socialism

Finding Books in Cuba

Brandon Christensen Books , , ,

Guillermo’s recent post has inspired me. Here:

I spent the next couple of days walking the streets of Havana, not only looking for Yoss’ bookseller friend but also finding other antiquarian bookstores and book stands that might have copies of de Rojas’s Espiral, Una leyenda del futuro, and El año 200. I could only put my hands on an old copy of the second one. I called Yoss again and asked for help. I also invited him out again, this time to the hotel’s tourist bar.

Cuba has two economies with their own currencies; one is for its citizens, the majority of whom live quite modestly, and the other is for tourists. Cubans aren’t welcome in the tourist establishments unless someone brings them in.

That was Yoss’s case. The bouncers at the hotel door stopped him flat, saying wearing a vest without a shirt wasn’t appropriate. I needed to go find him and say he was my guest. The bouncers complied.

It was on this occasion when Yoss gave me details about the Cuban Sci-Fi tradition. He told me it dated back to before the Communist regime but that it had flourished in the seventies as a result of the cultural exchange the country had with Russia and the Soviet Bloc.

Read the rest. It’s by Ilan Stavans, a Professor of Latin American and Latino Culture at Amherst College. It comes as no surprise to readers here, I’m sure, that books are hard to find in Cuba (and science fiction books at that!). I have just three comments. First, notice that cultural exchange was responsible for the introduction of something new. Second, be sure to check out the photos of Yoss. He sports a t-shirt with the Batman logo in one pic, and a t-shirt with the Punisher logo in another. (The Punisher is a bad ass Marvel Comics character.) Lastly, the author could not help but insult US culture (of which he is a part of).

A Letter to Stuff You Should Know

Rick Weber Economics

SYSK recently published a podcast introducing the idea of socialism. Below is my open letter to them.

Hey guys,

I love your podcast but was bracing myself for the socialism episode (I’m an economist interested in the socialist calculation debate, I’m no expert but many economists don’t even know about this debate). You guys did a great job discussing socialism and I was pleasantly surprised. Most people think “socialism can’t work because people will be lazy” but you rightly pointed out that gulags are a strong motivator and the real problem was a sluggish adaptation to changing conditions due to a non-spontaneous price system.

Some clarifying points:

  • In economics socialism is defined as centralized control of the means of production (e.g. TV factories, but not necessarily TV sets). A socialist economy is one that takes this to its limit and as far as I know has only existed in Russia between 1918 and 1921.
  • In 1920 Ludwig von Mises wrote Economic Calculation in the Socialist Commonwealth. Prior to this point the official socialist stand was essentially, “1. Capitalism lays the foundations for socialism. 2. ??? 3. Utopia!” Socialists had never described how socialism would solve economic problems (what to produce, where, by whom, for whom, etc.). Mises pointed out that those issues are solved automatically by the working of unfettered markets that match incentives with information. If the price of steel is $X/ton that tells buyers “you’d better feel pretty confident that you can use this steel to create something more valuable than that,” while telling sellers “the resources you are using would be better used elsewhere in the market if you can’t keep your cost below $X/ton.”
  • (This is expressed eloquently by Hayek’s 1945 article, The Use of Knowledge in Society.
  • Market socialism is a system where a socialist economy sets up pseudo-markets. So Josh and Chuck are each put in charge of a plant that makes shoes and each has to get the required leather. In theory they have to compete to get leather (just like in real markets) and that competition provides information about competing uses of different inputs. But if Josh turns a profit he doesn’t get to keep it for himself and if Chuck makes a loss he can’t go bankrupt (though he could get sent to the gulags). This sort of system was proposed in response to Mises’ 1920 article. This is when socialists started actually coming up with a theory of socialism (how it could work to allocate resources so that benefits exceed opportunity costs).

Here’s a great read that covers the essentials of this issue: National Economic Planning: What is Left. It boils down to this: without private property and rule of law (i.e. a situation where the “king” can’t arbitrarily interfere with people’s plans and has to follow the same universal rules as everyone else) there can’t be markets with profits and losses. Without that there can’t be prices that incorporate all the information, which is scattered and often tacit (i.e. non-reportable), relevant to economic decisions. Without those prices it becomes impossible for central planners to know the opportunity costs of their actions and so they cannot make economic decisions that are rational (i.e. weigh benefits to consumers against costs to producers). This is true even if we assume perfectly altruistic and motivated “New Soviet Man” and benevolent dictators.

Without markets central planners are groping in the dark. With markets there are no longer central planners.

Thanks for making my commute more enjoyable!

Your fan,
Rick

Humanitarian Wars and the Political Factions of the Arab World: A Concise Primer

Brandon Christensen Current Events , , , , , ,

Take this as you will. You know where the ‘comments’ section is, and we could probably learn more together by arguing than we could by reading my informal musings.

Humanitarian war, justified theoretically and morally by the Responsibility To Protect doctrine (R2P) , has become the go-to excuse for military action by hawks on both the Left and the Right in the West for the past 20 years or so. Humanitarianism as an excuse for war has been around for as long as humans have, and it has been going in and out of fashion for just as long, but since the end of the Cold War it has become prominent in all the right circles again.

The first thing careful readers will notice about R2P proponents is their seeming inability to consider the fact that their overtly political goal is couched in the language of humanitarianism rather than for the purely political purpose that it actually is. This is entirely subconscious, which makes it all the more dangerous because proponents of R2P truly believes that what they state is pure and noble.

