Posted by
Andrews on Wednesday, February 01, 2012 9:03:03 PM
In "
Why I Am Not A Libertarian" I argued that I did not support libertarian programs because
1, by imposing liberty from the top down, they allowed for the reversal of all those reforms with a single act. To make that more clear, say the Supreme Court rules that the federal government cannot regulate private commercial transactions, what guarantee do we have that when we get a new justice, or even when one of the existing justices changes his mind, that ruling will not be reversed, and we will be back where we are today? It takes a decision by a single person to end freedom. In "
The Benefits of Federalism", "
Consolidation and Diffusion", "
Redundancy as a Protective Measure" and elsewhere, I discussed how distributed power solves this problem, as decisions established over a long period of time, based on trial and error, and enacted in multiple legislatures create a tradition of liberty that would be very hard to uproot. (Eg. It took the government almost a century to uproot state free banking laws, and they had only been in place for about 20 years. -- See "
Stupid Quotes of the Day (January 26, 2011)", "
Stupid Quote of the Day (January 7, 2012)" and "
Those Greedy Bankers.)
However, it struck me recently that there is another problem with the libertarian top down approach, a problem it shares with government centralization, the need to micromanage everything. If the libertarians were to achieve victory, and try to impose freedom from above, they could start by passing some broad policies, but they would then have to face the daunting task of applying those great generalities to a million particular laws and programs
2, and eventually drown in a sea of details. I am not saying it is impossible, that a top down approach could never work, I just think it would require a superhuman effort and a tremendous amount of time, and in the end it would still be far too easy to overlook many programs or laws, leaving remnants of interventionist policies which could eventually be used to justify renewed regulation, forming the nucleus of a new authoritarian system. Or, at the very least, would create policy inconsistencies which critics could use to try to undermine the libertarian regime
3.
Federalism offers an alternative which requires only minimal intervention, though it will take time. Then again, as the libertarian plan would take quite some time to track down and revoke every law and regulation, I don't see the slow nature of federalism as a problem. In addition, federalism offers interim solutions as well. While most people do not want to leave the US, even if they disagree with its laws, many are willing to leave a given state, or locality, and so, even as the country is moving piecemeal toward freedom, individuals can better their lot by moving from less free to more free states, counties or cities. And the pace of change will likely be faster than under libertarianism. A single citizen is invisible to the federal government, even hundreds of citizens are. But on a state level, those hundreds may be heard, and on a local level, even a single voice my have some influence. The more distributed the power, the more influence a single voice might have.
However, my purpose here is not to contrast libertarian and federalist policies, but instead to explain just how minimal the changes are that we need to enact to implement a federalist solution. I grant that they are going to be difficult, as they not only go against many years of accepted practices, but many involve repeal of constitutional amendments, but compared to the scale of the micromanagement involved in a top down libertarian solution, it does not seem so daunting. And, in any case, most libertarian solutions will require constitutional amendments and the repeal of long standing laws as well, and considering the fragility of libertarianism imposed from above, it seems much more worthwhile to follow the federalist agenda.
Before I go on, why don't I simply list the changes I feel are necessary, after which I can go into a little detail explaining why each is needed. The list will be in three parts. First, those changes I see as essential. Second, those changes which are not essential, but which will speed transition and prevent the government from avoiding the return of power to states and localities. Third, there will be a few additional changes which are not required, but which might be beneficial in one way or another, or which might achieve goals which are not, strictly speaking, part of the federalist agenda. (Note, the sequential number is simply for ease of reference in future comments, it does not imply any sequence of events, any order of precedence, nor does it suggest they all need to be enacted. I use it only because, I originally had numbered each list independently, and realized how difficult it was to then tie comments to individual items.)
First, the essential changes:
1. Repeal the 16th amendment
2. Repeal the 17th amendment
3. Repeal the 14th amendment (in part or in its entirety)
Second, those changes which will make the transition easier and more rapid:
4. Disband the Federal Reserve, and leave banking as a private institution
5. Eliminate federal law enforcement
Finally, laws which may be beneficial for reasons not strictly part of the federalist agenda:
6. Repeal the 12th amendment rules for vice presidential elections
7. Return all non-essential federal lands to the states in which they are located
8. Enact an amendment limiting commerce clause action to striking down restrictions on trade
9. Recognize either substantive due process or civil ex post facto on a federal level
10. Strike the general welfare clause, or add an amendment clarifying the meaning of that clause.
The second and third categories could be expanded considerably, but as I am trying to demonstrate how little is required to start us on a path to a free federalist government, I thought it best to keep the lists short. Any other laws or changes to laws would probably speed the transition, or change the direction which reforms take, but as our emphasis is on allowing changes to be directed by the citizens themselves in an organic manner, and to rise from the bottom to the top, with the best ideas being adopted voluntarily by other localities and states, it seems best to try to meddle as little as possible.
