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France’s Presidential Front-Runner Is a Trump-Style Nationalist – Article by Pierre-Guy Veer

France’s Presidential Front-Runner Is a Trump-Style Nationalist – Article by Pierre-Guy Veer

The New Renaissance HatPierre-Guy Veer
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After the populist victories for Brexit and Donald Trump, all eyes are now turned towards the National Front’s (FN) Marine Le Pen, who could cause another worldwide stir by winning the French presidential election. And with the present state of the polls, she could repeat her father Jean-Marie’s exploit of progressing to the second round of a presidential election (France has a two-round, direct electoral process). She even was ranked ahead of right-wing candidate François Fillon in a survey of the most popular French men and women of 2016. And her recent trip to Trump Tower shows that she has an affinity with the President-elect.

Should these poll figures translate into Marine’s election, France (and the rest of the world) should be worried.

Like Trump’s “Make America Great Again”, Le Pen adopted a very vague and populist slogan, “Au nom du people” (In The People’s Name). According to her, the 2017 election is between two options,

  • The dilution of the Nation, its society divided by multiculturalism, open and defenseless against unfettered globalization and the European Union, plagued by laissez-faire, and where the strongest will rule
  • The reconquering of the French Nation’s independence, liberties, and national pride, where the State protects prosperity and every citizen. The People will be moved by a grand collective project.

Her party’s platform reveals how she intends to make these “reconquests”.

Less Immigration, State-Sponsored Identity

As a backlash against Nicolas Sarkozy’s “betrayal” of the French regarding immigration, an FN presidency would reduce immigration to 10,000 people entering per year within five years – one-twentieth of what it is right now. This would be done by ending the Schengen Agreements on free movement, dual citizenship for people coming from outside the EU (they would have to choose either nationality), family reunions, and by mercilessly fighting undocumented (“clandestins”) immigrants – including legal changes to suppress any future regularization of their status.

Part of the latter measure would actually be good as it would end the Aide médicale d’État for undocumented immigrants. These government grants help anyone living in the French territory receive basic medical assistance if his or her health justifies it. Its costs increased 16.4 percent in 2013 (to over 800 million €), which prompted UMP deputy Claude Goasguen to question the pertinence of the program that covers nearly 300,000 undocumented and illegal immigrants in French territories (including Guyana). However, getting information from the ministère de la Santé who administers the program is rather difficult.

But this savings in tax euros pales in comparison to other citizenship policy ideas that are reminiscent of Germany’s darkest days.

For example, one may obtain French citizenship only when able to master the French language, show proof of assimilation, and reside on the territory legally. Also, identity would become a matter of complete government control; the FN would make a constitutional amendment claiming that “the Republic recognizes no community whatsoever” – like Corsica or Brittany. It would even have its own ministry, the ministère de l’Intérieur, de l’immigration et de la laïcité (Ministry of Interior, Immigration and Secularity).

State identity would also find a strong foothold through the Ministry of Culture. The FN would stop any foreign purchase of French editing businesses, defend the “French cultural exception” by imposing strict quotas to air French productions on TV and on the radio and promote French movies – the “only counterweight” to American cinema – more aggressively.

Another measure, touching on economics this time, would encourage businesses to hire French citizens if a non-citizen has similar skills. It would also exclude non-citizens from jobs like justice and public security.

A State with an Iron Fist

The strengthening of the French state under the FN would also mean implementing U.S.-style policing, in order to stop “a 20-year growth in insecurity from successive governments.”

This includes a restriction on the free circulation of newly freed inmates within the country, so they won’t “fall again” in criminality by meeting their former buddies. It would include specific city blocks, but the FN would want to extend the interdiction to whole départments.

The War on Drugs would greatly expand, as the FN categorically refuses any drug decriminalization. Instead, they want to reinforce repression of both dealers and consumers, strictly control borders to prevent importation of illegal drugs, and “facilitate” the police’s work – through email interception, paying-off snitches, compelling security camera businesses to have videos available for investigations, etc.

And as it seems to happen in the U.S., the police under an FN administration would use firearms, presumably in self-defense. Non-uniformed police would even be used to fight against “insecurity”.

An Omnipotent State Master of the Economy

Finally, Marine Le Pen and the FN would make communists’ dreams come true by reinforcing the state’s already strong position in the French economy – government spending is already 57 percent of GDP according to the most recent figures.

To do so, they would restore public services, the “a patrimony to which the French are legitimately attached to.” The FN would immediately end the “dogma” of government liberalization and protect government services, especially mail delivery and train transportation. The FN would also expand regulations on private providers (like phone and internet companies) to make sure that every parcel of French territory (including DOM-TOM) has equal access to their services.

Paralleling Donald Trump’s wishes, they aim to make mercantilism great again by imposing “reasonable” protections against “unfair” international competition from developing countries detrimental to France’s reindustrialization. Yes, you read that right: a government in 2017 believes that durable economic development can be a top-down move.

