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Why the State Celebrates Its Failures
The Mises Institute ^ | May 09, 2005 | Grant M. NĂ¼lle

Posted on 05/09/2005 6:19:48 AM PDT by kjvail

The second anniversary of America's expedition into Iraq passed with relatively scant fanfare. Since hostilities in Mesopotamia commenced, thousands of American and Iraqi casualties have been tallied. Every month Washington spends billion of dollars on counterinsurgency and rebuilding efforts in Iraq and further afield, which swells the nation's largest budget and budget deficit in its history[i].

As vast quantities of blood and treasure are expended abroad, Washington politicians win plaudits domestically for their warmongering, and government contracting at home and abroad burgeon, on what basis is this imperial project—financed by foreign lenders and American taxpayers—justified?...

...Democracy deconstructed

As Hans Hermann-Hoppe adeptly describes in Democracy: The God that failed, the democratic state is inherently a "public" monopoly. Unlike privately-owned monopolies, e.g., monarchies where the sovereign generally has an incentive to moderate expropriations of property to preserve the realm's present value for heirs, state officials in a democracy are mere caretakers who cannot privately enrich themselves from ownership or sale of government property.

Rather, a moral hazard and tragedy of the commons ensues as bureaucrats and politicians may merely exercise use of government property while on the state payroll, precipitating a strong inducement to maximize current use of government property, irrespective if such activities entail dire consequences for taxpayers and the economy at large.

As concerns government finance, officials conduct the borrowing and enjoy the resultant political plaudits from the constituencies that benefit from state largesse while other private citizens defray the expenditures and debts via taxation or government-stoked money creation. Indeed, Hoppe contends an elected president can run up public debts, instigate inflation, inaugurate long-running wars, and introduce other state projects footed by hapless taxpayers without being held personally liable for the consequences.

Rothbard’s Wall Street, Banks and American Foreign Policy methodically chronicles how the personnel of successive democratically-elected administrations manipulated American foreign policy to secure the narrow self-interests of connected business interests whilst justifying these massive, costly and incessant interventions on the pretext of combating communism or promoting democracy.

Politicians who have aggressively expanded the state in America and elsewhere are extolled as great. Verily, democratic governance provides an alluring career for aspiring politicians, their cronies and bureaucrats. Not only do officials have the resources accrued by the state at their disposal, they also exercise the authority and wherewithal to confiscate private property and participate in the process of spending and borrowing—absent individual culpability—all the while receiving a salary and pension funded by taxpayers. Furthermore, politicians and appointed administrators are only accountable during regular popularity contests, in which voters can reshuffle personnel but are not inclined to alter fundamentally the scheme of free-for-all theft.

Hoppe states democracy abolishes the distinction between rulers and ruled—the limited opportunity to become a member of the royal family that pervaded under monarchy—and assumes that any member of the political system may ascend to the upper echelons of governance. Given the state's indispensable need to steal for its subsistence and the nearly unfettered entry into the ranks of the ruling class, democracy renders it that much easier for politicians to accelerate exactions from the public, as the gates remain open for any individual or faction to gain access to governmental powers and impose the same taxes or regulations themselves. As democracy has taken root in the United States and elsewhere, jostling between rival political factions has been less about how flaccid or robust the state should be, but what direction the state should take as its scope expands.

The ability of elected politicians and entrenched bureaucrats to institutionalize and enforce systematic predation and redistribution of private property is an outcome of the democratic ethos itself. Indeed, the grand bargain of democracy is this: every individual within the system—whether voluntarily or not—cedes the inviolable title to his or her property for the ability to either elect, participate in or marshal a political movement that competes for the privilege of seizing and spending everyone else's money. It follows that individual responsibility and private property ownership are seriously impaired and denigrated as the government-instituted "law of the jungle" taps innate human characteristics such as envy, self-preservation, and keenness for gratification.

As Frederic Bastiat explained in The Law, self-preservation and self-development are universal instincts among men as is the preference to do so with the minimum amount of pain and the maximum level of ease. Plunder then is favored over production, so long as the risks and inputs of confiscation are not as agonizing or as indomitable as the painstaking act of production and exchange. When given an opportunity to seize private property or stipulate regulations on owner's use thereof, as democratic rule is wont to do, participants in the political system vie for the chance to apply the state's coercive arm in service of their supporters' ends.

