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Future History What Has Been Done by Robert
Formaini The Patriot Act was just the beginning.
The 1980 publication of Milton Friedman's "Free to Choose"
helped usher in a period of privatization and deregulation. The tide turned
toward freedom, and the market worked its magic. Planned economies collapsed, and
the world embraced the benefits of capitalism.
| | Robert
Formaini teaches economics in Dallas, Texas.
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After the attacks of 9/11, however, the tide turned again. Benjamin
Franklin once famously said that those who prefer security to freedom will wind
up with neither. Americans have proven the accuracy of his warning by
disregarding it. The New Patriot Act of 2006, modifying the original in the wake
of the attack on Las Vegas, and its later super-modification (the Total Security
Act of 2012) severely restrict commerce, speech, and travel. Of course, there was
little actual debate before the passage of any of these acts proponents
simply labeled opponents "crackpots" and "lunatics." This has led directly
to national identification cards, universal ID chip implants that can be tracked
by GPS satellites, and mandatory retina scans for anyone flying domestically or
entering the United States from abroad. All vehicles that travel on American
roads are required to have so-called "black boxes" and GPS transponders so their
exact location and history can always be ascertained. The transponders, the black
boxes, and the data they gather belong to the government, not to individual
vehicle owners. The only grounds for appeal of any conviction based on these data
sources is vehicle malfunction, but it has proven almost impossible to
successfully appeal black-box cases, despite the common knowledge that the
equipment, like all technology, does sometimes malfunction. There are now
over 1.5 million people on federal and state "Do Not Fly" and "Arrest
Immediately" lists. Almost 260,000 people are incarcerated, awaiting disposition
of cases based on catch-all terrorist charges, some of which are years old.
Federal military laws now control every major transportation system in the nation
including, but not limited to: docks, roads, rail, air, even bike paths and
hiking trails. School security was federalized after hundreds of children were
slaughtered in attacks on public facilities in 20067. All substances known
to be possible bomb ingredients are rigidly controlled under ATF and Homeland
Security regulations, and violators can receive the death penalty for selling or
just handling them even in very small amounts. There are now over
2,000 Class-A controlled substances, and 14,000 altogether when all classes are
summed. As of Dec 31, 2024, every 17th person in the country works in security
19 million people in all. There are over 400,000 agents on the Mexican
border alone, enforcing the National Border Integrity Act of 2007, which was
passed by a Republican Congress campaigning for the 2008 elections on an
anti-immigration platform. Federal border agents regularly conduct "shoot on
site" patrols around known illegal entrance routes. The courts found
constitutional the Judicial Interpretations and Reconciliation Act of 2009, which
automatically removes any judge who tries to overturn its provisions, or who
fails to rigorously apply the act's sentencing guidelines.
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| Federal military laws
now control every major transportation system in the nation including, but not
limited to: docks, roads, rail, air, even bike paths and hiking trails.
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Of course, during time of war, political speech has always been curtailed,
either by law or by public sentiment. America's attempts to curtail free
political speech go all the way back to John Adams' Alien and Sedition Acts of
1798. The course to our present state of abridgment was set when the Supreme
Court upheld McCain-Feingold (2004). Criticisms of incumbent politicians have
been strictly regulated since that point, and are now further restricted by the
Preservation and Extension of Free Speech Act (2008). Under that act, you may
speak freely only under the following circumstances: (1) on your own, unmortgaged
property, to no more than 50 people; (2) on radio call-in shows, provided you are
a registered user whose phone is equipped with identity verification hardware;
(3) on assignment for news organizations that fit the federal definition, are
federally registered, and currently fully paid on their "news organization
assessment accounts"; (4) on Internet discussion groups, provided they are
federally registered, current on their "Internet assessment accounts," and verify
the identity of all participants, (all of whom must also be up to date on their
personal Internet tax assessments); (5) in publicly regulated places in full view
and hearing of the appropriate public discourse monitors and ultra high-speed,
infrared digital cameras. The Internet Consolidation, Revenue,
Registration and Public Airwaves Control Act of 2010 is the source of all current
Internet regulatory activities, including Wi-Fi, cable, and any other kind of
Internet access available or that may become available in the future.
