A privilege is a benefit not generally available to the public. There are two source of privilege, voluntary positions, and governmental subsidies. Suppose a person is the chief officer of a company, and the building has a washroom for the staff and one washroom only for the chief. The chief has the privilege of using the special washroom. It is a voluntary privilege, because the benefit is paid from the company’s revenues, obtained in the market from willing buyers, rather than forcing the public to pay for it. In contrast, if an enterprise obtains a subsidy from government, and the cost is imposed on the taxpayers, it is an unjust privilege. What kind is “white privilege”? I will examine this in the context of the United States of America. Consider easy voting, in contrast to difficult voting. Some state governments make voting difficult for some minority groups, such as limiting the ballot boxes, or imposing difficult requirements that are applied more strictly on the minorities. But easy voting is not really a privilege, since voting is a right held by the public. Blocking the voting is a deprivation of the right to vote. Thus voting by white folks is a right, not a privilege. The minorities suffer, not a lack of privilege, but the denial of a legal right. Now consider the case of members of a minority being mistreated by the abuse of power by the police. If a white person can go about his business with little chance of being shot by the police, where as a harmless black person has a much greater chance of being shot at, this is not a white privilege. This is rights-deprivation, a deprivation of the right to not be assaulted. All of what is commonly called “white privilege” is not a direct subsidy to being white, thus not a privilege, but the absence of rights-deprivation. When whites have on average ten times the wealth of blacks, this is not a white privilege. This is the result of the deprivation of economic rights suffered by blacks for 400 years. There is no governmental subsidy that whites are obtaining directly from being white. What is going on is rights-deprivation for minorities. There is, however, an indirect privilege obtained by whites relative to blacks. Land owners obtain an implicit privilege from government in the form of rent. The public goods provided by government, such as streets, security, and education, make locations more attractive and more productive. The goods thus increase the demand to be located there, which generates greater land rent and land value. As land gets inherited, those who obtained this rent privilege in the past then pass it on to future generations. European-Americans conquered the land from the native Indians, and then the labor value stolen from the slaves generated greater production and thus higher land rent generally. African-Americans shared little in this land value, because substantial amounts of land were stolen from black owners, and discrimination prevented many African Americans from obtaining real estate. Thus the greatest white privilege is the governmental subsidy that generates land value to whites who inherited wealth or obtained land value to a much greater degree than blacks. The way to eliminate this white privilege is to share the ground rent equally, with a levy on most of the land value. Of course society should also stop the rights-deprivation that keeps minorities poor and deficient in political power. But equal rights will not stop the greatest privilege, the generation of rent from public goods, and the way to stop that is to shift all taxation to land value. The greatest rights-deprivation that is taking place today is the taxation of wages, because engaging in labor and enterprise is a right, not a privilege. A tax shift will therefore simultaneously abolish privilege and stop rights-deprivation.
Author: Fred Foldvary
Separation of Children: an American Tradition
Many Americans deplore the forced separation of children from their parents when they attempt an unauthorized entry into the USA. The recorded crying of children traumatized from having their parents taken away is terrible to hear for anyone with empathy. Administrations excuse this by claiming that they are only enforcing a legally mandated zero tolerance, that this separation acts as a useful deterrent to immigration, and that the law is ordained by God.
The claim by those opposing this policy is that this cruel separation is un-American. But in fact, the forced separation of children is an American tradition. Under slavery prior to the end of the Civil War, children were sold separately from their parents. This action too was presumably a law ordained by God.
The separation of children from their parents was also imposed on native American Indians. Children were forcibly removed from their homes and put into boarding schools, the aim being the assimilation of Indians into Euro-American culture. Indian children were not allowed to speak in their native languages. Rather than being un-American, this physical and cultural separation was seen as an Americanization. Canada had a similar program for its Indians.
This separation continued the genocide of Indians by having a high rate of death. The misery that children felt in their familial and cultural separation was compounded by abusive treatment and a high mortality rate.
Since the current child separation is a continuation of past policies, we can expect similar outcomes: abuse, death, and suicides. Feeling no hope of ever seeing their parents again, confined to small cages, suffering from boredom, and constantly hearing other children crying, there could be substantial illness and even suicide in these detention camps. It would at first be covered up, and then exposed, and denied as “fake news.”
This anti-family policy is supported by many Republicans and conservatives. The conservative claim of supporting “family values” has now been shown to be fake. The real conservative stance is the imposition of traditional European culture and supremacy. Most of the migrants from Central America and Mexico are of native Indian ancestry. When they are rejected and sent back to their home countries to get killed by the violence from which they fled, this is in accord with the American tradition of European racial supremacy over native American Indians. If those seeking to immigrate were Norwegians, those families would not be split up.
Indeed, those subjected to forced family separation were races that were conquered and regarded as inferior. A large immigration from Mexico and Central America would repopulate the USA with native Indian “blood,” unacceptable to Euro-American supremacists.
Therefore the forced separation of native Indians from their parents and the rejection of further immigration is as American as one could get.
Declare Peace on North Korea!
The United States should offer a peace treaty with North Korea and offer diplomatic relations. The Korean War did not officially end. Let’s end it now.
The chiefs of North Korea have feared an invasion by the USA. They recognize that several heads of countries without nuclear weapons, such as in Lybia and Iraq, were overthrown. It is recognized that nuclear weapons that can be sent to the USA provide a deterrent against an overthrow of the state and even against an assassination of the Korean head of state.
The government of North Korea has evidently convinced the people there that the USA is their enemy and a threat. That propaganda would be less effective if there were a peace treaty.
So the US government should, together with South Korea, China, Russia, and the United Nations, offer to negotiate a peace treaty with North Korea.
The USA has negotiated with North Korea on a stoppage of its nuclear weapons project, but North Korea will not give up its weapons, and negotiations along with economic pressure will not be effective, since their greatest accomplishment has been their nuclear achievements, and the Chinese leaders seek to avoid an economic collapse.
Therefore a peace treaty with North Korea should not seek to end the nuclear status of the regime, but eliminate the deeper problem of mutual fears. The peace treaty would state that the U.S. recognizes North Korea as a sovereign country, and that there will be no invasion.
If the government of North Korea refuses to negotiate a peace treaty, then it will be seen that the hostility is being generated by North Korea, not the USA. The USA should then declare peace unilaterally. With the governments of South Korea and China, the USA would write a peace treaty and they would declare unilateral peace. The US would offer diplomatic relations, and if refused, would appoint an ambassador anyway, who would reside in China.
The US government would then broadcast to the people of North Korea, and send them messages via leaflets and computer files, that the USA has declared peace.
