Florentine Liberty II: Guicciardini, Dialogue on the Government of Florence (Expanding the Liberty Canon series)

Francesco Guicciardini (1483-1540) was born and died in Florence which already had a long history as a literary and cultural centre, and as a centre of commercial life. Guicciardini came from an aristocratic family which provided an outstanding education that included study with the great Platonist philosopher Marsilio Ficino. Guicciardini had a life of state service, which took him to Spain as an ambassador as well as working within Florence and the dependent city of Bologna. He also worked for the Papacy in a political and military capacity at a time when the Vatican was the centre of one of the major Italian states, which was also at a time of political fragmentation in Italy and of foreign interventions from France, Germany, and Spain. The Papal States centred on Rome and Florence were therefore major states within Italian politics, not just cities. In the end Spanish domination overwhelmed them all, but Guicciardini seems more concerned with the danger of French domination.

The Florentine politics of the time goes through a series of shifts between secular republic, religious republic, and Medici dominated principality, which Machiavelli also participated in and commented on in writing. Indeed Guicciaridini and Machiavelli were friends, but their versions of republicanism were not identical. Machiavelli placed Rome first among the great republics of antiquity, with particular reference to the benefits of political competition, particularly between aristocracy and common people, for liberty and patriotic spirit.

Guicciardini also refers to Rome, but with less enthusiasm for the role of the common people and political conflict. He denies that the existence of two consuls sharing the supreme leadership role was evidence of a wish to stimulate political competition, but instead argues that it was a practical adoption to war time so that one consul could direct armies in the field while the other directed government business back in Rome. It was a not a scheme to limit individual power and any political competition between the two consuls was an unexpected and undesirable outcome, weakening rather than strengthening the republic. He applied a similar analysis to the double kings of ancient Sparta, who had a largely military role.

Guicciardini refers briefly but significantly to Plato indicating his preference for an ideal of order over an ideal of competition, for rational hierarchy over plebeian street politics. He does not follow anything like the strict enforcement of virtue and rule of the ‘wise’ advocated by Plato, but evidently finds that a preferable orientation to the liberty to challenge existing order. The detail Guicciardini provides of Florentine political history shows a drama of constant change and challenge, disorder and revolution, which might confirm Plato’s fears of democratic liberty, but also suggest the difficulties of applying Plato’s ideals to reality, particularly in a commercial world with a growing civil society.

Accordingly Guicciarini’s main source of inspiration was the Republic of Venice, which already had a history stretching back to the eighth century, and with claims to have its origins in Roman antiquity, in rather legendary stories of refugees from barbarian invasion seeking sanctuary in the marshes of that area. Venice was to survive as a  republic until 1797, when it was abolished by Napoleon. At its peak its territory stretched well down the Balkan coast of the Adriatic and was a major, if not the major naval and trading power in the eastern Mediterranean, so it did serve as a modern example of a powerful republic and the possibility of republican government in a largely monarchical world.

Another advantage of Venice from Guicciardini’s point of view was that it was a definitely aristocratic rather than democratic republic. There was an elective prince for life, the Doge, appointed by the aristocratic citizens of the city and ruling in cooperation with aristocratic councils. Fifteenth century scholars in Italy suggested that the constitution of Venice corresponded with Plato’s vision of a republic in the Laws, largely based on Sparta (where power was focused on the thirty man gerousia and five ephors rather than the citizens’ assembly itself based on a very restrictive definition of citizenship. This is Plato’s vision of a state that might exist in reality as opposed to the philosophical ideal proposed in the Republic. The great merchant and commercial wealth of Venice would have been disturbing for the Spartans and for Plato though, providing another example of the limits as well as real relevance of ancient republics for the modern world.

