If Men Were Angels

Libertarians, God bless them, are always looking for simple solutions to complex problems. Here, for example, is David Bernstein, writing at The Volokh Conspiracy:

I doubt [that] any two libertarians agree on the exact boundaries of libertarianism, but how’s this for a working definition: “A libertarian is someone who generally opposes government interference with and regulation of civil society, even when the result of such government action would be to clamp down on things the individual in question personally dislikes, finds offensive, or morally disapproves of.”

Thus, for example, a libertarian who hates smoking opposes smoking bans in private restaurants, a libertarian who thinks homosexual sodomy is immoral nevertheless opposes sodomy laws, a libertarian who finds certain forms of “hate speech” offensive still opposes hate speech laws, a libertarian who believes in eating natural foods opposes bans or special taxes on processed foods, and a libertarian who thinks that all employers should pay a living wage nevertheless opposes living wage legislation. It doesn’t matter whether the libertarian holds these positions because he believes in natural rights, for utilitarian reasons, or because he thinks God wants us to live in a libertarian society. [“How’s This for a Working Definition of ‘Libertarian’?,” February 26,2015]

This reminds me of the title of a poem by A.E. Housman: “Terence, This Is Stupid Stuff.” Why is it stupid stuff? Because it omits an essential ingredient of liberty, which is line-drawing.

By Bernstein’s logic, one must conclude that anything goes; for example, a libertarian who hates murder, rape, theft, and fraud must oppose laws against such things. Bernstein, like many a libertarian, propounds a moral code that is devoid of morality.

Bernstein might argue that morality is supplied by prevailing social norms. Which, until the bandwagon effect produced by the Supreme Court’s decision in Obergefell v. Hodges, would have meant the non-recognition of homosexual “marriage”. But libertarians were prominent in the chorus of voices clamoring for the Supreme Court to make a national law recognizing homosexual “marriage”, even though the marriage laws still on the books in most parts of the nation — laws that defined marriage as the union of male and female — arose from prevailing social norms. Libertarians have a slippery way of proclaiming laissez faire while striving to enforce their own moral views through law.

Libertarianism is an ideology rooted in John Stuart Mill’s empty harm principle (a.k.a the non-aggression principle), about which I’ve written many times (e.g., here). Regarding ideology, I turn to Jean-François Revel:

As an a priori construction, formulated without regard to facts or ethics, ideology is distinct from science and philosophy on the one hand, and from religion and ethics on the other. Ideology is not science — which it pretends to be. Science accepts the results of the experiments it devises, whereas ideology systematically rejects empirical evidence. It is not moral philosophy — which it claims to have a monopoly on, while striving furiously to destroy the source and necessary conditions of morality: the free will of the individual. Ideology is not religion — to which it is often, and mistakenly, compared: for religion draws its meaning from faith in a transcendent reality, while ideology aims to perfect the world here below.

Ideology — that malignant invention of the human spirit’s dark side, an invention which has cost us dearly — has the singular property of causing zealots to project the structural features of their own mentality onto others. Ideologues cannot imagine that an objection to their abstract systems could come from any source other than a competing system.

All ideologies are aberrations. A sound and rational ideology cannot exist. Falsehood is intrinsic to ideology by virtue of cause, motivation and objective, which is to bring into being a fictional version of the human self — the “self,” at least, that has resolved no longer to accept reality as a source of information or a guide to action. [Last Exit to Utopia, pp. 52-53]

A key aspect of ideology — libertarian ideology included — is its studied dismissal of human nature. Arnold Kling notes, for example,

that humans in large societies have two natural desires that frustrate libertarians.

1. A desire for religion, defined as a set of rituals, norms, and affirmations that are shared by a group and which the group believes it is wrong not to share….

2. A desire for war. I think that it is in human nature to fantasize about battles against tribal enemies….

If these desires were to disappear, I believe that humans could live without a state. However, given these desires, the best approach for a peaceful large society is that which was undertaken in the U.S. when it was founded: freedom of religion guaranteed by the government, and a political system designed for peaceful succession and limitations on the power of any one political office….

