New Mexico’s Police Breaking Badly

by Fred Foldvary

The AMC television channel recently concluded the drama “Breaking Bad.” The series was about a high-school chemistry teacher who has terminal cancer and “breaks bad” by making methamphetamine to get money for his treatments and for his family. The episodes take place in New Mexico, and some of the scenes occur in the desert.

Now the state government of New Mexico is breaking into real-life evil. Its police are stopping drivers and forcing them to submit to intrusive body searches and medical tests for drugs, including X-rays and colonoscopies. The hospitals then bill the victims for the involuntary procedures.

The State of New Mexico is establishing the principle that the state may force people to undergo medical procedures that they then must pay for. The worst aspect of governmental medical provision is that the health of individuals becomes a governmental matter, and therefore the state takes control over medical decisions. The federal and state governments may, in the future, force people to adopt preventive measures and periodic tests. The government will not only force citizens to have medical insurance, but also force people to submit to procedures such as anti-smoking treatments and colonoscopies.

One of the victims of medical coercion is suing the City of Deming in a U.S. District Court for being forced to submit to X-rays, enemas, and a colonoscopy. The police and doctors did not find any drugs in his body. As justification, the police claim that the driver was clenching his buttocks after being stopped for a traffic violation and ordered out of his car.

After that lawsuit was registered, it was reported that another man was probed for drugs in a New Mexico hospital after his car was stopped by police for failure to signal. The news media are now reporting that other drivers in New Mexico are being searched after getting stopped for alleged traffic violations. The police suspect the drivers of drug violations due to their appearance or due to dog sniffing, often with untrained dogs, and obtain warrants for the intrusive drug tests and body searches. In the case of the driver suing the state, the warrant was not even valid for the county and the time in which the colonoscopy took place.

The police in other states have been doing similar things. In Tennessee, the police took a man cited for an expired car licence to a hospital for drug tests, after a sniffing by a drug dog. A woman in Texas was strip-searched and double-probed by the police and by doctors.

The Fourth Amendment to the United States Constitution states, “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.”

Unfortunately it is easy for the police to evade the Fourth Amendment because they can claim that their searches and seizures are reasonable. and some judges will routinely issue warrants if a dog, even if untrained, growls or points at the victim, or perhaps if the victim seems nervous.

Long ago, and still in some countries, highways were dangerous because robbers would halt a carriage or train and steal from the riders. Now, in the USA, the highwaymen are the police who are not content to merely issue citations, but use traffic violations as an excuse to enforce the drug laws. Driving in New Mexico is now dangerous because of the police predators.

Ecology is the relationship of living beings to one another and the environment. Evolution seems to generate predator-prey ecologies. Now that large predators such as lions and wolves have been eradicated from human habitat, ecology has generated human predators such as hijackers. Government is supposed to protect the public from such predators, but the drug laws have turned the police into yet another set of predators.

The German philosopher Nietzsche wrote that the “will to power” is the strongest human motivator. Individuals who seek the thrill of exerting power now become traffic officers, because they can stop any driver and have power over and into his body. This police predation is legalized rape.

From the Comments: Federalism, Small States and Central Banks

Rick Searle asks the following question after reading my argument with George Ayittey on secession in Africa:

Brandon, how do you respond to the geopolitical and macro-economic arguments in favor of strong federalism rather than small-state nationalism? The experience of Central Europe after the First World War seems to offer a telling example of what happens when you break-up multi-national states along ethnic lines. The collapse of the Austro-Hungarian Empire created a power vacuum which Hitler and Stalin were only too glad to fill. All of the thriving national states you have named exist under the implied or real security guarantee of the US.

Secondly, whatever the attraction of economic integration without political integration seems to be coming apart at the seams with the example of the European Union as we speak.

Breaking up Africa’s multi-ethnic states- unless they were replaced with a robust form of federalism- would, thus, seem to condemn that continent to perpetual interference by the big powers, and economic weakness.

Rick,

Thanks for chiming in. Your question and comments are very good ones.

how do you respond to the geopolitical and macro-economic arguments in favor of strong federalism rather than small-state nationalism?

As far as strong federalism goes, it is actually my preferred system of governance for the withering away of the state. Unfortunately, strong federal republics are few and far between in history. There are very hard to maintain and even harder to govern effectively. The best way to achieve a strong federal state is to start small and work your way up to a confederation, and if all sides want more political integration, then it would be wise to start putting together a federal state.

As far as small-state nationalism goes, I don’t want that. At all. What I am in favor of is smaller states without the nationalism. Remember, of all the small states I’ve listed most are fairly multi-ethnic. Denmark isn’t (I blame the crappy weather), but is still very open to immigration and international firms, while South Korea is currently trying to push an immigration reform bill through its parliament. Small states are good, nationalism is bad. More on this just below, but first:

The experience of Central Europe after the First World War seems to offer a telling example of what happens when you break-up multi-national states along ethnic lines. The collapse of the Austro-Hungarian Empire created a power vacuum which Hitler and Stalin were only too glad to fill.

