Political Cartoons

Is Libertarianism compatible with democracy?

An eye-opening article from Ann: "Why Libertarians Appologize for Autocracy."

it is curious that American conservatives and libertarians have not seen fit to discuss the view of fascism held by one of the heroes of modern American libertarianism, the Austrian economist Ludwig von Mises. In his book "Liberalism," published in 1927 after Mussolini had seized power in Italy, Mises wrote:

It cannot be denied that Fascism and similar movements aimed at the establishment of dictatorships are full of the best intentions and that their intervention has for the moment saved European civilization. The merit that Fascism has thereby won for itself will live on eternally in history.

Friedrich von Hayek, who was, along with von Mises, one of the patron saints of modern libertarianism, was as infatuated with the Chilean dictator Gen. Augusto Pinochet as von Mises was with Mussolini, according to Greg Grandin:

Friedrich von Hayek, the Austrian émigré and University of Chicago professor whose 1944 Road to Serfdom dared to suggest that state planning would produce not "freedom and prosperity" but "bondage and misery," visited Pinochet’s Chile a number of times. He was so impressed that he held a meeting of his famed Société Mont Pélérin there. He even recommended Chile to Thatcher as a model to complete her free-market revolution. The Prime Minister, at the nadir of Chile’s 1982 financial collapse, agreed that Chile represented a "remarkable success" but believed that Britain’s "democratic institutions and the need for a high degree of consent" make "some of the measures" taken by Pinochet "quite unacceptable."

Like Friedman, Hayek glimpsed in Pinochet the avatar of true freedom, who would rule as a dictator only for a "transitional period," only as long as needed to reverse decades of state regulation. "My personal preference," he told a Chilean interviewer, "leans toward a liberal [i.e. libertarian] dictatorship rather than toward a democratic government devoid of liberalism." In a letter to the London Times he defended the junta, reporting that he had "not been able to find a single person even in much maligned Chile who did not agree that personal freedom was much greater under Pinochet than it had been under Allende." Of course, the thousands executed and tens of thousands tortured by Pinochet’s regime weren’t talking.

The Pinochet dictatorship was admired by the right in the U.S. and Britain for turning Chile’s economic policy over to disciples of Milton Friedman and the University of Chicago, who inflicted disastrous social experiments like the privatization of social security on Chile’s repressed population. Following the libertarian reforms, the Chilean economy collapsed in 1982, forcing the nationalization of the banking system and government intervention in industry. According to Grandin:

While he was in Chile Friedman gave a speech titled "The Fragility of Freedom" where he described the "role in the destruction of a free society that was played by the emergence of the welfare state." Chile’s present difficulties, he argued, "were due almost entirely to the forty-year trend toward collectivism, socialism and the welfare state . . . a course that would lead to coercion rather than freedom."

Friedman politely neglected to mention the lack of political and civil liberty under the Pinochet regime. Many of its victims were drugged and taken in military airplanes to be dropped over the South Atlantic, with their bellies slit open while they were still alive so that their bodies would not float and be discovered.

One of the members of Pinochet’s cabinet, Jose Piñera, has enjoyed a second career at the leading American libertarian think tank, the Cato Institute, and is credited with having influenced George W. Bush’s failed attempt to partly privatize Social Security in America. The Cato website says:

Distinguished senior fellow José Piñera is co-chairman of Cato's Project on Social Security Choice and Founder and President of the International Center for Pension Reform. Formerly Chile's Secretary of Labor and Social Security, he was the architect of the country's successful reform of its pension system. As Secretary of Labor, Piñera also designed the labor laws that introduced flexibility to the Chilean labor market and, as Secretary of Mining, he was responsible for the constitutional law that established private property rights in Chilean mines.

Piñera, the brother of Chile’s billionaire president Sebastian Piñera, has a personal website in which he claims that he played a major role in the transition to democracy in Chile. Piñera’s portrayal of himself as a champion of democracy is somewhat undercut on the same Web page by several defenses of Pinochet's regime that he includes, including this one by a writer in an Australian magazine:

Indeed, in all 17 years of military rule, the total number of dead and missing -- according to the official Retting Commission -- was 2,279. Were there abuses? Were there real victims? Without the slightest doubt. A war on terror tends to be a dirty war.

Still, in the case of Chile, and contrary to news reports, the number of actual victims was small.

