Posts Tagged ‘force’

Principle 1: Stealing is Bad—Even for Barack Obama & Terrell Owens

Thursday, March 5th, 2009
This is the first in a series of 5 posts in which I am trying to illustrate the basic principles of liberty.

I want a Ferrari like Terrell Owens

I’m poor. Terrell Owens is rich (despite being unemployed). Even so, it would be wrong of me to steal from him. And, of course, it would be REALLY wrong for him to steal from me. ;-) Neither of us would ever think of taking from the other (I’m giving him the benefit of the doubt here).

What if, however, a policeman came along and said, “It really isn’t fair that T.O. gets to cruise in a Ferrari while Benton rolls in a beat up Camry.” Terrell would, of course, have a fit if the policeman took his Ferrari, so instead the officer takes Terrell’s Audi and gives it to me. Sounds great right? T.O. is still rich, and now I’m better off too. That policeman just made the world a better place.

Okay, I’ve never seen a policeman do such a thing, but what about a mayor? A governor? President of The United States?

Government

How often does the government take money from one group and give it to another? The reasons are countless: help the poor, bailout big companies, stimulate the economy, support “green” technology, etc. etc. The good intentions of these programs do not change the fact that they all rely on force. What is the difference between being forced to give and being stolen from?

Liberty is tossed out the door whenever force enters the room.

No one illustrates this principle better than Frederic Bastiat. I highly recommend his short book (it was orginally a pamphlet) The Law. Read it on pdf , or buy it for $2.49 from Amazon.

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Myth: Spending More Will Fix the Economy

Monday, December 8th, 2008

I keep hearing news reports about how consumer spending is the key to fixing the economy. This idea is false; spending borrowed money will NOT fix the economy.

Imagine that I consistently spend more than I make. I have a home loan, a car loan, a boat loan, and multiple consumer credit cards. You’re already thinking, “Hey, that’s me.” or “Hey that’s my neighbor.” It’s not uncommon. I can maintain this lifestyle for as long as someone is willing to keep lending me more money. Soon enough, however, I will reach the limit of what people are willing to lend me and I will be forced to pay the debts I’ve accumulated. When this happens, my lifestyle is forced to change:

  • My spending will be drastically reduced.
  • I will have to work more.
  • I might have to sell some things to reduce my debt.
  • If I can’t pay my debts, for whatever reason, I might face bankruptcy and/or foreclosure.

Notice that I could never get myself out of this mess by spending more. The only solution is to spend less than I earn.

Thinking on a Large Scale

Now imagine what happens when thousands, or even millions spend just like me; they live on borrowed money. The economy booms (actually bubbles). Jobs are abundant. People spend like crazy. Just like my example, though, this type of living cannot go on forever. Eventually, debts have to be paid. When this point is reached, people are forced to adjust their lifestyle just like in my example:

  • Spend Less.
  • Work More.
  • Sell things and reduce debt.
  • Possibly face bankruptcy and/or foreclosure.

This is known as a recession. It’s how the economy corrects itself after we’ve been living on borrowed money. Just like in my example, the solution is to spend less than you earn.

Don’t buy into the garbage you hear on the news about how you need to go shopping to do your part in fixing the economy. Spending more borrowed money only worsens and prolongs the pain. Live within your means, and you will protect your personal economic liberty AND help fix the economy.

A Meaningful Christmas Without More Debt

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