The Economic Difference Of Libertarians

 Whether we vote Republicans or Democrats we get economic chaos.  Why?  Republicans talk in favor of the free market, but what’s the disconnect?  It’s all about ownership.

 Economics is the process of problem-solving.  It’s making choices of how to use limited resources so that the best outcome is realized.  Ownership entails power and responsibility to maximize the benefit of property.  When Republicans and Democrats look at GDP, Unemployment Rate, etc. they politicize the virtue of their economic policies.  For a politician to achieve a political benefit, they must make choices regarding the use of resources, which assumes ownership of the property.  If GDP is a reflection on the political machine in power, and since GDP is the total production within the political jurisdiction, they have implicitly assumed ownership of all property.  They play God.  Even cutting taxes is making a choice to “let” you use your money.

 Both parties theoretically use different approaches to help the economy, both involve state officials telling people what to make and do with their property.  In Socialist nations, the totalitarian state just takes over the property directly.  This usually fails quickly.  For us they’re subtler, nonetheless, both parties are guilty of taking ownership of people’s property.  Here they do it with spending.  In our economy, the spenders of money voluntarily induce the property owners to make and do what they want.  But for the state, getting the money is not voluntary.  Because taxes are so unpopular, they will borrow on the faith that they will tax in the future.  But that prevents some people from getting the opportunity to borrow because the interest rate goes up.  To correct this, the central planners in the Federal Reserve, with “supreme wisdom” decide what the interest rate ought to be and create new money.  This is the subtlest because our money loses value, but the public is unaware of it for a long time. It’s only apparent they have gotten poorer when they can buy fewer goods and services than otherwise. However, if technology and harder work improve goods and services, who knows how much richer they otherwise would be?  Anyway, spending money on credit doesn’t seem like they’re taking control of your property, but make no mistake, they’ve bought what they wanted from your property and then left you with money which is losing value.

 The difference for Libertarians in the economy is Ownership.  The use of your property is determined by you.  What you decide to sell will be judged by the market—how much they give for it.  If you serve your neighbor well, your power and responsibility will grow.  If you don’t, your power and responsibility will decline.  What you decide to keep or give will be judged by only God.  The state has no authority to maximize indicators of the “General Welfare” because property can have only one legitimate owner.  The fuzzy concept of “General Welfare” is secondary to the fundamental issue of Justice. But as a secondary issue, freedom has the best track record for promoting prosperity and reducing poverty.  And there’s no politician to thank for that success.