Tags: Barker | Government | trouble | fed

David Barker: Institution of Government in Trouble

By Forrest Jones and John Bachman   |   Wednesday, 21 Dec 2011 01:08 PM

Ever wonder what it would really be like without government in the United States? Where the private sector runs everything?

Sound like a dream come true?

People seem to clamor for it regularly in the press these days, and it would be nice in many aspects, one former Fed economist says.

Yet with the good comes the bad.

With no IRS, no Post Office and with no Dodd-Frank would come odd personal finance choices and a greater risk of drug use.

The United States would also see a surge in immigration, which could be beneficial, says David Barker, a former Federal Reserve economist and author of the book "Welcome To Free America."

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A life without government would be possible due to overspending today, because in democratic societies today, governments are in trouble, Barker told Newsmax.TV in an exclusive interview.

They've been promising more and more to voters although increases in tax loopholes and a growing unwillingness to pay those taxes have given politicians less money to fund their campaign vows.

"If government continues to make more promises and has more trouble collecting taxes, eventually you have a problem," Barker tells Newsmax TV.

Editor’s note: To order ‘Welcome to Free America' at a great price — Click Here Now.

So what happens when government disappears?

"Private companies pick up the pieces and evolve to take care and to provide the services that government used to provide. And they provide everything from protection and security to roads, schools — all the sorts of things that we accustomed to seeing from government," Barker says.

With no minimum-wage laws, worker compensation would be set by the markets and immigrants would pour into the U.S.

"There are many, many people who would like to come to the United States now, but our immigration quotas make that difficult. If those disappeared, I think you would see people pouring into the United States now whether there was a government or not," Barker says.

Furthermore, with no regulation, businesses could start up with greater ease.

"The United States doesn't rank all that highly right now, at least not as highly as many would like in terms of freedom to start new businesses. You get economic freedom indexes that various institutions publish, which show that if those restrictions, occupational licensing, for example, if those went away, there would be many opportunities for people to come and start businesses," Barker says.

The transition to life without government would, however, bring freedoms to some that would make others uncomfortable.

"Some of the things that might disturb people would be, say, the legalization of drugs, and I write in the book that new, recreational drugs would be created by the pharmaceutical industry that are hard to imagine now. Hard to imagine what the effects of that might be," Barker says.

Personal finance could get a little creative as well.

"People may be free to sell stock in themselves. For example, you might finance your education by selling 1 percent, 10 percent or 50 percent of your future earnings to an investor," Barker predicts.

"That investor might have some veto power over your choice of job or over your choice of location. That might be disturbing to some people."

So would it be worth it? A life without tomorrow's versions of President Barack Obama and House Speaker John Boehner bickering over the airwaves of the future?

"Personally, I would love to try it but I think there are some aspects of that kind of society that a lot of people might find difficult. It's hard to know, it's impossible to predict what direction free markets will take and exactly what kind of society might result," Barker says.

Editor’s note: To order ‘Welcome to Free America' at a great price — Click Here Now.

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