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Why I’ll Take the Free Market Over Government Programs Any Day

39 | By Shah Gilani

On Saturday I was researching a new article for Money Morning (it’s coming out tomorrow) about the effects of stimulus (or lack thereof) on the job market.

That’s when I Googled “list government jobs programs in the past five years.”

And there, on the very top of the page that had only 943,000,000 results, was the link to a page called “Government is Good – The Forgotten Achievements of Government.”

OMG (text-talk for “Oh My God!”), I thought to myself when I found the site, this is going to be funny!

It’s not.

Government is Good is “A web project of Douglas J. Amy, Professor of Politics at Mount Holyoke College.”

The professor cites 18 government “programs” that we are all better off because of. Some you can agree with; others can be opened and bled with an objective-edged scalpel, or a dull butter knife.

But it’s the first and most encompassing “program” he cites – that in fact isn’t a program at all but more of a pogrom – that deserves a swift slicing and dicing into reality.

The Professor should stick to politics, which is the art of doubletalk. When he’s talking about economics, markets, and business cycles, he’s in my house. And there ain’t no B.S. allowed in my house.

Let’s set him straight

Direct quote from Professor Amy here:

Regulation of the Business Cycle. Until the financial crisis that began in 2008, most of us had forgotten how dependent we are on the federal government to prevent economic depressions. Since the 1930s, the government has used a variety of monetary and fiscal policies to limit the natural boom and bust cycles of the economy. Before government took on this responsibility, severe depressions were a routine and recurring problem in this country – occurring in 1819, 1837, 1857, 1873, 1893, 1907, and 1929. Thanks to government intervention, we have been able to avoid the enormous amount of human suffering caused by these massive economic meltdowns – the widespread joblessness, the destitution, the rampant hunger, the disease, the riots, the hopelessness and the despair. By any measure, eliminating these depressions and this misery has been one of the greatest – and often unheralded – achievements of our federal government.

Before I tear this blathering rubbish into shreds with an objective dose of iodine, let me present the real, sharp facts about what caused and worsened the “panics” and “crashes” of the past 200 years (I’ve cut and pasted liberally from Wikipedia):

  • The Panic of 1819 was compounded by excessive speculation in public lands, fueled by the unrestrained issue of paper money from banks and business concerns.
  • The Panic of 1837 was a financial crisis that touched off a recession. From mid-1834 to mid-1836, prices of land, cotton, and slaves rose sharply. Speculative lending practices in western states, a sharp decline in cotton prices, and a collapsing land bubble wiped out profiteering banks and led to restrictive lending policies that deepened the recession.
  • The Panic of 1857 was a financial panic caused by the declining international economy and over-expansion of the domestic economy. The years immediately preceding this were prosperous. Many banks, merchants, and farmers had seized the opportunity to take risks with their investments and as soon as market prices began to fall, they quickly began to experience the effects of financial panic.
  • The Panic of 1873 was triggered when Jay Cooke & Co., a major component of the United States banking establishment, was unable to sell million of dollars in Northern Pacific Railway bonds. The failure of the Cooke bank set off a chain reaction of bank failures and temporarily closed the New York stock market. Factories began to lay off workers as the United States slipped into depression. The effects of the panic were quickly felt in New York, and more slowly in the rest of the country.
  • The Panic of 1893 started with the bankruptcy of the Philadelphia and Reading Railroad, which had greatly overextended itself. It was marked by the collapse of overbuilt railroads proliferating on shaky financing and resulted in a series of bank failures. Compounding market overbuilding and the railroad bubble was a run on the gold supply.
  • The Panic of 1907 was triggered by the failed attempt in October 1907 to corner the market on stock of the United Copper Co. When the corner failed, banks that had lent money to the cornering schemers suffered runs that later spread to affiliated banks and trusts, leading a week later to the downfall of the Knickerbocker Trust Co. – New York City’s third-largest trust. The collapse of the Knickerbocker spread fear throughout the city’s trusts as regional banks withdrew reserves from New York City banks. Panic extended across the nation as vast numbers of people withdrew deposits from their regional banks.
  • The Crash of 1929 resulted from a crescendo of stock-exchange speculation that had led hundreds of thousands of Americans to invest heavily in the market. A significant number of them were borrowing money to buy more stocks. By August 1929, brokers were routinely lending small investors more than two-thirds of the face value of the stocks they were buying. Over $8.5 billion was out on loan – more than the entire amount of currency circulating in the U.S. at the time. When stocks started to slip, margin calls forced panic selling and stock prices crashed.

