Europe

Reply to ‘Classical Liberalism, Cosmopolitanism and Nationalism’

Barry Stocker Current Events, History , , , , , , , , , , ,

I write in reply to Edwin van de Haar’s post ‘Classical Liberalism, Cosmopolitanism and Nationalism’, which contains some generous remarks about my social media posts while putting forward a view different from my own about the role of the nation state. Edwin argues that the nation state is foundational to classical liberalism in that post. I have previously argued for the benefits of the United Kingdom staying in the European Union, just before the referendum which has put the UK on the path to leaving.

I will start with the doctrinal issues of how far classical liberalism might be considered as something that is embedded in the emergence of the nation state as we know it. It is true that classical liberalism arose as the nation state emerged and consolidated and it did not occur to classical liberals, on the whole, to question the state system as they knew it. That is a system defined in early modern natural law and contractual theory about law and state as one of a very unified system of sovereignty in a world of ‘a state of nature’, anarchy, or lawlessness between states.

We have to note at least one major deviation in the familiar list of classical liberal authors, which is Immanuel Kant, thinking of his essays ‘Idea for a Universal History with a Cosmopolitan Purpose’ (1784) and ‘Perpetual Peace: a philosophical sketch’ (1795), which do not question the internal  sovereignty of states, but does argue for a law governed set of relations between states with a global institution of some sort to prevent republics going to war with each other.

We should consider John Stuart Mill’s thoughts on federal states in Considerations on Representative Government (1861), particularly chapter XVII, ‘Or Federal Representative Governments’ which looks at the possibility of a state with decentralised decision making functions. A nation state can be federalised, at least in principle, but what are the components of the federation other then sub-nations, where the population may even regard them as nations within the state. Mill was building on the experience of the United States since the constitution of 1787, and Switzerland, particularly since the federal constitution of 1848.

The United States and Switzerland did not come out of nowhere. The US consolidated the links between thirteen colonies of Great Britain while federal Switzerland built on the Swiss Confederation and its links with places like Geneva which were associated with the confederation, but were not part of it until the restructuring of European states in the Napoleonic period. The point here is that modern states may be federal as well as unitary states and that includes continuity with pre-modern links between at last partly self-governing regions-nations. We could even say that kind of state of associated states was the Medieval norm.

The example, and even idealisation, of this Medieval structure enters classical liberalism via Montesquieu’s The Spirit of the Laws (1748), along with the work of Swiss jurists of the time, particularly in Berne. Montesquieu was building on the experience of the kind of medieval and early modern monarchy where he thought there was liberty, moderation in government, distinguishing it from tyranny. In such situations different laws and assemblies for towns and for historic regions was quite normal under the monarchy. In so far as such states, like France, were tending to evolve in states based on the absolute sovereignty of the centre, in the formation of what we call a nation state, Montesquieu saw the danger of despotism.

The historical experience that Montesquieu was drawing on was the way that Medieval monarchies were constructed through assembling  patch work of  the monarch’s personal domains, regions with their own lords and institutions, and church domains, along with increasingly self-governing towns. He also looked at the antique experiences of allying republics in a federation, which he thought was preserved in the Netherlands and Switzerland of his time. Germany, which at that time was a kind of federal/confederal empire of very varied forms of sub-imperial sovereign units including princes with lands outside the Empire, was also a form of federation for Montesquieu.

If we go back to the German history of the century before Montesquieu, the idea of the modern nation state is strongly associated with the Treaty of Westphalia (1648), which ended the Thirty Years war, focused on Germany, but drawing in most of Europe. ‘Westphalian state system’ has become a label for an internal system of states which are completely sovereign internally and face each other as equal legal personalities with no higher instance of sovereignty or collective instrument for enforcing the laws of nations, which do have some basis in the natural law doctrines of the time, and earlier.

The trouble with this understanding of Westphalia is that though it has some truth for Europe outside the German Empire (officially known as the Holy Roman Empire), it is very misleading for the Empire, and therefore for those European powers, including Sweden and Denmark, which had land within the Empire. The princes, cities and other territorial units within the Empire were under the legal authority of the Emperor, who largely served as a judge of interstate disputes though with far greater powers in the lands of the Habsburg family (consolidated as the Austrian Empire in the Napoleonic era) which always had the Emperor, though the Emperor was legally an elective office. The Habsburgs land extended outside the Empire into central Europe so the Westphalian system of Imperial authority brought in other European nations and extended outside the Empire strictly speaking.

Westphalia modified a system rooted in the Middle Ages of Germany as a middle European federation or confederation, drawing in other parts of Europe and therefore anchoring a European system of some kind. Periods of dominance by France or Spain complicate this story, but French claims always overlapped with Imperial claims and the peak of Spanish power was when the Spanish monarchy was from the same family as the German Emperors.

The Napoleonic era disrupted these arrangements severely, but we can see Napoleon as trying to revive the original Empire of the Romans under Charlemagne in the ninth century, which united France, Germany and neighbouring territories under a Frankish over-king. Charlemagne was know as ‘father of Europe’ in his time, perhaps more in connection with Europe as Christendom and his wars against Muslims in Spain, then with Europe as we might think of it now, but this is part of the story of what it is for there to be a Europe and a European system. Coronation by the Pope and recognition of the Frankish kingdom as heir to ancient Rome connects the medieval German Empire with the first great European political system, the Roman Empire.

The aftermath of the Napoleonic period in Germany was a confederation, which again included those European powers (the United Kingdom was one) which had lands in Germany. This evolved into the German Empire founded in 1871, which was itself an extraordinary mixture of Greater Prussia, federation, democracy, aristocracy, monarchy, and so on. It was more of a nation state than German predecessor systems in that it was a sovereign unified part of the international state system. The size and growing economic power of the Kaiserreich, incorporating Polish, French and Danish speaking areas, made it a destabilising force in Europe. Too big for the security of other European states, too small to anchor a European system.

The First World War and the Second World War were both consequences of this unstable system. The European Union is in large part an attempt to solve the problem by creating a European system which Germany anchors, though since unification the dominance of Germany has become an issue again. Whatever the problems, the EU provides a better framework for structuring a European system in which Germany is both contained and can exert influence in a consensual manner.

Returning to the issue of the nation state, Germany was never a nation state in the strictest sense of a very unitary state with a single language and ethnicity. France has usually been taken as the model of the nation state ‘strictly speaking’, but even so it has only been a country of speakers of standard French since the late nineteenth century. As it is now, it includes speakers of Breton, Basque, Occitan and Alsace German. Corsica has special status and Alsace-Lorraine also has some special arrangements in recognition of its specificities.

The European world before the First World War was more of a Europe of multi-national Empires than nations, with four Empires (German Hohenzollern, Austrian Habsburg, Turkish Ottoman, Russian Romanov) dominating the centre and east. Spain in practice has always been an extended Castille in which other regions-nations have played variable distinct roles. The United Kingdom never completely integrated as a nation state; even at the peak of integration in the nineteenth century, Scotland kept its own legal, state church and educational system and since then in a rather complicated way the UK has become more loosely integrated and may lose Scotland in a few years.

