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Monday, July 30, 2007
David Strom :: Townhall.com Columnist
Let's Get Some Facts Straight
by David Strom
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There's normal life, then there's government.

In normal life, things change. Our fortunes go up, they go down. Our lives are in constant flux. One day we fall in love and move across the country, another we have a child or change jobs and our lives are magically altered.

Life as a consumer is much the same. A few years ago, few of us had cell phones. Today, people will stand in line for hours to buy a cool new iPhone because it is the one thing that will complete our lives that moment.

In real life, we break bones, change jobs, meet new people-our lives are chaotic. Generally things are getting better every year as we gain experience and the economy grows, but we all face lean years and flat. The primary task of ordinary life is to bring order out of chaos, each of us doing so within the small platoon of our family and friends.

Then there's the world of government.

In government, chaos is the enemy. Individuality is a problem. The change that we all inevitably deal with cannot be handled by a bureaucracy or by laws. Choice is the essence of freedom. The opportunity to improve our lives or start a new business or have children or do just about anything are variables that mess up their attempt to regulate and stabilize daily life into something they control.

This is why advocates of big government are always looking for ways to tame the inevitable chaos of life. Instead of people moving all over the place in individual cars, they want a centralized transportation that moves masses of people all to the same places.

Instead of a health care system with millions of individuals choosing personalised health care options and thousands of doctors practicing numerous approaches to medicine, they want a centralized and regulated universal health care system. Instead of the seeming chaos and uncontrollability of free markets, they prefer socialized or centrally controlled systems. Instead of the "creative destruction" of capitalism they prefer socialism or "third way" policies that undermine freedoms to choose and the chaos that involves.

It's pretty clear to see who stands on what side of the dividing line between the reality-based freedom and inevitable chaos of life and the ever expanding role of government and regulation and stasis in life. Republicans have until recently been on the side of freedom. Democrats have stood for stasis and the increasing regulation of daily life.

This is a broad generalization, of course. Bill Clinton, for all his flaws, expanded trade abroad, opened markets, and for his efforts (against the will of the majority of his party) presided over one of the great booms in American economic history. Once Hillarycare was defanged, Clinton was a pretty good President on economic issues.

Bush has had a mixed record, largely because the growing anxiety of parts of his coalition to the inevitable upheavals that international trade has brought along with prosperity.

By any measure, though, living with chaos and creative destruction is better than the alternative. A brief glance at the economic agenda of the Democrat Congress shows a bizarre nostalgia for the economics of the 1950's, when Americans were immeasurably poorer but lived more predictable lives.

Americans have traditionally understood that our society is based upon infinite opportunity, not assured mediocrity. And the simple fact is that any attempt to smooth out the disruption that come with freedom undermines the creative destruction that has been the engine of our economic growth for over 200 years.

Change and contingency are the prices we pay for increasing prosperity and the freedoms we enjoy. Communism and Socialism are proven failures as prosperity generators, although they promised and failed to deliver equal access to poor products and health care for all.

The American experience, on the other hand, is that every time we try to tame the vicissitudes of life we undermine freedom and slow the march to greater prosperity and opportunity for all. Contrary to the luddites of today, Socialists and the Michael Moore fanatics, the worst products and medical care available in America exceed the best almost anywhere else in the world because we are prosperous.

America is not perfect. But in almost every case the solution to our problems is less government control rather than more. Even the most egregious market failures are small prices to pay for the progress and prosperity almost every American enjoys. And for those market failures, private initiatives rather than government solutions will provide a superior solution in the end.

July 31st marks the birthday of Milton Friedman, one of the greatest minds of the 20th Century. His legacies include the all-volunteer army (the best in the world) and a movement toward deregulation of our economy that has helped create the single-longest period of economic expansion in world history.

His life's work was evangelization of freedom to choose. We would do well to honor his memory by taking up the banner of freedom against all those who want to regulate, stabilize and neuter our freedom to choose.

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About The Author

David Strom is the President of the Minnesota Free Market Institute. He hosts a weekly radio show on AM-1280 "The Patriot" in Minneapolis-St. Paul, available on podcast at Townhall.com.

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Our Tax Dollars at Work
Yes, and need I remind all you Republicans out there that George Junior has increased the size of the federal government more than any president than (yuck) Johnson. His Homeland Security has been a fiasco. If any of you feel safe with this agency, which has had a multitude of screwups, you need to read the papers.

They now allow people to bring 4 inch knives on planes, but heavens forbid you have more than 2 ounces of shampoo. This agency has been nothing but a waste of our tax dollars.

Mary C.

