Romanticizing the State

Timothy Sandefur, an old sparring partner of mine, offers qualified praise for the state:

Cato Unbound has an excellent essay by Mark S. Weiner arguing that whatever its shortcomings, the state as a political entity is better than its likely alternative: clan rule. I remember having similar thoughts when Christina and I got married. As atheists, we occasionally face various forms of discrimination (fortunately only rarely, and typically minor) but we were still able to get married because we could obtain a civil marriage through the state. Lucky us. In centuries past, that alternative might not have been open to us. In this way, the state provided us with a service that in other times and places has not been available: secular marriage.

It’s a mystery to me why Sandefur and his spouse, both of them declared atheists and libertarians, want their marriage to be authorized by the state. Surely, they know that they could have entered into a cohabitation contract without the approval of the state. That contract could have included many provisions, including an agreement to submit their differences to binding, private arbitration.

Did they seek state approval to indicate that their marriage is just as legitimate as marriages sanctioned by churches? This strikes me as out of character for atheists and libertarians. If one doesn’t believe in God and is generally opposed to the workings of the state (beyond some minimal level of defense, perhaps), why would one unnecessarily emulate believers and acknowledge the state’s legitimacy in a sphere where its involvement is unnecessary?

All of that aside, I am bemused by Sandefur’s laudatory reference to Weiner’s essay, which begins with this:

Many conservatives argue as a basic tenet of their political thought that individual liberty thrives when the state is limited and weak. “As government expands, liberty contracts,” explained President Ronald Reagan in his farewell address, calling the principle “as neat and predictable as a law of physics.” This view is especially pronounced among libertarians, and for libertarians of an anarchist perspective, the opposition between the individual and the state is fundamental and irreconcilable.

I believe this view is significantly mistaken. From the perspective of comparative law and legal history, it represents a dangerous illusion characteristic of citizens who already enjoy the benefits of modern liberal government. Although the state can be an instrument of tyranny, robust government capable of vindicating the public interest is vital for individual autonomy.

As I argue in my recent book The Rule of the Clan, among its important benefits, a strong central state provides the most effective means to ensure that persons are treated as individuals, not merely as cousins. In its absence, people are forced to look to other institutions to address their social and legal problems, and the most enduring such organization in human history is the extended family, the clan—for which group loyalty trumps individual rights.

Because the rule of the clan provides many vital goods that liberal societies deliver less effectively, and because it is based on the natural fact of genetic affinity, it represents an ever-present gravitational force in human affairs.

One of the objects of modern liberal government is to resist this gravitational pull.

The fatal flaw in Weiner’s argument is his passing admission that “the state can be an instrument of tyranny.” The state not only can be an instrument of tyranny; it is an instrument of tyranny. When it comes to tyranny, the clan has nothing on the state.

Weiner writes as if the state were a kind of mechanical contrivance, free of human impulses and capable of a dispassionate defense of individualism. Would that it were so, but it is not so. The state — as a human institution — is powered by the operation of clannish institutions. As Daniel McCarthy writes in response to Weiner,

It’s not only the case that a strong central government—today’s “state” or the ancient empire—can safeguard the individual from being subsumed into a constraining group identity, but it’s also the case that the active component of liberty, the exercise of self-government, has tended to be a matter of group expression.

In republican Rome, the good (self-government) was inextricably mixed with the bad (rule by clannish elites). But this is the story of self-government everywhere. The House of Commons in England, for example, did not begin as an institution to represent all commoners; it began as a forum to represent the wealthiest towns and localities….

Reform of the boroughs, broadening of the franchise, and the introduction of the secret ballot were great struggles; at times they seemed almost revolutionary to Britain’s landed class. These struggles were fought and won not by individuals but by groups that were more than a little clannish and coercive. Clannishness was characteristic of the Catholic and Dissenting Protestant groups that also fought at this time—sometimes literally in streets—for their civil liberties. And in America, too, clannish groups, from racial minorities to religious and sexual ones, have had to battle for freedom. This was not at all an individualistic activity, either in its origins or its methods. The liberties we as individuals cherish today were largely won by clannish groups.