The Cato Institute’s problem with democracy is not limited to its appointment of a former functionary of a mass murderer to direct its retirement policy program. Cato Unbound recently hosted a debate over whether libertarianism is compatible with democracy. Milton Friedman’s grandson Patri concluded that it is not:

Democracy Is Not The Answer

Democracy is the current industry standard political system, but unfortunately it is ill-suited for a libertarian state. It has substantial systemic flaws, which are well-covered elsewhere,[2] and it poses major problems specifically for libertarians:

1) Most people are not by nature libertarians. David Nolan reports that surveys show at most 16% of people have libertarian beliefs. Nolan, the man who founded the Libertarian Party back in 1971, now calls for libertarians to give up on the strategy of electing candidates! …

2) Democracy is rigged against libertarians. Candidates bid for electoral victory partly by selling future political favors to raise funds and votes for their campaigns. Libertarians (and other honest candidates) who will not abuse their office can't sell favors, thus have fewer resources to campaign with, and so have a huge intrinsic disadvantage in an election.

In his recommendations for further reading, Friedman included the Austrian economist Hans-Hermann Hoppe’s book "Democracy: The God That Failed," which appeared in 2001, following the fall of the Berlin Wall, during the greatest wave of global democratization in history. In his Cato Unbound manifesto, Friedman called on his fellow libertarians to give up on the whole idea of the democratic nation-state and join his movement in favor of "seasteading," or the creation of new, microscopic sovereign states on repurposed oil derricks, where people who think that "Atlas Shrugged" is really cool can be in the majority for a change....

Seasteading: Government as Industry, Citizens as Customers.

Here's how Wikipedia describes "seasteading:"

The Seasteading Institute, founded by Wayne Gramlich and Patri Friedman on April 15, 2008, is an organization formed to facilitate the establishment of autonomous, mobile communities on seaborne platforms operating in international waters. Gramlich’s 1998 article "SeaSteading – Homesteading on the High Seas" outlined the notion of affordable steading, and attracted the attention of Friedman with his proposal for a small-scale project. The two began working together and posted their first collaborative book online in 2001, which explored aspects of seasteading from waste disposal to flags of convenience.

The project picked up mainstream exposure in 2008 after having been brought to the attention of PayPal founder Peter Thiel, who invested $500,000 in the institute and has since spoken out on behalf of its viability, most recently in his essay "The Education of a Libertarian," published online by Cato Unbound. TSI has received widespread and diverse media attention, from sources such as CNN, Wired Magazine, and Prospect Magazine. American journalist and commentator John Stossel wrote an article about seasteading and the Seasteading Institute in February of 2011 and invited Patri Friedman onto his show on the Fox Business Network.

"Let's forget about left and right...and instead, put our entrepreneur hats on. Let's think of government as an industry, where countries are firms and citizens are customers. Now this is not just any industry, this is the world's BIGGEST industry.....a start up country could be the world's first trillion-dollar business....What we need is a new frontier, an open space for political experiments, and the next frontier is the ocean."
-- Patri Friedman, grandson of Milton Friedman,  The Seasteading Institute

I think this is a splendid idea for all those libertarians who want freedom from territorial government. I hope the Cato Institute finds a nice oil rig out in the middle of the brine and settles in. Can't you just see it now?

"I pledge allegiance to the flag, and to the United Corporation of the Pacific for which it stands, one seastead under Rand, voluntarily joined, with liberty and profit for each shareholder."

Crater Lake, August, 2011

Steve and I, August 2011

Happy Birthday, Mother Teresa

Today, in 1910, Agnes Gonxha Bojaxhiu was born. We know her better as Mother Teresa. Here is one of my favorite quotes: ""It is a great poverty to decide that a child must die so that you might live as you wish."

GKC wrote, "It is the paradox of history that each generation is converted by the saint who contradicts it most." Mother Teresa would certainly be a contender for such a saint. Her compassion and sacrifice stand as a testimony to Christ against the world's self-absorption and greed.

English Music: Vaughan Williams: Lento, Symphony #2

In Albion: The Origins of the English Imagination, Peter Ackroyd writes, "If that Englishness in music can be encapsulated in words at all, those words would probably be: ostensibly familiar and commonplace, yet deep and mystical as well as lyrical, melodic, melancholic, and nostalgic yet timeless."


"The embrace of present and past time, in which English antiquarianism becomes a form of alchemy, engenders a strange timelessness. It is as if the little bird which flew through the Anglo-Saxon banqueting hall, in Bede's Historia Ecclesiastica Gentis Anglorum, gained the outer air and became the lark ascending in Vaughan Williams's orchestral setting. The unbroken chain is that of English music itself."

