers, and 3) the
insulation of dying industries and exploitative workplaces from competition.
While we might wonder how a small business is ever supposed to be able to
compete against a large multinational, we also need to admit that there is no reason
for government to require permits and licenses to get in our way of competing
against government's own favored business interests. Government enforcement of
non-competition clauses in employment contracts already hinder our ability to
compete enough as it is.
If the rights to work, unionize,
strike, and engage in boycotts are among our natural, unenumerated rights, then
presumably our right to go on strike ought to include our right to strike... without
asking the union leadership, or a government bureau like the N.L.R.B. (National
Labor Relations Board), for permission in order to do so?
The N.L.R.B. can determine that a
strike is unlawful, depending on the timing of the strike, the employment
status of the participants, and whether their objectives are lawful. Well, what
if the objective of the strike is to point out that they can't wait for the law
to change, and that they need to go on strike now, without government
permission, or they don't have that freedom in the first place?
How am I “free to go on strike” if I
have to ask for permission first? That doesn't sound like a right or a freedom,
it sounds like a privilege. The N.L.R.B., union leaders, and union majorities,
can render strikes ineffective. For all intents and purposes, wildcat strikes,
the general strike, sympathy strikes, and secondary boycotts are illegal.
Repealing the Taft-Hartley Act would but a big dent in making meaningful,
coordinated strikes possible.
If we had the right to boycott, then
we should naturally also have the right to participate in meaningful,
effective, coordinated boycotts, that are not prohibited nor subject to permit.
And the right to participate in a coordinated boycott of some agency or
agencies, includes the right to withdraw funding (i.e., to divest;
that is, “dis-invest” or “un-invest”) from said agencies.
This line of thinking should not be
construed as an endorsement of B.D.S. (the movement for Boycotts, Divestment,
and Sanctions against the State of Israel); only government can impose
sanctions, while engaging in boycotts and divestment campaigns do not need
government support to take place, nor to be successful, and thus, should be
regarded as fully within the rights of citizens to participate in on their own.
On the other hand, I will also note
that if the B.D.S. campaign were to restrict the set of Israeli firms which it
targets for boycott and divestment, to only those firms within areas occupied
in defiance of United Nations Resolutions 242 and 2334, then that would help
focus the campaign on its target: the occupation, not the Israeli government
itself.
I do not support the B.D.S. campaign
in its current form, because I cannot support government actions (including
sanctions), and because too wide a boycott could potentially result in a
general boycott of all Israeli shops. It could even result in a boycott of all Jewish
shops, which could potentially serve as a prelude to a second Krystallnacht.
That is why I will not be supporting the B.D.S. movement until it either
becomes solely a “B.D.” (boycott and divest) movement, or else provides a clear case why sanctions against the Israeli government in
general would be beneficial.
But back
to the issues of strikes, unions, and wages directly: It is supposed that the
purpose of the existence of the National Labor Relations Board is to decrease
the risks that strikes will occur, and to have negotiation in the place of that
strike. Well, what if it would be better for the workers if that strike did
occur? If many workers, even a minority of them, feel that a strike needs to
happen, then who are the majority of the people in the workplace, the union
leaders, and the N.L.R.B. to stop them? If we consider solely the outcomes,
they're no better than any privately hired security guards who use force
against them.
And what
if the government-sanctioned, management-approved, union-leadership-approved,
union-majority-approved collective bargaining is not even realistically likely
to result in better compensation and conditions for employees? Moreover, what
if higher compensation is not the main issue for a substantial portion of the
negotiating unit, and those who care about things besides higher pay get
drowned-out by those workers who simply demand more meaningless
government-printed numbers on a piece of paper as the solution to all of their
problems?
While some
workers demand higher pay, or a higher minimum wage, for all we know, safety
conditions of their workplace could be deteriorating, or the workers could be
going without adequate health plans. Some workers may be demanding an end to
the wage system altogether; instead of meager concessions regarding wages, that
only result in wage stagnation, the longer the union contract goes without
renewal and renegotiation. Moreover, the minimum wage likely has the effect of lowering
the prevailing wage, because the minimum wage law does not apply to
all workers, and its bare-minimum value is interpreted as a suggestion about
what adequate pay is supposed to be.
Additionally,
workers' priorities about what they want out of the negotiation could be simply
too diverse to resolve issues through majoritarian decision-making. How are
those problems supposed to be solved through
compulsory majoritarian voting in mandatory, government-supervised union
elections, called for by union leadership? This is hierarchy, plain and simple,
and it has nothing to do with the egalitarianism and horizontality that
autonomous workers demand of their organizations.
Similarly,
why do we have the need for a federal law against yellow-dog contracts
(contracts in which employees promise not to join a union as a condition of
being hired)? Sure, it's fair to say that all people should be free to join a
union. But shouldn't a person only become an employee of a company, if they
share most or all of their interests with that company, and trust its
management? Wouldn't it also be fair to say that prohibiting yellow-dog
contracts makes it more likely that employers and employees whose
interests are opposed to one another's will have no qualms about coming
into association with each other?
This is an
example of moral hazard; we assume that the simple fact that government has
made a law about this type of contract, then that makes the situation all
better, and we don't have to worry about it. We even assume that the regulation
was appropriate or necessary in the first place (and maybe we assume it's
constitutional, if we even care about such a thing). Not only does the federal
prohibition on yellow-dog contracts makes conflict between employers and
employees inevitable and constant, while pretending to keep employees free;
it's also arguably an infringement on the right to be free from government
interfering in the obligation of contracts which are personal and are none of the
state's business.
As long as
employees retain the right to quit, and the right to discuss wages and
benefits, and the taxpayers are not on the hook to foot the bill for the
company if its management plans irresponsibly, and the company (not the
taxpayers) compensate any workers and consumers whom they wrong, then the
employee's right to join a union – when he decides to start working for
someone who accepts or even welcomes the presence of a union – is
not trampled upon.
Part I, Chapter 8: Summary / Interlude
So what are we supposed to do with the information that our rights to be presumed innocent, claim rights that aren't listed in the Constitution, marry, get abortions, travel, drive, smoke, drink, vote, work, unionize, strike, and boycott, have all been reduced from natural rights, to paid, permitted, licensed privileges?
Isn't
there supposed to be a difference between freedom and spending half of
your life in court defending yourself against false charges against you, for
crimes against no real person who can claim an actual injury to their body or
justly acquired property?
What is
necessary to solve the problem, is to protect the rights to work and unionize,
drink and smoke, travel and marry, defend oneself, etc., without getting
the federal government involved. And that can be done, through empowering the
people, their communities, and voluntary associations, to protect those
freedoms by themselves.
But first,
we must free ourselves from several delusions: first, the delusion that
government always or usually works (and works the way it's supposed to), and
second, the delusion that we have any practical ability to refuse to associate
with governments and firms whose practices we find distasteful or abusive.
PART II: Solving Problems
Part II, Chapter 1: Progressives
Have Too Much Faith in Government
Why have
Democrats – especially progressives – held out for so long, believing that the
party could ever move far-enough to the “socialist left” (or back towards New Deal
democracy) to effect real change, and limit the greed of owners, managers, and
entrepreneurs?
Why have
progressives gone on denying – for 94 years now – that political reform will
ever secure more rights for workers, instead of just making so many formal
concessions that real meaningful change only becomes possible through the
election of “the right people”?
I dare say
that the progressives' dream of good government is dead; and House Speaker
Nancy Pelosi's promises not to pursue impeachment of George W. Bush and Donald
Trump were the last two nails in the coffin. I certainly did not go out and
register as a member of the Democratic Party when Pelosi made her announcement
about Trump. Until our elected officials start getting serious, you won't see me
doing that any time soon.
In my estimation, progressive Democrats and “minimum government” libertarians (that is, minarchists) are both too willing to believe the government's lies, and are willing to admit that some amount of government is necessary. Some even defend the “necessary evil” argument, but to do this is to pretend that some evil is necessary, when it is not.