After terrorist hackers were able to enter key systems to release toxic
substances and generally disrupt daily activities, especially air travel and
financial transactions leading to crashes of planes as well as markets in 2007
and 2009, all the while using their technical savvy to remain mostly anonymous,
Congress took complete control of the system in late 2007 with a preliminary
bill. It took an additional two years to craft the final, comprehensive bill
under which we now live. All Internet providers and users are routinely
tracked by Homeland Security and NSA computers, users and providers are taxed
monthly, based on an assessment of their use of the network, and all computers
are federally registered so that they leave a cyber-trail whenever they access
the Internet, much like an airplane's transponder reveals who it is and where it
is headed. It is a federal crime, punishable by a minimum of ten years
imprisonment, to access the Internet on any computer that does not have the
cyber-trail hardware. A few hackers have succeeded in bypassing the system, but
none has remained free for very long after doing so, and several have been
sentenced to ten or more year terms, in maximum security facilities, for
attempting to "undermine homeland security."
| Of course, there are
several popular television programs that deal exclusively in footage from
surveillance cameras, which sometimes capture horrific terrorist acts.
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There are now over 5 million digital cameras publicly and privately
employed for security purposes. It is almost impossible to go anywhere
without being watched by Homeland Security. Digital cameras that feed directly to
the Internet have been built into existing technologies, so few incidents have
gone unrecorded, even if they are recorded only by private citizens. Of course,
there are several popular television programs that deal exclusively in footage
from these digital image displays, which sometimes capture horrific terrorist
acts. Continuing a trend begun with 1973's Bank Secrecy Act and continued
in 1980's Financial Institutions Deregulation and Monetary Control Act, the
Comprehensive Supervisory Financial Institutions Information, Supervision, and
Control Act of 2007 made all financial transactions "transparent," and placed a
15% surcharge on all cash transactions over $1,000 to discourage (as the Act put
it) the "anonymous economy," and make it difficult for terrorists to purchase
anything with cash. Anyone willing to pay the 15% cash fee gives the government a
prima-facie case that the transaction is illegal in some way, since the payer is
presumably trying to remain anonymous. Public conveyances no longer accept cash,
and they are required to keep detailed records of all fares, passengers, pickup
and departure points, and final destinations. All financial transactions are now
traced, catalogued, and stored forever. There are no legally operating banks in
the world outside this system. Bank secrecy now exists solely in the fugitive
banks of Russia and its war-torn former satellites. The collapse of
democracy in Russia and its re-emergence as a totalitarian power with
imperialistic ambitions has been blunted, to some extent, by the endless
internecine wars within its former satellites among their Islamic and non-Islamic
inhabitants. Russia is also a constant target of terrorists. These problems,
along with an anemic economy, have prevented Russia from grabbing much in the way
of territory, even with the United States and Europe distracted by their own
terrorist problems. China has emerged as the world's largest and
fastest-growing economy. After retaking Taiwan in 2007, and annexing North Korea
a year later, China then successfully "Finlandized" Japan, and now oversees a
vast Pacific empire that would have made the 1942 Japanese government green with
envy. China's thirst for the Middle East's oil leads it to support radical
Islamic clerics, but this support goes unpunished, as no major country stands a
chance if it goes against China's wishes. The xhiang, introduced in 2009,
is now the world's premier currency, followed by the euro, the Canadian dollar,
and the U.S. dollar. Years of domestic and international wars have resulted in
inflation and poor economic performance here at home, battering the dollar to the
point that many in government are beginning to talk about replacing it with a
"new dollar," trading each of them for 20 "old" dollars. This long-awaited policy
is called the "Argentina two-step."
| Many in government are
beginning to talk about circulating a "new dollar," trading each of them for 20
"old" dollars. This long-awaited policy is called the "Argentina two-step."
