This article is a reminder of just how far this country has strayed from constitutionalism that the main author of the Constitution vetoed the spending bill related to roads. Today many people want to feds to do everything.
From: “Todd Orr” <email@example.com>
Sent: Thursday, February 13, 2020 2:27pm
Subject: Re: Changes that you’d like to see
Dear Mr. Orr,
What changes would you like to see in the Blount County Property Assessor’s Office?
Monday September 2, 2019
By Ron Paul, M.D. and former US Representative
The US Constitution never granted the federal government authority to create a central bank. The Founders, having lived through hyperinflation themselves, understood that government should never have a printing press at its disposal. But from the very beginning of America’s founding, the desire for a crony central bank was strong.
In fact, two attempts were made at creating a permanent central bank in America prior to the creation of the Fed. Fortunately, the charter for The First Bank was allowed to expire in 1811, and President Andrew Jackson closed down the Second Bank in 1833.
But, unfortunately, a third attempt was successful and the Federal Reserve was unconstitutionally created by Congress in 1913. Americans have been living under a corrupt and immoral monetary system ever since. The Federal Reserve is the printing press that has financed the creation of the largest government to ever exist. Endless welfare and endless military spending are both made possible by the Federal Reserve. The Fed can just print the money for whatever the US establishment wants, so those of us who long for a Constitutional and limited government have few tools at our disposal.
Despite all the propaganda claiming “independence,” the Fed has always been a deeply political institution. Because the Fed is a government-created monopoly with key government-appointed employees, its so-called “independence” is a mere fiction. However, the US Congress created the Fed with legislation; it can also abolish the Fed with legislation.
Last week, the facade of Federal Reserve “independence” was dealt a severe blow. Ironically, the person who broadcast to the world that the Fed is anything but “independent” was ex-New York Fed President Bill Dudley. Dudley wrote that, “Trump’s re-election arguably presents a threat to the United States’ and global economy, and if the goal of monetary policy is to achieve the best long-term economic outcome, the Fed’s officials should consider how their decisions would affect the political outcome of 2020.”
The timing of Dudley’s threats to use Fed monetary policy to affect the outcome of a US election couldn’t come at a more striking time. After all, for more than two solid years Americans have been bombarded with fabricated stories about Russians rigging our elections. And yet here is a Federal Reserve official threatening to do the same exact thing – but this time for real!
Whether it’s the mainstream media, the CIA, the FBI, or now the Federal Reserve, more and more Americans are waking up to the fact that there is a Deep State in America and its interests have nothing to do with American liberty. In fact, our liberty is what the Deep State wants to abolish.
When it comes to the Federal Reserve, I stand firmly by my conviction that it needs to be audited and then ended as soon as possible.
America’s Founders were not perfect. They were human beings just as capable of error as we are. But they had a remarkable understanding of the ideas of liberty. They understood that liberty cannot exist with a government that has access to a printing press. Sound money and liberty go hand-in-hand. If we want to enjoy the blessings of Liberty, we must audit and then end the Federal Reserve!
Why Do We Blame Women For Prohibition?
Today marks the 100 year history of the ratification of the alcohol prohibition amendment. Prohibition of alcohol was a failure, like prohibition of marijuana. At least 100 years ago, the federal government sought an amendment to take such action, where today it just acts, often without authority.
Recipient of last year’s Eagle Award, then Blount County Commissioner Tona Monroe, will be the speaker at the 4th annual Truth Radio Bill of Rights Banquet on Tuesday December 18th. The topic of the speech will be Proof of Authority and the Proper Role of Government: The Foundation of a Constitutional Republic.
A dinner will be held at 7 PM at RJ’s Courtyard located at 3749 Airport Hwy, Louisville, Tennessee 37777. Book your meal by calling WBCR at 984-1470.
This is a gem by Ezra Taft Benson. I encourage you to read it, but a video is included here for your convenience. The video is entitled Man, Freedon & Government.
The Proper Role of Government
Men in the public spotlight constantly are asked to express an opinion on a myriad of government proposals and projects. “What do you think of TVA?” “What is your opinion of Medicare?” How do you feel about Urban Renewal?” The list is endless. All too often, answers to these questions seem to be based, not upon any solid principle, but upon the popularity of the specific government program in question. Seldom are men willing to oppose a popular program if they, themselves, wish to be popular – especially if they seek public office.
Government Should Be Based Upon Sound Principles
Such an approach to vital political questions of the day can only lead to public confusion and legislative chaos. Decisions of this nature should be based upon and measured against certain basic principles regarding the proper role of government. If principles are correct, then they can be applied to any specific proposal with confidence.
“Are there not, in reality, underlying, universal principles with reference to which all issues must be resolved whether the society be simple or complex in its mechanical organization? It seems to me we could relieve ourselves of most of the bewilderment which so unsettles and distracts us by subjecting each situation to the simple test of right and wrong. Right and wrong as moral principles do not change. They are applicable and reliable determinants whether the situations with which we deal are simple or complicated. There is always a right and wrong to every question which requires our solution.” (Albert E. Bowen, Prophets, Principles and National Survival, P. 21-22)
Unlike the political opportunist, the true statesman values principle above popularity, and works to create popularity for those political principles which are wise and just.
The Correct Role Of Government
I should like to outline in clear, concise, and straight-forward terms the political principles to which I subscribe. These are the guidelines which determine, now and in the future, my attitudes and actions toward all domestic proposals and projects and projects of government. These are the principles which, in my opinion, proclaim the proper role of government in the domestic affairs of the nation.
“(I) believe that governments were instituted of God for the benefit of man; and that he holds men accountable for their acts in relation to them, both in making laws and administering them, for the good and safety of society.”
“(I) believe that no government can exist in peace, except such laws are framed and held inviolate as will secure to each individual the free exercise of conscience, the right and control of property, and the protection of life…”
“(I) believe that all men are bound to sustain and uphold the respective governments in which they reside, which protected in their inherent and inalienable rights by the laws of such governments; and that sedition and rebellion are unbecoming every citizen thus protected, and should be punished accordingly; and that all governments have a right to enact such laws as in their own judgments are best calculated to secure the public interest; at the same time, however, holding sacred the freedom of conscience.”