Such struggles, even when they are outlawed and cannot be conducted at the ballot box, are a kind of participation in power, as one institution of power—not the state, but the clan—compels another to recognize its demands and accede to at least some of them for the sake of peace. Even in ordinary politics at the level of Republicans and Democrats, clannishness rather than individualism is the rule, with religious, ethnic, and cultural blocs pursuing group objectives. Individualists tend to be blind to this reality; they are often at a loss to explain politics when, judged as a purely individual activity, even the act of voting is irrational. But it’s not an individual activity—it’s a clan ritual, one that bears some relation to the actual acquisition of power for the group.

Without groups, there is no participation in power—not outside of the tiniest direct democracy, at any rate. The ever present possibility of clan organization, well noted by Weiner, is a natural building block for group participation in ruling. As Weiner warns, the admixture of kinshp and government can lead to “clannism,” in which a kin group dominates the state and uses its machinery of power for selfish ends. Yet without strong clans, participation in power, for defensive as well as aggressive purposes, is forestalled. The result is Caesarism—the condition of the early Roman Empire, in which the citizen may have certain individual legal rights, but he has hardly any way of participating in government to safeguard or extend those rights….

The paradox of rule is that to secure one’s rights, one must participate in government, but participation in government means wielding power that can—and inevitably will—be used to oppress others. Participation in government necessarily has an illiberal dimension, even though it is also indispensable for securing liberty.

I call it the interest-group paradox:

Pork-barrel legislation exemplifies the interest-group paradox in action, though the paradox encompasses much more than pork-barrel legislation. There are myriad government programs that — like pork-barrel projects — are intended to favor particular classes of individuals. Here is a minute sample:

  • Social Security, Medicare, and Medicaid, for the benefit of the elderly (including the indigent elderly)
  • Tax credits and deductions, for the benefit of low-income families, charitable and other non-profit institutions, and home buyers (with mortgages)
  • Progressive income-tax rates, for the benefit of persons in the mid-to-low income brackets
  • Subsidies for various kinds of “essential” or “distressed” industries, such as agriculture and automobile manufacturing
  • Import quotas, tariffs, and other restrictions on trade, for the benefit of particular industries and/or labor unions
  • Pro-union laws (in many States), for the benefit of unions and unionized workers
  • Non-smoking ordinances, for the benefit of bar and restaurant employees and non-smoking patrons.

What do each of these examples have in common? Answer: Each comes with costs. There are direct costs (e.g., higher taxes for some persons, higher prices for imported goods), which the intended beneficiaries and their proponents hope to impose on non-beneficiaries. Just as importantly, there are indirect costs of various kinds (e.g., disincentives to work and save, disincentives to make investments that spur economic growth)….

You may believe that a particular program is worth what it costs — given that you probably have little idea of its direct costs and no idea of its indirect costs. The problem is millions of your fellow Americans believe the same thing about each of their favorite programs. Because there are thousands of government programs (federal, State, and local), each intended to help a particular class of citizens at the expense of others, the net result is that almost no one in this fair land enjoys a “free lunch.” …

The paradox that arises from the “free lunch” syndrome is much like the …. paradox of thrift, in that large numbers of individuals are trying to do something that makes certain classes of persons better off, but which in the final analysis makes those classes of persons worse off. It is like the paradox of panic, in that there is a  crowd of interest groups rushing toward a goal — a “pot of gold” — and (figuratively) crushing each other in the attempt to snatch the pot of gold before another group is able to grasp it. The gold that any group happens to snatch is a kind of fool’s gold: It passes from one fool to another in a game of beggar-thy-neighbor, and as it passes much of it falls into the maw of bureaucracy.

I call this third, insidious, paradox the interest-group paradox. It is the costliest of the three — by a long shot. It has dominated American politics since the advent of “progressivism” in the late 1800s. Today, most Americans are either “progressives” (whatever they may call themselves) or victims of “progressivism.” All too often they are both.

Sandefur’s “free lunch” is the state’s recognition and authorization of his marriage. Now, it’s true that the state was already in the business of recognizing and authorizing marriage, so Sandefur’s “free lunch” probably didn’t impose additional costs on the rest of us. But by beseeching the state for a favor, he joins millions of others in validating a panoply of state powers that, on the whole, suppress rather than uphold liberty.

