On Libertarianism and Statecraft, Part III: Governance, State, and Defense

<<<Part II                                                                                                 Part IV>>>

Author’s note: The main themes of this series will be further expounded upon in my upcoming book Anarcho-Monarchism, which will be available in April.

Alleviating Burdens of Property

As established in Part II, the entire burden of owning property is usually too much for a single person to bear. Any person who fully owns property in a libertarian social order has the responsibility of an absolute monarch. He would have to uphold all control over legislation, arbitration, and upkeep when it comes to his property. The only way to alleviate this burden is to outsource part of it to someone who is more capable of managing the property. This is necessarily a person or group of people who can harmonize the interests of multiple property owners into a cohesive social structure which allows for property to be used to the greatest possible extent. When market forces are properly in order, this is all but inevitable due to the effects of forming economies of scale and creating a more advanced division of labor.

If each person is fully responsible for his own property, then even the people who are least suited for managing property are in charge of their property. When the management of property becomes outsourced, this is no longer the case. The logic supporting the division of labor still applies even where libertarians might not want it to apply. Having a society means that there will be certain people who specialize in the management of property. There will be people whose job is to ensure that the burden of holding property is reduced. Even when there is no state, these people constitute a government.

Government and State

One must not conflate the government with the state. The state is an entity that monopolizes force, while government is simply the managerial entity in control of property. The state claims partial ownership over property, which gives it the ability to tax and legislate. It is difficult to conceive of a government that lacks a state, but this is simply due to a limited imagination. The abolition of the state does not imply an abolition of governance; quite the opposite. The proliferation of individual sovereignty will bring about an increase of governance and statecraft. Because owning property is a burden, governance services become necessary for human flourishing. The only exception would be if all people in society are capable sovereigns, which is never going to be the case.

There are individuals who are sufficiently capable at managing their own property so as to have no need for outside governance. However, a significant number of these people already have libertarian proclivities and are drawn to philosophical libertarianism. And since the majority of the population are not libertarians, we can only assume that most people are not capable of shouldering the entire burden of their property ownership. This produces the demand for governance, and this is why there is a natural tendency to form states. Even if one does not support them, governance structures will characterize human society even without a state.

Most anarcho-capitalists would argue that there is actually no demand for a government, and that the bureaucratic government would be replaced by decentralized market actors for managing land. This ignores that even small associations for managing apartment buildings and housing developments are structured like governments. There is no possibility that governmental structures will not emerge from the demand for systems which can harmonize different private interests. These governmental structures must be value-productive in order to survive, as they are still within the confines of the libertarian society and are not subsidized by a state. All states fundamentally weaken property rights to increase their own power, and will always act according to the taxes they collect.

The Myth of the Market

One reason why market governments are necessary is that not every problem can be solved simply by using the forces of material exchange. Social cooperation will not always be reached through economic competition. For example, an immense problem for which libertarians have no systematic answer is the imposition of negative externalities through the bad neighbor problem. Having the government be an agency bound by contract ensures that these negative externalities can be dealt with. It also means that social damage resulting from infringements upon property is minimized. This is due to the contractual nature of a government which preserves the power of property. This can solve the issues of monopoly and virtue that plague modern states and affect any potential libertarian society.

If one ignores contractualism, which forms the basis of libertarian interaction, one ignores the main practical reason for why one ought to support libertarianism. The right to form contracts is the right to choose how cooperation takes place and how to create a functional society. Contracts will form governments, and contractual governments will result in the practice of statecraft. This is a positive development; there is no reason to be dogmatically opposed to governance. Structures to govern a society are generally desirable for all people within that society. Most people benefit greatly from having a social management using proper statecraft.

State and Market

But what would prevent contractual governmental organizations from falling into the same pitfalls of federal entities? How can we prevent the adverse effects of the centralization of power when governmental structures lay claim over multiple sovereign areas? In order to answer these questions, it is necessary to determine the optimal size for governance. Most of the current nation-states are demonstrably beyond their optimal size and the supranational organizations are even more beyond the size at which good governance can occur. It is impossible to govern properly an area so large that the government loses all contact with those whom it governs. Although accurate economic calculation is impossible for any government, the problem worsens when the government is less aware about what the population wants. There can be no good governance on an impersonal basis. The only way to create a government of the optimal size is to enable market selection to find this size.

If market governments ever impose disutility, there will be a dissolution of those governments, for destructive governance cannot last without some form of coercion. This ensures that market governments can never be destructive in the same manner that states are. There should be no conflation of market governance and state governance, as the problems of central planning and coercion only apply to the state. Since all people are only bound by contract and personal loyalty in a libertarian society, the market governments are another expression of this. Governments will stop engaging in their own central planning and start harmonizing the plans of individuals. Furthermore, the coercive effects of power do not exist if there is no coercion. The contractual government cannot go against the interest of the population with impunity.

Contrary to libertarian instincts, the more an economy and society are governed, the better functioning they will be. Even though the state generally decreases value in society and is destructive, governance is a productive tool. The better property is managed, the more prosperity can be produced with that property. An efficient allocation of resources is achieved by having resources governed according to proper statecraft.

Violence

The other important part when analyzing social interactions between different property holders is considering what happens when there is conflict. Crime will always exist and is an important social issue to address. The state as it currently stands is the worst criminal offender and enabler of criminal activity, but this does not erase the importance of law and order. But how is it possible to organize the prevention of crime and foreign invasion in a libertarian society?

