Are the working class laborers being systematically exploited by managers and white collar workers? Is it the case that white collar workers are making money at the expense of blue collar workers, or is there a better explanation?

Value Does Not Come From Labor

If labor created value, then society (and all of its members) could get rich by having everyone use their bare hands to dig large holes in the desert and then fill them back up. After all, this would be extremely hard work of a very physical nature. However, this would create no wealth for society—in fact, it would represent a destruction of wealth (imagine what the laborers could have actually produced if they were not hired to complete this task).  Generally, this destruction of wealth takes place in the form of an absence of economic activity which would have otherwise occurred.

The value of a product does not come solely from the labor of the workers. The value of a product is measured subjectively; a product is essentially worth what people are willing to pay for it.

A laborer in turn receives payment for his services based on the value that his work adds to the product or service. A janitor in a shoe factory adds relatively little value to the shoes that are being created. There is likely more value being added by the designer who designs the shoes, by the worker who sews the shoes together, and by the person who manages the distribution network which allows for the shoes to be sold in thousands of stores around the world. These workers add more value to the product, despite the fact that the janitor undoubtedly exerts more physical effort to do his job.

Scarcity

While value added by workers is an important reason for the existence of disparities in income, scarcity tells much more of the story.

As Thomas Sowell put it, economics is the allocation of scarce resources which have alternative uses. With the exception of air, just about all resources are scarce. Similarly, nearly all resources have alternative uses (should this rubber be used to make tires or shoes?, should this glass be used to make a window or a beer bottle?, should my time be spent watching a movie or cleaning the house?).

Scarcity doesnt just mean that there isnt a lot of a certain good. Scarcity means that the good is limited. Even in America, bread is a scarce resource.

Diamonds and Water

Think of diamonds and water. Which of the two resources is absolutely essential to life, and which could we live without? Water is infinitely important: without water we will all die very quickly. Diamonds are nice and sparkly and women love them, but they are hardly essential to our lives. However, water is very cheap and diamonds are very expensive. This phenomenon is known as the “diamond/water” paradox. The reason for the differences in the costs of these goods is scarcity; water is abundant, while diamonds are scarce.

For example, I live in unincorporated DeKalb County [in Georgia] where my water is provided by a government monopoly (and hence is likely more expensive than would be the case under a free market system). Yet, the monthly bill for my 3 bedroom house has averaged $61.17 per month since April of 2007. In other words, over the past 4 years, it has cost about two dollars per day to provide the 2-3 people living in my house at various times with the most important resource that we need for survival. In fact, water is so cheap that I can do more than just use it for survival needs—I use it for showering, cooking, watering my plants, and even brewing beer.

What does this have to do with janitors and CEO’s?

Well, the same principles which lead to the diamond/water paradox also apply to compensation for labor. Please keep in mind that my intent is not to belittle the work that janitors do. I know that this type of work is physically demanding and dirty work. However, there is little skill involved and little intelligence required. The fact of the matter is that nearly every able-bodied person above the age of 13 or so is probably qualified to be a janitor. In contrast, there are only a very limited number of people who have the intelligence, experience, and ability necessary to be a successful CEO of Coca-Cola. Janitors are replaceable and easily trained. High-level executives are not. In other words, the pool of available janitors is relatively unscarce when compared to the pool of available CEO’s of Fortune 100 companies.

Bringing it all together

Disparities in income are hardly the result of exploitation by the white collar class against blue collar workers or the working poor. Compensation results from several factors including the value added by the worker, as well as the relative scarcity of the pool of workers available to fill that position.

There is no Federally mandated wage scale requiring certain salaries for certain types of workers. Decisions on how to pay employees—be they janitors, CEO’s, or something in between—are generally made on a company by company basis. Those in the position to hire janitors will pay them according to the value that they believe will be added to the firm. They will likely tend to pay the janitor at levels similar to that of other janitors in related fields. This is because a janitor is likely to add similar levels of value at which ever company he works. The range of compensation for CEO’s is very large, with CEO’s of smaller companies earning drastically less than do CEO’s at large multi-national firms. This is because of the differences in the amount of value that can be added by different CEO’s in different fields at different companies. The CEO of Wal-Mart is responsible for running a worldwide distribution network, ensuring that over a million employees get paid, and in a broader sense—ensuring that society is fed and clothed. In contrast, the CEO of a small but delicious pizza chain has responsibilities which are much greater than his employees, but which do not compare to that of the CEO of Wal-Mart.

