Dumb Voter No More . com
What We Need To Do
Dumb Voter No More . com
What Really Goes On In Washington
Philosophy of Liberty
Where We Went Wrong
What We Need To Do
Limiting Politicians
Democracy vs Freedom
Man's Rights
The Moral Foundation of a Free Society
FOUNDATION of a FREE SOCIETY
Good Govt Protects Individual Rights
Property and Government
Freedom, Individual Rights, Capitalism
Bankruptcy of a Mixed Economy
FREEDOM and GOVERNMENT
Land of Liberty - Society and Government
Rewards of Economic Freedom
Separation of Economics and State
Flat Tax vs Sales Tax
Library of Liberty
Common Sense Laws
What's Wrong With Conservatives
FREE MARKETS and LIBERTY
The Law and Plunder
Politicians, Plunder, Wasteful Spending
Constitution and Progressives
Learning From Walter Williams
POLITICAL PHILOSOPHY -ayn rand
Capitalism Center
Principles of a Free Society vs The Road to Socialism
Government, Capitalism, Welfare
Income Inequality - World Poverty
Free People Are Not Equal and Equal People Are Not Free
Collectivism-Statism-Socialism-Communism
FREE TRADE
Bloody Politics - Why Socialism Failed
Vision of a Free Society
Proper Government
Foreign Policy
Government Spending - Global Capitalism
Collectivism vs Individualism
Taxes Can Destroy
Capitalism and Selfishness
Man-Government-Liberty-Tyranny
The Basic Issue--Mixed Economy--Seven Principles
Individual Rights
Life , Liberty , Property
Politicians and the Economy
Rights and Limited Government
Good Sites to Visit
Vices and Crimes - A Better Philosophy
Immigration
Constitutional Primer #7 - Property Rights
Right to Own Guns
Majority Limited and Pursuit of Happiness
POLITICS and FREEDOM
The American Revolution - Classical Liberalism
Politics and Plunder - Welfare and Charity
What Is Money - Seperating Money and State
Separating School and State
POLITICS - PART 2
Taxes and Property
The Anatomy of the State
American Government Idea's
Good Quotes
ABORTION , Questions and Answers
Learn Economics Here
Three Youngsters Drown
INCOME for LIFE
OUR LORD'S PROPHECY PREDICTED AND FULFILLED
JESUS CAME BACK
FUTURISM, FIGURATIVE PRETERISM and LITERAL PRETERISM by W. Hibbard
WERE THE APOSTLES FALSE PROPHETS? by M. Fenemore
Lee's Bio
GUESTBOOK & LINKS

When government steps beyond its proper function of protecting persons and property, there will be an incentive for special-interest groups to seek privileged positions and the use of government to capture benefits at the expense of taxpayers and consumers...James Dorn
 

"When government does more than guard against the initiation of force, inevitably it becomes a means of theft and bamboozlement." -- Donald J. Boudreaux

Whenever the government has the power to give special privileges, benefits, and money, there will be companies and individuals lobbying for handouts.  

When politcians do more than ( protect ) life, liberty, and property - they ( encroach ) upon life, liberfty, and property.

en·croach  (n-krch)

intr.v. en·croached, en·croach·ing, en·croach·es
1. To take another's possessions or rights gradually or stealthily:
2. To advance beyond proper or former limits:  
to advance beyond proper, established, or usual limits; make gradual inroads: A dictatorship of the majority is encroaching on the rights of the individual.
to trespass upon the property, domain, or rights of another, esp. stealthily or by gradual advances.
 

The Purpose of the Federal Government -- to protect our  life , liberty , property ( military ) and to settle disputes between the states ( courts ).

The Purpose of the State and Local Governments -- to protect our  life , liberty , property ( police ) and to settle disputes ( courts ).

The Purpose of Laws -- to protect our  life , liberty , property ( from acts of -- encroachments , fraud , broken agreements ).

The Purpose of the Constitution -- to protect our  life , liberty , property ( from politicians ).

The Purpose of Taxes -- to support the proper function of government ( military, police, courts )

The Free Market -- peaceful , honest , voluntary ( trade ) free from political interference.

