Risks Of Regulation

A bit dated but still very relevant.

Regulation; the four letter word of the business world.  Many people see regulation as a protective shield from the ‘dangers’ of the businessman; a way to protect people, property and the environment.  The oil industry is one of the most heavily regulated enterprises in the United States.  Despite being intended to protect us; these regulations failed catastrophically on April 20th, 2010 when the Deep Water Horizon oil rig suffered a mechanical failure resulting in an explosion which sank the rig two days later(1).  Yet, when the disaster happened, we were met with pleas for more government oversight and more red tape.  The regulations on that industry, both in the Gulf Mexico and throughout the country, helped cause the Deepwater Horizon disaster and removing them would help prevent similar disasters in the future.

Regulations in the Gulf of Mexico begin with the Minerals Management Service (MMS).  Created in 1982 due to the Federal Oil and Gas Royalty Management Act the MMS “both regulates the [gulf oil drilling] industry and collects billions[of dollars] in royalties from it”(2, 3).  The MMS’s responsibility to regulate includes monthly inspections, issuing safety documentation, and issuing safety citations(3).  Royalty collection is based on number of barrels of oil removed and varies from well to well.  The MMA also provides  “royalty relief“ to a number of rigs based on previous legislation. Until November of 2000 the royalty relief was issued based on the Outer Continental Shelf Deep Water Royalty Relief Act of 1995, better known as DWRRA.  This act “relieves eligible leases from paying royalties on defined amount of deep-water production”.  At depths over 2,526 feet oil companies did not have to pay the United States royalties on 87.5 million barrels of oil, between 1,312 and 2,625 feet the relief was 52.5 million barrels and between 656 and 1,312 feet the relief was only 17.5 million barrels.  While this act expired in the year 2000 it was replaced by an incentive program that allowed royalty relief to be “specified at the discretion of the MMS”(4).  This incentive program provides more relief if a drilling site is “more expensive to access” even if it is at the same water depth as another rig receiving less relief (2).  The royalty relief system provides incentives for Oil Rigs to operate in deep waters, especially those classified as “Ultra-Deepwater” by reducing the royalties paid on those sites(5).

While not specific to the gulf, there are a variety of moratoria on drilling throughout the country.  These moratoria take two forms.  The first set, known as “leasing moratoria” are general bans on drilling in select areas , the second set are temporary bans due to specific incidents.  Since   the fiscal year 1982 congress has denied funds to the MMS to “conduct leasing for the specified Outer Continental Shelf areas”.  Currently there is a “blanket moritorium” on leasing in effect “through 2012” that covers a large portion of both the East and West coasts( 2).  One of the largest bans on drilling however exists in the Arctic National Wildlife Refuge(ANWR).  Located in the “northeast corner” of Alaska over ten million acres of land are off limits to drilling.  In this wildnerness it is estimated that there exists “between ten billion and sixteen trillion barrels of oil” that could supply twenty percent of U.S. demand for nearly thirty years(6).  The most recent temporary bans have been a result of the Deepwater Horizon disaster.  A “30-day pause in offshore drilling” followed the sinking of the Horizon rig(11).  This did not only cover BP’s rigs but all offshore drilling “based on water depth”(7).  That ban was removed by a federal court, but was replaced with a revised ban that will be in effect until November, 2010(7).

Beyond physical limitations on drilling there are also economic regulations.  There are a number of federal subsidies and tax breaks for the drilling industry.  David Kocieniewski says that “examination of the American tax code indicates that oil production is among the most heavily subsidized businesses”.  These tax breaks occur for a number of reasons.  Many are simply to lure oil companies to American shores, others were “born of international politics” or “date back nearly a century”(8).  Beyond that the United States government has put “Liability Limits” on drilling operations.  The Oil Pollution Act of 1990 limits an oil companies liability for damages to only $75 million dollars.  Any remaining damages, up to $1 billion, are payed through the Oil Spill Liability Trust Fund.  This fund is “financed primarily through a fee on imported oil”(1).  Senator Robert Menendez from New Jersey recently introduced bill, S. 3305 which would raise that cap to $10 billion(9).

All of these laws and regulations have one thing in common.  They increased the probability of a catastrophic oil spill in the Gulf of Mexico.  Each regulation increased the risk of such a spill in some way and when combined they resulted in the disaster that is causing massive destruction in the Gulf today.  The Minerals Management service was organized to be the overarching regulatory body for the Oil Industry.  Why did it fail in its duty?  Why did “spills from offshore oil rigs…in U.S. waters more than quadrupled this decade” despite the MMS’s oversight(10)?  This question was answered by economist Walter Block in his book The Privatization of Roads & Highways (12).  Quoting Cecil Mackey, former Assistant secretary of transportation, he says:

“As the more obvious regulatory actions are taken; as the process becomes more institutionalized; as new leaders on both sides  replace ones who were so personally involved as adversaries in  the initial phases, those who regulate will gradually come to reflect,     in large measure, points of view similar to those whom they regulate.”

Quite simply, the MMS adopted the views of the Oil Industry completely negating their ability to regulate it.  Congressman Nick J. Rahall confirms this saying “MMS has been asleep at the switch in terms of policing offshore rigs”.  Using numbers supplied by the MMS in the prior 64 months before the incident “25 percent of monthly inspections were not performed”(3).  Are we to believe another agency would be any more efficient?  Bureaucracy and corruption are not the only things to blame however; legislation played a vital role in this disaster as well.  DWRRA, for example, incentivized the risk to drill in deep waters.  Under DWRRA the greater the depth being drilled the greater the royalty relief amount.  These waters are inherently less safe to drill in.   It is easy to compare the difficulties in dealing with a site 5000 feet below the ocean against one 500 feet below the surface.  These incentives were made worse when DWRRA expired.  Under the new program “the most economically risky projects would receive the most relief”, safer projects on the other hand would receive “little or no relief”(4).

While acts like DWRRA incentivize the risk of deepwater drilling the greater incentive to drill in the Gulf of Mexico is simply that there are so few places to drill in the continental United States.  The United States Exclusive Economic Zone extends “200 nautical miles” from all of it’s shores(2).  Yet, much of this area is off limits to drilling.  The “blanket moratorium” issued by former President George H.W. Bush in 1990  restricts drilling in “all unleased areas offshore Northern and Central California, Southern California except for 87 tracts, Washington, Oregon, the North Atlantic coast, and the Eastern Gulf of Mexico coast”.  The Gulf of Mexico is the only economically viable offshore area left for them to drill.  This of course pales in comparison to the Arctic National Wildlife Refuge.  Most of the 10-million-acre area is not even adjacent to the ocean, surely drilling on land or in shallow water is much safer than drilling 5000 feet under the ocean(6).  Beyond helping to cause the spill in the first place the government is increasing the risk of future disasters.  The temporary ban issued in response to the Horizon spill “neither improves safety nor mitigates risk”(11).  By forcing drilling to stop you immediately cause a number of problems.  Reentering a location is as dangerous, if not more so, than the original drilling operation.  Experienced workers have been fired, laid off, or relocated and will need to be replaced with less experienced ones.  Equipment in worse quality will be all that remains when the moratorium ends(11).

The economic regulations were the proverbial straw that broke the camel’s back.  A single tax break for the Deepwater Horizon oil rig covered “70 percent of the rent” or “$225,000 a day”.  Or, as policy analyst Sima J Gandhi describes it “We’re giving tax breaks to highly profitable companies to do what they would be doing anyway”(8).  These breaks are not only an unfair advantage, they incite these companies to make riskier choices.  If the potential cost of the Deepwater Horizon rig wasn’t offset by these breaks it may not have been economically viable to drill in such a dangerous location.  On top of the lower cost of the initial operation; the Liability Caps ensured that any potential risk was marginalized by the government.  The $75 million limit that has been in effect since 1990 was a message to the industry to attempt increasingly risky drills(1).