Ah, great example Rick. Just to be clear: I don’t want to go around breaking states up. That would be both pompous and disastrous. Playing god is something only Leftists do! All I am saying is this: if a region within a state wants to secede from another state, then the international community should recognize this secession. There are a couple of caveats, of course. Doing this in China or Russia’s backyard would be a bad idea, but in the post-colonial world I think this is something that we should be looking at as a policy option to stunt the violence and poverty in these areas.

Recognizing the legitimacy of the secession would have three effects that would stop the violence for a time: 1) it would require that the new states prove their worth in the international community in the form of not persecuting minorities in their new state, 2) it would deter the state that just lost the region to secession from attacking another sovereign state for fear of reprisals and 3) the recognition of independence would inevitably lead to talks by both sides. Perhaps they could figure out a way to re-federate a few years on down the line, or perhaps they could come to some sort of agreement on trade. Whatever they do, they would at least be talking instead of fighting.

Failure to build an international consensus to recognize the independence of regions seeking independence will lead to more of the wars we have seen in much of the post-colonial world, as well as in the Caucasus and the Balkans.

Back to the nationalism you brought up earlier. A lot of states that try to secede are actually very multi-ethnic. Azawad, in Mali, for example, is a good example of a multi-ethnic region trying to break free from Bamako’s inept rule. With the advent of the market economy throughout the world (see my reply to NEO above), nationalism will continue to decline in prominence, and the areas of the world where nationalism is prevalent will be the hottest ones on the planet. States that thrive on nationalism are going to have to struggle to assert their authority over their people, and where there is nationalist promotion in government, there we will see most of the violence. I am thinking of China, Russia, Israel, Palestine, North Korea, and India-Pakistan.

In other cases, secession has taken place within a state that is largely homogenous ethnically. Somaliland, a democratic, relatively prosperous, but unrecognized state in the north of Somalia is a case in point. They want out of Somalia until all the violence and competition for the center of power dies down. They are open to re-federating, but in the meantime…

All of the thriving national states you have named exist under the implied or real security guarantee of the US.

Yes, but isn’t this in itself a form of confederation, or loose federalism? I’m all for more integration between the US and other societies, by the way. If we could get these states to integrate further economically, and could make our political borders largely irrelevant within the confederation: then security costs would largely be paid for. My co-blogger Jacques Delacroix has actually written one of the most stimulating papers on the subject of integration between states: “If Mexicans and Americans Could Cross the Border Freely.” I highly recommend it. Remember, one of the pillars of individualism is internationalism. Hayek, among others, lamented that we had lost this fight to the Marxists in the 19th and 20th centuries.

Secondly, whatever the attraction of economic integration without political integration seems to be coming apart at the seams with the example of the European Union as we speak.

Ah, but the problems of the EU don’t stem from economic integration, they stem from more political integration. The European Central Bank – a political creation if I’ve ever seen one – and proposed measures for a European parliament with more delegated powers is what has caused the strife in the Eurozone, not the ability of Greeks to work and vote in France, and vice versa.

Breaking up Africa’s multi-ethnic states- unless they were replaced with a robust form of federalism- would, thus, seem to condemn that continent to perpetual interference by the big powers, and economic weakness.

Agreed! But again, I don’t want to go around breaking up states. One big hole I see in my support for secession theory so far is the question of what if: what if the new state’s neighbors don’t play ball economically? Won’t that new state be isolated? Co-blogger Fred Foldvary actually wrote an article on this subject using Turkey’s rejection from the EU as an example: “Let Turkey Join NAFTA.” Another highly recommended piece!

Whew. Thanks again for contributing to the conversation, Rick, and don’t be bashful in throwing more fastballs my way. It helps me learn and clarify my thoughts!

Refugies dans l’ irrealite?

Pour des raisons techniques mysterieuse, je n’ai pas reussi a afficher une reponse au commentaire sur mon essai du 16 Novembre, “Une culture politique du n’importe quoi.” envoye par celui que j’ai nomme “Le Chouan.” J’en ai fait un essai a la place que voici:

Le chouan:

Bien sur, je suis tributaire de l’etroit menu en Francais disponible ici. Ce n’est pas grand-chose. D’ailleurs, j’interroge plus que j’affirme quand il s’agit de la France. J’aime bien “On N’est pas couche” pour une raison: Cette emission interroge en profondeur les homme politiques de maniere que je n’ai jamais vue ici, aux E.U. Et son presentateur me semble bien faire son boulot, quoique ce soit qui fasse flotter son bateau. (Traduction de l’Anglais.)