So, with that thought in mind, let us look at the ways in which I believe the first three, or at most five, changes will not only improve our government, but I believe will set us on the path to a free market, minimal government and a a truly liberal (in the traditional sense) nation.
Essential Reforms
The following three reforms are those I see as the bare minimum needed to enact a federalist system. Obviously, we could enact all three and still see no changes, as any government is only as good as the citizens who make up the electorate
4. I have described before how even those who claim to want freedom and small government can be deceived into supporting the opposite through inconsistent beliefs. However, for the most part, a federalist system lessens the impact of such inconsistencies, much more than a centralized government, and so, by enacting these policies, we have a much greater chance of establishing a free, minimalist state, or, to be accurate, an association of many free, minimalist states, rather than the more intrusive, increasingly authoritarian centralized state we have today.
1. Repeal the 16th amendment
Certainly, this is not an issue which is unique to my essay, nor even a claim unique to federalism. Many, many people have suggested ending the federal income tax, usually with the argument that "the power to tax is the power to destroy", and almost inevitably in an argument containing not just calls for the repeal of this amendment, but proposals for a new tax scheme
5. I suppose I am not that much different, in that I will include a new proposal for funding, though it lacks a specific method of taxation, but I think in most other ways this argument is unusual, in that I am not so much concerned with the ability to tax, the damage done by taxes, or anything of the sort, my focus is entirely on the locus of power, and the ways in which the 16th amendment disturbed the balance of power.
Prior to the 16th amendment
6, with the exception of some tariffs and a few other fees and other fiscal odds and ends, the federal government was supported by the states directly, each state contributing toward the federal budget in proportion to the state's population
7. This meant that methods of taxation were decided on a state or local level, which provided individuals with a number of different "laboratories" where the prods and cons of each tax method and rate could be examined. In addition, if taxes rose too high, individuals could simply move, without having to entirely leave the country.
More importantly, the system put the state and local government at odds with the federal government. In modern times, the federal government distributes funds collected from individuals (or created through inflation), making it in the interest of the states to favor big spending, larger government, inflation and other harmful policies. If the states directly fund the federal government, they suddenly become champions of fiscal restraint. No state wants to rely on federal subsidies when they realize that means sending the feds $10 to get back $5. A few small states may see subsidies as beneficial, but being small, they would likely lack the votes to make it happen. And so, this manner of funding would not just make the states the champions of reduced spending, it would over time ensure almost all spending was handled on a state or local level.
In other words, so long as the federal government has no direct source of revenue, and the states must sacrifice their revenues to support federal spending, meaning increased federal spending results in either reduced services or higher taxes (and the consequences of those taxes falling on state politicians rather than federal), the states will do all they can to keep power over the purse strings in state or local hands, meaning the federal government will be forced to create more and more distributed power structures.
2. Repeal the 17th amendment
This one in many ways is a companion piece to the first. The original intent of the differing ways in which senators and representatives were elected was that congressmen would represent the interests of their congressional districts. While senators would represent the interests of the state government. This clearly went along with the way in which government was funded, as senators could be seen as keeping an eye on the purse strings, seeing how their state's money was spent, as well as ensuring that popular passions did not eliminate the prerogative of the states. At the same time that representatives (and the justices of the Supreme Court) watched out for the interests of the common man, the senators worked to ensure each state was protected against bad legislation as well.
Now that we have popular election of both, senators are also creatures of popular passions, simply representing the whole state's passions, rather than a specific district. There is no check on popular passions at all, nor is there any tool for protecting state interests, unless those state interests are strong enough to arouse public passions. And that is why I argue we need to restore senatorial election by state governments, especially if we also repeal the 16th amendment. Again, by protecting the states' powers, these new senators will make sure power is slowly shifted from the federal government to the states, and will also ensure that populist rabble rousing or sudden public passions will not move the government to enact bad laws. As they will not rely on popular election, these senators will have the distance to respond with principled positions. And as they will rely on the good will of the state government for reelection, they will also be very likely to closely follow the wishes of the state government.
3. Repeal the 14th amendment
This is not likely to win me any friends, as the 14th amendment is a piece of law mired in controversy, especially with the phenomena of "anchor babies" and other abuses of the citizenship provisions as they are interpreted. Just mentioning repealing this amendment is likely to upset both immigration liberalizers, and many civil rights activists who look on this amendment fondly. Worse, I am also likely to upset the opposite number, as I really require only partial repeal, and the section on immigration is not it.
And so, having upset all sides in the immigration debate, and many racial activists, let us look at what I truly desire.
