Building Liberty in Minecraft

The defining feature of this time period is the Internet, which provides unprecedented freedom of speech and access to information. But the more things change, the more they remain the same. Millennials have suffered from the same steady march against economic freedom. We understand much about social media and relatively little about free markets. But a new generation can know about a free society right now, and this led me to build Liberty Minecraft.

Prior Developments

For the past quarter century, the Internet has generated emergent digital economies in which people exchange digital items for analog items, usually fiat currency. These economies offer pay at any rate, avoiding minimum wage laws that remove low rungs on the economic ladder. Digital economies also exist in massively multiplayer online games.

In 2007, more than one hundred thousand people were employed as gold farmers in World of Warcraft for as little as thirty cents per hour.[1] A gold farmer is a person who plays multiplayer games to earn in-game currency for the purpose of selling it for real-world currency. Earning in-game wealth takes time and effort. Because online games can be accessed all over the world, people can earn a competitive wage in relatively low-wage markets by selling in-game currency to players in high-wage markets. Gold farming uses server bandwidth in exchange for money that players wish to spend on the game, and this costs game developers. It was once typical for game developers to ban gold farmers, but in recent years they have turned toward economic freedom as a solution to rising costs due to gold farming.

Today, players of Runescape and Eve Online may exchange in-game wealth for tokens called Bonds or CCP, respectively. These tokens are purchased for cash by one player, traded in game to another player, and may be used to pay for membership services that would otherwise cost $10-$15 per month. Game developers like play-to-pay business models because they can sell membership services for a 30% premium and use their own players to regain market share from gold farmers.[2] For gamers, play-to-pay models can provide dollar-equivalent hourly wages of less than $1, but highly skilled players can earn $5 or more. One may earn a wage during the least productive periods of their daily lives, producing at least some value instead of none.

Transactions are not always small. For example, a player of Entropia Universe spent $2.5 million to purchase virtual real estate in 2012. This was done because in the game, land owners share the revenue generated by player-to-player transactions, and this revenue is directly convertible to US dollars. This speculative bet may have yielded annual returns of 27 percent.[3] By their nature, speculations infrequently generate a profit, but one develops ability by trial and error.

Digital economies make it easier to learn about economics. Many capitalist acts between consenting adults are illegal in the real world,[4] but such barriers are rare in online games. Digital exchanges execute billions of trades per month for any of a thousand virtual commodities. Players of all ages can make thousands of equity decisions in those markets without having to file capital gains taxes. People can lose a digital shirt and learn real economic lessons.

Experiencing economic freedom in games is all well and good. This may partly explain why millennials were so attracted to Ron Paul’s “End the Fed” movement. However, organizing society by libertarian principles is about more than economics. Non-aggression and private property require freedom from the state. No such freedom presently exists in the real world. The lack of such empirical examples may help one understand why those same millennials support Bernie Sanders and Donald Trump just four years later. We do not understand freedom from the state, and this has not changed. Because a libertarian society is foreign to our experience, people ask questions like “who will build the roads?” The answer is actually simple. Without a state, people who want roads and are capable of building them do so. I have seen this in action because of Minecraft.

Original Conditions in the World of Minecraft

Minecraft is a sandbox game. Play is self-organized within a block building, 3D world. Players may select one of three basic game modes. In Creative, one may access a menu with infinite resources. In Survival, one must gather and consume resources to live but will respawn if they die. Hardcore mode is like Survival, but death is final.

Minecraft worlds are large by default. From an origin, a player may travel 30,000 kilometers along any axis and may build 256 meters to the world’s zenith. This is roughly half the size of Neptune by surface area (if it were a terrestrial planet) or seven times the surface area of Earth. Each Minecraft world has three dimensions of this size and depth. Each world is generated algorithmically from an 8-byte seed, a string of numbers. There are 264 possible 8-byte strings, leading to over 18 quadrillion possible Minecraft worlds.

The Virtual State of Nature

Online, Minecraft is lawless. Before modifications of any kind, the only rules which govern player behavior are physical laws. You have exclusive control over your player character but anyone may attack and try to kill you, thereby gaining access to resources that you carry or protect. However, in such large worlds with abundant ‘natural’ resources, violent conflict is relatively rare because it is simply easier to work for what one wants.

Competition among Minecraft servers is unfettered and meritocratic. Engagement is high; Minecraft is the best-selling computer game at present. The barrier to entry is low: a Minecraft server can be created or copied in minutes, deployed online at low cost, and operated by anyone. In less than one minute, a player may select and visit any of thousands of servers. Participation is voluntary; players always have the option to leave a Minecraft server at once.

Minecraft servers have diverse rule sets. An infinite number of server configurations are possible with server plugins that modify the game. Within commercial use guidelines and technical limitations, server operators establish rules according to their preference. These rules need not and often do not conform with existing laws in the real world. These rules can be and are often enforced by computer code. In this way, all Minecraft servers are new principalities which may or may not be governed by smart contracts.

Social orders are spontaneously created within Minecraft. Players develop institutions that are optimized to solve problems. Users build means to produce, distribute, and trade valued goods, especially food and building materials. They create farms, roads and shelters, and also chests to organize and store items for later use. Players create and promote their own social norms. If a player does not fill in potholes or replant trees to replace those that they have felled, other players may try to change their behavior. This may take various forms, from warning them in the game’s chat to attacking problematic players. Those who share values and aesthetics build their own communities and exclude (sometimes by violence) others with opposing values. Spontaneous order thus develops with or without an explicit ethical framework.

In Minecraft, people experience social orders with arbitrary rules. So, what happens if one creates a Minecraft server that defines rules by libertarian ethics and Austrian economics? In my case, the result is Liberty Minecraft.

Long Experience in a New Order

Liberty Minecraft is a sandbox for freedom. The goal was to establish a practice environment where people may test ideas within a digital free society and may learn about freedom by playing it. For over nine months, this goal has been achieved. Play is ordered spontaneously within the physical laws of Survival Minecraft. In a number of other ways Liberty Minecraft is different.

Liberty Minecraft is not as large as a default Minecraft setting. As before, there are three dimensions but their size has changed. The Overworld is seven kilometers on a side; just under nineteen square miles in surface area. This is roughly the size of Manhattan.[4] The Nether, another region, is just as large. The End, a place devoid of most resources, is ten times larger.

Some resources in Liberty Minecraft are renewable, while others are not. Resources must be gathered in order to be used or exchanged. Products are either created by the players or discovered in scarce structures that are native to Minecraft worlds. Liberty Minecraft could someday run out of trees, water, or soil, among other things.

Liberty Minecraft has few rules. Only one rule constrains player behavior; resolve nonviolent disputes nonviolently. Players of Liberty Minecraft must seek nonviolent solutions to the problem of scarcity. Two other rules further specify conditions that permit a player to use my server: read and understand the rules, and do not hack the server. The fourth rule is followed by myself and by the server itself. This rule does not bind the players, but rather provides them with an option and a promise: everything you claim is yours; if someone else claimed it first, then it is not yours. Private property rights within Liberty Minecraft are enforced by smart contracts.[5]

To claim property, a player may use a claim tool on unclaimed land and must spend claim blocks to create a claim. Claim blocks cost $20 each. A player may also purchase land from an existing claim holder. In both cases, smart contracts are optional and available to execute these transactions. Smart contracts also enforce all other forms of property on the server. This applies to player characters.

One may engage in combat with others provided that each player turns on the ability to do so. In Liberty Minecraft, a player character is protected from other players by default. This protection is optional. A player may disable these protections and enter player-versus-player mode. By entering this game mode, a player consents to be attacked at will by other players. This allows for combat between two or more people to take place, but only if all parties involved agree to enter into mutual combat.

Competition within Liberty Minecraft is unfettered and meritocratic. In under one minute, anyone who owns Minecraft for PC can join the server and begin to act within a libertarian social order. Player interactions are voluntary, with complete freedoms of association and discrimination. No one is required or forbidden to provide for others.

Liberty Minecraft uses Diamonds, one of the in-game commodities, as money.[6] At present, Diamonds are used to create the best tools and armor in Minecraft. They are also scarce, durable, and fungible. Within Survival Minecraft, diamonds cannot be farmed or produced synthetically. To obtain a diamond, one must search for hidden chests in scarce structures or dig underground for diamond ore.

Minecraft players seem to have freely chosen Diamonds as the medium of exchange. Thus, I have chosen Diamonds as money. However, a Diamond is indivisible. This problem was addressed by creating a Diamond Exchange to split a Diamond into $1,000. The value of a dollar is measured to fifteen decimal places, so there is plenty of room for revaluation if money becomes too valuable to perform ordinary transactions.

Engagement is strong so far; since the official launch in March 2017, players have engaged in more than 100,000 trades using our shop system. A single trade may consist of anything from one item to more than a thousand items, all player created. More than 8,000 hours have been logged by the players at the time of this writing. Liberty Minecraft is also cash flow positive and profitable.

Some Problems with Liberty Minecraft

There are four clear problems with Liberty Minecraft. First, the money is inherently disinflationary. Land claims as private property can only be traded when players have a “claim blocks from play” value that is larger than the size of the claim being traded, which is a technical limitation. To provide a real estate market with existing smart contracts, players must somehow accumulate claim blocks from play. To achieve this, players accumulate 20 claim blocks per hour, which is an arbitrary amount. All players receive the same amount per hour of play. Claim blocks are worth $20 each, so players currently receive a universal basic income of $400 per hour of play. Universal basic income is an obviously anti-libertarian element, but it does present the opportunity to solve this problem and observe what happens when a libertarian society eliminates universal basic income.

Second, within Liberty Minecraft, power is centralized in a single, flawed operator. I, Nathan Dempsey, make mistakes and correct them. Both types of actions can cause problems. For instance, when I created the world border in The End, I incorrectly calculated the area. The End was roughly ten times larger than I intended, and if I had left it that way, our world would become far too large for me to economically perform regular backups. I recalculated and changed the world size. This changes the availability of resources that are found in The End. I will make more mistakes as time goes on. However, if any player decides that my choices are intolerable they may (with some work) use software to download the world and their property. Then, they may put their version of the world online with server software and compete with me for players. This functions somewhat like a hard fork of a cryptocurrency. Following a land dispute, a player decided that absolute property rights are intolerable and left after downloading the world, which proves both that new competitors may enter my line of production and that I cannot be an ultimate decision maker.[7][8]

Third, the conditions of the game and server make theft and assault impossible. A player might create a death trap, but these can only be made on one’s own property, on unclaimed land, or on land in which they have been granted permission by the claim owner to create such hazards. Because property claims are impossible to violate (unless I chose to or a hacker managed to alter the server status), Liberty Minecraft does not provide a model for dealing with aggressors against property rights aside from having the server owner (me) remove someone from the server.

Finally, the Terms of Commercial Use prohibit anyone from selling soft currency for hard currency. Therefore, I cannot offer the play-to-pay model described in the opening without violating the Terms of Commercial Use. The terms provide a narrow range of ways that I can provide value to players in exchange for money. This even applies to affiliate marketing (which is not permitted), such as with Amazon. The consequence is that I must innovate within these narrow terms, which creates an interesting problem but deviates from a libertarian order. And ultimately, Mojang, the company that developed Minecraft, is regulated by the state, so Liberty Minecraft still operates within a statist framework to some degree.

Conclusion

Minecraft spontaneously generates social orders. Liberty Minecraft is an effort to create such an order based upon Austrian economics with libertarian ethics. Within Liberty Minecraft, players operate in an unfettered free market and experience social freedoms that are opposed by state aggression. This experience sharpens one’s thinking about economic and social affairs. Experiencing economic freedom online without freedom from the state has led people to reject the Federal Reserve System but favor the state at large. The goal of this project is to test libertarian ideas in a simulated environment and lead people to reject the state in favor of private property rights and non-aggression, which one experiences within Liberty Minecraft. Liberty Minecraft has some important problems that may be solved in future updates, and represents nothing less than a proof-of-concept for exploring social orders in games.

