Posts Tagged ‘oligarchy’

Are We At A Nexus?

Monday, June 26th, 2017

Dear Friends,

It seems to me, the corruption in every molecule of our governments, simply cannot be denied any longer. Even where there is not corruption there is the taint of corruption, if by nothing else than, proximity. We see the result of corrupt leaders, the upward bound crime rates, drug epidemic, falling real wages, the war on savers, and all manner of economic and societal upheaval… that is corruption oozing down and into the people. Ooze, being heavier than air, will always seek a lower level. All factions, smothering in ooze, are forced to recognize the out of control corruption and are willing to entertain the thought of addressing it, making this time a nexus, a point in time when the dominant paradigm can be shifted.

When Obama was lying about Benghazi, fast and furious, the IRS scandal, etc… the progressives in the media cheered it. Now that there is a member of the Bourgeoisie in the White house, something the new class had thought it would never see again, they are in full panic, that he will wield the power Obama did, and now are willing to address government corruption. Corruption is all well and good when they are the ones wielding it, but once it slips from their hands… they panic, because they know what they did, and would do with it again. So we have even the new class progressives willing to at least curtail government’s ability to exploit it’s extra constitutional authorities… until they get back in power.

The state of Illinois and territory of Puerto Rico are effectively bankrupt. They will not be the last either. Many other states are in dire financial dilemmas due to a myriad of factors. Pensions are the one most mentioned but other more intractable economic issues lurk in the dark. The actual level of unfunded liabilities of the states is unknowable, which amounts to a potential sinkhole, directly under your economic bed. The soon to explode cost of medicare and social security, never mind the perpetually expanding welfare state can only bankrupt even the most well taxed state. The higher the demand of progressives for the hard earned money of producers, to burn at the alter of the Keynesian economic welfare state, the lower the availability of money to everyone, making the ooze that fuels that money burn… offensive.

Small businesses have been on the get the corruption out of government for a long time. Small businesses are the targets of regulations designed to benefit politically favored factions. Usually large corporations but often smaller factions due to their vote getting ability, or some other reason that makes them favored of the political class. Small businesses pay the majority of business taxes, employ the majority of workers and create the majority of innovations, all of which are much more difficult when regulations get in the way, taxes drain capital, and bureaucrats demand the entrepreneur’s valuable time. Any lessening of corruption can only benefit small businesses.

Even large corporations might consider some backing off the rampant corruption. Of course it is large corporations that largely drive much government corruption, by rent seeking and government granted monopolies through regulations, taxation and tariffs, but if they see even their own fortunes slipping, due to the threat of the corruption benefiting another, they will get on board with anti corruption measures. Today all is pretty hunky dory for corporate elites, they break the law, the shareholders are drained of some money, no one goes to jail and the elite can continue to enrich themselves and the government at the same time, at cost to everyone else. If that paradigm were upended, by a loud outcry from the people and swept up in an anti corruption drive, the corporate elite could face punishment. That in and of itself might lead them to go all in to protect themselves.

The only faction who’s interests don’t align with the anti corruption theme is the legal oligarchy. Nothing enriches lawyers more than litigation and nothing creates more need of litigation than corruption. Ooze not only oils the wheels of the legal system it fuels the fire that drives it as well. Every form of corruption benefits attorneys, especially corruption in their own ranks. Corrupt judges create more need for lawyers just as corrupt lawyers drive need for more judges. Every time a judge finds a legal contract is null and void… due to an absurd unwritten clause implied by Santa Clause, every time a judge awards someone who spilled coffee in her lap a million dollars, every time a judge sentences someone to jail for following their conscience they create the need for more lawyers. So… we don’t have the legal system on our side.

When you have so many factions that wield real power in most countries, having aligned interests to limit government corruption, you have a nexus. What is needed is a plan. The Convention of states have a point. Their innovations would, if applied, drive down much of the corruption by limiting the incentive to it. Sadly, like all innovations in government, even constitutions themselves, is that the elite have to hold themselves to it. No group of human beings is capable of such a feat. To expect the elite to is the height of absurdity. I would argue, the convention of states should include a NUMA. Police the elite, force them to follow the Constitution, and the elite will follow the Constitution. Only an outside force, Constitutionally empowered, can limit the power of the all powerful.


