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!

The Problems With Santa Claus

Every year on Christmas Eve, children throughout Christendom eagerly await a visit from Santa Claus. Most children are told that he visits the homes of children to place gifts under Christmas trees for good children and bring coal or sticks for bad children. While many parents may believe that this is a harmless “white lie,” there is a case to be made that the myth of Santa Claus is actually very harmful to children. Let us examine the origins of these customs and consider their ill effects.

Santa’s Origin

The original form of Santa Claus was nothing like his common appearance today, which is largely a product of Thomas Nast’s cartoons (shown above), the poetry of Clement Clark Moore, and Coca-Cola advertisements. The custom of a mythical figure placing presents under a tree dates back to the mother/child cult of Semiramis and Nimrod in ancient Babylon. The mythology says that Nimrod married his mother, setting her up as the “queen of heaven” and himself up as the “divine son of heaven.” The two of them had a son named Tammuz, a god of food and vegetation worshiped in Sumer, Akkad, Assyria, and Babylonia. Upon Nimrod’s death, Semiramis claimed to see an evergreen tree spring up to full size overnight, symbolizing the “new life of Nimrod.” She then taught Tammuz to go into forests and make offerings to his father on the day that is December 25 in the Gregorian calendar (the origin of the date of Christmas), who was now worshiped as the sun god Ba’al, the false god mentioned numerous times in the Old Testament of the Bible. The custom was known to the authors of the book of Jeremiah, which includes the following:

“Do not learn the way of the Gentiles; do not be dismayed at the signs of heaven, for the Gentiles are dismayed at them. For the customs of the peoples are futile; for one cuts a tree from the forest, the work of the hands of the workman, with the ax. They decorate it with silver and gold; they fasten it with nails and hammers so that it will not topple. They are upright, like a palm tree, and they cannot speak; they must be carried, because they cannot go by themselves. Do not be afraid of them, for they cannot do evil, nor can they do any good.”[1]

The book of Jeremiah is believed to have been written between 627 and 586 BC—six centuries before the time of Jesus—disproving any assertions that the customs surrounding Christmas were an invention of Christians. Nimrod was also known as Santa throughout Asia Minor.[2] Another name for Nimrod used in Greece was Nikolaos. This name is a combination of the Greek words nikos and laos, which together mean “victory over the laity” or “conqueror of common people.” These customs inform certain practices within Christianity, such as the focus on Mary and Jesus together. Thus, the gift-bearing portion of the Santa Claus or Saint Nicholas story is ultimately a manifestation of the ancient cults of Babylon.

Krampus Confluence

With Santa’s gifts explained, let us turn to the coal and sticks. These come from a pre-Christian tradition in Eastern Europe involving a figure named Krampus. This being, whose portrayal resembles that of Satan, is said to come on December 5 (Krampusnacht) to punish bad children. He may leave coal or sticks, beat children with sticks, kidnap and throw them into water, or take them directly to Hell in the worst cases. In places where Krampusnacht is observed, children get presents on December 6. Families with unruly children hang gold-painted bundles of birch sticks in their homes throughout the year as a functional décor to remind the children of the threat that Krampus may beat or abduct them.

Krampusnacht celebrations involve parades of people wearing Krampus costumes, running through the streets and beating people. The masks involved can be valuable items of folk art, especially if they are antiques. Though Krampus was of Norse origin—said to be the son of Hel, the god of death and the underworld who lends her name to the Hell of Christianity—he has been linked to Santa since the 17th century. Though Krampus was banned under fascist rule in the 1930s, the custom resumed once those governments fell.

Ill Effects

To adults, all of this may seem like a harmless bit of fun. But when children are taught to believe in such beings as Santa Claus and Krampus, several detrimental effects may occur. First, parents who lie about Santa and/or Krampus are weakening their trust and credibility. Children will someday realize that their parents have lied to them, and this will lead them to question other statements that their parents have made. This can lead to trust issues that persist even into adult life, as well as damage a fundamental and irreplaceable relationship in a young person’s life.

Second, the Krampus story encourages violent parenting. A multitude of studies show that physically abusing and verbally threatening children is counterproductive to their development. The idea that a demon may take a child away from home forever into a place of punishment can inflict lasting feelings of trauma and insecurity on a young mind, and being hit with sticks is not much better for a child’s physical health. If children are capable of understanding reason, then it is better to use reason. If children are incapable of understanding reason, then they cannot understand the reasons why their elders are striking or threatening them. Moreover, the desire to escape punishment is the lowest of Kohlberg’s six stages of ethical development[3], and the desire to obtain rewards is the next lowest. Myths like those about Santa and Krampus can keep people from progressing past these lower stages of ethical thinking.

Third, these myths teach children to believe in entities whose existence and efficacy are not supported by credible evidence. A scientific analysis of what Santa Claus and his flying reindeer would have to do to fulfill the conditions set for him shows that he would have to endure G-forces more than 1,000 times beyond what is lethal. The idea of gifts and punishments coming seemingly out of nowhere, deus or diabolus ex machina style, to those who deserve them, requires a supernatural violation of physics as well as economics. If a child can be taught to believe in Santa or Krampus in the absence of credible evidence, then it will be easier for them to fall prey to religious cults or confidence schemes later on. On a related note, such traditions undermine the religious teachings that parents may wish to pass on to their children. Once children reason their way to the conclusion that Santa Claus is not real, they may apply similar thinking to the Christian God and become atheists, which a Christian parent would presumably not wish to see.

Fourth, the focus on gifts that is encouraged by belief in Santa Claus contributes to a culture of degenerate consumerism. This leads many people to spend money they do not have on items they do not need, then take the rest of the year to pay off the debts they incur during the holiday season. This runs counter to Christian teaching, which encourages both economic frugality and an emphasis on long-term planning over immediate gratification.

But perhaps the most damaging aspect of the Santa Claus myth relates to the similarities between the Santa/Krampus duo and the institution of the state. The lyrics to a popular Christmas song say,

“He sees you when you’re sleeping,
He knows when you’re awake,
He knows if you’ve been bad or good,
So be good for goodness sake!”[4]

The idea of a benevolent gift-giver who regularly violates everyone’s privacy and will bring punishment to those whom he deems to be bad people is a close approximation of the ideals of the current political establishment. The story of Santa makes the citizenry easier to control by making people comfortable with a state apparatus that frequently violates their rights and threatens them with punishment from a young age.

Conclusion

All things considered, the stories of Santa Claus and Krampus have the effects of destroying trust in the family, healthy personal development, acceptance of reason and science, maintenance of other traditions, and the desire for liberty in the mind of a child. For these reasons, it is fair to say that lying to children about Santa Claus and/or Krampus does far more harm than good. It is best to be honest about such customs and tell children that these are merely stories rather than real entities so that they will not develop resentment, irrationality, and statist tendencies.

References:

  1. Jeremiah 10:2-5 (NKJV)
  2. Langer, William L. (1940); Stearns, Peter N. (ed. 2001). The Encyclopedia of World History: Ancient, Medieval, and Modern, chronologically arranged. Houghton Mifflin. p. 37.
  3. Kohlberg, Lawrence (1976). “Moral stages and moralization: The cognitive-developmental approach”. In Lickona, T. Moral Development and Behavior: Theory, Research and Social Issues. Holt, NY: Rinehart and Winston.
  4. Coots, John Frederick and Gillespie, Haven (1934). Santa Claus Is Comin’ to Town.

Book Review: The Euro

The Euro is a book about the shortcomings of the eurozone currency project by American economist Joseph Stiglitz. The book makes a case against many of the policies pursued by European leaders thus far and recommends several alternatives, including further integration, a flexible euro, and the exit of one or more members. The book is divided into twelve chapters which explore different aspects of the problem and possible solutions.

A short preface details Stiglitz’s view of the economic problems of Europe as being largely attributable to the creation of a single currency zone without the creation of other institutions that are found in other such places elsewhere in the world. He compares the euro to the gold standard, repeating the flawed mainstream view that deflation is bad. His Keynesian approach to economics and thoroughly statist worldview is apparent from the beginning. That being said, Stiglitz appears to want to solve problems and correctly identifies some people and institutions as being uninterested in doing so.