Sandefur would argue that his right to be married wasn’t the state’s to grant. Rather, rights exist independently, and the state sometimes recognizes and enforces them. The state, in other words, is really in the business of bestowing benefits. But because of the interest-group paradox there’s always a price to be paid — in dollars or liberty — for those benefits. The price is often justified by referring to “the greater good,” “the people,” “the nation,” or “society” (to list but a few such shibboleths).

What does that have to do with individualism? Nothing. How does it differ from clannism? It doesn’t; it is simply clannism with a bigger army.

*     *     *

Related posts:
On Liberty
Rights, Liberty, the Golden Rule, and the Legitimate State
The Unreality of Objectivism
“Natural Rights” and Consequentialism
More about Consequentialism
Line-Drawing and Liberty
Pseudo-Libertarian Sophistry vs. True Libertarianism
Positivism, “Natural Rights,” and Libertarianism
What Are “Natural Rights”?
The Golden Rule and the State
Libertarian Conservative or Conservative Libertarian?
Evolution, Human Nature, and “Natural Rights”
More about Conservative GovernanceWhy I Am Not an Extreme Libertarian
Facets of Liberty
Burkean Libertarianism
Understanding Hayek
Rights: Source, Applicability, How Held
What Is Libertarianism?
True Libertarianism, One More Time
Human Nature, Liberty, and Rationalism
Libertarianism and Morality
Libertarianism and Morality: A Footnote
Society and the State
Why Conservatism Works
The Pool of Liberty and “Me” Libertarianism
Not Guilty of Libertarian Purism
Liberty and Society
The Eclipse of “Old America”
Genetic Kinship and Society
Liberty as a Social Construct: Moral Relativism?
Defending Liberty against (Pseudo) Libertarians
Defining Liberty
Conservatism as Right-Minarchism
“We the People” and Big Government
The Social Animal and the “Social Contract”
The Futile Search for “Natural Rights”
The Pseudo-Libertarian Temperament
Parsing Political Philosophy (II)
Getting Liberty Wrong
Left-Libertarianism in a Nutshell

The Social Animal and the “Social Contract”

Here we go again, into “all men are brothers” territory:

“Morality can do things it did not evolve (biologically) to do,” says [Joshua] Greene [author of Moral Tribes: Emotion, Reason, and the Gap between Us and Them]. How can it do this? By switching from the intuitive “automatic mode” that underpins our gut reactions to the calculating, rational “manual mode”. This, for Greene, means embracing utilitarianism, “the native philosophy of the manual mode”. Utilitarianism takes the idea that “happiness is what matters, and everyone’s happiness counts the same”, generating the simple three-word maxim, “maximise happiness impartially”.

Greene is not the first to think that he has found “a universal moral philosophy that members of all human tribes can share” and that those who disagree are simply not being rational enough. Many a philosopher will raise an eyebrow at his claim that “the only truly compelling objection to utilitarianism is that it gets the intuitively wrong answers in certain cases”.

At least one strong objection is suggested by what Greene himself says. He knows full well that the kind of absolutely impartial perspective demanded by utilitarianism – in which the interests of your own child, partner or friends count for no more than any others – “is simply incompatible with the life for which our brains were designed”. Greene takes this as a flaw of human beings, not his preferred moral theory. But when someone, for example, dedicates a book to his wife, as Greene does, this does not reflect a failure to be appropriately objective. A world in which people showed no such preferences would be an inhuman, not an ideal, one. A morality that values human flourishing, as Greene thinks it should, should put our particular attachments at its core, not view them as “species-typical moral limitations” to be overcome.

That’s an excerpt of Julian Baggiani’s commendable review of Greene’s book and two others (“The Social Animal,” FT.com, January 3, 2014).

Greene makes two errors. First, he assumes that it’s wrong to prefer those who are closest to one, geographically and by kinship, to those who are farther away. Second, he assumes that happiness can be added, and that what should matter to a person is not his happiness but the sum of all the happiness in the world. The errors are so obvious that I won’t dwell on them here. If you want to read more about them, start with “Liberalism and Sovereignty,” “Inside-Outside,” “Modern Utilitarianism,” “The Social Welfare Function,” and “Utilitarianism vs. Liberty.” And by all means read “The Fallacy of Human Progress,” which addresses Steven Pinker’s rationalistic thesis about overcoming human nature (The Better Angels of Our Nature: Why Violence Has Declined).