The Most Important Function Of Government
It is generally agreed that the most important single function of government is to secure the rights and freedoms of individual citizens. But, what are those right? And what is their source? Until these questions are answered there is little likelihood that we can correctly determine how government can best secure them. Thomas Paine, back in the days of the American Revolution, explained that:
“Rights are not gifts from one man to another, nor from one class of men to another… It is impossible to discover any origin of rights otherwise than in the origin of man; it consequently follows that rights appertain to man in right of his existence, and must therefore be equal to every man.” (P.P.N.S., p. 134)
The great Thomas Jefferson asked:
“Can the liberties of a nation be thought secure when we have removed their only firm basis, a conviction in the minds of the people that these liberties are of the gift of God? That they are not to be violated but with his wrath?” (Works 8:404; P.P.N.S., p.141)
Starting at the foundation of the pyramid, let us first consider the origin of those freedoms we have come to know are human rights. There are only two possible sources. Rights are either God-given as part of the Divine Plan, or they are granted by government as part of the political plan. Reason, necessity, tradition and religious convictions all lead me to accept the divine origin of these rights. If we accept the premise that human rights are granted by government, then we must be willing to accept the corollary that they can be denied by government. I, for one, shall never accept that premise. As the French political economist, Frederick Bastiat, phrased it so succinctly, “Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place.” (The Law, p.6)
The Real Meaning Of The Separation Of Church And State
I support the doctrine of separation of church and state as traditionally interpreted to prohibit the establishment of an official national religion. But I am opposed to the doctrine of separation of church and state as currently interpreted to divorce government from any formal recognition of God. The current trend strikes a potentially fatal blow at the concept of the divine origin of our rights, and unlocks the door for an easy entry of future tyranny. If Americans should ever come to believe that their rights and freedoms are instituted among men by politicians and bureaucrats, then they will no longer carry the proud inheritance of their forefathers, but will grovel before their masters seeking favors and dispensations – a throwback to the Feudal System of the Dark Ages. We must ever keep in mind the inspired words of Thomas Jefferson, as found in the Declaration of Independence:
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed.” (P.P.N. S., p.519)
Since God created man with certain unalienable rights, and man, in turn, created government to help secure and safeguard those rights, it follows that man is superior to the creature which he created. Man is superior to government and should remain master over it, not the other way around. Even the non-believer can appreciate the logic of this relationship.
The Source Of Governmental Power
Leaving aside, for a moment, the question of the divine origin of rights, it is obvious that a government is nothing more or less than a relatively small group of citizens who have been hired, in a sense, by the rest of us to perform certain functions and discharge certain responsibilities which have been authorized. It stands to reason that the government itself has no innate power or privilege to do anything. Its only source of authority and power is from the people who have created it. This is made clear in the Preamble to the Constitution of the United States, which reads: “WE THE PEOPLE… do ordain and establish this Constitution for the United States of America.”
The important thing to keep in mind is that the people in mind is that the people who have created their government can give to that government only such powers as they, themselves, have in the first place. Obviously, they cannot give that which they do not possess. So, the question boils down to this. What powers properly belong to each and every person in the absence of and prior to the establishment of any organized governmental form? A hypothetical question? Yes, indeed! But, it is a question which is vital to an understanding of the principles which underlie the proper function of government.
Of course, as James Madison, sometimes called the Father of the Constitution, said, “If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary.” (The Federalist, No. 51)
In a primitive state, there is no doubt that each man would be justified in using force, if necessary, to defend himself against physical harm, against theft of the fruits of his labor, and against enslavement of another. This principle was clearly explained by Bastiat:
“Each of us has a natural right – from God – to defend his person, his liberty, and his property. These are the three basic requirements of life, and the preservation of any one of them is completely dependent upon the preservation of the other two. For what are our faculties but the extension of our individuality? And what is property but and extension of our faculties?” (The Law, p.6)
Indeed, the early pioneers found that a great deal of their time and energy was being spent doing all three – defending themselves, their property and their liberty – in what properly was called the “Lawless West.” In order for man to prosper, he cannot afford to spend his time constantly guarding his family, his fields, and his property against attach and theft, so he joins together with his neighbors and hires a sheriff. At this precise moment, government is born. The individual citizens delegate to the sheriff their unquestionable right to protect themselves. The sheriff now does for them only what they had a right to do for themselves – nothing more. Quoting again from Bastiat:
“If every person has the right to defend – even by force – his person, his liberty, and his property, then it follows that a group of men have the right to organize and support a common force to protect these rights constantly. Thus the principle of collective right -its reason for existing, its lawfulness – is based on individual right.” (The Law, p. 6)
So far so good. But now we come to the moment of truth. Suppose pioneer “A” wants another horse for his wagon, He doesn’t have the money to buy one, but since pioneer “B” has an extra horse, he decides that he is entitled to share in his neighbor’s good fortune, Is he entitled to take his neighbor’s horse? Obviously not! If his neighbor wishes to give it or lend it, that is another question. But so long as pioneer “B” wishes to keep his property, pioneer “A” has no just claim to it.
If “A” has no proper power to take “B’s” property, can he delegate any such power to the sheriff? No. Even if everyone in the community desires that “B” give his extra horse to “A”, they have no right individually or collectively to force him to do it. They cannot delegate a power they themselves do not have. This important principle was clearly understood and explained by John Locke nearly 300 years ago:
“For nobody can transfer to another more power than he has in himself, and nobody has an absolute arbitrary power over himself, or over any other, to destroy his own life, or take away the life of property of another.” (Two Treatises of Civil Government, II, 135; P.P.N.S. p. 93)
The Proper Function Of Government
This means, then, that the proper function of government is limited only to those spheres of activity within which the individual citizen has the right to act. By deriving its just powers from the governed, government becomes primarily a mechanism for defense against bodily harm, theft and involuntary servitude. It cannot claim the power to redistribute the wealth or force reluctant citizens to perform acts of charity against their will. Government is created by man. No man possesses such power to delegate. The creature cannot exceed the creator.
In general terms, therefore, the proper role of government includes such defensive activities, as maintaining national military and local police forces for protection against loss of life, loss of property, and loss of liberty at the hands of either foreign despots or domestic criminals.
The Powers Of A Proper Government
It also includes those powers necessarily incidental to the protective functions such as:
(1) The maintenance of courts where those charged with crimes may be tried and where disputes between citizens may be impartially settled.
(2) The establishment of a monetary system and a standard of weights and measures so that courts may render money judgments, taxing authorities may levy taxes, and citizens may have a uniform standard to use in their business dealings.