The oil companies should be liable for the full cost of any damages done by their rigs.  The worry that “operators and nonoperators in the U.S. Gulf of Mexico will be unable to obtain adequate protection from insurance” is totally unjustified (1).  If the site is not economically viable then there is no reason to drill there.  If BP and Transocean knew they would have been liable for all damages they would not have received a citation for “not conducting well control drills as required and not performing ‘all operations in a safe and workmanlike manner'”(3).  There would have been an incentive to spend money on safety, training and equipment instead of the incentive to take risks knowing they would be protected.  Or as one lawyer explained the situation “arbitrary liability caps are just not reasonable.  You cannot decide the expense of a disaster before it happens.  Liability caps allow companies like BP to avoid bearing the responsibility for the full cost of the damage they inflict”(9).

The oil has stopped flowing from the bottom of the Gulf; for now.  The question remains: How can we prevent this from happening again?  There, of course, is no easy answer.  Accidents, mistakes, and disasters can never be guarded against completely.  We can however mitigate the risk involved in those dangerous operations that are needed for the sake of humanity.  The best way to increase the safety of the oil industry is to remove the regulations that incentivize the risks involved in their industry.  Preventing drilling in safer areas, tax breaks, royalty reductions, liability limits; all these things make an already dangerous prospect that much more perilous.  We need to neither help nor hinder these companies, they must succeed or fail on their own merits.

Sources available upon request.

Rick Weighs on Intellectual Property: More Questions Than Answers

Adam recently posted that the British government is contemplating pretty outrageous penalties for Internet pirates. Naturally I wanted to chime in with an outrageously long comment about the nature of property and the (im)possibility of intellectual property (IP) rights. That’s just the libertarian thing to do! There’s a lot to say and it will take more than a few beers to sort this whole thing out, so I’m going to limit myself which means I’ll just raise more questions than I answer…

So let’s start with why IP doesn’t make a lot of sense. IP is information and information wants to be free. My use of a song doesn’t prevent you from using it. IP isn’t scarce in the way a car is. Besides, there’s some evidence that government enforcement of IP does more harm than good. And pirates end up spending more to buy IP than other people anyways (I usually listen to music for free on Grooveshark, but the other day I thought, “I’d really like to tell Willie Nelson that I think his music is great,” so I bought an album even though I could have listened to it for free!). And besides, musicians can make money by performing live.

But just because it isn’t a tangible thing, doesn’t mean we are forbidden from attaching rights to it, even in anarchy. Property rights are a “bundle of sticks.” I own my land, but you might have a right to the sunshine I would block if I built a skyscraper. Likewise, a society can come to some sort of quasi-unanimous agreement that the creator of a song has the right to control its use, even in the form of digital files.

Now, government enforcement of IP laws is fraught with difficulties even before we get to public choice issues. Should a patent be 20 years or 19.5? If the optimal patent length is 16 years, then the current system is a net subsidy and so creates economic inefficiency. But determining the optimal length in a world of benevolent political actors is an incredibly complex problem. How stringently should patents be enforced? How do we account for the differences in conditions that affect different patents (or copyrights, etc.)? This argument doesn’t say “don’t do IP,” it just says, “hey, this whole venture has its own set of costs we need to account for. It’s conceivable that we conclude that the optimal patent is probably between 5 and 20 years, but if we’re off by more than 4 years the costs of the error will outweigh the net benefits of the patent.

Then there’s the public choice problems. We don’t want IP law to be some Mickey Mouse operation set up to hurt consumers.

But (and that’s a big but!) we have to return to this issue of property rights. When I buy an apple, I’m concerned with the physical thing, but really I’m buying a bundle of rights. The rights are what’s being exchanged, and then later exercised. These rights are socially determined and often-but-not-always-or-even-mostly enforced by government. Yes, if I steal your car the government will probably get involved. Yes, the government provides a back-stop to rights enforcement in a lot of areas. But rights are ultimately a social-political construct that can exist in anarchy. What does this mean? First, it means that we could conceivably have intellectual property rights . Second, it means that we could have such rights in a state of anarchy.

Obviously the nature of the good will affect the viability of such a system. Enforcing IP laws is difficult enough when some third-party can come in and say “you’re a pirate and you’re going to jail.” In a common law situation where you have to make the plaintiff whole, it’s difficult to say what that means. Reputation plus property rights might keep comics from stealing others’ material, but it might just separate the comedy industry into auteurs with sophisticated audiences and Carlos Mencia with less sophisticated audiences.

We can safely label a law or institution as legitimate if it is unanimously accepted. In the case of IP, such unanimity seems unlikely. In any case, I still suspect that government involvement in IP does net harm although I’ll grant that it’s a (probably impossible to answer) empirical question.

Is China running out of cash?

Is China running out of cash?

China Halts Bank Cash Transfers

“The People’s Bank of China, the central bank, has just ordered commercial banks to halt cash transfers.”

Could we be seeing the start of total economic collapse? The answer, ceteris paribus, is yes and the Austrian Business Cycle Theory (ABCT) explains why.

To quote Ludwig Von Mises’ explanation of the final act of the ABCT:

Ludwig von Mises stated that the “crisis” (or “credit crunch“) arrives when the consumers come to reestablish their desired allocation of saving and consumption at prevailing interest rates.[12][

This means that when consumers finally realize that the money they have invested has actually been malinvested in the economy they then seek to acquire as much of their money as possibly from said investments. Most of which take the form of bank deposits.

The linked article reminds us that this is the numerous such time that China has adopted this policy saying:

“So what’s really going on?  This crunch follows similar incidents in June and December of last year.  In June, for instance, the central bank used the excuseof a “system upgrade” to allow banks to shut down their ATMs and online banking platforms.  As a result, they conserved cash and thereby avoided a nationwide meltdown.”

Other instances, such as this one in England where “[s]ome HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it,” show that this problem may not be contained to China and may be spreading to the international market.

What does Murray Rothbard say will happen when this “credit crunch” inevitably occurs?

Wasteful projects, as we have said, must either be abandoned or used as best they can be. Inefficient firms, buoyed up by the artificial boom, must be liquidated or have their debts scaled down or be turned over to their creditors. Prices of producers’ goods must fall, particularly in the higher orders of production—this includes capital goods, lands, and wage rates […]

this means a fall in the prices of the higher-order goods relative to prices in the consumer goods industries. Not only prices of particular machines must fall, but also the prices of whole aggregates of capital, e.g., stock market and real estate values. In fact, these values must fall more than the earnings from the assets, through reflecting the general rise in the rate of interest return […]

“Since factors must shift from the higher to the lower orders of production, there is inevitable “frictional” unemployment in a depression, but it need not be greater than unemployment attending any other large shift in production. In practice, unemployment will be aggravated by the numerous bankruptcies, and the large errors revealed, but it still need only be temporary […]

Another common secondary feature of depressions is an increase in the demand for money. This “scramble for liquidity” is the result of several factors: (1) people expect falling prices, due to the depression and deflation, and will therefore hold more money and spend less on goods, awaiting the price fall; (2) borrowers will try to pay off their debts, now being called by banks and by business creditors, by liquidating other assets in exchange for money; (3) the rash of business losses and bankruptcies makes businessmen cautious about investing until the liquidation process is over.

With the supply of money falling, and the demand for money increasing, generally falling prices are a consequent feature of most depressions. A general price fall, however, is caused by the secondary, rather than by the inherent, features of depressions.

So is the massive failure of all economies imminent? Well not necessarily because the government can take some steps to prevent the immediate failure.

