Agreeing With Statists For The Wrong Reasons: Cryptocurrency Bans

Since shortly after its invention, cryptocurrency has had the attention of central bankers and government regulators all over the world. Without the slightest hint of self-reflection, they have repeatedly warned that Bitcoin, Litecoin, Ethereum, Ripple, and all the rest may be scams or tools to be used by terrorists, drug dealers, money launderers, and other ne’er-do-wells. Several countries have either considered cracking down on crypto exchanges or have already done so. Sometimes satire just writes itself; the fiat currencies that they create and inflate are far more commonly used in the criminal underworld, not to mention the criminal overworld that they run. Speaking of scams, currencies that lose 95 percent of their value over a century have proven quite effective at snatching the wealth out of people’s pockets without them even knowing it.

But perhaps the politicians and legacy financiers are on to something with their desire to ban cryptocurrency. Let us see how government efforts to ban crypto could actually strengthen crypto and do themselves in, and thus why one might agree with statists for the wrong reasons.

If cryptocurrencies are banned, they will not magically disappear, nor will many of the people who use them stop doing so. After all, did bans on drugs or guns ever eliminate those? Of course not; both are more common where they are banned than where they are legal but heavily regulated. Cryptocurrencies perform valuable services for people, and that which has a demand will have a supply. If this cannot happen legally, then it will happen illegally, as with any other commodity. States are good at destroying other centralized entities, but disrupting a decentralized system with no clear point of attack has never been their strong suit. Just look at how much copyrighted material is illegally available online. States cannot stop it because every time they arrest someone, seize a server, or shut down a website, dozens more pop up to replace them. So it would be with cryptocurrencies and sites that accept them. Showing such bans to be ineffective will be an important propaganda victory for crypto users, as will the very fact that it was tried. For why would the state and its central bank have to ban competitors unless their money was too inferior to compete?

To be fair, the blockchains and websites that do come under government attack may have some difficulties. Government hackers may be able to compromise a blockchain with weak cryptography or a website with weak security measures. But adversity breeds innovation, and most people who hack computers for the state have those jobs either because they lack the skill to make more money in the private sector or because the state has some criminal evidence hanging over them. The former are incompetent, while the latter have an incentive to do the minimum to stay out of trouble instead of their best work. Just as website owners appreciate script kiddies who think they can hack for the free security testing they provide, so will cryptocurrency developers come to appreciate attempts by government intelligence agencies to rewrite the blockchain. Customers, meanwhile, can thank the state for providing the electronic equivalent of a eugenics program, killing off the weak currencies and websites to make room for the strong.

On the subject of customer benefits, a ban could make cryptocurrency trading very profitable. Shutdowns and rumors of shutdowns of these venues have already caused exchange rate volatility, presenting excellent buying opportunities. Should a more concerted effort occur, cashouts by people who want to be law-abiding could provide a better opportunity for scofflaws than anything thus far. This process would get the financial establishment out of the crypto world, and much of their financial trickery with them. A more honest marketplace is a better marketplace. Meanwhile, the culture of crypto would return to its anarcho-captialist roots, as those would be the people still using it.

Again, banning something does not get rid of it; it simply goes underground into the black market, which has several important side effects. First, the amount of violence involved in a trade increases, as official means of dispute arbitration are no longer available. But the nature of blockchain technology counters this effect. That is why Silk Road was so popular; it reduced violence in the drug trade by using technology to provide peaceful means of resolving disputes over drug deals while giving users higher quality products. Second, the risk of arrest and the security measures to mitigate that risk drive up prices. This stands to make a tidy profit for those who buy crypto during the cashout before the ban and sell it on the black market afterward. Third, while the state can easily gain information concerning taxable income from legal, regulated exchanges and go after customers who do not give the taxman his cut, they will have a much harder time tracking all of the black market trades that would occur on a peer-to-peer basis in the absence of an exchange. In the words of Napoleon Bonaparte, “Never interrupt your enemy when he is making a mistake.” If Leviathan wants to cut off one of its own food sources, then by all means let it.

Another effect to consider is the migration of legal businesses. If the exchanges and merchants are banned in one country and do not want to keep operating illegally, then they will move to other countries that either want to host or lack the means to ban them. In practice, this means that the cryptocurrency economy will shift toward third-world countries without stable governments. To the extent that this has already happened, it has given people who lacked basic modern economic functionality the financial tools they need to begin improving their lives. Banning crypto in the most developed countries will help the poorest countries by sending jobs there. The resulting localization of usage would lead to cryptocurrencies being used more as money and less as technological curiosities or speculative vehicles, leading to exchange rate stabilization and greater economic security in such places. This would do more than any foreign aid program to lift third-worlders out of poverty, without any of the bribery that enriches despots and provides operational funding to war criminals.

Finally, banning crypto will motivate agorism more generally. With the official link between the fiat economy and the crypto economy severed, some people on the crypto side will end up staying there, especially if they had no success in the legacy system. Necessity is the mother of invention, and these people will have to innovate in order to survive. This has the potential to create the sort of dedicated counter-economics that can support an effective and hostile challenge to the globalist establishment. Friedrich Nietzsche once wrote, “That which is falling should also be pushed.” How much better it is when that which is falling manages to push itself. This, more than anything else, is why one should agree with statists for the wrong reasons when they seek to ban cryptocurrencies.

Book Review: Reactionary Liberty

Reactionary Liberty is a book about libertarian philosophy by Robert Taylor that approaches this and related subjects from a reactionary perspective. The book is divided into fifteen chapters, with a short introduction preceding.

Taylor begins with a four-page introduction in which he explains his motivations for writing the book. Mostly, this involves the decisive leftward shift in American libertarianism since the Ron Paul presidential campaigns of 2008 and 2012, including a notorious open letter to Paul read at the 2015 International Students for Liberty conference and Gary Johnson’s disastrous presentation in 2016. He briefly explains what is wrong with left-libertarianism and gives an outline of the structure of the book.

In the first chapter, Taylor begins with the non-aggression principle (NAP), self-ownership, and private property rights. Although Taylor notes the important distinction between just property and currently-held property, he fails to properly account for the role of conquest in determining property rights over the long term. Taylor goes on to explain the social and economic difficulties that arise without secure property rights. The failures of central planning are discussed, as are the differences between negative and positive rights. He lays out the history of natural law in Western philosophy, beginning with early Christian thinkers, continuing through Enlightenment philosophers, and culminating in Hans-Hermann Hoppe’s argumentation ethics. Taylor contrasts this with the state, which routinely violates natural law and rights. He details the many crimes of nation-states, war and debt slavery being chief among them. Taylor concludes by proposing an alternative to Marxist class theory which vilifies the state rather than the capitalist, and elevates the producer rather than the parasite.

The second chapter deals with the Austrian School perspective on the subject. Taylor takes the reader through praxeology, the action axiom, marginal utility, and the role of prices in efficiently allocating resources. Next, he explains why government and central bank interference with prices is so destructive. The section on money deals with the history of money according to the regression theorem, beginning with barter and commodity money, then progressing to precious metals and receipts for those metals. Taylor shows the reader that modern fiat currencies are a corruption of these receipts into instruments of inflation and debt slavery that facilitate unduly risky financial behavior, state largesse, and wars. In the Austrian view, these behaviors fuel the business cycle of booms and busts by distorting interest rates, which leads investors astray.

Spontaneous order and free markets are the subjects of the third chapter. Taylor begins with the economic calculation problem, the knowledge problem, and public choice theory, showing that central planning cannot succeed because it cannot calculate prices without the market and is further hampered by cynical concerns. He then covers the concept of spontaneous order, making the important and oft-overlooked observation that “there is no such thing as an unregulated market; the issue is, rather, who is doing the regulating.” These regulations take the form of trust, reputation, and freedom to dissociate, unless the state interferes by imposing its coercive regulations. Taylor frames the difference between state and market in terms of who gets profits and who suffers losses. The state privatizes profits and socializes losses, while the market does the opposite. Next, Taylor proposes the term marketization to describe the proper procedures for converting state monopolies into free-market entities, as privatization has acquired the meaning of turning over state monopolies to politically-connected oligarchs, as happened in Russia when the Soviet Union collapsed. He concludes the chapter by providing an outline of how businesses may function in a purely libertarian market while noting that the particulars can only be observed in the future, not precisely predicted in the present.