Even with the imminent departure of the UK from the EU, Europe continues to be a political system, not just an aggregate of nation states. The larger European states are not nation states in the strictest sense. Even without the EU, European states accept various kinds of obligation with regard to north Atlantic security and global trade which limit sovereignty. The UK will negotiate some kind of membership of the internal market of the EU and its passport union aspect, as well as participation in various EU schemes. It will therefore continue to be part of a European system anchored by Germany.

Ever since the Romans, Europe has needed a European system of some kind, and the German anchor schemes going back to 800 have recognised the Roman precedent. In reality there has never been a Europe of nation states and the periods closest to that model ended in catastrophic wars. Disaggregation of the European system as it is now may not result in war, but it has the potential to unleash trade wars, protectionism, competitive currency devaluation, erosion of chances to live, work, and study abroad, associated labour market sclerosis, destabilising struggles for political-diplomatic dominance, and an incapacity to ally in order to deal with global and strategic issues affecting Europe, including migration flows, Russian expansionism, and Middle Eastern conflict and terror.

(more on the consequences of the UK leave referendum soon)

Hypocrisy!

Jacques Delacroix Current Events , , , , ,

Yes, I am alive, thank you for asking.

I have been away from this blog for two reasons. First, the little boy who hated the end of summer and going back to school is still alive and well inside the old man. I combat the corresponding end of summer melancholy by trying to cram outdoors activities into my life until the days become too short. Second, my hands hurt enough to keep me away from the keyboard most of the time. I am considering switching to one of the voice recognition softwares such as Dragon. I am not too worried about accuracy. Mostly, I don’t want to have to junk my old Samsung because of space requirements or some other software feature I don’t even know exists. I listen to advice from my betters (practically everybody in this case). Ideally – ideally – I would like a program that does more than one language.

I had much trouble writing the essay below because the topic of mass migrations has so many ramifications and because it touches so many different sensitive subjects. In a way, it’s just too rich a topic. And, the more I waited, the more complicated the situation became on the ground. Please, bear with me.

Like most or many people, I have observed with grief in my heart the fast-rolling disaster of the migrants crisis in Europe. I have several reactions, not all compatible with one another.

As I wrote, on about 9/5/15 Hungary was unaccountably preventing thousands of migrants from leaving its territory. This is strange because most of them don’t want to stay in Hungary; they want to go to Germany and to Sweden. Besides, Hungary, which is relatively poor, has a fairly big anti-immigrant political party, lots of voters who want as few immigrants inside as possible. A major Hungarian politician even declared that Hungary does not want any Muslim refugees because of its history of strife with the Ottoman Empire. Something does not add up: If you don’t want them, let them go elsewhere, even give them a lift! Later (09/14/15) Hungary built a fence to keep migrants out. Smart move!

What is confusing is that the current crisis is only in part new. We have heard for years, we have seen pictures of people drowning trying to reach the Italian island Lampedusa for a long time now. Three hundred and fifty drowned there in one 2103 day alone. This first European Union territory is only day-excursion distance from Tunisia. Several years ago, I saw pictures of hundreds of black Africans acting in concert to swamp the wall of Spanish enclaves in North Africa. The two enclaves of Ceuta and Melilla are also, practically, part of the European Union. I could tell from their appearance that the fence climbers were not Syrian families but sub-Saharan Africans. Some were from Senegal, a poor but peaceful and orderly country. So, there have always been illegal emigrants to Europe motivated by the search for better economic opportunity, people who left their countries not out of desperation but drawn by hope. This first category of migrants resembles closely immigrants from Mexico, for example, who daily come into the US illegally.

So, it seems to me that there are right now two main categories of migrants (would-be immigrants) that are intermixed on the ground and on the sea and that the American press is not doing a good job of separating them, conceptually. I am possibly getting a clearer picture by superimposing on one another American and French language reports. The new migrants, a recent category – are going to Europe because they feel that they literally have no place to live. They are properly refugees; they seek refuge in an absolute sense. This is the case, no doubt, with many Syrians. Their area of origin has been destroyed by the Assad government, much of the rest of their country is aflame or under the brutal tyranny of the so-called Islamic Caliphate. The livable areas are shrinking fast. Many belong to the wrong sect and are suspected of being natural enemies irrespective of their actions or inaction. They are not welcome in the shrinking areas of livability within their country or they are unable to reach them. From interviews in both English and French and from the quality of their clothes, I deduce that a large percentage of these new migrants are solidly middle-class, well educated, with defined skills. I mean “middle-class” by my standards, not middle-class by some other, lower exotic standards. The impression is strong and clear with respects to Syrians, less so for Iraqis.

Many Syrian migrants are young men who are simply trying to escape the draft in a murderous on-going war. (The fact that they are young and male has implications for the receiving countries that I hope to consider in a related essay, following.) But migrations are always complicated. Once the path is opened by the desperate refugees just described, once bridges are built, simple economic migrants of the old style who would not have thought of moving will join the exodus. Things will not sort themselves out soon. It will become increasingly difficult to separate real refugees from traditional, conventional economic migrants. Both target principally Western countries.

The new migrants from Syria, but also from Iraq, calculate, probably correctly, that their neighbors have reached the point where they can’t or won’t take them in. Lebanon and Jordan are groaning under a disproportionate demographic burden. Two out of eight residents of Lebanon today are recent Syrian refugees. The situation is more nebulous in Jordan but the figure there appears to be about one in ten. (Think of 32 million recent refugees in the US.) Many citizens of these countries of asylum think without being able to say it aloud that the fragile political ethnic-religious equilibrium of their countries is compromised forever. Turkey says it has taken in two million Syrians. It’s not that impressive given its population of 77 million. There is a possibility it’s not just the total number of refugees that gives Turkey cold feet but the prospect that those refugees will include many Kurds from Syria whose very presence will cause more unrest among the long rebellious Turkish Kurds.

The other neighbors of Syria and Iraq, its Arab neighbors, specifically, Saudi Arabia, Kuwait, Qatar, and the UAE, seem to have given away a lot of money but they show no sign of opening their doors. It’s astonishing when you think of the ease and safety with which refugees could reach there as compared to their perilous journey to Western Europe. It’s even more interesting that there seems (seems) to be no great clamor from refugees to be admitted into these prosperous countries anyway. It appears that there is a consensus among Muslim Arabs: Muslim Arab refugees are not welcome in most Muslim Arab countries and they don’t want to go there anyway. Interesting! The new migrants, the real refugees believe, probably correctly too, that refugee camps in the Middle East lead nowhere, that they are still going to be there in twenty years. And, why not? Some Palestinian refugee camps are now reaching age seventy. Iraqis are in the same situation. Afghans who are the right kind of Muslim (Sunni) but who don’t speak Arabic don’t even try to go there. Instead, like everyone else, like Syrians and Iraqis, they head for Germany and Sweden because most of them are fluent in German or in Swedish or both. (Just a bitter joke.)