An easy answer is to simply say that the military and the police can be privatized. This is a respectable position and one that has been defended at length by other libertarian philosophers. If the market works, it must also work when it comes to defense. If the state cannot be trusted with production, it cannot be trusted with producing defense. The last industries the government should have control over are those that allow the state to gain control over every other industry.

However, it is possible that having a military force and a police force without an overarching system of governance could be sub-optimal. This is complicated by there being no benefits to the people when centralizing defense above the optimal point at which it would be provided in the free market. (The states, however, greatly benefit from centralizing violence.) The best way to determine the proper size of defense agencies is to have the market system figure it out.

Defense on the Governance Market

This does not mean that defense necessarily must function only as a private service. Both national and personal defense could better function under overarching co-operation. Libertarians often herald competition in the industry of defense and claim that violence is unlikely to erupt because it has a far larger cost than benefit. Although this is true to an extent, there are still perverse incentives involved. If a defense agency manages to increase the demand for defense, it will increase its own profits, all else being equal. When the demand for defense is increased, it must be due to additional overarching violence, or at least the threat or perception thereof. Defense agencies could intentionally cause violence to increase demand for their own services. This goes against the purpose of defense. This is also a problem with the state, but that does not mean that it is not also a problem with market defense.

The only way to prevent this is to have a meta-regulatory agency that has supreme authority over all defense agencies. Individual defense agencies can only keep each other in check to a limited degree. When there is a central agency which enables cooperation, it becomes much easier to solve problems caused by perverse incentives. When violence is put on the market, it will always have inherent problems because violence is the only thing that can disrupt a market order.

The meta-regulatory agency cannot, of course, have an ownership stake in the defense agencies. It can never directly contract these agencies; the only purpose it can serve is to protect the interests of the public if they are ever in conflict with the interests of the defense agency. This is done through contract, as everything else in market governance. The contract results in creating terms for the dissolution of or exit from the agency of market governance. As long as these terms are met and a person is no longer a part of the structure, the market government loses its authority. When this has been done, market government returns to the role occupied by all market agencies and cannot use its managerial or regulatory powers. If it attempts to do so, it will be met as any other invader would be. The potential for exit guarantees that the market government can never expand beyond its proper role.

The same governance structure can also defend against civil war. When market incentives are not enough, conflict can be avoided using cooperation to prevent coercion. Even if the public goods problem is not a serious issue, costs are lowered for individual persons if everyone is using defense companies. This is because law is better enforced when all people subscribe to it. Furthermore, the mitigation of perverse incentives is a similarly valuable goal. If an entity offers to mitigate perverse incentives and contractually obliges all people to pay for defense, there is the best possible allocation of resources. Of course, all of this would be possible only insofar as it is strictly voluntary.

The Anti-Socials

What happens when someone is not willing to cooperate and does not want to be involved in the social system? What happens to the anti-socials in society? The answer to this is quite simple and brutal: the incentive for any given person is to try to conquer the anti-social individual. In other words, the anti-socials will be physically removed from society. This is obviously in violation of moral decency and ethical norms unless there is an additional ethical reason to attack these anti-social individuals. If they have previously committed crimes or if they behave in a savage manner, this conquest can be ethically justified. Few people would stake much on the defense of anti-socials. But the ugly truth is that solitary individuals are vulnerable to violence, regardless of the ethics of the matter.

This is not to say that most people would immediately try to conquer solitary individuals. However, such individuals are much more likely to fall victim to crime. A system of governance mitigates this by joining a plethora of solitary individuals into a cohesive force with incentives to keep each other secure and safe from violence. The force that has made Western civilization possible is the militia, which gives men camaraderie and hierarchy through combat. This is only possible within a society and goes beyond any formal military. Having a well-ordered militia is integral to create a free and libertarian society that can remain competitive with statist societies. And as we have established earlier, forming these cohesive systems will naturally result in governance and not a disjointed and purely economic force.

Conclusion

The natural condition of man is governance, and the natural way of organizing the world is through governance. But the modern state has only arisen in the past few centuries. The civilized state has only outlasted the modern state by a few millennia. The vast majority of human existence occurred without a state, but this does not mean an absence of hierarchy or an absence of governance. The modern state is not inherent to man, but governance is inherent to civilization.

In a civilized society, governance must reach outside the tribe. This is simply due to the burden of property and the problems with having violence on the free market. The solution to this is not the state, but rather cooperative contractual structures functioning according to libertarian ethics. In Part IV, I will discuss other reasons why governance is necessary and who would govern in which way.

<<<Part II                                                                                                 Part IV>>>

On Libertarianism and Statecraft, Part II: Property and Liability

<<<Part I                                                                                                  Part III>>>

Author’s note: The main themes of this series will be further expounded upon in my upcoming book Anarcho-Monarchism, which will be available in April.

Stateless Statecraft

At the end of Part I, I posited that statecraft would best function and flourish without a state. This is an assertion that could seem oddly self-defeating unless the meanings of state and statecraft are clarified. Statecraft is by definition simply good governance of the internal and external affairs of a political body. The state is a group of people who exercise a monopoly on initiatory force within a geographical territory. Although the word ‘statecraft’ directly refers to the state, there is no philosophical reason for why statecraft would disappear if there were no state. When we consider the implications of governance on the free market, the abolition of the state would lead to the largest amount of statecraft possible. To explain why this is so, it is necessary to formulate a theory of property.