The opponents of a peace treaty could argue that this would leave North Korea with weapons that could reach US territory. But if the North Koreans will refuse to give up their nuclear capability, the peace treaty does not increase the danger. Indeed, the treaty, when agreed to by North Korea, would increase safety by prohibiting North Korea from providing nuclear materials and technology to others.
If North Korea accepts the peace treaty, the US would withdraw its troops from South Korea. Their presence is antiquated, since the threat would be from missiles rather than from an invasion by North Korean troops.
North Korea would gain four advantages from a peace treaty. First, assurance that the US is no longer a potential threat. Second, global diplomatic recognition. Third, removal of US troops from Korea. Fourth, the ability to trade freely with the rest of the world.
If the North Korean regime is not suicidal and seeks to maximize its well being, it would accept a peace treaty. But even if it does not accept a treaty, a unilateral offering would deflate its fears and propaganda.
This article also appears in http://www.progress.org
The Great Blessings of Cash
Paper money offers the benefits of anonymity, immediate payment, no identity theft, and no transaction charges. Government also benefits by printing notes with much greater value than the cost of the paper. However, some economists argue that cash has social costs that outweigh these blessings, and advocate the reduction and eventual elimination of paper cash. Several countries are planning to discontinue their largest currency notes. The European Central Bank is phasing out its 500-euro note; it will stop issuing new ones in 2018. The Scandinavian countries are reducing their paper cash.
Kenneth Rogoff, professor at Harvard University, has written a book, The Curse of Cash, in which he argues that the elimination of large-denominations of paper money would be good for society. Cash is a curse, he says, because criminals use the large bills, and because it limits the ability of central banks to have negative interest rates.
The use of cash by the underground economy is a symptom of bad policy, and the elimination of cash treats the effects rather than the causes. The reason economic activity goes underground is that governments have prohibited economic transactions.
Although some U.S. states have decriminalized medical marijuana, the substance remains illegal in federal law, which prevents the sellers from using the normal banking system. Therefore they use paper money. The prohibition of drugs generally drives the industry towards the use of large denominations, especially “Benjamins,” the US $100 bill depicting Benjamin Franklin. The elimination of Benjamins would make it less convenient to sell illegal drugs. The higher cost would raise the price of illegal drugs, but since the quantity demanded by addicts is not very responsive to a change in price, the drug dealers would find ways to do their transactions.
The legalization of drugs would eliminate the cause of the high demand for paper cash. Just as with alcohol, producers would then use the normal banking system.
The underground economy uses cash also for activities that are legal if taxes are paid on the income and sales. Again, the elimination of cash would make tax evasion less convenient, but not eliminate the incentives to evade having substantial amounts of gains taxed away. Rogoff thinks that if the government prohibits the legal use of Benjamins, the remaining notes would lose value, as they would no longer be legally convertible into small denominations and not be legally payable for goods. But large notes could circulate as a medium of exchange within the underground economy as an alternative currency. Moreover, there are underground currency traders in all countries that impose artificial currency exchange rates.
The problem originates in evadable taxation. The remedy that eliminates the cause is to make taxation unevadable. The main resource that cannot hide is land. The taxation of land value, based on its best possible use regardless of current use, cannot be evaded. The elimination of all other taxes would bring production, trade, and consumption above ground and eliminate the current high demand for paper cash.
Another “curse of cash” argued by Rogoff is that paper money prevents central banks from lowering the transaction rate of “interest” much below zero. Suppose a bank has a negative 5 percent charge on deposits, so that the depositor has to pay $5 per year per $100 deposited. Many people would withdraw the money and hold it in paper cash. Companies would offer to securely store your cash in insured vaults. If all notes above $10 were made illegal, the storage and insurance costs would rise substantially, and the banking system would be better able to have the negative rates.
The alleged benefit of negative rates is that, because the banks also pay negative rates on their deposits with central banks, financial institutions would scramble to loan out the money to investors who would pay a positive rate, or become partners in ventures.
It is bad enough now that savers, especially retired folks, are getting close to a zero return on their retirement savings. Negative returns on, say, large certificates of deposit would further ruin those who depend on income from savings. Again, the artificial device of pushing the nominal rate of interest below zero is an attempt to treat the symptoms rather than cure the causes.
Some blame a glut of global savings for the low rates of interest. But technology is marching forward, to artificial intelligence, robots, medical advances, better batteries, and many other frontiers. There is no shortage of possible investment projects. But governments world-wide stifle investment with taxes and restrictions. The USA, for example, has choked investment since 2008 with tighter banking restrictions and higher costs such as medical mandates.
What is needed is the ultimate supply-side policy, cutting marginal tax rates on labor and investment yields to zero, with a prosperity tax shift, replacing all other taxes with a single tax on land value. The land-value tax would also push land to its most productive use, stimulating productive investment and employment.
As to money, attempts to skew markets almost always fail, so it would be best to eliminate central banks and their manipulations of nominal interest rates. Let markets set the money supply and restore the positive natural rate of interest based on the human-nature tendency to prefer to have goods sooner rather than later.
Controlled market manipulations are failing, and so statist advocates propose even more artificial controls such as eliminating paper money and pushing interest rates below zero. But the further we get from economic freedom, the worse the outcome. Interest rates and money evolved in markets; let them return to their natural base.
Note: this article is also in http://www.progress.org under the title The Blessings of Cash.
Group Privileges No, Detriments Yes
The concept of “privilege” has become common in political discourse, while the term “detriment” is seldom used. One incurs a detriment, and is detrimented, when one is harmed, offended, displeased, or disadvantaged, unrelated to merit. One obtains a privilege, and is privileged, when a person or group is advantaged, benefitted, pleased, or favored relative to other groups, when the gain is unrelated to merit.
Some socialists emphasize “white privilege.” Suppose a white man is able to walk down a street without being harassed, while a black man will be stopped and questioned by the police. The socialist will say that the white man is privileged in being free of harassment. But actually, the ability of an innocent person to walk without being stopped and frisked is a natural right, not a special favor. The black man has suffered a violation of his natural rights, a detriment not suffered by the white man.
The socialist will also claim that there is “male privilege.” Suppose a man can walk down the street in peace, while a woman walking down the same street will be whistled at, aggressively approached, and may even be physically attacked. Does the man have a privilege? No, one has a natural right to be free of aggression. The woman suffers a violation of her rights, a detriment.
Women suffer many detriments because of social custom and culture, rather than governmental law. Wives tend to do more household work, even when they are working for wages as many hours as the husband. In some fields of work, men have more prestige and authority, unrelated to merit. The culture is not so much giving males privileges as it imposes on women various detriments.
