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You are here: Home > Economic Means to Freedom > Economic Means to Freedom - Part X
Economic Means to Freedom - Part X

by Frederick Mann
Is the Private Sector Really Part of the Public Sector?

The purpose of this article is to argue that from the perspective of the freedom activist there is no significant difference between the private sector and the public sector. The implication of this is that to the extent that freedom activists work or do business in the private sector, they support "the enemy."

I demarcate a third sector I call the REAL free-enterprise sector -- also called the "underground economy" or the "black economy." Free enterprise doesn't occur in the private sector; it occurs in the real free-enterprise sector.

I advocate what I call the "Build Freedom Shift" -- the shift of economic assets and activities from the public and private sectors into the real free-enterprise sector. (Build Freedom can be described as the real free-enterprise sector.)

The article also gives an indication of the size of the real free-enterprise sector and its growth, some of the opportunities available in it, and some indication of how to shift into it.

This article constitutes the dissemination of information in accordance with the right to free speech. Nothing in this article is to be interpreted as legal, accounting, tax, currency, banking, or investment advice. Anyone seeking such advice should consult a properly qualified and accredited professional. All readers of this article are emphatically advised to obey all laws on Earth and in the Universe to the letter.

How People in the Private Sector Typically Support the "Government Enemy"
People in the private sector typically support government by:
(1) They use corporations which are "instruments of the state." By doing so they subject themselves to government rule. (There are of course offshore corporations that are much closer to real free-enterprise.)
(2) Corporations typically include personnel who act as government tax collectors. They collect taxes on behalf of government and pass them on to government.
(3) Corporations typically include personnel who act as government snitches. They collect information about employees and payments to contractors and send the information to government. They also send all kinds of other information to government. Sometimes they garnish personnel wages/salaries on behalf of government.
(4) Typical corporations include personnel who pay corporate taxes to government. Practically all government funding comes from the so-called "private sector."
(5) Large corporations typically include personnel who bribe politicians and government bureaucrats with "gifts," campaign contributions, and lobbyist payments in return for legislation that will benefit the corporations and harm their competition.
(6) Professionals such as lawyers, doctors, dentists, etc. participate in government licensing schemes for monopoly-like privileges. Licensed lawyers (in the "private sector?") are "officers of the court," i.e., government agents.
(7) All kinds of "private-sector" contractors provide government with buildings, equipment, supplies, computers, weapons, technology, and a wide range of services. This includes weapons and technology to control and kill people.
(8) People in the "private sector" typically send their children to government schools for government brainwashing.
(9) People in the "private sector" typically use government fiat monopoly currency such as the $US. (Personnel in "private-sector" banks play a major role as government snitches and sometimes in freezing and/or seizing money on behalf of government.)
(10) People in the "private sector" typically vote politicians into power. See Don't Vote!, Don't vote! - it only encourages them, The Great Voting Hoax!, Fuck the Vote, Votescam, and Vote Fraud.

Many libertarians and other freedom lovers mistakenly regard the so-called "private sector" as being on the side of freedom, rather than realizing the extreme extent to which they're really on the side of government. If you carefully consider the above 10 points, how can you come to any conclusion other than that the "private sector" is largely an arm or branch of the public sector?

I was horrified when about 16,000 people were killed during the Bhopal disaster in 1984 in India. I was very disappointed when Libertarian International (now ISIL) principals published a statement supporting Union Carbide, whose toxic spill caused the disaster. Libertarian International principals supported Union Carbide because they're a "private-sector" corporation -- apparently oblivious to the reality that such corporations are major enemies of freedom.

"Liberation Factor" (LF) and "Enslavement Factor" (EF)
Suppose that I call the degree to which I promote freedom in my daily activities my "Liberation Factor" (LF) and the degree to which I support government my "Enslavement Factor" (EF).

In my personal case, because of the work I do (e.g., writing articles like this, providing freedom news , etc.), and the ways I organize and conduct my business affairs, my LF (Liberation Factor) is quite high.

My EF (Enslavement Factor) is reasonably low. It's still well above zero because:
(1) I pay rent to a "private-sector" corporation.
(2) I use government monopoly fiat currencies for about 10% of my transactions.
(3) I use "private-sector" utilities and banks.
(4) I buy, groceries, gas, etc. from "private-sector" corporations.
(5) Most of the above transactions include added-on taxes.
(6) I pay for car registration and a driver's license.

