Ten best papers/books in economic history of the last decades (part 2)

Yesterday, I published part 1 of what I deemed were the best papers and books in the field of economic history of the last few decades. I posted only the first five and I am now posting the next five.

  • Carlos, Ann M., and Frank D. Lewis. Commerce by a frozen sea: Native Americans and the European fur trade. University of Pennsylvania Press, 2011.

This book is not frequently cited (only 30 cites according to Google Scholar), but it has numerous gems for scholars to include in their future work. The reason for this is that Carlos and Lewis have pushed the frontier of economic history into the history of Natives in the New World. This issue of Natives in North America is one of those topics that irritates me to no end as an economic historian. A large share of the debates on economic growth in the New World have been centered on the idea that there was either some modest growth (less than 0.5% per year in per capita income) or no growth at all (which is still a strong testimonial given that the population exploded). But all that attention centres on comparing “whites” (and slaves) in the New World with everyone in the Old World. In the first decades of the colonies of Canada and the United States, aboriginals clearly outnumbered the new settlers (in Canada, the native population around 1736 was estimated at roughly 20,000 which was slightly less than the population of Quebec – the largest colony). Excluding aboriginals, who comprised such a large share of the population, at the starting point will indubitably affect the path of growth measured thereafter. My “gut feeling” is that anyone who includes natives in GDP accounting will lower the starting point dramatically. That will increase the rate of long-term growth. Additionally, the output that aboriginals provided was non-negligible and probably grew more rapidly than their population (the rising volume of furs exported was much greater than their population growth). This is why Carlos and Lewis’s work is so interesting: because it is essentially the first to assemble economic continuous time series regarding trade between trappers and traders, the beaver population, property rights and living standards of natives. From their work, all that is needed is a few key defensible assumptions in order to include natives inside estimates of living standards. From there, I would not be surprised that most estimates of growth in the North American colonies would be significantly altered and the income levels relative to Europe would also be altered.

  • Floud, Roderick, Robert W. Fogel, Bernard Harris, and Sok Chul Hong. The changing body: Health, nutrition, and human development in the western world since 1700. Cambridge University Press, 2011.

This book is in the list because it is a broad overview of the anthropometric history that has arisen since the 1980s as a result of the work of Robert Fogel. I put this book in the list because the use of anthropometric data allows us to study the multiple facets of living standards. For long, I have been annoyed at the idea of this unidimensional concept of “living standards” often portrayed in the general public (which I am willing to forgive) and the economics profession (which is unforgivable). In life, everything is a trade-off.  A peasant who left the countryside in the 19th century to get higher wages in a city manufacture estimated that the disamenities of the cities were not sufficient to offset wage gains (see notably Jeffrey Williamson’s Coping with City Growth during the British Industrial Revolution on this). For example, cities tended to have higher food prices than rural areas (the advantage of cities was that there were services no one in the countryside could obtain).  Cities were also more prone to epidemics and pollution implied health costs. Taken together, these factors could show up in the biological standard of living, notably on heights. This is known as the “Antebellum puzzle” where the mean heights of individuals in America (and other countries like Canada) fell while there was real income and wage growth. The “Antebellum puzzle” that was unveiled by the work of Fogel and those who followed in his wake represents the image that living standards are not unidimensional. Human development is about more than incomes. Human development is about agency and the ability to choose a path for a better and more satisfying life. However, with agency comes opportunity costs. A choice implies that another path was renounced. In the measurement of living standards, we should never forget the path that was abandoned. Peasants abandoned lower rates of infant mortality, lower overall rates of mortality, the lower levels of crowding and pollution, the lower food prices and the lower crime rates of the countryside in favor of the greater diversity of goods and services, the higher wages, the thicker job market, the less physically demanding jobs and the more secure source of income (although precarious, this was better than the volatile outcomes in farming). This was their trade-off and this is what the anthropometric literature has allowed us to glean. For this alone, this is probably the greatest contribution in the field of economic history of the last decades.

  • De Vries, Jan. The industrious revolution: consumer behavior and the household economy, 1650 to the present. Cambridge University Press, 2008.