Absolute Property

Each person who owns property in a libertarian social order is the absolute monarch over his own property. They are not bound by the constraints of an overarching state that weakens the rights they have to their property. The landowner can decide the laws that apply within his property, who can enter his property, and how to use all of the resources on his property. The owner also reaps the benefits when renting the property that he owns. A society built around property is a society in which each person can rule absolutely over his own property without external interference. Decentralization involves a centralization of power for each individual and family, thus increasing power rather than decreasing it.

One can view a worldwide anarcho-capitalist society as millions or even billions of monarchies co-existing. (This is ignoring any other associations and any potential use of force, which will be dealt with in Part III.) Since property ownership makes each person into a monarch, each person will need to manage one’s property using the utmost care. This is especially relevant with regard to social relations, as social interaction involves multiple individual monarchs managing their property in unison. Furthermore, each of these monarchies has to fully internalize the costs they impose on others, and will therefore be held completely responsible for everything they do. Before formulating a wider theory of society, it is important to address this issue of externalities.

Externalities

Since completely decentralized monarchies need to internalize all costs they create, they cannot be formed or sustained as coercive political systems. Any failure to internalize these costs goes against the libertarian social order. Therefore, these monarchies must be value-productive to avoid being sold off. Property cannot be sustained if it is not actively producing value. Each property owner is thus burdened with ensuring that the property they hold is producing value. The more property one has, the larger one’s domain grows. Each person can hold a domain as large as one can utilize while producing value. This constrains the amount of property one can hold, as attempting to enlarge one’s property beyond one’s managerial capacity will be unprofitable.

Dishonesty, fraud, and theft will only ensure that the owners of property have an unsustainable relationship with their own property. They cannot produce profits, and the way in which they acquired their property will ensure that the property will soon become a great burden. The only way that this can be temporarily feasible is if the owners of this property convince the society to subsidize them through propaganda. It is always ultimately unsustainable and will create a chaotic relationship with property and/or society.

There is no central entity that decides what each of these monarchs does with their own property, so they are completely sovereign within their property. This sovereignty can only be individual and not corporate, as corporate structures only exist insofar as the state is willing to create and enable legal fiction. This means that each private person has to be subject to an individually sovereign monarch or be a monarch himself. Each person is forced to either obtain property, live on the property of another, or leave society altogether. The necessity of sovereignty creates an extreme necessity for statecraft, ensuring that statecraft would be rapidly developed beyond its current practice.

Holding property involves an increase in responsibility. As each property owner is a sovereign monarch in a libertarian social order, each person needs to govern their property in the most effective manner. Failure to do so will result in the economic necessity to relinquish property in order to pay past debts and/or future costs. The ultimate meritocracy is produced, and each owner can realize his full potential in terms of governance. As long as aggressive violence is prevented, there will not be a chaotic society or freely acting individuals with no regard for societal well-being. There will instead be a society in which all people who own property are burdened with governance to far greater extents than they currently are.

Property as a Liability

The socialist conception of property that is steeped into our culture says that owning property is a beneficial and wholly positive fact within the life of each individual person. This is the notion that capital simply produces money from money. It assumes that all people would rather own property than not, and the ownership of property is not constrained by anything other than simply not relinquishing that property. It can easily seem as if owning property only adds to the net worth of an individual without any associated downsides, but this is true only insofar as the property is subsidized by the state and organic human interaction cannot take shape. The best example of this is the multinational corporation, which is entirely formed through the partnership of a company and many states. When the control one has over one’s own property is limited, one is subject to the whims of the state. They will also have the protection of the state, such as it is. People are relatively insulated against the true effects that owning property has on them. Property owners need to ensure that their property is value-productive in order to not consume their resources and the resources of society. This is because property requires constant investment and the only way to avoid this is to give up property.

The Burden of Property

Since all property depreciates in value when it is used, keeping property well-maintained is a huge effort. To demonstrate this, we need to consider the most common examples: owning a house and owning a factory. When a person owns a house in a statist system, they are largely not responsible for most of what happens to that house. The state provides military and police protection while ensuring that the house is connected to most utilities. The state also increases the burden of the house with property taxes, but theft cannot be classified with other burdens of property. When a house is owned in a libertarian society, the matter at hand becomes much more complicated. The factors that ensure that a house can function as a suitable home are all put into the hands of the homeowner.

Even with the state being involved, it is difficult to maintain the aesthetic qualities of a house, the functionality of the utilities, and the maintenance of appliances. This is alongside all comforts that are vital for a house to be inhabitable. Without the state subsidizing property, it becomes the duty of everyone who owns a house to ensure that they are able to use roads and utilities. In a libertarian society, the person burdened with owning the house can no longer externalize the costs of setting up the systems required to make the house a functional and comfortable place to live. Furthermore, if there is no state provision of security, each person would have to ensure that their property is secured without having defense subsidized by the state. This will result in a larger burden of costs when it comes to maintaining property.

Commercial Property

Property ownership gets more complicated with a house that is used for collecting rent. In addition to the aforementioned burdens, the person owning rental property has to ensure that the renters of that property will take proper care of it. The rental property also has to provide a good return on investment. The task of finding good real estate and preserving its value in order to benefit the distant future is immense. The burden of extensive economic calculation rests on the shoulders of the individually sovereign absolute monarch who owns that property.