Yes, human beings are social animals, but human beings are not “brothers under the skin,” and there is no use in pretending that we are. Trying to make us so, by governmental fiat, isn’t only futile but also wasteful and harmful. The futility of forced socialization is as true of the United States — a vast and varied collection of races, ethnicities, religions, and cultures — as it is of the world.

Despite the blatant reality of America’s irreconcilable diversity, American increasingly are being forced to lead their lives according to the dictates of the central government. Some apologists for this state of affairs will refer to the “common good,” which is a fiction that I address in the third, fourth, and fifth of the above-linked posts. Other apologists like to invoke the “social contract,” another fiction that Michael Huemer disposes of quite nicely:

[I]t is often said that the government derives its powers from a “social contract,” whereby the people have granted these special powers to the government. The only problem with this theory is that it is factually false—I have not in fact agreed to have a government, to pay taxes, or to obey the government’s laws.

A number of suggestions have been made as to how, despite my protestations to the contrary, I really have agreed to all those things. Here I will just mention one, because it is the one most often heard in conversation. This is the suggestion that I have “implicitly” agreed to have a government merely by residing in the government’s territory. (“If you don’t want a government, simply move to Antarctica!”) Very briefly, the problem with this suggestion is that it presupposes that the state owns all the territory over which it claims jurisdiction, or that for some other reason it has the right to exclude people from that area. But there is no way to establish such a right on the part of the state, unless one has already shown that the state has legitimate authority. This therefore cannot be presupposed in an argument designed to establish the state’s authority. In this case, the statist’s claim seems analogous to the leader of a protection racket claiming that his victims have voluntarily agreed to pay him protection money, merely by living in their own houses. There are other ways in which social contract enthusiasts claim that we have accepted the social contract, but as I explain in the book, each of them falls to equally serious objections, which show that the social contract does not come close to satisfying the generally accepted principles of real, valid contracts.

Another popular suggestion is that, in democratic nations (about half the world today), the democratic process confers authority on the government. The motivation behind this view is initially puzzling. Recall that the problem is to explain why the state may undertake actions that would be considered rights violations if anyone else were to perform them. Typically, if some type of action violates someone’s rights—for instance, theft, kidnapping, or murder—the action will not be converted into an ethically permissible, non-rights-violating one if a larger number of people support the action than oppose it. If you’re in a group of friends, and five of them decide they want to rob you, while only three oppose robbing you, this does not make it ethically permissible to rob you. Similarly, even if every law were directly authorized by a popular referendum of everyone affected by the law, it is unclear why this would render legitimate a law that would otherwise have been a rights violation. Matters are only more problematic in a society in which a minority of people vote, and they vote merely to select representatives who may or may not keep their promises, and may or may not do what their supporters wanted.

But doesn’t the government have to coerce us in the ways that it does in order to maintain itself in existence, so that it can provide law and order? And without government, wouldn’t society degenerate into a constant war of everyone against everyone? The first thing to note about this argument is that it could at most justify a tiny minority of all the powers claimed by any modern state. Perhaps the government must make laws against violence and theft and provide a court system to adjudicate disputes, in order to prevent a Hobbesian war of all against all. But why must the government control what drugs you may put into your body, what wages you may pay your employees, how much wheat you may grow on your farm, and whether you buy health insurance? Why must they subsidize agribusiness, send rockets to Mars, fund the arts, provide college loans, and run their own school system? The question is not, “Why are those programs beneficial?” The question is, “How are those programs justified by the threat of the Hobbesian war that would supposedly result from anarchy?”

Granted, sometimes it is necessary to use coercion to prevent some disaster from occurring. But having done so, one is not then ethically permitted to continue using coercion beyond the minimal amount necessary to prevent that disaster. If we really stand in danger of some sort of all-out Hobbesian war, then the state would be justified in employing the minimum coercion necessary to prevent the state of war from occurring. This would not justify their continuing to employ coercion whenever it strikes their fancy, or whenever they think they can achieve some benefit by doing so. (“The Problem of Authority,” Cato Unbound, March 4, 2013)

A point that Huemer doesn’t make in his essay is to compare Americans with the “boiling frog“:

The premise is that if a frog is placed in boiling water, it will jump out, but if it is placed in cold water that is slowly heated, it will not perceive the danger and will be cooked to death. The story is often used as a metaphor for the inability or unwillingness of people to react to significant changes that occur gradually.

