On Immigration and Outlawry

By any objective measure, the immigration system in the United States is a joke. Current estimates find at least 11 million illegal aliens living in and working in the United States. There is a possibility that the real figure is significantly higher, given the fact that criminals do not normally volunteer to tell census takers about their criminal exploits.

If one needs any more proof that American immigration policy is a logical mess built on wobbly legs of moralism, then one need look no further than the current controversy over DACA. Deferred Action for Childhood Arrivals, which produces so-called DREAMers, is nothing more than warmed-over pablum about each new arrival making America more “American.” The Left fights for illegal immigrants and their children because Hispanics and Asians, who make up the majority of America’s immigrant population, are among the most solidly Democratic voters in the country. Mainstream Republicans tend to favor “amnesty” or “immigration reform” because their corporate overlords have an unending appetite for cheap labor. The mushy middle either keeps silent or pretends to support DREAMers and other illegal aliens simply because they do not want to look like the “bad guy.”

Curtailing illegal immigration is a public safety issue. Contrary to establishment media propaganda, illegal and legal immigrants are overrepresented in American crime statistics. They are nine percent of the U.S. population overall, but make up about 27 percent of the federal prison population. It is also a cultural issue that directly weakens the original American promise of liberty. Freshly arrived immigrants and well-established immigrants both use welfare at higher rates than the native-born. 48 percent of all immigrant households are on some kind of welfare. Hispanic immigrants alone use 73 percent of this 48 percent share. Such welfare dependency expands the vampiric state, and in turn promotes the continuance of anarcho-tyranny (more on that shortly). Such a state will never voluntarily shrink itself; therefore, the more immigrants America has, the more the American Leviathan will expand and consume.

Illegal immigration has helped wages for working-class Americans to either stay the same or decrease since the 1970s. These Americans, many of whom have failed to get the stamp of approval of the neoliberal world order that is known as a college diploma, the opportunities for ascending the economic ladder have virtually become null and void. This is a direct suppression of economic liberty via the coercive force of the state and its unwillingness to enforce its own laws.

Finally, curtailing illegal immigration means protecting the unique heritage of the United States. America is not a “proposition nation,” nor can such a thing really exist, despite all of the starry-eyed propaganda to the contrary. America and its culture can be traced back to the English Reformation of the 16th century. New England received the rebellious Puritans, who dissented from the Stuart’s practice of the divine right of kings and the supposedly godless idolatry of the “popish” Anglican Church. Virginia on the other hand became the home of Englishmen from the Vale of Berkeley, a part of old, Anglo-Saxon England with a strong tradition of slavery and hierarchical social relations. Subsequent waves of Scots-Irish, French Huguenot, and German Protestants added to this English culture, thus creating a firmly Anglo-Celtic and Protestant nation by the 18th century. The Declaration of Independence and the Constitution did not make America; these failed pieces of paper merely tried to document a culture and a people that already existed. This culture is precious and should not be beholden to the whims of transnational corporations or academic aristocrats who control the moral economy.

A true libertarian alternative to America’s broken immigration system would emphasize the concept of outlawry. This pre-modern designation, along with attendant penalties, would not only help to decentralize border enforcement, but it would also prioritize punishments for those individual aliens who enter the United States illegally and who commit crimes against people and/or property. By branding illegal aliens who also attack Americans as outlaws, enforcement would fall to local jurisdictions, not to the monolithic federal government.

Anarcho-Tyranny

The term anarcho-tyranny was first coined by paleolibertarian writer Samuel T. Francis. According to Francis, this is a state of affairs in which real crimes are not policed, while innocents are tyrannically controlled. Francis’s concept echoed the wisdom of 18th century conservative Edmund Burke, who noted that “Society cannot exist unless a controlling power upon will and appetite be placed somewhere, and the less of it there is within, the more of it there must be without.”

When it comes to state-enforced multiculturalism, freedom of association is curtailed under the auspices of keeping the peace. Ingrained tribal prejudices must either be shamed out of existence or injected with happy drugs. Christian bakers must create wedding cakes for gay couples so that the neoliberal state maintains the consent of homosexual voters. Americans who exercise the right of self-defense in some states have to deal with the prospect of police officers invading their homes and confiscating their guns because someone claimed that they were crazy. All of these are examples of anarcho-tyranny in practice.

Anarcho-tyranny can be seen when Antifa and Black Lives Matter agitators are allowed to riot while the Unite the Right demonstrators faced down riot police after suffering the slings and arrows of the control-left. Every violent protest in recent memory could have been put down with extreme prejudice against radical leftists, but the police almost invariably hang back either because they do not want to be called “racist” or because their superiors told them to give the rioters room to blow off steam. (When they do not hang back and instead form and hold a protective line, events tend to remain nonviolent.) These decisions not only cost private businesses and business owners millions of dollars (when was the last time that violent protestors in America seriously attacked state buildings?), but they also directly oppress law-abiding citizens. After all, what does the state do better; capture real criminals or harass individuals exercising their liberty?

When it comes to illegal immigration, the state has the money and resources to enforce existing immigration laws. It simply refuses to do so because it is in its rational self-interest to behave in this manner. A multicultural society with low trust levels between citizens is the ideal state for those who seek to create statism. When neighbors do not trust each other or do not even interact with each other, each threat, real or perceived, becomes the job of outside forces, namely the police. What this does is remove the responsibility of personal and communal defense from individuals, thus further legitimizing the idea that the state is the only entity that has a right to use violence.

The Concept and Practice of Outlawry

In pre-modern societies, outlaws were those individuals or families who directly threatened the security or private properties of the community. Since these communities managed their own security and made their own laws, they had a very visceral idea of why branded outlaws were dangerous.

In ancient Greece, organized thievery was considered a somewhat legitimate way of earning money. Later Balkan cultures (for instance Serbia) relied on bandit warriors named hajduks in order to resist Ottoman Turkish control. British Marxist historian Eric Hobsbawm would later characterize the hajduk figure as an “invented tradition”—a masculine folk hero that lived outside the cloying strictures of both Turkish and official Serbian rule.

The ancient Romans did not take the Greek view of banditry. The Roman Republic considered outlawry to be the antithesis of Roman virtues like Industria (industriousness) and Severitas (self-control). The later Roman Empire similarly took a dim view of outlaws. The punishment for banditry was fierce—all outlaws became “non-persons” and were barred from maintaining or earning Roman citizenship. Furthermore, outlaws, which were known in Latin as latrones, faced the threat of losing all property rights, crucifixion, or being used as animal bait during gladiatorial games.

Several famous outlaws struck against Rome, thus showing why the Senate and the Caesars took outlawry so seriously. Between 147 and 139 BC, Viriatus, a Lusitanian sphered led a rebellion against the Roman government. After surviving praetor Servius Sulpicius Galba’s massacre of the Lusitani, Viriatus swore revenge and created a peasant army in what is today Portugal and Spain. Viriatus’ army initially had the upper hand during the Lusitanian War, especially when Celtiberian tribes decided to join his cause. Ultimately, Rome crushed the insurrection by renewing the war after Viritaus agreed to a peace with Fabius Maximus Servilianus. Servilius Caepio bribed war-weary Lusitani emissaries with a money and peace if they assassinated Viriatus, which they did. Rome would rule Hispania until the 5th century AD.

In the medieval world, outlaws continued to plague private citizens as well as the state. In medieval England, outlaws were those individuals who were considered “outside of the law” (hence “outlaw”). These individuals had been accused of crimes in court, and if they failed to appear before a local judge, the sheriff was sent to get them. Robin Hood is the most famous outlaw of this period. In the late medieval courts, outlaws were those who committed treason, rebellion, or murder. A special writ of capias utlagatum could be issued by the Crown or Common Pleas. In these instances, sheriffs could seize the property of outlaws, which was then forfeited to the Crown.

As recounted in the work of Michel Foucault, pre-Enlightenment Europe disciplined all outlaws and criminals very publicly. For instance, in 1757, Robert-Francois Damiens, a domestic servant who tried to kill King Louis XV, was drawn and quartered by the command of the king. Such punishments seem ghastly to us today, but that is only because the Enlightenment took a completely radical approach to the entire concept of criminality.

Thanks to social reformers like Jeremy Bentham and others, crime became something that could be cured, or, at the very least, hidden away from society. This idea of criminality as something “antisocial”—as something against the mass of individuals that make up so-called society—led directly to the growth of the impersonal penal state. Rather than be punished and made to perform restitution by the Crown or the process of common law, modern-day outlaws are institutionalized by prisons that operate very much like schools and hospitals. In essence, outlaws are still those who go against the wishes of the state, but the modern state sees it as its duty to try and rehabilitate these criminals. Of course, the government seizes money from private citizens in the form of taxes in order to carry out these hare-brained designs.

For A New Outlawry

Officials in the modern state have no real conception of interpersonal violence because the state is not controlled by a small set of private individuals. The state is a monstrosity that moves forward with its own internal logic, regardless of which political party is in power. In order to reclaim any sense of liberty in the modern world, America must embrace the pre-modern sense of security and responsibility as primarily the province of local communities.

Rather than rely on labyrinthine state and federal laws that only seem to allow repeat offenders to constantly cross back and forth between borders, a more sane alternative would simply brand those illegal immigrants who commit serious crimes as outlaws, seize their property (if they have any), deny them the possibility of ever obtaining American citizenship, and force them to pay restitution to their victims.

Furthermore, like the “civil death” doctrine of medieval Europe, immigrant outlaws should face the wrath of the civilian population. Rather than promote further statism through the use of federal agents or local law enforcement, private individuals should be able to take the reins of enforcing immigration laws. In preparation for a stateless society (or at least a society that does not fit the current definition of the neoliberal state), free associations of individuals should be tasked with not only securing their properties and the border, but should be authorized to apprehend outlaws and bring them to court.

As dangerous as these laws may sound, they at least would show that this country and its people take immigration laws seriously. Similarly, so long as illegal immigrants only fear deportation, they will consistently break American laws in order to get on American welfare or to work for better wages in this country than elsewhere.

Physical Removal

Hans-Hermann Hoppe argues that culturally destructive forces like Marxism, both economic and cultural, should be physically removed from libertarian societies in order to guarantee the survival of liberty, free association, and voluntary transactions. Continued illegal immigration is clearly a threat to America’s precarious liberty, and as such should be met with a form of physical removal. This removal should be accomplished by private citizens or groups of private citizens.

First and foremost, the police, in the words of Robert Taylor, “do not exist to protect you, defend private property, or maintain the peaceful order of a free society.” Taylor further notes that the primary function “is to make sure that the state’s exploitation of the public runs as smoothly as possible.”[1] Therefore, security should become a private affair. This includes enforcing the law against illegal immigrants who directly threaten communities.