This is even worse in the case of a factory, which is property that only has value insofar as it is engaged in production. A factory cannot serve as a habitable home in the first world, each individual employee needs to get paid, and all machinery needs to be maintained. Costs need to be reduced and demand needs to be properly met in order to avoid losses due to shortages or overproduction. Additionally, a factory will inherently have capital consumption. It is very easy to be in a financial state of loss upon starting an enterprise, and a lot of businesses will never bring in a profit and will always be a burden to the owner of that enterprise. Thus, it is of paramount importance to the owner of the enterprise to govern it properly and to take the best care possible of his property.

Conclusion

Property may be burdensome, but this immense burden of property does not have to be put upon one person, and in any real situation it will not be. What is fundamentally vital for the ownership of property is that the burden of property can be shouldered collectively to benefit from co-operation and economies of scale. This increases the degree of governance necessary. In Part III, I will discuss how this theory of property is conducive to statecraft and how we can formulate a theory of stateless governance using this framework. I will also address the issue of war and conflict in a private property society.

<<<Part I                                                                                                  Part III>>>

Book Review: Reactionary Liberty

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Rating: 4/5

Nepal Has Fallen

Among Asian nations, Nepal is not high on Washington’s list of foreign policy priorities. The mountainous nation, which is consumed by the massive Himalayas, is mostly known for its Buddhism and its Gurkhas—a warrior people who still provide mercenary services for the British, Indian, and Singaporean armies. Overall, Nepal produces very little that Americans consume. Nepal is also not the home to a large American military contingent, nor is it seen as an important ally in America’s never-ending quest to be the major hegemony in West and East Asia. Nepal, to put it bluntly, is not important to American interests.

This view will almost certainly change, however. The reason for this is that a powerful Communist party, the Communist Party of Nepal (Unified Marxist-Leninist) recently acquired the levers of power in Kathmandu after a democratic election. According to all international observers, the Communists in Nepal have close connections to the Chinese Communist Party in Beijing. This all but guarantees that rustic and rural Nepal will become a Chinese satellite on the border with India, a close American ally and a long-time opponent of China owing to a border dispute that once erupted in violence.

Democracy, Civil War, and Insurgency

In order to appreciate the importance of this victory, one must understand the history of communism in Nepal. Himalayan Communists are not the typical neckbeard professors that one encounters in the West; they are experienced guerrilla fighters who waged a war against the central government for almost two decades.

The Communist Party of Nepal is led by two former prime ministers, K.P. Sharma Old and Pushpa Kamal Dahal (both of whom fought against the center-left government during the 2000s). These two men managed to unify two competing factions of the far-left party in order to sweep the country’s Parliament and Provincial Assembly. With this mandate, Nepalese Communists are expected to both follow a harder line against India and be more cooperative to Chinese business interests in the country. It is predicted that one of the first orders of business for the new government is to pass through the Chinese hydropower project that the former prime minister, Kamal Thapa, cancelled less than a month before the election.

In 1994, the government of prime minister Girija Prasad Koirala, the first democratically elected leader of Nepal and a member of the center-left Nepali Congress Party, suffered a vote of no confidence. That same year, new elections brought the Communists into power. Communist leader Man Mohan Adhikari became the prime minister and briefly led a minority government. That same government dissolved less than a year later. After that, Nepalese Communists, especially the Maoists among then, began their long insurgency.

A brief paper written by Yurendra Basnett in 2009 laid out the reasons underlying the vicious civil war that rocked Nepal between 1996 and 2006. Basnett writes that Western scholars were baffled by the far-left insurgency given that “Nepal enjoyed [an] unprecedented level of economic and political freedom” at the start of the rebellion.[1] The Maoists themselves argued that their war began because of economic inequality, rural poverty, and chronic landlessness in the country. Basnett argues that these invocations of economic disparities do not amount to much given that they have been “omnipresent” since the formation of modern Nepal.[2]

What Basnett’s critique of the Maoist movement misses is that Communist movements rarely come from times of economic disparity. Except for the rise of far-left movements during the Great Depression of the 1930s, most of the seminal Communist movements have sought to obtain power just at the time when their respective nations have achieved some form of unprecedented growth or stability. When the Bolshevik Revolution of 1917 erupted, the Russian Empire that they overthrew was far more liberal, progressive, and economically advanced than Western liberals and socialists realized. According to UNZ Review writer Anatoly Karlin, the Russian Empire of Tsar Nicholas II was even more “progressive” than such typically modernist bastions as London, Paris, and Berlin:

“Access to higher education was actually more meritocratic in the late Empire than in contemporary Germany or France by a factor of 2-3x. Women constituted about a third of Russia’s total numbers of university students, a far larger percentage than in any other European country—and Russia by 1913 had the largest number of university students in Europe (127,000 to 80,000 in Germany, around 40,000 in France and Austria each). Likewise, they constituted an absolute majority in grammar schools, many decades ahead of most of the rest of Europe. In 1915, restrictions on co-education were dropped across a range of Russian universities by decision of the Tsar and his Council of Ministers.”[3]

Tragically, this liberal attitude allowed a radical student body to fester and become many of the same Bolsheviks who oversaw the genocidal regime that would rule Russia until 1991. Such a scenario played out in China as well, for when the Chinese Communist Party began life in the aftermath of World War I, China was modernizing at a rapid pace. Thanks to World War I, which did not damage China, Chinese exports rose and the nation’s trade deficit dropped by an astounding 80 percent. While this success proved temporary, China before Mao was politically unstable but considered one of the world’s greatest jewels. Shanghai in the 1920s and 1930s was a cosmopolitan city beloved by Asians and Westerners alike.