So, what’s the common denominator?

Excessive lending by banks and lending institutions, like trusts, brokerages, and businesses, getting into the financing game, and stuff like “easy money” and credit led to speculation in schemes and the shares of companies that presumably would reap the benefits of flushed-out growth.

Recessions and depressions did not lead to market sell-offs. Panicked stock plunger sell-offs led to recessions and depressions when overextended banks and lenders failed and general monetary and fiscal tightening followed.

That’s how recessions reach the whole country.

But wait! Professor Amy says, “Since the 1930s, the government has used a variety of monetary and fiscal policies to limit the natural boom and bust cycles of the economy.”

As if government programs can or should dictate free-market business cycles! We are supposed to have free market capitalism, aren’t we?

The so-called programs since the 1930s that yielded a calm series of decades, which abruptly ended in 2008, had NOTHING to do with governments [using] a variety of monetary and fiscal policies to limit the natural boom and bust cycles of the economy.

It had to do with the realization in the 1930s that the 1929 crash and all the previous market panics had led to recessions and that banks running wild (someone needs to make a video) were the problem, not free market business cycles ebbing and flowing gently, as they will do without stimulus fertilizer being pumped into our vast economic waterways.

It was Glass-Steagall that bridled the out-of-control banks and saddled up commercial banks and investment banks with different riders going in different directions so they wouldn’t crash into each other and crash the economy. And that “program” worked.

Well, it did until 1999, anyway, when the last vestiges of the warm flame of prudence were snuffed out. Banks became monsters and spewed their steroid-laced wastewater everywhere. Then the rapid extension of credit fostered speculation on speculation, or, as they might call it in the derivatives world, synthetic speculation squared.

What resulted? A pogrom that forced people from their homes, out of their livelihoods, onto the streets across the country and across the world, like sheep shorn bare by the greedy handlers who raise them only for their prosperous fleecing.

If by good government programs, that’s what we have to thank government for, I’ll take the old free market business cycle any day.

It’s the same old story. Banks are the problem, not the solution. If banks can be relegated to benign “utilities” status and not allowed to commandeer business cycles for their own profit purposes, the free market will foster gently flowing business cycles and steady economic growth.

We don’t need more government programs. We need short, no-nonsense, no loophole-laden laws enforced by the public, upon whom the branding irons of greedy banks always fall.

What do you think? Are you with me? Or do you think Professor Douglas Amy got it right?

Shah

P.S. As far as the other programs Professor Amy cites, I agree with you, sir, on the GI Bill. You can see his full website right here.

39 Responses to Why I’ll Take the Free Market Over Government Programs Any Day

  1. Olga Tellis says:

    gilani is a wizard!!!!!! that’s all i can say. though i really don’t believe in free markets as there is no such thing as a free market. in the US for instance or even in my country india, lobbies get government to do what they want and succeed-perhaps more in the US than India..

  2. John Lipareli says:

    In my unpublished book, Evolution of Democracy, I suggest the same idea. Treat banks like utility companies, bring back Glass-Steagall and rewrite the rules of deposit to force banks to accept gold and to pay interest on it, based on the value of an ounce of gold at the time of deposit.

  3. Malcolm Jensen says:

    Shah, I admire much of what you write. Your words are the basis of many useful conversations with a retired IMF economist friend. In this case, though, you have not proven your case that the government is not an important asset in stability of financial markets. You have, instead, proven that obscenely greedy bankers have caused almost every large economic disruption in US markets.

    • ray says:

      Would you consider the GOVERNMENT evisceration of Glass-Steagall a positive for the stability of financial markets:

      Would you consider the GOVERNMENT willfully allowing the FED to maintain low interest rates, knowing that all modern day bubbles are related to same?

