Power & Market

What the Burgeoning Trade War Really Means for Entrepreneurs

08/17/2018Per Bylund

President Donald Trump followed his announcement of steel and aluminum tariffs with a declaration that “trade wars are good, and easy to win” -- a stance economists and members of his own political party immediately challenged. Not long after the U.S. announced its tariffs, international trading partners threatened retaliatory fees against American goods such as bourbon, blue jeans and Harley-Davidson.

As governments clash in big battles, small businesses are left to worry about how they might be affected by a trade war. The White House claims it’s acting in the interest of American businesses and is willing to put tariffs on more than $500 billion of imported goods (per CNBC), but not all American companies benefit from nationalistic policies. The Washington Post reports that farmers, for example, will receive $12 billion in federal aid to offset any negative effects of this trade war.

Many companies will need to pass costs on to consumers, as reported by The New York Times. These increases might seem small at first, but small price hikes across the board will leave consumers' wallets thinner from every purchase. This will be particularly problematic for individuals who cannot afford to buy American-made products and instead purchase cheap goods from China, the Atlantic reports.

For entrepreneurs, trade wars create an uncertain and often problematic situation. Which endeavors will succeed, and which will feel the tariff squeeze? How can small business owners protect their livelihood? Thankfully, entrepreneurs don’t have to wait to find out. Through proactive management, entrepreneurs can persevere in an economically volatile climate

Read the full article at Entrepreneur.com
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What is "Advanced" Technology?

07/10/2018Mark Thornton

During research for my book The Skyscraper Curse I started using the phrase "Advanced technology." It means a means of production that is currently beyond the capability of society or at least something that is "cutting edge." I would argue that is also useful in terms of the Austrian Business Cycle Theory (ABCT) because when artificially low interest rates impact an economy's structure of production, it typically induces the production and introduction of new "premature" technology that typically would only occur in the future, if at all.

We might be witnessing one such advanced technology on the campus of Auburn University--a robot bricklayer. The reason for this speculation is that low interest rates have increased the amount of construction and driven up costs so that new technology in the form of the robot bricklayer have been rush in to alleviate the high cost and lack of labor. Two masons and the robot can lay rough four times the number of bricks that two masons can lay.

 

SAM100, short for Semi-Automated Mason, will be the first of its kind in Alabama. It lays more than 3,000 bricks per day, using a conveyor belt and a robotic arm. Auburn University and Construction Robotics have partnered together to bring SAM to life on campus.

Construction Robotics, located in Victor, New York, created SAM to "leverage human jobs, not replace them." According to the MIT Technology Review, human masons can lay 300 to 500 bricks a day -- three times less than SAM. 

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Why Trump’s Iran Isolation Plan May Backfire

07/10/2018Ron Paul

In May, President Trump pulled the United States out of the Iran nuclear deal despite Iran living up to its obligations and the deal working as planned. While the US kept in place most sanctions against Tehran, China and Russia - along with many European countries - had begun reaping the benefits of trade with an Iran eager to do business with the world.

Now, President Trump is threatening sanctions against any country that continues to do business with Iran. But will his attempt to restore the status quo before the Iran deal really work?

Even if the Europeans cave in to US demands, the world has changed a great deal since the pre-Iran deal era.

President Trump is finding that his threats and heated rhetoric do not always have the effect he wishes. As his Administration warns countries to stop buying Iranian oil by November or risk punishment by the United States, a nervous international oil market is pushing prices ever higher, threatening the economic prosperity he claims credit for. President Trump’s response has been to demand that OPEC boost its oil production by two million barrels per day to calm markets and bring prices down.

Perhaps no one told him that Iran was a founding member of OPEC?

When President Trump Tweeted last week that Saudi Arabia agreed to begin pumping additional oil to make up for the removal of Iran from the international markets, the Saudis very quickly corrected him, saying that while they could increase capacity if needed, no promise to do so had been made.

The truth is, if the rest of the world followed Trump’s demands and returned to sanctions and boycotting Iranian oil, some 2.7 million barrels per day currently supplied by Iran would be very difficult to make up elsewhere. Venezuela, which has enormous reserves but is also suffering under, among other problems, crippling US sanctions, is shrinking out of the world oil market.