The opening section begins with a chapter that expands upon the preface and outlines the rest of the book. There is little here that is not covered in greater detail later, so let us move on. In Chapter 2, Stiglitz argues that the poor results of the euro should have been expected because economic integration of this sort cannot come before political integration. Here, he contends that military might no longer shapes outcomes as it once did, but this is dubious because nothing short of a nuclear exchange that no one wants could have stopped the United States from conquering and colonizing Iraq if that had been the intention and American leadership had used its full power. So too for Russia in Ukraine and Crimea. His responses to other arguments for a single currency make more sense. He states the fallacious mainstream position on public goods, claiming without logic or evidence that it is impossible for markets to provide basic research and common utilities. This amounts to a confusion of collective action with state action. Even so, Stiglitz does recognize that localization is better than central planning from afar, though his disdain for German policies makes him inconsistent on this point. He then turns to economic integration, discussing the importance of German history with hyperinflation and its prominent role in modern Europe for understanding the European Central Bank. Next, Stiglitz writes about effect that a shared currency has on economic integration, which is mixed. Like many Keynesians, he accuses the market of failure when this is actually impossible; such events are actually failures of government, resources, or individual people. He also regards economics as scientific, even though the scientific method cannot be applied to subjects in which counterfactuals are so important but also unobservable. As usual, the word ‘neoliberal’ says more about the person using it than anything else. He concludes by arguing that there is a democratic deficit in Europe, even though he argues elsewhere in the book against incentive structures which are necessarily part of any democracy.

Europe’s lackluster economic performance since the 2008 crisis is the subject of the third chapter. Stiglitz begins by claiming that Keynesianism is a success because it has lengthened business cycles and shortened downturns, but it has also made the downturns that do occur so much worse that markets were better off before such interventionism. Much of the chapter consists of empirical data for Europe since 2007. When discussing unemployment, he seems not to recognize that unemployment benefits subsidize a negative behavior and will thus produce more of that behavior. Stiglitz relies upon the Gini coefficient when discussing inequality, which is a faulty metric because it measures pre-tax income rather than after-tax consumption. This causes it to exaggerate the amount of income inequality. His detailing of the long-term adverse effects of recession in terms of destroyed human capital is largely correct, but he again recommends interventionism that tends to worsen such problems. He also takes the position that the state should protect those at the economic bottom, though almost every economist would avoid social Darwinism on this front. Stiglitz then commits a fixed pie fallacy by arguing that trade surpluses necessarily cause trade deficits elsewhere, when the reality is quite different. He concludes by correctly noting that the counterfactuals help critics of the euro, and that there is no better explanation for many of Europe’s troubles than sharing a common currency across uncommon societies and economies.

The second section argues that the euro suffers from a flawed initial design. In Chapter 4, the requirements for a single currency region to be successful are considered. Here, Stiglitz uplifts full employment and market stability as goals while denouncing those who favor economic freedom as a “lunatic fringe.” This leads him to contemplate a false dilemma between national control of money and supranational control. He blames market fundamentalism (which he calls neoliberalism) for the crisis of 2008, despite the fact that markets were altered by central bankers in such a way as to cause the crash, which he all but says elsewhere. In explaining the differences between the United States and the eurozone, Stiglitz highlights the freer movement of Americans, the identity of Americans at the national level rather than the state level (at least in modern times), and the federal nature of monetary and fiscal stimulus. He is correct to say that there must either be “more Europe” or “less Europe,” but sides with the former. He describes the Keynesian theory of business cycles, but makes no mention of the Austrian theory. Stiglitz then repeats the tired fallacy that austerity caused the Great Depression and the current malaise, rather than central bank shenanigans and tariff policies. His blame for the gold standard is similarly misguided. He somewhat fixes an error from the previous chapter by clarifying that trade imbalances are not a problem if currency exchange rates can change to compensate for them. He straw-mans the laissez-faire position on unemployment by saying that it views unemployment due to market adjustments as good rather than as simply necessary. Stiglitz then gets a few points correct: low wages undermine worker morale and productivity, falling wages may not amount to falling prices if firms are worried about their solvency, and monetary stimulus has a breaking point at which interest rates cannot be lowered further. But he again blames the private sector for being excessive when it is only reacting to perverse incentives created by governments and central banks. There is little to fault in Stiglitz’s explanation of why currency areas are prone to crisis except for the preceding error, but it never occurs to him to simply not have such an area. The chapter ends by repeating many of the fallacious arguments from the previous chapter concerning trade surpluses and deficits.

The fifth chapter considers the economic divergence of the eurozone countries. Stiglitz argues in favor of institutional frameworks to prevent the need for bailouts, as well as funds to make depositors whole and provide bailouts. This ignores the moral hazard created by such a regime that causes bankers to take excessive risks, as well as the powerful incentives that an absence of protection would have on depositors to act responsibly and hold bankers accountable. His view of regulation is starry-eyed, missing the entire concept of regulatory capture. This is especially striking, given his focus on institutional capture in the following chapter. Stiglitz rightly complains of capitalized gains and socialized losses among bankers. In his consideration of other sources of divergence, he again fails to consider the possibility of turning over infrastructure to private development, instead proposing expansion of the European Investment Bank, which is certain to become another statist boondoggle. His view of knowledge markets is flawed in the same manner as his view of economies; it fails to account for the distortions that statism necessarily causes which lead to various types of failure. He concludes the chapter by showing how policies in the eurozone have caused greater instability, but cannot seem to avoid blaming the private sector for responding to the incentives imposed upon it.

In Chapter 6, Stiglitz examines the European Central Bank. He begins by saying that open markets and free competition can efficiently allocate resources only in the presence of adequate government regulation. This is a contradiction because an absence of government regulation defines an open market with free competition. His arguments concerning the inflation-only mandate of the ECB and the problems it causes would be much stronger if the Austrian business cycle theory were anywhere to be found in the book. His description of events in Chile under Pinochet does not agree with the long-term result of economic prosperity relative to the rest of South America and neglects how much worse conditions would have been under Salvador Allende. His claim that markets are supposed to be efficient and stable are a straw man; instability in the form of creative destruction and inefficiency by some metrics rather than others are inherent in a market economy. Stiglitz correctly writes that monetary policy is always a political question, pitting creditors against debtors for control of the central bank. But he leaves unclear how democracy is supposed to hold central bankers accountable. He also must not know any libertarians, or he would know that some people have proposed taking away spending power from governments to ensure that they do not misbehave. The chapter ends with a history of fashionable central bank policies over time and what was wrong with them from a Keynesian perspective.

The next two chapters delve into the Greek situation in particular, as Greece has suffered a more severe economic crisis than any other eurozone country. The seventh chapter explores the effect that the Troika’s policies had on countries in crisis. Stiglitz accuses some European leaders of acting in bad faith by purposefully attempting to punish governments with different political views from their own, which may be accurate. He continues his misguided attack on austerity, though it has more merit against what Europeans have actually done than against real austerity. He correctly explains the problem with primary surpluses, but then commits the broken window fallacy by embracing Keynesian multipliers. Stiglitz accurately diagnoses the problems of increasing taxes, but seeks to aid governments in collecting them rather than encourage economic freedom and stronger property rights. He describes his ideal system of property taxation in the same tone that a proud and unrepentant thief might use to boast of his crimes. Although he is correct to say that particular moves toward privatization and economic freedom may produce adverse results in particular contexts, this is a justification not for state intervention, but for undoing even more statism so as to remove the problematic context. Stiglitz notes that the hegemony of American military power has put Europe into a Pax Romana problem in which it cannot fend for itself against a real threat, but advises that this problem be worsened in the name of fiscal restraint. He compares reductions in pensions to wage theft when the two are clearly different. It is the responsibility of workers to figure out that they are being offered terms which may be impossible for the employer to meet in the future and practice caveat emptor. As for bank bailouts and debt restructuring, Stiglitz describes the situation well except for his faulty view of austerity.

Chapter 8 delves into structural reforms in Greece that made matters worse. Again, Stiglitz’s views of austerity and democracy corrupt an otherwise sound analysis of trivial and counterproductive actions taken by the Troika. He claims without proof that industrial policies are required to advance countries that are lagging behind in technological development, neglecting that markets are not doing this because they are either disallowed from doing so or are assuming that the state will do this for them. He criticizes intergenerational transmission of advantage and seeks to use the state against it, when it should be championed as both eugenic and important for maintaining a natural aristocracy. Stiglitz argues for a price on carbon emissions and claims that the private sector will not address climate change, when again the state has kept this from happening. He finishes by discussing counterfactuals, which is interesting given his empiricist thinking on economics.