Was there an industrious revolution before the industrial revolution? More precisely, did people increase their labour supply during the 17th and 18th centuries which lead to output growth? In proposing this question, de Vries provided a theoretical bridge of major significance between the observations of wage behavior and incomes in Europe during the modern era. For example, while wages seemed to be stagnating, incomes seemed to be increasing (in the case of England as Broadberry et al. indicated). The only explanation is that workers increased their labor supply? Why would they do that? What happened that caused them to increase the amount of labor they were willing to supply? The arrival of new goods (sugar, tobacco etc.) caused them to change their willingness to work. This is a strong illustration of how preferences can change more or less rapidly (when new opportunities are unveiled). In fact, Mark Koyama (who blogs here) managed to insert this narrative inside a very simple restatement of Gary Becker’s model of time use. Either you have leisure that is cheap but time-consuming (think of leisure in the late middle ages) or leisure that is more expensive but does not consume too much time (think the consumption of tea, sugar and tobacco). Imagine you only have the time-expensive leisure which you value at level X. Now, imagine that the sugar and tea arrive and, although you pay a higher price, it provides more utility than the level and it takes less time. In such a context, you will likely change your preferences between leisure and work. I am grossly oversimplifying Mark’s point here, but the idea is that the industrious revolution argument advanced by de Vries can easily fit inside a simple neoclassical outlook. On top of solving many puzzles, it also shows that one does not need to engage in some fanciful flight of Marxian theory (I prefer Marxian to Marxist because it is one typo away from being Martian which would adequately summarize my view of Marxism as a social theory). If it fits inside the simpler model, then you don’t need the rest.  De Vries does just that.

  • Anderson, Terry Lee, and Peter Jensen Hill. The not so wild, wild west: Property rights on the frontier. Stanford University Press, 2004.

Governance is not the same as government (in fact, they can be mutually exclusive). In recent years, I have been heavily influenced by Elinor Ostrom’s work on how communities govern the commons in very subtle (but elaborate) ways without the use of coercion. These institutional arrangements are hard to simplify into one variable for a regression, but they are theoretically simple to explain: people respond to incentives. Ostrom’s entire work shows that people on the front line of problems generally have the best incentives to get the right solution because they have skin in the game. What her work shows is that individuals govern themselves (see also Mike Munger’s Choosing in Groups) by generating micro-institutions that allow exchanges to continue. Terry Anderson and Peter Hill provide the best illustration in economic history in that regard by studying the frontier of the American west. Settlers moved to the American West faster than the reach of government and the frontier was thus an area more or less void of government action. So, how did people police themselves? Was it the wild west? No, it was not. Private security firms provided most of the policing, mining clubs established property rights without the need for government, farmers established constitutions in voluntary associations that they formed and many “public goods” were provided privately. The point of Anderson and Hill is that governance did exist on the frontier in a way that demonstrates the ability of voluntary actions (as opposed to coercive government actions) to generate sustainable and efficient solutions. The book has a rich theoretical framework on top of a substantial body of evidence regarding the emergence of institutions. Any good economic historian should own and read this book.

  • Vedder, Richard K., and Lowell E. Gallaway. Out of work: unemployment and government in twentieth-century America. NYU Press, 1997.

The last book on the list is an underground classic for me. Richard Vedder and Lowell Gallaway are very good economic historians. Most of their output was produced from the 1960s to the 1980s. However, as the 1990s came, they moved towards the Austrian school of Economics. With them, they brought a strong econometric knowledge – a rarity among Austrian scholars. They attempted one of the first (well-regarded) econometric studies that relied on Austrian theory of the labor-market (a mixture of New Classical Theory with Austrian Theory). Their goal was to explain variations in unemployment in the United States by variations in “adjusted real wages” (i.e. unit labor costs) all else being equal. At the time of the publication, they used very advanced econometric techniques. The book was well received and even caught the attention of Brad DeLong who disagreed with it and debated Vedder and Gallaway in the pages of Critical Review. Although there are pieces that I disagree with, the book has mostly withstood the test of time. The core insights of Out of Work regarding the Great Depression (and many of its horrible policies like the National Industrial Recovery Act) have been conserved by many like Scott Sumner in his Midas Paradox and they feature prominently in the works of scholars like Lee Ohanian, Harold Cole, Albrecht Ristchl and others. In the foreword to the book, they mention that D.N. McCloskey (then the editor of the Journal of Economic History) had pushed hard for them to publish their work regarding the 1920s and 1930s. The insights regarding the “Great Depression of 1946” (a pun to ridicule the idea that the postwar reduction in government expenditures led to a massive reduction in incomes) have been generally conserved by Robert Higgs in his Journal of Economic History article I mentioned yesterday (and in this article as well) and even by Alexander Field in his Great Leap Forward However, Out of Work remains an underground classic that is filled with substantial pieces of information and data that remains unused. There are numerous unexploited insights (some of which Vedder and Gallaway have followed on) as well. The book should be mandatory reading for any economic historian.

