Thursday, July 19, 2007

Nonsense in the News

From time to time I'm going to try to summarize a few of the many outrageous property rights violations and restrictions of freedom that appear in the news. It shouldn't be hard to find material. Up this week:




  • Bolivia's president Evo Morales wants to ban used clothes. Used clothes get sold around the world, and many wind up in El Alto, Bolivia. Bolivia is the second-poorest country in the western hemisphere, and many of the poor (mainly indigenous) people scour vendors' stock for 25-cent t-shirts and 63-cent sweaters. Low-cost clothes are important to the poor, of course, because it frees up their remaining meager income for other vital needs - you know, food, shelter, that sort of thing. Evo Morales, however, has decided that it's not "dignified" for the poor to wear used clothes, so he intends to ban them in order to force the poorest people in North or South America to buy higher-priced new clothes (made in Bolivia, of course). Evo is the first indigenous president of Bolivia, who claims that his entire presidency is dedicated to helping the poor. How he can claim to be helping the poor while literally stealing the clothes off their backs is beyond me. (See my blog entry "Latin America's Lurch Left" for more of the same type of "thinking"). http://www.usatoday.com/money/world/2007-07-17-bolivia-clothing_N.htm

  • The US Senate is considering raising the tax on cigars from the current 4.8 cents per stick to $10 per stick - a 20,000% increase. The excuse for the increase is that the money is needed to fund health insurance for underprivileged kids - you can always get votes for kids, after all. Typically, government creates an obligation it had no business creating in the first place, and then pleads poverty for fulfilling the obligation. The reality of course is that the government just wants more money, and feels that they can take it from you whenever they want. Exactly 0% of the tax will wind up helping sick kids. Smokers are an easy target, because no one likes them anyway. If this passes, it will be cheaper to smoke crack. http://www.sptimes.com/2007/07/17/Business/Cigarmakers_in_a_pani.shtml

Tuesday, July 17, 2007

As Harry Browne Once Said, Government Doesn't Work

There are two basic problems that all government programs face. The first is a problem of efficiency; the second is one of morality.

The problem of efficiency has to do with the fundamental problem of central planning. This was best described by Friedrich Hayek in his many works. In short, government programs are inherently worse than free-market solutions because of the nature of information in a complex society. No matter how many smart people happen to be grouped in a government agency, they will never be able to devise a central plan that is as efficient or successful as the solutions devised by the millions of interactions that occur spontaneously in the free market. This is simply due to the fact that the free market solution will naturally draw from the diffuse knowledge of needs, desires, and conditions that is held locally by all of the millions (or even billions) of people in the marketplace. No individual or small group will possibly be able to access the same information held by the entire free market as a whole. Much of this information is geared naturally toward local conditions, concerns, desires, needs, etc., which cannot possibly be known by a centralized agency, whether it be in Washington or Brussels.

Although many people will concede that government programs are often inefficient and fall short of their stated goals, they still cling to the belief that this issue can be corrected if they just elect the right people or try to tinker with the procedures a bit. Unfortunately, the system cannot deliver an efficient outcome because it is inherently inferior to the free market. No amount of fine-tuning will overcome this basic fact. While full-blown, Soviet-style central planning has fortunately been relegated to the dustbin of history, smaller-scale central planning is still alive and well in every country on the planet.

The second problem inherent in any government program is that it is based ultimately on the threat of violence. As that subversive rebel George Washington said, “Government is not reason. It is not eloquence. It is force.” The moral superiority of free-market solutions rests in its use of free association, rather than coercion to achieve complex ends. Government-imposed programs, on the other hand, force people to behave in certain ways that may or may not be in their best interests or in line with their own personal choices. It’s always a one-size-fits all solution, as opposed to the customer-is-always-right solution that occurs naturally in the free market.