The final four chapters deal with various proposals going forward. In the ninth chapter, Stiglitz offers his advice for fixing the eurozone. As before, he embraces what Henry Hazlitt called “the fetish of full employment” as the goal of his policy proposals. Much of the content of the chapter rehashes proposals from previous chapters. He seeks to create common deposit insurance and common resolution while abolishing place-based debt within the EU. This will create moral hazards and work against people who wish to escape debt slavery inflicted upon them by their ancestors. He calls for wages to be raised in countries with surpluses, which will lead to unemployment in those countries as workers whose labor is not worth higher wages are laid off. He fundamentally misunderstands precious metals, failing to understand their role as a store of value and medium of exchange, even if no longer officially used in such capacities. Stiglitz seeks to make the financial sector and other corporations serve society, but fails to recognize that the organs of a statist social order inherently and irrevocably serve themselves at the expense of the society. The shortsightedness of markets of which he complains is actually caused by the institutions that he seeks to use to solve the problem. One of the few sound recommendations made in this chapter is the creation of a super-Chapter 11 bankruptcy procedure to quickly restructure debt. He goes on to propose that EU taxes be based on citizenship, and that some of the proceeds be used for foreign aid or resettlement of migrants, further impoverishing and culturally endangering Europeans.

Chapter 10 examines the possibility of what Stiglitz calls “an amicable divorce,” in which countries exit the eurozone. He considers the example of Grexit, or Greece returning to its own currency that he calls the Greek-euro but would probably be called the drachma, as it was before the euro. He proposes that Greece create a new electronic currency to ease concerns over producing coins and banknotes, stop tax avoidance, bring everyone into the financial system, and facilitate the ability of central banks to create credit. Stiglitz fails to consider that people are likely to reject such a system in favor of cryptocurrencies, which have all of the benefits of such a system without most of the drawbacks, and that such a system could offer states tyrannical control over their citizens. His view of credit indicates magical thinking, although this is quite common in modern financial circles. He again blames the private sector for problems caused by politicians and central bankers, while ignoring peer-to-peer lending as a substitute for modern credit systems. Stiglitz describes a potential system of credit auctions which could be abused with much the same ease as the current system. He admits and supports what should be abhorrent to any decent person: that fiat currencies are ultimately given value by extortion in the form of taxation. Stiglitz correctly says that a new Greek currency would enable them to devalue it to correct trade imbalances, but his proposed system of trade tokens for the same purpose would be redundant. He equates deflation with a deficiency of aggregate demand, neglecting the possibilities of an abundance of supply or improvements in efficiency and/or quality. His description of currency change as a debt restructuring is insightful. To end the chapter, Stiglitz considers the alternative of Germany leaving the eurozone, though it is unlikely that they would give up their current position of power so willingly. This segues into the topic of the next chapter, which is a flexible euro consisting of several subdivisions.

Stiglitz uses Finland as a counterexample against those who claim that profligacy in southern Europe is to blame, rather than the structure of the eurozone. Most of his argument here is correct, except for his view of austerity. His proposal in this chapter is to have several eurozones with fluctuating exchange rates, which could be brought closer together over time as political integration occurs, eventually resulting in economic integration. The details are borrowed from the previous two chapters. Though more likely to succeed than the proposals in those chapters, it is also the least likely to be adopted. Stiglitz correctly recognizes that having a single currency area is an interference in the market in and of itself, monopolizing exchange and interest rates in the area, but cannot seem to fathom that his flexible euro proposal also does this on a smaller scale. He claims that it can be better not to simply rely on prices for the allocation of resources, but does not explain how to solve the local knowledge problem or the economic calculation problem in a superior manner. He also says that history shows free banking to be a disaster, when the truth is quite the opposite.

The final chapter sees Stiglitz review many themes from previous chapters, but he also covers topics which are barely mentioned elsewhere. He denounces anti-immigrant groups in Europe, which are only trying to resist demographic replacement by a ruling class that they did not ask to replace them. So much for the “democratic accountability” that Stiglitz extols in the same breath. He blames right-wing economic ideology for rising inequality in the United States beginning with the Reagan administration, but incomes really began to diverge ten years earlier, when Nixon ended the gold standard. Stiglitz expresses a desire to preserve the Enlightenment values of Europe, but cannot comprehend how letting in migrants with distinctly anti-Enlightenment values will jeopardize that mission. On the issue of trade policy, he understands that free trade is not always best for all parties involved, as it can destroy important societal arrangements that prevent conflict. But then Stiglitz incredulously asks how one could have expected that Europe’s leaders would create such economic dysfunction, with massive unemployment and lack of economic security. The answer is that a proper amount of cynicism would require such an expectation.

Overall, the best thing that can be said for the book is that it is not an effort made in bad faith. Stiglitz correctly identifies many of the problems with the current state of affairs in Europe and seems to want to help, but his proposed solutions are thoroughly misguided. Despite his palpable disdain for Milton Friedman and other Chicago School monetarists, he suffers from one of the worst of their faults: a desire to solve the immediate problems set before him combined with a lack of broader perspective. This leads him to propose a banking system which could be used to terrible effect against political dissidents, tax collection schemes that would indicate criminal intent in any non-statist context, and forced political integration by means of stealth and subterfuge. He also seems to believe that everything would be fine if only state power were used by the right people to implement the right policies. It never occurs to him that the power itself might be the problem. The Euro is an interesting case study in leftist economic thought, but those looking for real solutions to Europe’s economic woes should keep looking.

Rating: 2.5/5

Should Libertarians Support Ethnic Nationalism?

The relationship between libertarianism and the alt-right 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. Let us thoroughly explore the issue to see what support, if any, libertarians should provide to ethnic nationalist movements.

Ethnic Nationalism and Ethno-statism

Many people who support ethnic nationalism are also ethno-statists. That is, they seek to form nation-states that are ethnically homogeneous or nearly so, and they want these states to advance the interests of the majority population in an explicitly racial sense. While many ethnic nationalists advocate voluntary separation, it is unlikely that enough people would do this on a large enough scale to form the desired ethnic separation on the scale of contemporary nation-states. It would thus be necessary to initiate the use of force in order to achieve this goal, and this is nearly certain to occur regardless of whether leaders of ethno-state movements wish it to occur.

Libertarianism is a philosophical position on what constitutes the acceptable use of force. It says that initiating the use of force is never moral, but responding to an initiation of force with defensive force is always moral. This puts libertarians directly at odds with those who would use state power to force people into different associations from those which they would choose. In fact, libertarian philosophy justifies the use of any amount of force to defend against ethno-statists who attempt to forcibly separate people.

At first glance, this may appear to be an open-and-shut case, but there is far more nuance to consider. Unfortunately, most libertarian commentators stop here, failing to consider anarchic forms of ethnic nationalism as well as the role that ethno-statists may play in moving toward a free society, however unwittingly. Let us examine these and other considerations.

Anarcho-ethno-nationalism

The starting point for libertarian ethics is self-ownership; that each person has a right of exclusive control over one’s physical body and full responsibility for actions committed with said control. Note that in order to argue against self-ownership, one must exercise exclusive control of one’s physical body for the purpose of communication. This results in a performative contradiction because the content of the argument is at odds with the act of making the argument. By the laws of excluded middle and non-contradiction, self-ownership must be true because it must be either true or false, and any argument that self-ownership is false leads to a contradiction.

Each person has a right to exclusive control of one’s physical body, so it is wrong for one person to initiate interference with another person’s exclusive control of their physical body without their consent. This is how the non-aggression principle is derived from self-ownership. Each person has full responsibility for the actions that one commits with one’s physical body, so one may gain property rights in external objects by laboring upon unowned natural resources, and one owes restitution for any acts of aggression that one commits against other people or their property. The reason for this is that one is responsible for the improvements that one has made upon the natural resources, and it is impossible to own the improvements without owning the resources themselves. To initiate interference with another person’s property without their consent also violates the non-aggression principle because it denies them the just fruits of their labors.