What we need to do ...

1)  We need to ( amend ) the Constitution to read -- (1) government shall not provide ( money , loans , welfare , special privileges ) to anyone ; domestic or foreign -- (2) government shall not regulate, control, interfere, with peaceful, honest, voluntary activity; economic or social.

2)  We need to restore True Limited Government.

3)  We need to restore True Capitalism.

The Benefits -- very low taxes, increased standard of living, more economic and social liberty.

Two-thirds of the federal budget consists in taking property from one person and giving it to another....Walter Williams

A government which robs Peter to pay Paul, can always count on the support of Paul....George Bernard Shaw

Two thousand years ago, the Roman statesman Cicero observed that democracies usually choose a leader "who curries favor with the people by promising them other people's property".

Man's Nature

Man's mind is his basic tool of survival. Life is given to him, survival is not. His body is given to him, its sustenance is not. His mind is given to him, its content is not. To remain alive, he must act, and before he can act he must know the nature and purpose of his action. He cannot obtain his food without a knowledge of food and of the way to obtain it. . . . To remain alive, he must think.
["This Is John Galt Speaking," Atlas Shrugged]

The action required to sustain human life is primarily intellectual: everything man needs has to be discovered by his mind and produced by his effort.
["What Is Capitalism?" Capitalism: The Unknown Ideal]

Since values are to be discovered by man’s mind, men must be free to discover them—to think, to study, to translate their knowledge into physical form, to offer their products for trade, to judge them, and to choose, be it material goods or ideas, a loaf of bread or a philosophical treatise.
["What Is Capitalism?" Capitalism: The Unknown Ideal]

Since knowledge, thinking, and rational action are properties of the individual, since the choice to exercise his rational faculty or not depends on the individual, man’s survival requires that those who think be free of the interference of those who don’t.
["What Is Capitalism?" Capitalism: The Unknown Ideal]

Freedom is the fundamental requirement of man’s mind.
["What Is Capitalism?" Capitalism: The Unknown Ideal]

Man's Rights

. . . the source of rights is man's nature.
["Man's Rights," The Virtue of Selfishness]

. . .—the source of man's rights is not divine law or congressional law, but the law of identity. A is A—and Man is Man. Rights are conditions of existence required by man's nature for his proper survival. If man is to live on earth, it is right for him to use his mind, it is right to act on his own free judgment, it is right to work for his values and to keep the product of his work. If life on earth is his purpose, he has a right to live as a rational being: nature forbids him the irrational.
["This Is John Galt Speaking," Atlas Shrugged]

A "right" is a moral principle defining and sanctioning a man's freedom of action in a social context. There is only one fundamental right (all the others are its consequences or corollaries): a man's right to his own life. Life is a process of self-sustaining and self-generated action; the right to life means the right to engage in self-sustaining and self-generated action—which means: the freedom to take all the actions required by the nature of a rational being for the support, the furtherance, the fulfillment and the enjoyment of his own life. (Such is the meaning of the right to life, liberty and the pursuit of happiness.)

The concept of a "right" pertains only to action—specifically, to freedom of action. It means freedom from physical compulsion, coercion or interference by other men.

Thus, for every individual, a right is the moral sanction of a positive—of his freedom to act on his own judgment, for his own goals, by his own voluntary, uncoerced choice. As to his neighbors, his rights impose no obligations on them except of a negative kind: to abstain from violating his rights.
["Man’s Rights," The Virtue of Selfishness]

Property Rights

The right to life is the source of all rights—and the right to property is their only implementation. Without property rights, no other rights are possible. Since man has to sustain his life by his own effort, the man who has no right to the product of his effort has no means to sustain his life. The man who produces while others dispose of his product, is a slave.

