Quotes:
Among the worst aspects of the collapse of traditional conservatism is that my children will grow up in a world in which vulgar and belligerent nationalism will be presented to them as the alternative to leftism.
To the extent that the market plays less of a role in society, to the very same extent do arbitrariness and force take its place. If the free interaction of property owners is not permitted to determine the terms on which individuals will interact with each other, the barrel of a gun must do so instead. Then we’ll see which system treats everything as “an object to be used.”
There is no connection between higher education spending and higher SAT scores. In fact, some of the highest scores are earned in states that spend the least on education. Washington, D.C., which spends the most, is dead last.
In fact we don’t need Hillary Clinton or John Edwards, Rudy Giuliani or John McCain, to “run the country” (to use an infelicitous if unfortunately common phrase) or to make us prosperous. A free and responsible people can manage its affairs without the platitudes and paternal custodianship of a Great Leader, and exhibits no superstitious reverence toward the occupants of political office.
Opponents of laissez faire have spooked public opinion with a combination of bad history and worse theory. The average person, although in possession of few if any hard facts in support of his unease at the prospect of laissez faire, is nevertheless sure that such a dreadful state of affairs must be avoided, and that our selfless public servants must protect us against the anti-social behavior of the incorrigible predators in the private sector.
Merchant law developed in medieval Europe without the involvement of the state. This is particularly remarkable given that it sought to provide dispute resolution and basic legal standards across a wide territorial expanse that included peoples who spoke different languages and practiced different customs
The ratifying conventions, according to James Madison, are where we look for our understanding of the Constitution. Even before the Tenth Amendment codified the principle, we find one ratifying convention after another saying that the federal government would have only the powers “expressly delegated” to it. This was the basis on which the Constitution was ratified. At Virginia’s ratifying convention, skeptics of the Constitution were even told that if the federal government took one step beyond the expressly delegated powers to impose “any supplementary condition” upon the states, Virginia would be “exonerated.”
Depositor losses amounted to only 0.1 percent of GDP during the Panic of 1893, which was the worst of them all with respect to bank failures and depositor losses. By contrast, in just the past 30 years of the central-bank era, the world has seen 20 banking crises that led to depositor losses in excess of 10 percent of GDP. Half of those saw losses in excess of 20 percent of GDP.
If the market is freely allowed to re-price assets, which was the phenomenon we were terrified into not wanting to occur, that doesn’t change the amount of physical stuff in existence. The assets themselves may be redistributed to new owners in bankruptcy proceedings, but the world has just as much stuff as it did before. Ownership titles are transferred, and a leaner outfit with more competent leadership moves the economy forward. An important lesson is learned for the future.
The Austrian School argues that manipulation of interest rates causes discoordination across the structure of production, that this disfigured structure is unsustainable, and that the inevitable result is the bust.
Americans are faced with a choice between the Stupid Party and the Evil Party. And that once in a while the two parties get together and do something that’s both stupid and evil, and that’s called bipartisanship.
Since the Fed was established in 1913 the dollar has lost 95 percent of its value. The Fed has given us more financial bubbles than we can count. When it inflates the money supply it lowers the value of the dollars in Americans’ pockets and hurts society’s most vulnerable. It redistributes wealth from the middle class and the poor to the politically well connected.
F.A. Hayek won the Nobel Prize in economics for showing how central banks like the Fed create the boom-bust business cycle in our economy. When the central bank manipulates interest rates, it causes massive discoordination. The interest rate is supposed to coordinate production across time, but it can do so only when it reflects an aggregate of voluntary choices, not the whim of the Fed chairman. Entrepreneurs are misled into making investments that make no sense in light of current resource availability. The Fed’s intervention starts the economy on an artificial boom that ends in an inevitable bust.
The very existence of the central bank institutionalizes the problem of moral hazard. Moral hazard involves an actor’s willingness to behave with an artificially elevated level of risk tolerance because he believes any losses he incurs will be borne by someone else. Since there is no physical limitation on paper money creation, market actors know the paper money producer can bail them out if things go terribly wrong. They have been vindicated in this belief time and again. They will, therefore, be more reckless in their investment activity and speculation than they would in the absence of such a system.
It’s sadly amusing to observe progressives functioning as shills for well-connected banks and businesses, but that’s precisely what they’re doing by mindlessly supporting the Fed and assuming all its critics to be cranks and fools.
The Fed doesn’t just benefit the well connected; it also harms those who aren’t so well connected. We know inflation hurts people on fixed incomes (since their incomes stay the same while the prices for the goods they buy go up), but what people usually overlook are the distribution effects of inflation. More money in the economy normally means higher prices. But when the government spends billions of dollars created out of thin air (yes, the Fed can do this) on the defense industry, for example, defense firms get the money at the very beginning of this process, before prices have commensurately risen. In effect the economy doesn’t yet know how much the money supply has increased, and prices have not yet adjusted accordingly. By the time the new money makes its way through the whole economy, prices will have risen throughout most if not all sectors.