References

  1. Valdes, Giancarlo. “Jagex Wages War against Gold Farming in RuneScape 3 with Bonds” VentureBeat, 25 Sept. 2013. http://venturebeat.com/2013/09/25/jagex-wages-war-against-gold-farming-in-runescape-3-with-bonds/
  2. Dutton, Fred. “Entropia Universe player spends $2.5 million on virtual real estate” Eurogamer.net, 4 Apr. 2012. http://www.eurogamer.net/articles/2012-04-04-entropia-universe-player-spends-USD2-5-million-on-virtual-real-estate
  3. Block, Walter. “Fake Economic News | Walter Block” YouTube, Mises Media, 4 Aug. 2017. www.youtube.com/watch?v=FiwhlU4d-nY
  4. Dempsey, Nathan. “How The World Works” Liberty Minecraft, 14 Oct. 2017. www.libertyminecraft.com/how-the-world-works/
  5. Dempsey, Nathan. “How Private Property Works” Liberty Minecraft, 4 June 2017. www.libertyminecraft.com/how-private-property-works
  6. Dempsey, Nathan. “How The Money Works” Liberty Minecraft, 4 June 2017. www.libertyminecraft.com/how-the-money-works/
  7. Dempsey, Nathan. “Free Market Update: Land Disputes” Liberty Minecraft, July 2017. https://www.libertyminecraft.com/free-market-update-land-disputes/
  8. Hoppe, Hans-Hermann (2001). Democracy: The God That Failed. Transaction Publishers. p. 21.

On Consumerism, Corporatism, Time Preference, and Modernity

Consumerism

Capitalism is often blamed for consumerism. It is almost a certainty that whenever leftists run out of other arguments, they will make an argument related to consumerism. Consumerism is almost universally despised by people who have higher ideals, so it is easy to point out consumerism and then act as if it is an argument against capitalism. One reason for this is that socialism, the other major economic system in the modern world, eventually leaves people with nothing to consume, so capitalism is an easier target. But socialists make multiple critical errors in blaming capitalism for consumerism. While it is certainly true that capitalists benefit from a consumer culture, and that the capitalist system will not be toppled when people are attracted to consumer culture, this does not mean that capitalism as a system of free enterprise and private property is by necessity a cause of consumerism or oriented around consumerism. Furthermore, the capitalist class itself will be subject to consumerism and themselves be as hurt by it as anyone else.

When we look at why people engage in consumerism, we can see several major trends that cause consumerism. The first is having a corporate structure when it comes to enterprise. This means that for there to be consumerism there must be people who advance consumerism. There would be no consumerism if there were no beneficiaries of consumerism, and honest businesses do not need consumerism. Corporations are not honest businesses, as they hide behind a legal fiction created by the state. Without corporate structures, which are entirely constructed by the state, there is no party who would advance consumerism. Second, there must be people who are willing to engage in consumerism. Whereas people who have their lives figured out and have purpose beyond themselves do not turn to consumerism, these must be people who have nothing better to do than to consume. Such people see their lives as a series of capital transactions in which they seek immediate gratification. Consumerism cannot develop within healthy societies where people have cares beyond their own immediate interests. Third, consumerism requires that these people have money, as they cannot consume without first gaining access to a sufficient amount of capital. Thus, consumerism requires an abundance of consumer goods and services. Fourth, there must be a high social time preference within the society because people need to seek immediate gratification to value consumerism instead of being personally disgusted by engaging in consumerism. Finally, it is not only necessary that people have personal abundance, but that the capital structures that produce consumer goods are well-maintained. These capital structures will be maintained when people consume, but high time preferences will necessarily cause a form of stagnation, as there is insufficient investment to facilitate growth.

Corporatism

It is undeniable that the modern economy is largely driven by giant corporate structures, and it is similarly undeniable that these corporate structures are based on making as much money as possible in the shortest amount of time. Making profit is not inherently bad, but it is necessary to account for time preferences. The strategy used by megacorporations once they have attained their status is not to build up a honest reputation and a good name as valuable providers of quality services, but rather to profit in the moment and then leverage this profit for future gain. This is why many corporations operate in debt; they hope that they can be propelled by their profit and obtain investors by providing the potential for returns. This has much to do with the nature of corporations. Corporations are entities partially separate from the people and property legally represented by them. They shield people from personal responsibility, which creates a wide range of perverse incentives. If businesses were fully accountable, then there could not be such a large amount of corruption within them or such a high time preference by them. Without the ability to sustain debt through lack of responsibility, businesses would have to lower their time preferences.

Not only does the state indirectly advance predatory business practices in allowing corporate structures to take shape, the state also directly allies with corporations. Whereas attempting to create a corporation without involving the state will have no effect, incorporation is a government program and a corporation is a public-private partnership. Furthermore, politicians are funded by corporations, and corporations get special benefits from the state as a return on their investment in political connections. The result is that the state has been overtaken by corporate power, and the two work symbiotically in order to enhance their parasitism upon the rest of society. The largest corporations need their licenses, privileges, regulations, and other such competition-stifling measures to maintain their position, while the state needs to have control over the economy to maintain its position. Corporations are the only entities that can truly ensure that the economy is not outside the state. The entire modern political system is based on a mutual reassurance between corporations and the state, and separating the two at this point will cause an economic collapse.

At the highest level of business, the image of the humble CEO or board manager who does what needs to be done is a misconception; the people who run megacorporations are not the most virtuous people. Big business is not oppressed, and is not some heroic figure from an Ayn Rand novel who is fighting against the state for the freedom to compete in the free market. Rather, through regulatory capture, big business uses state power to oppress small businesses and individuals who seek to compete with them. For these reasons, the corporation is a fundamentally anti-capitalist institution.

Time Preference

There are the situations in which the state directly incentivizes high time preferences. People who are struggling financially are far easier to control than those who are financially secure. By contrast, when people save money and accumulate wealth, they are less influenced by the state. The state can make use of this to artificially create and expand a consumer culture by inflating away savings. This is done by printing fiat currency that loses its value over time, then watching people impoverish themselves by using that currency. People may have an abundance of consumer goods, but they are constantly struggling financially and feel as if they are much poorer than they are. These reckless spending habits that are bound to impoverish the spenders are extremely beneficial to the state and the politically connected corporate elites. Furthermore, the state can tax people more on their purchases if they spend beyond their means. It will also create more possibilities for taxing artificially successful businesses when they inevitably expand due to the calculation with inflationary currency being favorable towards them. However, this is unsustainable and always results in an economic contraction. Unfortunately, the state can also exploit this by picking winners and losers, bailing out favored megacorporations, creating new social welfare programs, and expanding the grip of central banking over the economy.

Having high time preferences also leads to an economy based on debt, in which people spend more than they have, and both governmental and private institutions support this spending. Banks earn most of their income from this overspending and from people who are unable to pay them back in full. Due to this over-reliance on debt, the population as a whole is saddled with debt that can feel impossible to ever pay off, which can cause them to lose their motivation in life. The population will be easier to control by both the state and the banks that run this debt-based economy, as the agencies who provide the debt for the economy are the agencies who make the reliance on debt possible. Easy debt also leads to price inflation, as there is more market demand without a corresponding increase in market supply.

People get addicted to debt when they need to spend more than they have. However, this results in a problem when a person’s available collateral shrinks in comparison to their debt. They will eventually hit a wall where they can take no more debt unless and until they pay off their old debt. This is a debt trap in which people must repeatedly take on new debt to pay off old debt, all while interest accumulates and clearing their debt is impossible. This keeps people from being able to prosper, and the number of people trapped under such a burden is increasing. This, in turn, causes much greater class divides, as lower-class individuals who do not keep a store of capital that they can use for various ventures will be unable to make profitable investments. They will always be subject to one boss or another and will never experience true independence.

None of this is the fault of a capitalistic economy, but rather the high time preferences exhibited by the consumerists. On the contrary, capitalism is the most benevolent aspect of this situation, as it punishes the destructive habits of consumerism. These people are stuck in poverty not because of capitalism, but because of their own consumption habits amplified by state interference. Their lack of advancement is not an unfair punishment, but rather a sign that they should change their ways. This requires a particular mindset of growth and improvement that is most often stunted by public education and the degenerate culture which most people inhabit. This mindset requires that people actually trust the market signals they receive instead of seeing capitalism as a repressive entity. Escaping poverty requires a willingness to do what must be done instead of waiting for someone else to provide a handout. People who blame capitalism for holding them down while engaging in mindless consumerism are as children who eat too much candy, become ill, and also complain that they have too little candy.

Modernity

The modern society allows people to live a life without meaning. It removes church as a higher spiritual goal, community as a higher social goal, family as a higher personal goal, and even denies the importance of individual goals that a normal person might have. Through the lens of modernity, it is better to remain free and untethered rather than have a family. Looking out for one’s own interests at an individual or group level is derided as selfishness that ignores the greater good of society or hateful racism. By society, modernists do not refer to the disaffected small villages or the impoverished sections in urban communities that are in the greatest need of strong and healthy communities. Instead, they almost exclusively refer to a central state and imply that people are only worthwhile when they work for the state or when they work for nothing of value. They only see the state as a representative of society, with the only acceptable substitute to focusing on the state being pure hedonistic nihilism. Ironically enough, this mindset is most often heard coming from people who oppose capitalism on the basis of it being anti-social.

People are thus left without a greater meaning to work towards. They are left not providing for themselves, their family, or something else they hold dear. People are left as freely floating agents who are reduced to nothing other than consumers, and material pleasures are the only things that allow these people to tolerate the otherwise meaningless lives that they lead. They are not some great paragons of modernity, but rather embody the lowest state of rot and decay.

Conclusion

Consumerism is caused by progressivism, corporatism, and impatience. Capitalism is nowhere near the root cause of consumerism. Free enterprise and private property do not create such a propensity to consume over doing more meaningful things. The reason why consumerism is such a prevalent phenomenon is not because there is too much capitalism, but because people lack self-restraint or purpose and are encouraged by the state to live in such a manner.

Twelve Observations On The Catalonia Independence Vote

On September 6, the government in Catalonia announced that it was going to hold a vote on October 1 to decide whether the region should secede from Spain and become a nation-state unto itself in the form of a republic. It also announced that should the people choose independence, the government would declare secession within 48 hours. Spain’s constitutional court declared the vote unconstitutional, and the central government in Madrid said that it would attempt to stop the vote. Neither side backed down. The Spanish government seized ballots and tried to shut down polling places, resulting in violence that left over 840 people injured. The vote still took place, with nearly 90 percent voting for independence. In response, pro-secession protests occurred throughout Spain and a general strike was called across Catalonia. Spain and the European Union have rejected Catalonia’s requests for mediation, and King Felipe VI has denounced the secession movement. Twelve observations on these events follow.

1. One cannot understand the present without knowing the past. The formation of the current Spanish state can be dated to 1469, when the Christian kingdoms of Castile and Aragon were united by the marriage of Isabella I of Castile and Ferdinand II of Aragon. Under their leadership, the last Muslim rulers were expelled from Spain, Christopher Columbus was sent to the New World, and royal power was centralized at the expense of local nobility. Even so, Spain has always been a multi-ethnic state, composed of Basques, Catalans, Galicians, and others. In the 19th century, nationalist feelings among these groups grew. These aspirations took a back seat during the Cuban War of Independence, Phillipine Revolution, and Spanish-American War. Regions of Spain were granted greater autonomy in the Second Spanish Republic (1931-39), but this was brutally repressed during Francisco Franco’s dictatorship (1939-75), such that people were not even allowed to give their children Basque, Catalan, Galician names. After Franco’s death, Spain was turned into a semi-federal state with 17 autonomous communities, some of which have their own languages and cultures, as Catalonia does.

