Browsed by
Category: Politics

War Drums for Syria? – Article by Ron Paul

War Drums for Syria? – Article by Ron Paul

The New Renaissance Hat
Ron Paul
July 7, 2012
******************************

War drums are beating again in Washington. This time Syria is in the crosshairs after a massacre there last month left more than 100 dead. As might be expected from an administration with an announced policy of “regime change” in Syria, the reaction was to blame only the Syrian government for the tragedy, expel Syrian diplomats from Washington, and announce that the US may attack Syria even without UN approval. Of course, the idea that the administration should follow the Constitution and seek a Declaration of War from Congress is considered even more anachronistic now than under the previous administration.

It may be the case that the Syrian military was responsible for the events last month, but recent bombings and attacks have been carried out by armed rebels with reported al-Qaeda ties. With the stakes so high, it would make sense to wait for a full investigation — unless the truth is less important than stirring up emotions in favor of a US attack.

There is ample reason to be skeptical about US government claims amplified in mainstream media reports. How many times recently have lies and exaggerations been used to push for the use of force overseas? It was not long ago that we were told Gaddafi was planning genocide for the people of Libya, and the only way to stop it was a US attack. Those claims turned out to be false, but by then the US and NATO had already bombed Libya, destroying its infrastructure, killing untold numbers of civilians, and leaving a gang of violent thugs in charge.

Likewise, we were told numerous falsehoods to increase popular support for the 2003 war on Iraq, including salacious stories of trans-Atlantic drones and WMDs. Advocates of war did not understand the complexities of Iraqi society, including its tribal and religious differences. As a result, Iraq today is a chaotic mess, with its ancient Christian population eliminated and the economy set back decades. An unnecessary war brought about by lies and manipulation never ends well.

Earlier still, we were told lies about genocide and massacres in Kosovo to pave the way for President Clinton’s bombing campaign against Yugoslavia. More than 12 years later, that region is every bit as unstable and dangerous as before the US intervention – and American troops are still there.

The story about the Syrian massacre keeps changing, which should raise suspicions. First, we were told that the killings were caused by government shelling, but then it was discovered that most were killed at close range with handgun fire and knives. No one has explained why government forces would take the time to go house to house binding the hands of the victims before shooting them, and then retreat to allow the rebels in to record the gruesome details. No one wants to ask or answer the disturbing questions, but it would be wise to ask ourselves who benefits from these stories.

We have seen media reports over the past several weeks that the Obama administration is providing direct “non-lethal” assistance to the rebels in Syria while facilitating the transfer of weapons from other Gulf States. This semi-covert assistance to rebels we don’t know much about threatens to become overt intervention. Last week Gen. Martin Dempsey, Chairman of the Joint Chiefs of Staff, said about Syria, “I think the military option should be considered.” And here all along I thought it was up to Congress to decide when we go to war, not the generals.

We are on a fast track to war against Syria. It is time to put on the brakes.

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.

Prohibition: Bootleggers, Baptists, and Bandits – Article by Sanford Ikeda

Prohibition: Bootleggers, Baptists, and Bandits – Article by Sanford Ikeda

The New Renaissance Hat
Sanford Ikeda
July 7, 2012
******************************

The political economist Bruce Yandle’s phrase “bootleggers and Baptists” captures the idea that special-interest groups with conflicting moral positions often find common cause in particular government interventions.  Many on the political left agree with crony capitalists that government should make taxpayers bailout some businesses that are “too big to fail”; some radical feminists agree with some Christian fundamentalists that government should ban pornography.  Their reasons are different but the policies they support are the same.

Bootleggers and Baptists

The inspiration for “bootleggers and Baptists” (pdf) comes directly from the diverse support that so-called “blue laws” have historically received.  According to Yandle,

Bootleggers . . . support Sunday closing laws that shut down all the local bars and liquor stores [because they increase the demand for illegal hooch].  Baptists support the same laws and lobby vigorously for them [because they believe drinking on Sunday is wrong].

