Tag Archives: taxes

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Headed Toward the 11th-Hour Compromise – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
December 14, 2012
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As the year draws to an end, America faces yet another Congressionally manufactured crisis which will likely end in yet another 11th hour compromise, resulting in more federal-government growth touted as “saving” the economy.  While cutting taxes is always a good idea, setting up a ticking time bomb with a sunset provision, as the Bush tax cuts did, is terrible policy.  Congress should have just cut taxes.  But instead, we have a crisis that is sure not to go to waste.

The hysteria surrounding the January 1 deadline for the Budget Control Act’s spending cuts and expiration of the Bush tax cuts seems all too familiar.  Even the language is predictably hysterical: if the federal government reduces planned spending increases by even a tiny amount, the economy will go over a “fiscal cliff.”  This is nonsense.

This rhetoric is based on the belief that federal spending sustains the economy, when in fact the opposite is true.  Every dollar the federal government spends is a dollar taken from consumers, businessmen, or investors. Reducing spending can only help the economy by putting money back in the hands of ordinary Americans.  Politicians who claim to support the free market and the lower and middle class should take this to heart.

The reality is, however, that neither Republicans nor Democrats are serious about cutting spending. Even though U.S. military spending is exponentially larger than any other country and is notorious for its inefficiency and cost overruns, Republicans cannot seem to stomach even one penny of cuts to the Pentagon’s budget.  This is unfortunate, because this is the easiest, most obvious place to start getting spending under control.  The military-industrial complex and unconstitutional overseas military interventions should be the first place we look for budget cuts.

Similarly, Democrats are digging in their heels on not cutting any welfare or entitlement spending and instead propose to fix the deficit by raising taxes on the rich, even though the U.S. Government already has a progressive tax code and the rich already pay more than their fair share. Furthermore, these higher taxes would fall on small-business owners, investors, and entrepreneurs—in other words, the source of economic growth and new jobs!

The truth is that there is no excuse for federal spending being as high as it is, nor for taxes being as high as they are.  Even the God of the Old Testament only asked for 10% as a tithe and offering, and Americans revolted against the King of England for taxes that amounted to less than five percent.  Yet so many people today complain about “loopholes” for the rich that lower their actual tax rate to “only” 13% in some instances.  Even that is a criminal amount to pay for a wasteful, abusive, unconstitutional government.

We are indeed headed to a fiscal cliff and have been long before this latest hysteria cropped up.  But it is not cuts to spending or reduced federal-government “revenue” that will send us over the cliff, it is continued federal-government spending that will.  Until the federal government limits itself to its Constitutionally-mandated role, spending and taxation will remain out of control.

Look for a “bipartisan” compromise in late December, with Republicans giving in to tax increases and settling for phony spending cuts that actually grow the federal government, and Democrats caving on defense cuts in exchange for tax increases.  This is how the federal government has always grown: both sides will sacrifice their pro-liberty, small-government stances in certain areas in order to grow the federal government where they prefer.

Liberty always loses in the 11th hour.

Representative Ron Paul (R – TX), MD, was a three-time Republican candidate for U. S. President. See his Congressional webpage and his official campaign website

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.

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Why I Prefer the “Fiscal Cliff” to the Alternative – Video by G. Stolyarov II

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Mr. Stolyarov expresses hope that Congress will fail in its attempt to avert the overhyped “fiscal cliff” and that this deficit-reducing package of measures will take effect. Mr. Stolyarov is no friend of tax increases, but he expects that most of those will be undone. On the other hand, reductions in planned federal spending – especially military spending – would be more difficult to undo under a “fiscal cliff” scenario, and this therefore presents an opportunity for friends of liberty to gain ground.

If the “fiscal cliff” (which is not really that bad at all) is averted, then this would send a signal to politicians that there exists no substantive strong incentive to negotiate any further deficit or debt reductions.

Remember to LIKE, FAVORITE, and SHARE this video in order to spread rational discourse on this issue.

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References

- “United States fiscal cliff” – Wikipedia
- “List of countries by military expenditures” – Wikipedia

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Vote for Principles and Liberty in 2012 – Video by G. Stolyarov II

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Categories: Politics, Tags: , , , , , , , , , , , , , , , , , , , , , , ,

Mr. Stolyarov, a supporter of Gary Johnson, explains why principles and policy should be the only considerations for voters in the 2012 Presidential Election.

References
- Gary Johnson Campaign Website
- ISideWith.com
- Free & Equal Elections Foundation – Page on Third-Party Debates

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Lesser of Two Evils: A Final Shot – Article by Charles N. Steele

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The New Renaissance Hat
Charles N. Steele
October 26, 2012
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Mr. Stolyarov has responded to my two-part essay on Mitt Romney as a lesser of two evils.  Here I comment on his response .  I don’t want to rattle on endlessly, so this will be my final “shot” in the debate, unless Mr. Stolyarov asks for my response on specific questions.  I am grateful to him for the opportunity to discuss these issues in this forum.  I’ve found it useful, and hope others have as well.

Mr. Stolyarov’s part 1, “The Imperative of Libertarian Rejection of the Two-Party Trap,” is a reply to my part 1 “Is it Evil to Vote for a Lesser Evil?” in which I express doubt about his assertion that “in casting one’s vote” [one earns a] “share of moral responsibility in what would transpire if one’s candidate of choice (even half-hearted choice) gets elected.”