Iraq has not recovered its oil production capacity since its “liberation” by the US in 2003 and the al-Qaeda and ISIS insurgencies that followed it.

Last week, Bloomberg reported that “a complete shutdown of Iranian sales could push oil prices above $120 a barrel if Saudi Arabia can’t keep up.” Would that crash the US economy? Perhaps. Is Trump willing to risk it?

President Trump’s demand last week that OPEC “reduce prices now” or US military protection of OPEC countries may not continue almost sounded desperate. But if anything, Trump’s bluntness is refreshing: if, as he suggests, the purpose of the US military – with a yearly total budget of a trillion dollars - is to protect OPEC members in exchange for “cheap oil,” how cheap is that oil?

At the end, China, Russia, and others are not only unlikely to follow Trump’s demands that Iran again be isolated: they in fact stand to benefit from Trump’s bellicosity toward Iran. One Chinese refiner has just announced that it would cancel orders of US crude and instead turn to Iran for supplies. How many others might follow and what might it mean.

Ironically, President Trump’s “get tough” approach to Iran may end up benefiting Washington’s named adversaries Russia and China — perhaps even Iran. The wisest approach is unfortunately the least likely at this point: back off from regime change, back off from war-footing, back off from sanctions. Trump may eventually find that the cost of ignoring this advice may be higher than he imagined.

Reprinted with permission.

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What the ‘Dumpster Fire’ D.C. Metro Says About Federal Bureaucracy

07/10/2018James Bovard

The District of Columbia Council voted in June to impose a tax increase of almost 500 percent on Uber and Lyft users to help fix the Washington Metro transit system.  Anyone who summons a Lyft or Uber ride inside D.C. will now be hit with a 6 percent fee to bankroll a subway that a top Obama administration official aptly labeled an “ongoing dumpster fire” two years ago....

The skewering of Uber and Lyft riders was spurred by the D.C. government’s promise to ante up $178 million a year in “dedicated funding” for the subway system. Virginia and Maryland are also chipping in massively for this “solution” that threw the Washington Post editorial board, which retains boundless faith in the magic of government spending, into ecstasy. Metro managers had long claimed that dedicated funding would sway passengers from comparing the subway to Dante’s Inferno. But as soon as the funding deal was done, Metro stunned riders with plans for a vast array of new service disruptions, including shutting down subway lines south of Reagan National Airport for more than three months.

Much of the prolificacy and inefficiency in local transit systems is the result of federal mandates. As a Heritage Foundation analysis noted, “Federal subsidies decrease incentives…to control costs, optimize service routes, and set proper priorities for maintenance and updates.” Transportation scholar Randal O’Toole observed, “Innovative solutions are bypassed and high costs are guaranteed because of the requirement that transit agencies obtain the approval of their unions to be eligible for federal grants.” And the unions often don’t give a damn about the traveling public. Unions representing DC Metro workers blame riders for the system’s problems and denounced as “diabolical” a plan to contract out custodial jobs. But union campaign contributions make politicians happy, which trumps reducing costs.

If money could solve Metro’s problems, the heavily-subsidized system never would have commenced a death spiral.  But neither the feds nor local politicians have the courage to compel radical changes to curb the power of unions, end anti-work rules, and vastly reduce a bureaucracy that makes endless excuses for the system’s other failings. Nor is it likely that Metro employees will even learn the art of non-shiftless shovel leaning.

Read the full article at The American Conservative 
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Who’s Afraid of the Trump/Putin Summit?

07/03/2018Ron Paul

President Trump’s National Security Advisor John Bolton was in Moscow last week organizing what promises to be an historic summit meeting between his boss and Russian President Vladimir Putin. Bolton, who has for years demanded that the US inflict “pain” on Russia and on Putin specifically, was tasked by Trump to change his tune. He was forced to shed some of his neoconservative skin and get involved in peacemaking. Trump surely deserves some credit for that!