My attitude toward government is succinctly expressed by the following provision taken from the Alabama Constitution:
“That the sole object and only legitimate end of government is to protect the citizen in the enjoyment of life, liberty, and property, and when the government assumes other functions it is usurpation and oppression.” (Art. 1, Sec. 35)
An important test I use in passing judgment upon an act of government is this: If it were up to me as an individual to punish my neighbor for violating a given law, would it offend my conscience to do so? Since my conscience will never permit me to physically punish my fellow man unless he has done something evil, or unless he has failed to do something which I have a moral right to require of him to do, I will never knowingly authorize my agent, the government to do this on my behalf. I realize that when I give my consent to the adoption of a law, I specifically instruct the police – the government – to take either the life, liberty, or property of anyone who disobeys that law. Furthermore, I tell them that if anyone resists the enforcement of the law, they are to use any means necessary – yes, even putting the lawbreaker to death or putting him in jail – to overcome such resistance. These are extreme measures but unless laws are enforced, anarchy results. As John Locke explained many years ago:
“The end of law is not to abolish or restrain, but to preserve and enlarge freedom. For in all the states of created beings, capable of laws, where there is no law there is no freedom. For liberty is to be free from restraint and violence from others, which cannot be where there is no law; and is not, as we are told, ‘a liberty for every man to do what he lists.’ For who could be free, when every other man’s humour might domineer over him? But a liberty to dispose and order freely as he lists his person, actions, possessions, and his whole property within the allowance of those laws under which he is, and therein not to be subject to the arbitrary will of another, but freely follow his own.” (Two Treatises of Civil Government, II, 57: P>P>N>S., p.101)
I believe we Americans should use extreme care before lending our support to any proposed government program. We should fully recognize that government is no plaything. As George Washington warned, “Government is not reason, it is not eloquence – it is force! Like fire, it is a dangerous servant and a fearful master!” (The Red Carpet, p.142) It is an instrument of force and unless our conscience is clear that we would not hesitate to put a man to death, put him in jail or forcibly deprive him of his property for failing to obey a given law, we should oppose it.
The Constitution Of The United States
Another standard I use in deterring what law is good and what is bad is the Constitution of the United States. I regard this inspired document as a solemn agreement between the citizens of this nation which every officer of government is under a sacred duty to obey. As Washington stated so clearly in his immortal Farewell Address:
“The basis of our political systems is the right of the people to make and to alter their constitutions of government. – But the constitution which at any time exists, until changed by an explicit and authentic act of the whole people is sacredly obligatory upon all. The very idea of the power and the right of the people to establish government presupposes the duty of every individual to obey the established government.” (P.P.N.S., p. 542)
I am especially mindful that the Constitution provides that the great bulk of the legitimate activities of government are to be carried out at the state or local level. This is the only way in which the principle of “self-government” can be made effective. As James Madison said before the adoption of the Constitution, “ (We) rest all our political experiments on the capacity of mankind for self-government.” (Federalist, No.39; P.P.N.S., p. 128) Thomas Jefferson made this interesting observation: “Sometimes it is said that man cannot be trusted with the government of himself. Can he, then, be trusted with the government of others? Or have we found angels in the forms of kings to govern him? Let history answer this question.” (Works 8:3; P.P.N.S., p. 128)
The Value Of Local Government
It is a firm principle that the smallest or lowest level that can possibly undertake the task is the one that should do so. First, the community or city. If the city cannot handle it, then the county. Next, the state; and only if no smaller unit can possible do the job should the federal government be considered. This is merely the application to the field of politics of that wise and time-tested principle of never asking a larger group to do that which can be done by a smaller group. And so far as government is concerned the smaller the unit and the closer it is to the people, the easier it is to guide it, to keep it solvent and to keep our freedom. Thomas Jefferson understood this principle very well and explained it this way:
“The way to have good and safe government, is not to trust it all to one, but to divide it among the many, distributing to every one exactly the functions he is competent to. Let the national government be entrusted with the defense of the nation, and its foreign and federal relations; the State governments with the civil rights, law, police, and administration of what concerns the State generally; the counties with the local concerns of the counties, and each ward direct the interests within itself. It is by dividing and subdividing these republics from the great national one down through all its subordinations, until it ends in the administration of every man’s farm by himself; by placing under every one what his own eye may superintend, that all will be done for the best. What has destroyed liberty and the rights of man in every government which has ever existed under the sun? The generalizing and concentrating all cares and powers into one body.” (Works 6:543; P.P.N.S., p. 125)
It is well to remember that the states of this republic created the Federal Government. The Federal Government did not create the states.
Things The Government Should Not Do
A category of government activity which, today, not only requires the closest scrutiny, but which also poses a grave danger to our continued freedom, is the activity NOT within the proper sphere of government. No one has the authority to grant such powers, as welfare programs, schemes for re-distributing the wealth, and activities which coerce people into acting in accordance with a prescribed code of social planning. There is one simple test. Do I as an individual have a right to use force upon my neighbor to accomplish this goal? If I do have such a right, then I may delegate that power to my government to exercise on my behalf. If I do not have that right as an individual, then I cannot delegate it to government, and I cannot ask my government to perform the act for me.
To be sure, there are times when this principle of the proper role of government is most annoying and inconvenient. If I could only FORCE the ignorant to provided for themselves, or the selfish to be generous with their wealth! But if we permit government to manufacture its own authority out of thin air, and to create self-proclaimed powers not delegated to it by the people, then the creature exceeds the creator and becomes master. Beyond that point, where shall the line be drawn? Who is to say “this far, but no farther?” What clear PRINCIPLE will stay the hand of government from reaching farther and yet farther into our daily lives? We shouldn’t forget the wise words of President Grover Cleveland that “… though the people support the Government the Government should not support the people.” (P.P.N.S., p.345) We should also remember, as Frederic Bastiat reminded us, that “Nothing can enter the public treasury for the benefit of one citizen or one class unless other citizens and other classes have been forced to send it in.” (THE LAW, p. 30; P.P.N.S., p. 350)
The Dividing Line Between Proper And Improper Government
As Bastiat pointed out over a hundred years ago, once government steps over this clear line between the protective or negative role into the aggressive role of redistributing the wealth and providing so-called “benefits” for some of its citizens, it then becomes a means for what he accurately described as legalized plunder. It becomes a lever of unlimited power which is the sought-after prize of unscrupulous individuals and pressure groups, each seeking to control the machine to fatten his own pockets or to benefit its favorite charities – all with the other fellow’s money, of course. (THE LAW, 1850, reprinted by the Foundation for Economic Education, Irvington-On-Hudson, N.Y.)
The Nature Of Legal Plunder
Listen to Bastiat’s explanation of this “legal plunder.” “When a portion of wealth is transferred from the person who owns it – without his consent and without compensation, and whether by force or by fraud – to anyone who does not own it, then I say that property is violated; that an act of plunder is committed!
