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Showing posts with label CORPORATISM. Show all posts
Showing posts with label CORPORATISM. Show all posts

Wednesday, March 18, 2015

Corporations Lobbying Government Reap 76,000% Return on Investment


Nick Bernabe

Forget the penny stocks, amateurs, the greatest investment you can make in America is bribing the government to give you political favors.

According to research conducted by The Sunshine Foundation, an organization focused on corporate and government accountability,

After examining million records, including data on campaign contributions, lobbying expenditures, federal budget allocations and spending, we found that, on average, for every dollar spent on influencing politics, the nation’s most politically active corporations received $760 from the government. The $4.4 trillion total represents two-thirds of the $6.5 trillion that individual taxpayers paid into the federal treasury.

Thursday, September 25, 2014

Silicon Valley Corporatists


James Hall

Remember the days when an entrepreneur would perfect their whiz kid ideas in a garage and bring them to market? Did Steve Wozniak ever envision the behemoth that Apple would become and the cult camp that worships every new product that flows from their robotic coolie assembly lines? 

Riots Over Rotten Apple Mania describes an example of the forbidding underbelly of corporatist business model that Apple exemplifies so dramatically. Notwithstanding this record of 21st century sweat factories, do the venture vulture capitalists of Silicon Valley interject added value in the products and services they fund or does this culture of touting IPO offerings simply game a system to print money based upon imaginary dreams?

Monday, September 1, 2014

Labor’s Demise Is America’s Demise


"Today the US has the most unequally distributed income and wealth of all developed economies and one of the worst in the entire world"

Paul Craig Roberts

Thoughts for Labor Day


Anthony Freda Illustration
Labor Day is a holiday that has outlived its time. Like Christmas, Labor Day has become a time-out period. As Christmas has become a shopping spree, Labor Day has become the last summer holiday.

The holiday originated in 1887 to celebrate the contribution made by American workers to the strength and prosperity of the United States. The first Monday in September was chosen by President Grover Cleveland to avoid a May date that would keep alive the memory of the previous year’s Haymarket Massacre in which workers striking for an eight-hour day suffered casualties from the Chicago police.

Wednesday, July 30, 2014

Corporatism Stifles Innovation


James Hall

For an economy to grow and create actual wealth, innovation is a bedrock component in the development of enhanced prosperity. Prosperity is an intriguing concept. Simply making and accumulating money falls short of establishing a successful economic model. This recent report illustrates a prime example. Facebook stock soars, as company briefly passes IBM in market value

By most measures, Facebook is dwarfed by IBM: With about 7,000 employees, ten-year-old Facebook is on track to garner $12 billion in sales this year. The 103-year-old IBM has more than 400,000 workers and sold almost $100 billion of computer hardware and software in 2013.
Is Facebook a shining star of innovation? Or is it the product of a society, which has given up on working towards a successful economy, whereby a prosperous middle class partakes in the engine of continued and shared affluence? Conversely, is IBM an innovated inventor, or is it a dinosaur of a previous era? 

Tuesday, September 4, 2012

To Revive Economy, Place a Better Bet on Smalls versus “Too-Big-to-Fail” Companies

The raw truth is that Politicians and Government are Major Barriers to Solving Unemployment due to Limiting Small Business Contracts while Supporting Corporations that Pay Millions to CEOs.
Anthony Freda Art

Fannie LaFlore


Recent economic indicators from the Federal Government estimate that up to 23 million people are out of work or underemployed in America. Solutions exist that could change things practically overnight, but are not implemented. As the economic free-fall continues to plague millions of individuals and families struggling to make a decent living, and if governmental options are available but nothing is being done to solve the problem, the central question is why?

One reason is that many public officials claim the government is broke, suggesting that too much debt leaves few to no resources to support job development and employment training initiatives -- but that’s not quite the case. Nationally-recognized attorney, activist and author Van Jones and his Rebuild the Dream organization are launching a new campaign to change the way we talk about our economy and debt. Jones says it's crucial that we don't buy the myth that America is broke, while today's robber barons set the terms of the debate and make off like bandits with taxpayer funds due in part to not paying their fair share in taxes and using corporate money for their own benefit. "We are not broke, we are being robbed,” Jones said, as the basis for Rebuild the Dream’s platform for bottom-up, people-powered activism efforts to help fix the U.S. economy.