  4. Robert Campsmith says:

    I often agree with a lot of what Shah says. From my little retail investor viewpoint, I see a lot of the problem is with speculators using OPM. People with no dog in the fight using other people’s money to speculate, sometimes against me. If asked, I would suggest two things: first get rid of ‘short selling’. The idea of selling something you do not own is ridiculous. Second, get rid of margin purchase of paper investments. If we had an all cash market everyone would be playing with their own money and might make more careful decisions.
    – Robert

  5. B.B says:

    Shah hit a nail on the head once again. Now if we could hit a few select government idiots on the head….. Shah, you should have included the names of those mental midgets who undid Glass-Steagall.

  6. Jack L says:

    The banks do what the government tells them to do. There is a reason that Dodd and Frank are no longer in congress. Does providing loans to people who have no job provide a clue.

  7. Steve says:

    Professor Amy and the conventional “wisdom” of economic history that is blathered on MSNBC and the like…maybe someone should read something not on the “approved” list once in while.

    Like maybe the following…

    “The Politically Incorrect Guide to the Great Depression and the New Deal”

    by Robert Murphy

  8. George Jacobs says:

    Dear Shah,
    Why did you excoriate Professor Amy by calling his analysis blathering rubbish? I really find this overly aggressive sensationalist style somewhat distasteful. It would be so much more interesting to have a respectful and intelligent discussion of the issue of government’s role in the economy. I’m sure that both of you would have cogent insight to bring to the table in such a
    matter.

    • Edouard d'Orange says:

      Mr. Gilani calls Amy’s so-called analysis blathering rubbish (and you forgot “B.S.”) because it is. Does Amy provide any evidence for his claims, as Mr. Gilani does? Gilani is talking about his expertise- economics, markets and business cycles. Clearly, politics professor Amy knows nothing about analyzing them. He just makes unsubstantiated statements, based on pre-conceptions.

    • Frank Payne says:

      The problem today with many academics’ take on things is that they don’t seem to see the obvious. The facts are that the government, the Federal Reserve, the financial services industry and conglomorate industry, have become a law unto themselves, promoting a structure that consoldates capital and power in the hands of an ever more limited number of institutions and individuals. This together with unbridled population growth is an unsustainable model, which has sown the seeds of its own destruction and that of much of the natural world. If governments were really of the people and for the people, there would be no need for fortunes to be spent on maintaining huge and ineffective political parties, government institutions that are the epitome of inefficiency and an expansionist mind set that has promoted growth of everything we encounter at any cost. The whole purpose of government is to retain power and to that end will forge unholy alliances with institutions, that it has empowered by law, such as the Federal Reserve, banks and the like, to implement and carry out policies that are designed to achieve this end. One only has to take a look at the world stage, to see how governments have lost the respect of their citizens and how they cling to power, not by consent but by the use of more and more draconian powers, firstly in the form of numbing legislation and when that fails, by military action. I think Shah’s comments were if anything understated and quite polite.

    • Niall Walker says:

      Because, George, the system is so corrupt, people are sick and tired of socialist idiots sabotaging the American Dream and then having the audacity to lie about and pretend they understand what is going on…It’s called righteous indignation..You can only put up with the evil conniving of the corrupt status quo for so long without losing some sense of hope. America is toast and the sooner people face the horrendous problems America has, the better. Libtards make claims because they have no real jobs. Gilani has a real job with real life experience of cause and effect. He isn’t some wannabe theoretical jockey like Bernanke who is vague because he is usually wrong and doesn’t know what he is doing.

  9. Paul Dueweke says:

    I’m surprised Gilani has fallen for the mainstream legend that the evil banks are the problem—with the obvious conclusion that more regulation of the banks is the solution. I agree that there are a sea of bankers that should be in prison for their actions, however the basic problem comes right back to too much Government, which yielded too much money and pressure to put it in the wrong place. The too much money came from the Fed, which pumped money in with absurdly low interest rates and direct insertion of funds. Then the Government directed banks to make all those subprime loans to all those unqualified people so they could achieve “the American dream” and so the politicians could get re-elected. All the derivatives would have worked themselves out among the banks if Government had just let them alone. Excess money and excess Government influence points to less regulation, not more. And the bankers are more than willing to take the fall in exchange for wealth.