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The sealing of the U.S. border and the abandonment and official repudiation of
NAFTA have demolished Mexico's economy. The added stress from an influx of
immigrants fleeing the Cocaine Wars to its south has caused Mexico to degenerate
into near anarchy. These wars have been used by Venezuela as a pretext for trying
to spread "Chavezism" to its neighbors. Most of the rest of Latin America is a
shambles, run by the usual assortment of leftist politicians and their thuggish
supporters, even though they have brought their economies to the point where
further looting of their citizens is almost impossible. The Chilean military
government has not yet confiscated the private retirement accounts that were the
centerpiece of Chilean economic reform, but most analysts believe it is only a
matter of time. This development is no doubt partially the product of the demise
of the large international aid agencies which collapsed in 201415 under
mountains of debt. When international markets realized that they were never going
to be repaid by anyone, including strapped U.S. taxpayers, the World Bank, IMF,
and AID all collapsed. Little time elapsed before the region's nations, deprived
of their welfare largess, began the Cocaine Wars. During the last fifteen
years, France and Germany have continued to struggle for control of the European
Union, as well as competed to be the in modern terminology "front
nation" for the so-called "New Europe," a Europe that has been discussed for
decades but that looks remarkably like the old Europe. The internal tensions in
the EU are troubling, with member countries often threatening military action,
and Germany flexing of its military muscle, gained from secret development of
laser weapons. Of course, the German government claims that historically it has
always been entrusted with enforcing the regulations and policies of the EU, and
will use force if necessary, but only as a "last resort." This reassurance offers
little comfort. After the terror war forced America to redeploy many of
the troops based in allied countries, it only took a decade for Germany to become
the most potent military power in Europe, since most of its neighbors worship
peace at any price, including non-retaliation against terrorists. The Germans
retaliate fiercely, and use their experiences to further strengthen their
emerging military establishment. At first, the U.N. tried to constrain Germany's
new military might, but when the German government denounced the U.N. and stopped
paying U.N. dues (like America did years ago), talk of sanctions was
dropped. The Middle East has been a colossal mess for decades, but things
have deteriorated markedly since 2002. The major civil war that erupted after
Iraq's election in late 2005 brought a major U.S. reinforcement to the country,
but at the cost of reinstating the military draft. That led to ongoing, domestic
rebellion reminiscent of the Vietnam War era. The events in Iraq also
destabilized Iran and Saudi Arabia. America's pre-emptive air strikes against
Iranian nuclear facilities reignited theological revolution in Iran and led
directly to the fall of the House of Saud. When that ruling elite fell, oil
exports to the U.S. were shut off for three years. The Riyadh Accord in 2009
allowed resumption of sales of Saudi oil to American companies, but only at a 15%
premium above the world price, and required a U.S. pledge that no military
actions would ever be taken against the new Saudi Wahhabi-backed government or
its allies, which include Syria, Lebanon, Jordan, Algeria, and Libya.
| The major civil war that
erupted after Iraq's election in late 2005 brought a major U.S. reinforcement to
the country, but at the cost of reinstating the military draft.
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Israel became a garrison state, with commerce all but impossible, terrorist
acts constant, and nuclear annihilation no longer merely possible, but probable.
Some analysts believe that Iran is only waiting for the appropriate long-term
wind patterns that would make an attack a one-way nuclear disaster for Israel.
Meanwhile, Israel consumes vast amounts of American financial aid, as they are
one of the few places left in that region from which American military operations
can be mounted. Some American policy makers are arguing that we should use
nuclear weapons on Iran before it does the same to anyone else, but that position
is highly controversial and not supported by a majority of Americans.