I think that it is fine for libertarians to warn of the dangers of religion and to oppose war…. On other other hand, when libertarians assume away the desire for religion and war, their thinking becomes at best irrelevant and at worst nihilistic. [“Libertarians vs. Human Nature,” askblog, February 17, 2017]

In Madison’s words:

If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary. [The Federalist No. 51, February 6, 1788]


Related posts:
On Liberty
Line-Drawing and Liberty
Pseudo-Libertarian Sophistry vs. True Libertarianism
Bounded Liberty: A Thought Experiment
More Pseudo-Libertarianism
True Libertarianism, One More Time
Human Nature, Liberty, and Rationalism
The Myth That Same-Sex “Marriage” Causes No Harm
Defending Liberty against (Pseudo) Libertarians
The Pseudo-Libertarian Temperament
Parsing Political Philosophy (II)
Libertarianism and the State
My View of Libertarianism
More About Social Norms and Liberty
The Authoritarianism of Modern Liberalism, and the Conservative Antidote
The Harm Principle Revisited: Mill Conflates Society and State
Liberty and Social Norms Re-examined

Governmental Perversity

People are sometimes by harmed natural events such as earthquakes, hurricanes, tornadoes, and floods. Though such events may be exogenous to human activity,they are somewhat predictable, in that people can know (or learn) where and (sometimes) approximately when such events are likely to occur. That knowledge, in turn, allows people to cope with natural events in three ways:

  • Move away from or avoid areas prone to natural disasters, at least during times of heightened risk.
  • Taking physical measures to reduce the damage caused by natural events.
  • Buying insurance to help defray the costs resulting a natural disaster.

Moral hazard enters the picture when government intervenes to encourage people to live in high-risk areas by insuring risks that private insurers will not insure (e.g., floods), by underwriting certain physical measures (e.g., the installation of bulkheads and pumping systems), and by reimbursing losses sustained by persons who insist on living in high-risk areas — as if to do so were a God-given right. Through such actions, government encourages unremunerative risk-taking, and transfers most of the resulting losses to those citizens who choose not to put themselves in harm’s way.

Now, egregious as it is, the moral hazard created by government with respect to natural disasters is nothing compared with the moral hazard created by government with respect to financial disasters. The recent financial crisis-cum-deep recession is but the latest in a long string of government-caused and government-aided economic messes.

In the recent case, the Federal Reserve and pseudo-private arms of the federal government (Freddie Mac and Fannie Mae) loosened the money supply and encouraged lenders to grant loans to marginal borrowers. Financial institutions were further encouraged to take undue risks by having seen, in times past, that there were bailouts at the end of the tunnel. Not all troubled firms were bailed out during the recent financial crisis, but enough of them were to ensure that the hope of being bailed out still shines brightly. Nor were bailouts limited to financial institutions; troubled companies like General Motors, which should have been put out of their misery, were given new life, at a high cost to taxpayers.

And so, thanks to government, people and businesses continue to take undue risks at the expense of their fellow citizens. Meanwhile — through taxes and regulations — government continues to discourage privately financed risk-taking (entrepreneurship) that is essential to economic growth.

Perversity, thy name is government.

*     *     *

Related posts:
The Stagnation Thesis
Taxing the Rich
More about Taxing the Rich
Money, Credit, and Economic Fluctuations
A Keynesian Fantasy Land
The Keynesian Fallacy and Regime Uncertainty
Regime Uncertainty and the Great Recession
Regulation as Wishful Thinking
In Defense of the 1%
Lay My (Regulatory) Burden Down
Economic Growth Since World War II
The Capitalist Paradox Meets the Interest-Group Paradox
Government in Macroeconomic Perspective
The 80-20 Rule, Illustrated
Economics: A Survey (also here)
Why Are Interest Rates So Low?
Vulgar Keynesianism and Capitalism
Estimating the Rahn Curve: Or, How Government Spending Inhibits Economic Growth
America’s Financial Crisis Is Now
Progressive Taxation Is Alive and Well in the U.S. of A.
Some Inconvenient Facts about Income Inequality
Mass (Economic) Hysteria: Income Inequality and Related Themes
The Criminality and Psychopathy of Statism

Government vs. Community

Tibor Machan reminds us that, contra Paul Krugman, government is not community:

Finally Paul Krugman, Princeton University Nobel Laureate in economic science and columnist for The New York Times, has come clean about his “moral” position (TNYT, January 14, 2011). He has admitted that he doesn’t believe that when you earn something, you own it….

If my life doesn’t belong to me–if the norm the Declaration of Independence identifies as universal, namely, that every human being has a right to his or her life, is false–then what is true? Does my life belong to the government? If we recall that government is a group of individuals to whom a certain social role has been delegated–namely, the role of securing the rights of the citizenry–the claim that government owns our lives and resources means nothing else but that these individuals in government own our lives and resources.