Le pessimisme de ton analyse force a se poser cette question: Comment est-ce qu’un pays de 60 millions, dont peu d’analphabetes, jouissant d’un plein acces a l’Internet, en est arrive a dependre d’un classe politique aussi nulle? S’agit-il d’une consequence d’une culture francaise plus ou moins constante ou plutot d’un deraillement. Dans le second cas, le deraillement daterait de quand?

Ou alors, assistons- nous a la gueule de bois qui suivrait trente annes de grandes vacances bien arrosees? Est-ce que la structure meme de la societe francaise rendrait l’acte de gouverner tres difficile?(Je mets en cause l’etat-nounou, bien sur, et le tout-subventionne.)

Voici une observation qui est peut-etre (peut-etre) liee a mon interrogation: Je suis en rapport avec un blog de lyceen parisiens intelligents. Ils s’expriment pourtant comme des militants communistes de 1953. On dirait qu’ils vivent dans une film, dans un mauvais film.

La societe francaise me donne d’ailleurs souvent l’impression d’etre une sorte de feuilleton. Je suis tous les jours absaourdi, par exemple, de constater les emprunts a la langue anglaises par des gens qui ne connaissent pas l’Anglais et qui possedent d’ailleurs une langue parfaitement viable. J’ai entendu avec mes propres oreilles un Francais plutot creatif utiliser le mot “gun.” dans une phrase en Francais. Cela m’etonne, bien sur, la langue francaise ne manque pas de vocable pour dire “arme a feu.” On dirait que beaucoup de Francais trouvent leur propre realite irreelle, qu’ils essaient de se refugier dans le monde des ecrans etrangers a leur proproe culture. Et ou les idees, exprimees dans une langue peu ou mal connue, sont mal saisies parceque elles sont rendues par la-meme insaisissables.

Je dis ca, moi, c’est pour causer.

What I learned in Community College

A salvo:  As a returning student in my thirties, I must admit I am thoroughly enjoying the community college experience — it blows my mind that I have the freedom to return to the academic environment and pursue my education in a convenient and cost-effective manner.  Surely this is a testament to the community college system, and for that, I am grateful.

Now that I’ve established my gratitude, I’d like to outline briefly what I’ve learned in my first semester back in school, and solicit the well-educated community that is notesonliberty.com for a bit of guidance.  Hopefully, you fine lot will provide me with some direction and perspective.  I intend to apply to a California school upon completion of my transfer program at the end of the 2014 academic year.

Here is what I’ve learned in a semester at Cabrillo college in Aptos, CA:

GEOG 3, Physical Geography:  Anthropogenic climate change is a fact.  Humanity is a juggernaut exhausting the planet’s resources, polluting, heating and overpopulating the environment.  The planet’s ability to support us is quickly and undoubtedly reaching the breaking point, and the solution is radical and immediate de-industrialization and depopulation.  The fact that industrialized nations and economic development provide innovations that result in efficiency and sustainability, as well as a negative replacement population rate matter not.  Humans must cease to eat anything but primary energy producers (plants), and ‘enact policy’ to curtail fertility by all and any means necessary to save the planet.

CG 65, Leadership:  Democracy is fair and effective.  It is just and fair to allow the tyranny of the majority to compel by force the theft of property from individuals in the form of taxation for the ‘common good’.  The importance of understanding the electorate’s will is secondary at best to mastering the process by which I as an individual can gain power and privilege through the exploitation of the democratic process.  Open manipulation of the will of the masses is the only just means to gain dominance over my neighbors and co-opt their liberty and resources.  Individual ability is meaningless, and it is unethical to use superior individual ability, labor and intellect to succeed, because that would be unfair to the dull-witted and lazy.  Those who have no power or ability have been exploited by individuals with power and ability, which is unethical.  The ethical way to exploit the public is as a group.  Everyone has equal value and ability, and it is wrong to favor individual performance based upon merit.  An individual’s worth is based on their ability to consent to the democratic process, and there are no natural leaders — leadership is a learned skill.

ACCT 151a, Financial Accounting:  All systems of accounting exist solely for the expressed purpose of paying the state.  I am compelled to violate my own right against self-incrimination by ‘voluntarily’ providing the state with a detailed log of all of my economic activity, so that I can ‘voluntarily’ send them a portion of that which I have earned by way of participation in commerce.  I must use Generally Accepted Accounting Principles and keep meticulous records, based on a system codified by a medieval Jesuit named Fra. Lucca Paccioli, which he derived from ancient Sumerian systems of accounting and transcribed in the margins of a bible.  Should I participate in commerce in any other manner, or fail to disclose exactly what I’ve done with every dime that passes through my hands, I will be fined or imprisoned.  Corporations (that is, ideas drawn on paper) are people who never die and have rights that supersede the rights of natural people.  This system exists for my benefit…somehow.