Bear in mind that the right to property is a right to action, like all the others: it is not the right to an object, but to the action and the consequences of producing or earning that object. It is not a guarantee that a man will earn any property, but only a guarantee that he will own it if he earns it. It is the right to gain, to keep, to use and to dispose of material values.
["Man's Rights," The Virtue of Selfishness]

It is only on the basis of property rights that the sphere and application of individual rights can be defined in any given social situation. Without property rights, there is no way to solve or to avoid a hopeless chaos of clashing views, interests, demands, desires, and whims.
["The Cashing-In: The Student 'Rebellion,'" Capitalism: The Unknown Ideal]

The source of property rights is the law of causality. All property and all forms of wealth are produced by man's mind and labor. As you cannot have effects without causes, so you cannot have wealth without its source: without intelligence. You cannot force intelligence to work: those who're able to think, will not work under compulsion; those who will, won't produce much more than the price of the whip needed to keep them enslaved.
["This Is John Galt Speaking," Atlas Shrugged]

Violation of Rights

Man's rights can be violated only by the use of physical force. It is only by means of physical force that one man can deprive another of his life, or enslave him, or rob him, or prevent him from pursuing his own goals, or compel him to act against his own rational judgment.
["The Nature of Government," The Virtue of Selfishness]

A unilateral breach of contract involves an indirect use of physical force: it consists, in essence, of one man receiving the material values, goods or services of another, then refusing to pay for them and thus keeping them by force (by mere physical possession), not by right—i.e., keeping them without the consent of their owner. Fraud involves a similarly indirect use of force: it consists of obtaining material values without their owner's consent, under false pretenses or false promises. Extortion is another variant of an indirect use of force: it consists of obtaining material values, not in exchange for values, but by the threat of force, violence or injury.
["The Nature of Government," The Virtue of Selfishness]

There are two potential violators of man’s rights: the criminals and the government. The great achievement of the United States was to draw a distinction between these two—by forbidding to the second the legalized version of the activities of the first.
["Man's Rights," The Virtue of Selfishness]

Criminals are a small minority in any age or country. And the harm they have done to mankind is infinitesimal when compared to the horrors—the bloodshed, the wars, the persecutions, the confiscations, the famines, the enslavements, the wholesale destructions—perpetrated by mankind's governments. Potentially, a government is the most dangerous threat to man's rights: it holds a legal monopoly on the use of physical force against legally disarmed victims. When unlimited and unrestricted by individual rights, a government is men's deadliest enemy.
["Man's Rights," The Virtue of Selfishness]

The government [of the United States] was set to protect man from criminals—and the Constitution was written to protect man from the government. The Bill of Rights was not directed against private citizens, but against the government—as an explicit declaration that individual rights supersede any public or social power.
["Man's Rights," The Virtue of Selfishness]

Government

A government is an institution that holds the exclusive power to enforce certain rules of social conduct in a given geographical area.
["The Nature of Government," The Virtue of Selfishness]

. . . the purpose of law and of government is the protection of individual rights.
["The Nature of Government," The Virtue of Selfishness]

The Declaration of Independence laid down the principle that "to secure these rights, governments are instituted among men." This provided the only valid justification of a government and defined its only proper purpose: to protect man's rights by protecting him from physical violence.
["Man's Rights," The Virtue of Selfishness]

The proper functions of a government fall into three broad categories, all of them involving the issues of physical force and the protection of men's rights: the police, to protect men from criminals—the armed services, to protect men from foreign invaders—the law courts, to settle disputes among men according to objective laws.
["The Nature of Government," The Virtue of Selfishness]

The only function of the government, . . . is the task of protecting man's rights, i.e., the task of protecting him from physical force; the government acts as the agent of man's right of self-defense, and may use force only in retaliation and only against those who initiate its use.
["What Is Capitalism?" Capitalism: The Unknown Ideal]

All the reasons which make the initiation of physical force an evil, make the retaliatory use of physical force a moral imperative.
["The Nature of Government," The Virtue of Selfishness]

The retaliatory use of force requires objective rules of evidence to establish that a crime has been committed and to prove who committed it, as well as objective rules to define punishments and enforcement procedures . . . . If a society left the retaliatory use of force in the hands of individual citizens, it would degenerate into mob rule, lynch law and an endless series of bloody private feuds or vendettas.

If physical force is to be barred from social relationships, men need an institution charged with the task of protecting their rights under an objective code of rules.

This is the task of a government—of a proper government—its basic task, its only moral justification and the reason why men do need a government.