What’s not so clear is just how the American people (that would be me and you) are being robbed. But much evidence points to businesses being routinely excluded from governmental opportunities that could significantly improve the economy. This is relevant because research shows most new jobs evolve from entrepreneurial activity (small business), while large enterprises struggle with manageability, generally do not grow organically, or remain stagnant except when they buy existing small companies.

Politicians, both in the Republican and Democratic parties, send mixed messages about priorities and shift blame. 

Wednesday, July 11, 2012

Punk Economics: China Panics, US "Recovers" and Germany Flinches (Video)

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Sunday, May 1, 2011

The Global Economy’s Corporate Crime Wave

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Jeffrey D. Sachs
Project Syndicate

NEW YORK – The world is drowning in corporate fraud, and the problems are probably greatest in rich countries – those with supposedly “good governance.” Poor-country governments probably accept more bribes and commit more offenses, but it is rich countries that host the global companies that carry out the largest offenses. Money talks, and it is corrupting politics and markets all over the world.

Hardly a day passes without a new story of malfeasance. Every Wall Street firm has paid significant fines during the past decade for phony accounting, insider trading, securities fraud, Ponzi schemes, or outright embezzlement by CEOs. A massive insider-trading ring is currently on trial in New York, and has implicated some leading financial-industry figures. And it follows a series of fines paid by America’s biggest investment banks to settle charges of various securities violations.

Tuesday, April 5, 2011

10 Reasons Obama is Just As Bad or Worse Than Bush

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Activist Post

George W. Bush was clearly a mentally-challenged puppet of the military/banking/oil elite.  The policies put it in place at breakneck speed after 9/11 were provably predetermined by think tanks well in advance. Not that other presidents were any less controlled by this hidden agenda, but there was a noticeable in-your-face quickening of corporate-government tyranny under Bush.

These policies like wars of aggression, illegal surveillance of Americans, torture of detainees indefinitely held without formal charges, unfair "free trade" agreements, and bank bailouts rightfully enraged many progressives during the Bush years.  Yet, not only have these policies accelerated under Obama, even more of the draconian playbook is unfolding.

Tuesday, March 29, 2011

Are Lehman's Auditors Above The Law?

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Dees Illustration

Jeff McCord

Many wonder why the Securities and Exchange Commission and U.S. Department of Justice are seemingly unable to prosecute Lehman Brothers and its auditor Ernst & Young for the massive over-valuations of the investment bank’s sub-prime mortgage-backed “assets” and other misleading (and, possibly, fraudulent) information published in financial statements in the years and quarters leading to the systemic financial meltdown that Lehman’s own bankruptcy helped fuel.  Are Lehman’s auditors above the law?  Regrettably, for a number of reasons, auditors are becoming increasingly immune from challenge by prosecutors, regulators and investors. 

The first reason is that money talks in Washington.  Although most citizens know of the overwhelming donations to federal political candidates by banks and other financial services firms, it may surprise some that accountants are also a very generous source of funding for both Republican and Democratic candidates.  In the election cycle of 2009-2010, alone, the “big four” accounting firms and their association contributed more than $8 million to federal candidates, according to the Center for Responsive Politics.  In the same period, fraud defendant Ernst & Young contributed in excess of $1.6 million to politicians. 

Saturday, November 27, 2010

Raw Video Of 'Black Friday' Shoppers Trampled At Target

Editor's Note:  What's wrong with America?  If you took part in the Corporate sponsored "Black Friday" madness, you are what's wrong with America!  Stop the Madness!

When the doors opened at a North Buffalo Target store at 4:00 a.m. Friday morning, the relaxed crowed waiting outside turned into a chaotic mob.

Customers began charging through the doors, some falling down and causing a pile-up that took officials a few minutes to clear up.Store officials yelled at angry shoppers to back-up as screams came from the crowd as they jammed in the entry way.

"I was pushed and almost trampled someone else but nothing really bad happened," shopper Rick Mathewson said.