So Guicciardini is less ‘Florentine-Roman’ (democratic) and more Venetian-Spartan (aristocratic) than Machiavelli, but nevertheless he accepts that the poor have to be given some role in politics and that even if the poor are outside political citizenship at times, once a crisis brings them into politics it is very difficult to reverse that situation. The solution for Guicciardini is to allow the poor citizenship and some rights, in city assemblies, while excluding them from the highest offices of state. The high offices should be reserved to the aristocracy, with the highest offices to be held on a long-term, possibly even lifetime basis. The concern is to provide more stability and civic strength than Guicciardini believes is possible from the political activities of the poorly educated and unpropertied masses.

Guicciardini’s belief in liberty through the dominance of a responsible republic elite anticipates later ideas of thinking about liberty on the basis of conservative institutions for preserving order and property as preferable to democratic institutions and political contestation. Any thought about liberty is likely to have some element of this, some ideas about institutionalising property rights and legal stability, against the dangers of irresponsible temporary majorities. Whether a complete dominance of such institutions, with the risk of undermining them through overburdening them, is desirable or practicable is a matter of debate. Machiavelli and Guicciardini present a compelling classic Florentine compare and contrast on such issues.

Myths about Islam’s founder (Mohammed, Muhammad, tomato, tomato)

I’ve been slowly reading through Albert Hourani’s A History of the Arab Peoples and one of the things that has stood out to me is the fact that Muhammad was not a “war chief.” The War Chief Thesis is nothing more than a vulgar urban myth perpetuated by the ignorant or the nefarious.

Muhammad was a merchant and used his influence as a con man – oops! I mean religious leader – to become a trusted arbitrator. The military expansion of Arab factions happened decades after Muhammad’s death.

Most American conservatives aren’t exactly known for their grasp of history, but some should know better than to deliberately spread false rumors about the origins of the Islamic caliphate. What sounds easier to produce, though, if your end goal is the permanent presence of a militarized police force in the Middle East?:

  • A false narrative claiming that Islam is inherently violent and expansionist
  • An honest narrative explaining that the Islamic caliphate of the Middle East (which ended up being dominated by Turks, not Arabs) was a complex unfolding that involved lots of factors, most of which were non-religious and some of which are still misunderstood or overlooked today

If you think I am strawmanning the argument in favor of a Western police force in the Middle East, think again.

Given that the case for an overseas police force is so shoddy, why do its opponents (including myself) have no clout whatsoever in terms of influencing outcomes? I think part of this answer is that many opponents of an overseas police force are just as bad at producing false narratives as the proponents of empire, but there has to be more to it than this.

Dr van de Haar’s new book is now available online

You can check it out at amazon here, and the official release date is in April 2015. It’s called Degrees of Freedom: Liberal Political Philosophy and Ideology. I haven’t read it yet (maybe he’ll send me a free copy!), but you can get a flavor of his thinking by starting here (and his bio is here, by the way). His book can also be found on the sidebar.

I’m sure he’ll be adding some more insights into the book here at NOL when he gets a bit more free time on his hands.


EDIT: Updated to mention the official release date.

Nations, States, and Foreign Policy Fantasies

Below is my attempt to make sense of the world, especially that of the Middle East. It’s best viewed in tandem with two earlier posts on the subject, and deals with military intervention (as opposed to outright war).

This post concerns the issue of scholars, journalists, intelligent laymen, and activists continually evoking the nation-state as their point of reference for discussing and analyzing foreign affairs. Here are two general examples:

I don’t think all nation-states are morally equal.


The list of nation-states involved in the Syrian fiasco are few in number.

This is logical as far as it goes, and there is something to be said for using the nation-state as a tool for better understanding the world around us, but in the post-colonial, developing world there are no nations attached to the states there.

Let me see if I can explain. The nation-state is a rare and parochial political unit found only in Europe and in parts of East Asia. Notice the hyphenation of the words “nation” and “state.” These are two very different concepts, and yet they are applied – together – nonchalantly in nearly every study or report to be found on international relations.