Fight for your economic right to party

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Two months ago, London’s iconic Fabric nightclub was shut-down by Islington Council on the dubious grounds that it had failed to adequately search club-goers for drugs. Fabric, a sprawling multi-level concrete venue, is dear to the heart of many Londoners. Its dramatic closure came as a shock. David Nutt blamed our hypocritical drug laws, while others spied conspiracies to turn the venue over to housing developers. In response to the public outcry, this month, London Mayor Sadiq Khan has appointed Amy Lamé as ‘night tzar’ (some use the even grander title Night Mayor) with the task of reviving London’s nightlife and especially trying to save venues like Fabric.

Tzars sound great in theory but tend to fail in practice. They are meant to break-up bureaucratic silos and join-up policymaking so that it conforms to a grand plan in a particular policy area. Rather than following rules regardless of outcomes, they have an outcome that the executive asks them to pursue remorselessly. However, I argue that this is precisely the opposite of what you want if your goal is a sustainable, thriving night-life culture. London night-life has suffered because of its politicization, not from a lack of it. The answer is strong rights for entrepreneurs to provide entertainment to willing consumers. This means reforming of government powers to license venues and prohibit development on arbitrary grounds. While ending drug prohibition is of deep importance, here the drug-use excuse was the face of a more pernicious power that local governments have to shut down successful businesses on arbitrary grounds.

In the United Kingdom, land development and property-use decisions have essentially been nationalized since 1947. While building still takes place, it only happens following detailed, expensive consultation with local planning authorities with significant input from local residents. As a result, the supply of building amenities has become unmoored from demand. The most noticeable impact has been rising house prices and rents in areas where the economy is growing. This is a boon to landlords lucky enough to own property in areas of high demand. But it causes those without property to suffer significantly higher living costs. It has led to bizarre developments such as it being easier to open a new golf course in the South-East than to start a new housing development.

While the majority of people feel the strain primarily through higher rents, less visible is the impact on businesses who are equally constrained by planning laws. They struggle to find suitable buildings for their commercial activities. Competitors and local residents can use the planning process to block new construction or changes to lawful uses for particular venues. Businesses lack legitimate expectations about where they will be allowed to expand. Those that do succeed need to invest heavily in lobbying and legal support. The result is that people end up travelling further to get to shops and to their places of work.

Club venues face a number of additional biases in this process. Local officials are more likely to be blamed for noise and crime associated with clubs but not praised for their fun and economic benefits. This fosters risk-aversion amongst local policymakers. At the same time, club-goers may outnumber local residents but most are not able to vote in local council elections. Residents might well have originally moved into a central London location precisely to experience fun, exciting nightlife. But once there, perhaps especially as they get a little older, their priorities change. They realize that they may want to live in an exciting city, but just so long as their particular neighborhood is a little less exciting. Rather than move to a quieter area, they express their preferences through the political process and demand that venues that have been around a lot longer than they have be closed.

Unfortunately, if too many residents in the city come to the same conclusion, you end up shutting down historic clubs on the slightest pretext. When it comes to hosting unlawful activities, businesses can be presumed guilty, with no secure way of ever proving their innocence.

In this context, having a tzar is an understandable response as a counter-balance to the call of the NIMBYs. But it doesn’t solve the core problem which is a system that cannot adequately represent revelers but augments complaints. The tzar can champion venues but will be silenced once these entrenched interests turn up the noise. Instead, we need a system that recognizes the presumptive right of businesses to market entertainment to willing consumers. Only provable nuisance should be cause to fine or eventually close venues. Once established, entertainment venues should not have to regularly prove their social worth to a licensing committee (the fact that they have willing customers is sufficient warrant for that).

Most importantly, complaints from recent arrivals against historic venues that have always hosted loud parties should be discounted. This works in a fashion in Tokyo, where mixed development is widely permitted (no one stops people from taking up residence in an otherwise commercial district) but without any assumption that those residents can then alter the make-up of their community through the political process.

