New. "THE MISLEADERS" 1. a series to supplement Andy Ray's Workgreenspun.com : LUSENET : TB2K spinoff uncensored : One Thread |
I've decided that Andy Ray's efforts are not "quite" getting through to the people who seem to be in most need of it and have the attention span of a guppy and/or the memory systems that nicely "forget" some of the verbiage they thought passed for "wisdom" on TB I, Roleigh Martin, LoserWire and North/Hyatt.
We shall begin with His Dreadfulness, Brer Duct Tape who seems to have lost his lust for earning his title of so many years: Scary Gary.
from "FORMERLY SCARY GARY DUCT TAPE WILL BE MONEY BECAUSE I SAY SO":
Gary North's REALITY CHECK
Issue 51
June 26, 2000
THE PATRIOT
At a recent pre-release showing of "The Patriot" for
the press, the audience gasped at a scene where Mel
Gibson's character takes his teenage sons into the woods to
shoot a few redcoats. Was this scene politically
incorrect? I guess it was. Gibson replied that the
American Revolution was fought on American soil, and
families were defending their land. He said that he has
taken his sons to shooting ranges to learn how to handle
firearms.
My father took me to a police range when I was 9 years
old. He gave me a .22 rifle. He was in law enforcement,
and he wanted me to learn how to shoot. After an hour's
practice, I became a pretty good shot. I had always known
about gun safety. When I was a young child, I was not
allowed to point a cap pistol at anyone, which kind of
ruined the use of cap pistols as far as I could see. This
rule did not apply to ray guns, as I recall, which may
explain my early fondness for science fiction, back in
radio's "Dimension X" and "X Minus One" era.
I think "The Patriot" will be a big money-maker for
Gibson. The previews look good. I hope it raises the
basic themes of the American Revolution: national
sovereignty, the defense of one's home from aggression, the
right of political representation in tax issues, the right
of rebellion against tyranny.
TAX TYRANNY
Do you know what tax tyranny of 1776 was in the
colonies? A rate of taxation in the 1% range -- possibly
as high as 2.5% in the South's plantation colonies. In
other words, to get back to the level of British tyranny,
our present tax rate would require a reduction of about
95%.
What was all the fuss about? Freedom. That's what
the fuss ought to be about today, but it isn't.
The prophet Samuel warned the Israelites against
setting up kingship. Why? Among other things, taxes.
And he will take the tenth of your seed, and of
your vineyards, and give to his officers, and to
his servants (I Samuel 8:15).
He will take the tenth of your sheep: and ye
shall be his servants (I Samuel 8:17).
To get back to that level of tyranny, it would take a 75%
tax cut.
Then there was Egypt under Joseph. Egypt was the
greatest bureaucratic tyranny in history until the 20th
century. That was German sociologist Max Weber's opinion
in 1909, and it's mine.
Then Joseph said unto the people, Behold, I
have bought you this day and your land for
Pharaoh: lo, here is seed for you, and ye shall
sow the land. And it shall come to pass in the
increase, that ye shall give the fifth part unto
Pharaoh, and four parts shall be your own, for
seed of the field, and for your food, and for
them of your households, and for food for your
little ones. And they said, Thou hast saved our
lives: let us find grace in the sight of my lord,
and we will be Pharaoh's servants. And Joseph
made it a law over the land of Egypt unto this
day, that Pharaoh should have the fifth part;
except the land of the priests only, which became
not Pharaoh's (Genesis 47:23-26).
To get back to that level of tyranny, it would take a 50%
tax cut.
Are you beginning to get the picture? I wish voters
around the world would. They don't.
BUREAUCRACY
There were other issues besides taxation that led to
the revolution. Jefferson wrote this about the king in the
Declaration of Independence:
He has erected a multitude of new offices, and
sent hither swarms of officers to harass our
people, and eat out their substance.
"Swarms of officers" is a nice rhetorical phrase. So
is "eat out of our substance." This sounds like swarms of
locusts. But what did Jefferson know about bureaucracy?
He never lived this century.
Back in 1971-72, I worked for Leonard E. Read at the
Foundation for Economic Education (FEE) in Irvington-on-
Hudson, New York. Leonard used to say that the voters
could not tell the difference between freedom and tyranny.
That could as easily have been said of Israel in Samuel's
day. If they did know, they did not care.
But colonists knew in 1776. Why? And why not now?
Modern historians rarely ask these questions. Why not?
Because they are the spiritual products of the welfare
state. They have adopted the worldview of the swarms of
officials. They are mostly paid officials in tax-funded
universities. They are part of the swarm.
You and I live in fear of violating some law. We face
700,000 lawyers. It was 100,000 a generation ago. We
wonder what will happen when it's a million American
lawyers, as it soon will be. The tax-funded law schools
keep cranking them out.
The better the economy gets, the less that people seem
to worry about the erosion of security for their property.