A government is the means of placing the retaliatory use of force under objective control—i.e., under objectively defined laws.
["The Nature of Government," The Virtue of Selfishness]

Capitalism

Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned.

The recognition of individual rights entails the banishment of physical force from human relationships: basically, rights can be violated only by means of force. In a capitalist society, no man or group may initiate the use of physical force against others.
["What Is Capitalism?" Capitalism: The Unknown Ideal]

. . . freedom, in a political context, has only one meaning: the absence of physical coercion.
["America's Persecuted Minority: Big Business," Capitalism: The Unknown Ideal]

When I say "capitalism," I mean a full, pure, uncontrolled, unregulated laissez-faire capitalism—with a separation of state and economics, in the same way and for the same reasons as the separation of state and church.
["The Objectivist Ethics," The Virtue of Selfishness]

It is the basic, metaphysical fact of man's nature—the connection between his survival and his use of reason—that capitalism recognizes and protects.

In a capitalist society, all human relationships are voluntary. Men are free to cooperate or not, to deal with one another or not, as their own individual judgments, convictions, and interests dictate. They can deal with one another only in terms of and by means of reason, i.e., by means of discussion, persuasion, and contractual agreement, by voluntary choice to mutual benefit.
["What Is Capitalism?" Capitalism: The Unknown Ideal]

It is, . . . by reference to philosophy that the character of a social system has to be defined and evaluated. Corresponding to the four branches of philosophy, the four keystones of capitalism are: metaphysically, the requirements of man's nature and survival—epistemologically, reason—ethically, individual rights—politically, freedom.
["What Is Capitalism?" Capitalism: The Unknown Ideal]

The moral justification of capitalism lies in the fact that it is the only system consonant with man's rational nature, that it protects man's survival qua man, and that its ruling principle is: justice.
["What Is Capitalism?" Capitalism: The Unknown Ideal]

Capitalism cannot work with slave labor. It was the agrarian, feudal South that maintained slavery. It was the industrial, capitalistic North that wiped it out—as capitalism wiped out slavery and serfdom in the whole civilized world of the nineteenth century.
["Theory and Practice," Capitalism: The Unknown Ideal]

Let those who are actually concerned with peace observe that capitalism gave mankind the longest period of peace in history—a period during which there were no wars involving the entire civilized world—from the end of the Napoleonic wars in 1815 to the outbreak of World War I in 1914.
["The Roots of War," Capitalism: The Unknown Ideal]

Capitalism has created the highest standard of living ever known on earth. The evidence is incontrovertible. The contrast between West and East Berlin is the latest demonstration, like a laboratory experiment for all to see.
["Theory and Practice," Capitalism: The Unknown Ideal]

The essence of capitalism's foreign policy is free tradei.e., the abolition of trade barriers, of protective tariffs, of special privileges—the opening of the world's trade routes to free international exchange and competition among the private citizens of all countries dealing directly with one another.
["The Roots of War," Capitalism: The Unknown Ideal]

Free Market

Intellectual freedom cannot exist without political freedom; political freedom cannot exist without economic freedom; a free mind and a free market are corollaries.
["For the New Intellectual," For the New Intellectual]

In a free market, all prices, wages, and profits are determined—not by the arbitrary whim of the rich or of the poor, not by anyone's "greed" or by anyone's need—but by the law of supply and demand. The mechanism of a free market reflects and sums up all the economic choices and decisions made by all the participants. Men trade their goods or services by mutual consent to mutual advantage, according to their own independent, uncoerced judgment. A man can grow rich only if he is able to offer better values—better products or services, at a lower price—than others are able to offer.

