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Collectivism and America’s Inevitable Collapse

October 2, 2008

There can be no nation without rule of law. Otherwise right and rights no longer exist, a situation where only those

The Man who sold Americans to the COLLECTIVIST ELITE...

The Man who sold Americans to the COLLECTIVIST ELITE...

who control state’s repressive apparatuses can only dictate what is right or legal, legitimate or illegitimate, moral or immoral. If this basis of proper laws, tenets and canons were rooted out by a tyrant who has no authority to govern, then all powers would fall into the hands of looters-by-law and criminals-by-right at the expense of the inalienable rights of the people.

Ayn Rand, Russian-born American philosopher who conceptualized Objectivism, once said that collectivism is the subjugation of the individual to a group— whether to a race, class or state does not matter. According to her, “Collectivism holds that man must be chained to collective action and collective thought for the sake of what is called `the common good.’ Throughout history, no tyrant ever rose to power except on the claim of representing the common good.”

To explain this theory, F.A. Hayek also pointed out the flaws in collectivism. Hayek said that “any collectivist system necessarily depends on one individual (or small group) to make key social and economic decisions.” The first casualty of this collectivist trend is none other than the rule of law, because under this system the whims and caprices of the people in power form part the law of the land more than the will of the people. To wit, Hayek said: “The great aim of the struggle for liberty has been equality before the law.” That no one— the even the highest official of the land— is above the law.

But how can we attain national development with bribery as the rule of the game in both political and corporate arena?

Trading is done nowadays, not by consent and fair competition, but by compulsion and bribery. Money is now flowing to those who deal and broker, not in goods, but in favors. Men now get richer by graft and corruption and by pull than

The Man behind money- Federal Reserve Chair Ben Bernake

The Man behind money- Federal Reserve Chair Ben Bernake

by work, and the law is silent as to the perpetrators but harsh as to the innocent. We have a system where corruption and dishonesty were being rewarded and honesty becoming self-sacrifice— this scheme will certainly not permit a country to survive as half-property, half-loot.

In his Republic, Plato says tyranny “is not a matter of minor theft and violence, but of wholesale plunder…” He says that “when a man succeeds in robbing the whole body of citizens and reducing them to slavery, they forget these ugly names and call him happy and fortunate, as do all others who hear of his unmitigated wrongdoing.”

From the outset, the government’s portfolio of economic prosperity consists of higher taxes and their efficient collection, more dollar remittances, more foreign investment and more exports.

But what is the real wealth of nations? This query literally moved the motor of the world when answered by a group of World Bank environmental economists. In their extraordinary but widely underappreciated report, Where Is The Wealth Of Nations: Measuring Capital for the 21st Century, Kirk Hamilton and his team found that “human capital and the value of institutions (as measured by rule of law) constitute the largest share of wealth in virtually all countries.” Their study concludes that there are three kinds of capital: (1) the natural capital (e.g. cropland, pastureland, etc.); (2) the produced capital (e.g. capital, machinery, etc.); and (3) the intangible capital, which “encompasses raw labor; human capital, which includes the sum of a population’s knowledge and skills; and the level of trust in a society and the quality of its formal and informal institutions.”

Hamilton said that the shares of intangible capital across income classes go about 60 percent in low-income countries to 80 percent in high-income countries. “That accords very much with that notion that what really makes countries

The looters-by-law behind Americas gigantic financial fraud and socialism

The "looters-by-law" behind America's gigantic financial fraud and socialism

wealthy is not the bits and pieces, it’s the brainpower and the institutions that harness that brainpower.” The study also found that “an economy with a very efficient judicial system, clear and enforceable property rights, and an effective and uncorrupt government will produce higher total wealth.” He opined that the rule of law is “partly a question” of efficient legal system, lack of corruption and a degree of transparency.

National development is only possible if the rule of law is observed, that is, when legislation is passed using the rule of law test; when trades, transactions and contracts are done in good faith and obtained only by consent and not by favors and bribery; when justice and education system pertain to the interest of both the nation and the people; when the government sustains free-trade and fair competition without favoring any business entity over another.

Respect for the rule of law, a philosophical foundation on which a free society is based, is the only key to national development. Poverty—the product of this disrespect— is not to be pointed only to our “heartless” politicians, but to the heartless aim of this nation as well.