Of course the story behind Prohibition era in the United States, marked by the passage of the Eighteenth Amendment to the U.S. Constitution (1920-33), is this lesson writ large.  Banning the sale of liquor, whatever it did to deter drinking, did wonders for promoting organized crime, which had (and still has) a comparative advantage over law-abiding people in supplying and demanding illegal goods. By clamping down on a product in such high demand, local and national governments (including the fledgling Federal Bureau of Investigation, which also prospered during Prohibition) spurred mob activity, intentionally or not, from Los Angeles to Chicago to New York.

Ken Burns: No Eighteenth Amendment without the Sixteenth

What I hadn’t realized until I saw Ken Burns’s excellent documentary “Prohibition” is that an important and, I think, less-known connection existed between the anti-liquor lobby–which included among others the Anti-Saloon League (ASL) and the Women’s Christian Temperance Union (WCTU)–and passage of the Sixteenth Amendment to the US Constitution.  That amendment gave Congress in 1913 the power

to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

(The Supreme Court had ruled an earlier income tax law unconstitutional in 1895.)

In an earlier FreemanOnline column, Don Boudreaux explained why Prohibition was repealed after only a dozen or so years.  In short the inability to tax liquor, now illegal, along with the onset of the Great Depression, had a devastating impact on government tax revenues.  My focus is on the alliance between anti-liquor forces on the right, pressing for prohibition, and Progressives on the left, pressing for an income tax.

Now, according to one source:

By 1868, the main source of Government revenue derived from liquor and tobacco taxes. . . . From 1868 to 1913, almost 90 percent of all revenue was collected from . . . excises.

That’s a significant source of taxes, without which the government could hardly operate, let alone grow to the size needed to implement the Progressives’ agenda: making government more efficient in order to run society along “rational” principles.  Government programs to improve schools, health care, and industry need a steady funding source, and without liquor taxes intervention could not go far enough.  So no matter how hard prohibitionists argued, marched, and lobbied, and no matter how sympathetic government officials may have been to their cause, they would never dream of sacrificing their cash cow on the alter of idealism–at least not without an equally reliable alternative.

And that of course led naturally to the social conservatives support of the progressive (in both senses of the word) income tax.  The Sixteenth Amendment passed in 1913, opening the way in 1919 for the Eighteenth Amendment.  The rest is history.

Baptists and Bandits

I’m not arguing that the alliance was primarily responsible for passage of the amendment, but rather that it’s clear the interests of social conservatives and the taxman were perfectly aligned.  “Baptists” on the one side, and on the other, those eager to expand the use of aggression to plunder wealth created by trade and to spend it to indulge their own preferences–that is, bandits.

Sanford Ikeda is an associate professor of economics at Purchase College, SUNY, and the author of The Dynamics of the Mixed Economy: Toward a Theory of Interventionism.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.

Is Serfdom an Executive Order Away? – Article by Sheldon Richman

Is Serfdom an Executive Order Away? – Article by Sheldon Richman

The New Renaissance Hat
Sheldon Richman
July 7, 2012
******************************

Sometimes a step back helps to provide perspective on a matter. President Obama provided such a step with his March 16 Executive Order, National Defense Resources Preparedness. In it we see in detail how completely the government may control our lives—euphemistically called the “industrial and technological base”—if the president were to declare a national emergency. It is instructive, if tedious, reading.

President Obama claims this authority under the Constitution and, vaguely, “the laws of the United States,” but he specifically names the Defense Production Act of 1950. As Freeman columnist and Independent Institute Senior Fellow Robert Higgs observed, “Under this statute, the president has lawful authority to control virtually the whole of the U.S. economy whenever he chooses to do so and states that the national defense requires such a government takeover.”

We shouldn’t assume this is merely an academic exercise or that a third world war would need to break out. In the last decade, under circumstances representing no “existential threat” to our society, the executive branch has exercised extraordinary powers.

Reading the Executive Order, I was reminded of a quotation of Leonard Read’s: “[A]nyone who even presumes an interest in economic affairs cannot let the subject of war, or the moral breakdown which underlies it, go untouched. To do so would be as absurd—indeed, as dishonest—as a cleric to avoid the Commandment ‘Thou shalt not steal’ simply because his parishioners had legalized and were practicing theft.”