Thinking about it now, I can’t believe I didn’t put all of this together on my own. I mean, I always knew that if I didn’t pay my taxes, I’d go to jail, but I never took it beyond that. I never considered the link between the police power and all government programs.The libertarian concept of non-aggression comes into play here, in contrast to coercion. The basic libertarian principle is that all human relationships should be voluntary, or that you should be free from aggression against your life, liberty, or property as long as you do not initiate violence against anyone else (live and let live, extended to absolutely everything). This is based on the natural rights philosophy espoused by John Locke (which itself formed the basis of our government through the ideals expressed in the Declaration of Independence and the Constitution).

Natural rights are those rights that we have by virtue of our very humanity - the unalienable rights that we have in a state of nature (life, liberty, and property). We only form government because we find it more convenient to "outsource" the securing and protection of those rights, and in so doing we merely delegate to the government the authority to secure the rights we ourselves possess. Thus it is impossible to delegate to government a power that we do not possess as individuals.

Government-mandated wealth transfer programs, on the other hand, are all predicated on the concept of taking money (via government coercion) from one group of people to give to another group of people. This is illegitimate because we as individuals do not have the right to do the same in a state of nature. That is, I have no right to force you to give me money, either for myself or so that I can then turn around and give it to someone else. This is where "positive rights” come into the picture. A positive right is the right "to something," like education, a certain wage, medical care, etc. The problem is that positive rights impose a contractual obligation on others to provide you with something, regardless of whether they consent to it or not.

Now, keep this in mind the next time you hear someone advocating yet another government "solution" to some perceived problem – poverty, foreign aid, stem cell research, or anything else for that matter. The knee-jerk reaction is to say that there's nothing wrong in asking people to chip in to help others. And of course, that's true. The problem, though, is that the government doesn't ask. It forces through the threat of jail or worse. And there's a big difference in asking someone to do something and sticking a gun to their head and making them do it. By turning to the state to achieve a given end, all you’ve really done is outsource the gun.

Now, the typical response will be something along the lines of "we all voted for it" in some indirect way. However, that's a) not true - when was the last time you or I were asked to vote on whether or not we wanted to pay confiscatory taxes?, and b) irrelevant, because simply voting on something does not bestow legitimacy. For example, if two robbers break into a house to steal a television set, and the owner objects, they might put it to a vote - still wouldn't make it right to steal the TV. Same applies here - morality is not determined by majority.

Personally, I would be happy to pay taxes that were limited to support of “legitimate” government programs. For the sake of simplicity, let’s assume that “legitimate” refers to any of the limited powers outlined in the Constitution. The Constitution provides the federal government with enumerated powers. That is, the federal government is empowered to carry out only those functions specifically listed in the Constitution. All other powers are reserved to the states, or to the people. Therefore, some of the legitimate functions of the federal government would include maintaining the military, coining money, running the Patent Office, running the court system, and passing laws (plus a few others). Now here’s a question – what percentage of the 2.7 trillion dollar budget goes to fund these functions vs. other activities which the government has no right to do in the first place? Where in that list of enumerated, limited powers, is the Corporation for Public Broadcasting, US AID, Department of Education, Department of Housing and Urban Development, the FDA, or any of the thousands of government programs that have come to regulate just about every facet of American society?

Just about everyone has a complaint about government bureaucracy and inefficiency, but take it a step further. How are these programs funded? By taxpayer dollars. How does the government get taxpayer dollars? By the use of force alone. Would you give 40% of your income to the government if you weren’t required to by law? Of course not. But that’s the only way these programs can be funded. Through coercion. This point is crucial, because once you understand it fully, you will begin to see government overreach in an entirely new light.

Last year I read an article about how Alec Baldwin led a group of actors to Capitol Hill to lobby for increased funding for the National Endowment of the Arts. Think about that in light of the coercive power of government. In essence, Alec Baldwin is lobbying Congress to take money by force from one group of citizens (taxpayers) and turn it over to another group of citizens ("artists"). That is, he's advocating the use of violence against his fellow citizens to force them to fund things like independent movies and off-Broadway plays. How can this possibly be justified? Would anyone really advocate putting a gun to someone else’s head and forcing that person to fund an off-Broadway version of Hairspray? Alec would never put it in those words, of course, but that’s the net of it nevertheless.