Ceteris Peribus

This article does not deal with things like corporate welfare or other special privileges which are often received by corporations from the State. While special privileges will likely skew the distribution of income away from the bottom of the and towards the top, the principles at hand do not change. In a truly free society with no governmental grants of limited liability, no business licensing requirements, corporate welfare, and private control of the currency, income is likely to be somewhat more evenly distributed among the productive members of society. However, as long as there is any level of freedom of choice, there will always be disparities in income.  Income disparities are not always bad–in fact, they are very important.  Differences in income give us something to strive for.  If we all earned the same wages, no matter how hard we worked, no matter how much value we added to society, and no matter what type of work we did, no matter our ages, or no matter how much experience we had, there would be little reason for people to put much effort into their jobs.  There would be little incentive for anyone to be productive beyond the subsistence level–after all, any additional effort that they did would have to be shared equally with all of society.  If we were all the exact same, there would be no reason for trade, or even for society to exist.  It is our differences which encourage people to interact and trade with each other.  No society larger than a small tribe could survive for long if wages were distributed equally.

As long as there are people with different skills, levels of intelligence, backgrounds, lifestyles, and so on, there will be differences in income. People are different from each other, and as such, will seek out different goods and services. They will also find themselves qualified for different types of employment than their friends and neighbors. Typically, those who are employed in positions that create a lot of value and are relatively scarce will earn higher incomes than those who are employed in positions that create little value and are relatively common.

Americanly Yours,

Phred Barnet

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The non-aggression principle is the idea that no matter how disgusting, immoral, or improper you believe an act to be, you have no right to use force to stop someone from committing that act, unless that act itself involves the initiation of force against another person (or person’s property).

The principle is simple and straight forward; it is wrong to initiate force against another person or group of people. This is by no means a passive or pacifist doctrine; it is absolutely permissible to use force in response to force, in order to protect or defend one’s person or property, to enforce a contract, or punish someone for failure to adhere to the terms of a contract.

However, it is not permissible to use force to attack your neighbor, steal another person’s property, or stop someone from using their justly acquired property in a manner that does not aggress upon another individual.

The non-aggression principle has been stated and restated from ancient times to John Locke ["Being all equal and independent, no one ought to harm another in his life, health, liberty, or possessions"] to Ben Harper ["My choice is what I choose to do, and if I'm causing no harm, it shouldnt bother you. Your choice is who you choose to be and if you're causing no harm, then youre all right with me"].

By applying the non-aggression principle to all aspects of life, a just and coherent philosophy of non-interventionism becomes clear: if no one is being harmed besides those people voluntarily engaged in the act, leave it alone. It is that simple. You dont have to like or respect or engage in prostitution, homosexual relations, religion, or the use of drugs, alcohol, tobacco, etc, but you do not have the right to stop any adult from engaging in any of these acts.

The non-aggression principle is a very important part of the natural rights philosophy.

Every person is the owner of their own body and has the right to do with their body as the see fit.  People can also acquire property by using one of three different methods: homesteading, voluntary exchange, and theft.  Homesteading involves taking unowned resources and improving them, while voluntary exchange involves the unforced transfer of resources from a person (or persons) to another person (or persons).  Both of these two methods are fully consistent with the non-aggression principle–by definition, neither homesteading or voluntary exchange involves the initiation of force.

When the non-aggression principle is violated, property is acquired in the third method: theft. Physical acts of violence or threats of violence against others are violations of a person’s right to self ownership.

Even if one rejects the doctrine of natural rights in favor of a utilitarian (ie, the common good) view, the non-aggression principle is still important.

