Libertarianism is a theory of politics that is so compelling that once you have absorbed it, it becomes the lens through which you end up understanding all economic and political events.

In education, it is said that the state must impose schooling on all children, else the parents and communities will neglect it. Only the state can make sure that no child is left behind. The only question is the means: will we use the union and bureaucracies favored by the left, or the market incentives and vouchers favored by the right. I don't want to get into a debate about which means is better, but only to draw attention to the reality that these are both forms of planning that compromise the freedom of families to manage their own affairs.

The leviathan state, that monster devouring civilization in this century, is in the throes of death. This is not a wish or a prediction, but a conclusion drawn from a broad look at the trends of the last decade and a half, which, if we take the right steps, can continue on into the next century. What has happened around the world - nations states collapsing, markets outwitting planners, citizens rising up against government masters - can and is happening here at home.

Never forget that no government has wealth of its own to spend. The money has to come from taxation, monetary inflation, or debt expansion that must be paid later. And government's spending choices will always be uneconomic relative to how society would use that wealth. That is to say, the money will be wasted.

Subsidies create more of whatever is being subsidized.

Wealth is not a given or an accident of history. It is not bestowed on us like rain from above. It is the product of human creativity in an environment of freedom. The freedom to own, to make contracts, to save, to invest, to associate, and to trade: these are the key to prosperity.

It's not as if socialism is a new idea. It was tried in the 20th century. It produced economic stagnation and despair. In its purest form, it extinguished more than one hundred million people.