BC’s weekend reads

  1. Racism in Brazil, and American academic imperialism
  2. A quick lesson on race and class in Brazil
  3. Unlike Their Parents, Black Millennials Aren’t A Lock For Clinton
  4. The Rise of the Libertarian Technocrats
  5. Property versus Democracy
  6. Our Friendly Visitors

Liberals and Conservatives should stop talking about guns

I’ve come across some great journalism on guns and gun control recently. Here’s the key points:

  • Most gun deaths are suicides. Many of these suicides would have happened were a gun not available, but many of them wouldn’t have.
  • Most gun homicides mostly affect young black men.
  • More guns does not equal less crime.
  • Gun accidents affect very few people.
  • Cost-benefit analysis would likely suggest improving safety other places would save more lives, given limited budgets. (e.g. changing attitudes on vaccinations)

A basic theme seems to be that government can do little on the margin to reduce gun deaths. Crime rates are uncorrelated with number of guns, or regulations in place. Upright citizens do not turn into Rambo when they see dastardly criminals mug little old ladies. Guns are actually sort of boring in practice.

It’s possible that the government could affect gun deaths with a comprehensive gun control policy backed by public opinion (the Australian option). But it would likely cost so much that you’d lose the budget and/or political capital to enact other reforms that would be less controversial and save more lives.

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We don’t torture people in America, Todd. That’s called one of the amendments.

What about the second amendment? The real argument for the second amendment is that having armed Americans around is pretty practical in general, but also important to prevent tyranny. In practice, guns aren’t half as practical, in terms of personal or national defense as back then. The capability of America’s military is so extraordinary that American’s don’t stand a chance of fighting a corrupt American government.

Let’s acknowledge that the Bill of Rights, though surely important, is ultimately a piece of paper that is neither sacrosanct nor a practical guarantee of anything in particular. The founders were brilliant, but fallible. The constitution is frequently ignored by governments, and citizens often do little to discipline such governments. Second amendment advocacy is mostly a symbolic gesture that probably comes at the expense of using political capital to protect the fourth amendment (the one that should protect you when the government decides to take your guns, cold dead fingers or no).

Conclusion

There are weak arguments to made in favor of gun control and weak arguments to be made in favor of protecting the second amendment. But mostly this whole debate seems like a distraction from more important issues. Symbolically valuable? Sure, but at what cost? The cost is the political will to make a bigger difference somewhere else. There are more valuable freedoms to protect, better interventions to pursue, and more lives to be saved.

O que é capitalismo?

O Brasil é capitalista? O capitalismo é culpado por vários problemas que observamos no Brasil? E outros países? A China é hoje um país de economia capitalista, ainda que com política socialista (ou comunista)? O capitalismo prejudica os mais pobres enquanto beneficia os mais ricos? Estas são algumas questões com as quais me esbarro regularmente. Algumas pessoas mais sofisticadas observam que não há apenas um capitalismo, mas vários: o capitalismo brasileiro é diferente do sueco, que é diferente do japonês, que é diferente do norte-americano, e assim por diante. Vejo alguma pertinência nesta observação, mas penso que ela ainda deixa de lado a questão mais básica e fundamental: o que é capitalismo?

Suponho que sem recorrer a qualquer fonte podemos concluir que capitalismo é algo relacionado a capital. Segundo o Palgrave Macmillan Dictionary of Political Thought, de Roger Scruton, “o capitalismo é um arranjo econômico, definido pela existência predominante de capital e trabalho assalariado”. De acordo com esta definição, no capitalismo alguns ganham salários e outros ganham lucros. Capital por sua vez é definido como “os meios de produção produzidos, ou seja, commodities que foram produzidas e que por sua vez podem ser empregadas na produção de outras commodities”. Em outras palavras: capital são recursos que são empregados na produção de mais recursos. Capitalismo é um sistema econômico (e não predominantemente político ou social ou cultural) que gira em torna da alocação destes recursos.

Partindo de uma forma de pensar semelhante, Milton Friedman observou que todos os países são capitalistas. Os EUA são capitalistas. A China é capitalista. A URSS é capitalista (Friedman estava fazendo esta observação ainda no período da Guerra Fria). Não há país (ou sociedade) onde não haja capital e onde não ocorram decisões sobre como alocar o capital. Há bastante tempo Max Weber fez uma observação semelhante, afirmando que alguma forma de capitalismo esteve presente em todas as civilizações, com a diferença que mais recentemente o Ocidente produziu um capitalismo moderno, com características peculiares. Mas voltando para Friedman: todos os países são capitalistas. A questão é: quem controla o capital?

A pergunta de Friedman lembra uma observação de Friedrich Hayek: durante o período da Guerra Fria era comum afirmar que a economia da URSS era planejada, enquanto que a economia dos EUA não era. Mas esta afirmação está errada: ambas economias eram planejadas. A da URSS por um pequeno grupo de pessoas em Moscou; a dos EUA por milhões de indivíduos espalhados pelo país. O ponto de Hayek é que uma economia necessariamente envolverá decisões sobre como alocar capital (ou recursos). A questão é: quem tomará estas decisões? Um grupo de governantes num comitê centralizado, em nome de toda a população? Ou a própria população, numa esfera mais modesta, dentro de suas próprias vidas?