Is it not true that, by definition, anything the government does is the essence of the political?

Perhaps I am being unkind to advocates of R2P. Perhaps I am simply knocking down a straw man. I hope advocates will lay down a better, preferably more concise, definition for me in the ‘comments’ threads. Yet when people have such strong beliefs in their own intuitions that they actually call for a government to enforce those intuitions at all costs, how can I not be unkind?  My freedom is at stake whenever good intentions are used to empower others.

At any rate, it’s finally time to explain how factions in the post-colonial world operate. This explanation is geared toward both conservatives, Leftists, and uninitiated libertarians, and will use Syria as an informal case study. Once you grasp the principles behind my argument (and feel free to use the ‘comments’ section to flesh out any fuzziness) you can easily apply them to anywhere in the post-colonial world. You can also use these principles to better understand how politics in rich, industrialized states actually work.

I’m going to do this by quickly detailing the main factions involved in the Syrian conflict and then delving into the implications of arming one side and bombing the other, as the Obama administration has been doing.

First up is the Assad regime itself. Despite the violent protests that stared us in the face at the beginning of the upheavals in Syria, the Assad regime actually enjoys a fairly broad base of support. The regime is Ba’athist, like the Hussein regime in Iraq, and as such enjoys support from secularists, educated women, the business class, socialists, the military, religious minorities (Christian and non-Sunni Muslim) , labor unions, ethnic minorities and the professional class (lawyers, doctors, engineers and academics). These are the classes that believe that state can be wielded to further it noble ends (which includes secularizing all of Syrian society and raising the standards of living of all Syrians). The term used to describe such a conglomerate is ‘national socialist’.

Prior to the start of the civil war in Syria, the Assad regime faced a two-pronged attack from would-be reformers. As with everywhere else in the world – from Greece to Brazil to China to the United States* – Syria is facing social unrest.

One of these dissenting prongs – the weaker of the two – is composed of secularists, educated women, the business class, socialists, the military, labor unions, ethnic minorities and the professional class. You read that correctly: opposition to the Assad regime had, prior to the civil war, come from other national socialists dissatisfied with the status quo. It is this second group of national socialists that Leftists and conservatives wish to arm. Aside from the massive amounts of fairy dust such a program would require, what do R2P advocates think they would accomplish by replacing one batch of national socialists with another?

I am digressing. The second of the prongs (the more powerful one) is made up of various Islamist groups, including many branches of al-Qaeda. This faction is conservative and largely dominated by young, Arab and Sunni Muslims. Because of its religious flavor, this faction is dominated by actual peasants or the lumpenproletariat and is run by a parochial and decentralized leadership. It gets its funding from the brutal Arab Gulf regimes (which are, in turn, protected by the American state). Due to the very nature of the national socialist economy, a large population of very poor people dominates the demographic landscape of Syrian society today. GDP (PPP) per capita stood at about $5,101 in 2011.

Liberalism, the alternative to socialism and conservatism that advocates free trade, the rule of law and property rights, and individual liberty, does not exist in Syria today. It was murdered in its infancy by British and French imperialism.

When the shooting started – and we will, like the first Anglo-American War, never know who started the shooting – the national socialists opposing the Assad regime took one look at their potential allies (the Islamists) and either went crawling back to Damascus for protection or attempted to flee the country. Taking a long, slow look at the Islamists now fighting the Assad regime, it’s not hard to see why the national socialists marching against Assad took the routes that they did.

So, ideologically, there are only conservatives and socialists competing for hearts and minds in Syria. Liberals simply emigrate to the West. Letting the post-colonial world devolve into smaller and smaller political units would limit conflicts and casualties, but the road to a peaceful and prosperous Middle East is going to be a long, hard haul without  way to re-introduce liberalism into the region (Jacques has put forth a doable proposal, as has Rick, but my own is too ambitious).

* I mention this only because there is a small faction in American politics trying to argue that the Arab Spring is a direct product of the illegal invasion and occupation of Iraq. It is not. The unrest around the world is due to the inherent failures of the post-war economic consensus (which was anything but laissez-faire).

More on the inherent conservatism of the Left

Brandon Christensen History, Liberty, Religion , , , ,

I’ve blogged about the reactionary nature of the Left before, and in 2012 I went so far as to write, in response to a Marxist historian’s essay on capitalism and gay identity, that:

Capitalism has brought about the [gay rights] movement’s flourishing, and the government is holding it back. This fact is true not just in the realm of gay identity, but in the realm of all other social, political, and economic aspects of as well. Leftists would also do well to remember that their movement, as it stands now, as it stood three decades ago, is, for all intents and purposes, one of conservatism, obstinate ignorance, and embarrassing causality.

Many others have noticed the reactionary nature of the hard Left as well (and don’t forget to read Rick’s thoughtful musings on the Left-Right divide), but it is always nice to come across writings that bolster one’s own argument. James Peron has more on “The Lament of the Conservative Left” in the Huffington Post. Riffing off of an article by the prominent socialist David Selbourne, Peron writes:

Note the disdain for individual social freedom as being “without regard to the interests of the social order as a whole.” Doesn’t that sound just like a religious conservative?

[…]

Socialism was not a “revolutionary” alternative to liberalism. It was a conservative reaction against it. Ludwig Mises said: “It was Liberalism that undermined the power of the classes that had for centuries been closely bound up with the Church. It transformed the world more than Christianity had ever done. It restored humanity to the world and to life. It awakened forces which shook the foundations of the inert traditionalism on which Church and creed rested.”