The part of the 14th amendment I wish to repeal are not the sections on immigration, but rather the parts which apply federal constitutional safeguards to state laws. My goal is for the states to have absolute freedom in the exercise of the legislative abilities, limited only by state constitutions, as well as the constitutional prohibitions upon restrictions on commerce and travel between states, as well as all the rules on funding and electing the federal government, granting the federal government control of citizenship and so on. Basically, I would give the states free reign as far as individual rights are concerned, except, of course, the state constitutional safeguards. It sounds extreme to modern ears, but it fits with the general principle of allowing near total freedom, so that we can discover what is best for us, even if it comes from unexpected, even troubling, places. Thus, if one of our constitutional guarantees is wrong, or is written in such a way, or interpreted in such a way, that it does more harm than good, by freeing states from that restriction, we can discover where the problem originated
Some might be horrified at the thought of states free to violate civil rights, but there is one safety valve, or rather there is one overt safety valve and a huge, implicit one
8. The overt safety valve is the federal government's role in ensuring the free flow of commerce between states. As commerce requires freedom of movement as well, this would seem to ensure individuals would always have the freedom to relocate. States might want to go nuts and enforce a total lack of rights, but individuals would have the option of flight. And that would create the implicit safety valve. If a given state strays too far from freedom, enforces restrictions individuals find unacceptable, money, trade and citizens will flow outward, taxes will dry up, representation in congress and presidential elections will vanish, and, if the government survives the backlash, it will become a marginal power at best.
Useful Reforms
The following two reforms are not required for the creation of a federalist state. In theory, enacting only the first three changes should be enough. However, that assumes that, at some point, the pressures from individual states will result in these two changes taking place. Thus, enacting these at the beginning will save a considerable amount of time. In addition, as both of these relate to powers of the federal, rather than state, governments, these are changes that would be difficult and time consuming for a federalist system to make
9. As a result, these reforms may end being made piecemeal, or not completely made, leaving remnants around which centralizing and interventionist changes may form, making it not just a question of speed and efficiency, but also a possible preventative measure to enact these two changes.
4. Disband the Federal Reserve, and leave banking as a private institution
Technically, a federalist government could coexist with our present Federal Reserve system. Of course, with states having total freedom over matters not related to defense, barriers to interstate commerce or or diplomacy, states could enact local banking laws, or even return to a private gold standard within the state
10. In all likelihood, such changes would slowly undermine the Federal Reserve, and eventually end it. However, there are a few good reasons to hasten this process and eliminate the Federal Reserve at the outset.
The primary problem of the Federal Reserve is that it is granted the power of acting as legal tender. It is questionable how this would work under a true federalist system, as it would seem the states would have the power to create their own currencies, or their own banking laws at the very least, but doubtless the Federal Reserve would attempt to cling to this power in some form, if not remaining the sole legal tender, at least remaining the sole tender recognized by the federal government for any payments, which would grant the currency a fair amount of clout.
Provided the dollar as issued by the Federal Reserve remained a viable currency, then the Federal Reserve becomes a much bigger problem, as the ability to inflate, and the ready market for government debt, would make it very easy for the federal government to circumvent the state control over its purse strings. It may not be able to inflate enough to cover all debts, but a combination of state funding and inflation would likely leave the government able to spend as much as it wishes, and certainly would give it a great deal of freedom from state threats of cutting off funding.
Finally, there is the consequence of such inflation. If the currency remains viable, and inflationary financing is used, then there will be a general erosion of purchasing power, as well as all the other ills associated with monetary expansion. As such expansions strike unevenly, and since the government can, to some degree, control which states or regions will benefit from getting new funds first, and which will be harmed by seeing little or none of the new currency, inflation could easily distort the public impression of which state policies are working and which are not. Intentionally or accidentally, inflation could convince the public that there are positive economic benefits to policies which are actually doing harm. And thus inflation, and inflation alone, could completely short circuit one of the greatest benefits of federalism
11.
5. Eliminate federal law enforcement
We often forget that prior to 1934 there was very little in the way of federal law enforcement. The FBI existed for some time before 1934, but could only act in most cases if requested by state officials
12. Without a national paper currency, there was little call for counterfeiting laws, and thus the Secret Service was imply involved in presidential protection. There were military police, and some federal marshals providing prisoner transport and the like, as well as a few provisions for Indian reservations
13, but for the most part, law enforcement was handled by states, and crimes across multiple states were handled according to extradition agreements between the states. And it made sense, as there were almost no federal crimes. If we exclude treason, even the crimes handled by the early FBI were normally just interstate versions of state crimes, such as kidnapping. Until the Mann Act, there just weren't many federal crimes to enforce, and so there was no need for federal law enforcement.
Hopefully, a highly distributed federalist system would return to the same situation. With the federal government's scope greatly reduced, there simply would not be much use for federal law enforcement
14. However, that does not explain why I would suggest eliminating federal law enforcement early would be useful. After all, if there is no need for federal police, won't they just fade away on their own? What purpose would it serve to eliminate them in advance?