The metaphor is apt. Americans — or a very large fraction of Americans — have been “boiled” stealthily:

Power has been passing to Washington for more than 100 years, in defiance of the Constitution, because of … the Nirvana fallacy, unrepresentative government, logjams and log-rolling, fiefdoms and egos, and the ratchet effect and interest-group paradox. Thus Washington is able to exert its power on the entire country, bringing big government to places that don’t want it….

[G]overnmental acts and decrees have stealthily expanded and centralized government’s power, and in the process have usurped social norms. The expansion and centralization of power occurred in spite of the specific limits placed on the central government by the original Constitution and the Tenth Amendment. These encroachments on liberty are morally illegitimate because their piecemeal adoption has robbed Americans of voice and mooted the exit option. And so, liberty-loving Americans have discovered — too late, like the proverbial frog in the pot of water — that they are impotent captives in their own land.

Voice is now so muted by “settled law” (e.g., “entitlements,” privileged treatment for some, almost-absolute control of commerce) that there a vanishingly small possibility of restoring constitutional government without violence. Exit is now mainly an option for the extremely wealthy among us. (More power to them.) For the rest of us, there is no realistic escape from illegitimate government-made law, given that the rest of the world (with a few distant exceptions) is similarly corrupt. (“‘We the People’ and Big Government,” Politics & Prosperity, November 16, 2013)

And, no, “we” — that is all of “us” — don’t want it to be that way:

If there is an “American psyche,” it has multiple-personality disorder.

What do you think when a snobbish European generalizes about Americans — a bunch of crude, gun-toting, money-grubbers? Do you think that such generalizations are correct? You probably don’t. And if you don’t, why would you think (or speak and write) as if Americans are like ants, that is, of one mind and collectively responsible for the actions of government? …

There’s no need to look abroad for inapplicable generalizations about America…. [C]onservatives and liberals have been separating themselves from each other. Only a cock-eyed optimist — the kind of person who believes that living in the same (very large) geographic requires unity — would call this a bad thing. As if proximity yields comity. It doesn’t work for a lot of families; it doesn’t work for most blacks and whites; it doesn’t work for upper-income and lower-income groups. Why should it work for most conservatives and liberals? …

But aren’t “we all in this together,” as proponents of big and bigger government are wont to proclaim? Not at all. The notion that “we are all in this together” is just a slogan, which really means “I want big and bigger government” to “solve” this or that problem — usually at the expense of persons who have done nothing to create the “problem.” “We are all in this together” is a call for action by government, not proof of a mythical “national will.” If “we” were “all in this together,” we wouldn’t need to be reminded of it. Like a good sports team or military unit, we would simply act that way. (Op. cit.)

It’s true that most human beings crave some kind of social connection. But the gap between that craving and the faux connectedness of one-size-fits-all big government can’t be bridged by ringing phrases (“We the People”), by appeals to patriotism, or by force.

Government can take my money, and it can make me do things the way “technocrats” want them done — and it can do the same to millions of other Americans. But government can’t make me (or those other millions) love the recipients of my money or feel happier because I’m doing things the “right” way. It can only make my (and those other millions) despise the recipients and detest forced conformity. Only divisiveness can prevent the complete destruction of liberty in the name of “society.”

Social unity is found not in government but in genetic kinship:

[G]enetic kinship is indispensable to society, where society is properly understood as “an enduring and cooperating social group whose members have developed organized patterns of relationships through interaction with one another.” (“Genetic Kinship and Society,” Politics & Prosperity, August 16, 2012)

It takes overeducated dunderheads like Joshua Greene to denigrate the bonds of genetic kinship, even while openly prizing them.

