Monthly Archives: October 2011

The evils of democracy and the mob: Quotes from some of the greatest minds in history.

Fisher Ames: “A democracy is a volcano, which conceals the fiery materials of its own destruction. These will produce an eruption, and carry desolation in their way.”

John Jay: “Pure democracy, like pure rum, easily produces intoxication, and with it a thousand mad pranks and fooleries.”

Lord Acton: “The one prevailing evil of democracy is the tyranny of the majority, or rather that party, not always the majority, that succeeds, by force or fraud, in carrying elections.”

George Washington: “It is one of the evils of democratical governments, that the people, not always seeing and frequently misled, must often feel before they can act.”

Alexander Hamilton: “If we incline too much to democracy, we shall soon shoot into a monarchy.”

Alexander Hamilton: “Real liberty is neither found in despotism, nor in the extremes of democracy, but in moderate governments.”

James Madison: “Where a majority are united by a common sentiment, and have an opportunity, the rights of the minor party become insecure.”

James Madison: “Democracies have ever been spectacles of turbulence and contention; have ever been found incompatible with personal security or the rights of property; and have in general been as short in their lives as they have been violent in their deaths.”

Alexis de Tocqueville: “The will of the nation is one of those phrases most widely abused by schemers and tyrants of all ages.”

Cicero: “No tempest or conflagration, however great, is harder to quell than mob carried away by the novelty of power.”

Cicero: “This excessive licence, which the anarchists think is the only true freedom, provides the stock, as it were, from which a tyrant grows.”

Plato: “Is it not the excess and greed of this and the neglect of all other things that revolutionizes this constitution too and prepares the way for the necessity of a dictatorship?”

Plato: “And is it not true that in like manner a leader of the people who, getting control of a docile mob, does not withhold his hand from the shedding of tribal blood, but by the customary unjust accusations brings a citizen into court and assassinates him, blotting out a human life, and with unhallowed tongue and lips that have tasted kindred blood, banishes and slays and hints at the abolition of debts and the partition of lands.”

Plato: “And a democracy, I suppose, comes into being when the poor, winning the victory, put to death some of the other party, drive out others, and grant the rest of the citizens an equal share in both citizenship and offices.”

Plato called democracy “a delightful form of government, anarchic and motley, assigning a kind of equality indiscriminately to equals and unequals alike!”

Polybius: “And hence when by their foolish thirst for reputation they have created among the masses an appetite for gifts and the habit of receiving them, democracy in its turn is abolished and changes into a rule of force and violence. For the people, having grown accustomed to feed at the expense of others and to depend for their livelihood on the property of others, as soon as they find a leader who is enterprising but is excluded from the houses of office by his penury, institute the rule of violence; and now uniting their forces massacre, banish, and plunder, until they degenerate again into perfect savages and find once more a master and monarch.”

The evil trinity of big government: media, public schools, and government bureaucracy

With Occupy Wall Street in the news, the decline of the American economy and competitiveness, and our growing indebtedness as individuals and a nation, I have been thinking a lot the causes of our current “unequivocal experience.” [Hamilton, Federalist No. 1] Or as Hamilton wrote in Federalist No. 15, “We may indeed with propriety be said to have reached almost the last stage of national humiliation. There is scarcely anything that can wound the pride or degrade the character of an independent nation which we do not experience.”

For those who read this blog, my tweets, or my books, you already know that I firmly believe that all problems in government can be traced to the people. No government can stand long without the support–or lack of opposition–from the people, as Hamilton points out in Federalist No. 21 and Madison in Federalists No. 28 and 44.

The question then is not why the government has grown, but why the people have encouraged or allowed its growth from under ten percent of GDP to over forty percent over the past century.

Quite a while ago I came to the conclusion–and I’m sure I’m not alone in this opinion–that there is an evil trinity promoting big government.