The reason I think it best to eliminate them early is because of the example of antitrust laws, or tax laws, or a host of other regulatory laws which went from being civil offenses to being criminal ones. My worry, is, as with the Federal Reserve, federal law enforcement can be used to do an end run around federalism and reassert control over various economic activities. With or without regulatory agencies, it might be possible for the federal government to view certain commercial activities as somehow rising to the level of crimes, and thus the existence of the federal police will be a strong temptation to criminalize civil offenses, or even regulatory matters, and retain power through the federal law enforcement role. By eliminating them in advance, it will remove that temptation and return to the states the not inconsiderable government authority related to the criminal law.
Optional Reforms:
The following five reforms are not required, but definitely will help in moving from a central to a distributed government. Some may be less directly related to federalism than others. Most of these changes are related to ensuring economic liberty on a federal level, or preventing the federal government from interfering with state independence, but a few have other motives. I will discuss each in more detail in the following individual descriptions, making a case for why each would be beneficial. However, I have listed them as "optional" because they are just that, changes that would help the government on its way to a distributed, federal system, but they are not essential, nor even as important as the two previous reforms. They would be nice to have passed, but the movement toward a federalist system could proceed without them.
6. Repeal the 12th amendment rules for vice presidential elections
This one is probably the most difficult to justify, as it requires a significant change to our manner of thinking. And, it also fights the most remote potential problem. Still, as this final section represents my wish list, I figured I should include it. Not just because I think it would be a good reform to enact, but also because it gives me a chance to discuss parties in politics, as well as a few concepts important to maintaining a minimal government.
The changes to vice presidential elections were basically a reaction to the formation of permanent adversarial parties and the birth of a two party system. The original system was developed by drafters who conceived a system either free of parties, or where, at most, there would be small, ad hoc factions which would not merit government recognition. Unfortunately, those same drafters then went on to form quite permanent and substantial parties which now play a tremendous role in politics and enjoy complete government recognition
15.
I have discussed the two party system before
16, mostly in terms of comparison to parliamentary systems, and almost entirely in the context of a central government. I have not taken the time to examine it in comparison to a system without recognized parties. And that is my thought here, that it might be beneficial to begin limiting the importance of our two major parties as we move toward a localized system, and this would be a good first step.
I know many are dubious, wondering why I would want to eliminate parties, and if it would be beneficial, or even possible. However, I think there is a good argument to be made.
Our two party system may have existed since the start, but looking back through history, it was not quite as rigid prior to the birth of our centralized state
17. The vast majority of viable third parties existed in the 19th century, for example. Not to mention that the two major shifts in the two major parties were also during the same century. In addition, for half of the nineteenth century the Democrat party was split regionally into at least two factions, sometimes more. Only with the growth of centralized power did the parties come to solidify into their present state, and that is because, with federal issues the only ones that mattered, each party needed to have a single position, or risk losing to the other side. Previously, when state issues were more significant, local parties often differed with the positions of the same party in other states.
My thought is this. As the states become more significant, local issues will predominate, and what is important in one state may not matter in another. More, in one state, it might be common for people holding position A to support position B, while in another state, those holding position A oppose position B. With states mattering more and federal government less, it will become more and more difficult to formulate a single nationwide platform which also answers state needs. Likely, rather than national parties, a federalist system will see the birth of numerous local parties
18. Likely, for purposes of congressional elections and presidential, certain state parties will form some sort of coalition, but it is doubtful whether it will be possible to form coalitions between parties in all 50 states, or anything close. And thus, it seems more than likely our federal government will see either the birth of multiple parties, or else the death of parties, with each state delegation representing the interests of the parties in that state, forming alliances with other delegations on individual issues, rather than along party lines.
And that is why I suggest this reform, as it eliminates the an implicit recognition of the two party system from the constitution. If we leave it in place, and continue to tacitly recognize the two party system
19, then I foresee the two parties struggling to maintain their privileged position, impeding the growth of local parties. Yes, as central power declines, the importance of the two predominant parties will decline, but it will be much slower if they retain special privileges. And thus I would prefer to see this reform put in place.
As I said in the introduction, I don't see this as essential, but I would think that a step away from the national two party system would be helpful, in that it would free the individual states to establish their own parties independently of the historical parties that existed during our centralized, two party system.
7. Return all non-essential federal lands to the states in which they are located
Compared to the last post, this one is quite easy to justify. Federal lands are dangerous to federalism in two ways, both of which we already discussed. First, by giving the federal government control over large swaths of many states, they give the government a lot more influence over those states than it should have. In the case of some less populous and poorer states, it also grants the federal government considerable economic influence
20. Second, because federal lands require federal policing, extensive federal lands will perpetuate federal criminal law enforcement, which I discussed already as a danger to state independence.
Clearly, there are necessary federal lands. The government needs office buildings, military bases, storage for records, embassies and consulates overseas and a few other practical facilities. All other lands can be returned to the stares in which they are located, which will allow those states to decide what to do with them. In the case of parks, individual states can take them over, or coalitions of states for those which cross state lines. It is then up to the states to decide whether they are going to try to maintain parks, or sell them off to private owners
21. All other federal lands, which include huge patches of the western states, will simply be divided among the states. In this way, we will eliminate all sorts of potential trouble.