The interwar economist and patron saint of the present-day libertarian movement, Ludwig von Mises, studied nations after World War I out of a desire to better understand why large-scale violence occurs and how it can be prevented. I appeal to the authority of Mises on this matter because of the attempt by some libertarians today to simply disparage understandings of collectivist concepts such as “nation” with a brusque “the world is composed of individuals and nothing else, so your argument is invalid as well as incoherent.” It is true that individuals should be at the forefront of any question asked about society, but attempting to do so with tabula rasas won’t get you anywhere.

Here is Mises on nations, in the first chapter of his excellent 1919 book Nation, State, and Economy (pdf; and one of only two books I’ve read by Mises), making my point for me much better than I could ever hope to do:

If we wish to gain insight into the essence of nationality, we must proceed not from the nation but from the individual. We must ask ourselves what the national aspect of the individual person is and what determines his belonging to a particular nation. (34)

When a libertarian points out that the world is composed of individuals he is correct, but when he brushes aside any and all attempts to understand collectivist ideas such as nationalism he puts himself at an intellectual disadvantage. Perhaps this is because many libertarians, especially the post-Ron Paul 2008 ones, don’t want to think things through anymore. Perhaps it’s power they crave, rather than liberty and truth.

At any rate, Mises continues his thoughts on nationality with this sentence: “We then recognize immediately that this national aspect can be neither where he lives nor his attachment to a state. (34)” Nationalism isn’t even a phenomenon that can be tied to a specific geographical location, much less a specific state. (It’s worth noting that this is still the rough understanding of “nation” that sociologists and anthropologists have today. Many other theories about the “nation” have been swept away into the dustbin of history. I point this out because classical liberals tend to produce works that stand the test of time, and this is because of their commitment to the individual.) How can a conception of “nationhood” not be directly tied to territorial or political attachment?

I don’t claim to know, but here is how I break this recognition down. The tie-in to US foreign policy is coming, I promise.

The New World (Canada, the US and Latin America) is home to a small number of large republics that broke away from an imperial center at some point in the past. This is a very different arrangement from the large number of small nation-states in Europe and Japan/Korea mentioned earlier. There is no Brazilian nation to speak of. No American nation or Colombian nation to brag about. Only Brazilian, or American, or Colombian citizens are found in the republics of the New World.

While there are arguments to be made about the seriousness of nationalism in the New World republics, I don’t pay them much heed because the distinction between ‘citizen’ and ‘nation’ explains well Europe’s and Japan’s inability to assimilate immigrants as successfully as the republics of the New World.

The chronic bouts of fascism afflicting Latin America (and FDR’s United States) are largely the result of attempts to create a nation out of citizens.

In the Old World not consisting of Europe and Japan/Korea (i.e. the developing, post-colonial world), there is a small number of Western-educated elites who have been attempting, like the caudillos of Latin America, to create nations where there are none. These nation-builders are, consistent with their conformist Western education, national socialists. They borrow from liberalism its secularism but not its other laissez-faire underpinnings.

The advocates of Western military intervention, including Dr van de Haar and Dr Delacroix here at NOL, firmly believe that replacing the “bad” national socialists, such as Saddam Hussein, Hosni Mubarak, and Bashar al-Assad, with “good” national socialists will bring about viable, meaningful change in the region. Just sprinkle some fairy dust and – poof! – the new batch of national socialists will behave differently.

When pressed on this inevitable scenario, libertarian-ish military interventionists will renege on removing a dictatorship and replacing it with an alternative (which, again, will itself inevitably become a dictatorship). They recognize the futility of such an enterprise. Instead, they change tact and argue that a protracted bombing campaign would be a better option. This option, of course, has the effect of prolonging a conflict, which is blatantly at odds with the supposed humanitarianism of a military intervention in the first place.

The military interventionist simply assumes that a nation actually exists in these post-colonial, developing states, but nationhood is a concept that is limited to a small elite. An elite, I might add, that is just as illiberal as its Islamist (and other conservative) enemies.

Historians have long attributed the rise of the nation-state in Europe to wars and the absence of a hegemonic power. The decentralized nature of Eurasia’s backwater western region created the nations and states of Europe. Wars forced states to harness the potential of their citizens through political, economic and social nation-building. The lack of a hegemon forced these same states to compromise in otherwise uncompromisable situations.

