Progressive Feudalists

In Left and Right: The Prospects for Liberty, Murray Rothbard makes a good case about how Socialists are actually the middle ground between monarchists and libertarians. He does so by tracing the evolution of the political ideologies from the original French Assembly spectrum (wrongly considered to be the definitive political spectrum) to modern times where the different ideologies are thrown together basically at random until the original leftists are now considered to be on the right with their original opponents and the middle ground between the two is considered to be on the left.

He also neatly ties in progressives and fascists in with the feudalists, demonstrating how they are all superficial variations on each other, through a combination of direct ownership of the means of production, government and corporate mergers, and the regulatory state.

Progressivism has finally reached its final conclusion and become indistinguishable from the more extreme members of its family. Under President Bush and President Obama it has come to mean absolute power in the government and endless war, both for the sake of the ruling class. The rhetoric about having an omnipotent government for the sake of the people is rapidly fading away. First President Bush dropped any pretense about how "conservatives" favor any lessened role for the government in the lives of the people through the creation of the Transportation Security Agency and the Department of Homeland Security, and the passage of the USAPATRIOT Act, No Child Left Behind, S-CHIP, Prescriptions Drug Coverage for Seniors, and capping it off with the first round of Bailouts and Stimulus. Then President Obama dropped any pretense of how "progressives" favor any sort of civil liberty or commonality with the common man by continuing the bailout of Wall Street, expanding the War on Terror to include directed assassinations without a court order, expanding the War on Terror to include congress having no role at all, and passing a version of healthcare reform that as none of the goals that Democrats have clamored for years over such as Single Payer or other versions of socialized medicine, while also failing to move on any gay rights issues and expanding the Drug War.

Based on all of that, it is clear that Progressive now means an absolute authoritarian state with no concern for the people governed. It can still be debated if the US is a free country or a dictatorship, but there is no debate left that the leadership certainly has no regard for freedom and only has concern for their own power, and a willingness to shed as much of other peoples blood may be necessary to hold and increase that power. They have returned to their original root, described by Rothbard, as feudalists, the original enemy of libertarians.

It is time for liberals to abandon their “progressive” brothers if they want to reclaim what is left of their original identity as holding their ideology for the sake of improving the world and not just themselves. It is time for liberals to decide which way they want to go, it is time to choose between government and freedom, they cannot have both and they can no longer pretend that they can have both. It is also time for liberals to stop consider the term "liberal" and the term "progressive" to be interchangeable.

Indirect Subsidies

Sometimes the activities of the government can be truly mystifying when trying to understand. The whole subject of tobacco is one where nothing done makes sense. The product is both subsidized and taxed, subsidized so that the producers can make profits, and taxed to discourage people from the activity. The states simultaneously encourage people to quit smoking but depend on the tax monies generate from people smoking.

Moreover, in the 1990's, when lawsuits against tobacco companies by the states were popular as a way of recouping healthcare expenditures by the states, there were even more inexplicable complications. One company, subject to a lawsuit for the crime of selling a legal product to the citizens of a state, offered to stop selling the product in the state at all. The state responded by filing an injunction to force the company to conduct business while simultaneously suing them for conducting business.

The combination of supports to the activity and restrictions on the activity may seem puzzling, especially given the combination of subsidies and taxes. From an accounting point of view alone, removing both the subsidies and the taxes will result in savings through efficiency. The lack of subsidies will raise the price of tobacco to somewhere near the taxed price, but since the government isn't doling out money with one hand and collecting it with the other then there will be no transaction costs.

The reason this is not true though is because the layer of government that subsidizes the activity is not the same layer that taxes the activity.

In the federal system of the United States is that the states do not receive their income from the federal government but are instead responsible for their own budgets, their own revenue, and their own expenditures. Like any principle in modern government it is full out countless exceptions, most often in the form of directed funds for special projects, such as giving money for the construction of a community center. But unless there is a bailout of a state by the federal government, federal expenditures are not directed into the general fund of state revenues.

But if the federal government artificially lowers the price through subsidies, and the state government artificially raises the price through taxes, then the final effect is of the money being funneled through intermediaries to be received by the states. The consumer pays basically the same price, approximately, but a portion of that money is going to the states instead of to the farmer, and the federal government is paying the farmer so that the states can receive the money. So yes, the federal government does supply funds to the general revenue of the states, yet another way to prevent the states from gaining any ideas that they have any independence to stand up to the federal government when the federal government acts in an unconstitutional manner.