Libertarians
believe the a minimal government should probably entail some collective
national security, a national monetary system and a treasury, and the
establishment of post roads; and maybe also the maintenance of a court system,
the protection of property, and maybe border controls.
But
someone who can be convinced that “too much government is bad, but minimum
government is fine” could be convinced to accept any and all
proposals that would increase or expand government power or force. That is, as
long as those proposals are pitched with the mindset that “these are minimum,
essential, and necessary functions of government, which no other agency could
or would perform if we had no government.”
It's not
just Libertarians who fall for this; Progressives do too. It's just that they
tend to see the minimal, necessary functions of government as those which
pertain to the material needs of human beings; first primary needs like clean
air, water, and food; then secondary needs like shelter, health care and
insurance, and public utilities.
While
progressives have a blind spot for government overreach and government failure,
minarchist libertarians have a blind spot for market failure, the
overreach of private property, and the overreach of government when it tries to
protect private property. To put it another way, progressives are too willing
to make excuses for government when it mismanages, and minarchist
libertarians are too willing to make excuses for private interests, even
when they collude with government to steal more wealth and power from the
people.
But at
least the libertarians entertain the possibilities that the state is unnecessary,
and that we could do without it. The Progressives, for the most part, do not.
But one thing the Progressives do better than the libertarians is caution
against regulating private interests too little, while the libertarians
caution against regulating them too much. But as I previously explained,
we cannot trust government to regulate the same businesses which it alone
has the ability to empower and enrich in the first place.
As was the
case when Franklin D. Roosevelt opened the banks back up (after taking office,
and then closing banks nationwide), the people assumed that any banks that were
opening back up, must have been approved by the government as safe for
consumers to interact with. Unfortunately, this was nothing more than a scheme
designed to restore public faith in banking and financial institutions.
Re-investing
in bad banks, which had been closed and then approved by government, was an
example of moral hazard. Government insistence that it would, and could,
regulate banks, brought about too much faith and trust in government and banks,
and too little trust in the consuming public's own ability to worry about their
own finances, regardless of how many promises the government makes.
Trusting the government too much to carry out its
regulation authorities, exposes us to moral hazard, in which we are led to take
risks that we would not normally take. We do this because of a perverse
incentive; the government pretends to relieve us of the responsibility of
worrying about the health, safety, and effectiveness of the products we buy. We
assume that just because government says it's regulating companies, then it
really must be, and so, there is no personal responsibility or need to educate
ourselves as consumers, nor to attempt to protect ourselves in any way from the
state's bad standards.
However,
if we entertained the possibility that we could have better standards without
the state, then it would be so in an instant. We could have competing sets
of standards, voluntary adopted by individuals and organizations. While some
standard-setting organizations would engage in a “race to the bottom” to pander
to the low standards of the “lowest common denominator”, others would
prove themselves credible and reputable, and compete with other standard-setting
organizations to set better and higher standards.
You may be
asking how such a fantastical organization could ever possibly exist. Well, one
does exist!
The
International Organization for Standardization (I.S.O.) is an independent,
non-governmental organization, headquartered in Geneva, Switzerland. Its
members include the national standards bodies of 162 nation-states. According
to its website (www.iso.org), the I.S.O. (not to be confused with the International
Socialist Organization, which has the same initialization), gives “world-class
specifications for products, services and systems, to ensure quality, safety,
and efficiency”, it has published over 20,000 documents concerning standards of
all types of industries, and “it brings together experts to share knowledge and
develop voluntary, consensus-based [emphasis mine], market
relevant International Standards that support innovation and provide solutions
to global challenges.”
As long as
I.S.O.'s members remain non-governmental, voluntary, consensus-based, and
apolitical, then it can remain a non-compulsory, non-monolithic source of
standards. In practice, not all of I.S.O.'s members even set the
standards themselves; A.N.S.I. (the American National Standards Institute) is a
private, non-profit organization that merely accredits standards
developers. It also coordinates American
standards with international standards, in order to (according to the I.S.O.
website) “facilitate international trade”.
If standards
developers, and networks thereof, are free to compete against each other, and
vie for voluntary adopters without compelling them to abide by their standards,
then it is likely that the moral hazard effect could be diminished. This is to
say that people would develop their own standards, and investigate and judge
for themselves about what standards are appropriate and beneficial, in the
absence of punishment for disagreeing with any monolithic set of standards
which would be enforced through state monopolization of legitimized violence.
This is
where the consumer safety standards, worker health and safety standards, and
industrial quality standards of the future will come from, once we realize that
the standards set by government and its cronies are no longer either safe,
healthy, affordable, nor tolerable.
Part II, Chapter 2: Public vs.
Private Property
The very
idea that a “private” business can be regulated, without becoming an
effectively public institution – and without succumbing to the ills of
regulatory capture (that is, domination of a regulatory body by agents of the
very industry being regulated) – should be self-evident; evident both from
history and deductive reasoning.
In what
sense is a business “private” if it still accepts police and military
protections from the government, protections from legal and financial
responsibilities (in the form of Limited Liability Corporation status grants),
discounted rates on publicly-provided utilities, intellectual property rights,
trade protections and promotions, and other unearned favors from the state? All
of these taxpayer-funded, government-delivered supports – and even the
registration of parcels of land with the government – actually only render a
“private” residence or enterprise quite privacy-free, and, at that, public
institutions.
Should a firm, which receives government assistance, be
allowed to discriminate, segregate, or exclude “its own” property? Of course
not. But if a company wants the privilege of discriminating against members of
the public, while receiving public funds and supports, then it should elect
to stop receiving those supports, so that it can be free to do as it
pleases, without expecting assistance. Until then, it is not truly a
private agency, and therefore should not be permitted, nor expected, to behave
like a private agency.
Hence, it
may not exclude, discriminate, nor segregate against anyone, because to
do so, would be to exclude the very same members of the community which are
paying taxes to keep the business well-protected and financially “in the
black”. The company half-expects patrons to come in, work for them, and buy
their products. But if they don't, then the company may attempt to collude with
the government to force taxpaying members of the public to foot the bill to
keep them in business. And that would be a serious violation of free-market and
meritocratic principles.
There is
hardly an enterprise in the whole country which does not rely on some form of
government assistance. So, then, where is the truly private property,
where is the truly free market, and where is fully voluntary exchange? If the
essence of a voluntary society is that nobody can be compelled to associate
with any person or any agency, including and especially the state, then what
ability do I have, to survive, and to be self-sustaining and independent, if I
have no practical ability to make my living without associating with the state,
and without begging and paying it for permits and permission – and presenting
identification – for every significant thing I do, and everything I buy?
Perhaps
most importantly, if I have no practical ability to withhold the money I pay in
taxes from the companies to which my government awards contracts and
privileges, without lobbying the government to stop doing that, then what
ability do I have to boycott a company that balances its budgets with my money?
Even more problematically, a company which has the full right to boycott
me, by discriminating against me or removing me from its “private” property
(which the government protects for it, at the expense of the community).
All
monopolistic, exclusive property claims rest on the approval of the government,
through the Recorder of Deeds' office (or other types of land registrar's
offices). No landed property, nor business property, whose claims rest on the
ability of the government in order to enforce, would be assuredly protected if
the state collapsed (or otherwise ceased to exist, or to do its job). Without
the state, or during a revolution, all private property claims would be
up-for-grabs, because no exclusive land claim can survive in a voluntary
society so long as it is questioned or challenged by even one person.
Excessively
large, or far-apart, sets of land claims – all claimed by the same person or
entity – would be especially difficult to protect, and difficult to justify
protecting. Protection of absentee property, which is not being made use of, is
impossible on the part of the owner. An owner can only claim more than one
non-contiguous property, if he has the means to hire others to do it for him.