[…]

Socialism […] grabbed the methods of conservatism, embracing state power as the means of planning permissable changes and preventing others. It embraced change to a limited degree, unlike conservatives, but wanted to direct it. Liberalism, to the socialist, meant unplanned change. It was this concept of an “invisible hand” that disturbed them. The socialist, in his heart, is a conservative, just one who wants some of what liberalism has to offer.

Indeed. Read the rest, and remember: “Liberalism” in much of the world means “classical liberalism” rather than the ideology of the Democrat Party in the United States.

An Excellent Analysis of Karl Marx and His System by Leszek Kolakowski

Brandon Christensen History, Philosophy , , , , , , , ,

Many Western Marxists used to repeat that socialism such as it existed in the Soviet Union had nothing to do with Marxist theory and that, deplorable as it might be, it was best explained by some specific conditions in Russia. If this is the case, how could it have happened that so many people in the nineteenth century, especially the anarchists, predicted fairly exactly what socialism based on Marxist principles would turn out to be namely, state slavery? Proudhon argued that Marx’s ideal is to make human beings state property. According to Bakunin, Marxian socialism would consist in the rule of the renegades of the ruling class, and it would be based on exploitation and oppression worse than anything previously known. According to the Polish anarcho-syndicalist Edward Abramowski, if communism were by some miracle to win in the moral conditions of contemporary society, it would result in class division and exploitation worse than what existed at the time (because institutional changes do not alter human motivations and moral behavior). Benjamin Tucker said that Marxism knows only one cure for monopolies, and that is a single monopoly.

These predictions were made in the nineteenth century, decades before the Russian Revolution. Were these people clairvoyant? No. Rather, one could make such predictions rationally, and infer from Marxian anticipations the system of socialized serfdom.

Read the whole thing. It’s relatively short and has a lot of good insights. The part about Marx cheating on the wages of European workers, and his views on the non-European world, are alone worth the price of admission. Kolakowski was a Polish philosopher and Cold War dissident.

Another Liberty Canon: Arendt

Barry Stocker History, Philosophy, Politics , , , , , , , , , , , , ,

Hannah Arendt (1906-1975) was one of the more influential writers on political thought during the twentieth century. Born in Germany, her political views and Jewish origins (she was also Jewish in identity though not in religion) meant not only that she had to leave Germany after the Nazi takeover, but that she had to escape from Gestapo interrogation. A period in Paris was ended by the 1940 German invasion, which led to another escape from detention, and her final destination of the United States. She was able draw on this direct experience of totalitarianism and antisemitism to write The Origins of Totalitarianism, one of the classic works on this topic, which also considers the role of political anti-Semitism, as distinct from older religious prejudice, in the formation of the modern phenomenon of totalitarianism.

Arendt reached beyond an academic and scholarly audience in her most widely ready book, Eichmann in Jerusalem: A Report on the Banality of Evil, based on her journalistic reporting on the trial of one of the major administrators of the Holocaust, Adolf Eichmann. Though the book did much to draw attention to the extreme horror of  Holocaust, and and its history, which strange as it might seem now was not the object of a great deal of public or scholarly discussion in the immediate postwar period, also led Arendt into a morass of angry criticism and even hatred, in part for supposedly trivialising Eichmann’s criminality. However, the point of referring to the ‘banality of evil’ was not to say that the Holocaust was trivial, or to deny Eichmann’s criminality, but to suggest that as a person he was more of a small minded conformist than a grandiose anti-hero of apocalyptic evil.

From the point of view of Arendt’s work in political theory, her writing on the Holocaust and totalitarianism, contributed to her understanding of modern politics in its darkest possibilities, which were distinct from older forms of tyranny. That understanding itself drew on the breadth of her historical approach, including literary and cultural interest, which went back to the Ancient Greek beginnings of western political thought. Her understanding also included the ethical and religious thought of late antiquity, as can be seen in her doctoral dissertation, Love and Saint Augustine. She had a general appreciation of the whole of human life, with regard to consciousness and action, which is behind The Life of the Mind and can be found in some of her political theory, most obviously The Human Condition.

Arendt’s interest and appreciation of ancient politics, particularly the democracy of city state Athens,  sometimes leads to her being labelled a nostalgic and a believer in anti-individiualistic integrated communities. This can only be a parody though, Arendt thought that there might be some things to learn about modern politics through comparison with antiquity, but she did not advocate a return, and her interest in antiquity was in those communities like Athens and the Roman Republic, where we can see individualism growing and a decline in community based on adherence to tradition and to communal assumptions.

Arendt thought that the Athenians had achieved liberty of a significant kind for the aristocracy, and to some degree for the lower classes, on a real but limited basis in which some had the leisure to think and argue about the rules and laws of the city state. That form of library rested on ‘heroic’ and patriarchal values according to which the home and family are the place of economic production and therefore the place of necessity.

