Month: March 2012

Two More Days!

Brandon Christensen Economics, Liberty, Links , , ,

Two more days to sign up for the Independent Institute’s summer seminar scholarship offer.

I first became interested in libertarianism during the 2008 presidential campaign, when Ron Paul gained national prominence for his tangle with Rudy Giuliani on foreign policy.  In the summer of 2009, just after the presidential primaries wrapped up, I embarked on a nationwide journey to learn more about the concept of liberty.

My first stop was the Independent Institute’s summer seminar, an from that experience I not only learned a lot about how markets work (I just spent the afternoon going over my notes from the seminar), but I was also able to make some great connections as well.  Indeed, the co-editor of this blog, Fred Foldvary, was a lecturer at the seminar, and Brian Gothberg, who is incredibly good at teaching basic economic subjects, are just some of the fantastic people that I have been able to count over the past three years for intellectual support.

If you want to spend a week in one of the San Francisco Bay Area’s most beautiful locales, learning about liberty, history, civil society, and the market process, then I highly suggest checking out their seminar.  It is absolutely fantastic.

National Specialization, the Virtuous Obverse of Protectionism (Part Six of a Series)

Jacques Delacroix Liberty

Luis, I, the Canadian farmer, Hans, and Pierre have all improved our productivity. We all earn more. We have increased our ability to buy anything at all, stuff, leisure, occupational training, or anything we want. We did this without working more than we used to. We have helped the world become richer. None of us, except maybe Pierre, has achieved any stupendous success. Even Pierre’s bold killing on the Chinese wine market ranks far below other successes we read about in the newspaper everyday. His success barely rates the local newspaper. It’s not Google, or Apple, or Craig’s List or even Fred’s List. It’s pretty conventional stuff.

We have all done this without cheating, without despoiling anyone, without doing any damage to anybody. Now think of what we have not done: I have not improved my technical ability; it’s doubtful whether Luis has done anything of the sort. In fact, it would not be absurd to argue that blowing leaves is more skillful than washing dishes. Same for the Quebec farmer. Hans may have augmented his training; he did it on the job if he did it at all, at the expense of his manufacturing employer. Pierre knows more than he did when he was still at his hum-drum government job. He learned what he learned under his own power, on his own dime, at no perceptible cost to anyone else. Here is the main factor that accounts for our joint improved production: Continue reading →

Equal self ownership

foldvary Liberty , , ,

John Locke in his Second Treatise of Government had two premises for natural moral law: independence and equality. Independence means that we think and feel individually. Equality is about moral worth. There is no inherent master/slave status in human nature. There is no inherent superiority or inferiority among the races, sexes, or other categories of human beings. The moral default is therefore equality.

This is the concept recognized by Thomas Jefferson, when he wrote that all persons are created equal. This is the concept of equality before the law. Human equality is a premise for natural moral law, or the universal ethic.

When one person imposes coercive harm on another, he makes himself master, and the other is a slave. This is inconsistent with equality. The universal ethic begins with our subjective values, and then provides a moral production function resulting in moral rules for the universal ethic. One’s personal ethic or subjective value that being coercively harmed is evil gets passed as a universal ethic moral rule that coercive harm to others is evil. But mere offense becomes transformed as morally neutral, since one has not been invaded.

For the full treatment, see my book The Soul of Liberty.

Some Great Links From Around the Web

Brandon Christensen Economics, Links , , , , , , , , , , , , , , , ,

A fascinating blog post on Indian domestic politics and foreign policy by a Ph.D. student living in New Delhi and studying at Jawaharlal Nehru University.

Alex Warren, a journalist with extensive experience in the Middle East, writes about Libya’s decentralization.

“The Current Models Have Nothing to Say.” That is economist Robert Higgs’s analysis of modern, orthodox economics.

Might regionalism help solve Central America’s woes?  Be sure to check out the rest of the blog, by Seth Kaplan, too.

Conor Friedersdorf of the Atlantic has a penetrating look at the logic of a drug warrior (h/t Brian Aitken)

Co-editor Fred Foldvary, writing in the Progress Report, explains that value is subjective.  This is an important concept when it comes to understanding economics.

From the Comments: A Note on Property Rights

Brandon Christensen Comments , , , ,

A couple of very thoughtful comments have been posted in regards to property rights over the past couple of weeks, and I want to single them out for their thought-provoking content.  JuanBP writes:

Libertarian socialists (no, my dear American friends, that is not an oxymoron) believe in freedom of speech, association,religion and all other liberties cherished by Libertarians. Where we differ profoundly is in our understanding of what constitutes economic liberty – for we tend to consider that property, the very foundation of capitalism, is theft.