The Executive Order begins by authorizing executive-branch officers to “assess on an ongoing basis the capability of the domestic industrial and technological base to satisfy requirements in peacetime [!] and times of national emergency, specifically evaluating the availability of the most critical resource and production sources, including subcontractors and suppliers, materials, skilled labor, and professional and technical personnel.”

But these officials are to do more than assess. They are to be prepared to “ensure the availability of adequate resources and production capability,” to “improve the efficiency and responsiveness of the domestic industrial base to support national defense requirements,” and to “foster cooperation between the defense and commercial sectors. . . .”

Further, the President’s order notes his authority to “require acceptance and priority performance of contracts or orders (other than contracts of employment) to promote the national defense over performance of any other contracts or orders, and to allocate materials, services, and facilities as deemed necessary or appropriate to promote the national defense” (emphasis added).

That is, the executive branch is first in line for whatever it wants (except civilian labor—perhaps).

Under the section titled “EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY,” the heads of agencies engaged in procurement are authorized to “guarantee loans by private institutions,” “make loans,” and “make provision for purchases of, or commitments to purchase, an industrial resource or a critical technology item for Government use or resale, and to make provision for the development of production capabilities, and for the increased use of emerging technologies in security program applications, and to enable rapid transition of emerging technologies.”

Think of the potential for corporatist rent-seeking.

In the section on personnel we learn that the secretary of labor shall “collect and maintain data necessary to make a continuing appraisal of the Nation’s workforce needs for purposes of national defense and upon request by the Director of Selective Service, and in coordination with the Secretary of Defense, assist the Director of Selective Service in development of policies regulating the induction and deferment of persons for duty in the armed services.”

So along with the commandeering of private resources, there will be a draft, the commandeering of military (and other?) labor—that is, slavery by another name.

Advocates of the freedom philosophy have a dual concern: that the executive has virtually unchecked authority to declare an emergency and that in an emergency the private economy would be commandeered by government officers. The Executive Order is a breathtaking reminder that, as Higgs put it, “private control of economic life in the United States, to the extent that it survives, exists solely at the president’s pleasure and sufferance.”

Sheldon Richman is the editor of The Freeman and TheFreemanOnline.org, and a contributor to The Concise Encyclopedia of Economics. He is the author of Separating School and State: How to Liberate America’s Families.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.

Are Immigration Laws Like Jim Crow? – Article by David Bier

Are Immigration Laws Like Jim Crow? – Article by David Bier

The New Renaissance Hat
David Bier
July 7, 2012
******************************

Alabama Governor Robert Bentley was forced to defend his state’s harsh immigration law recently against charges that it amounts to a return to segregation-era racially biased policies.  “What took place in the civil rights era was a series of unlawful actions against lawful residents,” Bentley said in response to the charges. “It was a shameful chapter in our state’s history. The immigration issue of today is entirely different.”

Parallels to segregation might be slightly overdone, but to call immigration policies “entirely different” is disingenuous. America’s restrictive immigration system was invented by the Eugenics Research Institute’s future president, Rep. Albert Johnson (R-Washington), who wanted to protect America’s racial purity from, in the words he quoted from a State Department official, “unassimilable . . . filthy . . . and often dangerous” foreigners. While such laws are no longer justified on racial grounds, their impacts today are just as ethnically disparate—more than 80 percent of immigrants labeled “illegal” are Hispanic, and 97 percent (pdf) of deportees are Hispanic.

Nor was segregation “unlawful”—it was a bizarre system of legal controls. Although it’s best known as a system of social control, it was just as much a system of economic regulation. Jim Crow began humbly—with segregated streetcars in Georgia in 1891—but quickly escalated, imposing on southern businesses ever more burdensome requirements: twice the number of bathrooms, waiting rooms, ticket counters, phone booths, even cocktail lounges. The president of Southeastern Greyhound told the Wall Street Journal in 1957, “It frequently costs fifty percent more to build a terminal with segregated facilities.”