Wealth, in a free market, is achieved by a free, general, "democratic" vote—by the sales and the purchases of every individual who takes part in the economic life of the country. Whenever you buy one product rather than another, you are voting for the success of some manufacturer. And, in this type of voting, every man votes only on those matters which he is qualified to judge: on his own preferences, interests, and needs. No one has the power to decide for others or to substitute his judgment for theirs.
["America's Persecuted Minority: Big Business," Capitalism: The Unknown Ideal]

Any undertaking that involves more than one man, requires the voluntary consent of every participant. Every one of them has the right to make his own decision, but none has the right to force his decision on the others.
["Man's Rights," The Virtue of Selfishness]

The economic value of a man's work is determined, on a free market, by a single principle: by the voluntary consent of those who are willing to trade him their work or products in return. This is the moral meaning of the law of supply and demand; . . . It represents the recognition of the fact that man is not the property nor the servant of the tribe, that a man works in order to support his own life—as, by his nature, he must—that he has to be guided by his own rational self-interest, and if he wants to trade with others, he cannot expect sacrificial victims, i.e., he cannot expect to receive values without trading commensurate values in return. The sole criterion of what is commensurate, in this context, is the free, voluntary, uncoerced judgment of the traders.
["What Is Capitalism?" Capitalism: The Unknown Ideal]

There is no such thing as "a right to a job"—there is only the right of free trade, that is: a man's right to take a job if another man chooses to hire him. There is no "right to a home," only the right of free trade: the right to build a home or to buy it. There are no "rights to a 'fair' wage or a 'fair' price" if no one chooses to pay it, to hire a man or to buy his product.
["Man's Rights," The Virtue of Selfishness]

The United States of America

The most profoundly revolutionary achievement of the United States of America was the subordination of society to moral law.

The principle of man's individual rights represented the extension of morality into the social system—as a limitation on the power of the state, as man's protection against the brute force of the collective, as the subordination of might to right. The United States was the first moral society in history.

All previous systems had regarded man as a sacrificial means to the ends of others, and society as an end in itself. The United States regarded man as an end in himself, and society as a means to the peaceful, orderly, voluntary coexistence of individuals. All previous systems had held that man's life belongs to society, that society can dispose of him in any way it pleases, and that any freedom he enjoys is his only by favor, by the permission of society, which may be revoked at any time. The United States held that man's life is his by right (which means: by moral principle and by his nature), that a right is the property of an individual, that society as such has no rights, and that the only moral purpose of a government is the protection of individual rights.
["Man's Rights," The Virtue of Selfishness]

. . . the United States is the highest achievement of the millennia of Western civilization's struggle toward individualism, . . .
["Requiem for Man," Capitalism: The Unknown Ideal]

. . . the United States of America is the greatest, the noblest and, in its original founding principles, the only moral country in the history of the world.
["Philosophy Who needs It," The Ayn Rand Letter]

 

 

There can be no compromise on basic principles. There can be no compromise on moral issues. There can be no compromise on matters of knowledge, of truth, of rational conviction. 

How can those who wish to pick pockets and those who are to have their pockets picked unite?

Inalienable rights cannot be compromised without being lost.

Who solves conflicts by ordering the thinker and the fool to meet each other halfway.

Six Reasons to Downsize Government ...

1. Additional federal spending transfers resources from the more productive private sector to the less productive public sector of the economy. The bulk of federal spending goes toward subsidies and benefit payments, which generally do not enhance economic productivity. With lower productivity, average American incomes will fall.

2. As federal spending rises, it creates pressure to raise taxes now and in the future. Higher taxes reduce incentives for productive activities such as working, saving, investing, and starting businesses. Higher taxes also increase incentives to engage in unproductive activities such as tax avoidance.

3. Much federal spending is wasteful and many federal programs are mismanaged. Cost overruns, fraud and abuse, and other bureaucratic failures are endemic in many agencies. It’s true that failures also occur in the private sector, but they are weeded out by competition, bankruptcy, and other market forces. We need to similarly weed out government failures.

4. Federal programs often benefit special interest groups while harming the broader interests of the general public. How is that possible in a democracy? The answer is that logrolling or horse-trading in Congress allows programs to be enacted even though they are only favored by minorities of legislators and voters. One solution is to impose a legal or constitutional cap on the overall federal budget to force politicians to make spending trade-offs.

5. Many federal programs cause active damage to society, in addition to the damage caused by the higher taxes needed to fund them. Programs usually distort markets and they sometimes cause social and environmental damage. Some examples are housing subsidies that helped to cause the financial crises, welfare programs that have created dependency, and farm subsidies that have harmed the environment.

