— W E L C O M E   T O —
The Liberator Online

Volume 13, Number 16 | October 6, 2008


Here is the issue of the Liberator Online that you requested.
Please note: If this is an older issue, some of the hyperlinks may not be active.

Enjoy! And please tell your friends about the Liberator Online.

To be sure you get each new issue via email, subscribe today.

 In This Issue:

The biggest threat to free markets in seventy years.... "Mad Bureaucrats" Disease: USDA won't let farm test cows for disease.... Reefer Madness Record: pot arrests reach all-time high.... The new penny... Exerting *undo* influence.... and much more!

The Liberator Online

Vol. 13, No. 16 | October 6, 2008
Circulation:69,801 subscribers in over 100 countries.
The world's largest-circulation libertarian publication!

Published by the Advocates for Self-Government
Edited by James W. Harris | Email: james(a)TheAdvocates.org

Support the world-changing work of the Advocates! Please see: http://www.theadvocates.org/about-us.html  or call us toll-free at 1-800-932-1776. Thank you!

...

"The Advocates for Self-Government has been responsible for almost all the libertarian outreach tools you can find: from wallet-sized copies of the famous World's Smallest Political Quiz, to instructional audio tapes on communication skills and political activism, to the ubiquitous 'libertarian event in a kit': the Operation Politically Homeless (OPH) booths that you've seen at parades, festivals, and other events." -- Henry Hazlitt Foundation (July 24, 2001)
 

Contents

PRESIDENT'S CORNER
* The biggest assault on free markets in 70 years!
* Order LIBERTARIANISM IN ONE LESSON and get great free gift!


WHAT'S HAPPENING WITH THE ADVOCATES
* The 2009 Freedom Cruise
* Marshall Fritz health updates

GOOD NEWS, BAD NEWS, UNBELIEVABLE NEWS
* "Mad Bureaucrat" Disease
* Dollars and the Bailouts
* U.S. Sinks in World Economic Freedom Rankings
* Reefer Madness Record: Marijuana Arrests Hit All-Time High
QUICK SHOTS: Out of thin air; Platforms that nobody reads; The new penny...

PERSUASION POWER POINT #256
* How Can You Exert Un-do Influence?
by Michael Cloud

ASK DR. RUWART
* The Bailout: Questions and Answers

ONE-MINUTE LIBERTY TIP
* The Free Market Didn't Fail
by Sharon Harris

PRODUCT REVIEW
* Buy the classic LIBERTARIANISM IN ONE LESSON -- and get 100 World's Smallest Political Quiz cards FREE!

Sharon Harris  

President's

Corner

Dear friend,

The biggest assault on free market ideas since the 1930s New Deal.

That's what we're facing with the current economic crisis.

Overnight, decades of hard work building public support for free markets has been threatened.

Enemies of economic liberty are gleefully using this crisis to discredit free market ideas and ram through a Big Government agenda.

We're hearing them everywhere. A few examples:

"Raw capitalism is dead."
-- Henry Paulson, U.S. Treasury secretary, TIME magazine, September 18.

"The high priests of capitalism are in sackcloth and ashes, their belief in markets shattered, their catechism of risk-taking renounced. From Wall Street to Detroit, once-devout believers in unfettered private enterprise are running from their religion. ... Perhaps the pendulum is finally swinging back to a widespread recognition that government has a role to play in regulating markets, protecting consumers and providing a social safety net. ... The worship of unfettered private enterprise has been exposed for what it is -- just another cult." -- Cynthia Tucker, syndicated columnist and editor of the opinion page of the Atlanta Journal-Constitution, the South's largest newspaper.

"... The free market in finance, unregulated and unsupervised, has failed."
-- New York Times.

"[The idea that] the market knows best -- that era is over. Market fundamentalism is taking a beating in policy circles and the public mind."
-- Lawrence Mishel, president of the Economic Policy Institute.

"This can bring about a turn toward a new era. If we have the money to bail out Wall Street, we can provide funding for health care, childhood poverty, infrastructure and sustainable energy."
-- avowed socialist U.S. Sen. Bernie Sanders, I-Vermont.

You and I know this is nonsense. The free market isn't to blame. This mess was created by Big Government. And it won't be solved by putting still more Big Government foxes in charge of the henhouse.

But many in the public are listening. And believing. And fearing free markets.

The world needs an articulate, persuasive and active libertarian movement to defend and advance the cause of free markets and economic liberty.

And that makes the work of the Advocates more vital than ever.