I’m suspicious of this “moral responsibility.” My piece explores whether someone who votes for a candidate has moral responsibility, and if so, what is the nature of that responsibility.  I take pains to keep it a general argument and avoid discussion of the 2012 election.  Unfortunately Mr. Stolyarov doesn’t really answer the questions I raise and instead addresses details of the current presidential candidates.  To the extent he does mention the moral responsibility of a voter, he simply asserts it.  At some points he asserts that a voter provides “moral sanction” in voting for a candidate, but this is something I directly challenged.  Elsewhere he claims to be a consequentialist, and that one bears responsibility only for contributing to actual harms.  I think this conflicts with his “moral sanction” argument.  It also fails to explain how a non-swing voter who votes for a winning candidate shares any moral responsibility at all, since his vote didn’t matter.  In short, I don’t think Mr. Stolyarov’s “Imperative” adequately addresses the philosophical issues I raised, and I remain skeptical of the “moral responsibility” one allegedly bears in voting for a lesser evil.

In part 2, “Why Mitt Romney Will Not Benefit Liberty,” Mr. Stolyarov really lets Mitt Romney have it (and does a good job of it).  We agree in our dislike for Romney.  I also share Mr. Stolyarov’s disgust at Romney’s unwillingness to attack Obama on important matters of principle.  But the question at hand isn’t “Is Romney bad?” but rather which candidate – Obama or Romney – is a lesser evil, or are they equally bad?  I gave four areas of fundamental importance in which Romney easily surpasses Obama, in my view.   I don’t think Mr. Stolyarov succeeds in showing that Romney and Obama are equivalent in these four areas.  Allow me to revisit them.

1. General Vision

Mr. Stolyarov discounts the differences between progressives and conservatives, and argues that conservative skepticism of government is a thing of the past.  This can’t be correct.  The Tea Party phenomenon is explicitly an anti-big-government phenomenon.  It was behind a crushing electoral blow to progressive and moderate Democrats and Republicans in 2010.  Regardless of any inconsistencies, confusions, or errors expressed by Tea Partiers, one can’t sensibly argue the movement isn’t exceedingly skeptical of government, often quite hostile to it.  Conversely, one can’t sensibly argue that progressives aren’t overwhelmingly enamored of ever more government solutions to problems in almost every aspect of life.  Mr. Stolyarov repeatedly refers to the Republican Party establishment.  It’s true that this “establishment” hasn’t welcomed the Tea Party, but the bulk of the support that exists for the GOP today is from people skeptical of big government, not people enamored of the Republican leadership.  To miss this is to miss one of the most important political developments of the last ten years.

Mr. Stolyarov missed my point about the “Peoples Rights Amendment” (PRA).  The PRA isn’t about campaign finance reform.  It is about ending all constitutional protections for all rights of any organization: a business firm, a non-profit organization, a church, a labor union, a political party, anything.  Among other things, it would mean that news organizations, publishers, internet service providers, YouTube, etc., would no longer be protected by any part of the Bill of Rights, and certainly not by the First Amendment.  Under PRA, Mr. Stolyarov will be free to stand on a soapbox in the city park and speak, but You Tube will have no legal protection if legislators decide to ban Stolyarov’s videos.  He’ll be free to publish The Rational Argumentator on a home printer, but his internet service provider will have no legal protection if legislators decide they disapprove of his essays.  Democrats have actually introduced this totalitarian nonsense in the House, with the endorsement of Nancy Pelosi; it’s not simply some pipe dream.  They are promoting similar proposals at the state level.  I cannot think of anything that Republicans are proposing that would so fundamentally change America’s political system to enable totalitarianism.  Regarding the examples Mr. Stolyarov provides (NSA, SOPA), I’m unaware of how Obama and Romney (or Democrats and Republicans) differ.  If Democrats aren’t demonstrably systematically superior, then it can hardly be said that these are relevant.

Regarding gun control, Mr. Stolyarov is simply misinformed.  The fact that no new gun-control legislation has been passed is beside the point.  The Obama administration has worked to undercut private firearm ownership, not through legislation but through regulation, subterfuge (“Fast and Furious,” for example), and international negotiations (which are on hold pending the outcome of the election). And the proposals for a renewed assault-weapons ban (AWB) are more draconian than the Clinton version, not less.  Proposed restrictions on ammunition sales, handgun ownership, semiautomatic weapons, etc., are more restrictive than anything we’ve previously suffered under, not less.  And Heller is not settled law, if Obama is able to appoint one more progressive to the Supreme Court.  Progressives would like to eliminate most privately owned firearms.  Their attacks on the Castle Doctrine/Stand Your Ground laws show that this hostility is directed at honest citizens and is not about crime prevention.

My examples suggest that progressives are seriously working to eliminate the Bill of Rights.  On the other hand, Mr. Stolyarov responds that he’s concerned about “Occupy” protesters being pepper-sprayed at UC Davis.  I’m uncertain what this event has to do with the Romney v. Obama choice, but he and I have very different definitions of “peaceful.”  My definition of peaceful does not include forcibly blocking public thoroughfares and occupying public spaces so that others cannot exercise their legitimate rights to use them.  It’s shameful that taxpayer money is now going to these “victims.”  But again, how does this indicate anything about the differences in the candidates or the issues I’ve raised?  I think it’s irrelevant.

