The Perfect Storm in Greece

Greece, or more specifically Athens, is suffering from outbursts of rioting that have resulted in wide spread destruction of property:

In Athens, about 150 stores were vandalised and looted in Sunday night’s riot, and about 45 buildings were seriously burnt, many beyond repair, according to the Athens Chamber of Commerce and Industry. It estimated the losses in the ”tens of millions” of dollars.

These riots were started, in part, because of the recently passed austerity measures that will result in the decrease of benefits and pay for government employees:

The austerity measures include:

  • 15,000 public-sector job cuts
  • liberalisation of labour laws
  • lowering the minimum wage by 20% from 751 euros a month to 600 euros

The austerity measures were put into place in order to secure a $170 billion bailout from the International Monetary Fund (IMF) as Greece has become insolvent. While all of this has been covered by major media outlets they have failed to explain how this situation arose. When looking back at how Greece found itself in its current situation we find a road paved in collectivism and broken promises.

Let’s begin with collectivism. Roughly 22% of those employed in Greece work for the government in some capacity. As the government employes such a high number of people austerity measures, such as those passed in Greece, that effect public employees have widespread consequences. As government produce no wealth (it exists off of taxation, which is stolen wealth) every person employed by the government is a net loss as far as the economy is concerned. To pay for these employees the government of Greece has imposed an income tax that ranges from nothing all the way up to 40%. In addition to an income tax rate that can range up to 40% there is also a value added tax (VAT) that ranges from 4.5% to 23%.

In addition to paying the vast number of government employees the high tax rate in Greece is also used to fund “free” public education, state provided healthcare, and other collectivist programs.

Greece also has some interesting labor laws [PDF] including mandated maximum 40 hour work weeks (although some exceptions can be made to exceed the 40 hour maximum) and a minimum wage of €751.39 a month (approximately $987.92 a month as of this writing).

The labor laws are most interesting in this case as they compose a list of promises made by the government of Greece. Basically the government of Greece told its people they will enjoy no more than 40 hours a week of work and will make a minimum of $987.92 each month. Now the government is reneging on its promise by slashing minimum wage by 20% (making it roughly $790.34 a month) and removing other guarantees that were made. It is also laying off 15,000 people whom were promised jobs by the government. The bottom line is the people are pissed because promises that were made to them are being broken.

Worse yet these promises were made in exchange for the tax rate the people of Greece had forced upon them. The government basically said they were going to take up to 40% of each person’s income and even more money through the VAT tax to pay for the promises being made. These austerity measures void many of those promises without also reducing the tax rate. Denizens of Greece are getting less for the same price and they’re unhappy about it (rightfully so).

Unfortunately this is an outcome that can’t be avoided when the government is expected to provide services. As governments pay for everything using money stolen through taxation there is no wealth generated nor can the market provide feedback on whether or not the desired services are being provided and if they are being provided efficiently. When people expect governments to provide even more services they often fail to realize that money for those services must come from somewhere and that somewhere is the pockets of the people. Since government have no market feedback that tells them if they’re providing services efficiently the cost for those government provided services is always higher than comparable privately provided services. By having the government provide a service you’re actually costing yourself money.

But the perfect storm comes when the government is unable to continue providing its services. This happens when they not only run out of money, but also run out of people to buy up their ever increasing debet. At that point a decision has to be made; either increase taxes or cut services. When you’re taxing people absurd amounts already increasing taxes even more is not going to be received well. If you don’t increase taxes and are forced to cut services it is not going to be received well. Basically a catch-22 exists and will only lead to hardship and anger and that anger usually manifests itself into protests and sometimes rioting.

What Greece is experiencing is unavoidable when collectivists get their way.

Payback is a Bitch

Car bombs have been used to target several of Israel envoys in India and Georgia and you can guess who the Israelis are accusing:

Bombers have targeted staff at Israeli embassies in India and Georgia, officials say, with Israel accusing Iran of masterminding the attacks.

All I can say is that this isn’t surprising considering the recent use of car bombs to kill Iranian nuclear scientists being blamed on Israel:

Deadly attacks on Iranian nuclear scientists are being carried out by an Iranian dissident group that is financed, trained and armed by Israel’s secret service, U.S. officials tell NBC News, confirming charges leveled by Iran’s leaders.

