Promotion of trade with other countries and protecting property rights, are the fundamental responsibilities of our federal government. These are the constitutional remedies for keeping peace and harmony here at home and abroad. Property rights, which include both intellectual and physical property rights, guarantee the preservation of what people have already achieved and what they can achieve in future, while fair trade with other countries, promotes harmonious relationships with those countries, as opposed to policing them, forcing our ideology on them, interference, intervention and wars. Later tools, contrary to trade, cause hate against us, in those countries, while costing lots of money and potential loss of lives for us.
Unfortunately, when governments become too big, too powerful, too rich, too famous and too ideological, they always resort to the later tools, instead of promoting trade. At home these governments are more likely to infringe on property rights, rather then protecting those. We need to understand that people’s property rights are not just limited to physical and intellectual property. These rights encompass everything owned by people, including hard earned money. That is why too much and unfair taxation is also a violation of constitutionally guaranteed property rights. When government gets too big, it must tax people and businesses, too much, to pay for it’s growing size.
Government is the least efficient and profitable institution in any country of the world. The money that it drains out of economy, in the form of taxation, is diverted from more efficient uses and investments, to the dump of public financing. That is why taxation is considered anti-growth, by most leading economists and financial experts. Although, for the purpose of increasing taxes, governments always try to make you believe the exactly opposite of it. Like Obama administration is always trying to make you believe that 2.7 trillion dollars revenue for is not enough for our government and they need to tax more, by making taxation “fair”. Next biggest government, communist China, has a revenue of 1.6 trillion dollars, and they have cash reserves and investments around the world, including United States. They want us to believe that any money paid to the government is a far better use of it, compared to all the other possible uses, and the increased taxation is for our own good.
This method of “reverse rationality” is always a huge weapon, in the hands of tyrannical governments, perfected by Hitler’s “propaganda secretary” Goebbels. In accordance with his philosophy, government must lie repeatedly and so frequently about reverse of truth that people start believing it. This propaganda tool was extensively used by Nazi regime, and unfortunately, many anti-Nazi governments have followed the example, in later period, including the country that has the largest proportion of holocaust victims and their descendants, Israel. As expected, another unfortunate fact is that our government is not any exception. As a matter of fact, it has followed the suit, very enthusiastically. The biggest examples of this reverse rationality, in our history are making of Federal Reserve and IRS, restrictions on the ownership of guns, involvement is wars ranging from World war One and Two to Vietnam, Korea, Iraq, Libya and others, and the recent rational to tax more, in order to make it fair.
Problem is that the taxation is not unfair, in terms of interests of low income people. As a matter of fact, overall, it is in the favor of low income people, as 47 percent of Americans do not even pay any taxes. Even if we accept the argument that the taxation in United States is unfair, then, the solution should be to cut taxes on the people who are paying more, not to increase it on people who are paying less. Our government simply cannot be an increasingly bigger hurdle, on our way to growth and creation of jobs.
It is ironic that we blame China and other countries for trade restrictions, but, we recently lost a case in WTO, filed by Antigua. Antigua sued us for restricting foreign gambling websites, while allowing U.S. based websites to operate in a far less restricted manner. The way WTO works, is that it allows the victim nation to implement retaliatory policies. In most cases, these are supposed to be same as the offending country. For example, if the offending country is restricting trade by imposing very high tariffs on imports, the victim country is allowed to raise it’s tariffs, as well, until the situation is resolved and the offending country starts complying with the WTO rules. But, there are certain exceptions to this rule. In the above example, if the victim country does not import much from offending country, then, enforcing retaliatory tariffs will not work. In such cases, the victim country is allowed to implement other retaliatory measures. In Antigua’s case, it qualifies for taking other measures. They have decided to legally allow, in their country, the infringement of the copyrights for U.S. products and services. Congratulations Mr. Obama, you are creating another job killer of us.
I am going to say, to the people who always ask protectionist policies against countries like China that protectionism does not work. It always worsens the situation. The correct path is to have dialogue and keep increasing pressure on protectionist countries to open their markets.
Our policing of the world has led us enforce sanctions against countries like Iran and Syria. Economic sanctions are just another form of protectionism. The victims of economic sanctions are not the authoritative and dictatorial governments. The real victims are the people, on both sides. Take the example of Iran. Sanctions on Iran are causing incredible hardships on Iranian people including devaluation of money, massive inflation, unemployment, short supply of food and other necessities, and infra-structure, and safety and security related issues. On the other hand, this is resulting into a short supply of oil, causing a hike in oil prices, which in turn is causing serious inflation, because, oil and oil products are directly or indirectly used in almost every aspect of our lives including transport of business material. So, who is paying the price at pump. Of course not the government. It’s the tax payers and consumers.
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