John Pepin

The Party of the Ass

Monday, August 8th, 2016

Dear Friends,

It seems odd to me, the party that has democracy in it’s name, always and everywhere take the side of forces opposing democracy and align themselves with autocrats, and gets away with it so handily, is one for a prodigy psychologist. That party doesn’t even hide the fact, other than protecting a few speeches to Wall ST, so why are people not fed up with the lies, saying one thing then doing another, conniving, corruption and even the undermining of our very sovereignty. The party that has an ass as it’s mascot, it would appear, has a different agenda than it purports, as observed by it’s actions and discounting it’s rhetoric. With the ongoing Wikileaks email deliveries, the party of the people’s conniving is exposed to the very people it is conniving against. Fortunately, with the advent of fully digitized vote counting soon, if not today, they need not soil democracy in the hands of the unwashed masses.

Why do they get away with it? Are people really that vapid? Perhaps, or perhaps not, there are other factors to consider. Like the overwhelming power of the media, coupled with government, protected by the legal system, in bed with banks and corporations, all engaged in an orgy of power. When such forces align under a single faction, as they have in this time and place, it is very hard to buck the “conventional wisdom.” Anyone who has the audacity to disagree with the oligarchy is vilified into submission, by the media, law, government, Wall ST and academia. Such political power this faction now wields allows them to take off the mask.

You see it with the flood of former republicans to the democrat party, you know, the party of the people. The much hated Koch brothers have gone to the ass party along with all their billionaire buddys. Everyone knows, no one is more concerned for the plight of the poor than a billionaire, or knows how to solve the problems of the poor, like a central banker living in undeserved opulence. As the people vote for one candidate, the vote is rigged for the other and the party of democracy openly colludes with the media, to rig the election, because, you know, democracy is far too important to leave to the stupid voters. Proof is released, and the bolshevik turned menshevik by vote fraud, stands on a stage and kisses the pantsuit’s derriere… proving he is either a sellout or very very afraid.

The positions taken by the party of the people would seem absurd… given their supposed favoring of the democratic element of our republic. Voter identification is attacked, with spurious claims it does the opposite of what it has been empirically proven to do, based on an emotional argument. We are told that people who have to have id to live in our society, don’t need them to vote, because getting an id is too difficult? If that is so, then why not outlaw ids altogether? If they are such a burden why not outlaw them, for food stamps, to drive, for heating assistance, social security, etc… because there would be fraud maybe? Fraud in those programs only steals our money, vote fraud steals our individual sovereignty, and destroys the democratic element of our republic.

The fleeing of republicans in name only to the party of the little guy, shows where their true allegiances were to begin with, and so is not a bad thing. Everything is more clear in the light. As more and more information about the conniving, of the party of the most transparent administration comes out, the truth will be ever harder to deny. Even zealots will have to allow a synapse or two to fire. The revolt of the people from the chains on our minds the elite have so carefully forged for us is underway. The elite let us know who they support, every time they refuse to report a story, blow a story out of proportion, criminally charge someone for exposing crime, and fail to charge someone for obvious felonies. We have a selection between the elite’s choice, someone proven to be corrupt, a liar, a conniver, and ambitious beyond measure, or the people’s choice, someone who claims to being corrupt, a liar, a conniver and ambitious beyond measure.


John Pepin

Limited Government or Usurpation

Wednesday, March 30th, 2016

Dear Friends,

It seems to me, what limit to the law if the lawmakers are not held to it, furthermore, if the lawmakers do not follow whatever constitution they are supposed to, then what limit on government? Law then must become mere usurpation and government must serve the elite not the people. It is a self evident fact that when a class serves only it’s own narrow interests, economic destruction ensues, social upheaval follows and violent revolution comes shortly after. History is unambiguous about this. In fact, there are names for the various wrong forms of government enumerated by Aristotle, Tyranny when a monarch serves only his own interests, oligarchy when the aristocracy (elite) serve themselves and democracy when the polis is tyrannical. Everyone is served best when everyone serves everyone.