The fourth chapter offers a much-needed treatment of Cultural Marxism, a concept often (and incorrectly) dismissed by leftists as a conspiracy theory. Taylor traces its roots to the failure of political and economic Marxism in Europe after World War I, at which time Antonio Gramsci and Georg Lukacs resolved to apply Marxism to culture and use it to destroy traditional Western culture, which they faulted for the failure of communism to take root in most of the West. Taylor traces the ‘long march through the institutions’ from its beginnings in the 1930s all the way to its modern manifestations of identity politics and campus craziness. He calls on libertarians to refute Marxism’s cultural application, just as they defeated its economic application. The next section begins to do this by making the case against egalitarianism, showing it to be both impossible and self-defeating in practice. The second half of the chapter traverses more dubious ground in the form of r/K selection theory. This is an interesting analogy for attempting to understand political dynamics, but it places too much emphasis on nature instead of nurture and encourages dichotomous thinking in complex problems. That being said, it correctly suggests that some authoritarian leftists are beyond reason. The chapter ends with an explanation of the necessity of traditional social and sexual norms, as well as how and why Cultural Marxists have attacked them.

Decentralization is the focus of the fifth chapter. Taylor gives the reader a history lesson in the creation of Western traditions and common law through decentralized institutions after the fall of the Roman Empire. He blames centralization elsewhere in the world for preventing those peoples from enjoying the liberty and prosperity of Europeans. Turning to America, these two descriptions show the difference between what the United States was supposed to be and what it has become. As a remedy, Taylor proposes breaking up the US into at least 100 smaller territories. He concludes the chapter by praising those who have taken a strong stand for decentralization in the face of oppressive state power.

The sixth chapter attacks state power as a concept. Taylor explains how people are ruled indirectly through propaganda and mythology rather than directly by force, as the masses are sufficiently numerous and armed to defeat such an effort. He discusses the role of government schooling in indoctrinating the masses to accept such an arrangement, as well as the insufficient efforts to resist the imposition of compulsory indoctrination in the 19th century. The concept of situational Leninism comes next, followed by an overview of famous psychological experiments that demonstrate the willingness of people to obey authority toward reprehensible ends. After this, the role of language control and thought policing in maintaining authoritarian leftist control is examined. Taylor finishes the chapter with Ludwig von Mises’ concept of statolatry, in which statism becomes a sort of secular religion.

The attack continues in the next chapter, as Taylor turns to the flawed ideas of minarchism. He returns to the American example to show how limited government does not stay limited. He explains that the Constitution was not actually written to limit government, contrary to popular belief. It gave the federal government more power than it had under the Articles of Confederation, which Taylor praises in relative terms. He shows how Americans of the time were deceived, taking the reader through the tax rebellions of the 1780s-90s and the Alien and Sedition Acts. In the next section, he contrasts traditional monarchies with modern democracies, finding the former to be far less limited and more destructive due to inherent incentive structures. The chapter concludes with a strong explanation of why democracy grows the state and harms the cause of liberty.

In the eighth chapter, Taylor addresses police statism and what Samuel Francis termed ‘anarcho-tyranny’, a situation in which real crime goes unpunished while those who try to defend themselves are attacked by the state. He begins by noting the difference between a peace officer and an agent of the state. His description of several US Supreme Court cases is accurate, but misses the larger point that a coercive monopoly has no enforceable obligations because no one can enforce obligations against them, regardless of any court rulings. Taylor reviews Cultural Marxism through the lens of anarcho-tyranny, then explains some of the more obnoxious leftist behaviors in terms of Saul Alinsky’s Rules for Radicals. The successes of the alt-right are explained in terms of their willingness to use the left’s tactics against them, unlike conventional conservatives. Next, he covers the origin of modern policing in the UK and the US, then proposes a private alternative to state police forces. The last section contemplates violent resistance against the state, though not with nearly the length and depth that the topic deserves.

While the eighth chapter considers the enforcers, Chapter 9 is concerned with what they enforce. Taylor begins by illustrating just how much poorer everyone is today as a result of lost economic growth due to regulations. Next, he refutes the progressive narrative about the antebellum South and the industrial captains of the 19th century, showing the negative aspects of both to be the result of government intervention rather than its absence. He then profiles James J. Hill, a largely forgotten hero of free-market capitalism in the late 19th century. Hill’s good deeds are contrasted with those who used the state to get undue favors and suppress competition. Taylor also corrects the record on John D. Rockefeller. The following section covers the history of expanding regulations after the Civil War, through the Progressive Era, and on to the present. He accuses those who point to regulations as the cause of improvements in safety and reductions in pollution of committing the broken window fallacy and ignoring the fact that some regulations have made people less healthy. The chapter concludes with many examples of faulty regulations that do more harm than good.

The transition from voluntary mutual aid to coercive welfare statism is the subject of the tenth chapter. Taylor introduces the subject with the age-old statist question, “Without government, who would take care of the poor?” Of course, one must begin by pointing out that government does no such thing, as Taylor does. He spends the first part of the chapter educating the reader about mutual aid societies, which were common before the Progressive Era but were destroyed by government intervention into the healthcare and insurance industries. Taylor shows how the state has reduced the supply of medical care, thus increasing its cost and decreasing its availability. Unfortunately, Taylor’s approach ignores the Social Darwinist perspective that natural selection should be allowed to remove the least successful humans from the gene pool. The second half of the chapter debunks at length the myth of Scandinavian socialism.

The eleventh chapter deals with civil disobedience. Here, Taylor stumbles in the way that most libertarians do, in that he fails to understand raw power, celebrates small victories that will not occur on a large scale, and confuses the downfall of a particular regime with ending the state itself. He does this even while reciting the history of preparedness for the use of force among civil rights leaders and noting what the state has done to leaders of nonviolent resistance efforts. Taylor also manages to celebrate the effects of Western degeneracy among Middle Eastern youth. His encouragement of government agents to refuse unjust orders, leak information detailing abuses to the public, and otherwise engage in whistleblowing is more on point, though he notes the powerful incentive structure against doing so. The second half of the chapter details a plethora of private alternatives to services which have long been monopolized and/or heavily regulated by the state.

The growth of cryptocurrency and other peer-to-peer technologies is the focus of Chapter 12. Taylor provides a decent layperson’s overview of Bitcoin, then moves on to practical applications of cryptocurrency, such as funding dissidents suppressed by legacy financial networks, evading capital controls, and engaging in commercial activities forbidden by the state. Next, he covers the P2P revolution, which has greatly expanded liberty and privacy online and in the physical world. The remainder of the chapter runs through various examples of how P2P and blockchain technologies have solved problems and exposed corruption.

In the thirteenth chapter, Taylor addresses the open-borders dogma held by many libertarians. He demonstrates that open borders and forced integration are a form of the aforementioned anarcho-tyranny, with closed state borders being sub-optimal but less evil. The role of forced diversity in creating internal conflicts that lead to less liberty is considered, as is the biological phenomenon of kin selection in creating cohesive groups. Taylor makes the case that open borders are contrary to private property rights because in order to have open borders, the state must override the wishes of property owners who do not want migrants to enter. He then examines the history of US immigration policy from 1790 to the present, noting the shift in demographics admitted after 1965. The contention that the real problem is the welfare state rather than demographic shifts is rebutted both on the practical grounds of American politics and with the counterexample of European nations surviving socialism but falling into turmoil due to migrants.

The fourteenth chapter furthers the themes from Chapter 11 by discussing secession, nullification, and political migration. Taylor notes the myriad benefits of secession, but only briefly mentions the history of larger states violently suppressing such movements. Next, he covers the history of both legislative and jury nullification in opposing unjust laws. Taylor’s exploration of political migration is rather America-centric, but it can be adapted to other situations. His praise for the Free State Project comes off as overzealous, given the thoroughly leftist nature of that organization. He finishes the chapter with a concept called the Benedict Option, in which those who wish to preserve a tradition and begin a restoration retreat from the public and urban life of a degenerate culture.

The final chapter of the book is an argument against democratic government. This reads much like Hoppe’s Democracy: The God That Failed, quoting and borrowing from it extensively as Taylor explains the perverse incentive structures inherent in democracy and makes the case that monarchy has a superior incentive structure. But unlike Hoppe, Taylor contemplates physical removal as a means of achieving a libertarian social order in addition to a means of maintenance. As Taylor writes on page 283, “Economics teaches us that there is no such thing as a free lunch. But in order to achieve and maintain a libertarian social order, there will be free helicopter rides.” His defense of Augusto Pinochet’s actions in Chile and Lee Kuan Yew’s rule in Singapore as better than the alternatives is common in right-libertarian circles, but his defense of Francisco Franco goes a bit too far. Taylor ends with an exhortation to and description of a libertarian revolution, but this is, as before, too brief.

Overall, the book is good, but not great. For a book called Reactionary Liberty, it could have used more reaction in the form of lengthy explanations of traditional norms and power dynamics. Taylor seemed to lack an editor and proofreader, as some typos survived in very unfortunate places that render a few sentences absurd. A few chapters can become tedious when Taylor features a laundry list of examples. That being said, it is a strong presentation of right-libertarianism that is impeccably sourced.