  10. Casey Koehler says:

    Shah- You’re my favorite commentator….you should have added that in
    each of those collapses recovery took place in a little less than three years average…..except for the ’29. People with sense know it took longer because the government stepped in and started do nothing jobs, and other programs that built more debt which we were unable to overcome until WWII.

  11. Sad says:

    Anyone remember why we became the United States of America? Answer? To get RID OF GOVERNMENT! And it took our forefathers about 11 years and a war + some help from the French, to accompish that! LIMITED GOVERNMENT and a free PRIVATE SECTOR in which people would be free to innovate, create and sell but IN COMPETITION (which (a) gets us off our asses and working harder and smarter and faster in orderto HOLD DOWN PRIVES so WE cam sell into COMPETITION successfully! THAT then leads to a rising standard of living for the whole group! And the competition heads fpr a :OWER standard of living. GOVERNMENTS are peopled by people acting in a MONOPOLY –therefore have no incentive to workr harder and faster and more effiiently AND because they have notthing to do except sit around figuring out ways to get the private sector covering their wages and offices by TAXING the private sector’s productinog of REAL WEALTH to get money from those private sector SALES of real wealth (which government grabbing then forces UP the private sector’s PRICES (to cover that indirect cost of government that lies HIDDEN in everything the private sector produces and (successfullyt) sells in the competitive marketplaces of the world. Why is it so hafrd to understand these basic realities!The more government, the higher go PRICES, the less government, the LOWER can go PRICES. Duhhhhh!

  12. Myron Martin says:

    The problem in a word is DEBT! The problem in two words is a collusion between bankers and politicians. The problem in 3 words is the Federal Reserve Act of 1913. WHY is debt the problem? Because it requires the payment of interest which implies the bankers own everything and we have to pay tribute for the use of the resources the Creator freely gave us and expects us to be “good stewards” of, besides, interest can only ever accumulate as DEBT since only the principal of a loan is ever created.

    Debt then is the enemy we can not overcome because our “medium of exchange” is artificial, created out of thin air as debt at the whim of politicians and bankers with just a computer key stroke or journal entry while having no intrinsic value. The more they create, requiring payment of interest, the bigger the resulting debt pyramid becomes and “quantitive easing” is just creating a bigger problem down the road, it does NOTHING for the long term growth and stability of the economy. It is just a matter of time until this blatant “Ponzi scheme” explodes in its creators faces.

    • RePete says:

      Excellent Myron, but you forgot that Govt./Fed policy also controls inflation too. Inflation has paid off debt in the past and it will do so in the future. And the deeper the debt, the higher the inflation to pay it off. Hang on to your wallets everybody.

  13. kevin says:

    Glass-Steagall, Act for the 21st Century is the closest thing to a Public Protection bill that would eliminate so much “shennagins” as we are faced with daily from the Financial services “complex”. The massive intervention of government, to save the Banks from themselves, is evidence that it was a BIG mistake to abandon the earlier Glass_Steagall.

  14. A.J. Robinson says:

    Shah has been hittng the nail on the head consistently in his articles. However, I have to disagree on one point. It is not the Banks that are the problem, it is the Bankers – or better stated, BANKSTERS! If these incredibly greedy individuals were personally held to account for their own executive and excessive policies solely designed to increase their own individual bank accounts with obscene profits, share options, and bonuses, we might see more moderation in their selfi-interested behaviour.

    They need to be prosecuted, jailed, and have their ill-gotten gains confiscated and donated to charity, instead of fining the institutions, (which bothers them not at all) and which we all wind up paying for anyway, while they sail off in to the sunset with their gold on their mega-yachts.

  15. Tom says:

    Inflation is simple: ie: Charging you More, but giving you less. Check the ounces of Potato Chips on your current bag, then with a bag about a year ago. You’ll find the current bag is about 2 ounces less than previously, but you Paid More for it today. I lived through the 1920′s and am nearly 93 now. I’ve seen this charade more than once. Will the voters awaken to the cost of living and what their money doesn’t buy? I don’t know. Frankly, take the paper in your wallet and buy Silver Eagles. The price is low right now.