SOC 2, Introduction to Sociology:  The ‘sociological imagination’ is a process by which unique individuals are grouped and classified as either privileged or victimized.  Race does not exist biologically, and gender has nothing to do with sex — paradoxically, people of western European ancestry with testicles are inherently evil, unless they are homosexual and socialist.  The laws of the natural, biological world are immoral when applied to society, even though Sociology as a field proposed the theory of Social Darwinism.  Central planning is needed to control the actions of individuals, and a free society is inherently unjust.  Though the ‘sociological imagination’ has given birth to the greatest evils of human society — Totalitarianism, Eugenics, and Human Bondage, sociology is somehow the salvation of human civilization.  The ‘great sociologists’ include Marx, Sanger and Mao — three people responsible for the death of millions.  Enlightenment thinkers and individual liberty is wrong, and Thomas Jefferson’s ownership of slaves somehow invalidates the merit of any concepts he wrote on human liberty.

With all of that being stated — I pose a question to you, the great minds of notesonliberty.com:  To which schools within California shall I apply?  To which programs?  Is there any merit to a college education that has a legitimate basis in Art and Science, or is education within the college system simply a continued exercise in political indoctrination?  I write this in earnest — my thoughts aren’t in the least tongue-in-cheek.  Please, please, please, guide me to quality schools and baccalaureate programs for a libertarian thinker, so that I may not abandon my quest for a degree.

Help me, Obi-wan Kenobi.  You are my only hope.

At “Somewhat Reasonable”: Laws versus Regulations

Laws versus Regulations

Obama’s Utilitarian Foibles

The utilitarian insists that the morally right way to act is to promote the greatest good for the greatest number (of people but perhaps of all sentient beings). This goes for public policy as well! The goal overrides any individual rights, so if to secure it some people’s rights to life, liberty and/or property need to be violated, so be it!

For example, if to provide health insurance for elderly folks it is necessary to coerce young people to purchase health insurance, then coerce them! Never mind their right to liberty and property. Those are irrelevant, even though they are supposed to be unalienable rights no one may violate, not in the American political tradition.

Here, then, is a clear example of how the Obama regime departs significantly, in its political philosophy and program, from the uniquely American framework. This framework supports securing the protection of individual rights as the primary job of government. Read the Declaration of Independence and see for yourself. That is indeed the central feature of the American Revolution, with its Bill of Rights and its Constitution.

Not only does that render the country one that’s free – under which all citizens may live as they choose provided they do not violate anyone’s rights – but is responsible for the great prosperity of the country, its freedom from arbitrary government intervention in people’s lives. Even the public good or interest does not permit it. While this may appear to be a restriction that stops the country from achieving utilitarian objectives, the very opposite is the result! That’s because free men and women make the most productive use of their liberty.

The idea is that human beings are by their very nature proactive. They think of ideas that they will implement and these are usually good ideas, ideas their fellows can make good use of. This is the essence of entrepreneurship. They don’t just daydream but think purposefully, which is to say their ideas can be marketed to others. Out of this process arises the bustling economy of a country and, indeed, of the world.

So long as men and women are free to think creatively and productively, they will make sure their work will have payoffs, either economic or personal or even charitable. This is how a free society works, creates products and services, and leads to high employment to boot.

But the likes of Obama & Co. want to step in and regiment how free men and women act and they believe or pretend to know what others should do to be productive. And that means, usually, that they misguide the economy. (The most notorious recent example of this was all those five-year plans Stalin and his gang unleashed upon Russia and its satellite states, which brought the Soviet Socialist system to its knees!)

But Mr. Obama & Co. fail or refuse to grasp any of this. Shame on them!

Gun control: Centralized vs. Dispersed

Hayek made the point that the debate of whether to have central planning was not over whether or not there would be planning, but over who would plan for whom. This point has an analog in the debate over gun control. The option is not between reason and chaos, but between centralized (and therefore bureaucratic) control and decentralized control.

Just because you (i.e. your ideals as embodied in the Democratic National Convention) aren’t in control, doesn’t mean that nobody is. A decentralized gun control regime is one where individual gun owners are responsible for securing their weapons and criminals are responsible for crimes they commit. Will mistakes be made? In the imperfect world we live in that’s almost a certainty. Will the results be worse than one with government gun control? That’s an empirical question. Political gun control will raise the cost of getting guns, but it will also raise the relative criminal effectiveness of guns. It will save some lives but will also cost some. There will probably be fewer accidental deaths and suicides, maybe fewer crime-of-passion murders, but likely more “kill the witness” murders. If the penalty for using a gun in a crime is high, then the relative cost of killing a witness is low (for example, adding a life sentence for murder on top of a 30 year sentence for armed robbery is like getting a 30-year off coupon on that life sentence).