Of course, if this reform is not enacted, most likely it will come about by default. With the exception of a few self financing parks, it will be quite expensive for the central government to maintain so much property, and the states are likely to be reluctant to allocate funding. As a result the federal government will probably begin to divest itself of the less important properties, and we will, for the most part, achieve these end results anyway. However, a few properties, such as self financing parks, will probably remain in federal hands, ratehr than state, which is why I would suggest enacting this reform explicitly, rather than waiting for it to happen through incremental federalist reform.
8. Enact an amendment limiting commerce clause action to striking down restrictions on trade
This one should not have to be enacted explicitly, in fact it should not be needed at all. However, as the government has expanded the commerce clause to mean whatever it wants, it may be necessary to define it explicitly, which would probably require an amendment. Of course, we could rely on the courts to respect this obvious definition, but they have done so badly in the past that it is risky to rely upon them acting sensibly. And so, to prevent anyone from ever abusing the commerce clause to extend federal powers again, it seems sensible to enact such an amendment.
9. Recognize either substantive due process or civil ex post facto on a federal level
Each of these principles were offered up at one time or another in the 19th century to prevent the government from enacting a law which would remove an existing commercial right. Civil ex post facto was akin to criminal ex post facto. Under the criminal version, a man cannot be tried for a crime committed before the act was made criminal. Under the civil version, any contracts or commercial ventures preexisting a regulation would effectively be "grandfathered" and allowed to continue. The theory did not enjoy broad support, and eventually ex post facto was limited explicitly to criminal matters, so a second effort was made using the idea of substantive due process, which, again, tried to protect preexisting rights by arguing that an individual could not be deprived of such rights without due process, and simple passage of a law did not constitute due process.
I would argue that recognizing either principle would be a tremendous advantage on a federal level, especially if the last reform, limiting the commerce clause, were not enacted. By effectively preventing regulation from touching existing relationships, it would make economic legislation very difficult. Even if regulation were attempted, by creating two classes, those who were in the market and exempt, and regulated newcomers, it would make regulation seem so patently unfair it would effectively end federal economic regulation.
Of course, I would also like to see states recognize this, but it would be contrary to my federalist plans to force such a regulation upon them. And so, for the moment, this would be enacted only on a federal level. I would hope that some states might adopt such principles, and, when the benefits became clear, others would follow, but, true to my federalist beliefs, I would shy away from enforcing this practice on any states or localities, leaving it to them to discover the truth for themselves, to either confirm what I believe, or prove me wrong. In either case, I am confident the best, most beneficial policy would end up getting the widest support, eventually
21,22.
10. Strike the general welfare clause, or add an amendment clarifying the meaning of that clause.
This is the other back door that was used to expand federal power, perhaps used even more than the commerce clause, though the commerce clause was used first. I won't repeat all of the debate about the true intent of the clause, as it has been covered ad nauseam. Clearly Madison thought it was limited by the enumerated powers and the rights of the states, but that does not tell us what the intent of the other signers was, so we really can't tell whether it was imagined to be a backdoor by the majority of signers or not. What we do know is that, if we try to create limited, distributed government, we cannot allow such a broad, all purpose clause to remain, at least not as long as the courts and government are willing to give it that expansive reading.
Of course, there is always the one saving grace of my plan, the state control over the purse strings. Without a source of federal income separate from the states, even with the ability to enact laws, the government might find itself without the funding to carry out the laws it enacted. So, there is hope that even without removing or clarifying this clause, it will be toothless in practice. However, there is also the risk that states will back down when faced with a standoff against the federal government, and so it may be best simply to remove the temptation entirely. But, if such a reform is not enacted, we could still see effective federal government created nonetheless.
Conclusions:
There remain a few odds and ends
23 that need to be addressed if we are going to have a truly free, diffuse government, but many will resolve themselves through the internal mechanisms of federalism. And for the few that do not will see themselves swept away as the federalist tendency toward smaller, more localized power becomes a trend and people begin to preemptively eliminate large, centralized power centers, even before the natural mechanisms of federalism would. Yes, it is an optimistic view, but the few times in history we have had largely free government, say the Jefferson through Jackson administrations, especially the Jackson, as well as the period from the end of the civil war through the 1880's, which was not free, but saw a general tendency toward less government in many areas (notably excluding banking), during such eras we have seen the movement toward freedom begin to gather momentum. Yes, in both cases I mentioned contrary forces eventually won out for a variety of reasons
24, but had there not been these other pressures, it is easy to see how freedom could ahve developed a momentum of its own, and pressed us toward ever more diffuse and minimal government. And we can only hope that taking some steps in that direction will once again create such a momentum.
