The Federal Government's Role in the Economy
How Karl Marx (and the liberals) have won.
The Federal Government's Role in the Economy
In order to understand how the federal government operates currently, you must first surrender your reason, logic, and your cognitive faculties. The expansion of the scale and scope of the federal government is a middle finger to the hard working Americans who have no choice but to participate in the purely Marxist principles we are currently operating under. I happen to be fairly well-read in the Constitution, and nowhere in that document does it say it is congress’ responsibility to treat American citizens like the ancient goddamn Egyptians. This principle of governance does however, find its roots in the most tyrannical document to torture the simple minds of liberals everywhere: the Communist Manifesto by Karl Marx. Although Marxism is a political ideology, I find it appropriate to focus on the economic impact of the Marxist ideology, and how it relates to contemporary American politics.
The Communist Manifesto (or as I like to call it, “The Tyrant’s Guide to Raping an Entire Society”) outlines what a capitalist society must do to advance to the communistic utopia. Marx calls this outline the “Ten Planks of Communism.” Six of the ten planks are purely economic: abolition of private property in land and application of all rents of land to public purpose; a heavily progressive or graduated income tax; abolition of all rights of inheritance; confiscation of the property of all emigrants and rebels; centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly; and equal obligation of all to work. Establishment of industrial armies, especially for agriculture. This bullshit was written in 1848, which is during the Second Industrial Revolution, so fuck knows if Marx paid any attention to the greatest increase of productivity and standards of living in the history of mankind (not to mention the diminished need for slave labor [well, I just mentioned it]). Regardless, the ideas presented in the Manifesto gained a considerable amount of traction in 1913, with the formulation of the Federal Reserve Bank, which is a private bank with the power to manipulate interest rates and creates money with as much prudence as a dog when it’s time to “go outside.”
Additionally, in 1913 Congress voted in favor of the federal income tax (which happens to be heavily progressive). Punishing success is the same as rewarding failure (see "No Child Left Behind"), but here in America if you ain't first, you’re last. Continuing with 1913, the Department of Labor was created, who’s mission statement is “to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights” (dol.gov). The Department of Labor takes responsibility away from employers to provide an adequate working environment, and eliminates the flexibility employers have to experiment with varying their operating techniques. Employers have an interest in improving their working conditions, or else no one would work for them. If an assembly like worker thinks that the conditions at the Chevorlet plant are shit, they might consider taking their skills to Ford or Ram. Competition, not bureaucracy, is the root of true progress.
The Revenue Act of 1916 supplied the Estate Tax, which confiscates an initial sum, plus a percentage of the remaining funds. They use this money to purchase more server space to better track the financial transactions of conservative groups (oops). So if I die with $1,000,000 and designate all of it to my children, the government takes an initial sum of $348,800 plus 40% of the remaining $651,200 leaving them with $390,720. (And some people say tax evasion is inexcusable.)
So back to the budget; for FY 2012 the government ran a budget deficit of $1.087 trillion, which was improved in FY 2013 with a deficit of only $680 billion. The current federal debt is $17.7 trillion and rising. Annual spending is at $3.5 trillion, which would make a founding father shit his pants perpetually until the galaxy imploded. Unfunded liabilities (medicare/medicaid, social security, prescription drugs, etc) amounts to over $100 trillion. The government spends more than it takes in, by a huge margin. If you asked your credit card company to expand your line of credit by 20% annually, and you were only paying your interest payments, they would burn your house down. When the government does it, it’s business as usual. The Constitution is very clear about who controls spending (Congress), and what they can spend it on (Article 1, Section 8). The Necessary and Proper Clause has been construed to the point that it dilutes the restrictive principles stressed in all other articles of the Constitution (see Article 2). What will it take to unfuck this mess?
In order to restore this Marxist-era America to one which respects economic liberty, we must do three essential things: rescind all legislation from the year 1913; adopt the Balanced Budget Amendment; and eliminate the Capital Gains Tax. If you give the federal government less money, they will have to prioritize what they spend it on, and the hope is that they would spend money on what the Constitution authorizes them to (like the EPA? No, asshole, not the EPA).
As stated previously, the year 1913 was a great year for tyranny. The Federal Income Tax, The Department of Labor, and the Federal Reserve are all ideas expressed explicitly in the Communist Manifesto, though not exclusively. All three of these institutions represent a centralization of power to the federal government, none of which are granted to it by the Constitution. None of these institutions are necessary nor proper; they all strike at the heart of free markets and capitalism either by manipulation or coercion. It took 100 years to institutionalize many of these big governments entities, and it may take many years to readopt the Constitution, but it must be done if we want to continue touting how awesome we are.