History

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An assumption that dominates American historical studies is that the wealth and prosperity of the country would be much less without the existence of a powerful central government. This theme is but part of a larger, and now international, orthodoxy that larger political jurisdictions, as long as they are "democratic," foster liberty and economic growth while smaller ones stifle it.

In Europe, elites hold up an all-European government as the golden road to a brighter and wealthier future. Others go further, such as Atlantic Monthly correspondent Robert D. Kaplan, and argue that eventual "world governance" by "global elites" is both inevitable and desirable. Kaplan, whose books are read by high-ranking government officials and journalists, believes that free markets, democracy, and liberty shall thrive under a world regime.

The truth is far different. All of history attests that the centralization and concentration of power breed despotism. In the history of European civilization, liberty and civilization have thrived when political power has been dispersed and checked. Contrast the Greek city states with the polyglot Alexandrian empire, the Roman Republic with the world-sprawling Roman Empire, medieval Europe with 20th century Europe. The nature of man being what it is, irresponsible, unchecked power has been, and always will be, abused, and there is no better way of rendering state power oppressive than by concentrating rather than dispersing it.

If your children attend a public or private university in this country, they will be taught that President Roosevelt "saved" capitalism from itself with his New Deal legislative program in the 1930s. They will also be taught as unquestionable truth that the Federalists rescued t...

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...ng to the tariff of 1842.

Sumner also observes that whenever the economy has floundered, many blame foreign trade for somehow draining the country of its wealth. For instance, James Madison warned in 1786 of "the present anarchy of commerce." He blamed the "unfavorable balance" of trade for "draining us of our metals" and furnishing "pretexts for the pernicious substitution of paper money." Madison had it exactly backwards. It was the habit of using paper money that was driving the nation's specie abroad, as coin would not circulate alongside paper of similar denomination. Madison's solution to commercial "anarchy" was a national government with the power to regulate commerce and the money supply. Not surprisingly, Madison would be one of the authors of the tariff of 1789. As president he would sign the tariff of 1816 and the charter for the second national bank.

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