As could be expected given the current political climate in the US, the neoconservatives have joined up with the anti-Trump forces on the Left -- and US client states overseas -- to vigorously oppose any movement toward peace with Russia. The mainstream media is, as also to be expected, amplifying every objection to any step away from a confrontation with Russia.

Bolton had hardly left Moscow when the media began its attacks. US allies are “nervous” over the planned summit, reported Reuters. They did not quote any US ally claiming to be nervous, but they did speculate that both the UK and Ukraine would not be happy were the US and Russia to improve relations. But why is that? The current Ukrainian government is only in power because the Obama Administration launched a coup against its democratically-elected president to put US puppets in charge. They’re right to be nervous. And the British government is also right to be worried. They swore that Russia was behind the “poisoning” of the Skripals without providing any evidence to back up their claims. Hundreds of Russian diplomats were expelled from Western countries on their word alone. And over the past couple of months, each of their claims has fallen short.

At the extreme of the reaction to Bolton’s Russia trip was the US-funded think tank, the Atlantic Council, which is stuck in a 1950s time warp. Its resident Russia “expert,” Anders Åslund, Tweeted that long-time Russia hawk Bolton had been “captured by the Kremlin” and must now be considered a Russian agent for having helped set up a meeting between Trump and Putin. Do they really prefer nuclear war?

The “experts” are usually wrong when it comes to peacemaking. They rely on having “official enemies” for their very livelihood. In 1985, national security “expert” Zbigniew Brzezinski attacked the idea of a summit between President Reagan and Soviet leader Mikhail Gorbachev. It was “demeaning” and “tactically unwise,” he said as reported at the time by the Washington Times. Such a meeting would only “elevate” Gorbachev and make him “first among equals,” he said. Thankfully, Reagan did engage Gorbachev in several summits and the rest is history. Brzezinski was wrong and peacemakers were right.

President Trump should understand that any move toward better relations with Russia has been already pre-approved by the American people. His position on Russia was well known. He campaigned very clearly on the idea that the US should end the hostility toward Russia that characterized the Obama Administration and find a way to work together. Voters knew his position and they chose him over Hillary Clinton, who was also very clear on Russia: more confrontation and more aggression.

President Trump would be wise to ignore the neocon talking heads and think tank “experts” paid by defense contractors. He should ignore the “never Trumpers” who have yet to make a coherent policy argument opposing the president. The extent of their opposition to Trump seems to be “he’s mean and rude.” Let us hope that a Trump/Putin meeting begins a move toward real reconciliation and away from the threat of nuclear war.

Reprinted with permission. 

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What Should Politically Vanquished People Do?

06/19/2018Jeff Deist

What should politically vanquished people do? Should they resist the political status quo no matter what, or accept it in the spirit of civil comity and bide their time for the next election? What if their political fortunes are waning, and they are ever less likely to prevail politically? What rights and power do seemingly permanent political minorities (e.g. libertarians) possess? At what point is open rebellion permitted in a supposed democracy, and how do we judge principled resistance as opposed to sour grapes from political losers?

Furthermore, what can political majorities rightfully do-- in spite of a minority's strident opposition-- and what policies cannot be altered regardless of majority consensus? What spoils rightfully belong to political victors, and what longstanding rules should not be upended?

These are uneasy questions in the Age of Trump, especially since western governments long ago abandoned constitutional restraints and the cliched "rule of law" in favor or administrative governance by bureaucratic managers. Democracy, at least the mass variety practiced in modern western welfare states, provides no satisfactory answers. Are those unelected managers bound by popular will, or much of anything? What restrains the state?     

Ludwig von Mises, a robust social theorist in addition to his staggering work in economics, saw these issues clearly. Despite--or perhaps because-- he witnessed the ravages of actual combat in the Great War, he chose to use the language of warfare in describing the plight of political minorities: 