Rating: 4/5

The Not-So-Current Year: 2017 In Review

Though the specific demarcation of the passage from one year into another is a rather arbitrary social construct, it does provide a useful annual period for self-examination and remembrance. Now that 2017 has entered the history books, let us take a look back at a year’s worth of essays and review the not-so-current year.

We begin, of course, with last year’s article of the same kind. Some articles in this list are sequels to articles in that list. Aside from that, we may move on.

I began 2017 by addressing a recurring story throughout the 2016 election campaign; that of Russia hacking the DNC and phishing Hillary Clinton campaign chairman John Podesta’s email system. I argued that Russia would have been justified in doing not only this, but in actually altering the election to cause Donald Trump to win. I would later use this piece as an example in a guide on how to argue more sharply in order to throw opponents out of their comfort zones. The story lingered on, so I published a sequel detailing the benefits of a Trump-Russia conspiracy. The left’s activities after the election became ridiculous, so I decided to give them some free advice.

My first list of 25 statist propaganda phrases and some concise rebuttals was a major hit, so I started planning a sequel. I had no intention of taking almost two years to compile 25 more statist propaganda phrases to refute, but better late than never, I suppose.

Donald Trump became the 45th President of the United States, which of course meant that Gary Johnson did not. I explored in detail what was wrong with Johnson’s campaign that made him not only lose, but fail to earn 5 percent of the vote against two of the least popular major-party candidates ever to seek the Presidency. Once Trump was in office, the responses to his trade policies among mainstream analysts led me to explain why many of them are politically autistic.

Book reviews have long been a part of my intellectual output, but I decided to start doing more of them in late 2016. This trend continued throughout 2017, as I read and reviewed The Invention of Russia, The Age of Jihad, In Our Own Image, Come And Take It, Against Empathy, Level Up Your Life, Islamic Exceptionalism, The Science of Selling, Closing The Courthouse Door, Open To Debate, Calculating the Cosmos, The Art of Invisibility, Libertarian Reaction, and The Euro.

Antifa grew from a nuisance that rarely affected anyone other than neo-Nazis into a serious threat to anyone who is politically right of center and/or libertarian who wishes to speak in a public venue. A comprehensive strategy to defeat them was necessary, and I was happy to provide one. Kyle Chapman grew weary of Antifa’s antics and led the effort to take up arms against them, becoming known as Based Stickman. I praised him in song. After the events of February, April, and May Day, I revised the strategy.

The Walking Dead comic series and the television show based on it contain many themes which are of interest to the student of libertarian philosophy. I explored the many ways in which Negan’s group resembles a state apparatus. The first part covers the sixth season of the show, and the second part covers the first half of the seventh season. At least three more parts will come next year.

‘No Particular Order-ism’, or the belief that libertarians should take whatever reduction in the size and scope of government they can get, has become common among the more radical members of the Libertarian Party. I explained why this approach is misguided.

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. This did not go over well with Jeffrey Tucker, who loudly denounced Spencer, after which security removed everyone from the bar. I wrote about the incident and the philosophical underpinnings of it.

Sometimes, the lens of examination is best turned inward to correct one’s own missteps. Such was the case for an article I wrote in 2014 about the nature of fake libertarianism, so I published a revision.

Theories concerning the creation, acquisition, trade, inheritance, and defense of private property form much of libertarian philosophy. The role of conquest in the determination of property rights had gone largely unexplored, so I decided to remedy the situation.

Terrorism struck in London on the anniversary of the Brussels attacks. I wrote a list of observations on the event.

I argued against more amendments to the United States Constitution, namely the Second and the Eleventh.

A chemical weapon attack occurred in Syria, which led to US intervention via a cruise missile strike. I wrote a list of observations on the event.

Keynesians and others who support fiat currency and central banking frequently claim 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. I debunked that claim.

On the anniversary of the Oklahoma City bombing, I applied ethical theories to the event to gain a deeper perspective of what happened and the aftermath of the event.

The primary aim of politically active libertarians is to limit and reduce the size and scope of government, as well as to eliminate as much state power as possible. I made the case that in order to do this, it may be necessary to temporarily do the opposite.

On May 8, Fritz Pendleton published an article at Social Matter in which he argued that liberty is best preserved by authority rather than anarchy. He then proceeded to launch a misguided attack against libertarianism, all while misunderstanding authority, anarchy, liberty, and the nature of a libertarian social order. I rebutted Pendleton’s case on a point-by-point basis.

Fashion trends can be a useful barometer of the health of a society. I explained how the trend of clothing that is designed to mimic the appearance of wear and work for those who think themselves above the sorts of activities that would produce these effects naturally indicates that a revolution may come soon.

Memorial Day provides an opportunity to promote statist propaganda concerning the nature of service and the provision of defense. I decided to do the opposite.

The immediate danger standard says that using force against someone who is not presenting a physical threat at the exact moment that force is used constitutes aggression, and it has become far too commonly advocated in libertarian circles. I explained why it is wrong and why it has gained prevalence.

On June 14, James Hodgkinson opened fire on several Republican members of Congress and their staffers while they were practicing for the annual Congressional Baseball Game for Charity. I wrote a list of observations on the event.

The Supreme Court ruled against the stays on Trump’s travel ban, but he missed a greater opportunity by letting them decide rather than ignoring the courts. I explained how and why.

Political rhetoric has grown increasingly heated, with violence erupting as a result. I showed how democracy is the root of this problem and how abolishing democracy is the solution.

The meme of throwing one’s political rivals out of helicopters has become popular among certain right-wing and libertarian groups in recent years. Unfortunately, people from all over the political spectrum tend to misunderstand the historical context of the meme, and thus interpret it incorrectly. I wrote an overview of this context and explained why helicopter rides may not be the best option.

I welcomed Insula Qui, the first additional writer for Zeroth Position, in July. He provided two articles to keep the site going while I was preparing for, participating in, and recovering from the Corax conference in Malta. A piece describing the problems that led to the call for net neutrality and recommending against more state inteference in the Internet came first, followed by a critique of common libertarian strategies to date. Speaking of the Corax conference, a revised version of my talk may be found here, as they own the rights to the original. A topic that came up in the talk that needed further comment is that in the discussion of proper behavior beyond the basics of libertarian theory, right-libertarians in general and libertarian reactionaries in particular will use the term ‘degeneracy,’ but they do not always properly define the term. I attempted to do so.

In the August 2 episode of the Tom Woods Show, he asserted that libertarians and fascists are completely contradictory political perspectives and could never be combined, and that when one embraces fascism, one must have relinquished one’s libertarianism, as there is no other solution that would make sense. Qui countered these assertions and delved deeper into the relationship between libertarianism and fascism than I had previously, which is not as inimical as one might think.

An alt-right rally in Charlottesville, Va. on August 11-12 turned violent, with three deaths and about 20 injuries. I wrote a list of observations on the events. In response, the large technology companies of Silicon Valley, which have become increasingly hostile to right-wing and libertarian content creators over the past decade, ramped up their censorship efforts. I proposed a novel and radical plan to deal with this problem so as to avoid public utility regulation.

I welcomed Benjamin Welton, our second additional writer, in September. I had meant to write an article about using the historical concept of outlawry to deal with violent illegal aliens myself, but time constraints led me to outsource the project. He then explored several historical examples of private military defense, finding that something novel must be created in order to defeat the state and maintain a libertarian social order.

In the wake of two major hurricanes, the usual complaints about price gouging were made yet again. I explained why price gouging is actually beneficial.

Qui wrote a piece about the limits of the applicability of libertarian philosophy, explaining that humans can fall into the categories of personhood or savagery, and that it is important to deal with each accordingly.

Catalonia held a referendum to secede from Spain and become an independent nation on October 1. This was met with force, and much hostility ensued. I wrote a list of observations on the events.

Qui examined the role of the modern concept of citizenship in advancing a particularly insidious form of totalitarianism.

On October 5, the New York Times published an opinion column by Michael Shermer in which he argued that the rule of law is a bulwark against tyranny, but guns are not. I thoroughly rebutted his arguments.

Welton explored the history of judicial corporal punishment, then made a case for restoring its use as a replacement for imprisoning lesser criminals.

The debt ceiling became a political issue again. As it incites financial panic for no good reason and hides important truths from common view, I advocated for its elimination on formalist grounds.

Capitalism and consumerism are distinct phenomena, with the latter caused by high time preference, which in turn is caused by the flaws inherent in modernity. Qui explained this at length.

