Law And The State
Submitted by Tyler Durden on 01/16/2011 16:14 -0500
The next in a continuing series (most recently: Money and the State). Law and the State. Submitted by Free Radical.
The more corrupt the State, the more numerous the laws. – Cornelius Tacitus
It has been said, albeit in jest, that the five most important words in the United States Constitution are “Congress shall make no law...”i It is all but impossible for Congress not to make law, however, for Congress is the legislative – the lawmaking – branch of government. As obvious as this is on its face, what is not obvious, but nonetheless true, is that legislated law is inherently in conflict with the very reason that Congress was created: namely, to represent the people. Why? Because
… the more numerous the people are whom one tries to “represent” through the legislative process and the more numerous the matters in which one tries to represent them, the less the word “representation” has a meaning referable to the actual will of actual people other than that of the persons named as their “representatives.” ii
Since the matters to be dealt with are limitless, so is the legislation required to resolve them, which is why
… a legal system centered on legislation resembles … a centralized economy in which all the relevant decisions are made by a handful of directors, whose knowledge of the whole situation is fatally limited and whose respect, if any, for the people’s wishes is subject to that limitation.iii
A cursory examination of the numbers, from a historical perspective, drives the point home:
The Constitution was framed for 3 million people in thirteen sovereign states. When the first Congress met in 1790, there was one representative for every 30,000 [people]. Since only property-holding white males could vote, [this comes to] around 5,000 voting citizens per [representative]. By 1920, the U.S. population was 90 million, and Congress capped representation in the house at 435, where it remains today. Now, however [2002, when this article was published], there are 287 million Americans, yielding a ratio of one representative for every 655,000. If we apply this ratio to 1790, there would have been only five members in the House of Representatives. Or, to put it another way, if the ratio of the framers existed today, there would be around 9,000 members in the House. iv
Clearly, the notion that but those with what are now commonly known as “special interests” – i.e., those with the money to pay for the requisite access – are represented in any meaningful way in the U.S. today is ludicrous:
All special-interest groups seeking a share of federal largesse work diligently, day in and day out, to urge the government to abandon or ignore constitutional limits and award them subsidies. In contrast, the general public is widely dispersed and rarely ever well organized politically.v
And insofar as special interests are at odds with those of the people as a whole – i.e., insofar as they merely reflect the fact that the state is “the fictitious entity by which everyone seeks to live at the expense of everyone else” – it is equally clear that
what is represented in the end, is the interests of the state itself, since the state has no other means of living at all:
It is unfortunately none too well understood that, just as the State has no money of its own, so it has no power of its own. All the power it has is what society gives it, plus what it confiscates from time to time on one pretext or another; there is no other source from which State power can be drawn. Therefore, every assumption of State power, whether by gift or seizure, leaves society with so much less power; there is never, nor can be, any strengthening of State power without a corresponding and roughly equivalent depletion of social power.vi
This being so, t
he growth of state power demonstrates beyond all doubt the trend away from representation and toward centralization. At the time of its founding, the combined civil and military employment of the United States’ then-federal government was perhaps 2,500 people
vii, or
roughly one federal worker for every 1,600 citizens, while its now-central government employs some 14.6 million people, or more than o
ne central worker for every 21 of the nation’s present population. Amounting to
a growth rate of nearly 7,600%, it is little wonder, then, that Americans’ tax burden has grown even more. For while the average U.S. citizen paid a paltry $20 a year in federal taxes at the time of the nation’s founding, today the average citizen pays over $10,000 a year in inflation-adjusted terms, amounting to a growth rate of fully 50,000%.
And little wonder, as well, that the legal apparatus that propels the process is equally out of control. After all,
the laws on the books in the United States have long been beyond counting, and Congress has no interest in capping them for the simple reason that by doing so it would put its members out of their jobs. What Congress does instead – with the full support of the other two branches of government – is to secure the jobs of its members through the passage of one positivist law after another, ad infinitum.
And thus do we confront a fundamental difference between negative and positivist law: While negative law is inherently parsimonious, positivist law is inherently profligate, the latter endlessly violating what the former naturally embraces, doing so with predictable results. For legal positivism not only creates new laws but, in the process, new “rights.” And as distinct from the few and very real rights upon which civil society is based – i.e., as distinct from the non-intervention of the negative golden rule – positivist rights are inherently interventionist in that, as grants of privilege, they impose obligations on some for the benefit of others. Be it food, housing, healthcare, employment, education, retirement, or some other “entitlement,” others – namely, taxpayers – are forced to pay for them, meaning that individuals’ legitimate rights are ipso facto violated.