2. Health-Care Reform

Mr. Stolyarov is probably correct that for Romney and the Republican leadership think of the political base primarily as a means for winning elections.  That’s exactly why Romney wouldn’t veto a PPACA repeal, were it presented to him.  It’s crazy to think he’d veto it against the will of everyone in the GOP and then “rely on political amnesia” to get him by in 2016.  He’d have nothing to gain, and everything to lose.

I didn’t discuss specifics of the PPACA, but I don’t believe the mandate is the worst part.  The mandate isn’t a giveaway to insurance companies.  Without a mandate, the requirement to sell insurance without regard for pre-existing conditions and without risk rating would trigger adverse selection that would eliminate private insurance almost overnight.  Other bad parts of the law include the Independent Payments Advisory Board (IPAB), a component that has the potential to do great harm to American health care.  But then, the PPACA is 2000-plus pages long; there’s lots of mischief in it.  (The Romneycare bill was only 86 pages.)  But this is all beside the point.  The President does not have a line-item veto, so if a Republican Congress repeals PPACA, Romney cannot pick and choose which pieces to preserve.  He’ll sign and we’ll be rid of it.  There’s no other way this can happen.

3. Supreme Court Appointments

Mr. Stolyarov sees a “clash of interpretations [legal philosophies] as too many steps removed from the outcome of a Presidential election. To be sure, the President may appoint Supreme Court justices, but that is all. How the justices subsequently rule is out of the President’s hands.”

It’s true but completely irrelevant that how justices rule is out of the president’s hands.  From a libertarian standpoint, progressive legal theories are worse than libertarian legal theories, obviously.  It’s also obvious to those who study the matter closely that Romney is far more likely to appoint justices sympathetic to libertarian theories than is Obama.  The two candidates are not even roughly similar in this regard.  This alone is sufficient to make Romney the lesser evil, and is a place where he might well do positive good.  Alternatively, if Obama appoints three Ginsburg clones, it will be a very dark day indeed.

4. Economic and Fiscal Issues

I’ll admit that this is the weakest part of my argument.  But still, on environmental regulation, Obama is clearly worse.  It even appears that EPA may have put new energy regulations on hold until after the election.  It’s very likely that an Obama victory will lead to much heavier regulation of one of the bright spots in our economy, the boom in hydrocarbon production.

On fiscal policy, neither candidate (and neither party) has seriously grappled with America’s looming sovereign-debt crisis.  It’s quite obvious, though, that Democrats would be much happier seeing government take a greater share of the economy in revenue than Republicans would – the recent battles over the debt ceiling are evidence of that.

Conclusion

I’ve made two very distinct lines of argument in this exchange.  Concerning the philosophical issues of a voter’s moral responsibility, I think Mr. Stolyarov has largely talked past my arguments.  In the end, I don’t think a voter should worry about “moral responsibility.”  My advice to a libertarian voter: study the principles, issues, and candidates carefully, and then vote (or abstain) according to whatever you think will do the most to further liberty.  Don’t waste any additional effort contemplating the moral responsibility you’ll allegedly bear.

Concerning whether Mitt Romney is the lesser evil, Mr. Stolyarov provides lengthy critique of Romney, a case for voting for a libertarian alternative such as Gary Johnson, and blistering scorn for the Republican leadership and their treatment of Ron Paul’s supporters.  In each case, he does so eloquently.  But these are tangential to the question at hand – is Mitt Romney the lesser of two evils?  I think that I’ve made a strong case that from a libertarian standpoint, Romney, bad as he is, is superior to Obama.  In the end, we’ll never know, of course.

Dr. Charles N. Steele is the Herman and Suzanne Dettwiler Chair in Economics and Associate Professor at Hillsdale College in Hillsdale, Michigan. His research interests include economics of transition and institutional change, economics of uncertainty, and health economics.  He received his Ph.D. from New York University in 1997, and has subsequently taught economics at the graduate and undergraduate levels in China, the Russian Federation, Ukraine, and the United States.  He has also worked as a private consultant in insurance design and review.

Dr. Steele also maintains a blog, Unforeseen Contingencies.

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Romney v. Obama: Tweedledum and Tweedledee? – Steele’s Response to Stolyarov – Part 2 – Article by Charles N. Steele

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The New Renaissance Hat
Charles N. Steele
October 17, 2012
Recommend this page.
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In his article “Is Mitt Romney Truly a ‘Lesser Evil’?”, Gennady Stolyarov took issue with my contention that a Mitt Romney victory is preferable to another term for Barack Obama from a classical liberal standpoint.  In Part 1 I responded to Mr. Stolyarov’s arguments concerning the moral responsibility one might bear in supporting a bad candidate over a much worse candidate, a “lesser evil.”  Here I make a case that Romney and Obama certainly are not Tweedledum and Tweedledee: Mitt Romney is indeed a lesser evil compared with Barack Obama from a libertarian/classical liberal perspective.

I must emphasize at the outset that I am not arguing one should vote for Mr. Romney.  I am making a case that Romney is the lesser of the two major party evils, not that one must support him.  If in one’s judgment an abstention or perhaps a vote for another candidate, such as Gary Johnson, does more for liberty, then one should act accordingly.