I welcomed Nathan Dempsey, our third additional writer, in November. He runs a project called Liberty Minecraft, and wrote an introduction to the project.

The relationship between libertarianism and racial politics has become a controversial issue in recent years. Views on the issue run the gamut from complete opposition to imperative alliance, with nearly every conceivable position between being advocated by someone noteworthy. Many libertarians either provide the wrong answer or are afraid to address the question, so I decided to address libertarianism and support for ethnic nationalism.

Black Friday is revered by most libertarians as a celebration of free-market capitalism. I updated my explanation of why this reverence is misplaced. I weighed in on holiday shopping again due to some misguided criticism of computer programs designed to scalp popular gifts. Finally, I detailed the problems with Santa Claus.

Qui offered a message of hope in dark times by demonstrating how the socialists and anti-capitalists of today are not usually as fanatical as those that the early libertarians opposed, then offered advice on how to argue against them. He quickly followed this with an explanation of his concept of autostatism, which closely echoed one of the other presentations from the Corax conference. He then dealt with traditional views on degenerate behavior, and how a compassionate, non-enabling approach is necessary.

Due to surging exchange rates, the opening of Bitcoin futures, and the likelihood of Bitcoin exchange-traded funds in the near future, there is renewed mainstream interest in Bitcoin and other cryptocurrencies. There are benefits of cryptocurrencies which will be cheered by political outsiders to the chagrin of the establishment, and I listed eight of them.

Qui finished out the year by explaining why individualism and nationalism are not as incompatible as many people believe.

All in all, it was an interesting year full of occasions to make sharp libertarian and reactionary arguments. May 2018 bring more and better. Happy New Year!

Eight Politically Incorrect Benefits of Cryptocurrency

Due to surging exchange rates in the past few months, the opening of Bitcoin futures, and the likelihood of Bitcoin exchange-traded funds in the near future, there is renewed mainstream interest in Bitcoin and other cryptocurrencies. Mainstream investors tend to be attracted to the profit potential, portfolio diversification, and technological curiosities of cryptocurrency. But there are other benefits of cryptocurrencies which may scare away the average investor. Let us consider eight activities which can be performed with or aided by Bitcoin and its alternatives that will be cheered by political outsiders to the chagrin of the establishment.

1. Tax Evasion

Charles Stross famously complained that Bitcoin

“looks like it was designed as a weapon intended to damage central banking and money issuing banks, with a Libertarian political agenda in mind—to damage states ability to collect tax and monitor their citizens’ financial transactions.”

The problem is that he views this as a negative. From a moral standpoint, taxation is armed robbery, slavery, racketeering, trespassing, communicating threats, receiving stolen money, and conspiracy to commit the aforementioned crimes. If anyone dared to challenge the state’s monopoly on tax collection, they could face any of these criminal charges. By doing business in cryptocurrencies and taking additional steps to protect one’s identity (Bitcoin is pseudonymous rather than anonymous, though other cryptocurrencies are fully anonymous), one can keep part or all of one’s income and stored wealth away from Leviathan’s watchful eye. Establishment politicians and pundits will decry tax evasion as immoral. But as Murray Rothbard writes,

“Just as no one is morally required to answer a robber truthfully when he asks if there are any valuables in one’s house, so no one can be morally required to answer truthfully similar questions asked by the State, e.g., when filling out income tax returns.”[1]

The weapon of cryptocurrency is thus more of a shield than a sword, though it may be employed in an offensive posture (see #8).

2. Agorism

One way to reduce the size and scope of the state is to starve it of funds. Agorism is a strategy introduced by Samuel Konkin for reducing and eventually eliminating state power by expanding the size and scope of gray and black markets. As more people rely on the informal economy to a greater extent, they will develop a culture of resistance against state power while depriving governments of revenue by keeping their taxable income out of official records. This will incense people who believe that the state is necessary for the provision of essential services such as military defense and legal systems, but those services could be performed by private entities if they were not forcibly stopped from doing so by state monopolies. It will also worry those who believe that governments must take care of the poor and down-trodden, but private charity is quite capable of solving the problem, especially with tax burdens removed.

3. Undermining Prohibition

From the beginning of the original Silk Road, cryptocurrency has played a role in helping people to obtain goods and services that are prohibited by state laws. Though that site was shuttered by government intervention, this had more to do with the incompetence of Ross Ulbricht than with any inherent flaw in Silk Road or Bitcoin. Since then, many other sites have been created to serve the same purpose. This is a terrifying prospect for drug warriors and gun control advocates, who believe that strict laws against the sale of such goods are necessary to keep communities safe. But the available evidence suggests that state bans only raise the prices of banned goods while increasing the violence involved in their trade. Thankfully, online black markets will continue to undermine prohibitionist policies while reducing the amount of violence involved in both law enforcement and black market disputes.

4. Circumventing Child Labor Laws

Most developed countries prohibit children under a certain age from working. Proponents of child labor legislation believe that it is necessary to protect children from exploitation and lack of education. However, in most places where child labor is still prevalent, it is better than the alternatives of lackluster schooling, child prostitution, or starvation. In more developed countries, child labor laws prevent children from earning income, learning useful trade skills, building a work ethic, and avoiding indoctrination by the state. Cryptocurrencies provide a framework to allow people to hire and pay children outside of official channels (see #2), while smart contracts on a cryptocurrency blockchain can prevent wage theft and other exploitation.

5. Circumventing Capital Controls

In many countries, there are laws that forbid carrying more than a certain amount of money or goods out of the country. Such laws are easy to enforce when currencies are centralized in a specific country, and when money and goods must take physical form, as precious metals and cash do. But cryptocurrencies are not particular to any physical location and do not require a physical form. This allows a person to trade one’s fiat currency or precious metal in one country for cryptocurrency, travel to another country, and either sell the cryptocurrency for fiat currency or precious metal in the other country or use the cryptocurrency directly. Economic protectionists may argue that this weakens the economy of the nation that experiences capital flight, but capital flight would not be occurring if the nation experiencing it had a more responsible government that was not creating adverse economic conditions.

6. Financing Disapproved Activism

Political dissidents and the causes they support are frequently rejected by the legacy financial system. Banks, credit cards, Paypal, and other money handlers have a long history of closing accounts and denying service to people and groups that oppose the current power structure with sufficient ardency and effectiveness. This occurs partly because these companies tend to be controlled by virtue-signaling members of the establishment, and partly because government regulators can make business difficult or impossible for companies that refuse to crack down on dissidents. If there were no other options, then the establishment would be able to effectively eliminate its opposition by starving them out. But ever since Wikileaks came to depend on Bitcoin donations for funding, cryptocurrencies have provided an alternative financial system that allows activists to make a living, engage in commerce, and perform their activism despite the disapproval of ruling elites.

7. Thwarting Monetary Policy

Ever since Keynesian economics became prevalent among policymakers, central bankers have sought to manipulate interest rates and the money supply to stimulate the economy. But in practice, this only distorts the economy further, encouraging those with capital to make malinvestments. True to the Austrian business cycle theory, this forms yet another economic bubble that then breaks, after which misguided commentators blame markets and call for yet more intervention. Over the long term, central banks also destroy the purchasing power of a currency, with the US dollar losing 96 percent of its value since the Federal Reserve was formed in 1913. In order to continue to function, central banks must have a critical mass of economic transactions occur in the currency that they manipulate. Should enough people make the switch away from state-backed fiat currencies, monetary policy will lose its effectiveness. Cryptocurrencies threaten this critical mass by offering an alternative to people who wish to opt out of the scam of central banking and own an asset that appreciates over time.

8. Assassination Markets

Perhaps the most controversial application for cryptocurrencies is known as a death pool or an assassination market. First theorized by Tim May and fleshed out by Jim Bell in the 1990s, assassination markets predict the date on which a particular person will die and provide payment to those who guess correctly. This incentivizes an assassin to bet on a certain date and kill the person on that date. The original proposal was made long before cryptocurrencies were invented, and thus called for the use of anonymous remailers. Cryptocurrencies render remailers obsolete, as they better serve the purpose of compensating the assassin without leaving evidence that law enforcement can use to discover the identity of the assassin and/or the crowdfunders. The goal is to increase the level of occupational hazard for being a politician or minion thereof to such an extent that the benefits of wielding state power are no longer worth the cost. The theoretical result is that if politicians, central bankers, enforcers, and other such people suddenly become frequent targets of assassination, then these occupations will cease to exist due to a lack of interest in assuming such roles. Although the establishment will only ever view such an approach as murderous, and cryptocurrency enthusiasts are deeply divided over the concept, there will almost certainly be many attempts to create assassination markets in the coming years.

References:

  1. Rothbard, Murray (1982). The Ethics of Liberty. Humanities Press. p. 183

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.