  • The media: The print and television media has long been controlled by the left. Only with the emergence of Fox News and talk radio has the right gotten a voice. The Internet has also helped expanded “alternative” viewpoints. Nevertheless, the left still has a dominant market share among casual listeners/viewers/readers. The media has an innate interest in promoting government. The media’s job is to find a problem or crisis and blow it out of proportions to get ratings. On top of that, a story gets even more traction if there is somebody to blame. Who to blame? Well, you certainly cannot blame your customers, even if they are responsible. So, the media blames big corporations, the government, or foreign nations. If they blame a foreign nation, obviously it is the government’s job to protect us from these foreign attacks. If they blame a big corporation, only the government is large enough and powerful enough to rein them in. If they blame the government, they suggest, promote, or demand that the government do more next time to prevent its own mistakes. (Think about government stimulus, which the media says failed only because it was not big enough.)
  • Public education system: Most Americans received the majority of their education from the public school system. Public schools teach nearly 100% of K-12 students. Even in college, many universities are public with tuition subsidized by the states. On top of that, the federal government subsidizes student loans to private universities, which creates all sorts of market distortions. Public school administrators and teachers alike receive their paychecks from the government. They have chosen to work for government and most of them, by choice or mandate, join the teachers union. These teachers and administrators are brainwashed by unions and government education departments and then brainwash their own students to believe those same ideals. When election time comes, they turn out in droves and convince parents through phone calls (I received one the other day) and PTA activities to vote for their candidates and to approve propositions to increase their funding.
  • Government bureaucracy: Currently, seventeen percent of American jobs are in the government sector. On top of that, as I write in The Path to Tyranny, “these employment figures do not include all the jobs created by the 529 billion dollars worth of contracts given out by the federal government each year, two-thirds of which were for defense programs. As of 2006, government contracts to private defense companies employed an additional 1.4 million people.” Just like the teachers and school administrators above, these people want to keep their jobs and generally believe that they are doing more good than bad for the country.

With such a large percentage of Americans working for the government, either directly or through public schools, with the media’s influence on the American mind, and the public school system’s stranglehold on our children’s education, the left has been able to advance their agenda with little opposition. There should be little doubt as to why government’s size has more than quadrupled in the last hundred years and now eats up almost half of our GDP (with the cost of regulation added on top of that).

A fourth group may possibly be included: welfare recipients. Back in 2009, I wrote about this in The Path to Tyranny, but the situation has worsened since then. Here is what I wrote then:

In the first quarter of 2009, Social Security, Medicare, welfare, and other benefits provided by the government accounted for 16.2 percent of all personal income, a record high. Americans have become dependent on the government, something the Founders did not intend. After paying tens or hundreds of thousands of dollars into Social Security and Medicare, only the very rich would be able forego the benefits promised them. Every election, retirees and people approaching retirement vote for candidates who promise not to touch their retirement or health care programs. This has made fixing the structural problems behind these programs virtually impossible, but it has accomplished the goal of modern liberals and socialists of making Americans dependent on the government.

Nevertheless, I do not include these welfare/benefit recipients because they are people from all walks of life who do not represent a singular group. Though they certainly skew elections and public sentiment, there is no way to infiltrate, attack, and convince them as a group; we can only do so as individuals. The other three are institutions influencing government; this one is a loose collection of individuals. The left uses the apparatus of the left within the media, public education, and government bureaucracy to influence others. In contrast, those dependent on government are a symptom of big government more than a cause, though they certainly seek to maintain their benefits and this makes shrinking government more difficult. But these people do not necessarily promote big government. In fact, many oppose government’s actions to increase welfare because it may threaten their own benefits. Thus, welfare/benefit recipients are not including among my evil trinity.

Topic to be continued…

Occupy Wall Street: A return to the chaos of ancient Greece and Rome

In Occupy Wall Street: The Return of Shays’ Rebellion, I wrote about how the Occupy Wall Street protesters, like the participants in Shays’ Rebellion, demand debt relief or forgiveness. But I must point out that this demand for debt relief predates the United States by at least a couple of thousand years.

The ancient Greek and ancient Roman historians and philosophers warned against debt relief and those who demand it.

About 2,300 years ago, Plato warned the ancient Greeks:

And is it not true that in like manner a leader of the people who, getting control of a docile mob, does not withhold his hand from the shedding of tribal blood, but by the customary unjust accusations brings a citizen into court and assassinates him, blotting out a human life, and with unhallowed tongue and lips that have tasted kindred blood, banishes and slays and hints at the abolition of debts and the partition of lands.

In ancient Rome, Cicero warned:

And what is the meaning of an abolition of debts, except that you buy a farm with my money; that you have the farm, and I have not my money?