Maoism in Nepal follows a discernible pattern—as prosperity increases or stabilizes, discontent grows as well. Like Marx, the social leech who had servants and never worried about earning a dollar, many of today’s Communists are full of the same greed that they constantly accuse capitalists of harboring deep in their benighted chests.

In Nepal, Maoist violence reached a terrifying apex in November 2001, when more than one hundred people were killed in violent confrontations between rebels and government forces. As a result, the central government declared a state of emergency. An absolute monarchy returned to power amidst the chaos. All told, almost 20,000 people were killed and another 2,000 remain missing.

From Monarchy to Democracy to Communism

A reactionary analysis would find that Nepal’s troubles began with the decline and fall of its monarchy. When this stabilizing force fell, chaos came in its wake.

Nepal was unified into a central state ruled by a hereditary monarchy in 1768. The kingdom first began to falter due to military incursions by the British East India Company, which already had a sizable foothold in India by the late 18th century. Between 1814 and 1816, Nepalese forces lost the Anglo-Nepalese War to the soldiers of the East India Company and their Indian allies. Although the Kingdom of Nepal retained its independence, one third of the country would be a protectorate of British India until Indian independence in 1947.

When King Birendra came to the throne in 1972, political parties were banned in the country. However, this did not mean that the king could rule by fiat or whim; a system of regional councils called panchayats helped to disperse and decentralize authority. Because he ruled during an age of interventionist democratic liberalism, King Birendra often told the international press that he was a democrat rather than an autocrat. Still, the king wisely told his critics that due to Nepal’s “backwardness,” mass democracy would be a recipe for disaster. The political violence that often accompanies the rise of political parties would ruin the country, the king argued.

King Birendra would rule Nepal in this way for decades. Despite the relative peace and harmony, there were pro-democratic movements designed to bring down the monarchy. In 1980, King Birendra had the leaders of the center-left Nepali Congress Party arrested in order to keep the panchayat system in place. The king then called a referendum in order to see if Nepalese citizens would prefer a non-party government or one that allowed political parties to exist. Nepalese voters favored non-party politics by a score of 55 to 45 percent.

Ten years later, the People’s Movement used strikes to disrupt the monarchical state. This movement proved harder to suppress than one political party, as it was composed of several political parties, including the Nepali Congress Party and a unified group of Communist parties called the United Left Front. In February 1990, the government began arresting the leaders of the People’s Movement and shut down most of their media organs. A series of deadly confrontations between the Nepalese state and People’s Movement protesters followed this. For example, in the city of Bhaktapur, police killed 12 protesters in late February. Out of anger and frustration, approximately two million protesters descended on the capital of Kathmandu. On April 8, King Birendra removed the ban on political parties. A few months later, in November 1990, a constitution written by the People’s Movement forced King Birendra to remove the panchayat system and to democratize the government. Marxists were soon elected to office.

Although 1990 is often seen as the year when democracy came to Nepal, the continued existence of the royal family helped to maintain fears that an absolute monarchy could return at any time. These fears gained substance thanks to Crown Prince Dipendra, the king’s eldest son and heir. Unfortunately, he proved to be a murderous psychopath. On June 1, 2001, Dipendra consumed large amounts of alcohol and hashish at a dinner on the grounds of the Narayanhity Royal Palace. After misbehaving with a guest, the King told him to leave. He returned an hour later with a Franchi SPAS-12 shotgun, an H&K MP5 submachine gun, a Colt M16A2 rifle, and a Glock 19 9mm pistol, which he used to kill nine members of the royal family: the King and Queen, his sister, his brother, the King’s brother, two of the King’s sisters, the husband of one of the King’s sisters, and the King’s cousin. Dipendra then turned a gun on himself, dying after spending three days in a coma during which he was King. While many Nepalese citizens continue to question the official story of the massacre, there is no doubt that the future of the Nepalese monarchy ended on that late spring night in 2001.

The throne passed to Gyanendra, another brother of Birendra who briefly re-established the absolute monarchy due to political violence in the country. King Gyanendra blamed Nepal’s political parties for failing to form a government after the dissolution of the parliament. After taking direct control of the state, Gyanendra dismissed three prime ministers for failing to call for new elections. Interestingly for an autocrat, King Gyanendra demanded that Nepal acquire some form of democracy or parliamentarianism in order to legitimize the state in the eyes of foreign critics. King Gyanendra’s promises of “peace and effective democracy” were undermined by the Maoist rebels who continued to carry out their bloody war against the Nepalese monarchy. Like Bavarian minister Gustav von Kahr, King Gyanendra all but admitted that a “cell of order” must exist before democracy can take hold. Personal liberty is nothing if public safety cannot be guaranteed.

By 2006, King Gyanendra announced that he would give executive authority to a new prime minister. Interim prime minister Girija Prasad Koirala took power in 2006 while Nepalese politicians argued about the role the monarchy would play in the future democracy. That April, Gyanendra reinstated the country’s parliament.