2. The Catalan independence movement cuts across ordinary political lines. Some people in Catalonia believe that independence would bring order to the region’s finances, or make taxes paid by Catalonians provide more benefit to Catalonians. Others are migrants who became involved with the Catalan movement and have no loyalty to the government in Madrid. Still others have particular political objectives that they believe to be easier to achieve on a smaller scale, such as an independent Catalonia rather than the entirety of Spain. In American terms, the parties which are in a temporary alliance to achieve independence run the gamut from the Constitution Party to the Green Party.

3. The harder one clenches one’s fist, the more sand slips through one’s fingers. For the Madrid government, responding with peaceful dismissal of the independence vote would have been more effective. Instead, they met peaceful efforts by Catalans with violence. In the words of a Spanish politician, “We have given them the pictures they want.” By forcefully opposing the self-determination of Catalans, the Spanish government is pushing swing voters toward the independence movement, as such actions raise the specter of Franco that is still remembered, particularly among older people. Furthermore, the creation of a new state is much easier if existing states recognize it, and images for foreign consumption of people trying to vote and being hit with truncheons and shot with rubber bullets for it will create pressure on other governments from their people to recognize Catalonian independence.

4. The voting results are questionable. The Catalan government rushed through the legislation for the referendum and passed it in a late-night session without the opposition being present. They vowed to secede even if turnout was low, and engaged in smear tactics against those who opposed independence. Turnout was only 42.3 percent, and the anti-independence side did not campaign because the government in Madrid declared the vote to be illegal.

5. This will provoke greater nationalist sentiment in the rest of Spain. Whenever separatist sentiment grows in one part of a nation, a unionist sentiment tends to grow elsewhere in reaction to it. In some cases, this occurs because the separatists threaten to remove an economically important area from the nation, such as a mine or a seaport. In others, such as the American Civil War, the separatists are engaged in activities that the unionists find morally reprehensible. Sometimes, a central government simply wishes to keep separatists subjugated so as to discourage other separatist movements elsewhere in the nation, such as in the Basque country. Whatever the case may be, nationalism in Madrid is likely to grow alongside secessionism in Catalonia. This will be bolstered by the fact that Catalonia is more leftist than the rest of Spain, as nationalism tends to be more common on the right.

6. Nationalism is not an ally of liberty; merely an enemy of some of liberty’s enemies. The nationalist sentiments of Catalans or anyone else in Spain will not lead to liberty in and of themselves. Only by coupling such sentiments with the principles of self-ownership, non-aggression, and respect for private property can a libertarian social order emerge. Nationalism is also hostile to any decentralizations of power below the national level. That being said, nationalism is certainly a lesser evil than globalism, and may serve as a temporary makeshift on the path to a better political arrangement.

7. The EU will be weakened regardless of the end result. If Catalonia becomes independent, it will be outside the EU, having to either apply to rejoin or have its move toward independence also serve as a Catexit, so to speak. Given Catalonia’s population of 7,522,596 and GDP of $255.204 billion, this would remove 1.47 percent of the population and 1.23 percent of the GDP from the EU. By contrast, Brexit will remove 12.83 percent of the population and 13.45 percent of the GDP from the EU. Even though Brexit is a much larger issue, the impact of a Catexit would still be noticeable. Catalonians are unlikely to want to exit the EU, but doing so may be unavoidable if they cannot gain admission once they are independent.

As per the previous point, it is also necessary to contemplate a Spexit, with or without Catalonia included. Growing nationalism in Spain as a reaction to growing separatism in Catalonia may lead to euroskepticism there. This, combined with longstanding economic issues in Spain such as high unemployment, may lead conservatives to contemplate the possibility of a brighter future outside of the European single market. A complete Spexit would remove 9.08 percent of the population and 5.94 percent of the GDP from the EU, while only Catalonia remaining in the EU would remove 7.61 percent of the population and 4.71 percent of the GDP from the EU. Though not as impactful as Brexit, a second member state leaving the EU could signal the beginning of the end.

Finally, regardless of whether any exits occur, the EU will almost certainly appear to be weak and ineffectual as a result of recent events. Calls for it to mediate the dispute have gone unanswered, and the EU seems intent on ignoring repression of a democratic vote. Given the EU commission’s threats of sanctions against Hungary and Poland for their anti-democratic policies, this seems rather hypocritical. One must also consider that the EU has no mechanism for dealing with such an issue. Article 3a of the Treaty of Lisbon calls for the EU to “respect their essential State functions, including ensuring the territorial integrity of the State, maintaining law and order, and safeguarding national security,” so it is unlikely to help the separatists. Nor is it in the rational self-interest of anyone who wields power in the EU to intervene, as doing so would encourage separatists in other EU nation-states.

8. Secessionist movements are fueled by economic hardship and government mismanagement. The role of the Catalan people in Spain is both privileged and marginalized. Even though Catalans have maintained a distinct identity, they contribute more to Spain than they receive in return, especially in terms of institutional influence, which remains dominated by Madrid. Since the 2008 financial crisis, this has exacerbated tensions, and the continued economic problems in Spain lead some Catalonians to believe that they could do better for themselves with more local governance.

9. The state is legitimized only by force. The simple truth is that any other basis for legitimacy is subject to reason and defeated thereby. A deity fails because no such being is proven to exist. A constitution fails because any person or group can write one, leaving the state’s legitimacy constantly imperiled. An appeal to tradition fails because all traditions and states must begin somewhere, leaving them unable to be formed in the first place. A supranational body fails because it begs the question of how it gets its legitimacy. A social contract fails because a valid contract must be entered into willfully by all parties. Democracy fails because it is a logical impossibility, which could not even appear to function without the state already in place, thus resulting in circular reasoning.

Mao Zedong spoke truly on the nature of state legitimacy; “Political power grows out of the barrel of a gun.” A state continues to operate because it violently subjugates anyone who would attempt to end its operation, and it maintains territorial integrity by violently suppressing any efforts by its people to secede from the state. The only factor preventing individuals or sub-national groups from gaining sovereignty is the fact that they lack the force of arms and/or the willingness to use them for that purpose.

10. Self-determination must be taken and defended by force. Given the previous point, the path to true independence is clear. A separatist movement must first declare independence, but this will never be sufficient. The larger state will seek to retain any breakaway provinces by force, and if the separatists wish to form a new nation rather than be imprisoned or executed on charges of sedition or treason, they must respond with defensive force to the aggressions of the larger state. This has been the norm at least since the American Revolution, and the Catalonian situation is shaping up to be no different.

In a more general theoretical sense, self-determination must be taken and defended by force because the failure to do so will result in some group of aggressors infringing upon one’s self-determination. As Vegetius said, “He, therefore, who desires peace, should prepare for war.” Only by doing this can one present an effective deterrent against those who would return a free people to a state of bondage.

11. Repression by the Spanish government may provoke terrorism. Should the violence escalate, as appears likely, some Catalonians may end up following the Basque model. In the Basque Country, there is a moderate nationalist and separatist movement, much like the Catalonian independence movement. But there is also the ETA, a paramilitary group that has engaged in terrorist acts for decades. The group was founded in 1959 during Franco’s regime, but continued carrying out attacks for decades after the restoration of regional autonomy. Other examples of this throughout the world include the Irish Republican Army and the PKK in Kurdish regions of Iran, Iraq, Syria, and Turkey. Notably, the Kurds are also attempting to create a new state for themselves at the time of this writing.

12. The international community functions as a cartel. Catalonia and Iraqi Kurdistan are currently attempting to become independent nation-states, and both are being met with a mixture of indifference and contempt from existing nation-states. That such movements provoke hostility from the remainder of their current states is understandable and has been addressed above, as has the uneasiness of foreign governments to recognize the independence of separatist movements. But there is more at work here, which may be explained by considering the role of cartels in a marketplace and the effects that decentralization would have if taken to its logical conclusion.

The standard libertarian view is that cartels are inherently unstable, as the incentive of each member has a profit motive to betray the cartel. This incentive is frequently countered by state interference in the economy to protect a cartel from this effect. There is no more profitable venture in the current system than the management of a state, so this profit motive is amplified alongside the protectionist motive as an equal and opposite reaction. But libertarians tend to under-appreciate the role of aggressive violence in the marketplace, which is a service for sale like any other. This keeps them from fully understanding situations like these, in which established players seek not only to out-compete upstarts or hamstring them through regulatory capture, but to engage in direct violent suppression of competitors.

Finally, the rulers of nation-states must be aware at some level that the entry of new polities into the established order has the potential to remove that order from power. In the words of Murray Rothbard,

Once one concedes that a single world government is not necessary, then where does one logically stop at the permissibility of separate states? If Canada and the United States can be separate nations without being denounced as in a state of impermissible ‘anarchy,’ why may not the South secede from the United States? New York State from the Union? New York City from the state? Why may not Manhattan secede? Each neighbourhood? Each block? Each house? Each person? But, of course, if each person may secede from government, we have virtually arrived at the purely free society, where defense is supplied along with all other services by the free market and where the invasive State has ceased to exist.”[1]

Taken to its logical conclusion, political exit may be disintegrative, but stopping somewhat short of atomized individualism would both remove the Cathedral from power and create the opportunity to build a superior form of social order. The establishment has no interest in allowing this to happen and would rather nip it in the bud at the expense of looking oppressive and/or indifferent than risk losing their global hegemony.

Taken together, these explanations help one understand why the established nation-states, despite their contrary interests, can agree that no new members should be able to join their club.

References:

1. Rothbard, Murray (2009). Man, Economy, and State with Power and Market. Ludwig von Mises Institute, Scholar’s Edition, 2nd ed. p. 1051.

Why Price Gouging Is Good

When a natural disaster strikes, it is almost guaranteed that there will be yet another uproar about price gouging. Media pundits will take to the airwaves to virtue signal against people who would dare to exploit disaster victims. Government officials will use the crisis to score political points by portraying themselves as defenders of the common people against greedy capitalists. But how accurately does this reflect reality? Let us explore the nature of price gouging to see the economics of such a situation and explain the behavior of journalists and state agents.

Economic Forces

In order to intelligently approach the concept of price gouging, one must first define it. Price gouging is a sudden, sharp increase in prices that occurs in response to a disaster or other civil emergency. Though this defines the act well, it does not explain the mechanisms behind it. When a disaster approaches, there are certain goods that people wish to acquire in greater quantities than normal, such as clean drinking water, non-perishable foods, wooden boards for protecting windows, and so on. If supply is held constant, then this sudden increase in demand for such goods will produce a sudden increase in their prices.

If left unhindered by the state, this upward pressure on prices will produce important benefits. First, it serves as a signal to producers and distributors of those goods that more supply is needed. The producers and distributors thus learn where their goods are most urgently in demand, allowing them to engage in mutually beneficial transactions with disaster victims. This is how free markets are supposed to function in order to meet the needs of customers.

Second, price gouging encourages proactive preparations. A potential business model for a firm is to invest in equipment that allows it to operate when a disaster would otherwise force it to close, and use the proceeds from price gouging to amortize the cost of the equipment. This helps consumers by allowing them to purchase goods at higher prices rather than be left without essential items during a crisis.