Motivated by envy and self-preservation, all classes of individuals demand, whether through forceful or pacific means, the franchise as its price for defraying the expenses of others running the government. Once empowered to help decide the course of public expenditures—Bastiat wrote—plundered classes opt to be as licentious as other enfranchised classes, rendering the systematic looting universal, even though such profligacy is undeniably detrimental to the economy's well-being.

It should be noted that the chief feedback mechanism of democratic government, voting, does occur in private enterprises and associations. Beyond this superficial similarity, however, there are acute distinctions. Shareholders exercise voting rights in a corporation proportionate to stock ownership whereas every eligible voter in a democratic election is entitled to one vote, irrespective if they are net tax-eaters or taxpayers.

Should shareholders grow disaffected by voting procedures, business strategies or dividends payouts they may opt out of owning a portion of an enterprise by selling stock, a prerogative denied to democratic voters who must acquiesce to government spending plans and policies—regardless of consent—lest they risk jail or emigration. The intrinsic tenuousness of property ownership in a democratic system and the inability to extricate oneself and possessions from possible confiscation accelerates the temptation to seize other people’s goods.

Bastiat argues that the onset of universal plunder undermines the purpose of law, in his view the collective organization of the individual right to defense of life, liberty and property. The moment law is perverted to engineer ends contrary to individual liberty, e.g., enshrining the notion individuals are entitled to a portion of each other’s property absent voluntary agreement, the conversion pits morality versus the adulterated law. Thus, moral chaos is the outcome of democratization, as one must either relinquish respect for the law or compromise moral sense.

The divergence between morality and democratic rule can be observed in legal positivism, the notion that right and wrong are absent prior to the introduction of legislation. Legislation attenuates predictability of law as the free entry into government and the intrinsic fluidity of political priorities ensure the governing process reflects the most urgent desires of policy-makers and the electorate, irrespective of the long-term ramifications of the enacted rules. Furthermore, the emergence of public or administrative law, which exempts government agents from individual culpability when exercising their sanctioned duties, enables the state's workforce to engage in behaviors that no other individual may commit licitly. Lew Rockwell cites a few euphemisms where the state excused itself from the laws it professes to uphold, such as kidnapping posing as selective service, counterfeiting masquerading as monetary policy and mass murder sold as foreign policy[v].

Consequently, law is not considered negative—inimical to injustice as Bastiat would have it—much less universal, eternally bestowed, discoverable by man and anterior to the institution of government. Bastiat asserts that the prior existence of life, liberty, and property is the impetus for enacting laws in the first place. Moreover, the demarcation between right and wrong and the very definition of crime is obfuscated and debased by the inexhaustible and transitory adoption and amendment of legislative diktat and the bifurcation of law codes applicable to the rulers and the ruled.

In sum, the unique characteristics of democratic government tend, according to Hoppe, Bastiat and others, to accelerate rising time preference, decivilization, and the incidence of crime to the detriment of private property, voluntary production and exchange, individual responsibility and even morality.

Why then do Messrs. Bush, Wolfowitz, and any other politicians, statesmen or bureaucrats get away with inaugurating recurring conflicts and administer an ever-expanding vehicle of coercion and plunder? The fundamental rules and ethos of democratic government impel man's innate inclination toward self-preservation and self-development to not only produce, trade and safeguard his own possessions but also employ legal theft to acquire more property from others.

Politicians and their deputies are merely the best at exploiting the system's impaired moral climate to organize the state's confiscatory arm to serve their backer's interests.


TOPICS: Culture/Society; Government; News/Current Events; Philosophy; Politics/Elections
KEYWORDS: conspiracytheory; democracy; govwatch; intelligence; iraq; lewsers; monarchy; secondanniversary; tinfoilcoinvestor
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To: x

I am not comparing any particular monarchy to any particular republic, let alone under disparate circumstances. For a thousand years, we've seen bad monarchs and good monarchs, yet the level of taxation and appetite for wars remained pretty much a constant. Enter protestantism and elected national government, and in 4-5 centuries we have an uninterrupted expansion of government and, the latest innovation, total war.


101 posted on 05/10/2005 5:01:13 PM PDT by annalex
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To: jackbob
you recognize that the democratic state is unlikely to collapse

I say just the opposite, for example, in 90. The collapse of democratic nation-state is inevitable. It is coming within a generation. A natural order, resembling feudalism, will emerge, and dynasties of monarchic (=minarchist) rulers will emerge in time. This is as inevitable as change of seasons. No theorizing, libertarian or otherwise, can stop it.