Liberty was understood with reference to the tradition of  heroes going to war or to a more recently evolved habit of widespread public free speech about public affairs. Arendt did not argue for this as the all time ideal, but as a moment with some ideal aspects, which was bound to fail. Partly it failed because law was understood as custom and communal obligation, rather than as concerned with contracts between free individuals.  In her historical analysis, the Romans made progress on the legal front, because they saw  that law can and should evolve with regard to the best ways of grounding freely chosen contracts,  while also failing to maintain political liberty as the republic gave way to Imperial autocracy

Arendt emphasised that the Roman model inspired modern movements for liberty, particularly the French and American Revolutions (the comparison is made in On Revolution). Though she wrote about the motives and early actions of French revolutionaries with great sympathy, she pointed out that it had all ended in revolutionary terror and then country-revolutionary autocracy, so that the American Revolution had created a better model, as shown in the long lasting nature of the Constitution. She both respected that achievement and pointed out that it rested on assumptions about the dominance of a land owning class, so that it could not in itself provide all the answers for modern liberty, even it established an enduring framework, which survived major shifts in the location of economic wealth and the sources of political power.

For Arendt, the modern capitalist world undermined the idea of a strict separation between a private realm of economic production, based on family ownership and use of land, as economic activity became what happened in factories and other enterprises, with regard to national and world markets. The social-cultural result was an undermining of the antique assumption that intellectual life is superior to, and dominant over, physical activity and economic life. It also  resulted in states that seemed more remote from traditional forms of allegiance and everyday customs, because the state became increasingly something concerned with legislative and administrative activity that aimed to enable production and trade, so for the first time establishing the state as something that aims to constantly elevate material wealth and ‘national welfare’. Arendt, in this way, argues that commercial society tends to create its own statist reaction.

Arendt equivocated to some degree about whether capitalism was to be preferred to socialism, but in political writing emphasised enhancing individuality and a spirit of competition and that can only be seen as directed against the expanding administrative state, particularly as she argued for more separation between political questions and social welfare questions. She looked for ways in which modern political participation could focus on the best parts of the antique legacy: public speech focused on the conditions of liberty rather than on expanding state activity, contests for esteem in the public sphere rather than levelling down egalitarianism.  Perhaps her equivocation about socialism can be seen as leaving the way open for ‘socialism’ as defined by left libertarians, markets without a state that promotes politically inspired concentrations of wealth and power. She was certainly a prominent critic of Soviet style state socialism.

Arendt had a grasp based in rather classically oriented political theory, of how capitalism tends to produce statist reactions to itself, which parallels the more political economy and economics oriented work of Austrian economics and Virginia Public Choice theory on  the rise of the administrative state and rent seeking.  Together with her interests in how to avoid antique tyranny and modern totalitarianism, this makes her a great twentieth century pro-liberty voice, particularly for those interested in the historical, psychological, moral, and literary aspects of political thinking.

All of Arendt’s major contributions to political thought are mentioned above. A good starting point for those new to Arendt might be the essays collected in Between Past and Future or The Promise of Politics. 

Central Banks’ Stock Socialism

Fred Foldvary Liberty , ,

Central banks have until recently obtained their income from interest on the bonds they hold. But with interest rates now so low, central banks, like other bond holders, are receiving little revenue. So now, central banks are buying shares of stock to get higher income from dividends and capital gains.

Since central banks are agents of governments, their stock ownership amounts to back-door socialism.

The reason interest is so low now is because central banks around the world have been pushing rates down. The low income from savings accounts and bonds has hurt retired folks and have distorted stock markets. The U.S. stock market averages have been making new highs to a great extent because bonds yields are so low, and also because US companies are borrowing funds at low rates to buy back their stocks.

Governments already tax and regulate economies, and they own industries such as education and much of medical care.  Now they want to own more of the whole economy. Even if a central bank buys shares in an index fund, they artificially raise share prices, and they do it with money they create. Moreover, what happens when the price of stocks has a large drop? Will the central banks contribute to the selling, or buy more?

According to a report by the a report to be published this week by the Official Monetary and Financial Institutions Forum, governments and their agencies have already made twenty-nine trillion dollars of market investments. The largest governmental investor is China. The Swiss and Danish central banks have also been buying substantial equities. Central banks have also been buying real estate. Ever more financial and real assets are being acquired by central banks, and thus also by the governments that own and control them.

The ownership of the economy is not what the founders of central banks had in mind. When the Federal Reserve was established in 1913 in response to the banking panic of 1907, its role was to stabilize the banking system as a lender of last resort. For a long time, the Fed purchased US treasury bonds to expand the money supply, as it created the funds it used to buy bonds. But after the recession of 2008, the Fed also bought mortgage-backed securities as well as shares in companies it wanted to bail out.

But now central banks are not buying shares to bail out failing companies, but to increase their income. Ultimately this buying is self-defeating for central banks and all investors, because such massive purchases raise the ratio of share prices to yields, reducing the rates of return.

The pension funds of government employees have, of course, been investing in the stock markets, as well as in bonds and real estate, but these funds can be regarded as belonging to the employees rather than to governments. Governments with surpluses such as from trade or oil sales have set up “sovereign wealth funds” that invest in financial markets, with the potential to manipulate and distort markets. There should be a global treaty to confine sovereign funds to government bonds and global index funds.

It is even worse for central banks to invest in private financial markets because they are creating the money they use for these purchases. This inflation of the money supply is not for stabilizing the currency or helping the banking system, but just to get stock market yield. That monetary inflation will eventually cause price inflation and fuel an even bigger real estate bubble than that which ended in the Crash of 2008.

The ultimate remedy for such asset distortion is the elimination of all central banks. Since that will not happen, we will have to witness a coming financial tragic horror. Just as in the years prior to 2008, we are sitting in boats on a river whose current will take us ever faster the financial waterfall. The most likely year of the next crash will be in 2026, as the 18-year real estate cycle has been the leading cause of the business or interventionist cycle for the past two centuries.