Criminal illegal aliens should answer for their crimes in front of the communities that they have injured. As Hans-Hermann Hoppe writes:

“Families, authority, communities, and social ranks are the empirical-sociological concretization of the abstract philosophical-praxeological categories and concepts of property, production, exchange, and contract. Property and property relations do not exist apart from families and kinship relations.”[2]

There is no need for a government corrective here. Immigrant criminals, many of whom come from countries where socialism is the norm, not only carry the possibility of political warfare (in the form of voting for or giving a raison d’etre for anti-liberty statists), but they expressly threaten the organic unity of American families through violence. As ever, the democratic state can grow from the chaos of illegal immigration, and as such, stopping criminal aliens without the overview of the state is one way of circumventing state power.

Objections

Such a draconian proposal is certain to meet with objections from both the political mainstream and from left-libertarians, so let us attempt to address some of the most likely criticisms. First, left-libertarians consistently make the argument that open borders are the only truly libertarian solution to the problem of state power and statism. However, as has already been noted in this publication, “maintaining a distinctive culture is a good reason to restrict immigration.” Of course, immigration has economic benefits, but all libertarians should ask themselves whether immediate economic benefits are worth the cost of potentially dissolving any chance for a libertarian social order. After all, Taylor correctly notes that the left-libertarian case for open borders often conflates state with nation. He notes that “the state is artificial, arbitrary, and coercive,” but calls a nation “a national identity, protected by borders.”[3] This is healthy and natural so long as private property rights on the border are respected.

Another possible libertarian criticism of the entire concept of national borders is the problem of state coercion, namely the fact that immigration laws are fundamentally about states using force to welcome or remove private individuals based on sloppy thinking or criteria that seems highly flexible and dependent on the whims of Washington bureaucrats. An answer to this criticism can be found in the words of Murray Rothbard, who summarized why libertarians should never overlook the fact that “nation” is a category separate from both “state” and “individual.” Rothbard writes:

“Contemporary libertarians often assume, mistakenly, that individuals are bound to each other only by the nexus of market exchange. They forget that everyone is born into a family, a language, and a culture. Every person is born into one or several overlapping communities, usually including an ethnic group, with specific values, cultures, religious beliefs, and traditions. He is generally born into a country; he is always born into a specific time and place, meaning neighborhood and land area.”[4]

To ignore this is the height of political autism.

A third criticism is that implementing outlawry encourages murder. The plan described above only labels unrepentant, determined aggressors as outlaws, and killing aggressors is defense, not murder. Furthermore, anyone who tries to kill an outlaw but instead ends the life of a non-outlaw would be guilty of premeditated murder and thus subject to life imprisonment or capital punishment, thus providing a strong deterrence against overzealous outlaw hunters.

Finally, the most likely objection to this plan is that it would lead to vigilante justice, but in a sense, that is precisely the point. And is not vigilante justice preferable to anarcho-tyranny? A world wherein outlaws are chased down is better than a world wherein immigrant criminals rape and murder, get deported, then rape and murder some more before being thrown into a money-making machine run by the state.

Conclusion

The outlaw solution would encourage communities, towns, and counties to mobilize their independent resources to protect their own people from the threat of criminal illegal aliens. If a serious crime is committed, then these localities could extract just punishment from the criminals without feeding into the state’s prison system. Outlawry not only takes away the state’s monopoly on violence; it is also preferable to any open or quasi-open borders situation wherein wanted and unwanted immigrants used public roads and public property that once belonged to private individuals.

The concept of outlawry as a way to combat illegal immigration may only be feasible in a truly libertarian state. However, certain measures could be put in place at present that could dramatically change the on-the-ground reality. Namely, the rise of border militias like the Minutemen is a positive development. America should go further by abolishing the Border Patrol and replacing it with private security agencies that have to answer to those citizens who own the land on the American border. Unlike federal employees, these private agents could be fired for doing a poor job and/or for colluding with Mexican drug cartels.

Illegal immigration has not only helped the cause of “Brazilification” in America, but attendant criminality is a direct threat to all private citizens, their properties, and their freedom of association. Given this reality, criminal illegal aliens who return to the United States after being arrested, convicted, imprisoned, released, and deported should be treated as outlaws and should face the possibility of death for impinging upon American liberty. This proposal has the added benefit of legitimizing decentralized power structures in the face of anarcho-tyrant state.

References:

  1. Taylor, Robert (2016). Reactionary Liberty. CreateSpace Independent Publishing Platform. p. 125.
  2. Hoppe, Hans-Hermann (2001). Democracy – The God That Failed: The Economics and Politics of Monarchy, Democracy, and Natural Order. Transaction Publishers p. 203.
  3. Taylor, p. 221.
  4. Rothbard, Murray. Nations by Consent: Decomposing The Nation-State. Journal of Libertarian Studies 11:1 (Fall 1984). https://mises.org/library/nations-consent-decomposing-nation-state-0

How To Rein In Censorious Technology Giants

Over the past decade, the large technology companies of Silicon Valley have transitioned from a mindset of attempting to make government censorship impossible to a mindset of attempting to make government censorship unnecessary. Those with views which are in opposition to the progressive narrative have increasingly found their posts removed and accounts suspended on the social media platforms created by these companies. Though this is not a new problem, it has escalated since the firing of James Damore from Google and the unrest in Charlottesville. Those who are not part of the progressive movement, such as conservatives, libertarians, reactionaries, and the alt-right are increasingly finding themselves shut out of open discourse online, having to either signal compliance with the left or risk being de-platformed on the most popular social media sites. Though the alt-right has borne the brunt of this so far, it is unlikely to stop there, as the contemporary left does not value discourse in the same way as their classical liberal predecessors. There are several proposed responses to this situation, but none of them are likely to effectively deal with the problem. Let us examine these to discover their shortcomings, then craft a novel response that is more likely to succeed.

The Mainstream Libertarian Response

In the mainstream libertarian view, the large size of Google, Facebook, Twitter, Apple, GoDaddy, Paypal, and others are astonishing success stories of free-market capitalism. They tend to view these technology companies as private businesses whose owners should be able to freely choose with whom they will associate or not associate. Indeed, many libertarians view ostracism as a nearly universal positive, working to reward preferred behavior while punishing dispreferred behavior. If these companies behave improperly, mainstream libertarians believe that the market will punish them by elevating an alternative to prominence.

Though ostracism on the basis of behavior is nothing new, the crowdsourcing power of the Internet has transformed it into a political weapon that can be used to ruin people unjustly. Moreover, it is capable of dividing an entire society along ideological lines. When reasoned discourse is shut down and unpopular viewpoints are suppressed by howling irrational cyber-mobs, those who are de-platformed are likely to have their internal victim narratives confirmed, radicalizing them further. This may serve as a precursor to a novel type of civil war, one which arises when the heated rhetoric that is naturally produced as a byproduct of democracy escalates into political violence and there is no peaceful outlet to reduce tensions before they consume the entire society.

In a free market, censorious behavior from the largest companies would be of little concern. As John Gilmore, co-founder of the Electronic Frontier Foundation, said, “The Internet interprets censorship as damage and routes around it.” But it is also true that those in positions of power view checks, balances, and competition as damage and seek to route around them. Technology giants accomplish this partly by lobbying governments to regulate their industries in a manner that they can capture, as any other large companies would. But they have another weapon which can be even more potent: they can use their platforms to keep their upstart competitors out of search results and application stores. This can keep their competitors from gaining the brand recognition necessary to build the user base to become successful social media platforms. This was less of a problem in the early days of social media when turnover of the most popular sites was higher, but the near-monopolies of the largest companies are no longer as vulnerable.

The Conservative/Alt-Right Responses

In the view increasingly expressed by conservatives and alt-rightists, the Internet is an essential aspect of life in the 21st century, and the technology companies that deny people access to the most popular social media platforms, domain hosting services, and payment processors are curtailing both the civil liberties and economic opportunities of those people. The largest technology companies are effective monopolies, in that these firms are the only sellers of products and services that have no close substitutes. In response, they call for the state to regulate these companies as public utilities, much as they do to providers of electricity, water, and natural gas. This line of thinking also leads to support among these people for net neutrality regulations. Some argue that government regulation is even more necessary in this case, as the network effects and first-mover advantages of the largest technology firms mean that a competitor cannot provide the same quality of service even if there are no significant barriers to entry into the business of creating social media platforms, search engines, and payment processors.

However, treating social media as a public utility is likely to cause more problems than it solves. When governments began regulating other industries, innovation in those industries slowed. The companies which were nearly monopolistic either remained so or became real monopolies, as competition became even more difficult. Freezing current troublesome companies in place as major players rather than allowing upstarts to displace them is an undesirable outcome. This is exacerbated by the fact that public utility regulations are just as vulnerable to regulatory capture as any other regulations. It is also strange to equate losing social media presence with losing access to goods and services like clean water or garbage disposal, as one can live a healthy life without access to social media. Furthermore, the cost of regulation is likely to be high, and the regulated businesses will pass this cost onto their customers.

A Radical Proposal

To summarize the above responses, the mainstream libertarian would do too little while the conservative or alt-rightist would do too much. What is needed is an approach that can stop the censorious technology giants from abusing the power they have accumulated without causing the innovation-stifling and monopoly-calcifying effects of government regulation. This approach should use state power in a manner which does not expand said power beyond its current size and scope, but will solve the problem with minimum malign interference in the economy. Fortunately, there is a simple and powerful solution which may be explained in a straightforward manner.

To begin, let us note that all of these technology giants are incorporated companies. A corporation is a legal fiction created by the state to shield business owners from full financial liability and ease the enforcement of laws upon those businesses. It is impossible to create a corporation without involving the state, as attempting to do so without registering the corporation with a government will have no effect. The closest one could come would be to negotiate recognition of a business entity with limited liability with each customer of that business, but this would not be identical to a state-recognized corporation in terms of its interaction with the state. Two results directly follow from this. First, registering a corporation amounts to participation in a government program. Second, state-recognized corporations are not truly private businesses, but public-private partnerships in which the state provides limited liability through its monopoly on courts and the private business fulfills its purpose, whatever it may be.

In order to participate in a government program, a person or other entity is supposed to be in compliance with government laws. In the United States, the highest law with which a state-recognized corporation should be in compliance for this purpose is the Constitution. The Constitution contains a number of provisions which are supposed to limit the conduct of government, including provisions to protect freedom of speech, freedom of the press, freedom of assembly, security against unreasonable search and seizure, and due process, among other rights. Because state-recognized corporations are public-private partnerships, they should be held to the same limitations on their conduct.

Thus, we arrive at an approach that meets the conditions described above. The technology giants that are currently engaging in censorious activities against viewpoints that they find disagreeable should be approached by the state and given two choices. Their first option is to begin respecting the aforementioned rights in accordance with the above argument and stop their censorious behavior. Their second option is to forfeit their corporate charters and right to do business as a corporation in the United States. This means that they would lose access to all government contracts, loans, and grants, could not be bailed out by taxpayers if their businesses falter, could not receive property taken through eminent domain, and the personal assets of everyone in the company would be available for paying civil damages. In other words, the leadership of the technology giants would have to choose whether to contribute to a more open marketplace of ideas or to become free-market businesses, either of which would be an improvement upon the current state of affairs. Even the hint that such a proposal is being considered by high-ranking federal officials would have the technology giants rushing to behave better, and could accomplish the same results as public utility regulation with far less threat to innovation.

