Wednesday, November 21, 2012


Revised 12-8-2012

by James Craig Green

“Government is the great fiction through which everybody endeavors to live at the expense of everybody else.” – Frederic Bastiat

Throughout history, governments of the world have often ruled their citizens with an iron hand, using plunder, extortion and every conceivable kind of murder to keep them in line. Apparently, millions of people today think that “democratic” governments, in which a minority of citizens is allowed to vote for a few government “leaders,” have grown beyond the obvious and destructive tyranny that characterized monarchies and other forms of totalitarian dictatorship in the past.

Nothing could be further from the truth.


Just about everybody, at one time or another, complains about government. But, almost no one understands what the REAL problem with all government is, and why, on balance, government always creates more (and worse) problems than it solves. This can never be changed by politics - the ongoing charade that people are in control of those who enslave them.

The main problem with government is that it is based on aggressive force - like the Mafia - except the Mafia doesn’t pretend to represent everyone, least of all the majority who never gave its consent to be governed. Today's governments are world champions of plunder, extortion, and destruction (PED). As legal organized crime, government makes the Mafia look like amateurs by comparison. Sadly, too many believe that because a handful of government officials are elected “democratically,” their plunder, extortion and destruction are excused, or at least necessary. The most common - and fraudulent - phrase to convey these excuses is the “Public Interest.”

The “Public Interest” is the magic phrase, like “Open Sesame,” that allows virtually anyone in a democracy to become a special interest, supposedly deserving of some freebie from the government at the expense of everyone else. Anyone can run to a legislator, with a self-interested proposition disguised to be in the “public interest,” to easily inflict any manner of tyranny on his fellow citizens. This often includes government subsidies to business (promoted by chambers of commerce, government contractors and unions). These special interests, who are "more equal than others," enjoy government benefits and the ability to influence and regulate the nonviolent lifestyles of others and inflict their prohibition of anything they deem to be offensive.

Multiple election frauds recently committed by Obamites in blue states are Exhibit A. When 5-8 percent more votes are cast than registered voters in some precincts, and you hear nothing on the national news... you can be pretty sure the American Republic is dead.

The second biggest problem with government (arguably for some, the first) is that it bestows billions of dollars of benefits on people who do not deserve them. No one who receives or is assigned to allocate money, property or other resources belonging to others will ever spend that money as carefully or as thoughtfully as those who earn it or benefit from its investment. If your investment broker constantly skims money from your account, without higher gains, you can fire him by switching investment companies. But with government, your complaints will put you on lists with terrorists and other criminals, as a danger to the state. Bureaucrats who lose, malinvest or waste taxpayers' money almost never lose their jobs. Such waste is too often a recipe for increased taxpayer funding next year. So, the perverse incentive is to continue it, with little risk to the incompetents, thieves and parasites who maintain the fraudulent idea of "public service." 

Because it is based on PED, government cannot act responsibly with other people’s money. I didn’t say will not, may not, would not or should not - I said CANNOT. This is because it pretends to represent them, when only a small minority of them voted for the political winners in the electoral charade. In other words, a majority of citizens is never directly represented... at least not at the national level, where dollars are printed with abandon to keep incumbents in office.


Neither can anyone else represent such a diverse collective, but there are practical limits on private abuses that don’t apply to government. The lack of real, practical limits on government power, abuse of that power, corruption, fraud and tyranny all derive from one simple, undeniable fact:


Worst of all, this legalized theft and tyranny is condoned, justified, apologized for and patriotically promoted by the vast majority of people who have been brainwashed into believing that government, on balance, produces positive benefits in the creation of wealth.

It doesn’t - and never has.

It has always been a drain on society, for a privileged few. Modern democracies have simply replaced the divine right of kings with the divine right of mobs, where your neighbors can become tyrants with enough savvy manipulation of the system. No one voted for the vast armies of unelected bureaucrats who enjoy guaranteed lifetime jobs and generous pensions at the expense of the taxpayer. Nor, can they be fired for incompetence or sloth in most cases.