One shopper got up from the pile appearing to be pain, but then joined the rush and headed into the store.BUFFALO, NY (WKBW) 




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Tuesday, October 5, 2010

5 Key Principles that Unite Populist Progressives and Tea-Party Libertarians

"Rise like Lions after slumber; In unvanquishable number; Shake your chains to earth like dew; Which in sleep had fallen on you; Ye are many; They are few." -- Percy Bysshe Shelley


Human World Order
Activist Post

The establishment must do everything it can to suppress unity among the growing herd of angry citizens. However, victory for the people is within our grasp.  In a dangerous scenario for the establishment, populists from the left and the right are increasingly finding common ground.  A recent Mother Jones article titled "Tea Party or Pot Party?" revealed to progressives that they can actually agree with Tea Party libertarians on issues such as legalizing marijuana.  With an honest look at each other's principles we may find that what unites Populists is far more powerful than what divides us.

First, we must be cognizant that the establishment seeks to divide us by using such vile tactics as labeling progressives as "evil communists" and the Tea Party libertarians as "racists."  Naturally, old-school civil rights liberals hate racists, and free-market conservative purists hate communists.  Can we not see that the establishment knows precisely what buttons to push to keep us from uniting?  These false labels are irrelevant in our current struggle with a tyrannical Corporate State.



It is clear that we the people are all suffering in similar ways under the current system.  We grasp for someone to blame for this manufactured suffering, and the establishment is all too eager to provide a culprit to misdirect our anger.  Progressives have been conditioned to blame big evil corporations, while conservatives have been conditioned to blame big evil government.  But now, both are finally realizing that corporate cartels and the government have merged into a most evil monster that cares not for them, or the health of America for that matter.  Even Michael Moore is waking up to the fact that Obama is a mere puppet of the corporate masters.

The people have been fooled and divided for long enough.  Now, we must go beyond phony labels that the establishment has carefully crafted for us, and join our fellow populists to unite around our common human principles.

Here are five co-dependent principles that unite populist progressives and tea party libertarians:

1. Peace - Ending Foreign Wars
Peace seems to be our natural human condition until the corporate controllers disrupt it for their tactical gain. Wars are sold through division, driven by military-industrial complex profits and the desire for power over resources -- period.  Those are not good enough reasons to kill, maim, displace and torture millions of human beings.  Real humans, if desperate enough, may kill for resources but are not inclined to simply kill for power -- and will engage in neither if they are reasonably comfortable.  The good news is, the elite sub-humans who use human pawns for war to increase gluttonous fortunes will eventually be toppled, because the true natural order of peace will always ultimately manifest. Acts of war are always immoral crimes against humanity, as war is hell and we must become the devil to win.

Libertarians and progressives have been consistently unified against the immoral, interventionist wars and the resulting atrocities on liberty.  Complacent progressives must forget about what party is in power and continue to fight for what is right.  It's not okay to excuse the wars, the torture, and the illegal wiretapping simply because the current Democratic president was presented with a Nobel Peace Prize.  If anything, that alone should prove to you the left-right paradigm is bogus.  And if pocketbook conservatives desire authenticity about reducing spending, then we must start with defense cuts across the board -- including ending the wars. Christian conservatives and liberal Jews must adopt the peaceful message of their religions, and realize that the real threat to their freedom and safety is far more dangerous than the engineered Muslim threat sold to them by the corrupt establishment. And those who still support military-industrial complex-owned neocons, God help you.


Common Ground: As Gandhi said, "There is no path to peace, peace is the path".  Ending the wars is the only moral and pragmatic policy to rescue our country.


2. Restoring Economic Justice and Fiscal Sanity
Economic fairness and fiscal sanity begins and ends with reforming our monetary system. The primary reason Americans should be angry about their economic situation is the fact that the Federal Reserve is a privately-owned entity.  It functions outside the jurisdiction of all branches of elected government and it owns the SEC and Treasury, which gives this private group immeasurable power to turn us and our government into debt slaves for their own gain.  The fractional reserve system for money creation inherently causes inflation that will always require more taxes from the public. In fact, the United States never had an income tax until the year after the Federal Reserve Act was passed in 1913.  The Fed, who continues to loot America, is also the engine that drives the ongoing global financial crisis.  To reclaim America it is imperative that the criminal banking cartel be abolished and sound money must be restored to the people.

We must learn from Woodrow Wilson who said: "Our great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of our nation, therefore, and all of our activities are in the hands of a few men . . . who necessarily, by very reason of their limitations, chill and check and destroy economic freedom."