According to Mises:  

“Continually expanding bank credit can keep the borrowers one step ahead of consumer retribution (with the help of successively lower interest rates from the central bank). In the theory, this postpones the “day of reckoning” and defers the collapse of unsustainably inflated asset prices.[12][14] It can also be temporarily put off by price deflation or exogenous events such as the “cheap” or free acquisition of marketable resources by market participants and the banks funding the borrowing (such as the acquisition of land from local governments, or in extreme cases, the acquisition of foreign land through the waging of war).[15]

The “false” monetary boom ends when bank credit expansion finally stops – when no further investments can be found which provide adequate returns for speculative borrowers at prevailing interest rates”

These steps only “kick the can down the road” and delay the inevitable since “the longer the “false” monetary boom goes on, the bigger and more speculative the borrowing, the more wasteful the errors committed and the longer and more severe will be the necessary bankruptcies, foreclosures and depression readjustment.”

We may be seeing the beginning of the next great depression here but only time will tell.  One thing is certain though, a massive economic readjustment is coming and the central banks of the world have only been aggravating the problem.  When it will hit is anyone’s guess but in this author’s opinion we are either looking at a repeat of the early 30’s or a repeat of the early 40’s and I can only hope we can avoid going through both.

Myths about Libertarianism

Many articles have recently appeared in magazines, web sites, and social media criticizing free markets and libertarian ideas. It seems to me that this opposition is a result of a growing interest in freedom as people realize that the economies of the world are in serious trouble. As people see continuing high unemployment, slow growth, ever greater government debt, environmental disaster, more turbulent weather, and endless wars, some folks seek solutions in greater freedom while others seek solutions in greater state control. The critics of libertarianism and economic freedom have fallen for several fallacies.

1. Critics confuse today’s mixed economies, a mixture of markets and government intervention, with a “free market.” A truly free market is an economy in which all activity is voluntary for all persons. Government intervention changes what people would otherwise voluntarily do. A pure market would not impose the taxation of labor and capital. It would not prohibit trade with Cuba. Free markets would not subsidize industry. Any peaceful and honest action would be free of restrictions and taxes. That is not the economy we have today in any country.

2. Critics use the term “capitalism” to falsely blame markets for economic trouble. Those opposed to private enterprise call today’s economies “capitalist.” They then note that the economy has trouble such as poverty, great inequality, unemployment, and recessions. The critics conclude that “capitalism” causes these problems. This illogic uses a sly change in meaning. They use the term “capitalism” as a label for the current economies and also to refer to free markets. It makes no sense to label the economy as XYZ and then say XYZ causes problems. The critics use the double meaning of “capitalism” to blame the non-existing free market for social problems. This confusion is often deliberate, as I have found that it is almost impossible to get the critics to replace their confusing use of the term “capitalism” with clearer terms such as either the “mixed economy” or the “pure market.”

3. Critics think that the “market” means “anything goes.” For example, they think that a free market allows unlimited pollution. They often call this, “unbridled capitalism.” But freedom stops at the limit of harm. In a pure market with property rights for all resources, pollution that crosses outside one’s own property is trespass and invasion. This violation of others’ property rights would require compensation, and that payment would limit pollution.

4. Critics confuse privatization with contracting out. They then blame private enterprise for problems such as occurs with private prisons. When government contracts with private firms to produce roads, it is still a governmental road. When governments hire private contractors to provide services in a war, it is still government’s war. Government sets the rules when firms do work under contract. Genuine privatization means transferring the whole ownership, financing, and operation to a private firm.

5. Critics overlook subsidies. Government distorts the economy with subsidies to agriculture, energy production, and other corporate welfare. The biggest subsidy is implicit: the greater land rent and land value generated by the public goods provided by government and financed mostly from taxes on labor and enterprise. Critics not only ignore this implicit subsidy but also overlook the explicit subsidies to agriculture and programs such as the promotion of ethanol from corn.

6. Critics do not understand the crowding out of private services because of government programs. The critics of libertarianism say that with less government, old folks and poor folks would starve and die because they would not receive social security and medical care. What they overlook is that the reason many of the elderly have little savings for retirement is that government took away half their income while they were working. Income taxes reduce their net wages, while sales taxes raise the cost of living. Low-income people pay little or no income tax, but they pay hefty sales and excise taxes, and they indirectly pay property taxes from their rental payments to landlords. Libertarians want to abolish poverty and have a society where all people have good medical care. They just want to accomplish this by letting workers keep their full pay, which would enable them to pay for their own medical services. Also, with no taxes on interest and dividend income, people would be better able to provide for their own retirement income, indeed to have much more than social security now provides.

7. Critics fail to understand contractual governance. A pure market would not consist of isolated individuals. Human beings have always lived in community associations. In a free market, communities such as condominiums, land trusts, and civic associations would provide the public goods that the members want.

8. The critics of market believe that corporations control the economy, exploit labor, and plunder the planet. Corporations do have power, but mainly because they obtain subsidies and monopoly privileges from governments. But labor unions and lawyers also lobby the government for power and favors. Rather than blaming private enterprise, the critics should examine how the structure of government enables special interest to obtain power and wealth.

Leo Tolstoy wrote in 1905 that nobody really argues with the economics and philosophy of Henry George and public revenue from land rent; the critics either misunderstand the concepts, or they create misinformation. The same applies to critics of libertarianism. The fact that the critics falsify the free market in criticizing it implies that the actual concept is sound, otherwise they would provide valid arguments.

Nobody has refuted the free market and the libertarian ethic of “live and let live”. The critics of liberty either misunderstand it or else falsify it. Even when their errors in logic, their false evidence, and their confused terminology are pointed out, the critics persist in their falsification. They are stubbornly anchored to their viewpoints. Why this is so is a problem I will leave to psychologists to figure out.

Seven Ways Libertarians Sometimes Run Off the Rails

I’m a dedicated libertarian but my first allegiance is to accuracy.  It pains me when I see libertarians making arguments that are inaccurate, irrelevant, or just plain wrong.  When they do so, they do themselves and our movement a big dis-service.  I list seven such arguments here.  More could be added.

  1. The Fed is privately owned. This is true only superficially. Member banks own shares of stock in one of twelve district Federal Reserve Banks and they receive dividends on those shares. But they have little in the way of genuine ownership privileges. They cannot sell their stock and their voting rights are very limited. The President of the United States appoints the Board of Governors. Just because a legal arrangement is given labels that suggest private ownership, that doesn’t make it so.

  2. The Bureau of Labor Statistics disguises the true unemployment situation by excluding workers who are “discouraged,” i.e., not seeking jobs. This is true of the U-3 unemployment figure which is the most widely cited figure, and the one the Fed says it is targeting. That figure is currently about 6.5%. The BLS also publishes its U-6 figure, which includes discouraged workers and currently stands at around 13%, down from about 17% at the height of the Great Recession. The BLS is not covering up anything here, although politicians may certainly choose to emphasize one figure or the other depending on what ax they’re grinding. Which is the “true” unemployment rate? There’s no such thing. The figures are what they are and observers can make of them what they will.

  3. “Chain-weighted” versions of the Consumer Price Index are politically motivated.  These adjustments are intended to recognize the substitution effect, the classic example of which is when the price of beef rises and the price of chicken doesn’t, people eat less beef and more chicken. Peoples’ cost of living rises less than it otherwise would. CPI increases as measured by a chain-weighted formula reflect this fact, and the resulting price inflation estimates come out lower than under the old approach. That flashes a green light to some conspiracy theorists. While these adjustments are tricky business, substitution effects are real and the attempt to compensate for them should not be impugned.
  4. The Consumer Price Index is politically manipulated by excluding food and energy. There are many versions of the CPI. One of them excludes food and energy because those prices are usually very volatile. That figure may be useful to economists who want to filter out volatile effects and focus on secular trends. Again, the figures are what they are, and politicians or for that matter we bloggers can use or misuse them as we wish.

  5. “Banksters” control the U.S. government. There is a grain of truth in this one. The big banks are both victims and beneficiaries of government dominance of banking and finance. The reality of government regulation is that regulated firms employ many very smart and very well paid individuals who are constantly finding ways to manipulate or sidestep the regulations to which they are subject. The fact is that the regulators and the regulated are very thick. Banking and finance are controlled by a cabal of government and Wall Street firms and individuals. It’s a mistake to say that either group totally dominates the other.