The class warfare theory of human history is undeniably false, at least as it pertains to economic classes since most of human history has seen tension between factions of the elite, and only rarely between the elite and the people, but when class is defined as faction then it holds some truth. Faction is like fire, it consumes a nation, leaving it in ashes. Every great nation, city state and empire has seen this happen to it. At the outset all the people work together to build a great society. Once the society has been built, the people split into factions, each vying for themselves. The more prosperous the nation becomes the more factious the people become. Naturally, the faction that has the most power is the one to come out on top, these are almost always the lawmakers.

Those who write the laws may be the people as in ancient Athens, the aristocracy as in Venice or a monarch as in feudal Europe, but in all cases there is a defined group that writes the law. When a monarch writes law that benefits all of society, that society flourishes, and when he or she writes laws to serve him or herself, then the country crumbles. The same holds true if the lawmakers are a class, faction, heirs, elected or appointed. The type of government is also irrelevant. Monarchy can have liberty, private property and prosperity while democracy can be illiberal, usurp private property and be filled with poverty. What generates wealth, liberty and prosperity is that the factions, classes and groups work for the benefit of the whole.

Lawmakers usually are not constrained in their actions. There is no overriding legal authority to hold them to their laws or constitutional limits, except the police and military, which they have total control of. If the lawmakers choose not to hold themselves to their own laws then why would they limit the law? They could freely use law to advance their personal self interests with impunity. Passing laws that move ever more of the national wealth into their own hands would be a snap. Money isn’t the only thing that can be usurped. If they sought sexual gratification rather than wealth then they could molest interns as they wanted, if they wanted to never be criticized they could pass laws to jail anyone who criticized them and if they desired godhood they could merely have statues made at the public’s expense and placed in city centers. If those who make the law are not held to those laws there is no limit to the usurpations they can engage in.

Constitutions were an invention to constrain those who write the law, but even under a constitution, if the lawmakers don’t hold themselves to it, no matter how well written, how insightful or how intelligent the framers were, it is moot. Since people are usually unwilling to hold themselves to a rule that limits their self interest, especially egoists, then constitutions cannot function alone. To argue those who make law are somehow not human but angelic is to argue up is down. Especially in the light of past human governments, where the lawmakers were not held to their own laws, or indeed the constitutions that were designed to constrain them. Until the lawmakers are forced to follow every law and letter of the constitution, there can never be real liberty, true prosperity, no one’s private property or person is safe from usurpation. Until there is a NUMA or Fourth Branch, creeping tyranny will ever hold mankind in it’s cold selfish clasp.


John Pepin

All Hail Our New Oligarchs!!

Thursday, July 2nd, 2015

Dear Friends,

It seems to me, we are seeing the results of the new class’ idea that Our Constitution is a “living breathing document” philosophy, in that what it says is irrelevant, what it means is a non sequitur and the original intent is now utterly abandoned. So now, instead of a fixed document strictly enumerating the role, powers and limitations of our government, we have a meaningless rag that exists only to give the new class elite a faux legitimacy. Therefore, we now live under what the ancient Greeks called, arbitrary rule. The laws are arbitrarily set and enforced by the elite for their benefit, not the benefit of society. The new class is a defacto aristocracy, they are the only source for every judge, lawyer, congressman, President, college professor, reporter, editor, etc… Aristotle called an aristocracy that serves it’s own interest oligarchy. So our once Constitutional republic with a limited role of government has metamorphosed into an oligarchy that has arbitrary power.

What makes a king a king? Public opinion… If the people woke one morning and forgot that King Eggbert was king, and thought Wilbur Underwater is and has always been king, Wilbur would be king. If Eggbert stood and proclaimed he was and had always been king, he would be put in an insane asylum. It is as simple as that. If the public believe a person is king, then he or she is, alternatively, if the public believes the government can do a thing, then it can. If someone stands and proclaims that thing is illegal for the government to do, he or she will be roundly criticized a fool, since everyone “knows” they can! That is why the elite today get away with what they are doing, the public’s opinion is that they can. Public opinion has been changed from understanding the original meaning of the Constitution and the Framer’s intent, to a contemptible ignorance of it, because the new class has been pushing that message into the zeitgeist for generations.

