Doug Casey on the Government Shutdown
Doug Casey,
1/18/19
Justin’s note: The U.S. government is shut down.
It has been for 28 days now – making it
the longest government shutdown in U.S. history by a wide margin. And there’s
no telling when it will come to an end.
So it shouldn’t come as a surprise that
the media’s having a field day with this. But I can’t help but wonder if this
is as big of a deal as people are making it out to be. So I got Doug Casey on
the phone to see what he thinks…
Justin: Doug, the U.S. government shutdown is now 28
days old. Are you surprised it’s lasted this long?
Doug: I’m not surprised, but I’m definitely
pleased. There have been a number of shutdowns in the past. Sixteen days under
Obama. Twenty-one days under Bill Clinton. Five separate shutdowns on Jimmy
Carter’s watch. This one, like its antecedents, is no more than a tempest in a
toilet bowl – just a nuisance for a small segment of the population. A proper
shutdown would include the IRS [laughs].
In this case, the shutdown is because
Trump isn’t getting the $5.7 billion he wants for his wall. But this begs the
question… should there even be a wall? My answer is “no,” for a number of both
practical and philosophical reasons. Keeping illegal aliens out is a good idea.
But it would happen naturally if just two things were done.
Point number one, get rid of the welfare
benefits that draw the wrong kind of people. During the 19th century,
and up to the 1930s, there were absolutely no welfare benefits for immigrants –
or anybody else, for that matter. As a result, you attracted opportunity
seekers.
Point number two, all U.S. property
should be privately owned. Including streets, sidewalks, and parks. That way if
they can’t support themselves, or make an arrangement with somebody who will,
they would simply have no place to sleep.
No welfare?! No unowned property where
vagrants can loiter?! It sounds heartless. But I have no doubt that people like
Congresswoman Ocasio-Cortez, New York’s Mayor DeBlasio, and
thousands of other generous public servants would feed, clothe, and shelter
them at their own expense.
But in today’s world, the public doesn’t
want less government. They want much, much more. Polls show most Millennials
favor socialism. So we can look forward to a paradise for the workers and
peasants in the new future.
However I’m afraid nobody is looking at
the important thing here.
Two branches of the federal
government have been at “war” for nearly a year…Over one of the most
controversial new products in the past decade. It’s not marijuana…or some new
energy drink…
But thanks to President Trump,
federal statute 115-661 has brought a truce between the DEA and FDA. And it’s
expected to unleash a $22 billion industry. (Bigger than the snack food and
video game industries combined.)
You’ll soon see a whole new line of
these products flooding into almost every home in America. If you thought PCs
and smartphones were big, you haven’t seen anything yet!
Justin: And what would that be?
Doug: Some rather basic principles. Our topic is not why
this shutdown occurred. It’s whether or not the shutdown is a good thing or a
bad thing. To answer that question we have to decide to what extent the federal
government is necessary. Everybody assumes that it’s always been there, and has
always been the behemoth it now is. The average American not only confuses the
government with the country – they’re actually two different things – but sees
Washington, DC as a fixture in the cosmic firmament.
Let me make what some may feel is an
outrageous statement: There’s nothing the government does that couldn’t and
wouldn’t be done – vastly cheaper and better – by profit-seeking entrepreneurs.
Further, a large part of what the government does is not just unnecessary, but
destructive. And wouldn’t be done at all in a free market.
So, let’s look at a few departments
that have been affected by this shutdown, and see how important they are to the
conduct of life in the United States. Obviously this isn’t even scratching the
surface. A proper discussion would take years. But it’s worth taking a few
minutes here because the average American – forget about the average European –
hasn’t even considered the concept.
My view is optimistic and hopeful.
Basically, all the departments that have been shut down should actually be
abolished wholesale. They serve no useful purpose. If they are useful, they
should be privatized.
The National Aeronautics and Space
Administration [NASA] is an excellent example of this. Right now, 95% of its
employees have been furloughed.
And I’m all for NASA in principle,
or at least what it does. I’m a big fan of space exploration. But even though
NASA is full of competent, high-IQ people, it’s run like the post office, or a
DMV, or the military. It’s degenerated into a typical cost-plus government
bureaucracy.
SpaceX, Blue Origin, and many other
companies are proving that the private sector can do anything that NASA does –
faster, cheaper, and better. Why? Because they’re not constrained by politics.
They necessarily have to operate in a sustainable, efficient, innovative way.
Because they’re doing it for profit. Which means they’re trying to create
capital, not consume it.
Apart from that, the U.S. government
is manifestly bankrupt. Soon enough, it won’t even be able to pay the interest
on its debt, forget about science projects. That’s going to happen over the
next couple of decades. NASA will be left high and dry – last in line for
whatever funds there are.
NASA, and similar government
enterprises, should be privatized. Either taken public in an IPO, perhaps with
most shares distributed to all U.S. citizens, and its employees. Or sold to
some company with an interest in space. That would turn it from a cash
consuming liability into an asset.
Justin: What federal agencies would be better if
taken over by the private sector?
Doug: The United States Department of
Agriculture [USDA]. It has about 100,000 employees and spends about $140
billion a year. Those are amazing numbers, considering that only 1 to 2% of the
U.S. population works in agriculture. Its useful functions – crop reporting,
bio research and such – should be privatized. Of course all crop subsidies,
price controls, planting limits, and the like should be abolished. They
basically put farmers – especially politically well-connected ones – on
welfare. And create distortions in the market.
The Department of Homeland Security should
be abolished. In particular the Transportation Security Administration [TSA],
one of their many divisions.
If airline security is necessary – if it
actually makes sense to screen people before they get on planes – it should be
the job of the airlines, not the government. Airlines shortsightedly offloaded
the responsibility and cost of maintaining security to the taxpayer. But the
costs should be reflected in the cost of flying. Air travelers who actually use
this service – if that’s what it is – should pay for it. But it’s probably not
necessary in today’s world of secured cabins.
What kind of middle-aged people – 60,000
of them – are willing to wear costumes and go through the dirty laundry of
their fellow citizens, and interrogate them, for $15 an hour? It’s ridiculous
and degrading theater.
Speaking of flying, the FAA [Federal
Aviation Administration] should be privatized. In particular its critical Air
Traffic Control division, which is always a generation or two behind in its
technology. That’s not going to improve, because funding from a bankrupt
government will be increasingly sparse.
Justin’s note: Tomorrow, we’ll share part 2 of our
conversation, where Doug and I look at what the shutdown could mean for the
National Park System as well as the Department of Defense.
If you enjoy these discussions, you’ll
definitely want to get your hands on our book: Totally Incorrect 2. It’s Doug’s most controversial book
yet… as well as a vital guide for surviving the changes happening in America
today.
This book isn’t available anywhere else
right now. Learn how to get your
copy right here.
Norb Leahy, Dunwoody
GA Tea Party Leader
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