FT217: “If you want to know what it was like living under an absolute monarchy just think of the IRS.” —Old Pithy

Posted by PITHOCRATES - April 11th, 2014

Fundamental Truth

Thomas Jefferson wanted to keep the New Federal Government and Money Apart

Thomas Jefferson did not trust government.  And he didn’t trust moneyed men.  Because when the two come together they cause nothing but trouble.  That’s why he hated and distrusted Alexander Hamilton.  Hamilton wanted a strong central government.  A central bank.  And an economic system favoring merchants and bankers.  With big city moneyed men financing the government in return for special favors.

This is why the nation’s capital isn’t in New York City.  It once was.  But one of the first deals the Hamilton and Jefferson camps made was the relocation of the nation’s capital to a mosquito-infested swamp on the Potomac River.  A long, long way from the moneyed men in New York City.  To try to keep the new federal government and money apart.  To restrict the influence of the moneyed men on the government.  And to prevent the government from having easy access to big money.

Why did Jefferson want to do this?  Well, they fought for their independence from Great Britain.  Which was a constitutional monarchy.  Where some in Parliament were no friends of British America.  And got the king to agree with them rather than the pro-British America faction in Parliament.  Ironically, the Americans got help in their War of Independence from France.  Which had an absolute monarchy.  Whose king ruled with no check on his power.  Both governments were in the big cities.  London.  And Paris.  Where the moneyed men were.  In the big cities.  Allowing these monarchies to do a whole lot of mischief all around the world.  And a fair amount of mischief inside their own countries.  Because the money and the government were in the same city.

Government + Money = Corruption

Great Britain and France were forever at war with each other.  And with other countries.  Requiring a lot of money.  Which they got from the moneyed men.  In return for special privileges that allowed them to get ever richer.  Of course the mischief grew greater as they fought a world war or two.  Requiring ever more money.  Which they got from, of course, taxing the rest of the people.  Even those who could little afford it.  And once this starts, once the government starts accumulating debt, that taxation will only get greater.

This is what Jefferson was worried about.  And why he so distrusted Hamilton.  The Founding Fathers were all gentlemen of the Enlightenment.  Disinterested public servants.  Honorable men who would never take advantage of their position in government for personal gain.  Because for these men honor was everything.  Some even fought duels to protect their honor.  As Hamilton did.  And died.  Washington, Adams, Hamilton, Jefferson, Madison, Jay and Franklin were men of exceptional integrity.  Men who could be trusted.  But here is where Hamilton and Jefferson differed.  Hamilton believed only men like them would ever enter government.  While Jefferson believed that government service would one day attract mostly scoundrels and knaves.

Of course, Jefferson was right.  For as the nation grew so did the size of government.  And the need for great big piles of money.  Which the moneyed men provided.  In exchange for special privileges.  Patronage.  Lucrative government contracts.  Etc.  Big piles of money flowed into Washington.  And favors flowed out from Washington.  With many a politician getting rich in the process of getting rich moneyed men richer.  Politicians who used their position in government for personal gain.  Corrupted politicians.  As government + money = corruption.  Which is why politicians always leave office richer than when they entered office.

Power + Corruption = Tyranny

This is how it started.  As the size of government grew corruption grew.  Just as Jefferson feared.  All that money flowing into Washington corrupted ever more politicians.  Who were not gentlemen of the Enlightenment.  But the scoundrels and knaves Jefferson knew would come.  Who used their position in government for personal gain.  Whose corruption grew so great it exploded federal spending.  So great that taxes from the moneyed men AND the middle class were unable to fund it.  So the taxation grew more aggressive.

The government created by the Founding Fathers had no income taxes.  They funded the few things the new national government did with tariffs for the most part.  People lived from day to day without any fear of the taxman.  The United States even did away with debtors’ prison.  Prison where people were sent who could not pay their debts.  A relic of the 19th century.  Sort of.  For there is one debt people can still go to prison for not paying.  Past-due taxes.  For the IRS can take everything you have and imprison you if you don’t pay your taxes.  And those taxes have grown great as of late.  As the tax code has grown convoluted.  Requiring businesses to hire armies of accountants and lawyers to comply with.  So the government can help the moneyed men who help the government.  In return for special privileges, of course.  Leaving the masses dreading April 15.  As they dread opening any letter from the IRS.

