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Source link: http://archive.mises.org/13381/our-totalitarian-regulatory-bureaucracy/

Our Totalitarian Regulatory Bureaucracy

July 26, 2010 by

It would be very difficult to argue against the proposition that the US economy today is even more heavily regulated by the state than Germany was at the time Hayek wrote The Road to Serfdom. FULL ARTICLE by Thomas J. DiLorenzo

{ 15 comments }

Ron Finch July 26, 2010 at 10:01 am

To me, this is what Jefferson and the Anti-federalists realized. Regulatory Bureaucracy fails to accomplish its stated goals and diminishes Freedom. We are better off with no national executive and just let people go to a law court if they have disputes. Furthermore, you still have state governments to oppress the masses.

ABR July 26, 2010 at 12:30 pm

One might argue that the USA is a far cry from Weimar’s successor, Nazi Germany. But consider:

- Thousands are gaoled for selling and consuming drugs.
- Gitmo.
- Aggressive wars in Afghanistan, Iraq, …
- Usurping of private property rights: no smoking in bars, for example.
- Police routinely tasering and clubbing innocent victims.
- Government Motors.
- Increased ‘security’ that rivals a police state.
- Aggressive prosecution of capitalists who fail to bribe the right insiders.
- An enormous ‘peace-time’ military whenever the US happens not to be at war.
- Public education: Obama Youth.
- Chicago attempts to ban handguns.
- Singling out of Muslims as ‘suspicious’ characters.
- Waco.

That’s the short list.

Dave Albin July 26, 2010 at 4:12 pm

Great article – the incredible lists of all the agencies was powerful. I don’t know how you can look at that and not feel sad – how far we have sunk.

Louie July 26, 2010 at 4:53 pm

I’ve pondered the tipping point to a socialist classification – whether the 45% government control of spending was an unequivocal yes, or an alternative Misean determination: when the government controls prices, wages and interest rates. A tangent to ABR’s list:Federal Reserve; Nationalization and Defacto Nationalization of the principle financial institutions FNMA FRE BAC WFC C; Pay czar; Public Employee Pensions Welfare/Unemployment/SS Transfer Payments; Medicare setting medical reimbursement [prices] rates; Military Industrial Complex non-compete contracts; Agricultural subsidies; Housing subsidies; etc.

ron July 26, 2010 at 5:50 pm

It was the lack of sufficient governmental regulation that resulted in this economic debacle .
President Clinton killed the governmental initiative , by Brooksley Born , to get control of the pernicious derivatives risk

( please refer to –
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/14/AR2008101403343.html ) .

The problem always remains — what should the government regulate , to what extent should it regulate , what should it not regulate and how to get the government out of what it should not be regulating . Voting obviously is an inadequate solution . Otherwise , you have clearly indicated how totalitarianism is getting a stranglehold on the good ole USA .

laura July 26, 2010 at 6:47 pm

It was targeted organized crime. The “market”, in a way, created the “perfect regulatory environment” to produce the results produced. The “market” of the government was controlled by a few in order for the few to gain absolute monetary control and power over the many. The “market” worked perfectly. It was not a “free market”. It was an “organized crime market”. It was no accident what occurred. When you see something happen, you look for motive and opportunity.

The market of the regulatory structure was architecturally designed by those who controlled it to line their own pockets and rise to greater position of power at the expense of the few.

We do not need “more regulation” to solve the problem. What we need is different regulation by virtue of having different people controlling the reigns of power no longer allowing the few to game the system to produce the results they desired.

laura July 26, 2010 at 6:57 pm

It was targeted organized crime. The “market”, in a way, created the “perfect regulatory environment” to produce the results produced. The “market” of the government was controlled by a few in order for the few to gain absolute monetary control and power over the many. The “market” worked perfectly. It was not a “free market”. It was an “organized crime market”. It was no accident what occurred. When you see something happen, you look for motive and opportunity.

The market of the regulatory structure was architecturally designed by those few who controlled it to line their own pockets and rise to greater position of power at the expense of the many.

We do not need “more regulation” to solve the problem. What we need is different regulation by virtue of having different people controlling the reigns of power and a restructured system no longer allowing the few to game the system to produce the results they desired.

Russ July 26, 2010 at 7:22 pm

“We do not need “more regulation” to solve the problem. What we need is different regulation …”

I disagree. Different regulation is not the answer. A different medication to treat symptoms is not the answer. A medication that treats the root causes of the disease is the answer.

To continue the medical analogy, Ron’s diagnosis above is completely off. The problem was caused by excessive money, focused by laws such as the Community Reinvestment Act and institutions such as Fannie Mae and Freddie Mac, causing a bubble in the housing market. All those bad home loans created a level of debt risk that few could have correctly assessed because such a high amount of risky loans had never been seen before. To make sure this problem never happens again, we don’t need more regulations telling investors what they can’t do. We need less regulations telling the banks what they have to do, and less institutions that serve to reduce the impact of bad loans on banks (to encourage them to continue making bad loans).

George July 27, 2010 at 12:14 pm

Russ,

There has been a lack of regulation, for sure. Who’s been regulating the government, all of this time? Who do they answer to? The voters? That’s a slow, inefficient, and cumbersome process. Who has the Fed, the executive, etc… truly been answering to?

The most effective regulation is that which prevents fraud and force. What regulation prevents the government from defrauding people by manipulating interest rates and the supply of money, and how about rules of force such as legal tender?

Let’s look at a market where the government does not hold a monopoly in the way it does now, and then we’ll talk.

laura July 26, 2010 at 6:43 pm

I have this book. It is appalling and disgusting the level size and reach of government. Do you know that the only way to shrink Government is to focus on the positive?? Because those who focus on problems desire more government to solve them. That is why a Christian nation of faith truly serving God produces limited Government. People discuss that the reasons are work ethic, morals, etc., etc. I think that positive outlook limits Government, sees opportunity, and yearns to be free. But a negative outlook grows Government, sees problems, and desires central control.

RTB July 26, 2010 at 8:27 pm

Spain was quite the Christian nation for awhile there.

Liberty Serb July 26, 2010 at 10:23 pm

“Bigger than when Hayek wrote Road to Serfodm?”

He wrote it in WW2, i doubt we’re more regulated than a war aconomy. The 1928 Weimar level, maybe.

Raimondas July 27, 2010 at 1:13 am

Great list of Plan Committee agencies.

This totally agree with Marx thesis one day we’ll awake in socialism peacefully change from developed capitalism.

Tom Hankes August 3, 2010 at 9:12 pm

Glenn Beck was correct. Obama has mostly neutered Congress by accomplishing his goals through his ultra left wing appointees (czars). No Congressional approval required. I knew it was going to be bad when they “soft balled” Cass Sunstein. That guy is an elitist lunatic and belongs behind bars, not functining as an executive in our Republican government only answering to another ultra left winger – BHO.

Very frightening.

Ray Piel August 27, 2010 at 4:55 pm

In my humble opinion, more regulations is not the answer. I come from a come from a mortgage and financial background and can tell you with certanty that regulations are still being bent and broken in some instances. The bank reps would tell us to change the numbers to make the loans work. One big national bank in particular would deny loan submissions if income was stated. The greed of the few got us into this and only the common sense of the many will get us out.

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