It’s not clear what the other neighbor, Iran, is doing. I am guessing it’s taking in Afghans in the east, same as it has done for twenty years. A country with a population size similar to that of Turkey – and of Germany, by the way – 78 million, appears to have opened its doors to no (zero) Syrian refugees. There are Iraqis living there but it’s always been so; it’s not a humanitarian response to the current crisis.

No one is asking why India, Pakistan, Indonesia, Malaysia, with over 600 million Muslims between them, have not offered asylum to 10,000 Middle East refugees, or even to 5,000. No one even dare think the thought that China, Japan, and, of course Russia, have done nothing. The Pope has drawn attention loudly and clearly to the plight of the Middle Eastern refugees. The Vatican is an independent sovereign state with the legal capability to issue visas. I have been there: There are many underused buildings and extensive gardens suitable for a tent city. The Vatican city-state already possesses all the requisite municipal services. Yet, to-date, the Vatican has taken in zero refugees although its head of state, the Pope, has urged Catholic families and parishes everywhere to open their door. Like fish, organizations rot from the head.

Notably, so far, the US has announced that it will take only 10,000 Syrians. (But in the past twenty years, the US absorbed about 70% of all defined as refugees by the UN who did find asylum. We have credibility money in the bank, so to speak.) As I write, no country of Latin America – with its surprisingly large minority of Arab descendants who enjoy much influence – has made any significant offer. Perhaps, the countries of the Western Hemisphere are too far removed from the scene of the main disaster to be prompt. We will find out in the next few days.

It’s now obvious that compassion, simple humanity is disproportionately lodged in the West, that is, in Christian and in formerly Christian societies. Not all such societies are helping but the bulk of those now helping concretely right now, except for Jordan, Lebanon and Turkey (see above) are such countries.

The refugees themselves know this, and are stalwartly heading for Western European countries – that have experienced mediocre economic growth for many years – in preference to non-European countries routinely growing at more than 6% for years. So, China and India are not taking them in which is fine because they don’t want to go there anyway. Japan has not even begun to think about it. The refugees have not asked anything from Japan. It might just as well be on another planet. Again: Refugees are trying desperately to find room in Western societies that are not even doing very well themselves, Greece, of course, but also Italy, and Spain, and France, with its rate of economic growth that may well reach 0.6 % this year, the French hope fervently. (Incidentally, it was a pleasure seeing the French Socialist government, that paragon of solidarité shamed into giving a hand by a German conservative politician. It had not lifed a finger until then. Sorry if you missed it.)

What politically correct opinion in the West does not want to say too loud is also obvious: most, almost all of the migrants are Muslims. To admit this obvious fact forces you to ask what happened. The migrant crisis is a dramatic manifestation of the widespread institutional, economic and moral failure of Muslim societies. In fact, voices of conscience in the Arab world have been more forthcoming in their remarks than have Western commentators. (And no, I am not using “Muslim” and “Arab” interchangeably. Don’t insult me, please. There may also be non-Arab Muslim voices denouncing Muslim passivity toward the crisis that I have missed. I welcome responsible additions to this essay.)

Muslim societies with one big exception (Indonesia) and several small ones (Senegal, Mauritania, etc.) have been generous in their provision of war, massacres, ethnic cleansing, and other atrocities. They have mostly failed to provide work for their young. Those that don’t sit on a cushion of hydrocarbons rarely display economic growth surpassing their demographic growth. The resource rich states are well, dependent, on factors which they cannot control, on capricious facts that discourage both collective and individual planning. Only a handful, literally a handful, of Muslim countries has been able to sustain anything resembling a democracy, any form of democracy, even using the term loosely. With the exception of Indonesia again, the most stable, Saudi Arabia, Kuwait, Qatar, but also Algeria, are old fashioned despotic states. When it comes to charity, the care of those more unfortunate, assistance to brethren in distress, the Muslim world is a straightforward disaster although such care and such assistance are explicit moral obligations under Islam. Muslim societies are failures on most counts. Important fractions of their populations are on a perilous march seeking a new life in the Crusaders’ heartland.

The shame, the hypocrisy!

I know, I know, it must all be America’s fault. I will have to write a part two to this essay.

European Union: Creative Destruction Wave?

Barry Stocker Current Events, Politics , , , , , ,

Some thoughts in reply to Edwin’s recent very interesting piece on the European Union.

The Greek crisis, the refugees crisis and the recently announced German suspension of the Schengen agreement on free movement are all very testing for the European Union. I certainly agree with Edwin that ideas of a highly integrated European Union superstate are in a bad state, but that has been the case for some time now, it is just that some European Commission people and ‘federalist’ enthusiasts have been very slow to realise this. I put ‘federalist’ in the scare quotes because ‘federalist’ can mean so many things as a form of relation between existing states and should not be only identified with highly integrated forms of federation in which the central state is dominant. Any such idea was effectively killed off  years ago by a mixture of British opt outs from the Maastricht Treaty and the Danish referendum rejection of that treaty.

Of course these were thought by some to be secondary events which could be given temporary ad hoc solutions while the integrated superstate juggernaut rolled on. It is worth remembering that the phrase ‘ever closer union’ was in the Maastricht Treaty as a substitute for ‘federalism’ at the insistence of John Major (the then British Prime Minister) as a way of signalling the end of federalist ambitions. Since ‘ever closer union’ is open to not just integrated federalist meanings, but even unitary state interpretation, this is perhaps a bit strange, but the fact is the phrase signalled an end to integrationist federalist dreams in which John Major was probably quietly supported by some other states (including the Netherlands I believe) which did not want to stand out as anti-superstate. All this created the illusion of a process that only the UK and Denmark were standing aside from and they could be expected to join in later.

However, the integrated superstate model of federalism was already a paper tiger, a rhetoric only used as a way of legitimising a Franco-German dominated Europe, in which EU unity was heavily dominated by the wish to keep the French-German partnership going and offer everyone else the hope of a voice in an essentially Franco-German dominated process in which the two key states sought trade offs between individual national goals. Events since then have unravelled the superstate ideology as the French-German partnership has been reduced in importance by German unification, with some help from French failures at internal reform. The emergence of a reality concealed by the older sort of ‘federalist’ language can be seen in the referendum ‘no’ to the Lisbon Constitution in a few countries and the move to a Treaty. The Lisbon process was one of shifting power to the Council, to the place where intergovernmental decisions are made. The Eurozone upheavals have made it clear that Germany has a role in the EU unmatched by France.

On the current refugee crisis, the suspension of Schengen free movement is very disappointing, but an unavoidable response to such a massive tide of refugees. To my mind it may well be possible to integrate them, but clearly it is a challenge and clearly it is a challenge that public opinion does not seek, or not beyond some defined number of the most ‘real’ refugees. Anyway, this is not a completely new problem for the EU, France for example, has previously imposed border controls to deal with migrant influxes and deported unemployed migrants from eastern EU member states. This is a crisis situation which would exist with or without the EU and would lead to exceptional measures with regard to external border controls and internal security measures, including checks on identity papers. So I suggest it is not in itself an end to free movement within the EU, but more an indication that free movement will be subject to qualification in any foreseeable future. That still leaves the very real achievement of the EU in making movement between states easier, with all the attendant benefits for individual liberty and prosperity.