Last time around, government-sponsored enterprises such as Fannie Mae helped stoke the boom by packaging and selling real estate mortgages. The financial reforms after 2007 did nothing to stop the basic causes of the real estate cycle. Now, the massive purchases of stocks, in addition to bonds and real-estate related assets, will help make the Crash of 2026 the biggest ever.

Ultra-libéralisme – A French Tale

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Slavery and the footnotes

Brandon Christensen History, Religion , , , , , , , , ,

I came across this old essay on slavery by economist Gordon Tullock (h/t Tyler Cowen) and what struck me (aside from an excellent presentation of the economics of slavery) was this footnote on the inevitable dissolution of Marxism (this paper was written in 1967):

It may be that the dissolution is not the first step toward the total elimination of this powerful religion, but merely a breaking away of the talmudic encrustation of the true scribes and pharisees of the Second and Third Internationals. Such a development is not uncommon in the history of other religions. My personal opinion is that the disintegration which we now see is more fundamental, however, and I doubt that Marxism will survive the century as a living faith.

In my own experience in the classrooms of powerful and plebeian universities alike, Marxism has indeed disintegrated into virtually nothing. Marxism has, rather, become a sort of an embarrassing older uncle that professors chuckle about in a manner that is more reminiscing than bitter. They all realize that Marxism led to very bad things, but they are unable to acknowledge that capitalism – Marxism’s Other – has brought about peace and prosperity for untold billions.

It would be wise for us, therefore, to continue to focus on this dead religion. Deep-seated beliefs are hard to let go of, even after these beliefs have been shown – theoretically and empirically – to lead to horrors of the worst kind. “Yes,” the embarrassed former adherents grudgingly admit, “communism has failed miserably, but socialism has not. It has not even been tried, and besides, it is capitalism that is responsible for the world’s ills today.”

This is not obstinance. This is deceit, plain and simple.

So how do we go about combating obvious deceit (rather than the sophisticated theories of 20th century Marxists)?

I think the answer is to just debunk their examples on a case by case basis, in as public as a forum as you can muster. Famines in east and central Africa, for example, have often been attributed to capitalism because of the policies of the World Bank and IMF. Libertarians ought to agree with most of this, and then simply point out that the World Bank and the IMF are central planning agencies designed, created, and supported by governments in the West. Once this fact -which is not quite as simple as it appears – is acknowledged, you can go from there and take a public choice route, an Austrian route, or even a populist libertarian route to explain why capitalism is not responsible for famines.

Wars, genocides, ethnic cleansing campaigns, etc., can all be explained (and eliminated) if libertarians focus on the role of the State in all of these ills rather than on the theoretical or empirical weaknesses of socialist explanations and proposals.

The socialist roots of Nazism (and the Left’s typical response)

Brandon Christensen History, Politics , ,

One of my constituents once complained to the Beeb [BBC] about a report on the repression of Mexico’s indigenous peoples, in which the government was labelled Right-wing. The governing party, he pointed out, was a member of the Socialist International and, again, the give-away was in its name: Institutional Revolutionary Party. The BBC’s response was priceless. Yes, it accepted that the party was socialist, “but what our correspondent was trying to get across was that it is authoritarian”.

Amazing! This is from Daniel Hannan writing in the Telegraph.

The Myth of Common Property

L. A. Repucci Liberty , , , , , , , , , , , , , , , , , , , ,

An Observation by L.A. Repucci

It has been proposed that there exists a state in which property — whether defined in the physical sense such as objects, products, buildings, roads, etc, or financial instruments such as monetary instruments, corporate title, or deed to land ownership — may be owned or possessed in common; that is to say, that property may be possessed of multiple rightful claimants simultaneously.  This suggestion, when examined rationally and exhaustively, is untenable from the perspective of any logical school of economic, social, and indeed physical school of thought, and balks at simple scrutiny.

In law, Property may be defined as the tangible product of enterprise and resources, or the gain of capital wealth which it may create.  To ‘hold’ Property, a Party, or private, sentient entity, must have rightful claim to it and be capable of using it freely as they see fit, in keeping with natural law.

Natural resources, including land, are said to be owned either jurisdictionally by State, privately by party, or in common to the natural world.  If property may be legally defined only as a product, then natural resources may be excluded from all laws pertaining to legal property.  If property also may be further defined by the ability of it’s owner to use it as they see fit, in keeping with Ius Naturale, then any property claimed jurisdictionally by the State and said to be held in common amongst the citizenry must meet the article of usage to be legally owned.  Consider Hardin’s tragedy of the commons as an argument for the conservation of private property over a state of nature, rather than an appeal to the economic law of scarcity or an appeal to the second law of thermodynamics ,

In Physics:  Property may be defined as either an observable state of physical being.  The universe of Einstein, Kepler, and Newton rests soundly on the tenet that physical bodies cannot occupy multiple physical locations simultaneously.  The laws that govern the macro-physical world do not operate in the same way on the quantum level.  At that comparatively tiny level, the rules of our known universe break down, and matter may exhibit the observed property of being at multiple locations simultaneously — bully and chalk 1 point for common property on the theoretically-quantum scale.