I think this demonstrates succinctly that violence will beget violent. If you are going to use violence to kill somebody don’t be surprised if violence is then employed to kill you. This is why a foreign policy built upon the concept of preemptive war is so dangerous. Preemptive war advocates claim we need to kill an potential enemy before they kill us. What a preemptive war actually does is take the possibility of war and turn it into a guarantee.

For the same of argument let’s say we have two countries who strongly dislike each other; the United States and Iran. Setting history aside let’s assume these two countries strongly hate one another and have been threatening each other for years. In the decades that the threats have been flying back and forth no actual war has broken out but both sides are insinuating that they are willing to make a first strike. While both sides are rattling sabers no actual war has broken out and the loss of life has been minimal, isolated to a handful of incidents. Things could remain in this tense but mostly peaceful state for decades to come. Now let’s assume the United States makes a preemptive strike against Iran sparking off a war. Instead of a tense situation where war was a possibility but so far avoided we have an actual war. That is all preemptive war can get you, war.

Israel, hoping to prevent Iran from obtaining a nuclear weapon, has been a likely culprit in the recent bombing of Iranian nuclear scientists. Any idiot could tell you that Iran was eventually going to retaliate in kind. Now Israel will feign surprise and pretent they have no idea why Iran is targeting Israeli officials while many people in the United States will scream about the need for us to go over and help our “friend” Israel.

Lies, Damn Lies, and Malarkey Produced by the Southern Poverty Law Center

Last week I mentioned the Federal Bureau of Investigation’s (FBI) new war against those of us who dare call ourselves sovereign individuals. The fear mongering machine is in full motion now and the Southern Poverty Law Center (SPLC) has a page up describing the “sovereign movement” ideology. As with other SPLC studies this one is full of lies and slander:

The strange subculture of the sovereign citizens movement, whose adherents hold truly bizarre, complex antigovernment beliefs, has been growing at a fast pace since the late 2000s. Sovereigns believe that they — not judges, juries, law enforcement or elected officials — get to decide which laws to obey and which to ignore, and they don’t think they should have to pay taxes.

Wow the first paragraph is already full of bullshit. While some sovereign individuals man believe they get to decide what rules to obey most of us believe in natural law as advocated by the likes of Lysander Spooner and Murray Rothbard. Natural laws are ones derived by nature and reason. For example natural law opposes the act of initiating violence because, through basic reasoning, it can be demonstrated that nobody enjoyes violence being initiated against them. Nobody likes getting their ass kicked or stuff stolen so it makes sense to have law against such acts. What SPLC describes would be a Libertine, who may consider themselves sovereign individuals but are the exception instead of the rule.

Sovereigns are clogging up the courts with indecipherable filings and when cornered, many of them lash out in rage, frustration and, in the most extreme cases, acts of deadly violence, usually directed against government officials.

By clogging up the courts with indecipherable filins I’m guessing the SPLC means the fact that many sovereign individuals take every single ticket, fine, and other fund raising efforts by the state to court. The reason for this is simple, if we eventually clog the courts with asinine and irrelevant cases the state will be face with a decision; either they focus on the real crimes where people are actually harmed or they stand by as it takes ten years before any case can be heard. Since most people want violent individuals dealt with over those who simply parked improperly the state will be forced into the former and thus our court systems have some chance of being a source of actual justice again.

The claim that many sovereign individuals will lash out in acts of violence is entirely false. Once again violent individuals in the “movement,” as with violent individuals in any movement, are the exception instead of the rule. SPLC did manage to find a single example to cite:

In May 2010, for example, a father-son team of sovereigns murdered two police officers with an assault rifle when they were pulled over on the interstate while traveling through West Memphis, Ark.

While the self-referenced link in the story brings up the fact that the police officers who were shot were performing drug-related arrests no mention of whether or not drugs were found in the killer’s van is ever mentioned. If there were illegal drugs in the van it’s not surprising to see the violent reaction. Of course this is also a single case. If I cherry pick my data I can make the sovereign individual movement look entirely devoid of any violent individuals, but I don’t like spreading false information so I’ll refrain from such an exercise.