The fall of the monarchy occurred under the watchful eye of the Indian government. Along with Prime Minister Koirala, who supposedly suspected that the monarchy would always threaten democratic governance, Indian officials weakened the King’s power to the point where the royal palace became just the head of the parliament. On May 27, 2008, King Gyanendra was ordered by the parliament to vacate the royal palace within fifteen days. The ruling came as part of peace talks between the transitional democratic government and the Maoists. This is how the Nepalese monarchy fell—as an olive branch given to ultra-left radicals who despise Nepalese traditions.

Lessons

There are several lessons to be learned from these events. First, in the words of Hans-Hermann Hoppe,

“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.”[4]

If democrats and communists are permitted to wield political power and advance their goals, they will eventually destroy the traditions and values that make civilization possible. It sometimes begins with something that seems innocuous—the Magna Carta in England, the Constitution in America, or the People’s Movement in Nepal—but the end is always some form of communist takeover, whether overt or covert. Monarchs (or private property owners in a libertarian society) must be willing to use the necessary amount of force to crush democratic and communist uprisings, however unpleasant the resulting bloodshed may be.

Second, it is no measure of health to kowtow to a sick global community, especially when the disease in question is such a virulent one as liberal democracy. Had King Birendra argued a passionate defense of traditional unelected governance, offered an ideological offensive against democratic thought, and called upon foreigners to respect Nepal’s sovereignty, the progress of the Maoists might have been forestalled. King Gyanendra was no better in this regard, and it cost him his crown. Unlike other countries that have had democratic experiments inflicted upon them by Western intervention, Nepal harbors no conceivable threat and has little that imperialist powers could want, so war propaganda would be more difficult to manufacture against them.

Finally, the greatest enemy is always the enemy within. A stable family, let alone governance structure for a nation, must have a means of detecting and removing threats like Dipendra. This could take many forms, from mental health evaluations to keeping inebriated people and deadly weapons away from the King.

What Lies Ahead

For India, the end of official hostilities in Nepal have been of little comfort. After all, India itself is still battling an internal Maoist insurgency that has ties to Nepal’s Communists. India’s war with Communist forces have been going on since 1967, and today, the “red corridor” of the country has claimed almost 18,000 lives. Violence is trending downwards, but there is no end in sight to the insurgency. A Communist victory in Nepal is likely to bolster the spirits of Maoists across the border in India.

For China, a pliant government in Nepal means that they move one step closer to realizing their “One Belt, One Road” dream. This plan, which has already seen China dump billions of dollars in investments in Asian and European ports, as well as investing heavily in the economies of sub-Saharan Africa, is the great issue facing the West. Contrary to starry-eyed Cathedral elites, the Chinese Communist Party is not reformed and has not embraced capitalism. Instead, the CCP is bent on pursuing a predatory economic policy that will make Asia and Africa into colonies of China’s limitless and cheap produce.

In order to achieve “One Belt, One Road,” do not be surprised if China dusts off an old gem from Communism’s history. During the 1930s, when fascism posed a grave threat to Soviet Communism, Joseph Stalin encouraged the Popular Front strategy, which saw Communist parties collaborate with liberal and socialist parties in France, Spain, the United States, and other nations. The elections of May 1936 brought the Front Populaire to power in Paris, and Leon Blum pursued a radically republican, anti-clerical, and socialistic platform thanks to support from Communist-backed labor unions. Across the Pyrenees in Spain, the Frente Popular installed the a rabidly anti-Catholic and anti-capitalist government headed by Manuel Azana. This was the last government of the Second Spanish Republic, for a right-wing coup led by the Spanish Army triggered what would become the Spanish Civil War in 1936. China, in pursuing their economic goals, may begin promoting Communist parties all across Asia. While Nepal is small potatoes in the grand scheme of things, its fall to a far-left rabble does not bode well for liberty in Asia.

References:

  1. Basset, Yurendra (2009). From Politicization of Grievances to Political Violence: An Analysis of the Maoist Movement in Nepal. Development DESTIN Studies Institute, Working Papers Series. p. 4.
  2. Ibid.
  3. Karlin, Anatoly (2017). The Russian Empire: Too Nice For Its Own Good. http://www.unz.com/akarlin/progressive-russian-empire/
  4. Hoppe, Hans-Hermann (2001). Democracy: The God That Failed. Transaction Publishers. p. 218.

The Not-So-Current Year: 2017 In Review

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

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

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

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

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

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

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

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

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

White nationalist and alt-right leader Richard Spencer was present in the bar of the Marriott hotel that hosted the International Students For Liberty conference. This did not go over well with Jeffrey Tucker, who loudly denounced Spencer, after which security removed everyone from the bar. I wrote about the incident and the philosophical underpinnings of it.

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

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

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

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

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

Keynesians and others who support fiat currency and central banking frequently claim that there is not enough gold in the world to back the quantity of currency in existence, and thus returning to gold would set off a deflationary spiral while destroying several industries that depend on gold. I debunked that claim.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Case for Autostatism

Author’s note: The reader can find everything else I have written about the concept of autostatism here.

Introduction

Libertarians have always had ambitions that are both universalist and purist. Most libertarians are willing to admit that their vision will not be realizable in their own lifetimes and rather hope that future generations are wiser than they themselves have been. These libertarians take an approach that could only be considered rational when one takes into account the very nature of libertarianism. The search for liberty means always fighting against tremendous odds, as many people care more about increasing their personal power than about liberty. Power is a great direct gain, while liberty is a diffused social gain. This insight, combined with the logic of public choice, tells us that when people seek power, they are more likely to attain it than those who want to destroy power are to destroy it. These people seek power for themselves by being parasites on others, which is generally incompatible with achieving liberty.