This topic is so obviously beyond the false left-right debate that anyone who opposes it would appear to be a shill for the criminal banking system.  If Tea Party activists wonder who is to blame for their climbing taxes, they need to point their finger at the monetary system that encourages big government to keep spending, thus resulting in inflation.  There is already encouraging bipartisan cooperation in regards to investigating the Fed which has brought great awareness of their true nature to the public.

Although there is no proposed legislation to fundamentally change the function of the Fed, we saw a progressive Alan Grayson (D-Fla) co-sponsor the "Audit the Fed" bill, drafted by ultra-conservative Ron Paul (R-TX), with another ultra-progressive Bernie Sanders (I-VT) introducing the Senate version. Furthermore, it is also encouraging to see a flurry of candidates from various states and political philosophies proposing citizen-owned state banks as part of the economic solution.  This nonpartisan issue is absolutely vital for all Americans to support if we hope to be free human beings.

Common Ground:  Thomas Jefferson said: "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered . . . I believe that banking institutions are more dangerous to our liberties than standing armies . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."  End the private Federal Reserve and establish sound money for the benefit of all Americans.


3. Limiting Government for the Restoration of Individual Liberty
Very simply, more personal liberty comes only by limiting the size of government.  As Americans, we all must hold dear our Bill of Rights which is clearly under assault.  Conservative libertarians have long been known as the defenders of liberty, while progressive civil rights leaders in the 60s knew they had truth on their side when they declared that equality would ultimately prevail.  Since the civil rights victory, progressives grew to believe that government intervention works for social matters, and that well-funded regulatory agencies are necessary and good because they are looking out for our safety.

However, the last decade has conclusively proved that all major regulators like the FDA, USDA, CDC, SEC, and DHS have become arms of the elite corporate cartels who use regulation to squeeze small businesses to further consolidate their industry empires.  These utterly corrupt and bloated agencies continue to sell "safety" to the public to justify their budget and jurisdiction expansions, where they limit our freedoms through over-regulation at the behest of their corporate controllers.

Despite being the strongest voice against the Patriot Act at the time, progressives are only now experiencing the personal ramifications of increased government regulation by the massive "Big Brother" surveillance-industrial complex -- and it is happening, ironically, under our supposedly "liberal" president.  They have witnessed an assault on their freedoms with the recent tyrannical raids on peaceful antiwar protestersprivate organic food cooperatives, legal natural health choices like medical marijuana, and illegal surveillance of environmentalist anti-fracture gas drilling groups.  In every case, big business is directing big government to crush our freedoms. Big government and big cartel business feed off each other in a self-perpetuating system that must be broken.

Common Ground: Liberty is a natural order that unites us and will prevail.  As John Adams wrote: "Human nature itself is evermore an advocate for liberty."  Restore the Bill of Rights by ending the prohibition of drugs; and by reducing, or eliminating, regulatory agencies who impose fees, taxes, and statutes that threaten our freedoms.


4. Consumer Freedom and Free Markets
No form of government has been able to stop free markets in the history of mankind.  Even under totalitarian communism, barter systems or black markets thrive because free markets are yet another natural order for humanity.  The failed war on drugs is the most glaring example in America. The more tyrannical our government becomes toward limiting consumers' choices, the more we are seeing the rise of local organic cooperatives, many of which utilize barter systems.

For too long progressives and conservatives have confused what constitutes a free market economy. Again, this confusion and division has been deliberately manufactured  Conservatives who advocate for free market capitalism must admit that we haven't had that model since before the original Robber Barons, because Rockefeller and other elites live by the mantra "competition is a sin" -- thus cartels formed to create a form of corporate communism. While progressives like Michael Moore, director of Capitalism, must acknowledge that it is was not "free market capitalism" that caused the financial meltdown -- but rather it was the corrupt banking system and the utter lack of free market competition to blame.

The general public is beginning to realize that anti-competition cartels use government regulatory agencies to further consolidate market share which erodes the free market as well as personal choices.  Food is the most obvious example of an industry that is run by near monopolies, while the FDA continues to suppress healthy choices for local food and natural health alternatives.  Progressives and conservatives must unite with no fear of being called anti-business, and fight to break up the cartels if we're to have genuinely free and fair markets.