(Note: This article is taken from my essay titled “Rule of Law: The True Wealth of Nations”)

2 Comments leave one →
  1. October 27, 2008 3:38

    Excellent article. I’d like to pick your brain on these thoughts I have while reading your article.
    You say that collectivism is inferior and thus, less desirable than objectivism. In the case of a country like the Philippines, where the institutions who have the power to facilitate change (the executive, legislative, and judiciary) are the ones who are corrupt and in need of reform- are you saying that it wouldn’t be right to have a small group of people who control these institutions to actually influence and manipulate their corrupt colleagues to start thinking about the greater good?
    Thanks in advance. 🙂

  2. October 28, 2008 3:38

    We must remember that a state or government is created so that people may live well. The purpose of a government is to set and uphold the rule of law, guarantee a peaceful and orderly relations of persons, as well as the conduct or trade, and ensure good and responsible governance. But if a government is held by a few scheming men of evil intent, just imagine what kind of evil system this situation would create. A government that thrives in secrecy, evil conducts, and the rule of force breeds nothing but graft and corruption, dishonesty, deceit, and plunder (of both human soul and material wealth).
    Under this system, the ‘guilty’ government has no option but to invoke so-called “economic prosperity” and the most abused claim “of democracy.” This is in fact a Nazi system. They invoke economic prosperity (which is in fact statistically manipulated) while they run roughshod over the rights of the very people whom they have sworn to serve.
    In the Philippines, the problem is that the Filipinos are confused. They confused authoritarianism with communism. Well, it would be absurd to blame it on their ignorance or utter stupidity because the ‘evil’ mechanism of the government run by its DILG Sec. Ronaldo Puno succeeded in confusing them. It’s similar to that notorious Bush mantra ‘whether you’re with us or not.’ In my most sincere and honest opinion, Puno is the Filipino version of Hitler’s Joseph Goebbels.
    The evil forces in the Philippine politics effectively established a very dangerous “dichotomy” that continues to confuse the people. Government versus the communists, patriotism versus rebellion, Filipino versus non-Filipino, democracy versus radicalism, etc. These newspeaks can be seen in most of the speeches of government leaders who continue to confuse the people. Their goal is simple– to narrow down the range of thought of the people. It’s actually an Orwellian tactic.
    A president who achieved his/her position by deceit will be forced by his/her own tragedy to do evil things. In order to maintain his/her power and protect his/her family, that president will be forced to issue fascistic edicts that would disregard the rights of his/her own subjects, ignore the rule of law, reward dishonesty, evil deeds and deceit, and chastise honesty, honor, good values and rational virtues. This kind leader is the President of the Philippines. This kind of leader is also the Commander-in-thief of the United States of America. Their victory is their own tragedy…
    No, I do not buy this fascistic dichotomy that continue to confuse the people. Not all people can see this deceptive design. Even the so-called intellectuals are unable to see it. They just pretend to know something else.
    Both the Philippine and the US will fall into the hands of elected and non-elected dictators not because of the ingenuity of evil men, but because of the sustained confusion of the people and the weak social system and social order. The enemy of the people is not these evil men, their primary enemy is the ‘evil’ social structure that sustains their ignorance and stupidity.
    To fight tyranny and despotism, they must overcome the evil forces of social system. These forces are intangible, and their purpose is to control people’s minds.
    You might ask– what constitutes evil social structure? It is the order of things- the codes that covertly control human conducts and even moral values. These are the moral codes, political system, doctrinal beliefs, faulty academic system, etc. whose purpose is to influence human thinking. I call these “covert indoctrination” through media, academic institutions, religious institutions, the government, and the confused and/or rogue intellectuals.
    If asked to name the evil men in my country, I will mention the following:
    POLITICS: Gloria Arroyo, Ronaldo Puno, Juan Ponce Enrile, Joseph Estrada, Miriam Defensor-Santiago, Mike Defensor, Ben Evardone, Chavit Singson, Fidel Ramos, and their ilk.
    BUSINESS: Danding “the Boss” Cojuangco, Lucio Tan, Enriquez, and those who use government connections and subsidies to protect their interests. Mind you, these are not real capitalists. These are filthy aristocrats who get rich through graft and corruption, bribery, political connections, and government subsidies. I have defined the meaning of CAPITALISM in my article Atlas Shrugged and the Impending Death of Capitalism.
    CHURCH: Mike Velarde, late Cardinal Sin, INC’s Manalo, and others who use the words of God to perpetuate irrationality. They typify that WOMAN WHORE in the book of Revelations who wittingly cohabit with the forces of evil.
    OTHERS: Mike Arroyo, Bobby Capco, etc.

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