“How is the legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime…” (THE LAW, p. 21, 26; P.P.N.S., p. 377)
As Bastiat observed, and as history has proven, each class or special interest group competes with the others to throw the lever of governmental power in their favor, or at least to immunize itself against the effects of a previous thrust. Labor gets a minimum wage, so agriculture seeks a price support. Consumers demand price controls, and industry gets protective tariffs. In the end, no one is much further ahead, and everyone suffers the burdens of a gigantic bureaucracy and a loss of personal freedom. With each group out to get its share of the spoils, such governments historically have mushroomed into total welfare states. Once the process begins, once the principle of the protective function of government gives way to the aggressive or redistribute function, then forces are set in motion that drive the nation toward totalitarianism. “It is impossible,” Bastiat correctly observed, “to introduce into society… a greater evil than this: the conversion of the law into an instrument of plunder.” (THE LAW, p. 12)
Government Cannot Create Wealth
Students of history know that no government in the history of mankind has ever created any wealth. People who work create wealth. James R. Evans, in his inspiring book, “The Glorious Quest” gives this simple illustration of legalized plunder:
“Assume, for example, that we were farmers, and that we received a letter from the government telling us that we were going to get a thousand dollars this year for plowed up acreage. But rather than the normal method of collection, we were to take this letter and collect $69.71 from Bill Brown, at such and such an address, and $82.47 from Henry Jones, $59.80 from a Bill Smith, and so on down the line; that these men would make up our farm subsidy. “Neither you nor I, nor would 99 percent of the farmers, walk up and ring a man’s doorbell, hold out a hand and say, ‘Give me what you’ve earned even though I have not.’ We simply wouldn’t do it because we would be facing directly the violation of a moral law, ‘Thou shalt not steal.’ In short, we would be held accountable for our actions.”
The free creative energy of this choice nation “created more than 50% of all the world’s products and possessions in the short span of 160 years. The only imperfection in the system is the imperfection in man himself.” The last paragraph in this remarkable Evans book – which I commend to all – reads:
“No historian of the future will ever be able to prove that the ideas of individual liberty practiced in the United States of America were a failure. He may be able to prove that we were not yet worthy of them. The choice is ours.” (Charles Hallberg and Co., 116 West Grand Avenue, Chicago, Illinois, 60610)
The Basic Error Of Marxism
According to Marxist doctrine, a human being is primarily an economic creature. In other words, his material well-being is all important; his privacy and his freedom are strictly secondary. The Soviet constitution reflects this philosophy in its emphasis on security: food, clothing, housing, medical care – the same things that might be considered in a jail. The basic concept is that the government has full responsibility for the welfare of the people and, in order to discharge that responsibility, must assume control of all their activities. It is significant that in actuality the Russian people have few of the rights supposedly “guaranteed” to them in their constitution, while the American people have them in abundance even though they are not guaranteed. The reason, of course, is that material gain and economic security simply cannot be guaranteed by any government. They are the result and reward of hard work and industrious production. Unless the people bake one loaf of bread for each citizen, the government cannot guarantee that each will have one loaf to eat. Constitutions can be written, laws can be passed and imperial decrees can be issued, but unless the bread is produced, it can never be distributed.
The Real Cause Of American Prosperity
Why, then, do Americans bake more bread, manufacture more shoes and assemble more TV sets than Russians do? They do so precisely because our government does NOT guarantee these things. If it did, there would be so many accompanying taxes, controls, regulations and political manipulations that the productive genius that is America’s would soon be reduced to the floundering level of waste and inefficiency now found behind the Iron Curtain. As Henry David Thoreau explained:
“This government never of itself furthered any enterprise, but by the alacrity with which it got out of its way. IT does not educate. THE CHARACTER INHERENT IN THE AMERICAN PEOPLE HAS DONE ALL THAT HAS BEEN ACCOMPLISHED; AND IT WOULD HAVE DONE SOMEWHAT MORE, IF THE GOVERNMENT HAD NOT SOMETIMES GO IN ITS WAY. For government is an expedient by which men would fain succeed in letting one another alone; and, as has been said, when it is most expedient, the governed are most let alone by it.” (Quoted by Clarence B. Carson, THE AMERICAN TRADITION, p. 100; P.P.S.N., p.171)
In 1801 Thomas Jefferson, in his First Inaugural Address, said:
“With all these blessings, what more is necessary to make us a happy and prosperous people? Still one thing more, fellow citizens – a wise and frugal government, which shall restrain men from injuring one another, which 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 had earned.” (Works 8:3)
A Formula For Prosperity
The principle behind this American philosophy can be reduced to a rather simple formula:
Economic security for all is impossible without widespread abundance. Abundance is impossible without industrious and efficient production. Such production is impossible without energetic, willing and eager labor. This is not possible without incentive.
Of all forms of incentive – the freedom to attain a reward for one’s labors is the most sustaining for most people. Sometimes called THE PROFIT MOTIVE, it is simply the right to plan and to earn and to enjoy the fruits of your labor.
This profit motive DIMINISHES as government controls, regulations and taxes INCREASE to deny the fruits of success to those who produce. Therefore, any attempt THROUGH GOVERNMENTAL INTERVENTION to redistribute the material rewards of labor can only result in the eventual destruction of the productive base of society, without which real abundance and security for more than the ruling elite is quite impossible.
An Example Of The Consequences Of Disregarding These Principles
We have before us currently a sad example of what happens to a nation which ignores these principles. Former FBI agent, Dan Smoot, succinctly pointed this out on his broadcast number 649, dated January 29, 1968, as follows:
“England was killed by an idea: the idea that the weak, indolent and profligate must be supported by the strong, industrious, and frugal – to the degree that tax-consumers will have a living standard comparable to that of taxpayers; the idea that government exists for the purpose of plundering those who work to give the product of their labor to those who do not work. The economic and social cannibalism produced by this communist-socialist idea will destroy any society which adopts it and clings to it as a basic principle – ANY society.”
The Power Of True Liberty From Improper Governmental Interference
Nearly two hundred years ago, Adam Smith, the Englishman, who understood these principles very well, published his great book, THE WEALTH OF NATIONS, which contains this statement:
“The natural effort of every individual to better his own condition, when suffered to exert itself with freedom and security, is so powerful a principle, that it is alone, and without any assistance, not only capable of carrying on the society to wealth and prosperity, but of surmounting a hundred impertinent obstructions with which the folly of human laws too often encumbers its operations; though the effect of these obstructions is always more or less either to encroach upon its freedom, or to diminish its security.” (Vol. 2, Book 4, Chapt. 5, p. 126)
But What About The Needy?