Common Ground: "The difference between free-market capitalism and state capitalism is precisely the difference between, on the one hand, peaceful, voluntary exchange, and on the other, violent expropriation."Murray N. Rothbard.  End the monopoly cartels and the prohibition of drugs; demand true free markets with the liberty of choice, not the illusion of choice.


5. Respecting and Protecting our Ecosystem
Obviously a polluted ecosystem does not discriminate against political affiliations.  Humanity requires a healthy environment above all other concerns; as clean water, air, and healthy soil are essential to our survival. That we can all agree on.  However, the modern environmental movement seems to have been hijacked by the elite who show no desire to protect the water, air, and soil.  Environmentalists have been made to believe that CO2 is the most dangerous element responsible for "Global Warming", and despite the establishment's constant betrayal of facts, many still put faith in the elite's proposed solutions that do nothing to reduce real pollutants.

The climate change debate has become the only environmental topic discussed in the mainstream and appears to be yet another example of manufactured political division. Environmentally-conscious progressives know they have been repeatedly lied to by the establishment left about everything from free-trade agreements to GMO foods, yet they seem to have a very difficult time questioning the man-made "global warming" theory and the elite's proposed solutions.

At the very least, eyebrows should be raised since “hacked” emails exposed that the science data had been manipulated to fit the theory.  Alarm bells should go off when we learn that, as Vice President, Gore designed the proposed Cap and Trade system with Enron’s criminal CEO Ken “Kenny Boy” Lay years before the global warming propaganda had begun. A full blown revolt should take place knowing that the scandalous international Banksters and Big Oil (including BP) have shaped Cap and Trade to line their pockets. Finally, many of the proposed provisions appear to tax personal choices while major corporate polluters are exempt. Regardless of what we believe, it certainly appears that climate change fits the establishment's problem-reaction-solution model of social engineering and we should all beware.

Additionally, the global-warming-is-a-hoax crowd must concede that fossil fuels are still dirty and have a major impact on the environment regardless of whether they effect climate change.  The environmentalists who recently opposed fracture drilling in Pennsylvania did so because the practice contaminates ground water, not because natural gas effects climate change.  These protesters were nonpartisan Americans.  We must unite against practices that provably damage our health and the health of our ecosystem.  These include oil spills and subsequent chemical spraying, industrial agriculture and factory farms, dirty coal and depleted uranium energy plants, deliberate poisoning of public water with sodium fluoride, and the production, promotion, and disposal of dangerous pharmaceuticals to name a few.

Common Ground: True pollution is obvious. "Truth is uniform and narrow; it constantly exists, and does not seem to require so much an active energy, as a passive aptitude of the soul in order to encounter it. But error is endlessly diversified; it has no reality, but is the pure and simple creation of the mind that invents it." - Ben Franklin.  We must unite to confront the provable threats to human health and the integrity of our environment, and we must do it rather quickly.


These principles should naturally unite angry citizens who have been relentlessly abused by the corporate state.  Sure, many will remain close-minded and submit to the manufactured division, but as we reach this crucial tipping point for free humanity, it is now imperative that we join in common purpose - FREEDOM.  Let us know what you think!


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Wednesday, September 22, 2010

The Great Divergence: Private Investment and Government Power in the Present Crisis

Robert Higgs
By Robert Higgs
Also by Robert Higgs:
Crisis and Leviathan: Observations amid the Current Episode   05/21/10
Campaign For Liberty



Private saving and investment are the heart and soul of the dynamic market process. Together they provide and allocate the resources used to augment the economy's productive capacity, generate sustained long-run economic growth, and thereby make possible a rising level of living. Economic crises interrupt this process by discouraging investors and causing them to consume their resources or to employ them in relatively safe, low-yielding ways. Absent entrepreneurs willing to take the great risks that characterize investments in great technological and organizational innovations, the growth process fades into economic stagnation or even decline.

The present recession starkly displays this characteristic crisis-related abatement of the economy's investment process. Indeed, the decline of private investment during recent years has been much greater than most observers realize. Consider the following data, taken or derived from the most recently revised National Economic Accounts prepared by the Commerce Department's Bureau of Economic Analysis (Tables 1.1.5, 1.1.6, and 5.2.6).