102 posted on 05/10/2005 5:09:25 PM PDT by annalex
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To: annalex

So you tend to contradict your self. I try not to, though sometime I accidentally do, but I haven't for quite a long time. What you see as "inevitable," in the next hundred years, I do not see as occurring ever. Libertarianism however, I do see as inevitable. Its the next great step in human social evolution.


103 posted on 05/10/2005 5:18:06 PM PDT by jackbob
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To: x
There was a great deal of deterition in the monarchial system after the Napoleonic Wars, the governments that were re-established after the collapse of his empire didn't have the same character as the ones that collapsed under his onslaught.

The deteriotion started earlier of course, with the rise of the theory of absolutism and the splintering of Christendom during the Reformation

I have far less affection for the Protestant monarchies than the Catholic one's for obvious reasons.

The Church was a major check on the power of the monarch, remove that, as the Protestant kings did and you have a straight path to absolutism (which IMO is still better than democracy). However absolutism does not equal arbitrary. There still was a well-accepted notion of the inviolability of the natural law.

This is where democracies utterly fail, they seem incapable of respecting the natural law and the limits of positive law. Vox populi != vox Dei.

The writers of the US Constitution did understand and respect natural law, but they made a 2 huge errors. Religious indifferentism ie toleration of error and "power is derived from the consent of the governed", both are contrary to Truth and have grave consequences.

5. Indeed, very many men of more recent times, walking in the footsteps of those who in a former age assumed to themselves the name of philosophers,[2] say that all power comes from the people; so that those who exercise it in the State do so not as their own, but as delegated to them by the people, and that, by this rule, it can be revoked by the will of the very people by whom it was delegated. But from these, Catholics dissent, who affirm that the right to rule is from God, as from a natural and necessary principle.

12. Those who believe civil society to have risen from the free consent of men, looking for the origin of its authority from the same source, say that each individual has given up something of his right,[15] and that voluntarily every person has put himself into the power of the one man in whose person the whole of those rights has been centered. But it is a great error not to see, what is manifest, that men, as they are not a nomad race, have been created, without their own free will, for a natural community of life. It is plain, moreover, that the pact which they allege is openly a falsehood and a fiction, and that it has no authority to confer on political power such great force, dignity, and firmness as the safety of the State and the common good of the citizens require. Then only will the government have all those ornaments and guarantees, when it is understood to emanate from God as its august and most sacred source.

Diuturnum

Leo XIII, 1881

6. As a consequence, the State, constituted as it is, is clearly bound to act up to the manifold and weighty duties linking it to God, by the public profession of religion. Nature and reason, which command every individual devoutly to worship God in holiness, because we belong to Him and must return to Him, since from Him we came, bind also the civil community by a like law. For, men living together in society are under the power of God no less than individuals are, and society, no less than individuals, owes gratitude to God who gave it being and maintains it and whose everbounteous goodness enriches it with countless blessings. Since, then, no one is allowed to be remiss in the service due to God, and since the chief duty of all men is to cling to religion in both its teaching and practice-not such religion as they may have a preference for, but the religion which God enjoins, and which certain and most clear marks show to be the only one true religion -- it is a public crime to act as though there were no God. So, too, is it a sin for the State not to have care for religion as a something beyond its scope, or as of no practical benefit; or out of many forms of religion to adopt that one which chimes in with the fancy; for we are bound absolutely to worship God in that way which He has shown to be His will. All who rule, therefore, would hold in honor the holy name of God, and one of their chief duties must be to favor religion, to protect it, to shield it under the credit and sanction of the laws, and neither to organize nor enact any measure that may compromise its safety. This is the bounden duty of rulers to the people over whom they rule. For one and all are we destined by our birth and adoption to enjoy, when this frail and fleeting life is ended, a supreme and final good in heaven, and to the attainment of this every endeavor should be directed. Since, then, upon this depends the full and perfect happiness of mankind, the securing of this end should be of all imaginable interests the most urgent. Hence, civil society, established for the common welfare, should not only safeguard the wellbeing of the community, but have also at heart the interests of its individual members, in such mode as not in any way to hinder, but in every manner to render as easy as may be, the possession of that highest and unchangeable good for which all should seek. Wherefore, for this purpose, care must especially be taken to preserve unharmed and unimpeded the religion whereof the practice is the link connecting man with God.