The Greek crisis has emphasised a form of economic integration in the Eurozone dominated by Germany, which is not what anyone would have put on paper as a federalist dream, but the reality is that the Eurozone was always about turning the Deutschmark into a European currency in which all members would benefit from the German reputation for sound finances and a strong currency, and therefore a de facto agreement to be subject to German economic discipline. No one used those words in public and everyone hoped that the crisis situation in which someone would have to impose order would never arise, but it has and we can see what was really been agreed to in the first place. That arrangement has worked at least moderately well so far. Ireland has actually done very well out of going along with German economic discipline. Italy, Spain and Portugal at the very least seem to have got past the worst. Greece is the most dubious case, but wild left populism has now receded in that country and that must be a success for the German led Eurozone. We are waiting to see whether the deal works in the long term in Greece. This does not have to be a complete German hegemony. In defence and foreign affairs, for example France and the UK are still strong compared with Germany.

The current regional tensions make it unlikely to my mind, as Edwin suggests, that the EU will not develop in the foreign and defence spheres. It would be more accurate, I believe, to say that the EU will develop an opt in personality in these areas in which not all states participate, but the core makes the EU more important in that field. Putin’s direct and indirect provocations, the nightmare in Syria and Iraq, and the threat of Islamist fundamentalism in west Africa, have all pushed EU states and previously neutral European states to become more engaged with security and defence issues. Now of course NATO is important here, but US willingness to look after Europe’s security for it is in decline and rightly so.

A response to the dangers I’ve just mentioned requires increased defence spending and and co-operation for European states and we can see this happening. Some of it cuts across the EU, as in co-operation between Nordic countries including Norway, which is outside the EU, but does not separate defence from the EU sphere. The membership of previously neutralist Sweden and Finland in the EU is clearly helping them co-operate with NATO countries. EU states are increasingly working with regard to a total European defence presence in which smaller states will limit the military spheres which the operate so that there is a co-ordinated division of labour. The UK is engaged in co-operation with the EU states on the border and hinterland problems in eastern Europe and the Middle East and this is likely to be a way over time in which the UK becomes more European oriented. This is a gradual process in which we will not see a Euro-army and a treaty in which the EU becomes sovereign in security matters, but we will see the EU mattering more in the defence and security sphere. One of the factors contributing to this is the refugee crisis.

Edwin raises some issue of (classical) liberal thinking in these areas and that is the final topic I will address, hopefully providing a framework for addressing the public policy and institutional issues above. Edwin is correct to say that voters want to see some important issues addressed on the national level and feel remote from the EU level, but let us be clear about what this means in reality. No individual voter has more influence over national policy that EU policy. Even in Luxembourg any one voter has no real voice, does not make a difference, in a community of three hundred thousand. There is no real difference between Luxembourg and the 500 million of the EU on this issue.

What people like when they think of the national level is that decisions are made by people like them, people with whom they can identify. Immigration and other forms of social change which undermine notions of self-contained homogeneity, such as the Internet, increased travel, decreasing identity with national religion, and regionalist movements, do not put am end to national identity, but they do qualify it. The recent EU crises have increased the visibility of European leaders across the continent, Angela Merkel must be more familiar to most Europeans than all but a handful of their own national politicians. The national level will  not disappear and we will probably seem more shifts towards national and inter-governmental decision making, but let us not ignore the qualifications and opposite tendencies.

The point of the above paragraph is that we are not returning to the time of absolutely sovereign national governments in Europe (and of course the sovereignty was always limited in practice, particularly for the smaller and poorer countries) and I dispute what I take to be Edwin’s assumption that this is what is happening and should be welcomed. Apologies for any misunderstanding, but it looks very much to me as if he is saying that classical liberalism has preferred and should continue to prefer interaction between sovereign states over federalisation of any kind. He mentions David Hume, Adam Smith and Friedrich Hayek in this context.

However consider this quotation from Adam Smith: ‘Were all nations to follow the liberal system if free exportation and free importation, the different states into which a great continent was divided would so far resemble the different provinces of a great empire.’ (An Inquiry into the Nature and Causes of the Wealth of Nations. IV.v.b). Surely this contradicts Edwin’s claim. Hayek was the author of ‘The Economic Conditions of Inter-State Federalism’, which advocates federation between democracies to entrench free trade and basic rights. Similar comments can be found in The Road to Serfdom. Now maybe Hayek did not mean to advocate something like the EU as it is now, and even less what the most pure advocates for integrationist federalism wish for, but he did offer support to federation and constraints on national sovereignty.

Going back to the Enlightenment, Immanuel Kant, a liberal advocate of market economies, limited government and freedom under law, wrote essays favouring ‘federation’ or ‘confederation’ to enforce world peace. We can take it that Kant meant a kind of European federation as like most of the time he did not really regard non-Europeans as equals, even if he should have according to his own philosophical principles. Anyway, he had liberal arguments for constraints on national sovereignty, even if very limited in scope.

Edwin may perhaps feel that what Smith, Kant and Hayek said fits with what appears to be his desire for a European Union limited to free trade issue. However, it is important to establish that classical liberalism is open to federation or ’empire’ (which for Smith can be a confederation) and furthermore that a federation for very limited purposes is likely to spill over into other spheres. How do you guarantee peace, security and free trade without a lot of other connected  government functions. It could be argued that classical liberal federation is limited to pure minarchist functions of national defence, and enforcement of laws, but why should we expect transnational  federal states to stay limited within such a sphere when national states never do.

Liberal economics leads us to regard upheaval, change and destruction as healthy, within the limits of law and contract, as this is how there can be innovation and prosperity. We can think of politics in the same way. Current crisis conditions will change the EU but are at least as likely to do so in ways which reconstruct its various activities, and the ways in which they are conducted, to the benefit of its health, as to lead to an EU restricted to free trade or in a state of complete collapse.

Is the European Union Collapsing?

Edwin van de Haar Economics, Liberty, Philosophy, Politics , , , , , , , , ,

Lately, the European Union (EU) stumbles from crisis to crisis. After a long hot spring dominated by the financial crisis in Greece, we now see the collapse of the system based on the Schengen Treaty, which secures the free movement of people within most countries of the EU. The upheaval is the result of the huge numbers of refugees entering the EU, mostly from Syria, Eritrea and Sudan. It is expected that Germany alone will offer asylum to approximately 1 million people this year. With no end of the refugee wave in sight more and more countries are either closing their borders, building fences, or reintroducing border patrols. The situation in Hungary seems worst, especially in the temporary refugee camps. This weekend we saw footage of guards throwing food into the hungry crowds, just like zoo keepers do when feeding the wild beasts. An absurd lack of civilization.