The movement is rooted in racism and anti-Semitism, though most sovereigns, many of whom are African American, are unaware of their beliefs’ origins.

No it’s not. I’ll explain in a second:

In the early 1980s, the sovereign citizens movement mostly attracted white supremacists and anti-Semites, mainly because sovereign theories originated in groups that saw Jews as working behind the scenes to manipulate financial institutions and control the government. Most early sovereigns, and some of those who are still on the scene, believed that being white was a prerequisite to becoming a sovereign citizen.

The sovereign individual movement didn’t start in the 1980’s, it’s much older than that. I mentioned Lysander Spooner, an individualist anarchist from the 1800’s who is considered one of the major philosophers by many calling themselves sovereign individuals. He must have been a downright racist if the SPLC story is true, right? Nope, he was a strong abolitionist who wrote many essays on freeing American slaves:

TO THE NON-SLAVEHOLDERS OF THE SOUTH.

We present to you herewith “A Plan for the Abolition of Slavery,” and solicit your aid to carry it into execution.

Your numbers, combined with those of the Slaves, will give you all power. You have but to use it, and the work is done.

The following self-evident principles of justice and hu­manity will serve a. guides to the measures proper to be adopted. These principles are –

1. That the Slaves have a natural right to their liberty.

2. That they have a natural right to compensation (so far as the property of the Slaveholders and their abettors can compensate them) for the wrongs they have suffered.

3. That so long as the governments, under which they live, refuse to give them liberty or compensation, they have the right to take it by stratagem or force.

4. That it is the duty of all, who can, to assist them in such an enterprise.

Some racist, huh? Henry David Thoreau was another philosopher of the sovereign individual ideology and, like Spooner, opposes slavery to such an extent that he wrote a speech titled Slavery in Massachusetts in which he explained his opposition to slavery.

The group that SPLC describes are anti-Semites, not sovereign individuals (while the two groups aren’t mutually exclusive they are also not mutual inclusive, I’m proof that one can be a sovereign individual and not a racist, bigot, etc.).

They argued that the 14th Amendment to the Constitution, which guaranteed citizenship to African Americans and everyone else born on U.S. soil, also made black Americans permanently subject to federal and state governments, unlike themselves.

I would love to know where they pulled that charge from. Of course being this is a SPLC article they fail to cite any sources for the more dastardly accusations.

The contemporary sovereign belief system is based on a decades-old conspiracy theory. At some point in history, sovereigns believe, the American government set up by the founding fathers — with a legal system the sovereigns refer to as “common law” — was secretly replaced by a new government system based on admiralty law, the law of the sea and international commerce.

What a pile of bullshit. I’ve already explained that sovereign individuals generally suscribe to natural law, not common law. If you click on the self-referencing link to common law you’re met with more bullshit produced by the SPLC explaining the roots of common law being biblical in nature and springing forth in the 1980’s. Common law actually refers to English Common Law, which the legal system of the United States is based on (it is where we derive our tradition of trials by jury and jury nullification powers). While there are many aspects of common law the most important to note is that rulings are generally based on previous case precedence and jury decisions. A critical part of common law is also the fact that juries can’t be punished for their decision and thus hold the power of jury nullification.

The United States legal system has been moving away from common law for ages. Evidence exists of this every time a judge lies to a jury by telling them that they must uphold the letter of the law as opposed to their belief of a law being just or not. Another example of common law being dead in this country is the passage of the National Defense Authorization Act, which grants the government the authority to detain an American citizen without trail. There isn’t some kind of grand conspiracy being enacted behind closed doors, the killing of common law is being done in the open for all to see. The article goes on for a bit spewing more bullshit about sovereign individuals believing in some kind of grand conspiracy to discredit the “movement.”

Though this all sounds bizarre, the next layer of the argument becomes even more implausible. Since 1933, the U.S. dollar has been backed not by gold, but by the “full faith and credit” of the U.S. government (in fact, President Franklin D. Roosevelt ended private ownership of gold in large amounts in 1933; governments could still sell gold for dollars to the U.S. Treasury for a fixed amount after that, until that practice was ended by President Richard Nixon in 1971). According to sovereign “researchers,” this means that the government has pledged its citizenry as collateral, by selling their future earning capabilities to foreign investors, effectively enslaving all Americans.