Some detriments are mandated by law. In most places in the US, men are free to remove their shirts, while a bare-breasted woman would get arrested. The men do not have a privilege; the women have a legal detriment.
Female detriments can become tragic in cultures where male children are preferred. A boy is not privileged by not being aborted or killed. Rather, the girls suffer a lethal detriment. In my judgment, more progress can be made to stop this anti-female bias by calling it a detriment rather than saying the boys are privileged. Boys as well as girls have a right to not be murdered.
Female detriments have been lethal in India, where rape and violence has made headlines. But there is substantial rape in the US and throughout the world, which clearly makes being female a detriment in much of the world.
The trouble with saying there is a male privilege is that men do not feel privileged by not being attacked or disfavored. It should be normal to be left in peace, and to be respected. By identifying the problem as a detriment, we can then raise more awareness and support for remedies. We can also then better deal with the real privileges, favors to those who get subsidies from government because of political clout.
The language of privilege versus detriments influences policy. “Privilege” implies special favors that should be removed. “Detriment” implies harms and disadvantages that should be stopped. For the problem of infanticide, for example, it is not that privileged boys should be killed in an equal ratio, but that girls should not be murdered for being female.
Let’s speak less of racial and gender privilege, and more of detriments!
Objective Moral Rules
“Moral realism” is the proposition that objective moral rules exist. A moral rule assigns a moral value (good, evil, or neutral) to an act done by a person. A moral rule, such as “theft is evil,” is intended as a fact.
Moral realism is non-nihilist and non-relativist. Nihilists and relativists believe that no act is inherently good or evil, that there is no morality beyond personal and cultural beliefs. Moral realism is based on an ontology, a way to show that an objective morality exists.
The existence of an objective and universal ethic cannot be based on intuition. Intuition consists of ideas believed without conscious thinking. What people think of as intuition is heavily influenced by the prevailing culture. One person’s intuition may tell him that gambling is bad, while other may think that gambling is harmless fun.
Many ontologies of morality have been proposed. The one I think is warranted in reason is the natural moral law proposed by John Locke, although he did not present a derivation. In my judgment, the ontology consistent with Locke is as follows.
1. There are criteria that are necessary for the existence of a universal ethic. The ethic has to be universal to all persons, comprehensive to all acts, non-arbitrary in its premises, and logically consistent. If one presents an ethic which fits these criteria, then the universal ethic exists.
2. The premises of natural moral law are the biological independence of individual thinking and feeling, the moral equality of persons, and the existence of a personal ethic in each person’s mind. The first two were proposed by John Locke in his Second Treatise of Government. The equality premise is based on the common observation that there is in human nature no inherent basis for one group of persons to be superior masters over a second, inferior, group.
3. The derivation of natural moral law, as expressed by the universal ethic, provides rules for the three moral values (good, evil, and neutral). Good acts are welcomed benefits. Evil acts coercively harm others, as invasions, in contrast to merely offensive acts that depend only on the beliefs and values of those affected. All other acts are morally neutral.
Those who reject moral realism ask about the fact-value problem, the proposition that one cannot derive a moral value from any observed fact. The answer is that the universal ethic does not create any values. The values are held by individuals, in accordance with the third premise, the existence of personal ethics. The universal ethic is a production function which inputs individual moral values (good, evil, and neutral) and transforms them into universal ethic moral values. For example, if a theft takes place, the individual moral value is that it is evil, and since the theft is an invasion, a coercive harm, this individual value becomes a universal ethic value.
If, in contrast, a person observes someone who is walking naked on his property, and judges that to be evil, the universal ethic inputs that value and makes it neutral for the universal ethic, since that is an offense rather than an invasion into another’s property.
Therefore, the natural moral law does not generate values from facts, but rather, produces natural moral law values by inputting personal values and then applying its rules to output universal-ethic values.
Some skeptics reject natural-law moral realism because its premise of personal equality cannot be proven true the way that, say, the law of gravity is shown to be true. The proposition that there is in human nature no inherent master/slave relationships can be observed and inferred, but the conclusion is not apodictic, i.e. absolutely certain. However, the alternative is either supremacism, the alleged superiority of some religion or creed, or else nihilism, the absence of any transcendent morality, and either one leads to war.
The purpose of the universal ethic is the moral basis of proper governance, and since to my knowledge, nobody has come up with a superior moral idea, the ontology is good enough for the practical purpose of providing social peace and harmony with nature.
Is there an Implied Consent to be Governed?
Implied consent means that what one may or may not do is understood without having to ask or say explicitly. In personal relationships, having established some interactions, it is implied that one may continue doing these. If a store is open for business, it is implied that customers may enter, and also that the customers will pay for what they take.
Implied consent has also been applied to the relationship between a resident and the government. The idea is that a person may not agree with some policies, but benefits from others, so it all evens out, and therefore there is an implied consent by all regarding government policies. Some say that if one does not move out, one implicitly agrees with the laws.
Being under the jurisdiction of a government is a major “state” of affairs. We might consider what Lysander Spooner, a 19th-century American philosopher, had to say in his book No Treason: The Constitution of No Authority.
“Neither law nor reason requires or expects a man to agree to an instrument, until it is written; for until it is written, he cannot know its precise legal meaning. And when it is written, and he has had the opportunity to satisfy himself of its precise legal meaning, he is then expected to decide, and not before, whether he will agree to it or not. And if he do not then sign it, his reason is supposed to be, that he does not choose to enter into such a contract.”
In the laws of the United States and many other countries, important relationships are required to be in writing and signed. When one buys real estate, the new buyer must sign a contract. When one gets married, there is a signed agreement. Being under the jurisdiction of a government is just as important.
When one buys a unit of a condominium or homeowners association, one is presented with the community documents, the master deed and bylaws, and the buyer signs an agreement. But this is not done when one moves into a governmental jurisdiction. Why not? Spooner says:
“The most they can say, in answer to this question, is, that some half, two-thirds, or three-fourths of the … adults of the country have a tacit understanding that they will maintain a government under the Constitution; that they will select, by ballot, the persons to administer it; and that those persons who may receive a majority, or a plurality, of their ballots, shall act as their representatives, and administer the Constitution in their name, and by their authority.”
But, says Spooner:
“No body of men can be said to authorize a man to act as their agent, to the injury of a third person, unless they do it in so open and authentic a manner as to make themselves personally responsible for his acts. None of the voters in this country appoint their political agents in any open, authentic manner, or in any manner to make themselves responsible for their acts. Therefore these pretended agents cannot legitimately claim to be really agents. Somebody must be responsible for the acts of these pretended agents; and if they cannot show any open and authentic credentials from their principals, they cannot, in law or reason, be said to have any principals. The maxim applies here, that what does not appear, does not exist. If they can show no principals, they have none.”
