Co-editor Fred Foldvary explains why gas prices are so high at the moment.
David Henderson keeps his eye on the ball when it comes to higher gas prices.
Co-blogger Jacques Delacroix has his suspicions as well.
Fred Foldvary
Somalia and Anarchy: Links Edition
- I am too lazy to write much more on Somalia right now (you can always check out my latest piece again if you are really itching for something satisfying), so I have compiled a list of great pieces I have read over the past couple days on Somalia, Anarchy, and the idea that post-colonial states ought to fail more often than not.
- Jeffrey Herbst and Greg Mills argue over in Foreign Policy that the Congolese state needs to fail if the region is to ever know peace again.
- Over in the New York Times, Alex de Waal argues along the same lines that I have: that Somalia as it stands is a bad idea, and that much more decentralization is needed for it to effectively flourish.
- The Mises Institute has two wonderful articles (one by an anthropologist and one by a lawyer) on why anarchy has been great for Somalia, despite the government interventions imposed upon the Somalis by the West over the past two decades (and, really, much longer than that, but I digress).
- Political Economist Chris Blattman raises the flag of caution, though. How do we really know that more states will be better for the people living in these regions?
- Co-editor Fred Foldvary defends anarchism’s good name after the (government-initiated) looting in Iraq.
- And last but not least, Cato Unbound, one of my favorite places to visit, had an excellent symposium on anarchism awhile back (like, 5 years ago). Here is Pete Leeson’s lead essay, in which Somalia is specifically used to illustrate his points. Be sure to read the responses of the other members in the exchange, too.
Have a great weekend, and have fun with all the reading! One of the things that really bothers me is the example of Somalia that is thrown out in favor of government over liberty. I really hate having to take the time to explain to people that the problems in Somalia are created by the government! It’s like screaming at a brick wall…
Links From Around the Consortium
Jacques Delacroix continues his vendetta against Ron Paul.
Dr. Ninos Malek points out the obvious in regards to guns and public schools
Fred Foldvary has a wonderful piece in the Progress Report on Turkey joining NAFTA
Brian Gothberg (with Gregory Christainsen) writes on property rights and whaling technology
Professor Jeffrey Rogers Hummel on Ben Bernanke versus Milton Friedman (pdf) in the Independent Review
Have a great weekend!
Links From Around the Consortium
Over at the Progress Report, Dr. Fred Foldvary writes on how we can extirpate poverty from the world.
Jacques Delacroix calls out Ron Paul’s statement about Iran being surrounded by the U.S. government.
Professor Jeffrey Rogers Hummel tackles the issue of slavery head-on in a Freeman article.
Brian Gothberg writes about the potential technology has to start protecting the ocean’s resources through property rights.
And our newest blogger, Dr. Ninos Malek, defends stereotyping (defending the undefendable is why I love being a libertarian!).
Iraq, War, and the Litmus Test of Rationality: Ron Paul Edition
The Republican Presidential debates have been on TV for the past, what?, five or six months now, and I am proud to admit that I haven’t watched a single one of them. By definition I am a left-leaning libertarian who thinks that free markets, limited government, and a humble foreign policy are the best tools to achieve social harmony, prosperity, and world peace.
So I had basically made up my mind on who I was going to vote for prior to the whole campaign season: Gary Johnson. Now, co-editor Fred Foldvary has some very pertinent critiques of Governor Johnson’s tax policy proposals, but on the whole, I still think he is by far the best man to get my vote.
Because Gary Johnson does not have any baggage, a solid record while in office, and a personality that does not attract the worst of the worst to his message, he was essentially dead on arrival when he announced his Presidential campaign. The media and its horse race would have none of it. So he bolted the Republican Party and is now fighting for the Libertarian Party’s nomination.
I think this is a big mistake. I think he should have stayed in the Republican Party and planned ahead for 2016. Now, he is going to be the next Ron Paul, who also bolted the Republican Party to run as a Libertarian in 1988. That move has cost him politically, and it is a shame that Johnson was too hot-headed with the national Party apparatus’ dismissal of his campaign. Continue reading
From the Comments
Co-editor and Economics professor (who happened to predict the economic crisis of 2008 in a book a year before it happened) Fred Foldvary makes a very important point regarding some of the common fallacies associated with trade deficits and tariffs:
The reason the US has a big trade deficit is that US taxes make exports more expensive. Most other countries have big value added taxes, which get subtracted from export prices. WTO rules allow for the deduction of VAT but not of income taxes from exports. If the US shifted from income taxes to either VAT or LVT (land value taxation), the trade deficit would largely disappear.
But given current taxes and WTO rules and the trade deficit, high tariffs on imports would destroy US comparative advantages, artificially boosting high-cost industries. The US would have to abandon the WTO, and other countries would retaliate with tariffs against the US.
If California has a big trade deficit with New York, would a tariff against imports from NY help? If not, then a tariff against China is likewise counterproductive. The law of comparative advantage works regardless of borders. I have a big trade deficit with my local grocery store; I import their food and they get no products from me, only a money asset. Would a tariff on the food store’s exports help me? Sure I would buy less of their food, but I want their food, and I want it cheap!
Two things I would like to draw attention to in this great piece of insight: 1) income taxes are horrendous and 2) the avowed internationalism of the freedom message. I would like to repeat a basic insight that Dr. Foldvary provides to readers: “If California has a big trade deficit with New York, would a tariff against imports from NY help? If not, then a tariff against China is likewise counterproductive. The law of comparative advantage works regardless of borders.”