    • Edouard d'Orange says:

      Like to hear from the older generation. Was speaking to an 89 yr old on Friday, who was telling his nephew’s employees to save their money. As he said: some day your bank account will be your friend. Sage advice from the experienced who have seen lots of economic shenanigans.

  16. Tom says:

    You want to awaken to the Real World of Money? Go to a coin store and ask to purchase a $ 5.00 dollar roll of dimes or Quarters. A roll of dimes will cost about $ 90.00 or more. A Roll of Quarters will be about
    $ 180.00. If that fails to wake you up concerning what the government is doing to you, Nothing will. Smile, it’s a great day. Silver closed today at $ 21.37 per ounce. A one ounce coin will cost you 5 to 8 dollars more by reputable dealers.

  17. Ken says:

    We need to reinstate Glass-Steagall, but we also need to stop giving the banksters a free pass for their misdeeds. It is surprising that those who are responsible for maintaining our economy are so ignorant of the basic principles of economics. They should have been allowed to go bust 5 years ago. We’d be in better shape now. And Bernanke should be dropped from his “helicopter” He’s an ignoranus who should be in jail if stupidity and gullibility were a punishable crime.

  18. Ken says:

    Another thing. I had a couple of government jobs early in my life, and came to the conclusion that government is always the employer of last resort. The lower and middle rungs of government are filled with people who couldn’t get an honest job, while the upper positions are filled with out of work politicians, lobbyists and other favorites.
    In government jobs, the quality of your work is irrelevant, and you can never trust government to look out for your well-being. Once I worked for a health agency. While there I found an imminent public health hazard. The agency neglected to correct the situation, and when push came to shove, they decided the best way to solve the problem was to fire me.
    After I realized this fact, I went out and got an honest job.

    • Joe says:

      Yea, well that’s gross over generalization if I ever heard it. You held two government jobs and from that “extensive” experience formulate a blanket conclusion. I worked in the public sector for 15 years as a teacher- coach and then got so-called HONEST JOBS (your reference) in the private sector working in corporate America (manufacturing management) in a variety of industries for 28 years.That lengthy experience taught me that corporate leadership—three companies driven into bankruptcies—is often plagued by the inability to lead, plan, strategize, think only of their own interests, etc. that currently plague our elected officials in government. It wasn’t nirvana! Dilbert is right on!

  19. Richard Waldren says:

    It was the lobbiests (sp) for the banks to the government that got rid of Glass-Steagal act. It shows you how stupid and ignorant our govt. policy makers are. Secondly, the banks are heading right back to where they came from, selling things they should not be selling. Third, TBTF banks should be allowed to go under with irresponsible people going to jail. Why in the heck should congressman be allowed to trade on insider info and Roger ram-jet goes to jail. This is a bunch of crap and he needs to be freed. Also, remember the one congressman said”we don’t make enough money so we need to be able to insider trade”. What a bunch of greedy incompetents we have at the funny farm on the Potmac. Well said Shah.

  20. johnathan says:

    Dear all,
    please go out an purchase the DVD ”The Inside Job”, directed by Charles Ferguson, the first film to bring light to all the goings on and moves, showing the shocking truth after the economic collapse of 2008, a crime story like no other in history, it shows what went on in Iceland between banks and politicians, with Federal Reserve involvement from the outset, clearly who the players behind the scenes were that caused the Icelandic economy to melt, then the USA, starting with Ronald Regan’s presidency, the Savings and loan crisis in Presidents Bush time, then the steps that began the rot, moves of big Finance houses that engineered the removal of the Glass Seagal act, how it was all managed back in the time when Bill Clinton was President,he signed it into law, then you have an overview of how moves made back then led to the happenings that led to the global economic crisis of 2008, how the banks got the government to agree that deposit money could be gambled because it was guaranteed up to 100,000 $ by the Federal Government,about Cdo’s, derivatives, sub prime loans etc, that led to the crash that cost tens of millions of people their savings, their jobs and their homes.
    their’s a pattern in it that comes across very clearly, this was well planned and executed by very powerful minds all working together over 3 decades, in the knowledge that they owned the government, the justice department, the Congress, the SEC, and they could not be prosecuted because the changed the laws in advance of the acts

  21. dk says:

    Just read a book titled “The Creature From Jekyll Island” and you will understand who really is running our country. It is about the Federal Reserve and the end of the book has ten key points that they are using to take over our country. Very scary stuff.