But if he expects other people to do it for him, then in a sense, that
is a negative externality, and an irresponsible outsourcing of the obligation
to protect one's own property claims.
The owner
might pay the security guard well, and maybe he even gives him his preferred
form of compensation (not necessarily government-issued money). But the fact
remains that “private property is impossible”; that is, if not for unanimous
agreement that one person owns some set of properties, it would be
impossible to protect all of those property claims. Or, if not impossible, then
undesirable for the vast majority of the people. As well as requiring
significant expenses, and, most likely, a standing army, which alone would be
capable of enforcing such a wide set of claims. Which, once again, the owner
would have no ability to protect himself, aside from his ability to convince
others – not pressure, not manipulate, not extort, but convince – to
help him protect and defend his claims.
Once we
understand that government enables large-scale ownership of land and
property in the first place (through land titles, L.L.C. status, and other
protections that effectively crush their competition, leaving those who lack
property high-and-dry, and begging for scraps), it becomes easier to
understand why government is having so much difficulty regulating these
enterprises' and owners' practices. It doesn't want to regulate them –
or, at least, it doesn't want them regulated by anyone who hasn't recently been
inside the industry – and sometimes government even tells the people
that regulating and taxing these companies more will cost the people
jobs.
We should
not expect the government to be able to control the very same profit-hungry
powers which it (the government) entitled, established, incorporated,
empowered, and unleashed upon the country by itself in the first place. If
politicians don't want these businesses and property owners to have so much
power, then they should simply stop giving it to them. But they keep doing it,
usually in exchange for the promise of “jobs” and job growth, even when
increasing the number of jobs overall can't be done without increasing the
number of jobs per person.
To
summarize, the effects of government-business collusion have been that: 1)
government is the primary source of corporate privilege; 2) the average person
is coerced into working for, and buying from, firms that have a right to
discriminate against him, while he himself has no right to discriminate against
those firms (aside from the mere right to choose from among a set of
pre-approved, government-sanctioned firms for employment and goods and
services); and 3) “property is impossible” (as Pierre-Joseph Proudhon said), by
which I mean that “private property” can scarcely exist without at least tacit
or passive government approval, if not also actual registration and protection
performed by government itself.
If more
“private properties” receive public assistance than we think (especially if it
is federal assistance), then more companies' activities can be deemed to
be relevant to interstate commerce, and thus, subject to federal jurisdiction
and regulation. But the objective of that regulation should be to keep
commerce regular, not keep it tightly controlled.
To “keep
commerce regular”, as far as publicly-sponsored “private” property is
concerned, should involve all three of the following measures at the same time:
1) revoking the right of private businesses to act without consulting the
public, as long as they continue to receive public funds; 2) revoking the
rights of governments to use taxpayer money to sponsor, promote, protect, and
favor established domestic firms over other firms; and 3) repealing all regulations
which require firms to accept, or coerce them into accepting, public utilities
(and other taxpayer funded privileges and supports).
If firms
are given the realistic opportunity to provide, and pay for, all of the
utilities they need, without getting the government involved (like to do them
favors by giving them reduced rates on those utilities), then it is
possible that a truly private company or property could exist without the state
condoning or protecting it. But if and when a firm achieves such a state of
affairs, then it should be neither taxed nor regulated by the state; because
that taxation and regulation would only be construed by the public as an
endorsement of the firm's behavior, and as a means of legitimizing it and
making it look safe to transact with.
If firms want to make a profit, then they must agree to taxation and regulation, in exchange for government protecting their privilege to do so. Especially if they want government assistance. But if firms don't want to pay taxes or be regulated too much, then there's an easy way to avoid that: don't turn a profit, and don't elect to receive government assistance. Re-invest all of your would-be profits back into the company, to reward your employees and the people who buy from you. And mind your own business without getting the government involved.
After all,
there was a time in this country, before income taxation, that corporate
profits were taxed, but personal income was not. These days, it's
practically the opposite; corporations pay near zero, while the personal income
of ordinary Americans is taxed at 20, 30, 40 percent. If not for the government
extending the privilege of limited liability, corporate profits would be
considered what they are, instead of the rightful personal income of C.E.O.s.
Don't get
me wrong; it's not that individual income should be taxed; it shouldn't. That's
because it's personal income that is rightfully earned through wage
labor. But simply disguising corporate profits as personal income, does not
make those profits truly earned nor justly acquired, if it is done on the backs
of the taxpayers.
Personal
possessions, and property that is protected by government but owned privately,
are not the same thing. But to make this distinction, instead of
ignoring it, would be inestimably helpful to the ways we think about how
to justly acquire property, and what the actions of the state upon property
mean for just acquisition.
That much
will be discussed in Chapter 12, on taxation. But first, it is necessary to
discuss what liberals and libertarians have in common in regards to their
shared political goals.
Part II, Chapter 3: Returning the Democratic Platform to
First Principles
Before the
rise of the Whig Party, and before supporters of Andrew Jackson founded the
Democratic Party in 1828, the major division in American politics was between
the Federalists (led by Alexander Hamilton) and the Democratic-Republicans (led
by Thomas Jefferson and James Madison).
The
essence of the democratic-republican idea was that only a limited number
of issues would be handled by the federal government, and the rest by the
states; and that the only wealth that can be shared or voted on democratically,
must be given of a person's free will, or else taxed according to
apportionment.
While
modern-day Democrats regard the General Welfare Clause (and the Necessary and
Proper Clause) to empower the federal government to do basically whatever it
wants, libertarians and classical liberals understand the General
Welfare Clause as limiting, rather than widening, Congress's ability to
do things not mentioned in the Enumerated Powers (Article I, Section 8, Clauses
1 through 18 of the Constitution).
The
“general” part of “general welfare” means that federal spending must benefit all
of the people generally, as opposed to benefiting this or that firm or
individual in particular. It is not a call for Congress to spend as much
of our stolen money as it pleases, and then reason that it satisfies the
General Welfare requirement by generally helping the public in some
broad, loose, unspecific manner.
The ignorance of the meaning of “general welfare” is what
has caused the “mission creep” by which our government has grown since the
writing of the Constitution.
Luckily
for those who desire reform, there are classical liberals, and
minarchists, who understand that it is possible to have government
programs that are at once constitutional and properly funded.
For
minarchists to accept the validity of a legislative proposal – even one whose
goals lie outside of the scope of the Congress's traditionally limited powers -
then all that should be necessary is that the bill have provisions that
properly fund the proposal, and make it revenue-neutral, and there must be a
real emergency (not a fabricated one), which affects the whole nation, and
which therefore justifies the need for spending at the federal level.
It would
also help if the bill has a sunset clause, and is set to expire one day, in
case it doesn't achieve its goals, or over-extends its mission, or creates a
program that goes on too long for the public to put up with. Additionally, it
couldn't hurt, if the authors of each proposed bill in Congress, were required
to explain in the bill precisely what in the Constitution makes that
potential Act of Congress into one which is indisputably within the scope of
the legislative branch's powers.
I wish
there were no need to say this, but it should go without saying that the
legislative branch's powers do not include handing over their authority
to the president, to assert through executive orders and signing statements, to
command that all sorts of industry come under his control (and, with that, to
command that the presidential cabinet add new members, and that the executive
branch add more bureaucracies and employees, and armed law enforcement
officers).
That is
why many Libertarians and Republicans believe that health care, health
insurance, and retirement are beyond the scope of Congress and the
federal government. Gary Johnson, the Libertarian Party's presidential nominee
in 2012 and 2016, wants to kick Medicare, Medicaid, and Social Security to the
states, perhaps by enacting block-grants, whereby the federal government would
collect revenues for use by the state, to be spent on their own health systems.
This idea fits the mold of “New Federalism”, a system of limited federal
government involvement, from which presidents Nixon and Trump have drawn some
inspiration.
