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A state that prohibits legalized theft would be economically successful.
Hugo, are you really so naive as to believe that if there was no government, things would just "work out?" Because that's pretty much what you're saying. Taxes, or "legalized theft" as you spin them, are the only things that makes a government work. Please, enlighten all of us as to how everything will turn out peachy without police to protect us.
Lock up your woman and load up the shotgun, the Libertarians are coming to town.
Economics are not as simple as you claim. Everything just doesn't start working out fine when you lower taxes. If you've ever taken a class on economic (which I assume you have) you'll know that there are a multitude of factors that affect the economy, and just lowering taxes will not always stimulate growth, nor will just generally decreasing government control. In reality, government interference can be either a good or a bad thing, depending on the situation. For example,
the Federal Reserve brought us out of recession in the 80's, not Reagan's tax cuts as some claim. In Brazil,
Socialist President Lula reduced the interest rate from like 80% per month to something like 2%. If when the government touch the economy it always leads to failure, how do you explain these instances? How about the tax cuts pushed through by both Bushes did nothing to help the economy during their respective Presidencies?
I wish the "lower taxes = higher growth" myth were true. It would make economics a lot easier. But in reality, nothing is that simple. The economy is one of the most complex systems in existence, and dumbing it down to saying "if the government does less, the economy will perform better," is an insult to economists. Of the multitude of factors the affect the economy, taxes and government control is only one, and both can affect the economy positively, negatively or not at all, depending on the situation. It's foolish to think otherwise.
You're just as idealistic as even the most burnt-out hippie liberal. Why don't you just come over to our side? Over here, we actually have a voice outside of internet forums

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The welfare bums would scrape up the money to move somewhere that they could continue their lifestyle.
And you know this how? How do you know they wouldn't just starve, along with their children? If an American city ended up looking like Somolia, I doubt that state's government would last past the next election, regardless of whether they have Ayn Rand's face tattooed on their butt or not.
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I am talking about democratically elected officials imposing freedom on the citizen's of it's states.
Imposing freedom? Now that’s a classic. If I ever write a book about Libertarians, that’s what I’m going to call it.