Domestically, the burden of war diminished economic performance and regenerated
inflationary pressures, and the Baby Boomer retirement bubble significantly
strained government budgets at all levels. Deficits and interest rates rose, GDP
growth dropped, and markets stagnated, with the Dow Jones average standing today
at 17,755. That's an average return of 3% since 2004, but after adjusting for
inflation, overall returns in the market have been consistently negative. Chronic
energy shortages have become the norm, with stringent regulatory restrictions on
energy consumption. Brownouts and blackouts are common in American cities, as are
long lines at the few remaining gas stations. The Energy Profits Equalization
Tax, combined with onerous excise taxes on energy, have cut American consumption
by almost 15%, but population and economic growth have cut in the other direction
without any substantial increase in supply. Alternative fuels still have not
eliminated the demand for oil, despite tens of billions of dollars in direct
subsidies and tax credits to selected corporations for R&D. Our fiscal
position was helped slightly by major benefit reductions in entitlement programs
between 2016 and 2022, increased audits and state and federal prosecutions of
fraud, and a significant increase in the payroll tax (currently up to 22% and 34%
for the self-employed) all phased in over the past eight years. Though some
economists feared that raising the payroll tax rate would cause the work force to
shrink rapidly, most people found that they couldn't afford not to work. The
national debt stands at $38.5 trillion, about twice the current GDP. With GDP
currently growing at about 2% annually, and inflation at 7%, the debt is slated
to reach five times GDP in 20 more years. The collapse of several large pension
plans as they were abandoned by their sponsors and turned over to taxpayers had
irrevocably bankrupted the Pension Benefit Guaranty Corporation by 2012. Congress
repudiated underwriting private-sector pension plans with public funds. Plans
continue to fail and nothing is being done about it.
| After Castro's death in
2011, Cuba became the "Hong Kong of the Caribbean" and allied itself with the
U.S. |
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Of course, not every development has been negative. After Castro's death in
2011, Cuba became the "Hong Kong of the Caribbean" and allied itself with the
U.S. as a bulwark against the general Latin American trends discussed above. A
rare success story, but an important one. Nevertheless, the ability of the
federal government to carry out any coherent fiscal policy is tightly
constrained, and the Fed has been unable to find any interest rate structure that
is consistent both with growth and price stability. Politicians declare that we
are in some kind of New Economy as they did in prior times, but for very
different reasons. The external fiscal pressures are simply too large to
reverse with standard 20th-century policy measures. Needless to say, full
employment has not returned even with the draft, and consumer confidence is at a
30-year low. Where can we go from here? The policy options currently
available to alter many of these unpleasant realities are quite limited. A return
to classical liberalism is not very likely. Incrementally, however, we can move
some things in a direction favorable to freedom. In that spirit, I offer
the Free to Choose Manifesto for 2025: 1. The restoration of free speech
is priority number one. If we cannot respect the very first amendment in our own
Bill of Rights, we certainly cannot claim to be exporting any ideas other than
our own particular form of government oppression. 2. The daily invasions
of privacy that occur, generated both by public and private institutions, need to
be redressed and contained. It is clear that, given current world realities, they
will never be entirely eliminated, or even scaled back to pre-9/11 levels.
3. Free exchange across the Internet must be restored. 4. The right to a
reasonably speedy trial should be reinstated, and civilians should not be held
accountable to military tribunals operating under the Uniform Code of Military
Justice. 5. National identification cards were enacted mostly to ensure
smooth travel. That ought to be the goal, not the occasional pleasant
surprise. 6. Limits on cash transactions should be raised to at least
$5,000. This is not a perfect solution, but unmonitored large transactions are
probably gone for good. 7. Energy access should be denationalized. That
would go a long way towards alleviating the chronic shortages and high prices of
energy. Repeal, or seriously modify, the Kyoto II-Brussels III environmental
protocols, which have severely penalized American economic development while
subsidizing that of other nations. 8. Privatize medical care, or at least
allow a tiered system of care based on ability to pay. The criminalization of
privately-provided and funded medial care is one of the worst features of the
current American economic and political scene, and one of the worst public policy
enactments since the founding of the nation. The use of the federal system to
punish certain behaviors by withholding medical care is cruel and a clear denial
of individual choice, as well as a denial of human freedom and simple human
dignity. 9. Privatize more water delivery systems. The chronic water
shortages that have plagued even areas that receive sufficient or more
than sufficient rainfall each year are unnecessary and bureaucratically
generated. The slow depopulation of much of what were once the fastest growing
regions of the nation Arizona, Nevada, and California included is
not the best long-term solution to the water use issue. The enactment of
these reforms would be a good start towards eventually restoring some of our
nation's basic liberties. Until then, we can only continue to speak out against
governmental abuses, in the times and places appointed for us to do so.
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