Reasoning
that there is no specific authorization for the Congress to legislate on
matters concerning housing and energy, Ron Paul ran for president on abolishing
the Department of Housing and Urban Development, and the Department of Energy.
Reasoning that government should not own large swaths of land, that the
Department of Commerce is a repository for cronyism and collusion between big
business and big government, and education is not even mentioned in the
Constitution, Dr. Paul also advocated abolishing the departments of the
interior, education, and commerce.
If the
activities currently handled by the Department of Homeland Security were placed
under the authority of the Department of Justice, then implementing Gary
Johnson's and Ron Paul's proposals would cut the size of the president's
cabinet in half, and with it, the size of the executive branch would be halved.
Not only that, the states would run the health and retirement entitlements, and
would thus have more independence, and control over their own affairs. Couple
that with a more responsible set of military policies – like refraining from
selling rebel groups weapons, and then having to develop better weapons to
fight those rebel groups with – and it could even become possible to return the
federal government to pre-9/11 spending levels.
The Bill
of Rights does more than just protect our freedoms to speak, etc., and
our right to a fair trial; it protects our right to speak about, and contest,
the takings of our private property for public purposes. Not only without
just compensation, but altogether, that is, our property is not
supposed to be taken without our consent in the first place, even if the
compensation we're being offered has been deemed adequate (And by whom? You
guessed it... the government).
Don't get
me wrong; stolen property, and property that's been legally stolen by
our government and then given to its cronies and contractors, should not
be protected from confiscation, nor from public voting. But it can be quite
difficult to legally prove that something expropriated according to law,
actually belongs to someone else. That's why things would be much simpler, if
no unjust redistribution of property – nor government protection of
property, either – had ever occurred in the first place. If that
were the case, it would be much easier to tell whose property is whose; they
would still have it.
It's not
just the very rich who should be worried about the government legally stealing
their property, and shorting people when they finally “agree” to sell it. The poor
should be worried too. There are city laws that allow police officers to steal
homeless people's property; state gun permit laws that require gun owners to
have a residence (which effectively criminalize the possession of weapons by
homeless people); and requirements that people must purchase government
identification, and health insurance, etc.. The poor and rich alike are
liable to have their property and wealth legally stolen by government.
The Fifth
Amendment acknowledges that we have the right to retain our property unless we
agree to give it up or sell it. The Fourth Amendment acknowledges our right to
due process of law, in case we are accused of owning something that belongs to
another owner or to the public. The Eighth Amendment protects us from being
cruelly and unusually punished, in case we are found guilty. The First
Amendment recognizes our right to speak out, in case we are wronged by our own
justice system.
But the Ninth
and Tenth amendments recognized that government should not overstep certain
bounds in the first place; namely, the boundaries between the scopes of federal
vs. state (and popular) powers, and the difference between natural rights and
government-protected privileges. Our right to own property is an unenumerated
right, and as such, can neither be legally nor justly limited by the
Constitution.
However,
if public property does need to exist, then private property must as
well, or else the voting public and private owners will be virtually unable to
respect, or even acknowledge, each other's right to own property (in whatever
form).
It is
unfortunate that most liberals, Democrats, and Progressives find states' rights
and the right to keep and bear arms abhorrent.
If they
didn't, then maybe they would have already asserted the rights of blue states
to make decisions independently of the federal government (in policy topics not
mentioned in the Enumerated Powers). They would be working harder than they are
to assert the rights of vulnerable members of the population – in particular,
people of color, members of the LGBTQIA+ community, and non-citizens – to use
guns to defend themselves against assailants.
Fortunately,
though, there is some abiding respect left, in the liberals, for the
Bill of Rights. Amendment I, and Amendments III through VIII, are still valued
by the vast majority of people on the American political left.
Hopefully,
more liberals will soon realize that it is all but impossible for states to
conduct their own business, without regard to presidential and congressional
interference, and without overstepping the boundaries delineated in Article I,
Section 8. When they do, they should take their power back, even if that means
undermining the credibility of the central government, endorsing the right to
self-defense, and supporting the “states' rights” idea which they previously
identified as one that potentially enables the return of slavery.
But what
will hurt Democrats most, is that they will have to resist the temptation to
continue growing the power of the federal government, when some group of
fascists is just going to take it over eventually, and pervert it for their own
ends (whether it gets bigger or smaller).
On the
other hand, if the Democratic leadership can resist those temptations,
then liberals will once again come to value the whole Bill of Rights.
That's when they will be able to understand the value of the Bill of Rights
insofar as it protects property; and, at that, the right to fully own property,
as opposed to driving a leased car to a rented apartment that sits on top of
land owned by the city.
And when
that happens, then the left will appreciate the Constitution for protecting our
rights to solve problems related to health, retirement, energy, housing, land
management in our own communities, instead of everything being dealt
with on a national level, and everything construed as a national emergency all
the time.
My point
is that, just as the Constitution intended to protect our property from being
voted away into the public pot, the Constitution also intended to
protect entire industries and spheres of life from being politicized.
While
right-wingers, Republicans, and fascist and Nazi sympathizers remain in power,
democrats, Libertarians, classical liberals, Progressives, Socialists, and
neo-liberals can, should, and will remain allies. But to make such an alliance
meaningful and permanent, requires more than a mere acknowledgment that this
alliance is coming together. It requires understanding the common roots of our
ways of thinking.
Ask a
Democrat their favorite American president, and many will say John F. Kennedy.
Ask a Libertarian his favorite Democratic president, and many will also
say Kennedy. Granted, Kennedy-era tax rates on the super-wealthy were well
beyond what most modern-day conservatives and right-libertarians would be willing
to tolerate.
But
Kennedy - with his noted opposition to government secrecy, his support of the
freedom of the press, his ability to make his stance towards communism seem
tougher than Richard Nixon's, and his friendship with Barry Goldwater - was not
the typical Democrat that we know today. If anything, he was one of the most
conservative or libertarian Democratic presidents the United States has ever
had (save for, perhaps, Grover Cleveland and Thomas Jefferson).
Coin
collectors know that the Kennedy silver half-dollar came about after Kennedy's
assassination, in part because Kennedy's efforts included reform of the
monetary system. Kennedy halted the Treasury Department's sale of silver;
ordered the end of the government's “support” of silver prices; and asked
Congress to phase-out the redemption of silver certificates, in favor of
redemption of those certificates for (then) gold-backed Federal Reserve notes.
Kennedy's
moves to end the silver scam echoed an earlier sentiment by another
Democratic Party presidential nominee, William Jennings Bryan. In his “Cross of
Gold” speech in 1896, Bryan spoke in opposition to the gold standard, vowing
not to “crucify mankind upon a cross of gold”. Bryan endorsed the free coinage
of silver; and a return to the bimetallism that had been in place until 1873.
Bimetallism is the establishment of both gold and silver as legal tender, with
a fixed rate between the two metals.
Although
Kennedy and William Jennings Bryan had opposite views on the gold standard, the
goals they shared were to make money more sound, while increasing its value,
keeping money accessible to the average person, keeping the currency issuing
authority closer to the people or the Congress, and keeping inflation low.
Whether they succeeded is up for debate.
But my
point is this: the Democratic platform of the 1890s, with its concern for
monetary reform, and its attention to opposing usury and opposing the power of
large trusts to create monopolies, render it very similar to the Democratic
platform of the early 1960s under John F. Kennedy.
I believe
that by reinvigorating Democratic voters with not only the enthusiasm of the
Civil Rights Movement (and modern liberalism), but also the anti-monopoly classical
liberalism of the party as it was 130 years ago, it will be possible to
create an “all-liberal coalition” or “all-liberal alliance”, which unites
democrats, socialists, and libertarians alike, against their common enemy, the
fascists who currently control our government.
A political
theory is the only way to unite all the opponents of fascism which are not
authoritarians themselves. Not a political fix. The development
of theory is necessary, so that people can use rhetoric and
argumentation to convince people to change their minds about government
voluntarily, instead of using violence, or forcing people into political
associations which they abhor.