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1. Obviously, there are other reasons I do not support specific libertarian groups (see "
The Tragedy of the Creative Commons"), such as those that espouse conspiracy theories ("
The Appeal of Conspiracy Theories", "
Mumia, the DaVinci Code, Full Body Scans, and Loose Change - How Conspiracy Theories Arise", "
All Conspiracies Great and Small") or excessive fear of the state ("
Stupid Quote of the Day (January 27, 2012)", "
Stupid Quote of the Day (January 23, 2012)" and "
Stupid Quotes of the Day (January 24, 2012)"), not to mention the absurd "libertarian left" ("
The
Libertarian Left", "
Revelation From Bottom Feeding","
The Failure of Wikipedia", "
Copyright as Politics", "
Some Libertarian Analogies") and the isolationists who call themselves non-interventionists ("
Why Ron Paul Scares Me", "
Stupid Quote of the Day (January 5, 2012)", "
Rational National Defense", "
A Perfect Example"). But I am thinking here not of specific factions so much as the mainstream libertarian policies to which almost all of these factions subscribe. (Except, possibly the libertarian left, as I can't imagine how they reconcile left wing politics with minimal government, and their writing is nebulous enough I have yet to figure out exactly what they believe, if they even know.) To see more of my thoughts on the problems with various libertarian factions see also "
Reticent
To
Adopt a Title", "
A Possible Designation" and "
The Right Identity".
2. People believe passing broad laws will resolve everything, but that is far from true. Even if every regulatory agency were disbanded, the regulations would still remain. Even if laws are passed prohibiting one form of intervention or another, the laws that go contrary to those broad policy statements will not be instantly repealed, they will either have to be formally repealed, or else test cases will have to be brought to court. and in many cases dealing with regulatory matters, the nature of the regulation makes it difficult to bring a case to court. Eventually, perhaps every law could be subjected to one or the other, but until then many authoritarian policies would remain in effect.
3. If anyone doubts this would happen, read any of the professional pundits' columns and check out the comments. In every one there are a host of liberals criticizing each Republican running in the primaries by "just asking questions", pointing out supposed inconsistencies between their statements and actions, or pointing out when they had acted in a way contrary to the wishes of their conservative supporters. The same could easily happen if libertarians failed to completely eradicate all interventionist policies.
4. See "
The
Single
Greatest
Weakness", "
What
We
Deserve", "
Who
Is
To
Blame?", "
Don't Blame the Politicians" and "
Doing Something".
5. Most of these arguments recently have been centered on the FairTax, which I examine in my posts "
An Interesting Analogy, "
Why
I Dislike the FairTax
", "
The
Best Argument Against the FairTax
"" and "
The FairTax's Liberal Assumptions". I have done this myself in my post "
The Foolishness of Corporate Taxes", criticizing all taxes not assessed against individuals, as well as "
What we need", "
Making Taxes Hurt", "
The Benefits of Federalism" and "
A True Conservative Platform", arguing that the flat tax is the best federal taxation scheme, if we must have one. I also wrote "
Reframing the Debate" (as well as a note in "
One Sided History") in favor of the poll tax, though I somehow doubt that tax scheme will ever be revivied due to the way it was used to prevent freed slaves and others from voting.
6. As I mentioned in "
Bad Economics Part 8", "
The Benefits of Federalism", "
Upcoming Post" and "
The Best Historical Example", there was a Civil War era income tax, even without the 16th amendment, so income taxes are possible without this amendment, or at least were once seen as such. (This is important to recall when FairTax advocates mention predicating their tax on the repeal of the amendment, it is still no guarantee against the FairTax coexisting with an income tax.) As I think in modern times an income tax could not exist without the 16rth amendment, I do not make provision for an additional amendment banning an income tax, but if it should seem the federal income tax is coming back, then perhaps such an amendment would need to be added.
7. This is where many people fail to understand the "3/5 of a person" description of slaves. The number had nothing to do with the inherent "worth" of slaves, but was an accounting figure concerned with both representation and taxes. Slave states, for obvious reasons, wanted slaves counted for representation in congress and the electoral college, and not for taxes, while free states wanted slaves excluded from congressional and electoral figures, but included for taxes. Obviously, neither side would agree to the other's plan, and so, in the end, a compromise was reached which was slightly more favorable to the slave states, counting slaves as 3/5 of a person for both purposes. Ironically, while many get offended by slaves being counted as less than a whole person, had slaves counted not at all, it would have strongly favored the abolitionist cause. Counting slaves as whole persons, on the other hand, would have favored slave owners. All of which shows how incomplete (and anachronistic) understanding of issues, as well as reacting emotionally without full understanding, can lead to quite improper or even harmful, reactions.
8. This also ignores the safeguards within each state, in the form of state constitutions, whatever state judicial review exists and all the other safeguards each state chooses to build into its government. I am here assuming the worst case scenario of a state which eliminates all such protections and decides to treat citizens as property of the rulers.
