Showing posts with label Ludwig von Mises. Show all posts
Showing posts with label Ludwig von Mises. Show all posts

Wednesday, February 9, 2011

First Principles, Please: CPAC, GoProud, and Gay Marriage

(I wanted to edit this post but decided to leave it as it is, an off-the-cuff rambling of sorts.)

 “Only in the frame of a free society is it meaningful to distinguish between what is good and ought to be done and what is bad and ought to be avoided.”~~ Ludwig von Mises

“What is conservatism all about?” asks your friend who is new to politics.

Quick!  Your friend’s attention span is 140 characters (thanks to Twitter). What do you say?   

Chances are the phrases, Individual liberty and, Limited government, or some analogous expressions of the same, crop up. 

I say “chances are” for a reason. Instinctively most conservatives would respond with these phrases because they are the foundation of what is broadly called the conservative movement.  Other important principles such as Constitutionalism and federalism, free market enterprise, property and gun rights, low taxation, spending restraint, and school choice are derivatives of these philosophical lodestars. 

Chances should also be great that you did not think, More federal legislation and bigger government.  That wouldn’t be “conservative.”

As Grover Norquist at the American Conservative Union would say, the center-Right coalition shares an attitude that sums up these conservative principles: “Leave us alone.”  It is the common thread among the respective political action groups that constitute conservative activism.

Enter CPAC, GoProud, and some social conservative groups at the center of so much hubbub of late.

The acronym, CPAC, stands for the Conservative Political Action Conference.  It is the largest annual consortium of political activists and special interest groups, representing the broad base of a political coalition.

That said, in what kind of political action are social conservatives who are boycotting CPAC interested?  

Their chief political interest is enacting social legislation DOMA, the defense of marriage act, to “protect traditional marriage.“

Such political action in the interest of legislating social values cuts directly against core conservative values.  (Hold on, comment on social conservatism is reserved for the end.)  What happens to the principle of “limited government” if we go to government, hat-in-hand, and ask for the privilege of legislating at the federal level traditional marriage on society? This would be an expansion of government reach at a drastic level, conferring to the federal government a power we’ve erroneously allowed state governments for generations. 

And what about federalism, that long-neglected check on federal government overreach?  DOMA is a further erosion of that principle at a time when many activists are seeking to revive the 10th Amendment and nullification in response to Obamacare.

Further, what would be the practical implications of DOMA?  Once we’ve further expanded the unconstitutional powers and bureaucratic apparatus of the federal government, is there any guarantee that one day gay marriage advocates will not be in a position to utilize that same power of government?  As history attests, with every increase in the size of government we further place ourselves and our liberties at the whimsical mercy of whatever group of politicians and bureaucrats hold power.  That’s just a very bad idea for political action, and certainly not a conservative one.   As Reagan said with eloquent simplicity, when government grown, liberty shrinks. 

It is worth noting the only reason there is a desire to “protect” traditional marriage is that we’ve allowed state governments the ridiculously inappropriate power to validate marriages.  What business does that state have interfering in a contract between private individuals?  (Remember that whole Leave Us Alone thing?) 

What is really in need of being protected, then, is not the institution of marriage itself but individuals from being forced by the government to legally recognize homosexual marriage.  (Traditional marriages would not cease to transpire or exist, after all.) This is a concern but the threat here is not the vows two men I’ll never meet say to each other and their lifestyle I don’t condone, but the government itself that is so big and so intrusive that it can actually be manipulated to force a legal recognition homosexual marriage, just as DOMA would establish a national standard of traditional marriage.

This being the problem, why would people in the coalition of “leave us alone” want to simply turn the power of government onto others in society in the form of federal legislation? The “us” in “leave us alone” denotes everyone, not just a privileged class who is first in line to use the power of government for their own social preferences.  That’s just not “conservative.”

The problem is too much government in too many places using coercive force on too many individuals.  The solution is less government, not more in the interest of traditional marriage, gay marriage, no marriage, or what have you.

In his postscript to The Constitution of Liberty, F.A. Hayek lucidly described the Old World conservatives who opposed classical liberals who favored limiting the power of government and stressed the primacy of the individual.  It is a lengthy passage but well worth considering in this context.  Hayek says,

 “Let me return…to the main point, which is the characteristic complacency of the conservative toward the action of established authority and his prime concern that this authority be not weakened rather than that its power be kept within bounds.  This is difficult to reconcile with the preservation of liberty.  In general, it can probably be said that the conservative does not object to coercion or arbitrary power so long as it is used for what he regards as the right purposes. He believes that if government is in the hands of decent men, it ought not be too much restricted by rigid rules.  Since he is essentially opportunist and lacks principles, his main hope must be that the wise and the good will rule—not merely by example, as we all must wish, but by authority given to them and enforced by them.  Like the socialist, he is less concerned with the problem of how the powers of government should be limited than with that of who wields them; and, like the socialist, he regards himself as entitled to force the values he holds on other people.” [Emphasis added.]

