How to Really Fix America

There are several simple modifications to American policy and to our US Constitution that would quickly set America on a path to prosperity and happiness.  They include:

  1. End America’s role as the world’s policeman  – follow the current Constitution’s prescriptions on the use of our military
  2. Abolish the IRS and replace it with a fee based system of funding for only Constitutionally defined activities the federal government can participate in
  3. Abolish all non-Constitutionally defined government activities with an all encompassing amendment to the US Constitution i.e. disbands cabinet roles such as HHS and Department of Education and governmental agencies such as as the EPA. This action will force the end of federal programs like Medicare, Medicaid, Social Security, etc
  4. Rollback all federal laws for victimless crime
  5. Strengthen federal laws on property rights, citizen on citizen violence, and fraud and coercion
  6. Provide each student under the age of 18 in America with uniform financial stipend that can be used for education and training at the institution of their parents’ choice
  7. Add an amendment to the US Constitution forbidding an income tax or ending the fiscal year without a balanced budget
  8. Stop all federal surveillance unless sanctioned by the terms in the 4th amendment to the US Constitution
  9. Reform immigration to include work permits, simple path to permanent residence,  and add an amendment to the US Constitution forbidding of federal aid to new arrivals
  10. Abolish the Federal Reserve and have legislative control over the current which would be backed by gold and other non-perishable assets

 

The results of these policies would be:

  1. Reduction in cost of national defense and a more popular America throughout the world
  2. Reduction in the cost of collecting funds for the federal government and elimination of corruption caused by the current tax code
  3. Reduction in the cost of government and the ability of citizenry to chose to localize services and the state and municipal level. There would now be a separation of government and business and government and healthcare, etc..
  4. Reduction in incarceration rates and the cost of administering justice with America
  5. Would offer American’s a more equitable and constitutionally sanctioned justice system
  6. Education is critical to a free society so a free parental choice based primary and secondary education would be provided to all students at a baseline level. The funding would come at the federal level from fees collected from selling, renting federal assets
  7. Keeps economic prosperity and assures continued economic justice
  8. Eliminates “Big Brother” for our lives
  9. Stops illegal immigration and assures America access to the world’s best and brightest
  10. Allows a sound money policy and uses market forces to guide interest rates and subsequent investments

 

Beware

Beware of the impact of state provided services.

Americans have been slowly losing control of various segments of their lives since the progressive era of the early twentieth century made it OK to federalize previously private activities. The Great Depression of the Roosevelt era codified this federal control over private business and personal behavior. U.S. Presidential PortraitsThis statist power grab has only accelerated since the nineteen sixties.  For example, Medicare and Medicaid have replaced the doctor patient relationship with regulations and a unaffordable bureaucracy.

The Department of Education has in many instances redefined previously locally determined protocol for educating American youth.  This same group has insidiously become more involved in post-secondary education and has created a $1.4 trillion student loan debt burden.

The state’s reach goes beyond these areas and is now involved in almost all activities American citizens participate.  Evidence of this fact can be found at:

https://www.usa.gov/federal-agencies/a

As the debate over Obamacare continues, please beware that if America adopts social medicine one day the state may McDonalds-Big-Mac-Mealoutlaw Big Macs in the name of keeping America healthy.

 

 

Why we lose our property

One of the most sacrosanct beliefs in a libertarian society is the free right to own property. In the most fundamental sense, this property includes personal possessions such as land, homes, automobiles, and other sundry valuables accumulated over time by an individual or family unit.  In almost in all cases, this private property is obtained from the fruits of ones’ labor; from participation in free market transactions whether from traditional manufacturing – selling of products, by delivering services and expert advice to someone willing to freely purchase them, or even by speculatively investing where one’s original investment is smaller than the final price obtained when the investment is sold.

How much fruit one obtains in a free society is often distributed unequally within the society and is dependent on a multitude of factors including hard work, skill, education, knowledge, experience, and even plain luck.