The dollar has lost over 95 percent of its value since the Fed was created. Now had the value of our money declined by 95 percent under the gold standard, the progressive would cite that as evidence against gold. When the government is responsible for debasing the currency to that extent, on the other hand, the matter is passed over in silence.
Now it’s bad enough that the federal government loots rich and poor alike. Much worse is when its victims, too bamboozled by state propaganda to know any better, cheer on the looting, and solemnly warn their fellow citizens about how frightening and perilous life would be without it.
Thomas Jefferson was not unaware of, and did not deny, the Supremacy Clause. His point was that only the Constitution and laws which shall be made in pursuance thereof shall be the supreme law of the land. Citing the Supremacy Clause merely begs the question. A nullifying state maintains that a given law is not “in pursuance thereof” and therefore that the Supremacy Clause does not apply in the first place.
The Constitution is supposed to establish a federal government of enumerated powers, with the remainder reserved to the states or the people.
The very structure of the system, and the very nature of the federal Union, logically require that the principals to the compact possess a power to examine the constitutionality of federal laws
We are asking under what conditions liberty is more likely to flourish: with a multiplicity of competing jurisdictions, or one giant jurisdiction? There is a strong argument to be made that it was precisely the decentralization of power in Europe that made possible the development of liberty in Western civilization.
Alleged supporters of “diversity” are the ones who most insist on national uniformity.
Local self-government was what the American Revolution was fought over, but we’re told this very principle, and the defense mechanisms necessary to preserve it, are unthinkable.
The inhumane system whereby a single city hands down infallible dictates to 310 million people is not a fated existence. Jefferson and others proposed an alternative, one we might wish to revisit in light of how obviously dysfunctional the present system has become.
I’m not entirely sure why the old America is so unpopular, though part of the reason is that few Americans have been allowed to discover it. When they do, many want to recover it.
What emerged from the Philadelphia Convention was a federal government with enumerated powers, not a national government with plenary authority.
Madison took a more honest route. Although he preferred a national government, he acknowledged that such a thing was neither what had been drafted in Philadelphia nor what the people ratified in the conventions that followed. So he defended not what he wished had been ratified, but what had actually been ratified… It was this Virginia understanding of the meaning of ratification that Madison defended in the famous Virginia Resolutions of 1798 and the follow-up Report of 1800, where the states as the parties to the federal compact were said to possess the sovereign right in the last resort to prevent the enforcement of an unconstitutional federal law.
Jefferson was a principal architect of the compact theory of the Union, which conceives of the United States as a collection of self-governing, sovereign communities (the states). (More precisely, it is the peoples of the states who are sovereign; no government is sovereign in the American system.)
When the Constitution was to be ratified, it was ratified by each state separately, not in a single national vote. This simple historical overview establishes a very strong prima facie case that the states remained sovereign and were never collapsed into a single whole.
When a conflict arises as to whether a particular power was delegated to the federal government or reserved to the states, the states must be the ultimate judges; they are the proper disputants in such a case. It would be logically backward for the principals to ask their agent whether that agent was intended to have a particular power.
Zero money market rates are the mother’s milk of gambling and speculation in the financial markets, and the Fed is massively empowering people to speculate. That’s why we get the bubbles. That’s why we get the busts. That’s why we get the destructive cycle that we’re in today.
Those who possess great wealth – especially those who inherited that wealth – may in fact prefer to inhabit a system of intervention, which is more likely to keep existing patterns of wealth frozen. Little wonder that American business magazines during the Progressive Era are replete with calls for replacing laissez-faire – a system in which no one’s profits are protected – with government-sanctioned cartel and collusion devices.
There is no stable, long-term substitute for the free economy. Interventionism, even on behalf of such an ostensibly good cause as social welfare, creates more problems than it solves, thereby leading to still more intervention until the system is entirely socialized, if the collapse does not occur before then.
With the unfunded liabilities of Social Security and Medicare in excess of twice the GDP of the entire world, this has to end badly.
Discussing state nullification in front of progressives is, unfortunately, like waving a crucifix before Dracula. Despite its horrific persecutions of minorities, its totalitarian revolutions, and even its genocides, they demand we believe the centralized modern state is a wonderful, progressive force.
A single city hands down infallible decrees for 310 million people, and we are to believe this is the most humane form of political arrangement. The old progressive slogan question authority is long, long gone. Practically no conventional belief is ever seriously questioned by progressives.