Keep this in mind the next time someone (usually a leftie, but not always) tries to convince you that they’re morally superior or altruistic by proposing additional government programs (and higher taxes as a result) to address some perceived social injustice or to do some good deed. It is important to understand that only individuals can be altruistic. The government by definition cannot be altruistic, because it has no money of its own. The only money the government has is that which it takes from its citizens by use of the police power. Think about it this way: I donate my own money to charity, I’m altruistic. If, on the other hand, I steal money from you and then donate it to that same charity, I can hardly be considered altruistic, right?

Nothing about that changes just because a group of individuals known as “the government” are the ones doing the taking. Aside from the moral issues involved, you can bet that the very request for government funding means the project is a loser on its merits. If it weren’t then you wouldn’t need the government to force citizens to pay for it – they’d just buy it voluntarily in the free market.

At the end of the day, government as a concept is faced with a fundamental contradiction. People are either generally rotten or generally decent (with everything in between reflected in various individuals). If you believe that people are generally bad, then why would you want these bad people to be in positions of power within the organization that claims monopoly use of violence in a society? People who hold this view are basically saying they want a group of people who are generally evil to force us all into doing good things that we wouldn’t otherwise do. If, on the other hand, you believe people are fundamentally decent, then there is obviously little need to form a government to make people do good things – they will simply do them on their own.

Latin America's Lurch Left

I'm pretty sure Latin America is doomed. I guess I've always known this at some level, and recent political events in South America certainly haven't done anything to change my mind on the subject. The difference is that now I have a framework to understand why this is so. Hint: it has something to do with government involvement.

Just for the sake of providing some background information, the bulk of my job involves Latin America, particularly Brazil and Mexico, and my wife is Bolivian. As a result, I usually stay pretty up-to-date with developments south of the border, and I tend to care about it on a personal level, given the fact that I have family living there. And I can't help being frustrated with the level of poverty that persists, and the idiotic recommendations that come from politicians and NGOs allegedly aimed at fixing the problems.

The reality is that Latin Americans work incredibly hard (much harder than I've ever worked, that's for sure), but they do so entirely within socialist political structures of varying degrees. As a result, the bulk of the region is locked in a Sisyphean struggle to improve the standard of living from within a political system that by its very nature strangles productivity and the improvements it could provide. Socialism by definition introduces no end of government-sponsored distortions into every facet of the economy.

A particular area of government interference in Latin America occurs within the labor market. These misguided policies prevent individuals from entering into voluntary work agreements as they might like, which makes it more difficult for companies to hire people in the first place (much like France). The minimum wage is an example of this kind of distortion. In Brazil, unemployment remains high (roughly 11.5% by official statistics). With an illiteracy rate of roughly 14%, is it really that hard to understand that it may be difficult for this sector of the labor pool to have productivity levels that exceed the minimum wage barrier?

Nevertheless, Brazilian labor is still relatively cheaper than capital goods. Why? Because the Brazilian government punishes the importation of capital goods through trade barriers. These capital goods would improve productivity, which would in turn raise the standard of living. However, the Brazilian government likes to take the Luddite approach, hindering productivity growth by throwing up barriers to technology in the mistaken notion that this will protect jobs (even though this theory has been proved wrong throughout history). Although technology certainly disrupts individual industries for some period, improvements in productivity always increase overall demand for labor over time. The increased productivity from technological advancements drives down cost, which increases demand for production, which increases the overall demand for labor in turn. Not to mention the standard of living improvements that result from the availability of cheaper goods and services.

