I recall a conversation I had with my brother-in-law, who is left-leaning and a solid Democrat. I was trying to explain why I viewed taxation as immoral. My slant was something like this: if taxes are good and beneficial, then individuals would pay them voluntarily. Why force me to put my money where I would otherwise not put it? To me, this is an irreconcilable abrogation on private property rights.
His response was simple: to him, taxes were voluntary. He trusts the system (more than I do, anyway) and gladly pays his taxes for what he sees are fair pay-offs: health care assistance, education assistance, roads, social security, etc. In short, he voluntarily would pay his taxes. He chooses to do so. Even if the IRS removed their thousands of armed agents and strict federal tax evasion laws were repealed, he’d still pay.
Now my argument is this: that’s fine and dandy if you or even many people would voluntarily pay the government for these services. But what of us that would not willingly do so, provided stringent repellents were not in place? We are being forced or compelled to use our money in a way we would not choose to.
Consider how many tens of millions of Americans are being forced to pay taxes (taxes and tax policy are largely controlled by unelected bureaucrats) against their will! Where is their agency? Where is their individual liberty? Why is it neglected?
Did our Founding Fathers really think that a bare majority (or unelected bureaucrats, as the case may be) are morally justified in setting an arbitrary tax rate that is binding on everyone else?
I think not. Democracy is highly over-rated in today’s political world, and is one way of abrogating private property rights and individual liberty itself. Far better to follow the Founding Fathers in severely limiting the powers and functions of government, especially government’s control over our pursestrings, and those of our grandchildren!
On the Stimulus Plan
The much-discussed stimulus plan is one amazing piece of legislation. Has there ever been one single piece of legislation to rival it in its scope and cost? Some estimate its eventual cost to be $3 trillion.
There is something very backwards and contradictory about the mainstream Keynesian economic assumptions behind the bill: the government is somehow able to get us out of this mess.
Historically, governments do not run economies well. They do tragically poorly when trying to distribute resources equitably or justly. Just ask any who recall Khmer Rouge, Red China, North Korea, or the USSR. Each has a history of hundreds of thousands (in some cases tens of millions) of individuals starving to death as the government failed to distribute the simplest commodity, food, to individuals in need. If governments consistently fail to distribute food, a most basic necessity, to those in dire need, how can they distribute cash or capital necessary to jumpstart the economy again?
We can recall the source of these troubles: contrary to popular belief, the free market, as Thomas Woods’ latest book reminds us, is not the culprit, but government intervention is. How ironic that we allow those who got us into this mess (bureaucratic interventionists) to determine how to get us out.
The argument that something must be done is ludicrous: does heaping gasoline on a blazing fire help at all?
Far better to trust individuals acting freely to use their own resources as they see fit. Far better to follow the Austrian model and trust liberty, freedom, limited Constitutional government, non-interventionism (domestically and internationally) and the protection of individual rights (including private property rights). It is this model alone that predicted The Great Depression, the failure of socialism, and all other economic catastrophes, including the present one.
While most run to and fro wondering, “Why did this happen?” and “How do we get out of this?” we should trust those that have a proven record of understanding the problems associated with economic interventionism and the benefits of individual liberty.
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Filed under Austrian Economics, fiscal policy, Libertarian, monetary policy, politics, recession, role of government, Social Commentary