It has been a good run for state worshipers. The 1800s gave more and more people the belief that the state could bring about a good utopia for all to enjoy. (Outside those who saw peril in the state, like those in the most southern seven US states in the “deep south” in 1860 and 1861)
By the end of the 1800s it seemed that the progressive movement was about to birth and bring about a century of peace. However, WWI and WWI PLUS all the genocides of the 20th century meant millions died during as well as outside of official wars.
By the end of the 20th century we saw two collectivist Communist states morph in various ways towards entities that pay more attention to well-being of the taxpayers. Russia emerged out of a God-less era to embrace family and Christianity in the 20th century. China backed off on the underground Church (that was thriving under persecution) to a degree where this is tolerated in this Communism version 2.X coupled with quite a capitalist friendly environment where regulations are minimized that allow entrepreneurship to thrive. While these states are not perfect, it does appear they have learned the lessons of the 20th century.
This brings us to the US state complex that is exceptional enough that it still believes there are no lessons to learn. However, if Lew Rockwell’s post “Working Around Leviathan” predictions are true, their days are numbered as they get less and less relevant in society as technology advances so much faster than the state can digest it.
Lew does a great job at balancing the forces at work in 2020, where he compares the US state apparatus:
Never before has a government in human history owned more weapons of mass destruction, looted as much wealth from a country, or assumed unto itself the power to regulate the minutiae of daily life as much as this one. By comparison to the overgrown behemoth in Washington, with its printing press to crank out money for the world and its annual $2.2 trillion dollars in largesse to toss at adoring crowds, even communist states were powerless paupers.
.. to the private commercial/business side:
At the same time — and here is the paradox — the United States is overall the wealthiest society in the history of the world. The World Bank lists Luxembourg, Switzerland, and Norway as competitive in this regard, but the statistics don’t take into account the challenges to mass wealth that exist in the US relative to small, homogenous states such as its closest competitors. In the United States, more people from more classes and geographic regions have access to more goods and services at prices they can afford, and possess the disposable income and access to credit to put them to use, than any other time in history. Truly we live in the age of extreme abundance.
Some will claim it is the government’s role that has made especially large corporations most successful and should receive credit for all they do. However, Lew is quick to point out a disclaimer to that effect, but not before sharing what both the so-called “right” and so-called “left” tend to think:
It seems that people on the right and left are quick to confuse correlation with causation. They believe that the US is wealthy because the government is big and expansive. This error is probably the most common of all errors in political economy. It is just assumed that buildings are safe because of building codes, that stock markets are not dens of thieves because of the SEC (Securities and Exchange Commission), that the elderly don’t starve and die because of Social Security, and so on, all the way to concluding that we should credit big government for American wealth.
I do hope you chuckled as you read this. Only those in DC would take this seriously, most of the rest of us recognize sarcasm.
If we are looking for those that create value and wealth, do we think of government? Does on think of Obamacare, Amtrak or the United States Postal Service?
Government is not productive. It has no wealth of its own. All it acquires it must take from the private sector. You might believe that it is necessary and you might believe it does great good, but we must grant that it does not have the ability to produce wealth in the way the market does.
If you understand economics, or if you have ever spent time in a monopoly, you will find that they do not have any good feedback loop that helps them indicate what the market needs. Government is even more handicapped since no one in their bureaucracy is ever accountable for government action or inaction. They simply have no skin in the game and do not see the taxpayers as customers:
Economic law limits what the state can do. The state cannot raise wages for everyone. It cannot dampen prices that want to rise without causing shortages, or increase prices that want to fall without causing surpluses. It cannot predict the course of markets or human events. It can control surprisingly few forces that work in the world.
In all its central planning, government is forever declaring the major combat operations are over, whether in foreign or domestic policy, only to discover that its real struggles and battles last and last. A good example is in the area of foreign trade. If a good or service is more efficiently produced abroad, the logic of the market will reassign production patterns until they conform. An attempt to protect domestic industry can do nothing to change this reality. Instead, protection only increases prices for consumers, subsidizes inefficient firms, and brings about ever-increasing amounts of wasted time, work, and resources.
On the other hand are those that seek to truly bring value to the market and are rewarded with wealth that can be placed into capital improvements that can make the business even more productive, efficient and even adaptable to the changing market. This was seen by the 1700 and 1800 farmers all the way to the manufacturers of the 1800s that could accomplish this all without government involvement.
Lasting prosperity can only come about through human effort in the framework of a market economy that allows people to cooperate to their mutual advantage, innovate and invest in an environment of freedom, retain earnings as private property, and save generation to generation without fear of having estates looted through taxation and inflation. This is the source of wealth. This is the means by which a rising population is fed, clothed, and housed. This is the method by which even the poorest country can become rich.
I will only add one more quote and if you are interested, please read all of Lew’s words that at least to me, give hope for the generations to come:
But here I would like to concentrate on what I think is an explanation that is too often overlooked. It requires that we understand something about the extraordinary capacity of the human mind to overcome obstacles put in its path. In all the history of states and the history of reflection on social organization and economics, this component is the most underestimated because it is the least predictable and the most difficult to comprehend. Human beings are creative and determined, and, if they have a love of liberty, and cooperate through exchange, they can overcome seemingly impassable obstacles.
It is because of this power of human ingenuity and determination to improve the world around us, despite the state, that a vast gulf has come to separate the accumulated power of the nation-state from its effective power in the management and guidance of society and the world economy.
Yes, despite the state, human ingenuity can improve the world, as well as its parallel, despite religion, humans with God’s help and hope, can improve the world in loving those around them.
Praying that the future does see the archaic state fall by the wayside and that grassroots communities with free trade on a global basis can improve the lives of those all over the world.
One can dream can’t they?
Acts 2:17
Your sons and your daughters will prophesy, your young men will see visions, and your old men will dream dreams.
-SF1
