The Scottish economist Alexander Tyler framed the end of democracies in the starkest of terms …
The Republican party understands this at the deepest levels. It is part of our creed. It is sometimes expressed simplistically as “no new taxes” but it is operationalized by our Senators and Congressmen who stand firm between the mob and the treasury.
Last week we watched as the guardians stood firm briefly, and we hoped we were watching the Battle of the Bulge, which looked very bad for the Allies but eventually was turned into a defeat for the forces of Nationalist Socialism (Nazis). Unfortunately, we instead saw the Battle of Thermopylae, as the forces stood briefly Monday, but by Friday had been betrayed and routed.
Monday we stood firm on principles of the free market, but in what has become standard behavior in these sorts of emergencies, we attached enough earmarks to hide the wolf underneath, and the bill was passed.
Some of the earmarks masqueraded as reduced taxes, but in a byzantine twist of logic, these are not seen as earmarks. Basically this confuses “earmarks” with giveaways. It is not the giveaway that makes earmarks insidious. It is the granting of special dispensations to one group at the expense of the rest. It could be argued that tax relief is really more of a “not taking away”. This is a subtle point, but since the real crime is the use of tax codes to reward selected sectors by not taxing them the re-labeling is a semantic argument that only a lawyer could love. There is no free market in that strategy.
I would argue that socialism is nothing more than the intermediate transition between freedom and serfdom. In 2000 we had a mere 1.46% taxation stood between us and the tipping point predicted by Dr. Tyler (admittedly an ad hoc measure, but instructive none the less). I fear that in the short time between Monday and Friday we may have actually seen the beginning of the final end to our economic freedoms and, by study of history, of our prosperity. Mark the tape, we should at least know when we have crossed this Rubicon. Alae iacta est.