Another aspect of socialist interference holding down the standard of living in Latin America is state-run industry, like Petrobras, the Brazilian oil company. I had an interesting discussion with a Brazilian friend of mine the other day about this topic. He mentioned how great it was that Brazil was now self-sufficient with regard to oil production. I found that statement interesting, given what I know about comparative advantage. As we talked a bit further, he explained that Brazilians pay over $4 a gallon for gas, even though they do not import a single barrel of oil. I had to bite my tongue as we spoke, because this of course is a completely predictable result of pursuing self-sufficiency via a state-run company, instead of pursuing comparative advantage in a capitalist model. Nevertheless, I explained to him that even with the supply constraints we're currently dealing with these days, the United States is still better off buying oil on the global commodity market. This ensures that we get the lowest price from the most efficient producers. Brazil, on the other hand, uses taxpayer money to fund a state-run company that restricts its exploration to the Brazilian territory, particularly the very deep offshore fields that are expensive to drill.

By the way, how efficient do you think the world's state-run oil companies are? About as efficient as Amtrak? That may explain in part why global supplies of oil are restricted, don't you think? Again, this is not surprising, since state-run companies are not driven by the profit motive, but rather by other non-price political considerations that must reduce efficiency and competitiveness. The real tragedy of this entire set-up is completely lost on most of my Latin American friends, who merely take this for granted. But think about it for a second - the Brazilian government takes money (by force) from the Brazilian taxpayers. It then uses that money to finance Petrobras, which then sells oil and gasoline to the Brazilian people at above-market prices. Petrobras made a record profit of USD $10 billion in 2005. (They did not distribute that profit back to the taxpayers, though).

These are just anecdotal examples, of course, but the real tragedy is that there is never any serious consideration given to laissez-faire capitalism, which would actually alleviate the problems of poverty in Latin America. Quite the opposite, in fact. All you hear from the politicians or NGOs in the area are additional recommendations for more government involvement, intervention, and meddling in the market. Even so-called conservative governments in Latin America accept the idea of government intervention to roughly the same degree, although perhaps in slightly different ways. The leftists simply rail against the failures of neo-liberal policies. This completely misses the point, of course. Latin America doesn't need neo-liberal policies, it needs classical liberal policies. The failure of neoliberalism in the region was not due to any inherent faults in laissez-faire capitalism. Instead, they reflect the failures that must necessarily result from socialist meddling in the economy. For example, it does no good to privatize a given state-run industry if the government continues to restrict competition in the industry. That's just exchanging a government monopoly for a private monopoly. (Private monopoly can only exist with the support of government policies, of course, and would not be an issue in a free-market economy).

Unfortunately, I don't see any chance of improvement in Latin America any time soon. The region is in one of its cyclical left-wing lurches, and the usual failed policies are being touted yet again. In Bolivia, for example, there's talk of "land reform." This is just a euphemism for "land theft." It's been done before, and it's failed, of course. Worse, it reinforces the disregard for property rights that are indispensable for freedom and the economic benefits that would result.

On the lighter side, Bolivia's president, Evo Morales, nationalized the assets of Petrobras in Bolivia. I mean, you've got to see the humor in one socialist country stealing the assets of another socialist country. Morales was generous enough to reassure Brazil that Bolivia would continue to sell them the natural gas that is produced with their stolen assets. I guess that's the least he could do, given the fact that Petrobras was the single largest employer in Bolivia. So maybe there's hope yet that the apparent left-wing lunacy currently sweeping the South American continent is not as unified as Castro, Chavez, Morales, et al would like us to believe. For now, though, I guess everyone will just have to laugh to keep from crying.

Economic Illiteracy

I think I’m beginning to understand why libertarians don’t do very well politically. It’s not just the extremes to which the logic of personal freedom can take you. It’s having to overcome the massive economic illiteracy that’s constantly being drummed into people on a daily basis. The level of ignorance is truly astounding, as well as the degree to which people will accept ever-increasing government control over their lives. Maybe this is because (like me, until recently) people don’t understand the coercive aspect of government power, or maybe they don’t realize that every government intervention and regulation, no matter how seemingly inconsequential, is an infringement on our liberty. But soft-core socialism is spilled out over the airwaves incessantly, and it’s clearly having an impact on most people’s “thinking.”