Although Spooner thought that his arguments against a governmental implied consent supported anarchism or voluntary governance under explicit contracts, there is another possibility. Coercion is the opposite of consent, and no consent is needed to defend against invasions. Therefore if there is a government whose sole function is to protect people from coercive harm, and that government does not itself commit coercive harm both in its laws and its public finances, then no consent is needed.
The function of natural moral law is the proper governance of humanity, to prohibit coercive harm. Therefore, as I wrote in Soul of Liberty, “There is no moral authority for government other than to enforce the Universal Ethic.” If government only enforces natural moral law, as expressed by the Universal Ethic, then no consent is needed, regardless of how the governors are selected, even if the governor is a dictator, as there is only protection from coercive harm.
However, in human reality, there is no perfect governance, and people disagree on the details of law, and so, as a practical matter, if we take human equality to its logical conclusion, no person should be above any other. That implies a voluntary governance among peaceful persons, enacted with the explicit consent of signed contracts. As to those who choose to not be peaceful, since they do not honor consent, they implicitly agree to be punished. That is the real implied consent in governance – those who coercively harm others imply that they may be resisted, put on trial, and punished.
This article also appears in progress.org under “Implied Consent.”
Down All Your Markets
The US stock market had its worst ever initial trading weeks in 2016. Speculators are alarmed by the fall in the stocks of China. The economy of China has been growing more slowly, if at all. Also, most of the economies of the world are in growth recessions, a reduction in the rate of growth. The US dollar is high relative to other currencies, which reduces exports.
The government of China has yet to learn that interventions into financial markets often backfire. The Chinese chiefs have halted stock transactions when the market average falls to seven percent. They also have not allowed sales by investors who own more than five percent of a company. One problem with financial “circuit breakers” – a halt of trading – is that when stocks start to fall, speculators will panic and sell more quickly before trading halts. Restrictions on selling stocks create uncertainty when buying them. A speculator will fear being unable to sell shares later.
There is enough inherent uncertainty in markets without government adding to it. Uncertainty makes it important to let the market set the prices. Markets are a discovery process in which prices and quantities evolve through the bids of buyers and offers of sellers. When government interferes, we cannot know the price. Since the leaders of China have decided to have a market economy in goods, input factors, and financial assets, they should allow the market to do its job of setting the prices.
When I visited China three times, I saw a forest of cranes in all the cities I went to. Construction has driven the economy of China, along with exports. But, similar to real estate booms elsewhere, this construction was propelled by governmental policy. Throughout the world, cheap credit and fiscal subsidies to real estate have fueled unsustainable speculation.
Now China has much excess building capacity, and the halt in construction reduces related goods such as furniture and raw materials. The slow-down in China and sluggish growth elsewhere has resulted in a collapse of commodity prices.
The chiefs of China seek to move the country’s economy towards more domestic consumption. But they interfere with domestic spending by imposing a value-added tax of 17 percent on most goods other than real estate. The government of China probably chose to impose a VAT because the World Trade Organization allows the VAT to be subtracted from the price of exports, unlike an income tax. But Chinese consumers suffer a higher cost of living.
The Chinese leaders could have instead enacted LVT, land-value taxation, which would not add to the cost of goods. A tax on land value reduces the purchase price but not the land rent, so also not the price of goods. A tax on most of the rent or land value would stop the land speculation that has made a few people rich at the expense of the public.
The government of China still maintains tight control over the banking system. All the markets – real estate, financial, goods – would be more efficient if interest rates too were set by the market supply and demand for loanable funds. Of course the central banks of Europe, Japan, and the USA also are not letting their markets set the money supply and interest rates. But common practice does not imply optimal policy.
I don’t think the big drop in stock market averages imply impending economic doom. For 200 years, the US economy has had a real estate cycle of an average duration of 18 years. The current cycle began with the depression of 2008. The recovery has been slow, but the expansion has continued as employment and output have grown. Real estate construction has contributed to the expansion, and land values have recovered. The economy seldom has a recession while interest rates and commodity prices are low.
The economy of China has some severe long-run problems, but its economy is still developing and catching up. The government seems ready to let the currency trade more freely, and the coming acceptance of the currency (the yuan or renminbi) into the “special drawing rights” of the International Monetary Fund will boost the economy.
In the short run, the US stock market could fall some more, as markets often overreach, but over the next few years, financial markets will be consistent with the economic reality of restored world-wide economic growth, if there are no major destructive attacks. What we should be worried about is the unsustainability of debt and the next real estate speculative boom. The next economic disaster is about a decade into the future, and nobody is yet alarmed about that.
Natural Rights and Taxation
A moral right is a correlative or flip side of a moral wrong. The right to have X means that it is morally wrong or evil to deny the holder from having X by stealing or destroying it. The right to do X means it is evil for others to forcibly prevent a person from doing X.
People have the natural right to do anything that does not coercively harm others, and the natural right to be free from coercive harm. Natural rights are based on natural moral law, as expressed by the universal ethic. By the universal ethic, all acts, and only those acts, which coercively harm others are evil. I and others have written on natural moral law, easily searched on the Internet.
A legal privilege is a special power or income granted to particular people because of their political status. A king is privileged because of his inheritance and laws regarding this. A slave owner is privileged to own another human being. There are no privileges in natural moral law, since one of the premises from which the universal ethic is derived is human moral equality, an equality of moral worth, implemented as equality before the law and equal legal rights.
In the Constitution of the United States, the 9th Amendment states, in its entirety, “The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.” The other rights are common-law and natural rights. Therefore the U.S. Constitution recognizes natural rights, and all laws in the USA should be consistent with the 9th Amendment, although in practice, the 9th is ignored and not widely understood.
This brings us to two court cases. In Murdock v. Pennsylvania, 319 U.S. 105 (1943), the Supreme Court stated that a law requiring solicitors to purchase a license was an unconstitutional tax on the Jehovah’s Witnesses’ right to freely exercise their religion. The Court ruled that “The state cannot and does not have the power to license, nor tax, a Right guaranteed to the people,” and “No state shall convert a liberty into a license, and charge a fee therefore.”
In another case, the Court ruled similarly, that “If the State converts a right (liberty) into a privilege, the citizen can ignore the license and fee and engage in the right (liberty) with impunity.” (Shuttlesworth v. City of Birmingham, Alabama, 373 U.S. 262).