Man is a social animal. For the most part, we seek to engage in activities which promote the social benefit. Activities which violate the non-aggression principle tend to disrupt the peace by inviting violent retaliation. For example, if I kill or harm a member of your family (or attempt to do so), you are likely to respond by seeking revenge on me. These types of feuds can spiral out of control and disrupt the peaceful cooperation on which society depends. The best way to keep the peace that is essential to the existence of society, is to adhere to the non-aggression principle.

Thus, whether you subscribe to natural rights theories or whether you support some sort of utilitarian view, it is in the best interests of both individuals and society that people adhere to the non-aggression principle.

As we have seen, violations of the non-aggression principle which are committed by individuals can disrupt the peace. However, violations of the non-aggression principle committed by the government are infinitely more eggregious. This is because the government grants itself the power to do things that no individual could ever be permitted to do.

Only the government (or those under the protection of the government) can confiscate money from people without their permission and give it to other people and call it “public policy.” Government redistribution of wealth and granting of special privileges is aggression because it prevents people from using their own property in a peaceful manner of their choosing.

Only the government can commit mass murder against civilians and call it a “defensive war.” A bombing campaign in a densely populated civilian area which results in civilian deaths is murder; it doesnt matter if the bombing was done by a rogue terrorist or by an Air Force member acting under order from the President. Murder is murder. It doesnt matter who does it.

Only the government can throw human beings in cages which are kept in horrible conditions for the “crime” of recreationally smoking a plant in their own home. Smoking marijuana on your couch does not violate the non-aggression principle; raiding someone’s house and confiscating their marijuana does.

It is essentially impossible for government to act without violating the non-aggression principle. This is because mandatory taxation is coercion, theft, and extortion. All of these acts violate the non-aggression principle. Taking people’s money without their permission is theft. Any business regulation, permit requirement, governmental zoning restriction, anti-drug law, restriction of consensual acts deemed to be “immoral,” etc. are violations of the non-aggression principle because they prevent people from using their justly acquired resources in a peaceful manner of their choosing.

Every government act involves a violation of the non-aggression principle. For, even when government is acting to stop one person from aggressing against another, it is doing so using resources that have been obtained via theft. When you violate the non-aggression principle, your actions may be devastating and cause harm, but they are limited by the amount of damage that one person can cause with whatever resources that you have available to use. However, when the government violates the non-aggression principle, it does so with other people’s money subject only to how much damage it can inflict before enough people get angry enough to either withdraw support or threaten revolution. It also does so under the guise of legality. But intelligent people know that an unjust law is no law at all.

Thus, the only way for government to act without aggressing on the rights of its citizens by violating the non-aggression principle would be for the government to set the exact policies that each individual would choose on their own and rely on truly voluntary donations to do so. In other words, the government’s best option is to do nothing at all.

In the words of the French economist, Anne-Robert-Jacques Turgot:

“The policy to pursue, therefore, is to follow the course of nature, without pretending to direct it. For, in order to direct trade and commerce it would be necessary to be able to have knowledge of all of the variations of needs, interests, and human industry in such detail as is physically impossible to obtain even by the most able, active, and circumstantial government. And even if a government did possess such a multitude of detailed knowledge, the result would be to let things go precisely as they do of themselves, by the sole action of the interests of men prompted by free competition.”

This isnt just the stuff of libertarian philosophers. The rapper Lil’ Jon famously uttered the phrase “Don’t start no shit, it won’t be no shit!”

This concept is remarkably simple: do not initiate the use of force against another person. Respect their right to engage in peaceful activities on their own property in any manner that they see fit.

Americanly Yours,

Phred Barnet

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There are three methods of acquiring property: homesteading, voluntary exchange, and theft.   The first two methods are just, while theft is inherently unjust.  Taxation involves taking things without permission and must be classified as theft.

However, before deciding on whether or not taxation should be considered theft, the term “taxation” must be defined. I will define taxation as “a government mandated extraction of resources from individuals and/or groups, paid to support the aims of the government.”

The phrase, “mandatory extraction” is the key to understanding why taxation is theft. A mandatory extraction, by nature, is taken through the use of force or coercion, and not paid voluntarily.