Eliminate The Debt Ceiling

The United States debt ceiling is a limit placed on the amount of money that the federal government can borrow. This is done by placing a cap on the amount of national debt that can be issued by the US Treasury. About 99.5 percent of the debt is covered by this ceiling, but $238 million in United States Notes and $74 billion owed by the Federal Financing Bank as of September 2016 are not covered.

Because the ceiling applies to the total national debt rather than to annual deficits, and expenditures are authorized by separate legislation, the debt ceiling does not directly limit government spending. As the Government Accountability Office explains, “The debt limit does not control or limit the ability of the federal government to run deficits or incur obligations. Rather, it is a limit on the ability to pay obligations already incurred.”

When this occurs and the ceiling is not increased by legislation, the Treasury must resort to “extraordinary measures” such as suspending investments into federal employee retirement funds or exchanging Treasury securities for non-Treasury securities. Should such measures be exhausted before Congress agrees to raise or suspend the ceiling, a default on at least some of the national debt would occur. Most mainstream economists believe that this could cause an economic depression as well as a financial crisis.

Whether the nature of this ceiling should be altered and whether such a limit should exist at all are subjects of debate among economists and political commentators. This article will overview the history of the debt ceiling, make the case that it should be eliminated on both practical and moral grounds, and deal with common objections to elimination.

History

Article I, Section 8 of the United States Constitution gives Congress sole authority to borrow money on national credit. Between 1788 and 1917, Congress would pass legislation to authorize each bond issue by the US Treasury, with the particular amount specified in each legislative act. This would authorize specific loans in some cases, while in other cases the Treasury would be given discretion over which type of debt instrument to issue for specific purposes. Except for a short time in late 1835 and early 1836, the federal government has continuously had a national debt. Although there were parliamentary procedural rules concerning debt limits, there was no debt ceiling in the current form until 1917.

In 1913, the Sixteenth Amendment and the Federal Reserve Act both became law, which greatly expanded the taxing and spending capabilities of the federal government. As originally defined, the Federal Reserve was not allowed to purchase debt instruments from the US Treasury because members of Congress understood the fiscal danger that could arise from granting such permission. The desire for financial flexibility regarding American involvement in World War I led Congress to pass the Second Liberty Bond Act of 1917. This Act allowed the Treasury to issue bonds and take on other debt without specific Congressional approval, and allowed the Fed to purchase Treasury instruments. The debt ceiling was created as part of the deal to pass these changes, and took the form of limits on the aggregate amount of debt that could be accumulated through each category of debt, such as bills and bonds.

In 1939 and 1941, Congress passed the Public Debt Acts, which establish an aggregate limit on nearly all federal debt. Since then, the mechanism for raising the debt ceiling has been to amend these acts. The 1939 Act consolidated the separate limits from the 1917 Act into one limit, while the 1941 Act raised the debt ceiling to $65 billion, eliminated the tax exemption of interest and profit on government debt, and consolidated almost all government borrowing under the US Treasury. The Act was amended to raise the limit in each of the next four years, then the limit was reduced from $300 billion to $275 billion in 1946. Increases resumed in 1954, and there have been 72 increases and four decreases since then, with no decrease since 1963. As such, the debt ceiling has usually been a mere formality. After the Budget and Impoundment Control Act of 1974 created more opportunities for Congress to hold debates and hearings on the federal budget, the debt ceiling became less useful as a budgetary tool.[1] From 1979 to 1995, the Gephardt rule was in effect, which was a parliamentary rule that deemed the debt ceiling raised whenever a budget was passed, effectively nullifying the debt ceiling during that time. This rule was removed during the resolution of the 1995-96 government shutdown.

Treasury first implemented extraordinary measures on December 16, 2009 to avoid a government shutdown. Due to the lack of normal annual budgets during the Obama administration, Congressional Republicans used the debt ceiling as leverage for deficit reduction in 2011. This nearly caused a sovereign default, with Standard and Poor’s downgrading the United States credit rating and the Dow Jones Industrial Average dropping 2,000 points in late July and August. The Government Accountability Office estimated that this incident raised borrowing costs for the government by $1.3 billion in 2011, and the Bipartisan Policy Center extrapolated this estimate to $18.9 billion from 2011 to 2020. The debt ceiling was reached again at the end of 2012, which led to the Treasury adopting extraordinary measures again, as well as far more absurd measures being proposed.

On February 4, 2013, President Obama signed the No Budget, No Pay Act of 2013, which suspended the debt ceiling for the first time. This lasted until May 19. During that time, Treasury was authorized to borrow to the extent that “is required to meet existing commitments.” On May 19, the debt ceiling was raised to $16.699 trillion to accommodate borrowing performed during the suspension and extraordinary measures were resumed. In order to avoid a default when extraordinary measures were exhausted on October 17, the debt ceiling was suspended a second time until February 7, 2014. On February 12, the Temporary Debt Limit Extension Act suspended the debt ceiling until March 15, 2015, at which Treasury used extraordinary measures yet again. The debt ceiling was suspended again on October 30, 2015 until March 2017, and the suspension has been extended until the time of this writing.

Before And After

To begin making the case against the debt ceiling, let us consider the effect that having a debt ceiling has had on the national debt, which will show the effectiveness of the debt ceiling at reducing government spending over the long-term. Records begin in 1790, with the debt at the beginning of that year at $71 million. The debt grew to $127 million in 1816 from the War of 1812, then was steadily paid off until reaching zero in 1835. It would never be paid off again, growing gradually starting in 1836, then up to $68 million in 1851 as a result of the Mexican War. The next low was at $29 million in 1857. The Civil War caused an unprecedented debt, going from $91 million in 1861 to $2.77 billion in 1866, an increase of 2,962 percent. The next low was $1.55 billion in 1894, just before the Spanish-American War and other expansionist endeavors. The gradual growth during the early 20th century was accelerated by World War I, going from $3.06 billion in 1915 to $27.39 billion in 1919, an increase of 796 percent. Recall that the debt ceiling was instituted in 1917, with a national debt of $5.72 billion. The debt would be gradually paid off during the 1920s, reaching the next low of $16.8 billion in 1931. The debt grew again during the 1930s to fund government programs aimed at curtailing the Great Depression, reaching $48.96 billion in 1941. World War II ballooned the debt to $269.42 billion in 1946, an increase of 450 percent from 1941. The debt would never go below $250 billion again, gradually increasing past $300 billion in 1963. The Vietnam War accelerated the debt to $620.43 billion by 1976. In 1982, the national debt exceeded $1 trillion and has grown every year since 1958. On September 8, 2017, the debt passed the $20 trillion mark. Note that these figures do not include unfunded liabilities, which in recent times have become much larger than the official figure.

From 1790 to 1917, the debt increased by 7,946 percent, or 7.34 percent per year. From 1917 to 2017, the debt increased by 3,398 percent, or 8.5 percent per year. By this measure, the debt ceiling appears to be somewhat counterproductive for restraining spending, as the national debt has increased an additional 1.16 percent per year since its inception. However, one must be wary of cum hoc ergo propter hoc reasoning. National debts are influenced by a great multitude of variables, and attributing this change to a single cause would be fallacious. The larger role played by the United States on the world stage, with the attendant expenditures on military presence and foreign aid, contribute a great deal to the debt, as do social welfare programs, which were nearly nonexistent before 1917.

Now And Later

To make a stronger case, we must consider the current effects of having a debt ceiling versus the likely effects of eliminating it. In the process, we will make use of the neoreactionary concept of formalism. This is the idea that in human affairs, official reality should match actual reality, the underlying power dynamics should be brought into the open, and accounting practices should be honest.

The recent history is that the debt ceiling is always raised to avoid running into it. Starting in 2013, the practice has become to suspend the ceiling entirely. It goes without saying that a ceiling which is always raised and can be made to disappear is not really a ceiling at all. The effect of this is for the state to continually take on more debt rather than pay its bills properly. This is politically convenient, as it allows politicians to bribe voters with the fruits of the labor of their unborn descendants while avoiding the backlash that inevitably results from austerity measures. To call this a Ponzi scheme is an insult to Ponzi schemes, as all of the beneficiaries and victims in those scams are willing investors. A private sector Ponzi scheme involves no inter-generational debt slavery or other forced participation.

Although even the most ardent deficit hawks are loathe to be blamed for a sovereign default, the threat that a default will occur in this manner spooks investors needlessly. As mentioned earlier, the Dow Jones dropped 2,000 points in response to the 2011 debt ceiling crisis. If investors are convinced that a default may happen in spite of the apparent unwillingness of politicians to cause a default, then the markets will be sent into turmoil for no good reason.