It is possible to form and maintain an ethnic community using these principles. Someone may acquire land and form a community upon it, granting admission only to those who meet criteria chosen by the property owner. Alternatively, a group of like-minded people may purchase adjacent properties to achieve the same result. As long as no acts of aggression are committed, people who form a covenant community may choose whatever rules for admission and continued membership that they wish. As Hans-Hermann Hoppe explains,

“With respect to some pieces of land, the property title may be unrestricted; that is, the owner is permitted to do with his property whatever he pleases as long as he does not physically damage the property owned by others. With respect to other territories, the property title may be more or less severely restricted. As is currently the case in some housing developments, the owner may be bound by contractual limitations on what he can do with his property (voluntary zoning), which might include residential versus commercial use, no buildings more than four stories high, no sale or rent to Jews, Germans, Catholics, homosexuals, Haitians, families with or without children, or smokers, for example.”[1]

As Hoppe notes, these criteria may have a racial component, as a free society has no state to tell property owners that they may not discriminate on certain grounds that policymakers deem objectionable.

It would not do to leave unaddressed the apparent contradiction in anarcho-nationalism. This is a semantic problem; the word ‘nation’ has become convoluted in its meaning. In this case, nation is to be understood in the sense of the Old English word ‘thede.’ A thede is a group of people who share a heritage, whether this be cultural, genetic, linguistic, religious, or some combination thereof. They define an identity for themselves and consider themselves to be a group of which everyone else is not part. (The term ‘elthedish’ refers to those outside the thede.) A person may be part of multiple thedes or none at all, though the latter makes survival and reproduction much more difficult. Non-genetic thedes can and do exist, but as purely social constructs without a clear biological root, they are less stable and require effort to maintain. With this in mind, it becomes clear that anarcho-nationalism need not refer to the contradictory idea of a stateless state, but to the idea of a group of people with a shared identity and common heritage who reject statism in favor of voluntary forms of social order.

A Liberal Case for Illiberalism

Of course, at this point we may expect outrage from all of the usual suspects that one would lift a finger in defense of racists. The classical liberals among these people would do well to consider their own attitudes toward freedom of speech, freedom of the press, and other such freedoms that they hold to be universal human rights. When they defend these ideas, they frequently find themselves standing up for people who make controversial and/or reprehensible statements. This occurs because censors pursue such people almost exclusively. After all, they have no motivation to target people who make ordinary conversation that has no potential to cause meaningful change. Classical liberals defend their ideological opponents from censorship because they believe that there is a short and slippery slope between infringement of the rights of some and infringement of the rights of most. Thus, they follow the quote commonly misattributed to Voltaire but actually written by Evelyn Beatrice Hall, “I wholly disapprove of what you say and will defend to the death your right to say it.“[2]

What they fail to realize is that the same is even more true of private property rights. In the libertarian view, freedom of communication is not a universal right. As Hoppe explains,

“In a covenant concluded among proprietor and community tenants for the purpose of protecting their private property, no such thing as a right to free (unlimited) speech exists, not even to unlimited speech on one’s own tenant-property. One may say innumerable things and promote almost any idea under the sun, but naturally no one is permitted to advocate ideas contrary to the very purpose of the covenant of preserving and protecting private property, such as democracy and communism. …Likewise, in a covenant founded for the purpose of protecting family and kin, there can be no tolerance toward those habitually promoting lifestyles incompatible with this goal.”[3]

More generally, one has no right to communicate ideas on private property that someone else owns if doing so goes against the wishes of the property owner. Because private property is a more fundamental right than freedom of communication, restrictions on property rights are even more injurious to liberty than assaults upon freedom of speech or freedom of the press. As before, those who use their property in a mundane manner that is unlikely to cause meaningful change are unlikely to encounter interference. Those who are confronted about their non-aggressive use of private property rights will be those who use their property rights in a controversial and/or reprehensible manner, such as excluding people on the basis of race. Because there is a short and slippery slope from interference with politically incorrect uses of private property to all manner of interference with private property rights, those who use their property rights in a controversial and/or reprehensible manner (as long as no force is initiated in the process) should be the first people that libertarians (or classical liberals) defend.

Ethnic Separatism

As explained previously, libertarianism stands against an ethno-statist takeover of an existing state apparatus followed by ethnic cleansing, endorsing the use of force to defend against and stop such events from taking place. But ethno-statism need not manifest in this form. Another possibility is the concentration of people of the same ethnicity in a particular area, who then decide to secede that region from a larger state. Although ethno-statism cannot be supported by libertarians in an absolute sense because it is still a form of statism, there are several beneficial effects which may result from a race-based secessionist effort. This may allow libertarians to offer limited support for such a movement as a lesser evil than the current state of affairs with a possibility for greater potential for libertarian efforts in future.

First, let us consider the political orientation of the typical racial separatist. Overt and elevated in-group preference combined with statism results in an affinity for socialism, which tends to manifest as fascism or national socialism among white nationalists and as communism among racial nationalists of other races. If such people become concentrated in a certain area, it follows that the political climate in said area will become more socialist while the political climate elsewhere will become less socialist.

Second, it follows that ethno-statists are useful for breaking up large, powerful states into smaller, less threatening parts. If, for example, white nationalists were successful in seceding Oregon from the United States, and black nationalists were to do the same with Mississippi, then the United States government would be weaker than it is currently, and the two ethno-states would be weaker still. While there would still be much to be desired from a libertarian perspective, it would be an improvement over current levels of state power.

Third, the departure of the most bigoted and hateful individuals of all races into ethnically homogeneous territories would produce a significant reduction in racial tensions. After all, a multiracial society is more likely to succeed if those who deem it impossible remove themselves from that society, and an ethnically homogeneous society is the only way to satisfy such people. That such a scenario would distinguish the true separatists from race-baiting charlatans so as to expose the latter is a decided plus.

Next, let us consider the possible fallout from such a development. Secessionist movements, irrespective of their impetus, tend to inspire a nationalist response in other parts of a state. While this is fraught with its own dangers because nationalism is hostile to decentralization of power below the national level, nationalism is certainly a lesser evil than globalism, and may serve as a temporary makeshift on the path to a better political arrangement than that presaged by the United Nations and the European Union. If secessionists succeed in their efforts, it will inspire other secessionists to try their hand, some of whom may be far more libertarian than the ethno-statists who began the trend.

Just as altering the concentrations of racists and socialists are two-way streets, so is altering the concentration of libertarians. If people who reject libertarianism in favor of ethno-statism wish to concentrate somewhere and separate from the rest of a current state, this is beneficial for the cause of liberty in the remaining area because it raises the percentage of libertarians there. This could be a deciding factor in achieving the critical mass of libertarians necessary to form a libertarian social order.

Crossover Effects

It is necessary to explore the consequences for the libertarian movement from explicitly standing up for the rights of ethnic nationalists. Because any collaborative interaction between groups is likely to result in some degree of personnel exchange, we may expect that some ethnic nationalists would become libertarians and vice versa. If ethnic nationalists would embrace libertarianism, that means that they would accept self-ownership, the non-aggression principle, and private property rights. As a result, they would have to stop initiating the use of force in their advancement of racism and advocating for politicians to do so on their behalf. This should be regarded as a positive development by any sane person. The presence of such people would also help to counter the worrying development of entryism by social justice warriors and other leftists into libertarian circles by triggering them into leaving.

We may also expect that some libertarians will become ethnic nationalists. They are more likely to become the sort of anarcho-thedists discussed earlier than to ally with national socialists, though the latter is not unheard of. This may be a positive development, in that there is a tendency toward politically autistic hyper-individualism in the contemporary libertarian movement. This is an individualism so extreme that it fails to comprehend group identities or interests, and may even deny their existence and relevance. Mingling with ethnic nationalists may awaken libertarians to the realities of demographic issues and alert them to the fact that they will consistently lose to those who organize around a group identity unless they do so themselves.

