Recently
the Public Broadcasting Service aired a three-part series about
Greece on its Nature
program. It explained
that with limited arable land, Greece grew from rude beginnings to
unprecedented prosperity by becoming a center for trade in the
Mediterranean. PBS would have us believe this occurred because of
democracy. But historian Louis Rougier writes that two other
factors—which the PBS program never even mentioned—were more
important: private property and sound money. In The
Genius of the West,
he writes the primacy of Piraeus, the leading Greek city, “was due
first and foremost the scrupulous respect given to private property.
Each year, on entering office, the Athenian archon listed the
possessions of every citizen and guaranteed him the ownership and
rights of disposal.
“This
primacy was almost equally due to a strong monetary discipline....And
never throughout their long history, regardless of the difficulties
in which they found themselves, did the Athenians ever change the
legal title or the weight of their money....Athenians had developed
an exchange economy based on money. The money changers became the
bankers who accepted deposits, made secured loans, and issued letters
of exchange....By the fourth century [B.C.] Athens was importing four
times as much food as it was producing...[and] paying with finished
goods, such as vases, jewelry, arms, and fine cloth, for raw materials, food stuffs, metals, gold from
Thrace, purple dies from Phoenicia, hides from Syria, and wheat from
Egypt and Scythia.”
From the coasts of the Black Sea came ship timber,
salted fish, honey, wax, pitch and cordage for vessels, leather and
goatskins. From Phrygia and Miletus, fine wool and carpets. From
Etruria, boots and bronzes. From Arabia, perfumes. And all the
sweet productions of Sicily, Italy, Cyprus, Lydia, Pontus, and
Peloponnesus found their way to Piraeus. Athenian coins (drachmas,
65grains fine silver) wound up as far away as India and northern
Europe.
Trade in all these commodities required property rights.
Each item had to be owned by somebody, and other people had to
recognize that ownership and exchange their own property right to
their commodities (or money) in return.
The connections between life, liberty and property can
be understood from the rational cause-and-effect principle. Life is
the source of man's actions. If a man has a right to his life, he
must have the right to act for it since he cannot otherwise survive.
When a man's actions result in property, through labor or trade, he
has as much right to that effect as to his life, which is the cause.
Economic growth in Greece was accompanied by progress in architecture, engineering, sculpture, painting, theater and many fields of science. The PBS program would have us believe this all occurred because of democracy. There is no explanation of how democracy could have done this. That events happen at the same time does not prove one caused the other. The people who produced this PBS program make the sophomoric mistake of assuming that correlation means causation.
What made possible the expansion of progress in Greece and later in the East and West was the work of Aristotle. He studied almost every subject possible at that time and made significant contributions to most. He studied anatomy, astronomy, geography, geology, meteorology, physics, chemistry, botany, zoology, biology, ethics, government, philosophy, and economics. And he wrote the first formal study of logic.
Logic is the process of correct reasoning. Aristotle said the truths about reality are to be known by the principle of cause and effect and the laws of logic, which he formulated. His words on this subject are so encompassing and penetrating that more than 2,000 years later the philosopher Immanuel Kant wrote that since Aristotle, logic had been “unable to take a single step forward, and therefore seems to all appearance to be finished and complete.”
Aristotle taught mankind how to think. That—not democracy—was what made possible the expansion of knowledge on many subjects in ancient Greece and worldwide over many centuries since. But the PBS program on Greece did not include a single mention of Aristotle, the most influential philosopher in history.
PBS then tries to link its democracy-causes-progress argument with America's advancement by falsely claiming our Founding Fathers created a democratically oriented government. This is fake history. Roughly a century ago Albert Jay Nock wrote that it was worth going through the literature of early America “to see how the words 'democracy' and 'democrat' appear exclusively as terms of contumely and reprehension” [contumely definition: “an insulting display of contempt.”]....One sometimes wonders how our revolutionary forefathers would take it to hear some flatulent political thimblerigger [i.e.swindler] charge them with having founded 'the great and glorious democracy of the West.'”
Why
is the popular view of democracy so at odds with the facts of
America's founding? Most Americans are taught in school that the U.S.
is a democracy and that that is the ideal form of government. (What
else would you expect from schools run by a government that caters to
the political majority to affirm its power and appropriateness for
holding office?) People are usually surprised to learn—if they ever
do—that the Founding Fathers feared and detested democracy and
structured our government to guard against it. The word
“democracy” was never mentioned in the Declaration of
Independence, the U.S. Constitution, or any state constitution.
Edmund
Randolph, governor of Virginia, became the nation's first attorney
general, later succeeded Jefferson as secretary of state, and was one
of the leaders at the Constitutional Convention. In fact, he was the
keynote speaker and said the “general object” of the convention
was “to provide a cure for the evils” traceable to “the
turbulence and follies of democracy.” Historian Forrest McDonald
notes that Randolph expressed the views of “all but a handful”
of the delegates.
James Madison, often
called the Father of the Constitution, writing in The Federalist,
the most authoritative exposition of the Constitution, declared:
“A pure democracy...can admit no cure for the mischief
of faction.... There is nothing to check the inducements to sacrifice
the weaker party.... Hence it is that such democracies have ever been
spectacles of turbulence and contention; have ever been found
incompatible with personal security and the rights of property; and
have in general been as short in their lives as they have been
violent in their deaths."
In
my latest book, The Impending Monetary Revolution, the Dollar and
Gold, Second Edition, I cite similar views on
democracy by other prominent Americans of the time:
"Between
a balanced republic and a democracy, the difference is like that
between order and chaos."--John Marshall, Chief Justice of the
Supreme Court, 1801-1835.
“Democracy
will soon degenerate into an anarchy, such an anarchy that every man
will do what is right in his own eyes and no man's life or property
or reputation or liberty will be secure.” --John Adams.