On the surface this may sound heartless and insensitive to the needs of those less fortunate individuals who are found in any society, no matter how affluent. “What about the lame, the sick and the destitute? Is an often-voice question. Most other countries in the world have attempted to use the power of government to meet this need. Yet, in every case, the improvement has been marginal at best and has resulted in the long run creating more misery, more poverty, and certainly less freedom than when government first stepped in. As Henry Grady Weaver wrote, in his excellent book, THE MAINSPRING OF HUMAN PROGRESS:
“Most of the major ills of the world have been caused by well-meaning people who ignored the principle of individual freedom, except as applied to themselves, and who were obsessed with fanatical zeal to improve the lot of mankind-in-the-mass through some pet formula of their own….THE HARM DONE BE ORDINARY CRIMINALS, MURDERERS, GANGSTERS, AND THIEVES IS NEGLIGIBLE IN COMPARISON WITH THE AGONY INFLICTED UPON HUMAN BEINGS BY THE PROFESSIONAL ‘DO-GOODERS’, who attempt to set themselves up as gods on earth and who would ruthlessly force their views on all others – with the abiding assurance that the end justifies the means.” (p. 40-1; P.P.N.S., p. 313)
The Better Way
By comparison, America traditionally has followed Jefferson’s advice of relying on individual action and charity. The result is that the United States has fewer cases of genuine hardship per capita than any other country in the entire world or throughout all history. Even during the depression of the 1930′s, Americans ate and lived better than most people in other countries do today.
What Is Wrong With A “Little” Socialism?
In reply to the argument that a little bit of socialism is good so long as it doesn’t go too far, it is tempting to say that, in like fashion, just a little bit of theft or a little bit of cancer is all right, too! History proves that the growth of the welfare state is difficult to check before it comes to its full flower of dictatorship. But let us hope that this time around, the trend can be reversed. If not then we will see the inevitability of complete socialism, probably within our lifetime.
Three Reasons American Need Not Fall For Socialist Deceptions
Three factors may make a difference. First, there is sufficient historical knowledge of the failures of socialism and of the past mistakes of previous civilizations. Secondly, there are modern means of rapid communications to transmit these lessons of history to a large literate population. And thirdly, there is a growing number of dedicated men and women who, at great personal sacrifice, are actively working to promote a wider appreciation of these concepts. The timely joining together of these three factors may make it entirely possible for us to reverse the trend.
How Can Present Socialistic Trends Be Reversed?
This brings up the next question: How is it possible to cut out the various welfare-state features of our government which have already fastened themselves like cancer cells onto the body politic? Isn’t drastic surgery already necessary, and can it be performed without endangering the patient? In answer, it is obvious that drastic measures ARE called for. No half-way or compromise actions will suffice. Like all surgery, it will not be without discomfort and perhaps even some scar tissue for a long time to come. But it must be done if the patient is to be saved, and it can be done without undue risk.
Obviously, not all welfare-state programs currently in force can be dropped simultaneously without causing tremendous economic and social upheaval. To try to do so would be like finding oneself at the controls of a hijacked airplane and attempting to return it by simply cutting off the engines in flight. It must be flown back, lowered in altitude, gradually reduced in speed and brought in for a smooth landing. Translated into practical terms, this means that the first step toward restoring the limited concept of government should be to freeze all welfare-state programs at their present level, making sure that no new ones are added. The next step would be to allow all present programs to run out their term with absolutely no renewal. The third step would involve the gradual phasing-out of those programs which are indefinite in their term. In my opinion, the bulk of the transition could be accomplished within a ten-year period and virtually completed within twenty years. Congress would serve as the initiator of this phase-out program, and the President would act as the executive in accordance with traditional constitutional procedures.
Summary Thus Far
As I summarize what I have attempted to cover, try to visualize the structural relationship between the six vital concepts that have made America the envy of the world. I have reference to the foundation of the Divine Origin of Rights; Limited Government; the pillars of economic Freedom and Personal Freedom, which result in Abundance; followed by Security and the Pursuit of Happiness.
America was built upon a firm foundation and created over many years from the bottom up. Other nations, impatient to acquire equal abundance, security and pursuit of happiness, rush headlong into that final phase of construction without building adequate foundations or supporting pillars. Their efforts are futile. And, even in our country, there are those who think that, because we now have the good things in life, we can afford to dispense with the foundations which have made them possible. They want to remove any recognition of God from governmental institutions, They want to expand the scope and reach of government which will undermine and erode our economic and personal freedoms. The abundance which is ours, the carefree existence which we have come to accept as a matter of course, CAN BE TOPPLED BY THESE FOOLISH EXPERIMENTERS AND POWER SEEKERS. By the grace of God, and with His help, we shall fence them off from the foundations of our liberty, and then begin our task of repair and construction.
As a conclusion to this discussion, I present a declaration of principles which have recently been prepared by a few American patriots, and to which I wholeheartedly subscribe.
Fifteen Principles Which Make For Good And Proper Government
As an Independent American for constitutional government I declare that:
- I believe that no people can maintain freedom unless their political institutions are founded upon faith in God and belief in the existence of moral law.
- I believe that God has endowed men with certain unalienable rights as set forth in the Declaration of Independence and that no legislature and no majority, however great, may morally limit or destroy these; that the sole function of government is to protect life, liberty, and property and anything more than this is usurpation and oppression.
- I believe that the Constitution of the United States was prepared and adopted by men acting under inspiration from Almighty God; that it is a solemn compact between the peoples of the States of this nation which all officers of government are under duty to obey; that the eternal moral laws expressed therein must be adhered to or individual liberty will perish.
- I believe it a violation of the Constitution for government to deprive the individual of either life, liberty, or property except for these purposes:(a) Punish crime and provide for the administration of justice;(b) Protect the right and control of private property;
(c) Wage defensive war and provide for the nation’s defense;(d) Compel each one who enjoys the protection of government to bear his fair share of the burden of performing the above functions.
- I hold that the Constitution denies government the power to take from the individual either his life, liberty, or property except in accordance with moral law; that the same moral law which governs the actions of men when acting alone is also applicable when they act in concert with others; that no citizen or group of citizens has any right to direct their agent, the government to perform any act which would be evil or offensive to the conscience if that citizen were performing the act himself outside the framework of government.
- I am hereby resolved that under no circumstances shall the freedoms guaranteed by the Bill of Rights be infringed. In particular I am opposed to any attempt on the part of the Federal Government to deny the people their right to bear arms, to worship and pray when and where they choose, or to own and control private property.
- I consider ourselves at war with international Communism which is committed to the destruction of our government, our right of property, and our freedom; that it is treason as defined by the Constitution to give aid and comfort to this implacable enemy.
- I am unalterable opposed to Socialism, either in whole or in part, and regard it as an unconstitutional usurpation of power and a denial of the right of private property for government to own or operate the means of producing and distributing goods and services in competition with private enterprise, or to regiment owners in the legitimate use of private property.
- I maintain that every person who enjoys the protection of his life, liberty, and property should bear his fair share of the cost of government in providing that protection; that the elementary principles of justice set forth in the Constitution demand that all taxes imposed be uniform and that each person’s property or income be taxed at the same rate.
