Debt Limit “Crisis”: Opportunity for Disillusionment

by David E. Shellenberger on July 29, 2011

Shameless politicians and mindless media demand our constant attention to the frenzy of the current “crisis”–the claimed need to raise the federal debt limit. Instead, turn off the television, turn off the radio, and smile a peaceful smile.

Rejecting Disappointment

Do not be disappointed with the behavior of politicians as they act their way through the charade of solving the problem of their own making. If you are disappointed that President Obama is dishonest, petulant, and arrogant, you have not been paying attention. If you are disappointed that the House Republican leadership is working to accommodate an increase in the debt limit, you mistake the Republican wing of the Big Government Party as a friend of the public interest.

Do not be disappointed that the government failed to keep spending within the existing debt limit. Yes, since assuming office, Pres. Obama wasted $787 billion on a “stimulus” bill focused on maintaining bloated state and municipal budgets; led the creation of the ObamaCare monster; bailed out General Motors and Chrysler; and sent 30,000 more troops to Afghanistan. And yes, just four months ago, in March, he launched the war in Libya.

Do not be disappointed that, as the debt grew, and the alleged deadline for increasing the debt limit approached, neither Congress nor the White House called for ending any of the wars, winding down the military empire, ending corporate welfare, modifying social welfare programs, or closing any departments or agencies. Do not be disappointed that politicians use misrepresentation and fear mongering to seek approval of higher debt.

 Embracing Disillusionment

Disappointment is unhealthy. It encourages the government to keep on trying to fool you. There is a better way to cope with the non-crisis of the debt limit: disillusionment.

The Illusion of Government’s Role and Intentions

Shed any remaining illusions that the federal government serves you. It does not. Politicians and bureaucrats serve themselves and special interests. Expect this, and you will not be disappointed.

Expect too the behavior that follows from the existence of unbridled central government. Expect incompetence, since the central government is by definition a monopoly, ruling by violence and the threat of violence. Expect parasitism, since the government lives off the wealth created by taxpayers. Expect predation, since the government benefits from wars and metaphorical wars. Expect broken promises on entitlements you were told you paid for, since politicians have the incentive to promise, and the inability to deliver.

The Illusion that “We” are the Government

The politicians who entreat you to approve their efforts—their “hard work”—to deal with the debt limit, regularly tell you that the problem is yours. Consider Pres. Obama’s July 25thAddress to the Nation”:

 “For the last decade, we’ve spent more money than we take in.

 ….

 [I]f we stay on the current path, our growing debt could cost us jobs and do serious damage to the economy.  More of our tax dollars will go toward paying off the interest on our loans.  …. And we won’t have enough money …”

Did “we” spend this money, or did the government? Did “we” create the mountain of debt, or did the government? Are the loans “ours,” or the government’s? Is “the country” in trouble, or just the government? (“Government” is used here as synonymous with “state,” as is common in the U.S. See Tom G. Palmer’s “The Case for Ordered Liberty Without States,” including the definition of “state” by Max Weber.)

The government asks us to accept the notion that it is “us,” and that the mess it has created is “ours.” It also would like us to believe that its interests are our interests, and that we are dependent on its ability to survive, to take an ever-increasing share of our wealth, and to steal more and more of our freedom.

Reject this illusion. As Murry N. Rothbard observed in Anatomy of the State, “The useful collective term ‘we’ has enabled an ideological camouflage to be thrown over the reality of political life.” Government is an outside force; it is not us. It demonstrates this daily, as its actions serve its need for its own growth and its own power, at the cost of individuals’ well-being and freedom.

The Illusion of Politics

Perhaps you protest, arguing that the election of Pres. Obama was an anomaly. You argue that, now that Pres. Obama’s incompetence, antipathy towards free enterprise, and relentless desire to grow the government have been exposed, the country has learned its lesson, and its new wisdom will be demonstrated in the 2012 presidential election.

This is unlikely. First, even after all that Pres. Obama has done, even after countless demonstrations of his failings of character and performance, Rasmussen Reports advises that, as of today, “46% of voters say they at least somewhat approve of the president’s performance.” The fact that this figure is as high as it is shows that a large segment of voters is incorrigibly clueless.

Second, the naiveté that led to the election of Pres. Obama, and to acceptance of the preposterous idea that he represented positive change, remains. Hence, the front-runner in the Republican primary campaign is former governor Mitt Romney. Gov. Romney at least would represent continuity, serving as Pres. Obama’s second term.

Maybe you counter that, while Gov. Romney indeed represents the political establishment, the candidate in second place, Rep. Michelle Bachmann, represents real change. No. Rep. Bachmann is just another flavor of authoritarian, big government. Be skeptical of the mindset of someone who refers to “the family” as “the first unit of government,” as though people are subsidiaries of government.

Third, even if a “radical” candidate were elected president, meaning Rep. Ron Paul or former governor Gary Johnson, this would at best result in temporary relief from the growth of government. Milton Friedman recognized that the problem is not the people elected. The problem is structural:

“I believe that the United States is a great country and that our problems do not arise from the people as such. They arise from the structure of our government. … We mislead ourselves if we think we are going to correct the situation by electing the right people to government. … The only way we are really going to change things is by changing the political structure.”

(For Dr. Friedman’s presentation, see the website of The Smith Center for Private Enterprise Ideas, link to “Speakers of National Prominence,” and then to the transcript of “Economic Freedom, Human Freedom, Political Freedom.”)

Yes, there are ideas for structural change that might lead to improvement. The goal would be to significantly curtail the power of the federal government, restoring federalism and allowing states to compete among themselves in offering freedom.

It is improbable, however, that the political establishment would ever allow the changes that would lead to any significant change. Instead, Congress has flirted with a balanced budget amendment. Such an amendment would be unlikely to actually constrain federal spending, as explained by Peter H. Schuck and Craig D. Eyermann. Further, as noted by Prof. Schruck, the amendment would not prevent the federal government from imposing new regulatory burdens on individuals and firms. Nor would it address the need to remove existing regulatory burdens.

How to Enjoy the “Crisis”

Once illusions are shed, one’s view of government changes. One distinguishes between individuals and the government, and between the country and the government.

The fact that politicians demand we join their budget melodrama is a positive sign. It shows that matters have declined to the point the government is worried the public may be catching on to reality.

The reality in fact is much worse than is being discussed. As Michael D. Tanner of the Cato Institute has observed, “If one considers the unfunded liabilities of programs such as Medicare and Social Security, the true national debt could run as high as $119.5 trillion.” This would imply per capita debt of $400,000.

The claim that it is necessary to raise the debt limit to avoid default is one of the myths exploited by politicians and encouraged by the media. Nonetheless, default would be a positive, as would any decline in the debt rating. The government’s ability to borrow is a negative, not a positive, and default, or debasement of the currency through inflation, is inevitable.

The federal government is the only serious threat to the country. Its collapse would wash away the encrusted burdens of debt and oppression, and prevent new burdens that otherwise will continue to grow. The country needs to start over, ideally without a new central government. The collapse of the government, like the default on the debt or debasement of the currency, is inevitable. Embrace the vision.

 Conclusion

There is a better way to live. Imagine life lived on your own terms, not on those dictated by politicians and bureaucrats. Imagine living without the idiocy, threats, and violence of the central government. Let others be disappointed. Be disillusioned, rise above the madness, and smile that peaceful smile.

 

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