Coming to libertarianism from the right, I’m naturally more attuned to this kind of drivel when it comes from the left. But I realized that it’s not the issues raised that bother me – it’s the solutions that are recommended. Why is it that every single social ill (real or perceived) is instantly followed by a call for greater government intervention? Never is there any mention of advocacy simply for the sake of educating people to make their own decisions. Instead, the recommendation is always the same – greater government control over the lives of individuals. Take Morgan Spurlock for example. For those of you who don’t know who Morgan Spurlock is, consider yourselves lucky – it won’t last. He’s the director of “Supersize Me,” and he’s clearly determined to become the next Michael Moore.

Spurlock’s latest crusade is the minimum wage. A few months ago he appeared on Oprah (I came home early and my wife was already watching it, I swear!). The topic of the day was how hard life is when you’re making minimum wage. The solution? What else? Have the federal government raise the minimum wage.

This was particularly aggravating because Oprah recently featured a series on debt reduction by David Bach which was excellent. The Debt Diet stresses the steps that individuals can take to get themselves out of debt and improve their financial lives. It involved no calls for taxpayer-funded bailouts, no suggestions that it would be a great idea if Congress just declared all outstanding consumer debt null and void, nothing. Just taking personal responsibility for your finances and identifying reasonable steps that you can take to help yourself. None of the same kind of thinking was evident when it came to the minimum wage segment, of course.

Instead, what we got was a panel consisting of Oprah, Spurlock and his fiancée, and Beth Shulman. Beth Shulman is the former vice president of the United Food and Commercial Workers Union and author of the book The Betrayal of Work: How Low-Wage Jobs Fail 30 Million Americans.

For those readers with any understanding of economics whatsoever it will come as no surprise that a former union boss is advocating a minimum wage hike. Why? Because the minimum wage was originally and still is pitched by unions as a way of keeping unskilled workers unemployed. Unions generally protect skilled workers who make more than the minimum wage. By increasing the price of unskilled labor through legislation, they are able to reduce the competition for their own jobs, of course.

As you can guess, the show was filled with heart wrenching stories about hardworking families just struggling to get by. I don’t want to minimize the difficulties these people are facing – far from it. I understand that they are facing serious struggles every day. But does that justify using the coercive power of the government to violate everyone’s right to contract? Keep in mind, the only recommendations made were the following:

  • First, citizens should urge Congress and the Senate to approve an increase in the federal minimum wage, Beth says. Some states—such as Illinois, Florida, Hawaii and California—have already passed laws to raise their minimum wage above the federal rate of $5.15.
  • Second, employers should ensure that every American has health insurance, Beth says. She also points out that 75 percent of all low-wage workers do not get any paid vacation or sick days per year. "They have to choose between taking care of a sick child … and losing their job," she says.

To quote Beth Shulman, "We can make choices about what kind of America we want," she says. "We need to ensure people have a living wage and health benefits and time off to be with their families." Now I agree that we can make choices about what kind of America we want, but how many of us would argue for an America where the federal government’s coercive policies increase unemployment and trap even more people in the welfare state? Because make no mistake, that is what happens every time the minimum wage is raised.

This isn’t just me railing against some more leftie nonsense. The simple fact is, the minimum wage is not a floor that lifts everyone up – it’s a hurdle that everyone who wants a job must jump over. If you want to get hired at say, $15/hour, you have to provide more than $15 worth of productivity per hour. If you can’t, you will not be hired for that position. This very basic economic fact is true at all pay levels. By raising the minimum wage to $7.25/hour (as proposed by the minimum wage organizations referenced on the show and recently enacted by Congress), all that will happen is that those who cannot produce more than $7.25/hr will be out of a job. The simple economic reality is that not all jobs are worth $7.25/hour – some are worth more, some less. Those jobs that are worth less do not instantly become more valuable just because the government has raised the minimum wage. They will become nonexistent.

And getting the government to force employers to provide health care to all employees will also raise the cost of providing jobs, and ensure that employers are able to provide fewer of them. In Spurlock’s case, after his experiment with the world of minimum wage, he decided to go back and immediately offer health benefits for all his employees. Good for him. I applaud Mr. Spurlock’s VOLUNTARY decision to offer health benefits to his employees. However, I can’t support using the coercive power of the government to force a “one-size-fits-all” solution on all employers.

