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Begin New Search Topic Oil Political Geography America Content Type Journal Article Publishing Institution The Objective Standard

1. The Creed of Sacrifice vs. The Land of Liberty

Author:
Craig Biddle
Publication Date:
10-2009
Content Type:
Journal Article
Journal:
The Objective Standard
Institution:
The Objective Standard
Abstract:
The proper purpose of government, wrote Thomas Jefferson, is to "guarantee to everyone the free exercise of his industry and the fruits acquired by it." The government "shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government." In accordance with this view of the purpose of government, the founders established a republic in which the government was constitutionally limited to the protection of individual rights-the rights to life, liberty, property, and the pursuit of happiness. In this new republic, men were free to think, to produce, and to trade in accordance with their own best judgment; thus, they were free to thrive in accordance with their intelligence, their ability, their initiative. The result was astounding. Nineteenth-century America was a land of unparalleled innovation and prosperity-and further political achievement. In addition to countless inventions that sprang up-including the steamboat, the cotton gin, vulcanized rubber, the telephone, the incandescent light, the electric power plant, the skyscraper, and the safety elevator-and in addition to the vital industries that arose or were revolutionized-such as the railroad, oil, and steel industries-19th-century America witnessed the end of slavery, which was recognized as a violation of the basic principle of the land. Between the end of the Civil War and the turn of the century, America came as close to being a fully rights-respecting society as any country has ever come. Men were essentially free to live their own lives, by their own judgment, for their own sake. Unfortunately, although the Land of Liberty was a great success, it would not and could not last. The founders established America on the principle of individual rights, but neither they nor the thinkers who followed them identified the deeper philosophic foundation on which this principle depends, namely, the morality of egoism-the idea that being moral consists in pursuing the values on which one's life and happiness depend. In the absence of this foundation, Americans have embraced philosophical ideas that are contrary to individual rights. Over the past century, Americans have increasingly accepted the morality of altruism-the notion that being moral consists in self-sacrificially serving others-and they have increasingly applied this morality to the realm of politics. Consequently, our government is no longer committed to "restrain men from injuring one another [and] leave them otherwise free to regulate their own pursuits of industry and improvement." Rather, our government regularly-and increasingly-"take[s] from the mouth of labor the bread it has earned" and redistributes that bread to those who have not earned it. Consider just a few of the countless altruistically motivated, wealth-redistributing laws and institutions that have been enacted or established over the past hundred years: The Federal Reserve violates the rights of Americans by (among other things) printing fiat money-thus debasing citizens' savings-in order to finance welfare programs, bail out failed banks, "rescue" bankrupt car companies, and the like. The Federal Deposit Insurance Corporation (FDIC) violates the rights of taxpayers by forcing them to insure the bank deposits of strangers. Social Security violates the rights of younger Americans by forcing them to fund the retirements of older Americans. The National Labor Relations Act (aka the Wagner Act) violates the rights of automakers (and other businessmen) by forcing them to "contract" with labor unions on terms that are detrimental to their businesses. Medicare and Medicaid violate the rights of taxpaying Americans by forcing them to fund the health care of the aged and the (allegedly) destitute. The Community Reinvestment Act violates the rights of bankers by forcing them to provide loans to people whom they regard as too risky for business. The Troubled Asset Relief Program (TARP) violates the rights of taxpayers by forcing them to purchase bad debt from failing financial institutions. The American Recovery and Reinvestment Act (ARRA) violates the rights of Americans by expanding the extent to which they are forced to fund welfare programs, unemployment benefits, government-run education, and the health care of others. Of course, federal, state, and municipal governments violate Americans' rights in thousands of other ways as well, but the foregoing indicates the enormity of the problem. The explicit "justification" for all such rights-violating laws and institutions-the principle behind all of them-is altruism: the notion that we have a moral duty to serve others, whether "the poor" or "the public interest" or "society" or "the common good." As Theodore Roosevelt put it, the government must "regulate the use of wealth in the public interest" and "regulate the terms and conditions of labor, which is the chief element of wealth, directly in the interest of the common good"; or as Franklin D. Roosevelt put it, the government must seek "the greater good of the greater number of Americans"; or as John F. Kennedy put it, the individual must "weigh his rights and comforts against his obligations to the common good"; or as Bill Clinton put it, the individual must "give something back" on behalf of "the common good"; or as George W. Bush put it, we must "seek a common good beyond our comfort"; or as Barack Obama puts it, we must heed the "call to sacrifice" and uphold our "core ethical and moral obligation" to "look out for one another" and to "be unified in service to a greater good." A government animated by this principle will increasingly force citizens to serve the so-called "common good"-and with each political success, the government will get bolder and more aggressive in its enforcement of this principle. This is why the U.S. government has graduated over decades from the mere redistribution of wealth via taxation and inflation . . . to the establishment of wealth-redistributing institutions and hubs such as Social Security, Medicare, and TARP . . . to the outright nationalization of businesses, such as American International Group (AIG), General Motors (GM), and Citigroup . . . and to the nullification of private contracts that stand in its way (e.g., employment contracts in the case of AIG bonuses, investment contracts in the case of Chrysler's senior-secured creditors). Under such expanding government control, explains an article in the New York Times: Businesses and private property . . . become not an instrument of private "egoism" but "functions of the people." They remain private wherever and so long as they fulfill their "functions." Wherever and whenever they fall down, the State steps in and either forces them to fulfill the functions or takes them over entirely. That description of what we have witnessed recently, however, was not written recently; it was written in 1938. Nor was the author describing conditions in the United States; he was describing conditions in Germany under the then-burgeoning National Socialist Party.
Topic:
Oil and War
Political Geography:
America