In 2006, gross private domestic investment reached its most recent peak, at $2.33 trillion (in constant 2005 dollars), or 17.4 percent of GDP. After remaining almost at this level in 2007, this measure of investment fell substantially during each of the next two years, reaching $1.59 trillion, or 11.3 percent of GDP, in 2009. This decline is severe enough, but it does not give us all the information we need to gauge the extent of the investment bust.

The greater part of gross investment consists of what the statisticians call the capital consumption allowance, an estimate of the amount of money that must be spent simply to offset wear and tear and obsolescence of the existing capital stock. In a country such as the United States, with an enormous fixed capital stock built up over the centuries, a great amount of funds must be allocated simply to maintain that stock. In recent years, the private capital consumption allowance has ranged from $1.29 trillion in 2005 to $1.46 trillion (in constant 2005 dollars) in 2009. Thus, even in the boom year 2006, about 60 percent of gross private domestic investment was required merely to maintain the economy's productive capacity, leaving just 40 percent, or $889 billion in net private domestic investment, to augment that capacity.

From that level, net private domestic investment plunged during each of the following three years, taking the greatest dive between 2008 and 2009, when it fell to only $54 billion (in constant 2005 dollars), having declined altogether by 94 percent from its 2006 peak! Last year only 3.5 percent of all private investment spending went toward building up the capital stock. Thus, net private investment did not simply fall during the recession; it virtually disappeared.

Unless this drastic decline is reversed soon, the future will be bleak for the U.S. economy. Without substantial net private investment, brisk economic growth is unthinkable beyond the very short run. Although private investment spending has recovered somewhat since it reached its trough in the third quarter of 2009, gross private domestic investment in the most recent quarter (April to June) of 2010 remained 21 percent below its peak in the first quarter of 2006, and net private domestic investment remained about 64 percent below its previous peak.

While this private-sector disaster was occurring, however, the government sector of the economy was booming. The ratio of all federal government spending -- purchases of goods and services plus transfer payments -- to GDP increased from 20.6 percent in the fourth (October to December) quarter of 2007 to 25.4 percent in the most recent (April to June) quarter of 2010.

Of this increase, about 73 percent represents an increase in transfer payments. According to the National Economic Accounts (Table 3.2), federal transfer payments for social benefits to persons -- old-age pensions, unemployment-insurance benefits, disability-insurance benefits, Medicare benefits, and so forth in great variety -- increased from a seasonally adjusted annual rate of $1.28 trillion in the fourth quarter of 2007 to $1.72 trillion in the second quarter of 2010 — a leap of more than one-third in only two and a half years. During the same period, government grants-in-aid to state and local governments rose from a seasonally adjusted annual rate of $382 billion to $525 billion, an increase of more than 37 percent.

Data compiled by the Bureau of Labor Statistics show that the number of private nonfarm employees fell from 114.1 million in 2006 to 108.4 in 2009, and even further this year, reaching 107.9 million in August 2010. At the same time, the number of government employees at all levels increased from 22.0 million in 2006 to 22.5 million in 2009, although a slight reduction has occurred recently, putting the number at 22.4 million in August 2010.

The Federal Reserve System has played a major role during the current recession, acting in unprecedented ways to inject funds into the financial system in general and into selected failing firms in particular, especially AIG, Fannie Mae, and Freddie Mac, which have been effectively taken over by the government, giving rise to a situation in which the government supplies or insures about nine-tenths of all new residential mortgage loans. Before the recession, the Fed's financial assets consisted overwhelmingly of U.S. Treasury securities. It now holds a variety of securities, including mortgage-backed securities valued on the Fed's books at approximately $1.1 trillion. In this way, the Fed has become the major direct source of funds for the government-sponsored enterprises that provided an inviting secondary market for the commercial banks and other primary lenders that inflated the housing bubble.

Through the TARP scheme, created late in 2008, the U.S. Treasury acquired ownership stakes in hundreds of commercial banks.