The plan, Planification Stratégique de la Réindustralisation, includes a strong local purchase policy under the erroneous assumption that international trade emits more greenhouse gases than local production. Speaking of which, tariffs would also consider a foreign producer’s “footprint” in order to save the environment. The plan would oblige public authorities and business cafeterias to prioritize French farm products and institute “agricultural patriotism” in order to limit food imports to only those that France isn’t self-sustaining.

The plan would also coordinate with scientific research, on which the FN wants to spend three percent of GDP when finances are better. They even predict some of the domains in which the French state will excel: energy alternatives to nuclear power, nanotechnologies, and degenerative diseases like Alzheimer’s.

The Gist

In short, Marine Le Pen and the National Front are completely doing away with the ideas of France’s greatest intellectuals like Frédéric Bastiat and Jean-Baptiste Say, and are instead embracing economic charlatans like Jean-Baptiste Colbert.

They will certainly test the limits of “plucking the chicken with the least amount of hissing” by increasing the highest income tax bracket to 46 percent (now at 45 percent), imposing higher rates of capital gains taxes, and increasing the value-added tax on “luxurious” products.

So if Le Pen gets elected, let’s hope that, as was the case during Trump’s nominee confirmations, deputies at the National Assembly will question her decisions and will not allow the country to sink under toxic economic nationalism. The last time the world experienced widespread nationalism, countries fell in one of the deepest depressions ever recorded and nearly annihilated each other.

Pierre-Guy Veer is a Canadian-born libertarian now living in the US.

This article was originally published on FEE.org. Read the original article.

If You Want Security, Pursue Liberty – Article by Ron Paul

If You Want Security, Pursue Liberty – Article by Ron Paul

The New Renaissance HatRon Paul
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Judging by his prime-time speech in early December 2015, the final year of Barack Obama’s presidency will be marked by increased militarism abroad and authoritarianism at home. The centerpiece of the president’s speech was his demand for a new law forbidding anyone on the federal government’s terrorist watch list from purchasing a firearm. There has never been a mass shooter who was on the terrorist watch list, so this proposal will not increase security. However, it will decrease liberty.

Federal officials can have an American citizen placed on the terrorist watch list based solely on their suspicions that the individual might be involved in terrorist activity. Individuals placed on the list are not informed that they have been labeled as suspected terrorists, much less given an opportunity to challenge that designation, until a Transportation Security Administration agent stops them from boarding a plane.

Individuals can be placed on the list if their Facebook or Twitter posts seem “suspicious” to a federal agent. You can also be placed on the list if your behavior somehow suggests that you are a “representative” of a terrorist group (even if you have no associations with any terrorist organizations). Individuals can even be put on the list because the FBI wants to interview them about friends or family members!

Thousands of Americans, including several members of Congress and many employees of the Department of Homeland Security, have been mistakenly placed on the terrorist watch list. Some Americans are placed on the list because they happen to have the same names as terrorist suspects. Those mistakenly placed on the terrorist watch list must go through a lengthy “redress” process to clear their names.

It is likely that some Americans are on the list solely because of their political views and activities. Anyone who doubts this should consider the long history of federal agencies, such as the IRS and the FBI, using their power to harass political movements that challenge the status quo. Are the American people really so desperate for the illusion of security that they will support a law that results in some Americans losing their Second Amendment rights because of a bureaucratic error or because of their political beliefs?

President Obama is also preparing an executive order expanding the federal background check system. Expanding background checks will not keep guns out of the hands of criminals or terrorists. However, it will make obtaining a firearm more difficult for those needing, for example, to defend themselves against abusive spouses.

Sadly, many who understand that new gun-control laws will leave us less free and less safe support expanding the surveillance state. Like those promoting gun control, people calling for expanded surveillance do not let facts deter their efforts to take more of our liberties. There is no evidence that mass surveillance has prevented even one terrorist attack.

France’s mass-surveillance system is much more widespread and intrusive than ours. Yet it failed to prevent the recent attacks. France’s gun-control laws, which are much more restrictive than ours, not only failed to keep guns out of the hands of their attackers, they left victims defenseless. It is thus amazing that many American politicians want to make us more like France by taking away our Second and Fourth Amendment rights.

Expanding the federal government’s power will not increase our safety; it will only diminish our freedom. Americans will have neither liberty nor security until they abandon the fantasy that the US government can provide economic security, personal security, and global security.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

A Monument to French and Western Civilization – Art by G. Stolyarov II

A Monument to French and Western Civilization – Art by G. Stolyarov II

The New Renaissance HatG. Stolyarov II
November 21, 2015

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This monument was constructed using the computer game Minecraft to celebrate the cultural achievements of the French civilization and its contributions to Western civilization more generally, as well as to express solidarity with the people of France as they confront the savage menace of militant Islamist fundamentalism terrorism, and to commemorate the hundreds of innocent victims of militant ISIS barbarism. The culture of France has been integral in giving rise to the Age of Enlightenment and innumerable advances in science, art, architecture, music, and literature. This monument calls for a more assertive expression of the values that elevated mankind out of barbarism – an unapologetic embrace and defense of the distinctive ethos of Western civilization, which should become a global civilization with the collaboration of all decent people everywhere.