One of the best ways to tell a “real” libertarian from a “fake” libertarian is the defense of internationalism that is given for any argument. Nationalism is a vulgar and often extremely harmful way of thinking and has destroyed countless lives and restricted countless others from attaining affluence and dignity. It feeds the growth of the State at the expense of the individual and contributes to malice in foreign affairs. The concept of international trade as it is spelled out by Dr. Foldvary is especially important. Also remember, if you have any questions regarding subjects, don’t hesitate to ask. This is a blog run (mostly) by intellectuals, and one of the goals of this consortium is to help educate the intelligent layman on sophisticated subjects.
My prompt regarding democracy also produced a number of great insights, and so far I have found subconch‘s input to be the most thought-provoking:
“The individual is core in a democracy, and the process should not be beyond his reach, or overwhelm him so, that he may not select his representative by reason, or further recognize intrusion on his or his neighbor’s liberty. The people are the ultimate check and balance on the system, but if they be separated from it, the scales will continually tip toward tyranny.”
I highly recommend reading the whole ‘comments’ section.
More Great News!
As many of you know, Dr. Jacques Delacroix has begun posting to the blog. Dr. Delacroix has a PhD in Sociology from Stanford and his work has been published in the discipline’s top-flight journals. Prior to retiring, he taught at Santa Clara University’s Leavey School of Business alongside co-editor Fred Foldvary. You can read more about him here.
We also have another new addition to the consortium as well: Dr. Ninos Malek, an Economics Professor at San Jose State, De Anza College, and Valley Christian High School. Dr. Malek earned his PhD in Economics from George Mason University and his work has been published in a wide variety of academic and online publications. You can read more about Dr. Malek here.
Great News!
Co-Editor Fred Foldvary has been invited to be a contributor to a blogging symposium about “Libertarianism and Land” put on by the Bleeding Heart Libertarians consortium. Here are the details:
I’m very pleased to announce that from April 23-27 of 2012, the Bleeding Heart Libertarian blog will be hosting a virtual symposium on the topic of “Libertarianism and Land!”
The five day event will explore different libertarian perspectives on questions pertaining to the moral justification of and limits on property rights in land. Each day will feature a keynote post from one of our main participants. The other main participants will have the opportunity to respond with posts of their own, and the general public is welcome to participate in the comments thread.
We’ve lined up some terrific people for this event. Our main participants will be:
- Eric Mack – Professor of Philosophy at Tulane University
- Hillel Steiner – Professor of Political Philosophy at the University of Manchster
- Fred Foldvary – Lecturer in Economics at Santa Clara University
- Kevin Carson – Blogger and author
- David Schmidtz – Professor of Philosophy and Economics at the University of Arizona
More information to follow as the date draws nearer. I hope you’ll join us for what I think will be a fascinating discussion!
Do be sure to tune in to Bleeding Heart Libertarians all that week. I am sure that many good things will come of this, especially since Fred Foldvary was one of the few people in the world to accurately predict the housing bubble collapse based upon his knowledge and understand of land and its connection to the economy.
Links From Around the Consortium
Brian Gothberg’s piece on whaling and property rights deserves another look, as he channels Nobel laureate Ronald Coase:
According to a simple version of the Coase (1960) theorem, if the costs of transacting were very low, it would not much matter for the allocation of resources how stock rights were initially assigned. Trading ensures that rights would be put to their highest-valued uses, whatever they might be. If particular whales have more value as a source of pizza toppings than as the subject of a tourist?s photo session, whale-watching companies would be encouraged to sell any rights that they might have to whalers. If, on the other hand, particular whales have great value simply as magnificent creatures whose existence is to be nurtured and cherished, conservation groups would tend to end up with the rights to those whales.
Reality is not always simple, however. Transaction costs are sometimes high. In particular, there is a free-rider problem […]
Co-editor Fred Foldvary opines on how deregulation hurts the economy. This is perhaps the best piece I have found on regulation and its effects on the economy at large.
I found this piece by Jeffrey Rogers Hummel on President Martin van Buren, whom he calls the ‘American Gladstone’. If you’re itching for some historical information on one of the American republic’s little known presidents, I recommend you grab a cup of coffee and enjoy.
And, not to be outdone, Jacques Delacroix asks if the French have it better. He is specifically referring to the debt-to-GDP ratios of France and the U.S. The whole thing is good throughout, more so because Delacroix professes to hate the French.
Rainy Day
Here is a quick list of links around the web from our bloggers at the consortium:
Fred Foldvary weighs in on the 2011 Nobel Prize winners in Economics
Some Possible Consequences of a U.S. Government Default by Jeffrey Rogers Hummel
One of Jacques Delacroix’s famous short stories (and this co-editor’s personal favorite)
Brian Gothberg introduced me to Colossus: The Forbin Project at a summer seminar in 2009
I hope everybody stays dry out there!
Laundry Day!
Links from around the web by the consortium.
Brian Gothberg wants to save the whales.
In an oldie but goodie, Jeffrey Rogers Hummel writes about Federal Reserve accounting and insolvency.
Jacques Delacroix feels remorse for singing the praises of Newt Gingrich.
And Fred Foldvary gives his take on the Israel-Palestine mess.
Happy Friday, and enjoy your weekends!
Notes On Liberty 