Tag Archives: taxes

Individual Rights: Essential to a Free Society

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As of today, all of the fruits of your labor will be donated to the state. Your occupation, based off of personality tests, will be lawn engineering. Your job is to make sure that the landscape in your town looks perfect. We know you have wanted to pursue a career in computer engineering (based off of the phone conversations we’ve been listening to your entire life), but the community needs landscapers. That sounds like an awful collectivist world where individual rights are not held to the highest esteem. Why does it seem so creepy when others make these types of decisions for us? We are all individual beings, and when we are forced to be a part of a collective**, our individual souls suffer; we are not allowed to find who we really are because our bodies do not belong to us.

One thing that we all have in common is inalienable human rights which were defined under the United States Constitution to organize a society which was just being born. This was the first time in history that the rights of the citizens were defined in a government document, and that is the reason why it has been used as an example for constitutions around the world. There have been countless debates over the years as to what type of society a human should live in. We are a social species who thrives off of fellow human contact, but we are also a species who needs to spend time by ourselves. Every single one of us is different, and all different types of people have been trying to figure out how we can all live in harmony on this earth together. When those rights have been regulated by an imposing collective, the individual becomes confused and agitated: Why do I have to be a landscaper instead of a computer engineer? Your parents will tell you, “That’s just the way it is, and you should be proud to be a part of bettering the community.” This conflicting environment creates in the individual what is called cognitive dissonance.

Chances are, after your parents and others in the community congratulate and praise you for being the town’s newest landscaper, you’re probably thinking, “Well, landscaping can’t be so bad. I’ve always loved mowing the lawn.” At this point, you are creating the illusion that you have always loved mowing the lawn, and you helped your dad put in some sprinklers and a pond one time and you loved it. Pretty soon, you forget all about being a computer engineer because landscaping is your life. This is what Leon Festinger (1957) calls cognitive dissonance: a situation where the individual believes one thing but acts a different way, which results in discomfort. This discomfort is relieved by changing one’s attitudes or beliefs around the conflicting behavior, and the result is an unhappy being. The collective forces this type of compliance onto the individual, and eventually it spreads to all individuals and makes a population unhappy.

When you have an unhappy but obedient collective, the individual is suffering, and when the individual suffers, he will try to overcome this suffering by means he has learned throughout his life. Some things individuals do to cope with suffering is relieving the stress that is caused by it. We know positive ways to relieve stress, but the negative ways seem to be increasing across the nation, and sometimes that stress can kill us. According to the CDC, suicide has made it to the top ten leading causes of death in the country at more than 38,000 deaths in 2010. According to suicide.org, untreated depression is the leading cause of suicide, and depression amongst the population has leaped significantly since the Great Recession of 2008. Americans were hit with home foreclosures, loss of money in the stocks, loss of their jobs, and an out of control government bailing out the banks and corporations that caused the meltdown in the first place. It seemed that during that time, a lot of Americans lost hope, and according to Forbes.com, the U.S. leads the world in depression rates at a total of 9.6% of the population suffering. Compare that to a .8% depression rate in Nigeria, and you have yourself a huge problem. A lot of this depression stems from Americans feeling like they will never get to live the American dream because most of their money gets taken from the government in taxes and they cannot find a job.

When you have collective control over the economy, unemployment rises. Why? Because the key to a collectivist society is getting the individual to depend on the collective. According to U.S. Department of Health and Human Services,  as of January 1st, 2014, almost 5 million Americans are collecting unemployment, 13 million are on welfare, and a whopping 46 million use food stamps. Not including unemployment and food stamps, the federal government uses $131.9 billion of tax payers’ money to pay for these “benefits.” These costs do not even compare to how much tax payers are going to pay for those 60 million non-workers’ healthcare. How is the already stretched and depressed tax payer going to afford that? The answer is that a lot of us can’t afford to without thinking about turning to welfare to help us get by. If this doesn’t constitute as a collectivist-leaning society, I don’t know what would.

Although all of this sounds bleak in comparison to our ancestors’ America of roads paved in gold, we still have a chance to turn our country around to cater to the individual like we once did before. We must stay vigilant in holding our representatives responsible for what they legislate and always stand up for the underdog. We must question the official narrative of everything because it is our duty to keep our government in check, and as long as we keep on asking questions, we will find answers. The Millennial generation grew up with promises of going to college, getting a degree, getting a part time job, meeting our soul mate, getting married, having kids, and retiring at 65. As long as you follow the program, you will succeed, just like your parents did. Now we are finding that these promises were never true, that we have to find our own way that wasn’t promised to us, and that we may have to work until we die. As long as we stay active and voice our opinion, our generation will be the one that leads future generations into getting back to the America with “roads paved in gold,” where the individual soars, and the government stays out of the way.

** If an individual chooses to be a part of a collective, that is different. If we are born into a collective, we did not get to choose.

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What is Capitalism?