Of course, the government also took over General Motors and Chrysler, bypassing existing bankruptcy laws and ramming into place restructuring arrangements that served the Obama administration's political goals, especially its support for members (active and retired) of the United Auto Workers.
The foregoing measures constitute only a small fraction of the many significant actions the federal government has taken to augment its size, scope, and power during the current recession. Thus, while the market system's driving force -- private investment -- was being brought to its knees, the government's crisis-driven surge only added an additional discouraging feature to those operating though market channels, such as the reluctance of commercial banks to make new loans and investments and the desire of households to repay debts and increase their holdings of cash balances. A government growing in so many different directions at once, with many additional initiatives -- such as higher tax rates, new taxes on energy use, and new restrictions on financial service providers -- still awaiting enactment or regulatory specification, creates tremendous uncertainty for anyone contemplating a long-term investment: who knows what the contours of future government exactions, restrictions, and requirements will be, and hence whether a particular investment will prove to be profitable or not?

Therefore, a major consequence of the Great Divergence — the starvation of private investment and the feasting of government -- is what I call regime uncertainty. This form of uncertainty is a pervasive incalculable apprehension about the future security of private property rights in capital and the income it yields to investors; indeed, a pervasive apprehension that extends beyond investors to include nearly all private participants in the economy — consumers, workers, and managers, as well as investors -- in regard to the future economic order. The Great Divergence in itself is very bad news. Its effects in enhancing regime uncertainty only make it more unfortunate for everyone outside the privileged precincts of government.



Robert Higgs [send him mail] is senior fellow in political economy at the Independent Institute and editor of The Independent ReviewHe is also a columnist for LewRockwell.com. His most recent book is Neither Liberty Nor Safety: Fear, Ideology, and the Growth of Government. He is also the author of Depression, War, and Cold War: Studies in Political EconomyResurgence of the Warfare State: The Crisis Since 9/11 and Against Leviathan: Government Power and a Free Society.