Third, price gouging provides an important benefit by conserving the fixed amount of resources which are present before more deliveries can be made to the disaster area. The higher cost of scarce goods disincentivizes people from buying up supplies that other people need, thus helping to keep the items in stock. This keeps scarce resources from being wasted on marginal uses, directing them toward their most valued uses and the people who most need them instead.

Markets And Malice

Unfortunately, not every instance of price gouging is so benevolent. Business owners who seek to exploit vulnerable people in order to make money do exist. But engaging in such behavior in a free market produces a short-term gain followed by a long-term loss. In a pure capitalist environment, reputation is everything for a business. Whatever profits may come from gouging disaster victims in the present will be more than outweighed by the sales that one will lose in the future because of the damage that this does to one’s brand. After all, most people would view such behavior as adding insult to injury and vote against it with their wallets. Though it is impossible to accurately count sales that do not happen, to dismiss this effect as nonexistent is to commit the broken window fallacy.

Enter The State

Most people are economically illiterate, so they tend to focus on the malevolent type of price gouging and be unaware of the benevolent type. In a democratic state, this has predictable results. Politicians and other government agents will frown upon price gouging and seek to punish anyone who they believe to be engaging in it. But it can be difficult to distinguish the natural effects of demand spikes and limited supplies upon price from the efforts of greedy exploiters of disaster victims, especially for government officials who are too far removed from the disaster area to be intimately familiar with the economic dynamics there. Thus, all price gouging is suppressed by the state, and while this may protect a few people from exploitation, it causes more harm than good by disrupting the market signals which would have informed producers and distributors that their goods need to be sent to the disaster area. The end result is that scarce goods are depleted and not replaced, leading people to once more blame the market for failing them when the actual cause of their shortage was a government failure.

Suppression of price gouging has several deleterious effects. First, by placing price controls on goods, the state deprives entrepreneurs of the profit motive to bring additional supply to the disaster area. Without state inteference, people who live outside of the disaster area and are willing to travel there in order to bring supplies could charge enough for their goods to recover their travel costs and be compensated for the inconvenience of spending time in a disaster area, all while making enough profit to make such a venture more attractive than other economic opportunities. Price gouging laws remove such action, leaving only state agencies and altruistic private groups to provide aid. Note that like all government regulations, price gouging laws are subject to regulatory capture by the largest businesses.

Second, removing the incentive for proactive preparations makes untenable the business model for operating during a disaster described above. Third, removing the conservation effect of price gouging forces business owners to sell goods below their market-clearing price. This incentivizes hoarders to buy more than they need and scalpers to buy goods for resale. The existence of scalpers also makes desired goods more difficult to find, as resellers will be more difficult to locate than established stores. Thus, laws against price gouging do not eliminate the practice, but rather shift it from primary markets to secondary markets and cause a different set of people to profit. Taken together, these effects result in artificial scarcity that makes conditions in a disaster area even worse.

A Pair of Razors

Given the clear case in favor of price gouging, one may wonder why so many people in positions of political power rail against it. Reece’s razor suggests that we look for the most cynical explanation when attempting to determine a motive for state policy. No other possibility prioritizes the self-interest of politicians and their minions over the lives and properties of citizens quite like the idea that government officials want to suppress the natural response of markets in order to make government disaster relief agencies look effective and necessary, thus justifying their existence and expansion, so Reece’s razor selects it.

However, it is not in the rational self-interest of elected officials to increase the suffering of disaster victims who are capable of removing them from office in the next election. A better explanation is offered by Hanlon’s razor, which says that one should not attribute to malice what can be explained by stupidity. In this view, government officials are not trying to increase the harm done during a disaster; they simply know no better because they are just as economically illiterate as the electorate, if not more so. This razor is a better fit for the available logic and evidence.

Conclusion

It is clear that price gouging has an important economic role in ensuring that goods both go to those who need them most and remain available in times of emergency. Market prices are important signals that tell producers and distributors where their goods are most urgently needed. When the state interferes with this process by imposing price controls, it turns off the signal and incentives for market actors to send aid, encourages hoarding and scalping, and discourages conservation and farsightedness. These effects mean that laws against price gouging harm the very people that they are ostensibly supposed to help. Therefore, price gouging should not be punished by the state or demonized by the press.

On The Relationship Between Libertarianism and Fascism

In the August 2, 2017 episode of the Tom Woods Show, Woods talks about the moral outrage of left-libertarians and their tendency to call other libertarians fascists, Nazis, or whatever other insults they can muster. To follow up these complaints, he asserted that libertarians and fascists are completely contradictory political perspectives and could never be combined, alluding to the “libertarian fascists” and libertarians with fascist sympathies. He also said that when one embraces fascism, one must have relinquished one’s libertarianism, as there is no other solution that would make sense. In the historical sense of fascism, libertarian fascism is a contradictory term. A person who is a libertarian cannot actually and fully consider themselves a fascist in that sense, or vice versa. However, we can treat libertarian fascism as a placeholder term for a broader ideological shift toward a synthesis of libertarianism and fascism. We may also consider how a private property owner in a libertarian society could have a fascist structure within the bounds of private property.

Examining Premises

The first mistake that Woods (and many other libertarians) make is to assume that the combination of different ideological perspectives is dependent on policy and not the fundamentals of their philosophy. From this, Woods implies that fascism is about centralization and boundless idealism, while libertarians accept people as they are and favor decentralization. Some more simple-minded people also think that fascism is about authority and state power while libertarianism is the complete opposite. This may be true when we look at policy proposals, but policy cannot be the arbiter of ideological coherence or ideologies themselves. We need to analyze the premises of different ideologies if we are to analyze how compatible these ideologies are. This is necessary because ideologies are fundamentally systems of thought and analysis flowing from basic premises. A person using an ideology is a person looking at the world in a certain way and proposing policy positions from that set of value judgments.

To illustrate this, let us consider the example of Milton Friedman. Milton Friedman is claimed by both libertarians and neoliberals as representing their ideologies. This means that both libertarians and neoliberals see Friedman as using their methods of analysis and looking at the world in the same manner that they do. But here we find a contradiction; there appears to be a problem if we are to place neoliberalism and libertarianism on a scale of politics. First, we have to establish that there is a connection between Rothbard and Friedman when it comes to libertarianism; that is, that one could draw a straight line from Rothbard to Friedman and it would naturally follow from their ideological positions. This may be done; one can see that both men respect property rights, advocate for reducing the size of the state, and wish to increase the freedom of the market. But one must also draw a line from Hillary Clinton to Friedman, as they are both neoliberals. Both are cosmopolitan, fairly progressive, and advocate for a sort of economy that is not only free but also open. Although they differ in their degree of state intervention, one can ideologically connect Friedman and Clinton.

But there is a problem, in that no such connection is present between Rothbard and Clinton. There is no consistent line that could connect Rothbardian thought with Clintonian thought. Their philosophies and perspectives are mutually exclusive. There is no principled alliance or synthesis between them; only alliances of convenience may exist. However, when it comes to Friedman, there may be a synthesis between these ideologies. Both Rothbardians and Clintonians will have their criticisms of Friedmanites, but Friedman’s position is palatable for both neoliberals and libertarians. This is because Friedman used both the premises of neoliberalism and the premises of libertarianism. He analyzed the world in a way that followed from the neoliberal desire for openness and personal freedom and the libertarian desire for self-determination and liberty. We can boil down these two positions to this: the neoliberals want looseness while libertarians want property. Neoliberals tend to favor whatever makes national identity, economic policy, or social cohesion looser. Libertarians tend to favor whatever makes property rights stronger, whether it be self-ownership, non-aggression, or property rights in external objects. Coming from both perspectives, one would both appreciate property rights and self-determination but also a loose society without national identity or strong social norms, and this explains the desires of left-libertarians. Friedman was first and foremost an economist, so we see more of the propertarian side of him, but he was also a neoliberal.

The Premises of Fascism

We have already established that the libertarian premises are self-ownership, non-aggression, and property rights. Libertarians tend to favor whatever increases the power of the property owner over his justly owned property. But what do the fascists take as their premises? Contrary to popular belief, it is not opposition to property or to personal liberty. No fascist regime has ever gotten rid of property and the personal liberty question has only been a policy proposal, not something most fascists believe in strongly. There are some fascists who are against property, but they are few and far between and have never had a strong presence in a notable fascist government. In fact, most fascist governments suppress these left-wing variants. In fiction, some fascists are opposed to personal liberty on principle, but these are not reflected in reality; the closest real approximation are people who believe that control is necessary for virtue. But in that case, the premise is virtue rather than control, as the fascist does not want control for the sake of control. To really understand the fascists, we need to look at fascist movements.

In Italy, there were the national syndicalists that eventually became the fascists. They believed in creating a pseudo-syndicalist economy that combines worker interests and business interests to reduce class conflict. They also believed in strengthening Italian society and creating an incredibly traditionalist social order. The Nazis shared the second point, but they wanted an economy where there is comparatively stronger property and there are more capitalistic structures, but on the condition that these structures benefit the nation. In this form, national socialists treat property owners as trustees given property by the nation to take care of the wealth and resources of the nation. We can see many other movements that hold themselves to be both anti-communist and anti-capitalist, but eventually, end up with what we would call a fascist economic policy.

Other movements were somewhat different. The Francoists come from the more orthodox Falangist position, and they are outliers because Franco eventually liberalized the economy and created a more free market than many people would have favored originally. Though Hitler privatized multiple industries, this was nothing compared to the Spanish miracle. The Greek military coup lead by Papadopoulos constantly referred to their movement as being explicitly temporary, however, the attempts of liberalization by Papadopoulos were shut down by other people within the government. It is impossible to know how Greece would have developed if these liberalizations had occurred, but the government was overthrown and Greece eventually became a leftist mess.

One could include Pinochet and use the Chilean miracle as another example of success, but fascists often consider Pinochet to be a sellout, and it is not entirely clear whether Pinochet was actually a fascist or simply a paid CIA operative; an anti-communist or globalist agent. Finally, one can look at the American Nazi party. They are certainly fascists, but they are also constitutionalists. They want to return to the founding documents of the United States, and support sound money and free markets. This contradicts the common image of fascism, and thus may befuddle any libertarian who has not analyzed the premises of fascism.

The Conclusions of Fascism

What all these movements had in common was the ultimate goal of creating a better nation. This meant creating a world where the destructive forces that were threatening to the nation could not take hold and the nation could prosper. They all wanted a society and an economy based around the nation, which they believed would create a better life for the people within that nation. One can see how the policies of all these movements actually follow from the nationalism that fascists take as their ultimate premise. Many say that fascists have no coherent economic policy, but this is untrue. The economic policy of fascists is and always has been to strengthen the nation. The 20th century was marked by a struggle between Marxist world socialism and liberal world capitalism. The Marxists agitated the workers while the liberals agitated the middle and upper classes, creating an immense class conflict that fueled revolution and chaos. The fascists in the early 20th century came along and attempted to create an economy that would work both for the upper and the lower classes, an economy where the workers would get what they think they deserve while the capitalists could keep their capital and use it productively. To do this, they wanted the state to have control of the economy to make sure that no one is exploited (at least, by any entity other than the state) and that everyone will work for the nation to ensure a lack of parasitism for greedy or materialistic purposes (again, outside of the state itself). When this was shown to be unsustainable, the smart fascists shifted to a policy of privatization. This happened under Hitler and Franco to various degrees; they ultimately let go of some state property and handed it to people who used it productively. The Nazis were not ready to give up their desires for the aesthetic advancement of the German people, so they needed to expand their empire to fuel their faulty economy, but some privatization still took place.