Businessmen Conscripted

Since laws that intend to control personal behavior are so rarely enforceable, governments conscript business people to act as de facto State agents. In this way social controls quickly morph into economic regulations. It is often forgotten that the railroad in the infamous Supreme Court case Plessy v. Ferguson (1896) actually helped fight  the “separate but equal” doctrine because it “saddled employers with the burden of becoming the state’s race policemen.” Immigration law, which began as a way to restrict the movement of foreigners into the United States, has followed exactly the same pattern. Today a vast portion of America’s immigration code targets businesses, not foreigners.

Jim Crow’s regulatory state only affected businesses that served both white and African American patrons. For most small businesses, the costs of the regime were simply too great. Similarly, for many businesses today, hiring migrant workers has just become too dangerous. “I always relate it to tax law,” labor law consultant Barlow Curran recently told the Tampa Tribune. “Federal tax law is so complicated that if the IRS audits you, regardless of how careful you’ve been, they’ll probably find something. The same thing is true of farm labor law.” No wonder Immigration and Customs Enforcement has imposed $100 million in fines in just the last three years alone—more than the Bush administration’s previous eight years.

Alabama has only added to these regulatory threats. The state’s HB 56—enacted a year ago—mandated that employers use E-Verify to check the work authorization for potential employees. Over 60,000 Alabama businesses missed the deadline. If employers are unable to comply, they face license suspensions and may even be given the “business death penalty,” permanent closing.

As Isabel Wilkerson documents in her Pulitzer Prize-winning The Warmth of Other Suns, more than six million African Americans fled the Jim Crow South and left many southern employers facing labor shortages. “Farmers . . . have [woken] up on mornings recently to find every Negro over 21 on his place gone,” editorialized the Macon Telegraph in 1916 as the Great Migration began. “And while our very solvency is being sucked out beneath us, we go about our affairs as usual.”

Fleeing the State

Alabama is discovering that harsh immigration laws can just as easily “suck the solvency out beneath” them. “From a business point of view, it’s a terrible piece of legislation,” Henry Hagood, CEO of Alabama Associated General Contractors, told Reuters. “My counterparts around the country are saying, ‘thanks for sending workers our way.’” Tens of thousands of workers have already fled the state. University of Alabama professor Samuel Addy found that losing these workers reduced the state’s GDP by between $2.3 billion and $10.8 billion.

Conservatives who profess a commitment to the free market must extend that commitment to the labor market. They must realize that harsh immigration laws have the same dire effects on business as other burdensome regulations. They limit not only the free movement of foreign workers but also the rights of American businesses to hire, transport, and associate freely. They need to go the same way as Jim Crow—into the dustbin of history.

David Bier is the immigration policy analyst at the Competitive Enterprise Institute.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.

Independence from ACTA Day – July 4, 2012 – Video by G. Stolyarov II

Independence from ACTA Day – July 4, 2012 – Video by G. Stolyarov II

July 4 now has a new meaning: it is the day European pro-liberty activists helped humankind declare independence from the powerful special interests that attempted to impose censorship, online surveillance, and draconian stifling of creativity via the misnamed Anti-Counterfeiting Trade Agreement (ACTA).

Following the rejection of ACTA in the European Union Parliament by a vote of 478 to 39, ACTA is effectively dead. A great threat to human civilization is averted.

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

Support these video-creation efforts by donating at The Rational Argumentator: http://rationalargumentator.com/index.html

References:
– “ACTA: The War on Progress, Freedom, and Human Civilization” – Essay by G. Stolyarov II
– “Victory! ACTA Suffers Final, Humiliating Defeat in European Parliament” – Rick Falkvinge
– “Anti-Counterfeiting Trade Agreement” – Wikipedia

Audit the Fed Headed for the House Floor! – Article by Ron Paul

Audit the Fed Headed for the House Floor! – Article by Ron Paul

The New Renaissance Hat
Ron Paul
July 4, 2012
******************************

Last week supporters of Federal Reserve transparency had a major victory when the House Committee on Government Oversight and Reform passed my Audit the Fed bill, HR 459 unanimously with all major audit provisions intact.  This clears the way for a House floor vote expected sometime in late July, and with a whopping 263 cosponsors, the chances of it passing have never looked better!  This is an unprecedented opportunity for transparency into how the currency of the United States is handled, and mishandled by the Federal Reserve.  It is more important than ever that my colleagues in the House and Senate understand what this legislation does and why it is so important.