Where the fuck do they come up with this shit? Seriously I want to know but they don’t provide any citations. The argument for the gold standard has nothing to do with a belief that the American government has put the citizenry up as collateral, it has everything to do with basic economics. Of course the SPLC article goes on for some time trying to make their case without presenting one single shred of evidence.

It is impossible to know how many sovereigns there are in the U.S. today, in part because there is no central leadership and no organized group that members can join.

You don’t become a sovereign individual because you join a group, you are one by nature. While there are no groups that grant sovereign individuality there are philosophies that subscribe to the idea that individuals are sovereign. Many libertarians, anarcho-capitalists, voluntaryists, and basically any other form of individualist anarchism believes in the individual being the supreme ruler of themselves. I’ve been using the term “movement” in quotes when referring to the sovereign “movement” for a reason: there is no sovereign “movement.” The idea of an individual being sovereign is part of individualist anarchist philosophies (and philosophies I’m sure), not a philosophy unto itself.

Instead, there are a variety of local leaders with individualized views on sovereign citizen ideology and techniques.

As I’ve explained previously, the term “sovereign citizen” is a contradiction of terms:

Sovereign citizen is a contradiction of terms. A sovereign is a supreme ruler while a citizen is a subject of a state. You can not be a supreme ruler and a subject at the same time. On the other hand a sovereign individual is a supreme ruler of an individual, him or herself. If you’re going to make us appear as a threat please get the terminology right at the very least.

If the FBI can’t get the terminology right I guess I shouldn’t expect the SPLC to figure it out:

In the mid-1990s, the IRS estimated that there were approximately 250,000 tax protesters in the U.S., people who believe that the government has no right to tax income.

Tax protests have been done for many reasons throughout history. Previously mentioned Henry David Thoreau refused to pay taxes to protest slavery and the Mexican-American War. He refused to monetarily contribute to an institution (the state) that enforced slavery and initiated wars. With that said the federal government has no right to tax income as taxation is a form of theft. Of course tax protesters often care little about that fact (and often belief the government has the right to extract taxes) and usually are protesting foreign wars, drug prohibition, or any other number of issues they have with the government that causes them to not submit to taxation.

Not all of them were full-blown sovereign ideologues. Since the late 1990s, an abundance of evidence suggests that the sovereign citizen movement’s growth has been explosive, although there have been no more recent IRS estimates because Congress in 1998 prohibited the agency from tracking or labeling those who file frivolous arguments in lieu of paying their taxes.

Emphasis mine. I just want to point out that none of that abundant evidence is presented by the SPLC.

The weapon of choice for sovereign citizens is paper.

*GASP* NOT PAPER!

A simple traffic violation or pet-licensing case can end up provoking dozens of court filings containing hundreds of pages of pseudo-legal nonsense.

As I explained this tactic is a method of forcing the courts to ignore victimless crimes and focus on cases involving violence.

For example, a sovereign was involved in 2010 in a protracted legal battle over having to pay a dog-licensing fee. She filed 10 sovereign documents in court over a two-month period and then declared victory when the harried prosecutor decided to drop the case.

Since having the prosecutor drop the case prevents the punishment of an individual for a nonviolent crime it is victory.

In the late 2000s and early 2010s, most new recruits to the sovereign citizens movement are people who have found themselves in a desperate situation, often due to the economy or foreclosures, and are searching for a quick fix. Others are intrigued by the notions of easy money and living a lawless life, free from unpleasant consequences.

Or those of us who research the philosophy of our founding fathers and the ideas of person liberty in general. Anybody who reads the works of our founding fathers will realize that they believed the people, not the government, were supreme. In fact they believed this so strongly that they codified the right to keep and bear arms as a last measure for the people to defend themselves against a tyrannical government.

Many self-identified sovereigns today are black and apparently completely unaware of the racist origins of their ideology.

It’s probably more to do with the fact that sovereign individuals were the ones opposing slavery back when it was still sanctioned by the state.

