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January 21st, 2012 - 23:59 § in Economics, Philosophy, Politics

Contra Libertarianism – I

Introduction & Definitions

It all sounds so good in theory. People should be free from the control of others – both politically and economically. If they earn money, they should be able to keep it. If people want to speak out, they should be able to. Above all, individuals should be free to live as they want without some government pushing them around. It’s a nice, simple and easy to make argument.

After a long period in the political wilderness, libertarianism is increasingly fashionable, especially in the United States. While its new popularity in America is certainly connected to the advocacy of well-funded organizations such as the Cato Institute and the support of wealthy donors such as the Koch Brothers, there is much more behind it.

Libertarianism is not just an elite movement. Part of its popularity is its simple message: Leave me alone. Not only does this play well with the ideal of American rugged individualism, but it contrasts sharply with a sour image of an overweening and incompetent state. At a visceral level, it’s Google versus the DMV. Libertarianism has also gained traction as a central part of the Tea Party ideology that opposes an out of touch statist “liberal elite”. While many Tea Party adherents are social conservatives who dislike liberal moral views, libertarianism is still an important part of their thinking. Much of the resentment against elites has also been fueled by difficult economic times – which often trigger the rise of heterodox ideologies.

At the same time, the economics seem to strongly support capitalism. Socialist countries in Europe are often seen as hopelessly handicapped by the state – and the welfare state is seen as increasingly unaffordable. The intellectual death of communism took away meaningful competition from market economics. When we compare capitalist economies with those in communist countries, they are much more productive – and generate vastly greater wealth. As a result, people living in non-market economies tend to be much poorer. This grim stability is what eventually sucked the life out of the Soviet Union. Believable alternatives to the market system don’t really exist.

The dearth of new thinking on the left has reinforced the libertarian argument that government is deadweight on the economy that can undermine both freedom and prosperity. To many libertarians, the state is a regrettable necessity that will displace the private sector if it grows too large. This perceived public sector toxicity explains their belief that it should not expand beyond enforcing contracts, ensuring national defense, and performing a few other very narrowly defined duties. If government can be kept vanishingly small, libertarians believe that the energy liberated can create lasting prosperity. The free market is the key to political, social and economic success.

At the same time, libertarians also seek to maximize personal freedom on moral grounds. While this often translates into strong opposition to taxes, it usually also extends to strong support for civil liberties and opposition to censorship, religious control, and the regulation of personal behavior. It also often (but not always) entails tolerance for traditional out-groups.

At the root of many libertarian arguments is a strong belief that people are individuals and that looking at society as more than a collection of individuals will lead to odious collectivism.

Definitions

Like any ideology, libertarianism encompasses a fairly broad range of thoughts. While adherents share strong common opposition to government action, they vary in their acceptance of the state. While at one extreme, anti-state sentiment is so intense that it veers close to anarchism, most other libertarians grudgingly accept government as a necessary evil – to be minimized.

Support for libertarianism also has different philosophical origins. For example, the “consequentialist libertarians” such as Milton Friedman, Ludwig von Mises and Friedrich Hayek believed that liberty leads to prosperity and peace – which is why it should be supported. However, “deontological” or “natural rights” libertarians such as Robert Nozick consider the use of force to be always immoral.

However, moral issues often change the flavor of libertarians. For example, there is a left-leaning variant that is highly anti-authoritarian and opposes large “exploitive” institutions while on the other side there is paleolibertarianism that fuses traditional values with libertarianism. This latter ideology seems close to the world of the Tea Party.

In order to make this discussion manageable, I will use the 2010 Libertarian Party Platform as a point of reference for this series of articles:


Statement of Principles

We, the members of the Libertarian Party, challenge the cult of the omnipotent state and defend the rights of the individual.

We hold that all individuals have the right to exercise sole dominion over their own lives, and have the right to live in whatever manner they choose, so long as they do not forcibly interfere with the equal right of others to live in whatever manner they choose.

Governments throughout history have regularly operated on the opposite principle, that the State has the right to dispose of the lives of individuals and the fruits of their labor. Even within the United States, all political parties other than our own grant to government the right to regulate the lives of individuals and seize the fruits of their labor without their consent.

We, on the contrary, deny the right of any government to do these things, and hold that where governments exist, they must not violate the rights of any individual: namely, (1) the right to life — accordingly we support the prohibition of the initiation of physical force against others; (2) the right to liberty of speech and action — accordingly we oppose all attempts by government to abridge the freedom of speech and press, as well as government censorship in any form; and (3) the right to property — accordingly we oppose all government interference with private property, such as confiscation, nationalization, and eminent domain, and support the prohibition of robbery, trespass, fraud, and misrepresentation.

