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Jun
02

Stop Statism

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This entry is part 18 of 22 in the series Great Libertarian Memes

This article is #18 of a weekly series highlighting the former memes of Bureaucrash, an organization once headed by my friends Pete Eyre and Jason Talley of the Motorhome Diaries. The memes were originally authored by Pete Eyre and Anja Hartleb-Parson, and were intended as means of communicating ideas about liberty in catchy and succinct ways.

Statists are anti-progress. Statists claim their policies are for the common good. For some this claim is just a front to get more power, but for others it is a genuine goal. Nevertheless, even the most well-intentioned statists, who believe that granting government the power to control individual actions will result in a better outcome, violate rights and cause harm. One need only consider historical fact to disprove this statist belief. For most of history, people were not free to decide how to live their lives because they lived in servitude to a noble or king. The vast majority of people were wretchedly poor, worked from dusk until dawn six or seven days a week, were prone to encounter devastating diseases, and died in their twenties or thirties. Even the privileged few — the kings, nobles and clergy — had nowhere near the standard of living that the ordinary worker in western countries enjoys today. It was classical liberalism — the ideas of British Enlightenment philosophers, Adam Smith, John Locke, John Stuart Mill, and the American “founding fathers” — that unlocked the true human potential. Classical liberalism set man free from servitude to another and gave him the right and the responsibility to care for his own life. As a result of the emergence and subsequent dominance of liberal democracy and capitalism in the last two hundred years, the world has seen progress unparalleled in human history: according to renowned economist Angus Maddison, “[w]orld per capita real income has risen twenty times as fast since 1820, than it did in the eight centuries from 1000 to 1820.”

Statism is anti-growth. Statists often justify their policies claiming that they want to reduce inequality and poverty. In reality though, statists achieve neither and often exacerbate both because their policies discourage economic growth, which is particularly detrimental to low income and poor people. For one, politicians and bureaucrats are limited in their knowledge, as is any individual. No matter how smart an elected official, bureaucrat, or committee is, there’s no way they could adequately plan and control the actions of millions of individuals to achieve maximal economic growth. Moreover, statism encourages rentseeking and protectionism, the activity of groups seeking government enforced advantages and insulation from the outcomes of free trade. This harms the consumer, who is forced to pay higher prices due to lack of competition and fund the rent through higher taxes. This statist action disincentivizes increases in production and job creation, thus depriving low income and poor people of better opportunities to make a living.

Statism causes conflict. Though statists claim to work for the common good, their actions benefit one group at the expense of another. Nazis favored the “Aryan” at the expense of all other nationalities and ethnicities; affirmative action proponents favor blacks, Hispanics and women at the expense of whites and males; socialists and unions favor workers at the expense of business owners; protectionists favor their native industry at the expense of that in other countries; rent-seekers favor their business, organization, or cause at the expense of other businesses, organizations, and causes at the expense of consumers; many religious people, but especially fundamentalists, favor their followers at the expense of those of another religion and at the expense of atheists; and earth liberation environmentalists favor nature at the expense of humans.

Hence, statists create friction and conflict among individuals, groups, and nations. The long stretch of peace during the mid-19th century was at least in part the result of limited government and laissez-faire economics in places like Britain and the United States. The free movement of people was widespread; Russia, the only country that required a passport, was considered backwards. The bloody wars and atrocities committed by governments during the 20th century were the consequence of a move toward state intervention to control people’s lives, ultimately leading to the emergence of ultra-statist regimes such as Nazi Germany, Fascist Italy, Communist Russia and Maoist China, and many other totalitarian experiments including a United States that interned over 110,000 individuals of Japanese descent, drafted many more individuals, and implemented wage and price controls.

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May
22

Stop Rent-seeking

Posted by: | (18)
This entry is part 17 of 22 in the series Great Libertarian Memes

This article is #17 of a weekly series highlighting the former memes of Bureaucrash, an organization once headed by my friends Pete Eyre and Jason Talley of the Motorhome Diaries. The memes were originally authored by Pete Eyre and Anja Hartleb-Parson, and were intended as means of communicating ideas about liberty in catchy and succinct ways.

Rent-seeking refers to the behavior of individuals or groups expending resources to achieve public policy decisions that transfer wealth to them at the expense of others. Some examples:

  • A nonprofit organization might seek for the government to spend taxpayer money on their pet cause, such as protecting the environment or researching a disease.
  • A workers’ union might want the government to force employers to provide higher wages, more benefits and greater job security.
  • A corporation might seek subsidization to support an unsustainable business model instead of working to become more profitable.

While the rent-seekers should be faulted for the behavior, it is the government granting rent-seekers what they want that is the real problem. As it shells out more benefits and privileges, government has to collect more taxes to administer and pay for them, thus vastly increasing its size and scope.