When a sovereign feels particularly desperate, angry, battle-weary and cornered, his next government contact, no matter how minor, can be his final straw. The resulting rage can be lethal. In 1995 in Ohio, a sovereign named Michael Hill pulled a gun on an officer during a traffic stop. Hill was killed. In 1997, New Hampshire extremist Carl Drega shot dead two officers and two civilians, and wounded another three officers before being killed himself. In that same year in Idaho, when brothers Doug and Craig Broderick were pulled over for failing to signal, they killed one officer and wounded another before being killed themselves in a violent gun battle. In December 2003, members of the Bixby family, who lived outside of Abbeville, S.C., killed two law enforcement officers in a dispute over a small sliver of land next to their home. And in May 2010, Jerry and Joseph Kane, a father and son sovereign team, shot to death two West Memphis, Ark., police officers who had pulled them over in a routine traffic stop. Later that day, the Kanes were killed in a fierce shootout with police that wounded two other officers.

I find it funny how the SPLC only references itself, never outside sources, and that is when they reference anything at all. For example the claim about the 1995 case in Ohio goes entirely without citation, as does the supposed case in New Hampshire in 1997.

This article, like every other piece of bullshit produced by the SPLC, is entirely false and written simply to make an argument against individualists. The SPLC is nothing more than a shill of the state that writes articles in an attempt to demonize anybody who believes in individual liberty. Sadly some people actually believe the malarkey they produce, which is why I needed to take the time to write a rebuttal to their claims.

People Like This Are the Problem

Our country is a mess. We have accumulated so much debt that we’re never going to be able to repay it, the government continues to spend even more money that it doesn’t have, our country is involved in several wars, and nothing seems to change. While I can’t address the first three items I just typed out I can address the last. The reason nothing changes in this country is because of people like this:

I had the pleasure of attending my caucus on Tuesday night. Presidential candidate Ron Paul spoke. He said some things that I agreed with wholeheartedly (70 percent), and some that I thought were either unrealistic, unfeasible, impossible or flat-out lunacy (30 percent). He took no questions.

I came to the caucus with no real “dog in this fight.” I ended up supporting Rick Santorum, but not enthusiastically. At the caucus, I asked a Paul supporter two questions: 1) Is Paul a real Republican or a libertarian, and 2) If he loses the nomination, will he support the eventual Republican nominee and swear off running as an independent or libertarian?

I had kicked the hornets’ nest. I was greeted with some obscenities. I was “a tool of the system.” I was the problem, not Ron Paul.

I was young and dumb once, and wasted a vote on Ross Perot. The folksy rich guy turned out to be nothing more than a unbalanced, mean spirited 1-percenter who would do anything to see that George H.W. Bush didn’t get a second term. Perot finished a distant third, but got his wish on Bush’s reelection, and I got eight years of an unprincipled guy willing to fool around with girls a third his age.

Huyck is a classic example of somebody who puts the part before political common sense. He’s not concerned about putting the most qualified man into the Oval Office, he only cares that his party is the one occupying it. The problem is, with a single exception, everybody running for the Republican candidate is a big government war monger that wants to legislate morality, the exact thing that has gotten us into the massive mess we face now. Ron Paul is not a Republican in the modern sense and expecting him to swear an oath of loyalty is pure stupidity. What this country really needs is an individual who understands economics, liberty, and is willing to buck the trend of ever expanding government. While Romney, Santorum, and Gingrich continue to pay lip service to such concepts they have no track record backing up their rhetoric. Even though people blame our current mess on Obama and the Democrats the truth is that the Republicans hold just as much responsibility as they also continued to expand the size of government. It’s not the red Republicans against the blue Democrats, it’s just one big fucking party of purple.

Huych then talks about “wasting” his vote on Ross Perot. Here’s the thing, statistically speaking, all votes are wasted. One vote doesn’t matter and Huych voting for Ross Perot wasn’t the death knell for Bush Senior or Dole. Does he honestly thing this country would have been better under a second term of the first Bush or a term of Dole? Hell we wouldn’t have been any better off if McCain won instead of Obama. Honestly, in my opinion, any vote cast simply to support a party instead of an individual is entirely wasted.