Since governments, when instituted, must not violate individual rights, we oppose all interference by government in the areas of voluntary and contractual relations among individuals. People should not be forced to sacrifice their lives and property for the benefit of others. They should be left free by government to deal with one another as free traders; and the resultant economic system, the only one compatible with the protection of individual rights, is the free market.

1.0 Personal Liberty. Individuals should be free to make choices for themselves and to accept responsibility for the consequences of the choices they make. No individual, group, or government may initiate force against any other individual, group, or government. Our support of an individual’s right to make choices in life does not mean that we necessarily approve or disapprove of those choices.

1.1 Expression and Communication. We support full freedom of expression and oppose government censorship, regulation or control of communications media and technology. We favor the freedom to engage in or abstain from any religious activities that do not violate the rights of others. We oppose government actions which either aid or attack any religion.

1.2 Personal Privacy. Libertarians support the rights recognized by the Fourth Amendment to be secure in our persons, homes, and property. Protection from unreasonable search and seizure should include records held by third parties, such as email, medical, and library records. Only actions that infringe on the rights of others can properly be termed crimes. We favor the repeal of all laws creating “crimes” without victims, such as the use of drugs for medicinal or recreational purposes.

1.3 Personal Relationships. Sexual orientation, preference, gender, or gender identity should have no impact on the government’s treatment of individuals, such as in current marriage, child custody, adoption, immigration or military service laws. Government does not have the authority to define, license or restrict personal relationships. Consenting adults should be free to choose their own sexual practices and personal relationships.

1.4 Abortion. Recognizing that abortion is a sensitive issue and that people can hold good-faith views on all sides, we believe that government should be kept out of the matter, leaving the question to each person for their conscientious consideration.

1.5 Crime and Justice. Government exists to protect the rights of every individual including life, liberty and property. Criminal laws should be limited to violation of the rights of others through force or fraud, or deliberate actions that place others involuntarily at significant risk of harm. Individuals retain the right to voluntarily assume risk of harm to themselves. We support restitution of the victim to the fullest degree possible at the expense of the criminal or the negligent wrongdoer. We oppose reduction of constitutional safeguards of the rights of the criminally accused. The rights of due process, a speedy trial, legal counsel, trial by jury, and the legal presumption of innocence until proven guilty, must not be denied. We assert the common-law right of juries to judge not only the facts but also the justice of the law.

1.6 Self-Defense. The only legitimate use of force is in defense of individual rights — life, liberty, and justly acquired property — against aggression. This right inheres in the individual, who may agree to be aided by any other individual or group. We affirm the individual right recognized by the Second Amendment to keep and bear arms, and oppose the prosecution of individuals for exercising their rights of self-defense. We oppose all laws at any level of government requiring registration of, or restricting, the ownership, manufacture, or transfer or sale of firearms or ammunition.

2.0 Economic Liberty. Libertarians want all members of society to have abundant opportunities to achieve economic success. A free and competitive market allocates resources in the most efficient manner. Each person has the right to offer goods and services to others on the free market. The only proper role of government in the economic realm is to protect property rights, adjudicate disputes, and provide a legal framework in which voluntary trade is protected. All efforts by government to redistribute wealth, or to control or manage trade, are improper in a free society.

2.1 Property and Contract. Property rights are entitled to the same protection as all other human rights. The owners of property have the full right to control, use, dispose of, or in any manner enjoy, their property without interference, until and unless the exercise of their control infringes the valid rights of others. We oppose all controls on wages, prices, rents, profits, production, and interest rates. We advocate the repeal of all laws banning or restricting the advertising of prices, products, or services. We oppose all violations of the right to private property, liberty of contract, and freedom of trade. The right to trade includes the right not to trade — for any reasons whatsoever. Where property, including land, has been taken from its rightful owners by the government or private action in violation of individual rights, we favor restitution to the rightful owners.

2.2 Environment. We support a clean and healthy environment and sensible use of our natural resources. Private landowners and conservation groups have a vested interest in maintaining natural resources. Pollution and misuse of resources cause damage to our ecosystem. Governments, unlike private businesses, are unaccountable for such damage done to our environment and have a terrible track record when it comes to environmental protection. Protecting the environment requires a clear definition and enforcement of individual rights in resources like land, water, air, and wildlife. Free markets and property rights stimulate the technological innovations and behavioral changes required to protect our environment and ecosystems. We realize that our planet’s climate is constantly changing, but environmental advocates and social pressure are the most effective means of changing public behavior.