Moreover, because ignorantia juris non excusat – “ignorance of the law is no excuse” –
it is inevitable that as the legal apparatus expands, certainty of the law – which “is probably the most important requirement for the economic activities of society”viii – becomes impossible. And thus is the social enterprise set adrift upon a sea of uncertainty, its compass useless amid the perfect storm of legal positivism; thus does the legislative process result not in law but in lawlessness; and thus is society subjected to the nullification of the complex by the of the institutionalization of the complicated. For even though the words are generally considered to be synonymous, a subtle but vitally important distinction can be made between the complex and the complicated vis-à-vis the unintended consequences of the one versus those of the other.
We are all familiar, of course, with Adam Smith’s famous passage in The Wealth of Nations regarding the invisible hand, whereby the individual, in pursuit of his own interests, “frequently promotes that of the society more effectually than when he really intends to promote it,” doing so in recognition of the fact that “It is not from the benevolence of the butcher, the brewer or the baker, that we expect our dinner, but from their regard to their own self interest.” Thus do we “address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.”
And simply put, this is how the market functions – i.e., as an endeavor in which individuals cooperate in recognition one another’s self-interest – the result of which, with the introduction of money, is complexity on a scale that would be unattainable – indeed, unimaginable – on the level of subsistence or barter. And we have but to consider an age-old board game to understand this. For its simple and certain rules, which virtually anyone can comprehend, provide for a permutation of moves in an all but infinite variety, the elegance of which has attracted humanity’s finest minds since the game’s invention, more recently pitting high-powered computers against them. In other words, what makes chess so elegant is precisely what makes the market so elegant, their respective rules being so few, certain, and understandable that each is all but unlimited in the complexity it can generate, said complexity adding commensurately to the enjoyment of life.
Not so for, say,
the U.S. tax code, which was only a few pages long at the time of its introduction in 1913 but is now nearly seven times the length of the Bible, requiring some 7.6 billion work-hours of tax compliance each year at a cost that is projected to rise from over a quarter trillion dollars today to nearly half a trillion dollars by 2015. So incomprehensible that not even one of the world’s most renowned geniuses could understand it, the U.S. tax code constitutes drudgery on a stupendous scale, detracting in like proportion from the quality of life and doing so solely to transfer power from society to the state.
Thus do we arrive at the vital distinction between the rule of law and its ruin:
Society, being ruled by law that is common to it, is inherently complex and accordingly unlimited in the amount of order it can generate, while the state, being law unto itself, is inherently complicated and accordingly unlimited in the amount of disorder it can generate.
And in light of the rampant disorder with which we are now confronted, it is clear that in positivizing society’s money and its law, the state has not only toppled The Twin Pillars of Civilization; it has shattered the foundation upon which they stand.
For it has destroyed the freedom that is society’s sine qua non and thus imperiled society’s very existence.
But how has the state done so? And why has it done so? Why, in fact , does the state even exist? We address these all-important questions in my next submission: “The Nature and Origin of the State.”
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i The United States Constitution, Amendment 1: “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”
ii Bruno Leoni, Freedom and the Law, Liberty Press, 1961, p. 19.
iii Ibid., pp. 6 and 7.
iv Donald W. Livingston, “Dismantling Leviathan,” Harper’s magazine, May, 2002, p. 14.
v Thomas J. DiLorenzo, Lincoln Unmasked: What You’re Not Supposed to Know About Honest Abe, Three Rivers Press (Crown Publishing Group, Random House, New York), 2006, p. 72.
vi Albert Jay Nock, Our Enemy the State, Libertarian Review Foundation, 1989 (1935), Chapter 5, “Social Power vs. State Power,” p. 5.
vii Records only go back to 1816, at which time, according to TABLE Ea894–903 of Historical Statistics of the United States, there were a total of 4,837 federal employees, rising to 399,381 in 1916 and reflecting a growth rate over 8,200%. Working backwards to 1790, then, 2,500 federal employees at that time is a very generous estimate and could well have been significantly lower.
viii Ibid., Leoni, p. 70.
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