However, I also think that our current political situation is quite precarious; if we confine our vision to the federal government and its policies, America is in an unusually dangerous position today, quite unlike anything I ever expected to see in my lifetime.  If current trends continue, I think there’s some not insignificant chance that the First and Second Amendments could soon have “dead letter” status – formally in effect but no longer valid nor enforced – and that the probability of this is much higher with a continuation of the Obama presidency.  I also think that America is on track for a fiscal and economic disaster unprecedented in modern history, and that the Romney-Ryan ticket is at least marginally superior to Obama-Biden in this regard.

I’ll address four areas in which I believe there are fundamental differences between Romney and Obama: 1. general vision, 2. health-care reform, 3. appointments to the Supreme Court, and 4. economic and fiscal issues.  I’ll close with a few qualifications that temper my argument.

1. General Vision:  This presidential election is not so much a choice between Mr. Romney and Mr. Obama as it is between two competing visions of the role of government.  Romney and Obama are both very poor standard bearers for this conflict of visions currently underway, but one would have to be oblivious to American politics of the past twelve years to miss the significance of this election.  There is, for a change, a real ideological difference.  On the one hand, there’s the progressive view that supposes the state is the fount from which all good things and all social advance flow (“You didn’t build that.”), and on the other, there’s the view that government is limited by the rights of the individual, and that most of civilization is built by free people acting in the market.

The progressive vision sees government intervention as the solution to every imaginable problem.  This was perhaps best stated recently in a Washington Post op-ed by E.J. Dionne.  There is no question that Obama and the Democratic Party represent the progressive-left view.  If they are sometimes loathe to admit it, it is simply because it is currently bad politics to do so – the Tea Party backlash was more than they’d bargained for.

Pitted against progressivism is the view that government must be restricted to certain limited functions.  American conservatives, for all their many and various flaws, do tend to understand this.  American voters outside the progressive/left camp certainly do, as the Tea Party arose out of anger over big government: government bailouts, exploding government debt, the general expansion of government in health care.  It was Ronald Reagan who observed that the “heart and soul of conservatism is libertarianism.”  Whether one agrees or not, it is certainly true that conservatives are far more skeptical of government than are progressives.  Currently the Republican Party is the party of skepticism about government.

It would be a simple thing to expose the many cases of Republican hypocrisy on these issues – I often do so myself.  But let me ask this question – which party – Democrat or Republican – is more likely to propose legislation containing more and more interventions, programs, entitlements, and social engineering?  If the reader is genuinely uncertain (I doubt most are), read the respective platforms of the parties (here for Democrat  and here for Republican). The first platform contains proposal upon proposal for expanding the role of government; the latter refers repeatedly to specifics about restricting overweening government.  No one is bound by a platform, but the platforms do give the vision, and these visions are fundamentally different.

Does this matter?  For an example, consider how the two parties have responded to the Citizens United decision.  Republicans have applauded it on free speech grounds.  Conversely, Nancy Pelosi and other Democratic legislators have introduced in Congress a constitutional amendment, the “People’s Rights Amendment,” that would effectively eliminate the First Amendment protections of freedom of speech and press.  As George Will put it in Washington Post, “By proposing his amendment, McGovern helpfully illuminates the lengths to which some liberals want to go. So when next you hear histrionic warnings about tea party or other conservative ‘extremism,’ try to think of anything on the right comparable to McGovern’s proposed vandalism of the Bill of Rights.”  (Or, I might add, try to find anything in the Democrats’ platform even mentioning any threat to free speech from our government.  It certainly contains nothing even vaguely rivaling the Republican denunciation of speech codes, Fairness Doctrine, McCain-Feingold, and other restrictions of free speech.)

As another example, consider the right of the individual to keep and bear arms, and the protection of it by Second Amendment.  Republicans are supportive of this, while Democrats generally oppose it.  The Republican platform specifically defends the inherent individual right to keep and bear arms, applauds Heller, and explicitly opposes new gun controls, including the “Assault Weapons Ban.”  The Democrats relegate the right to “an American tradition” and imply it is created by the Second Amendment.  They then call for new gun controls and further restrictions on ownership.  If the Democrats should, at some point, manage to gain control of both houses of Congress and pass a new, more draconian “Assault Weapons Ban” or legislation to “close the gun show loophole” [i] as they promise, who is more likely to veto it – Romney or Obama?  For that matter, we already know that Obama has sought gun controls under the table by supporting U.N. negotiations for a treaty that would regulate and restrict private firearm ownership.  President Obama is more hostile to our rights to arms ownership and to self defense than any other president in history.  Romney’s record in Massachusetts was poor; he signed a state version of the AWB.  But unlike Obama, he has not argued in favor of banning all private ownership of handguns, all private ownership of semi-automatic weapons, civilian concealed carry permits, and outlawing self-defense.  As his base is generally very strongly opposed to an AWB, it is hard to believe he would betray them on this hot-button issue.

Again, it’s not that the Republicans are libertarian – they are far from it.  It is rather that the Democratic Party has gone so far to the left that they are the greater threat to liberty.  They would willingly destroy both the First and Second Amendments.  They’ve sponsored legislation to do it.  Without these two amendments it’s hard to see what checks at all we’d have on government.  It is the Democrats’ progressive vision that is the greater threat to liberty currently.  Romney might be a weak reed, but he’s at least on the side that opposes this progressive vision, and a President Romney would be beholden to his more conservative, anti-big government constituency.