*     *     *

Other related posts:
On Liberty
Rights, Liberty, the Golden Rule, and the Legitimate State
Tocqueville’s Prescience
What Is Conservatism?
Zones of Liberty
Society and the State
I Want My Country Back
The Golden Rule and the State
Government vs. Community
Evolution, Human Nature, and “Natural Rights”
More about Conservative Governance
The Meaning of Liberty
Evolution and the Golden Rule
Understanding Hayek
The Golden Rule as Beneficial Learning
True Libertarianism, One More Time
Human Nature, Liberty, and Rationalism
Utilitarianism and Psychopathy
Why Conservatism Works
Reclaiming Liberty throughout the Land
Rush to Judgment
Secession, Anyone?
Race and Reason: The Achievement Gap — Causes and Implications
Liberty and Society
The Eclipse of “Old America”

“We the People” and Big Government

This post incorporates three earlier installments and completes the series.

When the Framers of the Constitution began the preamble with “We the People” and spoke as if the Constitution had been submitted to “the People” for ratification, they were indulging in rhetorical flourishes (at best) and misleading collectivization (at worst). The Founders may have been brave and honorable men, and their work — as long as it lasted — served liberty-loving Americans well. But do not forget that the Framers were politicians eager to sell a new framework of government. They were not gods or even demi-gods. They served liberty ill when they invoked the idea of a national will — expressed through government. Their coinage lends undeserved credence and emotional support to the rhetoric of statist demagogues, a breed of which Barack Obama is exemplary.

*     *     *

I make two basic points in this very long post:

1. It is a logical and factual error to apply the collective “we” to Americans, except when referring generally to the citizens of the United States. Other instances of “we” (e.g., “we” won World War II, “we” elected Barack Obama) are fatuous and presumptuous. In the first instance, only a small fraction of Americans still living had a hand in the winning of World War II. In the second instance, Barack Obama was elected by amassing the votes of fewer than 25 percent of the number of Americans living in 2008 and 2012. “We the People” — that stirring phrase from the Constitution’s preamble — was never more hollow than it is today.

2. Further, the logical and factual error supports the unwarranted view that the growth of government somehow reflects a “national will” or consensus of Americans. Thus, appearances to the contrary (e.g., the adoption and expansion of national “social insurance” schemes, the proliferation of cabinet departments, the growth of the administrative state) a sizable fraction of Americans (perhaps a majority) did not want government to grow to its present size and degree of intrusiveness. And a sizable fraction (perhaps a majority) would still prefer that it shrink in both dimensions. In fact, The growth of government is an artifact of formal and informal arrangements that, in effect, flout the wishes of many (most?) Americans. The growth of government was not and is not the will of “we Americans,” “Americans on the whole,” “Americans in the aggregate,” or any other mythical consensus.

Continued below the fold. Continue reading

The Capitalist Paradox Meets the Interest-Group Paradox

An insightful post at Imlac’s Journal includes this quotation:

Schumpeter argued the economic systems that encourage entrepreneurship and development will eventually produce enough wealth to support large classes of individuals who have no involvement in the wealth-creation process. This generates apathy or even disgust for market institutions, which leads to the gradual takeover of business by bureaucracy, and eventually to full-blown socialism. [Matt McCaffrey, “Entrepreneurs and Investment: Past, Present, … Future?,” International Business Times, December 9, 2011]

This, of course, is the capitalist paradox, of which the author of Imlac’s Journal writes. He concludes with these observations:

[U]nder statist regimes, people’s choices are limited or predetermined. This may, in theory, obviate certain evils. But as McCaffrey points out, “the regime uncertainty” of onerous and ever changing regulations imposed on entrepreneurs is, ironically, much worse than the uncertainties of the normal market, to which individuals can respond more rapidly and flexibly when unhampered by unnecessary governmental intervention.

The capitalist paradox is made possible by the “comfort factor” invoked by Schumpeter. (See this, for example.) It is of a kind with the foolishness of extreme libertarians who decry defense spending and America’s “too high” rate of incarceration, when it is such things that keep them free to utter their foolishness.

The capitalist paradox also arises from the inability and unwillingness of politicians and voters to see beyond the superficial aspects of legislation and regulation. In Bastiat‘s words,

a law produces not only one effect, but a series of effects. Of these effects, the first alone is immediate; it appears simultaneously with its cause; it is seen. The other effects emerge only subsequently; they are not seen; we are fortunate if we foresee them.