Finally I love his last line:

All I ask is that everyone treat their vote like it really matters.

JAY HUYCK, MAPLE GROVE

Unfortunately, as the link I previous posted proves, your vote doesn’t matter. Whether I go to the ballot and vote for Romney or stay home the outcome will be exactly the same because no major election has ever been decided by a single vote. I’m not entirely opposed to voting, it’s a tool the state allows to enact some kind of change and if we can get a liberty minded candidate in office I’m going to support him through and through. What I will not do is waste my time going to the poll to vote between Romney, Santorum, or Gingrich versus Obama. In that race no matter who wins we all lose.

The Argument About Contraceptive Coverage Misses the Point

The current distraction of the week is the battle over whether or not employers should be forced to provide health insurance plans that cover contraceptives. As you can predict there is a huge divide on this issue between religious fundamentalists and everybody else. Unfortunately those fighting over this topic are missing the whole point, employers shouldn’t even be involved in your healthcare:

Why is it considered normal for your boss to determine your healthcare options in the first place?

Relying on employers for healthcare means the company has more leverage over the worker. If you’re out of work then you might be out of luck when it comes to your health. And if the boss decides what kind of healthcare the employee can get — at issue in the current discussion of religiously-affiliated institutions and contraception — this can mean an extension of the boss’s control outside of work hours.

How did we get to where it’s typical to rely on employers for healthcare?

As Roderick Long describes in his article “Medical Insurance that Worked — Until Government ‘Fixed’ It,” it was once common for workers to join a friendly society or fraternal society. These were essentially mutual aid organizations where monthly fees created a pool of resources that participants could draw on in time of need. They often negotiated contracts with doctors to serve members for a reasonable expense paid by the organization. Regulation and government programs prevented these organizations from continuing to serve the public.

I’ve talked about mutual aid societies in the past and how they were effectively legislated out of existence once the government decided it was going to enter the welfare market. Abolishing mutual aid societies is something we’re still feeling the effects of every day. Instead of each person or family being able to freely choose between numerous competing societies each person or family is usually forced to accept whatever health insurance company is being provided by their employer. Part of this is because health insurance has gotten so expensive that employer contribution is needed by many just to afford the cost.

People arguing over whether or not employer provided health insurance needs to provider contraceptive coverage need to take a step back, look at the situation, and ask themselves why the hell their employer is even involved in providing health insurance in the first place.

When the State Can’t Legally Steal Your Wealth They Simply Make New Taxes

I’m sure you’ve heard that Mark Zuckerberg is in a position to make an absolute fortune with Facebook’s upcoming IPO. What You probably haven’t heard is that the state is looking to enact a new tax because without it they can’t legally steal as much of Zuckerberg’s newfound wealth:

WHEN Facebook goes public later this year, Mark Zuckerberg plans to exercise stock options worth $5 billion of the $28 billion that his ownership stake will be worth. The $5 billion he will receive upon exercising those options will be treated as salary, and Mr. Zuckerberg will have a tax bill of more than $2 billion, quite possibly making him the largest taxpayer in history. He is expected to sell enough stock to pay his tax.

But how much income tax will Mr. Zuckerberg pay on the rest of his stock that he won’t immediately sell? He need not pay any. Instead, he can simply use his stock as collateral to borrow against his tremendous wealth and avoid all tax.

[…]

A drastic change is necessary to fix this fundamental flaw in our tax system and finally require people like Warren E. Buffett, Mr. Ellison and others to pay at least a little income tax on their unsold shares. The fix is called mark-to-market taxation.

For individuals and married couples who earn, say, more than $2.2 million in income, or own $5.7 million or more in publicly traded securities (representing the top 0.1 percent of families), the appreciation in their publicly traded stock and securities would be “marked to market” and taxed annually as if they had sold their positions at year’s end, regardless of whether the securities were actually sold. The tax could be imposed at long-term capital gains rates so tax rates would stay as they were.

We could call this tax the “Zuckerberg tax.” Under it, Mr. Zuckerberg would owe an additional $3.45 billion when Facebook went public (that’s 15 percent of the value of the roughly $23 billion of stock he owns). He could sell some shares to pay the tax (and would be left with over $20 billion of Facebook stock after tax), or borrow to pay the tax.