Both crises have at least two factors in common, namely issues of sovereignty and property rights. Sovereignty is claimed back by European politicians, who previously made arrangements at the European level, yet are now confronted by their electorates who want to end the infringements of their property rights. In the case of Greece it was about (mostly) Northern European leaders who were pressed by public opinion to stop paying for the support of what was seen as an almost bankrupt country. Certainly in Germany and The Netherlands it was seen that Greece made a mess of things which itself needed to sort out (this was the dominant perception, I underline that I do not say this is also the right presentation of all relevant facts). In the current refugee crisis public opinion also welcomes large numbers of people who –again as it is widely perceived- are seen a poor sods fleeing from a terrible war. Yet at the same time the people understand that the refugees, no matter how well educated some of them are, also need to receive all kinds of welfare arrangements and will go through an often hard process of integration into society. This against the background of more than a decade of heated debate about immigration and integration in most (Western) EU countries.

In both questions the politicians eventually tend to back out, by reclaiming national sovereignty. Not directly, as this would be embarrassing. So Greece got its third support package, and in the refugees crisis it is underlined that ‘temporary border patrols’ and even ‘border closings’ are still within the letter of the Schengen Treaty. There is also talk of centralizing the intake of refugees at the European level, instead of the current principle of ‘first country of entry is the country where asylum should be requested. This may well be a good idea given the fact that refugees will  arrive (as the US experience also makes clear). Yet it is hard to predict how the negotiations will end, because there are large objections against the European Commission spreading refugees among the EU member states at its own peril.

The bigger picture however could well reveal that both events mark the end of the movement towards ‘ever closing union’, the old purpose mentioned in the Treaty Of Rome (1957), the most important founding treaty of European integration. That is significant, because if I am right in my assessment it means we are experiencing a real turning point. There are a number of contributing factors, most of which have been identified before, but that does not make them less significant, such as a lack of European identity among the European people, and the desire to accept only a minimum amount of European policy, due to the much stronger desire to make national decisions, which are easier to correct by the electorates. This, by the way, is fully in line with classical liberal thinkers such as Hayek, Hume or Smith.

Does this mean the EU is about to collapse? Hardly likely. The economic basis is still strong and while large the current problems can be paid for and sorted out eventually. Yet if integration stops here it will also mean that the EU will never get a serious common foreign policy or a common defense policy either, both of which have been tried –and failed- over the past decades. So the EU will then only be a ‘super free trade zone’, with a common trade policy, and strong legal apparatus also spreading out over many non-economic issues.  This raises many more issues, but that goes beyond the purpose of this contribution. For one thing: these are once again exciting times in Europe!

Greece Needs a Radical Transformation

Fred Foldvary Current Events, Economics , , , , , , ,

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 Framework Agreement on Iranian Nuclear Everything: Questions

Jacques Delacroix Current Events , , , , ,

Today, the day after President Obama announced in the Rose Garden a “framework agreement” intended to limit the Islamic Republic of Iran’s pursuit of nuclear weapons, I read the Wall Street Journal account carefully but it did not help. I don’t understand it. It may just be too early for a good analysis. In the meantime several questions loom large in my mind.

  1. If I don’t understand the details, do I believe in an agreement with a hostile country described by a man who promised that “you could keep your doctor”?
  2. Do I believe that this agreement is to the advantage of the United States? The question arises because it was negotiated principally by two men with a track record. The first, Pres. Obama, succeeded in exchanging five terrorist generals for a single American soldiers who is a deserter according to those who were on the battlefield with him. The second, the current Secretary of State, demonstrated that you could leave the Palestinian/Israeli relationship in an even worse state than you found it.
  3. The President and the Secretary of State did not manage, as a part of this supposedly momentous agreement, to get three Americans held by Iran released. One of them is a former Marine. It should have been a tiny footnote to the main text. Ah, well, there is no text, just an oral argument! Frankly, in the bigger picture the freeing of three people is a small, symbolic thing. Symbols matter a lot though when you don’t have access to the hard facts. I don’t, you don’t.
  4. Is the mullahs’ government – that always cheated in the past – going to abstain from lying, this time? If it does not, is this agreement going to be the cause of the death of thousands of innocent Iranians (as collateral damage)? I ask because, the next administration may not have the current administration’s difficult-to-believe indulgence. It may just decide to take care once for all of a sore festering for twenty years. If an American administration does no such thing, what is the likelihood that a future (future) government of Israel will take the chance to see millions of Jews murdered? This is not gratuitous fear mongering. Two days before the announcement, an Iranian general was on TV affirming that Israel has no right to exists.
  5. Do I believe that our European partners will stand firm and renew their sanctions if Iran is caught cheating? The question arises because they were salivating on all their national TV at the prospect of selling, selling anything in Iran once the sanction were lifted.

On the bright side, the lifting of some sanctions will unleash a torrent of Iranian oil on the world market. This will further depress of global oil prices. One more thorn in the foot of the gangster Putin.

The burden of imperialism, the virtues of immigration, and the importance of data

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

One thing I have noticed about the terrorist attacks in Paris is the relatively little that imperialism is brought up. The Muslims of France hail from parts of the world that were once a part of the official French empire. This empire is still a force in much of its old official boundaries. The British and the Dutch also have problems with Muslims that were once a part of an official empire. The Germans and the Turks are a different case, as the Ottoman and German empires had more of a deal between themselves in regards to cheap labor than the cases of Western Europe, but the relationship is still not one of immigration – not in the sense that is perceived by Americans, Canadians, and Australians.

I wonder how much of the tension between natives and immigrants is due to the imperial relationship of the sides involved. I would wager quite a bit. I also have to wonder about the role of land in all of this. Land, of course, is the ugly cousin of labor and capital, two of the three factors of production utilized by economics (there is a fourth sometimes cited, entrepreneurship, but I am not yet convinced that this belongs and neither are many economists).

Immigration is different than what the former imperial states of Western Europe are dealing with. I know the similarities are seemingly the same, but they are not. I would be happy to flesh this out more in the ‘comments’ threads if anyone takes issue with it.

Here is the abstract from an excellent article in Social Forces on the futility of deriving any conclusions about a society based on simple perceptions:

We investigate the thesis widely credited to Max Weber that Protestantism contributed to the rise of industrial capitalism by estimating the associations between the percentage of Protestants and the development of industrial capitalism in European countries in the mid- to late nineteenth century. Development is measured using five sets of variables, including measures of wealth and savings, the founding date of the principal stock exchange, extension of the railroads network, distribution of the male labor force in agriculture and in industry, and infant mortality. On the basis of this evidence, there is little empirical support for what we call the “Common Interpretation” of Weber’s The Protestant Ethic, namely the idea that the strength of Protestantism in a country was associated with the early development of industrial capitalism. The origin of the Common Interpretation and its popular success are probably derived largely from selected anecdotal evidence fortified, through retrospective imputation, by the perceived well-being of contemporary Protestant countries.

The article is titled “The Beloved Myth: Protestantism and the Rise of Industrial Capitalism in Nineteenth-Century Europe” and it can be read here (pdf). As you read through analyses of the terrorist attacks in Paris, be sure to keep this in the back of your mind.

By the way, the piece is co-authored by Jacques, who has failed to adhere to his own standards when it comes to discussing Islam.

What Would A Political Union of the EU, the NAFTA States and Japan-South Korea Look Like?

