I see a lot of common ground between liberals (i.e. leftist Democrats and independents) and libertarians (big L and small L). It’s unfortunate that a few fundamental issues divide them because there’s so much room for collaboration, especially when it comes to the calamitous policies of the Federal Reserve.
A Solution: First Steps
First, people need to chill out on both sides of this debate. Second, realize that what I’m proposing is not new, just misunderstood. I’ve jokingly called myself a libertarian socialist before, but today I found that there really is such a thing.
Now, what I’m about to do will piss off both liberals and libertarians, but I need to criticize both approaches before we can find a happy medium. This might be painful for you if you fall on one side or the other, but please bear with me; each side will get its fair share of abuse. And praise.
The libertarians, especially social conservatives, need to realize that they do try to protect rich too much even though it’s the rich who created the Fed and many of our current economic problems. It’s the rich, after all, who can afford to thrive during times of moderate to high inflation because they can hire a team of accountants, investment bankers and so on to ride the rough waters of fiat capitalism.
Some well-meaning libertarians, being perpetually out of power, are gradually seduced into supporting right-wing bombthrowers like Glenn Beck, which only makes them look stupid, racist, backwards and irrational to a liberal. The tea parties have not succeeded because they are partisan and co-opted by mainstream Republican politicians like Minnesota’s own Michele Bachmann, tapping into anger and doing nothing to really change things. If they were non-partisan End the Fed rallies that might be a step in the right direction. But many libertarians hate liberals because the Democrats who get elected tend to be corrupt establishment figures — just like Republican politicians.
Conversely, the leftist populists need to realize that Obama is not the savior they want him to be. He’s a politican like any other and he’s just playing the game. Note how little has changed since he took office. He’s made lots of noise about change, but our Empire is still killing peasants in Afghanistan, our privacy is still nonextistent as warrantless wiretapping continues, and our economy is still in the thrall of the rich as Bernanke gets re-upped for another term and the idiots who supported deregulation (like Summers) get cushy jobs in the administration. Meanwhile, Obama’s tackling (and losing) the health care fight when he should be focused on the economy first and foremost. I support universal healthcare, but the conservatives are right to question how we’re gonna pay for it. Shouldn’t we get our economic house in order before we make massive commitments to future spending?
The Health Care Riddle
The health care conundrum is a medium-sized part of our economic problems. The bigger problem is exactly what the Libertarians are talking about (and what progressive left-wing publications like the HuffPo are finally starting to realize): The secretive Fed’s embrace of fiat currency and fractional reserve banking will make peasants of us all.
This government, and everything in it (including Obama) is controlled by the banking apparatus. Look at how quickly the bailout and stimulus packages were passed in comparison to health care reform. And yet we could’ve easily paid for health care for every single American with the money we threw at the bankers so they could erase the red ink from their bottom lines and then refuse to give loans to regular people. Bonuses to executives are already back to pre-crash levels.
My point is that unless we fix the underlying issue we’ll be back at square one again. Unless a new amendment is added to the Bill of Rights guaranteeing free health care for all (not bloody likely) the bankers will find a way to put us back in the poor house again. Congress will bankrupt whatever public option we create unless it is rock-fucking-solid. Because of the inflationary and demographic bubbles we face, Social Security and Medicare will likely go bankrupt within a few decades. How will adding more financial obligations to the pile help us solve this mess?
Sometimes Society is to Blame
The typical libertarian response is to say “Get government off my back!” I think libertarians are susceptible to Republican messaging because the Republican politicians pretend to be in favor of limited government. And both libertarians and Republicans see poor people as failed and lazy.
Here’s something libertarians can learn from liberals: Sometimes the main forces that cause poverty really are society’s fault. More specifically to blame: government and corporate interests from banking to health care who are in favor of fiscally incapacitated citizens who thus become dependent on the state and the state’s favored corporations. Fiat currency and fractional reserve lending have created the underlying conditions that make this economic incapacitation possible.
Spending Our Way to Prosperity
Liberals have traditionally tried to solve this problem with even more government intervention. They see government as a tool they can use to elevate the playing field and give those people a shot at crawling out of poverty and back to fiscal independence. Libertarians have largely cried foul but haven’t proposed a practical solution and have in fact fallen for Republican Party propaganda (especially on taxes) when they should have stood with the poor. It is the poor who suffer most from the Fed’s policies.