It was liberalism that created the legal form by which the desire of the people to belong or not to belong to a certain state could gain expression, viz., the plebiscite. The state to which the inhabitants of a certain territory wish to belong is to be ascertained by means of an election. But even if all the necessary economic and political conditions (e.g., those involving the national policy in regard to education) were fulfilled in order to prevent the plebiscite from being reduced to a farce, even if it were possible simply to take a poll of the inhabitants of every community in order to determine to which state they wished to attach themselves, and to repeat such an election whenever circumstances changed, some unresolved problems would certainly still remain as possible sources of friction between the different nationalities. The situation of having to belong to a state to which one does not wish to belong is no less onerous if it is the result of an election than if one must endure it as the consequence of a military conquest... To be a member of a national  minority always means that one is a second-class citizen.  (italics added)

The almost unbelievable rancor surrounding the Trump administration demonstrates precisely how little even rich westerners really revere democracy when they don't like its results. Anti-Trump forces indeed consider themselves conquered, feeling suddenly like second-class citizens in a country they thought they knew (one where an inevitable "progressive" arc would of course elect Ms. Clinton). They don't accept Trump any more than they would accept the head of a hostile and occupying foreign power. But rejecting the outcome of elections is strange position for Clinton supporters, a candidate who frequently gushed about "our sacred democracy."

The same can be said for the Brexit referendum in the UK and rising anti-immigration sentiment across continental Europe-- both pilloried as sinister and ill-intentioned populism as opposed to noble expressions of "the people" exercising their democratic rights. But populism is just democracy delivered good and hard, and technocratic administrators are correctly portrayed as gross hypocrites who use the veneer of democratic support only when it bolsters what they plan to do anyway. 

Democracy, far from yielding compromise and harmony, pits Americans against each other while creating a permanent bureaucratic class. All of this is understandable and predictable from a libertarian perspective. Only libertarians make the consistent case against democratic mechanisms, and consider freedom from state power as far more important than majority consensus. Freedom isn't up for a vote, as the hopeful saying goes. Liberty-- properly understood as nothing more and nothing less than freedom from the state-- is the highest political end.

But we don't live in a free world, and most people are not ideological libertarians. Most people, though far less thoughtful, are (small d) democrats like Mises himself. In the interwar years, following the collapse of European monarchies and the rise of Nazism in Germany, Mises saw democracy as nothing short of the societal mechanism for avoiding further wars and bloodshed:

Democracy is that form of political constitution which makes possible the adaptation of the government to the wishes of the governed without violent struggles. If in a democratic state the government is no longer being conducted as the majority of the population would have it, no civil war is necessary to put into office those who are willing to work to suit the majority. By means of elections and parliamentary arrangements, the change of government is executed smoothly and without friction, violence, or bloodshed. 

Nearly 100 years later we might wonder if he would still write those words today, having seen the 20th and now 21st centuries unfold. In hindsight they seem unduly optimistic. We'll never know, of course. and even the most doctrinaire anarchist can admit democracy played a part in the success of America and the West.

But there have been both literal and figurative casualties along the way, and more will become apparent in the coming decades. The elite western consensus, favoring globalism, a vague "neoliberalism," and social democracy will butt up against nationalist and breakaway impulses. Whether "democracy" will be permitted when it goes against elite sentiment is very much an open question, and people are not so easily fooled that globalist projects are in any way democratic.  

It's vitally important to understand that Mises saw self-determination as the highest political end, and thus strongly argued against universalism and in favor of political subdivision wherever needed and feasible. Reordering political arrangements by creating smaller units, or abandoning them altogether via secession, was Mises's answer to the question of how political minorities could be protected. Breakaway movements were the safety valve in Mises's conception of democracy:

The right of self-determination in regard to the question of membership in a state thus means: whenever the inhabitants of a particular territory, whether it be a single village, a whole district, or a series of adjacent districts, make it known, by a freely conducted plebiscite, that they no longer wish to remain united to the state to which they belong at the time, but wish either to form an independent state or to attach themselves to some other state, their wishes are to be respected and complied with. This is the only feasible and effective way of preventing revolutions and civil and international wars. 

At some point Americans of all ideological stripes have to ask themselves a question: if one really believes 30 or 40 or 50 percent of the population is beyond redemption, utterly immoral, stupid, fascist, racist, or communist, what should be done? Should they be killed? Deported? Herded into camps? Re-educated against their will until they vote correctly? Forced into low-caste status, politically, socially, and economically? Tolerated, but punished in future elections? 