They say that those who forget history are doomed to repeat it. With the return of the demand for debt relief, we clearly have neglecting our study of history.

– Michael E. Newton is the author of the highly acclaimed The Path to Tyranny: A History of Free Society’s Descent into Tyranny. His newest book, Angry Mobs and Founding Fathers: The Fight for Control of the American Revolution, was released by Eleftheria Publishing in July.

Occupy Wall Street: The Return of Shays’ Rebellion

One of the demands by the Occupy Wall Street protestors is student loan relief. According to a report by CNBC:

It may be hard to pin down exactly what the Occupy Wall Street protesters want, but one of the sources of their frustration seems clear. Many of the demonstrators are drowning in student debt.

[…]

One proposed list of demands for the Occupy Wall Street movement includes “free college tuition” and “immediate across the board forgiveness” of student debt. While neither demand may be very realistic, the student debt problem is very real.

[…]

Of course, if some of the protesters get their way, with free tuition and debt forgiveness, the problem might go away. Rose Swidden, the agriculture student-turned-protester, acknowledges the demands may be far-fetched, but said it is worth a try.

“Sometimes if you shoot for the moon, you land in the stars.”

This is not the first time the United States has seen these demands for debt relief. The same demand was made 225 years ago during Shays’ Rebellion. As I describe in Angry Mobs and Founding Fathers:

Daniel Shays was one such army veteran disappointed by how the government treated veterans. Shays, who returned to farming after the war, was also angered by how creditors treated farmers who had borrowed money. As delegates from five states met in Annapolis in 1786 to try to fix some of the defects of the Articles of Confederation, Daniel Shays led a rebellion of 1,200 men against the Massachusetts government.

General Henry Knox wrote to George Washington explaining the objectives of Shays and his followers: “Their creed is, that the property of the United States has been protected from the confiscation of Britain by the joint exertions of all, and therefore ought to be the common property of all; and he that attempts opposition to this creed, is an enemy to equity and justice, and ought to be swept off the face of the earth… They are determined to annihilate all debts, public and private, and have agrarian laws, which are easily effected by the means of unfunded paper money, which shall be a tender in all cases whatever.”

While Shays’ Rebellion was put down quite easily, it could have easily led to civil war (from Angry Mobs and Founding Fathers):

Shays’ Rebellion was put down in January 1787 by a well-armed force of 4,400 men. Alexander Hamilton noted how close America came to civil war: “Who can determine what might have been the issue of her late convulsions, if the malcontents had been headed by a Caesar or by a Cromwell?”

In fact, although the rebellion itself was stopped and no Caesar or Cromwell emerged, the story did not end there (from Angry Mobs and Founding Fathers):

The rebels were pardoned and they succeeded in elections the following year. The new legislature passed the debt relief that the rebels demanded.

Shays’ Rebellion was all about debt relief, which is a major demand of the Occupy Wall Street protests.

We surely should heed the words of General Henry Knox and Alexander Hamilton and swear off this idea of debt forgiveness. Debt forgiveness is nothing more than stealing from a large number of people to satisfy the demand of a small but vocal minority.

– Michael E. Newton is the author of the highly acclaimed The Path to Tyranny: A History of Free Society’s Descent into Tyranny. His newest book, Angry Mobs and Founding Fathers: The Fight for Control of the American Revolution, was released by Eleftheria Publishing in July.

Is religion an issue in the presidential election?

Certain people are trying to bring religion into the race to be the Republican nominee for President. Reuters reports:

Republican presidential contenders Herman Cain and Michele Bachmann refused on Sunday to wade into a controversy over a Texas pastor’s comments about rival Mitt Romney’s Mormon faith.

I love this quote from Herman Cain:

“I am not running for theologian in chief,” Cain, a former pizza executive who is rising fast in polls, said on CNN’s “State of the Union” show when asked about the views of Dallas pastor Robert Jeffress.

As for this Robert Jeffress, you have to laugh at this comment:

“Absolutely, Mormonism is a false religion,” he told Reuters. “It was invented 1800 years after the establishment of Christianity.”

Umm, Christianity came about 1300 years after Judaism. Does that automatically make Christianity a false religion? I don’t think so!

Besides, Article VI of the Constitution clearly states:

No religious Test shall ever be required as a Qualification to any Office or public Trust under the United States.

