Occupy Island A, B, C, or D?

You decide to occupy one of four beautiful Islands, Island A, B, C, or D. You are all packed but which one will you move to? Each of the four Islands has perfect weather. Each has a population of approximately 10,000 people.  They are alike in every way accept for their economic and political systems.  Before you make your decision on where to live let’s take a look at life on each of the four Islands.

Island A is governed by a “Ruling Family Council.” The Family Council cannot be removed from power.  The Council has determined that life shall be fair for everyone one on the Island.  From inside their opulent palace the Family Council enforces a strict system of “economic equality” and “social justice.”  All property on Island A is owned by all citizens equally, i.e. the Ruling Family Council owns all property on behalf of the citizens.  On Island A all citizens are guaranteed a job for life at a subsistence wage. Jobs are assigned by the ruling family council. Citizens who have the ability to earn more are required to give anything they earn above subsistence to other citizens who need it more, the rule being “from each according to her ability to each according to her need.” Communal housing is assigned by the government. On Island A, the church, the school system, the health care system, the banking system, the monetary system, the media, the transportation system, in fact every system, every organization, and every provider of every product or service is a monopoly that is strictly owned and operated by the government.  The Ruling Family Council owns the means of production therefore every job is a government job.  Competition is illegal on Island A. Black market trading is punishable by death or long unpleasant stay in the gulag. Trade with other Islands or other nations is prohibited.  Citizens are not allowed to leave the Island.  It is unlawful to criticize the government or to say anything that the Ruling Family Council does not like. For the good of the Island members of the Ruling Family Council are exempt from the laws and rules that apply to ordinary citizens. The Island is very poor. Poverty rate is estimated at 99%.

Island B has a democratic form of government and a Constitution that is not enforced. Laws that are enforced on citizens do not apply to politicians. The citizens own about half of the property on the Island and the government owns the rest. Everyone votes but about half of the population pays no taxes. The wealthiest one percent of the population earns about nineteen percent of the income but pay 37 percent of the income tax. The government manages massive entitlement programs that operate at a staggering loss. Government-related entities back 96% of all home loans and 40 percent of mortgages are underwater.  Corporations and other organizations deemed “too big to fail” are routinely bailed out by the government using tax payer dollars.  Taxpayer dollars are routinely redistributed to money losing special interests corporations deemed to be “good investments” by the government.  Companies that support politicians with significant donations are given special tax breaks and protection from competition.  Excessive regulations cripple businesses and stifle innovation. Starting a new business requires paying off government agencies and buying your way through miles of red tape.  Businesses are taxed at the highest rate of any country in the world and many companies have already moved off Island.  Laws favor unions and other anti-business organizations making it more profitable for businesses owners to move off-Island. Entitlement programs, bureaucratic spending, government agencies, and wasteful government spending have resulted in massive unsustainable and exponentially rising debt. At this moment the Island is not poor by world standards but the poverty rate is hovering near 16% and the Island is technically bankrupt.

Island C is a Constitutional Republic. On Island C the Constitution is strictly enforced. The government is manned by elected officials sworn to uphold the Constitution and legally bound to do so. The laws of the land are widely understood and widely accepted by all. Every law applies equally to the governed and the governing.  The Constitution restricts the government to the execution of a small but important number of duties including national defense, security, the court systems, and the protection of private property rights. A low flat tax is collected from all working citizens.  There are no other taxes and the tax rate cannot be increased except by Constitutional Amendment. The government cannot spend beyond its means because it is required by law to balance its budget in real terms each year. On Island C people are free to work where they want, say what the want, and keep almost all of what they earn.  Business owners are allowed to succeed or fail.  There are no bailouts for any company no matter how big or how small. There are no tax breaks for corporations. There are no subsides for businesses of any sort. There are no barriers to entry and no special favors for any business.  On Island C there are no restrictions on trade with other Islands and there are no tariffs on trade whether domestic or international. Anyone can start a business on Island C so long as she obeys the law.  Island C is fantastically wealthy.  At 6% the poverty rate on Island C is the lowest of any nation on the earth.

Island D has no government.  It exists in a state of anarchy.  There are no markets on Island D save cutthroat black markets and high seas piracy.  Ninety nine percent of the population lives in poverty.  A few warlords live in luxury.  100% of the population lives in fear. Life expectancy is very short.

There you have it. Islands A, B, C, and D. Now it is time to choose which Island you would like to occupy. . .

If you picked Island A you are a Marxist.  Pack light because whatever you take will be confiscated anyway.

If you picked Island B you favor a system economists describe as a mixed economy, part capitalist and part socialist.  Some economists call this type of system Corporatism or Crony Capitalism.  No need to pack because you are already on this Island.

If you picked Island C you are a classical liberal or what we now refer to as a libertarian. Pack anything you want and prepare to live long and prosper.

If you picked Island D you are an anarchist.  Remember to pack body armor.
By Mark Van Schuyver