They think, "I can always get more money." But can they
always get more liberty? Does money buy liberty? Does our
disposable wealth provide us with greater liberty than what
most Americans enjoyed in 1776, 1783, or 1789? Except for
Southern slaves, the answer is no.
THE COMFORT FACTOR OF POLITICS
Do we really need more wealth to keep us comfortable?
If we could get a tax cut of 75%, could we get by? I think
so. Would the economy flourish? Yes. Would the swarms of
bureaucrats have to seek other employment? Yes. If not,
then we could lobby for additional tax cuts.
Will this generation do this? No. What about the next
generation of voters? Maybe, but it will take an economic
breakdown to do this -- a cessation of the Federal
government's ability to collect revenues.
Men get used to familiar problems. They usually
prefer to stick with the demons they know. This was not
true in 1776, but it is true today.
We don't want to have to learn new ways to make a
living. This is what keeps us trapped. For example, the
government's Social Security revenues keep rising, and the
recipients and soon-to-be recipients lobby to keep the
system alive. Such pressures will never end. They can be
thwarted only by national bankruptcy or a tax revolt by the
workers. Both events are likely, but I think the former is
more likely.
For as long as the swarms of officials can draw their
paychecks, nothing fundamental will change. Joel Skousen
has written for two decades that once the welfare benefits
get handed out, no nation ever abandons them voluntarily.
The public's addiction to government welfare programs
continues. But what if the money runs out? That may kill
an unpopular program, but it will be replaced by others.
I wish I could think of solid exceptions. A possible
example began in Germany on June 20, 1948, the day the
German economic advisor Ludwig Erhard (who became
Chancellor of Germany in 1963) announced the end of the
Allies' post-war price controls system.
http://www.bahnhof.se/~englund/shaly.htm
The American government was behind this reform. It even
provided the new currency.
http://mars.acnet.wnec.edu/~grempel/courses/germany/lectures/36airlift.html
Within one day, the West German economy began to revive.
Goods reappeared on the shelves, the black market began to
disappear, and employment jumped. (The decision also led
to the Soviet Union's sealing off of Berlin and the West's
response: the Berlin airlift.) The currency reform
produced the "German economic miracle." But the
bureaucracy never was removed; it just became more German.
Germany today remains a bureaucratized economy.
Skousen's statement prevails in this century. The
addiction to government money is politically irreversible.
This means that the tax reform never gets to the heart of
the matter: the reversal of the welfare state. Voters
don't want this reversal. They just want somebody else to
pay the taxes.
Voters are comfortable. They do not want
revolutionary change. They are content with today's
system. For as long as the tax revenues roll in, the
benefit payments will roll out (minus about 50% for postage
and handling).
Where will pressure for tax reform come from?
Churches? We have been waiting for over 80 years.
Universities? Most of them are supported by taxes. The
professors are unlikely to call for radical reform of the
system that employs them. From the major media? They are
controlled by college graduates who were taught to respect
the welfare system. From retired people? Not likely.
>From their children, who fear having to pick up the tab for
their parents? Unlikely. From workers? Someday, maybe.
But that's going to take a while. Maybe decades.
POSTPONING RETIREMENT
At some point, the revenues will fall below outflow in
Social Security. This will come sometime in the next
decade, no later than 2010. An extended recession would
accelerate this deadline. The obvious political answer is
to delay the beginning of retirement payments. The
government will have to extend the age at which recipients
become eligible for full payment.
The wise worker will recognize this early and begin to
prepare for it. What a working person will need is some
job to retire into. The goal is to beat the slow learners.
If you can find a way to grease the skids into alternative
employment, you're ahead of the crowd.
For those who are already in retirement, it's time to
begin looking for a way back into income-generating
service. Keep your pension, but start looking for
supplemental income. Start putting earned income away,
preferably by rolling it back into a debt-free home
business.
If you can postpone retirement on your terms, you have
gained a tremendous advantage over those who will find the
decision forced on them. Staying in the labor force will
involve your personal discomfort. But present discomfort
is what is required. People who want to guarantee comfort
for themselves when they are too old to work must work
longer than the government has promised to voters.
The Web is going to create income opportunities. You
have an advantage. You're on the Web. You have
familiarity with the basics. If you can begin to gain
information on using this technology for small businesses,
you're ahead of the curve.
You have information between your ears that you assume
everyone knows. Everyone doesn't know. Begin to think of
ways how you can sell this information. You may have to
give it away for a time, but you should plan eventually to
sell it.
I'm trying to be realistic. I don't plan to retire.
I don't think the political system will be able to pay off
to my generation. The bills will come due. They will
overwhelm the present Social Security system. Besides, who
wants to live off the government? We all need ways to keep
productive. The first step is mental: accept the fact that
you will not be able to retire if your under age 60. Then
accept it emotionally. Finally, begin to make serious
plans about how to stay in the labor force without having
to work as a greeter at Wal-Mart.
* * * * * * * * * * * * *
My economic commentary on Luke is due to be posted