For some reason, statists despise the inequality of free markets and the fact that someone can be very successful and accumulate significant wealth by conducting free market commence.  To combat this undesirable feature of a capitalist society,  statists have created two large classes of the populace who can be ‘fed’ via the taxation or theft from all wage earners, even those who work within the statist system.  (Very strange, they give money to someone who works for the state and then tax them to pay for their and other government employees’ wages)

The first class to receive the benefits of redistribution of wealth are government employees. Now mind you, many of these employees provide value to society but given their relegation to being employed by the state instead of the private sector they become a protected class that must be supported by the forcible confiscation of wealth (fruits of one’s labor) from workers.

According to the census bureau’s Government Employment and Payroll measure, the number of federal, state, and local civilian government employees and their gross monthly payroll for March of the survey year can be found at. Survey of Public Employment and Payroll website >>

The number within this class is large and as of March of 2015, there are 14,425,359 people drawing wages via the forced taxation of private property.

The other class of people are those who are made dependent on the state for some portion of their existence.  These people receive the fruits of someone’s labor via programs like:

  • Medicaid
  • Supplemental Nutrition Assistance Program (SNAP)
  • Housing Assistance
  • Supplemental Security Income (SSI)
  • Temporary Assistance for Needy Families (TANF)
  • General Assistance (GA)

“Approximately 52.2 million (or 21.3 percent) people in the U.S. participated in major means-tested government assistance programs each month in 2012, according to a U.S. Census Bureau report. “

One final thought to ponder. Do you think these two protected classes (Government employees and people receiving means tested benefits) will ever support changes to our statist system?

 

 

Basic economic laws should not be thwarted

In the United States of America, the state continues to deploy failed policies that violate basic economic principles to the detriment of the entire society it seeks to control.   This failure can be seen in America’s Welfare State and progressive income tax program. The former subsidizes individual actions and life styles that can contribute to poverty and the later discourages income and wealth generation. Simply put, basic praxeology shows us when you subsidize something you will get more of it. Tax and regulate something you get less of it.

Since the amalgamation of the Revenue Act of 1916 and FDR’s New Deal, (in which the state used taxation, targeted subsidization, and regulation in an attempt to alleviate and or mitigate its definition of poverty among its citizens), the state began to extremely violate the aforementioned basic principles of human behavior.

In FDR’s “First New Deal” (1933–34), many programs were instituted using state subsidies to pay people who did not work and create new regulations for the banking and industrial sector which increased their moral hazard in an attempt to combat the impact and causes of the Great Depression.

FDR’s “Second New Deal” (1935–38) went further and fully institutionalized state involvement in the nation’s personal behavior in an attempt to address the effects of the ongoing economic crisis.  Programs such as Social Security and the Fair Labor Standards Act would change America forever.

The state, in its infinite wisdom, seeing less than satisfactory results from FDR’s New Deal, thirty years later further increased its involvement in Americans’ personal lives with new programs, subsidies, and taxes during LBJ’s Great Society.

Our aim is not only to relieve the symptom of poverty, but to cure it and, above all, to prevent it. No single piece of legislation, however, is going to suffice.”
– President Lyndon Johnson, 1964 State of the Union Address

Recently, according to the 2014 House Budget Committee Report, The War on Poverty: 50 Years Later the state’s return on investment has been less than satisfactory.  Below are some conclusions from the report showing failure of the state to eliminate poverty by not understanding basic human behavior:

The War on Poverty at a Glance
Despite trillions of dollars in spending, poverty is widespread:
• In 1965, the poverty rate was 17.3 percent. In 2012, it was 15 percent.
• Over the past three years, “deep poverty” has reached its highest level on record.
• About 21.8 percent of children live below the poverty line.1
In can be no surprise the state has failed to eliminate poverty if one understands the basics tenets of human behavior and the fundamental principles of economics.   The state’s policy violates them. Government programs targeted at poverty reduction/elimination encourage more poverty by encouraging a person to continue their current situation of being in poverty — receive payments and subsidies for having lower income, receive payments and subsidies for not working, receive payments and subsidies for having more dependents, receive payments and subsides for not completing high school, receive payments and subsides for not living a healthy lifestyle, etcetera.
The state also discourages work and thus wealth generation with its onerous job killing regulations which make it more costly for employers and entrepreneurs to create jobs and thus new wealth.
Additionally, the progressive tax system reduces the incentive to generate new wealth as its marginal income tax rates and capital gains taxes punish those who generate more earned income and investment generated wealth.
The state could easily rectify the current situation by eliminating all subsidies to individuals and corporations and stop taxing income and wealth.
1. “War on Poverty.” Http://budget.house.gov/uploadedfiles/war_on_poverty.pdf. United States House of Representatives , 3 Mar. 2014. Web. 8 Apr. 2017.