With 3D printed guns on the horizon (to say nothing of the “dangerous” lack of regulation of machining tools!) an effective political gun control regime would have to expand to all manner of regulation. This regulation would cost a lot! But, one might object, mere money is not worth as much as the lives that might be saved. But it’s not embossed portraits of dead white men that’s at stake. I don’t think we should let economists play God, but I think there is something to economists’ activity of considering what we might be willing to give up for a life.

Money is a medium of exchange; it’s not the end, just a tool we use to make life easier. The cost of regulation is real human well-being, time, and effort foregone. Taking someone’s money prevents them from spending it on what they otherwise would have. It also discourages them from investing further effort into producing something valued by others. Regulation also takes people’s (irreplaceable!) time; saving someone’s (irreplaceable) life provides some moral justification for this, but the cost must be acknowledged.

If (if!) there is a benefit to political gun control (that is if we judge the lives lost under a decentralized regime as morally superior to those lost under a political regime), then we should still consider the cost. In any case, we should all stop using the term “gun control” when we mean “political gun control.” A problem defined is a problem half solved, and the blanket term “gun control” mis-defines the problem.

Around the Web

  1. John Locke, President Bush and the Jesus Pushers
  2. (More) on the legality of the latest ObamaCare fix
  3. Israel is wigging out; One of the fairest assessments of Israeli foreign policy I’ve seen since my own musings!
  4. Has Barack Obama told the biggest (dumbest) lie ever?
  5. Are real rates of return negative? Is the “natural” real rate of return negative?

The French revolution

The French are rebelling in large numbers. They wear red wool hats as a signal of rebellion (elegant, this!) and to rally one another. I am told by French connections I trust much of the time that the rebellion is not along political lines, that it includes left, right and center.

There seems to be two main targets. First, on the surface, it began as a manifestation of opposition against an “ecotax,” a tax on big trucks intended to fight global warming. (Good for the French! See my many essays on this blog on the myth of global warming. More coming.)

Second, but this is an interpretation, there seems to be a widespread feeling that the French nanny state is finally coming to an inglorious end. This is an interpretation because the French media do not articulate clearly this link:

generous free social services→ high taxes→ stagnant economic life, high unemployment, poor everything, sense of doom, low fertility, etc.

Many ordinary French people are simply disgusted with the poor quality of everyday life in their country, and, especially, with low employment with no end in sight. Many envision no future for their children. Many of their children say they want to emigrate, leave France for good.

It does not mean that the French are poor, overall. They are much richer than say, Mexicans. Yet, impressionistically, subjectively, urban Mexicans are much merrier than urban French people. It seems to me that it’s because the ones, living with reasonable economic growth, have hope, while the others, living at a higher level but with no growth, despair.

You can’t fool all the people all the time. And the people can’t even fool themselves forever, not the French, not anyone!

Une culture politique du n’importe quoi.

L’autre soir, j’ai capté brièvement “On n’est pas couché”, une émission télévisée que j’aime assez bien. J’ai eu juste le temps d’entendre un des hommes les plus durables de la vie politique francaise de gauche dire à peu près ceci:

Le “big business” américain c’est arrangé pour désindustrialiser l’Amérique.

L’auteur de cette déclaration péremptoire: Jean-Pierre Chevènement, un socialiste qui n’a pas la réputation d’un extrémiste, il me semble.

Deux gros problèmes en une seule petite phrase:

1 On ne voit pas très bien comment cette abstraction; “big business américain” se serait arrangé pour effectuer quoi que ce soit de cette manière volontariste. Comment s’y prennent-ils au juste? Ils tiennent des réunions dans une arrière-salle de café en pendant un écriteau à la porte:

Big Business Only – No Admittance for Medimum-Size and Small Businesses” ? Et si ce n’est pas la cas, le big business n’aurait -il pas été surpris en flagrant délit de désindustrialisation criminelle? Les syndicats n’auraient-ils pas gueulécomme des putois; personne ne se serait plaint? Et ce projet obscène auraitéchappé à la censure des élections? (Ou bien, les élections americaines sont-elles toutes plus ou moins truquées?)

Le propos de Monsieur Chevènement ne veut litéralement rien dire. Ou plutôt si, il signifie quelquechose au second degré. C’est le genre de conte de monstres dont on se servait jadis pour forcer les enfants à rester dans leurs lits: “La-bas, plus loin, dans les collines, y’a le Grand Méchant Loup. Restez bien au chaud les petits.”