The Nature of the West

The final matter to consider is the role of ethnicity in libertarianism itself. Anyone who has been to a libertarian gathering knows that the attendees at any such event will skew overwhelmingly white, and anyone who has studied libertarian philosophy will know that most of its authors are white and/or Jewish. Ethnic nationalists have an explanation for this that fits with the available logic and evidence. Like any other species, humans adapt to their environment. Although humans are uniquely capable of adapting the environment to themselves, differences between individuals frequently outweigh differences between groups, and there has been significant mixing of human populations, these do not completely negate the former effect. Humans in different parts of the world have also developed different cultural norms, governing philosophies, and religious traditions as adaptations to their particular environments. This explains why universally preferable values are not universally preferred and why there is a correlation between ethnicity and the acceptance of libertarian ethical norms. Those who view the West only as a portable set of ideas should consider the above explanation for why the portability of those ideas has been relatively poor and why the continued practice of them outside of the West is linked to a legacy of Western colonialism in such places.

At this point, a few caveats are necessary. None of this is to say that individuals of color cannot become libertarians, or that the failure of non-Western cultures to produce a tradition of libertarian philosophy thus far proves that they cannot. Nor should libertarians who are not of European or Jewish descent be anything less than welcome in libertarian groups. But in the aggregate, demographic disparities are natural and should be expected. The disproportionate number of white or white-passing people at libertarian gatherings is neither a problem to be solved nor an achievement to be celebrated; it is simply a result explained by evolution and history. Thus, there is cause for cautious optimism that some white nationalists may come to reject statism and socialism in favor of creating a libertarian social order in their ethnic communities.

Conclusion

Depending on circumstances, libertarians can support some forms of ethnic nationalism, as long as they only involve voluntary ethnic separation and seek to use private property rights to create their ethnic enclaves. However, libertarians should forcibly suppress those who insist on aggressive violence in pursuit of racial agendas. Regardless of whether they agree with such action, libertarians should defend the rights of anarcho-ethno-nationalists to do this, as it is both a litmus test for true belief in private property and the first target that enemies of libertarianism will attack in a larger quest to diminish or destroy private property rights. This is an actual slippery slope that must be vigorously guarded.

No libertarian can support statism or involuntary socialism in an absolute sense, but the kind of self-quarantine of such ideologies that ethno-statists propose may prove useful for libertarians who do not live in an ethno-state. If ethnic nationalism leads people to break apart larger states into smaller ones, this would be a positive step toward liberty. A more general sense of nationalism may develop in response to ethnic secessionist movements, and while this will present an obstacle to further localization in the long-term, it may be a useful temporary ally against statist globalism.

The West, and the liberty that has thus far uniquely developed from its traditions, is neither exclusively genetic nor exclusively ideological; it is partly both. Libertarian philosophy was mostly constructed by members of particular thedes, and other members of those thedes are statistically more likely to accept this philosophy. Ethnic nationalists can inform and remind libertarians of this so that efficiency may be increased by focusing more on the aforementioned thedes in our conversion efforts.

References:

  1. Hoppe, Hans-Hermann (2001). Democracy: The God That Failed. Transaction Publishers. p. 139.
  2. S. G. Tallentyre (Actual author: Evelyn Beatrice Hall) (1906). The Friends of Voltaire. Published by John Murray, Albemarle Street, London. p. 198-9.
  3. Hoppe, p.218.

Book Review: Libertarian Reaction

Libertarian Reaction is a collection of fifteen essays by Insula Qui. The book explores various issues from a libertarian reactionary perspective. The book is divided into three sections; one focusing on reaction, one focusing on liberty, and a long final essay.

The first part begins with an essay on the limits of libertarian ethics. In Savages, Qui deals with several types of humans who cannot be properly be considered people, and must instead be dealt with as lesser beings. The point that there is a difference between colonialism (the imposition of law and morality on people who have no rational conception of it) and colonization (a parallel development of law and morality while not imposing upon others) is important and oft-overlooked. The essay finishes with a denunciation of both Islam and communism as incompatible with libertarianism if each is to be practiced rigorously. The arguments are correct but elementary, which the author has since remedied elsewhere.

In Borders And Liberty, Qui weighs in on the debate over border policy, concluding that while state immigration restrictions are not libertarian and the only justifiable borders are private property boundaries, closed borders are a lesser evil than the forced integration imposed by modern states. He recommends restoration of the right to discriminate, sponsorship of and vicarious liability for immigrants by those who wish to bring them in, and elimination of welfare programs as methods of improving the current situation. References to support the assertions regarding demographics would improve the case made here.

Prerequisites for Liberty deals with the problem of humans who are not savages as described in the first essay but are nonetheless inclined to aggressive violence. Again, references to support demographic arguments would be helpful. Qui notes several obvious but underappreciated truths here, most notably that a libertarian social order cannot exist below a certain intelligence level, as this would preclude people from understanding the necessary rules of such an order. He correctly states that some people may convert to libertarianism by seeing it in practice instead of reaching it through reason. In fact, this is by far the more likely method of conversion in the near future. The role of hedonistic practices in damaging a social order are discussed, as is the folly of accepting non-libertarians into libertarian circles simply to grow numbers.

The next essay is Voluntary Ethnic Separation, and it explains the difference between what libertarianism requires one to accept and the common caricature of all such ideas as hateful racism. Qui shows great insight in tackling common leftist arguments here. He also makes the important point that collectivism can arise as a benign heuristic to help with decisions because people lack the capacity to deal with individuals beyond a certain point. However, the same demographic claims resurface without proper support. Finally, the point that ethnostatism could be a step toward breaking up large nation-states into more local forms of governance is overlooked by most libertarians, but not Qui.

The Antistatist Case for Monarchial Government is a longer essay that Qui included despite having changed his views on the matter, as he views it as being theoretically important. He makes a distinction between government (a manager of land and provider of essential services) and state (an entity that exercises a monopoly on initiatory force) which is lost on many people. He also explains that while a libertarian society would be imperfect, a state has even worse inefficiencies. Later, Qui hints at a potential problem with wilderness areas falling victim to a tragedy of the commons, but this could easily be solved by homesteading such areas. There are two significant errors here: a lack of accounting for the arguments made by Stefan Molyneux and others in favor of private dispute resolution organizations with regard to how law courts could function without a state, and a contradiction concerning redistribution and efficiency. The final part of the essay reads much like Hans-Hermann Hoppe’s case that monarchy is superior to democracy, and is reminiscent of the real-world example of Leichtenstein.

Qui tackles an uncomfortable issue that perhaps interests too many people in libertarian circles with The Libertarian Solution to the Age of Consent. He quickly rebuts the left-libertarians who wish to let children make decisions regarding sexual conduct, describing parenting of young children as a sort of regency until the child gains the ability to use reason. But Qui errs in saying that damages done by improper parenting are no different from any other sort of crime, as one can never truly be made whole from the lifelong detriments caused by improper parenting.

Dysgenics and Market Nobility discusses the corruption of the phrase “all men are created equal” from a statement of equality before the law into a belief in human biological uniformity. In doing so, he distinguishes between the natural elite of a free society and the power elite of a statist society, which are often conflated by leftists. Qui then explains how the two tend to work together in statist societies to keep the same families at the top for centuries rather than let the rags-to-riches-to-rags cycle properly play out. The essay then turns toward dysgenics, which refers to programs that have the opposite of a eugenic effect. The roles of feminism, sexual liberation, and welfare statism are examined in this light.

The first part concludes with Civilization and Natural Law, which makes unconventional but strong arguments in favor of censoring and physically removing people on the basis of their political opinions. Qui’s case is more utilitarian and reserved than it needs to be, but he still reaches the correct result that freedom of speech is a privilege that comes with owning property, not a fundamental right. He then finds that the solution to intractable differences between people and groups is mutual discrimination and exclusion, as forced integration necessarily results in racial tensions.

The second section begins with The Freedom of Government, which revisits themes from several of the previous essays. Qui makes a powerful case that people who claim to believe in democracy but deny people the self-determination to choose their form of governance are charlatans. He also observes that a large enough number of small monarchies is effectively equivalent to a libertarian social order. The only problem with this essay is brevity, as more explanation of each point would greatly improve the presentation.

The Curse of Citizenship explores how the modern state makes its subjects into cogs of its machine through citizenship as a legal concept. Qui shows that democracy, contrary to leftist propaganda, only makes this worse by providing an otherwise absent appearance of legitimacy. He correctly recognizes the futility of localism as an ultimate strategy, as it fails to account for the supremacy of higher levels of government. But his contention that “corruption within the state is nothing other than the people who are creating the illusion themselves being aware of the illusion” is misguided; one can have this knowledge without weaponizing it into corruption, and one can be corrupt without such an awareness.