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Sunday, September 19, 2010

Choose Freedom: Ignore DC

by Michael Boldin
Tenth Amendment Center



EDITOR’S NOTE: A version of this article was originally published on September 16, 2009. The following is edited slightly for time and context.
*******
There’s plenty of federal holidays for Americans to celebrate.  On July 4th, there’s independence from King George’s England.  On the first Monday in September, a holiday was dedicated to the “social and economic achievements of American workers.”  Other days throughout the year celebrate autumn harvest, soldiers who died in the civil war and even a person who sailed to this continent nearly three centuries before the country was “founded.”
When there’s no federally-sanctioned holiday to call upon, protesters and activists across the political spectrum often pick “important” dates to schedule events to bring attention to their cause.  We’ve seen protests on Tax Day, Independence Day, May Day, Earth Day, and more.  And, in the past few weeks we saw great importance placed on days that doesn’t even have a letter in their name, 8/28 and 9/12.
But nowhere to be found on these great lists of “federal holidays” or “protest days” is a celebration of the document that defined the principles of liberty that this country was supposedly founded upon – the Constitution.
LIMITING POWER
The Constitution was signed on September 17, 1787, and every year that date passes by with hardly a sound.  Sure, now that it’s considered a day of “federal observance” you’ll find government schools around the country including it in their lesson plans.  But these discussions generally focus on “Constitution Trivia” instead of what’s really important. While it may be good to educate our young on how many years a Senator serves, or how Supreme Court justices are appointed, it’s not enough.  Seriously lacking in the public discourse is the actual purpose of the Constitution – its underlying principles.
When the Constitution was being considered for ratification, there was strong opposition from famous American figures that included George Mason and Patrick Henry. One major reason for this was a fear of too much power.  The founding generation spent their lives toiling under a tyranny – a government without limits.  But, when the Constitution was written, it was done to codify in law that the powers of government would be limited to those which had been delegated to it – and nothing more.
The entire system was created under the principle of popular sovereignty – that ‘We the People of the Several States’ created the government, and all powers not delegated to it, were retained. But that’s not something you’re likely to hear from politicians in Washington DC, political pundits, schools, or just about anywhere else.  It’s generally not in their interest, either.
If politicians and their backers were promoting such crazy ideas as “originalism” and “limited government” they’d never be able to convince you that they have the power to tell you what kind of health care plan you’ll be getting, how big your toilet can be, what kind of plants you’re allowed to grow, where you’re allowed to exercise your “right” to free speech, whom you can buy and sell from, and even when you must send your children to die for them.
MORE OF THE SAME
Throughout history, even kings and queens have often failed to survive such acts of hubris; but, in “free” America, the major parties that produce all the presidents continue to receive approval through tens ofmillions of votes.  And where has that gotten people?
Well, let’s take a look at some major issues.
  • If you were opposed to war in the Bush administration, you’ve still got the same wars and threats of wars under Obama.
  • If you were opposed to national health care under Clinton, you got a massive expansion of government health care under George Bush, which laid the groundwork for an even bigger expansion under Obama.
  • If you didn’t like the federal government passing the Patriot Act without even reading it, you’re still getting the same (or worse) failure to read legislation today.
  • On the other hand, if you liked the Bush bailouts, you’ve gotta love the ones that Obama has given you!
No matter what side of the political aisle you sit on, the federal government is not your friend.  It’s not a friend to the Constitution, and it’s certainly no friend to your liberty.  For years and years…and years, people have yelled “vote the bums out!”  “Call Congress now!”  “March on DC!”  But, in the long run, little to none of this actually works.
If you oppose this national health care plan, they’ll give you that one.  If you oppose one war, you’ll get another one. If you oppose today’s bailout, they’ll find a different one tomorrow.  Decade in and decade out, the government keeps growing, and your liberty keeps shrinking.  And it doesn’t matter if the person in charge is named Obama, or Bush, or Reagan, or Clinton.
The bottom line?  Looking to the federal government – whether it’s though elections, or protests, or lawsuits, or rallies – is a failed strategy.   So how about trying something new?
A DIFFERENT PATH: NULLIFICATION
People around the country are recognizing that there is a different path, and one that has a chance of working on a big scale, too. Already nearly a dozen states have passed 10th amendment resolutionsreaffirming the proper role of government under the Constitution. 25 states have stopped the real id act dead in its tracks in most of the country. 8 states have passed firearms freedom acts – to nullify some federal gun laws and regulations in their state. 5 states have already passed laws to nullify federal health care mandates – with more on the way. And, fourteen states now have medical marijuana laws in direct opposition to federal laws.
In Jeffersonian-speak, this all falls under the banner of “nullification.”  When a state ‘nullifies’ a federal law, it is proclaiming that the law in question is void and inoperative, or ‘non-effective,’ within the boundaries of that state; or, in other words, not a law as far as that state is concerned.
While some in government and the media would like to paint this essential tool for resisting federal tyranny as solely aligned with the South in the War Between the States – and nothing more, they’re missing some essential history.  It’s been used in efforts to advance free speech, help runaway slaves, resist high taxes and more.
And recently, the Bush-Era Real ID Act is now virtually dead in the water, not due to elections or rallies, or calls to Congress – but instead, due to state-level resistance. In the past three-plus years, approximately two dozen states simply refused to implement the law.  The result?  The law is still on the books in Congress. It’s never been overturned by a federal court. But yet – in most of the country – it’s virtually null and void.
Even better, this is no single-issue movement.  Legislators in over 20 states are considering legislation to nullify some federal gun laws, and another 20 are looking at ways to nullify national health care.  15 states are weighing legislation or ballot initiatives that could turn them into medical marijuana states by next year, and activists in over a dozen states have been pushing for legislation that would require their governors to bring national guard troops home from Iraq and elsewhere. On top of it, a national tour has been launchedin support of these efforts – something that may have been impossible just a few years ago
LIBERTY BEGINS WITH YOU
Issue by issue, law by law, the best way to change the federal government is by refusing to comply with it on a state and individual level. Withdrawing our consent for unconstitutional “laws,” acts, regulations….and mandates…has a much better effect than begging or demanding that DC limit its own power.
Over the years, wise men and women warned us that the Constitution would never enforce itself.  I believe it’s time for people to recognize this as fact, and bring that enforcement closer to home.
Whether you’re on the left, or on the right, or even somewhere in the middle, the path to freedom, the path to your political goals lies not in Washington D.C.  Instead, it lies in Madison, and Jefferson (City)…and other state capitols around the country.
So this Constitution Day take a new pledge. Ignore and nullify the federal government.  When it refuses to follow the Constitution year in and year out, it becomes as worthless as it is dangerous.
Michael Boldin [send him email] is the founder of the Tenth Amendment Center.
NullifyNow.com
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