Currency:  The attempt to simultaneously possess and use currency as defined above would result in praxeologic market-hilarity in the best case, and imprisonment or physical injury in the worst.  Observe: Two friends in common possession of 1$ walk into a corner shop to buy a pack of chewing gum, which costs 1$.  They each place a pack on the counter, and present the cashier with their single dollar bill.  “It’s both of ours!  We earned it in business together!” they beam as the cashier calls the cops and racks a shotgun under the register…

The two friends above may not use the paper currency simultaneously — while the concept of a dollar representing two, exclusively owned fifty-percent equity shares may be widely and innately understood — the single bill is represented in specie among the parties would still be 2 pairs of quarters.  While they could pool their resources and ‘both’ purchase a single pack of gum, they would continue to own a 50% equity share in the pack — resulting in a division yet again of title equally between the dozen-or-so sticks of gum contained therein.  This reduction and division of ownership can proceed ad quantum.

This simple reason is applicable within and demonstrated by current and universal economic realities, including all claims of joint title, common property law, jurisdictional issues, corporate law, and financial liability.  A joint bank account is simply the sum of the parties’ individual interest in that account — claims to hold legal property in common are bunk.

The human condition is marked by the sovereignty, independence and isolation of one’s own thought.  Praxeological thought-experiments like John Searle’s Chinese Room Argument and Alan Turing’s Test would not be possible to pose in a human reality that was other than a state of individual mental separation.  As we are alone in our thoughts, our experience of reality can only be communicated to one another.  It is therefore not possible to ever ‘share’ an experience with any other sentient being, because it is not possible to perceive reality as another person…even if the technology should develop such that multiple individuals can network and share the information within their minds, that information must still filter through another individual consciousness in order to be experienced simultaneously.  The physical separation of two minds is reinforced by the rationally-necessary separation of distinct individuals.  There may exist a potential hive-mind collectivist state, but it would require such a radical change to that which constitutes the human condition, that it would violate the tenets of what it is to be human.

In conclusion, logically, the most plausible circumstance in which property could exist in common would be on the quantum level within a hive-minded non-human collective, and the laws that govern men are and should be an accurate extension of the laws that govern nature — not through Social Darwinism, but rather anthropology.  Humans, as an adaptation, work interdependently to thrive, which often includes the voluntary sharing and trading of resources and property…none of which are held in common.

Ad Quantum,

L.A. Repucci

Pope Francis: Does An Anti-Capitalist = A Socialist?

Samuel Allen Current Events, Liberty, Religion , , , , ,

The Pope has made his opposition to capitalism clear and his words were scathing…

“Just as the commandment ‘Thou shalt not kill’ sets a clear limit in order to safeguard the value of human life, today we also have to say ‘thou shalt not’ to an economy of exclusion and inequality. Such an economy kills… A new tyranny is thus born, invisible and often virtual, which unilaterally and relentlessly imposes its own laws and rules. To all this we can add widespread corruption and self-serving tax evasion, which has taken on worldwide dimensions. The thirst for power and possessions knows no limits.”

This has led to praise and criticism from the right and the left. People have naturally views this within the right vs left dichotomy. I think it worth pointing out that libertarians of all varieties do not fit anywhere, comfortably, in this one dimensional paradigm, nor aught the Pope be expected to. He has been called a Marxist and had the economic failing of state socialism in Latin America and around the world flagged up, the assumption seems to be that if he is against the present model of capitalism he must be a socialist. The problem is the Pope may have made clear that he is in opposition to our present economic model he has not made clear what else he is against, (socialism) or what he supports.

What he has said on the matter and the clues to what he supports are as follows “I repeat: I did not talk as a specialist but according to the social doctrine of the church. And this does not mean being a Marxist.” The Pope indicates here that his stance on economics is only that which the Church has long-held. That he is simply re-iterating it’s doctrine, the only economic ideology based upon catholic social doctrine is Distributism… It is based on the teachings of Pope Leo XIII in his encyclical Rerum Novarum and Pope Pius XI in Quadragesimo Anno, and it is emphatically opposed to socialism. In the words one who inspired it:

“No one can be at the same time a sincere Catholic and a true Socialist” and “it is gravely wrong to take from individuals what they can accomplish by their own initiative and industry and give it to the community” – Pius XI.

The Popes Francis’s words on capitalism were no less scathing than his predecessor’s in Rerum Novarum. Pope Leo XIII spoke of “misery and wretchedness pressing so unjustly on the majority of the working class” and how “a small number of very rich men” had been able to “lay upon the teeming masses of the labouring poor a yoke little better than that of slavery itself.” And Pope Francis’s use of the term “exclusion” I’d argue meaning exclusion from personal access to property, and the means to produce are a further clue to his distributist leanings.

So what do these distributists profess if they oppose both socialism and capitalism?

According to distributists, property ownership is a fundamental right and the means of production should be spread as widely as possible rather than being centralized under the control of the state (state socialism) or of accomplished individuals (laissez-faire capitalism). Distributism therefore advocates a society marked by widespread property ownership and, according to co-operative economist Race Mathews, maintains that such a system is key to bringing about a just social order. – Wikipedia

In truth we cannot know where the Pope stands on socialism other than what he has said. Until he say’s otherwise I think it’s safe to say there is no reason to suspect he is a socialist, or that his position is anything other than that which the church has long-held.

– Samuel Allen

What I learned in Community College

L. A. Repucci Liberty , , , , , ,

A salvo:  As a returning student in my thirties, I must admit I am thoroughly enjoying the community college experience — it blows my mind that I have the freedom to return to the academic environment and pursue my education in a convenient and cost-effective manner.  Surely this is a testament to the community college system, and for that, I am grateful.