HalO
You are the most annoying poster on here. Do you have anything good to say about America anyway? Didn't your mother tell you if you didn't have anything good to say don't say anything? I understand you are nothing but a Canuck anyway so perhaps we are dealing with a jealousy thing here I don't know. However I am sickened by your constant anti-American BS. Regarding the American military they have not lost any battles and the enemy could not possibly win a head to head military engagement. The problem is the enemy sneaks around in the shadows and kills indiscriminately without anyone ever know ing who or where he is. Kind of like your posts. And don't ever forget - it is American Military that has guaranteed Canada will never be attacked - not the Canadian military eh.

fowg
You said it about right
Regulations ARE nearly endless. And people are going to have to raise hell to get it stopped.

I also strongly believe that eventually bullets
will fly before socialism is brought to heel.

We all hope it doesn't come to that, but HOPE seems lost.

toro
That was a good list--real good, but i'll bet you left out another 40 or 50 items of confiscation er i mean tax.

Government Reality, need I say more?
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (42 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage Tax
Sales Tax
Recreational Vehicle Tax
School Tax
State Income Tax
S tate Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax

Francis W. Porretto
I would add to Porretto's list of things that define socialists, an ineptitude at critical thinking. Academic institutions today do not teach the difference between fact and opinion. College graduates do not know how to think. The naive liberals who always want something for nothing do not know how to sift thru the rhetoric of political talk. They swallow whatever is said without asking for proof of anything. They think if they hear it on television, it must be true. If a celebrity declares it, enough said.

This is not really a lack of education, although a lot of uneducated people are included in this group, but much of what passes for education among liberals is really just indoctrination. This makes them easy prey to tired idealistic messages that have been tried and failed again and again.

Good article
... and don't forget that the whole concept of government economic management that we now live under presupposes a static model of economic activity. The Fed is still ministering to the industrial economy at its apogee of the 1950s -- encapsulated in the publicly traded blue chip company and its pension-bound, consuming but non-wealth-holding workers.

I'm not sure there's an alternative to the Fed, or whether we'd be better off without it. But there's no question the overarching concept of today's government economists demands promoting investment through market securities, and is unfavorable to decentralized, individual investment predicated on equity in real property, and resulting in small businesses more than in the expansion and spin-off of large ones.

Hence the Fed looks to raise interest rates for the purpose of attracting investment in market securities -- soaking up "excess liquidity," which its models deem responsible for inflation. The impact on home equity is unfortunate, in the economist's mind, but not detrimental to the "real" engine of economic success: large publicly traded companies.

We'll see how well the economy performs, as declines in home equity begin to affect the business start-up decisions of would-be entrepreneurs. Far more people and processes are affected by this than just those who got into mortgages whose eventual terms they didn't sufficiently consider. Millions of people who are well capable of staying in their homes, even when the market value declines, may still end up postponing business start-ups as their equity shrinks.

The dynamism of the American economy has always been attributable to the comparative ease here of owning real property securely and starting small businesses. Seventy percent of new jobs at ANY time come from small business hires, and about eighty percent of small business start-ups are backed, either directly or through sources of venture capital, by equity in real property. And all of today's large businesses started as small ones; the only difference among them is how far in the past that was.

Moreover, with a fast-growing and increasingly wealthy population, there is no underlying reason for average real estate values nationwide to decline at all. Some will decline in some parts of the country, at some times, of course. But there is nothing preordained about the popping of a real estate "bubble" -- the Fed is busy popping it by favoring another, competing priority through the setting of interest rates.

The idea that there is a perfect interest rate at which investment is attracted "correctly" while real property investment is not discouraged "excessively" is one of those searches for stasis. It presupposes a single model of economic success, and strives to conform with it.

That we continue to buy into that idea is, at the very least, interesting. We need to recognize, however, that we are where we are BECAUSE of government intervention, not in the absence of it. Bad mortgages haven't created the real estate market decline. They are merely the most painful short-term consequence of the Fed's determination to promote investment in market securities, at the expense of home equity expansion.

halo-baloo
Sheez, man. You vilify Friedman and elevate Pat Buchanan? PB column asks, seemingly rhetorically, should massive foreign (state) holdings be allowed to invest in US companies? Absolutely. Otherwise let these companies go back into private concerns and voila - non issue. PB hints at the dark side of outsourcing without mentioning the insourcing that's going on at a similar clip. And what of outside investment? He makes it sound like a looming shadow of death, but the fact is you cannot get away from game theory. Once you have an interest in an organization you're going to try and maximize the returns, not undermine it. But Buchanan hints without subtlty, though cannot name it, that some forces exist that will upend the whole schema...and then you're in for it! No. Globalization is good. When common interests are shared across borders you can bet political rhetoric is just that. Regards.

FOWG
Not a single instance? How about the National Do-Not-Call Registry?

I agree with the premise, but anyone
with 2 brain cells that talk to each other would agree that more government equals less freedom. I have said for quite awhile now that the equation that provides for a chance of success, must also include the chance of failure. Remove failure from the equation and success is also removed.