Or should we listen to Mises, and elevate political separation, federalism, and localism to the highest political principles?

Top-down rule from DC isn't working, and in fact it's making people miserable and ready to think unthinkable thoughts about civil war. Pro-Trump and anti-Trump sentiment is destroying social cohesion, the real "law" in any society. And for what? Miniscule policy differences between two parties that will never lift a finger against war, state power, entitlements, or the Fed? 

It takes 70 million votes to control the White House, and the (deep) administrative state may be beyond the reach of even an overwhelming political majority. No matter where you sit ideologically, the risk of becoming a marginalized political minority grows as state power grows. It is time to stop trying to capture DC and start talking about realistic breakaway or federalist solutions, even under the umbrella of an ongoing federal state. The elections of 2018 and 2020 won't settle our problems, but only make them worse. At least 50 or 60 million Americans, a group far larger than most countries, will be politically disenfranchised and ruled by a perceived hostile government no matter what candidates or parties prevail.

If breaking up seems unthinkable, so does civil war. Is it written in stone that 330 million people must live under one far-flung federal jurisdiction, no matter what, forever?

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Why Can't We Sue the TSA For Assault?

06/18/2018Ron Paul

When I was in Congress and had to regularly fly between DC and Texas, I was routinely subjected to invasive “pat-downs” (physical assaults) by the Transportation Security Administration (TSA). One time, exasperated with the constant insults to my privacy and dignity, I asked a TSA agent if he was proud to assault innocent Americans for a living.

I thought of this incident after learning that the TSA has been compiling a “troublesome passengers” list. The list includes those who have engaged in conduct judged to be “offensive and without legal justification” or disruptive of the “safe and effective completion of screening.” Libertarian journalist James Bovard recently pointed out that any woman who pushed a screener’s hands away from her breasts could be accused of disrupting the “safe and effective completion of screening.” Passengers like me who have expressed offense at TSA screeners are likely on the troublesome passengers list.

Perhaps airline passengers should start keeping a list of troublesome TSA agents. The list could include those who forced nursing mothers to drink their own breast milk, those who forced sick passengers to dispose of cough medicine, and those who forced women they found attractive to go through a body scanner multiple times. The list would certainly include the agents who confiscated a wheelchair-bound three-year-old’s beloved stuffed lamb at an airport and threatened to subject her to a pat-down. The girl, who was at the airport with her family to take a trip to Disney World, was filmed crying that she no longer wanted to go to Disney World.

The TSA is effective at violating our liberty, but it is ineffective at protecting our security. Last year, the TSA’s parent agency, the Department of Homeland Security (DHS), conducted undercover tests of the TSA’s ability or detect security threats at airports across the country. The results showed the TSA staff and equipment failed to uncover threats 80 percent of the time. This is not the first time the TSA has been revealed to be incompetent. An earlier DHS study fund TSA screenings and even the invasive pat-downs were utterly ineffective at finding hidden weapons.

The TSA’s “security theater” of treating every passenger as a criminal suspect while doing nothing to stop real threats is a rational response to the incentives the TSA faces as a government agency. If the TSA puts up an appearance of diligently working to prevent another 9/11 by inconveniencing and even assaulting as many travelers as possible, Congress will assume the agency is doing its job and keep increasing the TSA’s budget. Because the TSA gets its revenue from Congress, not from airline passengers, the agency has no reason to concern itself with customer satisfaction and feels free to harass and assault people, as well as to make lists of people who stand up for their rights.

Congress should end the TSA’s monopoly on security by abolishing the agency and returning responsibility for security to the airlines. The airline companies can contract with private firms that provide real security without treating every passenger as a criminal suspect. A private security firm that assaults its customers while failing to detect real dangers would soon go out of business, whereas the TSA would likely have its budget and power increased if there was another attack on the US.

If shutting down the TSA is too “radical” a step, Congress should at least allow individuals to sue TSA agents for assault. Anyone who has suffered unfair treatment by the TSA as a result of being put on the “troublesome passengers” list should also be able to seek redress in court. Making TSA agents subject to the rule of law is an important step toward protecting our liberty and security.