Adam Smith é popularmente considerado o pai do capitalismo (e também da Economia como disciplina acadêmica, além do liberalismo econômico. Adam Smith teve muitos filhos). Curiosamente, Smith não usou o nome capitalismo em seus escritos (este nome seria cunhado mais tarde por marxistas – o próprio Marx também não usou este nome, ao menos não regularmente), mas falava sobre sociedade de mercado. A observação de Smith era que em tempos recentes mais pessoas estavam se tornando mercadores. Em tempos antigos (sobretudo na Antiguidade Clássica de Grécia e Roma) as relações econômicas eram dominadas por donos de terras e escravos. Havia mercadores (ou comerciantes), mas estes ocupavam um espaço menor na sociedade (e também eram vistos com desconfiança por não produzirem nada – apenas trocarem o que outros produziram). Na Inglaterra do final do século 18 mais pessoas eram comerciantes, isto é, trocavam alguma coisa, ainda que “alguma coisa” fosse sua força de trabalho em troca de salários. Neste sentido, Smith não inventou o capitalismo moderno: apenas observou e descreveu seu nascimento – além de suas vantagens diante de outros arranjos econômicos.

Partindo de Adam Smith e chegando a Friedman e Hayek, podemos observar quatro elementos fundamentais do capitalismo moderno (ou do liberalismo econômico, ou as sociedade de mercado, ou do livre mercado): escolha pessoal; trocas voluntárias; liberdade para competir em mercados; direito de propriedade privada. A escolha pessoal se refere às decisões individuais que se toma a respeito dos recursos individuais (devo sair para trabalhar hoje? Ou devo ficar em casa?). Trocas voluntárias se refere ao fato de que posso livremente trocar meus recursos com outra pessoa que queira fazer o mesmo (havendo uma coincidência de vontades). Liberdade para competir significa que posso oferecer meus serviços (ou produtos, ou talentos) e aguardar que haja interessados. Propriedade privada se opõe a propriedade coletiva ou comunal, geralmente sob controle do estado.

Uma forma mais direta de sistematizar a teoria de Smith (e neste ponto de Friedman e Hayek) é dizer que no livre mercado a propriedade é privada (e não coletiva ou comunal) e o trabalho e assalariado (e não escravo). Mais simples ainda, o livre mercado opera pela máxima de “não faça aos outros o que você não gostaria que fizessem com você”, ou “não mexa com quem está quieto”. No livre mercado os indivíduos são livres para fazer trocas voluntariamente com outros indivíduos – que queiram voluntariamente fazer estas trocas, havendo coincidência de vontades.

Há muitos economistas que consideram que a sociedade de mercado é mais um tipo ideal do que uma realidade. Alguns países estão mais próximos desta ideal do que outros, e neste sentido é válida a observação de que há variedades de capitalismo. O capitalismo praticado no Brasil (ou na China) não é (nunca foi e nunca chegou perto de ser) o capitalismo liberal descrito ou almejado por Smith, Friedman e Hayek. O capitalismo praticado nos EUA está mais próximo disso, embora esteja num franco afastamento deste ideal há várias décadas.

Saber o que é capitalismo é um primeiro passo para sabermos se este é um modelo que desejamos ou não. Pretendo nos próximos posts continuar este assunto. Por ora, digo apenas que quando falo a respeito de capitalismo estou pensando na sociedade de mercado descrita ou almejada pela tradição liberal. Caso o que temos no Brasil seja capitalismo, certamente não é este capitalismo que defendo.

The Libertarian Case for Immigration Restriction

I read Mr. Woodman’s recent post with some interest since it is generally considered a truism that libertarians are not in favor of government interference, and immigration restrictions being a prime example of said interference, are, ergo, not in favor of that as well.

What I found strange was that the most prominent libertarian advocate for immigration restrictions, Hans-Hermann Hoppe, was not mentioned. This is a particularly grave omission. Hoppe is the foremost critic of the libertarian dogma of freedom of movement, and his arguments possess the most influence. He also pivots many of his arguments around a concern that Mr. Woodman has omitted: tribalism.