  6. Global warming is a myth and a scam. Ron Paul, whom I admire very much, blotted his copy book when he said on Fox News, “The greatest hoax I think that has been around for many, many years if not hundreds of years has been this hoax on […] global warming.” A few basic facts are beyond dispute: (a) carbon dioxide is a greenhouse gas, (b) CO2 levels are at an all time high, and (c) human activity is the primary cause of the increase. Beyond that, the evidence starts to get sketchy and incomplete. We do seem to have melting polar ice caps, record high temperatures in some places, droughts, etc. But overall there has been almost no temperature increase during the last ten years or so.  Projections of rising temperatures and rising sea levels appear to be too pessimistic. This is a very complex issue and one where biases can overwhelm us if we aren’t careful. Statists are prone to accept the global warming thesis because they see it as a way to increase state power. Libertarians want the issue to go away for the same reason. This would be a great time for all parties to step back an exercise some epistemic humility. There’s a great deal about this issue that we just don’t know.

  7. Let’s get rid of the state entirely, and all will be well. Given the present primitive degree of evolution of our species, a new state will pop up wherever an existing one is overthrown. The key to peace and prosperity is not anything so simple as abolition of the state, but to convince enough people, thoroughly enough, of the advantages of long-term cooperation. Good institutions will follow.

Introducing the Weekly Wakeup

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.

Elephant Poaching: National Tragedy or Tragedy of the Commons?

Elephant Poaching: National Tragedy or Tragedy of the Commons?

Tanzania recently ended a policy of summary execution of elephant poachers predictably due to “a litany of arbitrary murder, rape, torture and extortion of innocent people.”  The prime minister gave a PR response that, for me at least, sums up most government policy saying “The anti-poaching operation had good intentions, but the reported murders, rapes and brutality are totally unacceptable.”

World governments have taken the same measures they always do when individuals consume something that they arbitrarily deem distasteful and simply banned the sale of ivory; a method which has been categorically proved to simply not work.  After all, how easy is it to buy narcotics in America?  Or alcohol in the Middle East?  Or other drugs…in prisons.     

So what is my solution?

As with other commons violations such as over-fishing the answer to the dwindling elephant population is simple.  Privatize it.  Privatize what? You ask.  The elephants of course!  Ivory is a hot commodity in the third world, used for obvious things such as jewelry and decoration and not-so-obvious things like aphrodisiacs and snake-oil like medicines and this demand is not going away any time soon.

Allow promising entrepreneurs to tag, herd, breed, and protect groups of elephants for the purpose of harvesting their ivory, meat, hides, and any other parts of value for later sale throughout Asia and the world.  By doing this you would ensure the existence of these animals for as long as there continues to be demand for them.

Libertariansk feminism

Jag hävdar att det finns två metoder för att tänka på samhället, det strukturella och det principiella, och att god samhällsförståelse uppnås genom den rätta blandningen av de två. Det jag i den här texten kallar för strukturanalys går ut på att hitta mönster, samband och orsaker bakom olika samhällsfenomen. En feminist som jag själv påstår exempelvis att människor ofta förhåller sig till sig själva och till varandra utefter vad de har mellan benen i stället för vad de har mellan öronen. Jag bygger mitt påstående på vad jag har uppfattat för mönster i min omvärld (och i mig själv). Genom den principiella analysen förstår man mänskligt agerande (”ekonomi”) och vilka våra politiska moraliska plikter är.

Svagheterna med en strukturanalys är att den aldrig kan säga att någonting med nödvändighet måste vara sant. Eftersom varje ny observation av världen kan omkullkasta all tidigare inhämtad kunskap kan en strukturanalys bara säga vad som är mer eller mindre sannolikt. Den kan inte heller säga någonting om människovärde annat än som en viss persons nytta för ett specifikt ändamåls skull: om Gunnel hjälpte till att bygga ett hus har hon ett värde medan Gunnar som bara tittade på är värdelös. Det innebär att strukturanalyser har sina begränsningar. De kan av skäl som förklaras nedan aldrig ligga till grund för lagstiftning.

Principanalysens styrka är att den kan leverera nödvändiga sanningar, men kan å andra sidan (i politiska sammanhang) aldrig säga vad som är önskvärt. Genom en principanalys kan man förklara moralisk motivation, att varje individ har rätt till sig själv och det är fel att använda människor som medel och inte som självändamål, alltså människovärde, samt ekonomi, men man kan inte mot bakgrund av en principanalys säga vilken handling som därmed är önskvärd. Mänskliga principer kan i politiska sammanhang bara i generella termer klargöra orsakssambanden mellan ekonomiska fenomen, och säga när och varför det är fel att med våld inskränka på människors frihet.

Politisk-filosofiskt sett baseras vänsterideologier på strukturanalyser. Vänstertänkare förstår samhället genom att titta på motsättningar mellan kapital och arbete eller maktförhållanden mellan olika samhällsklasser. De pekar på sådana mönster och formulerar politik därefter. I den här bemärkelsen är hela socialismen en strukturanalytisk förklaringsmodell. Socialistiska tänkare uppfattar mönster i världen som de i efterhand utvecklar teoretiska förklaringar till. Teoretiseringen ska sedan visa varför människan bättre förvaltar sina resurser gemensamt än individuellt, att det senare bör betraktas som en stöld från allmänheten, och att olika regler och lagar måste instiftas för att begränsa kapitalets makt.

Vänstertänkare gör det grundläggande antagandet att samhället kan och bör dirigeras till att nå ett bättre tillstånd än det rådande. På grund av detta antagande har socialismens politiska gren alltid ett lösningsförslag på problem som uppmärksammas: det är bara att flytta resurser från ett ställe till ett annat, förbjuda en viss handelsform, höja en skatt eller sänka ett företag. Strukturanalysen gör socialismen politiskt attraktiv eftersom den till skillnad från sina principstyrda motståndare säger vad som bör göras i stället för vad som inte bör göras.

Feminismen är (delvis) strukturanalytisk. Jag påstår att vi i socialt samspel manifesterar kön i stället för människa och att detta mönster föder sig själv: den som lärt in ett beteende ägnar ett helt liv åt att utöva det, bekräfta det, och föra det vidare. Genom strukturanalysen kan vi förstå mycket av varför våldtäkter i störst utsträckning begås av män, varför flickor och pojkar ofta utvecklar kvinnliga respektive manliga personlighetsdrag, eller varför ett av könen är överrepresenterat i bolagsstyrelser. Vi kan tack vare strukturanalysen begripa generella normer och värderingar, men på grund av dess metodologiska brister kan analysen aldrig visa att någonting alltid är sant, eller att alla människor är på ett visst sätt. Feminismen måste vara ödmjuk och erkänna undantag: ingen kan antas vara skyldig innan så är bevisat.

På grund av dess metodologiska likheter absorberas feminismen lätt av socialismen. Strukturanalyserna smälter samman. Folk uppmärksammar i sin vardag sexism och samtidigt finns det politiker som säger att de kan lösa problemen – bingo för socialismen. Men när feministisk strukturanalys omvandlas till politik följer problemen som principanalysen uppmärksammar. Politiken kan inte erbjuda fullständig moralisk motivation och saknar därmed legitimitet; den använder människor som medel i stället för som självändamål, och den är oförenlig med principen att människan har en principiell rätt till sig själv. När socialism sväljer feminism växer båda, men inte utan offer.