  22. Roy Fultun says:

    Shah,

    BOTH you AND Professor Amy got it right! I do not see a serious disagreement between you.

    Interestingly, many of the posts here missed that point and continue to spout whatever stream of received wisdom they confuse with analysis.. These folks are easy to spot. They’re acting very upset, and they’re doing the online yelling thing with all caps, etc.

    Suggestion, folks: let’s all go back and re-read Shah’s analysis, and then go check out Professor Amy’s web site, in detail. If we can all shift the blather that’s making the rounds to the discussion Gilani and Amy have engaged there, we can all make a difference in the current political and economic dialog.

    That’s where I’m going — right now.

  23. Frank Payne says:

    Shah please oh please, how can we get this message of what has really happened to go viral. People really need the exposure to factual analysis of what is happening rather than the bull—- that is espoused by government and financial industry spin doctors in support of their own self interest. I despair at the stupidity of the great majority of people around the world, who when faced by such obvious mismanagement, either try and justify it by re-electing and supporting the culprits, or more sadly replace them at the ballot box with more of the same. It’s like the phrase common sense – it’s not common at all.

  24. Niall Walker says:

    Libtard socialists blood suckers sabotaged the banks by forcing them to lend to people with only a pulse and no credit history or even a job. Blame the liberals.

    • RePete says:

      Now, now Niall. Those “conservative” banksters didn’t have any problem loaning the money neither. And wasn’t GWB running the show when 2008 went down? They are all at fault. I say, everyone should be an independent, make them work for your vote.

  25. John P. Clary says:

    Shah is almost dead-on. The real problem is not the banks but the monetary system. If the thing you take out of your pocket to pay for something had the same intrinsic value as the item you bought the financial system would have automatic regulation without government help.

    There would not be as many banks either and they wouldalso be regulated by the free enterprise market.

  26. Brad M says:

    Human nature and history repeat, unfortunately, and greed along with corruption, both allowed to grow through apathy, seem to define the end of once great civilizations and nations. Americans must once again have the will to stand up to the government and financial institutions and demand serious changes. Unless this happens, a very unhappy ending is inevitable.

  27. Jlamar says:

    The only purpose of government is to defend the citizens of this country . . . their individual rights, their property rights, and their contracts. Beyond the criminalities of politicians and the frauds of religions, I am not anti-government. For honest government is necessary to formulate and enforce objective laws designed to protect individual/property rights and contract law. Also, rational government is needed to uphold the Constitution of the Universe that prohibits the use of force except for the legal protection of individual property rights and self-defense.

    Perhaps the most-valuable document is world history — The United States Constitution — is also a pristinely-secular godless document, as are the invaluable eighty-five publius-signed letters of the Federalist Papers composed mainly by James Madison, Alexander Hamiliton, and John Jay.

    For 2500 years, people have lived and died in schizophrenic societies. For 2500 years, political and religious miscreants have usurped livelihoods and power by manipulating delusions throughout the populace. Their lethal tools include: 1. Socialist/fascist/populist/nationalistic politics. 2. Egalitarian/collectivist/utopian philosophies. 3.A non-existent god or gods. 4.Scriptures, Bibles, Qur’ans. 5. Arrays of mysticisms, scientisms, and occultisms. 6. A willingness to live via profuse dishonesties, irrationalities, and criminalities. 7. Frauds hidden in politically-correct/forced-backed extortion laws and envy-based income taxes. 8. Envy — It is humanity’s most destructive manipulation tool. To understand the destructive power of envy — a power that can destroy humanity — first know the difference between envy and jealousy: Jealously wants to possess the good while envy wants to destroy the good because it is good. Envy is the most ignoble of vices. As Plutarch said, “Envy is the ulcer of the soul”. Indeed, envy has no boundaries and usually grows with time. By contrast, hate and anger have boundaries and usually diminish with time. . . . envy seeks to destroy the values of conscious life. Envy is the driving force behind the Islamic Jihad against the West.