When the
theory changes about what makes someone a Democrat – or an anti-Republican, or
anti-Trumper, or a libertarian Democrat, or a “never-Trump” voter in a
coalition of mostly Democrats; whatever you want to call it – then voluntary,
peaceful coalition-building will become possible. Until that happens, efforts
to force a Libertarian or Socialist peg into a Democratic slot will be in vain,
and they will only inspire antipathy and backlash.
On the
other hand, a “political fix” in the way of abolishing the Senate and the
Electoral College – or encouraging more states to adopt proportional allocation
of electors – might not be so undesirable. Arguably forceful though that system
may seem to Libertarians, a single-legislative-house parliamentary democracy
could still protect minorities well, provided that it does not outlaw all
political parties (or outlaw all but one).
Part II, Chapter 4: Making the Tax Structure Less Punitive
Towards Production and Industry
Now, about
taxes and just acquisition of property.
It would
make little sense to tax individual income away, while refusing to stop calling
it “earned income”. Not only that, but confiscating the rewards of hard work,
tends to make us work less, in order to avoid the tax. While it may have
been wise to tax the highest earners at a high rate, most modern
economists agree that lowering the tax rate has improved productivity. Some will
even argue that lower tax rates can result in higher revenues.
Companies
that conduct their business at public expense, and are likely to affect their
surrounding community and environment, should be regulated, and should
have their profits taxed. That's because when a company elects to receive
public assistance, it should be responsive and accountable to the public on
whose back it balances its accounts.
Even a
Libertarian who regards taxation of such businesses as “theft”, should be able
to admit that what's being taxed was legally stolen from us in the first place,
and that the mere fact that the theft was done legally doesn't make it OK. He
should also be able to admit that if there exists a risk that a company could
coerce its workers, or coerce people into working for it or buying from it, or
pollute its surroundings, then there should be some funds set aside, in case
there arises a dispute between the business, and someone onto whom the business
will have externalized a cost or responsibility.
Of course,
if the personal income tax rate were to drop to 0% (or something very low),
while the income of businesses receiving public assistance, were to be taxed at
a very high rate, then eventually, the number of businesses receiving public
assistance would probably decrease very rapidly, while the individual worker's
disincentive to work more – in order to avoid generating more taxable income –
would be removed.
When it
comes to taxation, the prevailing idea of today – “Does the spending item match
the behavior being taxed” – is overshadowed by what I believe is a more
important question: “Are we taxing the right behaviors?” After all, money is
fungible, and - barring legal sequesters of funds, and stipulations regarding
which types of programs are discretionary, and which are not - any spending
item can theoretically be matched to any revenue source.
And if we
know that taxing an item tends to have the result of discouraging the behavior
that's being taxed, then why shouldn't we create a taxation policy that
reflects that idea? Why shouldn't we create a taxation policy that counts on
people trying to avoid the tax, as the basis of the idea? And that is the
taxation policy that we would have, if we taxed economic activities not just
“because they move”, but because they're criminal.
This is to
say that if we are to be presumed innocent until proven guilty, and our
property cannot be taken from us until we have been proven guilty, then
it stands to reason that if we are taxed against our consent, then it must be
because we are guilty of something. If not, then we are subject to involuntary
servitude, because we worked to earn money that has been taken from us, which
effectively amounts to not just a theft of wealth, but a theft of labor.
Making
money on the backs of taxpayers is wrong. But personally earning money through
wage labor, on an individual basis, is usually not wrong. So, then, why are we
treating ordinary, productive Americans as if they were criminals, while the
already wealthy are free to hire lobbyists, to write new laws that grant
themselves even more money and power? Why are we taxing personal income, sales,
and home ownership, when we supposedly want to encourage non-violent,
peaceful, productive activities like these, which result in more wealth for the
people?
If there
are any economic activities which cause real harm and damage to people,
property, and the planet on which we live, then aren't the hoarding of land,
the ownership of vast swaths of land, the pollution of land, the destruction of
land, and the waste and disuse of land, among the biggest “criminal economic
activities” of them all? After all, if something is a “crime”, then it must
harm a person, or their justly acquired property, or make their property
unusable. And that is exactly what corporate pollution and land hoarding do;
they enable businesses to hold onto abandoned properties, and waste them at
public expense, while reaping a profit.
I mention
this because William Jennings Bryan is not the only Democratic hero of
the late 1800s who can help us bridge the gap between modern liberalism and
classical liberalism; New York born economist Henry George, with his idea of
Land Value Taxation, can too. Land Value Taxation affirms the right of ordinary
people to the fruits of their labor, while the right to hoard and destroy land
at public expense without consulting the public is considered non-existent.
Back in
George's day, Land Value Taxation was known as “The Single Tax”, because it
aimed to tax solely land, and nothing else (i.e., neither labor nor
capital). Although Libertarians support funding more of government through the
sales tax (which Georgists would not support), both Libertarians and Georgists
share the desire to abolish the taxation of personal earned income, while
simplifying the tax code (albeit in somewhat different ways).
Given the
adoption of some of George's ideas by the likes of Norman Thomas and Franklin
D. Roosevelt, George's ideas have come to be associated with the left more than
with classical liberalism.
However,
George continuously surprises modern readers with his positivity about the
prospects of retaining a market system (aside from as it pertains to land,
which he still, nonetheless, believed markets could and should
play a role allocating). The notion that Land Value Taxation imposes a fee
for the social costs of occupying land, rather than a tax on its value,
may help the reader to understand how land rent is a function of the market,
not necessarily of the government or the state.
Additionally,
George surprises us by declining to say that the public or the state ought to
restrict how much fishing and hunting people can do. It is one thing to say
that a person who depletes some amount of a hunting or fishing stock, should
compensate the people who lost the opportunity to do so because he was there
first; but it is another thing altogether to say that such a thing cannot
happen without an all-powerful state to make it happen.
George
observed that land prices are higher where there is lots of land and few
people, while land prices are lower where there are lots of people and
relatively little land. He observed that high land prices resulted from low
availability of land, and that hoarding and speculation fueled the acceleration
of land prices ever-upward. Land follows the laws of supply and demand, just
like any other resource.
George
reasoned that if everyone paid a simple fee on the value of the land on which
their property sits, then a fairer market system, and a more equal distribution
of wealth, would result. This is not to say, mind you, that each person
should pay a fee for owning their own home, as part of a property
tax; George proposed solely a tax on land, with all buildings and economic
activities on top of the land being viewed as “improvements” not to be
taxed, being that they are the result of the personal labor of the owner of the
home.
Additionally,
George was an opponent of tariffs, which do not accomplish their stated purpose
(of financially penalizing abuses by foreign governments and firms), and which
act as an arbitrary and unnecessary barrier to international trade (raising
prices in the process).
The value
of all the untaxed land in the United States – not including improvements – has
been estimated at around $5 trillion. That would be enough to pay for the
federal government budget for an entire year, with almost another $1 trillion
left over. The cost of all levels of government combined, however, is
approximately $7 trillion a year.
Now,
bearing in mind that property taxes are typically only levied at the most local
of levels, Land Value Taxation is, again, not a tax on the totality of
our physical property. Moreover, even if land value taxes are supposed to be
paid to land trusts in each community, that doesn't mean that transitioning to
Land Value Taxation would solely help local governments balance their budgets.
Suppose
that all municipal and county governments in America stopped taxing houses and
buildings, and solely taxed the owners of the property for keeping unearned
rents. If the experiences of a dozen Pittsburgh suburbs between the 1970s and
2000s means anything, communities would see less unemployment, less blight of
land, fewer abandoned properties, less land speculation, and a more equal
distribution of opportunity and income.
