“None are more hopelessly enslaved than those who falsely believe they are free.” – Johann Wolfgang von Goethe

Recent events not only with the current healthcare bill, but also on the economic front are waking up more and more Americans to the sad truth that the federal government is out of control. A fascist state is quickly developing in America, one of the few rare places in the history of the planet where “life, liberty, and the pursuit of happiness” was not an unattainable dream but instead a mission statement. I first fully grasped where the misguided actions and ideology of the Republocrats would lead America during the Banker Bailout of 2008, and I returned home to fight against the Establishment by running for United States Congress as soon as I could.

Now when I use the term “fascism” in this piece, I do not mean its typical connotation with physical brutality, murder, and torture – though this is the easily recognizable final product. Fascism by Benito Mussolini’s originally intended economic meaning was symbolized by the “fasces” – bound sticks used as a totem for state power in ancient Rome. Here are my definitions – which by and large agree with most literature – for four socioeconomic systems:

1. Free Enterprise – a social system based on the private ownership of the means of production.

2. Interventionism – a social system where the means of production is privately owned, but the government intervenes by passing regulations and orders.

3. Fascism – a social system where on paper the means of production is still privately owned, but the government has de facto control through the passing of a multitude of regulations and orders, accompanied by corruption.

4. Communism – a social system based on government (or “public”) ownership of the means of production.

The great confusion of today by many is that the evils of government-sponsored corporatism, “crony” capitalism, or “disaster” capitalism are instead somehow free enterprise, when in reality rarely do even local farmers’ markets pass as free enterprise today.

Many examine the current state of rampant interventionism and soft fascism, conclude the free market failed, and incorrectly decide that the solutions must be yet more centralized government control of the economy, as seen in many respects with corporate bailouts of AIG, GM, Citibank, and others. Unfortunately, more fascism will cause a downward spiral as can be predicted by reading my article “The Government’s “War” on Main Street” and the campaign’s Jobs plank.

Case in point is the healthcare takeover where a tax of almost $1 trillion dollars will be levied upon the American people in new taxes over the next several years to provide coverage – not necessarily actually providing healthcare as pointed out in the campaign’s Health Care plank. Congress, via the HMO Act of 1973 and other acts, has created a government-sponsored insurance cartel that does not serve consumers best. A system of free enterprise would deliver the most affordable, best-quality healthcare to consumers with the most features while naturally regulating the upcoming medical worker shortage as baby boomers attempt to retire. (photo)

The solutions to the healthcare situation are to remove state mandates that dictate 15-40% of premiums in Pennsylvania, destroy insurance portability barriers over state lines, pursue tort reform on the state level, enact federal tax relief legislation, remove state restrictions on licensing and seats in the medical school system, and provide a sound currency to stop price inflation. Note that all these solutions call for LESS government intervention, not more. Also note that while Republican politicians may seem at first to support my line of reasoning, at heart they seek control just like the Democrats, as the incumbent in my race, Charlie Dent, demonstrated in his healthcare bill last summer.

Besides the healthcare tax bill, Congress has been hard at work creating new barriers for businesses on the economic front. Senator Dodd introduced legislation markedly similar to HR 4173, the Wall Street Reform and Consumer Protection Act of 2009. I dubbed this bill the Automatic Bailout Bill in November 2009 as the bill grants sweeping new powers to the Federal Reserve and creates more central planning unelected bureaucrats with the Financial Services Oversight Council.  (Photo courtesy Michael Kubel of The Morning Call)

Section 1105 gives this council vast powers to takeover transactions of all financial holding companies that pose a “grave threat to the financial stability or economy of the United States” which of course is let undefined.

Section 1701 gives the Federal Reserve “in unusual and exigent circumstances… that a liquidity event exists that could destabilize the financial system” power to authorize immediate bailouts and assistance to any “individual, partnership, or corporation.” This enables the FED to neatly bypass Congress when the next crisis occurs. The dollar limit on the FED’s new bailout authority? A cool $4 trillion dollars.

Section 1405 is a tragic comedy. It brazenly stipulates that the FDIC deposit insurance fund (DIF) reserve ratio must be higher than 1.15% for bank accounts. Unfortunately, the DIF is ALREADY at negative 0.39% and is completely insolvent by nearly $21 billion. While the government is intent on printing its way to prosperity, down this route only lies madness.

Fascism, communism, and even much of interventionism that violate individual liberties are just varying degrees of central planning, aka socialism. As America installed more interventions in the economy, the great Austrian economist Ludwig von Mises in 1950 delivered a lecture “Middle-of-the-Road Policy Leads to Socialism” which warned that interventionism, over the long run, would still lead to socialism. Mises was correct, and the impending dollar currency crisis which will make the current situation pale in comparison remains unheeded by the money-printers in Congress and the FED.

If America is to have freedom from fascism, the current healthcare and economic takeovers must be firmly rejected. The greatest threats to America’s prosperity, liberties, and way of life do not tread in forsaken deserts but instead infest the halls of Washington, D.C.  The choice between the two socioeconomic systems – the failed status quo or the solution that will create prosperity – is stark, but easy to make once the facts are understood.  America must leave the Road to Serfdom or pay its eventual consequences.

As I pledged on the healthcare bill, so do I pledge on any economic takeover Congress passes to immediately act to revoke it once I take office in January 2011 as an independent private citizen, beholden not to lobbyists and special interests, but to the people in my district who I will faithfully serve by delivering true transparency and real accountability.

For Liberty!!

Jake Towne

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