18. In political affairs, and all matters civil, the laws aim at securing the common good, and are not framed according to the delusive caprices and opinions of the mass of the people, but by truth and by justice; the ruling powers are invested with a sacredness more than human, and are withheld from deviating from the path of duty, and from overstepping the bounds of rightful authority; and the obedience is not the servitude of man to man, but submission to the will of God, exercising His sovereignty through the medium of men. Now, this being recognized as undeniable, it is felt that the high office of rulers should be held in respect; that public authority should be constantly and faithfully obeyed; that no act of sedition should be committed; and that the civic order of the commonwealth should be maintained as sacred.

25. The authority of God is passed over in silence, just as if there were no God; or as if He cared nothing for human society; or as if men, whether in their individual capacity or bound together in social relations, owed nothing to God; or as if there could be a government of which the whole origin and power and authority did not reside in God Himself. Thus, as is evident, a State becomes nothing but a multitude which is its own master and ruler. And since the people is declared to contain within itself the spring-head of all rights and of all power, it follows that the State does not consider itself bound by any kind of duty toward God. Moreover. it believes that it is not obliged to make public profession of any religion; or to inquire which of the very many religions is the only one true; or to prefer one religion to all the rest; or to show to any form of religion special favor; but, on the contrary, is bound to grant equal rights to every creed, so that public order may not be disturbed by any particular form of religious belief.

26. And it is a part of this theory that all questions that concern religion are to be referred to private judgment; that every one is to be free to follow whatever religion he prefers, or none at all if he disapprove of all. From this the following consequences logically flow: that the judgment of each one's conscience is independent of all law; that the most unrestrained opinions may be openly expressed as to the practice or omission of divine worship; and that every one has unbounded license to think whatever he chooses and to publish abroad whatever he thinks.

27. Now, when the State rests on foundations like those just named -- and for the time being they are greatly in favor -- it readily appears into what and how unrightful a position the Church is driven. For, when the management of public business is in harmony with doctrines of such a kind, the Catholic religion is allowed a standing in civil society equal only, or inferior, to societies alien from it; no regard is paid to the laws of the Church, and she who, by the order and commission of Jesus Christ, has the duty of teaching all nations, finds herself forbidden to take any part in the instruction of the people. With reference to matters that are of twofold jurisdiction, they who administer the civil power lay down the law at their own will, and in matters that appertain to religion defiantly put aside the most sacred decrees of the Church. They claim jurisdiction over the marriages of Catholics, even over the bond as well as the unity and the indissolubility of matrimony. They lay hands on the goods of the clergy, contending that the Church cannot possess property. Lastly, they treat the Church with such arrogance that, rejecting entirely her title to the nature and rights of a perfect society, they hold that she differs in no respect from other societies in the State, and for this reason possesses no right nor any legal power of action, save that which she holds by the concession and favor of the government. If in any State the Church retains her own agreement publicly entered into by the two powers, men forthwith begin to cry out that matters affecting the Church must be separated from those of the State.

IMMORTALE DEI

Leo XIII, 1885

What is plain from these documents is any government that denies the Church her rights and denies the primacy of God and the need to profess the true religion, is de facto illegitimate.

"An unjust law is no law at all"

A good study in the proper civil order, Catholicism and the State , Dr. Thomas Droleskey

I know of no historical examples of democracies that have respected these teachings. Even the plebscite democracies of ancient Greece, as described by Plato, devolved in barbarism and relativism - they had no guiding light and we have lost ours or rather we have rejected Him.

104 posted on 05/10/2005 5:20:24 PM PDT by kjvail (Monarchy, monotheism and monogamy - three things that go great together)
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To: x
Another powerful piece that should not be missed is Revolution and Counter-Revolution , Prof. Plinio Corrêa de Oliveira
105 posted on 05/10/2005 5:34:47 PM PDT by kjvail (Monarchy, monotheism and monogamy - three things that go great together)
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To: kjvail

Your provided quotes and comments is the best argument I've read for a long time as to why our First Amendment needed to be broadly interpreted as a wall separating religion from the state, and further applicable to all local governments as well.


106 posted on 05/10/2005 5:35:11 PM PDT by jackbob
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To: annalex

Sorry, I missed interpreted your reply. You have not contradicted your self. What you see as inevitable has remained consistent. I of course do not agree.


107 posted on 05/10/2005 5:43:11 PM PDT by jackbob
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To: iconoclast

2/26 is the date in 1993 when an Iraqi intelligence agent named Ramzi Yusef bombed the World Trade Center the first time. On 9/11 we learned what happens as a result of burying our collective head in the sand, which is what you, and many others who either forgot or never understood the significance of that day, are proposing we do again.