Under current tax laws Zuckerberg would actually be allowed to keep the fruits of his labor, something that sate never approves of. The state is like a far more vicious version of the mafia, if you make any money they want a cut and if you don’t give them that cut something bad is going to happen to you. Unlike the mafia, the state pretendes to abide by a series of laws and regulations but in truth these laws and rules are entirely under their control and therefore can be changed whenever they become inconvenient.

Like most state puppets the author of this opinion piece is trying to make the market-to-market tax appear to be a great idea by appealing to the reader’s jealousy. First the author states that Zuckerberg is in a position to make a great deal of money, the reader. The author then moves on to explain that, unlike the reader, Zuckerberg will be able to avoid a great deal of taxation when he obtains his new wealth. He finally closes by saying the new market-to-market tax will allow the state to gouge Zuckerberg without affect the reader. Therefore most people reading this article will likely walk away thinking the market-to-market tax is a great thing as it punishes people who are more successful than themselves.

What’s interesting is looking back at the passage of the Sixteenth Amendment of the United States Constitution, which gave the federal government the authority to collect income tax. Before passage of the amendment the Wilson-Gorman Tariff Act established a 2% federal income tax but was shut down by the Supreme Court when they ruled such income tax as unconstitutional in Pollock v. Farmer’s Loan and Trust Company. Such a ruling was a mere technicality for the state as they were able to simply make an amendment to the Constitution that allowed the collection of income tax by the federal government. Shortly after the passage of the Sixteenth Amendment the Revenue Act of 1913, which established the federal income tax, was passed.

The Revenue Act of 1913 passed with little objection by the population because less than one percent had to pay federal income tax. From there the state simply kept ratcheting up the income tax rate until a large majority of the population were paying. Like the market-to-market tax being proposed in the New York Times article, the Revenue Act of 1913 was able to pass by preying on people’s jealousy. Looking at the history of the federal income tax should also make people aware of the fact that any newly passed tax, such as the market-to-market tax, will eventually affect a vast majority of the population.

According to the author the market-to-market tax will have a positive effect:

The most profound effect of a mark-to-market tax would be to level the playing field between wage earners, on one hand, and founders and investors on the other. Superwealthy holders of publicly traded securities could no longer escape tax on their vast wealth.

The author’s conclusion is entirely wrong. A market-to-market tax will further encourage those who have a million dollar idea to flee to a friendlier country where they won’t be subjected to as much theft. In this age of global commerce why create something amazing in the United States when you can do it in Hong Kong and keep far more of the wealth you generate? Facebook it a website and like any website it can be setup anywhere in the world. Setting aside the fact that taxation is theft still makes the idea of a market-to-market tax a bad idea.

Yet agents of the state will feed it to the people by preying on their jealousy, meaning the tax will likely enjoy a great deal of support by the populace. Unfortunately for the populace, especially those of us who aren’t wealthy enough to be effected by this new market-to-market tax, we will eventually become targets of this new tax as well.

Judge Orders Business Shutdown Because of Patron Actions

If anybody believes government doesn’t have too much power they are either insane or not paying attention. When a judge is able to force the closure of a business because of the actions of some patrons there is a major problem:

A judge approved a motion to temporarily shut down MugShots bar in Toledo on Tuesday. The move comes after six people were shot outside the bar early Monday morning. But believe it or not one of the victims is speaking out. “For them to want to close down, not just Mugshots, but any bar for other peoples actions, I don’t think that’s fair,” Lakeisha Carter said.

Carter was waiting in line outside Mugshots Bar when the shooting took place. She was shot twice, once in each leg. Police tell 13abc 20-year-old Rhaymoun Villolovos and his brother, 22-year-old Richard were kicked out of the bar after a fight. That’s when they allegedly grabbed their guns and started shooting. As a result, the city got a temporary restraining order that closed the bar.

“Mugshots is being looked at like the place to fight … but it’s happening everywhere,” Carter explained.