 Hayek was not describing American conservatives.  I sadly observe, however, that these lines seem tailor-made to describe some social conservative groups vying for DOMA and boycotting CPAC over GoProud’s presence.

On the other side of gay marriage we see activists leveraging the court system urging judicial activism for the sake of imposing a legal recognition of gay marriage on the rest of society.  Would state referendums be better?  Hardly.   Either would force society through the coercion of government to recognize and validate homosexuality.  If people do not wish to recognize gay marriage why should they be forced to?  

Principled, conservative activism would be to oppose this wily judicial activism because it is judicial activism and referendum efforts not because it is being leveraged by gay activists, then work to undo the ridiculous state government requirements to get state approval to get married. 

Getting government out of the middle alleviates the rest of society from legally recognizing gay marriage. If gays wish to get married, why should they not be free to do so?  If they are free to do so I am free to—here’s a concept—leave them alone to do so.   If they wish to do so and not care about legally binding me to condone it, why would I care? (Hold on, talk of social impact of mores coming soon.)

So what of GoProud?  Where do they stand in all this? I called their office to inquire of their view of gay marriage and judicial activism. They would only say they oppose DOMA and a constitutional amendment on traditional marriage on the grounds of federalism and equal rights, and that marriage is a matter for the states.  There was no comment on judicial activism and gay marriage at the state level.

At this point I see both an opportunity and a concern for them.  If they stand by their principles and want to see policy derivative of the principles they profess, they should come out (absolutely no pun intended there) unambiguously against imposing gay marriage on society just as rigorously as they oppose DOMA.  GoProud stands for limited government and liberty, so taking such a stand would be a principled, conservative stance to make and, combined with their stated legislative priorities and core principles, make them a valued activist member of the center-right coalition.  Not doing so, unfortunately, makes them appear complacent in such an important matter.

Here would be a good place to inject that I am a social conservative.  Among other things, I recognize the social benefits of traditional family values.  I do not condone homosexuality.  In fact, socially I see in it a philosophical and moral error.  But not condoning homosexuality should not equate to supporting DOMA if one holds to basic political principles, and opposing legal recognition of gay marriage should not be one labeled a homophobe.  I am simply trying to be intellectually consistent as both a partisan of liberty and the Constitution and a social conservative (one opposed to big government no matter who is in charge).

I also recognize that using government as a vehicle to apply social values—whoever’s social values—destroys the freedom that is a prerequisite to live the moral life that is good for society.  If you are compelled toward holding to a value, how legitimate is that belief?  If you come to that belief through the free exchange of ideas and after someone appealed to your reason and intellect, congratulations, you actually believe it. As Ludwig von Mise reminds us, “Only in the frame of a free society is it meaningful to distinguish between what is good and ought to be done and what is bad and ought to be avoided.” 

If I truly desire freedom for myself and society—to be left alone—that freedom comes at a cost: people will use that freedom in manners that I do not approve of that, as Jefferson would say, neither break my leg nor pick my pocket. Put government in the middle of everything and how other people live their lives will indeed affect me; doing so puts more people in society at odds with other people and gives us incentives to neglect our principles and want the government to do more on our behalf at the cost of other’s freedom.

That’s just not conservative.

I don’t share GoProud’s social values but I certainly share their political convictions, especially if they publically oppose imposing gay marriage through the court system.  I share most of the social values of social conservatives but don’t share the political goal of DOMA.  (Whatever problem social conservatives have with “big government” too often seems to be that the wrong people are in charge, not with big government itself.)

Returning to Hayek:  

“The typical conservative is indeed usually a man of very strong moral convictions.  What I mean is that he has no political principles which enable him to work with people whose moral values differ from his own for a political order in which both can obey their convictions.”

I’m going to go out on a limb here and assert that conservatism is primarily a political movement about freedom and free society.  Conservatism is also a social movement wherein we may persuade and influence others about social mores and what is good for society, but in order for any social impact to be meaningful such persuasion has to transpire freely, in society among ourselves, not at the coercive end of laws and regulations.  Only in a free society can conservative political and social values coincide. 

It will be interesting at CPAC this year.  I hope to come away energized, but above all else I hope to first feel and then feed off a vibrant love of liberty.  I need it.  We all need it.