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Problemet för strukturanalysen är att den inte kan erkänna principanalysen utan att samtidigt rycka bort mattan under fötterna på sig själv. Om det är sant att människan har en principiell rätt till sig själv är ens egna grundantaganden felaktiga: man varken kan eller får koordinera om samhället ovanifrån. Alltså finns det inga skäl för en vänsterfeminist att acceptera principanalyser. Sådana är, eftersom de underminerar den egna positionen, definitionsmässigt felaktiga. Men vänsterfeminismen sträcker sig ännu längre än så och placerar principanalytisk metodologi under sin egen strukturanalys: idén att det skulle finnas evigt rådande principer är en manifestation av underliggande strukturer – det är patriarkatets sätt att befästa sin makt.

Undertecknad har privilegier i samhället. Jag är en vit, välutbildad, heterosexuell man. Generellt sett har jag tolkningsföreträde och njuter av ett större socialt utrymme än många andra. Det är en feministisk strukturanalys som med största sannolikhet stämmer. Men enligt en vänsterfeminist innebär det också att den här textens budskap är mindre viktigt än dess avsändare. Eftersom texten är avsedd att försvaga strukturanalytisk metod och slutsats måste avsändaren tas i beaktande, och det som strukturanalysen förklarar om avsändaren bekräftar att textens budskap är felaktigt: den här texten är självt en produkt av patriarkala strukturer och ska bekämpas, inte läsas. Vänsterfeminism är liksom socialismen ett slutet tankesystem. Allt som talar mot den egna positionen utgör bevis för den egna tesen. Det är oundvikligt. Om motsatsen – principanalytisk metod och slutsats – erkändes skulle ju i stället ens egen politik vara fel.

Detta speglar strukturanalytisk politiks första brott mot mänskliga principer, nämligen att den inte kan erbjuda individen moralisk motivation (politisk legitimitet). Strukturanalysen observerar mönster i verkligheten och fäller därefter slutsatser om vad som bör göras. Eftersom vänsterfeminism och socialism är politiska tankeverksamheter måste slutsatserna om vad som bör göras gälla alla. Skatten ska höjas också för dem som inte vill ha höjd skatt. Men eftersom strukturanalytisk metod bara kan peka på större eller mindre sannolikheter kan den inte ligga som grund till lagstiftning utan att samtidigt drabba alla människor och händelser som utgör undantag från det generella mönstret. En lag mot sexism gäller även för icke-sexister. Ett sådant förfarande erbjuder enbart moralisk motivation till dem som accepterar förfarandet. Det vill säga, strukturanalytisk politik är bara legitimt i strukturanalytikers ögon. Den som också värderar mänskliga principer kan omöjligtvis acceptera att en metod som inte kan säga vad som är sant ensamt erhåller status som sanningssägare: metoden är inte legitim om den utgör en tvingande kraft gentemot människor som saknar skäl att acceptera den.

Jämför med ett litet samhälle där alla invånare har observerat hur en tappad tändsticka orsakade en eldsvåda i ett visst hus. Alla var där och såg hur tändstickan tappades och antände byggnaden, så man stiftar en lag som förbjuder tändstickor. I stället för att producera tändstickor ska samhället börja subventionera företaget Tändare™. Men du råkar var den ende som också såg hur ägaren till Tändare™ dränkte huset i bensin innan elden bröt ut. Är samhällets agerande motiverat på ett sätt som alla invånare har skäl att acceptera? Nej. Det bygger på en strukturanalys och strukturanalyser kan bara peka på större eller mindre sannolikheter. I det här fallet var analysen felaktig (eftersom den saknade minst en observation) och genererade samhällsbeslut som strider mot mänskliga principer. Man kan aldrig veta om strukturanalysen saknar en observation och alltså kan den inte ligga till grund för legitim lagstiftning.

Vänsterdebattörer menar då att man måste kläcka ägg för att göra omelett, alltså att enskilda individer måste komma i kläm för helhetens skull. Det är ett påstående som av sin natur inte kan erkänna mänskliga principer: individer reduceras av strukturanalysen till enheter som mönster utspelar sig genom. I egenskap av enheter är människor väldigt enkla att flytta omkring. Det är bara att utdela order i form av lagar. Men när man gör det bryter man mot en av de mest fundamentala principerna för mänsklig samlevnad, den som säger att det är fel att behandla människor som medel och inte som ändamål i sig. Som strukturanalytiker fäller man omdömet att samhället med en viss sannolikhet ser ut på ett visst sätt, och att det vore bättre om det i stället skulle se ut på ett annat. Om man på vägen dit måste straffa oskyldiga eller på annat sätt utnyttja somliga individer är sådana handlingar lika önskvärda som ändamålet självt. Den enskilde människan saknar helt värde bortom sin funktion för samhällets skull.

Människans egenvärde måste alltid förbises av en strukturanalys. De går inte att förena. Man kan försöka att vara så försonlig som möjligt och i största möjliga mån undvika att kränka egenvärdet, men grundbulten kvarstår: om en strukturanalys anammas så har inte individen respekterats då hennes självbestämmanderätt förutsätter att hon själv ska få välja att omfattas av strukturanalytisk policy eller inte. När detta frånsteg redan har gjorts, till vad hänvisar den strukturanalytiker som påstår sig i största möjliga mån respektera den enskilda människan? Hon kan inte hänvisa till människans rätt till sig själv utan att underminera sin egen position. Påståendet är helt enkelt tomt. Strukturanalytikern har redan fattat beslutet att genomföra den politik som hon själv formulerat, och eftersom detta beslut är fattat kommer hon om politiken kräver det också att frångå sitt påstående att respektera den enskilda människan. Rent metodologiskt kan människor aldrig bli mer än kalkylerbara enheter i en strukturanalys.

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Ovanstående är filosofiska abstraktioner, men som sådana kan de också användas för att beskriva vad som sker i verkligheten. När feminism sväljs av socialism följer politiska lösningsförslag på sociala problem. Den aktuella debatten om kvotering är utmärkt för att gestalta de filosofiska abstraktionerna. En strukturanalys som (korrekt) har uppmärksammat att män är överrepresenterade i bolagsstyrelser över hela världen ligger till grund för kvoteringspolitik. En viss kvot mellan kvinnor och män ska uppnås med hjälp av lagstiftning. Syftet varierar – ibland är det för att företagen ska gå bättre, vilket påstås bära stöd i en annan strukturanalys, men oftast antas jämställdhet i bolagsstyrelser vara ett självändamål. Detta förfarande är oetiskt på många sätt, vilket vänsterfeminister ibland erkänner fast viftar bort, men om man gör en principanalys ur ett genusperspektiv ser man att det är också antifeministiskt. De tre problemen – moralisk motivation, att människor ses som medel och inte som ändamål, samt självägandeskapet – är med nödvändighet närvarande.

Människorna i (och utanför) styrelserna drabbas av vänsterfeministisk kvoteringspolitik då denne endast erbjuder moralisk motivation till dem som redan accepterar vänsterfeminismen. De som blir inkvoterade vet inte om de har sin styrelsepost på grund av sitt kön eller sin kompetens, och samma sak gäller de som blir utkvoterade. De kvinnor som redan hade en styrelsepost befinner sig dagligen i en miljö som präglas av ojämlikhet: de är undantag i ett sammanhang som i största del utgörs av män, och som sådana möter de redan i egenskap av kvinnor motstånd. Om kvoteringspolitiken implementeras måste de nu inte bara jobba dubbelt så hårt för att visa sin kompetens i en sexistisk miljö – de måste också svara för vänsterfeministisk politik. Att de faktiskt skulle göra sitt jobb bra på grund av vad de har mellan öronen och inte mellan benen ifrågasätts nu två gånger i stället för bara för en. Kvoteringspolitiken utgår från att kvinnor till skillnad från män behöver laga stöd för att nå styrelseposter. Det är en cementering av könsskillnader, inte en förändring: man har lyft kvinnor i håret tills de hänger i samma höjd som männen. Hur många i styrelserummen har skäl att respektera lagen när dess blotta existens antar att de i styrelserummen inte själva kan göra rätt sak? Kvotering är ur detta perspektiv ett antifeministiskt legitimitetsproblem.