Doonesbury and Jon Stewart Nail it

Today's Doonesbury  makes a perfect accompaniment to Jon Stewart's broadcast:

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
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QUOTES: Bauman on Consumerism

But I am afraid that just as Eve was deceived by the serpent’s cunning, your minds may somehow be led astray from your sincere and pure devotion to Christ.  For if someone comes to you and preaches a Jesus other than the Jesus we preached, or if you receive a different spirit from the Spirit you received, or a different gospel from the one you accepted, you put up with it easily enough.  --II Cor. 11:3-5

I am astonished that you are so quickly deserting the one who called you to live in the grace of Christ and are turning to a different gospel— which is really no gospel at all. Evidently some people are throwing you into confusion and are trying to pervert the gospel of Christ. --Gal. 1:6-7

from The London Riots – On Consumerism coming Home to Roost
09/08/2011 by Zygmunt Bauman

"We are all consumers now, consumers first and foremost, consumers by right and by duty. The day after the 11/9 outrage George W. Bush, when calling Americans to get over the trauma and go back to normal, found no better words than “go back shopping”. It is the level of our shopping activity and the ease with which we dispose of one object of consumption in order to replace it with a “new and improved” one which serves us as the prime measure of our social standing and the score in the life-success competition. To all problems we encounter on the road away from trouble and towards satisfaction we seek solutions in shops.

From cradle to coffin we are trained and drilled to treat shops as pharmacies filled with drugs to cure or at least mitigate all illnesses and afflictions of our lives and lives in common. Shops and shopping acquire thereby a fully and truly eschatological dimension. Supermarkets, as George Ritzer famously put it, are our temples; and so, I may add, the shopping lists are our breviaries, while strolls along the shopping malls become our pilgrimages. Buying on impulse and getting rid of possessions no longer sufficiently attractive in order to put more attractive ones in their place are our most enthusing emotions. The fullness of consumer enjoyment means fullness of life. I shop, therefore I am. To shop or not to shop, this is the question.

For defective consumers, those contemporary have-nots, non-shopping is the jarring and festering stigma of a life un-fulfilled – and of own nonentity and good-for-nothingness. Not just the absence of pleasure: absence of human dignity. Of life meaning. Ultimately, of humanity and any other ground for self-respect and respect of the others around."

QUOTES: Freeman Dyson's response to Steven Weinberg

"With or without religion, good people can behave well and bad people can do evil; but for good people to do evil—that takes religion." --Steven Weinberg

"Weinberg's statement is true as far as it goes, but it is not the whole truth. To make it the whole truth, we must add an additional clause: 'And for bad people to do good things—that [also] takes religion.' The main point of Christianity is that it is a religion for sinners. Jesus made that very clear. When the Pharisees asked his disciples, 'Why eateth your Master with publicans and sinners?' he said, 'I come to call not the righteous but sinners to repentance.' Only a small fraction of sinners repent and do good things but only a small fraction of good people are led by their religion to do bad things." --Freeman Dyson

Visually Understanding the Debt

The New York Times has an excellent graphic to help tell the story of how we have come to find ourselves in such debt:

And here is a helpful Q&A about the Clinton years:

Q: During the Clinton administration was the federal budget balanced? Was the federal deficit erased?

A: Yes to both questions, whether you count Social Security or not.


FULL ANSWER

This chart, based on historical figures from the nonpartisan Congressional Budget Office, shows the total deficit or surplus for each fiscal year from 1990 through 2006. Keep in mind that fiscal years begin Oct. 1, so the first year that can be counted as a Clinton year is fiscal 1994. The appropriations bills for fiscal years 1990 through 1993 were signed by Bill Clinton’s predecessor, George H.W. Bush. Fiscal 2002 is the first for which President George W. Bush signed the appropriations bills, and the first to show the effect of his tax cuts.

The Clinton years showed the effects of a large tax increase that Clinton pushed through in his first year, and that Republicans incorrectly claim is the "largest tax increase in history." It fell almost exclusively on upper-income taxpayers. Clinton’s fiscal 1994 budget also contained some spending restraints. An equally if not more powerful influence was the booming economy and huge gains in the stock markets, the so-called dot-com bubble, which brought in hundreds of millions in unanticipated tax revenue from taxes on capital gains and rising salaries.

Clinton’s large budget surpluses also owe much to the Social Security tax on payrolls. Social Security taxes now bring in more than the cost of current benefits, and the "Social Security surplus" makes the total deficit or surplus figures look better than they would if Social Security wasn’t counted. But even if we remove Social Security from the equation, there was a surplus of $1.9 billion in fiscal 1999 and $86.4 billion in fiscal 2000. So any way you count it, the federal budget was balanced and the deficit was erased, if only for a while.