2. Health-Care Reform:  Here’s a good application of my above argument.  The PPACA (a.k.a. Obamacare) is a terribly flawed approach to health-care reform.  It reduces, rather than increases, consumer choice.  It increases, rather than reduces, government interference in the health-care sector.  It will prove to be fiscally irresponsible and is likely to reduce the quality of health care.  If the Republicans manage to hold both houses of Congress, they will almost certainly repeal it.  (The Senate can do so even with a bare majority if Republicans are willing to end the filibuster, something legal scholars across the political spectrum have suggested is reasonable.)  A President Obama would surely veto a repeal.  A President Romney would sign it.

This would likely be the only chance we will have to get rid of this bad legislation, for the longer it stays in place, the more firmly it will be entrenched, with more special interests defending it.  On the other hand, if Republicans fail to repeal the bill, Romney would be far more likely to temper and slow the implementation of PPACA than Obama would.

Mr. Stolyarov has suggested Mitt Romney would veto a repeal because of similarities between the PPACA and the Massachusetts reform, but this makes little sense for two reasons.  First, the PPACA is much hated by the Republican base (for that matter the majority of Americans dislike it).  A repeal would be extremely popular.  It’s simply incredible to think that a President Romney would defy his party and practically 100% of his supporters in order to save Barack Obama’s hallmark program.  I can’t imagine anything else he could do that would make him more likely to lose the GOP nomination in 2016.

Second, it’s not clear that Romneycare and Obamacare really are the same thing, despite a similar basic framework.  The Massachusetts bill signed by Romney was different from that which was implemented.  Romney used his line item veto on a number of the more draconian parts of the bill.  The Democratic legislature overrode these vetoes, and the bill was implemented by a Democratic governor who further altered it.  Furthermore, at the time Romney signed the bill, the situation in Massachusetts insurance markets was far worse than perhaps anywhere else in the United States.  In this context, Romneycare – at least Romney’s version of it – was arguably an improvement over the status quo in Massachusetts.  Thus when Romney argues that the reform might have been right for Massachusetts but not for America in general, he’s not necessarily being disingenuous.  In short, it’s hard to believe that Romney is not key to any chance of repealing the PPACA and not superior to Obama on health-care reform.

3. Supreme Court Appointments: The next president will likely make as many as three appointments to the Supreme Court.  Whoever is president in the next four years will very likely have the chance to change fundamentally the makeup of the Supreme Court.  This might be the single most important reason for preferring Romney to Obama.

Obama and his party are closely associated with the new “democratic constitutionalism” movement in legal theory.  This movement seeks to “take back” the Constitution from “conservatives” and make it once again a “living” document, i.e. one without fixed meaning, permitting progressive politicians and judges to interpret it however they wish to favor their political agendas.  One common doctrine in this thinking is that the distinction between negative rights and “positive” rights is essentially meaningless, and one person’s “right” (to health care, housing, and whatnot) creates a similar obligation on others to provide it.  It’s unclear to me what sort of society would result from consistent application of this doctrine that replaces genuine rights with entitlements, but it would not be a free society, nor would it have a functioning economy.

Conversely, there’s also been a new interest in federalism in legal thought (it’s to this that the democratic constitutionalists are reacting) which favors strict Constitutional interpretation, separation of powers, strict limits on governmental powers, and the idea that individual rights are imprescriptable, rather than gifts from the state.  The movement has both conservative and libertarian aspects, and is in many respects libertarian.  Needless to say, Republicans are more closely associated with this movement than are Democrats.

If Obama selects nominees for the Supreme Court, it is likely that we’ll have justices who are in line with “democratic constitutionalism,” and with the notion that our Constititutional rights should not be considered “absolute” sense, but rather subject to international norms.  Romney is unlikely to draw from this crowd, and far more likely to draw from judges with at least some sympathy for the new federalism.

Ilya Somin of Volokh Conspiracy is worth quoting at length on this issue: “Republican judges are far from uniformly good on libertarian issues. But the Democratic ones are overwhelmingly bad. Moreover, cases such as Kelo and the individual mandate decision have sensitized conservatives to the importance of appointing judges committed to federalism and property rights. That reduces the chance that future GOP nominees will waffle on these issues, as some past ones have.”

“[Also] the younger generation of conservative jurists and legal scholars have been significantly influenced by libertarian thought on many issues. This is far less true of their liberal equivalents. Whether you choose to blame liberals for this situation or libertarians, it’s a crucial point. Other things equal, a party’s judicial nominees tend to reflect the dominant schools of thought among its legal elites.”

On this issue, it’s simply absurd to imagine that Obama and Romney are equal from a libertarian standpoint.  They are not.  Obama is far, far worse.

4. Economic and Fiscal Issues: On economic issues, neither Romney nor Obama is very good from a free market perspective.  But they are not equally bad.  Obama has a much stronger preference for activist regulation, including environmental regulations, health care regulations, labor regulations, and financial regulation.  Obama also is more likely to favor targeted subsidies to special interests – green energy for example.  Conversely, Romney is more likely to rein in regulatory agencies such as EPA, and less likely to favor extensive regulation.  Mr. Stolyarov suggests that Romney is anti-entrepreneur in practice, but it is small entrepreneurs who are most hurt by regulation.  Large established firms have teams of lawyers and accountants and frequently can benefit from gaming the rules; in practice, Obama is a greater threat to entrepreneurship.