I guesstimate that on a scale of 100, my LF = 90 and my EF = 10.

If we calculate "Freedom Quotient" (FQ) as LF - EF, then my FQ = +80.

We live in a world where terrocrats (coercive political agents or terrorist bureaucrats) have rigged the game so they get the active support of the vast majority of the population. Most freedom lovers who are "in the system" provide a great deal of support to the terrocrats just by performing their daily activities: working in the "private sector," using terrocrat money for their transactions, etc.

Consider a freedom lover who works in some corporation. A portion of his pay is withheld and handed over to the terrocrats every week or month. Just by working in such a corporation, the freedom lover provides a great deal of support to the terrocrats. In general, personnel in this corporation obey the terrocrats, provide them with all kinds of information about their business and workers, collect sales taxes on behalf of the terrocrats and hand it over to them, pay corporate tax to the terrocrats, etc. Because of all the ways people in such a corporation support the terrocrats, it seems realistic to regard the corporation as being at least partially a terrocrat agency.

"The ideal tyranny is that which is ignorantly self-administered by its victims. The most perfect slaves are, therefore, those which blissfully and unawaredly enslave themselves." -- Dresden James

The power of terrocrats depends largely on the support they receive from their victims. Much of that support comes in the form of obedience, providing information, and collecting taxes on behalf of the terrocrats. To the extent that freedom lovers work in "government-agency-corporations" they act as terrocrat supporters. (Offshore corporations scan be used to greatly reduce terrocrat support.)

What if the typical freedom lover who works in a corporation has an LF of 20 and an EF of 80? If so, it would mean that such a freedom lover provides four times as much support to the terrocrat enemies, compared to his freedom-promoting activities. I suspect that the vast majority of freedom lovers live their working lives in such a situation. Their FQ = -60 or worse. How can freedom win if a large majority of freedom lovers have negative FQs?

Size of the Real Free-Enterprise Economy
Once you as a freedom lover have become fully aware that the so-called "private sector" is for many intents and purposes part of the public government sector, and you become aware of the extent to which you have been actively supporting the terrocrats, you may want to start considering alternatives.

During the past few years, a real free-enterprise economy has been growing "around" the digital and other alternative currencies such as e-gold. To get an idea of the size of this economy, check out the e-gold statistics. Usually the transaction volume in any 24-hour period is about $2 million equivalent. I've seen it as high as $3 million.

In addition to e-gold, there are:

See also E-Gold and Alternative Currency FAQ.

(A great deal of information on alternative/complementary currencies can be found at Transaction Net. See also Economic Means to Freedom - Part V.)

Another indication of the size of the alternative-currency economy can be gleaned from the e-gold Directory. There are several dozen companies that provide exchange services between the digital currencies and with the "outside world" of government monopoly fiat currencies. See also E-Gold Account Funding and the Gold Directory.

It's quite conceivable that the combined daily transaction volume in all these currencies exceeds $10 million equivalent a day (in January, 2002). Much of this occurs in the real free-enterprise sector. Many of the assets involved are in the real free-enterprise sector. The Build Freedom Shift is happening! Growing numbers of people are shifting assets and economic activities into the alternative-currency economy -- much of which is in the real free-enterprise sector. More and more businesses are conducting transactions in alternative currencies.

Of course, a great deal of real free-enterprise economic activity takes place between people using terrocrat fiat currency systems. See THE UNDERGROUND ECONOMY: GLOBAL EVIDENCE OF ITS SIZE AND IMPACT. According to a Los Angeles Daily News report ("Cash economy threatens wages, tax base" by Beth Barrett), "Los Angeles County's underground cash economy has exploded... Up to 28 percent of the work force in the county is paid in cash, meaning as many as one in four don't have federal and state payroll taxes withheld..."

Advantages of Alternative Currencies
(1) Most transactions are private and confidential.
(2) Transactions tend to be convenient and instantaneous.
(3) Generally, transaction costs are very low.
(4) Generally, transactions are final and can't be repudiated.
(5) In some cases such as e-gold, high degrees of automation are possible.
(6) Because of the economic advantages, individuals and businesses (whether they're pro-freedom or not) are shifting some of their economic activities and assets into the alternative-currency economy.