So unless a candidate for office proposes establishing one religion over another, religion is not an issue. And since no candidate so far has suggested doing so, let’s drop this ridiculous idea and debate the real difficult issues in front of us.

The status quo results in socialism

Is America heading toward socialism? Is President Obama taking us there? Will the tea party save us?

I think the first question that must be asked is: What will happen if American does nothing? Forget about all the proposals for new government spending. Forget about tax policy for a second. What will happen if America simply maintains the status quo, without growing or reducing the size of government?

According to the Congressional Budget Office’s 2011 Long-Term Budget Outlook, the federal government will consume 34.1 to 75.9 percent of GDP in 2085. The lower number is called “The Extended-Baseline Scenario” while the higher number is “The Alternative Fiscal Scenario,” which includes the extension of the tax cuts set to expire, rising debt levels, and “spiraling interest payments.”

Add in current state and local spending, subtracting out governmental transfers, (that assumes state and local government do not grow, as they have done for the last 100 years) government at all levels will consume 49.7  to 91.5 percent of GDP in 2085.

Even with the CBO’s optimistic forecast, government will account for half of all economic activity. Currently, government accounts for about 40.9 percent of our economy. But the pessimistic outlook from the CBO has the government controlling nearly all of the economy. We will be fully socialist!

Unfortunately, I lean toward the more pessimistic outlook. And I’m not alone. The CBO writes:

Many budget analysts believe that the alternative fiscal scenario presents a more realistic picture of the nation’s underlying fiscal policies than the extended-baseline scenario does. The explosive path of federal debt under the alternative fiscal scenario underscores the need for large and rapid policy changes to put the nation on a sustainable fiscal course.

Looking at the accompanying spreadsheet, the CBO has unemployment falling to an average of 8.4% next year, then falling to 7.6% in 2013, 6.8% in 2014, 5.9% in 2015, 5.3% in 2016, 5.2% in 2019, 5.1% in 2026, and 5.0% in 2030 where it stays forever. Oh really? They really expect unemployment to average 5.0% from 2016 to 2085? Has the United States or any country ever had sustained low unemployment uninterrupted by recession for 70 consecutive years? I don’t think so!

Certainly, the Baseline Scenario is too optimistic. This means that even with no new government programs, government will account for well over half of all economic activity by 2085. In this Alternative Scenario, the CBO estimates that government at all level would consume nearly all of economic output.

Socialism is in our future if we do not change. Doing nothing–merely blocking new government programs–is not enough. We must undo the damage that has already been done and fix the government programs that are already eating up a growing percentage of our national production.

– Michael E. Newton is the author of the highly acclaimed The Path to Tyranny: A History of Free Society’s Descent into Tyranny. His newest book, Angry Mobs and Founding Fathers: The Fight for Control of the American Revolution, was released by Eleftheria Publishing in July.

Repeating history: The future of Greece, Europe, and the United States.

I’m rereading The Path to Tyranny to prepare it for a second printing and came across this section about Germany in the late 1920s and early 1930s (before the Nazis took over) very relevant for today:

The country’s economic problems worsened and the government approached bankruptcy. To reduce the budget deficit, the government raised unemployment insurance premiums, increased duties on wheat and barley, reduced pension and unemployment benefits, and cut the salaries of civil servants. The Social Democratic Party’s popularity declined even more when these measures pushed up unemployment even further and weakened the already fragile banking system. The government was trapped in a no-win situation. It cut back on spending to avoid bankruptcy, but this increased hardship on the people and reduced the government’s popularity. On the other hand, the government could have continued providing welfare to the people, but this would likely have forced Germany to default on its debt, which would have resulted in massive inflation and a flight of capital out of the country. The German government’s large deficits, which were the result of the economic depression combined with Germany’s already semi-socialist economy, forced Germany to decide between two equally bad choices. The resulting economic and political crisis was inevitable, regardless of what the government chose to do.

Are we in the same no-win situation today? If governments cut back on spending, this reverse-stimulus will hurt the economy and the removal of economic support will certainly increase the pain for many poor people. However, if the government continues with its deficit spending, bankruptcy will eventually occur, first in Greece which already has debt to GDP of 173%, but eventually in most if not all Western countries.