Eliminating the debt ceiling would be a change that moves official reality closer to actual reality on several counts. First, the opponents of fiscal restraint know that those who would use the debt ceiling as a tool to reduce government spending will always cave before a default, even if they do cause the occasional partial shutdown of government functions. For this reason, their bluff is always called and they lose the hand by playing the debt ceiling card. Removing this card from the deck not only takes away an ineffective option, but forces reformers to seek out other methods which may be effective.

Second, eliminating the debt ceiling would signal that the federal government has no interest in paying off its creditors. It should be obvious enough that an entity which increases its debt burden every year for 60 years does not have fiscal responsibility as an objective, but the Treasury seems to have no shortage of lenders, especially because the Federal Reserve serves as a lender of last resort. Note that because the federal government monopolizes law, declares itself immune from suit, and has the firepower to repel those who would seek to collect by force, it is not accountable for the national debt in an absolute sense. Accountability thus becomes an indirect, external affair which would be aided by the consequences of signaling the aforementioned truth to the world.

The admission of no intention of paying off the debt, which is essentially an admission that a default will eventually occur, would make interest rates rise. This would be necessary in order to compensate investors for the fact that they may lose their principal, or at least take a haircut on it at some future date. Aside from the obvious benefit to savers, who would see financial progress for the first time in over a decade, the increased spending on interest on the national debt would force a combination of tax increases and spending cuts in other areas. This would make current supporters of government programs pay more for them up front through taxation and inflation, constrain the pathologically undisciplined federal government, and reveal the true priorities of the power elite when decisions about whom to tax more and which expenditures to cut are taken. As such, it both brings the underlying power dynamics into the open and makes accounting practices more honest.

Objections

At this point, let us consider some likely objections. First, there is the possibility that having no debt ceiling would cause the debt to grow even faster. The above examination of the history of the national debt suggests that this objection is ill-founded, as the annual percentage increase has been higher with a debt ceiling in place. But even if it is true that eliminating the debt ceiling would accelerate the growth of the national debt, this is not necessarily bad. The faster the debt accelerates, the sooner the events described in the previous section will occur, meaning that the current unsustainable dynamics will be replaced earlier than they otherwise would.

A second objection is that this course of action may cause an economic collapse. This is entirely possible, but again, not necessarily bad. The end of the United States dollar would result in either a monetary reform and/or the replacement of government fiat currencies with something more sound, such as a gold-backed currency or a cryptocurrency. Because the US dollar is the world reserve currency, the US government can abuse its economic system more than other governments can. Losing this status would be another step toward forcing the government to behave more responsibly, as it would curtail the amount of debt that can be issued by reducing foreign demand.

The resulting collapse of the bond market leads to the third objection that this would cause a great amount of hardship. However, one must remember that the investors in government bonds have bought instruments which are funded by extortion and debt slavery. From a moral standpoint, those who lose on such investments deserve to lose. That being said, this course of action does not actually cause the collapse; rather, it makes the inevitable collapse occur more quickly.

Conclusion

The debt ceiling was created with the intention of limiting the ability of the Treasury and the Federal Reserve to behave irresponsibly as they were allowed to provide more liquidity to fund World War I. But over the past century, quite the opposite has happened. The national debt has grown significantly faster than it did previously, and is now on a path toward default which is not reversible given current political realities. Eliminating the debt ceiling may seem like a counterproductive maneuver, but it would do much to formalize the true nature of the American fiscal situation. The only real debt ceiling is that established by lenders and creditors. When they deem a borrower to pose too much of a default risk, they stop lending and call in their debts, thus forcing the debtor to behave responsibly. The sooner this happens to the United States government, the better.

References:

  1. Kowalcky, Linda W.; LeLoup, Lance T. (1993). Congress and the Politics of Statutory Debt Limitation. Public Administration Review. 53 (1): p. 14.

Book Review: The Art Of Invisibility

The Art of Invisibility is a book about methods of maintaining privacy and anonymity in an age of surveillance by American hacker and cybersecurity analyst Kevin Mitnick. The book gives advice on every aspect of modern technology which could expose one to nosy neighbors, identity thieves, law enforcement, and other sources of unwanted attention. The book is divided into sixteen chapters which advise the reader about various measures that can be taken to improve security.

The introduction begins with the revelations made about the NSA’s activities by Edward Snowden, then discusses the information that is publicly available about most people with very little searching required. The first chapter is about password security and security questions. Tips are given for choosing a strong password, using a password manager, creating answers for security questions, and using multi-factor authentication. The second and third chapters cover surveillance of email and phones. Mitnick covers the concepts of metadata, encryption, and social engineering. He explains how the Tor browser and MAC addresses work. He discusses several current and historic methods of wiretapping phone conversations and pinpointing the location of a phone, then explains how a burner phone may be used to obtain some privacy.

Chapter 4 is about the functionality and use of encryption to thwart eavesdroppers. This is discussed in the context of text messages, cell phones, and computers, each of which is remarkably vulnerable without it. The next chapter begins with the Sarbanes-Oxley Act, which is now being used to prosecute anyone who deletes browser history that federal prosecutors wish preserved. Mitnick makes the obvious recommendation of not collecting such history in the first place, then instructs the reader on how to do so. He then discusses how Internet browsers track a user’s location and how this may be countered. The chapter concludes with the dangers of connecting devices and cloud storage.

The sixth chapter details various tactics that websites use to track users, such as scripts, single-pixel images, cookies, and toolbars, then offers advice for stopping them. The chapter ends with a basic overview of Bitcoin for overcoming some current legitimate uses for tracking. The dangers of sharing an Internet connection make up the seventh and eighth chapters. Mitnick teaches the reader how to set up an Internet connection that is difficult for malicious users to find and use. Next, he discusses several cases in which webcams were used to spy on people, including underage students. The phenomenon of ransomware, in which a user’s files are encrypted by malware and can only be decrypted by paying an extortionist, concludes Chapter 7. After this comes the pitfalls of public computers and Wi-Fi connections. Lessons on avoiding man-in-the-middle attacks, using virtual private networks, resetting one’s MAC address, and more are found in the eighth chapter.

The second half of the book opens with examples of photo metadata being used to locate people, then tells how to delete such information and prevent it from being created. Mitnick then gives advice on how to get unwanted photographs of oneself removed from websites, though it may not always work. The dangers of posting sensitive personal information on social media or otherwise sharing it with strangers is discussed. The extent to which corporations track commentary on social media is detailed through examples of students found publicly discussing standardized test material. The absurdity of minors facing criminal charges for possessing nude photos of themselves is used to illustrate the potential dangers of Instagram and Snapchat. The chapter finishes with privacy problems that can come from using dating sites and mobile apps.

Mobile device tracking is the subject of the tenth chapter. Mitnick writes about the third-party accessibility of information recorded by fitness-tracking devices as well as the trackability of people through the GPS features of their devices. He also shares an interesting episode of social engineering combined with tracking in which he surprised a careless driver who almost killed him with a stern warning supposedly from the DMV. The use of drones and facial recognition to erode privacy come later in the chapter, along with some prototypical countermeasures. The next two chapters detail how cars and home appliances can be used to track people, then show people how to turn off many of these features. Doing so will deprive users of some convenience, but that is the general cost of privacy and anonymity.

Chapter 13 applies the information discussed in previous chapters to the workplace. The insecurity of copiers, printers, and other such office appliances is highlighted so as to warn readers not to use them for any purpose that one would not want one’s employer or any hacker to see. Videoconferencing and remote file storage systems are covered in the last part of the chapter, with advice given for increasing security on them. The fourteenth chapter details the myriad ways in which government agents violate privacy and interfere with private electronics and communications, then advises readers on how to protect themselves while being aware of the laws in various countries. Also included here are the privacy concerns with hotel keys, supermarket cards, and airline boarding passes should they fall into the wrong hands.

The fifteenth chapter is mostly about the arrest of Ross Ulbricht, describing the mistakes that led to his capture. Devices that masks geolocation, and could thus have hidden Ulbricht from law enforcement had they existed in 2013, are mentioned. The final chapter lays out a step-by-step guide to achieving as much anonymity online as possible.

From beginning to end, Mitnick shares a wealth of information with just the right amount of personal anecdotes and other stories to keep the reader engaged. The Art of Invisibility is an excellent reference that deserves a place on the bookshelf of all who care about online privacy and personal security until enough time passes to render the information within obsolete, which may be on the order of decades.

Rating: 4.5/5

Book Review: Come And Take It

Come And Take It is a book about 3D printing of firearms and the implications thereof by American entrepreneur Cody Wilson. The book details Wilson’s experiences over nine months in 2012-13 when he decided to leave law school and figure out how to use a 3D printer to make a functional plastic handgun. It also conveys his thoughts on political events of the time, such as the re-election of President Barack Obama and the Sandy Hook school shooting.