The principles behind the statements of the Court have to apply generally. The federal and state governments may tax privileges, but may not tax a natural right. Since people have a natural right to engage in labor for wages, taxes on wages violate natural rights and therefore the Constitutional rights recognized by the 9th Amendment. Taxes on trade and goods also violate natural rights, which is why state laws claim, incorrectly, that, when they impose a sales tax, they are taxing the privilege of selling goods. (For example, it is written that “California assesses a sales tax on sellers for the privilege of doing business in California.”)
If natural rights are violated by taxing wages, the same applies to the products of labor and the income from the products. Thus a person has the natural right to fully keep and trade produced goods and the financial counterparts as shares of companies and their incomes.
The U.S. Constitution does provide government with the power to tax. Article I, Section 8, states, “The Congress shall have power to lay and collect taxes, duties, imposts and excises.” The 16th Amendment restricts the income tax to being levied as an indirect tax, but otherwise did not alter or add to the powers of Article I.
There is an apparent contradiction. Article I empowers government to tax imports and goods, and other taxes, but the 9th Amendment prohibits taxing acts which are natural rights.
Clearly the founders did not oppose taxing as such. But the letter and spirit of the law have to go beyond the intents of the founders. The Constitution also did not explicitly outlaw slavery, despite its recognition of preexisting rights. When slavery was later abolished, this was in accord with justice as prescribed by natural moral law and the 9th.
If a parent says to a child, you may go outside and play, and also says, do not throw rocks at the squirrels, the permission to play does not imply that anything goes. Thus when the Constitution authorizes taxes, but then, in an Amendment, says, by implication as recognized by the Supreme Court, that government may not tax a right, then the power of taxation has been constrained.
The U.S. Constitution creates an imposed but limited government, and the founders recognized the need for revenues. The sources of government revenue boil down to two original sources: labor and land. There is human exertion, and there is what nature provides.
Since human exertion and its gains are a natural right, the only source left is nature’s resources, land. Thus the moral question is whether the ownership of land is a natural right. This issue is, of course, much disputed. In my judgment, the moral law of property is, “To the creator belongs the creation, and where there is no creator, the benefits belong to the people in equal shares.” The universal ethic is based on the premise, from the nature of humans being, as John Locke wrote, “all equal and independent,” the independence being that thinking and feeling occur individually.
The benefits of land are measured as its economic rent. Therefore, the rent belongs to the people, and by natural moral law, the individual right of the possession of land is conditional on paying the rent to the rightful owners, the people. A tax on land rent does not violate the natural rights of the title holder.
Although the rent really belongs to the people and not to an imposed government, since government is already an imposition, it violates natural rights the least when rent is used for public revenues to pay for public goods that generally benefit the people. The people receive the rent in kind rather than in cash.
If consistently implemented, the 9th Amendment, backed up by the Murdock case, implies that the income tax as well as excise taxes should not tax the right of labor and trade. The greatest challenge of humanity is to recognize the full spectrum of human natural moral rights.
A similar article by me appears in progress.org as “Rights and Privileges”.
The Dangerous Inequality Meme
The inequality of wealth and income has become a meme loaded with danger. A “meme” is an idea that gets propagated like genes in biology. Economic inequality has long been a topic of interest, but during the past few years, and especially during the 2015-2016 American elections, the inequality meme has erupted into a major political issue among those who identify as progressive, liberal, and socialist.
The facts about inequality in the USA are clear. Since 1970, income inequality has increased. As national income has grown, most of the gains have gone to the rich. Average incomes have even dropped since the recession of 2007-2009.
During the 1800s, the first economist to analyze equality and inequality was Henry George. Karl Marx had touched on economic inequality by saying that the surplus from production was due to labor but was captured by the capitalist, the owner of the firm and its tools. Thus, the proletariat, the workers, stay poor and the capitalists get rich, creating inequality. But Marx and his followers focused on the conflict between labor and capital rather than the inequality.
Henry George pointed out that the surplus from production is not in wages, nor in business profits, but in land rent, which is a pure surplus, since land has no cost of production. George showed how land rent captures the gains from economic progress, creating the inequality in wealth and income between workers and the landowners. Competitive firms make normal profits, which has no surplus. Of course monopolies can capture surplus also, but the profits from entrepreneurship are a bonus to society, rather than a social problem, as entrepreneurs drive innovation and economic progress.
Unfortunately, when the classical economics of the 1800s turned into the neoclassical doctrines of the 1900s, both by design (in opposition to the Georgist remedy of taxing land value) and for mathematical convenience, land was dropped as an input factor, and mainstream economics became the two-factor production function Q=f(K,L). It is illogical that land rent gets included in the distribution of income in the return on K, but excluded on the production side, as the models are based only on the two inputs, labor L and capital goods K. This contradiction is not questioned by graduate students in economics, who are too busy learning the calculus of “math econ” to bother asking if the whole system makes sense.
Therefore the inequality meme is now blended with the labor-capital meme, ignoring the real source of economic inequality, unequal land tenure. Politicians exploit the all-too-real economic inequality with a superficial, simplistic, and dangerous remedy: tax the rich and transfer the funds to the poor. Of course governments are doing that already, and that has not reduced inequality, but the welfare-statists insist that government should do more of it.
Conservative opponents of greater redistribution point out, correctly, that higher taxes and takings from the rich will stifle entrepreneurship and savings, reducing the economic growth. But other than eliminating some of the tax deductions and generating more growth by reducing the top tax rates, the conservatives have no effective remedy. Their call to flatten the tax rates play into the political agenda of the redistributionists who call for higher, not lower, tax rates on the rich.
The danger in the inequality meme is the confiscation of the wealth not just of the rich but also of the middle class. A family that spent all its income and now has no wealth would be given welfare aid, while the family with the same income but frugally saved its income for retirement or to provide for their children would have their wealth taken away, not just by ordinary and predictable taxation, but by a sudden taking, as happened in Cyprus in 2013. Government chiefs facing a debt crisis can kill two birds with one stone: confiscate savings and use some of it to pay off debt and the rest to transfer to the poor. Such confiscation has been suggested by the International Monetary Fund, which lends funds to countries bogged down in debt. In its publication Fiscal Monitor Report, the IMF stated (pdf):
The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair).” There we have the proposition that such confiscation of wealth can be “fair” (49).
This IMF capital-levy proposition was presented in Forbes with the title, “The International Monetary Fund Lays The Groundwork For Global Wealth Confiscation.” The Wikipedia article on “capital levy” shows that this meme is getting some traction, such as by Germany’s Bundesbank. The concept of a capital levy, confiscation of savings and investment, comes from the meme of economic inequality that looks only at the superficial existence of unequal wealth and not to the source.