The problem here wasn’t the bar or the alcohol, it was the people who shot one another. Closing the bar because some patrons decided it was a jolly good idea to start blasting one another is a perfect example of punishing the wrong person (or people in this case since the bar employees won’t be receiving pay for the duration of the shutdown). Of course the judge is merely protecting the people form themselves with this order so everybody will be entirely fine with it.

I’m sure the anti-gunners are going to swoop in on this and claim it is an example of why allowing people to carry firearms into bars is a bad idea. What they won’t stop to determine is whether or not any of the initiators of violence even had carry permits.

More Evidence Against the Necessity of the State

According to Thomas Hobbes humans are evil bastards that must be controlled by a coercive entity we call the state. Hobbes’s beliefs can are demonstrably false by the simple fact that a species of inherently bad individuals would be unable to cooperate well enough to establish societies. Such reasoning is ignored by statists though so other evidence must be brought to the table such as this recent study that demonstrates people, in general, act socially “well” even without established rules:

Millions of human interactions were assessed during the study which included actions such as communication, founding and ending friendships, trading goods, sleeping, moving, however also starting hostilities, attacks and punishment. The game does not suggest any rules and everyone can live with their avatar (i.e. with their “game character” in the virtual world) as they choose. “And the result of this is not anarchy,” says Thurner. “The participants organise themselves as a social group with good intents. Almost all the actions are positive.”

The entire paper can be read here. What I find most fascinating is the fact that these results were obtained through simulation as simulations, virtual worlds existing without real consequences, are where people like to act out their darker desires. You can put somebody in front of a copy of The Sims for very long until they start burning and or drowning the various sims in their household. Yet even in a simulated environment where people have ample opportunity to be assholes to one another in general people were acting positively instead of negatively.

The study also demonstrated that the golden rule certainly applies are positive actions were usually replied to with positive actions while negative actions were usually replied to with negative actions. In other words people are generally good and the rule of “don’t be a dick” applies.

26 Things Non-Paul Supporters are Saying

Tom Woods Jr. is great at pointing out logically failures and a rather humorous manner. He has a piece up on his blog explaining 26 things non-Paul supporters are really saying:

(1) The American political establishment has done a super job keeping our country prosperous and our liberties protected, so I’m sure whatever candidate they push on me is probably a good one.

(2) Our country is basically bankrupt. Unfunded entitlement liabilities are in excess of twice world GDP. Therefore, it’s a good idea to vote for someone who offers no specific spending cuts of any kind.

(3) Vague promises to cut spending are good enough for me, even though they have always resulted in higher spending in the past.

(4) I prefer a candidate who plays to the crowd, instead of having the courage to tell his audience things they may not want to hear.

(5) I am deeply concerned about spending. Therefore, I would like to vote for someone who supported Medicare Part D, thereby adding $7 trillion to Medicare’s unfunded liabilities.

It’s a great list and I highly recommend reading it.

The Federal Reserve to Devalue the Dollar by 33%

The Federal Reserve announced its plan to explicitly steal from the American populace through a plan that will devalue the dollar by 33% over the next 20 years:

The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.

This means that every dollar you hold will only be worth $0.67. The people most harmed by this are the poor and elderly as the poor have little purchasing power to begin with and the elderly rely heavily on savings that they accrued over their lifetimes. If somebody was able to save $1,000,000.00 over their lifetime they would only have $670,000 dollars if the currency devalued by 33%. When you combine the lesser purchasing power with the higher prices asked by vendors to makeup for the loss they experience because of devaluation you have an extremely scary picture. So what’s the solution? A commodity backed monetary unit:

An increase in the price level of 2% in any one year is barely noticeable. Under a gold standard, such an increase was uncommon, but not unknown. The difference is that when the dollar was as good as gold, the years of modest inflation would be followed, in time, by declining prices. As a consequence, over longer periods of time, the price level was unchanged. A dollar 20 years hence was still worth a dollar.

Make no mistake, this plan by the Federal Reserve is pure theft and those who hold dollars should be furious that the government granted a monopoly on issuing money to an organization. Of course if the dollar devalues dramatically the United States government enjoys the benefit of paying off its debt using less purchasing power (and since they can just increase taxes they’re not negatively affected by the devaluation).