The People Tell the King to Get Bent
Is such a system undemocratic? Certainly.
Callous, perhaps? Well, perhaps it is.
But is it fiscally stable? Yes.
In brief, monarchy may be better with money than
democracy. It is a superior steward of wealth — at
least by this theory.
Once again, Hoppe:
While a king is by no means opposed to debt,
he is constrained in this “natural” inclination by
the fact that as
the government’s private owner, he and his heirs
are considered personally liable for the payment
of all
government debts (he can literally go bankrupt,
or be forced by creditors to liquidate government
assets).
Consider, as one example:
In 1392, England's Richard II was in arrears to
the Pope in Rome… and required 1,000 pounds
toward satisfaction of his debt. He did not have it.
So old Rich appeared before the citizens of
London with an open hat.
Moreover, they refused him. Imagine it!
Freeman Tilden, from his neglected 1936
masterwork
A World in Debt:
Kings had power enough to contract
debts, but found it much more difficult
to take advantage of that power
… The feudal system, with its insecurity
and constant
clash of petty divisions, was not calcu-
lated to invite credit.
In distinct contrast, Hoppe argues, we find
the democratic president:
A presidential government caretaker is not held liable
for debts incurred during his tenure of office. Rather,
his debts are considered “public,” to be repaid by
future (equally nonliable) governments.
Perhaps this explains — pandemic aside — why the
national debt of the United States runs to some $31
trillion?
It is a capital fact beyond all dispute:
Most democratic nations groan beneath bloated
government… extortionate taxation… and
Himalayan levels of debt.
Taxes
How does this lovely, lovely state compare with the
barbarous age of monarchs, Mr. Hoppe?
During the entire monarchical age until the
second half of the 19th century… the tax burden
rarely exceeded 5% of national product. Since
then it has increased constantly. In Western
Europe it stood at 15–20% of national product
after World
War I, and in the meantime it has risen to
around 50%.
Government spending ran to roughly 10% of GDP
prior to World War I. It currently nears 50% in
many democratic
countries.
Total government spending in this Land of the
Free amounts
to 36% of GDP — nearly 40%.
Perhaps in retrospect, the world might have been
made safe for monarchy in 1917.
And maybe our Colonial forefathers should have
left old King George alone in 1775. His tax bite
was so light… it failed to
break the skin.
Our researches reveal that American Colonial
taxation ran to about 1% of total income — 1%.
And between 1764 and 1775, claims political
scientist Alvin Rabushka:
The nearly 2 million white Colonists in America paid on
the order of about 1% of the annual taxes levied on the
roughly 8.5 million residents of Britain, or 1/25th, in per
capita terms…
As traitorous as it may appear, we are half-tempted to
disinter King George’s innocent bones and throw them
a much overdue parade.
But let us entertain no more thoughts of heresy.
The Worst System of Government…
Except for the Rest
Hoppe’s book is actually no call for monarchy.
As the author himself states at the onset —
“I am not a monarchist and the following is not
a defense of monarchy.”
His primary purpose is to diagnose an illness
— not to prescribe a cure.
Hoppe’s sins against democracy are nonethe-
less of the mortal variety. And mainstream
academics put him under excommunication
for his blasphemies.
But to repeat, Hoppe does not call for monarchy.
Nor do we.
Beneath our seditious motley beats the heart of
an American patriot… and our blood runs true
under red, white and blue.
Besides, a king could be every inch the scoundrel
as an American president. And since he faces no
election, how could we possibly count upon him
to say amusing and idiotic things?
Let us, therefore, not discount the comedic value
of democratic government.
In addition, monarchy is certainly no guarantee
against bankruptcy — as history records well.
More than a few ne’er-do-well kings have driven
their realms to rack and ruin. Who can dispute it?
But it is due more to incompetent kingmanship
than kingmanship itself. A rascally Henry VIII can
inherit a throne as easily as a wise Solomon.
Regardless, it matters little…
Hoppe’s monarchic realm will never exist — not
in today’s age of mass democracy.
But does it soften his case?
Winston Churchill famously quipped that
democracy was the worst form of government
except for the rest.
But upon further reflection, perhaps monarchy
is the worst form of government… except for
the rest…
Regards,