It has been well pointed out by British journalist and economist Fred Harrison in his Youtube video “Ricardo’s Law: the Great Tax Clawback Scam” that while the rich pay much in taxes, many of them get the tax back, as a clawback, from government’s public goods, which generate higher rent and land value.
The effective and equitable remedy for economic inequality is not redistribution but the proper initial distribution of income. Wages and capital yields should be kept by the workers and investors, while land rent should be equally distributed either as cash or in public services. Public revenue from land rent would equalize income while promoting growth and raising wages. We need to bring land back into economic discourse, but that requires penetrating the appeal of superficial thinking. That’s what Henry George tried to do, and the Georgist meme had reached up to the heads of state in China, Great Britain, and Russia (after the first revolution with Kerensky), but World War I blasted the impending tax reforms to bits.
The candidates who now rant against inequality, the corporations, and the billionaires, even if they don’t win the election, will influence policy and generate calls for more redistribution and, perhaps in the next financial crisis, a capital levy. While alarmists often exploit impending doom for their own gains, sometimes they are right.
This article is also in progress.org under the title “Tyrants Exploit Income Inequality”
[Ed. note: I added tags, categories, and links, and patched up some grammar – BC]
Critics of Markets have Intervention Denial
There is a meme, an infectious idea, that has spread like a mental plague among advocates of greater governmental intervention. This idea is “intervention denial,” the claim that the US and other developed economies have had complete economic freedom. The critics of markets usually use deliberately mind-numbing language such as “capitalism,” although sometimes they do claim more starkly that today’s economies are a “free market” and practice “free banking” and “free trade.”
Many examples of intervention denial can be found by searching for the submeme “unbridled capitalism” as well as “greed” combined with “capitalism” or statements such as “people over profits.” For example, there is a web article titled “Unbridled Capitalism and the Blight of Greed” which defines “capitalism” as “the economic system in which the pursuit of wealth remains in the control of individuals, free from government regulation or interference.” The article states that “Capitalism, after all, suffers from a fatal flaw – Greed.” Intervention denial has infected well-meaning people in high places, such as the Pope, who declared, “Unbridled capitalism has taught the logic of profit at any cost.”
“Denial” in this context means the refusal to believe in evidence. For example, Holocaust denial is the refusal to accept the enormous evidence of mass murders by the Nazis. There are science denials of various sorts. Intervention denial is one of the most destructive memes in the mental universe human beings live in, because intervention denial blocks effective solutions to social problems.
Consider the claim that the US has had destructive “free banking.” This false meme originated in historians who called the US banking system prior to the civil war “free banking,” even though the banks were tightly controlled by state governments, such as prohibiting banks from establishing branches beyond the state. In true free-market money and banking, there is no restriction or imposed cost on any currency, account, or financial institution so long as its operation is honest and peaceful.
The intervention deniers claim that the USA has a free market in money and banking, disregarding the obvious facts that the US financial system is tightly regulated by the Federal Reserve (“the Fed”), the FDIC, the SEC, and the US Treasury Department. These institutions and Congress bailed out the financial system after the interventions caused the Depression of 2008, as they did with previous busts. The US dollar and interest rates are controlled by the central planning of the Fed. This is the system that intervention deniers call a “free market.”
In a truly free market, there would be no restriction, tax, subsidy, or mandate that alters honest and peaceful human action. Those who claim the US economy is “unbridled” talk as though there were no regulations nor any taxation, let alone subsidies. The extent and effects of regulations on the US economy can be read in the study “Ten Thousand Commandments” published by the Competitive Enterprise Institute, as well as the regulations data base of the Mercatus Center at George Mason University. The economic damage done by intervention can also be read in the on-going study “Economic Freedom of the World,” at freetheworld.com.
How can an economy be “unbridled” if enterprise, consumption, and produced wealth are all afflicted with heavy taxation? Intervention deniers talk as though there were no income tax, federal excise taxes, state sales taxes, value-added taxes, and taxes on buildings and equipment. A truly free market would also not have any subsidies, such as the billions of dollars now going into the big farms, along with other corporate welfare.
All these interventions – taxes, subsidies, restrictions, and mandates – distort prices, wages, interest rates, profits, and quantities. The social problems we can observe: unemployment, low wages, unaffordable housing, slow growth, recessions, pollution, can be traced back to government intervention. Consider pollution, for example. Intervention deniers claim that “capitalism” and “greed” result in pollution and environmental destruction. But a truly free market is free of subsidies. When firms and their customers do not pay the full social cost of the products, as the social cost of pollution is imposed on others, that is an implicit subsidy. In a truly free market, with full enforcement of property rights, pollution is treated as a trespass, an invasion of others’ property, requiring full compensation. The problem is not that firms and markets are unbridled, but that ecological destruction is subsidized. The subsidies combine with a legal system that bridles the population with a legal inability to sue the polluters for damages.
There is indeed a bridle to a free market: laws prohibiting force and fraud. A pure market economy consists of voluntary human action. The bridle is on thieves, not on peaceful and honest producers, traders, and consumers.
When interventions are pointed out to the deniers, they respond that these taxes, restrictions, subsidies, and mandates are of little significance. This is similar to Holocaust deniers who respond that perhaps a few Jews and Gypsies were murdered by the Nazis, but not on the large scale that they deny. Intervention deniers do not deny the existence of the Federal Reserve system, but they claim it is a private free-market organization. Deniers of all sorts reject data and other evidence, use undefined terms such as “capitalism” and “greed,” and point to their favored authors, articles, and data as though these present unbridled truth.
“Greed” means wanting and taking more than one morally deserves. A person morally deserves that which is earned by labor and received from voluntary gifts. The honest acquisition of wealth may be avarice, but not greed. Thieves are greedy, and those who indirectly steal by getting government to do or protect their forced taking are also greedy. Intervention denial is ultimately a refusal to think it through, to fully understand the ethics, politics, and economics of human life.
Why You Should Avoid “Capitalism”
“Capitalism” means the sector of an economy in which markets determine prices and quantities. In a “capitalist” system, both the market for goods and the market for inputs are based on voluntary action within the constraints of governmental interventions, namely taxes, subsidies, restrictions, and mandates.
The term “capitalism” was first used in 1854 by William Thackeray in his novel The Newcomes. The term “capitalist” was used previously to refer to an owner of capital goods. The term was popularized by the German sociologist Max Weber as well as by socialists who use the term to condemn private enterprise as a system that exploits labor. In response, advocates of free markets use the term to mean private enterprise and to praise the concept of a free-market economy.