108 posted on 05/10/2005 9:16:27 PM PDT by thoughtomator ("One cannot say that a law is right simply because it is a law.")
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To: thoughtomator
2/26 is the date in 1993 when an Iraqi intelligence agent named Ramzi Yusef bombed the World Trade Center the first time.

1993, no reaction. 2003, irrational reaction.

Is a rational U.S. government too much to ask for?

109 posted on 05/11/2005 4:46:48 AM PDT by iconoclast (Conservative, not partisan.)
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To: iconoclast
Our reaction to Saddam Hussein was only irrational in that we didn't do this years earlier.
110 posted on 05/11/2005 6:33:41 AM PDT by thoughtomator ("One cannot say that a law is right simply because it is a law.")
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To: thoughtomator
You mean, before the World Trade Center attacks?
111 posted on 05/11/2005 8:49:47 AM PDT by annalex
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To: thoughtomator; iconoclast; annalex

Wow. That's impressive. How long did it take you to commit that date to memory? Do you have a little list of dates next to your computer so that you can show off what an anti-terror warrior you are? I wonder if Bush, off the top of his head, would know what happened on that date. Never forget 7/17.


112 posted on 05/11/2005 8:58:45 AM PDT by ValenB4
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To: ValenB4

It took me all of two seconds to commit that date to memory, because I was in the building at the time. I waited for 8 long years for something to be done about this attack on US soil, and then the inevitable result of doing nothing happened.


113 posted on 05/11/2005 9:15:20 AM PDT by thoughtomator ("One cannot say that a law is right simply because it is a law.")
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To: thoughtomator

That fact does not make your opinion any more legitimate than others who are also informed about current events. I know someone whose father got out of one of the buildings on 9/11. This person doesn't think we did the right thing in going into Iraq. There are other 9/11 survivors who also feel the same way. Do their opinions trump yours because they survived an even bigger attack than the one you did? Of course not. The breakdown of opinion among survivors is probably in sync witht the general population.


114 posted on 05/11/2005 10:27:51 AM PDT by ValenB4
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To: ValenB4

I survived both attacks, not just the first. But I make no claim that that makes my opinion any better than any other. I am saying the events themselves are proof of an enemy who is determined and not containable. There is no option not to fight them. The only option is where we fight them. The various tyrants of the Islamic world are many heads of the same hydra, and we do not have the option not to confront them all. Given the nature of the particular hydra head named Saddam, we had no other option than to invade and depose him.


115 posted on 05/11/2005 11:33:04 AM PDT by thoughtomator ("One cannot say that a law is right simply because it is a law.")
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To: thoughtomator

I totally agree that we need to fight them. How one goes about that is the problem. I am very much distressed that nobody, especially Bush, is willing to address that the problem is Islam and its inherent shortcomings. Even the neocon hawks don't want to go there. There's no need to rehash pros and cons over the Iraq situation, it's been done before. My condolences for any losses suffered on the two attacks. I'm glad you made it out of there.


116 posted on 05/11/2005 11:43:55 AM PDT by ValenB4
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To: ValenB4

I don't care what the neocons want. I know what *I* want, which is to take these bastards on ASAP, because it will only get worse if we don't. Given that the choices on the table are the Bush strategery and appeasement/cowardice, I'll back the Bush strategery.


117 posted on 05/11/2005 12:02:55 PM PDT by thoughtomator ("One cannot say that a law is right simply because it is a law.")
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To: thoughtomator
The various tyrants of the Islamic world are many heads of the same hydra, and we do not have the option not to confront them all.

Saddam is/was a secularist despot with nothing in common with the Jihadists except the Muslim universal hatred of Israel.

But I would urge you to forward the hydra head idea to the Whitehouse .... they're always open to nutcase reasons for starting another war.

118 posted on 05/11/2005 2:08:04 PM PDT by iconoclast (Conservative, not partisan.)
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To: iconoclast

You won't have to fight it... nor will you have to pay for it. So just go back to your golf game and butt out of the business of preserving the freedom you abuse for future generations.


119 posted on 05/11/2005 2:15:41 PM PDT by thoughtomator ("One cannot say that a law is right simply because it is a law.")
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To: thoughtomator
I'll back the Bush strategery.

What would that be?

Other than trying to drag his sorry ass out the situation he's already in, of course.

120 posted on 05/11/2005 4:00:54 PM PDT by iconoclast (Conservative, not partisan.)
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