In The Role of Co-Operation in Competition, Qui refutes several myths about capitalism. First, he proves that capitalism is not as anti-social as its critics claim. Second, he corrects the misconception of competition as being necessarily aggressive in nature. Third, he explains how competition can actually be a form of cooperation, in that individuals or groups can agree to compete in order to find out which methods are superior. Qui segues into several examples of cooperation that are not strictly competitive, such as food companies co-marketing with drink companies and agreements between private road companies. To complete the argument, he examines how the contrapositive is also true; namely, that removing competition also removes an incentive to cooperate. He finishes with a brief discussion of cartels and makes the insightful observation that a labor union is not commonly recognized as a cartel, despite functioning much like one.

It is only in Reverse Claims to Property that Qui truly goes off the libertarian reservation in his thinking, though he admits at the beginning that he may be doing so. Here, he tries (and fails) to invent an inverse of property rights to resolve questions of state-occupied property and wilderness areas. Qui again neglects other libertarian theories on how to deal with pollution. This un-ownership would, as he suggests, legitimize rights violations in some cases.

In Who Watches the Watchmen, Qui explores the libertarian answer to this age-old question, namely that the watchmen (in the form of private defense agencies) all watch each other. Here he enters an off-topic though informative discussion on the impossibility of eliminating the state by democratic means. He then returns to the topic to find that re-establishment of a state is the worst case scenario in a stateless society, but all economic and military incentives work against it. That it is the worst case means that all other outcomes must be better, setting this particular objection on its ear.

National Defence Without Coercion is the last essay in the second part, and it deals with the subject at length. Qui begins by noting the common fallacy committed by statists: using a state to defend people against other states does not change the fact that people are subjugated by a state; it only changes which state is in control. He covers the basics of how a private defense agency should function, but is a bit too enamored with nationalism. His comparisons between a private defense agency and an insurance company make one wonder where such arguments were in earlier essays. The latter part includes some novel thought on how the facilities of a private defense agency might be employed in other ways during peacetime. The conclusion discusses the difference between pre-modern gentlemen’s war and modern total war, with libertarianism likely to end modern warfare and return us to the less destructive pre-modern type of warfare. This essay and the previous essay could have been combined.

The final part consists of one much longer essay titled Examining Cultural Destruction. Qui examines the causes and symptoms of cultural decay, then proposes solutions. The role of the state and central banking in reducing time preferences is explained, then Qui shows how capitalism makes this worse not by being bad in and of itself, but by amplifying whatever inputs it receives. Egalitarianism is blamed in the Rothbardian sense of a revolt against nature, as is the loss of autonomy and identity that statism causes. Symptoms of these causes are identified as the demonization of productive work, the collapse of stable interpersonal and family relationships, the loss of spiritualism and hierarchy, the ascent of shallow materialism, the prevalence of escapism, and the expansion of empiricism into inherently rational disciplines. To solve these problems, Qui recommends absolute private property rights, abolition of central banking and as much of the state as possible, and a restoration of traditional values.

The first word that comes to mind when describing the entire collection is ‘incomplete.’ Qui lacked an editor for the book, and it shows. The grammatical constructions and punctuation are frequently in need of revision, and each of the essays would benefit from a much deeper bibliography. But the thoughts expressed therein are sufficiently intriguing to merit reading despite these flaws.

Rating: 4/5

On Consumerism, Corporatism, Time Preference, and Modernity

Consumerism

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

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

Corporatism

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

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

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

Time Preference

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

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

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

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

Modernity

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

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

Conclusion

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

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

On Citizenship And Casual Totalitarianism

This article expands upon an essay found in Libertarian Reaction.

There are many statists who actively fight against totalitarianism. This may not seem inherently contradictory, but the key to understanding totalitarian ideology is completely ignored by them. The very machinations of the state require totalitarian control over the population. To say that there can be a state without totalitarianism is a contradiction. Totalitarianism originates largely from early fascist theory but has similarly been associated with authoritarian communism. This seems simple enough; a state that attempts to control all parts of society is totalitarian, while a state that does not is just liberal or conservative. Therefore, there is a distinction between a good justifiable state and an evil unjustifiable state. People can make more distinctions based on economic and political systems, but the vast majority agree that totalitarianism is ultimately what determines whether or not a state is ethical. Very few people act as if the Third Reich was a valid exercise in statecraft, and only a few more similarly defend the actions of the Soviet Union. There are also other such regimes, various authoritarian socialist experiments, and lower profile fascist states.

Control Through Law

It is physically impossible for a state to control the lives of everyone. This problem is solved by having the state legislate and regulate, then allowing the enforcers of these laws and regulations to have special privileges, so as to give the state the ability to convict any person the state wants to convict and punish in any way the state deems appropriate. In this manner, one may create a totalitarian state. For obvious reasons, these sorts of states have no regard for human rights or basic decency. Rather, they are directly opposed to the civilized nature of man. Although most people understand this, they do not understand that any state is inherently totalitarian. There are historical exceptions to this, but they are very few and far between and have long since disappeared. Because this is the case, we cannot act as if the historical possibility of a non-totalitarian state is a valid argument. Even if a state can be free of or largely lack totalitarianism for a limited time, this can never last.

Citizenship and Personhood

At the heart of the issue is the very thing that defines the state for all individuals: the aspect of citizenship. Every person under a state is the citizen of that state, which means that they have a relationship with the state in which the state is in a privileged position of control over the citizen. The relationship is even more integrated as without the state, no one can be a citizen. Due to the form of citizenship practiced in modern states, the ability to delegate citizenship gives the state the power to delegate legal personhood. In this system, a non-citizen is as good as a non-person, as they are without the legal protections that other people enjoy.

Because the actions of the citizens affect the relationship of the state with other states and the rest of the citizenry, the state has an interest in subjugating the people under it. This is because the people who live under a state are by necessity people whom the state must control and is expected to control by the rulers of other states and the citizens of that selfsame state. If the state does not control its people, then the state will lose perceived legitimacy as it fails to curtail adverse social effects that result from individual actors who act contrary to a state’s domestic and foreign policies.

From this, any actions taken in a statist system must not only require the consent of all parties involved, but also the consent of the state. The state effectively becomes a secular god, in that it can arbitrarily decide who is or is not legally a person and how people must or must not act. This must be the case with any state, no matter its size, scope, form, or ideological position. The state must hold a monopoly on law in a certain region, as failing to do so would both run afoul of the definition of a state and allow agents of the state to be held accountable for the crimes they commit under color of law. In order to do this, the state needs to make the people within its claimed territory into its citizens. The modern statist system relies upon citizenship, and the states within it would have no justification without such subjects.

Casual Totalitarianism

By this reasoning, there can be no state without totalitarianism. However, this is not the form of totalitarianism that was present in Nazi Germany or the Soviet Union. This is a casual totalitarianism, which is far more insidious than any explicit totalitarianism. In this totalitarianism, the state allows people to sell their labor to a crony capitalist who has swindled for himself special privileges from the state in what is called rent-seeking behavior. Thus, the worker has to either accept terms that no person would rationally accept if given a real choice or work in the black market. This is seemingly voluntary, and most people can get hired to work somewhere, so there can supposedly be no complaining. However, if a person actually tries to do the job that one wants to do as one wants to do it, one runs into mountains of regulations and legislation that an entire team of lawyers must review for compliance. They are also faced with licensing requirements and other privileges that the state keeps for itself and only distributes as the ruling class sees fit. Due to the involvement of the state, we cannot say that there is any legal voluntary economic activity in the current system, as there is no legal economic activity without the state. This is only possible because the state maintains a monopoly on law.