Wednesday, January 26, 2011

Enrico Pallazzo, Part II: Books and More Books!

Adam,
I hope you didn't take my email the wrong way, I guess I was trying to add some sarcasm.  I still would like to meet up for a beer some night and discuss FDR, but several other items too.  A big question that I have is, why do some countries force their style of government/economy on others, e.g., democracy/capitalism has historically fought with communism/socialism.  Why do these countries care?  Why don't they worry about their own people?
I would also like to add to my reading list.  I believe I mentioned to you before that a buddy at church gave me a list of reading recommendations, some of them matched your book reports on your website, and yet a third source provided me with similar matches so I'm thinking these are good books to read:
I'm also considering Economics in One Lesson I took a basic Econ class as a freshman in college but I dont remember a whole lot about it and I'm thinking I need a refresher.  I borrowed the text book from my hallmate to save money so I dont have anything to recall.  I've heard Animal Farm is a good book too.  Maybe that will help me answer my previous questions.  My friend also recommended a lot of books by Larry Schweikart, but some of his titles have me concerned I'll be getting a biased opinion.  I want to read objective opinions, not biased.
Anyway, maybe if our schedules permit we could grab a beer late next week (I'm just getting over a cold) and have a discussion.
Enrico
~~~~~~~~~~~~~~~~~~~~~~~~~~~~


Enrico,

We really need to get together.  The books and authors you express interest in are excellent resources, and the questions you raise are excellent.  I love this stuff and it rarely occurs that someone I know expresses interest in it.

The Federalist Papers are a tremendous insight into what the Constitution was designed to do.
Hayek's Road to Serfdom is a classic--a must read.
Friedman's Capitalism and Freedom I read for the first time just a couple years ago and is another good one.

And Economics in One Lesson is a great book.  It should be taught in every high school and in every Econ 101 college course.  I was considering rereading it and posting several thoughts on it on the site.  It is most likely a good thing you do not remember much from your college econ 101 course; at the risk of sounding flippant, it was probably not worth remembering.  That is, if it were like the one I took many years ago.

It is a good thing you're after objective insights.  So much of what we hear from "economists" is thinly-veiled partisan cheerleading.  They have a progressive, statist agenda and wrap economic "insights" around it in order to give it some public validity.  One important aspect of the "Austrian Economists" school of thought is that economics is the study of human action and interaction, therefore an objective study of society and civilization.  Why, for example, were the vast majority of humans destined to lives of hand-to-mouth poverty for thousands of recorded history right up to the Industrial Revolution, then almost instantly (from an historical point of view) the standard of living leaped forward to what we enjoy today? 

What's the reason for all this progress and leisure time that allows for human cultivation, the arts, etc.  Line workers can come home to heated and lit homes to spend hours not concerned how they will feed their families.  (I learned a love of reading from my father who worked for 35 years in an aluminum plant.  He came home and cultivated a family, always eager to discover life through books.)  The answer to that question comes down to the central theme of human freedom.  Whenever and wherever some of us are free enough to provide what the rest of us need an want, human civilization prospers.  Whenever and wherever humans are less free, they are concomitantly less prosperous.  It sounds un-sophisticatedly simple, but history and facts are stubborn things.  (As John Adams would say.)

That's a long-winded way of responding to your desire to go after non-biased opinions.  Frankly, the Austrian school and similar economists and thinkers are interested in the bare historical record and understanding and explaining why things are the way they are.  Yes, they have an opinion but that opinion is rooted in a good-faith effort to get to the truth of the matter, not the creation of truth outside of what we can gather from history, human nature, and empirical evidence.  The socialists have never been so interested.  They have opinions, but theirs are opinions rooted in speculations drummed up by Marx, seemingly out of thin air.   Starting with Marx and Engels, they from the outset have been interested in rewriting history and imposing upon society their vision and philosophy of how the world works.  They are interested in having some of us (government authorities and their elitist "intellectual" apologists) plan and control what the rest of us can and cannot do with our time, capital, labor, energies, all in order to control and shape society into an image of their choosing.  I've found anyone affected in the least with this thought will from the outset not be interested in unbiased reporting of history and events. 

This brings me to more book suggestions: Thomas Sowell's A Conflict of Visions lays out this split in world visions starting with the Renaissance right up to today (1995 when the book was published).  The Vision of The Anointed is another one of his dealing with this issue.  And his latest, Intellectuals and Society is sort of a summation of all his thoughts on the elitist statists mentality and the pro-freedom, we-don't-know-everything-so-