The story of Wilson’s entrepreneurship is not so different from many others; he must decide whether to make his venture be for-profit or non-profit, decide whether to work for the state or the people, figure out how and where to get funding for his operations, find the right people to work with, wrestle with the impulse to continue his schooling versus working on his entrepreneurial idea, and deal with legal challenges and roadblocks thrown his way by established interests. What sets it apart is the unique nature of his work.

Wilson’s story takes some interesting turns, such as trips to Europe and California where he meets with everyone from left-wing anarchists in the Occupy movement to a club of neoreactionaries led by Mencius Moldbug. This shows that the project to allow everyone to be armed regardless of government laws on the matter changes the political calculus across the entire spectrum, thus making him a person of interest to people of a wide range of political views.

The book is a valiant effort in creative writing and storytelling, but its subtitle of “The Gun Printer’s Guide to Thinking Free” is rather misplaced. It is not so much a guide for someone else to follow as an example which future entrepreneurs may study in order to adapt proper elements thereof for their own projects. The technical details that one might hope for in such a book are only partially present, though we may fault the US Department of State for that, as Wilson tried to include details of the production procedure for his plastic handgun but was forced to redact the material with large black blocks in the final chapter.

In a strange way, the book feels both long and short. Though it is just over 300 pages, it takes much less time to read than most books of that size. Come And Take It offers an interesting look into the mind and experiences of a true game-changer in the world of technology and self-defense, though the reader who is looking for thorough details on 3D printed weapons or a general manifesto on liberty must look elsewhere.

Rating: 3.5/5

The Not-So-Current Year: 2016 In Review

Though the specific demarcation of the passage from one year into another is a rather arbitrary social construct, it does provide a useful annual period for self-examination and remembrance. Now that 2016 has entered the history books, let us take a look back at a year’s worth of essays and review the not-so-current year.

We begin, of course, with last year’s article of the same kind. Some articles in this list are sequels to articles in that list. Aside from that, we may move on.

My first article proper of 2016 was A Case Against the Nineteenth Amendment. It was intended to come out before the New Year, but I was not satisfied with it until January 3. If I were to rewrite this article, I would say more about biological differences between the sexes and why these make the entrance of women into democratic politics a danger to the stability and sustainability of a society. I took down the First Amendment later in the year.

The Bundy standoff at the Malheur National Wildlife Preserve began. I made nine observations on the event. Their later acquittal on several felony charges after the standoff ended in what was essentially an instance of jury nullification was cause for celebration.

As usual, leftists called for more gun restrictions and an end to gun violence without seeing that the former would both cause and be enforced by gun violence or the threat thereof. Rather than take the usual path of reductio ad absurdum, I argued the sharper point that gun deaths can be a good thing. This did not sit well with the editors at Examiner.com, who pulled the article. Given a long and contentious history with the site, I decided to part ways with them and start my own site. This proved to be a wise choice, as Examiner gave up the ghost less than six months later, with all content disappearing into the aether. My next task was to choose a name for the site and explain its meaning.

Christopher Cantwell argued the libertarian case for Donald Trump, and I gave him some pushback. Shortly afterward, Rand Paul suspended his campaign, and I wrote a list of observations on the event.

‘No victim means no crime’ is a common saying among libertarians, but an altogether too reductionist one. I explained why.

A Russian film crew flew a drone over the city of Homs and recorded the aftermath of Assad’s forces besieging the city. I rarely get emotional, but seeing the wanton destruction was quite triggering for me. Aleppo was conquered later in the year, and I wrote a list of observations on the event.

I decided to take an educated guess at whether Ron Paul could have defeated Barack Obama if he had been the Republican nominee in 2012. I believe he would have done so easily.

Twitter decided to give in to government and social justice warrior requests to censor their enemies. Unsurprisingly, this tanked their stock prices. I proposed several remedies for the situation, and Twitter has of course used none of them.

Jason Brennan published an article arguing that arguments made by libertarians against open borders have disturbing implications that said libertarians almost never address, so I addressed them and showed on a point-by-point basis that some such implications are not only not so scary, but are actually vitally important to the maintenance of a libertarian social order.

Charlotte City Council approved an expansion of its anti-discrimination ordinance to include transgender people, which I denounced as a violation of private property, freedom of association, public safety, and freedom of religion. Governor Pat McCrory and the state legislature responded with House Bill 2, and the controversy has brewed for almost a year.

An author known as Mr. Underhill published an article arguing that violent revolution is not the appropriate method for achieving liberty. I took the opposite view, which led to a lengthy exchange of four more articles on my part and four more on his part. Following this exchange, I decided to write about how I choose who to debate and for how long, which made me realize that I had entertained Mr. Underhill for far too long. Later in the year, I covered political violence more generally to argue that we need more of it as well.

When examining the intellectual foundation for private property rights, I noticed an unexplored quirk which turned into an original proviso. A critique in the comments section led to another article defending the proviso.

Islamic terrorists attacked the airport and a subway station in Brussels, killing 31 people and injuring 300 others. I wrote a list of observations on the event.

Social justice warriors seem to have their own language which is distinct from both the dictionary definitions and the common understanding of words by most of the general population. I created a glossary to help normal people better understand SJW rhetoric.

Donald Trump suggested that women could be punished for getting an abortion, which outraged both sides of the mainstream abortion debate. I weighed in with a view which did the same.

Having addressed water ownership and pollution in two articles in 2015, I decided to lay out a libertarian theory on air ownership and pollution.

Puerto Rico reached new lows of fiscal irresponsibility, and I explained why it is best to cut them loose from the United States to become an independent country.

The rise of neoreaction and the alt-right has brought reactionary thought back to the forefront. I deemed my first attempt at examining its relationship to libertarianism to be inadequate, so I took a second stab at it. A Jeffrey Tucker article prompted a third effort, and I made a fourth effort later in the year in response to a pro-Trump neoreactionary article by Michael Perilloux.

Peter Weber published an opinion piece arguing that the institution of the American Presidency is being delegitimized, and that this is a dangerous direction. I argued that this is actually a welcome and even glorious development.

Having already explained my decisions about debating other authors, I wrote two more articles explaining my lack of profanity and lack of satirical content.

Many incorrect arguments concerning libertarianism and punishment began to appear, so I laid out a theory of libertarianism and punishment which utilized heavy doses of Rothbard.

The Libertarian Party held its nominating convention, and it was a disaster from beginning to end. The Republican convention was not much better in terms of substance.

Many people have noticed a correlation between weightlifting and libertarianism. I explored this correlation and found many reasons for it.

A terrorist who pledged allegiance to the Islamic State attacked a gay nightclub in Orlando, Fla., killing 49 people and injuring 53 others. I wrote a list of observations on the event, but missed a major point in doing so. Democracy is partly responsible for terrorism because it gives the common person a political voice, which makes them viable targets in a way that absolute monarchies or stateless societies would not.

When the Supreme Court ruled against Abigail Fisher in her anti-white racism case, the Internet cheered. I did not, realizing that the decision was a rejection of pure meritocracy.

Against all predictions, the vote to remove the United Kingdom from the European Union succeeded. I wrote a list of observations on the event.

In my most controversial article to date, I argued the most extreme position in the gun control debate: a private individual has a right to own nuclear weapons, and this would be beneficial for liberty. The troll brigades were out in force making typical leftist non-arguments, and I thank them for granting me a then-record in daily page views (and thus advertising money). A few did raise legitimate criticisms which will require an addendum to be written in the future.

As the major-party presidential nominations were secured, the establishment media wasted an inordinate amount of time engaging in speculation about who would be the running mate of each candidate. When discussing the potential benefits that each potential vice presidential pick could have, they neglected the aspect of assassination insurance.

Several recent problems with the criminal justice system demonstrated that government will not hold government accountable, and that a market alternative is required.

Five police officers were killed by a sniper in Dallas. I used the event to argue that those who kill government agents now are not cowardly murderers perpetrating senseless violence, but neither are they heroic or helpful to the cause of liberty.

A certain type of policy analysis exhibits many symptoms which are also found in high-functioning autistic people. This is more common among libertarians than among people of other political persuasions, so I decided to address the phenomenon.

A significant portion of the media coverage leading up to the Republican convention focused on the possibility of violence on the streets involving leftist protesters and rightist counter-protesters. This possibility went unrealized for reasons which were covered up by the establishment media.

Hillary Clinton said that she was “adamantly opposed to anyone bringing religion into our political process” and that it is “just absolutely wrong and unacceptable.” I argued the opposite case.