Now let us apply the test described above,

“This approach should use state power in a manner which does not expand said power beyond its current size and scope, but will solve the problem with minimum malign interference in the economy.”

Currently, the federal government enforces anti-discrimination laws on bases other than those involving the people being de-platformed by the technology giants. This proposal implicitly adds the basis of political ideology to race, gender, age, sexual orientation, and other currently protected categories. While this may appear to be an increase in scope, it would actually work to level out some of the discrepancies caused by protecting only the aforementioned categories. In order to evade constitutional restrictions, the federal government typically uses carrots rather than sticks to gain compliance from state government and large corporations, in the form of only awarding federal funding to compliant entities. Here, strings attached to continued recognition of corporate charters takes the place of strings attached to funds, but the overall methodology is unchanged.

As for malign interference in the economy, the latter option may appear to be so, but it is not upon closer scrutiny. First, no rational person in a leadership position at a technology giant would choose it due to the enormous risks involved in running such a large business without the legal shield of a corporation. Second, if any technology giants did choose the latter option, the change of ending state-recognized corporations in favor of government independence and full responsibility would be a beneficial move toward a more free-market economy.

Objections

Such a novel and radical approach is certain to meet objections, so let us attempt to anticipate and deal with some likely criticisms. First, there is the potential for technology giants based in the United States to balk at this dilemma and respond by leaving the United States for more favorable conditions elsewhere. Though this may be extremely disruptive in the short term, it would remove the canopy that is blocking the sunlight needed by the seedlings that seek to grow and replace the technology giants. The end result would almost certainly be both a more open and a more free market in the long term. But this is an unlikely result, as they would not wish to lose such a large and wealthy customer base as the American people.

Second, such a move would certainly be challenged in court, and the Supreme Court may see fit to rule against it. If this happens, then nothing will be lost and awareness of the need to appoint justices who are more friendly to the anti-censorship cause will be raised. It would also provide a strong President with a chance to ignore the Supreme Court and force the issue, especially if public opinion is against the side of the technology giants. The dominance of the judiciary in the American system is a longstanding problem, and any opportunity to challenge its power is a welcome development.

Third, there is the claim that this proposal is more about open markets than free markets. This claim is not without merit, but the current market conditions are neither open nor free. Working toward free markets is the primary economic objective of libertarian philosophy, but in the meantime, an open unfree market is superior to a closed unfree market. It is important not to fall into the trap of political autism by doing nothing until an ideal libertarian textbook solution hopefully comes along, which may not happen.

Finally, one may wonder why the issue cannot be left up to the market. In the long term, the market is essential for solving the problem posed by the technology giants. But although this is necessary, it is not sufficient for dealing with the immediate problem at hand. Through their current market share and their abuse of the power that said market share provides them, the technology giants are making the market unfree. Like it or not, the state is the weapon currently in play, and unless it is going to be eliminated in the near future, its power will either be used to favor the established companies or their upstart competition.

Conclusion

The technology giants have managed to acquire an unprecedented amount of power over the lives of people all over the world. As Frank Herbert observed, “Power attracts pathological personalities. It is not that power corrupts but that it is magnetic to the corruptible.” If the leadership of these companies decide that they wish to silence someone and ruin their finances for whatever reason, it is within their capabilities to do so. Some may cheer because such a fate is currently befalling the alt-right. But what they do to Christopher Cantwell and The Daily Stormer today, they can and will do to anyone they dislike in the near future. Unless the technology giants are reined in, they will provoke the state into regulating their industries as public utilities, which will set back innovation by decades. The mere threat of the above proposal is capable of not only stopping their censorious behavior, but of opening the markets enough for private competitors to free them.

The Curious Case of Net Neutrality

Everyone please welcome Insula Qui, our first additional writer at Zeroth Position.

Last week, many libertarians came out in support of a major government program. This would seem odd to many onlookers, as libertarians are supposed to believe in free markets and their efficient allocation of resources, but this issue has divided libertarians like few others. This program is net neutrality, and even anarcho-capitalists have managed to justify supporting it on some occasions, although that is much rarer.

To explain the problems within the concept of and support of net neutrality, a working definition is required. In essence, the point of the regulation that assures the net will stay neutral is to ensure an egalitarian allocation of bandwidth among people and websites. This means that no Internet service provider (ISP) should be able to charge extra for access to certain websites or discriminate when it comes to the Internet in any other way. This seems good and necessary at first glance, but even a cursory examination defeats this. Net neutrality was adopted in 2015, which means that for most of the existence of the Internet, there was no need for any legislation. Yet this legislation was created, not because any ISPs were being unfair, and not because ISPs were considering being unfair. The only reason why net neutrality was created and subsequently passed was to ensure that the Internet would stay the same as it always had been. It turns out that we apparently require massive legislative efforts to ensure that absolutely nothing would change.

The Past Is Prologue

To understand why this debacle started, we must examine the origin of the troubles. The legal procedures were initiated by the situation that was going on between Netflix and different ISPs. The entire spectacle may be summarized as follows: Netflix was using so much data that it was getting slower. That was the entire problem that Netflix had with the ISPs, and that was the start of the entire legislative progress to instate net neutrality. (What was going on was slightly more complicated, but that was the gist of their complaint.) Various streaming services were growing larger on the Internet, so the ISPs were faced with a lot of bandwidth consumption on a continuous basis. With streaming, it is impossible to load the entirety of the data quickly because there is so much of it, meaning that the bandwidth is constantly and intensely used. Since streaming was so popular, there was bandwidth constantly in use and since bandwidth is a limited resource, the streaming sites were getting slower, which was reflected in their bottom line. Because the streaming sites were getting so popular and using gigantic amounts of data and bandwidth, they could not expand more without getting slower and thus expanding less.

This was a problem created by streaming platforms that mostly affected said platforms. ISPs would lose some profitability, but they would still keep most of their profits if they handled streaming more slowly. Most sites without streaming would be affected much less, as they did not need this continuous stream of data and the few thousandths of seconds by which they would have been slower would have gone unnoticed. Netflix and other streaming sites were unable to fix the problem on their end; they already use every compression mechanism possible to optimize their storage and streaming capability without compromising the quality so much that the experience is reduced. Thus, the streaming sites were completely at the mercy of the ISPs to fix this problem. The heroic ISPs rushed in to help the streaming sites, offering to build new infrastructure and give the streaming sites priority in the use of that infrastructure. There was one caveat; the streaming sites would have had to pay for it, which would have caused a drop in their profits, which would have eventually made them increase streaming prices to remain sustainable. Because even the smallest increase would scare off marginal users, this was not in the self-interest of the streaming sites.

Therefore, the streaming sites started advocating net neutrality, claiming that being charged to fix the problem that they caused for themselves was somehow discriminatory to the freedom of the Internet. They also claimed that the ISPs were throttling access to their sites, and that because they could not expect the ISPs to build their infrastructure for them meant that ISPs were planning to turn the Internet into something unfree. In their view, the way to increase freedom with respect to the Internet is obviously to give the government giant amounts of legislative control over it. Because of the appealing notions that the little guy should not be discriminated against by the big scary ISPs, and that the ISPs should not make certain websites into subscription services, a large Internet bandwagon took shape. Almost every large platform took the side of net neutrality, for the sake of fairness and freedom, of course. Even people who constantly tout their knowledge in basic economics were extremely happy that the state could ensure that the ISPs would not discriminate against information that they dislike or try to rent seek on their monopoly.

Statist Problems and Market Solutions

Having described the frankly ridiculous situation, we must look at the problems within this approach, of which there are several. First, there has never been any reason to suspect that any ISP would move to a subscription service model or that they would artificially restrict information they dislike. This has never been actualized and has never been a close concern; it is based on conjecture on par with the implication that warlords would take over without the state. Second, bandwidth is a finite resource; there is not infinite Internet service to go around. This can be improved greatly with increased infrastructure, but this is not cost effective to the ISP.

To fix this, two steps may be taken. Bandwidth could be restricted in one area so others can get more bandwidth, or the company that needs more bandwidth should pay for additional infrastructure, both of which violate net neutrality. This is, in essence, a problem of trying to redistribute bandwidth from the smallest users to the largest users. When bandwidth needs to be equitably arranged, the people who use the least bandwidth would need to use even less to subsidize the people who use more bandwidth. The bandwidth for a neutral use could not come from anywhere else. This is somehow supposed to protect the little guys and make sure that the Internet is accessible for everyone.

The next problem is that this prevents selective Internet access for people who use the Internet for very specific purposes. If one needs to allocate one’s bandwidth to some very certain areas and does not care about the rest and is fine with that being slow, one could very well have the ISP provide a service of throttling certain sites and increasing the speed of others. And these are just the problems when we assume that net neutrality is really supposed to provide for a neutral net.

In reality, it has been the case that giving control over services to the government is generally a bad idea; more often than not, the state abuses all powers it has and creates as many powers as it thinks it should have. Thus we may understand how it could be that having the FCC in control of determining even more in the way of how ISPs act may not be the best idea. It may be that increased regulation would do even more harm to any new ISP that would try to attempt to provide this service. This all is compounded by the fact that the entirety of the problem of monopoly in the provision of the Internet is caused by the government in the first place.

It is not as though the Internet is a natural monopoly; no matter what many would have us believe, natural monopolies do not exist; just the optimal size of firms differs. However, when an industry is over-regulated, it will become less competitive as the barrier to entry into that industry is increased. It happens to be that the Internet is one of the most regulated industries.

There are huge issues with providing cables; thousands of people whose approval is needed, dozens of restrictions and last mile rules, etc. The government has a firm grasp on the net no matter what. This is best exemplified with the legal issues Google Fiber has been having when trying to establish themselves as a competitor to the current oligopoly. A company as powerful as Google has been unable to establish themselves in the market due to legal issues, as cost is certainly not a problem for them if they think they will outcompete the existing systems. Without this state-imposed oligopoly, there would be no problems with competition within the Internet. The optimal size of firms is probably much smaller than the firms which exist now. The market would do its job, the provision of the Internet would be decentralized in its construction, and quality would increase while prices fall.

Libertarians Against Cyber-Liberty

However, this does not seem to be a priority to many people, as most claim that we must regulate companies to solve problems that regulation created in the first place. To them, the only way to combat problems caused by the government is with an increase of government control in that area, the problems caused by this control need to be fixed by additional government control, and so on.

Unfortunately, it seems as though many libertarians, instead of sticking to their free market principles and trying to solve the problem that government regulation caused in the market of providing the Internet, are apathetic about this original regulation. It is almost as if these libertarians think that if the government was more involved in the market, then the market would be more free. This is not Internet-libertarianism, but Internet-communism. What else can one call the desire to redistribute bandwidth equally among all by the force of the state?