If you want to know what it was like living under an absolute monarchy just think of the IRS.  People fear the IRS.  Just as people feared the arbitrary power of an absolute monarchy.  A king could take your property and lock you away.  Just like the IRS.  And if you spoke out against the monarchy the king could make your life really unpleasant.  Just like the IRS.  During the 2012 election the IRS targeted conservative political groups to stifle their free speech.  Delayed their tax-exempt status approval.  And harassed them with costly tax audits.  And now their tyranny has extended to people in the middle class.  Who unbeknownst to them had a family member owe the federal government.  Years earlier.  Even a generation earlier.  And the IRS is arbitrarily seizing the tax refunds from these debtors’ distant relatives to pay these debts.  Even though they are in no way responsible for these debts.  And the government has no documentation for this debt.  Doesn’t matter.  Because they have the power to do this.  And these people are powerless to stop them.  Just like people living under an absolute monarchy were powerless to stop their king from doing anything to them.  And this is what Jefferson feared.  For after corruption comes tyranny.  For power + corruption = tyranny.  (Just look at every tin-pot dictator that has oppressed his people).  Which is why people fear the IRS.  And the federal government the IRS is beholden to.  Because they have become everything Jefferson feared they would.



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LESSONS LEARNED #18: “Man-given rights are only privileges allowed by the privileged elite.” -Old Pithy

Posted by PITHOCRATES - June 17th, 2010

GOD WAS HERE before the Marine Corps. So you can give your heart to Jesus, but your ass belongs to The Corps.

(From the movie Full Metal Jacket, 1987.)

In Roman Catholicism, this is the doctrine of the two swords.  The spiritual sword is the Church.  The temporal sword is the state.  Martin Luther had the doctrine of two kingdoms.  The religious and civil.  Going back to the source, Jesus Christ put it this way:

Render unto Caesar the things which are Caesar’s, and unto God the things that are God’s 

The original separation of church and state.  Of course, back then, this was all intended to limit the state’s interference into spiritual matters.  Today it’s reversed.  It’s the state that is trying to hold the spiritual sword at bay.

THE FOUNDING FATHERS were gentlemen of the Enlightenment.  This makes them complex.  The Enlightenment was the Age of Reason.  And guess what we did during the Age of Reason?  We thought.  Rationally.  There was a philosophical revolution going on in Europe.  Simply put, things weren’t what they were because the Church said so.  There were other explanations.  Other laws.  And the Church could be wrong.

So, if the Founding Fathers had lived in the 20th century, they would have probably been fans of the rock group Rush.  And Ayn Rand.  Who influenced Rush.  Thomas Jefferson probably would have an iPod filled with their songs, including Tom Sawyer:

No his mind is not for rent
To any god or government

They questioned ALL authority.  And some may have been Deists.  But they were not atheists.  Even Jefferson.  He may not have believed in the Trinity or Christ’s divinity, but he still believed in God.  And he worshipped Jesus in his own way.  As the world’s greatest philosopher, with his Sermon on the Mount being the best philosophy man could ask for.

THE FOUNDING FATHERS were gentlemen of the Enlightenment.  Now the other part.  The thing that makes them complex.  The gentlemen part.  What did this mean in the 18th century?  Here are some adjectives that describe a gentleman.  Honorable.  Virtuous.  Reputable.  A gentleman strived to achieve moral excellence and righteousness.  He was ethical.  His life was a steadfast adherence to a strict moral code.  And when he served in public office, it was with selfless disinterest.  He would go out of his way to NOT gain personally from his time in public office.  Some did it better than others.  But all tried.  And when they fell short, they at least put on an appearance of disinterest.  It was that important.  And expected.

In a word, restraint.  This is what a gentleman practiced.  George Washington exercised this restraint to such a degree that many found him cold and aloof.  Few saw him smile.  Few saw public displays of emotion.  What they did see was an exemplary life of virtue, honor and moral excellence.  And they would forever look at him with awe and reverence.  We do to this day.