The Advocates is the only libertarian organization that specializes in helping libertarians become successful and persuasive communicators of the ideas of freedom.

We will be working hard to help libertarians learn the best ways to answer the false charges that the free market caused this mess.

We will be providing libertarians with the facts, the arguments, the rhetoric and the tools they need to convince their friends, neighbors, community leaders and opinion shapers.

And we will help libertarians learn how to make their voices heard in the coming battles over this issue.

You'll find some useful answers and arguments in this issue of the Liberator Online. Look for more in the days ahead.

There is *good news* in this, too. Millions of Americans are outraged by the bailout and the cries for Big Government -- and they took action! They flooded Congress and the media with angry letters, calls and emails.

Libertarians and free market economists hit the airwaves and the opinion pages, too.

Large numbers of people instinctively realize this is a problem caused by politicians. We just need to reach them with the libertarian message of freedom and free markets.

The freedom movement is bigger than ever before. This is a time for all of us to do all we can in spreading the ideas of freedom -- and win more people to the side of liberty.

Thank you!

* * *

As I mentioned above, the free market desperately needs defenders right now. The Advocates work has never been more important.

Unfortunately, the crisis is hitting the Advocates hard. At the very time our services are so badly needed, the economic downturn is cutting into our donations.

If you can help with a donation now, it would be greatly appreciated. We have some outstanding thank-you gifts for your help during a time when some of our longtime supporters are having difficulty giving as they would like.

Please make donations here:
https://www.theadvocates.org/donations.html

Thank you!

  * * *

Welcome to 57 new Liberator Online subscribers this issue. Thanks for joining our subscription "family" of almost 70,000 liberty-loving readers in more than 100 countries!

To learn more about the Advocates and our work for liberty:
http://www.TheAdvocates.org 

To learn more about libertarianism:
http://www.Libertarianism.com

-- Sharon Harris, President | Email: sharon@TheAdvocates.org

PS: Don't forget to check out our Product Review special!

We're offering David Bergland's acclaimed book LIBERTARIANISM IN ONE LESSON, widely considered the best short-and-sweet introduction to libertarianism ever written. Essential libertarian reading and a wonderful gift for family and friends!

PLUS: Order now, and we'll give you 100 FREE World's Smallest Political Quiz cards -- so you can have *the greatest libertarian outreach tool ever created* ready to use during this election season.

For more details or to place your order, click here:
http://www.theadvocates.org/liberator-online-special.html 

Or see the Product Review at the end of this issue.

Your purchase supports the great work of the Advocates. Thank you!


••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

--- ADVERTISEMENT ---

 

HOT OFF THE PRESSES!
 
Libertarian Party Presidential Candidate and former U.S. Congressman BOB BARR
has written a dire warning of what is at stake if we don’t act now to stop the onslaught of Big Government. A must-read for libertarians everywhere!
 
ADDED BONUS: The Advocates will get a percentage of the sales price if you order through the link below. Find out more, and order yours today!
 


•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
 

What's Happening With The Advocates

* THE TWELFTH ANNUAL FREEDOM CRUISE: Imagine awakening to a warm sun reflecting off a turquoise ocean on a spectacular cruise ship, heading to a beach paradise! Yes, Advocates Board Member Dr. Ken Bisson is announcing the 12th Annual Freedom Cruise -- February 15 - 22, 2009. This year, it's a scuba and beach lovers delight. Check out this itinerary: Fort Lauderdale; Half Moon Cay, Bahamas; Grand Turk, Turks & Caicos; Grand Cayman, Cayman Islands; Cozumel, Mexico; Fort Lauderdale! Just $853 per person (including port charges and taxes) if you reserve now. Non-libertarians welcome! Great food, an amazing itinerary, and fine company! (This isn't an Advocates event, but as noted, Ken is on our Board of Directors, and libertarians who have been on past cruises rave about them.) For photos and more details -- or to sign up for free, no-commitment email updates -- visit:
http://www.freedomcruises.biz/CRUISE2009.html 

* MARSHALL FRITZ HEALTH UPDATE: Marshall Fritz -- the legendary and beloved founder of the Advocates for Self-Government, the father of the world-famous World's Smallest Political Quiz, and all-around amazing guy -- has been diagnosed with terminal pancreatic cancer.

Doctors give him 6-20 months to live, with a 50-50 chance of living one year. Marshall is facing this challenge with his characteristic courage and good spirits.