A Consideration Of Helicopter Rides

In recent years, the meme of throwing one’s political rivals out of helicopters has become popular among certain right-wing and libertarian groups. Unfortunately, people from all over the political spectrum tend to misunderstand the historical context of the meme, and thus interpret it incorrectly. Let us consider the backstory of helicopter rides in order to better understand their use, ethics, and utility.

Socialism in Chile

In 1970, Socialist candidate Salvador Allende became President of Chile, winning a plurality of votes and allying with the third-place Christian Democrats to gain the necessary majority to rule. He was the first openly Marxist head of state in a Latin American country to come to power through democratic means. The CIA and KGB both spent significant amounts of money to interfere in the election.

Once in power, Allende’s government took over control of large-scale industries, health care, and education. He expanded government theft and redistribution of land initiated by his predecessor Eduardo Frei Montalva, such that no estate exceeded 80 hectares (198 acres) by the end of 1972.[1] Payment of pensions and grants resumed, and social programs were greatly expanded. The arts became funded by the state. Diplomatic relations with Cuba were restored, and political prisoners were released. Price fixing for bread, wages, and rent occurred. Taxes on small incomes and property were eliminated. College was made tuition-free. The voting age was lowered to eighteen and literacy requirements were removed. Between October 1970 and July 1971, purchasing power increased 28 percent.[2] In that year, inflation fell from 36.1 percent to 22.1 percent, while average real wages rose 22.3 percent.[3]

Like all socialist experiments, the short-term results were good. But as Margaret Thatcher would later observe, “Socialist governments…always run out of other people’s money.” Government spending increased 36 percent from 1970 to 1971.[3] The national debt soared and foreign reserves declined. Declining prices in copper, Chile’s chief export commodity, only worsened matters. Black markets in staple foods emerged as rice, beans, sugar, and flour disappeared from store shelves. The Allende government announced its intent to default on debts owed to international creditors, including foreign governments. Strikes began in 1972, to which Allende responded by nationalizing trucks to keep truckers from halting the economic life of the nation. The courts intervened and made Allende return the trucks to their owners.

By the summer of 1973, Allende’s government was ripe for overthrow. On June 29, Colonel Roberto Souper surrounded the presidential palace with a tank regiment but did not succeed in overthrowing Allende. In May and again in August, the Supreme Court of Chile complained that the Allende government was not enforcing the law. The Chamber of Deputies accused Allende of refusing to act on approved constitutional amendments that would limit his socialist plans, and called on the military to restore order. Following embarassment and public protest, General Carlos Prats resigned as defense minister and commander-in-chief of the army, being replaced in the latter post by General Augusto Pinochet. Allende accused the Congress of sedition and obstruction, and argued that the accusations were false.

The Chilean Coup

On September 11, 1973, the Chilean Navy captured Valparaiso by 7:00 a.m. They closed radio and television networks in the central coast. Allende was informed of this, and went to the presidential palace. By 8:00, the army closed most broadcast stations in the capital of Santiago, while the Air Force bombed the remaining active stations. Admiral Montero, the Navy commander and an Allende loyalist, was cut off from communication. Leadership of the Navy was transferred to Jose Toribio Merino, who worked with Pinochet and Air Force General Gustavo Leigh in the coup. The leaders of the police and detectives went to the palace with their forces to protect Allende. Allende learned the full extent of the rebellion at 8:30 but refused to resign. By 9:00, the armed forces controlled all but the city center in Santiago. The military declared that they would bomb the palace if Allende resisted. Allende gave a farewell speech, and Pinochet advanced armor and infantry toward the palace. Allende’s bodyguards fired at them with sniper rifles, and General Sergio Arellano Stark called in helicopter gunships to counter them. The palace was bombed once Air Force units arrived. At 2:30, the defenders surrendered and Allende was found dead by his own hand.

Following the coup, the military killed around 3,000 leftists and imprisoned 40,000 political enemies in the National Stadium of Chile. Ninety-seven of those killed were eliminated by the Caravan of Death, a Chilean Army death squad that flew by helicopters in October 1973. The squad, led by General Stark, would travel between prisons, ordering and carrying out executions. The victims were buried in unmarked graves. This is one origin of the meme of helicopter rides, though squads other than Stark’s were responsible for the literal act referenced, having thrown 120 civilians from helicopters into the ocean, rivers, and lakes of Chile.

Peronism in Argentina

In 1946, Juan Perón of the Labor Party became President of Argentina. The majority of the Radical Civic Union, the Socialist Party, the Communist Party, and the conservative National Autonomist Party had formed an unusual alliance against him, but lost by 10 percent. His two stated goals upon becoming President were economic independence and social justice, but he had no serious plans to achieve those goals other than to attempt to hire the right advisors and underlings while refusing to side with the US or the USSR in the Cold War. Perón was intolerant of both leftist and rightist opposition, firing more than 1,500 university faculty who opposed him[4], shuttering opposition media companies, and imprisoning or exiling dissident artists and cultural figures.

Perón’s appointees encouraged labor strikes in order to obtain reforms for workers, which aligned large business interests against the Peronists. Upper-class Argentine’s resented Perón’s reforms, feeling that they upset traditional class roles. He nationalized the central bank, the railroads, public transport, utilities, universities, and merchant marine. He created the Institute for the Promotion of Trade (IAPI), which was a state monopoly for purchasing foodstuffs for export. Average real wages rose by 35 percent from 1945 to 1949,[5] while during that same period, labor’s share of national income rose from 40 percent to 49 percent.[6] Healthcare and social security were made nearly universal during Perón’s first term. GDP expanded by over 25 percent during this time,[4] which was largely due to spending the $1.7 billion in reserves from surpluses from World War II.

The economic success of Perón’s reforms would not last. The subsidized growth led to an import wave that erased the surplus by 1948. A debt of roughly $650 million owed by Great Britain to Argentina went mostly unpaid, further complicating matters.[4] The Argentine peso was devalued 70 percent between 1948 and 1950, leading to declining imports and recession. Labor strikes began to work against Perón, who responded by expelling the organizers from the unions and calling for a constitutional reform in 1949.

Perón faced no serious opponent for his 1951 re-election campaign, despite being unable to run with his wife Eva, who had fallen ill and would die the following year. Exports fell as low as $700 million in 1952, producing a $500 million trade deficit. Divisions among Peronists grew, and many of Perón’s allies resigned. He accelerated construction projects and increased rank and pay to top generals in an effort to reduce tensions. After Eva’s death, opposition to Perón intensified. On April 15, 1953, terrorists bombed a public rally of Perón supporters, killing seven and injuring 95. He responded by asking the crowd to retaliate. They responded by burning down the Jockey Club building and the Socialist Party headquarters.

In March 1954, Perón had to replace his Vice President, and his preferred choice won in a landslide. This, combined with stabilized inflation rates, motivated him to create new economic and social policies. This brought in foreign investment from automakers FIAT, Kaiser, and Daimler-Benz, as well as from Standard Oil of California. But Perón’s legalization of divorce and prostitution turned the Roman Catholic Church against him, which excommunicated him in June 1955. Perón responded by holding a public rally, and for the second time it was bombed, this time by Navy jets that fled to Uruguay afterward. 364 people were killed, and Peronists again carried out reprisals by attacking eleven churches. This led to the coup that ousted Perón on September 16, performed by nationalist Catholics in the Army and Navy led by General Eduardo Lonardi, General Pedro E. Aramburu, and Admiral Isaac Rojas. Perón barely escaped to Paraguay.

Resistance, Return, and Repression

Shortly afterward, Peronist resistance movements began organizing among disgruntled workers. Democratic rule was partially restored, but political expression for Peronists was still suppressed, so guerrilla groups began operating in the 1960s. Early efforts were small and quickly quashed, but more successful movements formed toward the end of the decade. The Peronist Armed Forces (FAP), Marxist–Leninist-Peronist Revolutionary Armed Forces (FAR), and the Marxist–Leninist Armed Forces of Liberation (FAL) were the three major players before 1973. The FAR joined an urban group of students and intellectuals called the Montoneros, while the FAL and FAP merged into the Marxist People’s Revolutionary Army (ERP).

In 1970, the Montoneros captured and killed Pedro Eugenio Aramburu, a military leader in the 1955 coup. In a few years, such events happened on a weekly basis, as did bombings of military and police buildings. Some civilian and non-government buildings were also bombed. Juan Perón returned from exile and became President again in 1973, and sided with the right-Peronists and the government against the left-Peronists. He withdrew support of the Montoneros before his death in 1974. His widow Isabel Martinez de Perón became President after his death, and she signed a number of decrees in 1975 to empower the military and police to defeat the ERP and other such groups. The right-wing death squad known as Argentine Anticommunist Alliance emerged at this time. Isabel was ousted by a coup in 1976, and the military took power. Up to this time, leftists had killed 16,000 people in their guerrilla efforts. The United States government financially backed the Argentine military, while the Cuban government backed the left-wing terror groups.

The juntas that held power between 1976 and 1983 repressed leftist dissidents, being responsible for arresting, torturing, and/or killing between 7,000 and 30,000 people. Many were Montoneros and ERP combatants, but others were civilians, students, left-wing activists, journalists, intellectuals, and labor organizers. Some of those executed were thrown from airplanes to their deaths in the Atlantic Ocean, providing another basis for the meme of helicopter rides. The worst repression reportedly occurred in 1977, after the guerrillas were largely defeated. The junta justified its action by exaggerating the threat and staging attacks to be blamed on guerrillas.

The “National Reorganization Process,” as it was called, failed in its efforts to suppress the left. As the roundup was overbroad, it sowed resentment. Some of those arrested had done nothing other than witness others being arrested in public places. Severe economic problems only added to civil unrest. The military tried to regain popularity by occupying the Falkland Islands, but their defeat by Britain in the Falklands War led them to step aside in disgrace and restore democracy.

Aftermath in Chile

In Chile, Pinochet remained in power until 1990. His 1980 constitution remains in effect, though significantly amended in 1989 and 2005 and slightly amended on eleven other occasions. In the 1990 elections, a coalition of democratic and socialist parties with the Christian Democrat Patricio Aylwin at the head was successful. Eduardo Frei Ruiz-Tagle, the son of Allende’s predecessor, led the coalition from 1994 to 2000. The Socialist Party and Party for Democracy led the coalition from 2000 to 2010. The center-right National Renewal won in 2010, but the Socialist Party regained power in 2014.

During Pinochet’s rule, Chicago School economists influenced the regime to adopt free market policies. Despite the prevalence of leftists in power since Pinochet’s rule ended, many of his economic reforms have remained in place and the economy is among the freest in the world. Aylwin and Ruiz-Tagle increased spending on social programs and reformed taxes, but avoided radical changes. Chile managed to avoid serious impact from the Mexican peso crisis of 1994 by using capital controls.