These students of the Enlightenment, then, espoused Judeo-Christian ethics.  They questioned all authority oppressing man, whether it be Church or state.  But they did not throw out the baby with the bath water.  They remained religious.  They just wouldn’t yield to it unconditionally.  Not to the Pope.  To a bishop.  Or any other tyranny of a minority, privileged elite.  Even after their Revolution.

And they would extend this restraint to the new nation they would found.  It would be a government that would govern with the consent of the people.  But it would not be mob-rule.  Not a true democracy.  It would be representative government.  The idea was to restrain the extreme passions of the people.  They would not exchange one tyranny for another.  There would be no tyranny of the majority.

FRANCE HAD PROBLEMS in the late 18th century.  The toll of war was bankrupting the country.  Their financing of the American Revolution didn’t help either.  Food was scarce and expensive.  Famine and malnutrition were commonplace.  Among the Third Estate (the poor).  The First Estate (the Church) was doing well.  The Second Estate (the nobility), too.  Unemployed and hungry, the poor looked at the clergy and the nobility who were not. 

The Church was largely exempt from paying taxes. And the Church was the largest landholder in France.  The Church levied a 10% tax (i.e., a tithe) on the general population.  A lot of that was collected in-kind (food crops).  So the Church had more land, money and food than the starving, suffering masses.  Who became an angry mob.  That demanded democracy.

The people stormed the Bastille.  Confiscated Church property.  Overthrew the monarchy.  And sent the king and queen, and many others, to the guillotine.  Maximilien Robespierre and the Jacobins unleashed the Reign of Terror.  They executed political enemies, including priests, and displayed their severed heads to the angry mob.  They de-Christianized France, destroying churches and religious symbols.  They tried to do away with the Church altogether and replace it with civic and community events and organizations.  It was a revolution against Church and state.  Against law and order.  Against restraint.  They would send Robespierre himself to the guillotine at the end of his terror.  Then another terror followed to avenge the previous terror. 

There’s more to the French Revolution.  But that should suffice for now. 

FRANCE WAS IN the epicenter of the Enlightenment.  Some of the great minds of the Enlightenment were French.  But France was older than America.  And more populated.  With centuries of wrongs to right.  It was anything but a blank canvas.  Egalitarianism soon devolved into angry mob rule.  Democracy.  They went from the tyranny of a minority to the tyranny of the majority without stopping in that fertile middle ground.  As was the case in America.  Why?

It’s that blank canvas thing.  We weren’t overthrowing our history to start anew.  We had little history.  Maybe a century or two of English colonists who literally started with raw earth.  There wasn’t a rich and privileged Church.  So there wasn’t a festering resentment against the Church.  No, the early colonists escaped religious oppression and came here for religious freedom.  Which they found.  And enjoyed.

The American Revolution was more restrained.  There were no bloody reprisals after the War.  There were isolated instances of mob violence during the War, but the ‘mob’ was never in control.  The ‘gentlemen’ were always in control.  Gentlemen steeped in Judeo-Christian ethics.  From the Declaration of Independence to the Constitution, the Founding Fathers built a new nation upon the Rule of Law.  And at its heart were the God-given rights enumerated in those documents.  That no man, or minority, or majority, or mob, could take away.

GOD WAS HERE before the United States.  So we can give our heart to Jesus.  But our ass belongs to the Rule of Law.

Or something like that.  We are a secular nation with a de-emphasis on the religious part.  Yes, legal punishment may dissuade you from doing wrong.  If you think the cops can catch you.  But it’s our morality that will keep us from doing wrong in the first place.  And the people at our founding were moral.  And Christian.  Or deists with Judeo-Christian ethics.

And to those who fear antidisestablishmentarianism, don’t.  I doubt the Catholics and the Protestants could agree on what an established church would be, let alone the myriad other religions peacefully coexisting with each other.  No, more religion would not result in an established church.  It may, though, result in government leaders who fear God and, maybe, they would be better leaders for it.  It sure beats us living in fear of them.



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