The Not-So-Current Year: 2017 In Review

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Eight Politically Incorrect Benefits of Cryptocurrency

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

1. Tax Evasion

Charles Stross famously complained that Bitcoin

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

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

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

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

2. Agorism

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

3. Undermining Prohibition

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

4. Circumventing Child Labor Laws

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

5. Circumventing Capital Controls

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

6. Financing Disapproved Activism

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

7. Thwarting Monetary Policy

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

8. Assassination Markets

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

References:

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

Book Review: The Euro

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Rating: 2.5/5

Book Review: Libertarian Reaction

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Rating: 4/5

On Consumerism, Corporatism, Time Preference, and Modernity

Consumerism

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

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

Corporatism

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

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

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

Time Preference

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

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

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

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

Modernity

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

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

Conclusion

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

Eliminate The Debt Ceiling

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

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

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

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

History

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

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

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

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

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

Before And After

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

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

Now And Later

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

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

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

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

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

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

Objections

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

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

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

Conclusion

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

References:

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

On Immigration and Outlawry

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

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

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

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

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

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

Anarcho-Tyranny

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

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

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

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

The Concept and Practice of Outlawry

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

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

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

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

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

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

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

For A New Outlawry

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

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

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

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

Physical Removal

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

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

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

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

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

Objections

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

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

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

To ignore this is the height of political autism.

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

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

Conclusion

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

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

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

References:

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

A Consideration Of Helicopter Rides

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

Socialism in Chile

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

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

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

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

The Chilean Coup

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

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

Peronism in Argentina

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

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

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

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

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

Resistance, Return, and Repression

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

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

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

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

Aftermath in Chile

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

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

Aftermath in Argentina

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

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

Contemporary Application

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

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

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

Moral Issues

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

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

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

Conclusion

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

References:

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

Felling The Oak Of Statism

Several years ago, I went on a vacation with my family to the mountains for a week. On the day before we returned home, a line of severe thunderstorms hit back home. We arrived the next day to find that a large oak tree near the house had been struck by lightning. Debris was all over the yard between the woods and the house, and huge chunks of bark that had been blasted off were looped around the branches. The strike killed the massive tree, and its continued presence posed a danger. It was large enough to fall onto the house from where it stood if left to its own devices, so it had to be felled. But due to these circumstances, it could not be cut down haphazardly and without regard for what damage might be done if it were to fall in the wrong direction. We called in professional loggers to remove the tree in such a way as to avoid hurting anyone or damaging anything. The tree was removed properly and all was well.

There is a useful lesson here for those who seek to end the state. The state is like that oak; large, weighty, and with great potential to destroy. A thunderstorm consisting of economic, social, and cultural decay masked by technological progress has come. A lightning strike of discontent with the status quo is charging up, and sooner or later the tree of statism will be fatally struck. But if we leave the tree to die and fall by its own weight and decay, immense and possibly irreparable damage may be done to the social order. Just like the oak, the method used to dismantle the state apparatus cannot be haphazard in nature.

Those who subscribe to ‘No Particular Order-ism’, or the belief that libertarians should take whatever reduction in the size and scope of government they can get, are exhibiting a dangerous myopia that borders on political autism. There are certain aspects of government which, if abolished, would result in a potentially catastrophic outcome if other aspects were not also abolished beforehand or concurrently. There are other aspects of government which, if abolished, would leave people in a dangerous lurch in which they have neither a government monopoly nor a private alternative to provide them with service. There are also forms of privatization of state-controlled assets which could potentially be worse than leaving them in the state’s hands. Let us consider one example of each type to show what can go wrong if certain improper felling techniques are used on the oak of statism.

Improper Order

An example of abolishing government functions in the wrong order is that of open borders before welfare elimination. Many libertarians argue that state immigration controls should be completely lifted because they violate freedom of movement of immigrants, private property rights of residents, and freedom of association of both. But doing this while welfare programs are in place would encourage foreign peoples to flood a nation, displacing the native population while using the state to steal from them en masse. (Note that this also violates the private property rights and freedom of association of the native population.) The people who would be attracted to the country in this scenario would not be people who wish to be productive and make the nation better, but people who seek to exist parasitically upon those who have been forced to pay for the welfare state. Although this is a potential strategy for eliminating both state borders and welfare by using the influx of immigrants to crash the welfare state, this was originally proposed by leftists as a means of expanding the welfare state to the point of a basic income guarantee. (Notably, some people who call themselves libertarians actually want to expand the state in this way.) The likely outcome of all of this is not a freer society, but a loss of culture and identity to demographics which have a less libertarian disposition, the promotion of parasitism as a way of life, and the denigration of meritocracy.