I was wrong, some places in America are totalitarian already

Leftist-statist fascism is in the news daily and there is no more non-tolerant place than American college campuses. These left leaning institutions have always supported state control of the economy and redistribution policy however, since the 2016 election, the statists have moved to a proscription against speech and freedom of association.

This contagion has spread beyond the traditional east and west coast statist bastions to small lower tier educational institutions in the Midwest.

A story on ZeroHedge,  Conservative Students “Violently Threatened” At Lutheran College

spoke of a situation that could have been reported in 1930s Nazi Germany.  This story is upsetting to any freedom loving American but it gets worse. There is a strong move among these same statists to create an economic crisis by not paying their obligations and then, get taxpayers to foot the bill for their obligated student loan debt.

Students Demand “Sanctuary” From Immigration Laws, Student Loan Debt, And Finals

The First Crack: $270 Billion In Student Loans Are At Least 30 Days Delinquent

Next Mega-Bailout On Deck: White House Studying “New Bankruptcy Options” For Student-Loan Borrowers

At 108 US Colleges, More Than Half Of Students Haven’t Paid Even $1 On Their Student Loans

The Student Loan Write-offs Have Begun: 78,000 Students File For Debt Discharge After Corinthian Closures

24% Of Millennials “Expect” Student Loan Forgiveness

“Cancel All Student Debt” – The Petitions Begin

To correct this we must remove the state from any and all influence in higher education and enforce the rights expressed in the US Constitution. Failure to do so will result in a loss of freedom and a very large tax bill to bailout students by paying off their debt.

Conversation with a statist

A few days ago, I was involved in a conversation with a leftist supporter of the Federal government’s venerable Social Security program. My position was the program is a Ponzi scheme and for all intents and purposes, it is insolvent.

The person I was speaking to, an ill-informed statist, was aghast that someone would question our Federal Government!

To be more specific about my concern, I went to paraphrase the Social Security Trustee report stating that even its caretakers know the program is failing as evidenced below.

“Social Security’s total income is projected to exceed its total cost through 2019, as it has since 1982. The 2015 surplus of total income relative to cost was $23 billion. However, when interest income is excluded, Social Security’s cost is projected to exceed its non-interest income throughout the projection period, as it has since 2010. The Trustees project that this annual non-interest deficit will average about $69 billion between 2016 and 2019. It will then rise steeply as income growth slows to its sustainable trend rate as the economic recovery is complete while the number of beneficiaries continues to grow at a substantially faster rate than the number of covered workers.

After 2019, interest income and redemption of trust fund asset reserves from the General Fund of the Treasury will provide the resources needed to offset Social Security’s annual deficits until 2034, when the reserves will be depleted. Thereafter, scheduled tax income is projected to be sufficient to pay about three-quarters of scheduled benefits through the end of the projection period in 2090. The ratio of reserves to one year’s projected cost (the combined trust fund ratio) peaked in 2008, declined through 2015, and is expected to decline steadily until the trust funds are depleted in 2034″.1

To close my conversation, I put the statist on the spot by promoting privatization and further pondering just how much worse could we, as individual citizens, do in planning for our own retirement than is currently being done by the Federal Government?

As no surprise, the statist could not respond.

  1. A SUMMARY OF THE 2016 ANNUAL REPORTS. Rep. Social Security and Medicare Boards of Trustees, 22 June 2016. Web. 11 Feb. 2017.