- I believe in honest money, the gold and silver coinage of the Constitution, and a circulation medium convertible into such money without loss. I regard it as a flagrant violation of the explicit provisions of the Constitution for the Federal Government to make it a criminal offense to use gold or silver coin as legal tender or to use irredeemable paper money.
- I believe that each State is sovereign in performing those functions reserved to it by the Constitution and it is destructive of our federal system and the right of self-government guaranteed under the Constitution for the Federal Government to regulate or control the States in performing their functions or to engage in performing such functions itself.
- I consider it a violation of the Constitution for the Federal Government to levy taxes for the support of state or local government; that no State or local government can accept funds from the Federal and remain independent in performing its functions, nor can the citizens exercise their rights of self-government under such conditions.
- I deem it a violation of the right of private property guaranteed under the Constitution for the Federal Government to forcibly deprive the citizens of this nation of their nation of their property through taxation or otherwise, and make a gift thereof to foreign governments or their citizens.
- I believe that no treaty or agreement with other countries should deprive our citizens of rights guaranteed them by the Constitution.
- I consider it a direct violation of the obligation imposed upon it by the Constitution for the Federal Government to dismantle or weaken our military establishment below that point required for the protection of the States against invasion, or to surrender or commit our men, arms, or money to the control of foreign ore world organizations of governments. These things I believe to be the proper role of government.
We have strayed far afield. We must return to basic concepts and principles – to eternal verities. There is no other way. The storm signals are up. They are clear and ominous.
As Americans – citizens of the greatest nation under Heaven – we face difficult days. Never since the days of the Civil War – 100 years ago – has this choice nation faced such a crisis.
In closing I wish to refer you to the words of the patriot Thomas Paine, whose writings helped so much to stir into a flaming spirit the smoldering embers of patriotism during the days of the American Revolution:
“These are the times that try men’s souls. The summer soldier and the sunshine patriot will in this crisis, shrink from the service of his country; but he that stands it NOW, deserves the love and thanks of man and woman. Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly; ‘tis dearness only that gives everything its value. Heaven knows how to put a proper price upon its goods; and it would be strange indeed, if so celestial an article as FREEDOM should not be highly rated.” (THE POLITICAL WORKS OF THOMAS PAINE, p.55.)
I intend to keep fighting. My personal attitude is one of resolution – not resignation.
I have faith in the American people. I pray that we will never do anything that will jeopardize in any manner our priceless heritage. If we live and work so as to enjoy the approbation of a Divine Providence, we cannot fail. Without that help we cannot long endure.
All Right-Thinking Americans Should Now Take Their Stand
So I urge all Americans to put their courage to the test. Be firm in our conviction that our cause is just. Reaffirm our faith in all things for which true Americans have always stood.
I urge all Americans to arouse themselves and stay aroused. We must not make any further concessions to communism at home or abroad. We do not need to. We should oppose communism from our position of strength for we are not weak.
There is much work to be done. The time is short. Let us begin – in earnest – now and may God bless our efforts, I humbly pray.
(Source: by The Honorable Ezra Taft Benson, Former Secretary of Agriculture. The Eisenhower Administration – ed. Published in 1968)
by Horatio Bunce
Just remember this the next time someone touts themselves as a “Reagan Republican” or uses him in an Appeal to Authority*. Then ask them when is the Republican super-duper majority in Tennessee going to address the largest sanctuary business in Tennessee: the public school system.
Open Borders/Amnesty Ronnie vs. CIA director/NAFTA George
*Appeal to Authority refers to the logical fallacy in which a claimed authority’s support is used as evidence for an argument’s conclusion.
State mandated minimum salaries and additional pay supplements for local elected officials vs what taxpayers are making
When you look at important economic indicators such as median household income and average annual income, Blount County taxpayers haven’t fared well in recent years. When adjusted for inflation, 2014 numbers show that average pay in Blount County actually dropped and that household income averages a double digit drop.
The State of Tennessee mandates very generous salaries for elected officials that are 2, 3 and 4 times what the average Tennessee taxpayer is making. I (Tona Monroe) have written the state legislature for a couple of years on this matter but this matter has largely fallen on deaf ears when it comes to taking action. A few lawmakers have agreed with me that the mandated minimums are too high but none have taken action to provide reform.
You can view the state mandated minimum salaries for local elected officials here.
2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 2013-2014
2012-2013 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007
This figures show huge increases to the base pay for local elected officials being mandated by state law. Despite being paid double and triple, and in the case of judges almost quadruple what the average taxpayer is making, 4 of these local elected officials are receiving pay supplements above the already large state mandated minimums. Blount County taxpayers are paying $96,717 more than state minimum for the circuit court clerk, highway superintendent, sheriff and mayor. It’s obvious these people don’t feel the same economic pain that many Blount Countians are feeling.
2 important primary elections will be held this year. The local government primary election will be May 1, 2018 and the state and federal primary election will be held August 2, 2018. All office holders elected in partisan elections are Republicans in Blount County. There isn’t a single Democrat or independent in office in Blount County, excluding the school board which has nonpartisan elections. Thus, it is highly likely that all upcoming offices, excluding the school board, will be decided in the primary elections. If you wait to vote in November, you will miss your best opportunities to have an impact on who governs at the local and state levels. There will be no county elections in November and only state and federal general elections occur in November.
The May 1 and August 2 primary elections provide opportunities for you to clean house of these state and local officials who refuse to hold the line on these outrageous salaries. Only Commissioners Mike Akard, Jamie Daly, Karen Miller and myself have voted to cut the pay of these 4 elected officials down to the state minimum, which is already much higher than it should be.
Questions to ask before heading to the polls on May 1 and August 2:
1) Why have local elected officials refused to cut the pay of these officials to the state mandated minimums?
2) Why have the state legislators continued funding huge increases for elected officials?
3) Why did Jerome Moon try to lead the commission to believe that these pay supplements weren’t optional?
Please consider these questions before casting your votes in the May 1 and August 2 elections.
What does this measure?
Median household income, adjusted for inflation. Half of households earn below the median, and half are above.
Why is this important?
Median household income is a gauge of overall economic health of the region and the financial resources of households.
How is our region performing?
In 2010-14, median household income in the region was $45,100, slightly higher than the state ($44,600) but lower than the nation ($53,500). Among local counties, median household income was highest in Loudon ($50,600) and Knox ($47,500) and lowest in Union ($36,000) and Monroe ($37,200). The region, state, and nation all saw their median income fall by double digits from 2000 to 2010-14 (down 12% in the region, 14% in the state, and 10% in the nation). Median income fell much faster in the region from 2005-09 to 2010-14 than in the nation and state (16% decrease in the region compared to a 6% decrease for the state and the nation). Among the counties, median household incomes decreased most from 2000 to 2010-14 in Sevier, Monroe and Blount (all 14%). Union experienced the smallest rate of decline (7%), but still has the lowest median household income in the region.