Furthermore, the state can legislate with regard to any relationship, whether interpersonal or political. One cannot engage in any activity without first getting the consent of the state. The state replaces faith and culture when it comes to marriage, as the state decides which marriages and types of marriages are valid and which are not. The state replaces any sense of morality when it comes to law through the doctrine of legal positivism. What matters becomes what is legal rather than what is morally righteous. The state assumes full control over one’s life without arousing suspicion in most people. The state even takes control over what happens between a citizen and himself. That is, the state replaces free will. In the modern world, the state may allow one to engage in any sort of degeneracy under the sun, but the moment the state is harmed or lessened in influence from whatever a person does with himself, the state will forbid it. The state is thus omnipresent, and for many people, this is enough; if they are forbidden from doing something by the state, even when it affects no other persons, they will not do it. People will actively avoid anything illegal, as the state has replaced morality and thinking for oneself.

Because of this, there is no such thing as individualism in the presence of the state. There is effectively only one real person, and that person is the state. No one other than the state can act in any meaningful manner without the consent of the state for fear of being shut down. The state will always make all decisions, even if we do not realize it. Neither will the citizens have a choice in their own minds, as the state has replaced them as people. Thus, we are stuck in a form of totalitarianism, which only differs from place to place and from time to time in the degree of apparent restriction. Some will claim that democracy counters this tendency towards totalitarianism, but if anything, liberal democracy only enables the total state. Without the apparent will of the people, the state cannot designate who the people are without breaking the casual nature of its totalitarianism. The citizens give up their own rights as humans and give the state the right to decide for them. The state needs some sort of mandate, as it needs the citizens to listen to its commands and the government agents to enforce these commands. This may be more or less explicit, but it is always present by necessity. Mass democracy demonstrates this better than any other system.

Ending Totalitarianism

The single greatest show of submission is to beg for the state to lengthen one’s leash, as no matter what happens, one will still be collared. The state will not be changed by begging, as the state is by necessity a totalitarian institution. The only meaningful exercises of power by the people are to subvert the state or overthrow it. The state is antithetical to morality, freedom, and humanity by design, and it cannot be designed otherwise. It is therefore necessary to create an alternative form of governance and defend it against the state. The precise nature of stateless organization will vary from place to place and must be decided by the organizers in each locality.

It is vital that we remove totalitarianism from society if we wish to ever achieve real human liberty. If one believes this, then the precise details become less relevant as it creates an entirely new paradigm of political theory. The alliances and conflicts of previous theories are subordinated to the point of irrelevance. This is not to say that we should support those who call themselves anarchists but simply want global socialism; rather, it is to say that regardless of whether people organize along socialistic, capitalistic, progressive, or reactionary lines, it will be of secondary importance because the highest priority for any living person today should be the elimination of the inherently totalitarian state. Personal preferences about the actions of others will only take precedence once we have freed ourselves from the state and created a society of distinct and free persons. If we do not do this, then we will necessarily choose totalitarianism.

Privatizing State Security

The title of this article is an intentional contradiction. Not only is the modern state a coercive body that initiates and sustains itself through violence (thereby lying through its teeth about “national security”), but the real aim of this article is to bypass the state security apparatus altogether. In short, this article will make a modest proposal: in order to subvert the military-industrial complex, citizens and parallel alternative institutions should think of security in private terms.

First and foremost, security is the duty of individuals. Everyone should realize that nobody can care about their own lives as much as they do. Therefore, owning a gun or any other weapon is neither an extravagance nor an antisocial threat; it is the most effective means of protecting one’s most fundamental right, the right to life.

If a disability or some other impairment makes self-protection an impossibility, then families or communities should fulfill that role. In contemporary society, many people suffer when these steps of self-defense are bypassed completely and the state is given total control over security, especially those who live in urban centers or states with restrictive gun laws. The police cannot be everywhere at all times, and much of their time and effort is consumed by enforcing useless laws which actually endanger the public.

Besides inefficiency, relying on the state for one’s personal safety is a gross waste of money. On a national scale, there is no entity that drains the coffers quite like the Pentagon. Late in 2016, the Defense Business Board released a report criticizing the Pentagon for trying to cover up $125 billion in bureaucratic waste. Besides wasting roughly $400 billion on the clearly deficient F-35 Joint Strike Fighter, the United States military apparatus wastes taxpayer money on such vague extravagances like “overhead” and “administrative fees.”

If such monumental waste is not enough to convince people that America has a problem, then the continuing mess in Afghanistan should. After sixteen years of warfare, the Taliban is still holding large swaths of the country, ISIS is putting up a fight, and the government in Kabul remains mind-numbingly corrupt. This is what $714 billion of taxpayer money has won us so far.

President Donald Trump came into Washington, D.C. with promises of making “America First” not only an economic slogan, but also a foreign policy motivation. Before he became a candidate, he railed against the waste of the Afghan war and hinted that, if elected president, he’d pull US troops out of the country.

The president had a chance to do just that in August 2017. He chose instead to send a small, additional force of 4,000 troops—the type of force that is big enough to look like his administration is doing something, but too small to have any meaningful significance on the ground. Half-measures usually mean nothing, but half-measures really mean nothing if they do not go hand-in-hand with policy changes or new modes of strategic planning.

President Trump’s Afghanistan strategy should only merit our attention because it briefly shined a light on a true alternative. Erik Prince, the former US Navy SEAL who founded Blackwater USA and now runs Frontier Services Group Ltd., proposed replacing America’s military with private contractors. Prince’s solution promised to not only save $40 billion a year, but its establishment of a “viceroy” (an old imperial term that Prince used in a somewhat cheeky fashion) and a smaller, more specialized American military force would mean less bodybags coming home on C-130s every year.

Prince’s proposal was not only shot down like an enemy plane, but, while discussing his plans on NPR, Prince was labeled a “warmonger,” criticized for trying to undermine the morale of military NCOs, and lambasted by nominal liberals for denying the state its right to unlimited control over violence. Throughout it all, Prince kept reminding his opponents that private warfare is as old as prostitution, and is certainly not uncommon in American history.

Private warfare is due for a comeback. However, not all mercenaries are equal. Each type of private warfare that can be found in history has had its downsides. Several will be discussed below with an eye towards finding which one could be best utilized in the fight against the tyrannical warfare-welfare state. A private military ethos could not only break the back of warfare socialism, which has become standard in the United States with or without war, but it could also begin the process of conditioning American citizens away from thinking about the state as being synonymous with security.

The Freikorps Model

Right after the armistice to end World War I was signed, millions of German troops returned to a Germany that they thought would welcome them as heroes. That is not what happened at all. Following the declaration of the German Republic, which was controlled by the Majority Socialists (the Social Democratic Party, or SPD), many on the German left seized the opportunity to formalize Karl Marx’s dream of a communist German state. The most organized of these groups were the Spartacists, a collection of radical Bolsheviks led by Karl Liebknecht and Rosa Luxemburg (the latter of whom was a naturalized German citizen of Polish-Jewish ancestry). The Spartacists and their sympathizers briefly controlled Berlin, and were in certain parts joined in their rebellion by mutinous sailors from the major German port of Kiel.

For the Sparticists, this revolution was not only in fulfillment of Marx’s dream of a proletarian utopia in Europe’s most industrially advanced nation, but it was also a way to kill the “sellout” republic in its infancy. In this one respect they were right, for many of the Social Democrats like President Friedrich Ebert and Minister of Defense Gustav Noske were Wilhelmian patriots who had supported the war and who were not entirely committed to the aims of the leftist elements in their party.

The new government needed to put down these rebellions quickly. The problem was that several members of the German defense establishment were on the side of the communists. The Chief of Police in Berlin at the time was Emil Eichhorn, a member of the Independent Social Democratic Party of Germany (USPD) and a man dedicated to supporting the Bolshevik takeover of the Prussian capital. At one point, Eichhorn released several political prisoners, including several well-known communists.

Desperate to suppress this communist rebellion, the Republic turned to the new private militaries known as the Free Corps (Freikorps). Not wanting to return to normal life and what they saw as the constraining norms of the bourgeoisie, thousands of soldiers volunteered to serve in regiments headed by authoritarian junior officers. From the very outset, these troops loathed the new German Republic and saw its supporters as the chief reason why they lost the war (the “Stab-in-the-Back myth”). But, for the time being, Ebert and Noske believed that these battle-hardened veterans would need little encouragement to begin attacking communists on German streets. They were right.