And from Benjamin David Steele:

There is one general difference I see between the left and the right which also would refer to the general difference between left-libertarians and right-libertarians. Those on the left tend to see human rights as prior to property rights. And those on the right tend to see property rights as prior to human rights. It is a difference of emphasis, but a very big difference in terms of practical application. As a left-winger with libertarian tendencies, I see no evidence that defending property rights inevitably leads to defending human rights.

Both of these comments provide great insights into one of the many myths espoused in political discourse throughout the world: that property rights are somehow different from any other human right. Continue reading →

Selgin on Bernanke

Jeffrey Rogers Hummel Current Events , , , , ,

Some of you have probably already seen Roger Lowenstein’s overly laudatory, but still useful and interesting, article on Ben Bernanke in the March 2012 Atlantic. As a good antidote, you should check out George Selgin’s thorough and informed critique of Bernanke’s first of four lectures on the Federal Reserve. Bernake seemingly unreflectively repeats many gross myths about the history of banking. Although these myths are widely believed by mainstream economists who who are abysmally ignorant of history, Bernanke has specialized in monetary history and should really know better.

Jeffrey Rogers Hummel

Some Musings on China: Why We Need Not Fear Beijing

Brandon Christensen History, Politics , , , , , , , , , , , , , ,

The recent ouster of Bo Xilai from the Communist Party can provide an interesting glimpse into the political mechanisms of the Chinese state. The fact that Mr. Bo was dismissed for “corruption” charges means that he was probably doing something right, or that he was too sloppy with his privileges and embarrassed the wrong people. We all know that socialism, in all its forms, leads to benefits for the few at the expense of the many (remember the bailouts of Western financial institutions?), but Mr. Bo’s ouster deserves a closer look, because he was a fairly prominent politician, and was actually slated as a possible successor to Hu Jintao, the Communist party’s current boss.

What I want to focus on is the fact that Mr. Bo was ousted at all. This move means that Beijing is becoming increasingly responsive to the demands of its citizens. Indeed, as China continues to liberalize its markets, democratic initiatives, whether real or appeasing, will continue to bubble up throughout the fascist state. This is because democracy is the natural political order that arises out of market-based institutions (private property, international trade, etc.). The world will have to be careful with China’s democratic transition though. Democracy is not a good thing in itself, especially democracy that is based upon an allegiance to a state. I am thinking of France in the 19th century and Germany in the 20th, although the democracies that sprung up during the post-colonial revolutions can also be good examples.

The main ideas behind the post-colonial revolutions were state sovereignty and democracy – not liberty – and the results, I think, speak for themselves. Continue reading →

Luis, I, the Bananas of Quebec, Hans, and Pierre (Protectionism – continued)

Jacques Delacroix Liberty

Next step coming soon. I have been unusually busy. It’s all in my head. Stay with me. Don’t forsake me yet. [Part Four; Part Six]

A Few Fun Links

Brandon Christensen Liberty, Links , , , , , , , , , ,
  1. Europeans: anti-Semitic violence is okay as long as it’s done in the name of Palestine
  2. Five reasons to withdraw from Afghanistan by Malou Innocent in the National Interest
  3. Speaking of Afghanistan, Justin Raimondo wonders if the murderer acted alone
  4. In USAToday (!!) there is a great piece on libertarianism and science. Be warned all ye religious libertarians! (ht Wilson Mixon)

Okay! Okay! Perhaps they’re not that fun, but enlightening I hope.

A State Called Libya

Brandon Christensen Current Events , , , , , , , , , ,

Over at The Week, Dr. Daniel Larison brings up the situation of a state called Libya.  One year ago the West led a bombing campaign that ousted the brutal dictator Moammar Ghaddafi.  A problem or two arose though:

The internal disorder and regional instability that the West’s assault created were foreseen by many critics. And yet, Western governments made no meaningful efforts to prepare for them. No one planned to stabilize Libya once Moammar Gadhafi was overthrown, and the National Transitional Council (NTC) rejected the idea of an outside stabilization force […]

The NTC Larison speaks of is, of course, the entity that the West has blessed with steering the Libyan state’s course to democratic paradise.  Think here of the Transitional Federal Government of Somalia.  It gets worse too: Continue reading →

Free Trade and Protectionism: The Story of Pierre. Part Four of a Series

Jacques Delacroix Liberty

This is the fourth installment of a continuing series of very small essays on protectionism and free trade. Those are daunting subjects neither the media nor schools explain well, I think. I am taking small steps on purpose. The first two installments were posted on the same day. All installments will comprise the word “protectionism” in their title for the sake of recognition.

