Posted by Thomas Woods on 02/25/11

I am still speechless at David Letterman's interview with Rand Paul last night.  Let me collect my thoughts.

(1) Letterman wasn't even slightly funny.  He was obtuse, and merely hectored his guest.  Leno, as he showed in his interviews with Ron Paul (a man he disagrees with), would have understood that his audience wanted something other than "don't you want 'tax breaks' for the 'rich'?"

(2) Practically everything he said was wrong.  Rand correctly noted that the top 1% of income tax earners pay one-third of all the income taxes, with the top 50% paying 96%.  So the "rich" are already paying plenty.  Letterman's response? There must be something wrong with those numbers, he said to applause from the audience.  So the audience is in effect saying, "We also refuse to believe those numbers!"  But those numbers are correct.  Will they retroactively withdraw that applause, now that they realize they've made fools of themselves by clapping for the denial of an easily verified fact?

(3) Rand explains, again correctly, that spending more money on education has not improved educational outcomes.  Letterman's response?  Well, education is important, so we've got to try something -- how about spending more money?  But by the time of George W. Bush's term, per-pupil spending, adjusted for inflation, had already doubled since LBJ.  Meanwhile, with just chalk and a chalkboard, kids were once educated much more effectively and without the bureaucratic apparatus of the modern school system.

Recall what happened when Brookings scholar John Chubb looked into how many bureaucrats there were in the New York City school system -- after a dozen calls, he finally reached someone who knew the answer and was allowed to disclose it: six thousand.  He then called the Archdiocese of New York to ask the same question about their system, which educates one-sixth as many students.  The first person he called said, "Wait; let me count."  The answer?  Twenty-six.

(4) He strongly implied that the middle class was getting squeezed by the crackdown on unions taking place in Wisconsin, even though the growth of the middle class occurred in tandem with a decline in union membership.

(5) Letterman wonders why we can't just loot the "rich" some more.  Well, if we'd like to make still more firms leave the U.S., that'd be a good start.  Want to strangle the growth on which everyone's welfare depends?  By all means pursue this strategy.  It's the strategy that Detroit pursued for decades -- there's always more loot to be had.  That is, until everything collapses, as Detroit did.  And that's not to mention that the rich do have rights, too; they're not just villains to be looted.

(6) Rand points out, correctly, that the compensation package for Wisconsin teachers is extremely attractive, amounting to over $80K annually.  Letterman, to general applause, says that figure should be doubled.  Isn't education important?  This is the level of reasoning people appear comfortable with.  On Big Rock Candy Mountain there's a giant pile of cash overlooked by the governor and the rest of us. Don't worry that the pension systems are going to bankrupt the states -- that's nothing a doubling of teacher salaries won't solve.

(7) If Letterman and the geniuses in his audience reflect the general population, we have much more work than we thought.

Posted 02/25/11 Integrity cures all Woodbine, MD

It certainly does seem the world has been turned upside down! The government schools have actually done their jobs well, if you consider their products are now leading our nation into oblivion. They will take and take and take, until there are no true entrepreneurs left to be fleeced. We must waken the people, one person at a time. That will require more Tom Woods wisdom advocates in the arena! Many thanks for his efforts.

Posted 02/25/11 earlthepearl1111 San Jose, CA

I'm Of The Opinion, That The Educational System, The Opinion Of David Letterman's Circle Of Friends, Coupled With His Financial Success Has Shaped David Lettermen's Attitude From Which He Was Not Capable Of Arguing His Position Logically Or Intelligently.. As Long As He Maintains The Attitude That Has Shaped His Life, There Is Little Or No Hope For Him. Consequently, There Is Nothing About David Letterman That I Admire Or Emulate. You Can Lead A Man To Water But You Can't Make Him Think. So Sad..

Posted 02/25/11 celticreeler Rolla, MO

Class envy is a terrible poison. What is "fair?" Who is wise enough to adjudicate "fair"?

Posted 02/25/11 American Epirus Omaha, NE

Tom, I think you're absolutely correct on your points, Rand was right on his points, and living in an urban center, I suppose I agree most with your Point (7).

Posted 02/25/11 V for Veritas Kirkland, WA

Here is the Letterman segment with Rand Paul: http://www.youtube.com/watch?v=yeWOEASzVnY

Posted 02/25/11 trumble81 Phoenix, AZ

I've been in the audience for The Late Show and let me tell you that it is very very very coached. The crowd is told to make sure to cheer and clap a lot for Dave especially when he pauses. The audience may not be as on board with what he was saying as it appeared. Good analysis and great job by Rand.

Posted 02/25/11 irreality Somerville, MA

@last4ever "Nope, they will continue to clap, because there is plenty more that the fortunate are capable of paying, without diminishing their standard of living one iota. " It isn't about the "standard of living"... do you think all people do with their money is buy yachts and sleep in gold sheets? Most "money" wealthy people have are in stocks and investments, or is being used to start new businesses, or new charitable causes. You are correct -- taxing the rich more would not affect their standard of living. It *does* affect what free capital is available for private investment, non-profits, and within publicly traded companies. This in turn affects the common people by there being less jobs, less capital to start new small businesses, and less charitable organizations helping the needy. The debate is ultimately about the role of government in economics and society. It is not whether CEOs will reduce the threadcount on their sheets, but whether they consider the environment a good one for starting new businesses or see there being capital to start new charitable organizations.