Left in the Lurch

An example of leaving people without any kind of service would be the abolition of government militaries without any private replacement to protect people in their absence. This is the one part of the proverbial oak which is sure to fell the entire tree if it is cut, as a state without a monopoly on military force within its territory is a contradiction of terms. However, it is necessary to account for the Pax Romana problem. Students of history will be familiar with the time of relative peace and stability from the time of Augustus (r. 27 BCE-14 CE) until the time of Commodus (r. 177-192 CE). During this time, the economy, the arts, and agriculture flourished because the tribal battles that predated Roman conquests as well as the rebellions and riots that predated the Pax Romana were largely suppressed. But there was a dark side to this, particularly in parts of the empire which were much closer to the border than to Rome. With Roman forces in charge of law, order, and security, many peoples suffered losses in the ability to provide these services themselves. After all, societal organs tend to decay from disuse just as individual people do. When the Pax Romana ended, these peoples were without the stabilizing forces which they had come to rely upon and were out of practice in providing these services for themselves. The end result was that several of these peoples suffered raids, conquest, and murder at the hands of various barbarians and empires. Returning to our time, the restoration of the role of the militia in society as well as the development of privately owned military hardware (and perhaps a nuclear deterrent) are necessary prerequisites for an orderly elimination of government militaries. The only workable alternative to this (and only possibility before the aforementioned steps are accomplished) is a violent uprising by enough of the population living under a particular state so as to make that population ungovernable.

Soviet Dissolution

An example of improper privatization is that of handing control of state monopolies over to politically connected oligarchs. As Gustave de Molinari writes,

“Private property is redundant. ‘Public property’ is an oxymoron. All legit property is private. If property isn’t private it’s stolen.”

This is true, but the path from here to there matters. There are two proper methods of privatization of state-controlled property. One is to figure out the tax burden levied upon each person and distribute shares of state-controlled property accordingly. This is the most just method, as it attempts to compensate victims of state-sponsored theft for their losses. The other is for private citizens to seize control of whatever state-controlled property they can take and defend. This is not as just as attempting to return property to its rightful owners, but a person who takes property from a thief has a better claim to the property than the thief. For the state to hand over its monopoly over some good, service, or property to a particular private interest contributes to the creation of an oligarchical class which wields informal political power in promotion of its own self-interest to the detriment of everyone else, as happened in Russia during the dissolution of the Soviet Union. These oligarchs can cause more damage than the state in certain situations, particularly if they use their ill-gotten gains to influence who gets to wield state power, as they invariably have throughout history.

Conclusion

As always, it is important to think strategically and play the long game. Enemies of liberty are certainly doing this, and failure to do so by libertarians needlessly puts us at a disadvantage. Considering the likely consequences of cutting one part of government before another, cutting a part of government before a private replacement is viable, or privatizing state-controlled assets in certain ways can help us to fell the oak of statism in such a way as to safeguard essential elements of the social order and avoid needless unrest.

Book Review: The Age of Jihad

The Age of Jihad is a book about political unrest in the Middle East by Irish journalist Patrick Cockburn. The book is a compilation of his notes and articles over a 20-year period (1996-2016) while traveling throughout the Middle East. Cockburn did direct reporting where possible, and relied upon first-hand accounts when venturing into certain places was too dangerous.

Cockburn begins with his reporting from Afghanistan in late 2001 as the United States began its intervention to remove the Taliban from power. Next, he shares his experiences of Iraq under sanctions from 1996, 1998, and 2001, followed by his experiences there during the American occupation from 2003 to 2010. This is followed by his next forays into Afghanistan from 2009 to 2012.

The next part of the book focuses on the Arab Spring and the events that followed, with particular emphasis on countries in which the rulers were not quickly deposed. Cockburn begins with the Libyan Civil War of 2011 that removed Muammar Gaddafi from power, along with the difficulties that followed. Sectarian violence in Yemen from 2009 to 2015 and the failed uprising in Bahrain in 2011 each get a chapter.

The last part of the book covers recent developments in Syria and Iraq. First, the Arab Spring in Syria and its development into the Syrian Civil War from 2011 to 2014 is discussed in two chapters. Another two chapters are devoted to the contemporaneous destabilization of Iraq. This culminates in the rise of ISIS and the establishment of the Caliphate, in and near which the final four chapters take place.

The book gives important insight into just how terrible daily life is for people in war-torn lands, including the near-absence of basic utilities, shortages of essential items, rampant unemployment, and fear of mistreatment both from rebel groups and one’s own government. The book is filled with anecdotes of behavior which have not been seen since the Renaissance in the West, and knowledge of this behavior helps to explain animosity toward migrants from that region. The reader may be familiar with some of the events described, but almost anyone would find new information somewhere in the book.

One comes away from the book with a sense that both Western and regional powers had to be trying to perform so poorly. Western powers sought to punish Saddam Hussein without regard for the Iraqi people who bore the brunt of sanctions. They ignored cultural attitudes and sectarian divisions while turning a blind eye to mass corruption that greatly weakened the nation-building projects in Afghanistan and Iraq. They removed dictators who were stabilizing forces, thus creating power vacuums which were filled by al-Qa’ida and its affiliates. It is difficult to be so maliciously incompetent without intending to do so.

Overall, Cockburn does an excellent job of conveying the reality on the ground in most of the conflicts in the War on Terrorism and the Arab Spring. The only real improvement would be to add sections on recent events in Egypt and Tunisia, which only get passing mentions as sources for jihadists in other places. The Age of Jihad belongs on the bookshelf of any serious student of recent history, the Middle East, revolutions, war, and/or the effects of foreign intervention.

Rating: 5/5