However, in making a pact with the devil, the Weimar government spelled its own doom in 1919. After all, Freikorps soldiers despised liberal democracy and always saw the eradication of “Western” values in Germany as their raison d’être. In the book Vanguard of Nazism, Canadian historian Robert G. L. Waite quotes one Freikorps soldier as saying that their mission was always political:

“These people still believe that could build on the same lies and false sentiments with which—in spite of unheard of sacrifices on the part of soldiers—they had lost the war against the Western world. Now this lie was fulfilled through the acceptance of Western democracy. Now this blasphemy was made official. The western bourgeoisie had triumphed…We [the students of 1918] replied: We must become nihilists in order to crush tis rottenness underfoot.”[1]

Not long after performing services on behalf of the government, the Freikorps soldiers became, in their own words, “outlaws” who rampaged and pillaged ostentatiously on behalf of German nationalism, but, more truthfully, on behalf of their own desire for action. Freikorps units, which designated their commanding officers as Führer, believed in the principle of “primitive man.”

One of the admirers of Captain Hermann Ehrhardt, the leader of the best Freikorps unit, the Marinebrigade Ehrhardt, was positively described as having a “primitiveness and simplicity” that exuded a “stoic soldierly instinct” that had no time for “political or philosophical convictions.”[2] Such mindless destruction saw Freikorps units pillaging the Baltic territories on behalf of Germany and the White Russian Army. Other Freikorps soldiers found more appeal in the violent radicalism of the Bolsheviks and the Führer Vladimir Lenin.[3] These “Freebooters” craved action and violence. They became a law unto themselves, as evidenced by the Feme murders, a series of political assassinations that may have killed as many as 354 “traitors” on behalf of the German Volk.[4]

The problem with recreating a Free Corps movement in America is obvious: such political militias can never be fully trusted by owners of property or those who seek a stabilized social order. The Freikorps glorified in chaos, and chaos is the enemy of liberty. The story of the “beefsteak” Nazis (brown on the outside, red on the inside) also sheds light on the fact that Freikorps soldiers routinely switched their allegiances, especially between the two most powerful totalitarian ideologies.

While a Free Corps movement made up of American veterans may not be so prone to utopian ideologies, America in 2017 is not Germany in 1918. American degeneracy is caused by prosperity, not material poverty or the shame of military defeat.

The Condottieri Model

It is easy to romanticize the military engagements of the Middle Ages. After all, unlike modern wars perpetrated by nation-states, warfare during the medieval age was a small-scale affair between kings and their private armies. Most of the time, medieval cities and villages were left alone so long as they paid a fee and offered up no resistance. In Anatomy of the State, Murray Rothbard quotes F.J.P. Veale in saying that “the rich burghers and merchants of medieval Italy were too busy making money and enjoying life to undertake the hardships and dangers of soldiering themselves.”[5] Therefore, these townspeople hired foreign mercenaries to defend them. When a threat was neutralized and the job was done, these mercenaries were paid and told to go away.

The benefit of this system was that civilians were mostly left alone and could continue with life and trade. Theoretically, these mercenaries would try to avoid unnecessary casualties, and would only attack villagers and burghers if their payment was not forthcoming. Unfortunately, this is not always how it played out. As noted by Joseph R. Stromberg, many mercenaries of the Early Modern period set out to become territorial lords, which essentially meant that they began wars of aggression in order to claim private kingdoms. “Many mercenary captains aspired to become outright political rulers—men on horseback—rather than mere subcontractors in the business of security provision.”[6]

Although these mercenaries, known in Italy as condottieri, did not engage in the type of warfare that indiscriminately killed civilians or created undue hardships to lives and property, they nevertheless injected political chaos wherever they went. Then as now, mercenary bands attracted men of action who grow easily bored with too much peace. Such men are prone to engaging in conflict only to satisfy their boredom. In the 19th century, American filibusters (not to be confused with the parliamentary tactic) undertook private military expeditions to Latin America in order to aid local liberals, establish private fiefdoms, and/or spread the business of slavery. In the 20th century, adventurers have had a hand in destabilizing Germany, Africa, and Asia.

The idea of creating modern mercenaries in America is downright silly. First, foreigners should never be in charge of another nation’s security. Second, mercenary warfare in the presence of states is almost always offensive in nature, thereby making imperial expeditions all but a certainty.

The Militia Model

The militia has a long and storied tradition in American history. Militia troops were key to the American victory in the Revolutionary War, for militia units utilized small-scale tactics, guerrilla warfare, and targeted assassination of British commanders that forced the British to penetrate deep into the American hinterlands. This over-extended British supply lines, thereby making it easy for American militia fighters to win the day in small to medium-sized battles.

Militias are also synonymous with republics. The Second Amendment not only enshrines the right to self-defense, but the right to form militias as well, though both came under heavy attack by the Supreme Court in the intervening years. In a better world, all American communities would be able to form their own militias in order to protect their property rights and dissuade the vampiric state from overstepping its official limitations. Militias do not have to be standing forces, but it would be in the best interest of a community if all able-bodied men were well-trained and adequately prepared for emergencies and insurgency-style warfare. The best feature about militias are that their small size and local focus make them best-suited for defensive warfare rather than offensive warfare. Militias are not designed for long, extended wars of conquest. Rather, a militia unit is designed for low-intensity conflict wherein they have the advantage in regards to intelligence, knowledge of terrain, and maneuverability.

Modern America will undoubtedly recoil at the very proposal of forming militias. Thanks to a campaign of disinformation during the 1990s, when homegrown militias became synonymous with white supremacist politics and domestic terrorism, any militia that forms today will be quickly infiltrated by government agents. A militia directly threatens the state’s monopoly on violence. The state and its supporters know this. Look no further than the overreaction surrounding the standoff between Ammon Bundy and Western ranchers against the Bureau of Land Management. The same people who fret over “Islamophobia” and police brutality towards blacks were the same ones advocating for dropping bombs on American citizens.

Conclusion

The painful truth is that all these options would be snuffed out by the modern Leviathan state. From a purely logical perspective, an American Free Corps might work, so long as sympathetic junior officers decided that it was right to let their men become political soldiers. The US military has many regulations dictating what service members can and cannot do while in uniform. Therefore, any Free Corps creation would automatically go against the oaths that many of its potential members took upon enlisting in the US military. Most take these oaths very seriously.

The likelihood of American mercenary bands serving stateside is nil. While libertarian or right-wing mercenaries serving abroad is a bettter idea than current practices, these men will undoubtably face prosecution on charges of treason or terrorism for daring to fight for a country or an idea that goes against progressive liberalism.

In the end, a militia force makes the most sense if Americans are serious about maintaining their local liberty in the face of an increasingly tyrannical state. That said, this militia must function in strict secrecy. Wearing uniforms and bearing flags is a sure way to draw the attention of the FBI or local law enforcement. Conversely, without such uniformity, many military bands lose cohesion and fall into infighting.

Unfortunately, there are no perfect answers to this situation. The idea of a powerful state is now unthinkingly accepted by Democrats, Republicans, and centrists. Republicans rely on the votes of military members past and present, and so would be unlikely to support any measure that threatens the force and violence monopoly enjoyed by the Pentagon. Democrats would shriek “racism” and “terrorism,” and would run to the receptive state in order to have these units put down with extreme prejudice. It is also unlikely that many ordinary Americans will rush to join bands of guerrilla fighters, despite the promise of status and a bit of excitement.

At this point in time, the best thing that could be hoped for is that a wide swath of Americans would come to accept the reality that the security of their lives and the lives of their neighbors depends on them and their willingness to use force in defense of life, liberty, and property. This thought crime starts the process of rejecting the state’s monopoly on violence, and could ultimately lead to a new, more privatized model of security. But until we can produce more thought criminals, arguing over how to best create private security entities is a fruitless endeavor.

References:

1. Waite, Robert G. L. (1969) Vanguard of Nazism: The Free Corps Movement in Postwar Germany, 1918-1923. W.W. Norton and Company. p. 55.

2. Ibid, p. 165.

3. Ibid, p. 274-275.

4. Ibid, p. 216.

5. Rothbard, Murray (1974). Anatomy of the State. The Ludwig von Mises Institute. p. 49.

6. Stromberg, Joseph R. (2003). “Mercenaries, Guerrillas, Militias, and the Defense of Minimal States and Free Societies.” The Myth of National Defense: Essays on the theory and History of Security Production, ed. Hans-Hermann Hoppe. p. 219.