Confusion sets in as adjectives apply the term to markets with governmental interventions or to governmental enterprise, as in “state capitalism,” “crony capitalism,” “welfare capitalism,” “monopoly capitalism,” and “taxpayer-financed capitalism.” Thus “capitalism” is used to refer to current mixed economics (mixtures of markets and governmental intervention) and also to the concept of the pure free market. With the bad connotations as used by socialists, some advocates of reforms then present their approach as an alternative to “capitalism”.
Critics of markets use the term “capitalism” for propaganda by slyly shifting the meaning with this argument: 1) economies today are capitalist; 2) economies today have unemployment, poverty, and pollution; 3) therefore, capitalism causes these problems. The first statement uses “capitalism” as a label for current mixed economies, while the third one implicitly shifts the meaning to private enterprise or free markets.
The term “capitalism” is inherently confusing, since economies have three inputs: land, labor, and capital goods, and there is no logical reason to emphasize capital, unless one is going beyond the definition by claiming that capital dominates labor.
The term “capital” is itself ambiguous, as it can refer to any asset, including funds, capital goods, and reputation. It would be clearer to use the term “marketism,” but that word has already been adopted to mean the advocacy of free markets. “Marketocracy” is used by a mutual fund and portfolio web site. The term “market-priceism” is not yet in use, and would be a clearer term than “capitalism.”
An alternative to market prices is communism, in which goods are shared in a community such as a family. Another alternative is state socialism, in which government plans and controls production and resources, as well as the distribution of goods. Most economies today are mixed, consisting of a market sector and governmental impositions that alter the outcomes.
Economic discourse would be clearer if we used more precise terms. Instead of using “capitalism” to mean economic freedom, use “free markets,” “pure markets,” “private enterprise,” and “laissez faire.” Instead of using “capitalism” or “crony capitalism” for the actual economy, use “mixed economy” or “interventionism.” Instead of using “capitalism” for the exploitation of labor, use “capital domination.” For an economic system in which inputs and products trade in markets, use “market-priceism.”
Max Weber used terms such as “the development of capitalism” and “the evolution of capitalism.” This implies more than market-priceism. Weber analyzed economic development with private enterprise and market prices. He wrote of how such development could be strangled by the political structure. It would be clearer to call this “market-based development.”
Like the classical economists, Weber recognized the distinction between capital goods and land. He referred to “landlordism” and “prebends,” income from rent. In his essay “Structures of Power,” Weber wrote of land being an object of forceful acquisition, with ground rent frequently being “the produce of violent political subjection.”
In his essay “The Protestant Sects and the Spirit of Capitalism,” Weber wrote of some religions promoting a “rational way of life” which “paved the way for the ‘spirit’ of modern capitalism” and the ethos of the individualism of the middle classes with their small businesses. With due respect and admiration for Max Weber, this concept is better referred to with terms such as the spirit of private property, of competitive private enterprise, and of free markets.
The term “capitalism” is now so deeply dug into the global culture that it is here to stay. But those who wish to clearly understand and analyze economics would be wise to avoid the term and instead use words such as “mixed economy,” “pure free markets,” and, if it pleases you, “market-priceism.”
Greece Needs a Radical Transformation
Having rejected austerity with the “no” vote on the referendum, Greece now sits on the edge of an even worse recession and economic collapse, unless the lenders write off or postpone the debt payments even further. The problem is that the Greek politicians have not provided a program of major policy reforms.
Only with radical changes could Greece rise like a phoenix from its economic mess. These are the measures which could quickly make Greece the most prosperous economy on earth.
1. Amend the constitution to eliminate all restrictions on peaceful and honest enterprise and human action. There would be free trade, without tariffs and quotas, with all countries.
2. Leave the European Union.
3. Crank up the printing presses and give each Greek citizen 10,000 new-drachma in paper currency. The new-drachma would be payable for taxes at a one-to-one ratio to the euro. One new-drachma would also pay for first-class postage to European countries. No new-drachmas would be created after this distribution except to pay previously-existing governmental pensions. Banks would be free to issue private currency redeemable in new-drachma.
4. Immediately replace the income tax, the value-added tax, and all other taxes with a tax on land value and a pollution tax. Replace judicial environmental restrictions with the levies on pollution based on the measured damage. Enable citizens to sue polluting firms that are not paying a pollution tax based on the damage. Allow real estate owners to self-assess their land value with the condition that the state could buy their land at their assessment plus 25 percent, and lease it back to the owner of the building at current market rentals.
5. Decentralize all government programs and bureaucracies other than the military to the 13 provincial “regions.” The Greek constitution already prescribes that the administration of the country be decentralized. The land value tax would be collected by the regional governments, which would then pass on a portion to the national government.
6. Pay the foreign lenders with futures contracts payable in new-drachmas maturing in 2025.
Greek democracy was restored in 1974. The politicians sought votes by legislating a welfare state funded by borrowing. With radical reforms, national welfare programs can be phased out as employment increases and programs are shifted to the regional governments.
A prosperity tax shift would bring in massive investment and quickly eliminate unemployment and tax evasion. Billions of euros held in foreign banks would come back to Greece to finance investment and production.
Without radical reforms, Greece will be stuck in debt, austerity, and poverty. Radical reforms are the only way out.
The Tyranny of Majoritarianism
Where did the concept of “majority rule” come from? Why should any majority rule over any minority?
Of course the idea of protecting minority rights also exists. It is accepted in the civilized world that minority religions, ethnicities, and cultures should be respected. So evidently the global belief in majoritarianism is not absolute. But overall, the prevailing global political culture in democratic societies is majoritarian. The party which has some majority in an election gets its leaders in the government, and it is able to impose its policies on everybody.
In a voluntary club, it seems natural that the leader be elected by the majority. Everyone in the club agrees about the mission of the club. Suppose it is a hiking club. It does not matter too much who the leader is, so a majority vote seems like the best option. Also, in deciding which location to hike in, majority rules seems sensible. Majority rule provides greater utility than minority rule, and there is general agreement that making more people happy is better than if fewer are happy.
But when it comes to government, majority rule is problematic. First of all, majority rule is based on the persons who may vote, not the whole population. Young children do not vote, and foreign residents do not vote. The adult citizens own the country, so they vote.
People believe in majority rule because they think of the alternative as either dictatorship or a rule by an elite minority. Why should one man or an aristocracy rule over the others? The global political culture now rejects monarchial rule as violating equality. What is not understood is that imposed majority rule also violates equality.