Notes about the data
Figures are presented in 2014 dollars. The multiyear figures are from the Census Bureau’s American Community Survey. The bureau combined five years of responses to the survey to provide estimates for smaller geographic areas and increase the precision of its estimates. The survey provides data on characteristics of the population that used to be collected only during the decennial census.
What does this measure?
The average annual salary in a region in a given year, adjusted for inflation.
Why is this important?
Salaries are a gauge of overall economic health and a measure of the degree to which employees are sharing in the prosperity of a community. They also indicate the vitality of a region and its ability to compete and attract workers.
How is our region performing?
In 2014, the region’s average salary was $43,000, below the average for the state ($45,200) and the nation ($51,400). Since 2000, the region’s average salary increased by 6%, on par with growth nationally and but below statewide (7%). Roane County’s average annual pay grew by 26% over the same time period, more than any other county, while average salary fell in Blount and Sevier counties over that period (both less than 1% respectively). Between 2013 and 2014, the region’s average annual salary increased by 1%, on par with the state increase.
Notes about the data
Data presented in 2014 dollars.
Harry Grothjahn of Truth Radio AM 1470 invited me to speak on his Sunday morning radio show to discuss important issues that you need to know about before voting in the upcoming May 1, 2018 local government primary election. The interview was recorded so that you can listen to it and the slide show presentation is attached for your information and review.
This is by no means an exhaustive list of important local issues. This is a good starting point in becoming informed for the upcoming May 1st primary election.
Let freedom ring!
Blount County Commissioner
by Ron Paul MD Monday January 1, 2018
Happy New Year! We always approach a new year with anticipation, hope, and also some worries. Last year was one of the strangest political years I have seen in some time. A new Republican president spent his first year pursuing more or less the same foreign policy as his Democratic predecessor and the Democratic Party spent the year looking under every rock in the US for a “Russian connection” or any other reason to see him impeached over it.
The neocon-dominated foreign policy establishment on both the Left and Right were so furious that candidate Trump dared suggest we could get along with our “enemies” overseas that they jumped on the impeachment bandwagon — even though once he became president Donald Trump filled his Administration with neocons and began dropping bombs.
Like “peace candidate” Obama, Donald Trump quickly dropped his “get along with others” rhetoric to become just another aggressive, interventionist US president. He slammed missiles into Syria over unproven claims of a chemical attack, he built US military bases on Syrian soil, he dropped the “mother of all bombs” on Afghanistan, he continued helping Saudi Arabia destroy Yemen, he expanded the US military occupation of Africa, he put NATO troops on the border of Russia, did his best to tear up the Iran nuclear agreement and in fact may have just launched a “color revolution” on Iran, and continued rattling sabers over China’s presence in the South China Sea.
That tells us quite a bit about what’s wrong with American political life these days. The “opposition party” doesn’t really oppose the other party’s policies. They are just angry that other the party is in power. With no real philosophical or policy differences, politics is essentially pointless. It is a game of spoils for the well-connected and little more than a sporting event for the rest of the country. Everyone wants to see his team come out on top.
Still, I have much hope for 2018. I know we are continuing to make steady progress waking up the American people to the idea that ideas do matter! Our interventionist foreign policy, responsible for so much misery around the world, is not inevitable. Our destructive economic and monetary policies, which enrich the well-connected while impoverishing the rest of us, are not inevitable. The further destruction of our right to privacy, to live our lives as we see fit, to pursue our own happiness without the government looking over our shoulder, is not inevitable. We can turn this around!
In 2018 I strongly believe more Americans will wake up to the seriousness of the total debt the US is facing and will begin blaming Washington for pumping up the warfare-welfare state. I believe more Americans will understand the role of the Federal Reserve in facilitating this ocean of debt. We will continue to make progress toward ending the Fed!
While the media loves to tell us all about how the millennials are attracted to discredited ideas like Bernie Sanders’ socialism and the dead-end of cultural Marxism, I believe 2018 will demonstrate that young people are actually attracted to the ideas of liberty more than ever. Liberty is a new idea and a winning idea, while the twin tyrannies of socialism and cultural Marxism should remain in same dustbin of history they were tossed into more than 25 years ago.
In 2018 my Institute for Peace and Prosperity will be reaching more people than ever with plenty of new projects, events, and of course our daily Liberty Report! Yes, we will turn this around. Liberty will prevail!
by Horatio Bunce
“On December 1 Senator Corker made this statement:
“But at the end of the day, I am not able to cast aside my fiscal concerns and vote for legislation that I believe, based on the information I currently have, could deepen the debt burden on future generations.”
Today Corker Tweets:
See my statement on my support for tax reform legislation: pic.twitter.com/DoeoHLrXWn
— Senator Bob Corker (@SenBobCorker) December 15, 2017
Senator Corker denies allegations of the “Corker Kickback”.
Corker initially told IBT that the new provision “sounds totally unnecessary and borderline ridiculous” but later admitted he doesn’t “really know what the provision does to be honest. I would need an accountant to explain it.” Last year, Corker made up to $7 million from real estate pass through companies he owns.
His story, however, hit a snag when Sen. John Cornyn (R-TX), the Senate Majority Whip, told ABC News that the provision that benefits real estate investors was added as part of an effort to “cobble together the votes we needed to get this bill passed.”
When asked if the provision was added specifically to secure Corker’s vote, Cornyn dodged the question.
Corker Kickback Tweets
I can understand @SenBobCorker flipping his vote if new tax bill addressed why he voted NO, which was the deficit exploding. But the new tax bill doesn’t address his deficit concern. That’s why the #CorkerKickBack provision is so troubling. Looks like straight up self-enrichment. https://t.co/F2STLoncWw
— Ted Lieu (@tedlieu) December 18, 2017
This is a truly rare moment in American politics — the senator at the center of the #CorkerKickback scandal is facing a national firestorm & is now publicly demanding answers from his own party — and he’s doing it hours before he could sink the entire tax bill. THIS IS BIG NEWS https://t.co/zB4ow11BOV
— David Sirota (@davidsirota) December 18, 2017
Tennessee is one of the states that suffers from some of the worst poverty in our country
Yet the #CorkerKickback will put money into the pockets of their Senator.
This is a message to anyone living in Tennessee
— Red T Raccoon (@RedTRaccoon) December 18, 2017
— Matthew Chapman (@fawfulfan) December 18, 2017″
by Horatio Bunce
As the Bitcoin crypto-currency bubble expands from $12000 to $13000 in one day, the cryptocurrency market cap now exceeds that of Citigroup (over $220 Billion). For electrons…..that are “mined”….by solving math problems with computers. Sounds legit.
