A Modern Adaptation of Libertarian Economics to American Society

Introduction

It is no question that in the United States we have some serious economic problems. Libertarians for ages have been warning about the dangers of government control of the economy but to no avail. Now, despite Trump’s good intentions or the intentions if Obama before him, our country is in serious economic crisis due to heavy handed government regulations. So below are my policy prescriptions for the American economy.

Currency

Our problems didn’t begin with taxes or regulations but with our monetary policy. No matter how stupid Congress or the President are with certain economic policies the economy can balance out the stupidity as long as currency is based on an objective metric of value based on market standards. However when a country separates the currency from the effect of market forces, like America did under Woodrow Wilson in 1914 with the foundation of the Federal Reserve, and the further strips it of objective value, as America did in the 1940s when FDR took us off the Gold Standard, it destabilizes the currency and makes the economy weak to inflation. In fact of the reasons for the Great Depression, poor management of lands by farmers, bankruptcies, and bad business decisions, the failure of the Federal Reserve to act was the most devastating. Of course this wouldn’t have been a problem if the currency was subject to market forces. However not only did Wilson strip the currency of economic forces but in the 1930s and 40s, until FDR finally took us off the Gold and Silver standerd, the Fed held Gold and Silver in their vaults causing a shortage in currency. This compounded the issue until FDR gave the Fed what they wanted: FIAT CURRENCY!

Today this has caused massive inflation. A decade ago it was possible to fill a shopping-cart with $100 worth of food. Now you’d be lucky if you could get enough to last the week on $100. Three decades ago, before my lifetime, gas was 75¢ a gallon. Today it is as high as $4 in some places. I will admit that there are other factors, taxes, regulations, oil spills, etc., that contribute to these prices however the inflation aspect is largely to blame.

The solution of course is to return to a Gold and Silver standard and end the Fed. This won’t be easy and might even cause some economic issues in the short term but in the longrun it will make our country better off.

Taxes

When the income tax was originally passed it was only a tax on the top 10% of the population. Very few people felt its effect and the rate was very low. But then Progressives got their dirty hands on the tax code and used it as a method of achieving their Socio-Economic fantasies. Ever since both Republicans and Democrats, instead of using it to fund the government, have used it as a tool of Social Engineering. This has drained the economy of otherwise benificial wealth. This is why the minnimum wage will barely provide for a single person let alone a family of four. If a person actually cares for the poor they will support accross the board lower taxes for everyone.

The solution is a flat tax. Allow everyone to deduct their first $20,000 dollars of income, their dependants, and charitable contributions. Cut off all other deductions and loopholes and tax all income, after deductions, by 10% accross the board. Also end all corporate and business taxes as well as the Inheritance tax. Replace the Fica tax with a 1% sales tax and eliminate all tariffs. This will drastically lower the prices of goods and allow everyone to keep more of their own money. The 1% sales tax will be more than enough to fund Social Security and Medicare.

Spending

The Federal Government spends way too much. The debt is $20,000,000,000,000 and climbing and the deficit is $20,000,000,000 and climbing. Some of this is due to currency manipulation by the Fed and will go away when we eliminate the Fed and restore proper currency however most of it is the result of the run amok borrow and spend policies that both Republicans and Democrats engage in. 

To fix this I would eliminate the following departments:

  • HUD
  • Education
  • Energy(except to regulate Nuclear Energy)
  • EPA
  • Labor (except for 32 weeks of unemployment benefits)
  • Amtrak(sell rails to private companies)
  • And the National Parks(sell land to private investors)
  • Foreign aid

Everything else would be cut by 20% across the board and the retirement age would be gradually raised to 75. This would very quickly create a surplus. Then I would pass two amendments: a Balanced Budget Amendment and a tax rate cap amendment. This would prevent them from borrowing and spending in the future, except during a state of emergency determined by a three-fourths vote of congress or a constitutionally declared war, and also prevent them from taxing above 10% of a person’s income.

Regulations

The Regulatory Code used to be only a couple hundred pages long. Now it has grown so long and burdensome that instead of innovating companies hire lawyers to avoid violating regulations and lobbyists to prevent new regulations. This is detrimental to the economy. I want to do a few things:

  1. Eliminate all regulations that are 40 years old or older.
  2. Eliminate duplicate regulations or regulations addressing the same thing.
  3. Eliminate any regulation that the constitution doesn’t specifically give power to the Federal Government over.
  4. Pass an amendment requiring two regulations to be axed for every new regulation passed.

 This would reduce the regulatory burden on business.

Trade

Trade is pretty hampered and that is a problem. People should have the right to trade with other countries in the same way they can trade with their next door neighbor. Also, as Otto T. Mallory once said, “If goods don’t cross boarders armies will.” Thus Trade is instrumental to peace. I think that all tariffs, embargoes, and quotas should be removed unless we are actively at war with the country in question. If a country is funding terrorism or is dictatorial we can prohibit the sale of weapons and ammunition to said country or the purchase of drugs from said country however outside of this we should trade with them.

Final Thoughts

The above policies are neither perfect nor exhaustive. But they are a step in the right direction. Said policies would make America more prosperous and free. They are also highly beneficial to all classes but especially the lower class which is hurt the most by the heavy handedness of government control of the economy.

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