2.3 Energy and Resources. While energy is needed to fuel a modern society, government should not be subsidizing any particular form of energy. We oppose all government control of energy pricing, allocation, and production.

2.4 Government Finance and Spending. All persons are entitled to keep the fruits of their labor. We call for the repeal of the income tax, the abolishment of the Internal Revenue Service and all federal programs and services not required under the U.S. Constitution. We oppose any legal requirements forcing employers to serve as tax collectors. Government should not incur debt, which burdens future generations without their consent. We support the passage of a “Balanced Budget Amendment” to the U.S. Constitution, provided that the budget is balanced exclusively by cutting expenditures, and not by raising taxes.

2.5 Money and Financial Markets. We favor free-market banking, with unrestricted competition among banks and depository institutions of all types. Individuals engaged in voluntary exchange should be free to use as money any mutually agreeable commodity or item. We support a halt to inflationary monetary policies and unconstitutional legal tender laws.

2.6 Monopolies and Corporations. We defend the right of individuals to form corporations, cooperatives and other types of companies based on voluntary association. We seek to divest government of all functions that can be provided by non-governmental organizations or private individuals. We oppose government subsidies to business, labor, or any other special interest. Industries should be governed by free markets.

2.7 Labor Markets. We support repeal of all laws which impede the ability of any person to find employment. We oppose government-fostered forced retirement. We support the right of free persons to associate or not associate in labor unions, and an employer should have the right to recognize or refuse to recognize a union. We oppose government interference in bargaining, such as compulsory arbitration or imposing an obligation to bargain.

2.8 Education. Education, like any other service, is best provided by the free market, achieving greater quality and efficiency with more diversity of choice. Schools should be managed locally to achieve greater accountability and parental involvement. Recognizing that the education of children is inextricably linked to moral values, we would return authority to parents to determine the education of their children, without interference from government. In particular, parents should have control of and responsibility for all funds expended for their children’s education.

2.9 Health Care. We favor restoring and reviving a free market health care system. We recognize the freedom of individuals to determine the level of health insurance they want, the level of health care they want, the care providers they want, the medicines and treatments they will use and all other aspects of their medical care, including end-of-life decisions. People should be free to purchase health insurance across state lines.

2.10 Retirement and Income Security. Retirement planning is the responsibility of the individual, not the government. Libertarians would phase out the current government-sponsored Social Security system and transition to a private voluntary system. The proper and most effective source of help for the poor is the voluntary efforts of private groups and individuals. We believe members of society will become more charitable and civil society will be strengthened as government reduces its activity in this realm.

3.2 Internal Security and Individual Rights. The defense of the country requires that we have adequate intelligence to detect and to counter threats to domestic security. This requirement must not take priority over maintaining the civil liberties of our citizens. The Constitution and Bill of Rights shall not be suspended even during time of war. Intelligence agencies that legitimately seek to preserve the security of the nation must be subject to oversight and transparency. We oppose the government’s use of secret classifications to keep from the public information that it should have, especially that which shows that the government has violated the law.

3.5 Rights and Discrimination. We condemn bigotry as irrational and repugnant. Government should not deny or abridge any individual’s rights based on sex, wealth, race, color, creed, age, national origin, personal habits, political preference or sexual orientation. Parents, or other guardians, have the right to raise their children according to their own standards and beliefs.

3.6 Representative Government. We support electoral systems that are more representative of the electorate at the federal, state and local levels. As private voluntary groups, political parties should be allowed to establish their own rules for nomination procedures, primaries and conventions. We call for an end to any tax-financed subsidies to candidates or parties and the repeal of all laws which restrict voluntary financing of election campaigns. We oppose laws that effectively exclude alternative candidates and parties, deny ballot access, gerrymander districts, or deny the voters their right to consider all legitimate alternatives.

3.7 Self-Determination. Whenever any form of government becomes destructive of individual liberty, it is the right of the people to alter or to abolish it, and to agree to such new governance as to them shall seem most likely to protect their liberty.

While I strongly support the libertarian embrace of civil liberties and tolerance on social issues, I have deep concerns about their economic policies in particular. Not only are many libertarian ideas based on questionable assumptions about the markets, but they lead to some very questionable policy conclusions.

With an increasing influence of libertarian ideas, it’s time to highlight the significant problems with this ideology. Libertarian fiscal and monetary policies point to a small state that could be a threat to stability, democracy and prosperity. Over the next few weeks, I will look at these arguments in some detail. Next week will focus on the history of libertarianism.


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