Aftermath in Argentina

In Argentina, voters elected Raul Alfonsin of the center-left Radical Civic Union once democracy was restored in 1983. He both created a commission to investigate forced disappearances and passed an amnesty law that stopped the investigations until 2005. His administration was unstable due to friction with the military and economic issues, leaving office early to let Peronist candidate Carlos Menem take office early after winning in 1989. Though he privatized many industries that Perón nationalized, he expanded both executive power and the role of the state in the economy. He won again in 1995, but the Radical Civic Union was growing and a new alliance called FrePaSo formed. By 1999, all three major parties supported free market economics. UCR and FrePaSo allied behind Fernando de la Rua to defeat Peronist Eduardo Duhalde. After some resignations and turmoil, Duhalde would get his chance in 2002. He managed to bring inflation under control, then called for elections in 2003. This brought another Peronist, Nestor Kirchner, to power. He overturned the 1986 amnesty for members of the military dictatorship and oversaw a strong economic recovery. His wife, Cristina Fernandez de Kirchner, took over in 2007. She distanced herself from traditional Peronism after Nestor’s death in 2010, favoring instead the La Campora movement that reveres the Montoneros guerrilla group. In 2015, her party lost to Mauricio Macri and his Republican Proposal party, which was allied with the Radical Civic Union.

The governments from the 1930s to the 1970s used import substitution to increase industrial growth, but this came at the expense of agricultural production. Import substitution was ended in 1976, but growth in government spending, inefficient production, and rising national debt led to inflation problems in the 1980s. The government responded to inflation in the 1990s by auctioning state-owned companies and pegging the Argentine peso to the US dollar. De la Rua followed an IMF-sponsored economic plan to deal with the government budget deficit, but an economic collapse occurred at the end of 2001. The peso was devalued again, and recovery occurred by 2005. A judicial ruling in 2012 led to a selective default in 2014 that was resolved in 2016.

Contemporary Application

Now that the context from which the meme of helicopter rides emerges is understood, we may consider its potential application against contemporary leftist rulers and agitators. Helicopter rides for political enemies are a form of ultraviolence, which is the use of force in an excessive and brutal manner as a public display to make an example out of a particular person or group. This is done for the purpose of establishing dominance and suppressing rivals within a territory, from which peace and order may follow. Utilized correctly, this will break the spirit of resistance movements and solidify one’s hold on power, which will prevent further death and destruction that would otherwise occur from terrorism and civil war. If misused, whether by subjecting overbroad numbers of people to cruel punishment or by utilizing methods that the population deems to be completely beyond the pale, ultraviolence will create resentment that will resurface later as another, stronger resistance movement. Misuse will also have a negative psychological impact on the perpetrators, causing them to lose their humanity through the commission of needless atrocities.

The above examples of Chile and Argentina suggest that ultraviolence by rightists against leftists appears to be insufficient to counter the leftward slide that naturally occurs in politics over time. One possible reason for this is that a continual march leftward is the political variant of entropy, the physical process by which the universe becomes increasingly disordered and chaotic over time. If so, this would explain why all great civilizations eventually fall and all attempts by right-wing movements to use the state to advance their agendas fail to produce lasting change. Another potential explanation is that the state is an inherently leftist institution, in that the nature of the state is to allow some people to do with impunity that which would be considered criminal if anyone else behaved identically, and the nature of the left is to disrespect individual rights in favor of their view of the collective good. This meshes well with Robert Conquest’s second law of politics; any organization not explicitly right-wing sooner or later becomes left-wing. A third explanation is that power does what it wants due to its inherent lack of accountability, meaning that a military junta has no real incentive to limit its removal of leftists to those whom have actually committed crimes. Thus, the use of helicopter rides naturally becomes overbroad when coupled with the state, and the distrust and resentment that fuels a revolution against the military government naturally follow.

Many alt-rightists who suggest the use of helicopter rides to eliminate their political rivals do not understand the above context with sufficient clarity. This leads them to long for the day when they get to pilot a massive fleet of helicopters that drops their enemies from staggering heights. For their stated goals, helicopter rides are a tool not fit for purpose, as the cost of helicopters, fuel, and pilots far exceeds that of other methods of physical removal. Helicopter rides as historically practiced also fail at performing ultraviolence, as rumors of helicopter rides pale in comparison to theatrical executions carried out in the public square on live television. The obvious retort that the victims should be dropped onto a hard surface in the public square is likely to fail by being too gruesome for the public to stomach. And ultimately, no matter how many leftists are killed, their ideas and the state apparatus to implement them remain. Overall, the alt-right approach fails because its adherents seek to use the ultimate enemy (the state) against the proximate enemy (the left) without any intention or plan to eliminate the ultimate enemy afterward, which results in long-term losses for short-term gains.

Moral Issues

While the alt-right seeks to misuse the practice of helicopter rides, libertarians and leftists tend to decry the idea as mass murder. The leftists will typically assert that the use of deadly force against someone who does not pose a deadly threat at the moment is murder. But the immediate danger doctrine, as it is known in legal circles, is a standard used by the state to perpetuate itself by creating an artificial demand for its functions of legislation, security, criminal justice, and dispute resolution while rendering the population dependent and irresponsible. Such a standard is not provable from first principles and is clearly at odds with libertarian theory on the use of force.

Libertarian theory allows one to use any amount of force necessary to not only defend oneself against aggressors, but to make people who refuse to perform restitution do so, to stop people who recklessly endanger bystanders, to reclaim stolen property, and to eliminate crime bosses and other unrepentant aggressors. While this does not allow for the full extent of the helicopter rides given by the militaries of Chile and Argentina, it can allow for statists who held power and those who carried out certain acts of aggression on their orders to be executed. Of course, rightists who wield state power (or libertarians who wield private power) in an overzealous manner against leftists would also be legitimate targets for helicopter rides if they kill people who have not committed crimes worthy of death.

A more appropriate libertarian use of helicopters is not to execute anti-libertarians by throwing them out, but to transport them out of a libertarian-controlled territory and warn them not to return. Exile and ostracism, after all, are perfectly legitimate exercises of property rights and freedom of association. Furthermore, removing people who advocate against the norms of a libertarian social order from a libertarian community is a necessary preservation mechanism, but such removal need not be fatal unless all reasonable efforts that do not involve deadly force have been tried without success.

Conclusion

There is a rich historical context behind the idea of helicopter rides for leftist agitators. Unfortunately, most modern advocates of such methods do not understand this context, which leads them to make recommendations which do not align with reality. Though leftists and some libertarians decry all uses of helicopter rides as murder, there are cases in which such acts are morally justifiable.

References:

  1. Collier, Simon; Sater, William F. (2004). A History of Chile, 1808–2002. Cambridge University Press.
  2. Zipper, Ricardo Israel (1989). Politics and Ideology in Allende’s Chile. Arizona State University, Center for Latin American Studies.
  3. Larrain, Felipe; Meller, Patricio (1991). The Socialist-Populist Chilean Experience, 1970-1973. University of Chicago Press.
  4. Rock, David (1987). Argentina, 1516–1982. University of California Press.
  5. Dufty, Norman Francis (1969). The Sociology of the Blue-collar Worker. E.J. Brill Publishing.
  6. Dornbusch, Rüdiger; Edwards, Sebastian (1991). The Macroeconomics of populism in Latin America. University of Chicago Press.

A Perversion Of Service

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

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

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

Freedom

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

Rights

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

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

Loss Prevention

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

Reverence

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

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

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

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

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

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

Sacrifice and Honor

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

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

Conclusion

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

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

Authority, Anarchy, and Libertarian Social Order

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

Stateless In Somalia

Pendleton begins with the old canard of Somalia-as-libertarian-utopia, though to his credit, he does not invite all libertarians to emigrate there. His description of the situation is essentially correct:

“It is a patchwork of warlords who have each parceled out a slice of mud to call his own, to rule according to his whims and fetishes. There are the Islamic warlords of al-Shabaab in the south, the government strongmen who collaborate with al-Shabaab when it suits them, the Somaliland separatists who want a separate nation in the north, and a thousand other men of questionable loyalties.”

Pendleton claims that “it takes a certain type of idiot to look at Somalia and see something promising,” then that “it requires an idiot of some erudition to see promise in a failed state like Somalia.” These are not equivalent. To look at Somalia and see something promising is to examine the entirety of their culture and find that there is at least one idea which could be adopted elsewhere to improve another society. To see promise in a failed state like Somalia is to believe that the situation in that particular place can be greatly improved in the foreseeable future. The former endeavor makes far more sense than the latter.

Though he is correct to say that “libertarians are interested in Somalia primarily because its central government is weak and has no effective presence throughout most of the nation,” his assertion that anarchy is not an effective solution to much of anything is confused. An absence of rulers is not meant to be a solution to anything in and of itself; its role in libertarian theory is to remove the statist intervention in the market economy that inhibits and/or prevents individuals from working together to find effective solutions to problems. Pendleton’s passing mention of human biodiversity is also misplaced, as the best means of analyzing anarchy in Somalia is to compare it to statism in Somalia, not to anarchy elsewhere or statism elsewhere. We are thus considering the same thede under different conditions rather than different thedes under the same conditions. His claim that “whatever the merits of decentralization in theory, in practice it mostly involves being subject to the whims of the local warlord and his cadre” is particular to the current cases of failed states. There is good reason to believe that a controlled demolition of a state apparatus by people who wish to impose a libertarian social order would not be like this because the people would have the will and means to disallow it. Even so, a nation-state government is essentially a warlord writ large. Localizing this evil and reducing its strength makes it easier to bribe, escape, or overthrow, which is a definite improvement.

Pendleton claims that a libertarian must search hard to find supporting evidence in Somalia, but the evidence is clear. Before Mohamed Siad Barre’s regime fell in 1991, the annual birth rate was 0.46 percent, the infant mortality rate was 11.6 percent, the life expectancy was 46 years, the annual death rate was 0.19 percent, the GDP per capita was $210, the adult literacy rate was 24 percent, and 35 percent of the people had access to safe water. The most recent measurements are that the annual birth rate is 0.40 percent (2016), the infant mortality rate is 9.66 percent (2016), the life expectancy is 52.4 years (2016), the annual death rate is 0.133 percent (2016), the GDP per capita is $400 (2014), the adult literacy rate is 38 percent (2011), and 45 percent of the people have access to safe water (2016). The telecommunications and money transfer industries have also improved to offer some of the best service in Africa.

It is easy to argue, as Pendleton does, that these improvements are negligible from his relatively cushy first-world environs, where such improvements on either a real or a percentage basis are barely noticeable. But in the third-world hellhole that is Somalia, such improvements can be the difference between life and death, not to mention the difference between having some basic quality of life or not having it. His claim that anarchy is not much different than communism is asserted without evidence and may therefore be dismissed without evidence.