För att genomföra en kvotering måste människorna reduceras till kalkylerbara enheter. De kan inte betraktas som människor och samtidigt lyftas i håret. Det vill säga, om vänsterfeminismen ens från början hade erkänt att kvinnor inte enbart är kvinnor, utan faktiskt människor, så har de nu definitivt gjutit i sten att kvinnor bara är medel som kan användas vid behov. Feminismens historia handlar om att kvinnor skulle frigöras från maktens våld och erkännas som fullständiga individer: de skulle erhålla äganderätt, arvsrätt och rösträtt, och på samma villkor som alla vuxna människor såväl stå till svars för sina handlingar som i domstol kunna kräva sin rätt gentemot andra. Denna individstatus som feminismen slagits för i århundraden vill strukturanalytiker ta från kvinnor. Vänsterfeminismen vrider klockan bakåt till den tid då kvinnor betraktades av stat och politik som egendom. Det talar för att vänsterfeminister själva har feministisk självrannsakan kvar att göra: de utgår från att de har rätt att betrakta kvinnor som saker i stället för som människor.

I grund och botten sammanfattas ändå dessa problem genom tesen om människans rätt till sig själv. Om det är sant att människan har rätt till sig själv, vilken rätt har då vänsterfeminister att lagstifta att kvinnor inte bemöts i egenskap av människor, utan kön? Det är en sak att uppmärksamma fenomenet socialt, vilket det är min mening att alla borde göra, men att stifta lagar som säger att kvinnor definitionsmässigt – som om det alltid var fallet – bemöts som någonting annat än människor är att kränka kvinnors rätt till sig själva. Ingen har rätt att i lag slå fast att den bild en kvinna har av sig själv inte stämmer, att hennes sätt att uttrycka sig är fel, att hon inte förtjänat sina framgångar eller – ännu värre – att hon inte klarar att skapa sina egna framgångar. Kvotering tar kvinnors rätt och möjlighet att uppleva stolthet över sina prestationer. Enligt lagen är de bara kvinnor – enheter i systemet och produkter av strukturer som definitionsmässigt inte är självständiga och fullvärdiga människor.

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Libertariansk feminism anammar både en strukturanalys och en principanalys, men skiljer också mellan socialt och politiskt. Lagar kan endast stiftas mot bakgrund av människans rätt till sig själv, vilket innebär att lagen – på sin höjd! – ska garantera att människor inte kränker varandras frihet att själva utöva sin rätt till sig själva. Den här texten behöver ingen fullständig introduktion till libertarianism, men om en eventuell läsare äger en lagbok kan hon riva ut ungefär fyra tusen sidor ur den för att få en uppfattning om hur tjock en lagbok egentligen borde vara. Orsakerna är flera. Framför allt kan man, vilket har redogjorts för ovan, inte stifta lagar i annat än människans själväganderätt. Men all annan lagstiftning medför också sekundära effekter. Då strukturanalytisk politik reducerar människor till enheter gör politiken anspråk på att äga det moraliska ansvar som människorna annars förvaltar.

Politik som försöker att lösa problemet med sexism och ojämlikhet riktar sig till ytan, inte till problemets kärna. Det är könsfördelningen i styrelserummet som rättas till, inte de hjärnor som hellre anställer män än kvinnor: strukturanalytiska politiker är mer måna om att det som syns ska vara tillfredsställande än att strukturerna själva ska förändras. De underliggande strukturerna berörs inte av strukturanalytisk politik, utan av strukturanalytiskt socialt engagemang. I ett vänsterpolitiskt samhälle blir det politikens, inte människornas, uppgift att förändra det som är fel socialt. Det medför av naturliga skäl minskade tendenser till och incitament att arrangera om samhället underifrån. Om man uppmärksammar ett problem i ett samhälle där politiken har rollen som problemlösare – varför ska man då själv lösa problemet?

Det som från vänsterfeministiskt håll betraktas som principanalysens svaghet, att den inte kan säga vad som bör göras utan endast vad som inte bör göras, är nyckeln till den rätta blandningen mellan struktur- och principanalys. Strukturanalysen kan inte heller säga vad som bör göras, utan bara vad som med större eller mindre sannolikt är önskvärt enligt samma analys. Återigen: det slutna tankesystemet genererar sina egna slutsatser. Principanalysen förklarar varför samhällets tvingande institutioner, lagen och rättsväsendet, enbart ska utgöra spelregler som medlar mellan oförenliga viljor inuti samhället: det är fel att med våld tvinga någon att underkasta sig ett beslut vars underlag de inte accepterar. Det innebär att principanalytisk politik helt avstår från att fälla omdömen om i vilken riktning samhället bör röra sig. Sådana omdömen är nämligen inte politiska, utan sociala. Om färdriktningen lagstiftas om följer oundvikligen de problem som redogjorts för ovan, men därtill berövas de som lyder under lagstiftningen sitt ansvarsutrymme om den sociala sfären politiseras. Precis som att den privata industrin inte tillverkar bilar om staten bedriver bilproduktion överlåter enskilda individer sitt moraliska ansvar för omvärlden till staten om den bedriver färdriktningspolitik.

Att socialismen har absorberat feminismen innebär att ett gigantiskt problemområde lyfts från den sociala sfären till den politiska. Det är som att göra politik av sitt rökberoende i stället för att sluta röka. Signalerna som politiken sänder, att de bär ansvar för privatlivet, ger förstås också effekt: om människan inte förväntas ta ansvar gör hon inte heller det. Eftersom politiken inte kan lösa problemet, utan snarare tvärtom eftersom de rör till det på ytan, är vänsterfeminismen ett hot mot feminismen. Den sliter hela frågan itu och gömmer den faktiska ojämlikheten och sexismen under pseudodebatter om hur, inte varför, politiken ska lösa problemen. Sjukdomen försvinner inte för att vänsterfeminismen medicinerar symptomen – den fortsätter att förpesta tillvaron för miljoner människor samtidigt som politiker av väljartaktiska skäl diskuterar vilken slags medicin som bör ordineras.

Libertariansk feminism sluter sig till feminismens historia: alla vuxna människor ska stå som fria jämlikar inför lagen oavsett kön, sexuell identitet och preferens, och så vidare. Kampen om juridisk jämlikhet är fruktansvärt viktig, och den är helt och hållet politisk trots att den härleds ur principen om människans rätt till sig själv. Men därtill är den libertarianska feministen också engagerad privat, så som förväntas av alla politisk-libertarianska sympatisörer. Det finns sociala problem som sexism och rasism och som politisk libertarian måste man både erkänna och motarbeta sådana fenomen. Då är strukturanalysen ovärderlig. Den används inte till att bygga politik, utan till att bygga samhällelig gemenskap.

A (very) Quick Primer on Natural-Rights.

by Adam Magoon

The first step in understanding natural rights theory is to ask a simple but profound question.  Do you own yourself?

Well, let’s start with the definition of ownership.  Dictionary.com gives us “the act, state, or right of possessing something.” Digging deeper we find the definition of possession as “the state of having, owning, or controlling something.” The last part of that definition is key; controlling.  There is a modicum of truth in the old adage possession is 9/10ths of the law.  Nine times out of ten to own something is to control it.

Now getting back to our original question: Do you own yourself?  Well do you control your own body and mind?  We do not need to delve into psychology to answer this question.  I alone can move my arms up and down, I can choose to stand, walk, eat, think, write, create, or to do nothing at all.  I alone am in control over my body.    This is an indisputable fact.  The very act of questioning this fact proves it true; for if you do not have control over your thoughts and actions how could you possibly disagree?

Self-ownership is the cornerstone of libertarian natural rights philosophy and what the libertarian means when he uses the term “natural rights”.

To quote Murray Rothbard: “The fundamental axiom of libertarian theory is that each person must be a self-owner, and that no one has the right to interfere with such self-ownership”

Under this philosophy of self-ownership there are two important subcategories that I will just touch on for further elaboration at another time.

