THE PROGRESSIVE CONSERVATIVE, USA
An Online Journal of Political Commentary & Analysis
Volume VII, Issue # 76, April 7, 2005
Dr. Almon Leroy Way, Jr., Editor
Government Committed to & Acting in Accord with Conservative Principles
Ensures a Nation's Strength, Progress, & Prosperity
GOVERNMENT ECONOMIC PLANNING:
THE DICTIONARY DEFINITION OF SOCIALISM
By Dr. Ron Paul
SOCIALISM VERSUS CAPITALISM: GOVERNMENT PLANNING OF THE PRODUCTION & PROVISION OF ECONOMIC GOODS &
SERVICES VERSUS FREE INDIVIDUALS TAKING ECONOMIC ACTIONS WITHOUT INTERFERENCE BY GOVERNMENT -- LOWERING
VERSUS RAISING THE STANDARD OF LIVING FOR EVERYONE IN SOCIETY: ECONOMIC HARDSHIP VERSUS ECONOMIC
PROSPERITY
FULL STORY:
Whenever election time nears, we are bombarded with political ads and speeches by candidates telling us their great plans for running
the country. In the 2004 presidential election campaign, for example, Democratic Party presidential candidate, John Kerry, recited a
litany of supposed cures for nearly everything that ails us, beginning each sentence with the phrase: “I have a plan…”
The problem is that government is not supposed to plan our lives or run the country; we are supposed to be free -- free under the rule
of law, free under the United States Constitution and a government of constitutionally limited powers. That our public discourse strays
so far from this principle is an unhappy sign of our times. Those who believe in limited government, or constitutional government,
should worry every time a politician says, “I have a plan.”
Remember, government economic planning -- government planning of the production and provision of economic goods and services --
is the dictionary definition of Socialism. No matter how much the grand planners from both major political parties deny it, many of their
programs and proposals are Socialist.
Very high and steeply graduated federal income taxes, thoroughgoing regulation of important sectors of the economy, extensive
welfare programs, subsidies, wage controls, price controls, and manipulation of interest rates are government policies that represent
Socialist interventions into the economy. True, we do not yet have a fully Socialist economy. But that is why we must be vigilant and
label Socialist proposals for exactly what they are, so we can maintain and expand economic freedom in America.
Both history and economic theory prove conclusively that centrally-planned economies lower the standard of living for everyone,
except government elites. Historically, centralized economic planning goes hand in hand with hardship and bloodshed. Modern soft
Socialism, found in nations like Sweden and France, is beginning to implode of its own weight, as governments realize they simply
cannot fund cradle-to-grave programs without imposing tax rates that kill any last remnants of economically productive spark in their
citizens.
By contrast, Capitalism – which is to say economic freedom – raises the standard of living for everyone in a society. But we must
understand what Capitalism really is. Capitalism is not a governmentally organized system, but rather the result of free individuals
taking economic actions without interference by government. A true capitalist economy is neither planned by bureaucrats nor
steered by regulators. This is why it’s so important that we resist the idea that any president should plan our economy. If we accept
that government “runs” the economy, we accept a fundamental tenet of Socialism. We must understand that economic liberty is
every bit as important as political and civil liberties.
In a truly free nation, the government acts only as a referee by protecting property rights, enforcing contracts, prohibiting force and
fraud, and providing national defense. Such was the system envisioned by the Founding Fathers, who strictly limited regulatory
and taxing powers in the U.S. Constitution. Tired of having their business affairs managed by the Crown, they created a servant
government that would allow freedom and capitalism to flourish.
Today’s political rhetoric demonstrates that the servant has become the master. Most politicians, and too many Americans, have
accepted the premise that government should plan our lives and control the economy. This subservient mindset encourages
political pandering, as candidates for government office strive to convince voters of their superior plans to take care of all of us.
For a nation founded upon rugged individualism and self-reliance, the modern political landscape represents a wake-up call.
Unless and until Americans begin to reclaim the mentality that made us great, we are destined to slide further into an economic
and political malaise that cannot be solved by the grandiose plans of politicians.
LINKS TO RELATED TOPICS:
Government & the Economy
Liberals, Statists, Socialists, & Other Leftists
Dr. Ron Paul is a Republican member of the United States House of Representatives, elected from and representing the Fourteenth
Congressional District of Texas. Congressman Paul is considered to be one of America's leading spokesmen for constitutional
government, the rule of law, liberty under law, the private enterprise system,, free market economics, sound monetary policy, and
fiscal restraint on the part of the U.S. national government.
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THE PROGRESSIVE CONSERVATIVE, USA
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Dr. Almon Leroy Way, Jr., Editor
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