Spurlock’s closing statement on the Oprah show was that minimum wage conditions were unacceptable in this country. After all, he said, “we’re the land of the free.” Well, if Mr. Spurlock is right, and this is still the land of the free, I don’t see how making it less free by violating individuals’ right to contract will help. And that’s exactly what happens with a government-mandated minimum wage.

Let’s say, for example, that I’d like to have someone mow my lawn for me. To me, that job is worth $20. Anything higher than $20, and it’s no longer worth it for me to hire someone to mow it – I’ll just do it myself. Now let’s say that you’d be willing to mow my lawn for $20. Why should the government be able to tell us that we cannot enter into this voluntary agreement? If the government tells me that I am not allowed to pay a penny less than $25 to have my lawn mowed (under threat of fines or maybe even jail time), what will happen? I’ll just do it myself, or have it mowed less often. Either way, you’re not getting the job, even though you’d be perfectly willing to accept less. That’s an infringement on both of our liberties, via government coercion.

And if it’s simply a question of mandating a higher price for wages, why be stingy and stop at $7.25 per hour? Why not $20? Or $100? Because the reality is that not all jobs are worth the same, and the law of supply and demand applies to wages, too. Anytime the government uses controls to price a given item above its market price, there will be a surplus of that item. The same applies to wages – if the market price for labor is $5/hour, and the government raises the cost to at least $7.25/hour, then the demand for labor will drop, resulting in higher unemployment.

This is not to minimize the very real problems faced by the hardworking people profiled on the show. But the reality is that we all have to develop the kinds of skills that make us employable at a living wage. It cannot simply be mandated by legislation. Although the proponents of a higher minimum wage don’t say it explicitly, underlying their entire argument is the idea that you should be able to raise any number of people doing anything whatsoever. Why is it that they always refer to a “family of four?” What’s so special about the number four anyway? Why not demand the right to support a family of 15 with a job serving popcorn at the movie theater? Believe me, if I could do that, I would. It’s probably a lot less stressful than my current job! I believe that the reason these things are not stated explicitly is that it would connect the dots too easily for the masses, who would quickly realize the simple truth that all jobs are not created equally. It would also highlight the ridiculous extremes that the entire concept of positive rights will take you. A positive right is the right “to something,” which implies a contractual obligation on someone. In this instance, a right to a living wage begs the question, “From whom?” The higher minimum wage they demand doesn’t come out of thin air, and doesn’t come without significant consequences.

Naturally, the minimum wage debate is not the only economic illiteracy on display recently. Other examples include the recent riots in France (unemployed young people protesting a change in the law that will help them get jobs), calls for “windfall” taxes on oil companies (ensuring that companies provide less gas precisely when prices are rising), and the never-ending nationalization schemes running rampant through Latin America right now (ensuring that Latin American economies remain stagnant for the foreseeable future).

I guess the only thing we can do is work to get the word out. Maybe I should start a blog…

First Principles

One of the things that attracted me to libertarianism in the first place is the fact that there is a coherent philosophy underpinning it. I’d like to go into that aspect in a bit more detail here, but in doing so, I make no claim to being any kind of expert. I’m merely describing the philosophy as I understand it at this point in my studies, and trying to explain why this system makes the most sense for me.

Libertarianism is based on the non-aggression axiom. Libertarians do not support the use of unprovoked force against others. One might wonder why this is important in a political sense. Well, one reason is that all human society is dependent on social cooperation and the division of labor in order to flourish, or even to survive. If you doubt this, take a moment to think about how long you’d last if all of a sudden you had to live a subsistence lifestyle – from obtaining land and materials to build your house to working in the field or hunting to provide all of the food for you and your family, all the while defending your property from those who would deprive you of it. The modern economy is simply too complex for this kind of autarkic lifestyle, and the best way to ensure the social cooperation that is so necessary to modern life is through voluntary peaceful exchange, rather than through the use of force.