You can read Marshall's thoughts and send him a message at: www.MarshallFritz.com 

 ******

 

Good News,

Bad News,

Unbelievable News

by James W. Harris

"Mad Bureaucrat" Disease: USDA Won't Allow 100% Testing of U.S. Cattle

The U.S. Dept. of Agriculture (USDA) has gone to federal court to prevent a meatpacking company from testing, at its own expense, all its cattle for Mad Cow Disease. And a federal appeals court has backed the USDA.

Currently the USDA tests about 1% of cattle for Mad Cow Disease. The disease is extremely rare -- only three infected cattle have been discovered in the U.S, and there is no known case of a human contracting the disease from U.S. cattle.

Still, Creekstone Farms, a small meatpacking company, wants to test 100% of the cattle they process. The company, not taxpayers, would pay for the tests.

Creekstone Farms feels some consumers would be willing to pay extra for the knowledge that all its meat is tested -- especially customers in Asian countries, where concern about the disease is higher. Creekstone says it has lost millions of dollars in foreign sales since the first case of Mad Cow disease was found in U.S. cattle in 2003.

Please note, Creekstone Farms is not making false claims about the safety of their competitors' beef. They are merely offering consumers the choice of 100% testing. Consumers would be free to choose which they prefer.

But the USDA doesn't like that. It fears Creekstone Farms' competitors -- politically-connected big meatpacking companies -- may feel pressure from consumers to increase their testing, which could raise the price of beef (or cut into their profits).

As the small-government lobbying group Downsize DC notes, by outlawing Creekstone Farm's plan, the USDA is:

* Preventing a private business from voluntarily making its product safer than government standards -- in order to protect Big Business.
* Preventing a safer product from entering the market.
* Denying Americans the opportunity to decide for themselves, in the alleged "land of the free."
* Hurting American foreign trade.

Downsize DC aptly calls this: "Mad Bureaucrat Disease: insane regulations that sacrifice freedom and the public good for the interests of a few powerful corporate lobbyists."

Unfortunately, no one is protecting U.S. consumers from that widespread and destructive malady.

(Source: Downsize DC
http://www.downsizedc.org/blog/mad+cow+or+mad+bureaucrat
USA Today
http://www.usatoday.com/money/industries/food/2008-08-29-mad-cow-testing_N.htm?loc=interstitialskip  )
Kansas City Star
http://www.kansascity.com/business/story/773941.html  )

* * *

Dollars and the Bailouts

U.S. House members who voted Yes on the September 29 Wall Street bailout received 54 percent more money in campaign donations from banks and securities than members who voted No.

So reports MAPLight.org, a non-partisan organization whose mission is to "illuminate the connection between money and politics."

"[O]ver the past five years, banks and securities firms gave an average of $231,877 in campaign contributions to each Representative voting in favor of the bailout, compared with an average of $150,982 to each Representative voting against the bailout -- 54 percent more money given to those who voted Yes."

Democrats who voted Yes "received an average of $212,700 each, about twice as much as those voting No, $107,993." Republicans who voted Yes "received an average of $273,181 each, 50% more than those voting No, $181,688."

Just a coincidence, no doubt.

(Source: MAPLight.org:
http://www.maplight.org/node/43109  )

* * *

U.S. Sinks in World Economic Freedom Rankings

Economic freedom, though on the rise around the world, has significantly declined in the U.S. over the past several years.

That's the disturbing finding of the 2008 Economic Freedom of the World Annual Report, a highly-regarded study of economic freedom around the world prepared by a team of scholars coordinated by the libertarian Cato Institute in conjunction with the Fraser Institute of Canada.

In the 2000 report the U.S. was ranked the second-freest economy. This year, however, the U.S. has fallen to 8th place, behind Hong Kong (ranked first), Singapore, New Zealand, Switzerland, the United Kingdom, Chile, and Canada. Yes, the U.S. now ranks behind Canada in overall economic freedom, even allowing for Canada's socialized medical system.

According to the Cato Institute, "President Bush's tenure has had a clear negative effect on economic freedom ratings."

Economic Freedom of the World ranks 141 countries on a range of factors in five broad areas: 1) size of government; 2) legal structure and security of property rights; 3) access to sound money; 4) freedom to trade internationally; and 5) regulation of credit, labor and business.

More significant than the U.S.'s drop in the rankings is its fall in the amount of economic freedom measured: on a scale of 0-10, the U.S. fell from 8.55 in 2000 to 8.04, according to the Report. Only five countries have experienced a greater decline over the same time period: Zimbabwe, Argentina, Niger, Venezuela, and Guyana.