6. The expansion of the federal government in recent decades runs counter to the American tradition of federalism. Federal functions should be “few and defined” in James Madison’s words, with most government activities left to the states. The explosion in federal aid to the states since the 1960s has strangled diversity and innovation in state governments because aid has been accompanied by a mass of one-size-fits-all regulations.

For more, see DownsizingGovernment.org.

The Conceptual Preconditions of Freedom

"In Germany, the Nazis first came for the communists, and I didn't speak up because I wasn't a communist. Then they came for the Jews, and I didn't speak up because I wasn't a Jew. Then they came for the trade unionists, and I didn't speak up because I wasn't a trade unionist. Then they came for the Catholics, and I didn't speak up because I was a Protestant. Then they came for me, and by that time there was no one left to speak for me."-- The statement was written by the Rev. Martin Niemoeller, a German Lutheran pastor who was arrested by the Gestapo in 1938. He was sent to the concentration camp at Dachau, where he remained until he was freed by the Allied forces in 1945.

"When they took the 4th amendment away, I was quiet because I didn't deal drugs.  When they took the 6th amendment away, I was quiet because I had never been arrested.  When they took the 2nd amendment away, I was quiet because I didn't own a gun.  Now they've taken away the 1st amendment, and all I can do is be quiet." -- Fred Albury 

"If you don't stand
for something, you
stand for nothing."
 -- Mel Thompson

"Those who stand 
for nothing fall for 
anything."
-- Alexander Hamilton

"A moderate is 
either someone who
has no moral code 
of  his own, or if he 
does, then he's 
someone who 
doesn't have the 
guts to take sides
between
good and evil."
 -- Rick Gaber

"The only things you'll 
find in the middle 
of the road are
yellow streaks
and dead possums."
 -- American folk saying

"People who 
refuse to take a 
stand wind up 
appeasing evil, 
feeding it, even 
voting for it,
and finally, 
dying from it." 
 -- Rick Gaber

"If some among you 
fear taking a stand 
because you are 
afraid of reprisals
from customers, 
clients, or even
government, 
recognize that 
you are just
feeding the 
crocodile hoping 
he'll eat you last."
-- Ronald Reagan

"If, in order to escape 
the responsibility 
of moral judgment,
a man closes his 
eyes and mind, if 
he evades the facts
of the issue and 
struggles not to 
know, he cannot 
be regarded as 
'gray'; morally, 
he is as 'black' 
as they come."
-- Ayn Rand

"There comes a time
to join the side 
you're on."
-- Midge Decter

"When they came for the Branch Davidians, we did not say anything because we were not Branch Davidians." -- Doug Newman

"When the rights of just one individual are denied, the rights of all are in jeopardy!" -- Jo Ann Roach

 

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, MURDERES, 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.  

Scroll down to read the BIG FEDERAL RIPOFF ...

The Federal Ripoff
by George C. Leef, Posted February 12, 2007

The Big Ripoff: How Big Business and Big Government Steal Your Money
by Timothy P. Carney (Wiley, 2006); 285 pages; $24.95.

Frédéric Bastiat called it legal plunder — the process by which people and organizations use their political connections to obtain wealth that doesn’t belong to them. When a government has the power to enact laws and regulations that confer unearned benefits on the favored few, as virtually all do, it is as certain as anything can be in this world that unscrupulous people will find ways to manipulate that power.

The temptation to play the political game as a means to increasing profits has long attracted people in business. The more of them who have given in to the temptation, the harder it has become for those who disdain politics to hold true to their belief in success or failure on merit. Today, nearly every business, either on its own or through a trade association, employs lobbyists who try to steer government policy in a “favorable” direction.

Sometimes, the political game is played defensively — that is, to fend off damaging laws and regulations. Often, however, businesses seek to use governmental power to raise prices, stifle competition, and obtain inputs it needs at artificially low prices. This is usually done very quietly, so as to maintain the illusion that business is interested in protecting the free market. The bitter truth is that most business executives believe in free markets for everyone else; for themselves they want the comfortable life of governmental lapdogs.