The Non-aggression Principle: is an ethical stance which asserts that “aggression” is inherently illegitimate. “Aggression” is defined as the “initiation” of physical force against persons or property, the threat of such, or fraud upon persons or their property.

This is why the threat of violence cannot be used to negate the concept of self-ownership.  Holding a gun to my head and telling me to raise my arm does not mean you own the right to raise my arm any more than a thief owns the jewelry he stole.  Ownership cannot be transferred through violent means.

And the concept of homesteading which is best explained by John Locke:

“[E]very man has a property in his own person. This nobody has any right to but himself. The labour of his body and the work of his hands, we may say, are properly his. Whatsoever then he removes out of the state that nature hath provided, and left it in, he hath mixed his labour with, and joined to it something that is his own, and thereby makes it his property. It being by him removed from the common state nature placed it in, it hath by this labour something annexed to it that excludes the common right of other men. For this labour being the unquestionable property of the labourer, no man but he can have a right to what that is once joined to. . . .

He that is nourished by the acorns he picked up under an oak, or the apples he gathered from the trees in the wood, has certainly appropriated them to himself. Nobody can deny but the nourishment is his. I ask then when did they begin to be his? . . . And ‘tis plain, if the first gathering made them not his, nothing else could. That labour put a distinction between them and common. That added something to them more than nature, the common mother of all, had done: and so they become his private right. And will any one say he had no right to those acorns or apples he thus appropriated, because he had not the consent of all mankind to make them his? . . . If such a consent as that was necessary, man had starved, notwithstanding the plenty God had given him. We see in commons, which remain so by compact, that ‘tis the taking part of what is common, and removing it out of the state Nature leaves it in, whichbegins the property; without which the common is of no use”

Very quickly I will also mention a couple of the more common arguments that arise when natural rights are discussed.

First, natural rights do not extend from god or any other supernatural or theological forces.  They are based on rational and philosophical thought.  They are what is known as an “a priori”  argument.  To put it simply, natural rights are a logical deduction based on a number of easily recognized facts, primarily the concept of self-ownership.

Second, governments do not, and indeed cannot, grant any rights that natural rights have not already granted.  Let’s look at a current event that everyone always seems to think about backwards; the legalization of drugs for personal consumption.  Because of the right to self-ownership each and every individual already has the right to do whatever they choose with their own body as long as they do so with their own property and do not violently harm others in the process.   Even if the U.S. government “legalized” the use of drugs tomorrow, they are not granting anyone the right to do drugs, they are merely removing their own restrictions on something that is already a right.   The idea that law comes from the state is known as ‘legal positivism’  and proponents are hard pressed to defend actions such as slavery and extermination that were made legal by many nations throughout the course of human history.

 

Recommended Reading:

http://mises.org/rothbard/ethics/ethics.asp

Is the European Union “socialist”?

The short answer is ‘no’, but first, Justin Raimondo writes:

The EU is a failed socialist experiment that exists to fund a huge (and hugely arrogant) bureaucracy and impose a bloodless ideological abstraction over and above the authentic nationalisms it seems to subsume. It is deeply authoritarian in that it provides no mechanism for member states to withdraw, and its super-centralist model is a prescription for tyranny if ever there was one. When a referendum is held on EU membership, and the results aren’t to the pro-EU side’s liking, the election is simply ignored and the Eurocrats mount yet another campaign until the “right” result is achieved.

I thought I’d highlight this paragraph for a couple of reasons:

1. It explains the tensions inherent in the EU from a nationalist viewpoint (as opposed to the internationalist view most often espoused on this blog), and the tensions between defining the place of centralized and decentralized power in a society. Although Raimondo’s hyperbole might cause some of us to blush, I think it actually adds to the depth of the nationalist argument as it better captures the sentiments of these factions. That is to say, I think the nationalists in this debate are a bit more boorish than the internationalists and as such Raimondo exemplifies their arguments despite being an American.

2. It shows why facts are important and in the long run much more valuable. Socialism, by definition, is the state ownership of the means of production. Is there anything about the EU that suggests it wants to “nationalize” industry? Anything at all? Of course not, which is why you often find populists – even of the “libertarian” kind – to be hyperbolic, arbitrary and vague in their arguments (for a better treatment of populism, see this old piece here at NOL). In the long run getting these definitions right is important. Slandering a faction or an organization you don’t like as ‘socialist’ (or ‘bourgeois’) may earn you a couple of brownie points from the peanut gallery, but you are very likely to steadily lose influence in the arena of ideas by peddling such drivel.

The EU is a confederation of states (much like the pre-Civil War US) and entry and exit are entirely voluntary. The EU, more than any other institution save for perhaps the US military, is responsible for the unencumbered peace throughout Western Europe since the end of World War 2. To suggest that the EU is somehow ‘socialist’ not only confuses younger, more susceptible readers but it also weakens one’s own arguments. If, for example, Raimondo is going to label the EU as ‘socialist’ when it clearly is not, what should I think about his arguments when he labels Israel as ‘fascist’ or Russia as a ‘defender of national sovereignty’?

Foreign policy is an important component of libertarianism, and if we continually allow our arguments to be defined by populist organizations like Raimondo’s antiwar.com then I fear libertarians will continue to be (rightly) ignored in the more traditional venues of foreign policy discussion.

Lost Innocence.

One of the defining features of a “free society” is that the citizens in such a society are innocent of crimes unless proven otherwise by a body that can be trusted to be impartial in its deliberations. In other words, the right to a fair trial and the belief in innocence until guilt is proven. This natural right was guaranteed to United States citizens in the U.S. BIll of Rights under the 4th, 5th and 6th amendments of the Constitution.

Time and again in modern America that right is ignored by those whose job it is to protect it. Recently a particularly vile example took place near Houston, Texas. The article speaks for itself but to make a long story short police invaded the personal lives and property of two individuals under no legal pretense. The message is clear, we are not secure in our persons or our properties if the police decide we are of particular interest to them. These officers will likely go unpunished and even if disciplinary measures are taken they will not be the same measures as if, lets say, I removed two people from a car at gun point, bound them, and held them hostage for eleven hours. There are two sets of laws, one for the people and the other for the state.

Is there such thing as Conservative Liberalism?

A friend sent me an email expressing confusion at the idea of Conservative Liberalism, which is apt because it combines two frequently misused words in a confusing way. Let me offer my views/definitions of important political terms to shed some light on this. This post will almost certainly raise more questions than it answers so disagree with me in the comments!

Hayek contrasted conservatism with liberalism and socialism, though a restatement would replace socialism with interventionism. My views are roughly in line with Hayek’s on what these terms mean, with an important caveat (below).

Conservatism is a support for the status quo, and is inherently anti-radical. But that status quo is a historical phenomenon and so conservatism isn’t per se pro- or anti-liberalism. So Conservative Liberalism is possible, just not in America today.

Liberalism is almost synonymous with goodness. It’s a big concept and trying to describe it adequately requires a whole library. All forms of liberalism are essentially concerned with freedom (from the latin Liber, i.e. liberty).

Interventionism is a belief that the government can usefully intervene in society and/or the market. Be that outlawing homosexuality or regulating hotels, this view has a distinctly illiberal flavor, though it’s essentially an orthogonal concept.

Hayek describes these categories as though distinct ideal types and with good reason. There are recurrent divisions along these lines that support thinking of politics in three dimensions, and lead to the formation of three groups (libertarians, conservative Republicans, and liberal [though not classically so] Democrats in the U.S., and similar factions elsewhere). However, I think it makes more sense to think of these as dimensions than ideal types. This adds some vagueness and makes it more difficult to put people in boxes. There can be Conservative Liberals (just not following the last few increasingly illiberal decades), and modern liberals can be understood as being descendant from classical liberal. Ideally everyone would be happy with this vagueness and instead of using labels as short-hand we’d discuss these sorts of things in depth.