2 Ce n’est pas vrai. L’Amérique n’est pas désindustrialisée du tout. En fait, la production manufacturière américaine a atteind son niveau le plus haut l’année dernière (ou l’année d’avant, peu importe). C’est vrai qu’on fabrique ici moins de crayons et moins de pièges à rat qu’il y a quinze ans. Quel malheur! C’est un autre sujet, il vaut d’en parler. Il vaut plus qu’un phrase simpliste jettée à la sauvette.

Les Français sont soumis par leur gauche politique à un régime constant de bêtises sans liens avec la réalité, un réalité aujourd’hui pourtant facilement vérifiable grâce à l’Internet. M. Chevènement, par exemple, continue à dire n’importe quoi, comme si les faits n’étaient pas devenus beaucoup plus accessibles qu’au temps de sa jeunesse militante. Je me demande pourquoi les grandes publications francaise, à commencer par Le Monde, ne mettent que si rarement la pendule a l’heure. J’ai souvent l’impression, de loin, que les Français se soucient peu de la réalité.

Corrupção e Julgamento

Na última sexta-feira, em meio a um feriado prolongado, a população tomou conhecimento de um fato inédito: homens próximos a um ex-presidente, ainda ativos no jogo do poder, iriam para a prisão. De maneira surpreendente, os sempre ativos auto-denominados defensores das minorias não celebraram a decisão do juiz – figura polêmica e central no caso – Joaquim Barbosa. Além disso, os – também auto-denominados – “progressistas”, que sempre buscaram se identificar com algum tipo de padrão moralmente superior, calaram-se.

O silêncio, desde a sexta-feira, no país, por parte destes grupos é ensurdecedor.

O fato é surpreendente em si dada a raridade de casos em que corruptos – nas palavras da Lei – são efetivamente punidos. O Brasil que caminhava para um modelo liberal nos anos 90 (uma espécie de social-democracia centro-liberal, se permitem), nos últimos 12 anos, mudou sua direção para o modelo “Nova Classe”, para citar o clássico de Milovan Djilas.

As instituições formais e informais, como sempre centrais em qualquer tentativa de se falar em desenvolvimento econômico, redução de desigualdades, etc, não deixam de se fazer sentir aqui. É difícil dizer em que grau a decisão do STF altera alguma delas. Observamos uma certa acomodação do brasileiro com práticas “rent-seeking”, como dito no texto anterior. A ideologia da vez anestesia a revolta popular contra os abusos do governo e há, mesmo neste episódio, quem tente dizer que a prisão tem conotação política (numa espécie de alucinação criada por se acreditar nas próprias mentiras…).

Do lado das instituições formais, Joaquim Barbosa pode ter feito algo importante mas a pergunta é: o senso de impunidade dos políticos diminuiu com a decisão? A impunidade sobreviverá a Joaquim Barbosa? Vemos demonstrações gritantes de racismo sem o menor protesto das organizações anti-racistas financiados com dinheiro público (embora se digam não-governamentais) e não se observa, ainda, uma mudança de mentalidade do lado Law de Law & Economics quanto à importância de se diminuir a impunidade em prol  de uma sociedade de mercado (é bom lembrar que a revolta contra a impunidade pode ter fundamentos totalitários ou não).

A corrupção foi julgada e condenada pelo sistema legal e parte da sociedade parece acreditar (ou melhor, vende esta idéia, porque acreditar nisto é muita ingenuidade…) que isto tudo não passa de “perseguição política”. O discurso político nunca mudou e nunca mudará. Já a prática política, bem, esta é outra história.

Caso Hayek estivesse vivo e morasse no Brasil, o que ele diria? Difícil dizer. Mas pelos seus escritos, provavelmente apoiaria o juiz Joaquim Barbosa (libertários, por definição, não são racistas e nem apóiam a manutenção de privilégios arbitrários, gerados por decisões políticas), diria que ele está certo e, claro, lamentaria a falta de experimentação de nosso Judiciário.

De qualque forma, esta semana se iniciou menos suja no Brasil. Um pouco de alívio para se respirar não faz mal.

Keynes on Free Trade

I found this great quote from John Maynard Keynes earlier today:

In a regime of Free Trade and free economic intercourse it would be of little consequence that iron lay on one side of a political frontier, and labor, coal, and blast furnaces on the other. But as it is, men have devised ways to impoverish themselves and one another; and prefer collective animosities to individual happiness.

I found this in a journal article (pdf) on political decentralization and economic integration. The quote is from 1920 (the article is a couple of years old).

John Maynard Keynes’s system is collapsing in front of our eyes. It is doing so slowly, but it is collapsing nonetheless. What is interesting to note is that Keynesians share much of their ideology with libertarians. We are all liberals of one stripe or another, but the Keynesians won the public policy battles of the post-war period.