The Federal Reserve is an enormously destructive and unaccountable force in both the U.S. economy and the greater global economy. Federal Reserve policies affect average Americans far more than fiscal, spending, and tax policies legislated by Congress; indeed the Fed “spends” more than Congress when it creates trillions of new dollars on its balance sheet to bail out favored financial institutions.

For several decades the Fed has relentlessly increased the supply of U.S. dollars (both real and electronic) and kept interest rates artificially low. These monetary policies punish thrift, erode the value of savings, and harm older Americans living on fixed incomes and the poor. The Fed’s expansion of the money supply, combined with artificially low interest rates, creates destructive cycles of malinvestment. This results in housing, stock market, and employment booms and busts that destroy lives.

While the Fed was created by Congress, current law prohibits Congress from fully auditing the Fed’s monetary policy – the Fed actions that impact Americans the most. The Fed’s financial statements are audited annually, but the Fed’s monetary policy operations are exempt from audit. Congress’ investigative arm, the Government Accountability Office (GAO), currently is prohibited by law from examining discount window and open market operations; agreements with foreign governments and central banks; and Federal Open Market Committee (FOMC) directives. It is precisely this information that should be made public.

The audit mandated in the Dodd-Frank Act focused solely on emergency credit programs, and only on procedural issues rather than focusing on the substantive details of the lending transactions. Most of the data on its other activities, such as open market operations and discount window lending, have only been published as a result of lawsuits—not because of Congressional action.  Dodd-Frank requires this information to be disclosed going forward, but with a two year time lag and with GAO restricted to auditing only the procedural components of any programs. H.R. 459 grants GAO and Congress access without special exemptions and ensures that ALL of the Fed’s lending actions will be subject to oversight.

Also, given the Fed’s establishment of dollar swap agreements with foreign central banks (which lent up to $600 billion at a time in 2008), and the increasing economic uncertainty surrounding Spain, Greece and the European Union, the Fed’s continued financial assistance to Europe should not be exempt from public accountability and Congressional oversight. H.R. 459 brings transparency to the Fed’s agreements with the European Central Bank and other foreign entities.

H.R. 459 does not limit the focus of the audit, making a full audit finally possible. An entity that controls the value and purchasing power of the dollar should not be permitted to operate in the dark without oversight by Congress and accountability to the people. The Fed needs transparency and H.R. 459 would provide it. We now have this opportunity to ensure solid passage of HR 459 on the House floor, then the Senate floor and have it promptly signed into law.

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.

Mr. Stolyarov Quoted in Heartlander Magazine Article on Hawaii’s Plastic-Bag Ban

Mr. Stolyarov Quoted in Heartlander Magazine Article on Hawaii’s Plastic-Bag Ban

The New Renaissance Hat
G. Stolyarov II
July 4, 2012
******************************

I have again been quoted in Heartlander Magazine, this time in “Aloha! Leave Your Plastic Grocery Bags at Home” by Kenneth Artz. I encourage you to read my comments there. Here are some of my further thoughts on this subject.

The recent banning of plastic bags in Los Angeles and Hawaii is a gross infringement on individual rights and free enterprise. Entirely harmless and consensual exchanges between stores and their customers are being prohibited, and in Los Angeles customers are being forced by the local government to pay for paper bags that stores would have preferred to give for free. This is a frightening infringement on consumer sovereignty, as it makes artificially scarce those goods which businesses would have preferred to make abundant and accessible for consumers’ benefit.