So far, so good, you say. After all, you don't push anyone around and force them to do what you want, so what does all this coercion nonsense have to do with government? Well, as George Washington said, "Government is not reason, nor eloquence. It is force. And like fire, it is a dangerous servant and a fearsome master." And he was not just throwing out a sound bite for the cameras, either. The reality is that everything government does, it does by coercion. All government programs are funded by taxation, which is the forced extraction of wealth from the citizens under the threat of violence.

Libertarians believe that initiating force is wrong, and it doesn't matter who does it. If you pull a gun on someone and say, "Hand over your money or else," you're stealing. If you and 51% of the voting public get together and have people calling themselves "the government" pull guns on people, it's still theft. Majority rule doesn't matter for some things. Just because you outsource the gun to the government via the democratic process does not mean that the gun disappears.

The libertarian positions on issues all flow from the non-aggression axiom, but it is important to understand that libertarianism is not meant to be an all-encompassing theory of morality. It does not prescribe those actions that an individual should take in order to be a virtuous person. Instead, it is limited to defining what just law should be. A libertarian, or truly free, society would allow any number of interactions to occur that might be considered bad, unfair, or stupid as long as they were entered into voluntarily and not through coercion.

Illegal drugs are an example of this. We may not like the fact that individuals take drugs and deep-fry their brain cells, but in a libertarian framework, the government would not treat these things as criminal acts. Although we may feel that a certain behavior is thoroughly immoral from a personal ethics standpoint, it would not be illegal because it is ultimately a voluntary act. The coercive power of the government would not be brought to bear against the person in this instance, because that would be an act of aggression against someone who had not first initiated aggression against another.

This is an important distinction to understand. Some libertarian positions are controversial principally because people confuse a libertarian’s unwillingness to criminalize certain acts with approval of those acts. However, the libertarian position stems not from the act per se, but rather from the response to the act. Ultimately, we’re just defining when the use of force against others is justified. Within a free society, I would be justified in using force against you only if you initiate force against me. In the absence of any coercion on your part, I am not justified in using force to stop you from doing whatever you want – even if I think what you’re doing is immoral or stupid. This does not imply that I approve of anything and everything (far from it), but in a free society I would not be able to turn to the state to force you stop. Instead, I would have to rely on my skills of persuasion to convince you to stop voluntarily. You, naturally, would have the freedom to agree or disagree with me, and make your own decisions.

Some criticisms of libertarianism are certainly valid, particularly with regard to “getting there from here.” Rolling back the size of the government to its constitutional limits is no small feat, and I think there’s a real question as to whether or not Americans really want freedom any more. As a society, we’re a long way from “give me liberty or give me death.” Now we turn to the federal government as a first, rather than last, resort to address all sorts of perceived ills, thus increasing the government’s involvement in our lives at every turn.

However, I’ve read a lot of criticism of libertarianism in the blogosphere that is based on a complete misunderstanding of its basic principles. Most of this, of course, comes from left-wingers who think that freedom is somehow cruel and heartless. Nothing could be further from the truth, of course. Properly understood, a free society will lead to improvements in the standard of living for all sectors of society. I mean actual, verifiable, tangible improvements - as opposed to the myriad programs in existence today that have nothing but “good intentions” to show for the billions of taxpayer dollars that have been wasted. How much better off would you be if the government didn't take 40% of your income to fund wasteful, ineffective, and unconstitutional nanny-state programs in the first place?

One of the most amusing criticisms I read involved the problem of the commons. Some lib writing a blog referred to this issue as an illustration that “libertarians won’t share.” What was funny about this is that he completely botches the moral of the story. In fact, the problem of the commons is one of too much sharing. When resources are held in common, there is no incentive for anyone to preserve the resource. Instead, common ownership leads to its destruction. This is why libertarians advocate private property as the best way to preserve resources. It’s a realistic approach to managing scarcity while preserving peaceful cooperation among people.

