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16 November 2012 By Jacob G. Hornberger I wish to follow up on my blog post of yesterday,
where I wrote about how the vast U.S. military
establishment is a major contributing cause of
America's economic problems. Let's consider North Korea, a nation in which the
military plays a dominant role in society and the
economy, just as the military does here in the United
States. Like here in the United States, North Korea's vast
military establishment is seen as a permanent part of
North Korean life. The primary justification for North
Korea's enormous standing army is "national security,"
the same rationale for America's enormous standing
army. In fact, just as the military establishment and CIA
here in the United States constantly keep Americans on
edge in fear of a terrorist attack, the North Korean
military and intelligence agencies do the same thing
in North Korea. The primary difference is that North
Korea officials rely not so much on the threat of
terrorism to keep people in a constant state of fear
and anxiety but rather on the threat of a U.S.
military attack on North Korea. There are two undeniable facts about North Korea:
It is a deeply impoverished country, one where many
people are starving to death, and it's been like that
for a very long time. What would American statists say about those two
undeniable facts? They would say that North Korea's poor economic
conditions have absolutely nothing to do with its vast
military establishment or, for that matter, with the
rest of North Korea's socialist economic system. They
would endorse pronouncements by North Korean officials
that the root cause of North Korea's economic woes
lies in famine. Year after year, decade after decade,
famine just happens to hit North Korea, sort of like
the flu. But that's ridiculous. The cause of North Korea's
economic problems isn't famine but rather the
enormous, all-consuming size of the public (i.e.,
government) sector in North Korea, including the vast
military establishment. Recall what I wrote yesterday — that the key to a
prosperous society lies in the private sector, not the
public sector. The private sector is what generates
the wealth that causes standards of living to rise.
The public sector generates no wealth. Instead, it
confiscates the wealth that the private sector is
producing and it spends it or redistributes it to
others. The private sector is the productive sector. The
public sector is the parasitic sector. Thus, as I argued yesterday, were the U.S.
government to confiscate, say, 50 percent of the
wealth produced by the private sector, the general,
overall standard of living would be drastically
reduced. Well, guess what North Korea did. The government
confiscated it all. It destroyed the private sector.
And it spent all the money it confiscated. The
government then gave everyone jobs — in the public
sector. Everyone in North Korea works for the
government. And surprise, surprise: People are
starving to death. It's causation, not coincidence.
What is the solution to North Korea's economic
woes? Libertarians would say that the government
should immediately fire 99 percent of its workforce,
end all of the government's welfare-state functions
(including its versions of Social Security, Medicare,
Medicaid, public schooling, and subsidies), repeal all
rules and regulations on economic activity, impose no
taxes on income, open the borders to the free movement
of goods and people, and dismantle the vast military
establishment and intelligence forces, sending the
troops, along with most everyone else, into the
private sector. What would American statists say about that? They
would be as apoplectic as their statist counterparts
in North Korea! They would exclaim, "Don't listen to
those libertarians. They're too radical. Their
proposal would bring massive unemployment overnight.
People would be dying in the streets from starvation
if Social Security, Medicare, Medicaid, public
schooling, and subsidies were suddenly ended. You're
on the right track here in North Korea. Just tax the
rich. Print up some paper money and spend it. That
will stimulate and jump-start the economy and get
things humming again. Your statist system can be made
to work after all. Don't give up." There is one reason — and only one reason — that
North Koreans remain mired in starvation conditions
and why Americans remain mired in economic stagnation
— statism. It's a horrible, destructive philosophy,
one that brings nothing but dependency, conflict,
fear, and impoverishment to a nation. There is but one antidote to statism, whether we're
talking about welfare statism, regulatory statism, or
military statism. That antidote is libertarianism. Jacob Hornberger is founder and president of the
Future of Freedom Foundation. |