"The rule of law, government spending, and regulation are the areas where the United States saw the most troubling declines in its ratings this decade," observes Ian Vasquez, director of Cato's Center for Global Liberty and Prosperity.

These ratings are for the year 2006, the most recent year for which comprehensive data are available.

As it has in previous years, the Report found a strong positive relationship between economic freedom and poverty reduction.

"Numerous studies have shown that countries with more economic freedom grow more rapidly and achieve higher per-capita income levels than those that are less free," notes the Report. "Nations in the top quartile of economic freedom have an average per-capita GDP of $31,480 in 2006, compared to $3,882 for those nations in the bottom quartile in constant 2005 international dollars."

Where there are free markets, there is abundance. Heavy government control of market activity reduces prosperity and wreaks havoc.

Those scrambling to reshape the American economy would do well to remember that.

(Source: Cato Institute
http://www.cato.org/pubs/efw/  )

* * *

Reefer Madness Record: Marijuana Arrests Hit All-Time High

Unbelievable though it may seem, for the fifth year in a row, marijuana arrests in the U.S. government have hit a record high.

Police arrested about 873,00 persons for marijuana violations in 2006, according to just-released numbers from the Federal Bureau of Investigation's annual Uniform Crime Report.

To fully understand the national insanity this number represents, consider:

* This is the largest total number of annual arrests for pot ever recorded by the FBI -- up from last year's record of 829,625 arrests.

* This is the fifth year in a row that marijuana arrests have increased.

* This was a 5% increase from just the previous year.

* These marijuana arrests comprised nearly half of all drug arrests in the United States.

* Almost all the marijuana arrests -- 775,000, or 89% -- were for mere possession, not trafficking, cultivation, or sale.

* The other 11% of arrests were for "sale/manufacture," a broad category that includes *all* cultivation offenses -- even those where the marijuana was being grown for personal or medical use.

* This record number of marijuana arrests far exceeded the total number of arrests in the U.S. the same year for all violent crimes combined, including murder, manslaughter, forcible rape, robbery and aggravated assault.

* Nearly 10 million Americans have been arrested on marijuana charges in the past ten years.

* Sometime in the next few weeks, U.S. law enforcement officers will make the 20 millionth marijuana arrest in American history.

* Marijuana arrests have almost tripled since the early 1990s.

* At this rate there is a marijuana smoker arrested every 38 seconds in America.

* The effects of an arrest can be devastating, notes Paul Armentano of NORML: "Probation and mandatory drug testing; loss of employment; loss of child custody; removal from subsidized housing; asset forfeiture; loss of student aid; loss of voting privileges; loss of adoption rights..." and of course, for some, time behind bars.

* The War on Marijuana is largely waged against young Americans. Three out of four of those arrested were under age 30; one in four were 18 or younger.

"Most Americans -- rightly -- would be outraged to learn that our nation's so-called War on Drugs is really just an assault on young adults caught with small bags of weed," notes NORML's Armentano.

(Sources: NORML:
http://www.alternet.org/story/98952/
Paul Armentano:
http://www.inthesetimes.com/article/3918/twenty_million_arrests_and_counting  )

 * * * * *

QUICK SHOTS...

* "A REALLY LARGE NUMBER": Here's a stunner. Where did the U.S. Treasury figure get the $700 billion figure they demanded for the bailout? Forbes magazine wondered, too, so they asked. Turns out the Treasury... made it up. "It's not based on any particular data point," a Treasury spokeswoman told Forbes.com Tuesday. "We just wanted to choose a really large number."
http://www.forbes.com/businessinthebeltway/2008/09/23/bailout-paulson-congress-biz-beltway-cx_jz_bw_0923bailout.html 

* WELL, NOBODY REALLY READS THOSE THINGS ANYWAY: "We do not support government bailouts of private institutions. Government interference in the markets exacerbates problems in the marketplace and causes the free market to take longer to correct itself." -- Republican Party Platform, adopted September 1, 2008.
http://www.gop.com/2008Platform/Economy.htm 

* THE NEW PENNY: "The U.S. Mint announced this week they are redesigning the penny. Have you seen it? It looks exactly like the old dollar." -- Jay Leno, The Tonight Show, Sept. 26.

    * * * * * * * *
"Good News, Bad News, Unbelievable News" is written by Liberator Online editor James W. Harris. His articles have appeared in numerous magazines and newspapers, and he has been a Finalist for the Mencken Award, given by the Free Press Association for "Outstanding Journalism in Support of Liberty."


••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

Michael Cloud  

Persuasion Power

Point #256

by Michael Cloud

How Can You Exert Un-do Influence?