Prolonging the war in Syria through a protracted bombing and arming campaign against ISIS, as military interventionists advocate, will not only keep the blood flowing, it will prevent a clear winner from emerging. “Humanitarian” intervention will prevent dialogue about what it means to be a nation. Indeed, it will prevent dialogue period.

If military interventionists truly want freedom and a lasting peace for the Middle East (and it is not clear that this is what they want) they would do well to stop relying upon the logical inconsistencies that they have fed to themselves over the past century. No amount of fairy dust or unicorn shit will be able to compensate for their fatal conceit.

What is missing from the Middle East is a vibrant sense of nationhood. It is no accident that the peoples in the Middle East with a strong sense of nationhood – the Turks, the Palestinians, the Kurds, and the Israelis – have had to fight for survival over the last 100 years or so to create, to retain, and to promote the cause of their nations.

Preventing dialogue, preventing compromise, and preventing victory in Syria by inadvertently playing different sides off on each other is not a humanitarian option. It’s not even a good “smart power” option. The military power of the West has been overrated for about a hundred years now. Its true power rests in the international institutions – international governmental organizations (IGOs) – it has been creating piecemeal over the past five hundred years. I blogged about wielding this influence most recently here and here. (and here is an older one). Also, open borders is an option that is never entertained by the international relations community (which is probably because it can only be implemented with some sort of political integration).

Around the Web

  1. What if Leo Strauss was right?
  2. How many people does the War on Drugs put in prison?
  3. Sympathy for the Devil: Palestine’s Tragic Collaborators (movie review of Omar)
  4. The Other Somalia
  5. Do black people have equal gun rights?
  6. Strategy of Condescension

Florentine Liberty I: Machiavelli, The Prince (Expanding the Liberty Canon series)

I have already addressed Machiavelli’s Discourses on the First Ten Books of Titus Livy here and I may well come back to them later. However, in the present post I will discuss the famous Machiavelli text, which is concerned with states headed by princes rather than republics, the subject matter of the Discourses. This will itself be the the first half of a two part discussion of liberty in Florence, with a second half on Guicciardini.

The city state of Florence had a history self-government, often republican rather than princely, going back to the eleventh century, when it broke away from the control of German emperors. Its role in republican political thought goes back to the thirteenth century as does its role as an early centre of capitalism, suggesting a connection between the economic development and the movement of political thought.

The first notable republican writer was Dante’s guardian Brunetto Latini (1210-1294). That is Dante Alighieri, the author of the great epic poem The Divine Comedy, one of the very great figures in the history of European literature. So not only was Florence the focus of late Medieval republicanism and capitalism, it was a focus of the development of literature in modern European languages, and of literary Italian in general. Dante created a modern language text on a level with Homer and Virgil, so putting Italian on a level with Latin and Ancient Greek, and confirming the development of modern languages, other than the Latin of church scholars, as instruments of thought and artistic creation. Indeed Latini even has a small role in the Divine Comedy, though rather ungratefully he is placed in Hell. This seems to be based purely on his same sex activities rather than any bad character beyond breaking church positions on sexual conduct. After the secular scholar Latini, the next Florentine given a place in the history of republican political thought is Remigio dei Girolami (1235-1319), a Dominican scholar whose philosophy was influenced by Thomas Aquinas. After that the scholar and city Chancellor Leonardo Bruni (1370-1444) keeps the republican tradition renewed. Detailed examination of these figures is perhaps a bit out of the scope of a historical survey series, but they certainly provide a rich tradition for Machiavelli and Guicciardini to examine and employ.