The social policy of fascist regimes has always been to make sure that the nation is sustainable and that the nation does not slide into degeneracy. From this follow positions against promiscuity, homosexuality, drug use, and whatever else people do in order to derive hedonistic pleasure at the expense of a healthy society. It also has a strong connection to the view that traditional family structures should be the basis of society, meaning that incentivizing motherhood and the creation of strong men to take care of the women is proper for sustaining the nation. This explains the ethnic element of fascism, as all nations are ultimately determined by the genetic stock of their people and the historical condition where the people have developed. Furthermore, this explains why anti-Semitism is present in historical fascist movements, as fascists tend to view Jews as a hostile minority with disproportionate influence that works to undermine the nation with moral degeneracy and financial manipulation while refusing to assimilate into the host nation.

Libertarianism and Fascism

First, from the premises of libertarianism, fascism is a lesser evil than left-wing socialism. Fascism undoubtedly preserves property more than left-wing socialism does, thus fascist sympathies cannot be construed as completely anti-libertarian. But one cannot take as ultimate goals both nation and property, as the conflicts between these goals would have to be solved by means of arbitrary decision. This means that libertarianism and fascism cannot be combined as ideologies because their premises are different. One may combine republicanism, minarchism, monarchism, anarcho-capitalism, etc. into a broad political movement, as the premises of these positions are sufficiently similar. But there is no way to create a big tent movement that can accurately represent the interests of both fascists and libertarians; the premises come into too much conflict.

Second, there is some value in the notion of being a fascist politically while being a libertarian philosophically. This is a position that some people are becoming more and more sympathetic towards. Left-libertarians like to refer to these people as “helicopterists,” so we can use that term to describe this position. What these people tend to believe is that a military dictatorship is necessary or beneficial if we are to establish a libertarian social order and that we cannot simply transition to absolute liberty without first making sure that policies are implemented to push society toward that goals. These people often argue for violent suppression of leftists, which is not what libertarians traditionally favor, and for a general purge within society that would result in favorable conditions for the formation of a libertarian society.

Third, libertarians may take nationalism as a premise and fascists may take property as a premise, even thought these cannot be their ultimate premises due to the aforementioned conflicts. Fascists may advocate for free-market economics insofar as it increases the health of the nation, while libertarians may advocate for nationalism insofar as it strengthens self-ownership, private property, and non-aggression. In this manner, libertarians and fascists can find common ground by using common premises, and they can create a compromise that is palatable for both fascists and libertarians. We touched upon Milton Friedman earlier to show that it is theoretically and practically possible to embrace different premises even though the policy proposals may contradict themselves. Although there can be a degree of collaboration between libertarians who value the nation and fascists who value property, they will still ultimately be fascists and libertarians, respectively. The priority between property and nation determines with which camp people identify.

Finally, it is possible for a private property owner to administer one’s holdings according to the structure of a fascist dictatorship. Being the owner of property means having a right to exclusive control over it, including its governance structure. However, libertarian standards do not permit forcing non-aggressive people to come into such a structure or remain there against their will, so a libertarian running a fascist governance structure within private property will have to be far less oppressive than statist fascists in order to keep a regime populated. This kind of governance, which offers people no voice and free exit, has proven best at limiting state power throughout history. It would also be best for limiting the tyranny of the private property owner that so concerns critics of libertarianism.

A Critique of Libertarian Strategy

Lack of Action

Even the slightest familiarity with most libertarians will show the observer how much libertarians love to talk about the slightest philosophical disagreements, as well as how much time libertarians devote to libertarian literature and propagating the ideas of liberty on the Internet. However, even with that immense passion, most libertarians seem to be averse to actual economic and political action that would increase the amount of liberty in the world. In fairness, some move to New Hampshire for the Free State Project, some work on start-up societies, and there are gray market alternative products sold by libertarians. However, the amount of effort put into learning liberty does not seem to match up with the amount of effort actually spent on advancing liberty in the real world. Libertarian philosophy may win hearts and minds until the end of time, but if libertarians are not willing to go outside the statist quo, there can be no real world change.

Contrast this inactivity with the progressive movement that swept the United States in the early 20th century. The progressives opened public areas, worked on local communities, and did so in order to spread their progressive beliefs. It was a complete hands-on movement intent on creating actual change and composed of people who were willing to work, leave their houses, and participate in their community. If libertarians want to achieve any level of cultural advancement in a libertarian direction, there can be no expectation of it being created by arguing on social media about whether or not abortions or borders are libertarian, but rather by engaging in social activities in a voluntary manner to spread liberty. Recently, a man built a $100,000 dollar staircase for just over 500 dollars for his community, and this great act of voluntary improvement was removed by the state. There are examples over examples of how children have their lemonade stands shut down when they are trying to make some pocket money. There are constant news stories of how adults who do business on a very small scale without any harm and without selling illegal items get shut down due to the lack of a permit. Every time this happens it gets massive media traction. Imagine if all these people were devoted libertarians and used their platform as a way to spread libertarian ideas, how much more exposure libertarianism could get. If these people flew the black and yellow flag and wrote “taxation is theft” on the side of whatever they were making, they could spread the message of liberty. They may be censored or ridiculed, but it would demonstrate how the libertarian philosophy is practical and beneficial.

This does not mean organizing Libertarian Party caucuses or running for office. Rather, it means breaking laws and making sure that breaking those laws will improve the community in which the law-breaker resides. When there are attempts to combat the injustice of the state, there must be people willing to take risks, and some people must be willing to improve their own communities to make their own lives and the lives of their communities better. If there is no one willing to go against the state and no one willing to get arrested, fined, or subjected to other injustices, then mouthing off on the Internet becomes a waste of time. It is good to try to increase the presence of libertarian ideas virtually, in think tanks, or in politics, but real change comes from individuals acting locally to create a more libertarian society.

This need not be non-political; any libertarian could go out, talk to people, hand out fliers, and do whatever else is necessary for the principles of liberty to be spread in a physical manner. But if libertarians cannot organize a local club, cannot make and print out some fliers to hand out, and are thus unable to actually advance the principles of liberty, they will get nothing done. In fairness, there are libertarians in Cuba who build libraries and take action; there are libertarians in Europe who translate great libertarian texts into their own languages. There are many libertarians who already do such things, but nowhere near enough in comparison to the amount of people who are passive libertarian cyber-intellectuals.

Lack of Charisma

Many libertarians are abrasive, intense, and ill-suited for social interaction. This is a problem which tends to arise when any ideology is based on abstract economic and intellectual arguments rather than arguments which are more relatable to the layperson. This means that libertarians must try to become more charismatic if there is to be a chance for spreading the principles of liberty without forceful imposition. Advocates of these principles cannot stay within a bubble of abstract arguments. Libertarians must become more sociable in order to recruit more people to become libertarians. It is easy to see how this has worked every time it has happened; Ron Paul brought more people over to the liberty movement than perhaps anyone else in the history of libertarianism. The intellectuals who have spent a lot of time being sociable (Walter Block, Tom Woods, and Murray Rothbard immediately come to mind) have converted more people than anyone else who wrote some treatises but never personally taught anyone the principles of liberty.

Music and art are great tools when it comes to spreading the message of different philosophical positions, and it seems that everyone else, from communists to fascists, understands this. That is why Ayn Rand was so important to libertarianism and Objectivism; she made philosophy accessible through her works of fiction. Since libertarian philosophy can affect people deeply and show them truths that they never realized before, it is vital that libertarians focus on making free-market and property-based positions more presentable without corrupting the message. Having to read dozens of dry books and have hundreds of intellectual conversations in order to properly and fully understand libertarianism when some good works of fiction and a few bands could expose the philosophy to a much wider audience in a more effective manner is a travesty. Backwordz is one such exciting libertarian project, as they serve to make libertarianism more accessible, but libertarians cannot relegate an important task in spreading the message of the cause to a few projects. Libertarians should focus more on creating works that are accessible to large audiences. There are many people who lack artistic talents, but if one is blessed with these talents in even the smallest capacity, they could use their time more effectively by utilizing these mediums in order to create a more libertarian society and to make libertarianism more palatable.

This is also the case for the “meme war” that has been happening on the Internet. This is a tactic in which the far-right uses poignant viral images to create propaganda that spreads on its own. This can captivate people who might never be convinced by a logical argument. Libertarians have mostly failed at this and have not often demonstrated the humor necessary to make this tactic work. This is just one small factor of the whole picture, but when one considers the possibility of free viral marketing just by demonstrating a small bit of humor, it becomes very odd that there so little focus on this. Furthermore, it is unnecessary to have this one strategy of viral marketing. Libertarians tend to be individuals who are at least moderately wealthy, so it would be easy for them to buy billboards, put up posters, or purchase online ads that direct people to libertarian websites and beliefs that focus on property and justice. Most people have never been exposed to a true representation of what libertarians actually believe, seeing only the gross caricatures of the establishment press and other statist propagandists. Being able to make the movement and the cause more present and more public would greatly increase the number of people who identify as libertarians. One incredible example, simply for comparison, is that of the flat-earthers who put up a billboard. They are a much more fringe community with an obviously false message, and they still managed to generate enough money for a billboard that gained them at least a small amount of media traction. How libertarians have failed to engage in this method boggles the mind.

Ignorance of the Opposition

One more item of criticism for libertarians is how most fail to understand the arguments of their opponents. Many people may have memorized points and counter-arguments from reading Rothbard, Hoppe, and other libertarian theorists, but there is usually a base assumption that the opposition comes mainly from ignorance and not from differences in knowledge, ethics, and sources. All ideas come from somewhere and although most people with those ideas parrot them to others, this does not mean that we can combat these points properly without knowing their intellectual origins. What makes this even worse is that libertarians may have come from the cultural status quo where most people started and understand those arguments; some libertarians may even have had a phase of being socialist without knowing what that would actually imply. However, most libertarians are libertarians in their premises. It is not an intellectual decision to be a libertarian for most people; we all tend to have some degree of libertarianism within our basic assumptions.

It helps a great deal to know where the opponents of property and capitalism are coming from. It helps to be able to assume their perspective without prejudice and be able to dissect their premises and arguments. Of course, by some metric of self-satisfaction, libertarians are able to think that they did something productive by telling socialists that they need to learn basic economics while ignoring the hundreds of years of socialist economic studies. This argument may have worked when socialism was something that people adopted just to be edgy and to rebel against the capitalist status quo, but in the age of the modern intelligentsia, Austrian economic arguments are less prevalent than socialist ones. In essence, libertarians are the ones who need to learn what other people consider to be basic economics if they are to refute socialists.

Furthermore, libertarians assume that everyone who is pro-state would stop being so if the violence of the state was exposed for what it is. This is false, as many people are completely fine with the state being an institution of violence as long as it serves their own interests. No matter how much anyone talks about the state being immoral or violent and how much taxation is theft, there will be a great amount of people who think, in a Hobbesian manner, that without this violence human beings cannot have civilization. These moral arguments may be fine, but libertarians need to present more perspectives that are better suited for people who approach the world more pragmatically. This is especially true for many socialists and alt-righters; they know that the state is violence and a pure forceful institution. Their question about this is simply, “So what?”. Libertarians cannot always change the moral premises of others by trying to get people to understand the conclusions of the personal moral premises that libertarians tend to hold.

Lack of Virtue

No matter the intellectual caliber of particular libertarians, there are a few problems that need to be solved with the ideology if libertarianism is to go forward. There are strategies and perspectives on how to create a libertarian society and what libertarians can do to approach the type of people who are ready to be libertarians. However, the overwhelming majority of libertarian theory focuses on how great everything would be if everyone already lived in a world where there was virtue, without providing methods of how to cultivate this virtue within the population that is to be made libertarian. The other minority focuses on how bad everything is while everyone is in an oppressive statist society, and other areas of concern are seldom talked about. Only in the past few years has there been even a start of sociological inquiry of these issues on a sustained and continuous basis.