Freely available plastic and paper bags offer a superb convenience to consumers who may be making unplanned shopping trips – perhaps as a result of emergency needs.  Furthermore, store-provided bags are helpful even to consumers who have brought their own bags – just in case those consumers purchase more items than would fit into the bags they brought. The governments in Hawaii and Los Angeles are forcing such consumers to pay an extra fee because of their unforeseen, and sometimes very personal, needs. The ban and fee are hardest on the least economically advantaged consumers, for whom every penny counts. The inconvenience of the ban and the cumulative cost of the paper-bag fees can make the difference between financial sustainability and severe strain on personal and family budgets.

As my comments in the article make clear, the ban is also repugnant from the standpoint of morality and limited government. The only morally praiseworthy acts of environmental responsibility are those initiated and voluntarily sustained by private individuals and businesses.

This tax on convenience is an unacceptable exercise of arbitrary power. If a government can arrogate to itself the power to prevent mutually beneficial arrangements such as the free availability of plastic and paper bags – then what can it not do? What kinds of petty micromanagement are off limits to cities and counties? What room is left for creativity and innovation among individuals and businesses if the smallest things in life are subject to crippling prohibitions and controls?

Seasteading’s Potential and Challenges: An Overview – Video by G. Stolyarov II

Seasteading’s Potential and Challenges: An Overview – Video by G. Stolyarov II


Seasteading has recently emerged as a promising alternative to political activism. Seasteads — a concept originated by Patri Friedman and Wayne Gramlich — are modular floating ocean platforms that can be combined and recombined to create autonomous cities on the oceans.

Mr. Stolyarov provides a general overview of the areas in which the concept of seasteading shows promise, as well as some of the significant challenges it will need to overcome.

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

Resources:

– “Seasteading’s Potential and Challenges: An Overview” – Essay by G. Stolyarov II

– The Seasteading Institute

– “2011 Tōhoku earthquake and tsunami” – Wikipedia

Seasteading’s Potential and Challenges: An Overview – Article by G. Stolyarov II

Seasteading’s Potential and Challenges: An Overview – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
June 30, 2012
******************************

With many Western national governments, particularly in the English-speaking countries, increasingly approaching totalitarianism in their policies, the need for liberty-oriented reform has never been more urgent. This totalitarianism looms over us during a make-or-break time for human civilization. Depending on whether human beings will be allowed to innovate in peace, we can either achieve astonishing technological progress that will liberate us from age-old problems and bring about unprecedented prosperity – or we can descend into the barbaric abyss of interminable miseries that has characterized much of our species’ time on Earth.

Conventional political means are capable of rousing considerable passion – witness the Ron Paul movement in the United States. But, as the defection of Ron Paul’s son Rand to the Mitt Romney camp shows, such conventional means are vulnerable to the missteps of the liberty movements’ own leaders. Rand Paul’s endorsement of Romney fractured the Ron Paul movement and has created a widespread perception of mistrust among friends of liberty, many of whom will now go their own separate ways. Of course, it has historically been a considerable challenge to get libertarians to agree on a strategy for achieving beneficial change – and perhaps it is more reasonable not to expect agreement, but rather to develop an approach that would work in achieving greater liberty without the need for such agreement. It would also help if this approach did not need to be as cumbersome, top-down, and expensive as political activism.

Seasteading has recently emerged as a promising alternative to political activism. Seasteads – a concept originated by Patri Friedman and Wayne Gramlich – are modular floating ocean platforms that can be combined and recombined to create autonomous cities on the oceans. In 2008, Friedman founded The Seasteading Institute with the financial support of libertarian entrepreneur and investor Peter Thiel. The idea has attracted respectable financing from Thiel and others, as well as input from legal and engineering scholars, and proposals for seastead designs and businesses. The Seasteading Institute makes available a large collection of research papers, project ideas, and public discussions, and it is not my intent here to probe into or scrutinize every detail of its ambitions. Rather, I hope to provide a general overview of the areas in which the concept of seasteading shows promise, as well as some of the significant challenges it will need to overcome.