But alas, it’s not so easy and even three dimensions is too many for most people, so we’ve got Left and Right wings. Us versus them! Good and evil! Which puts libertarians in the awkward position of not quite fitting in with Democrats on the left or Republicans on the right. I think the Nolan Chart is a step in the right direction. It makes Libertarians (top of the chart!) equidistant from left and right, but not really centrist either. It strips out political labels and gets to the principles at hand. And it’s ahistorical so it leaves room for radicalism and conservatism.

But then we’re left with a tricky situation because we’ve just eliminated an important dimension! And that leads to confusion when we discuss left and right because the ideas aren’t quite as simple as just particular bundles of policies, and that’s especially obvious in a two dimensional graph. If someone asks a libertarian if they’re left or right they should respond “freedom top!” and a neo-con should respond “power bottom!” I view Leftism as being an approach that is radical (i.e. anti-status quo) and Rightism as being pro-established interests. But it isn’t as simple as that either because the historical origins of the terms, and every day practice involves self-identification. The Tea Party is definitely in the Right but their views are typically radical (either radically small-government-liberal, or radically socially-conservative). There are right-wingers who are pro-market (a liberal position) and those who are pro-business (a pro-established interest position)

So what’s the solution? Libertarians would probably like to see an accurate taxonomy that accounts for a wide variety of political and moral dimensions, but left/right has adequate for many for so long. I think the Nolan Chart is a good first step to breaking this false dichotomy, but I also think that using terms like classical liberal is a good choice when it invites conversation with people who aren’t familiar with these ideas. And Conservative Liberalism? It’s a paradoxical term that would also invite discussion, but it’s irrelevant since in the current historical context, the status quo is illiberal.

Blind Faith

By Adam Magoon

On November, 26th Eric Liu, founder of “Citizen University”, a pro-government think-tank, wrote a telling article about having faith in government on the CNN opinion page. He begins the piece with a story about leaving his suitcase in a New York City cab saying:

“I had an experience recently that reinvigorated my faith in humanity — and bureaucracy.”

Keep that equivalency in your mind for a few minutes. Humanity and bureaucracy.

He goes on to explain that he did not even realize he left the suitcase in the cab for twenty minutes and only then began calling people for help. He explains this process in detail, emphasis mine:

“For almost three hours, various people tried to help me — two folks at my bank, whose credit card held the only record of the cab ride; three people at two yellow cab companies based in Long Island City; a service rep at the New York City Taxicab & Limousine Commission; people in my office back in Seattle.”

So Eric was helped by no less than eight individuals (counting the cab driver) in his successful search for his luggage. Eight people helped improve Eric’s business trip. He then claims this experience taught him three lessons.

First:

“Always, always get a receipt.”

This, as he says, is obvious.

Second:

“Another is that New Yorkers, contrary to popular belief and their own callous pose, are essentially nice.”

As someone born in New York I would like to think this is true, but I adhere to the maxim that terms such as “New Yorker” can only describe places where someone lives or is born. Saying “all New Yorkers are nice” is equivalent to saying “all Scots are drunks” or “all Scandinavians are attractive”. Essentially it is a non-statement that is easily refuted. There are just as many people who would have taken anything of value from his case and threw it into the nearest dumpster.

That is just the appetizer though, here is the main course.

His final lesson, and where the train totally leaves the rails, is this:

“But the third, even more deeply contrary to popular belief, is that government is not the enemy.”

Wait, what?! What kind of logic is Mr. Liu using? Of the eight people who helped him only one (the service representative at the New York City Taxicab & Limousine Commission named Valerie) even worked for a governmental organization and “she insisted she was just doing her job”. How did Mr. Liu get to “government is not the enemy” from that series of events? He goes on to claim that:

“Government is not inherently inept. It’s simply us — and as defective or capable of goodness as we are”.

Mr. Liu tries to rationalize his faith in government with a single good experience with a few select people. What he ignores though, is that many people are not “essentially nice”. If that were the case crime, corruption, and violence simply wouldn’t exist. There are people in the world who only seek to exploit and profit from the work of others and to quote the great classical liberal theorist Frédéric Bastiat:

As long as it is admitted that the law may be diverted from its true purpose — that it may violate property instead of protecting it — then everyone will want to participate in making the law, either to protect himself against plunder or to use it for plunder”

Even if we were to assume that most people in the world are “essentially nice” the very nature of government attracts precisely the opposite type; the corrupt, the malevolent and the lazy. His agenda finally becomes clear nearly two-thirds of the way through the article when Mr. Liu unabashedly asks us to not wonder what our country can do for us, but rather what we can do for our country in response to the failed Obamacare launch.

Individuals are expected to bail the government out when it fails at intruding into our lives? How can we expect the government to run healthcare without kickbacks and corruption when they cannot even get someone to build the website without it being a disaster?

Mr. Liu fails to offer any helpful advice on how to improve things but he does offer one revealing suggestion. He says that citizens should not expect the “state…to serve us perfectly” and that individuals should not “forget how to serve”.

The argument often goes that taxes pay for services provided by the government but Mr. Liu suggests we shouldn’t expect too much from those services. That we shouldn’t get upset when we pay a third of our labor to the government and it spends that money on things we do not want; in fact he implies we should fix for free the broken things they have already spent our money on.

If Mr. Liu goes out to dinner and his silverware is dirty when he sits at the table does he go back to the sink and wash them? Or does he expect more from the things he spends his money on? At least in that situation Mr. Liu could choose to spend his money elsewhere. With the government spending our money for us we aren’t even afforded that meager victory.

Keynes on Free Trade

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

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

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

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

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

What was the world’s reaction to Kristallnacht?

Der Spiegel has a fascinating article on the reaction of European diplomats to Kristallnacht. Among the gems:

The diplomats almost unanimously condemned the murders and acts of violence and destructions […] Many diplomatic missions were already in contact with victims because men from the SS and the SA, Nazi Party officials and members of the Hitler Youth were also harassing foreign Jews who lived in Germany […] Although there was some looting, many diplomats, like Finnish representative Aarne Wuorimaa, reported on “withering criticism” from members of the public. According to Wuorimaa, “As a German, I am ashamed” was a “remark that was heard very frequently.” However, the reports generally do not delve into whether the critics fundamentally rejected the disenfranchisement of the Jews in general or just the Nazis’ brutal methods.

Again, read the whole article. It’s absolutely fascinating. One thing the article just barely touches on, but highlights well (if you know what to look for) is what foreign governments didn’t do. Der Spiegel, a center-Left publication, highlights the lack of sanctions and other diplomatic posturing, but this is, in true center-Left fashion, complete garbage. If you read the article closely you can see what the world should have done. Indeed, you can see what the world should have been doing all along. It is a testament to not only libertarianism’s moral clarity but also the creed’s humility. Observe:

Most of all, however, the borders of almost all countries remained largely closed for the roughly 400,000 Jewish Germans.

This is an important fact. Der Spiegel implicitly recognizes it, too, but the article fails to elaborate any further upon it, as if the benefits of open borders and their ability to ward off tyranny speaks for itself. The lack of open borders, of course, coincides nicely with the policies of Franklin D Roosevelt and his fellow fascists. Closing off the borders to immigration and arbitrary numbers of goods and services is a cookie cutter example of authoritarianism.

This brings me to my Tuesday morning rant: I can’t stand the fact that libertarians are proud of their ignorance in regards to what they read. I can’t count the number of times a libertarian has disparaged a center-Left outfit (to name one example) because he doesn’t agree with it. Libertarians should be reading everything and looking for the libertarianism inherent in it. When the libertarianism is found, point it out. If it cannot be found, point out the inherent authoritarianism in it (Dr Gibson always provides excellent examples in this regard). But do not avoid reading it simply because you do not agree with it. Ignorance, after all, is no strength.