This book is about self-interest. Politicians, attorneys, bureaucrats, businessmen, and the people do not look at government, and think of ways to improve our laws, rules, and regulations. Instead, they look at our legal system, and devise and scheme of ways to benefit personally from it.

Under a capitalistic system, profits drive self-interest. Thus, the rules are simple, and a person can predict outcomes. A person just asks one question, how does one profit from this situation? On the other hand, government and public institutions are not guided by a profit motive. Their self-interest is guided by whims, notions, beliefs, and prejudices that could constantly change. If government evolves in a large controlling institution, it can throw open the doors to an insane asylum. Unfortunately, those doors flung violently opened in the 1990s in the United States, and Americans witnessed the death of common sense. Hence, we arrive at the title of this book, “The Rise of the Insane State.”

The ideas in this book are universal. The more I travel, the more I see the same patterns of struggle between government and its people. It is actually quite eerie. Although the names and places change, government behaves in the same manner. All government officials impose their control and dominion over their people.

Cover design by Kenneth R. Szulczyk

Published 2009 by www.ken-szulczyk.com

Published by CreateSpace, ISBN-13: 978-1449584436
Published by Smashwords

Edition 5.0, May 2012

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Table of Contents
Foreword 1. The Purpose of Government Government Creates the Legal System Economic Systems The Rampant Expansion in Government The Optimal Size of Government 2. Crazy Laws Above the Law Corruption and Government Division of People Complexity of U.S. Laws 3. Frivolous Lawsuits Torts The Festering Growth of Attorneys The Parasitic Class 4. Excessive Regulations Parkinson’s Laws Government, Technology, and Urbanization Problems of Regulations Societal Cost of Regulations 5. Taxes Destroy Wealth Taxes Change Behavior The Laffer Curve Instability of State Government Finance Property Taxes versus Income Taxes 6. Corrupt Police and Kangaroo Courts The Race to Incarcerate Administration of Justice State Protection of Children 7. The Erosion of the Bill of Rights Amendment I Amendment II Amendment III Amendment IV Amendment V Amendment VI Amendment VII Amendment VIII Amendment IX Amendment X 8. Repetition of History – The Roman Empire The Rise of the Roman Republic The Birth of the Roman Empire The Decline of the Empire 9. The 2007 Great Recession and the Great Depression The Prosperous 1920s Stock Market Crash of 1929 The Banking System Deflation Farmers Employment Taxes The Growth of Government 10. The Anatomy of the 2008 Financial Crisis The Push for Homeownership Mortgage Asset-Backed Securities Collateralized Debt Obligations (CDOs) Credit Default Swaps (CDS) 11. A Grim Future Perpetual Bear Financial Markets Fleeing Businesses Excessive Enforcement of Laws The Growth of Crime and Black Markets Decline of Civic Loyalty and Political Corruption The Collapsing U.S. Dollar Hyperinflation About the Author
Foreword
This book is about self-interest. Politicians, attorneys, bureaucrats, businessmen, and the people do not look at government, and think of ways to improve our laws, rules, and regulations. Instead, they look at our legal system, and devise and scheme of ways to benefit personally from it. Under a capitalistic system, profits drive self-interest. Thus, the rules are simple, and a person can predict outcomes. A person just asks one question, how does one profit from this situation? On the other hand, government and public institutions are not guided by a profit motive. Their self-interest is guided by whims, notions, beliefs, and prejudices that could constantly change. If government evolves in a large controlling institution, it can throw open the doors to an insane asylum. Unfortunately, those doors flung violently opened in the 1990s in the United States, and Americans witnessed the death of common sense. Hence, we arrive at the title of this book, “The Rise of the Insane State.” The ideas in this book are universal. The more I travel, the more I see the same patterns of struggle between government and its people. It is actually quite eerie. Although the names and places change, government behaves in the same manner. All government officials impose their control and dominion over their people. The Rise of the Insane State – What is happening to the U.S. Economy? Copyright © 2009 by Kenneth R. Szulczyk, Ph.D. All rights reserved Cover design by Kenneth R. Szulczyk Published 2009 by www.ken-szulczyk.com Published by CreateSpace, ISBN-13: 978-1449584436 Published by Smashwords Edition 5.0, May 2012 Designed by Kenneth R. Szulczyk ©2009 Last updated May 1, 2012 Icons are from IconFinder

Table of Contents

Foreword