Theft is always theft, regardless of who does the theft, how the theft occurs, and what excuses the thief makes to “justify” the theft.  The ONLY exception to this statement is when things are taken as restitution for a prior wrong (for example, if you stole $100 from a person, a court would be justified in taking $100 from you without your permission to repay the victim).

Before I go on, I must address a question that I will surely be asked by many readers: arent taxes special because they are taken by the government in order to provide people with their basic needs?

The answer to this question is a flat NO!

People have certain inalienable rights which should never be violated. It would be wrong of me to kill you, rob you, or physically harm you. Governments are made up of people, and are often created by people to secure their rights. Because governments are made up only of people, governments cannot have any rights that people themselves do not have. It simply does not make sense for this to be untrue. Rights are rights, people are people. Any claims that the government has more rights than anyone else is arguing that some people (the populace) should be considered inferior and subordinate to others (the government).

Taxation involves taking property from people without their consent; taxation is theft.

To quote myself: “If a man with a gun were to demand that unless you pay him 1/3 of your income he would lock you in a cage, he would be guilty of initiating the use of force with the intent of committing theft. It would not matter if the man promised to use this money to pay for a school for your children, for a new highway, or for a missile defense program. Taking things from a person without their permission is, by definition, theft.  Silver-tongued rhetoric may be employed to obscure this fact, but it cannot change it.

Taking something from another person without their permission is always theft and should be condemned as theft. It does not matter what the “reason” or “justification” for this action is.  It does not matter who committed this theft, what was stolen, or how many people told the aggressor to act.”

Examples of taxation as theft

Some of the taxes described below are not traditionally thought of as taxes, but they are taxes—they all meet the above definition of being a government mandated extractions for the purposess of supporting the aims of the government.

A government imposed minimum wage law prevents a person (a sovereign owner of him or herself) from selling their labor to a potential buyer at a mutually agreed upon price. This is theft of a laborer’s future earnings.

A government imposed ban on the sale of alcohol on Sunday prevents a person from selling their justly acquired resources to an individual willing to purchase them. This is theft of profits.

A government imposed business regulation prevents a business from using its justly acquired resources in the manner that it sees fit.  This is theft as well.

A mandatory income tax, imposed under penalty of imprisonment, enforced by men with guns is theft of the fruits of one’s labor. Stealing one’s labor is called slavery. A mandatory income tax makes the government a middle man in all labor transactions, and allows them to claim ownership of property that they did not justly acquire.

A mandatory property tax, imposed under penalty of imprisonment, enforced by men with guns is, by definition, a violation of property rights, and therefore is theft—no explanation should be necessary to prove this. But… property taxes are fees on products that have already been paid for. They are levied on the owner of a property. A mandatory fee on residents for the continued use of their own house is no different than the government charging a person rent to stay on their own property. Remember, a person who justly acquires property becomes the owner of that property, but if a person has to pay the government rent to occupy their own property, who is the real owner of the property, the homeowner, or the government?

A mandatory sales tax, imposed under penalty of imprisonment, enforced by men with guns is theft as well. A mandatory sales tax makes the government a middle man in all retail transactions, and allows them to claim ownership of property that they did not justly acquire. Sure, they can argue that sales taxes are imposed in order to pay for police, but this does not change the fact that this money was acquired through theft, and not through voluntary means. The mafia also forces businesses to pay a protection fee.

I would love to hear your comments on this article, but please dont post a comment or send me an email that says “taxes are necessary because without them, the government could not provide services.” I have addressed this above: taking money from someone without their persmission and then using that money to buy they something that they may or may not want is still taking something without permission [theft].

Please do not send me a message or post a comment telling me that taxation is “voluntary” and not theft because if I disagree with the taxes, I can move somewhere else. When it comes to taxes, we have three choices: paying a tax, or refusing to pay the tax and being arrested by men with guns and then locked in a cage, or leaving one’s family, friends, and property behind to search for a society that does not employ mandatory taxation. This fact should make it clear that taxation is not voluntary. A person who uses coercion to force another person to give up some of their property under threat of violence is guilty of extortion. Governments can have no rights that people do not have, and are therefore just as guilty of extortion as would be a person who acted in this manner.