Stefan Molyneux advocates peaceful parenting as an actionable solution for making the world freer. Many libertarians say that education is the best solution. Some propose economic solutions to show people how property benefits them. Some advocate violent revolution. But cultivating the sort of virtue that is necessary to maintain a libertarian social order is not so simple. Anyone can parent peacefully, yet still it can turn out that there is no virtue cultivated in the children within a society. People can educate a person who is not virtuous himself and he may not become virtuous when he knows all the facts. Libertarians can show people how property rights may benefit them, but they may still try to undermine it, provided they are not individuals who have the virtue of respect for property rights.

This needs to be a strong point of libertarian tactics; not only how to make people more receptive to a society based on virtuous behavior, but rather how to make sure that the people are sufficiently virtuous to maintain a libertarian social order. Libertarianism needs to come out of the value-free lull where the focus on intellectualism has left it and delve deeper into the fields of sociology, psychology, and other areas where further research is needed for how to increase the virtue within populations. As it stands right now, libertarians may have good strategies for libertarianism and how to create a more libertarian world when libertarianism already has this support, but far less on how to cultivate libertarian virtues within society.

Lack of Breadth

Libertarianism has overwhelming amounts of substance, but the substance it has is very limited in content when it comes to anything other than economics and philosophy. Though this is by design, in that libertarianism itself is only an answer to the question of when the use of force is appropriate, this does not a complete worldview make. Economics is never enough to run a whole society; there must be values and character traits beyond the economic. There cannot be a healthy society in which the only relations are that of material exchange; this kind of society would certainly fall apart as soon as it was revealed as the husk it is. Even though the intellectual side of libertarianism may call for a value-free economic analysis, a pragmatic and objective political strategy, and a philosophy that can create values beyond what people would consider moral, this is inapplicable to many people. Everyone has values, most people have morals, and people want to see these morals reflected in their societies.

This writer has proposed abandoning political libertarianism as a strategy and focusing instead on advancing local autonomy as much as possible. It would serve to make libertarianism more relatable and to show people how libertarianism can serve to bring their values into the world. However, there is much work to be done on this. Only now are the first efforts being made of a very deep examination and expansive practical project.

A Perversion Of Service

Every year on Memorial Day, people visit cemeteries and go to parades in honor of those who died while serving in a government military. Those still serving in these militaries travel down roads normally reserved for civilian use, and the people that these military personnel ultimately oppress celebrate this fact. Meanwhile, politicians and the establishment press take the opportunity that a day devoted to deceased military personnel presents to promote statist propaganda concerning the nature of service and the provision of defense. The general structure of their propaganda narrative is as follows:

  1. We have freedom.
  2. Freedom and the rights associated with it are granted by the Constitution, the state, etc.
  3. Freedom is not free. This is because it is valuable, and valuables will be stolen by thieves and destroyed by conquerors if they are not defended.
  4. The state provides defense of freedom, and is the only means by which such defense can be provided.
  5. A society should revere its protectors, for they perform the functions that allow everyone else to do what they do in peace.
  6. Because of (4), government military personnel are those protectors.
  7. Because of (4), (5), and (6), people should revere the state in general and its military personnel in particular.
  8. Laying down one’s life to protect others is the highest cost that one can pay.
  9. Because of (4), (5), (6), and (8), those who die in military service should receive the highest honor.

Of course, like any effective propaganda, this narrative is a mixture of lies and truth. After all, a complete lie is easy to spot, while a lie wrapped in truth that has gone unchallenged by empirical examples for centuries is well camouflaged. The best way to counter this narrative is to challenge it on a point-by-point basis, examining each aspect and the connections between them for logical fallacies. Let us do this now.

Freedom

First, the statist asserts that we have freedom. Attempts to define freedom are rarely made by those who invoke it in this sense, for to do so would undermine their case irrevocably. However, we may proceed with the dictionary definitions of “the absence of necessity, coercion, or constraint in choice or action,” “the power or right to act, speak, or think as one wants,” “absence of subjection to foreign domination or despotic government,” and “the state of not being imprisoned or enslaved.” In the presence of the state, none of these are possible. The state is a group of people who exercise a monopoly on initiatory force within a geographical area. When people initiate the use of force, they are imposing necessity, coercion, and constraint in choice or action upon their victims. The laws that government agents create and enforce infringe upon the right to act, speak, or think as one wants by punishing behaviors which do not aggress against any person or property. Though the state does occasionally prevent foreign domination, it does this with less efficiency and effectiveness than could private defense forces, and states tend to become more despotic over time. The state imprisons and enslaves millions of people. Those who are left somewhat free are not in such a condition for their own benefit and flourishing, but because it produces superior results from the perspective of human livestock management. That we cannot have freedom under current conditions puts the entire narrative in jeopardy, but let us continue our examination.

Rights

The claim that rights are either a grant from a government or are protected by a government is the second step in the narrative. Leftists favor the former position and rightists favor the latter, but both can easily be shown to be in error. A right is defined as “something to which one has a just claim,” “a moral or legal entitlement to have or do something,” and “the sovereignty to act without the permission of others.” Whether or not a claim is just is independent of whether a government is present. Statists may contend that the absence of government means that there is no final arbiter of the justness of a claim, but there is no such thing as a final arbiter of disputes. Regardless, the truth value of a claim is independent of whether anyone recognizes its truth value, or even whether anyone exists to recognize its truth value. A moral entitlement to have or do something must be argued from first principles; it cannot be granted by a government. A legal entitlement may be granted by a government, but only because a government has forcefully suppressed any competing providers of law and order within its claimed territory. A state apparatus, by its very nature, infringes upon the sovereignty of its subjects to act without its permission through its legislation and enforcement mechanisms.

Moreover, the belief that rights must involve the state occurs because the state has corrupted the meaning of rights. Rights are supposed to be exercised through one’s own action without conferring any positive obligation onto someone else, but statists use the word to refer to a claim upon someone else’s life, property, and/or labor. These so-called “positive rights” are invalid because the state violates the negative rights of other people who are forced to provide for these positive rights.

Loss Prevention

That freedom is valuable, and thus vulnerable to destruction and theft if left undefended is true. But there is a non sequitur fallacy between this step and the belief that the state is necessary for the provision of such defense. In fact, the truth is just the opposite. Besides being the primary culprit behind the destruction of freedom, the state cannot possibly provide for the defense of freedom. As a compulsory monopolist of protection, the state charges what it wishes and uses force to prevent anyone from hiring a competing provider, going into business for oneself, or doing without. A threatening protector is a contradiction of terms, which in any context not involving the state would be appropriately recognized as a protection racket. Again, whatever benefit the state provides is done not to serve the people, but to serve itself. To whatever extent the state enjoys defense, its subjects are imperiled, for whatever means of defense the state has constitute potential means of offense against the people.

Reverence

That a society should revere its protectors is true. The problem comes with the belief that government personnel are the protectors of society. As shown previously, the state cannot provide defense for the people because it is a continuous threat against the people. Since the state is composed of people, it follows that those people cannot be responsible for defense in any absolute sense. They can only defend against other potential sources of exploitation so that the state may have a monopoly over the exploitation of the people. As such, reverence for the state in general and its military personnel in particular is misplaced unless it truly is the least of the evils. Fortunately, this is not the case.

Admittedly, there are no empirical examples of a free market of private military companies providing military defense services in lieu of a government military. A major reason for this is that governments will use as much force as necessary to keep such an idea from being tested, as its success would doom the state by depriving it of its most essential monopoly. Without a monopoly on military force, the state would cease to exist, as the response of the people to its taxes and laws would be to point military-grade weapons at its agents and tell them to stand down or be fired upon. That they are so fearful of such an attempt being successful indicates that even they believe it can work, and if anyone should have the deep knowledge necessary to make such an assessment at present, it should be them.

Without empirical examples, we must logically deduce our way through. The presence of a monopoly with involuntary customers necessarily leads to inferior quality of service and higher costs, as the monopolists need not provide superior quality of service and/or lower cost of service vis-à-vis a competitor. The opening of provision of military defense to a free market of competing service providers must therefore lead to an increase of efficiency, which in practice means superior quality of service and/or lower cost of service. There is no reason why the market should fail to provide a service that is strongly desired by everyone for everyone (except for a few criminals, who want it for themselves but not for their victims), to the point that most people will tolerate the oppressions of statism just to obtain a counterfeit version of it.

The most common criticisms of competing private defense companies are that they will fight each other, that they will lead to rule by warlords, and that they will become a new monopoly on force. Rule by warlords and monopoly on force describe the situation under statism, so if the worst-case scenario is that eliminating government militaries just gets us another government military, all other cases must turn out better than this, making these into powerful arguments in favor of privatizing military defense.

This leaves the concern that the private service providers will fight each other. We must recognize that the current service providers do fight each other, which caused roughly 100 million deaths in the 20th century. As such, the bar of service quality that private military defense providers must exceed is set quite low. Fortunately, private military defense providers would be limited in ways that government militaries are not. A private service provider must bear the cost of its own decisions, and engaging in aggressive wars is more expensive than defensive actions only. A company that sells war is thus at an economic disadvantage against a company that sells peace. Without the government monopoly on legal services granting immunity to private soldiers as it does to government soldiers, the private soldiers would be subject to the criminal punishments made prevalent by the private defense forces in the area in question in addition to vigilantism by individuals. The agencies that decide to fight also must take care not to damage or travel on ground held by customers of other agencies, as this would be considered trespassing, and a trespasser with an intent to murder others in a war is a trespasser who may be killed in self-defense. Thus one could expect to see every private property owner not involved with the warring agencies taking actions to destroy both sides of the conflict whenever they occupy land that is not owned by their customers. With no state to forbid ownership of certain types of weapons, the private property owners would be much more capable of stopping military hardware than they are now. There is no guarantee against such a fight, but there are enough incentives working against it to consider it a remote possibility.

Given the superiority of private defense markets compared to government militaries, the state is not the best option. Thus, we may put aside feelings of reverence for it and its military personnel.

Sacrifice and Honor

It is true that one’s life is the highest cost that one can pay, and that laying it down in defense of family and friends is the greatest sacrificial love that one can display. It does not follow that those who die while serving in a government military have done this. Many people volunteer for military service because they believe that this is what they are volunteering to do. Unfortunately, despite their best intentions, this is not the true nature of their actions. Contrary to statist propaganda, the state does not work for the people, for if this were the case, then the people would be free to fire the state, cease paying for it, and either hire someone else, go into business for themselves, or try to do without. Because the state does not work for the people or, as shown previously, provide defense for the people, those who die in its service are not due the honor of those who lay down their lives to defend others.

It must be said here that just because fallen members of a government military are not due honor, it does not mean that they are due dishonor. Like most other people, they are propagandized to the point of saturation by government schools, churches, establishment media programming, and recruitment advertising. Recruitment personnel then do their best to sell them the military life while making light of the arguments discussed here, if they even acknowledge them at all. The majority of people in a government military are not intentionally evil, but are victims of fraud and lies. The proper response, then, is to attempt to educate living military personnel and those who would follow in their footsteps rather than to engage in displays of disrespect toward the dead (or, for that matter, toward the living).

Conclusion

The desire to protect and serve others is commendable, but a government military offers only a perversion of service. Authentic service of others must be accomplished not through a top-down, coercive, centralized, territorial monopolist like the state, but through the bottom-up, voluntary, decentralized, competition of the market economy. While the state makes defense impossible for its subjects in an absolute sense, there is every reason to believe that private service providers can accomplish this critical task.