Government appears to produce "freebies" without any (or little) cost, because their true costs are hidden and confused - jumbled up within a labyrinth of laws, regulations, promises and misunderstandings. We’ve all read and listened to media reports how reducing taxes hurts people, and how raising taxes produces all kinds of benefits. For business to operate this way, only gross revenues - but no costs - would be reported to shareholders and the public. This is normally called fraud, but not when done by government.

It is incredible and outrageous that so many people buy these stupid, erroneous, one-sided arguments, promoted constantly by government apologists everywhere. Perhaps the most confusing thing is that the most vocal of “anti-government” Republicans are not anti-government at all, as they usually benefit directly from ever-growing sums of government money. George Orwell (author of “1984" and “Animal Farm”), if he were alive to describe all this, might say something like, “Theft is freedom, taxes are profit and war is good for your children.” Of course, any politician who wants to get elected today must speak in such gibberish, so as to attract the maximum number of unthinking voters to his cause or candidacy.

Government always makes promises it can’t keep, as the political process demands it. The intoxication of lifetime benefits from taxpayers encourages legislators to promise things people want, while pretending it can produce the money to pay for such things without net cost, effort or loss. The myth of government is its naive perception as an endless wealth machine, which it is not. On the contrary, government in every society or country is the greatest enemy of its own people and the largest drain on their national wealth. But, because there are so many government programs offering freebies at the expense of freedom, a nation of junkies continues to allow - and even encourage it.


Today, the U.S. government chases its citizens to tax them all over the world, no matter in which country they make money or reside. However, other countries tax their citizens only for income made in those countries. This produces the worst of all worlds for the U.S. taxpayer - foreign visitors can make money here without being taxed by the U.S., but U.S. citizens cannot enjoy the same benefit for money made overseas. Some smart businessmen realize it may be better to become a citizen of another country, and just visit to do business in the U.S.

Ironically, the U.S. is a great tax haven for everyone but Americans! This is why raising taxes on rich Americans can never produce more than about 20-22 percent of GDP - and even then only for short periods. The rich can simply leave, retire or donate large portions of their wealth to charity instead of letting it be confiscated by government. This is why the maximum income tax rate in the year I was born (1945) was 94% and is now 35% - without materially affecting average revenue at 19% of GDP - as shown in the graphic below.

                   (CLICK GRAPH TO ENLARGE)

The rich have too many options, and are too smart to let government confiscate their wealth - which they can accomplish LEGALLY in most cases. The law has aways favored the wealthy - especially in the modern welfare state, which has always protected them first. The poor are driven into dependency, sloth and depression by fraudulent government promises of prosperity without effort. This magical thinking has produced generations of victims who chose the easy way out, which turns out to be the worst thing for them. Many will not survive the next, most severe economic downturn, which is now inevitable.

Just about anyone can be bought by government by throwing freebies at them, at taxpayer’s expense, and here’s the juicy part: you will not go to jail for accepting the government’s gifts to you. However, refuse to pay for someone else’s freebies, and you instantly become an enemy of the state, deserving all its criticism and brutality.

Sadly, the U.S. Constitution - elegantly designed to prevent the democratic free-for-all of American government that exists today - has been neutered, like an obnoxious dog, so it is no longer effective in protecting any minority, especially the individual, from the mob. The uncontrollable democratic tyranny of majority rule has replaced the limited Republic of James Madison, and is destroying the America we have known and loved with the dangerous narcotics of government freebies, dependency and public debt which have long passed sustainable levels.


Ironically, today’s neoliberals sell their brand of tyranny through the mantra of an ever-expanding welfare state. Just as ironic, today’s neoconservatives fight for every scrap of government handouts they can get, as everyone knows government is the very best client for business. It appears to have a stabilizing influence over the risky ventures of the marketplace, because it commands people to do things they would not voluntarily choose to do. This seems like a good idea when talking about controlling axe murderers and child molesters, but generations of government-educated idiots continue to promote the fantasy that government can produce prosperity or a net gain without effort. All it “produces” is hidden taxes, inflation and escalating debt that is, and will continue to be, foisted on our children, grandchildren and their descendents - until corrected by economic collapse.

