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Economic Consequences of Majoritarian Democracy

Collectivism cannot coexist with private property ownership and individual rights.  For the past one hundred years, the American Progressive Movement has worked diligently to create a single majoritarian constituency for the entire federal government to undermine our Constitution and the Bill of Rights. 

The framers of our Constitution understood and feared Democracy.  Their study of history taught them that majority rule eventually leads to the oppression of minorities, usually with lethal results.  People naturally feel more powerful as part of a group.  Empowered by anonymity inside the group, they feel no responsibility for group actions, legal or illegal.  If a country has strong traditions and laws that protect the rights of all citizens, survival of the minority is more likely.  If those traditions and laws are purposefully ignored and weakened by government, the rights of the minority will not be protected. 

The founders of our nation created a Constitutional Republic in which the Natural Law Rights of the minority, even a minority of one single person, are protected by the Constitution and the Bill of Rights no matter what the majority wants.  In our Constitution, each part of the federal government had a separate constituency, providing a power balance to prevent the dictatorship of any one single branch.  The House of Representatives was designed to be the voice of The People, in which the whims and passions of the majority decided the outcome of each vote.  The Senate was intended to be the voice of the states, and the leaders of the executive branch were to be chosen by the Electoral College.

The establishment of the Federal Reserve Bank in 1913 gave the federal government the ability to print and spend worthless paper money at will.  Combined with the passage of a national tax on income in the same year, the 16th Amendment, the federal government can also control the finances of individuals directly and indirectly.  With Congress increasingly under majoritarian control, minority interests lack the power to stop deficit spending, entitlement programs, and the punitive use of the income tax for social change.  As a result, our debt and debt service have now exceeded our GDP and will continue to increase with no end in sight.

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A majoritarian democracy also allows group identity politics to flourish.  Our congressional representatives pander to voter blocs based on population, buying votes to ensure reelection, personal power, and their position on the gravy train.  Spending other people’s money is very easy.  The constitutional “General Welfare Clause” has been converted to the “specific welfare” giveaway program, granting privileges and funding to favored groups at the expense of others.  The corrupt and biased federal judiciary has failed to uphold the written words of the Constitution that clearly have been violated by these actions.     

Slowly and deliberately, the American Progressive Movement has destroyed the constitutional protections of minority rights with the blessing of the collectivist elite and the applause of the Washington bureaucracy.  While constitutional conservatives are currently losing the battle, it is inevitable that the majoritarian cabal will overplay its hand, and a course correction will occur.  The intensity of that event will determine the future course of our nation.

Resist Tyranny and Trust in Freedom!


Richard Rahn

Dr. Dan’s guest on Freedom Forum Radio this weekend is Richard Rahn, an American economist, syndicated columnist, and entrepreneur. He is chairman of Improbable Success Productions and the Institute for Global Economic Growth. Rahn writes a syndicated weekly economic column which is published in The Washington Times, Real Clear Markets, and elsewhere. He was the vice president and chief economist of the United States Chamber of Commerce during the Reagan administration and remains a staunch advocate of supply-side economics, small government, and classical liberalism.

In addition, Rahn is the author of the book The End of Money and the Struggle for Financial Privacy (1999). As an economic commentator, he has appeared on such programs as The Today Show, Good Morning America, Kudlow and Co., Wall Street Week, PBS Newshour, and Crossfire, and was a weekly commentator for Radio America. Rahn has testified before the U.S. Congress on economic issues more than seventy-five times. In the 1980s, Dr. Rahn was the vice president and chief economist of the Chamber of Commerce of the United States, executive vice president and board member of the National Chamber Foundation, and was the editor-in-chief of the Journal of Economic Growth.

In 1982, President Ronald Reagan appointed Rahn as a member of the Quadrennial Social Security Advisory Council. In 1988–1989, he was an economic advisor to President George H. W. Bush. In 1990, Dr. Rahn founded the Novecon companies, which included Novecon Financial Ltd., Novecopter, and Sterling Semiconductor (now owned by Dow Corning).

Part one of this fascinating interview airs on Saturday and Sunday, May 7-8 on WJRB 95.1 FM and is streamed live over the Internet. Part two airs on Saturday and Sunday, May 14-15, and part three airs May 21-22.

Air times are Saturday, 8:00 AM and 9:30 AM, and Sunday, 2:30 PM and 7:00 PM. All programs are available by podcast following airtime here.

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