Yet liberals who think we can continue to spend our way out of this mess are sadly mistaken. In fact, we’ve already spent far too much. It is perhaps the best response to the problem within the context of an inflationary world, but the Keynesian approach will ultimately collapse because the inflation is too destabilizing and it’s also incredibly iniquitous. Who here gets a check for inflation each month? Not me, but because of fractional reserve lending practices, banks benefit disproportionately from inflation. Liberals, just like right-leaning libertarians, are inadvertantly supporting the rich elites who create the problems they decry.
The Tree of Liberty
This crisis threatens to rend our nation apart but also presents an opportunity; a chance to end the Fed and the economic inequity it has wrought. And the only way that can happen is by unifying liberals and libertarians once again. Their names come from the same root word, after all — Liberty. Both sides need to make bold changes to come together, but the only way to achieve true economic liberty is by a combination of tight regulation of banks and specie-backed currency.
We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence. “Necessitous men are not free men.” People who are hungry and out of a job are the stuff of which dictatorships are made.
Political liberty cannot come without economic liberty.
FDR Did Better Against the Nazis Than The Bankers
A lot of Libertarians hate Franklin Delano Roosevelt, but what they don’t seem to realize is that he was fighting an all-out war against the corrupt banking and corporate interests who were colluding against the common man, and the levers of government were the only powers the president had available to him. The banker-controlled Fed, after all, caused the first Great Depression and FDR was forced to act quickly to stem the bleeding. Read this link for more insight into FDR and why he abandoned the gold standard — Europeans had already ditched gold and were buying up ours with their fiat currency, but FDR wanted to work out an international gold standard once the crisis subsided. And indeed, Bretton Woods was an attempt to do just that.
Roosevelt has been slandered as anti-business by many on the right. He was not; he was anti-Big Business. He stood up for all of America, not just the plutocrats. FDR’s Keynesian solution was imperfect but it bought time and saved the Union. If he had not acted quickly the Business Plot of 1934 may have succeeded and America may have spiraled into despotic fascism, never to return.
Some libertarians have not been sufficiently suspicious of the motives of Big Business. They think that corporate rights are the same as personal liberty. They are not.
Corporations are amoral machines that must be controlled. Men should be free to do what they will, but who among us will argue that a man is free to run over people in his car because, by golly, he paid for that car and he controls it and he uses it to make money for his family, so anybody who tries to stop him is abridging his rights? Well, we shouldn’t let corporations driven by men to run amok any more than we should allow that of motor vehicle operators. It is imperative that libertarians understand that economic freedom is more fundamental and more important than corporate power.
A New Respect
Liberals, meanwhile, have long regarded libertarians a bunch of kooks; militia-joining types who are all paranoid gold-bugs who believe in anarchic and anachronistic principles. But libertarians have learned the hard way that governments can resort to tyranny whether they’re controlled by the Democrats or the Republicans. Democratic attempts to solve our basic economic problems have either been limp-wristed or misguided. Liberals need to take a look at the constitutional principles libertarians stand by and realize how closely they align with progressivism. Most importantly, liberals need to get past the false “left vs. right” dichotomy that the elites use to divide and conquer us. The marginalized, but proud Libertarian voters have defiantly supported their minor party despite no chance of winning.
Perhaps liberals will have more respect for libertarians and their journey through the political wilderness after the last 8 years of suffering their own indignity. Soured on big, invasive government (wiretapping, No Child Left Behind, literal invasions) during the Bush years, this is the ideal time for liberals to wake up and realize that they can only secure the freedom and prosperity by looking beyond the political and focusing on the very most fundamental monetary elements of our economy upon which the government and society are built. Libertarians are not greedy to focus on money; they are prudent. Unless we have a secure gold-backed money supply we will continue to have these crises, and at some point we can’t continue to solve them through social programs and endless spending. Inflation creates the poverty that we all fear. It’s time to end it.
This is my plea for liberals and libertarians to work together and remove the Federal Reserve’s charter. It’s time to take back our economic liberty. We don’t have much time to waste.