On fiscal issues, I think Romney is at least marginally better than Obama.  Neither has any real plan to actually reduce spending.  But Romney and Ryan have been willing to put forward the idea that entitlement programs as they exist are unsustainable and must be radically restructured.  Obama assures us this won’t happen.  Yet it will.  Our entitlement programs are unsustainable and will be cut – it is simply a matter of whether we plan to make these cuts now, rationally, in such a way as to minimize economic disruption, or whether we wait until economic crisis forces the cuts, resulting in economic shock and great disruption.  On this matter I give a slight edge to Romney… although if Obama is reelected and then begins following a more “Republicanlike” path, it would not shock me – the unsustainability of entitlements is not in dispute, except in campaign rhetoric.

On taxation, the fiscal crisis will almost certainly lead anyone in office to seek more revenues.  Obama has stated a clear preference for increases in marginal rates on higher income earners, higher corporate taxes, and an increasing number of tax breaks, this last for purposes of social engineering (a.k.a. buying votes).  Romney has endorsed a reduction in marginal rates and a broadening on the base by eliminating deductions and exemptions.  The latter approach reduces the economic distortions of taxation and also returns it to the purpose of collecting revenue, rather than shaping citizens’ behavior to match politicians’ goals.  Again, Romney is preferable to Obama on this issue.  I fear it might already be too late for the United States to avert a sovereign debt crisis, and the record of politicians from both parties of fiscal responsibility is dismal.  But the approach Romney has laid out it preferable to Obama’s.

So there it is.  I am not a fan of Romney, nor of the Republican Party in general.  But after looking at these four areas, I think it’s clear that Romney is certainly the lesser of two evils compared to another four years of Barack Obama.  It should also be clear why I think the current political situation is dangerous.  Eight years of Bush ’43 followed by four years of Obama have empowered the federal government and put us well on the road to an authoritarian “soft despotism.”  If current political trends are not checked by some countering force, the near and medium future look rather bleak.  If a Romney victory would simply slow the trend and thus buy time for countering forces to take effect, that would make Romney the lesser of two evils.  With either candidate, the immediate political future will be a mess at best, but the mess will be much worse with Obama.

I’ll close with three caveats.  First, unless one votes in a swing district in a swing state, none of this matters anyway since one’s vote does not matter.  Second, it’s been observed that sometimes a politician from political party A finds it easier to pursue party B’s platform than politicians from party B do, because he faces little opposition from within his own party when he does.  Perhaps a second-term Obama will do the opposite of what I suggest above.  I have little reason to believe he would, but cannot rule it out.  The same might occur with Romney, although I suspect his interest in a second term precludes this.  Finally, Mr. Stolyarov notes that a vote for Gary Johnson “could be seen as a social statement, rather than a purely electoral one,” and signal increasing support for libertarian ideas.  In Part 1 I suggested that perhaps there is some merit in Mr. Stolyarov’s “strategic argument,” that voting for a third-party candidate who proves to be a spoiler might send a message to political parties; his “social statement” argument further strengthens this case.  (It is not clear, by the way, whose voters Gary Johnson “steals;” I know one erstwhile Obama supporter who is voting for Johnson as the only anti-war candidate.  I understand some polls suggest this phenomenon may cost Obama Nevada.)  Particularly given the shameful way the GOP treated Gary Johnson, Ron Paul, and its more libertarian members, it certainly deserves a comeuppance.  However, this seems to me an issue separate from whether Mitt Romney is the lesser evil.

I could say more, but this is sufficient.  I thank Mr. Stolyarov for the opportunity to make my case, and look forward to his responses.


[i] In fact, there is no such thing as a “gun show loophole.”  Firearms sales at gun shows are covered by the identical laws that cover sales elsewhere, including background checks for dealer sales.  “Closing the loophole” is progressive-speak for making it illegal for citizens to buy, sell, or otherwise trade firearms with each other; only federally licensed gun dealers would have this right.

Dr. Charles N. Steele is the Herman and Suzanne Dettwiler Chair in Economics and Associate Professor at Hillsdale College in Hillsdale, Michigan. His research interests include economics of transition and institutional change, economics of uncertainty, and health economics.  He received his Ph.D. from New York University in 1997, and has subsequently taught economics at the graduate and undergraduate levels in China, the Russian Federation, Ukraine, and the United States.  He has also worked as a private consultant in insurance design and review.

Dr. Steele also maintains a blog, Unforeseen Contingencies.

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Government Gifts from Heaven: The Illusions of Redistributive Taxation – Article by Kyrel Zantonavitch

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The New Renaissance Hat
Kyrel Zantonavitch
October 3, 2012
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Everybody wants something for nothing. But the problem is you can never actually get it. And virtually everyone quietly understands this.

Nothing is ever free, and there’s always a price to pay even if you only pay it eventually, indirectly, or secretly. And usually the price for this “free” stuff is quite high. You’re almost always far better off paying for it directly and honestly rather than engaging in any type of amoral, unprincipled, dispiriting, and anxiety-ridden beggary or theft.