Sometimes you fail to persuade because of what you fail to do.

Other times you fail to persuade because of what you fail to un-do.

Persuasion requires NOT just adding what works.

It also depends on subtracting what does not work.

You can easily and quickly become far more effective at persuading others by getting rid of a handful of things that do not work.

You can exert un-do influence.

How do you find out what you're doing that does not work?

1. Ask the people closest to you. But you need to ask the right way. If you ask your family and friends what you say that does NOT change their minds, they probably can't tell you. They probably don't know what does not work. But they can give you the information you want -- if you ask slightly different questions. If you ask the right questions.

2. Ask them what they dislike about conversations with you. Ask them what you do and say that they wish you wouldn't.

Here are a few questions that will help you quickly unearth things you need to stop doing:

* "When we discuss politics, what do I say or do that irritates you?"

* "When we talk about government, what do I say or do that frustrates you?"

* "What do I do or say that gets under your skin? Maybe a phrase I use or a habit I have?"

* "What do I say or do that makes you think, 'I wish he's stop that!'?"

* "During our political conversations, what do I say or do that bugs you? Tees you off? Makes you see red? Makes your stomach turn?"

You can prompt him or her to recognize things you don't want to do by suggesting possible flaws:

* "Do I repeat myself? Do you find yourself thinking 'That's the third time he said that!'?"

* "Do I raise my voice? Do I drone on?"

* "Do I interrupt you? Do I barge in before you're done making your point?"

* "Do you feel pressured to talk about things you don't want to talk about?"

* "Am I argumentative with you? Is it with all political topics -- or just some? Which ones?"

* "Do I make you feel bad when we talk politics? Can you remember what I was saying just before you started feeling bad?"

3. Thank your friend for leveling with you. For helping you out.

4. Try a persuasion experiment. Un-do these things that do not work during your next 12 political conversations. How are your results different from before? Are they better? Worse? Or just different?

These small changes can make a big difference in your conversations. In your life.

When you commit to exerting un-do influence.

  * * * * * * * *

Michael Cloud is author of the acclaimed book "Secrets of Libertarian Persuasion" available exclusively from the Advocates: http://www.TheAdvocates.org/secrets.html

In 2000, Michael was honored with the Thomas Paine Award as the Most Persuasive Libertarian Communicator in America.

••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

--- ADVERTISEMENT ---

HARD EVIDENCE FOR LIBERTY

Looking for free-market solutions to today's most important social and economic problems? The Heartland Institute has the information and arguments you need on education, taxation, health care, privatization of public services, market-based approaches to environmental protection, and much more.

Milton Friedman called the Heartland Institute "a highly effective libertarian institute."

See why. Visit Heartland

 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

 

Ask

Dr. Ruwart

 

Dr. Mary Ruwart is a leading expert in libertarian communication. In this column she offers short answers to real questions about libertarianism. To submit questions to Dr. Ruwart, see end of column.

* * *

The Bailout: Questions and Answers

QUESTION: What is the libertarian position on the bailouts?

MY SHORT ANSWER: Most libertarians do not support bailouts, which force hard-working Americans to subsidize failing businesses, either through taxation or inflation. The current bailout proposals will cost every man, woman, and child in the U.S. about $3,000 apiece, and perhaps far more. What effect will losing this much buying power have on your family?

Such bailouts only encourage further mismanagement of funds and siphon money away from efficient businesses, causing layoffs in the latter. Thus, in addition to several thousand dollars in lost buying power, bailouts can actually cost you your job!

QUESTION: What would happen if the government didn't take these actions?

MY SHORT ANSWER: If the government didn't bail out the failing banks and mortgage companies, their stocks would take a nosedive. The stockholders and employees of these firms, not the American people as a whole, would suffer the ill effects of their poor lending practices.

However, other lending institutions would learn that making bad loans or investments to boost profits temporarily could lead to a permanent loss of their livelihood. Stockholders and fund managers would avoid risky companies in the future and monitor management decisions more closely. Consequently, letting the failing institutions of today bear the responsibility for their poor judgment is likely to prevent additional failures tomorrow.

QUESTION: How would it be different in a libertarian society?

MY SHORT ANSWER: A libertarian society wouldn't have a central bank like the Federal Reserve that artificially lowers interest rates and reserves, encouraging banks and mortgage companies to lend unwisely. If a company went bankrupt because it lent indiscriminately, a libertarian government would let it fail, rather than take money and jobs away from innocent people.