I have referred to this period in the history of Florence as late Medieval, but it can just as much be described as Renaissance. The great growth of classical learning and artistic creativity associated with the European fifteenth and sixteenth centuries had its beginnings in thirteenth century Florence and northern Italy, due to the commercial city states where there was patronage of the arts and there was contact with the Greek learning of the now highly weakened Byzantine Empire, which stemmed from Greek and Roman antiquity. Averroism, as in the legacy of the twelfth century Muslim philosopher from Cordoba, Ibn Rushd known in the Latinate world as Averroes. A period of Muslim influence, or sometimes dominance in Sicily from the ninth to the thirteenth century meant that Muslim thought was part of the general Italian heritage.

Niccolò Machiavelli (1469-1527) was a product of Florentine republican tradition and the general Italian Renaissance. He lived through periods of secular republican, religious republican, and secular princely rule in Florence. The religious period should be given some attention, as though Machiavelli himself was highly secular (possibly a non-believer, but a variety of views exist on that issue), the events of the religious republican period made a deep impression on him. From 1494 to 1498, the politics of Florence were dominated by the Dominican friar (like Girolami mentioned above), Girolamo Savonarola, who pushed Florence towards religious purification in anticipation of apocalyptic events. The apparent craziness was accompanied by some intellectual and literary sophistication, and was not just a pure descent into fanaticism. In the end the Pope found Savonarola too troubling too ignore so that he took action that ended with the execution of Savonarola as a heretic. Despite his lack of religious enthusiasm, Machiavelli shared a belief in the special role of Florence, though his vision of the city was as the descendent and repetition of the Roman republic rather than as the starting point of a Christian apocalypse. He wanted purification of a kind, if through the placing of laws above individuals, rather than religious observance, and an end to a corrupt aristocratic domination.

The Prince both pays tribute of a kind to Savonarola as a prophet without arms and sets Machiavelli on a path of hoped for cooperation with the dominant family, the Medici who had replaced republican with princely rule, arresting and torturing Machiavelli in the process, as he was a civil servant and diplomat in the former republic. The part admiration for Savonarola comes from an antique tradition of revering founders of republics and great law givers to states of any kind. This reaches a peak in Cicero who described founders of republic as god like. However secular Machiavelli was, he was aware of ancient Jewish history as recorded in the Hebrew Bible and the law giving role of Moses, which is one model of state foundation for Machiavelli and therefore of possible conditions for liberty, since liberty requires law rather than personalised rule.

The Prince is the product of a man who though very talented at the life of a private scholar which he pursued after his political fall, wanted to be working on public affairs even under a prince rather than a republic. It is a lengthy job application to Lorenzo Piero de ‘Medici (not to be confused with his grandfather Lorenzo the Magnificent) and despite composing the longest and best covering letter in all history, Machiavelli did not become a counsellor to a prince. So, we should not regard Machiavelli as a successful ‘Machiavellian’ and perhaps think again about any preconception that The Prince is some key to all knowledge in the dark arts of power and a place of voyeuristic pleasure in observing the inner workings of the state.

Machiavelli does offer his potential employer (who may never have read this extraordinary application material) some ruthless sounding advice on how a prince should gain and maintain power, including the execution of those who create the most obstacles to power. This is not exactly shocking advice for the time. The death penalty was widely used and extra-legal killings for political reasons were normal if not in line with the sort of moral standards rulers publicly proclaimed. The whole outrage of the church and others at the suppose shocking immorality of The Prince is one rather absurd and lengthy exercise in hypocrisy. There was certainly little Machiavelli could have taught Popes of the time in the darkest arts of power. Condemnation of Machiavelli was due to his making public unpleasant realities so that anyone who could read would now be aware of how kings used their power. The book was not published in Machiavelli’s time, so the torrent of vilification came after his death.

The more brutal aspects of The Prince do not even begin to match the horrors of dynastic wars and religious persecution at the time, particularly if we take into account the behaviour of colonists of the time. Machiavelli recommends none of these things which political and religious leaders of the time were willing to have on their conscience. Some passages recommend complete colonisation of newly acquired territories as one means of maintain control, in preference to partial colonisation which is as close as Machiavelli gets to advocating generalised suffering for civilians. In any case he does not recommend the kind of massacre and rapine normal at the time, and the main thrust of the argument is not towards conquest, but a state which has some community with its citizens.