But the very fact that he made this ridiculous error is indicative of another problem with libertarianism. The problem is that libertarianism requires a basic level of understanding of political theory, economics, and human nature. This is not too difficult to grasp, of course, but the level of ignorance that must be overcome is truly staggering. Of course, if it were easy, we wouldn’t be having this discussion.

Recommended Reading















Here is a list of some of the titles that have kept me entertained lately, and I highly recommend them to anyone interested in libertarianism, natural rights, limited government, or free-market economics:

Recovering Republican

I'm not sure exactly what set me off, but over the past few years I’ve come to a crossroads in my political philosophy. Or maybe I just realized that what I thought was a philosophy was really just a grab-bag of issue positions. But suffice it to say that I’ve been seriously disappointed with the Republican party’s performance over the past several years. Given that the GOP had until recently held all three branches of government, I had expected them to advance what I considered basic conservative values of limited government and fiscal restraint.

Instead, what we got was increased spending across the board, resulting in a federal budget of 2.7 trillion dollars (a sum far beyond any human being’s capacity to comprehend), and a Congress that believes its paramount concerns are steroid use in baseball and raising taxes on cigars to $10 a stick. When you've got an allegedly conservative president that says, “When someone hurts, government has to move,” you know you’re in trouble.

So what’s a frustrated Reagan Republican to do? Well, if you’re like me, you immerse yourself in libertarian theory. Apparently, there’s a pretty standard syllabus that most libertarians fall into, which includes John Locke, Ayn Rand, F.A. Hayek, Ludwig Von Mises, Murray Rothbard, and others. That’s basically what I’ve been doing non-stop for the past two years. I have to admit that there’s a lot to like, but I do wonder how far I can run with it.

On the one hand, libertarianism seems closer to my own personal definition of “conservative.” I remember discussing politics with one of my liberal friends in Colorado and saying that in my view, “Conservatism just means that you want the government to work the way the government was designed to work.” I never really thought of modern conservative social issues as my reason for being a Republican. I always considered myself as a small-government conservative instead. Yet there was something that bothered me about the Republicans that I just couldn’t put my finger on. After reading David Boaz’s Libertarianism: A Primer, I realized what it was - to many Republicans, “limited government” just means “tax cuts.”

Don’t get me wrong, I love tax cuts – the deeper the cut, the better. Anything that lets me keep more of my money is a good thing, as far as I’m concerned – it’s hard enough to make ends meet as it is. And besides, a tax cut just means that Washington has that much less to spend (directly, at least) on wasteful, inefficient, and unconstitutional programs.

In my view, however, limited government means just that – the idea that the government is limited in what is allowed to do. To get an idea of just how far the train has gotten off the track, just read The Federalist Papers. In each chapter, the founders refute the critics of the proposed Constitution. Most of the criticisms involved how the federal government would be able to exceed its bounds and become tyrannical. The founders’ response was basically, “Don’t worry, we’ve got that covered – the checks and balances we’ve put in are bullet-proof, so that’ll never happen.” And just about every conceivable tyrannical act that the critics of the Constitution could imagine then is part of our everyday lives now.

An even greater problem is that government involvement has become so ubiquitous in our daily lives that I’m afraid that we’re not even aware of it anymore - but there’s no question that the founders would regard today’s level of government meddling as nothing short of tyrannical. This is one of the things that attracted me to libertarianism. It proposes limited government in the true sense of the term.

On the other hand, I’m still wrestling with a few things, such as the minarchy/anarchy debate and the pragmatic issues of propagating libertarian ideas. Libertarians are an odd mix of self-confidence and pessimism, which in my opinion makes for some interesting discussions. But more on those issues later...

Welcome

Welcome to A Beginner's Guide to Freedom. Through this blog, I hope to discuss a wide range of topics from a libertarian perspective. The title reflects the fact that I am fairly new to libertarianism myself, and do not claim to be any kind of expert. If you're interested in the experts' views on the issues, check out some of the links on the left-hand side of this blog. If you're interested in taking it slow and looking at things from a layman's libertarian perspective, then by all means read on and enjoy my brief essays (or hate them - comments are welcome either way).
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