I’m not entirely certain I know what these policy battles were all about. Again, it seems like there is very little that we disagree with the technocratic Left about ideologically. Yet since the Keynesian system is collapsing it seems like now would be a good idea to go over how they got to technocratic planning from what is essentially the same starting point as the libertarian one. I think we would do well to exercise a great deal of our thoughts to thinking about this divergence.

A Warm Welcome

Hello dear readers (all three of you). I’ve been a bit behind in my introductions, and I apologize for that, so without further adieu I’d like to introduce Dr Claudio Shikida and Edmund Cotter to the team.

Dr Shikida received his PhD in economics from the Federal University of Rio Grande do Sul and now teaches economics at IBMEC-Minas Gerais. He has taught and performed research at numerous universities around the world, including UCLA. He also blogs at De gustibus non est disputandum.

You can find Dr Shikida’s first post here. We are honored to have him join with us in experimenting with a multilingual blog. Libertarianism is an international creed, and I think that exposing more people to more languages and more worldviews (worldviews based around the freedom of the individual, I might add) will help contribute in some small way to a better world.

Ed has a B.A. in Communications from George Mason University. He believes in the creation of a broad coalition of the Liberty Movement with greens, progressives, and technocrats. He supports the off-the-grid and sustainability movement as he believes it is the most tactical way to support libertarian causes. He is a small-scale produce farmer. The issues he considers most important are the Federal Reserve and the foreign policy in the Middle East. He is currently working on a book and several screenplays for the libertarian cause.

George Mason is, of course, is known for its free market bias among universities. I found Edmund plying his trade on the Young American for Liberty blog and thought he’d be a great addition to the team here. You can find his thoughts here.

O Desconforto da Pobreza

A pobreza é um desconforto. Quem é pobre, obviamente, sabe disto. Mas a pobreza é um desconforto para políticos também. Ainda bem que assim o seja, pois, caso contrário, perderíamos um incentivo para que os mesmos buscassem minimizar a pobreza afim de ganhar votos.

Entretanto, também é verdade que minimizar a pobreza significa que a mesma deixará de existir em algum momento, obrigando os políticos a inovarem na busca de novos problemas que possam, potencialmente, resolver, afim de ganharem votos. 

Nada disto é novidade ou contra-intuitivo. Qualquer estudante de Escolha Pública já pensou sobre isto por mais de cinco minutos. Mas, o desconforto da pobreza tem uma dimensão adicional quando se pensa no seu impacto no mercado de trabalho. Recentemente, o Brasil passou por um processo de crescimento desigual, no qual os pobres foram favorecidos. 

A classe média brasileira cresceu incluindo os mais pobres – agora um pouco menos pobres – e as consequências disto são várias. Por exemplo, o governo e seus políticos forçaram um aumento das regulações em diversos setores da economia com mais facilidade. Dado que os pobres enfrentam um sério problema de analfabetismo, populistas conseguiram obrigar o setor privado a se tornar mais desleixado com o ensino do português (melhor que uma lei, um sinal claro disto é um ministro dizer, por meio da imprensa, que ortografia é um detalhe “burguês”, quase com estas palavras…).

O setor privado também se curvou, na terra do rent-seeking tropical, e aceitou uma política que nem a ditadura militar nacionalista teve coragem de impor: a bizarra exigência de conteúdo nacional na TV paga e, mais ainda, em horários fixados pelo regulador. É quase como ouvir um político dizer: “se o pobre aprende inglês, vai ter acesso a mais cultura e poderá até emigrar, levando consigo nossos votos….não, precisamos dele em seu curral, para que possa garantir a continuidade de minha dinastia política”. 

Os anos 90 se foram e, com eles, o otimismo do consumidor. Outrora um orgulhoso brasileiro que exigia educação, cortesia e cumprimento de regras por parte dos prestadores de serviços (públicos ou privados), sob a mudança promovida pelos governos de esquerda – notadamente no campo da ética, com a “relativização” da corrupção – hoje o mesmo brasileiro pode ser quase visto como um ser quadrúpede, que ignora a falta de educação do prestador, os maus-tratos que recebe e, como um bom cidadão cubano (ou norte-coreano), acostumou-se com a ineficiência: é capaz de ficar horas na fila de um caixa de supermercado ou de uma repartição pública sem reclamar.

O país mudou. Os burocratas passaram a se achar como os verdadeiros donos da verdade. Sua arrogância média parece ter aumentado nos últimos anos. Falam do poder de mudar o mundo como se vivessem em um outro mundo. Os cidadãos passaram a aceitar a ineficiência como regra. Criam filhos sem educá-los. Não impõem limites – coisa de “neoliberal” ou de “conservadores” – e deixam a educação em último plano. O número de pais reclamando que o menino tem “muita prova para fazer” numa reunião de pais e mestres aumentou. Pais querem filhos que se divertem, mesmo que não saibam a tabuada. 