The achievement of a libertarian social order requires collective motivation on a scale that is only present when the state has become so oppressive as to be intolerable. The state has adapted to this and tries very hard to avoid any loss of power by being as tolerable as possible and making its operations as covert as possible while openly integrating themselves into the lives of everyone. This helps the state remain an unambiguous sovereign and appear to be a fundamental condition of life from which it is hard to deviate psychologically and intellectually. The modern state makes itself into a leviathan not by lording over people, but rather by integrating itself into the population. This process is neither peaceful nor painless; the methods by which the state integrates itself into a society must be fundamentally based on indoctrination and coercion. But once sufficiently advanced, the state becomes a fact of life that is almost incontestable by any rational person, and support for the abolition of the state will be extremely sparse. Thus it is possible to say that up to a point, the more oppressive a state is, the more it can be expected to have popular support.

Collective Separation

The main premise from which the strategy of autostatism is derived from is that separating ourselves into multiple autonomous governments or stateless localities is a necessary precondition for abolishing the central state. In modern democracies, all sides of all conflicts are under immense pressure and are thus very hostile towards everyone with whom they are in conflict. Since all issues are to be decided by all people in a democracy, the people who have their lives questioned will be the people who resist those who challenge their ability to live their own lives as they please. Note that in a healthy social order, the challengers themselves would be the imperiled group. From this comes a desire to separate from the hostile factors that are directly antagonistic to the individual’s lifestyle and property. There is no reconciliation or common ground within the framework of democracy because democracy intentionally creates unresolvable antagonisms. The common decision-making process is irreconcilable with personal liberty. Having the masses govern the masses thus becomes a self-reinforcing structure of creeping totalitarianism.

This does not necessarily mean that the correct answer to the problems of democracy is statist fascism or monarchism, as the conflicts are still present but heavily suppressed, although a case could still be made for these kinds of states. Even though autocracy has a better incentive structure than democracy in most cases, the state is not the answer to all problems within democracy. Neither is a lack of state; when libertarians think that full rights in property will properly resolve all conflicts, they assume that all people desire to have full rights in their own property. The problem is then a conflict of whether or not there should be complete property rights or whether property rights ought to be limited for the sake of the common good. This is the question of whether property creates society or vice versa.

The answer to this fundamental conflict is the autostate. This is the practical, but largely forgotten notion of governance based on actual consent. The word “autostate” means a government by the self. It can also be explained as a state formed from autonomy. The fundamental difference between a state and an autostate is that the foundational principle of the autostate is that the system of governance ought to require the consent of everyone who is governed. If no such consent is acquired, the government must be invalid and must fall into internal conflict. The notions of tacit or implicit consent that play a prominent role in social contract theory only serve to elevate the conflict inherent in any system of compulsion and suppression.

Since an autostate has the unanimous consent of everyone governed by it, it functions as any other entity on the market. However, instead of a consumer good or a conventional service, the autostate provides governance, which is to say a legal framework and a means of enforcement. Many libertarians are caught up in a fantasy in which all governance is evil. Most people do not agree with that assessment and want to put together a semblance of a social and political order so they can realize their vision for what virtue and political organization should be.

Powerless Politics

The fundamental tenet of autostatism is that the government ought to be completely powerless and can only enact those edicts which people find to be tolerable or benevolent. If this is no longer the case, the autostate could be overthrown without any risk or violence. It is necessary to distinguish between a government and a state. A government is the manager of a land area while a state holds a monopoly of compulsion and coercion. Thus, the autostate is a government, but not a conventional state. The autostate fundamentally requires consent, and consent can be revoked when the autostate stops diligently fulfilling the duties that it has taken upon itself. The autostate can be fascist, socialist, or anarchist in nature and it does not need to have any formal structure at all. What matters is that this structure or lack thereof is first agreed upon. Many anarchists and libertarians see this as conflicting with spontaneous order, but the natural condition of society is deliberate action building upon spontaneous order. It does no good to assume that one system or another is objectively part of human existence.

Furthermore, the prevailing law system in any area is more powerful and consistent if all people within that area follow the same system. This does not mean that autostates need to be dependent on physical area, but autostates are composed of the individuals who subscribe to the legal structure of the autostate. The autostate is simply the reduction of governance to a market entity and the elimination of coercion within governance. However, the autostate can retain the political and personal values that people want to have enacted. The autostatist order can thus be acceptable to everyone who is not wholly influenced by their desire for power or domination. Autostatism can let everyone accomplish their utopian political structure unless it involves the direct subjugation of others. It allows for people to have their own ideals realized in a manner that does not impose costs on those who do not share these ideals.

In essence, autostatism calls for an abolition of competitive politics for the implementation of cooperative politics. Politics should not be a matter of majority consensus but rather the implementation of mutually agreed upon social goals. The politics right now are imposed upon an unwilling population; the politics of autostatism are collaborative and voluntaristic. This can be called either an abolition of politics or a revolution within the nature of politics. Politics should not imply coercive governance, but cooperation for the achievement of mutual goals. It may be true that these mutual goals are reprehensible to others, or that some people will not want to participate in seeking these goals, but the goals themselves are not a threat within the autostatist order because they are strictly confined within consensual relations. These consensual relations mimic governance in the traditional sense, yet they require no authority insofar as that authority is derived from force and compulsion. The autostate as a concept itself allows for a reconciliation between anarchists, libertarians, socialists, conservatives, and every other group that is able to be so intellectually honest as to admit that they are better off when they have their own ideal structures implemented.