In The Big Ripoff, Timothy Carney smashes the illusion that most businesses are staunch defenders of capitalism. Far from it — a great many business leaders in the United States, he shows, are constantly scheming for political favors. They cozy up to both political parties, offering money and lavish treatment to politicians in return for what they want. And what they want is nothing like the rough and tumble world of laissez faire. Carney demonstrates that there is a tremendous amount of corporate welfare in the United States and that it’s a forlorn hope to believe that either the Republicans or the Democrats are interested in a return to the days when businesses would sink or swim on their own.

Carney makes his case with numerous examples. Some are recent, but he also goes back a century or more to show that the partnership of big business and government is not a new phenomenon. Consider the Meat Inspection Act of 1906. If Americans know anything about it at all, they probably have heard that it came about because Upton Sinclair’s exposé of the meat industry in his book The Jungle provoked politicians into passing a law to protect the public health. They presume that the law was opposed by the meat-packing industry, which they naturally believe wanted no government regulation at all.

That presumption simply isn’t true. Carney shows that the largest firms in the business had been trying to get the federal government to enact a scheme of regulation that would help to minimize competition and were delighted to take advantage of the sensation created by Sinclair’s book to get the government to go along. While quality and safety were the catch-phrases that the public heard, the legislation was actually designed to reduce competition so the surviving businesses could charge more.

Just as incumbent politicians think that apparently neutral and high-minded rules should protect them against challengers, big business leaders think that regulations (again, seemingly fair and beneficial) should be in place to shield them against interlopers. The funny thing is that business learned that trick long before the politicians did; political laissez faire lasted until the first “campaign reform” legislation in the mid 1970s. Business persuaded Congress to pass incumbent-protection legislation for it a century ago.


A history of regulation

During World War I, the Wilson administration gave the business world a big dose of federal control — and many “progressives” in business liked it just fine. According to Grosvenor Clarkson, a member of the War Industries Board,

It is little wonder that the men who dealt with the industries of a nation meditated with a sort of intellectual contempt on the huge hit-and-miss confusion of peacetime industry, with its perpetual cycle of surfeit and dearth and its internal attempt at adjustment after the event. From their meditations arose dreams of an ordered economic world. . .. They beheld the whole trade of the world carefully computed and registered in Washington.

Carney acidly comments, “The ‘confusion’ Clarkson spoke about was nothing else than the power that individual consumers, acting according to their own tastes, have over a free economy. The ‘ordered economic world’ business wanted was, frankly, socialism.” (Here, I’ll quibble with the author a bit. The word he should have used was not “socialism,” but “fascism.”) After the war ended and President Harding junked the federal controls on industry in 1921, many big business leaders were unhappy over what they saw as a retrograde step.

Franklin Roosevelt is famous for his attacks on businessmen as “economic royalists,” but many big business leaders were quite content to be thrown into his briar patch of governmental controls because they saw them as beneficial. Beneficial, that is, for their firms in the short run. They did not contemplate the long-run effects of government economic planning. Some, in fact, thought that the New Deal did not go far enough. Gerard Swope, president of General Electric, wrote that he wanted to see a time when

industry would no longer operate in independent units, but as a whole, according to rules laid down by a trade association of which every unit employing over fifty men is a member — the whole supervised by some federal agency like the Federal Trade Commission.

One of Roosevelt’s lasting pro-business, anti-market innovations is the Export-Import Bank. Initially created by executive order as a way to circumvent congressional restrictions on trade with the Soviet Union, the bank was given greater status and authority when Congress passed the Export-Import Bank Act in 1945. The function of Ex-Im is to support American exporters by helping finance the purchase of their goods, primarily through loans to foreign governments. U.S. taxpayers were exposed to $63 billion of risk in 2005 owing to Ex-Im loans and guarantees. Among the large beneficiaries of Ex-Im financing are Boeing, General Electric, Bechtel, and Halliburton. Having American taxpayers standing behind the loans that make some of their sales possible undoubtedly benefits those business giants. In principle, there is no justification for having the federal government in the business-financing business, but Carney’s discussion of Ex-Im would have been more thorough if he had included data on the extent to which it has had to write off bad loans.