Rent-seeking is theft. A rent-seeker wants to achieve a wealth transfer in his favor without having to provide value in return. In a mixed economy, companies and organizations find it more effective to petition the government for protection (i.e. subsidies, tariffs, entry barriers, regulations, etc.) than to compete by providing goods and services that consumers want to pay for. Since in a free market the choices of other individuals might not go in his favor, the rent-seeker would rather have the government initiate force against those individuals. The free market, on the other hand, is predicated upon and respects individuals’ free choices. Rent-seekers hinder the dynamism of the free market. When you and I trade in the free market, we each give the other something the other wants more than we want it, relative to what we receive in exchange. By contrast, when the government initiates force in favor of a rent-seeker, it makes everybody but the rent-seeker worse off. It leaves the rent-seeker’s competitors worse off, because the rent-seeker now has a government-enforced advantage, whether in the form of a government-approved monopoly, or stifling regulations faced by would-be entrepreneurs. Because market forces and signals are hindered and distorted, this leaves consumers worse off. They are forced to pay higher prices for poorer quality goods and services.

Rent-seeking harms economic growth. Instead of companies investing their money in new technology, new jobs, offering consumers better products and better prices, or increasing their employees’ pay, the money ends up in the pockets of lobbyists and the politicians able to grant favors. Consumers are forced to pay more for goods and services and taxpayers have to foot the bill for the rent-seekers’ government-enforced advantage. So, over time, as government arbitrarily favors one group over another and expands in size in order to pay for rents, rent-seeking erodes the mechanisms that make economic growth and wealth creation possible: the impartial rule of law, limited government and individual rights.

Statists, whether out of distrust of individuals or faith in the ability of the government, prefer that the state controls people instead of people controlling themselves; they opt for government intervention rather than individual liberty. Statist policies can include regulation of the economy, provision of social goods, and control over personal behaviors. Many political ideologies can be subsumed under the label “statist” — communism, fascism, authoritarianism, totalitarianism. Even a democracy can become statist if it does not create or does not follow constitutional safeguards against the majority imposing its will without regard for the individual rights of the minority.

Statism is anti-liberty. Individuals have property in themselves, also called self-ownership, which entails they should be free to control their bodies, their minds and their lives. The only way to interfere with that freedom is by means of physical force. The job of governments is to defend individual rights by protecting individuals against the initiation of physical force. However, when governments institute statist policies, they initiate force against individuals who are not infringing on the liberty of others and thus violate individual rights. For instance, regulations, tariffs and subsidies for businesses violate the rights of entrepreneurs and consumers, who both are prevented from voluntarily determining the terms of their interactions with others. If I choose to not give my money to a certain business, government has no authority to overrule that decision. It violates my freedom of choice and deprives others of the property they would have gained in the absence of government interference. Immigration restrictions violate the rights of individuals, since they are prevented from peacefully living and working where they choose to. Bans on smoking and the use of other drugs, speed limits and seat belt requirements, and laws preventing the sale of organs violate your rights since you are prevented from making decisions about your own body.

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May
15

Social Slavery

Posted by: | (4)
This entry is part 16 of 22 in the series Great Libertarian Memes

This article is #16 of a weekly series highlighting the former memes of Bureaucrash, an organization once headed by my friends Pete Eyre and Jason Talley of the Motorhome Diaries. The memes were originally authored by Pete Eyre and Anja Hartleb-Parson, and were intended as means of communicating ideas about liberty in catchy and succinct ways.

The current Social Security (aka “socialist insecurity”) system is designed as a pay-as-you-go system, in which current workers’ tax dollars pay for the benefits of retirees. And the system is in serious trouble. With increased life expectancy and a declining birth rate, there are fewer workers to support a greater number of retirees. In 1950, there were 16 workers paying for the benefits of one retiree. Today, there are about three workers per retiree, and by 2025 there will only be two. According to the Social Security Administration itself, if unreformed, Social Security will begin running a deficit by 2017, and by 2060 Social Security and Medicare combined will make up 71 percent of the federal budget.

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This entry is part 15 of 22 in the series Great Libertarian Memes

This article is #15 of a weekly series highlighting the former memes of Bureaucrash, an organization once headed by my friends Pete Eyre and Jason Talley of the Motorhome Diaries. The memes were originally authored by Pete Eyre and Anja Hartleb-Parson, and were intended as means of communicating ideas about liberty in catchy and succinct ways.

Smoking bans have gone into effect in many jurisdictions, mostly indoors (bars, restaurants, workplaces, casinos, even apartments and condos) but also outdoors (beaches, in front of public buildings, parks and stadiums). Under the auspices of “protecting people” the government tries to discourage individuals from smoking by levying “sin taxes” on the cigarettes they buy and prohibits smokers from lighting up in places they share with non-smokers. To dissuade people—especially young folks—from starting to smoke, the government has banned cigarette advertising from TV and radio.

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This entry is part 14 of 22 in the series Great Libertarian Memes

This article is #14 of a weekly series highlighting the former memes of Bureaucrash, an organization once headed by my friends Pete Eyre and Jason Talley of the Motorhome Diaries. The memes were originally authored by Pete Eyre and Anja Hartleb-Parson, and were intended as means of communicating ideas about liberty in catchy and succinct ways.

“Progress” is an abused word these days, especially by bureaucrats and the special interest groups that cater to them. Yet such groups, in the name of progress and social justice, support government intervention through intervention in the market, minimum or living wages, and universal healthcare. We find neither progress nor justice in government actions that advance one group at the expense of another. Don’t get us wrong: we are for progress — for economic growth, wealth creation, and the elimination of poverty — but we understand that progress grows from voluntary interactions and respect of individual rights. That which violates the rights of individuals cannot be progress.

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