it's-better-to-let-society-shape-itself view.   Sowell has written many books for public consumption; his books read quickly and easily without all the economist mumbo-jumbo jargon.

This is a very long e-mail but I would be remiss if I were to not recommend Ludwig von Mises' Liberalism: The Classical Tradition.  If I had to recommend three pieces of literature for a rebirth of freedom to society they would be 1) this book, 2) Hazlitt's Economics in One Lesson, and 3) the US Constitution w/ the Declaration of Independence.  Mises also writes clearly and spares the reader all the jargon.

We have to get together!  This weekend is out, unfortunately.  I'll check about some things and maybe one night this week?

Adam

Thursday, January 20, 2011

ObamaCare and Model T Fords: Give Free Exchange a Chance



Who made more money and became a household name around the modern world: Henry Ford or the guy who started the Rolls Royce company?  (See, I have no clue who the latter is.) 

Now that Obamacare has been back in the news it is a good time to consider why Ford became so rich and renowned.  What's the connection?  When it comes to health care we reflexively assume it is a political problem and not an economic one.  Being that it is a heart an economic issue, what would be the best way to delivery affordable health care to 300+ million Americans who, presumably, actually want affordable health care?

Ford found a way to provide millions of Americans with something they wanted.  He dropped the price of an automobile from $850 in 1909 to $290 in the 1920s.  By "dropped the price" I mean he saw that  economy of scale and selling more cars to more people would make him more money so he decreased the cost of production through greater efficiency.  This profit mongering made the horseless carriage available to more and more people at a cheaper price.  

Ford operated in a vastly freer and broadly less government controlled environment.  Providing affordable automobiles to millions of Americans was also not a politically-charged endeavor wherein politicians demagogued the car industry at every turn and people assumed they had a "right" to not have to pay for one. There were no government subsidies, Motorcare, or Motorcaid getting in between Ford and his goal of delivering affordable and reliable Ts to his customers.   

In short, Ford did not have the government stopping him from providing Americans with what they want. 


For decades now the health care system has become increasingly entangled in cumbersome state and federal regulations and mandates.  Add to this efficiency-killer the insurance problem: for generations Americans have become accustomed to the third party model of paying for services.

Were Ford alive today and interested in turning his time, talents, energies, and capital towards providing Americans with more affordable health care he would have a much more difficult time delivering lower costs.  Actually given all the restrictions, regulations, government intervention, and insurance cartels provided by ObamaCare, he probably would not even give it a go.  Government is simply in the way.

The 2,700+ page health care law that will get piled onto all this mess (What could go wrong?!) will compound the very problems that have led to unnecessarily high prices in health care: increased bureaucratization, increased governmental command, and less consumer control.

So the Republicans have symbolically repealed Obamacare in the House.  That's nice, but how about publicly discussing that whole freedom in the market place thing that's worked somewhat well for us since the colonial days?  In every market that is unsubsidized and not controlled through the regulatory regimes in DC, Americans enjoy affordable and quality products and services. 

Milton Friedman makes the case:
   

Pro-freedom policies are a proactive, forward-looking approach to lowering the price of
health care.  Insisting on more central planning, corporatism, and government control of our lives is a turning back of the clock to the times that predate free markets and prosperity in modern society.   

We don't need to resurrect Henry Ford.  We need to resurrect the free market environment in which he made his millions by lowering the costs of a product Americans desired.  Now that's a progressive policy for health care. 

Friday, December 17, 2010

So What's So Wrong About Scrooge? A Free Market Perspective on "A Christmas Carol"

"The much decried 'mechanism' of the free market leaves only one way open to the acquisition of wealth, viz., to succeed in serving the consumers in the best possible and cheapest way."~~~Ludwig von Mises Liberalism: The Classical Tradition

You've probably watched it and you'll probably watch it again.  A Christmas Carol is looping on cable along with the other classic Christmas movies.  

Over the years I've watched the George C. Scott version several times.  Something always unsettled me about the story, and I just now can put my finger on it: the entire premise that Scrooge and his dead partner, Marley, did not provide good for their fellow creatures is just wrong.   The underlying theme is economically unsound and historically inaccurate.  It all adds to our general misunderstanding of free market capitalism. 

That theme?  Whenever we focus too much on our own material welfare we cause harm to or deprive others of good.

To this we can assuredly reply, Bah-Humbug!

The scene with the apparition of Marley, Scrooge's erstwhile business partner, sets this errant premise upon which the entire transformation of Scrooge takes place. 

Here is a clip of the scene:


Leaving aside the complete lack of Biblical evidence of Marley's quasi-purgatorial punishment (introduced, in all places, in a literary work constructed around the celebratory season of Christ's incarnation), think about what Marley conveys to Scrooge about his time on earth as a successful businessman of market enterprise:
"Business?!  Mankind was my business!  The common welfare was my business...The dealings of my trade were but a drop of water in the comprehensive ocean of my business!"
We are being told Marley's life of pursuing a profit and focusing his energies primarily therein neglected mankind. 


Bah-Humbug!  As Walter E. Williams says, if you want to help your fellow man go earn a profit providing them what they want and need.

Dickens' A Christmas Carol has been viewed as a rebuke of the industrial capitalism of the 1800s.  Marley's ill-founded remarks could easily be the reason for this view. 

Given that Marley and Scrooge's efforts took place during a relatively free period in English history wherein countless hordes of people were further removed from the hand-to-mouth existence that had plagued society for, well, ever, their business activities contributed a great deal of good to society, even if that good was not directly observed.  Dickens' novel takes place in Victorian England, a time when a burgeoning population had its material welfare provided by the workings of industrial capitalism.  That "comprehensive ocean" of business involved many thousands of unseen affects; a market, after all, involves more people, decisions, actions, and ripple effects than immediately meets the eye. 

Marley seems to believe his efforts and time were compartmentalized and not part of a larger whole out of which many thousands of positive economic activities took place.  In short, he focused on himself and thereby did not help mankind.  Since no one earns a profit in a bubble,  Marley and Scrooge got "rich" by devoting their time to facilitating one part of the larger mechanism of the market of satisfying the wants and needs of the consumers. 

And who were the consumers in Victorian England after which businessmen scurried to satisfy in their respective pursuit of individual wealth?  The masses of people who in the pre-capitalist times were doomed to life sentences of serfdom and beggary.  And the first thing the masses wanted were to no longer be masses of poor, wretched serfs.  (Indoor plumbing, leisure time, electricity, and cheese-filled hot dogs all came along later.)

In 2010 we consumers want new apps for our Apple I Phones; back then they wanted apples to keep from starving.  What's the difference between then and now?  Capitalism has continued to allow some of us to provide the rest of us what we want, resulting in unbelievable standards of living, in spite of all the government intervention.   

Mises reminds us:
"The greatness of the period between the Napoleonic Wars and the first World War consisted precisely in the fact that the social ideal after the realization of which the most eminent men were striving was free trade in a peaceful world of free nations.  It was an age of unprecedented improvement in the standard of living for a rapidly increasing population.  It was the age of [classical] liberalism." 
The movie ends with Scrooge merrily contributing to philanthropic ventures.  The narrator comments that Scrooge went on to be society's foremost benefactor and so on and so on.  That's all good but what is left open-ended is whether or not he resumed his business enterprises and continued to provide for a common good not immediately seen and tangible.  If he quit cold turkey under the assumption he could do more good by dissipating his accumulated wealth for philanthropic good before his eyes, much unseen good would have been withheld from society at large.

And if that were the case, Scrooge well deserves our hearty Bah-Humbug!

Tuesday, December 14, 2010

Video: Whose Property Is It, Anway?

"Side by side with the word 'property' in the program of [classical] liberalism one may quite appropriately place the words 'freedom' and 'peace.' "~~~Ludwig von Mises  Liberalism: The Classical Tradition

Have you ever wondered if your property is, well, actually your property?  Silly question, right?  By definition, if something belongs to you that something is your "property"; the word, "property" denotes ownership by someone somewhere.  So the phrase "your property" is somewhat redundant, a bit like "wet fish."

All fish are wet so why, then, are you being asked to doubt ownership of your property?  

Because pundits and politicians are talking about income and estate taxes!  I've found people generally do not think of their income and their estates---the products and fruits of their labor, time, and talents---as their property.  Your income is your property; it is the monetary compensation of your time and efforts.

Our vote-fishing representatives in Congress never refer to your income as property.  If they were to refer to property as "property," they would have a terribly difficult time explaining why you are being permitted to keep x% of your property versus y% for blah, blah, blah reasons.  Chances are their reasons would come across as thinly-veiled demagoguery. 

More difficult still would be the job of justifying the noxious and logically flawed premise that underpins the income and estate tax. That premise?  If government has a moral right to 1% of your property it has a moral right to 100% of our property.  All the public wrangling is simply about numbers and details.

Consider all the political claptrap that orbs around the income tax debates as you view this commentary by Brit Hume.  And this holiday season, please don't thank your government for the gift of your own property, whatever the tax schedule for 2011.

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