Furthermore, the argument that if a person does not want to pay taxes, they can renounce their citizenship and leave the US to avoid taxes is false.  The US government does levy a tax on people who give up citizenship:

“Expatriation on or after June 17, 2008, may cause an expatriate to be subject to IRC § 877A, which was enacted as part of the Heroes Earnings Assistance and Relief Tax Act (HEART) Act of 2008. Generally, IRC § 877A imposes income tax on the net unrealized gain on property held by certain U.S. citizens or green card holders who terminate their US residency as if their worldwide property had been sold for its fair market value on the day before the expatriation or residency termination (mark-to-market tax). The Treasury Department and IRS have authority to issue regulations under IRC § 877A so further guidance is expected soon, though it has not been released yet.”

Finally, please do not send me a message or post a comment asking how things like schools, roads, or even national defense could be paid for without mandatory taxation. There exists a long history of voluntary provision of all these goods and services (check out this book for more information).

Furthermore, these items could be provided for through taxation in a purely voluntary manner if people were allowed to exercise their natural right to free association and choose their own government. Under voluntary government, taxation could no longer be considered theft, as those who did not wish to pay a tax could simply drop out of one government and sign a contract with another government.

Economist Walter Block argues that under voluntary government, one would have “the right to stay put, on one’s own property, and either to shift alliance to another political entity, or to set up shop as a sovereign on one’s own account.”

Governmental services can be provided on the free market as can any other service; a government would agree to provide certain services (possibly protection, roads, health care, or whatever) in exchange for a fee from a citizen. Thus, the citizen would be paying a purely voluntary tax.

In contrast to voluntary, contractual government, our government does not allow citizens to withdraw their support from the State.  It levies taxes on people without their consent.  These non-consensual taxes must be recognized and exposed for what they are: THEFT.

Americanly Yours,

Phred Barnet

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Self Ownership

Before understanding man’s ability to own other objects, one must understand man’s ownership of himself (or herself).

Each human being is the sovereign owner of him or herself.  While this conclusion seems fairly obvious, we can arrive at it several ways. I will focus on the method used by Murray Rothbard and others below because I think that it is the easiest method for the common person to understand. For a more detailed and completely different approach, take a look at Ludwig von Mises’ “action axiom,” and Hans-Hermann-Hoppe’s “theory of argumentation.”  This piece by Gennady Stolyarov II also summarizes the point as well.

One way to prove self-ownership is by assessing three possibilities of who owns a person: that everyone in the world owns fractions of everyone else in the world, that some group of elites own everyone else, or that every person owns him or herself.

The first such possibility is that everybody has an equal claim to ownership over everyone else.  Murray Rothbard (page 36) explained that this scenario

“holds that every man should have the right to own his equal quotal share of everyone else. If there are two billion people in the world, then everyone has the right to own one two-billionth of every other person. In the first place, we can state that this ideal rests on an absurdity: proclaiming that every man is entitled to own a part of everyone
else, yet is not entitled to own himself. Secondly, we can picture the viability of such a world: a world in which no man is free to take any action whatever without prior approval or indeed command by everyone else in society. It should be clear that in that sort of. . .  world, no one would be able to do anything, and the human race would quickly perish.”

Thus, we are able to reject any notion that people can be co-owners of each other. Seeing that it is impossible for humans to all own equal shares in each other, we must now examine the notion that one group of people owns all of the rest of the people (page 28).

“a certain class of people, A, have the right to own another class, B…. Th[is] alternative implies that while Class A deserves the rights of being human, Class B is in reality subhuman and therefore deserves no such rights. But since they are indeed human beings, th[is] alternative contradicts itself in denying natural human rights to one set of humans. Moreover, as we shall see, allowing Class A to own Class B means that the former is allowed to exploit, and therefore to live parasitically, at the expense of the latter. But this parasitism itself violates the basic economic requirement for life: production and exchange.”

Thus, we are left with our third option, that every human is the sovereign owner of him or herself.