In his article on Lew Rockwell, On Free Immigration and Forced Integration, Hoppe writes:

To libertarians of the Austrian school, it should be clear that what constitutes “wealth” and “well-being” is subjective. Material wealth is not the only thing that counts. Thus, even if real incomes rise due to immigration, it does not follow that immigration must be considered “good,” for one might prefer lower living standards and a greater distance to other people over higher living standards and a smaller distance to others.

The argument against immigration is fundamentally one of tribalism, though it is cloaked in economic rationalizations. Thus it is tribalism that must be reckoned with if Mr. Woodman desires to dismiss the arguments against immigration restrictions root and branch. That Mr. Woodman has not done so is regrettable, and it is an error I will attempt to address here.

Despite what I consider an omission, Mr. Woodman extensively, and mostly admirably, interrogates several consequentialist arguments “many libertarians” – presumably, he writes of those interlocutors he himself has sparred with – have made in favor of immigration restrictions. I will summarize them below.

I. Immigration Has Bad Consequences

Mr. Woodward summarizes the consequentialist argument against immigration thusly:

  1. Bad effect x will happen if we allow open borders.
  2. Therefore, the government is justified in restricting immigration.

However, if this logic is sound, then it gives the government carte blanche to use whatever force it wants to restrict anyone from doing anything, assuming it can prove that it causes a harm. Mr. Woodward writes:

For an example, as long as we have government-provided Medicare programs, allowing people to eat unhealthy foods or smoke will increase the cost of those welfare programs; following the logic of the argument above, the government would be justified in implementing paternalist policies that restrict people’s right to consume what they want to reduce the burden of the welfare state. People with lower incomes are more likely to use welfare programs as well, so the government is justified in reducing their population size by restricting their right to reproduce through forced sterilization.

Via reductio, this leads to a situation where force can be used arbitrarily and nefariously, which libertarians and likely most people of any political persuasion would find unsavory. Therefore, the argument in favor of government restricting immigration to avoid bad effect X is both morally untenable and inconsistent with libertarian doctrine.

II. Things Fall Apart

There are several weaknesses in this argument, the first being the contention that immigration restrictions are a restriction of an individual’s fundamental rights. As Mr. Woodman writes:

To be clear: immigration restrictions are a form of government intrusion into an individual’s freedom of movement. It is the government using its monopoly on force to restrict someone from doing something they’d otherwise be able to do, that is move across an arbitrary line we call a “border.”

Hoppe would argue that borders are anything but arbitrary lines demarcating abstract entities on a map. Rather, they reflect the outermost holdings of a nation, which claims ownership of the land, and has sole use and rights to it. In the aforementioned article, Hoppe writes:

in order to render the… argument applicable, it is – implicitly – assumed that the territory in question is unowned, and that the immigrants enter virgin territory (open frontier).

Yet, very little territory these days is virginal, and the examples can be counted on one hand. In Hoppe’s example of an anarcho-capitalist society, all land is privately owned, and so freedom of movement becomes absurd. How could one individual have the untrammeled ability to traverse another person’s property? The only proper relation is one of mutual freedom of association – one property owner may decide to hang out with, say, Mexicans, while another would not. Freedom of movement becomes dependent on individual consent, which in turn (using the historical example of the monarchy) is based on calculated self-interest. This leads to another possibility: all property owners could willingly confederate and decide they will not associate with Mexicans or some other group, and freedom of movement to that group, such as it was, ceases to exist. Thus, freedom of movement as a human right is absurd in an anarcho-capitalist society because there is no freedom to traverse the unowned land.

More importantly, it is absurd in any other society as well, all of which are predicated on some form of ownership. In a monarchy, the king owns all the land, and in a democracy, an association of elected bureaucrats holds sovereignty over all land in the name of an abstract entity, the public, to whom it is avowedly beholden. In a monarchy, the sovereign wishes to enrich his own holdings and so will adopt an immigration policy that, according to Hoppe, would resemble most individual approaches to free association – acquire high-quality immigrants and offload low-quality citizens. In a democracy, the sovereign association of bureaucrats would seek to enrich itself (because it has temporary custodianship of the monopoly on taxation, rather than outright ownership), often at the expense of the existing citizenry, by allowing the immigration of any individual likely to enrich him – quality notwithstanding (Quote: “In fact, such negative externalities – unproductive parasites, bums, and criminals – are likely to be his most reliable supporters.”). Immigration thus becomes, in a democracy such as our own, a system of forced integration – the negation of the rights of some for the prerogative of others. This is Hoppe’s crucial point and the source of his opposition to opening immigration to all comers without prejudice. Here is the relevant passage:

Like a king, a democratic ruler will promote spatial over-integration by over-producing the “public good” of roads. However, for a democratic ruler, unlike a king, it will not be sufficient that everyone can move next door to anyone else on government roads. Concerned about his current income and power rather than capital values and constrained by egalitarian sentiments, a democratic ruler will tend to go even further. Through non-discrimination laws – one cannot discriminate against Germans, Jews, Blacks, Catholics, Hindus, homosexuals, etc. – the government will want to open even the physical access and entrance to everyone’s property to everyone else. Thus, it is hardly surprising that the so-called “Civil Rights” legislation in the United States, which outlawed domestic discrimination on the basis of color, race, national origin, religion, gender, age, sexual orientation, disability, etc., and which thereby actually mandated forced integration, coincided with the adoption of a non-discriminatory immigration policy; i.e., mandated inter-national desegregagtion (forced integration).

Even if Mr. Woodman rejects the validity of this argument, there is another weakness to his own: it assumes there is an equivalency between immigration and any other government policy, such as Medicare or eugenics. Without such an equivalency, Mr. Woodman’s appeal to the faulty logic of his interlocutors’ argument falls apart, as his own argument no longer possesses the balance between its two examples it relies upon for its logical and persuasive force. Here’s the problem: Medicare or eugenics are internal policies that affect the ingroup, the citizenry, only. Immigration is an external policy that affects both an outgroup, the immigrants, and the ingroup, the citizenry. Because immigration arguments look both inwards towards domestic concerns and outwards towards foreign ones, Mr. Woodman’s reductio is no longer applicable. (An important caveat: This comes with the assumption that any second-order effects spilling outside the country, such as, say, a global market distortion due to government programs for public healthcare in the United States, are not to be counted.)

 

Let’s examine that a minute.

When the members of an ingroup debate the merits of eugenics or Medicare, they debate how these policies will affect themselves – alone – well or poorly. They are also, implicitly, debating whether the imposition of government coercion via taxation or force on themselves will lead to the salutary result they desire.

When they debate over whether to admit immigrants from an outgroup, their debate hinges on whether the assumed future behavior of the members of that outgroup will affect them well or poorly. They are also, implicitly, debating whether the imposition of government coercion via force on others will lead to the salutary result they desire.

In both cases, the policy that wins does so based on the opinion of the ingroup as to its efficacy for whatever definition of welfare they have set for themselves. As welfare is a subjective term and does not only include economic goods, this ultimately reduces to this: welfare is whatever the people want it to be.

The ingroup can then argue, with complete logical consistency, that it both supports freedom (for itself, within the borders of its territory) and does not support it (for the outgroup, which is outside its territory and wants to come in). The reductio-into-slippery-slope that Mr. Woodman would like us to believe force inherently leads into is, in this case, fallacious. Force can certainly be directed outwards without being directed inwards. One could make an argument that acceding to a government imposition of force in one area is itself a slippery slope to force everywhere, but that is a different argument, and not the one being made.

III. Conclusions

To summarize the lines of argument thus far:

  1. Freedom of movement is a fallacy predicated on incorrect notions of land ownership. Movement from one sovereign territory to another is instead privilege of movement.
  2. Within a publicly held system such as our own, privilege of movement is dependent on the consent of the government which holds lands in the name of its citizens, its own ingroup.
  3. However, because the government seeks to enrich itself – often at the expense of its avowed ingroup – it will often pursue immigration policies that are detrimental to the ingroup, who are in turned forced to bear the burdens of the policy that enriches their overlords.
  4. The end result of democratic “free” immigration is forced integration, a betrayal of libertarian principles.
  5. Various logical points.

Mr. Woodman challenges libertarians to “justify some argument for why it [government] can restrict the rights of non-citizens but not citizens.” It should be clear that this is a non-sequitur: non-citizens do not have rights to the sovereign territory of a country, which is held either by private citizens or the public. The government does not restrict their rights when it refuses to grant them the privilege of traversing land that is publicly held for the ingroup because they had no rights to that land to begin with. Because the government is nominally beholden to the ingroup, and not to any outgroup, rights discourse concerning the outgroup is fundamentally absurd when considered in terms of Hoppe’s arguments.

While Mr. Woodman has provided examples of policies restrictive of immigration being or becoming harmful economically, that does not negate the truth that a harmful economic policy may also come bundled with a salutary domestic policy. The citizenry, who do not want to associate with X group, have had their biases enshrined in law according to their desires.