Self-defense is one of the most fundamental rights, and the most important personal responsibility, as the abdication of this responsibility endangers all other rights and responsibilities. Of course, there is nothing immoral about hiring help for such a basic need, but the decay of the role of the militia in society has created a vacuum that has been filled by government militaries. The troops are ultimately in the position they are in because too few of us do what is necessary to provide for our own defense and counter statist propaganda. It is therefore because of the selfishness (in the form of risk aversion with respect to confronting aggressors) and irresponsibility of most of the people in the modern West that soldiers are joining government militaries and sacrificing their lives at the behest of politicians in the first place. Until the people right themselves, true defense and service will remain unknown to us.

Ethical Theories at the Murrah Building

On April 19, 1995, Timothy McVeigh and Terry Nichols bombed the Alfred P. Murrah Federal Building in Oklahoma City, killing 168 people and wounding 680. One third of the building was destroyed, along with damage to 324 other buildings and 86 cars, causing $652 million in damage. McVeigh was motivated by his opposition to the United States federal government and his anger over its actions in the 1992 Ruby Ridge incident and the 1993 Waco Siege. He timed the attack to occur on the second anniversary of the burning of the Branch Davidian compound in Waco, Texas.

To most people, McVeigh is obviously a reprehensible criminal whose actions cannot possibly be justified. Some theories of ethics would agree with that assessment, while others would recommend a different outlook. Let us examine the Oklahoma City bombing through the lenses of deontology, consequentialism, and virtue ethics to see how each provides a different perspective on McVeigh.

Deontology

Deontology argues that decisions should be made by consulting moral principles. The rightness or wrongness of an act is thus determined by whether it is in keeping with such principles. Deontological theories include the Kantian categorical imperative, which says that one should act only according to the maxim that one can will that it should become a universal law; moral absolutism, which argues that certain actions are intrinsically good or evil; divine command theory, which appeals to God as the judge of right and wrong; and Hoppean argumentation ethics, which derives moral rules from the act of argumentation.

In all such theories, murder is forbidden because initiating violence to kill someone cannot be in accordance with universal law. By definition, murder is not universal but unilateral; if it would occur in reciprocity, then it is a mutual assisted suicide rather than a case of murder. The people killed by McVeigh in Oklahoma City were not the individuals responsible for the state-sanctioned crimes committed at Ruby Ridge and Waco, and were only tangentially connected to the people who were responsible. Though 99 of the 168 victims were part of the state apparatus, the vast majority were unarmed civil ‘servants’. Only eight of the victims were federal law enforcement agents and six were military personnel. The rest of the victims were civilians, and they were not being used as innocent shields by legitimate targets for defensive force. Thus, a deontological approach finds McVeigh’s actions to be completely unjust and criminal in nature.

Consequentialism

Consequentialism, or teleology, argues that the morality of an action depends upon the result of the action. Consequentialist theories differ on what results they deem important. Utilitarianism seeks the most happiness for the greatest number of people; state consequentialism values order, material wealth, and population growth; egoism prioritizes good for the self; altruism seeks good for others; and rule consequentialism functions much like deontology but uses the consequences of moral rules to select them.

The initial answer that may come to mind is that the consequences of McVeigh’s actions were 168 murders, 680 injuries, and $652 million in property damage, thus his actions were immoral. But as with many complex situations, there is an answer—namely this one—which is clear, simple, and wrong. The straightforward answer is wrong because it ignores the counterfactual of what would have happened between that day and this if the Oklahoma City bombing had not occurred. Of course, it is impossible to know precisely what the counterfactual would be, and this uncertainty is an intractable problem with consequentialism. But this should not stop us from making an educated guess.

If McVeigh had not acted, then the mentality of those wielding state power would likely have been that they could perpetrate such atrocities as the Waco Siege without penalty. After all, they hold a monopoly on criminal justice that allows them to immunize themselves from prosecution. Absent vigilantism, they are thus able to escape punishment for their misdeeds. With this in mind, in the absence of the Oklahoma City bombing, federal agents probably would have been more willing to resort to force in such cases as the Montana Freemen standoff in 1996, the Bundy Ranch standoff in 2014, and the Malheur standoff in 2016. The former and latter cases did not have the personnel involved to be more deadly than Oklahoma City, but the Bundy Ranch standoff could have resulted in hundreds of deaths on both sides if it had turned into a battle. It is impossible to be certain, but McVeigh’s actions may have altered the mentality of government agents to seek peaceful resolutions to such standoffs, which may have prevented many more deaths than the 168 that McVeigh caused.

Ultimately, any consequentialist analysis requires information that cannot be acquired, so we must treat both the possibility that McVeigh altered government responses to resistance groups and the possibility that he did not. If the state would have acted the same regardless of McVeigh’s actions, then McVeigh was an evildoer. But if the Oklahoma City bombing ultimately prevented greater atrocities in the future, such as a shootout at Bundy Ranch, then McVeigh’s actions produced a greater good for a greater number, more order, and more good for others. Among consequentialist theories, only ethical egoism would certainly condemn McVeigh because he brought capital punishment upon himself, which is not a prioritization of good for the self.

Virtue Ethics

Virtue ethics focuses on the character of the moral actor rather than on specific actions. The purpose of examining an action in virtue ethics is to find out what the action says about the character of the moral actor. The means of doing this frequently falls back on deontology or consequentialism. What is considered to be a virtue differs among formulations, and this is subject to the cultural mores of a particular place and time.

The general finding of virtue ethics in this case would be that McVeigh’s character was similar to that of many tragic heroes in ancient Greek dramas. He was motivated by a sense of justice, seeing the United States government murder its own citizens with impunity. But like the tragic heroes of old, he had a tragic flaw that brought about his downfall as well as the destruction of those around him. A tragic flaw in a well-written story could not be an obviously negative character trait, but rather a trait which is positive in moderation but becomes negative when taken too far. McVeigh’s sense of justice went to extremes and blinded him to the fact that his bomb would commit its own injustice against the innocent people caught in the blast.

Conclusion

This exercise shows the stark contrast in results that can come from applying the various normative ethical theories to an extreme act. Deontology absolutely condemns such an act as mass murder. Most forms of consequentialism cannot definitively say much of anything, but they can offer educated guesses and help us see what might make such an act a more tolerable evil than inaction. Virtue ethics offers insight into the character of a terrorist, which helps explain what could motivate someone to such an act of mass destruction. Taken together, these theories give us a comprehensive understanding of the ethics concerning terrorist activity.

On the Supply Objection to the Gold Standard

Since the gold standard was abandoned in 1971, many people have sought to return to such a standard in order to combat inflation and rein in central banks. Keynesians and others who support fiat currency and central banking present several criticisms of this approach. One of these criticisms is particularly nonsensical, but occurs with increasing frequency: that there is not enough gold in the world to back the quantity of currency in existence, and thus returning to gold would set off a deflationary spiral while destroying several industries that depend on gold. Let us address this question from a scientific standpoint, return to economic matters, and address the claimed effects.

Physical Limits

Let us begin by finding the absolute limit of what gold can do for a monetary system. As the United States dollar is the world reserve currency at the time of this writing, it makes sense to use it as the currency to peg to gold. The smallest unit of gold is the atom, and the smallest unit of dollars is the penny. The most extreme possible case would be to set one penny equal to one atom of gold. What would this look like in practice? Any basic text on chemistry can lead us to the answer. The only stable isotope of gold is Au-197, and its molar mass is 196.967. This means that in about 197 grams of gold, or 6⅓ troy ounce coins of the type minted by many governments and private mints, there will be Avogadro’s constant of atoms, which is 6.022140857×10^23. Setting one penny equal to one atom of gold, this is $6.022×10^21 or $6.022 sextillion easily fitting in one’s hand.

This amount of money is so large that people cannot truly understand it due to the lack of a frame of reference for it. Few people will handle anything beyond millions of dollars at any point in their lives. Large businesses may deal with billions of dollars. The most powerful governments have budgets in the trillions of dollars. According to a History Channel documentary, the dollar value of the entire planet is in the quadrillions of dollars, checking in at $6,873,951,620,979,800, and subtracting Earth’s gold content leaves $6,862,465,304,321,880. As the limit of one penny per atom allows one to hold the current market value of a million Earths in one’s hand, it is clear that science imposes no physical limit to make a gold standard infeasible.

Another useful exercise is to try setting the value of all available gold equal to the value of the rest of the planet. The total available gold content at present amounts to 186,700 metric tons. Defining this amount of gold to be worth the above figure of $6,862,465,304,321,880 gives a gold price of $36,756.64 per gram or $1,143,259.40 per troy ounce. This is very expensive by current standards, but current standards do not come close to economizing the entire planet. The actual price would therefore be far lower than this, but this exercise is useful for setting an upper bound.

Current Prices

Perhaps critics of restoring sound money mean to say that the gold standard could not be reintroduced at current gold prices. In this, they are correct; at the time of this writing, gold trades at $1,284 per troy ounce. Multiplied by the 186,700 metric tons of gold available, this gives $7.707 trillion of gold-backed currency, which is not enough for the United States economy, let alone the entire world. The solution, then, is to devalue fiat currencies to fit the available gold supply. According to the CIA World Factbook, the gross world product in 2015 was $75.73 trillion. Covering this with the available gold gives a gold price of $12,616.75 per troy ounce, which is an order of magnitude above current prices, but not outlandish.

Possible Effects

Gold has gained several practical applications in recent times, particularly in medicine and technology. Critics claim that returning gold to monetary use would devastate these industries, along with the jewelry industry. In each case, critics are overreacting. Research toward creating substitutes which work nearly as well in electronics is promising. Gold salts in medicine have numerous side effects, monitoring requirements, limited efficacy, and very slow onset of action. Finally, there is no particular reason why we should care about an industry that produces impractical novelties to the extent of protecting it through fiat currency. It would be better to free up jewelers to do something more productive and helpful to others.

The other major criticism is that returning to a gold standard will cause a harmful episode of deflation. Paul Krugman writes,

“[W]hen people expect falling prices, they become less willing to spend, and in particular less willing to borrow. After all, when prices are falling, just sitting on cash becomes an investment with a positive real yield – Japanese bank deposits are a really good deal compared with those in America — and anyone considering borrowing, even for a productive investment, has to take account of the fact that the loan will have to repaid in dollars that are worth more than the dollars you borrowed.”

But those who are less willing to spend or borrow are necessarily more willing to save, which will allow them to spend more later or fund new businesses and investments. There is also the matter that one cannot hold out forever; one must eventually purchase goods and services. That the technology industry thrives despite producing the most deflationary goods shows that there is nothing harmful about this. It turns out that the value of using a current computer over the next year is worth more than holding out for a more powerful computer next year. It is also true that holding out for more food next month does not work if one cannot survive until then without food now. One may object that this would concentrate wealth in the hands of those who can hold out, but this is a feature rather than a bug because it redistributes resources to those who have been good stewards of resources.

Those who have already borrowed face a larger debt burden in a deflationary environment, and though creditors experience an equal gain, creditors are unlikely to increase their spending to offset the reduced spending of debtors. But again, this is a feature rather than a bug because it incentivizes saving over borrowing while pushing some debtors into default, thus punishing unwise lenders with loss of principal and unwise borrowers with bad credit ratings.

With falling prices, profits and wages usually have to fall as well. But profits are a function of prices and costs, which are also prices. This leaves profits largely unaffected on a percentage basis. Wages are prices as well, and the need to cut nominal wages in a deflationary environment could both incentivize firms to release their worst employees and provide pushback against minimum wage laws.

Finally, there is the belief that the sort of deflation that may be caused by returning to gold would cause a recession. But the above rebuttals deprive this problem of any mechanism by which it might occur. In fact, the empirical evidence suggests that deflation is linked to economic expansion, as occurred in the United States during the 19th century. The only period in which a correlation between deflation and depression does appear is the Great Depression (1929-34), and this may be linked to the central bank policies of the 1920s, which fraudulently inflated the money supply beyond the set gold exchange rates of the time.

