Adam Smith and the Foundations of Economic Liberty: Central Banking Unveiled

 

Adam Smith, the father of modern economics, bestowed upon the world a treasure trove of wisdom and insight. Among his myriad contributions, Smith's views on central banking stand as pillars of economic thought. In this article, we delve into Adam Smith's profound perspectives on central banking, illuminated by his own words.

The Invisible Hand and Economic Liberty

"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 interest." - Adam Smith

Smith's profound understanding of self-interest and the invisible hand of the market was the bedrock of his economic philosophy. He believed that individuals, guided by their self-interest, could create wealth and prosperity for society as a whole. Central to his views was the notion that markets should be free from excessive government interference.

The Perils of Central Banking

Smith's stance on central banking was rooted in his belief in the virtues of limited government intervention. He viewed central banks as potential sources of instability and danger.

"The silver and gold, when separated from the currency, and from the plate, and employed in foreign trade, have still a value; but in those uses they have no more value than so much lead or iron." - Adam Smith

Smith was wary of paper money issued by central banks, recognizing that it could lead to inflation and a depreciation of the currency's value. He believed that the stability of a nation's currency was crucial for economic prosperity.

The Role of Sound Money

"When the quantity of money increases, this serves no other purpose than to increase the money-prices of goods." - Adam Smith

Smith's views on sound money were clear: a stable and reliable currency was essential for the proper functioning of markets. He cautioned against any tampering with the money supply that could disrupt the natural balance of prices and distort economic decisions.

The Importance of Competition

"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public." - Adam Smith

Smith's vision of competition as a powerful force for good extended to the realm of banking. He believed that a competitive banking system, rather than a monopolistic central bank, would serve the public interest better by offering choices and preventing abuses.

Conclusion

Adam Smith's views on central banking continue to resonate in the modern world. He championed economic liberty, self-interest, and competition as the cornerstones of prosperity. His cautionary words about the dangers of excessive government control and unsound money are especially pertinent in today's complex financial landscape. As we navigate the intricacies of central banking, Adam Smith's enduring wisdom reminds us of the timeless principles that underpin economic freedom and individual prosperity.

Exposing the Beast: Shocking Tales of IRS Power Abuses

The Internal Revenue Service (IRS) is responsible for enforcing tax laws in the United States. While the vast majority of IRS activities are carried out professionally and within the bounds of the law, there have been instances in which critics have alleged abuses or misconduct by the agency. Here's a list of some reported IRS enforcement abuses:

Targeting of Political Groups (2013): One of the most high-profile cases involved the IRS allegedly targeting conservative political groups applying for tax-exempt status. The IRS subjected these groups to extra scrutiny and delays in their applications.

1. Leak of Taxpayer Information (2015): In 2015, an IRS employee was accused of illegally disclosing tax return information for political purposes. The information was reportedly leaked to the media.

2. Asset Forfeiture Abuse: Critics argue that the IRS has misused civil asset forfeiture laws to seize the assets of individuals and businesses suspected of tax evasion or other financial crimes, sometimes without sufficient due process protections.

3. Whistleblower Retaliation: There have been allegations that the IRS has retaliated against whistleblowers within the agency who exposed misconduct, fraud, or mismanagement.

4. Selective Enforcement: Critics have accused the IRS of selectively targeting individuals or groups based on their political beliefs, ethnicity, or other factors.

5. Abusive Audits: Some taxpayers have claimed that they were subjected to overly aggressive or invasive audits by the IRS, which they viewed as harassment.

6. Improper Seizure of Property: Allegations have been made that the IRS has improperly seized property and assets, including bank accounts, homes, and businesses, in cases of alleged tax non-compliance.

7. Overreach of Tax Collection Methods: Critics argue that the IRS has occasionally overstepped its authority in using tactics such as wage garnishment, bank levies, or liens without due process protections.

8. Discrimination Against Certain Taxpayers: Accusations have been made that the IRS has unfairly targeted specific groups, industries, or individuals for punitive actions or audits.

9. Inadequate Safeguards for Taxpayer Rights: Some argue that the IRS does not provide sufficient safeguards for taxpayer rights, potentially violating due process principles.

It's important to note that these allegations represent a minority of cases within the IRS, and many of them have been addressed or investigated by relevant authorities. The vast majority of IRS employees work diligently to administer tax laws fairly and uphold taxpayer rights. However, concerns about IRS enforcement practices have prompted ongoing discussions about accountability, transparency, and due process protections within the agency.

#1 Hit Video Short for the Week of 05/26/2024

The Southern Poverty Law Center is one of the organizations which fights against the practice of Policing for Profit.