Dave's Notepad: The Approaching Financial Train Wreck

Tuesday, November 17, 2009

The Approaching Financial Train Wreck

From Dr. Mark W. Hendrickson at the Center for Vision & Values:

We have a problem. This could be “the big one”—bigger than coping with the Ahmadinejads, Kims, and Chavezes of the world and bigger than our current economic woes. Our republic, our society, may be heading for a crackup. We are bankrupt, both financially and politically.
The source of the problem is democracy. Decades of so-called “progressive” thought have led us to abandon the limited-government, constitutional republic established by our founding fathers. In the name of putting more power into the hands of "the people," the government has arrogated sweeping powers.
[...]
Crude, majoritarian democracy (as in, “there are more of us than there are of you, so we’re going to redistribute your wealth”) inevitably undermines the harmony of society. A free market, as competitive as it is, is based on peaceful, voluntary cooperation. When commerce is free and unfettered by government interference, both sides to a transaction normally gain, thereby promoting social harmony.
Democracy, by contrast, engenders social conflict. Money changes hands by force of the taxman and the threat of imprisonment, not voluntarily. Democracy pits citizens against each other in a sordid squabble whereby many strive to have the state confer benefits seized from their fellow citizens.
[...]
How bad could it get? If the social order breaks down, civil unrest could disrupt markets and shortages of essential goods could occur. The resulting chaos could trigger martial law. A strong leader—a Caesar—could institute some sort of command order. Millions would resent it, but it would be accepted, because the alternative—civil conflict, chronic disorder, and impending starvation—would be intolerable. In such a calamity, Caesar would be the lesser of two evils. The American Republic and Constitution would join earlier democracies in the ashbin of history.
God help us.