Gardening is an enjoyable hobby and a useful metaphor for many things, a libertarian social order included.

Trump hinted at the assassination of Clinton should she win and threaten gun rights. Predictably, every element of the establishment went apoplectic. I argued that political assassinations are ethically acceptable, though not usually the wisest practical move.

Since the beginning of the Black Lives Matter movement, libertarians have had strong differences concerning how to engage with it. I explained the differences between their intentions and libertarian goals.

The 2016 Summer Olympics took place in Rio de Janeiro, Brazil. I wrote a list of observations on the event.

Whenever disasters impact an area in modern times, governments play a large role in the cleanup and recovery efforts. But this causes a behavioral problem in the population, not unlike that caused by the Pax Romana.

The Commission on Presidential Debates decided to exclude third-party candidates yet again. I made cases for peaceful and violent protest of this policy, and longed for a future candidate who might actually motivate people to engage in meaningful resistance.

Liberty Mutual created more advertisements that contain economic fallacies, so I did another round of debunking.

The establishment media tells us that every election is the most important of our lifetime. I proved that this cannot be the case, then psychoanalyzed the establishment media to explain why they keep repeating this, as if to convince themselves.

Argumentation ethics has been controversial since its introduction, but Roderick Long’s criticisms of it had gone unanswered. I remedied this state of affairs.

Rioters plagued Charlotte for three nights in response to a police shooting, which happened to involve a black officer and a black suspect. I wrote a list of observations on the event.

Congress voted to override President Obama’s veto of a bill that allows relatives of the victims of the 9/11 terrorist attacks to sue Saudi Arabia for any role in the plot. Though some libertarians argued against the bill, I celebrated it for chipping away at the anti-libertarian idea of sovereign immunity, giving victims of American foreign policy a peaceful means of addressing their grievances, and possibly revealing clandestine activities to the American people about which they have a need to know.

Having heard libertarians argue in favor of every presidential candidate except Hillary Clinton, I decided to give it a shot. Only a bootlegger’s case was possible, and it was rather grim.

The idea of market failure is a widely believed misconception which has found widespread use in statist propaganda for the purpose of justifying government intervention in the private sector. I gave the idea perhaps its most thorough debunking to date.

In the last quarter of the year, I began reading more books, which resulted in several book reviews. I can strongly recommend The Essential Guide to Freelance Writing and Our Sister Republics; The West Point History of the Civil War somewhat less so. Good Guys With Guns, on the other hand, is a disaster.

The month before the election presented several opportunities for rebuttals. Milo Yiannopoulos demonstrated both a misunderstanding of and an enmity toward libertarianism, and I rebutted his assertions, which gained a surprising amount of attention. Jeffrey Tucker tried to defend democracy as a superior alternative to monarchy or political violence, and I showed why this is misguided. Penn Jillette argued in favor of vote swapping, and I argued against it.

Finally, the 2016 election came and went, which presented many observations to be made.

Black Friday is revered by most libertarians as a celebration of free-market capitalism. I updated my explanation of why this reverence is somewhat misplaced.

Finally, Otto Warmbier spent all of 2016 detained in North Korea. I made the unpopular case that he should be left there.

All in all, it was an interesting year full of occasions to make sharp libertarian arguments. May 2017 bring more of the same. Happy New Year!

Are Libertarians A Joke? A Rebuttal to Milo Yiannopoulos

In an October 16 interview with TheNation.com, Breitbart columnist Milo Yiannopoulos was asked whether libertarians are an acceptable alternative for right-wing voters who are tired of voting for establishment Republicans who flatter them with words but act the same as always. This led to the following exchange:

What about the Libertarians?

What about them?

Are they not an acceptable alternative?

No. They’re a joke.

Why?

Libertarians are children. Libertarians are people who have given up looking for an answer. This whole “everybody do what they want” is code for “leave me to do what I want.” It’s selfish and childish. It’s an admission that you have given up trying to work out what a good society would look like, how the world should be ordered and instead just retreated back into selfishness. That’s why they’re so obsessed with weed, Bitcoin, and hacking.

I always thought those were the most attractive things about them.

Maybe so, but that’s why you can’t take them seriously. It’s all introspective and insular and selfish.

Is this true, and if so, to what extent? Let us see.

Looking for an Answer

In order to say that libertarians have given up looking for an answer, it is necessary to be either ignorant or dismissive of massive volumes of literature produced by libertarians. But Yiannopoulos has somehow managed to do one or the other, if not both. It is not the case that libertarians have given up trying to work out what a good society would look like and how the world should be ordered, but that many of us are weary of being treated like Cassandra and saying “I told you so” to the mainstream body politic in response. In other words, withdrawing in disgust is not the same as apathy.

Doing What One Wants

Libertarianism is not about doing whatever one wants. One has no right to initiate the use of force against another person or their property. This does not change when people gather together, wear certain costumes, claim certain affiliations or job titles, or hold a vote. Respect for individual liberty is the difference between civilization and barbarism, between progress and subsistence, between peace and destruction.

Selfishness and Childishness

Yiannopoulos, like many critics of libertarianism (and Objectivism) before him, uses the common meaning of selfishness rather than the meaning used by libertarians (and Objectivists), which leads to his confusion. In the interest of avoiding confusion, libertarians commonly speak of rational self-interest and the drive to do what will maximize one’s own happiness and well-being. The freedom to pursue one’s self-interests without interference as long as one does not commit acts of aggression, to the extent that it is present, has led to the innovations that make Yiannopoulos’ life as he knows it possible, so it is rank hypocrisy for him to deride this as childish. In cases in which the pursuit of self-interest by each individual results in adverse outcomes for a group or the self-interest of a person is to game the system to one’s advantage, the state offers no solution and is frequently the cause of the problem. All too often, those who accuse libertarians of selfishness are committing the opposite sin; that of conspicuous compassion. Forced philanthropy is a contradiction of terms, and the result is frequently worse than the result of doing nothing to help those in need, especially when viewed through a Darwinian lens.

To be fair, libertarianism could be considered a childish idea in the sense that “don’t hit people and don’t take what is theirs” is simple enough for a small child to understand. The nuances that arise when responsibility is obfuscated, rights come into conflict, or aggressors must be stopped can be properly deduced by an older child unless adults fill their heads with falsehoods or neglect to educate them in the proper use of logic. But this is not what people generally mean when they call an idea childish.

Weed, Bitcoin, and Hacking

There are some libertarians who promote vices as though they were virtues and believe that decentralization alone can bring down the state apparatus without ever being used for evil purposes, but a significant part of the libertarian movement is not so foolish. While marijuana use tends to result in political cuckoldry, Bitcoin and hacking are causing real inconveniences for the powers that be. Bitcoin (or a superior successor) is capable of destroying the system of central banking and fiat currency that is financially oppressing the average person in order to benefit the politically connected wealthy. With releases that have exposed illegal behaviors by the national security state as well as the Clinton campaign, Wikileaks has proven to be a headache for both sides of mainstream American politics. There is good reason for libertarians to be obsessed with these anti-political methods of action, given that political methods have generally failed them.

Introspection and Insulation

Yiannopoulos seems to believe that introspection and insulation make a philosophy unworthy of being taken seriously. But introspection and insulation are healthy, even essential at times. If adherents of a philosophy do not come together among their own and do this, they cannot refine their beliefs or make important human connections with each other. If individuals do not do this by themselves, they cannot have the necessary focus to examine their lives properly.

There is a certain irony in this view coming from Yiannopoulos. “The unexamined life is not worth living” is a famous quote from Socrates, described by Plato as being uttered as part of his defense when he was tried on the charges of “corrupting the youth” and “not believing in the gods in whom the city [of Athens] believes, but in other daimonia that are novel.” Socrates was ultimately convicted and forced to commit suicide. If such charges still existed today, Yiannopoulos certainly would have been brought up on them by now.

Taking Libertarianism Seriously

In a sense, it is hard to fault Yiannopoulos here, given the cesspool of degeneracy that the Libertarian Party has become. This is a problem caused by leftist infiltration of the libertarian movement and the libertarians who allowed it to occur, and it is a problem with people rather than a problem with libertarian philosophy. Although Yiannopoulos is sufficiently intelligent to figure this out, he seems unwilling to do so. The works of Rothbard, Block, and Hoppe are no less valid just because people call themselves libertarians while doing their best to undermine the practice of libertarian philosophy.

Conclusion

Yiannopoulos calls himself a cultural libertarian, though this seems to be just another attempt to corrupt the message of libertarianism so that people can fake being a libertarian for their own personal gain. The joke is on him for rejecting liberty in favor of right-wing statism. He has shown his true colors, and libertarians should shun him.