Every civilized society has it own sets of law. These sets of laws vary from country to country depending on cultural and religious beliefs. But there are a lot of similarities than cannot be avoided. For example, murder and theft are defined the same no matter what country’s law defines these crimes. But there are also subtle differences in defining some crimes like rape or racism.
But the major difference is the application of such laws and that is where the rule of law comes in. Rule of law is defined as an idea that the laws set by the state should be equally applied and without discretionary intervention. And this difference in the rule of law is what separates the prosperous and poor societies. Think about the rich nations of North America, Europe, and the Pacific Rim and compare these nations per capita income against nations in Africa, Southeast Asia, and Central and South America . The contrast is astronomical. To put that in numbers the US per capita income in 2000 is $34100 annually while 30 countries have under $365 per capita income per year.
Now look at the governing style or the “rule of law” of those poor countries. Most are under the brutal fists of a dictator or a monarchy that control every aspect of both public and private enterprises. The governing class hoards the wealth and political power of the country and not allowing the public to own “property”, every piece of the country is owned by a small group or an individual. They become rich beyond imagination but the citizens under its control are given tokens and scraps disguised as free education, free healthcare, free everything. Despite all the “free” things that the citizens get, they are still poor as dirt.
Why does property ownership crucial in creating wealth for all? The right of owning a property establishes private and exclusive rights in resources. It is the law that protects this right and it is the rule of law that ensures that everyone has the same exact right to legally own whatever and how much they can legally own. Property is the same as ownership. If one owns a piece of land or any piece of anything, one can exclude others from interfering. If one has control on what one produces and has control on the fruits of one’s labor, the effort is always maximize. One can choose to improve his property, share it, sell it, or just leave it as it is.
What does that sound to you? It sounds like LIBERTY to me.
How does any of this have to do with what is going on in the country right now?
Well, we all know by now that the Obama administration has taken control of the financial institutions and auto industry through mob tactics, loan them the money then dictate and break their legs if they do not comply. Not exactly break their legs but the administration is using the TARP or bailout money to strong arm stakeholders in these companies to make concessions. These concessions are against the “rule of law” that governs the bankruptcy procedures as in the case of Chrysler bondholders.
With the power of his office, Obama has taken control of these industries. We all now heard that auto industry will be making certain type of cars conforming to certain level of emissions and fuel efficiency. The American auto industry has claimed that this will only work if ALL auto makers are subject to the same standard. Import car makers will be forced to follow these new directives if they want to sell their products in the US . Do you think the government of these foreign auto makers will just follow? I doubt that. I strongly believe that there will be some trade retaliation for this. Either by imposing tariffs on US goods entering their country or limiting the amount of their products entering the US . In other words, a trade war that this weak economy cannot survive.
On the political spectrum, this is a move for Obama, the Democrats, and the UAW to take total control of the auto manufacturing in the US . Many foreign auto makers have manufacturing facilities in the US employing hundreds of thousands of Americans and most of them are not UAW members. Is it feasible that these foreign automakers scale back or totally stop their manufacturing facilities in the US ? You can go all in on this one, baby! When this happens, what would be the fate of those workers employed by the foreign auto makers?
Another scenario is that future investors might be unwilling to invest (buy bonds or stocks) in companies that took TARP or bailout money for fear of losing their investments if those companies go bankrupt. If no one would invest in those companies, how are these companies going to raise capital for expansion? What another round of bailout? Without expansion no growth and without growth no wealth creation and everybody is poorer.
But someone will get richer from all of this. Who are they? The rich folks who own these companies and the politicians in their pockets will hoard all. They will hold all the power just like in poor countries of Africa, South and Central America, and Southeast Asia . They will be the ruling class and Obama as their king.
The health care reform is looming in the horizon. This is another takeover ploy by the Obama administration. If this go through, the government then will have the power to decide who gets well, who will be treated, who will not get the treatment, the when and how. Just wait and see.
Property is synonymous with liberty. We all own something, be it material in nature or non-material. We own material things like a home, car, piece of land, jewelry, stocks, money, and other things. We own non-material things like our thoughts, our God given talents and skills, our health.
Look at what is happening. What has the government taken over right now and tell me that the government is not taking your liberties away?