Takings and regulation

Another means by which business gains from governmental power is the seizure of land by eminent domain. Carney recounts several stories of small business owners who found themselves facing eviction from their property because it was coveted by some large developer. Politicians, whether “liberal” or “conservative,” frequently go along with big business interests when they decide that they would like property belonging to someone else but don’t want to acquire it through voluntary means. Cheap land is alluring to business, and the prospect of higher tax revenues is alluring to politicians. The fact that eminent domain means the use of force against people — who usually are not fully compensated for their loss — does not trouble either big business moguls or their political henchmen.

And then we have the garden-variety anti-competitive regulation that many businesses seek and that politicians are only too willing to dispense. (That is why, Carney argues, business political giving is roughly evenly split between Republicans and Democrats. Whoever is in power, business executives want leverage for the continuation of old favors and the creation of new ones.) Just to give one ludicrous example, Arizona has a regulation on weed spraying that makes it illegal for unlicensed workers to spray to kill weeds. Getting the license requires proof that one has 3,000 hours of weed-spraying experience. Existing companies that do landscaping and gardening work are thus protected against competition from new firms. This regulatory scheme also gives agents of the Arizona Structural Pest Control Commission something to do — slap stiff fines on people who unknowingly violate the law. Again, it’s a win for existing businesses but a big loss for the free economy. Cases like that are almost innumerable; the statute books of every state are loaded with similar regulations.

Ethanol is yet another instance of big government’s aiding big business at the expense of the consumer, and Carney does a terrific job of unmasking the unholy alliance between ethanol giant Archer Daniels Midland and its many political accomplices — once again, from both parties. Ethanol wouldn’t survive the test of the market (at least in the present); but through the manipulation of politicians, this company has managed to ensure itself a flow of profits at the expense of consumers and motorists.

Finally we come to one of the most fiendishly clever schemes ever devised to stifle the free market — the Tobacco Master Settlement. While it is not clear from the book that the big tobacco companies were particularly dissatisfied with the status quo prior to the involvement of the attorneys general of numerous states and their onslaught of lawsuits to recoup the ostensibly higher Medicaid costs the states bore because of smoking — Big Tobacco had successfully defended against liability in many individual lawsuits — Carney shows that they were quite happy to go along with the deal. The master settlement effectively cartelized the tobacco industry and stifled competition from new firms in return for a steady stream of payments to state governments. It’s a mammoth protection racket. Tobacco companies pay up a portion of their profits each year to the states, which in turn protect their new assets (the tobacco cartel) from competition and lawsuits. For people who never understood what was going on behind the headlines, Carney’s chapter on tobacco will be a real eye-opener.

The case is closed. After reading The Big Ripoff, it is just impossible to entertain any longer the notion either that Republicans are the party of laissez faire or that Democrats are the party that is against big business. With only a very few exceptions (Rep. Ron Paul being the most notable), almost all politicians are to some degree captive to the idea that government needs to help business — which will in return help them to stay in power.

Can anything be done? Carney doesn’t end with a rousing “here’s how we can turn the tide” chapter. I suspect that’s because he doesn’t see any way to turn the tide. The Republicrats like our managed, regulated economy because it ensures steady support for them from the many business interests that profit from government. And most business executives like the comfort that big government provides them. So, while many politicians denounce corporate welfare, hardly any really wants to do something about it.

At the root of most of our problems in the United States is this fact: the people don’t understand what is going on with the government. Obscured by political mythology, the truth that big government and big business dance together at the expense of our liberty and property weighs on few minds. Nothing will be done to eliminate corporate welfare until large numbers of people comprehend the reality that public officials use government to grant favors to businesses that lick their boots. With this whistle-blowing book, Tim Carney has hastened the arrival of that day.

George C. Leef is the director of the Pope Center for Higher Education Policy in Raleigh, North Carolina, and book review editor of The Freeman. Send him email

This article originally appeared in the November 2006 edition of Freedom Daily. Subscribe to the print or email version of Freedom Daily.