9. Starting from scratch, federalist systems would make it very difficult for the federal government to obtain such powers. But working from an existing state of affairs, it is much more difficult for the federalist system to reduce the power of the central government. Control of the purse strings and senate representation helps, but it takes time and a lot of effort to enact reforms that totally eliminate federal powers. I am still counting on such reforms for most such improvements, but in these two cases, where the changes are more important than most, I think it best to eliminate them from the start.
10. Technically, states could enact whatever legal tender laws they wished, and could establish a gold, silver, platinum, technetium, or copper standard. They could restore the use of tobacco or wampum. They could even revive foolish ideas such as colonial era land banks, or adopt the policies of Silvio Gessell, or monetarist cranks who proposed money with a gradually decaying value. Anything would be possible, within the limitations of state constitutions. On the other hand, they would not be able to force this currency on other states, so there would effectively develop a competition between differing state currencies, with Federal Reserve notes being retained only for payments to the federal government, or use by whoever still found them acceptable.
11. There are many analogies in real life. For example, the partial deregulation of the Savings and Loans, after they were burdened with low rate loans during an inflationary period, and while providing them with a safety net allowing them to gamble without risk, led directly to the S&L crisis, but the blame for the collapse was laid, not at the doorstep of government, but placed on deregulation. In a similar manner, inflationary harm could be blamed on productive policies, and destructive policies could be made to appear beneficial. See "
How To Blame the Free Market" and "
Government Quackery", among others.
12. There were exceptions, such as kidnapping across state lines, but they were relatively rare.
13. Indian reservations remain a troublesome area for any proposal. I have long held that Jefferson's solution, creating sovereign pseudo-states within states, but without granting them full state status, was inherently unworkable. Either tribes should have been granted territories which would function as sovereign states, equal to the other states, or else the tribes should have been integrated into the states in which they resided. However, as the agreements were made, and the reservations do exist, there is now the problem of how to handle them. As they are often not contiguous pieces of land, and sometimes are entirely within the limits of a single state, creating independent states out of them would be difficult, not to mention that many reservations with very small populations would give absurdly great senate representation to a very small group of individuals. We could privatize the land, either distributing it in shares to the inhabitants, or give it in entirety to the tribal governing body, but that would create some issues as well, for example, with states which forbid gambling. So, for the time being, it remains a thorny issue, which I shall likely discuss in a future post, or series of posts.
14. As I shall discuss in point #9, federal lands are a problem as well. In many states in the southwest, federal land is such a considerable portion of the state that federal law enforcement has greater jurisdiction than state police. Of course, as I suggest reducing public lands, this may be less of a problem. What public lands remain, such as military bases, can be handled by military police. Government buildings, such as the White House and Capitol, can use their own security, and the few remaining bits of federal land can devise their own solutions.
15. Just a few examples are the way government campaign financing is distributed, the way committee seats are allocated in congress, the state organization and financing of primary election, the very existence of recognized primary elections, the differing laws for campaign contributions given to a candidate and those given to a party, and probably a few dozen more. Granted, this recognition is available to parties beyond the two major ones, but it takes quite some effort to be recognized as a legitimate party, and thus, effectively, the two party system is written into law, with a few allowances made for a third party.
16. It is mentioned in passing in "
How Conservatives Defeat Themselves" and "
How Not To Improve Elections", though mostly to suggest that I should write a more thorough examination of the topic, comparing parliamentary and two party systems.
17. The solidification took place at the same time the Democrats and Republicans changed their characters in the 1890's. Which also marks the beginning of large scale centralization. See "
The
Best
Historical Example", "
A
Passing Thought", "
Rethinking
the
Scopes Trial", "
The
Political Spectrum", "
Child
Labor
and the Industrial Revolution" and "
Mistaken Perceptions of the Industrial Age" .
18. Our familiarity with a two party system, in addition to our preference for confrontational systems, will likely result in two parties arising in each state, at first probably even retaining the names "Democrat" and "Republican". Over time, some states may develop additional parties, see these two parties fragment, or just see the names change as the existing parties diverge too much from the tradition behind their names, but it seems likely that many states will, most of the time, have a two party system, with a few outliers experimenting with multiparty, or party-free systems.
19. There are other issues which must be addressed in this context as well, such as federal campaign funding. Of course, if we eliminate such funding, then there is no problem. There are other issues as well, such as congressional rules in a system without two parties, or what will replace primaries, but we can deal with those in another essay.
