#15: Be prepared!Why? They see a popular trend toward less government and lower taxes, and know that such a trend must destroy the welfare state, which relies on big government, and needs high taxes. The statists’ concern may seem silly, given the avowed aim of most reform-minded politicians to “save” Medicare and the rest—but they are dead right to be concerned! Today’s timid, tentative pruners of government are unleashing forces of reform which will go far beyond their aims. Each reform clears the way for the next reform—and whets the public appetite for it. When a little pruning of government doesn’t hurt, and offers hope of tax relief, the obvious conclusion is to cut lots more and get some real tax relief! Reform snowballs! Remember that Gorbachev wanted to “save” Communism and the Soviet Union. We watched them crumble—live on TV. Russia fell into chaos because few Russians had a clue how a free society works. That won’t happen here in North America. Here there are millions of people with a sound, practical grasp of free markets, a solid tradition of liberty which goes back (at least) to the 17th century, and a large body of theory by which to understand capitalism. The theorists of capitalism have been voices in the wilderness for decades, but if reform snowballs, they will finally get the hearing which the factual accuracy, logical rigor, and practical value of their theories have always deserved. Their guidance can keep even radical reform from lapsing into chaos. 1. Of course, reform will be in the hands of politicians and governments, and we can expect them to mess up as usual. So you2. will have to look out for yourself and your family. The destination of reform is a smoothly running free market, but the road to it may be bumpy. Prepare yourself! How do you prepare for capitalist reform? For one thing, don’t plan a civil service career: government will be in a bear market for the foreseeable future! More generally: Don’t rely on government. Don’t expect government to continue to pay your doctor bills, your school bills, and your pension when you retire. Expect the most sincere promises of each government to be ignored or repudiated by the next one. The problem with relying on government is that you can’t rely on government. Social Security and Canada Pension give you an absolute right to whatever the government of the day is willing to give you! Other programs are no more secure. What can you rely on? Instead of clinging perilously to the skirts of government, look ahead to the end of reform. Name it to yourself: capitalism. That tells you what you can rely on, once you translate it into its full meaning.
To prepare for capitalism, become a capitalist! This doesn’t (necessarily) mean start a business: it means create capital for yourself, your own capital. You can use your capital to see you through the rocky spots in the rapids of reform. When a desperate government drives up your expenses before it cuts your taxes, your capital will help you to get by. While you’re still paying for the welfare state, and haven’t yet reached the full benefits of capitalism, you can draw on your capital. Your capital will also put you in a position to prosper mightily after the reforms. Low taxes are capitalist heaven. You needn’t aim at great wealth. Even a few thousand dollars will make a big difference to your ability to prosper during the transition. Create what capital you can. How? You create capital when you save from income. You only increase your capital by saving part of your income, whether your income is large or small. This is nothing new, of course. 4. But here’s something new: Everyone in a free society should aim to become a capitalist. Yes, that is a full, moral “should.” Lack of such an aim is a moral flaw. Why? Common sense tells us that being a capitalist is good for you. It helps you pursue and enjoy all your other values;5. saving needn’t seriously interfere with other values; and you have an income to save from (else, how do you live?). On the premise of egoism—that you should pursue your own good—what more proof do you need? Notice again that being a capitalist needn’t mean owning great wealth. It means owning and investing some wealth beyond what you immediately need. Because this is a new conclusion, you should cut some slack for those who have not yet reached it. (Don’t nag—encourage!) Above all, don’t condemn yourself if this is new to you. It is possible honestly to fail to grasp that it is a good thing to own capital. So prepare for capitalism by becoming a capitalist. You should anyway. With some significant capital tucked under the umbrella of property rights, you can face your future with confidence and hope. What if reform fizzles out? What if thorough reform is long delayed? What if the welfare state staggers along for decades, from crisis to crisis on its weary way to the scrap-heap of failed systems? Well, then you will need the cushion of your capital even more desperately than if you had to ride the rapids of reform, or if you lived in a prosperous, stable, capitalist world! 1.
Quackgrass Press will be delighted to pass along their conclusions to you!
You needn’t despair at fear of reforms—you can become a Quackgrass activist! Copy this article! Keep the original for future copies. Paper meetings with it! Paper your office! Leave a stack on your business counter! If you expect hostility, use stealth and cunning—it’ll drive your opponents wild! Be ingenious! Have fun! Quackgrass Press will use all the help it gets. E-gold is the easiest help to give! (If you don't know e-gold, find out here.) If you prefer to help by cheque, here's how!©1995, by Michael Miller. Permission is hereby granted for any non-commercial reproduction and circulation of this article—MM. |
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