Acquiring Property

Property can be acquired in three different ways–two of the methods are just, while the third is unjust.

Homesteading

The concept of acquiring property through homesteading has a long philosophical tradition.  In 1690, John Locke famously wrote (page 71):

“Though the earth and all inferior creatures be common to all men, yet every man has a “property” in his own “person.” This nobody has any right to but himself. The “labour” of his body and the “work” of his hands, we may say, are properly his. Whatsoever, then, he removes out of the state that Nature hath provided and left it in, he hath mixed his labour with it, and joined to it something that is his own, and thereby makes it his property.  It being by him removed from the common state nature has placed it in, it has by his labor something added to it that excludes the common right of other men. For this labor being the unquestionable property of the laborer, no man but he can have a right to what that is once joined to…”

Under homesteading, a person who improves or makes use of a natural resource becomes the owner of that resource.  For example, if a person landed on an uninhabited island, and picked an apple off of a tree would become the obvious owner of that apple.  No one else could rightfully claim ownership to the apple.  Similarly, if this man were to cut down several trees on the island and use the lumber to build a home, this home and the land surrounding it would become his property.

Homesteading has its limits–one must improve or change the resource to be considered a just owner of that property.  For example, if a man were to simple build a large fence around an area the size of Texas, he could not seriously claim to be the owner of all land inside of the fence.  Similarly, if I were to claim ownership of the planet Saturn, I would be ridiculed, and when the time came that humans visited Saturn, my descendants could not expect to collect rent from these astronauts.

Murray Rothbard explains this concept (page 170):

“If Columbus lands on a new continent, is it legitimate for him to proclaim all the new continent his own, or even that sector ‘as far as his eye can see’? Clearly, this would not be the case in the free society that we are postulating. Columbus or Crusoe would have to use the land, to ‘cultivate’ it in some way, before he could be asserted to own it…. If there is more land than can be used by a limited labor supply, then the unused land must simply remain unowned until a first user arrives on the scene. Any attempt to claim a new resource that someone does not use would have to be considered invasive of the property right of whoever the first user will turn out to be.”

Voluntary Exchange

Under voluntary exchange, a person can trade any of their justly acquired resources with another person in exchange for some of that person’s justly acquired resources.  For example, the man above who took an apple off of an unowned apple tree could trade his apple with another person for a product of that person’s, as long as the trade was voluntary.

This right also derives from the right of self-ownership.  I own myself and I may sell my labor to another person for a wage or a product (I could sell 8 hours per day of my time to an employer for a fixed rate of $10 per hour).  At the end of the day, I now own the $80 (meaning that the employer no longer has any claim to this money), which I am able to trade with a different merchant for some of his products.

Thus, any resources which are acquired justly can be traded for any other resources that are acquired justly.  In completing such a transaction, original owners must completely give up their right to the property that they have sold.

Theft

Theft is taking things by force (including fraud or threat of violence).  Theft is immoral and unjust, and one who acquires resources by theft should not be considered to be the legitimate owner of that resource.

If I were to take $10 from a person without their permission, it is obvious that I have stolen from them.  If this person is paid $10 per hour by their employer for their labor, I have effectively stolen an hour of this person’s life.

Similarly, if a food merchant were to market a meal as “non fat,” knowing that the meal contained 10 grams of fat, he would have acquired the money from that trade through fraud. Thus, the person who purchased the meal would have a strong claim against the merchant and should be entitled to receive a refund or some form of compensation.

Additionally, if a man with a gun were to demand that unless you pay him 1/3 of your income he would lock you in a cage, he would be guilty of initiating the use of force with the intent of committing theft. It would not matter if the man promised to use this money to pay for a school for your children, for a new highway, or for a missile defense program. Taking things from a person without their permission is, by definition, theft.  Silver-tongued rhetoric may be employed to obscure this fact, but it cannot change it.

Taking something from another person without their permission is always theft and should be condemned as theft. It does not matter what the “reason” or “justification” for this action is.  It does not matter who committed this theft, what was stolen, or how many people told the aggressor to act.