The Legislative branch has abdicated it’s powers to the Executive and the Judicial. Laws are now made, enforced and infractions punished by the Executive. The Bureaucracy is essentially Philip Dru Administrator. It answers to no one but the President, making the President essentially a king in fact if not in name. The Legislative branch refuses to use it’s power of the purse to reign in an out of control President, because they support the US becoming an oligarchy with arbitrary rule. Since they are the oligarchs. If a President tried to return the US to Constitutional rule however, he or she would be assaulted by every branch of the government, media and the professional agitators. The new class hold on the mechanism of government is iron fisted.

The Judicial Branch has been increasing it’s law making powers for generations. In the 1940’s, the Supreme Court ruled that if the Federal government wants, it can outlaw people growing their own food on their own land. As absurd as that sounds it was a landmark ruling for Franklin Roosevelt and his progressive policies. That ruling led to the bureaucracy. In 1973 the Supreme Court invented a new “right,” that a woman could murder her unborn baby at any time for any reason. Since there was no negative consequences for the judges who made up a new right and wrote it into our Constitution outside the prescribed Constitutional process, (they should have been impeached by the Legislative branch), that opened up the total power of the Supreme Court to change our Constitution, however and whenever they wished, for whatever reason. In 1989 Mistretta v. United States the Supreme Court ruled the Legislative Branch could delegate it’s law making powers to the Exectutive, ie, the Bureaucracy, in violation of the nondelegation philosophy. All of which led directly to the newest usurpations by the Supreme Court, Gay marriage and rewriting Obama care.

The ruling about gay marriage is not about giving someone a new right, it is about forcing others to do what government wants. No one cares what consenting adults do. I am not trying to force others to follow my morality, Gay marriage however forces me to follow theirs. If a Gay couple want to force a business owner to be involved in their wedding, regardless of the moral conviction of that business owner, the full power and weight of the Federal government will come down on him or her forcing them to. What a slippery slope that is!! What it now establishes is that the government is now the arbiter of morality! Believe something other than what the government wants and they can punish you for your very thoughts.

Book burning cannot be far away now. All the government need do is label the ideas in any book “hate speech,” and it follows, they can seize all the copies and burn them. Now that the Supreme Court has given the government, and thereby the new class, arbitrary power to regulate morality and thought, it won’t be long before the government will decide what preachers can say at the pulpit, what ideas can be written down in books and even what you can say in your own home. There can be no greater tyranny then a government regulating our very thoughts, and no government that can, will ever allow us to change it. Remember; No matter how much you like what they are doing with that arbitrary power today, beware, you might not like it tomorrow, but then it will be too late, you gave them the right to do it today.


John Pepin

Oligarchy of The Red Tapeworm

Thursday, March 27th, 2014

Dear Friends,


It seems to me, the legal system is supposed to facilitate market interactions, but in reality the legal system more often than not, is a parasitic drag on the free market. Like a tape worm imparts some resistance to diarrhea when it is small, it eventually outgrows it’s host, and if it isn’t dealt with, the host eventually starves to death no matter how much food they eat. This is not to say that there should be no laws. It is to say that the legal system in most western countries has out grown their hosts, the economies, and is draining those economies the vital sustenance, capital, they need. Many people have pointed this out to no avail. The reason the legal system always overtakes the national good is because Lawyers are a defacto oligarchy. Our economic futures rest on our ability to prune back the parasitic nature of our legal systems, else we and our children will live in an economy that is being starved, by the very legal system that is supposed to protect it.


Market economies need standards, this is a basic fact of any study on market economics. People have to be able to make valid legal contracts, that are binding, we have to be able to sue for redress of economic harm visited on us… among a whole host of other valuable services a functional legal system provides. No economy can do without laws and standards. However, as Madison said in The Federalist Papers, when those laws become so abstruse, even a person knowledgeable in the law cannot possibly understand them all, you have tyranny.


The legal system is essentially a faction. This faction, like all factions, seeks the best interests of it’s members, no differently than a labor union. The legal faction is made up of attorneys. It is not coincidental that all governments have a large portion of their members as attorneys. Modern governments are broken into three branches, Executive, Legislative and Judicial. This was Montesquieu idea, to limit the source of most tyranny that ruins republican government, an overly powerful Executive. Break the authority from the Executive to adjudicate over law, and form it into a new, or third branch, the Judicial, (the lawyer’s exclusive branch). So, since all three branches are largely populated by lawyers, most legislators are attorneys, most Presidents have been lawyers, and with one branch exclusive to lawyers, the legal faction is overly represented in government. This makes the legal faction an oligarchy. They eventually rule, not in the interests of everyone, but in the interests of their faction, the classic definition of an oligarchy, ala Aristotle’s wrong forms of government.