The Case of Tudor England

Pendleton seeks to contrast the anarchy of Somalia with the historical Tudor monarchy of England. His contention that giving people more freedoms is not a prerequisite for a well-run society is technically correct but beside the point. The fact is that a society need not be ‘run’ at all in the sense of top-down management by a ruling class. People can (and in the absence of interference, do) form voluntary associations to solve problems without being ordered around at gunpoint by government minions. That people have flourished in times of gentle oppression, a strange phrase indeed, says more about human resilience than it says about the merits of oppression.

He continues,

“Henry VII and VIII set in motion a series of clever reforms that reached a climax during the rule of Elizabeth I. England had finally found its stride. It must be noted that Elizabethan England, despite its relative freedom, was not keen on handing out legal recognition of liberties to its people. The era was one of unapologetic centralization. The crown’s subjects were given no guarantees of free speech at all; in fact, the censors worked hard and fast to clamp down on anything they perceived as dissent. Freedom of speech was still very far over the political horizon. And yet, despite the book burnings, despite the cages, despite the severed heads around London Tower, the Elizabethan era gave us Shakespeare, Marlowe, Spencer, Jonson, and Bacon. Imagine an era that gave the English language so much genius and not one assurance of free speech to go with it!”

One must ask whether this occurred because of oppression or in spite of it. It is possible, of course, that the great writers of the day produced such memorable works because the adversity of censorship forced them to innovate novel speech patterns in order to evade the censors. In an earlier age, Chaucer gained a lasting place in the canon of English literature for doing just that. But one must wonder, what potential was wasted? What great works were never penned because their would-be-authors feared for their lives? Perhaps the literary marvels of Elizabethan England were due to its relative freedom rather than its censorship, and more liberty would have been better.

Pendleton asks us to consider that the Elizabethan era was when the British Empire began in earnest, but does not explain how this happened. Spain, Portugal, and even France were ahead of England in colonizing the New World and expanding trade routes in the latter half of the 16th century. It was not until Elizabeth died and James VI and I became King of Scotland and England that the English shifted their attention from attacking the colonies of other nations to the business of establishing their own overseas colonies. The burdensome regulations of the day may disappoint a contemporary libertarian, but the English trade policies were about as good as there were at the time.

Chile and Singapore

Next, Pendleton presents Augusto Pinochet’s Chile and Lee Kuan Yew’s Singapore as examples of anti-libertarian success stories. Both pursued economic liberty while restricting social and political liberty; as Pendleton says of the left-libertarians, “a libertarian would rather choke on his bow-tie than defend [their political policies].” Though left-libertarians tend to recoil at such measures, a reactionary understanding of libertarianism provides quite a different view. The libertarian reactionary understands that the desired goal of a libertarian social order can only be achieved by physically removing the state from power. Doing this, however, requires a critical mass of the population to use self-defense against the current system. If such a critical mass is absent, then those who seek liberty must turn to other methods. Those libertarians who are capable of checking their autism and doing what is necessary within context may come to support a Pinochet- or Yew-type for the purpose of restoring a balance of political terror. The idea is for libertarians to use a reactionary authoritarian approach in order to suppress leftists and reverse the damage they have done, overthrow the regime once the left is defeated, then maintain the power vacuum by continuous application of defensive force. Furthermore, a libertarian social order will not necessarily offer a great deal of social and political liberty, especially to those who do not hold allodial title over private property and/or disagree with anarcho-capitalism. As Hans-Hermann Hoppe explains,

“As soon as mature members of society habitually express acceptance or even advocate egalitarian sentiments, whether in the form of democracy (majority rule) or of communism, it becomes essential that other members, and in particular the natural social elites, be prepared to act decisively and, in the case of continued nonconformity, exclude and ultimately expel these members from society. 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. There can be no tolerance toward democrats and communists in a libertarian social order. They will have to be physically separated and expelled from society.”[1]

This is quite similar to the standard of no voice and free exit advocated by Nick Land and some other prominent neoreactionaries. The only real difference is that the libertarian reactionary is especially concerned with making the sovereign units as small as possible. It is worth noting that both proposals blend anarchy with authority, in that there is an irreducible anarchy between sovereigns who have authority within their private properties.

Pendleton wonders how Singapore would have preserved liberty in the midst of conflicts between the various ethnic groups present there without Yew’s rule, and how the various religious groups could have been kept from fighting in England without Elizabeth I’s despotism. The possible answers to such questions are the same in each case. First, groups may hire neutral third parties to resolve disputes. Second, the groups may voluntarily segregate themselves so as to avoid contact with each other. Third, some groups that cannot get along with others may have a mass exodus. Fourth, a troublemaking group may be forcibly exiled by all of the other groups. Fifth, each side may be armed to such an extent as to create peace through mutually assured destruction. Sixth, the groups may simply choose to fight it out, as some hostilities reach a point of no return. In the first five cases, the preservation of liberty is maximized. The sixth case is far more troublesome, but such quarrels can be formalized and separated so as not to catch innocent bystanders in the crossfire. A system of dueling has filled this role in many historical societies. There are thus many options other than authoritarianism for preserving liberty; the only question is whether people care to utilize them.

Libertarianism and Reaction

Pendleton writes,

“The reactionary and libertarian both agree that small governments are good. But the reactionary feels that small governments are made not by relinquishing authority, as the libertarian would do, but by strengthening it. Liberty is too precious to be entrusted to anarchy in the same way that diamonds are too precious to be entrusted to one’s doorstep.”

Here, he misunderstands what a libertarian would do, at least those who are not leftists. A libertarian reactionary seeks not to relinquish authority, but to make it as absolute as possible in the hands of the private property owner within that person’s private property. And contrary to Pendleton, liberty requires anarchy because the freedom to do as one wishes as long as one respects the right of other people to do likewise and commits no aggression against them is violated by a state apparatus by definition. If a state is present, it will fund its activities through taxation and civil asset forfeiture, take private property through eminent domain, and restrict the use of property through intellectual monopoly, zoning, and environmental regulations. Its officials and agents will choose the nature of the law and the enforcement thereof, meaning that they rule the law and not vice versa. Its enforcers will initiate the use of violence against people who are known to disagree with government statutes and acts upon their disagreements, thus presenting a constant threat to peace. Its agents are allowed to do that which is considered criminal for anyone else to do, and the system is set up to keep them from being held to account. It will force people to associate with it regardless of whether they want to use or pay for its services. Therefore, it is clear that liberty cannot be protected by state authority; such a threatening protector is a contradiction of terms.

Final Arbitration

Next, Pendleton presents a case to make the ‘final arbiter of disputes’ criticism of libertarianism:

“Suppose we have one of those highly attenuated legal battles where the details of the case are complicated and emotionally charged. Let us suppose that a drunk driver crashed into a tree and his passenger was killed when she flew through the windshield; she had not worn her seat belt. The grieving husband of the passenger demanded compensation from the driver to help take care of his kids in place of his now deceased wife. Daycare is expensive these days, after all. The driver apologized profusely but pointed out that the passenger was just as responsible for her death because she was not buckled into her seat. The husband countered by saying that the belt would not have been an issue if the driver had not been drunk and crashed into a tree.

Since these men live in a libertarian utopia, there is no superseding legal authority to arbitrate: a third-party arbitration company will have to be hired. Now let’s suppose that one of these arbitration companies is owned by a brother-in-law of the driver, and not surprisingly, the driver only agrees to hire that company. The husband refuses. The driver in turn refuses to pay any compensation whatsoever. The furious husband now threatens to kill the wife of the driver to make him understand what it feels like to lose a loved one.

How can any libertarian who sings the praises of anarchy not see how this situation will only continue to escalate? How can there be any justice for the woman who lost her life in the original crash and what about the violations of liberty that will ensue when this conflict devolves into a family feud? If there had been one authority to take control of this dispute the liberties of everyone involved would have been much more safely guarded. In a world where emotion forms the greater part of human action, liberty requires authority.”

This situation may be resolved in advance through contracts. The owners of the road set the conditions for operating vehicles on their private property, with violators subject to physical removal not unlike the traffic stops, arrests, and impounding of vehicles today. They may demand that everyone using their roads have arbitration services which do not involve such conflicts of interest, and contrary to some myopic analysis to the contrary, are almost certain to frown upon drunk drivers. They might even have all cars on their roads driven by robots, which nips this scenario in the bud. Failing this, a person who has committed an offense and refuses to make restitution can be ostracized from society until compliance is gained. Furthermore, such a person may rightly be forced to make restitution because an unrepentant aggressor is not subject to the non-aggression principle through his continuing violation of it. The driver’s wife, however, is an innocent bystander unless she was responsible for getting him drunk and/or making him drive while intoxicated. Threatening her absent these conditions makes the widower an aggressor to be subdued. As a libertarian society would have several private defense agencies available to handle such applications of defensive force and almost everyone would have a protection policy with one of these companies, an escalation is quite unlikely. Even if this kind of situation does escalate, it pales in comparison to the carnage wrought by the one authority that Pendleton defends. States were responsible for 203 million democides and war deaths in the 20th century alone. This is hardly a price worth paying to stifle a few family feuds.

More generally, a final arbiter of disputes cannot exist because no person or institution can absolutely guarantee that any issue will be resolved forever with no possibility of review. The way that disputes ultimately end in any social order is that some party finds the dispute to no longer be worth continuing. Everything else, whether statist courts and legislatures or anarchic arbitration services and private defense agencies, is simply window dressing on this immutable truth.

Of Rules and Rulers

Pendleton writes,

“A libertarian who is honest with himself has to ask why even jungle tribes have a chief and why high schools have hall-monitors. Human beings require authority, and if authority is to mean anything at all, it requires the power of compulsion; liberty cannot last long in a nation that thinks of its authority as a polite suggestion.”

It is important to understand the true meaning of anarchy. Anarchy comes from Greek ἀναρχία, which is typically translated as ‘without rulers.’ More precisely, it means ‘without beginning to take the lead.’ This is not the same as ‘without rules’ or ‘without leaders.’ Having a ruler means that there are no rules because the ruler has authority over the rules and not vice versa. That the lead is not taken does not mean that no one can lead because leadership can be freely given. This is well-understood in every aspect of life other than politics. In the words of Mikhail Bakunin,

“Does it follow that I reject all authority? Far from me such a thought. In the matter of boots, I refer to the authority of the bootmaker; concerning houses, canals, or railroads, I consult that of the architect or engineer. …But I allow neither the bootmaker nor the architect nor the savant to impose his authority upon me. I listen to them freely and with all the respect merited by their intelligence, their character, their knowledge, reserving always my incontestable right of criticism and censure. I do not content myself with consulting authority in any special branch; I consult several; I compare their opinions, and choose that which seems to me the soundest. But I recognize no infallible authority, even in special questions; consequently, whatever respect I may have for the honesty and the sincerity of such or such an individual, I have no absolute faith in any person. Such a faith would be fatal to my reason, to my liberty, and even to the success of my undertakings; it would immediately transform me into a stupid slave, an instrument of the will and interests of others.”[2]

Additionally, compulsion and initiatory force are not equivalent. This is because compulsion may take the form of defensive force or of less violent means such as shaming and ostracism. Thus, if human beings require authority (and Pendleton does not prove that they do), a libertarian social order is quite capable of compelling people through contract law, ostracism, and private military forces.