People often use majority support as a justification for  increases in taxes, large new social programs, war, and government debt because “the people overwhelmingly support them.”

Rothbard (Pages 57-58) shoots this idea down as well.

“even if 90% of the people decided to murder or enslave the, other 10%, this would still be murder and slavery, and would not be voluntary suicide or enslavement on the part of the oppressed minority. Crime is crime, aggression against rights is aggression, no matter how many citizens agree to the oppression.  There is nothing sacrosanct about the majority; the lynch mob, too, is the majority in its own domain.”

Unfortunately, our current system does not always respect private property rights.   Remember, that property rights are inviolable, and that action taken against a person’s property without their permission is aggression.  It is a sad fact that property rights (often including the right to self ownership) are regularly discarded by the very government which was instituted to protect our liberties.

Also, check out this video for a great explanation of private property.

Americanly Yours,

Phred Barnet

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The attacks from fiscal hawks (myself included) have been relentless.  But, what is becoming increasingly more common is to hear attacks on the President’s economic policies from the left.

I wrote earlier that Nobel Prize winning economist Joseph Stiglitz criticized the bailouts and argued that the type of government intervention proposed by President Obama could lower our standards of living for the next 20 years.  As I mentioned in that previous article, Joseph Stiglitz has advised both President Clinton and President Obama.  Interestingly enough, Joseph Stiglitz is a liberal who has been very critical of the free market and free market economists in the past.

Dr. Stiglitz is hardly the only liberal economist to criticize President Obama’s economic policies.  In fact, he is not even the only liberal Nobel Prize winning economist to criticize the President’s economic policies.  Recently, 2008 Nobel Prize in economics winner Paul Krugman has become a vocal critic of President Obama’s economic policies.

Paul Krugman is very much a liberal economist.  He is a strong advocate of European style “social democracy” as well as welfare programs, and the welfare state.  He even said of the welfare state:  “I was then and still am an unabashed defender of the welfare state, which I regard as the most decent social arrangement yet devised.”

I dont agree with Krugman’s proposed solution–a nationalization of the banking industry, but I do agree that Mr. Obama’s plans will hurt the economy and the country in the long run and that his plans are the wrong way to go.  Here are a few articles written by Mr. Krugman criticizing the Administration’s plans.

2/22/09

3/8/09

3/29/09

In one of my classes this semester [right before the passage of the "stimulus" bill], we had a guest speaker who was a labor economist who eventually became an Assistant Secretary of Labor under President Jimmy Carter.  This man was very critical of Reagan, Republicans, and conservatives in general.  However, he came out strongly against the “stimulus” plan.  He complained that it was very expensive, that it was spending money too slow, and that it was spending money on things that wouldnt lead to job creation or real stimulus of the economy.  A similar argument can be found in this writing by Robert Samuelson.

As I said above, you can expect conservative and libertarian economists to oppose the President’s economic plans.  However, it is somewhat disturbing when prominent (Nobel Prize) winning liberal economists begin criticizing the President’s economic policies.  Even supporter Warren Buffet has criticized the President’s plans.  These liberal critics of the President’s policies, combined with the conservative and libertarian critics leads to an important question:  are there any prominent economists who are not a part of this administration who support President Obama’s economic policies?  I have yet to hear from any.

Americanly Yours,

Phred Barnet

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The big news is the “stimulus” package that is about to be passed whether or not the American people want it to.

My friend Art sent me this article from the Wall Street Journal which talks about what all is included in the “stimulus.”  It is pretty ridiculous.

But on top of this, there are are some truly outrageous things in the bill.  Under the terms of the bill, illegal immigrants who have been working in this country illegally will be able to get a tax rebate check of $500 per person.  Seriously.

This bill also gives money to dairy farmers to take their dairy cows out of production in order to raise the price of milk and create a greater profit for the dairy industry.  This type of government intervention is not only wrong, it is very dangerous.  Remember that less that a year ago, there was a global “food crisis” going on in which hundreds of millions (if not billions) of people were on the verge of starving.  By paying farmers to not produce food and drink, our government is playing a very dangerous game.  But this is not a game.  This is real life.  If government intervention causes the price of food to go up, people could actually die.