JP Morgan CEO Jamie Dimon (the pot) previously called the cryptocurrency kettle “black”:
“You can’t have a business where people can invent currencies out of thin air and think that people who are buying it are really smart. It’s worse than Tulip Bulbs; it won’t end well. It’ll eventually blow up; it’s a fraud.”
Ironically, he wasn’t talking about the federal reserve notes electronically created out of thin air they trade every day. So of course, JP Morgan will now engage in trading futures on the cryptocurrency they declared “a fraud”.
Gee, who could see that coming…electronic theft of fake electron “money”….and how does Bitcoin, on this good news today of its immediate disappearability (new word) increase in “value” 8% IN ONE DAY?
Written by former Congressman Ron Paul, MD
Monday November 6, 2017
Last Thursday, congressional Republicans unveiled their tax reform legislation. On the same day, President Trump nominated current Federal Reserve Board Governor Jerome Powell to succeed Janet Yellen as Federal Reserve chair. While the tax plan dominated the headlines, the Powell appointment will have much greater long-term impact. Federal Reserve policies affect every aspect of the economy, including whether the Republican tax plan will produce long-term economic growth.
President Obama made history by appointing the first female Fed chair. President Trump is also making history: If confirmed, Powell would be the first former investment banker to serve as chairman of the Federal Reserve. Powell’s background suggests he will continue Janet Yellen’s Wall Street-friendly low interest rates and easy money policies.
Powell is an outspoken opponent of the Audit the Fed legislation. In 2015, Powell delivered an address at Catholic University devoted to attacking Audit the Fed. Like most Fed apologists, Powell claims the audit would compromise the Fed’s independence and allow Congress to control monetary policy. However, like all who make this claim, Powell cannot point to anything in the text of the audit bill giving Congress any power over the Federal Reserve. Powell’s concerns about protecting the Fed’s independence are misplaced, as the Fed has never been free of political influence. The Fed has a long history of bowing to presidential pressure to tailor monetary policy to help advance the president’s political and policy agenda.
The Republican tax cut plan has some positive elements, such as increasing the standard deduction, creating a new family tax credit, eliminating the death tax, reducing the corporate tax rate, and lowering taxes on small businesses. It also has some flaws, such as the “millionaire surcharge” imposed on upper-income taxpayers. This provision reflects a belief that upper-income taxpayers only “deserve” a tax break if reducing their taxes serves the interest of government by increasing economic growth.
The worst part of the tax plan is that it adopts the chained consumer price index (chained CPI). Chained CPI is a way of measuring CPI that understates inflation’s effects on our standard of living. It does this by assuming inflation has not reduced Americans’ standard of living if, for example, people can buy hamburgers when they can no longer afford steak. This so-called full substitution ignores the fact that if individuals viewed hamburgers as a full substitute for steak they would have bought hamburgers before Fed-created inflation made steak unaffordable.
Chained CPI increases the inflation tax. The inflation tax may be the worst of all taxes because it is hidden and regressive. The inflation tax is not even a tax on real wages. Instead it is a tax on the illusionary gains in income caused by inflation. The use of chained CPI to adjust tax brackets pushes individuals into higher tax brackets over time.
Politicians love the inflation tax because it allows them to increase taxes without having to vote for higher rates. Instead, the Fed does the dirty work. Since their creation in 1913, the Federal Reserve and the income tax have both enabled the growth of the welfare-warfare state and the erosion of our freedom and economic well-being. The key to restoring our liberty and prosperity, as well as avoiding a major economic crisis, is reversing the great mistakes of 1913 by repealing the 16th Amendment and auditing and ending the Federal Reserve.
By Ron Paul
Texans affected by Hurricane Harvey, including my family and me, appreciate the outpouring of support from across the country. President Donald Trump has even pledged to donate one million dollars to relief efforts. These private donations will be much more valuable than the as much as 100 billion dollars the federal government is expected to spend on relief and recovery. Federal disaster assistance hinders effective recovery efforts, while federal insurance subsidies increase the damage caused by natural disasters.
Federal disaster aid has existed since the early years of the republic. In fact, it was a payment to disaster victims that inspired Davy Crockett’s “Not Yours to Give” speech. However, the early federal role was largely limited to sending checks. The federal government did not become involved in managing disaster relief and recovery until the 20th century. America did not even have a federal agency dedicated solely to disaster relief until 1979, when President Jimmy Carter created the Federal Emergency Management Agency (FEMA) by executive order. Yet, Americans somehow managed to rebuild after natural disasters before 1979. For example, the people of Galveston, Texas successfully rebuilt the city following a major hurricane that destroyed the city in 1900.
FEMA’s well-documented inefficiencies are the inevitable result of centralizing control over something as complex as disaster recovery in a federal bureaucracy. When I served in Congress, I regularly voted against federal disaster aid for my district. After the votes, I would hear from angry constituents, many of whom would later tell me that after dealing with FEMA they agreed that Texas would be better off without federal “help.”
Following natural disasters, individuals who attempt to return to their own property — much less try to repair the damage — without government permission can be arrested and thrown in jail. Federal, state, and local officials often hinder or even stop voluntary rescue and relief efforts.
FEMA is not the only counterproductive disaster assistance program. The National Flood Insurance Program was created to provide government-backed insurance for properties that could not obtain private insurance on their own. By overruling the market’s verdict that these properties should not be insured, federal flood insurance encourages construction in flood-prone areas, thus increasing the damage caused by flooding.
Just as payroll taxes are unable to fully fund Social Security and Medicare, flood insurance premiums are unable to fund the costs of flood insurance. Federal flood insurance was almost $25 billion in the red before Hurricane Harvey. Congress will no doubt appropriate funding to pay all flood insurance claims, thus increasing the national debt. This in turn will cause the Federal Reserve to print more money to monetize that debt, thus hastening the arrival of the fiscal hurricane that will devastate the US economy. Yet, there is little talk of offsetting any of the costs of hurricane relief with spending cuts!
Congress should start phasing out the federal flood insurance program by forbidding the issuance of new flood insurance policies. It should also begin reducing federal spending on disaster assistance. Instead, costs associated with disaster recovery should be made 100-percent tax-deductible. Those who suffered the worst should be completely exempted from all federal tax liability for at least two years. Tax-free savings accounts could also help individuals save money to help them bear the costs of a natural disaster.
The outpouring of private giving and volunteer relief efforts we have witnessed over the past week shows that the American people can effectively respond to natural disasters if the government would get out of their way.