Today, investors play the stock market like a roulette wheel. They own the company, but are not held liable if it fails to pay its creditors. In times and places where owners have had to underwrite management decisions, they watched management closely so that banks and lending agencies rarely failed. When they did, competing businesses often assumed the debt of the bankrupt company to keep up consumer confidence.

For more detail on how banking and mortgage crises are created by central banks like the Fed and alleviated by a marketplace free from government interference, see Chapter 9 in my book, "Healing Our World." The 1992 version is available as a free download at www.ruwart.com ; the updated 2003 edition is available there or from The Advocates.

  * * * * * * * *

Got questions? Dr. Ruwart has answers! If you'd like answers to YOUR "tough questions" on libertarian issues, email Dr. Ruwart at: ruwart@theAdvocates.org  

Due to volume, Dr. Ruwart can't personally acknowledge all emails. But we'll run the best questions and answers in upcoming issues.

Dr. Ruwart's previous Liberator Online answers are archived in searchable form at: http://www.TheAdvocates.org/ruwart/categories_list.php 

Dr. Ruwart's outstanding books "Healing Our World" and "Short Answers to the Tough Questions" are available from the Advocates: http://www.TheAdvocates.org/Merchant2/merchant.mv
 

 

One-Minute

Liberty Tip

The Free Market Didn't Fail

by Sharon Harris

(Note: This "one-minute" tip will take a bit longer than a minute to read. Please pardon the extra length. I wanted to offer answers to several of the concerns that defenders of the market are currently facing. Thank you!)

The questions we're all hearing right now go something like this:

"Isn't the current economic crisis a failure of the free market? Doesn't it show the need for additional regulation and government control?"

The answer: Not at all. The crisis has absolutely nothing to do with the free market. In fact, the opposite is true. This crisis was *created* by massive government regulation and government interference with the market. The government actually over-rode the market, and removed the protections the market normally provides.

First, let's define a free market. A free market is one in which people are free to do as they wish, with their own money and property, as long as they don't engage in force or fraud.

Does that sound like our financial industry? Hardly. The banking, mortgage and finance areas of our economy have been heavily regulated and controlled by the government for many decades. We have no free market in these areas.

Fannie Mae and Freddie Mac, the huge mortgage companies at the center of this problem, are not in any way free market institutions. They are quasi-private institutions granted extraordinary special privileges by the government. They operated for decades with the widespread understanding that, if they failed, they would be bailed out by Congress, using tax dollars.

That doesn't sound like a "free market," does it? One of the chief protections the market offers against the build-up of bad loans is that lenders know they will suffer or go out of business if they make too many of them. Congress removed that crucial constraint.

Further, in the 1990s Congress added enormous incentives and pressure for companies to make risky loans. Congress drastically eased lending requirements for Freddie and Fannie, to encourage them to make loans to poor areas. Congress also began to crack down on banks that did not make "enough" loans, even questionable loans, to distressed areas.

Some of this was a well-intentioned, though badly misguided, effort to help the less fortunate purchase homes.

However, much of this was also due to pressure and bribery by some in the banking, homebuilding and real-estate professions, who wanted such legislation to make themselves wealthy.

For example, Fannie and Freddie engaged in vast lobbying efforts to loosen common-sense restraints for making risky loans. Fannie and Freddie spent over $200 million dollars on lobbying, political activities, and donations to candidates between 1989 and 2008. They actively campaigned against politicians who resisted legislation they wanted.

Is that part of a "free market"? No, it is the opposite. It's a classic example of "crony capitalism" or state capitalism: big business buying favors from government, getting legislation passed that interfered with the market at the expense of the rest of us.

All of this happened during a time when the Federal Reserve System greatly expanded the money supply, making credit easily available for questionable loans and encouraging speculation. The Fed, we need hardly say, is not a creation of the free market. It is a tool of the government, and constantly subject to political manipulation.

Further complicating matters, home prices were rising especially fast in parts of the country where zoning regulations -- another creation of government -- limited the supply of houses and thus artificially increased the price of existing homes. This further fueled housing speculation.

The result of all this massive government intervention was the explosion of high-risk, questionable loans and other expenditures that brought us to the mess we see today. Millions of Americans bought homes they couldn't afford; Wall Street sank billions of dollars into bad investments.

Clearly, this had nothing whatsoever to do with the free market. It was caused by far too much, not too little, government interference in the market.

In a genuine free market, lenders would exercise caution, because they would quickly go out of business if they made too many poor loans. The frenzy we saw in the past few years would not occur.

A free market is the best protection society has against such a destructive build-up of bad investments.