Update, Feb. 11: Some readers wrote to us saying we should have made clear the difference between the federal deficit and the federal debt. A deficit occurs when the government takes in less money than it spends in a given year. The debt is the total amount the government owes at any given time. So the debt goes up in any given year by the amount of the deficit, or it decreases by the amount of any surplus. The debt the government owes to the public decreased for a while under Clinton, but the debt was by no means erased.

Other readers have noted a USA Today story stating that, under an alternative type of accounting, the final four years of the Clinton administration taken together would have shown a deficit. This is based on an annual document called the "Financial Report of the U.S. Government," which reports what the governments books would look like if kept on an accrual basis like those of most corporations, rather than the cash basis that the government has always used. The principal difference is that under accrual accounting the government would book immediately the costs of promises made to pay future benefits to government workers and Social Security and Medicare beneficiaries. But even under accrual accounting, the annual reports showed surpluses of $69.2 billion in fiscal 1998, $76.9 billion in fiscal 1999, and $46 billion for fiscal year 2000. So even if the government had been using that form of accounting the deficit would have been erased for those three years.

- Brooks Jackson

Sources
Congressional Budget Office, "Historical Budget Data," undated, accessed 6 Sep 2010.

Austerity and the American Dream

My friend C. sent me this article, written by an Australian:

American dream comes with a heavy cost

Ros Coward

The US debt debate reveals a nation living beyond its means.

ONE word is missing in the American debate over the debt crisis: austerity. It's a revealing absence. In spite of the vast deficit, and despite the US being the home of individualism, no way is being offered for individuals to make a difference by changing their lifestyles.

People in Britain have become familiar with talk of the ''new age of austerity''. Politicians of both left and right use the expression to frame the narrative about the cuts Britain is now facing. While both sides ''warn'' about this coming era, austerity is not negative in the British psyche. Associations with wartime Britain soften it. Austerity is associated with personal changes that benefited society and made sense to people who learned to tackle wastefulness, to ''make do and mend''.

Long before the current cuts, austerity was making a comeback in Britain, associated with the environmental issues of recycling, cutting consumption and reducing our carbon footprint. Indeed, the New Economics Foundation recently launched the New Home Front, arguing that wartime lifestyles are positive models for reducing environmental impact.

 Not so in the US. In the five months I spent there earlier this year, I never heard the word austerity in political discussion. There was nothing about individuals living beyond their means. Yet the US deficit is founded on overconsumption, made possible by too much consumer credit and, less well recognised, too much environmental credit.

In the current war of words in Congress, there is no reference to the immoral lending that encouraged people who could not afford it to invest in the American dream. Yet that is what led to the property crash and the financial crisis. From individuals I heard nothing about the need for prosperous people to change their ways. There are, of course, many worthy ''green shoots'', such as the ''locavore'' movement or the ''greening the campus'' initiative at the university I was visiting, where a newly appointed sustainability officer tries to cut energy use. But people like him have their work cut out.

The whole of the east coast and the rust belt are vast, shocking landscapes to which many Americans seem oblivious. This is a society that has lived not just beyond its economic means but beyond its environmental ones, too, as the hundreds of miles of abandoned buildings, abandoned cars, and endless highways bear witness to.

Yet the American dream survives. You're either in it, or out of it. Being out means destitution. In Britain I know many people who reject consumerism, getting involved in poorly paid environmental or political work. We regard them as rather honourable. In the US, if you don't have money you don't count.

None of this is supposed to indicate Britain has got it right. Far from it. The relaxation of planning controls with the potential to trash the environment is a case in point. But at least words such as thrift and sustainability don't carry such negative connotations. They suggest a place to work from. In the US, the ideological mindset makes these negative terms, which in turn makes the future there look bleak. Their problem isn't just fixing government spending, but ultimately counting the real costs of the American way of life.

Here's my response:

Austerity is not an American virtue. Making a profit and consuming are. "The concept that making money (employment) and spending money (consumerism) is the primary goal of individuals within a market economy, and the assumption that individuals must work for an employer to "make a living" and that such activity is the most meaningful and desirable of human activities." wikipedia

So we have tended to equate consumption with success and happiness and being good Americans. We define ourselves in terms of our quarterly earnings reports and our "stuff." Buying and selling on credit just allows us to have more stuff, feel better about ourselves, and keep the economy rolling. Austerity is taken to be un-American, because it is a refusal to participate in this economic and social engine.

The housing crisis stands as a challenge to all this, because it means the conveyer belt has stopped. See this. Austerity is being imposed upon us, whether we want it or not. The question is, in the process, will we come to realize that the culture of capitalism is a false kingdom? If sin is missing the mark, then the gyrations between the extremes of consumerism and austerity are evidence that we are not where Christ intends us to be.