As to the "boom" you attributed to Clintooon, that was a bubble not a boom. If you don't know the difference, ask Dr T. Sowell to explain it to you. The only reason that spending was under somewhat of control was the '94 landslide victory and the "contract with America" that was still being implemented by those new Senators and Congressmen. It is too bad that with time and scandal, they lost their momentum and became big government mules led by the biggest mule of all, Bush. I don't remember exactly when he announced that he had given up the goal of a smaller government, but that is the day we should have had him removed and replaced with a true conservative. His inability to deal with his domestic enemies is his biggest failing. That and trusting incompetent friends with high level, high visibility positions from which to feed the enemies enough fat targets to launch 300-600 seperate investigations into everything, including how many sheets of TP Bush uses with each trip to relieve himself! Sarcasm alert!!

Be nice to HalO for once
At least he got through a post without adding "Zionist AIPAC neocon" to "capitalist voodoo dancers".

HaLO
Looks like the "VOLAR" people you mock are finally getting a handle on the enemy and taking the fight to him in a really lethal and effective way. Am I annoyed it took 3 extra years to get to this point? Yeah I am. However we've gotten a lot of well trained line officers and non-coms in the process of this OJT and now they are doing great work.

I also believe the Iraqi populace is about to arrive at the conclusion their politicians are their main problem (sound familiar?) and begin demanding social change/peace from the bottom up. I think this soccer tournament victory might be a foretaste of the public vs. politico sentiment. IF (big if) that happens - there's a testimonial for freedom over government for you.

Anyway I've seen government health care up close and it scares hell out of me.

The dangers of lockstep
In a world where people with one ton truck bombs are routinely paroled to their Mommies within days of their arrest, the one thing that makes absolutely no sense is "Instead of people moving all over the place in individual cars, they want a centralized transportation that moves masses of people all to the same places."

Anyone with an ounce of sense who stood in our building, which is in the heart of the Financial System of Canada, would observe that the whole place ebbs and flows like the tides as the Proles and their handlers march into the Financial Centre at 8:45 a.m. and out at 5:16 p.m. -- that they are all in the elevators in buildings up to 62 floors tall between 11:30 a.m. and 2:00 p.m. and at 10:30 and 3:30 -- and thattwo children of eight can paralyze the main subway system with perfectly timed jabs at the emergency stop system ... and that the more they continue to insist that everyone move in lock step, the easier it is to destroy the whole system with maximum carnage as an added bonus.

In a world where known terrorists are routinely sent home if they cry with homesickness, why are the Proles allowing themselves to be jammed into high rise buildings set as close together as possible, so the next 9/11 plane can fly down Lakeshore Drive and go through not one building, not two buildings, but a fat feast of buildings ... or even more effectively could drop a plane on our antiquated power grid and turn downtown into the jungle it is only a molecule away from even on a day to day basis.

Lockstepping the larger society makes it fantasically easy for the rogue independents with motive, means and opportunity to bring it to the ground. Yet that is what we insist doing. March all the sheep into the same pen and refuse to lock up or even identify the wolves -- and then insist that the doors of the pen be left open ...

Yep, makes really good sense to me. If I were suicidal about my country that is exactly what I would do.

Well put...
...but we remain where we are politically despite the clarity of the message and the number of articulate conservative voices straining to spread it. Why?

There are as many varieties of government worship as there are worshippers, but a small number of threads run through them all:
-- a fear of freedom (others' freedom, of course);
-- a conviction of intellectual and moral superiority;
-- an inability to accept that systemic social and market processes deliver better results, overall and on net balance, than governmentally imposed "solutions" concocted by a "wise elite."

All of these fundamental propellants of statism are exceedingly hard to counteract. One can hardly argue against the first two. The third is almost as resistant, since he who propounds a "solution" to some "problem" can always find a reason to believe it will be superior to a spontaneous-order development...even if it's failed innumerable times in the past. ("The right people weren't in power.")

There's a great frustration in having identified the bacillus that threatens our polity, yet in being unable to kill it. No doubt many conservatives, once passionate about retaking America from its would-be mandarins and reinstituting its Constitutional order, have left the field for that reason and no other. It's a pity, but what could we possibly say to them? "In a good cause, there are no failures" -- ? "If we give up, they win by our default" -- ?

Maddening.



Socialiism
Yeah...most of us fully understand this. It is pretty basic stuff. I cannot think of a single area where my freedom has expanded in the last 50 years. From local zoning boards insisting on standards of housing to a plethora of federal agencies limiting my choice in automobiles, fuel and demanding my uncompensated time* to restrictions on firearms ownership, the list of regulations is nearly endless.

Take a look in any lawyer's office. Note the walls filled with books resricting the actions of a "free people". It is insane.

The author offers no solution....I am afraid bullets will have to fly to reverse this madness.

* I received a questionaire from the Dept. of Commerce based on my address. It is full of questions designed to aid my local commissars in determining the best ways to utilize "federal funds" for further left wing programs. This was NOT a request. They made it clear that failure to conform will result in legal penalty. We'll see.

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