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

I’ve known about the relative poverty of Western Europe compared to the United States for quite some time now, but it’s always nice to see this little tidbit get some love in the national and international press. Fraser Nelson, a journalist at the Spectator (in the UK) gives us the run-down on the numbers. According to Nelson, the UK is poorer than any US state save for Mississippi. Over at Forbes, Tim Worstall points out that the UK is actually poorer than Mississippi, too. Poor Mississippi!

Both men are calculating wealth with GDP (PPP) per capita, which is what I use as well. GDP (PPP) per capita means Gross Domestic Product (Purchasing Power Parity) per capita. Worstall explains how and why social scientists like using GDP (PPP) per capita to gauge a society’s standard of living:

Just to explain PPP for you. Prices vary across places. In the US food is generally cheaper than it is in Europe, medical care generally more expensive. So what we try to do with PPP is work out what exchange rates would need to be in order to make prices of all of these different things the same in the different places. It’s not an exact science, more of an art. But if what you’re trying to measure is living standards then it’s somewhere between useful and essential as a part of your workings.

It isn’t just the UK that is poorer than the poorest US state, either. Economist Mark Perry did these same calculations using 2010 data back in 2011 and pointed out that only Luxembourg and Norway would be in the Top 30 states were Western Europe and the United States to meld into one federal republic. The rest of Western Europe is on par with the living standards of the American South (which is considered to be the poor, culturally backwards region of the US). Be sure to check out Perry’s 2010 data and compare it to Worstall’s and Nelson’s 2013 data, too.

Careful readers will notice extremely small differences in the calculated purchasing power parity of all three authors (the IMF’s is also a little different), but each data gives us a similar approximation for standards of living in each country and each US state. Suffice it to say here a political union between the United States and the wealthy countries of Western Europe would significantly diminish the GDP (PPP) per capita of the US overall. A political merger with Japan, South Korea, and Mexico would also diminish the overall purchasing power parity of the average US citizen. Canada might (might) make the Top 40 for US states (somewhere between Michigan and Ohio – states of the Rust Belt).

Now, if I had my way, the calculation standards for non-US countries would be the same as they are for US states. That is to say, I think a better way of measuring standards of living would be to break up the countries I’ve mentioned and measure the GDP (PPP) per capita of the administrative units that operate just below the national governments of these states. So, for example, instead of measuring the GDP (PPP) per capita of the Netherlands, I’d measure the GDP (PPP) per capita of the 12 provinces that make up the Netherlands.

Then, in my libertarian utopia, the 50 US states would join together politically with the various administrative units of Western Europe, Canada, Mexico, Japan, and South Korea. Instead of 50 administrative units (the US states) there would be hundreds, maybe even thousands, of them. Talk about decentralization!

Given that a political (and therefore economic and social) merger between Western Europe, the NAFTA states, and Japan-South Korea would diminish my PPP, why should I support such a proposal?

Update 8/30: Some commentators on Facebook have been clamoring for a map, and I found a great website that has devoted lots of time to creating maps based solely on administrative units. The name of the site is Kelso’s Corner and they have a great blog post on the “Natural Earth Vector,” which is the project that maps out administrative units.

It doesn’t have detailed maps of the Anglo-Saxon world or Mexico (presumably because these are so well known), but I found a couple of great maps of Western Europe and Southeast Asia.

This is what the European Union would look like, politically, if it were to be more libertarian in nature.
This is a map of South and East Asia’s administrative units.

Imagine if all of these units were to send representatives and senators to Washington (or a new geographic equivalent): Decentralized political power and integrated markets and cultures would be the new norm for much of the world in a political system based on Madison’s federal republic. I reckon that, in a libertarian utopia, the world would look like this map and be united under Madison’s minarchist federal government:

All thanks goes to kelsocartography.com

I understand that my utopia is not much of a utopia (people will still die and there will be plenty of conflict), but I think this is actually a strength rather than a weakness.

Ultra-libéralisme – A French Tale

Jacques Delacroix Current Events, History, Liberty , , , , , , ,

I am in frequent correspondence with a French retired businessman in his sixties. He is a thoughtful man with minimum formal education but who reads two newspapers a day and watches French news on television several times a day. My informal judgment (as a retired teacher) is that he possesses intelligence well above average. His interest in political matters is through the roof. My French friend is also strictly monolingual. That is, he gets all his information in French.

My friend sent me recently the following email I had trouble understanding, at first. (My own careful translation. My first language is French. I have published in that language.)

“The European Financial Markets Authority (EFMA) has downgraded the three main international credit agencies that, themselves, upgrade or downgrade European and other countries. It’s a just reward*… and a good defense against these agencies which possess no legitimacy at all except from the fact of their existence; agencies that seek to estimate the worth of those countries (and, perhaps, to play the stock market [on the basis of their own assessment]). No an easy issue. Perhaps this is going to calm down the yo-yo effect financial speculators have on the stock exchange…..I even thought a few years ago of sending a personal note to those credit agencies.”
(Bolding mine)

Two salient points in this communication: First, the EFMA is a European Union “authority,” a government agency emanating from the individual EU countries’ national authorities. It’s a complete government body.

The second comment is related to the first, I believe. My friend states categorically that US-based credit agencies (Moody’s, S&P and Fitch Ratings ) have “no legitimacy” because they are not government agencies, precisely. This expresses a mental world whereas all legitimacy flows, can only flow, however indirectly, in however contorted a fashion, from the electoral process. He really thinks that the IFMA’s puerile tantrum is going to change the credit game decisively.

Within an American intellectual context, this sounds almost like the thinking of a madman. Yet, my friend is not mad. I have known him for dozens of year. He acts rationally in every aspect of his life. He is also decisively and loudly critical of French political life in general. The problem is simply that he is French, that he receives all his information from French sources, that his mind has been shaped by French economic thought (or un-thought).

His rage against the credit agencies is not based on a factual analysis of their performance either, which would certainly be a useful exercise after the 2008 world-wide financial crisis. His rage is based entirely on the violation of sovereignty by these non-legitimate bodies.

I often ask myself the rhetorical question, ” How much would I have to be paid to….?” In this case, I can’t come to a figure. I don’t know how I would begin to explain to my French friend the idea that credit agencies get most or all of their legitimacy the from the fact that they are precisely not government agencies. I could not tell him the obvious without being interrupted, I am sure: When economic actors begin doubting the credit ratings these agencies assign to organizations emitting bonds and to governments, they will swiftly collapse on their own. That is, this abstraction, the market grants them all of their legitimacy.**

The concept of markets, counter-intuitive in the best of times, has almost completely disappeared from the French consciousness. In 2012 I watched on French language television in horrified fascination the lively debates preceding the presidential election. That was after an ambitious New York District Attorney had disqualified the most likely winner who was both a qualified economist and a sex maniac. (I mean Strauss Khan, the then-current head of the International Monetary Fund and a very moderate nominal “Socialist.”)

French pre-election debates are both more lively and better staged than their US equivalents. In the first round of a two-round system, the candidates are grilled longer, more directly, more pitilessly than anything I have seen on American television. In this case, these animated and sometimes vicious discussions went on for weeks without the most serious economic questions obviously (to me) facing the country being addressed at all. I mean, of course, a large and fast-rising debt burden and the failure to grow the economy. The attendant permanent high unemployment often came up but I think that no candidate bothered to mention that strong economic growth melts unemployment .