Machiavelli was sceptical of the military value of walls and fortresses compared with a citizen army willing to defend its own land. Opposition to royal fortresses was opposition to one of the main forms of state control at the time. The prince is expected to dispose of individuals dangerous to assuming power, but this is advice to princes who newly have power and need to consolidate it, not advice on long term methods of government. The long term approach is to respect law, respect the property of citizens, and leave women free from forced advances. The prince is advised to hunt a lot as a means to improved military abilities, in knowing the terrain of his own land in detail so knowing how to defend it. The martial interests are presented as the prince’s main area of interest, so that the prince is more of a commander in chief of the military than a man of political power. The idea of a monarch who is mostly a chief of the military was a republican idea at the time and anticipates liberal ideas about the limited scope of any state apparatus.

The relationship between morality and political principles is where Machiavelli departs from antique republican thinkers like Aristotle and Cicero who present politics as the extension of virtue and moral principles. Machiavelli even overturns some of their ethical limits on power. He does so through a sophisticated dialogue with Aristotle, Cicero, and Seneca, which largely does not mention them by name but is very recognisable to those who have studied them, which was a high proportion of likely readers of Machiavelli in his own time. Both Aristotle and Cicero refer to the tyrannical ruler as a wild beast or worse. This itself refers to an antique way of thinking about ethics as self-control, which puts us above the supposed level of animals. Machiavelli challenges this by advising the prince to be a mixture of human and beast, and as beast to combine the cunning of a fox with the fierceness of a lion. None of this is Machiavelli advocating tyranny, it is an appreciation of power and desire which ancient thought was not good at accommodating. The good ruler rules from a desire to pursue the good life and be a friend of citizens in ancient thinking. They could not think of power and self-referring desire except as negatives, even if their own actions went against their words. Cicero’s political career included a willingness to go to the limits of law and beyond where he saw it as necessary to defend the republic, he simply had no language to explain this in the moral terms he used. His main political work, The Republic includes the positive contribution of Scipio Africanus the Younger, the Roman general who physically destroyed the city of Cartage and slaughtered every last inhabitant.

Cicero, like other ancients, had difficulty in discussing politics as power and civilised individual action as based on desire, rather than a morality of self control, so they had little way of accommodating theories of power and desire. This is why there are no ancient writers praising commerce except maybe within very limited and constrained circumstances and then only in a very minimal way, even Seneca who was a major money lender of the whole empire. Machiavelli did have  vocabulary and understanding of power in politics and desire in human action. He was convinced that general application of moral principles about always being truthful, merciful, generous, and so on, were not adequate to understanding the possibilities of human creation in politics and in commerce. Moral outcomes mattered to him, and he is clear in The Prince that some acts are too immoral to accept for any reason, but he thought moral outcomes come from skill in political arts and in trade offs between different moral demands. If one can sincerely claim to be always purely moral and never accept a lesser evil for a greater good, then one maybe has the right to be shocked by Machiavelli, but who can claim such a thing?

The Prince conforms to the wish of a prince to have power and glory and use violence to seize power where the chance arises. However, as far as possible, it always pushes the prince to do so through through respecting the rights of citizens, working to gain their consent, respect peace and stability, and the regular application of law. The prince is urged to avoid the virtue of generosity, because the ‘generosity’ of princes comes from taxations and is therefor a burden on citizens undermining their economic welfare. So that is the wickedness of Machiavelli! Avoid so called virtues which harm those they are supposed to benefit. It is advice to the prince to work so much through law, public good, and concentrating on his military duties, that a republic is bound to emerge under the nominal rule of a prince. That is the goal of all the wickedness in service of dark power.

Unemployment is Completely Unnecessary

In U.S. government statistics, a person is unemployed if he is 16 years of age or more, and that person is able and willing to work at prevailing wages. The labor force includes the employed and the unemployed. If one is not employed for wages because one does not wish to work or to seek work, that person is not in the labor force, and not counted as unemployed.