Mischaracterization

Pendleton laments that not many libertarians will be swayed by his arguments, but does not understand why. It is not the case that libertarians are “far too busy sketching intricate political systems on paper to be bothered with considerations of human psychology.” Libertarianism, properly understood, is anti-political; its primary interest in political systems is in finding ways to destroy them without causing unnecessary damage to the social fabric. As for considerations of human psychology, they should lead one to reject the state as an enabler and multiplier of evil in the world. Ultimately, libertarians are not swayed by his arguments because they are easily refuted, as shown both above and below.

The Definition of Liberty

Pendleton writes,

“Liberty, as we now know it, is a set of unquestionable boundaries that are owed to all citizens: the right to peaceable assembly, the right to free speech, the right to a free press, and so on. The problem with these ‘rights’ is that they are very enticing ideas that are very murky in their specifics. They exist in the minds of Americans as a hazy bundle of entitlements, as things that they are owed, rather than things that they must earn.

The greatest problem with this notion of liberty as an entitlement is that once citizens start declaring rights as ‘universal’ and ‘God-given’ there is no mechanism to stop them from continually inventing new ones. The ‘right to privacy’ or the ‘right to universal healthcare’ are muddled ideas that our founding fathers never anticipated. Jefferson and Madison almost certainly would not have approved of them, but they are ideas that have as much legitimacy as America’s own Bill of Rights: if Madison can conjure up new rights with a few quill strokes there is likewise nothing to stop Supreme Court justices from doing the same thing. And so the list of entitlements owed to Americans steadily grows longer as its list of responsibilities dwindles.”

He correctly criticizes the contemporary understanding of liberty in liberal democracies. As I have explained elsewhere, these rights belong to private property owners within the spaces that they own. No one has a right to assemble, speak, print, and so on within private property if the owner disagrees with such activities. Those who would do so are trespassing and thus subject to physical removal. The current problem is that the state has greatly interfered with private property. This is a problem of the commons, and the only solution is to eliminate the commons and return it to private ownership.

From here, as Pendleton realizes, it only gets worse. When people fail to connect rights to logic and ownership of property, or more simply, to thought and action, they confuse negative rights with so-called “positive rights.” These positive rights cannot be valid because their provision violates the negative rights of other people. For instance, a right to healthcare implies that someone must be forced to provide healthcare, even if it against the provider’s wishes to serve that person.

But though he correctly identifies the problem, Pendleton proposes an incorrect solution. He seeks to restore the ancient Roman ideal of liberty rather than to correct the errors in the practice of modern liberty. The Romans viewed liberty in a collective sense, as imposing responsibilities to the state in eschange for individual rights. In truth, liberty is neither a list of entitlements nor a reward for serving society or the state; it is the result of gaining and defending private property. With this understanding, it is not ironic at all that libertarians would condemn a system which subordinates the individual to a collective as fascism (or more appropriately, as communism).

Rationalism and Empiricism

Pendleton claims that the Roman notion of liberty has the example of Singapore while the libertarian has no compelling models; only fantasies and Somalia. Implicit in this claim is a sort of historical determinism that demonstrates a lack of courage and imagination to look beyond what has been and see what is possible but as yet unrealized. As explained above, Somalia has shown improvement without a state. And fortunately, libertarians have more than fantasies; we have a priori theory. In the words of Hoppe, “A priori theory trumps and corrects experience (and logic overrules observation), and not vice-versa.”[3] This is because one may use rationalism without using empiricism, but one cannot use empiricism without using rationalism. That rationalism is independent and empiricism is dependent establishes a clear hierarchy between the two ways of knowing. Of course, this will not convince a strong empiricist of the historical determinist variety, but this has no bearing upon the truth value of the argument.

That being said, it is worth considering why there are no empirical examples of a stateless propertarian society in recent times. The obvious answer is that states initiate violence to sustain their operations, and libertarians have yet to suppress this aggression with enough defensive force to stop it. The other, less obvious explanation is that those who govern in statist systems know at one level or another that their institutions are unnecessary for the functioning of society, but that most people are more empirical than rational in their thinking. It is for this reason that they cannot allow a working example of a stateless society to be created, as this would permanently turn the masses against the state. They thus use force not only to maintain their power, but to ensure that most people never consider alternatives which do not include them.

Conclusion

Pendleton closes by contemplating the issues on the horizon for America, from racial tensions to Islamic terrorists, though he says nothing of the various economic issues. However, the “furious, explosive derailment” he fears is not only unavoidable, but necessary. The current system cannot be fixed; it must end in either a controlled demolition or a chaotic collapse. In any event, the answers are to be found in the restoration and enforcement of private property rights and freedom of association, with physical removal for those who challenge these norms. It is best to work toward emerging from this chaos looking neither like Singapore nor like Somalia, but as something completely novel in time memorial: a functional stateless society of covenant communities.

References:

  1. Hans-Hermann Hoppe (2001). Democracy: The God That Failed. Transaction Publishers. p. 218
  2. Bakunin, Mikhail (1871, 1882). God and the State. Mother Earth Publishing Association. Ch. 2
  3. Hoppe, p. xvi.

Book Review: Come And Take It

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

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

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

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

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

Rating: 3.5/5

Book Review: The Invention of Russia

The Invention of Russia is a book about the history of the Soviet Union and the formation of modern Russia by Russian journalist Arkady Ostrovsky. The book focuses on the time period of the rule of Mikhail Gorbachev, Boris Yeltsin, and Vladimir Putin. Special attention is paid to the role played by the media in shaping narratives and steering the population from the Soviet era to the present.

The prologue deals with the author’s experience during and immediately after the assassination of Boris Nemtsov on February 27, 2015. He briefly overviews events over the past few decades that factored into Nemtsov’s murder, and the author’s experiences through those years are also discussed.

The book proper is divided into two parts, each with five chapters. The division between the parts is roughly set at the 1993 Russian constitutional crisis. The first chapter begins with the end of the Soviet Union, then backtracks to give the reader a sense of Soviet history up to Gorbachev’s rise to power, with emphasis on the events that foreshadowed it, such as de-Stalinization and the crushing of the Prague Spring. The second chapter covers the time from Gorbachev’s appointment to the fall of the Berlin Wall. The nature of perestroika and glasnost are discussed, as well as how the Chernobyl incident affected both. Later in the chapter, Ostrovsky details the split between the liberal reformers and the Stalinist hardliners, as well as the beginnings of the privatization of state assets which formed the class of Russian oligarchs. The third chapter explores the final two years of the Soviet Union, including the economic difficulties, the rise of Yeltsin, the worries of the KGB and other elements of the Soviet power structure, the January Events in Lithuania, and the 1991 Soviet coup attempt. The fourth chapter looks at the role played by the media in the dissolution of the Soviet Union and how the generational shift from the shestidesiatniki to their children affected the changes. The Kommersant newspaper is highlighted as an example of the new Russian media, as well as one of several examples of less than honest business practices in the early 1990s, which occurred due to the moral vacuum left by communism. The fifth chapter covers the time from the end of the Soviet Union up to the 1993 crisis, with particular attention to the role of television, radio, and print media in shaping the narrative and saving Russia from another Communist takeover.

The sixth chapter continues the discussion of the 1993 crisis, then moves on to the creation of NTV, Russia’s first Western-style television station. Of course, NTV had to compete with Channel One and other state media, which caused tensions with the state when NTV covered the first Chechnya war from the Chechen point of view. The chapter concludes with the 1996 election, in which the media played an essential role in bringing Yeltsin up from single-digit polling to a victory over Gennady Zyuganov, his Communist challenger. The seventh chapter continues with the events after the election, including a battle between oligarchs that turned into a political crisis, continued troubles with Chechnya, the search for a vision for Russia moving forward, and finally, the 1998 Russian financial crisis.The eighth chapter shows how this milieu combined with NATO airstrikes in Serbia and an overly propagandistic media was able to elevate an obscure KGB agent named Vladimir Putin to the presidency of Russia. The decision of most of NTV’s leadership to side against this was the beginning of the end for the station. The ninth chapter covers the time from the beginning of Putin’s rule to the invasion of Ukraine in 2014, including the ouster of several high-profile opponents of the regime, the bringing of NTV into the control of Gazprom and its gradual turn toward the regime, further trouble with Chechen terrorists, the Russo-Georgian War, and the activities of various media personalities. The tenth chapter looks at Putin’s rule in light of Russian popular culture, the rise of the bureaucrat-entrepreneur, the protests of 2011-13, the military operations in Crimea and eastern Ukraine, and the use of propaganda to manufacture support for foreign aggression.

The book is excellent at face value, providing a perspective that can only come from a native person who lived through many of the events described in the book. But it is even more valuable to libertarians and reactionaries for the obvious parallels between Russian history and the current state of affairs in the West, as well as for the warnings concerning the improper dismantling of government monopolies, as happened during the transition from the Soviet Union to modern Russia.

To conclude, the unique explanations of historical events and the focus on the role of the media in steering the ship of state make this book an invaluable addition to the collection of any activist, analyst, historian, strategist, or student.

Rating: 5/5

The Not-So-Current Year: 2016 In Review

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

On Market Failure

The idea of market failure is a widely believed misconception which has found widespread use in statist propaganda for the purpose of justifying government intervention in the private sector. Though the term itself has only been in use since 1958, the concept can be traced back to Henry Sidgwick. It is used to describe a situation in which the allocation of goods and services is Pareto inefficient. This occurs when the rational self-interest of individuals is at odds with the optimal outcome for a collective. Such a situation is frequently blamed on conflicts of interest, factor immobility, information asymmetry, monopolies, negative externalities, public goods, and/or time-inconsistent preferences. Among these, monopolies, negative externalities, and public goods receive the most attention from mainstream economists.

But let us pause to consider what a market is. A market is a structure that allows buyers and sellers to exchange goods, services, and information. The participants in the market for a particular commodity consist of everyone who influences the price of that commodity. To say that a market has failed is to say that this process of assembling the information about a commodity which is reflected in its price and its change over time has failed. But the causes listed above are either inconsistent with a free market or unresolvable by interventions which bind the market. Let us explore this in detail.

Monopolies

While monopolies are frequently blamed for market failures, a monopoly in a particular market is typically the result of government intervention which has raised barriers to entry in that market. Through a vicious cycle of regulatory capture, larger businesses can put smaller competitors out of business by bribing politicians and regulators to favor the former and harm the latter. This continues until a market is effectively monopolized. Therefore, this type of monopoly is actually a government failure rather than a market failure.