There were ten candidates in the first rounds, including one each from: the New Anticapitalist Party and Workers’ Struggle (Wikipedia’s translation). There was not a single seat at the feast occupied by a conventional conservative party, a Tory party. There was no “liberal” chair at the dinner in the English sense of the word that would prevail in France if the term were used at all. (See below.). If the role of the market in both producing innovation and correcting wrong turns was ever mentioned during the whole campaign (first and second round,) it left no impression on anyone. There were plenty of arguments and proposals concerning taxes. They were all couched in terms of “fairness.” None was about the fundamental fact that taxes, even low taxes limit the virtuous work of the market and therefore shackle economic growth (which has practically ceased to exist in France).

The French candidates also kept their eyes averted from, or dismissed summarily the example of Germany next door which successfully reformed its welfare state in a more market direction ten years earlier.

It’s not that there are no “conservatives ” in France. So-called “cultural conservatives” abound. Large segments of the population become exercised about the right of homosexual couples to adopt and even about host womb fertilization. The puerile excesses of the post-1968 strange, make-believe revolution alone would ensure the existence of such conservatism if it did not have deep roots in the country (see below). Sex hounds like Strauss-Khan have always existed in France but 1968 gave them permission to act openly and more or less brazenly, thereby exciting the Catholic minority’s ire and disgust.

The absence of liberal economic thought in France is the result of a historical accident, a major one to be sure. At the end of World War II, the segments of French political society who had taken an active part in the resistance again the Nazi occupation took over. Soon, they constituted nearly the whole of the political class. The two main segments were the Communist Party and a shifting alliance of “Gaullist” parties, with the Socialist Party playing the role of permanent opposition until 1981. The Communists – nominally Marxist though few of their leaders had read any Marx – were obviously not believers either in the efficacy or in the morality of market mechanisms. The fairly large Socialist Party was kept in a permanent state of primitive vulgar Marxism by the necessity in which it found itself to compete with the Communists for its electorate.

The political right was occupied by Gaullists with serious ties to the progressive wing of the Catholic Church. General De Gaulle himself – a venerated figure and a mediocre politician – was thoroughly influenced by the social doctrine of the Church. To summarize it – but not abusively, I believe – the social doctrine views the state in the guise of absolute Ancien Regime kings. Good kings are both fair and powerful. They use the state apparatus unhesitatingly to distribute both justice and charity as needed.

In the post-World War II re-distribution of power, there was thus no room left for non-statist, or for “little- statist” organized opinion. The socialist victory of Mitterand in 1981, followed by a Socialist majority in parliament swept away any remaining free-market voices. It was not done through persecution in violation of democratic rule but largely through a natural swamping motion. Soon, the effect of this Socialist victory were seen in both the major mass media and, especially in French schools at all levels. All arguments about the economy heard were statist arguments: How much government action, where, for how long, whom and what to tax more, by how much, how can the government create more jobs? (The latter is taken literally: The government actually “creates ” jobs, within itself, inside the government bureaucracy.)

After thirty years, statist schooling has done the expectable: There is almost never any mention in public discourse or in private conversation of this simple idea:

Things that need to get done get done mostly well, mostly efficiently if government does not interfere.

This basic idea was never debated and beaten back; it was simply buried. It does not exist in the French consciousness. The fact that the French public is rather inferior in its ability to read other languages – notably English – helps maintain its insularity in this respect as it does in others. (Incidentally, the insularity runs so deep that the French political elite is incapable of seeing the success of the relatively liberal policies of the UK next door even as educated French youth flocks there by its tens of thousands in search of employment.)

If the French had any notion of the sentence above, they would use the word “liberal” in its English meaning. In fact, the word is practically never used in public discourse or in private discourse. When it is, it’s always accompanied by the qualifier “ultra.” The French live in a strange mental world where there are some “ultra-liberals” but no liberals. “Ultra liberal” is clearly an insulting term. It means “heartless, selfish and extremist.” No decent person is an ” ultra-liberal.” I don’t believe I know three French people who would not interrupt me in the middle of the sentence above in casual conversation. “But you are not an ultra-liberal,” they would break in with worry written all over their faces. If I retorted, “Yes, I am” not one of them would believe me.

Failing to possess conceptual language has concrete consequences. Two stand out.

In the absence of adequate terms, it is difficult to legislate regulations for normal economic activities. Many are swept under the rug. The result is that legitimate economic activities may no be performed above board, lobbying, for one. Les lobbys (in French) are illegitimate by definition. Much of what they do is borderline illegal because there is no relevant legislation or because the relevant legislation prevents them from doing their work. Since economic interests have to manifest themselves in connection with the state anyway, there follows a systematic criminalization of political life. With many of their ranking politicians pronounced criminals, ordinary French people have become deeply disaffected with normal politics. The recent (exaggerated) success of the rightist Front National in European elections is one manifestation of this distaste.

More seriously, it’s difficult to reform a polity if there is no word to designate the new direction it should take. (You need a North to navigate.) There is widespread informal agreement in France that the French welfare state is not sustainable: In 2013, half of French households received government cash for a mean of $600 plus/ month. Thus, in a country with a GDP per capita of $37,000 maximum (World Bank, for 2013), half the households receive $7,200 to $7500 annually in the form of government re-distribution (Le Figaro on-line 6/6/14) . In a society where the sentence above may not be used, or used intelligibly, it’s very difficult to state the obvious:

“We need to allow the market to spawn economic growth. We need to do it, if for no other reason, to continue to afford our munificent social (welfare) coverage.”

Instead, the political class disparages itself and destroys its own legitimacy in futile proposals and counter-proposals to cut this rather than that social program, to raise or lower such and such least favorite tax.

In my opinion, the French welfare state will not slowly grind to a halt or fall slowly apart. Rather, I think, it will come to a sudden full-stop, sink into bankruptcy because no one who counts in France is able to mouth the liberal alternative.

*This is a weak translation. The French phrase: “juste retour des choses” implies a morally valid return to some sort of previous equilibrium.

** None of this means that I think credit rating agencies perfect. I am sorry there are only three big ones of them. I regret that they exercise what I call the “tyranny of the written and of the counted.” I mean that their summary judgments tends – in the nature of things – to become substitutes for more sophisticated evaluations. They encourage laziness on the part of bond buyers, including me. Also, they have not lost enough credibility from their bad judgments on the eve of the 2008 crisis.

My book, I Used to Be French: an Immature Autobiography, is live in the Kindle Store.

“A foreign policy with a price”

Brandon Christensen Current Events , , , , , ,

Re: “Obama’s empty West Point speech,” May 30 Charles Krauthammer.

So Charles Krauthammer thinks we should be providing military assistance to Libya, Syria and the Ukraine. Who’s going to pay for it? Or are we just going to whip out the plastic like usual? Krauthammer says our allies are complaining, fearing their own security. What are they doing about it? Not much. Of course they are complaining; they are used to having the U.S. protect them without paying for it. I thought the Republicans were big on personal responsibility. Get your nanny-state big government out of other people’s business.