Conclusion

While a free market in money would be the most desirable condition from a libertarian perspective, returning to a gold standard is a superior option to that of allowing fiat currency and central banking to continue as they are. The concerns about a lack of gold supply for returning to a gold standard are without merit, and the fears of deflation and devastation to industry are unfounded.

Tucker, Spencer, Libertarianism, and Fascism

On February 18, white nationalist and alt-right leader Richard Spencer was present in the bar of the Marriott hotel that hosted the International Students For Liberty conference. He was invited by the Hans-Hermann Hoppe Caucus, a group of right-libertarians with no official affiliation with SFL. A sign and the claims of several Hoppe Caucus members made it seem as though Spencer was an official part of the event, although he was not.

“We started the Hoppe Caucus with just a small group of people to spread diversity of conversation into the libertarian movement,” said Mitchell Steffen, founding member of the Hoppe Caucus. “We don’t agree with what Spencer believes in a lot of ways, but we still wanted to hear his point of view.”

For the better part of an hour, he and a small gathering of supporters, other listeners, and some SFL attendees engaged in political conversation in a peaceful and mostly quiet manner. Things got more raucous over time, then Jeffrey Tucker and others arrived to loudly denounce Spencer. Tucker left the scene, but those who came with him kept yelling, prompting hotel security to ask the entire crowd at the bar to leave. Spencer requested an escort out by hotel security, which they provided.

“It was really unfortunate how it turned out,” Steffen said. “I think the Hoppe Caucus did a good job of pushing the envelope and exposing hypocrisy though. Spencer’s ideas should be challenged with better libertarian ideas. He should not be bullied.”

The Exchange

First, let us analyze the exchange between Tucker and Spencer, transcribed below from the source video:

“JEFFREY TUCKER: I think fascists are not welcome at an anti-fascist conference! Not welcome! Students For Liberty is about human dignity, about liberty for all and not about fascism and that is what that man represents! You know the only reason you’re here is because of public accommodation laws; otherwise you’d be thrown out immediately, buddy.
RICHARD SPENCER: Oh, its Jeffrey Tucker! (unintelligible)
JT: (unintelligible) Yeah, this hotel, because you’re devaluing this property, my friend.
RS: Oh, really? By you, Jeffrey? I’m not sure you could throw out a fly, little Jeffrey. Hey Jeffrey, I used to read those articles by you, Jeffrey.
JT: Look, you don’t belong here. You absolutely don’t belong.
RS: Oh, I don’t belong here? What?
JT: You know why? Because we stand for liberty.
RS: Do you support the deep state, dude? That’s awesome.
JT: You stand for fascism, and you don’t belong here. Students For Liberty opposes everything that you stand for, buddy.
RS: You tweeted that you support the deep state over Trump. I think you might be a little fascist there, little Jeffrey.
JT: You are a troll. You can’t organize your own conference, so you come to our conference.
RS: That’s not an argument.
JT: You know the last time you tried, you had a bunch of losers in a room making Nazi salutes. That’s what happened at yours.
RS: That’s not an argument.
JT: So you come to our conference and troll us. If you were on Twitter right now, we’d all block you.
RS: I was invited by people here to come speak to them, Jeffrey.
JT: You are a liar! You are a liar! Fascists are liars! (exits)”

Inaccuracies

First, despite potentially misleading statements and signage made by the Hoppe Caucus, Spencer was not technically at the conference. He never went inside the part of the building reserved for the conference that required paid admission, but rather remained in a bar outside which was not reserved for ISFLC participants. Nor did Spencer himself claim to be part of the conference. Tucker is free to voice his opinion that fascists are not welcome at an anti-fascist conference, and although he does not officially speak for SFL, SFL released a statement in support of Tucker’s actions. However, the wisdom of such a position is questionable. The reaction of Tucker and his ilk is precisely why the alt-right is growing. Neutral observers see a fascist engaged in rational discussion while leftists angrily shout him down and cause a disturbance that gets the venue’s security involved, thus making the fascist seem reasonable by comparison.

Tucker then said that SFL is about human dignity, whatever that may mean, which means that it is not really about libertarianism. Libertarianism is a philosophical position on what constitutes the acceptable use of force. It says that initiating the use of force is never moral, but responding to an initiation of force with defensive force is always moral. Libertarianism says nothing about human dignity one way or another. In a libertarian social order, those who overindulge in vices, engage in criminal behaviors, and/or refuse to be productive people could very well find themselves living a life without dignity, especially if their particular community has a more socially Darwinian ethos. To be fair, Spencer is in the wrong here as well; while peaceful methods could partially achieve his stated goals, many of his goals could only be fully achieved by initiating the use of force.

Tucker claimed that Spencer would be thrown out if not for public accommodation laws and was devaluing the hotel’s property. It is impossible to know whether this is so because it is a counterfactual, but the fact that Spencer has been there several times beforehand without incident suggests otherwise. Ironically, Tucker used the pragmatic libertarian case against open borders to justify his outburst. Open state borders are a form of public accommodation, in that they require the force of government to prevent people from using their freedom of association and private property rights to exclude other people. He cannot be unaware of this inconsistency at this point, so we may reasonably conclude that Tucker is being malicious rather than simply ignorant. What is known is that chanting obscenities, as people accompanying Tucker did, diminishes the quality of experience for bystanders, thus devaluing the hotel’s property.

As an aside, one must wonder if Tucker would be so quick to denounce a similar figure who is of a protected class, such as a member of the Hotep movement, which is in many ways the black counterpart of the white nationalist alt-right. Perhaps inviting someone like Ali Shakur would be a more effective move at ISFLC 2018 than inviting Spencer. Then we could see whether Tucker would be consistent or would fear the social justice warriors around him calling him racist.

Spencer asked if Tucker supports the deep state over Trump, and suggested Tucker might be a bit fascist for doing so. This referred to a February 15 article by Tucker, arguing that however bad the establishment may be, Trump could be worse. While his analysis in that article is suspect, the only hint of fascism from Tucker is in his reaction to Spencer’s presence.

Libertarianism and Fascism

Tucker claimed that SFL stands for liberty while Spencer stands for fascism, and thus Spencer did not belong there. Let us examine the relationship between libertarianism and fascism, for there has long been a link between the two. Ludwig von Mises wrote favorably of fascism in 1927, saying,

“It cannot be denied that Fascism and similar movements aiming 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. But though its policy has brought salvation for the moment, it is not of the kind which could promise continued success. Fascism was an emergency makeshift. To view it as something more would be a fatal error.”

Mises was prescient on the matter of how fascism in particular and reaction in general arises. There is no need to fix that which is unbroken, so a healthy social order will contain nothing to the right of conservatism, meaning the desire to maintain the status quo. Reactionary thought arises when a society makes a mistake and the social order becomes unhealthy, and fascism in particular arises as a response either to the threat of a communist takeover or to the suffering caused by socialism. Libertarianism and reaction are pieces of a whole, and libertarianism and fascism can work together in some circumstances because they share the common enemies of democracy, socialism, and communism. There is a danger here, as Mises would learn the hard way when fascists forced him out of his academic position in Vienna and away to America, but history clearly demonstrates that as bad as fascism can be, communism and socialism wreak more havoc.

The 1973 Chilean coup d’état led to another confluence between libertarianism and fascism. Before Augusto Pinochet took power, Chile was suffering from 140 percent annual inflation and contracting GDP under Marxist leadership. Pinochet was willing to listen to Milton Friedman’s students, and although the Chicago School of Economics is not as libertarian in disposition as the Austrian School, this led to an important series of market reforms and improvements in the mid-1970s and the 1980s known as the Miracle of Chile. These policies were continued after Pinochet’s rule ended in 1990, and the percentage of people living in poverty was reduced from 48 percent to 20 percent from 1988 to 2000. In 2010, Chile was the first South American nation to win membership in the Organization of Economic Cooperation and Development, an organization restricted to the world’s richest countries.

In more theoretical terms, if a private property owner under libertarian standards wishes to administer his estate after the form of a fascist dictatorship, it is his right to do so. Being the owner of the property means that he has a right to exclusive control over it, including its governance structure. However, he cannot force people to stay, so a libertarian fascist will have to be far less oppressive than statist fascists in order to keep his regime populated. This kind of governance, which offers people no voice and free exit, has proven best at limiting state power throughout history. It would also be best for limiting the tyranny of the private property owner that so concerns critics of libertarianism. This sort of libertarian fascism is not what Spencer advocates, but Tucker’s claim that fascism is necessarily opposed to libertarianism is both logically false and contradicted by the historical case of Pinochet’s Chile.

Trolling, Heiling, Blocking, Lying

Tucker claimed that Spencer came to ISFLC because he could not organize his own conference, then contradicted himself by referencing Spencer’s National Policy Institute Conference in November 2016 at which Spencer said, “Hail Trump! Hail our people! Hail victory!,” and several people in the audience responded with Nazi-style salutes. Though Spencer’s conference was much smaller (275 attendees versus 1,500+ attendees), Tucker’s claim is clearly false.

Tucker accused Spencer of being a troll and of lying about being invited to the venue. Spencer was not lying about being invited, as the Hoppe Caucus invited him and Spencer never went into the part of the building reserved for ISFLC where he was not invited. Whether Spencer is a troll or not is mostly a matter of opinion. He is not the most informed person, having been caught in numerous errors of fact throughout the years, but he was engaging in a peaceful discourse. Being offended was a choice made by Tucker and his ilk because Spencer was attracting enough attention to make the SFL establishment uncomfortable. It is telling that Tucker and company would resort to causing a disturbance and involving security forces because his side appeared to be losing in the marketplace of ideas that night.

Tucker said that if the confrontation had occurred on social media rather than in the physical world, then all ISFLC attendees would block him. This is another untestable counterfactual, but judging by the amount of people engaging with Spencer, Tucker’s claim stretches credibility.

Aftermath

The Hoppe Caucus released a statement on their Facebook page, saying,

“The Hoppe Caucus hosted Richard Spencer at ISFLC not because we were trying to start some kind of commotion, but rather an important dialogue. Hans-Hermann Hoppe invited him to his own Property and Freedom Society Conference several years ago for that very reason. After all, event organizers thought it would be a good idea to have leftists and even full-blown communists at the event as apart of the ‘big tent.’ So why not discuss the alternative right? Why not enlarge the tent a little bit further? Furthermore, who gets to define the tent? Is it the big money funders? Is it the oligarchs? Is it is the intellectual elite? Or is it the rank-and-file libertarians? These are all questions we should be pondering considering what happened this weekend.”

SFL has declared that “[t]hose responsible for the disruption have been identified, and are no longer welcome at Students For Liberty events.” Again, this is their right, but Spencer was not inside the event proper and attempting to silence Spencer and the Hoppe Caucus only makes them look like winners of the debate to a neutral observer.

Robby Soave demonstrated an ignorance of the facts of the case and libertarian principles, as well as political autism concerning group dynamics in his write-up of the matter. This would not be so notable, except that media outlets from Salon to The Blaze ran with his deeply flawed narrative. But this is to be expected, as accepting a narrative from someone else is easier than researching and thinking for oneself.

Overall, this incident illustrates why the libertarian moment seems to have passed and the alt-right movement continues to grow. Regardless of what one may think of Tucker, Spencer, fascism, or libertarianism, the tactics employed by Tucker and his ilk ensured that Spencer and fascism emerged victorious while the flawed application of libertarian ideas by those who either do not understand them or intentionally misuse them harmed the cause of liberty.