Shifting into the Real Free-Enterprise Sector
Probably, many freedom lovers live reasonably "comfortable" lives "in the system," working in corporations, financing the terrocrats, and so forth. If it applies to you, please consider the possibility that you live your life in such a way that your EF = 80 or 90, and your LF = 20 or 10; i.e., your Freedom Quotient (FQ) is -60 to -80. If so, you do four to nine times as much to support the "government enemy," compared to what you do to promote freedom.

Have you ever experienced a desire to "beat the system?" For example, count cards to win at blackjack? Or learn to exert a degree of control over the dice to give you a winning advantage in craps? -- see WBM#7 - The Winning Edge. Might you become interested in "beating the terrocrat system?"

You might think that what you as an individual does won't make much difference. That may or may not be true. What if you have a better chance of becoming wealthy and financially independent in the real free-enterprise sector than "in the system?" What if you can become successful in the real free-enterprise sector and persuade others to do the same? What if you could create a snowball effect?

The next thing to realize is that shifting into the real free-enterprise sector isn't an all-or-nothing issue. You can take the first step by opening an e-gold account. You can learn to use your e-gold account. You can shift into the real free-enterprise sector in small steps over an extended period. If you're good at making your money grow -- or interested in improving your skills -- check out our Private Programs. Scroll down and register as BigBooster Associate. Or go direct to http://www.bigbooster.com/plc.


"Although I have never met you personally, I consider you my friend because you have opened my eyes to new possibilities. You have embarked me on a path to freedom that I never new existed. And you have done so in a way that allows me to determine my comfort zone on achieving new levels of freedom. Although I have only contacted you a few times, I visit your website often to gain more knowledge and insight. I have been visiting your web site for about 2 years now, but I couldn't contact you because I did not have a computer of my own. You motivated me to purchase one so that I could visit your site more often (not just when I was on lunch at work). I have had the computer since last August now, and because of you I'm in the process of building my own website, and hopefully freeing myself from the doldrums of a JOB. When I say because of you, you gave me the ideas to pursue something other than the norm. Thank you for sharing your knowledge and insight." -- DS

"I have been a member of your organization for about 4 months now. During that time I have made several investments in the programs you recommend. I am ashamed to say that I had some unnecessary losses. Oh how I wish that I had followed all your recommendations. I have never complained about the losses because the other programs have allowed me to grow to a nice portfolio of about $10,000 in a mere 3œ months. I definitely owe much of that to you. I have achieved this without ever sponsoring a single individual. My goals are quite lofty as I have yet to put any profit into my pocket. I reinvest profits in additional programs to lower my risk, i.e., diversify. It would appear that I will be earning about $5,000 per month if all continues to go well by the first part of March, 2002. My plans are to take profit of $1,500 to $2,000 per month starting in March and to reinvest (about $3000 per month which increases exponentially each month) in other opportunities to continue to lower my risk. My goal is $50,000 to $100,000 per month by next year at this time." -- BF

For more testimonials, see left column of BigBooster.com.

If you're a business-person, consider adding e-gold as one of your payment systems. Many people are interested in starting their own businesses. If you're starting a business, consider using e-gold and some of the other digital currencies as payment systems. You could start a business that provides people with information on how to "beat the system." As an example, see Offshore Products and Services.

The Wining Edge
The "winning edge" concept is extremely important. For almost everything you do, it may be worth asking, "What gives me a winning edge, here?"; "What do I have to do to get a winning edge, here?"; "Is it possible to get a winning edge here, or am I wasting my time and money?"

As I indicated above, the terrocrats have rigged their game so the vast majority of freedom lovers support the terrocrats more than they promote freedom. The terrocrats have a huge winning edge. If we freedom lovers want the beat the terrocrats -- and that's what needs to happen -- what can we do to reduce their winning edge and increase our own?

One of their huge winning edges is that they tax people. Some freedom lovers clamor for tax abolition. How does their strategy give them a winning edge? Why don't they as individuals learn to "beat the taxtortionists?" Which is more pragmatic? See Fiscal Freedom.

Freedom Technology includes the practical knowledge, skills and methods to legally, elegantly and safely "unsubscribe" from terrocrat (terrorist-bureaucrats or coercive government agents) systems; the street-smart know-how to run rings around terrocrats; the ability to find freedom in an unfree world. Freedom Technology gives you a winning edge.

See also Live-Free Reports.

A number of US companies have stopped withholding, most noticeably Arrow Custom Plastics. Their website includes a growing list of other "Non W-4 Companies." However, this is a risky strategy that may not be appropriate for some.

