Wednesday, May 02, 2012

Fighting the Curse of Despotism

Terrific advice from Sovereign Man’s Simon Black

When you step back and look at the big picture, the writing on the wall seems so clear, so obvious. In Western Europe and the United States in particular, bankrupt, insolvent governments will resort to any means necessary in order to maintain the status quo: keeping them in power at our expense.

This means continuing to reduce personal liberty, eliminate economic freedom, vanquish privacy, debase the currency, stifle innovation, eradicate financial opportunity, and destroy the savings and livelihoods of millions of people.

These tactics are not new, this time is not different. Empires on the slide have always resorted to cannibalism– feeding off the productive class in order to keep the party going a little while longer.

In the fourth and fifth centuries (AD), for example, the Western Roman empire resorted to centrally planned labor allocation, price fixing, rapid currency devaluation, capital controls, civil asset forfeiture, and tax rates that were so high that the few citizens who remained welcomed the invading barbarian hordes with open arms.

Most of the smart, productive Romans had already moved on to greener pastures long before. As the situation worsened, more and more people began to leave until there was a mass Exodus of over 90% of western Rome’s population in its final decades.

Similarly, the Ottoman Empire, having reached the zenith of its expansion in the 16th century, established a massive, unsustainable bureaucracy that was far more costly than any other administrative hierarchy in history, including Rome’s.

Soon Ottoman bureacrats began to see the people as existing to provide them with position… rather than their position existing to support the people. Sound familiar?

Huge spending in the Ottoman Empire gave way to a massive public debt (on which they defaulted in 1875), which eventually begat currency debasement, inflation, an absurd tax system, and a substantial reduction in civil liberties.

History shows that freedom is almost always the price that societies pay to maintain the status quo and keep their rulers in power. When the system finally collapses under its own weight, though, things can go from bad to worse as the people cry out for CHANGE.

The French, for example, traded an absolute monarch in Louis XVI for an absolute dictator in Robespierre. Similarly, the Russians traded the empire of ‘Bloody’ Tsar Nicholas II for the Red Terror of Soviet Russia.

As the Russian Marxist revolutionary Leon Trotsky said in 1937, “The old principle of ‘who does not work shall not eat’ has been replaced by a new one– who does not obey shall not eat.”

Two words: Screw that.

Everybody has a choice to make. On one hand, we can either bury our heads in the sand, pretend that everything is OK, and continue being the boiling frog in the pot… just like the poor schmucks who stuck around Rome until the 5th century getting taxed out of their minds and watching their livelihoods inflate away.

On the other, we can recognize that the rise and fall of empires is part of history’s normal cycle… that it’s been happening for millennia, and this time is no different. We can look to the rest of the world and understand that, for all of the turmoil, this is one of the most exciting times to be alive and that the world is full of incredible opportunities.

Just like the Romans who left for Byzantium, the Ottomans who left for Europe, the Europeans who left for North America, there are always regions in the world that are rising while others are falling.

It’s the people who get there first after acknowledging reality and basic historical truth that can reap the greatest reward.

“Freedom is almost always the price that societies pay to maintain the status quo and keep their rulers in power” has been a reality then and today, and not limited to Western Europe and the United States. This has been a cycle.

That’s because people hardly learn from the past. People have been constantly duped, indoctrinated and manipulated by political authorities along with their followers and cronies, whom has succeeded to suppress on or adulterate the meaning of freedom, thus, the repeated condemnation of societies.

Yet enlightenment from education serves as the only preventive antidote from such decadence.

As the great Ludwig von Mises wrote,

Society lives and acts only in individuals; it is nothing more than a certain attitude on their part. Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way out for himself if society is sweeping towards destruction. Therefore everyone, in his own interests, must thrust himself vigorously into the intellectual battle. None can stand aside with unconcern; the interests of everyone hang on the result. Whether he chooses or not, every man is drawn into the great historical struggle, the decisive battle into which our epoch has plunged us.

The bright side is that the information age has facilitated the intellectual struggle for the cause of liberty to a broader spectrum of audience.

Yet transitions may not be smooth, for the simple reason that there have been many entrenched interests who will resist such changes. Besides, the unviable nature of despotism will lead to its natural collapse.

Nonetheless, as more people get to learn about freedom, the curse of despotism diminishes.

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