Of course the collapse, as usual, will again be blamed on Laissez-Faire Capitalism - something absent from the U.S.for more than a lifetime.


If neoliberals really believed their mantras, they would pass a law raising the minimum wage to one million dollars per year for everyone. However, if stated this bluntly, no one would take them seriously. Few seem to realize that the same silly logic and extreme consequences from this minimum wage law are the same as for current, more modest proposals. Only the numbers are different, while the poor and uneducated suffer from the unintended consequence of not qualifying for work because their skills are not worth the minimum wage. Of course, union members have long since used the minimum wage - which does not affect them - as a means of reducing competition for their labor.

I notice the spelling checker in this program has the word “neoconservative” in its database, but does not recognize the word “neoliberal.” How revealing: Too many folks seem to think that wonderful Latin word for freedom ("libertas") somehow still represents what the modern liberal wants, instead of the tyrannical democratic socialist welfare state s/he clamors for with every breath. No amount of government is too much government for a neoliberal. Tragically, neoconservatives are only slightly less tyrannical in their outlook, choosing corporate welfare instead of welfare to the poor. Both are destructive. Neoconservatives fall way behind neoliberals when it comes to personal freedom and alternative lifestyles that offend them, however. The ongoing destruction of the American Republic is big business for those politically connected, at the expense of others. After Roosevelt but before Obama, Republicans grew government faster than Democrats, as shown by the graphic below, which I researched and published in 2009:

                            (CLICK GRAPH TO ENLARGE)

Today of course, U.S. government debt exceeds $16 trillion, with ANNUAL deficits exceeding a trillion dollars in each of the last four years. Apparently, Obama's 2008 campaign promise to cut deficits in half was a joke, as they increased by more than half.

"Law cannot organize labor and industry without organizing injustice."
Frederic Bastiat

If neoconservatives really believed their bluster, they would immediately demand that the federal government be cut back to its constitutional limits. But wait! That would eliminate their sweet deals as government contractors – selling lots of overpriced, worthless stuff to governments who don’t have to worry about how to pay for it (since the Fed can just print more dollars). The irony of all ironies is that conservatives still fancy themselves as believing in free markets, which they haven't since long before President Roosevelt was elected in 1933. When bloated military budgets are called “defense” when their true purpose is war, and by subsidizing tyrants of every persuasion, anyone with a clear head would break down hysterically laughing, if the consequences of this stupidity were not so tragic. Egypt and Syria, of course - beneficiaries of billions of dollars in U.S. freebies - are such good friends to the U.S. that they contributed Osama Bin Laden and his insane terrorists who flew planes into buildings on 9/11/2001.  

There is nothing remotely related to freedom in any liberal or conservative political agenda today. Both groups of headless horsemen congratulate themselves on being in “control” of government, while deluding themselves into believing they will somehow be protected from the angry mob when the freebies stop flowing.

With record levels and escalating rates of public and private debt, it’s only a matter of time before the system of national government we know in the U.S. self destructs. If the poor think they are in bad shape today, wait until the freebies dry up.

Many otherwise reasonable people in democratic countries (like today's U.S.) sincerely believe that government produces positive good, and at worse is a necessary evil. This is because the benefits of government freebies appear obvious to all who can see them, but the costs are hidden or assigned to some other entity. For example, in 1913, the U.S. Congress created the Federal Reserve, a private banking cartel, and bestowed on it Congress’s constitutional power to regulate the nation’s money supply. This, and the creation of the income tax (previously declared unconstitutional by the Supreme Court) in the same year financed the U.S. to enter World War I, which had been fought to a stalemate by all sides. If ever there was a stupid war, it was World War I, the results of which almost demanded the rise of a dictator like Hitler to produce World War II, plus an oppressive welfare/warfare state thereafter.

The rest, as they say, is history...

"Giving money and power to government is like giving whiskey and car keys to teenage boys" - P.J. O'Rourke

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