If it
becomes possible for all local government to be funded solely through
Land Value Taxation, then local and county taxes on sales and income (and
probably others, too) would all but disappear. But then what? Then, the
money which would have been confiscated by the government through sales and
income taxes, would be available for either personal spending, taxation by the
state and federal government, or voluntary donation to the government as a
gift.
Essentially,
establishing Land Value Taxation in each community, could free-up revenues to
be spent elsewhere, whether on the government, or on one's personal needs and
wants. And that is how the $2 trillion gap – between the $7 trillion cost of
all governments, and the $5 trillion amount given as the value of all untaxed
land – could be bridged.
But we should
not refrain from asking ourselves whether we need to be spending $7
trillion on government in the first place. There is no reason why this figure
would not go down if a Georgist or “geo-libertarian” tax policy were adopted.
That's because the policy would value decentralization, simple taxation,
balanced budgets, sound money, and leaving people free to be productive without
having it all taken away “for their own good”, or for the good of the
non-existent person known as “the public”.
Part II, Chapter 5: Free Markets Lower Costs, Resulting in “Free Stuff”
Part II, Chapter 5: Free Markets Lower Costs, Resulting in “Free Stuff”
Karl Marx
observed that, while most problems in society were previously caused by
scarcity and shortages, newer problems resolve around the negative
effects of abundance, and of having too much.
Although
it could be argued that land exists in a fixed quantity, that
does not necessarily mean that it exists in a scarce quantity (meaning
that less of it is available than the amount which human beings need).
Furthermore, wild game and fish neither exist in fixed quantities, nor
are they scarce. Considering that Americans throw away between a third and a
half of all food, and that wild game stocks are continuously replenishing
themselves (through animals mating and giving birth), that much should be
obvious.
But this
begs the question: if it's possible that land, wild game, and fish are not
fixed, or abundant, or both, then why do we need anyone's help to distribute
them? If a good is abundant, then doesn't that mean that any person can take
significant amounts of it, without having to worry about compensating society
or replenishing it? And if people can simply take what they need, then why do
we need markets to distribute things for us (through the price mechanism)?
Perhaps
even more importantly, if some or most goods are abundant, and not scarce, then
why do we need governments to distribute things for us (through central
planning)? I contend that we onlly believe that we need governments and
markets, because we assume that most or all goods are fixed and scarce pies of
unchanging size, rather than “growing pies” which exist in abundance and
surplus.
Food,
for example, doesn't only exist in surplus, it's literally sitting on grocery
store shelves, spoiling, waiting for its own price to fall to the point where
we can afford it, buy it, and make use of it. Until it ends up in the dumpster behind
the grocery store. Unless it was never harvested in the first place, because it
was deemed imperfect, and thus unsuitable for commercial consumption
(translation: no good reason pertaining to nutrition, it just didn't look
pretty enough).
While
Libertarian Party co-founder David Nolan was an admirer of Henry George's idea
on taxes and economics, most Libertarians instead admire the Austrian school of
economics. Many
Libertarians
like to say “There's no such thing as a free lunch”, but if you ask the founder
of the Austrian school, Carl Menger, he would tell you that costs and prices
fall whenever supply is high, demand is low, or both. So there's no reason to
suspect why a free-market system, and a decentralized or even stateless
communist system, would not have a lot of the same results; namely, the
abolition of taxpayer protection of the intellectual property monopoly, and the
reduction of prices which will inevitably result from the new influx of
competition against the no-longer-protected industrial giant.
This is
why I say “free markets result in free stuff”, much to the dismay of many
Libertarians. Political theorists like Kevin Carson, and economists like Jeremy
Rifkin, and many others, have realized how hazardous intellectual property is
when it comes to keeping prices high, keeping competition low, and even
resulting in wars fought over the right of American companies to sell in
foreign countries' markets.
That is,
without fear that they will suffer “intellectual property theft”, by which they
really mean “having to abide by the laws of the country they agreed to set up
shop in, and agreeing to share their technology with the people of that foreign
country who are trying to make developments in the same industry.” For more
information on this, look up the Company Law of the People's Republic of China,
as it pertains to the myth of “intellectual property theft” and
“counterfeiting” (albeit through what are arguably perfectly legal means).
Any
Libertarian who says that the state is needed to protect intellectual property,
is making two mistakes: first, by admitting that the state is needed (it
isn't), and second, by admitting that intellectual property owners can't
protect their property by themselves. The state uses stolen taxpayer money to
excuse them from this responsibility. A responsibility which is impossible to
protect, mind you, because it would require placing police officers at
libraries and residential printer-scanner-copiers all over the country in order
to enforce. And that would not only be expensive, it would virtually require a
standing army, and during peacetime that is a violation of our liberties.
Two of the
most important implications of the possibility of abolishing intellectual
property – or at least drastically shortening the length of patent durations
going forward – are the ramifications in the fields of medical technology, and
as it pertains to 3-D printing and mass manufacturing.
The advent
of 3-D printed organs - and advances in research and technology related to stem
cells, organ grafting, and telomere lengthening - are making it possible to
re-grow organs, graft non-animal tissue onto human tissue, and possibly even
protect our very chromosomes from decay.
Abolishing
or restricting intellectual property, coupled with increasing application of
3-D printing technology for medical uses – along with increased accessibility
of 3-D printers – will help bring about increased accessibility of medical
devices and medications. So will reducing sales taxes on medical devices, which
is one of the reasons I believe that Obamacare is mostly destructive to our
freedoms.
However, I
will admit that as long as insurance companies are making profits and receiving
funding from taxpayers, they should be required to offer coverage to all
people regardless of age or previously existing condition.
Aside from
the medical applications of 3-D printing, entire houses, bridges,
handheld guns, and other devices which can be 3-D printed, are revolutionizing
society.
The
Supreme Court ruled that government cannot infringe on our right to 3-D print
weapons, and the possibility that 3-D printed houses could spread and become
affordable, threatens to turn the already abundant housing situation into an
even more shameful disparity of peopleless homes, waiting for homeless
people to occupy them, than we already have.
This new
technology, with its potential applications in mass production – coupled with
advances in transportation technology, like drones and air-powered
hovercrafts – will soon make it possible to not only mass-produce, but easily
distribute what is mass-produced. And that will increase the accessibility
and affordability of all sorts of goods; foods, inventions, medications, you
name it.
There's
just one problem: We need to make sure that most people own one of these
means of production, or else they will have little choice but to go into
competition against machines, which can be difficult. That is, unless they are
free to gather what they need from the surplus and excess that is produced all
around them.
Say it
whatever way you want, there is no reason why overproduced goods should have
difficulty finding people to consume them. That is what necessitated creating a
culture of mass consumption; to boost demand, and to dispose of what's
produced. Ironically, the idea of a sales tax has been offered as a
solution to curb this consumption. But consumption itself is not harmful,
unless it is excessive and conspicuous, or else actually destructive.
This is to
say that the cycle of production and consumption is not harmful in and of
itself; and that there is ethical consumption under capitalism. But that
does not mean that most consumption is ethical, nor that it is
beneficial to all nor most people. You see, the income tax penalizes production
unfairly and unnecessarily, and sales taxes penalize consumption
for no reason. Meanwhile, most land is just sitting around, not being taxed,
not even being used.
With 3-D
printers, 6 empty residences for every homeless person in America, and the
third-largest country in the world by land area, why are land and housing so
expensive? The answer can only be corruption; legalized land hoarding and
speculation, legalized housing speculation, pollution and destruction that's
unpunished by the tax code, and legislative restrictions of our right to
access, adopt, adapt, and improve technologies, and use it to better people's
lives (even if it doesn't make some billionaire a profit).
Most
importantly, the answer ought to explain why the high cost of housing - housing
which literally rests on land - itself rests upon the high cost of land.
That's because, wherever taxation and subsidy don't change things, land price
increases tend to increase housing costs.
A humane
policy on health, technology, and science, necessarily must involve
abolition, or else drastic restriction, of the ability of firms to acquire
monopolies on (what are ostensibly) inventions, and, at that, at taxpayer
expense, and at a social cost.