Another approach for both businesses and individuals is proposed in Liberty Leasing: A Modest Proposal for Freedom in Our Time by L. Reichard White. At least two such companies are in existence: American Contracting Services and Contract America, Ltd. As a freedom-loving business owner, you may be able to provide your personnel the opportunity to utilize the services of one of these companies. As a freedom-loving individual working in a corporation, you may be able to persuade the bosses to let you contract through one of these companies.

Real Free-Enterprise Institutions
Laissez Faire City could become a major real free-enterprise institution. As I understand, it's in the process of creating what might be called a "sovereign infrastructure" that enables participants to interact, transact, and do business as sovereigns -- beyond the knowledge and control of terrocrats, and without supporting terrocrats. See also Laissez Faire City Times, OrlinGrabbe.com, and Home Page of J. Orlin Grabbe.

The concept of "sovereign infrastructure" is very important. Its importance can be appreciated by examining the elements of the "terrocrat infrastructure" (see also #TL07B: The Nature of Government):

  • So-called "Constitution"
  • So-called "law-making" and "law-enforcement" systems
  • Hierarchical coercive power systems
  • Government bureaucracies
  • Political parties
  • Compulsory state "education"
  • Politically controlled universities
  • Corporations in the falsely-called "private sector"
  • Politically controlled money and banking systems
  • Taxation systems
  • Military war systems
  • Politically controlled communication systems
  • Politically controlled media
  • Politically controlled transport systems
  • Politically controlled energy supply systems
  • Politically controlled health systems
  • Etc.

The alternative currencies form the beginnings of the sovereign infrastructure. They make some sovereign transactions practical for many -- and sovereign businesses for some. To the extent that the Internet can be used in a sovereign manner it's part of the sovereign infrastructure. Of course, to the extent it is used by terrocrats and in ways that support terrocrats, it's part of the terrocrat infrastructure.

The basic sovereign infrastructure idea is to create voluntary alternatives (in the sovereign sector) to the elements of the terrocrat sector wherever practical. If these alternatives provide better services at lower costs, then even people who know nothing or little about freedom (and couldn't care less) will start using them. So, even people who are not freedom-oriented can be persuaded to shift some of their assets and economic activities into the real free-enterprise sector or Build Freedom. (This is the opposite of freedom lovers having their assets and conducting their economic activities in the terrocrat sector.)

The Growth of the Real Free-Enterprise Sector

"Gold is an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist."
-- Ayn Rand, 'Atlas Shrugged'
"Electronically initiated debits and credits will become the dominant payment modes, creating the potential for private money to compete with government-issued currencies."
-- Jerry L. Jordan, President and CEO of the Federal Reserve Bank of Cleveland. January 16, 1996.

The chart below, shows the growth in the number of e-gold accounts -- an exponential growth of about 20% per month.

Open your FREE account now!

In recent months, with the advent of all the other alternative currencies, e-gold's growth has probably slowed down somewhat. But the overall growth of the "alternative-currency economy" may be continuing at around 20% per month.

Such a growth means that significant numbers of people and businesses are entering into the alternative-currency economy every month. It also means that each month the number of new entrants grows. By investigating what kinds of products and services these people might need, you can an idea of the opportunities available to entrepreneurs.

For more on the growth of the alternative-currency economy, see E-Gold and Alternative Currency FAQ and Massive Change Is Upon Us.

Potential Freedom Resources and Assets
As indicated in "Upgrading the Utilization of Freedom Resources," there are enormous potential freedom resources in the world:

  1. The brains of freedom lovers and their knowledge.
  2. The material assets owned and/or controlled by freedom lovers.
  3. The time and energy freedom lovers have available to apply their resources to expand freedom.

Currently, a large portion of these resources and assets are being applied in the so-called "private" sector to actively support the enemy public sector. If you love freedom and you're not already operating largely in the real free-enterprise sector, then I urge you to explore how you can shift more of your economic activities, resources, and assets into the real free-enterprise sector. You may discover more profitable ways of using what you control to expand freedom, rather than supporting the enemy public sector.

Right now it is appropriate for many freedom activists to reduce the degree to which they support the terrocrat enemies, by beginning to shift into the real free-enterprise sector. You can start with small steps. You can make it profitable for you to do so. If you've been spending money to promote freedom, you can turn that around -- you can start earning more money and supporting freedom at the same time.

Welcome to the real free-enterprise sector!

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