Many learned people have suggested tort reform but it never gets anywhere. That is because the very people who would have to pass it, lawyers, would suffer real harm from it. The legal faction’s power would be diminished and the members of it, attorneys, would suffer economic harm. That is why tort reform is always dead on arrival whenever anyone offers it. Moreover, every time a new regulation is written, a new law is passed, a court finds a business has to pay a litigant for burning herself with hot coffee, or a judge rules a legal contract is null and void, along with many other legal abuses, the demand for lawyers goes up. Economics 101 is supply and demand, as the barrier to entry is raised by more and more stringent testing and pretesting requirements, lowering supply, while at the same time the demand for attorneys is elevated by absurd rulings and tomes of arcane regulations and laws, raising demand, the profit for lawyers must necessarily go up.


That is why the media and lawyers attack oil company profits in the tens of billions but no one decries the profits of law firms that run into the hundreds of billions. Doctors are vilified for charging what they do to save the life of a child but the absurd charges attorneys get away with are ho hummed. The legal faction controls the government and thus the conversation. The fees of lawyers goes up, along with the regulations they pass and society has to follow, in a Fibonacci curve while economic growth dwindles away. No matter to the legal faction however, their fortunes continue to rise. But, like the Roman empire was destroyed, in no small part by the stifling regulation and bureaucracy, their legal system built up, our modern societies are being eaten from within by the red tape worm of the legal faction. Most likely, we will end up like the Roman civilization, because we refuse to learn the lesson history teaches us.





John Pepin

Our Flawed Primary System

Sunday, May 26th, 2013

Dear Friends,

It seems to me, the primary election system for President in the United States, is a wolf in sheep’s clothing. The bastardized system we now have, to decide who will represent either of the two major political parties in the US, insures the will of the people is not met. Such a system, one that undermines the people’s wants and needs in favor of the Elite’s preferences, is one that is in great need of renovation. To continue with such a flawed method, is to perpetuate the horrible election options we have had for the last few decades, along with ever lower voter turnout.

Today the Presidential candidates have different elections in various States at assorted times. The system is such that if a candidate that the Elite don’t like, wins the first State, the Elite have sufficient time to undermine his or her candidacy to get their man in. This insures the Elite’s candidate gets both the Democrat and Republican candidacy. The Elite cannot loose, and the people cannot win.

We are given the illusion of fair elections by this fatally flawed system when in fact we have very little say. Take the last election. Mitt Romney, who by all accounts is a decent and good person, was the least liked by the Republican electorate. Yet he won the primary. Other candidates, like Michele Bachman was far better liked and even won the initial straw poll. That initial win put her in the crosshairs of the media and political elite however. They pulled out all the stops to vilify her at every turn, undermining her candidacy to the point of making her a laughing stock.

In 2008 Hillary Clinton was the most qualified on the Democratic side, yet she was crushed under the wheel of the unbiased media and the political Elite, in favor of Barok Obama. As it turns out the candidacy of Obama was terribly flawed. Had he gotten even a smidgen of scrutiny by the unbiased media, he couldn’t have won a single State. The media gave his drug use a pass, they ignored his associations with domestic terrorists, they gave his lack of experience no mention, Obama’s anti American pastor Jeremiah Wright was glossed over, they never reported on his questionable birthplace, they overlooked his overtly communist leanings and they pilloried anyone who brought these flaws up. Compare Obama’s treatment at the hands of the unbiased media to the treatment Herman Cain got.

When you have a system that insures the Elite’s selection of both candidates in both parties, you have a system that is set up to protect the interests of the Elite, at cost to the interests of the people. Such a system is tilted in favor of candidates that have the political leaning of the Elite… in academia, media, culture, politics and wealth. The interests of the people to have limited government is undermined, so the power of government can be exploited, to protect the interests of the Elite. The result is that we have elected representatives that are unilateral in their political view, progressive. The unbiased media decry that there are any politicians who have a different political view and take every opportunity to paint the non-progressives as extremists and anti American.