John Locke
explained that the right to homestead is predicated upon the responsibility to
refrain from claiming for private ownership an amount of land which interferes
with the opportunity of others to do the same, considering how many people and
how much land exist in the area. There is no reason why that idea should apply solely
to land, but not also to monopolies on life-saving technologies that were
invented mostly for the benefit of mankind instead of a single owner. After
all, no man could own the whole Earth, so why should one man, or a small group
of people, own all the technology?
And, on
top of that, retain a legal right to sue people for using “their technology”
and “their products” in a way that they don't like. Due to the proliferation of
licensing contracts, the idea that a good belongs to the person who purchased
it, has been replaced with the idea that if a person wants to modify something
they bought, or use it in a different way or for a different purpose, then they
lose all rights to hold the producer responsible (for example, if it turns out
that they knew that improper usage was impractical or unavoidable, and likely
to result in harm to the user).
This may
sound like a situation in which the state has delegated its duties, but the
state's intervention could only benefit the monopolist. Only competition to
provide dispute resolution can result in a fair outcome.
Part II, Chapter 6: The State
Has No Essential Functions, and Doesn't Need to Exist
Most
Libertarians will say that if government, especially the federal government,
has a right to exist at all, then its only (or most important) central
functions are military and police (to protect people and property), a system of
justice and courts, and maybe also a way to manage a monetary and treasury
system, and/or our national borders.
But
contrary to the beliefs of these advocates of minimal government, the state has
no essential functions, and doesn't need to exist. Put another way, there is
nothing which the state alone does, that other actors would not try to do if
the state didn't exist. And there is nothing that we would want to do,
which could not be more easily done without the state.
The state
simply gets in the way; of technological progress, of communities and voluntary
associations solving their own problems, of people finding just resolutions to
their disputes with figures of authority, of people defending themselves,
working, joining unions, marrying, and all that.
That
dollar in your pocket? Covered in toxic chemicals. We're literally trading
toxic assets, backed by the full faith and credit in the U.S. government, and
that full faith and credit still exists.
We allow,
and even encourage, our children, to acquire U.S. Dollars, most of us ignorant
of this fact. We're not only tethering the next generation to the dollar -
“crucifying them on a cross of paper”, as it were – we're passing-on to them a
currency that poisons you when you touch it with the carcinogenic
chemicals used in its processing. Why else would it be itchy to the touch? All
up to F.D.A. Standards, though, I'm sure.
Also, that
money in your pocket? It's not even money, it's currency. Money is meant to be
saved, and paper dollars are not money. Currency is meant to be spent; paper
dollars are currency, not money. Currency is also meant to have debt
built into it, so that its value slowly decreases, so as to discourage people
from spending it.
But here
the government is, for the dozenth year in a row, trying to stimulate spending
and discourage savings without explaining to the people that gold and silver
are the only legal, constitutional currencies, while paper dollars are for
spending, and that if you want to save something, you ought to choose a
precious metal and get a Certificate of Deposit. The fact that this is never
explained to us is a lie through omission, a covert fraud.
Even if
the Constitution does authorize a Treasury Department, and authorize the
Congress to create a monetary system – suppose that it even authorizes Congress
to outsource the responsibility to create a monetary system to an “independent”
private third party! - has the Treasury Department demonstrated any
desire to even communicate with the people in any significant way about
what the intentions of the monetary system are? If the American monetary system
was truly created to serve us, then why the Hell does the government
have to go around, being so secretive about it, as if this were the business of
the Joint Chiefs of Staff?
Whatever
you think about its constitutionality, the federal government has not
earned the right to monopolize the creation of money. And that is what it has
done, given that it prohibits people from issuing their own coins, even with
full assurance that the metals are pure. Most ludicrous of all, government
prosecutes them based on the idea that they are “counterfeiting American
currency” instead of issuing their own. You can read about the case of Bernard
von Nothaus to find out more about this.
If we end
the currency monopoly, and allow competing currencies – all of them
free-floating, none of them pegged to the value of any other, and none of them
manufactured or having its value controlled by a government – then who will
protect the wealth of the rich? Only those who believe that it will be better
for the rich to hang onto their wealth, than it will for that wealth to be
dispersed among people who choose a currency that can serve an actual
currency's intended function: to be common, and traded among many
people.
A currency
should be popular, but there is no need to make it mandatory over
a whole area; if it is not adopted voluntarily, then we will have to pretend
that voluntary exchange can take place using involuntary assigned currency.
Abolishing
the Federal Reserve's currency monopoly will allow precious metals and other
valuable commodities to compete fairly against each other, and against the
dollar, in a market slightly more free from statist inhibitions, interference,
and rigging. Completely free, if we abolish all government
currencies. And if that happens, then it will be possible that the people will
have so much control over their currency and their economic destiny, that we
might be able to simply ignore the vast wealth of the rich (reasoning
that so much opportunity to create more wealth exists), and/or we could
simply refuse to honor whatever currency is popular among the wealthy.
Of course,
when I say “currency”, I mean to include not only money, but things that
perform one of the most important functions of money; namely, to store
wealth. And the very wealthy don't all keep their wealth in government-issued
currency; they spend their money, make investments, buy businesses and lands.
And that wealth would be difficult to ignore, and difficult to refuse to honor.
On the
other hand, there's opportunity. If we made full use of the land which is currently not being used, then we would be able to use it, and own it if we wish, and produce as much as we want on our own property. And we wouldn't have to pay anyone else any portion of what we create on our own property, or pay anyone a portion of what we earn on that property. If we did, then we would not be true owners of the land. It is a large planet, and it might be possible to live alongside the wealthy without disturbing their property and property claims.
On the other hand, royal families are inter-related, and own such vast amounts of wealth, that it's not just business properties and lands that they own, it's entire countries, banks, and whole industries.
It's one thing to ask “What would I do if I had all the money in the world?”; but it's another to ask “What would I do if money were no longer necessary to get the things I need and want?”. Just as currency is a substitute for money, and money as we know it is a substitute for a real piece of property that is a store of value, money and currency alike are both substitutes for credit. If we had universal access to credit, then nobody would be able to deny anyone service on account of inability to pay. At the grocery store, at the hospital, wherever. I believe that such a scenario would help create a market system which is totally free from barriers to trade, like nothing we've ever seen before.
On the other hand, royal families are inter-related, and own such vast amounts of wealth, that it's not just business properties and lands that they own, it's entire countries, banks, and whole industries.
It's one thing to ask “What would I do if I had all the money in the world?”; but it's another to ask “What would I do if money were no longer necessary to get the things I need and want?”. Just as currency is a substitute for money, and money as we know it is a substitute for a real piece of property that is a store of value, money and currency alike are both substitutes for credit. If we had universal access to credit, then nobody would be able to deny anyone service on account of inability to pay. At the grocery store, at the hospital, wherever. I believe that such a scenario would help create a market system which is totally free from barriers to trade, like nothing we've ever seen before.
That's why currency
as we know it, not only does not need to exist; it certainly doesn't
need to be issued by one central government.
So the
federal government monopolizing currency or money is not desirable. That means
the treasury function of the federal government is out.
Now remind
me again why I can trust my government to protect and defend me, instead of just
stir-up enemies to keep me afraid? Why, when the Supreme Court ruled in the
case of Warren v. District of Columbia, that the police have no duty to protect
me outside of a private contract, should I trust the police to defend me? Much
less “monopolize the use of force”, which really just means I have no right to
defend myself or carry a gun unless I pay them. Good! We're off to a great
start with the idea of security and defense protection being the primary
function of government.
Property
protection! We need the police to protect property, because we know that they
damn sure have no responsibility to protect people! Ironically, the
public police protect property, while private security guards protect people.
It's absurd.
