From FDR to Obama – the Destruction of Our Rights

Franklin Delano Roosevelt proposed a “Second Bill of Rights” during his State of the Union Address in 1944. He noted that while “under the protection of certain inalienable rights…our nation has grown in size and stature, however—as our industrial economy expanded—these political rights proved inadequate to assure us equality in the pursuit of happiness….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.” He argued that we “cannot be content, no matter how high that general standard of living may be, if some fraction of our people—whether it be one-third or one-fifth or one-tenth—is ill-fed, ill-clothed, ill-housed, and insecure.” Under the auspices of “economic security and independence,” FDR laid out the following list of rights for the American people:

The right to a useful and remunerative job in the industries or shops or farms or mines of the nation;

The right to earn enough to provide adequate food and clothing and recreation;

The right of every farmer to raise and sell his products at a return which will give him and his family a decent living;

The right of every businessman, large and small, to trade in an atmosphere of freedom from unfair competition and domination by monopolies at home or abroad;

The right of every family to a decent home;

The right to adequate medical care and the opportunity to achieve and enjoy good health;

The right to adequate protection from the economic fears of old age, sickness, accident, and unemployment;

The right to a good education.

During and after FDR’s presidency, many programs were taken up to establish these so-called rights. The US government implemented a minimum wage with the hopes of providing people with a baseline level of income to be able to pay for life’s necessities, and created unemployment insurance so that people would have sufficient money to purchase goods when they lost their jobs. They created agricultural subsidies to protect farmers. They implemented all sorts of regulations and restrictions to stop (certain) companies from dominating their competitors. They created HUD and devised the CRA to force lenders to finance housing for those who were less well off, to ensure the “American dream of home ownership.” They provided healthcare for the old and poor. They created Social Security to allow the old to receive checks after they were retired. They expanded public education and pushed for everyone to receive a college degree. They empowered the Federal Reserve to flatten the business cycle and protect against recessions.

Today, King Obama looks to be finishing off the dirty work of the progressives of the last century. He is pushing for “fair” credit card charges, universal healthcare, onerous governmental control of business under the guise of environmental protection, government control of college loans and empathetic justices who understand the concerns of everyone who is not white, male or wealthy.

Essential to the justification for this platform is FDR’s argument that there be equality in the pursuit of happiness, and that “individual freedom cannot exist without economic security and independence.” What those like FDR and Obama mean is that there is not equality as an outcome of the pursuit of happiness, i.e. equality of condition. By economic security and independence, FDR and the King mean that people need safeguards so that they can keep their jobs, pay for products and be comfortable in retirement.

All of the ends that these progressives seek seem admirable, but the means to achieve them end up making it impossible for the ends to be obtained. Nobody wants to see masses of unemployed, sickly or uneducated people. But the government policies implemented to protect against these problems – to guarantee the “rights” listed above – end up leaving people unemployed, unhealthy and uneducated. They impoverish the citizens by destroying the inalienable rights that even FDR admits allowed the US to gain its strength as the world superpower.

It was not economic security or independence that allowed our country to thrive, but a system in which people voluntarily traded and had the opportunity to innovate and take entrepreneurial risks. Failure, not economic security, had to be a motivator because there was no safeguard against it; no notion of being too-big-to-fail. If you failed, you simply had to pick up and try again. The Federal Reserve in attempting to protect against failure ends up leaving the people economically insecure by decreasing their purchasing power and savings through inflating the money supply, and by incentivizing people to allocate resources improperly through the manipulation of money and credit which leads to the painful boom and bust cycle. The moral hazard created by providing safeguards against failing, be it in business or in one’s own life ends up weakening the people.

Economic security and independence come as a result of our rights to life, liberty and property, not the other way around. The best thing the government can do to ensure these rights, the rights that lead us to maximum wealth, the fullest employment for those who seek it, the best and cheapest medical care and the most practical and affordable education is simply to protect its citizens from attacks on their individual rights. Individual rights, not entitlements. Entitlements beget more entitlements. Entitlements breed laziness in the citizenry. Entitlements cause people to take things for granted. Freedom is the one thing that cannot be taken for granted. As Reagan put it, “Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.”

If you disagree with this in principle, then look at the results of the governments’ policies, those policies representing the antithesis of freedom. The US populace is probably dumber than it has been at any other time in history, even though a greater number of people are graduating from public high schools and attending colleges than ever before. Our economy teeters on the brink of collapse. Our government is larger, more intrusive and more corrupt than it has ever been. It is also effectively bankrupt minus its monopoly power to print money; interesting that it can have this monopoly power while also protecting people from “unfair business competition and domination by monopolies at home or abroad.”

Other examples of government failures abound. Amtrak is a money-loser, as is essentially all public transportation. If public transportation is not a money-loser, then I would venture to guess that it still isn’t as cheap or efficient as private alternatives. The US postal service is nowhere near as effective as FedEx. The DMV is a joke. The purchasing power of our dollar has decreased by over 95% since being under full control of the Federal Reserve, and we have had more frequent recessions than prior to the Fed’s creation. In countries with nationalized healthcare, we see that the price of better-quality, private healthcare increases, while public healthcare services leave people waiting sometimes for months on end for essential medical procedures. People flee to the US if their lives are in danger with good reason. If King Obama gets his way, they will have nowhere to flee anymore. Ironically, when it comes to almost every sector of our economy, while economists would have you believe that government corrects market failures, it appears that we would be far better if markets corrected government failures.

In the final analysis, there is not one good or service that the government provides that is cheaper and better than the equivalent one in the private sector, with the caveat that in terms of defense, only the government can coordinate the forces necessary to effectively protect us. And even then, the government outsources weapons development and certain tactical supports to private defense companies. And even then, the government screws up at times in the way it carries out its wars.

I want to reiterate that only the market can provide the people with the best goods and services at the best prices. This is the same for credit as it is for housing as it is for healthcare. If you take the market out of the equation and try to centrally plan, in the end you impoverish society and leave a nation to anarchy and revolution. Through a dictatorship, which is what the Second Bill of Rights effectively creates (a tyrannical government), you create the unemployed and the hungry that FDR speaks of.

With the burgeoning deficits at the state and national levels, the impending tsunami of inflation and the undermining of the rule of law and protection of life, liberty and property by our leaders, it looks as if in their quest to grant us the Second Bill of Rights, they have also destroyed the rights granted to us by an authority higher than that of our politicians, our natural ones.

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