But when it comes to government, many people today really do pretty much think you can get something for nothing. Many people nowadays really do believe that the government can magically generate things out of thin air, and then give them to “the people” for free. They even commonly think that this is the people’s “right.”

And the more coercive the government, the better, some people think. The more tyrannical the state is, the more it has the power to repeal the laws of economics, physics, and reality. Then it can give “the people” all sorts of free goods and services!

And yet, in an odd way, this view is actually right, because it’s always the more authoritarian states that pretend to offer the most goodies and booty to their greedy citizenry. They’re the ones that always claim to feature the most “economic rights” or welfare-state give-aways.

Many people in the 21st century really do want and even righteously demand “free” schools and medical care. They want mandatory “free” paid vacations, sick days, and personal days. They want paid mandatory “free” maternity leave along with no-charge day care for the kids. And, of course, they fully expect “free” public roads, parks, libraries, fire departments, water supplies, etc.

But the problem with all this “free” stuff as has already been stated is you truly do pay for it. This happens via taxes. And no, you can’t steal from the rich, and make them pay your share. If you attempt it, they’ll probably just make you pay double. If a government is tyrannical, the rich and powerful can work its machinery far better than you.

Still, too many people try. They hope and dream and then are easily deluded and duped.

The result of all this attempted robbery of the wealthy, and of the general public, is that while some people do get some “freebies” of a generally ugly and repellant type, the rest of the citizenry quietly raises the costs of everyone’s taxes thru the roof. And almost all the merchandise redistributed via taxation is invariably low in quality and high in cost. Now, maybe many don’t notice this. Defenders of Big Brother go to considerable trouble to disguise this reality from you. But it’s the truth.

Had you directly and honestly paid for all this apparent government windfall utilizing your individual judgment, prudence, experience, and intelligence you and your society would be far richer overall. The massive taxes you and the others end up paying are not at all worth it.

Ultimately, whether you know it or not, welfare-state redistribution of wealth results in its very advocates getting utterly conned and totally ripped off.

Kyrel Zantonavitch is the founder of The Liberal Institute  (http://www.liberalinstitute.com/) and a writer for Rebirth of Reason (http://www.rebirthofreason.com). He can be contacted at zantonavitch@gmail.com.

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Military “Cuts”: Don’t Believe the Hype – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
August 23, 2012
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Grover Norquist, the influential conservative activist, recently made some very frank and sobering remarks about the U.S. military budget.  Unlike many conservatives, Mr. Norquist understands that American national security interests are not served by the interventionist foreign policy mindset that has dominated both political parties in recent decades.  He also understands that there is nothing “conservative” about incurring trillions of dollars in debt to engage in hopeless nation building exercises overseas.

Speaking at the Center for the National interest last week, Norquist stated that “We can afford to have an adequate national defense which keeps us free and safe and keeps everybody afraid to throw a punch at us, as long as we don’t make some of the decisions that previous administrations have, which is to over extend ourselves overseas and think we can run foreign governments.”

He continued: “Bush decided to be the mayor of Baghdad rather than the president of the United States. He decided to occupy Iraq and Afghanistan rather than reform Fannie Mae and Freddie Mac. That had tremendous consequences… Richard Nixon said that America’s national defense needs are set in Moscow, meaning that we wouldn’t have to spend so much if they weren’t shooting at us.  The guys who followed didn’t notice that the Soviet Union disappeared.”

When a prominent DC conservative like Grover Norquist makes such bold statements, it shows that public support for a truly conservative foreign policy is growing.  The American people simply cannot stomach more wars and more debt, especially with our domestic economy in tatters.

The American people should reject the hype about so called defense “cuts” from both side of the political spectrum.  When the Obama administration calls for an 18% increase in 2013 military spending, those who propose a 20% increase portray this as a reduction!

Even the supposedly draconian cuts called for in the “sequestration” budget bill would keep military spending at 2006 levels when adjusted for inflation, which is about as high in terms of GDP as during World War II.  It’s also more than the top 13 foreign countries spend on defense combined.  Furthermore, sequestration only cuts military spending for one year after taking effect.  In future years Congress is free to reinstate higher military spending levels– so under sequestration the most drastic case would mean spending $5.2 trillion instead of $5.7 trillion over the next decade.

Is there any amount of money that would satisfy the Pentagon hawks? Even if we were to slash our military budget in half, America easily would remain the world’s dominant military power.  Our problems don’t result from a lack of spending. They result from a lack of vision and a profound misunderstanding of the single biggest threat to every American man, woman, and child: the federal debt.

Representative Ron Paul (R – TX), MD, is a Republican candidate for U. S. President. See his Congressional webpage and his official campaign website

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.

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The CBO Sees the Economic Cliff Ahead – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
June 19, 2012
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In early June 2012 the Congressional Budget Office (CBO) issued its annual long-term budget outlook report, and the 2012 numbers are not promising. In fact, the CBO estimates that federal debt will rise to 70% of GDP by the end of the year– the highest percentage since World War II. The report also paints a stark picture of entitlement spending, as retiring Baby Boomers will cause government spending on health care, Social Security, and Medicare to explode as a percentage of GDP in coming years.