20. Many are upset by my opposition to federal parks, but I have to say that parks are no different from welfare, social security or any other federal program. If private citizens are unwilling to pay for such parks on their own, then why should we create them for the benefit of a minority, when the majority would want to spend money differently? And if they are widely supported, then wouldn't there be a private owner who would create such parks for profit? Or charitable groups willing to contribute to buy and maintain unspoiled land? If people aren't willing to spend their own money, by what right do they seize the money of others through the government to spend on their own pet projects? Conservatives should understand that, but, sadly, when it comes to national parks, many seem to forget their principles. But just because you like something does not exempt it from the same ethical guidelines as everything else. Ethics are either universal or they are pointless. (Cf "
In Defense of Zero Tolerance, or, And Examination of Law, Common Sense and Consistency")
21. Many criticize capitalism and the free market for taking too long to correct problems. This is a mistake for many reasons, not the least of which is many supposed problems are nothing of the kind. ("
Misunderstanding the Market", "
Utopianism and Disaster", "
The Threat of Perfection", "
Life Is Not Fair - And Trying To Make It So Makes Things Worse") However, even when they are problems, it is precisely this slow pace of change which is the strength of such a system. By acting slowly, we have more than enough time to understand what side effects any given change might have, and also have adequate time to reverse course should it prove less beneficial than imagined. ("
Traffic Lights, Predictability and Conservatism", "
In Praise of Slow Changes", "
Predictability", "
Expectations",
"Conservatism, Incremental Change and Federalism", "
Humor and Nightmare") Authoritarian states may act more swiftly, but they have a host of other problems, so even if we decide speed is somehow desirable (though I still disagree), the speedier solution of state enacted changes is far too costly. ("
"...Then Who Would Do it?"", "
With Good Intentions", "
In The Most Favorable Light","
Government Quackery")
22. A good discussion of these topics can be found in Bernard Siegan's
Economic Liberties and the Constitution. The few mentions to current events are thirty or more years out of date, but, like Henry Hazlittt's
The Inflation Crisis, most of the work is either history or theory, and so the small amount that is now dated is not really important. On the other hand, reading about the problems of several decades ago does make you realize how quickly and how much things have changed.
23. The first thing that comes to mind is whether the federal government can enact duties, quotas and other controls over foreign trade. Clearly, a free market would require the government to eschew such activities, but it is arguable whether such things should be banned, or whether we should wait for the federalist system to resolve the question through conflict with the central government. I admit to not having considered all such smaller questions, and so I may need to revisit this post to wrap up a number of smaller questions.
24. In the case of the Jefferson-Jackson era, there were two. First, the recession resulting from the final liquidation of the Second Bank of US was blamed on the market and encouraged a slight movement toward intervention. But much more significant was the issue of slavery, as well as the conflict between centralization and state's rights, which would continue to cause problems until both were decided in the Civil War. ("
The Best Historical Example") The period ending in 1890 was sabotaged by government meddling in the financial sector. Thanks to periodic panics and other economic woes, populist movements and labor agitation gained a foothold, allowing progressives, reformers and others to create interventionist programs. ("
A Passing Thought","
Stupid Quotes of the Day (January 26, 2011)")
==================================================
POSTSCRIPT
My thoughts can be seen in earlier forms in "
Why I Am Not A Libertarian", "
The Benefits of Federalism", "
My Vision of Government", "
My Vision of Government Part II
", "
Monetary Issues Made Simple Part I", "
Monetary Issues Made Simple Part II
", "
Prelude", "
What I Want in a President", "
A True Conservative Platform", "
An
Analogy For Government", "
Man's
Nature and Government", "
Misunderstanding Democracy", "
Power and Disorder", "
Symmetry
and
Asymmetry
in
Government", "
Consolidation and Diffusion", "
Negative
and
Positive
Rights", "
In
Praise
of
Contracts", "
Greed
Versus
Evil", "
Volunteer Fireman, Barn Raisings and Government", "
Collective Action and Government", "
"...Then Who Would Do it?"", "
Perverting Self Interest", "
Third Best Economy", "
The Other 99%", "
Planning For Imperfection", "
The Threat of Perfection", "
Utopianism and Disaster", "
How
the
Government
Corrupts
Relationships", "
Life Is Not Fair - And Trying To Make It So Makes Things Worse", "
Government Versus Culture - A Forgotten Distinction", "
Liberalism, Its Origins and Consequences" and "
The State of Nature and Man's Rights". There are obviously many, many other essays on these and related topics, many of which can be found via the links in the essays mentioned, but some of which remain unmentioned. For those truly curious, Google provides a good alternative to trudging through several hundred pages of old posts going back almost 5 years.
Update (2012/02/02): I can't believe I forgot it, but there is one additional federal power, the control of citizenship. States can control what constitutes state residency, but the federal government controls national citizenship. There is a small problem if a situation arises where one can be a state resident without national citizenship, as it is unclear whether one could then vote for state representatives in congress (clearly presidential elections are not allowed), but those sort of details can be resolved with a simple piece of legislation. (Personally, I am inclined to deny such resident aliens a say in any federal offices, though their vote on state officials, if such a vote is allowed, does still indirectly control senate representation, but anything else, be it congress or president, seems best to reserve for full citizens.)