As a friend of liberty, I wish the seasteading movement all the best. It is vital to explore every peaceful approach that has even a possibility of reversing the galloping totalitarianism of Western national governments and creating an incentive structure for accelerating human technological innovation.

In today’s countries, the land and most homes are fixed. One cannot move with ease if one finds the government’s policies oppressive; one is reluctant to lose one’s home, land, larger articles of personal property, and other location-specific amenities. Some governments, such as that of the United States, will even try to impose an exit tax or lay claim to income earned abroad. The physical detachability of seasteads solves this problem by enabling a person and his property to move inseparably to a variety of communities, or to remain as an autonomous unit. Patri Friedman’s goal is to create laboratories for political experimentation on seasteads. Much faster implementation of innovative political structures would be possible on a seastead, as compared to a traditional country, since each seastead community would be small and modular. Quick decision-making in a small group would enable beneficial innovations to be deployed, while harmful policies could result in much easier secession from the community – simply by detaching one’s seastead and setting course for a different community.

Seasteading would not directly change existing political structures. However, it may achieve greater individual liberation in a twofold manner: (1) by liberating those individuals who choose to live on seasteads instead of in traditional nation-states, and (2) by creating a virtuous cycle of political competition that motivates traditional governments to enact reforms in order to keep up with the prosperity and innovation occurring on the seasteads. It is extremely difficult to convince a majority of citizens of a multimillion-person nation to adopt a radical new policy or to radically abolish existing policies, even if the change promises to improve life dramatically. But many people – including some politicians – who are reluctant to pioneer an improvement will be willing to accept it if it has been tried and shown to work elsewhere.

A major advantage of seasteading is that it can begin as a sufficiently low-profile movement to avoid crackdowns by existing centers of political power. The seasteading movement does not threaten the sovereignty of any country; it does not propose to take away any nation’s territory or to challenge its government’s jurisdiction over that territory. Indeed, the infant stages of seasteading may, out of practical necessity, entail the creation of seasteads that explicitly submit to the jurisdiction of the United States, Canada, or a country in Europe or East Asia. The purpose of those early seasteads would not be the direct exercise of political autonomy, but rather experimentation with seasteading technologies and modes of living. The early seasteads would yield useful insights about how to construct floating modular platforms to be durable, cost-efficient, spacious, and comfortable. At this stage, the seasteading movement does not require the support or even the notice of most people – or even all liberty-oriented people. The people who are interested can advance the viability of seasteading by their direct work on improving seastead design and creating viable seastead-based businesses.

Yet the initial stage of the seasteading movement remains its most vulnerable. Seasteads must be built somewhere under the jurisdiction of an existing government. It is possible for the various requirements pertaining to building standards, licenses, permits, and zoning to hobble the construction and deployment of seasteads. In most parts of the United States, it is difficult enough to obtain permission to build a new house or small office building! If federal agencies, such as the US Coast Guard or the Environmental Protection Agency, become involved, the difficulties would be further compounded. The seasteading movement would be greatly benefited by capable legal representatives who understand what current laws permit and would be ready to defend the construction of a seastead if it is challenged. Furthermore, it is essential to choose relatively lax and business-friendly jurisdictions for the construction and deployment of the initial seasteads. I recommend the approach of full compliance with all laws that actually exist, combined with a thorough knowledge of such laws – to give the seasteading movement the ability to refute arbitrary compliance requests that are not based in law – as well as a choice of jurisdictions where the laws in question are not as onerous. The seasteading movement must particularly be vigilant for attempts to quash the concept of seasteading itself, under the guise of achieving some formalistic compliance, but in reality motivated by an ideological opposition from the powers in a particular jurisdiction.

Once seasteads become sufficiently cost-effective and tested to be appealing to broader segments of the general public, the deployment of truly autonomous ocean communities can begin. Such communities could begin to arise once seasteads reach areas outside the territorial waters of any nation – but even there a risk exists of boarding, expropriation, and arrest by representatives of traditional nation-states. This risk is particularly high if a seastead is perceived to be engaged in activity that threatens the nation-state – such as trading in weapons or currently illegal drugs. Even though many advocates of seasteading, myself included, support drug legalization, it may be advisable to abstain from permitting certain substances on seasteads out of prudential considerations.