The answer is not more regulation. It was regulation that made this mess possible. And any new regulation will be written by politicians under the influence of the very corporations being regulated.

The answer is the ending of the disastrous and destructive government interference in the finance industry, and the creation of a genuine free market.

LEARN MORE: A excellent longer article to share with those who are unconvinced, and one from which I drew some information for this column, is "An Open Letter to my Friends on the Left," by economist Steven Horwitz:
http://myslu.stlawu.edu/~shorwitz/open_letter.htm

 See more One-Minute Liberty Tips!

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

.Product Review


 

Advocates Online Special

Special Offer good through October 20, 2008

9th Edition of Classic book
published by the Advocates


PLUS you'll get 100 FREE Quiz cards 
-- a $6.00 value - FREE, too!*

 

"The best brief introduction to libertarianism available."

--Radio Talk Show Host Brian Wilson

Libertarianism In One Lesson

B Y   D A V I D   B E R G L A N D

Libertarianism In One LessonThe best introductory book about libertarianism has just gotten better! The brand-new Ninth Edition of David Bergland's acclaimed Libertarianism In One Lesson is now available.

This classic work has been comprehensively updated and completely rewritten for 2005. It's more relevant, wide-ranging, and useful than ever.

With insight and candor, Libertarianism In One Lesson answers all the common questions about the freedom philosophy: What exactly is libertarianism? What are its historic roots? Are libertarians conservative or liberal? What would libertarians do to solve America's most vexing problems? And does libertarianism work in the "real world"?

The book lays out the central premise of libertarianism -- "You own yourself" -- and reveals how that deceptively simple statement has a wide-ranging impact on the relationship between government and individuals.

But there's more. Libertarianism In One Lesson sparkles with provocative proposals, insightful analysis, dry wit, and startling information. (See below for some of the "Did you know?" facts in the book.) You'll be intrigued and enlightened as Bergland discusses:


• National defense and terrorism. Find out why Big Macs and hip hop music may be America's most powerful weapons against foreign dictators. Why we don't need to worry about aggressors seizing Middle Eastern oil. And why a noninterventionist foreign policy would make America safer. (Did you know: The United States had troops stationed in 135 foreign nations in 2004?)

• Education. Find out why government per-pupil spending has doubled over the last 30 years -- and yet 47 million Americans are "borderline illiterates." And get convincing proof that public schools are what poor parents settle for -- not what they would freely choose. (Did you know: 46% of public school teachers in Chicago send their children to private schools?)

• The War on Drugs. Find out the 15 most compelling arguments against drug prohibition. What we should have learned from Al Capone. And how the War on Drugs encourages criminals to make more potent, dangerous drugs. (Did you know: African-Americans are 13 times as likely as whites to be imprisoned on drug charges -- even though blacks and whites use drugs at about the same rate?)

• Poverty. Find out why government welfare programs perpetuate poverty -- instead of curing it. And where the $33,700 that the federal government supposedly spends on welfare for each four-person poor family really goes. (Did you know: America's poor have a higher standard of living than the average middle-class American family had in the 1970s?)

• The environment. Find out why pollution is really just another form of trespass. How fishermen in Great Britain stop water pollution (and why we should follow their example). And why timber companies frequently take better care of forests than the National Park Service. (Did you know: The federal government pollutes more than all chemical and oil companies combined -- but not a single bureaucrat can be prosecuted for environmental crimes because of sovereign immunity?)

• Guns and crime. Find out how guns make you safer -- even if you don't own one. Why the U.S. Department of Justice now admits that the Second Amendment "secures a personal right of individuals." And how criminals respond when they think a potential victim might be armed. (Did you know: Given the relative number of guns and the number of swimming pools in the USA, a child is 100 times more likely to die in a swimming pool accident than from a gun accident?)

• Health care. Find out why traditional health insurance drives up medical costs. How Medicare and Medicaid's $30 trillion unfunded liability threatens your children's financial future. And which two healthcare reforms would immediately shift power back to consumers. (Did you know: The FDA has killed as many as 119,000 Americans by delaying access to lifesaving drugs?)

But there's more. In Libertarianism In One Lesson, Bergland demolishes the fuzzy thinking that encourages people to blindly turn to government and politicians to solve problems. Once you read this chapter, you'll never again fall victim to the Utopian Fallacy, the "PANG" Premise, or the Free Lunch Fallacy. This section alone is worth the price of the book!