    Most anti-civilization citizens enviously despise those who keep them healthy and alive while ignorantly revering those who sicken and kill them. In an anti-civilization, business and science are lashed as Prometheus to a rock of envious malevolence. Politicians, journalists, academics, clerics, celebrities, and parasitical elites steeped in hatreds of competitive value creators and producers return everyday to peck out Prometheus’ innards. Every day they suck the life-giving blood from competitive business and science. . . . After 2500 years lashed to that rock, who or what can unbind Prometheus? Heracles could not. Shelly could not. Only the life-force of fully- integrated honesty can unleash competitive business, honest science, and creative art to bring never-ending prosperity, non-aging health, and ever-happy romance to conscious life on Earth.

    In reality the most-noble-and-heroic individuals are neither kings, nor saints, neither politicians nor celebrities, but are those light-and-life givers who honestly-and-productively create competitive jobs, values, and beauty for others and society. Only they are worthy of kneeling reverence.

    Since Pericles in fifth-century Greece, every democracy self-destructs in seas of dishonesties and irrationalities. Why? Because the electorate and elected become symbiotically infested with “gimme” populism and criminal socialism/fascism. In that process, earned capital is increasingly forced into parasitical hands — a process that continually diminishes conscious life toward decline and death.

    Government control always means the control of individuals by force. Communism, fascism, socialism, and democracy are political systems that survive by force and repression, although democracy is generally less destructive or malevolent than the other three systems of oppression. All four political systems operate on the same concepts of government authority for the political cheaters backed by “legalized” force and Platonistic or existentialist philosophies needed to usurp livings from the producers.

    Contrary to popular myth, democracy is rooted neither in justice nor in the protection of individual rights, but is rooted in the principle of authorities with power to force the “deemed” will of the majority onto specific individuals. (The United States was not founded as a democracy, but as a republic that was a hybrid between democratic and free-choice, free market principles. Today, most of the remaining non-force, free-choice elements of freedom in the United States are being replaced with fascist or socialist elements of force.) A free-market system is the only political system based on objective values, justice, and free choice rather than on feelings, force, and compulsion. Of all political systems, only the non-force, free-market system rejects the concept of “authority” by force, threat of force, or coercion. And only free markets fully recognize the sovereignty of the individual and the right to his or her own body, life, and earned property.

    If not the politics of democracy, then what? Realize that the responsibility of consciousness is to render human life eternally creative, prosperous, and joyful. That responsibility falls upon neither politics nor religion, but on conscious individuals fulfilling their value-creating/value-producing nature. The way to meet that responsibility is not via a rule-by-men populist democracy but via a rule-by-law constitutional republic that protects the life, liberty, property, and sanctity of contract for each and every individual.

    All long-range, financial values generated by business arise from the anti-mystical standards of capitalism. Capitalism is a moral/social system as well as an economic system based on the premise that every man and woman has the exclusive right to his or her own life and property. Reduction of capitalism to practice results in a benevolent society in which individuals deal with one another solely on the basis of values . . . the voluntary exchange of values. Force and coercion are obviated. Capitalism is consistent with man’s rational needs and requirements for happiness.

    Altruism is a morality based on the philosophical premise that man lives for the sake of others . . . that man’s life and property are available for sacrifice to “higher” causes, e.g., the common good, society, the needy, the world, God, country. Reduction of altruism to practice results in a malevolent society in which individuals deal with one another on terms of who will be sacrificed to whom. Force becomes the deciding factor. Altruism is contrary to man’s nature, rational needs, and requirements for happiness.

    No B.S. in my house either!

    Thanks,
    Jlamar

  28. ton c says:

    I am no philosopher and less so an economist or banker or businessman or some other power wielding money hogging individual. But when I was learning the rudiments of economy I learnt that free markets do not exist, that Capitalism is incapable of regulating itself and thus causes untold suffering to the little man like me, either through financial tyranny, where I am forced to accept the conditions imposed by the rich and powerful as evidenced by the horrible conditions workers were subjected to in past years or political tyranny in the form of state capitalism. Your ranting about socialism etc shows that you have no idea what you are writing about.
    After if I remember correctly, somewhere in the USA is written bring forth the halt etc of humanity so that they may be healed or whatever.

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