“A
democracy
is
nothing more than mob rule, where fifty-one percent of the people may
take away the rights of the other forty-nine.”-- Thomas Jefferson.
“That
the desires of the majority of the people are often for injustice and
inhumanity against the minority, is demonstrated by every page of the
history of the world.”--John Adams
“The
ancient democracies in which the people themselves deliberated never
possessed one good feature of government. Their very character was
tyranny; their figure deformity.”--Alexander Hamilton.
“Pure
democracy cannot subsist long nor be carried far into the departments
of state—it is very subject to caprice and the madness of popular
rage.” --John Witherspoon, a signer of the Declaration of
Independence.
“A
democracy is a volcano which conceals the fiery materials of its own
destruction. These will produce an eruption and carry desolation in
their way.” --Fisher Ames, wrote the House version of the First
Amendment in the Bill of Rights.
“The
experience of all former ages had shown that of all human
governments, democracy was the most unstable, fluctuating and
short-lived.” --John Quincy Adams, 6th President of the United
States.
It
was not because they were devotees of democracy that the Framers
chose to have House members chosen by popular vote. Rather, it was
because they thought the public needed to have some voice in the new
government or they would not support it. And they thought measures
they had crafted in the Constitution would be sufficient to restrain
democratic tendencies and protect individual rights. The first big
disappointment on this came with ratification of the Seventeenth
Amendment, which required U.S. senators to be popularly elected,
making the Senate democratic just like the House.
1913
was probably the worst year in history for damage to the structure of
our political system. In addition to the Seventeenth Amendment, the
year saw the passage of the income tax and the Federal Reserve Act.
No alterations of our system of government have done greater damage
to the concept of individual rights, have led to the plundering of
more wealth, have done more injustice or caused more suffering to
Americans than those.
Popular
election of senators transformed the Senate from a bastion for
defending individual rights to a means by which the majority could
overrun them. If senators or senate candidates wouldn't support
legislation to benefit the masses at the expense of the productive
minorities, the voters increasingly would put others in office who
would.
All
the benefits which the politicians were to promise ever more lavishly
to the voters as years went by had to be paid for in some manner.
Here's where the income tax and the Federal Reserve System came in
handy. As government promised more and expanded its powers, it had to
tax more. When it became a system of universal plunder trying to
benefit everyone at someone else's expense, the losses were becoming
too great to be paid through taxation. So it became politically
necessary to resort to inflation, which the Federal Reserve System
facilitated so conveniently. As Big Government undertook to provide
more and more for everyone, it resorted to the ultimate means of
plundering everyone.
Before
the income tax, there was widespread acceptance that people had to
work for a living and what they earned was theirs by right—a
recognition of the cause-and-effect relationship between an
individual's labor and the resulting property. After the income tax,
people's earnings came increasingly to be viewed as collectively
belonging to society, rather than to individuals who earned it. A
man's life was no longer the determinant of his rights; other people
were. They would decide, through the governmental process, how much
of an individual's earnings would go to him and how much would go to
society through taxes. In place of recognition of rights as a
natural cause-and-effect feature of man's existence, the distribution
of property—in this case, money earned—was now to be determined
by the use of force: threats of fines or jail sentences imposed by
democratically elected government enforcing tax laws. Money would
flow to groups with no cause-and-effect claim but favored by
politicians and bureaucrats—including themselves—all through
violation of other people's property rights. Government violates
property rights not only by direct transfers of wealth from some
people to others but also for environmental, social, educational and
financial and other business regulations. Those are additional
downgrades of the importance of property rights.
The
Federal Reserve enables the government to acquire money not only from
taxation but through inflation. Taxation takes money away from
people; inflation takes value away from their money as more money is
printed to pay for increased government spending. Government borrows
money, but the borrowings are not repaid; they are simply rolled
over, covered by borrowing more and spending more. When spending
threatens to exceed the debt limit, no problem. Congress simply
votes to raise the limit, and the process continues worse than
before. This is the result of democracy, which politically rewards
stealing wealth from those to whom it rightfully belongs, spending
it, and passing the debt to future generations.
The
national debt has more than doubled in just ten years. Up from $9.2
trillion at the end of 2007, the U.S. federal debt is now $20
trillion, which is about a trillion dollars more than our economy
produces. Our debt-to-GDP ratio is 106.4% compared to 69.2% before
Obama took office. But a recent study by economists Laurence
Kotlikoff and Adam Michel concludes the true level of federal
government debt is 12 times the entire U.S. economy and the total
U.S. government debt is $210 trillion.
“Congress
plays games with the budget in so many ways that it is hardly a
stretch to say that if it were held to the same accounting standards
as public corporations the entire Congress would be in jail for
fraud,” says Paul Gutterman, director of the Masters of Business
Taxation program at the University of Minnesota. (This quotation is
from a Star
Tribune
article February 22, 2013, which cannot be found through Google, and
the Star Tribune no longer shows any record of it, as though it never
existed; however, I have a physical copy of that newspaper showing
Gutterman's article was published on that date.)
I
am in favor of a balanced budget amendment under an Article V
convention to amend the Constitution. It is one of several I
recommend in my book, but I neglected to mention that an Article V
convention should also include requiring the federal government to
comply with the same accounting standards as private corporations.
That would put an end to phony accounting practices of the government
which Professor Gutterman says are downright fraudulent. I hope that
others who are active in the Article V movement will push for such
accounting reform.
Contrary
to the PBS program, democracy did not advance progress in the U.S.
It weakened property rights and sound money, both of which were
distinguishing principles of the success of Greece and
the
United States. Montesquieu wrote, “The deterioration of every
government begins with the decay of the principles on which it was
founded.” Democracy played a role in advancing decay in America,
not progress.
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