In a fast-moving Q&A chapter, Bergland quickly and clearly contrasts the conservative, liberal, and libertarian positions on major issues. He suggests practical policy proposals to help America move in a more libertarian direction -- starting today. And he offers a hopeful, inspiring vision of a libertarian renaissance in America.

This new Ninth Edition of Libertarianism In One Lesson has been extensively updated. It's as current as today's headlines, and tackles terrorism, the war in Iraq, Social Security reform, and even the ongoing debate about medical marijuana.

Libertarianism In One Lesson has been acclaimed by critics. Peter McWilliams, best-selling author of Ain't Nobody's Business If You Do, said the book is "excellent. [It explains] the only political/economic philosophy that makes any sense to me -- or to the Founding Fathers." Free-Market.net called it a "classic." Liberty Tree called it "a concise, eloquent introduction to libertarian thought and how it can be applied to real-world problems."

If you're a newcomer to libertarianism -- or just curious -- this book will answer every question you have (in just 192 pages!). If you're already a libertarian, this book is an inspiring reminder of the beauty and power of libertarian ideas. And if you have a friend who's interested in the freedom philosophy, this trade-size paperback, with a stunning full-color cover, makes a great gift.

Libertarianism In One Lesson is an eye-opening book. It will change the way you look at government, laws, politics -- and human liberty. And it will give you hope for a better tomorrow in America. Buy your copy today!

$12.50 (plus S&H)

Trade-size paperback

192 pages

Published by the Advocates for Self-Government

 

"A primer for those who are new to the libertarian movement."

-- UndercoverBooks.com

"A good, basic introduction to libertarianism."

-- Libertarianism.com

"Clearly shows the fundamental differences among the liberal,

conservative, and libertarian ethical views"

-- David King, RBKA.com

Learn More About Libertarianism In One Lesson

• Read an Interview about Libertarianism In One Lesson with David Bergland

• Read a Review of Libertarianism In One Lesson by Bill Winter

• Read a Review of Libertarianism In One Lesson by Michael Cloud

 * * * * *

* Limited-time Offer: Special Gift with Your Purchase

100 FREE QUIZ CARDS BOOK WITH EACH PURCHASE!

This is it -- THE #1 libertarian outreach tool in the world! The questions have been refined, and the Quiz card has a new eye-catching design, making it more attractive and more effective than ever before. Once people see the world-famous World's Smallest Political Quiz, they never see politics the same again. Make sure you have plenty on hand to give to anyone who's interested in politics. Essential for outreach booths, speeches, classrooms, campaigns, and anywhere else you want to open minds to liberty. Deluxe version, 3-1/2" x 5-3/4" -- fits perfectly in your shirt pocket or daily planner.

Order within the next two weeks and we'll send you a pack of 100 World's Smallest Political Quiz cards (deluxe version) FREE with your order of LIBERTARIANISM IN ONE LESSON -- a $6.00 value, yours FREE!

Offer good through October 20, 2008

Order Now!

 

See you in two weeks! You can contact the Advocates at:

Regular Mail:
Advocates for Self Government
213 South Erwin Street
Cartersville, GA 30120-3513


Phone: 770-386-8372; for orders, 1-800-932-1776
Fax: 770-386-8372


Email: info(a)TheAdvocates.org
Web site: http://www.TheAdvocates.org/

If you wish to subscribe, unsubscribe, or change your address for receiving the Liberator Online, visit our Liberator Online Subscription page.

The Liberator Online is the official newsletter of the Advocates for Self-Government. The Liberator Online was created by Paul Schmidt and James W. Harris.

We never send the Liberator Online unsolicited. We encourage you to forward the Liberator Online to interested friends. And if you received this issue from a forward, please subscribe. It's free!

To see previous issues, visit our Liberator Online Archive.

The Advocates for Self-Government is a non-profit educational organization. Contributions to the Advocates are tax-deductible. If you would like to support the world-changing work of the Advocates, we welcome your donation. To learn more about our vital work for liberty, please see www.TheAdvocates.org/about-us.html  . Or give us a call at 1-800-932-1776. Thank you!

"May it be to the world...to assume the blessings and security of self-government." -- Thomas Jefferson, June 24, 1826.  

 


 
Thank you for reading the Liberator Online -- the world's largest libertarian email newsletter.

We hope you will tell your friends about it and let them know how to subscribe.

See this page to unsubscribe.
See this page to change your subscription email address.
See other issues in the Archive.

 

 

Contents copyrighted © The Advocates for Self-Government,, a nonprofit 501(c)(3) educational organization. Donations tax-deductible in U.S. All rights reserved.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hit Counter