Part Four

Of course, next door to Hans, in France, there is a guy named Pierre. He is in his mid-forties. He has been working in a government-owned industry for fifteen years. He is comfortable, with a good pension awaiting him, but he is tired of his job because it gives him no chance of ever making it big. Also he is bored with it. Pierre and his brother-in-law, Jean (of course) share an interest in wine; both their grandfathers made wine. Of course, they know there is no shortage of wine in France although there is a chronic shortage of good wines. They consult with me and I point out to them the immense, fast-growing, under-served, and uncritical market of urban China. Continue reading →

Free trade, (Protectionism) – Part Three

Jacques Delacroix Liberty

This is Part 3 of a slow long essay on the reasons free trade exists. Parts 1 and 2 were posted all at once few days ago,

Now, forget about Luis and me for the time being.

Just imagine a word where people everywhere are allowed to do what they want with respect to how they spend their resources. The first resource is their time, of course. Some people, not everyone by all means, will try to earn more. Note that I am not saying that everyone will act rationally. Some are too lazy; some are too stupid; some simply like what they are doing at low earnings. That’s fine. It does not undermine the explanation of free trade I am stretching out for you in small steps.

A farmer in Quebec thinks he is not earning enough herding and milking cows. He is thinking he would do better growing bananas. His friends point out that Quebec is not a good place to grow bananas because it’s cold much of the time and winter days are short there. If he is smart, he will follow their advice and look for some other improvement. If he is too dumb or obstinate and he goes on, reality will soon hit him on the head. He will find that he has no income from Canadian bananas most months, or even most years. Or his electricity bills will drown any profit. Either way, the unhappy cow farmer will have to try something else. He may discover that growing big pink organic-certified raspberries for the Montreal market, or for the New York City market, pays better than either cows or bananas. Or he may fail and return to cows. Or, he may become unemployed. The process is messy. Continue reading →

Protectionism; Free Trade, Step by Step

Jacques Delacroix Liberty

Here are the first two installments of a series of eight explaining something important that few people understand. The subject of protectionism is important because the concept is intuitively appealing and its implementation a recipe for poverty.

Part One

I hear more and more talk of protectionism, not only on the left where you would expect it, but among conservatives as well. “Protectionism” refers to any government policy intended to impede or slow down imports, merchandise and services produced somewhere else. The main idea behind protectionism is to “protect” the jobs of domestic, local workers. The idea goes like this: Americans need shoes. If you stop foreign shoes from coming into this country, Americans will have to make shoes for Americans. That means more jobs.

That’s an attractive idea and one that’s easy to grasp. Unfortunately, protectionism is actually the royal path to poverty. Even more unfortunately, the reasons are difficult to explain. You have to rely on counter-intuitive explanations to show why protectionism actually makes people poorer. Roughly, the reverse of protectionism is called “free trade.” (What is meant here is free international trade.) International trade simply means trade of merchandise and/or of service that crosses national boundaries: A pound of oranges grown in Mexico and sold in the US is an import. Continue reading →

Some Chinese Links

Brandon Christensen Links , , , , , , ,

I apologize again for my lack of blogging activity lately.  I will be done with Finals on Thursday!

I regularly read Shanghaiist, a webzine of culture in Shanghai specifically and China generally, and I just came across this great bit of reporting on the ouster of one of the Communist Party’s most outspoken reformers, Bo Xilai.

In the piece, a list of outrages and speculation of Mr. Bo’s ouster are reprinted from Weibo, the Chinese version of Twitter.  Here are a few of them: Continue reading →

Shipping Jobs Overseas: The Export of American Manufacturing Jobs and Lousy Education

Jacques Delacroix Current Events , , , , ,

I had a troubling encounter in the past few days. It was on Facebook and it was with a stranger. Here is how it went: I patronize several organizations’ and people’s Facebook pages, to stay informed and also to learn from them. There is a man, X, who is my Facebook “friend” and whose page I like because he is a libertarian, or a libertarian conservative like me, who knows useful things I don’t know. X has a talent for firing up debates on Facebook. In one debate a propos of I don’t remember what, one person, followed by several others, kept referring to the de-industrialization of America, its putative loss of manufacturing industries specifically.

I intervened calmly and politely to point out that there was no such thing. I remarked that the height of American industrial production was either 2008 or 2007, or maybe even 2006, not 1950 as they seemed to believe. I directed the debate participants to a couple of government sources. One woman responded almost insultingly, alleging that I was trying to send her on a wild goose chase. She appeared to think that I was referring her to the whole Census with its thousands of pages of documents. I took the trouble – obligingly, if I say so myself – to direct her through Facebook to a source I though was easy to read, NationMaster. In addition I summarized what NationMaster had to say on the topic.

Here is the summary: Continue reading →