Now that I’ve established my gratitude, I’d like to outline briefly what I’ve learned in my first semester back in school, and solicit the well-educated community that is notesonliberty.com for a bit of guidance.  Hopefully, you fine lot will provide me with some direction and perspective.  I intend to apply to a California school upon completion of my transfer program at the end of the 2014 academic year.

Here is what I’ve learned in a semester at Cabrillo college in Aptos, CA:

GEOG 3, Physical Geography:  Anthropogenic climate change is a fact.  Humanity is a juggernaut exhausting the planet’s resources, polluting, heating and overpopulating the environment.  The planet’s ability to support us is quickly and undoubtedly reaching the breaking point, and the solution is radical and immediate de-industrialization and depopulation.  The fact that industrialized nations and economic development provide innovations that result in efficiency and sustainability, as well as a negative replacement population rate matter not.  Humans must cease to eat anything but primary energy producers (plants), and ‘enact policy’ to curtail fertility by all and any means necessary to save the planet.

CG 65, Leadership:  Democracy is fair and effective.  It is just and fair to allow the tyranny of the majority to compel by force the theft of property from individuals in the form of taxation for the ‘common good’.  The importance of understanding the electorate’s will is secondary at best to mastering the process by which I as an individual can gain power and privilege through the exploitation of the democratic process.  Open manipulation of the will of the masses is the only just means to gain dominance over my neighbors and co-opt their liberty and resources.  Individual ability is meaningless, and it is unethical to use superior individual ability, labor and intellect to succeed, because that would be unfair to the dull-witted and lazy.  Those who have no power or ability have been exploited by individuals with power and ability, which is unethical.  The ethical way to exploit the public is as a group.  Everyone has equal value and ability, and it is wrong to favor individual performance based upon merit.  An individual’s worth is based on their ability to consent to the democratic process, and there are no natural leaders — leadership is a learned skill.

ACCT 151a, Financial Accounting:  All systems of accounting exist solely for the expressed purpose of paying the state.  I am compelled to violate my own right against self-incrimination by ‘voluntarily’ providing the state with a detailed log of all of my economic activity, so that I can ‘voluntarily’ send them a portion of that which I have earned by way of participation in commerce.  I must use Generally Accepted Accounting Principles and keep meticulous records, based on a system codified by a medieval Jesuit named Fra. Lucca Paccioli, which he derived from ancient Sumerian systems of accounting and transcribed in the margins of a bible.  Should I participate in commerce in any other manner, or fail to disclose exactly what I’ve done with every dime that passes through my hands, I will be fined or imprisoned.  Corporations (that is, ideas drawn on paper) are people who never die and have rights that supersede the rights of natural people.  This system exists for my benefit…somehow.

SOC 2, Introduction to Sociology:  The ‘sociological imagination’ is a process by which unique individuals are grouped and classified as either privileged or victimized.  Race does not exist biologically, and gender has nothing to do with sex — paradoxically, people of western European ancestry with testicles are inherently evil, unless they are homosexual and socialist.  The laws of the natural, biological world are immoral when applied to society, even though Sociology as a field proposed the theory of Social Darwinism.  Central planning is needed to control the actions of individuals, and a free society is inherently unjust.  Though the ‘sociological imagination’ has given birth to the greatest evils of human society — Totalitarianism, Eugenics, and Human Bondage, sociology is somehow the salvation of human civilization.  The ‘great sociologists’ include Marx, Sanger and Mao — three people responsible for the death of millions.  Enlightenment thinkers and individual liberty is wrong, and Thomas Jefferson’s ownership of slaves somehow invalidates the merit of any concepts he wrote on human liberty.

With all of that being stated — I pose a question to you, the great minds of notesonliberty.com:  To which schools within California shall I apply?  To which programs?  Is there any merit to a college education that has a legitimate basis in Art and Science, or is education within the college system simply a continued exercise in political indoctrination?  I write this in earnest — my thoughts aren’t in the least tongue-in-cheek.  Please, please, please, guide me to quality schools and baccalaureate programs for a libertarian thinker, so that I may not abandon my quest for a degree.

Help me, Obi-wan Kenobi.  You are my only hope.

Classical Liberals Who Weren’t Right About Everything

henrymoore Economics, History , , , , , , ,

Many classical liberals and their ideas have been maligned by their interpreters. We must set the record straight. Professor Ross Emmett, in “What’s Right with Malthus,” from The Freeman, champions the cause of Thomas Robert Malthus, who, contrary to what one might think after encountering Malthus’ followers and critics,

argued that private property rights, free markets, and…marriage were essential features of an advanced civilization.

Some disciples of Malthus took his erroneous population theory as evidence of the need for eugenics, population control, and environmental “regulation.” They ignored Malthus’ arguments favoring institutions more capable of (and more compassionate in) achieving their desired ends; institutions that first came about not by design, but by convention. The eugenicists Francis Galton and Julian Huxley (both related to Darwin), and eco-catastrophist Paul Ehrlich come to mind.

But there were also critics, who, preferring utopian visions of the perfectibility of mankind, denounced Malthus’ pessimistic views. Anarchists William Godwin and Pierre-Joseph Proudhon are most notable in this regard. Godwin and Malthus had exchanged criticisms (noted by Emmett) in some of their essays. Malthus attacked Godwin’s utopianism. Godwin assailed Malthus’ assumption of arithmetical increase in agricultural output, as compared to geometrical increase of population. And Proudhon targeted the overzealous Malthusians of his day, citing as grievances the former’s antagonism toward the lower classes. While neither Godwin nor Proudhon did terrible injustice to Malthus himself, they unintentionally contributed to the myth that the worst variety of population catastrophists were the most orthodox.

