Taxes and Spending

Social Security was designed as a tool of macroeconomic policy: a social arm of central planning passed in age of boundless faith in the power of the state.

As soon as Abraham Lincoln and the new Republican Party gained power, the average tariff rate was quickly raised from a nominal 15 percent to 47 percent and higher, and remained at such levels for decades after the war. South Carolinian John C. Calhoun's free-trade arguments, as eloquent and advanced as they were, were no match for a federal military arsenal.

The common thief has the decency to leave you alone after he takes your money. But, society's biggest thief, government, steals money, calling it taxation, and then lurks in the shadows to tell its victims what to do, calling it regulation. And, in Las Vegas the government goes one step further, it taxes, it regulates and then competes head to head with private enterprise in the city's largest industry, tourism.

Since 1997, the federal government's office space has expanded by 280 million square feet. The average American family homestead is 2,100 square feet. The massive Empire State building fills 2.1 million feet. Thus, in only five years the federal government's physical size has grown by 134,000 single family homes or 90 Empire State Buildings.

Foreign policy from Truman to the Reagan exacted a huge toll on American prosperity, diverting resources and expanding the government's grip on national life, writes Karen De Coster. A new book by Derek Leebaert sizes up the actual price that we paid for granting government military planners and their connected industries a blank check.

Any manager of a private trust fund who would dare to spend the funds entrusted to him and replace them with his IOUs would face criminal charges, writes Hans Sennholz. When the U.S. Treasury does it, it is called "creative financing." But there is a price to be paid.

Arthur Andersen's transgressions have opened the doors to unbridled regulatory madness, writes Karen De Coster. The effect of legislation (like CARTA) will be to replace the  oversight bodies that currently watch over the accounting profession with regulators who will do an even worse job of it. 

This is how government works: If you can be really egregious at what you do--say you run Amtrak, the Defense or Education departments or, better yet, the SEC--you scream out that there is a dire national need. Then it will be easy to find legislators to turn on the money spigot for you and give you “whatever” you need.

The costs that the "War on Drugs" imposes upon people cannot be underestimated. We bear the costs of building and maintaining prisons, and the burdens of creating vast new classes of people who are called criminals because they have engaged in mutually agreeable exchanges with other people.

In his first inaugural address, Lincoln said he had no intention of disturbing slavery, and he appealed to all his past speeches to any who may have doubted him. But with the tariff it was different, notes Thomas DiLorenzo. Lincoln was willing to launch an invasion that would ultimately cost the lives of 620,000 Americans to prove his point.