Stateless Governance

Stateless governance may seem like an ultimate nonsensical contradiction. When there is no state, the government supposedly lacks the power to do what it needs to do. And within libertarian circles, the government is seen as an inherently coercive and violent entity. Thus, stateless governance seems impossible. But we must realize that without a state, the government is nothing other than a manager of a certain society or community. If a government is a voluntarily funded managerial entity which only ensures that the social order is kept functional, there is nothing inherently unethical about that government. A critique of the state cannot be a critique of governance, as the governance is derivative of the state only in modern society.

The distinctly libertarian view that all governance and control over an individual are inherently evil, and we should all be free and not tied to any obligation, is naive and unrealizable. Most people do not want to fully determine the path of their lives and do not want others to do so either. People have values that go beyond individual liberty and they want to exercise those values. The reality is that most people want society and themselves to be controlled, appealing to liberty as an ultimate end is only convincing when appealing to people who would inevitably become libertarians themselves if given enough time to reflect on their beliefs. We must acknowledge that government is not something that is inherently evil, but rather a tool that can be used for the accomplishment of certain goals. However, when the government is tied to a state, it will be fundamentally exploitative, as the incentive structures allow for such exploitation and cater to those who would engage in such behavior. The problem is statism and not governance.

Fourth-Wave Libertarianism

Libertarianism is currently in a serious identity crisis. To explain this, let us begin by sorting the development of libertarianism into four different periods. The first period was the classical liberal era, in which the primary conflict was between the liberals and the mercantilist-feudalist tendencies within the social order. Between the high point of the first period and the high point of the second period, there were the Anglophone anarchists. People such as Lysander Spooner and Benjamin Tucker developed a theory of natural law and individualist anarchism which would later be adopted in part by Rothbard. Although integral for the development of the third wave in libertarianism, they were not influences on the later or earlier thinkers. The second period was the most desperate period, in which Ludwig von Mises, Friedrich von Hayek, and Ayn Rand were the most active and the period in which the groundwork was laid for the modern libertarian movement. This was the active defense against communism and socialism as they were becoming the dominant forces in the world. This was followed with the wave of libertarianism that had Rothbard at the forefront. This was a drastic attack against the state itself that went beyond the anti-socialism of the previous wave. The third wave accumulated thinkers such as Hans-Hermann Hoppe and Walter Block, and reached a somber crescendo with the campaigns of Ron Paul. The neoliberal movement was also created at this time, although this movement does not follow the particular development of libertarianism and as such is excluded.

Each of these waves has a distinct attitude, and all of them shared the consistent strategy of trying to reach libertarianism by being the most reasonable and intellectual people. But this only works when libertarians are attacking something dangerous and imminent; the success was not due to rationality, but due to how threatening the opposition was. However, there is an emergent fourth wave, and although Hoppe falls solidly in the third wave of thinkers, he is either the eminent inspiration or the primary intra-movement antagonist for most of the fourth wave. These fourth-wave thinkers do not stick to political or economic issues, but rather involve social issues at the core of libertarianism and do not allow for libertarianism to be nihilistic without properly defined morality and values. The classical liberalism of the previous waves is also under scrutiny, with some calling for a more positive outlook on reactionary thought.

Since libertarians are split into the left, right, and neither camps when it comes to social and cultural values, the fourth wave is in a disorganized and dysfunctional crisis. If we wish to preserve the libertarian tradition, we need thinkers who can unite the libertarians who want to preserve the social orders that they value alongside the purist notion of liberty. Fourth-wave libertarianism must make a drastic change and must use different tactics than the last three waves. Libertarians have always been best when they face significant issues and behemoths that seem to be immortal, and there is no larger challenge today than forced integration and coercive democracy. Autostatism offers an answer to these issues that neither the status quo nor more conventionally purist libertarians can.

Building Liberty in Minecraft

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

Prior Developments

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

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

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

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

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

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

Original Conditions in the World of Minecraft

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

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

The Virtual State of Nature

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

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

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

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

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

Long Experience in a New Order

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

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

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

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

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

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

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

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

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

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

Some Problems with Liberty Minecraft

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

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

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

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

Conclusion

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

References

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

Book Review: Libertarian Reaction

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Rating: 4/5

Lecture: Libertarianism and Reaction

On July 28-30, 2017, the second annual Corax Conference took place in Sliema, Malta. To my great surprise, I was invited and sponsored as a speaker. I decided to seize upon the opportunity to spread part of my message to a live audience, as well as leave the United States for the first time. While there, I gave an early version of the lecture linked below. That version, and all other materials from the conference, may be purchased here: https://cor.ax/coraxconf-remote

This is a lecture about libertarianism and its relationship to reactionary thought of several types.

On The Relationship Between Libertarianism and Fascism

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

Examining Premises

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

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

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

The Premises of Fascism

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

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

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

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

The Conclusions of Fascism

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

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

Libertarianism and Fascism

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

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

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

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