Reprinted with permission.

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Weighted Voting Not a Cure for Democracy

06/06/2018Gary Galles

The meat-grinder politics beginning with the 2016 campaign has triggered proposals to rescue us from a crisis of democracy. At least two authors — Jason Brennan, in Against Democracy and Dambisa Moyo, in Edge of Chaos — have suggested that letting more knowledgeable citizens’ votes count more might be a useful reform.

Both trace democracy’s problems to voter ignorance. However, its cause is largely that an individual casting a better-informed vote will not change the political outcome, providing them essentially no such payoff for such efforts. And weighted voting would do little to improve that problem, while imposing severe implementation issues.

Allocations of extra voting power would not escape political calculation and control. That omni-interventionist government would be able and willing to do that even-handedly is beyond belief. Further, it doesn’t fix voters’ incentives.

Say you got a double vote. There is still an insignificant chance it vote would swing an important election. It still offers no payoff. Little would change even if some got 100 votes. And any expansion of “informed” voting power further dilutes the incentives of other voters.

Weighted vote advocates also misidentify voter knowledge as the crucial question. More political knowledge does not eliminate bad government policies. That can just as easily be used to advance one’s own interests at others’ expense (experts promoting a wrong answer in the “right” direction) as to advance the “general welfare.” Given how frequently “experts” have driven policy failures, giving them more votes could easily worsen results.

Read more at the Orange Country Register 
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Who Killed the 10th Amendment?

05/24/2018Ilana Mercer

Not a day goes by when the liberal media don’t telegraph to the world that a “Trumpocracy” is destroying American democracy. Conspicuous by its absence is a pesky fact: Ours was never a country conceived as a democracy.

To arrive at a democracy, we Americans destroyed a republic.

One of the ways in which the republic was destroyed was through the slow sundering of the 10th Amendment to the Constitution. The 10th was meant to guarantee constitutional devolution of power.

“The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

The de facto demise of the 10th has resulted in "constitutional" consolidation.

Fair enough, but is that enough? A perceptive Townhall.com reader was having none of it.

In response to “Whodunit? Who ‘Meddled’ With Our American Democracy” (Part 1), the reader upbraided this writer:

“Anyone who quotes the 10th Amendment, but not the 14th Amendment that supplanted it cannot be taken seriously.”

In other words, to advance the erosion of the 10th in explaining who did our republic in, without mentioning the 14th: this was an omission on the writer’s part.

The reader is admirably correct about Incorporation-Doctrine centralization.

Not even conservative constitutional originalists are willing to concede that the 14th Amendment and the attendant Incorporation Doctrine have obliterated the Constitution's federal scheme, as expressed in the once-impregnable 10th Amendment.

What does this mean?

You know the drill but are always surprised anew by it. Voters pass a law under which a plurality wishes to live in a locality. Along comes a U.S. district judge and voids the law, citing a violation of the 14th's Equal Protection Clause.

For example: Voters elect to prohibit local government from sanctioning gay marriage. A U.S. district judge voids voter-approved law for violating the 14th's Equal Protection Clause.

These periodical contretemps around gay marriage, or the legal duty of private property owners to cater these events, are perfectly proper judicial activism. It flows from the 14th Amendment.

If the Bill of Rights was intended to place strict limits on federal power and protect individual and locality from the national government—the 14th Amendment effectively defeated that purpose by placing the power to enforce the Bill of Rights in federal hands, where it was never intended to be.

Put differently, matters previously subject to state jurisdiction have been pulled into the orbit of a judiciary. Yet not even conservative constitutional originalists are willing to cop to this constitutional fait accompli.

The gist of it: Jeffersonian constitutional thought is no longer in the Constitution; its revival unlikely.

A Court System Centralized

For another example of the endemic usurpation of The People, rendering the original Constitutional scheme obsolete, take the work of the generic jury. With his description of the relationship between jury and people, American scholar of liberty Lysander Spooner conjures evocative imagery.