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The dictionary isn’t going to tell you. I remember asking a similar question as a child: what is economy? What is capitalism and what is the economy? Before you read any further, erase your mind of any prior conceptions you had of economics because the answer may confuse you. The answer to these questions is simple on the surface: economics is about human action. That’s it. But, human action is a very complex subject. That’s where the complexities of economics comes in, and the intimidation one feels when researching economics. I am here to tell you that economics is not a subject left solely to males or masters, and it is our duty to understand what it is and it is something that affects our everyday lives.

Before we begin to understand what capitalism is, based off of new information, we must first define what capitalism is not. Capitalism is not wealth accumulated through corporations and government subsidies. Capitalism is not going through the government to get a business license, adhering to strict tax laws and government regulation. A capitalist economy does not thrive with the advent of government.

Wealth accumulated through corporations and government subsidies where the economy is controlled by legislators working hand-in hand with these corporations is called CORPORATISM! The first known use of the word, “corporatism” goes back to the 19th century, Adam Muller of France devised an economic system whose collectivist leanings provides protection to the political class but not the individual.  Muller’s thought was that if markets and private property were regulated by the state (a blanket term for government), then human greed could be regulated. However, if you have legislators and corporations in control of the country’s money supply and what certain businesses can and cannot do, then you have created three separate classes: the corporations, the politicians, and the consumer. Bankers and businessmen took hold of this idea, and in the early 20th century with the Federal Reserve Act of 1913, America took its first step towards corporatism by imposing a forced income tax and transferring control of the money supply to a bank whose practices are kept secret, even from Congress. Did you know that the Federal Reserve is not even federal? It is a corporation that created money whose value is based off of the money that is already in circulation — not sound money. The Federal Reserve Act of 1913 was authored by bankers in a secret meeting on Jekyll Island, Georgia, so it is safe to say that this was the first turning point into America’s corporatism (not capitalism).

If you wish to verify any of that information, go ahead. Now you have all of these great ideas and you want to start a business but don’t know where to start. Hey! It’s hot outside, why not go set up a lemonade stand and make some extra change from some thirsty customers? So, you go construct a stand with a perfect banner on top. We will call your business Cold Ass Lemonade. It’s not just cold… It’s cold as shit. Anyway, so everything’s perfect you got your lemonade stand all set up and ready to go with mom’s secret lemonade recipe, and guess what? It’s cold as shit. You made $50 today which makes your total capital gain $20 with supplies and all. Congratulations! You just made money from your first business! Except for that you’re gonna have to pay $3 in taxes, $2 for Social Security, $1 for Medicare, $10 in fees for not getting a business license,  oh and $1 for Ma. Now all you got is $3 dollars. Don’t spend it all in one place. You did not choose to pay these fees, it was chosen for you before you were even born. YOU! set up the stand, got Ma’s help, and made that super sweet Cold Ass Lemonade banner, but the government took $17. That is what corporatism is. Actually, the FCC is going to charge you $2 for your business name and slogan being offensive, so you paid $19 to the government. That’s corporatism. Let’s look at Cold Ass Lemonade’s profits if the government was not involved.

Well, first of all, Ma could be paid more, let’s raise her payment to $5 — the same amount paid in taxes and Social Security. That leaves you with $15. Keep $5 for yourself, and invest the rest in awesome cups for the customers since they said the cups were boring. Now you have a growing business, something that is 10 billion times harder to do under corporatism. Maybe the next day you will make $30 in profit and you can donate some to charity. Ma, your helper, was able to get paid more, YOU were able to be paid more, AND you were able to invest in your business to satisfy your customers. All you had was a recipe, sweet banner, and a stand without having to worry about paying anyone else. As long as you are just and ethical, the customers will come, and you can build your business. This is capitalism. This is laissez faire.

Imposing taxes and regulations on business via the government make it harder for the business to operate because it has to adjust its prices around the taxes and regulation. For instance, if you wanted to still make $5 while paying taxes, then the lemonade price needs to be higher even though the quality is the same. Ever wonder why almost everything we buy is made in China? This collectivist type of regulation raises prices and ENCOURAGES greed due to criminals dodging and good citizens following the regulations… In a REAL capitalist society, only the fair businesses with the highest quality for the smallest price thrives. That’s when you introduce Frosty Lemonade, new competition on the block. Cold Ass Lemonade and Frosty Lemonade will compete for the highest quality product for the smallest price to bring in the most customers. Maybe Frosty Lemonade will put Cold Ass Lemonade out of business, but that is the risk you take in starting  a business. This is the simplest way I can explain capitalism: business ran without government interference.

I guarantee that if you go to your political and economics professors tomorrow and tell them what real capitalism is, they will tell you that you are wrong, that the current system we have is capitalism and that’s why things are so messed up. It is important to stand up for what you believe in. Do not be afraid to challenge authorities such as professors and teachers and to stick out from the crowd. Be a leader full of different knowledge.

If you are interested in learning more about real capitalism, sound money, and the business cycle, visit: http://www.mises.org and click on “Literature.”

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