Estes mesmos pais aplaudem qualquer movimento de jovens (maoístas?) que saem às ruas pedindo por “almoço grátis”. Protestos contra a corrupção? Não, isto não os incomoda. É até perigoso porque, gostoso mesmo, é participar da suruba da corrupção com seu vizinho, seu amigo e com o burocrata cafetão da esquina. O “sexo nos trópicos” ganhou um novo significado: vivemos na orgia constante em que todos são de todos e ninguém é de ninguém. Uma perfeita negação dos princípios básicos de como se pode crescer e distribuir renda de forma eficiente. 

O desconforto da pobreza desaparece para o pobre que, graças ao mercado, pode sair do desconforto material com um emprego um pouco melhor. Ainda bem. Mas se não estudar mais, não conseguirá melhorar mais e apenas terá um alívio no curto prazo. É claro que o ex-pobre percebe isto melhor do que ninguém. Mas ele apenas despertou para o problema insolúvel – no curto prazo – que é o de demandar mais atuação do governo e, ao mesmo tempo, ter que pagar mais impostos. Ainda cheio de doutrinação socialista vinda dos bancos escolares, ele pensa que o governo pode gastar sem arrecadar. Ou pensa que apenas ricos devem pagar impostos. Não pensa com ciência, mas com ideologia. Nada que não possa mudar ao longo do tempo com educação (a verdadeira, não a doutrinação), leituras e, claro, com a própria experiência de vida.

A discussão é difícil e não tenho a solução para este problemas. Mas só há um jeito de começar isto: discutir os problemas institucionais do país. Instituições no sentido de Douglass North. Caso nada dê errado, é o que tentarei fazer por aqui nos próximos posts

Bom final de semana!

From the Comments: Is US Economic Stagnation A Myth?

The short answer is “yes.”

In the ‘comments’ section of Dr Delacroix’s recent article on the myth of American economic stagnation, Dr Amburgey, who works at the University of Toronto’s business school, dropped three arguments at my feet. I gave him three responses and he chose to address Issue #2 first. I will await his responses to Issues #1 and #3 respectively, but I want to make sure that we are all on the same page before we get to Issues #1 and #3.

At the heart of this discussion lies Dr Delacroix’s observation:

So, the implication here is that when it comes to the unequal distribution or real economic growth you have to do two things:

A You have to slow down and make sure you understand what’s being said; it’s not always easy. Examples below.

B You have to decide whether the inequality being described is a moral problem for you or, otherwise a political issue. (I, for one, would not lose sleep over the increased poverty of the stock exchange players in my fictitious example above. As for the lady typists, I am sorry but I can’t be held responsible for people who live under a rock on purpose.)

With this in mind I think it is important to point out that because what we are discussing brings out a lot of passion, it is easy for people to look at some numbers and believe them just on principle. For example, Dr Amburgey writes:

The numbers I use come from [here]. Median household income for 1975-2012 in constant (2012) dollars. There is a picture on the wikipedia entry I gave above [found here – bc] that charts GDP per capita and median household income. Go look at it. It’s pretty much flat for median household income. In other words pretty stagnant. Numbers wise in 1975 its $45788. In 2012 it’s $51017 (less than it was in 1989 by the way). Plug the numbers into my handy dandy econometrics software and regress median household income on year and the average annual change is $232.32 per year.

I suppose ‘stagnant’ is in the eye of the beholder but I’d say that’s 38 years of economic stagnation for the American economy as a whole.

Can you see why Dr Amburgey’s statement above is untrue? I can spot two big errors in his logic (feel free to correct me or add your own in the ‘comments’ section):

  1. Median household income has, on paper, indeed stagnated. Yet this says nothing about economic decline or stagnation in the US because median household income cannot tell us what such income has been able to buy in the past 40 years. That is to say, the measurement used by Dr Amburgey, and the ensuing numbers they produced, tells us nothing about the purchasing power of the American consumer.
  2. This second error is huge in my mind. Dr Amburgey and others are plainly stating that the American economy has been economically stagnate for 40 years. This is a good example of looking superficially at some numbers and then kowtowing to proper social norms. After all, Dr Amburgey’s handy-dandy econometrics software was around in 1973, right?

None of what I am arguing denies that the US economy sucks today. I am not blaming this on the Obama administration (though it has certainly kicked us while down). Nor am I denying that there are real structural issues that need to be addressed. What I am arguing, and what I think Dr Delacroix is arguing, is that the numbers and the issues used by Leftist factions to push their beliefs through the political process are based on faulty assumptions and even faultier logic.

I am still waiting for Issues #1 and #3 to be addressed. Dr Amburgey actually has access as an author on this blog, so maybe Christmas will come early for me this year and I’ll be able to read one of his posts here at NOL.