The unemployment rate in the USA is now about six percent, down from a peak of ten percent in 2009. About one percent of the labor force is in “frictional” unemployment, meaning that the worker is between jobs or recently graduated from school and engaged in job search, or about to be hired. When the economy is depressed, there is “cyclical” unemployment, those not working as firms reduce employment. There is also the “structural” unemployment of workers losing their jobs in declining industries, and the seasonal unemployment of those employed only during a season such as in resorts or during harvests.

An economy is in full employment when the only unemployment is frictional. The economic puzzle is why there is any other unemployment. Cyclical unemployment is no mystery, as firms have fewer sales as demand falls, and falling demands become a downward spiral as falling purchases by some become falling production by others. The recession ends when materials prices and real estate rentals have fallen so low that production becomes profitable again.

Since recessions are caused by monetary and fiscal subsidies, a pure market economy would have neither, so it would have no recessions and no cyclical unemployment. So the puzzle consists of chronic unemployment, those unable to obtain work even during prosperous times. Most of the unemployed have been out of work for months or years. Those long unemployed have even more difficulty finding employment, because employers wonder why that person can’t find any job.

Some economists consider idle labor to have a positive side. You car is not wasted when you don’t use it, because it provides the service of availability. Empty seats in a theater have value because the theater needs that capacity for popular shows. Likewise, in this viewpoint, idle labor provides workers when firms need to hire. Also, the unemployed need time to engage in job search, so they are busy even if unemployed. But one can be employed at least part time while looking for better work, and while idle labor may be good for employers, it is bad for workers who need the income, and for taxpayers who have to support those not working.

In a pure market economy, there would not be any unemployment at all. There would be no seasonal unemployment, because workers could find other jobs in other seasons. There would be no structural unemployment, because workers could shift to other industries, and work in temporary jobs while searching for full-time employment. Even workers in frictional unemployment would be able to work some of the time, since job search is not full-time.

One of the premises of economics is that human desires are unlimited. There is always a demand for something. That demand provides an opportunity for workers to be employed to satisfy that desire. In a pure market economy, one could also be easily self-employed. Any person who is not totally incapacitated would be able to offer some service at some wage. If the wage one can obtain is too low to bother with working, then that person would not wish to work, not be in the labor force, and not be unemployed.

Unemployment exists because there are barriers that prevent labor from having access to land and capital goods. If the cost of hiring a worker is greater than his productivity, he will not be hired. In a pure market, the wage would be set where the quantity of labor supplied by workers equals the quantity demanded by employers.

Government policy raises the cost of labor above the pure market wage. Minimum wage laws prevent employers from hiring the least productive workers. On top of the minimum wage are imposed costs: the employer’s share of payroll taxes, mandated medical insurance, worker accident insurance, and the unemployment compensation tax. The firm also has to withhold taxes from wages and send then to the government. There is also a litigation risk and cost of hiring labor, as labor laws promote excessive litigation to combat malpractice, discrimination and sexual harassment. Also, union labor monopolies, and laws favorable to unions, push up the wages of union workers at the expense of less employment. Finally, laws making it costly to fire workers raise the cost of hiring them, creating more unemployment.

In a full-employment economy, when firms seek to expand, they would pull workers away from other firms, or pulled into the labor force, by offering higher wages and better conditions. There is no need for idle labor.

The best policy for labor is full employment. Labor laws that seek to protect workers end up imposing barriers that prevent employment. Full employment requires hiring flexibility and the removal of government-imposed costs. Full employment requires the elimination of taxes on labor, exchange, production, and consumption. Public revenue from land rent or land value could replace all these labor-hampering taxes, while promoting the productive use of land which would further increase wages.

A shift in taxation from labor to land would both increase employment and increase wages, while letting the worker keep his wage. It is not unemployment that is a puzzle, but rather why workers are not demanding the abolition of their wage-tax burden.