True political independence for seasteads will likely come about through an evolutionary process – much like the “benign neglect” of the American Colonies for decades by the government of Great Britain created a political culture that resisted restrictions on liberty when the British government began to impose them. Perhaps benign neglect from the United States and other Western powers will be the best that the early seasteaders can hope for. The first quasi-autonomous seastead communities might make a demonstration of complying with restrictions that Western governments would be particularly interested in enforcing extraterritorially. If a culture of such compliance is established, the seasteads might otherwise be left alone and free from the petty micromanagement that extends far beyond such matters as prohibiting trade in certain substances. But once there are enough seastead communities – each with already flourishing internal economies and many technological innovations to their credit – they may begin to have the resources and internal strength to resist impositions from traditional nation-states. Hopefully, this resistance will be accomplished by a peaceful assertion of sovereignty, a declaration of good will toward all other political jurisdictions, and simple acquiescence by the nation-states. Perhaps the economies of the seasteads and the traditional countries will have become so inextricably intertwined by that time, that violence will be deemed out of the question by all parties – and the populations of the traditional countries would strongly object to the notion of attacking another peaceful, prosperous, civilized community with many common cultural and even personal ties to these countries.

But inanimate nature can pose dangers to seasteads that are as great as the dangers posed by man. The oceans are not known to have the most clement conditions. Aside from severe storms, which can probably be withstood with sufficiently durable construction, the risks of earthquakes and accompanying tsunamis are immense – as Japan’s experience in 2011 has demonstrated. The 2011 Tohoku Earthquake and consequent meltdown of the Fukushima nuclear plant undermined confidence in nuclear power worldwide – despite the existence of more advanced nuclear technology that can avoid meltdowns. An earthquake and tsunami can wipe out even sturdy seastead communities. Furthermore, a large earthquake on the ocean during the early days of seasteading may greatly undermine interest in the movement. Therefore, it is particularly important to choose sites of low seismic activity to deploy at least some of the early seasteads. Deployment into more seismically active areas will be more viable once seasteading has reached such popularity that placing a seastead near an earthquake fault will be seen as no more unusual than building a house in California.

As a risk-averse person who prefers ample space, I would not be an early adopter of the seasteading lifestyle. However, I salute the pioneers who would be willing to live on the first seasteads, with their likely cramped conditions and limited amenities. They are paving (or, as the case may be, floating) the way for the rest of us. Ultimately, however, seasteads will need to be designed to accommodate the living standards to which people are accustomed on land. Persons with a strong desire to actualize a principle or with a particularly hardy disposition may be willing to accept some degree of privation; they would be a needed and much appreciated first wave of adopters. If the political situation on land becomes physically perilous to large numbers of people, a major exodus onto seasteads might be conceivable even before the seasteads become comfortable. In the absence of such an unfortunate development, however, I anticipate that seasteads would need to have the space and facilities typical of a small American house, or at least a large recreational vehicle (RV), before they become attractive to people without significant pioneering or ideological motivations.

The incremental evolution of seasteads toward viability, autonomy, and mass adoption seems the most likely practical course, but it is legitimate to ask whether it will be enough to stem the tide of encroachments on our freedoms today. Perhaps it will – combined with other forms of pro-liberty activity, including political activism in each country and continued technological and cultural innovation in areas where it remains possible. Seasteading may not be sufficiently mature to serve as a remedy to our current condition of servitude, but it may help us keep totalitarianism at bay in combination with other approaches. This is another avenue for friends of liberty to explore, and we need as many of those as we can get. Ultimately, the objective for libertarians and others who think similarly should be not to reach complete theoretical agreement on everything, but rather to enable each individual to arrive at a position where his or her direct efforts can effectively produce greater liberty, prosperity, and progress. Seasteading will hopefully serve to empower increasing numbers of people to make such lasting contributions.

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

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

The New Renaissance Hat
Ron Paul
June 19, 2012
******************************

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.