A jury is akin to the "body of the people." Trial by jury is the closest thing to a trial by the whole country. Yet courts in the nation’s centralized court system, the Supreme Court included, are in the business of harmonizing law across the nation, rather than allowing communities to live under laws they author, as guaranteed by the 10th Amendment to the Constitution.

States’ Rights All But Obliterated

Like juries, states had been entrusted with the power to beat back the federal government and void unconstitutional federal laws.

States' rights are "an essential Americanism,” wrote Old Rightist Frank Chodorov. The Founding Fathers as well as the opponents of the Constitution, the Anti-Federalists, agreed on the principle of divided authority as a safeguard to the rights of the individual.

Duly, Thomas Jefferson and James Madison perfected a certain doctrine in the Virginia and Kentucky Resolutions of 1798. "The Virginia Resolutions,” explains historian Thomas E. Woods, Jr., “spoke of the states' rights to 'interpose' between the federal government and the people of the states; the Kentucky Resolutions used the term nullification—the states, they said, could nullify federal laws that they believed to be unconstitutional."

“Jefferson," emphasized Woods, "considered states' rights a much more important and effective safeguard of people's liberties than the 'checks and balances' among the three branches of the federal government."

And for good reason. While judicial review was intended to curb Congress and restrain the Executive, in reality, the judicial, legislative and executive unholy federal trinity has simply colluded, over time, in an alliance that has helped abolish the 10th Amendment.

Founding Faith Expunged

And how well has First Amendment jurisprudence served constitutionalists?

Establishment-clause cases are a confusing and capricious legal penumbra. Sometimes displays of the Hebraic Decalogue or manger scene are taken to constitute the establishment of a state religion. Other times not.

This body of law forever teeters on conflating the injunction against the establishment of a state religion with an injunction against the expression of faith—especially discriminating against the founding faith in taxpayer-supported spaces.

The end result has been the expulsion of religion from the public square and the suppression therein of freedom of religion.

On the topic of religious freedom, Jefferson was prolific, too. The Virginia Statute for Religious Freedom was a crowning achievement for which he wished to be remembered, along with the Declaration of Independence and the founding of the University of Virginia.

Jefferson interpreted "Congress shall make no law respecting the establishment of religion, or prohibiting the exercise thereof"—as confirms by David N. Meyer, author of Jefferson's Constitutional Thought—to guarantee both "an absolute free exercise of religion and an absolute prohibition of an establishment of religion."

Yet somehow, the kind of constitutional thought that carries legal sway today prohibits expressions of faith or displays of a civilizing moral code in government-controlled spheres. Given my libertarian view of government’s immoral modus operandi, I find this amusingly apropos. Still, this is not what Jefferson had in mind for early Americans.

Indeed, why would anyone, bar Nancy Pelosi and her party, object to "thou shall not kill" or "thou shall not commit adultery, steal or covet?" The Ten Commandments can hardly be perceived as an instrument for state proselytization.

Nevertheless, the law often takes displays of the Decalogue or the nativity scene on tax-payer funded property as an establishment of a state religion.

"I consider the government of the U.S. as interdicted by the Constitution from intermeddling with religious institutions, their doctrines, discipline, or exercise," Jefferson expatiated.

He then gets to the soul of the subject: "This results not only from the provision that no law shall be made respecting the establishment, or free exercise of religion but also from the Tenth Amendment, which reserves to the states [or to the people] the powers not delegated to the U.S."

So, dear reader, if there’s one thing we know for sure, it’s that the Russians didn’t deep-six our republic of private property rights and radical decentralization—we did.

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When Hayek was Harassed by the IRS

(The photo below) Friedrich A. Hayek arriving for one of the morning sessions at the second Austrian Economics conference at the University of Hartford in June 1975. The conference was sponsored by the Institute for Humane Studies, with Don Armentano as the conference director.

Toward the end of the week, Hayek was called away for a phone call during one of the sessions. When he returned and the session ended, Hayek said that the Internal Revenue Service (IRS) had tracked him down at the conference, and told him he would not be allowed to leave the country later in the summer before he documented all income he earned while in the United States and had paid all required taxes owed! Friedrich Hayek potential prisoner of the Tax State.

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(Originally shared on Facebook.)
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