Notice the themes that Professor Emmett brings to our attention. First, that even in their controversial and disputable contributions, great theorists illuminate the path for later philosophers. Second, that human institutions can mitigate human nature’s undesirable effects.

In light of these, consider two other social theorists whose ideas have been abused by overenthusiastic students and overreactive peers alike: Herbert Spencer (insightful Malthus adherent), and the aforementioned Mr. Proudhon (noteworthy Malthus critic).

Leading “social Darwinist” (a pejorative used to link eugenics and capitalism), Herbert Spencer (considered a conservative anarchist by Georgi Plekhanov) was, like Darwin, influenced by Malthus’ idea that the fittest tend to survive overpopulation-induced catastrophes. He is known for having coined “survival of the fittest,” a term later used by Darwin in the fifth edition of On the Origin of Species (1859). Spencer originally used it to convey Darwin’s concept of natural selection, and drew parallels between biological evolution through natural selection and social evolution through market competition. But he never implied that they were identical or that marketplace competition was necessarily an outgrowth of natural selection.

If anything, it should be thought of as an alternative to natural selection. Humans, to survive as a species, might practice natural selection as a matter of biological fact. And without the ability to reason this might eventually lead to a Hobbesian jungle. But since man is rational, natural selection’s role in social evolution is significantly lessened. Society arises from the natural order of things. There is no need for the Commonwealth or the General Will to step in and provide it.

Friedrich Engels saw things differently when he wrote in the introduction to his Dialectics of Nature (1872/1883):

Darwin did not know what a bitter satire he wrote on mankind…when he showed that free competition…is the normal state of the animal kingdom. Only…production and distribution…carried on in a planned way, can lift mankind above the rest of the animal world…

Competition exists in both the natural world and free markets, so the connection between natural selection and marketplace competition, though spurious, seems all too obvious for critics of one or the other. They wrongfully project the cold, deterministic properties of nature onto economic freedom. But marketplace competition is an outgrowth of the ability to reason, not base survival instincts. The will to survive is certainly a factor of social progress, but taken on its own would tend toward more similarities with nature, such that the life of man would be “solitary, poor, nasty, brutish, and short.” Man has the faculties to escape the jungle, to leave the animal kingdom, to better his life without worsening others’.

Communist anarchist Pyotr Kropotkin (influenced by Godwin) juxtaposed social Darwinism, evolution requiring competition, with his own take, evolution requiring cooperation, in his book Mutual Aid: A Factor of Evolution (1902). In so doing, he disagreed with Engels on Darwin, by describing how natural selection depended at least as much upon cooperation as it did biological competition. But unfortunately he conformed to Engels on the false dichotomy between rational competition (free markets) and cooperation (mutual aid).

Our second subject, Pierre-Joseph Proudhon was a mutualist, an anarchist and a socialist. Yet some of his ideas are more in line with libertarianism than with contemporary socialism. They were often based on a fairly consistent concept of natural rights, but understood in light of fallacious economic principles, especially the labor theory of value (held by Locke, Smith, Ricardo, and Marx).

But utility-based theories are in vogue among today’s classical liberals and much of Proudhon’s economics has been rightly tossed aside. But his theory of spontaneous order and support for free markets should not be so readily discarded. Leave that to conservatives fearful of anything tainted by the socialist label, and to leftists whose only alternative would be to admit that the labor theory is passé.

Proudhon (General Idea of the Revolution in the Nineteenth Century, 1851) was also opposed to Hobbes’ and Rousseau’s social contract theories, having his own:

What really is the Social Contract? An agreement of the citizen with the government? No…The social contract is an agreement of man with man…from which must result what we call society…Commerce…the act by which man and man declare themselves essentially producers, and abdicate all pretension to govern each other.

Organic institutions, neither designed nor imposed!

It seems there’s much knowledge and inspiration to be gained by examining the forgotten words of discredited intellectuals. Warts and all.

Clean B****oles Becoming A Rarity in Socialist Venezuela

Brandon Christensen Current Events ,

I know this has been making the rounds in the blogsophere, but it’s still worth highlighting: Venezuela is facing shortages for a number of basic consumer goods, including toilet paper. Naturally, the socialists who have been in power for the past 14 years have tried to pin the blame on the opposition and the United States. From Hurriyet (“Turkey’s leading English daily”):

The South American OPEC member has the world’s largest proven oil reserves but has wrestled with periodic shortages of several consumer goods since price controls were imposed in 2003 under the late socialist leader Hugo Chavez.

“We have consistently denounced the strategy of hoarding and speculation, and the campaign of terror that has spread among the people, forcing them to buy compulsively and fearfully,” ruling party lawmaker Jose Avila said.

The government has long accused the center-right opposition and the United States of plotting to undermine Chavez’s self-styled socialist revolution.

Indeed. And how does the socialist government of Venezuela plan to counter the chronic shortages that price controls have created? Why, with more government programs of course:

Venezuela’s National Assembly on Tuesday approved a $79 million credit to import toilet paper and other personal hygiene products to relieve shortages in the petroleum-rich state.

There are more damning indictments of socialism as well, though none are explicit. In other news, I always smirk whenever I hear an ardent supporter of the current thief-in-chief here in the States try to pin the bad economy on the Bush administration’s mistakes. It’s been, what, five years now?