The answer to this dilemma, is to have a primary election in June or July, where every State votes at the same time. This would curtail the Elite’s ability to push the primary election to their man. Such a system which would essentially mirror the November election, giving power to the people, and removing that power from the Elite. To continue with a system, one that empowers a small faction of the population to have outsized influence on the outcome of elections, is to anoint that faction an oligarchy. Modern history shows this to be the case. Once government is essentially an oligarchy, the machinations of government can be used to do such things as… leave soldiers to die if it is politically expedient, lie under oath without real consequence, use the taxing power of government to suppress their political opponents, mislabel their political opponents as enemies, tap the phones of the press to suppress distribution of information, send guns to drug lords while vilifying the Second Amendment for it, and act above their own laws while ignoring the Constitution. Such a system cannot be said to lead to tyranny, because it is in fact tyranny, disguised as democracy. No matter the quality of the sheep’s pelt the wolf in it is insatiable.


John Pepin

The Irrelevancy of Congress

Thursday, March 28th, 2013

Dear Friends,

It seems to me… workers in various industries have a tendency to give up their work. This happens many times in union shops as well. Often, difficult jobs are rejected by workers, and the work is then performed by contractors. Eventually, the workers that have given up all the difficult tasks, find their jobs become easier and easier, taking up less and less time during their day. All the difficult tasks are given away to contractors. Without exception, those workers become redundant and a burden to the firm that employs them, and as a result, they are laid off or replaced with contractors. This paradigm has appeared many times in many industries around the World. Congress should beware of this trend, because they are at the that road, and are nearing the end of it.

Congress has given up most of it’s responsibility to the Bureaucracy, the Executive and the Judiciary. Today, any major public concern is far more likely to be addressed by the court system, than by the political system. As Congress becomes more and more superfluous, and redundant, they will continue to loose all the power to legislate, control government’s purse and write the laws they pass… and they will loose their jobs.

The Court system is the source of most of our social legislation today. No social ill is exempt from legislation from the bench. From abortion to gay marriage the court system has become the legislator of last resort. This not only renders Congress irrelevant but sets a dangerous precedent. The court system has become an oligarchy by this paradigm. They pass laws that enrich lawyers at cost to the economy, liberty and common sense. The state of our republic is inevitably defiled by this action of the oligarchical Judicial branch. We suffer as a result… but our children will suffer far more as this trend continues to it’s logical conclusion.

The Executive now ignores the irrelevant Congress regularly. Obama is asked if he can go “around” congress almost daily by the unbiased press. They expound on the efficiency of an executive who wields arbitrary power. The fact that this is antithetical to Our Constitution gives them a shiver up their collective legs. This has progressed to the point where Obama has arbitrarily decided what laws to enforce and which laws to ignore. The check on the power of the Executive is eliminated by this very fact.

The bureaucracy has taken over almost all the tedious responsibilities of the legislative. Recently there was a Supreme Court ruling that imparted the bureaucracy with this power. The Supreme Court basically accepted that Congress had ceded their power to pass laws to the bureaucracy, the fact of their acquiescence being sufficient to set the precedent for the bureaucracy to take over most of the law writing and regulating functions, that are given to the Legislative branch under the Constitution.

Beware power granted because once granted it is very difficult to take back. Now that Congress has ceded so much of their power to legislate, control the purse of government and write the laws they pass, they have become redundant in all but name. This may seem a good thing to those who agree with what the government is doing today, but the real problem is, you may not agree with what they do with that power tomorrow. The limit on the Executive, Judiciary and Bureaucracy’s ability to ignore the national government, Congress, has become entrenched.

This trend has been going on for a long time now. The weal of politics turns slowly but inexorably. The legislative branch has willingly given all the tough jobs to contractors and scabs. Those that have inherited the tough jobs, don’t have to face the people’s wrath for their decisions, they are immune from prosecution for undermining Our Constitution, and they are only too happy to do it. The laziness of the Legislative branch have rendered them supercilious. But, they are happy to attend black tie parties, make a speech or two, and pretend to be power brokers. But, they are getting closer and closer to the day when the Executive will simply order them disbanded, and lay them all off. Will this make our liberty safer or more at risk?