2. Antitrust with a Vengeance: The Obama Administration's Anti-Business Cudgel

Author:
Eric Daniels
Publication Date:
12-2009
Content Type:
Journal Article
Journal:
The Objective Standard
Institution:
The Objective Standard
Abstract:
Not yet a year into its term, the initially popular Obama administration has plummeted in popularity. In light of Washington's escalated meddling in the economy, many Americans are expressing deep concerns and anger about the statist direction in which this administration is steering the country. Unfortunately, however, few Americans are aware of-and the media is ignoring-one of the administration's most serious threats to our freedom: its stated intention to bolster antitrust enforcement. Since May, Christine Varney, the newly appointed assistant attorney general for the Justice Department's Antitrust Division, has conducted a speaking tour promoting the Division's new mandate under Obama and affirming the president's many campaign promises to "reinvigorate antitrust enforcement." Varney and her counterpart at the Federal Trade Commission, Jon Leibowitz, are publicly threatening "possible investigations" of businesses ranging from Google to Monsanto to IBM. In response to this new climate, antitrust advocates from Senator Charles Schumer to the American Booksellers Association have called on Varney to undertake new prosecutions. And New York Attorney General Andrew Cuomo recently joined the push by filing a suit against Intel.1 Americans should not only be aware of this ominous trend; they should be up in arms about it. Antitrust laws violate the rights of American businessmen and consumers, thwart economic development, and stifle our quality of life in myriad ways. To see why, we must first understand what antitrust law is. During the second half of the 19th century, as American companies grew and acquired assets around the country, they found themselves in a difficult position. Although companies could achieve economies of scale by acquiring smaller firms and unifying their efforts, state laws prevented them from doing so. Whereas some state legislatures imposed special taxes on out-of-state corporations doing business in their states, other legislatures forbade corporations in their state from holding the stock of companies based elsewhere. (Legislators established such restrictions in the hope that they would force successful companies to incorporate-and thus pay taxes-in their state.) In response to these restrictions on acquisitions, C. T. Dodd and John D. Rockefeller of Standard Oil created a new form of business using the device of a legal trust, which enabled them to hold the stock of dozens of companies and thus effectively manage vast productive assets.2 The operational and financial advantages of this novel corporate structure were immense, yet critics alleged that the newly created trusts were "odious monopolies," charging them with "making competition impossible," "raising prices," and "disregarding the interests of the American consumer."3 Critics condemned this new legal device as a "problem" and branded businessmen who employed it as "robber barons." Yet these businessmen used this legal device to create their vast fortunes by increasing competition, lowering prices, and providing American consumers with more and better products.4 The problem was not that their novel form of business had generated economic inefficiencies-it had done the opposite. Rather, the problem was a political one. Because these businesses were becoming fabulously successful and their owners enormously wealthy, egalitarian-minded and envious Americans pressured politicians to "do something," and politicians, seeking approval, got "tough" on the issue. A solution to the trust "problem" came in the form of the Sherman Antitrust Act of 1890. Senator John Sherman and his colleagues claimed that trusts were "combinations that affect injuriously the industrial liberty of the citizens of these States."5 Critics of the trusts claimed that their high profits were achieved-not through the entrepreneurial, managerial, and productive genius of men such as Rockefeller, Edison, and Carnegie-but by "the few extorting the many."6 Because of the "public outcry on the trust question" and the alleged need to protect the "interests of the consumer," Sherman and his colleagues advocated the creation of a broad law that outlawed "monopolization" and "restraint of trade." That law was the Sherman Antitrust Act, and since its passage in 1890 Congress has added five other antitrust laws to the books, prohibiting dozens of supposedly "anticompetitive" business practices.7 . . . To read the rest of this article, select one of the following options: Subscriber Login | Subscribe | Renew | Purchase a PDF of this article.
Topic:
Economics and Oil
Political Geography:
America