Despite the centrality of tribalism in immigration, it is understandable why Mr. Woodman failed to attack the root of anti-immigration arguments. As we can observe in the current American election cycle, arguments against immigration generally take a utilitarian strain. Indeed, Donald Trump has based his opposition to immigration on the following issues:

  1. Immigrants are increasing the level of crime because many of them are criminals
  2. Immigrants are not adequately screened, leading to point one
  3. Immigrants are harming the economy

As stated by Mr. Woodman, there are clear arguments to be made against these points. However, he has failed to address why these arguments are convincing: tribalism, the doctrine of sticking with one’s kith and kin at the expense of others, is the root ideology. And there are clear – and libertarian! – arguments in favor of it.

I expect, and welcome, a hearty critique of Hoppes’s position, my articulation of it, and my response to Mr. Woodman’s article.

Freud and property rights

In a recent, short discussion of property rights, I offered that property is an extension of the body, and therefore rights can be naturally assumed as equal to our bodily rights. It was responded to highly critically. The body is intrinsically tied to our identity, most recently stated with Sosa-Valle’s article; most people would agree to that. I feel similarly about personal property, even if proving this is somewhat more difficult.

The question of property comes up in an infinite number of discussions. If I own a Sharpie, acquiring it through monetary transaction, I can legally prohibit another from using it. Isn’t this more of an intrusion on another’s freedom to explore the world than it is a utility of my freedom to protect this object? Why is this Sharpie mine such that I may disallow others its use? How is it within my freedom to prohibit it from others?

Where property rights actually come from, and what concerns, aside from economic or consequentialist, validate their protection, is a fundamental question. Here is a perspective from a Freudian dissection of ego relations, and historical-technological advance.

Technology is fundamentally an extension of human attributes. What is a record, but an upgrade of human auditory memory; what is a video, but an upgrade of human visual memory or imagination; “materializations of the power [man] possesses of recollection”? “With every tool man is perfecting his own organs, whether motor or sensory, or is removing the limits to their functioning. Motor power places gigantic forces at his disposal, which, like his muscles, he can employ in any direction,” and so on (Civilization and Its Discontents, p. 43).

It’s not remarkable to consider that material objects may take precedence over actual bodily members, given technology is simply human advancement. When a woman loses her ability to walk, and is outfitted with a mobility scooter or likewise, the apparatus takes the place of natural walking endowments; prosthetic advancements, still infantile in Freud’s time, increasingly distort what are “legs” and what are not. We wouldn’t lessen the strength of the legal bodily autonomy just because her legs are composed of different material than organic.

Our accessories, aside from restoring us from disable- to able-bodied, take us far beyond what the human was ever capable of accomplishing, creating “prosthetic Gods.” The modern cellphone contains the entire world in its hardware and software. Many people feel more connected to their tablets than their hidden organs. (Or maybe, more accurately, people are more connected to the functionality of their tablets, than the automatic, reflexive actions of their organs. This is clear because tablets are replaceable but the overall attached feeling persists.) The ego, per a Freudian perspective, is extended to the external world, through some fulfillment of instinct that technology allows in an otherwise impossible situation (see instinct displacement, Instincts and Their Vicissitudes, p. 121, James Strachey translation). It becomes difficult to delineate what is attached to “me” and what is not, contrary to the simplistic, material, phenomenological dichotomy of body and world.

How is it anyway that our body is even connected to our psyche? For an extremely brief discussion, consider that our sense of self, as a straightforward consciousness, is not immediately crippled by, say, the removal of an appendage through a freak accident. The attachment that we feel, then, is cerebral and historical, and functional. These same conditions in and of themselves are equally possible for relating the sense of self to foreign, i.e. materially external, objects. Indeed, the “connection” we feel to our body is perfectly capable of being transferred onto other objects. See, for instance, Freud’s discussions in An Analysis of a Case of Hysteria (indeed, this point of transference could be argued to be the central pillar of psychoanalytic perspective on childhood and ego-formation); David Chalmers’ arguments for the phone as a part of our mind via cognitive extension; and recent psychological studies of “joint action,” through dancing and the like.

Given these instances, I think it’s more sensible than not, at least providing one accepts even a little Freud, to perceive property rights as on the same ground as bodily autonomy.

Of course, Freud never argued for property rights from his analysis of technology as ego-engagement. His political views were mostly impersonal and disinterested. He left Vienna after his daughter was summoned by Gestapo in 1938, to live in London, but unfortunately left no direct commentary on totalitarianism, and most of his political views have to be derived.