If we accept human equality, that all human beings have an equal moral worth, then the logical conclusion is equal self-governance. No person has a natural right to impose his will on another, because is it morally evil to coercively harm another person. Harm means an invasion into the domain of others, including the harm of restricting the other’s peaceful and honest actions.
When a person becomes employed, or enrolls in an institution such as a university, one does not usually expect democratic governance. The company is a non-democratic hierarchy, in which there is a top boss, lower bosses, and the ordinary workers who are directed. The workers has to comply with rules he may not favor, but the arrangement is voluntary because the worker chose to enter into employment or enrollment, and he may quit.
The equality of the employment situation is the ability of the worker to enter and exit, and the ability of the employer to equally contract with the employee and to terminate the employment. Free association is the basis of equal liberty.
The governance of territory is in accord with human equality when there is freedom of association among the members. Whether a territory is ruled by one man or by a majority does not matter so long as the individuals consent to be governed, so long as they can exit at will. After all, a traveler does not expect a voice in the rules of the places he visits. Whether the location is run by one person or the local majority does not matter to the traveler, so long as he may come and go, and so long as any unusual rules are presented in advance.
We need governing structures, but these can be contractual agreements among equals. We have today voluntary contractual communities such as homeowner associations, road associations, condominiums, cooperatives, and proprietary communities. All neighborhoods could be governed this way, and then the local organizations can form greater associations for public goods with a broader scope. An occasional hermit would not disturb the governing continuum.
Just as local communities would be able to associate, they would have the freedom to disassociate. The problem with imposed majoritarianism is that individuals and communities may not secede, and so they are forced to be dominated by the majority. Minorities are subjected to the law enforcement, schooling, drug laws, civic services, and taxes favored by the majority.
The reform that would establish deep equality would be a constitutional rule that would prohibit only coercive harm to others. Government would not impose costs and restrictions on peaceful and honest action. Contractual communities would be free to have restrictive rules among their own members. Contractual governance is best implemented bottom up, with secession where feasible.
The avoidance of imposed costs implies the absence of taxes on transactions and produced goods. There would be charges for trespass and invasions, such as pollution. In the absence of taxes on labor, capital, and trade, those who hold title to land would have to pay for civic services from the yield of their land, the rent. Ideally, people would understand the logic of equal benefits from the rent generated by nature and community. The deepest equality would consist of both equal self-governance and, as Henry George put it, standing “on equal terms with reference to the bounty of nature.”
Contra Argumentation Ethics
The proposition in argumentation ethics is that “arguing for any political position other than libertarian anarchism is logically inconsistent” (wiki). This proposition was set forth in 1988 by Professor Hans-Hermann Hoppe of the University of Nevada at Las Vegas. The basic idea is that the non-aggression principle is a premise implied in every argument, and so it cannot be logically denied in any doctrine. The concept of argumentation or discourse ethics had been developed by several German philosophers, such as Jürgen Habermas.
The non-aggression principle is that aggression – the initiation of force or fraud against a person – is morally evil. The argumentation proposition is that non-aggression is a presupposition of every argument, and so the concept cannot be logically denied within an argument. If a person argues that slavery is justified, the contradiction is that by engaging in argument with another person, he is implying that they are both seeking to arrive at truth by persuasion as equal independent non-slave parties. Since the person who argues for slavery is not using force to make the other person a slave, that implies that he is thereby rejecting slavery. It is then logically and performatively inconsistent for him to argue that enslaving any other person would be justified.
The prevailing argument for a libertarian ethic, based on natural moral law, is based on human nature applied to human action, rather than argumentation. The two premises set forth by John Locke in his Second Treatise of Government are human independence and equality.
Independence is the biological statement that persons think and feel as independent beings. Equality means that human beings have an equal moral worth, which is the basis of Jefferson’s statement that we are created equal, and is the basis of equality before the law. The equality premise is based on the observation that there is no inherent master-slave relation among human beings, and so equality is more consistent with human biology than any inherent moral superiority of any race, sex, or culture.
Hoppe states that concept of human nature is too diffuse to provide a determinate set of premises for natural law. Locke’s premises of independence and equality indeed have fuzzy edges, such as for beings not yet born, but they seem to be clear enough for practical purposes. Libertarians have no consensus on issues such as abortion, capital punishment, land value subsidies, the use of the military, and the justification of imposed government, but argumentation does not resolve such issues either. One needs additional premises to solve issues such as personhood, e.g. under which conditions is a human organism a person with rights. After all, one cannot have discourse with a newly born baby.
The concept of argumentation ethics has been rejected by several libertarian scholars, for example the article in The Journal of Libertarian Studies (Spring 2006) by Robert Murphy and Gene Callahan. They point out that at most, argumention establishes self-ownership only to one’s mind and mouth, and only during the argument. A slave owner can argue with a slave while the slave is in chains, and then murder the slave. The superiority of the slave owner is not refuted by the owner’s asking the slave whether he prefers to be strangled or shot with a bullet.
As pointed out by Murphy and Callahan, a statist may believe that under particular conditions, the initiation of force is justified, even though when this is discussed, the parties are equally in their ability to argue.
Another refutation was made by Jason Brennan in “Hoppe’s Argumentation Ethics Argument Refuted in Under 60 Seconds.” Brennan first presents two definitions. “A liberty right is something that grants me permission to do something. A claim right is something that entails others have obligations, responsibilities, or duties toward me.”
He then writes:
“all I need to avoid a performative contradiction here is for me to have a liberty right to say, ‘I propose such and such.’ I need not presuppose I have a claim right to say ‘I propose such and such.’ Instead, at most, I presuppose that it’s permissible for me to say, ‘I propose such and such’. I also at most presuppose that you have a liberty right to believe what I say. I do not need to presuppose that you have a claim right to believe what I say. However, libertarian self-ownership theory consists of claim rights… Hoppe’s argument illicitly conflates a liberty right with a claim right, and so fails.”
Yet another refutation of argumentation is made in “Justopia” by Justin:
“That flaw is revealed by showing that intent matters. This flaw eliminates the performative contradiction aspect because one cannot, without further information, determine whether many of the statements that Hoppe would claim are performative contradictions actually are performative contradictions.”
The Lockean foundation for natural moral law does not suffer from such flaws. Based on its premises from human nature, the universal ethic has three basic rules:
- Acts which are welcomed benefits are good.
- All acts, and only those acts, which coercively harm others are evil.
- All other acts are neutral.
It is curious why some natural-law libertarians have not accepted Locke’s libertarian ethic and have instead turned to German discourse philosophy. Perhaps the answer involves psychology and sociology rather than pure philosophy. At any rate, argumentation ethics is not the answer.
(This article also appears in http://www.progress.org )