Here is an interesting article from CNN that was sent to me by two of my friends, Squeak and Hawk (yes, I have a friend named Squeak and a friend named Hawk).  This talks about solutions that Libertarians have come up with to address the current [government manufactured] crisis.  I dont support all of them and there are at least two that I completely disagree with, but they are all better than what we are going to end up spending the money on.

I want to write more, but this is getting to be too long.  Ill have an article for yall tomorrow.

Americanly Yours,

Phred Barnet

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Since the election, however, a wave of bailouts has swept aside our Capitalist system and has moved us towards a socialist system in which the government owns and directs the economic activities of large corporations. The government’s reaction to the recent economic crisis (which I blame on government intervention in the first place) has hardened my non-interventionist views.

I decided to join the Libertarian Party after these bailouts convinced me that I could not support the Democrats or the Republicans. I began looking at the party platforms for different parties and found that I agreed with most of the Libertarian Party’s platform. Sure, there are major areas where I disagree with them, but I feel great about joining the Libertarian Party.

Why did I join the Libertarian Party you ask? Well…

Who stood up to Republicans and opposed the Patriot Act?

Who stood up to Bush and defended the 4th Amendment to our Constitution after details of Bush’s warrantless wiretap program were revealed?

Who has stood up against the efforts of the Democratic Party to take away the rights given to Americans by the 2nd Amendment?

Who has opposed every government bailout?

Who has opposed the increasing governmental control over every part of your personal life, from how you educate your children, to what types of cars you drive, to what type of energy you use to heat your home?

Who has fought for the right of ailing patients to be allowed to use medicinal marijuana to soothe their pain?

Who has fought for an end to the immoral system of taxing human labor, investment, savings, and entrepreneurial activity?

Who is the only party that defends the Constitution, as written?

Who is the only party that promises to cut the fat from our bloated bureaucracy?

With both parties turning toward bailouts and excessive regulation, who is the only party left still advocating Capitalism?

Which party is a staunch supporter of Free Trade, knowing that it is the best way to create jobs, economic growth, and save consumers the most money?

And which party holds the fundamental belief that individual freedom and personal responsibility are natural rights which should not be abridged by government for any reason?

The Libertarian Party.

Do you get the point?  The Libertarian Party is the only American political party which advocates complete economic and political freedom.

Many people say that voting for a “3rd party” candidate is a “wasted vote.”  This is not true.  It is true that the odds of a Libertarian candidate being elected to National office in the next elections is small.

The Democratic and Republican Parties want you to think that your vote only matters if you vote for one of their candidates.  And, this is only true to the degree that you accept their argument.  If you want to vote for a candidate who supports Liberty, but you do not believe that he can win, so you vote for one of the candidates from the two major parties, you are wasting your vote.  You are making the Democrats and Republicans right in their assertion that a 3rd party candidate cannot win.

This is a democracy.  In a democracy, there are no wasted votes.  A vote for any candidate, be he Republican, Democrat, Communist, Libertarian, or a protest write-in vote for yourself is equally valid and is not a wasted vote, as long as you are voting for the candidate that you feel is the one most suited for the job.  A vote is wasted if you compromise your beliefs and vote for a candidate that you do not like over a candidate that you agree with because you assume that the candidate that you agree with has no realistic chance of winning.  Penn Jilette says that if you “keep voting for the lesser of two evils [you will] watch things get more evil.”

Additionally, a vote for a 3rd party candidate should be viewed as an investment in the future.  A candidate may get only 5% of the vote this time, but getting 5% could encourage more people to vote for him.  Maybe in the next election, he gets 10%.  And as this happens, we could see a Libertarian or other 3^rd party candidate win. In Georgia in November, a statewide Libertarian candidate for Public Service Commissioner received over 1 million votes and received over 1/3 of the total votes cast for his position, even winning my county by over 37,000 votes. Maybe next time, he can win.

They say that “absolute power corrupts, absolutely.” Well, I say “absolute freedom enlightens, absolutely.”

Americanly Yours,

Phred Barnet

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