The unseen effects — the theft of Americans’ liberty and prosperity — had been foreseen by some (e.g., Tocqueville and Hayek). But their wise words have been overwhelmed by ignorance and power-lust. The masses and their masters are willfully blind and deaf to the dire consequences of the capitalist paradox because of what I have called the interest-group paradox:

The interest-group paradox is a paradox of mass action….

Pork-barrel legislation exemplifies the interest-group paradox in action, though the paradox encompasses much more than pork-barrel legislation. There are myriad government programs that — like pork-barrel projects — are intended to favor particular classes of individuals. Here is a minute sample:

  • Social Security, Medicare, and Medicaid, for the benefit of the elderly (including the indigent elderly)
  • Tax credits and deductions, for the benefit of low-income families, charitable and other non-profit institutions, and home buyers (with mortgages)
  • Progressive income-tax rates, for the benefit of persons in the mid-to-low income brackets
  • Subsidies for various kinds of “essential” or “distressed” industries, such as agriculture and automobile manufacturing
  • Import quotas, tariffs, and other restrictions on trade, for the benefit of particular industries and/or labor unions
  • Pro-union laws (in many States), for the benefit of unions and unionized workers
  • Non-smoking ordinances, for the benefit of bar and restaurant employees and non-smoking patrons.

What do each of these examples have in common? Answer: Each comes with costs. There are direct costs (e.g., higher taxes for some persons, higher prices for imported goods), which the intended beneficiaries and their proponents hope to impose on non-beneficiaries. Just as importantly, there are indirect costs of various kinds (e.g., disincentives to work and save, disincentives to make investments that spur economic growth). (Exercise for the reader: Describe the indirect costs of each of the examples listed above.)

You may believe that a particular program is worth what it costs — given that you probably have little idea of its direct costs and no idea of its indirect costs. The problem is millions of your fellow Americans believe the same thing about each of their favorite programs. Because there are thousands of government programs (federal, State, and local), each intended to help a particular class of citizens at the expense of others, the net result is that almost no one in this fair land enjoys a “free lunch.” Even the relatively few persons who might seem to have obtained a “free lunch” — homeless persons taking advantage of a government-provided shelter — often are victims of the “free lunch” syndrome. Some homeless persons may be homeless because they have lost their jobs and can’t afford to own or rent housing. But they may have lost their jobs because of pro-union laws, minimum-wage laws, or progressive tax rates (which caused “the rich” to create fewer jobs through business start-ups and expansions).

The paradox that arises from the “free lunch” syndrome is…. like the paradox of panic, in that there is a  crowd of interest groups rushing toward a goal — a “pot of gold” — and (figuratively) crushing each other in the attempt to snatch the pot of gold before another group is able to grasp it. The gold that any group happens to snatch is a kind of fool’s gold: It passes from one fool to another in a game of beggar-thy-neighbor, and as it passes much of it falls into the maw of bureaucracy.

[The interest-group paradox] has dominated American politics since the advent of “progressivism” in the late 1800s. Today, most Americans are either “progressives” (whatever they may call themselves) or victims of “progressivism.” All too often they are both.

Related posts:
Democracy and Liberty
The Interest-Group Paradox
Is Statism Inevitable?
Inventing “Liberalism”
The Price of Government
Fascism and the Future of America
The Indivisibility of Economic and Social Liberty
Law and Liberty
The Devolution of American Politics from Wisdom to Opportunism
The Price of Government Redux
The Near-Victory of Communism
The Mega-Depression
Tocqueville’s Prescience
Accountants of the Soul
Ricardian Equivalence Reconsidered
The Real Burden of Government
Rawls Meets Bentham
Is Liberty Possible?
The Left
The Divine Right of the Majority
The “Forthcoming Financial Collapse”
Estimating the Rahn Curve: Or, How Government Inhibits Economic Growth
The Deficit Commission’s Deficit of Understanding
Our Enemy, the State
Understanding Hayek
The Bowles-Simpson Report
The Bowles-Simpson Band-Aid
The Stagnation Thesis
America’s Financial Crisis Is Now
Utilitarianism and Psychopathy
Estimating the Rahn Curve: A Sequel
Lay My (Regulatory) Burden Down
The Burden of Government
Economic Growth Since World War II
More Evidence for the Rahn Curve
Obamacare, Slopes, Ratchets, and the Death-Spiral of Liberty