Another type of monopoly can occur when there are natural barriers to entry, such as the need to build vast amounts of infrastructure in order to provide a good or service. This can give the first entrant into a market an insurmountable advantage. Consumers may then complain that this monopolist is abusing them rather than show gratitude that they are getting a service which was formerly nonexistent. But if the monopolist were really overcharging, then it would become feasible for another provider to either challenge the monopoly directly or provide an alternative service. This type of monopoly is actually a market signal that a particular good or service would be better provided by another means, and entrepreneurs should look for those means.

Third, a monopoly can arise in a free market if one business satisfies all consumers of a good or service to such an extent that no one cares to compete against them. This kind of monopoly is not a market failure, but an astonishing market success.

This leaves only the ‘public goods’ argument, which merits its own section.

Public Goods

Public goods and services are those whose consumption cannot be limited to paying customers. It is frequently argued that this produces waste in the form of unnecessary duplication and excess costs born by those who are not free riders. There is also the matter that non-excludable and rivalrous resources in a commons may be depleted without intervention. The latter can only be fully resolved by eliminating the commons, as restoring exclusive control to the resource is the only method of eliminating the perverse incentives created by a commons. The concerns over free riding and unnecessary duplication ignore incentives, prove too much, and commit the broken window fallacy.

If we wish to have a rational discussion, it is essential to define terms. A problem is an undesirable situation which can be remedied. This is because a situation which is not undesirable presents no problem to solve, and an undesirable situation which has no remedy is just a fact which must be tolerated. The free rider “problem” is a situation of the latter type, as it is impractical to make sure that everyone pays exactly what they should pay for the amount of public goods that they consume. That government monopolies destroy competition, and thus the market price system, makes the free rider “problem” impossible to solve, as the information needed to determine how much each person should pay for the amount of public goods that they consume is destroyed beyond repair.

If taken to its logical conclusion, the idea that no one should be able to consume more than or pay for less than their fair share of a public good means that the state should be eliminated, as the very presence of a state means that some people are consuming more than and paying for less than their fair share of the total wealth in the economy, as states are funded by coercive means which violate private property rights. Those who receive government welfare payments, bailouts, grants, or any other form of government funding are free riding upon the backs of taxpayers and anyone else who uses currency printed by a government’s central bank. The latter group of people are forced riders who are required to pay for public goods from which they receive insufficient benefit. Charity would also be unjustifiable if the concept of the free rider problem is taken to its logical conclusion, as those who receive charity are not paying the full cost for what they are using.

But suppose we ignore this as well. If we accept for the sake of argument that there are public goods and that no one should be able to consume more than or pay for less than their fair share of a public good, then the result will be a massive distortion of the economy, as both the state and private charity must go. While the demise of statism is nothing to lament, the absence of any form of private charity would lead to the very sort of Hobbesian war that statists fear and think that they are preventing. It must also be noted that the money for payments for public goods which are now being made was once being put toward another purpose. Whether that purpose was spending on other goods and services or investment (which is really just another form of spending), the diversion of spending away from these purposes and toward public goods will eliminate some other economic activities that were occurring.

Nearly all competitive production involves supposedly wasteful duplication, in that each provider must have the infrastructure necessary to produce that which is being provided. But if the duplication is truly wasteful, the market signals this by rendering the wasteful duplication unprofitable. Government intervention interferes with such signals, and government control over an industry completely eliminates them, leading to far worse government failures than any failure of the market.

Externalities

A problem related to public goods is the problem of externalities, in which costs or benefits affect a party who did not choose to incur those costs or benefits. When firms do not pay the full cost of production, each unit costs less to produce than it should, resulting in overproduction.

The most frequent examples given are pollution, traffic congestion, and overuse of natural resources, but all of these contain externalities because the market has been prevented by governments from internalizing the costs. Air and water pollution are externalities because government intervention on behalf of polluters has eliminated the common law system of private property rights with regard to pollution. Before the Industrial Revolution, pollution was correctly viewed as an act of aggression against people and their property. Those victimized could sue for damages and obtain injunctions against further pollution. Polluters and victims can also bargain to reach an optimal level of both production and pollution. Additionally, the victims would be justified in using violence in self-defense against polluters, though this is an historical rarity. But government monopolization of environmental regulation has prevented these market solutions from being implemented. Therefore, pollution is a government failure rather than a market failure.

Traffic congestion is another tragedy of the commons that causes externalities in the form of pollution, wasted fuel, and lost time. But this is another case in which governments have monopolized a good and produced it out of accordance with market demand. Without competing private firms to build different traffic systems in search of more efficient ones and without private property rights determining location and control over the transportation system, we are left with a non-excludable good that is incentivized toward overuse. Attempted solutions of congestion pricing, mass transit, and tolls mitigate some effects, but not to the extent that private service providers might implement such methods. Again, we have government failure at work.

A third example of externalities occurs with overuse of natural resources, such as fish and lumber. But once more, we see government intervention against private property mechanisms creating problems. Because state personnel in modern democracies do not personally benefit from maintaining the value of state-controlled property and work almost solely with the usufruct thereof, they are incentivized to engage in bribery and corruption. When states sell only the resource rights but not the territory itself, they get a renewable source of income. But firms that harvest renewable resources can abuse this system, stripping the resource bare then vanishing when it is time to replenish. These ‘fly-by-night’ lumber companies, fishers, and other such exploiters lead to the fast demise of resources which were harvested and preserved for centuries prior to state intervention. In short, government fails yet again.

Before moving on, a quick word about positive externalities is in order. This is another way of talking about the free rider problem, so the same criticisms discussed above apply. But we should also consider the benefits of free riders. Although some people will argue that free riders are responsible for higher costs, they are actually signaling that a good or service is overpriced. While degenerate freeloaders do exist, most free riders who are aware of their free riding are willing to pay for what they are receiving but believe that said goods or services are overpriced. In the state-enforced absence of another provider, they choose to “pirate” the public goods rather than pay the cost which they believe to be too expensive. If there are rational, knowledgeable people in charge of a public good that has many free riders, then they will respond by lowering the cost to convince more people to contribute, which can actually raise the total contribution.

The above result is rare, of course, as rational, knowledgeable people tend to be productive rather than become part of the state apparatus. The more useful role of free riders is to crash government programs which cannot be ended by normal political means. Most government programs help a few people by a large magnitude while harming a much larger number of people by a much smaller amount. This means that an irate and tireless minority will work to keep their sacred cow from being gored, while the majority is not being harmed enough to take action to end the harm. Thus, there is nothing more permanent than a temporary government program, and it is politically impossible to abolish entitlement and welfare programs. While the strategy of overloading such programs was first proposed by leftists who wished to replace them with far more expansive redistributions of wealth, it could also be used by libertarian-minded people who wish to replace such programs with nothing.

Other Culprits

The less-discussed causes of market failure are conflicts of interest, factor immobility, information asymmetry, and time-inconsistent preferences. This is mostly because government intervention is more widely known to either cause these problems or fail to solve them. Conflicts of interest typically occur when an agent has a self-interest which is at odds with the principal that the agent is supposed to serve. For example, a lawyer may advise his client to enter protracted legal proceedings not because it is best for the client, but because it will generate more income for the lawyer. A politician may vote for a law not because it is in the best interest of the people in her district, but because she was bribed by lobbyists who support the law. The only solution to a conflict of interest is to recuse oneself from the conflict, and government offers no answer, especially since it inherently operates on conflict of interest.

Factor immobility occurs when factors of production, such as land, capital, and labor, cannot easily move between one area of the economy and another. This sometimes occurs due to malinvestment caused by government distortions of the economy; in other cases, it results from technological advancement that puts an industry into obsolescence. In any event, government regulations frequently make it more difficult to change occupations and maneuver capital than it would be in a free market. Interventions to help workers in a declining field typically fall victim to the knowledge problem; it cannot accurately retrain workers or educate future workers because it cannot know what the economy will need by the time the retraining or education is complete.

Information asymmetry occurs when some parties in a transaction has more and/or better information than others. This creates a power disparity which is sometimes called a market failure in the worst cases. Common sub-types of information asymmetry include adverse selection and moral hazard. Adverse selection occurs when one party lacks information while negotiating a contract, while moral hazard involves a lack of information about performance or an inability to obtain appropriate relief for a breach of contract. These cases are made worse by government laws, as laws can lead to both adverse selection and moral hazard. For example, an insurance firm that is legally disallowed from discriminating against high-risk customers is itself put at a higher risk through no fault or will of its own, being unable to turn away those who cost the most to insure or cancel insurance policies for reckless behavior by the insured. Fortunately, there are market methods for resolving informational asymmetries, such as rating agencies.

Time-inconsistent preferences occur when people make decisions which are inconsistent with expected utility. For example, one might choose to have ten ounces of gold today rather than eleven ounces tomorrow. Time preferences are expressed economically through interest rates, in that interest rates are the premium placed upon having something now rather than waiting for it. Governments interfere with interest rates through central bank monetary policies, leading to alterations of time preference that can be inconsistent. This is still another example of government failure rather than market failure.

Resource Failure

Another possibility for market failure which is rarely discussed is that of resource failure. If an economy becomes dependent upon a certain non-renewable resource, that resource becomes scarce, and there is no viable alternative, the result can be devastating not only to markets, but to peoples’ lives as a whole. For example, if peak oil occurs and there is no alternative energy source available to meet the energy demands fulfilled by fossil fuels, a market failure will occur due to resource failure. Another historical example is the destruction of trees on Easter Island. Resource failure is generally not amenable to government policy, and may be exacerbated by it if subsidies alter the market to keep it from finding the best solution to a resource shortage.

Complainer Failure

The last type of failure is not a market failure at all, but a failure by a critic to understand the nature of the market. Consumer demand does not drive the economy; capital investment does. The over-reliance on gross domestic product (GDP) as a measure of economic output has fooled many people into believing otherwise, but GDP neglects intermediate production at the commodity, manufacturing, and wholesale stages of production. As such, consumer demand and spending are an effect of a healthy economy and not the cause.

With this in mind, the idea that the market has somehow failed when it does not produce everything that a particular person might want and deliver it exactly where they want it for a cost that the person finds agreeable is ridiculous. A person levying this criticism should be advised to check their hubris. If a certain good or service is not produced in a free market, it is because such production is not sufficiently worthwhile for anyone to make a living through doing so. The fact that everyone gets by without that good or service indicates that no failure has taken place. Those who desire that good or service so much should make an effort to provide it so that they can have it.

Standards

The entire idea of market failures is based on Pareto efficiency. But there is no reason why we must choose Pareto efficiency as the measure of market success. One could just as well define market efficiency as the degree to which it permits its participants to achieve their individual goals. (Note that these are equivalent if the conditions of the first welfare theorem are met.) Another possible standard is that of productive efficiency, which is optimized when no additional production can occur without increasing the amount of resources, time, and/or labor involved in production. An economy with maximum productive efficiency cannot produce more of one good without producing less of another good.

Conclusion

In every case, that which appears to be a market failure is actually a failure of government policy, natural resource management, or economic understanding. We may therefore reject the very idea of market failure as yet another form of statist propaganda.