But that is very odd–why would those people be in the privileged position of owning us and what to all appearances belongs to us while we, also human beings and with equal rights, do not own our lives and resources? This makes no sense….

The idea that we belong to government is obscene and harks back to an age when Caesars, monarchs, tsars, Pharaohs and such were believed to have been given their realm by God and everything within that realm, including all the human beings, therefore belonged to them. Later these slaves and serfs began to be called subjects, implying that they were all subject to the will of the government. This is were serfdom and even taxation have their origin….

An essential aspect of any bona fide moral position is that it must be practiced voluntarily, not because someone–e. g., government–holds a gun to one’s head and coerces one to do what is right. That doesn’t count as doing the right thing, so any such policy is literally demoralizing. It robs people of the opportunity to be morally good (or bad, of course).

A society that’s fit for human habitation must not have policies that prevent citizens from exercising moral judgment. So, OK, assume for a moment that we should devote ourselves entirely to serving other people, to serving the public good. If, however, all of this is accomplished through governmental coercion like taxation, regulation, regimentation, and so forth, there can’t be anything moral about it. So Dr. Krugman’s so called moral stance isn’t one at all. It leaves no room for morality because it makes all purportedly moral conduct involuntary, imposed by rulers and not a matter of one’s own free will.

Sharing at the point of a gun is not sharing, it is theft. When government forces “sharing,” it removes opportunities for true acts of kindness and charity. It is such acts that help to foster a sense of community. And a sense of community is essential to civility.

Government interventions in economic affairs are therefore destructive of the social bonds that inhibit anti-social and criminal conduct. It follows that government interventions in economic affairs lead to increasingly expensive and oppressive efforts by government to regulate social conduct.

Related posts:
Enough of Krugman
Rights, Liberty, the Golden Rule, and the Legitimate State
An Encounter with a Marxist
The Golden Rule and the State

An Encounter with a Marxist

A post by David Henderson at EconLog reminds me of an exchange I had with a former neighbor, who is among a circle of acquaintances whom my wife and I occasionally join for dinner. In the post, Henderson quotes Robert Heilbroner:

Indeed, the creation of socialism as a new mode of production can properly be compared to the moral equivalent of war–war against the old order, in this case–and will need to amass and apply the power commensurate with the requirements of a massive war. This need not entail the exercise of command in an arbitrary or dictatorial fashion, but certainly it requires the curtailment of the central economic freedom of bourgeois society, namely the right of individuals to own, and therefore to withhold if they wish, the means of production, including their own labor. [Italics added]

The former neighbor, who acquired a Ph.D. in economics in the early 1960s, is a Marxist who views the world through the lens of class conflict. His world is a world in which the “bad guys” — rich capitalists and their cronies in government — victimize the rest of us, often with the aid of duped victims.

Because, in the former neighbor’s view, everything is rigged by the “bad guys,” he is unable to acknowledge  that competition and mutually beneficial voluntary exchange, fueled by the continuous emergence of innovations and entrepreneurs,  prevents the very kind of rigged game that he rightly abhors. It is not free markets but state action — taxation and regulation — that stands in the way of economic progress and widespread prosperity

The former neighbor see the solution to the non-problem through his Marxist lens. That solution is to use the power of the state to do the right thing — as long as he is judge of what is right, of course.

I understand that point of view, even though I abhor and disrespect it. But my tolerance for Marxist rhetoric drops to zero when I am told — as the former neighbor told me — that state action to redistribute income (through Social Security, for example) is a matter of “sharing” within “the community.”

I pointed out, rather heatedly, that when government — which enjoys a monopoly of force — effectively puts a gun to my head and says “share,” that isn’t sharing. Nor does government represent a “community,” for a community — to be worthy of the name — must be a voluntary association, not a group of citizens bound by the power of government to compel “sharing.”

The discussion ended there. Not because I instantly converted a long-standing Marxist to libertarianism, but because he saw the fury in my eyes and the set of my jaw.

The quotation from Heilbroner reminded me of the contretemps with my former neighbor because of their shared attitude: We know what’s good for you, and we’re willing to use the power of the state to make it so. Such individuals can claim, with a straight face, to be on the side of “the people” only because their arrogance allows them to equate force with benevolence.