While the mainstream media correctly characterized the CBO report as highly pessimistic, they also ignored longstanding errors of methodology in CBO estimates. And those errors tend to support arguments for higher taxes and government spending, when in fact America needs exactly the opposite.

As Paul Roderick Gregory explained in a recent Forbes column (http://tinyurl.com/cf746dl), CBO has always applied wrongheaded assumptions inherent in Keynesian economics when forecasting future deficits – no matter how many times both history and economic theory have proven such assumptions incorrect. In particular, CBO seems wedded to two enduring Keynesian myths: First, that higher taxes necessarily increase federal revenue and have no negative effect on the economy; and second, that lower government spending hurts the economy.  Neither is true, of course.

CBO also fails to factor in unexpected wars and expensive foreign entanglements, and we should not assign too much validity to predictive models based on peace. Judging from the actions and rhetoric coming from both parties in Washington, new military entanglements in Syria and Iran may well spike military spending in coming years.

Despite these sobering budget realities, the CBO report suggests that a solution is possible with merely a few minor adjustments in the way Congress handles economic issues. But what we need are not minor adjustments, but rather a fundamental shift in our philosophy of government.  If we could come to our senses about the proper role of government in America, and what level of government interference is appropriate in a free economy, we would quickly find that there is no reason for government to spend so much, borrow so much, and tax so much.

If we simply allowed markets to work free of governmental or Federal Reserve interference, bad debt would be liquidated relatively quickly and malinvestment would be curtailed. Scaled-back regulations would encourage businesses to expand. Lower taxes would jump start investment and spur job creation.

This is not rocket science, it is Economics 101. All it would take is for government to get out of the way. There would be some short term pain, of course, but only by allowing the bubble to burst and bad debt to liquidate can we ever hope to begin building a real economy again.

The CBO report was alarming to most simply because they know neither party will take the steps necessary to avoid eventual fiscal calamity. Instead, despite their rhetoric, both parties want to maintain the fantasy that “deficits don’t matter.” But the CBO report, combined with what is happening in Greece and the European Union, should finally make the undeniable case that economic realities apply even to industrialized first world economies. We must take concrete steps today to avoid having America become the next Greece.

Representative Ron Paul (R – TX), MD, is a Republican candidate for U. S. President. See his Congressional webpage and his official campaign website

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.

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The Ex-PATRIOT Act Has No Place in a Free Society – Article by Ron Paul

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The New Renaissance Hat
Ron Paul
June 3, 2012
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The characteristic mark of a tyrannical regime is that it eventually finds it necessary to erect walls to keep people from leaving.  This is why we should be troubled by the “Ex-PATRIOT Act,” an egregiously offensive bill recently introduced in the Senate.  Following a long line of recent legislation and regulations attempting to expropriate more and more wealth from hard-working Americans, this new bill spits in the face of overburdened taxpayers and tramples on the Constitution.

Current law already dictates that Americans with a net worth of over $2 million who expatriate must be assumed to have sold all their assets and must pay a corresponding punitive exit tax on those assumed sales.  The Ex-PATRIOT Act goes even further than current law by assessing a 30% capital gains tax on all future earnings of expatriates.  Not content just with this additional tax, the bill also grants the IRS the sole authority to determine whether individuals have expatriated for tax purposes and allows the IRS to bar those individuals from ever re-entering the United States.  Finally, the bill blatantly violates the ex post facto provisions of the U.S. Constitution by extending all of these provisions to anyone who has given up their U.S. citizenship within the past decade.

This bill, and other similar legislation, casts a chilling effect on saving, investment, and entrepreneurial activity.  The bill was introduced in response to news reports about one of the founders of Facebook who might save millions of dollars of taxes by renouncing his U.S. citizenship.  But in their blind envy towards successful entrepreneurs, the bill’s sponsors ignore the fact that they will ensnare many ordinary middle-class Americans who work hard, save and invest wisely, and benefit from rising home values.  These Americans may easily find themselves pushing past the $2 million mark by the time they retire, especially as inflation continues to seriously accelerate.  If they wish to escape the Federal Reserve’s inflation by emigrating to lower-cost countries so their dollars will go farther, as many Baby Boomers are starting to do, the federal government will penalize them, and continue to penalize them for the rest of their lives as long as they hold any money in the United States.

Unfortunately, the mere consideration of such legislation, even before it has passed, has made American banking customers a potential future headache for banks around the world.  They don’t want to deal with the IRS any more than Americans do, and if American account holders become a Trojan horse for the IRS to insinuate themselves into their affairs, there may be more cost than benefit to extending banking services to Americans.

We live under a federal government that has eviscerated our Fourth Amendment rights, that can detain U.S. citizens indefinitely based solely on the President’s word, that assaults toddlers and grandmothers at airports in the name of security, and regulates virtually every aspect of our economic lives.  No wonder increasing numbers of Americans feel this government is engaged in outright warfare against its own citizens.  Every day the noose grows tighter, yet anyone who sees the writing on the wall and seeks to leave must pay exorbitant taxes just for the privilege of leaving, and increasingly the possibility looms of never fully breaking away from the government’s tentacles no matter where they go.  Ultimately, the Ex-PATRIOT Act proposes to control people by controlling their capital, and it has no place in a free society.

Representative Ron Paul (R – TX), MD, is a Republican candidate for U. S. President. See his Congressional webpage and his official campaign website

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.