Some
Libertarians believe that a person can outsource the responsibility to defend
himself. Someone else can defend you, but that is not self-defense,
that's defense. But aside from that, there is no reason, for the average person
who has not paid the police (and especially not one who hasn't paid
taxes), nobody can reasonably expect that the police or military, who
supposedly protect him, will come to his aid. And within a reasonable and
prompt time frame? Forget about it.
But
courts! We have to have courts, or where else are we going to prosecute all the
people who stole the overproduced things that exploded everywhere when the
engine of American productivity was unleashed from beneath the burden of
misguided and punitive taxation?
The state
is not necessary to maintain courts. If the average citizen understood his
rights, and the Constitution, and what a pro se defense is, and what corpus
delicti means, and what rights juries have, and what the rights of the
accused are, then professional attorneys would either be much fewer in number,
or else lawyering as a profession would cease to exist.
Reforming
attorney licensing is not even a solution, because while it pretends to solve
the Bar Association's monopoly, it will only end up restricting the rights of
people to defend themselves without law licenses.
If we had
a truly voluntary society, then there would be no victimless crime laws, and no
prosecution for crimes against the public. More cases – and hopefully,
eventually, all cases – could be settled out of court, through private
arbitration. Perhaps civil law as we know it would even cease to exist,
or become solely a matter of precedent. Individuals would rely more on
non-state-affiliated actors and firms to enforce the terms of their contracts,
and mutually acceptable arbitrators to resolve their disputes with others.
Judicial
precedent could come to replace legislation (and executive fiat) as the primary
sources of law, set by “judges” acting as ordinary people who are trusted
equally by both or all parties to a dispute. Reputable firms, not operating
for profit, could hire responsible, well-trained “bounty hunters” to
apprehend fugitives from justice, and do so safely, and without provoking them
or using excessive or unnecessary force.
It would
be a completely stateless legal system. So why do we need the government to
maintain a system of justice?
Do I even
need to ask why the federal government shouldn't establish post roads?
The
Constitution authorizes Post Offices, but did not claim to authorize the
monopolization of mail delivery services. Government used to monopolize mail
service, it doesn't anymore, and that it has allowed competition against itself
is a good thing.
However,
it is also a mere concession for a system that is otherwise thoroughly bad, and
should therefore not be appreciated. Even though the U.S. mail service no
longer monopolizes mail delivery - and it is mostly a fee-for-service,
user-fee-based system - it is bankrupt.
Additionally,
the authority vested in the Post Office in the Constitution did not
authorize the creation of “post roads”; only their designation.
This is a major reason why the federal government's role has so far overstepped
its constitutional boundaries; many people's first question about a
stateless society is “Who would build the roads?” This question, and the extent
of libertarians' difficulty in answering it, have invited countless usurpations
of our freedoms, all in the name of maintaining a well-connected modern society
with a good highway system.
...With
suburban sprawl designed to waste land as much as possible, and a highway
system that the American military can easily use its tanks to track us all down
using our convenient mailboxes and its register of all our addresses.
Did I
mention drones and hoverboards? Automatic brick laying machines? Graveyards
full of cars and planes that could be easily repaired and brought to market, or
else given away?
Just a few
short decades after the Revolutionary War, New Hampshire allowed people to avoid
paying taxes by agreeing to donate labor to public works; specifically, to
build roads. That's not only a solution to transportation, it’s an alternative
to taxation and jail, and maybe also mandatory
civilian national service (depending on how you look at it).
So why do
we need government?
Presumably,
all this development of our public works has to end some day, right? I sure
hope so. It would be nice if all of our legislators, and soldiers, and police,
could go home to their families, and protect their own homes for once
(if our legislators can choose one residence, that is).
The
original idea of our Constitution was that it was a compact, binding all who
agree to it into a mutual trust. In the founding document of the country, the
Declaration of Independence, the founders stated that they mutually pledged to
each other their lives, their fortunes, and their sacred honor. To pledge to
protect one another's lives and fortunes, was a pledge to protect each other
and each other's property in the Revolutionary War, and during the peace to
come afterwards.
I do
not want to protect somebody else's property. Anyone who works as a private
security guard, a police officer, or as military personnel – myself included –
has, at some point, asked to himself “Why am I protecting somebody else's
property? Who's at home defending my house and my family? Why don't they pay me
to just go home?”
For that
matter, why don't we simply pay politicians to go home, stay home, and
leave us the Hell alone? If they don't bother our families, or try to tax our
houses, then we won't either. Forgive us our trespasses as we forgive those who
trespass against us, for once.
None of
this ranting about the evils of government should cause us to forget that the
Constitution is not supposed to be compulsory in the first place. It's only
because of the Act of 1871 concerning the District of Columbia, and the 14th
Amendment, and the laws concerning congressional apportionment, that we have
been tricked into electing to become subjects of the federal government.
The feds know that most citizens are so angry at it, that they can't resist the
temptation to challenge its usurpations, even if that requires agreeing to
concede to all of its decisions in the first place.
Why do we
need government? The answer is: We don't.TM
Part II, Chapter 7: Balancing the Budget and Paying Off the
National Debt
Now that
we know government is not only unnecessary but evil... oh wait, did I forget to
mention that U.S. soldiers and security contractors raped women and children in
Vietnam, Iraq, and Afghanistan, with the help of good old American taxpayer
money? Oh well...
Now that
we know that we don't need government, we can come up with a way to balance the
budget without any fear that we'll remove any essential government
functions (again, because there are none).
So how do
we pay off a $21 trillion national debt? First off, let's assume it's $20 for
the sake of convenience and rounding. Also suppose that the GDP, which is close
to $20 trillion, is exactly $20 trillion.
One way to
pay off the debt would be to pay it all off at once, in the same year. It could
theoretically be done, but it would requiring 100% of the Gross Domestic
Product; all of the wealth created in the country in one year. But it
would be paid off, and it would be paid off forever.
Of course,
that would have catastrophic effects on the economy; many people would
die. So the debt has to be paid off slowly. Why not, for example, pay it off
over 20 years, to the tune of one trillion dollars a year?
You might
think that's impossible; but all it would take is 1) the political courage and
resolve to get both major parties to agree to pay the debt off, simply
because it has to be done, and that it will be done in equal installments over
20 years, and 2) a budget that takes in one trillion dollars more than it
spends every year.
Now, there
are a number of ways to do that. The federal government currently spends $4
trillion a year, and takes in roughly $3.6 trillion a year. Now suppose that it
spent $4 trillion, and took in $5 trillion a year. Or that it spent $3
trillion, and took in $4 trillion. See what I'm getting at?
There are infinite
solutions to this problem. A federal government that spends $2 trillion a year
would only have to take in $3 trillion a year, and our government has already
demonstrated that it has the ability to take in $3.6 trillion. Paying one
trillion dollars off per year, would mean that we could still afford a $2.6
trillion budget with current federal revenues.
But we can
keep going! We could also have the federal government do nothing,
while taking in a trillion dollars a year. Granted, that would be hard to
justify, since the taxpayers wouldn't be receiving any services, but maybe by
then, people would care more about the fact that our creditors – like China,
Japan, and the Federal Reserve – won't be coming after us anymore when the debt
is all paid off.
A few
simple balanced budget measures – like PAYGO, or a law that makes all spending
discretionary, or a Balanced Budget Amendment to the Constitution – could
provide reassurances to our creditors, and to other countries, that the United
States economy is back on track, and can realistically pay back the
astronomical debts it has incurred.
And
perhaps the best thing about this proposal – at least as far as reformists and
big-government types are concerned - is that the size of the government does
not have to shrink during this upcoming twenty-year period. The government
can be any size – even hundreds of trillions of dollars - as long as it
sticks to the plan of paying one trillion dollars off per year, by taking in
one trillion more than it spends.
Although I
would not recommend that, due to the reasons cited above.
Written on December 27th through 30th, 2018, and January 7th through 8th, 2019
Published on January 8th, 2019
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