Posted by Thomas Woods on 02/07/11

Today is the official day of release for my new book, Rollback: Repealing Big Government Before the Coming Fiscal Collapse.  The title is actually unfortunate and misleading.  The book covers all kinds of topics, all with an eye to giving the liberty movement as much ammunition as I can.  (See the bulleted list in this description of the book for an idea.)   It takes aim at the familiar picture of government that was painted for us in sixth grade -- why, government is composed of selfless public servants who seek only to pursue the common good; only a doltish ingrate would fail to acknowledge and honor their daily sacrifices, etc.

Rollback takes the impending fiscal collapse as a jumping-off point to re-evaluate the key arguments by which Americans were sold the ongoing growth in government in the first place.

Big media is likely to be scarce for this book, unfortunately, but as of this posting the book has managed to reach #50 on Amazon overall and #9 in nonfiction anyway -- almost entirely on the strength of the Internet, Facebook, etc.  (Nullification reached #31 overall on its first day, also with minimal media.)  This is very difficult to do, so I am extremely grateful for the support.  If you enjoy the book, I hope you can help me circumvent the guardians of approved opinion and get the word out about it.  Thank you!

Posted 02/07/11 Integrity cures all Woodbine, MD

Thanks for leading the charge! I can hardly wait to read your new book. It is very exciting to have access to great ideas and solutions at a time when our political leaders are so far off track and clueless! We all bear some responsibility for the mess our country is in, so it is the responsibility of all to diligently support the wisdom and actions which will set things right.

Posted 02/08/11 cement Warszawa, Poland

Tom, How is it possible that Kindle edition of Rollback is almost 3 dollars more expensive than paperback (19 vs 16 including local taxes)?

Posted 02/08/11 Thomas Woods Auburn, AL

Unfortunately, the publisher has no control over the Kindle price. Amazon has been pushing many of its Kindle prices up. Also, it is deeply discounting the hardcover.

Posted 02/16/11 TruthSaga San Jose, CA

Another book added to the library!

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Posted by Thomas Woods on 12/21/10

Tonight at 8pm ET on the FOX Business Network Judge Napolitano takes on central banking on a special episode of Freedom Watch called "Den of Vipers."  I don't know all the guests, but I do know Ron Paul, John Papola (of "Fear the Boom and Bust" fame) and I will be on.  Tune in!

Posted by Thomas Woods on 10/15/10

On October 20th I'll be speaking at Grand Canyon University in Phoenix at 7:00pm in the North Gym; topic will be the free market and the financial crisis.  Free and open to the public.  I'll be covering some of our favorite topics: Alan Greenspan, the Fed, Austrian economics, and what real change we can believe in might look like.  Publicity for the event is fairliy light, so I hope to see some C4L people there!

Posted 10/15/10 jorel55 Missouri City, TX

Hmm... You know a great place for another speech like this? The University of Texas at San Antonio!

Posted 10/15/10 C00kieM0nster Oxnard, CA

...or at Cal State Channel Islands :)

Posted 10/16/10 Melina4Paul Blawnox, PA

My first and fourth amendment rights denied i was on the News http://www.youtube.com/watch?v=gCu87LEEXTU Blawnox resident

Posted 10/17/10 Timisgood89 Exton, PA

Tom Woods kills it. He was awesome at Penn State two years back. Even a state-run Keynesian economics class here had a teacher who gave out extra credit to go. Those kids won twice I suppose, but I had a blast myself.

Posted 10/17/10 ticsani Boca Raton, FL

Funny know where Alan Greenspan works now? @ founder and president Paulson & Co., a New York-based hedge fund. And its strongest position is... ...you guessed it GOLD !!

Posted by Thomas Woods on 10/14/10
Last updated 10/14/10

Connecticut attorney general candidate Martha Dean is taking serious heat in the major state newspapers for her support of state nullification of unconstitutional federal laws.  I've already defended her against her robotic Democratic opponent, whose remarks are straight out of Orwell or Pravda.

Martha Dean is taking an extremely courageous position, and it's a shame to see her thrown to the wolves.  I hope folks in Connecticut will defend her, write letters to the editor, talk about her on the radio, and so on.  She deserves better.  See comment #16 to this post, and you'll find she is in fact willing to stick her neck out in a lot of areas, including calling for an end to the federal war on drugs.

C4L can't and doesn't endorse candidates; I am here saying only that the attacks on this woman are of the usual fact-free sort and deserve a rebuttal.  Feel free to draw arguments and ideas from the nullification section of this page.

Posted 10/15/10 ranger1759 Litchfield, CT

Back during the primaries, her Republican opponent sent out a flyer that informed me of how horrible Martha Dean was. I sent his campaign headquarters a thank you note, letting them know that because of them I had been able to decide who to vote for...Martha of course! I then sent an email to Martha's headquarters, and told them that to me she seemed like the best thing since sliced bread, and that if I didn't know better, she seemed awfully Libertarian to me, AND THAT WAS FINE BY ME! They immediately responded back and said thanks for the support. If she is not the new Connecticut Attorneys General on November 3rd, I am going to lose my mind!

Posted 02/27/11 pjr79 Los Angeles, CA

Dr. Woods, on point #7 I tend to agree with 'trumble81.' The Letterman (and Leno) audience gets a big applause sign blinking and are instructed to obey it. I would not interpret their laughter to be a sign of agreement (though it would be perceived that way by an audience at home.) Also, the coached laughter doesn't reflect whether they actually think Letterman's jokes are funny or not either.