|
Send to a friend
Printer Friendly PDF Format
Subscribe to FFF Email Update
Subscribe to Freedom Daily
Close the Bases and Cut the Spending
by
Sheldon Richman,
Posted May 30, 2005
The frantic reaction to the Pentagons plans to
close 33 major military facilities demonstrates how
heavily government dominates modern life. Most of the
reaction had nothing to do with national security. After
all, it is Defense Secretary Donald Rumsfeld floating the
proposal. Who is going to believe that he and his boss,
President Bush, are weak on the military? On the
contrary, they too readily see it as a panacea.
No, the reaction focused on the economic cost to the
bases surrounding communities. As CNN put it,
The reaction to the announcement by the communities
affected from New Jersey to California, Wisconsin
to Texas was first disappointment, then
determination to fight for their livelihoods. CNN
added that the Pentagon plan calls for a net loss
of 29,005 military and civilian jobs at domestic
installations.
Their livelihoods! People in a free-enterprise society
are not supposed to look to the government for their
livelihoods. But the bloated military, which is part of
the burdensome welfare-warfare state, makes that
possible.
In a free market, consumers ultimately direct production
according to their decisions to buy or not to buy. Even
stages of production far from the consumers must
eventually satisfy them. Mining iron ore to make steel
has value only if consumers want things made of steel. If
a better and cheaper material were discovered, the value
of iron ore would plummet.
How do consumers get the money to buy things and direct
the productive process? By being producers themselves,
which means they must satisfy other consumers. Thus one
can consume only if one first produces something that
others want to consume. In this way, the economy is in
the hands of consumers. Entrepreneurs, owners of capital,
and workers all must strive to please them in order to
prosper.
Big government corrupts this beneficent process.
Government finances its activities through taxation
fiscal force that is, it compels productive
people to surrender part of their incomes. Politicians
and bureaucrats then spend the money in sundry ways.
Notice the break from the markets mode of
operation. In the market, one can acquire someone
elses money only through consent, usually by
offering him something he wants: a gallon of milk, a
computer, an automobile. But when the government
commandeers the money, to that extent it also commandeers
the market process. Now the money is spent not by people
who have satisfied consumers, but by government employees
and contractors who have satisfied their bureaucratic
bosses. (The Public Choice school of political economy
has exploded the fiction that government personnel are
motivated to serve the people.)
For many years thousands of military-base employees have
spent millions of taxpayer dollars buying goods and
services in the nearby communities. Many people have come
to depend on that patronage. Had that money not been
taken from the taxpayers, they would have spent and saved
it in ways that satisfied them, and others would have
prospered as a result. Thus government is revealed as
little more than a transfer machine, moving money from
those who serve productive consumers to those who serve
unproductive bureaucrats and politicians.
The upshot is that closing the bases and this is
important letting the taxpayers keep their money
would free the economy to make our lives better. The rub
is that although the Bush administration wants to close
the bases, it hasnt said it will cut spending. Too
bad. Until the government drastically cuts spending, we
productive people will be living in involuntary
servitude.
Sheldon Richman is senior fellow at The Future of Freedom Foundation, author of Tethered Citizens: Time to Repeal the Welfare State, and editor of The Freeman magazine. Send him email.
|