Joe Gregory, Castle Pines

This is a letter to the editors of the Denver Post (I’m hanging out with my grandparents in Denver right now) and I thought I’d pass it along. Is libertarianism truly entering the mainstream or or is this guy just a hardcore, longtime libertarian? He might just be a Democrat with above-average intelligence and knows when to point out logical discrepancies in the Republican message.

I’ll never know, but I can only hope he’s new and that writes more letters to the editors that point out the irrational nature of US foreign policy.

“The Economic Origins of Territorial States”

Brandon Christensen History , , , , , , , ,

That’s the title for a paper by Scott Abramson in the Department of Politics at Princeton. Among the gems in this excellent paper:

[…[ before the French Revolution, before the era of the mass conscript army, wealth could not only purchase the technologies of violence, but also the manpower required to prosecute major wars. That is, rather than being an age when large states dominated militarily, this was a period where the population and natural resource advantages of territorial states provided little benefit in the production of violence. Leaders of states could, for a negotiated price, hire a Hessian colonel or an Italian condotierro and retain their men for a campaign season just as they could use these resources to purchase the most advanced technologies of coercion like siege artillery or rearms. It was by virtue of their economic capacity city-states like Genoa and Florence or groups of independent towns like the Swabian league could raise armies that matched or even exceeded those of territorial states like France or England

and

[…] the relationship between geographic scale and survival probability is the opposite of what war-making theories predict. Over this span small states were more likely to survive than their larger counterparts. In other words, rather than being an age of the territorial state” the period between 1500 and 1800 was one in which small political communities not only persisted but remained the typical form of political organization.

Read the rest of the paper here. So small territorial units dominated much of Europe during the initial phase of modernity and industrialization. What I’m trying to piece together is a way to incorporate the ability of small states to provide for themselves while at the same time maintaining ties with multiple neighbors in a way that binds them economically and politically, but without the coercive apparatus of a central government.

I think Madison was thinking about the same thing when he drafted the federal republic of the US, but it seems to me there is a right way to do federal republics (US) and a wrong way (Latin America). Does this make sense?

What is Europe?

Brandon Christensen Current Events , , , ,

Thomas Brussig, a novelist from the former East Berlin, says he first got to know Russia after the fall of the Soviet Union when he visited during a book tour. During his stay, he recalls being constantly asked which Russian writers influenced him. Brussig didn’t give the obvious answers — Tolstoy or Dostoyevsky. He instead named a third-rate Soviet writer, Arkady Gaidar. “I did it to exact a bit of revenge and to remind them what imperialists they had been,” he says.

Brussig says he has no special attachment to the Russians. He says the only Russian figure he actually views positively is Gorbachev. It was “his vision of a Common European Home that cleared the way for the demolition of the Soviet Union.” It was a dream of a Europe without dividing lines. “We shouldn’t act as though the border to Asia starts where Lithuania ends,” says Brussig. “Europe reaches all the way into the Ural Mountains.”

There is more here. Do read the whole thing (it’s about the relationship between Germans and Russians).

For the record, I can buy Brussig’s argument but why stop at the Ural Mountains and the Mediterranean?

Introducing the Weekly Wakeup

Adam Magoon History, Liberty , , ,

History is one of my passions and one I share with the late Murray Rothbard.  His examinations and refutations of the commonly accepted truth were one of my early inspirations into exploring libertarian thought.  I urge you to consider this quote from Plato’s Apology: “I am wiser than this man, for neither of us appears to know anything great and good; but he fancies he knows something, although he knows nothing; whereas I, as I do not know anything, so I do not fancy I do. In this trifling particular, then, I appear to be wiser than he, because I do not fancy I know what I do not know.”  This is the first in what should be a long series of weekly blurbs about common misconceptions and downright lies about history.  I will be looking forward to responses and suggestions for future topics in the comments.

Weekly Wakeup for 01-17-2014

Myth:  Early European colonists in North-America enacted a systemic genocide of native peoples from the start.

Reality: “The most hideous enemy of native Americans was not the white man and his weaponry, concludes Alfred Crosby,’but the invisible killers which those men brought in their blood and breath.’ It is thought that between 75 to 90 percent of all Indian deaths resulted from these killers.”

Another source confims:

“[B]ased on the data, the team estimates that the Native American population was at an all-time high about 5,000 years ago.

The population then reached a low point about 500 years ago—only a few years after Christopher Columbus arrived in the New World and before extensive European colonization began.

Study co-author Brendan O’Fallon, a population geneticist who conducted the research while at the University of Washington in Seattle, speculates that many of the early casualties may have been due to disease, which ‘would likely have traveled much faster than the European settlers themselves.’

For instance, the Franciscan friar Toribio de Benavente—one of the first Spanish missionaries to arrive in the New World in the early 1500s—wrote that Mexico was initially ‘extremely full of people, and when the smallpox began to attack the Indians, it became so great a pestilence among them … that in most provinces more than half the population died.'”

Myth: This disease epidemic was directly caused by settlers through planned biological warfare.

Reality:

“Unfortunately for this thesis, we know of but a single instance of such warfare, and the documentary evidence is inconclusive. In 1763, [ed. Notably long after the “500 years ago” mark where the population was already markedly declined] a particularly serious uprising threatened the British garrisons west of the Allegheny mountains. Worried about his limited resources, and disgusted by what he saw as the Indians’ treacherous and savage modes of warfare, Sir Jeffrey Amherst, commander-in-chief of British forces in North America, wrote as follows to Colonel Henry Bouquet at Fort Pitt: ‘You will do well to try to inoculate the Indians [with smallpox] by means of blankets, as well as to try every other method, that can serve to extirpate this execrable race.'”

I would like to point out that this attack, if it ever did actually happen, was initiated not by individual settlers but instead by the military government in that region.  A group that I do not and would not defend under any circumstances.   I would also like to preemptively say that I am not attempting to justify the forced relocation of Native peoples later in history, wars waged by either side or the murder of civilians by either group.  Instead I merely wish to question the assertion that there was an intentional and premeditated genocide.  A fact that seems obvious when you consider up to 90% of the native population was already dead from disease before the first colonists even arrived.

Around the Web

Brandon Christensen Current Events, Links , , , , , , , , , , , , , ,
  1. An Israeli (grad student) and an Iranian (grad student) on the way forward
  2. An Anarchist’s Proposal for Limited Constitutional Government
  3. Red White: Why a Founding Father of Postwar  Capitalism (Keynesianism) Spied for the Soviets
  4. Is Fascism Returning to Europe?
  5. Freedom of Speech: True and False (Duck Dynasty edition)

Around the Web

Brandon Christensen Current Events, Links , , , , , ,
  1. The Decline and Fall of France
  2. Rooked: The evolution of cheating in chess
  3. The decline of Europe’s military might
  4. Bodies in the desert
  5. Is antisemitism back in Europe? Did it really ever leave?
  6. The superiority of democracy over dictatorship is no reason to ignore the problem of political ignorance
  7. Why did men stop wearing high heels?