John Pepin

What is in the way of job creation.

Thursday, October 4th, 2012

Dear Friends,

It seems to me, what is holding the American economy back, is red tape, regulation and redistribution. These three R’s create an environment that is toxic to small business development. In the economic ecosystem of a country, small businesses must have room to start, grow and compete. Untangling red tape ties up an entrepreneur’s capital, regulation steals the business owner’s time, and redistribution seizes his or her capital. The government and the oligarchy both have a vested interest in creating more red tape, more regulation and more redistribution, because they work to the advantage of the Elite. This paradigm is why it is so dangerous to a person’s finances to start a business. They also teach the people of a country, there is no sense trying to start a business, even if they have a great idea. The government will toss so many road blocks in the way that it is almost certain to fail. We see this play out in everyday life, whenever someone doesn’t start a business due to fear of government, and in the statistic of how many small businesses fail within a year of starting up. We have to get a grip on the three R’s, if we want to have any hope of jump starting the American economy, let alone the European train wreck.

Red tape can be a minor as a town requirement for a license. Especially if that license comes at the suffrage of a town council. The person who is friends with the town fathers will face little difficulty to start any business he or she sees fit. The person who is not a member of the town elite however, will face a long uphill slog, to get even the most basic permits from a town council. This is magnified if the new person is going to compete with an existing business that has the ear of a council member. Politics at city hall decorates small business start ups with red garland.

In a mature economy regulation grows faster than algae in an anaerobic pond. It is in the self interest of the oligarchy, (the legal system), to increase regulation and make it as undecipherable as possible. The entrepreneur who seeks to do business, must hire an attorney, to navigate through the shoals the regulation has piled up. This costs money that otherwise could have been spent improving the business’ capital stock. Every new regulation that is passed, increases the demand for lawyers, and therefore, every lawyer is in favor of more regulation.

Regulation also protects the jobs of entrenched bureaucrats. The bureaucrat must justify his or her well paid job. As more regulation is passed the bureaucrat not only becomes more secure in their job, but with more rules, comes more prestige to the dutiful public servant. As a result they work tirelessly at creating more regulation. Some regulate this and others regulate that. They don’t really communicate and so, the regulation overlaps, is contradictory and grows ever more smothering. Again driving up the need for attorneys to get a small business through the morass.

This all ties up capital and time the entrepreneur could better spend improving their business. Capital spent on an attorney, to protect the business owner from regulatory risks, could be better spent on buying more productive tools for his or her employees to use. This addition to capital stock makes the US more competitive with other nations. But when the money is wasted on regulatory compliance, only the elite benefit… the workers are less productive and our job prospects are more and more limited.

Redistribution through taxation is as pernicious as flesh eating bacteria. This allows the Elite to achieve the epitome of Thrasymachus’ philosophy. They get to appear all caring and virtuous while at the same time being all selfish and corrupt. They use other people’s money to be generous, but as Cicero said, “We must, then, take care that in our generosity, while we do good to our friends, we injure no one. Therefore the transfer of property by Lucius Sulla and Caius Caesar from its rightful owners to those to whom it did not belong ought not to be deemed generous; for nothing is generous that is not at the same time just… There is, too, connected with generosity of this type, in almost every instance, a disposition to seize and appropriate wrongfully the property of other men, in order to furnish means for prodigal giving.” We see from this, it is not by virtue that we seize the property of another to be lavish in our giving, it is in fact a self aggrandizing vice.

The last point to make is that more small business means more demand for labor. As everyone who has even an inkling of sense knows, as demand increases within a limited supply framework, cost goes up. In this case the increase in demand for labor increases the cost of labor. The cost of labor is the paycheck of the working man or woman. Couple this with, better tools make an employee more productive, a productive employee is worth more, and the worker is the primary beneficiary of increasing small businesses and higher productivity. Both are casualties of the three R’s.

Taken in it’s totality, we clearly see the negative incentives the system of red tape, regulation and redistribution, have on our economic ecosystem. These three things empower and enrich the elite in the legal system and government, but come at cost to the working man and woman… as well as the entrepreneur. The profit to the elite is a cost to the rest of society. To change this paradigm is very difficult; but not to change it would be disastrous.


John Pepin