The monument’s stone and glass are colored with the blue, white, and red of the French flag. The structure is open to the air through three tiers of golden arches. On the inside there is only one floor and a vast chamber rising toward the sky. The viewer’s attention is directed upward, much like in a cathedral, except there is only one focal point – representing the upward aspiration of a worldview that embraces progress and meteoric improvement in the human condition.

This structure was created within the Imperial City map in Minecraft, a collaborative project coordinated by user Rigolo and freely downloadable here.

Left-click for a full-image view of each screenshot. Right-click to download the image.

Stolyarov_French_Monument_11Stolyarov_French_Monument_12Stolyarov_French_Monument_10Stolyarov_French_Monument_9Stolyarov_French_Monument_5Stolyarov_French_Monument_7Stolyarov_French_Monument_6Stolyarov_French_Monument_8Stolyarov_French_Monument_4Stolyarov_French_Monument_2Stolyarov_French_Monument_3Stolyarov_French_Monument_1The images on this page may be freely reproduced using the Creative Commons Attribution Share-Alike International 4.0 License, which requires that credit be given to the author, G. Stolyarov II. Find out about Mr. Stolyarov here.

A Multifaceted Strategy to Defeat ISIS – Article by G. Stolyarov II

A Multifaceted Strategy to Defeat ISIS – Article by G. Stolyarov II

The New Renaissance HatG. Stolyarov II
November 15, 2015
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The recent slaughters of hundreds of innocent civilians in Paris, in Ankara, in Beirut, and aboard the Russian Metrojet Flight 9268 illustrate without a shadow of doubt that the threat from the barbaric sect known as ISIS, ISIL, Daesh, and the Islamic State cannot be contained within the Middle East. ISIS is an enemy of humanity, decency, and Western civilization. It will continue killing completely peaceful civilians of Western nations, both in their home countries and abroad, in gruesome ways. ISIS is a cancer upon humanity, and it will continue to metastasize and inflict damage until it is either eradicated or until it completely kills its host. Like cancer, ISIS cannot coexist with a healthy humankind. This cancerous “Islamic State” should be eradicated using the resources of any willing parties.

Now is the time to put aside petty rivalries, animosities, and power politics among advanced nations. All of Western civilization – indeed, the entire world – needs to stand with the people of France and recoil at the atrocities perpetrated against the victims of the Paris attacks of November 13, 2015. There can be no excuses and no apologies for the perpetrators. Anti-modern fundamentalist savagery must be condemned, and the innocent should be mourned. Western civilization needs to send a unified signal that it will have no tolerance for murderous intolerance.

eiffel-tower-303341_1280A concerted, multifaceted strategy is needed to eliminate ISIS while preserving the Enlightenment values which ISIS threatens: liberty, humanism, secularism, tolerance, and progress. No single measure will succeed in solving this dire problem, but a combination of approaches can dramatically reverse the current predicament of Western civilization suffering setback after setback due to the rampages of a relatively small group of barbarians. The representatives of Western civilization should mount a decisive, unapologetic response that not only physically destroys ISIS but also eliminates the societal, economic, and cultural preconditions for its emergence.

If I had the ability to set the United States’ policy for eliminating the ISIS menace, I would institute the measures described below as expeditiously as possible. I estimate that, within approximately one year of the implementation of these measures, ISIS would be completely destroyed, and the probability of any successor organizations emerging would be rendered negligible through the continued application of these approaches.

(1) Setting Aside Foreign-Policy Differences: ISIS threatens everyone – citizens of France, Russia, Turkey, Iran, and the United States, to name just a few. Now is the time to pursue complete cooperation among the governments of countries which have a compelling interest to eradicate ISIS. To achieve such cooperation, the United States government should send a strong signal that all other foreign-policy differences are relatively unimportant and will be overlooked. For instance, with regard to Russia, the United States should openly renounce all strategic ambitions in Ukraine and all intentions to depose the Syrian regime of Bashar al-Assad. The cessation of the demonization of Russia over the Ukrainian civil war (where there is truly no good side) would serve as a major sign to Vladimir Putin of the United States’ goodwill and desire to collaborate on a true existential threat to Western civilization. As for Assad, he – for all of his despicably dictatorial behavior – is an enemy of ISIS, and ISIS would not have emerged had the United States not previously funneled weapons and training to anti-Assad rebels, who either were quickly overwhelmed by the more ruthless ISIS or themselves joined ISIS. For ISIS to be eradicated, Syria’s civil war must end, and peace and order must be restored. Assad may be a dictator, but he does not instigate hostage-takings and mass murders in European cities. Likewise, the United States government should welcome support from Iran in combating the ISIS presence within Iraq. ISIS is a fanatically intolerant Sunni Muslim sect that poses as much of a threat to the Shiite Muslim theocracy of Iran as it does to non-Muslim “infidel” Westerners. A collaborative effort to defeat ISIS would also help to defuse tensions between the United States and Iran by demonstrating to the Iranian regime that the United States does not have imminent intentions to “preemptively” attack Iran out of the (largely unfounded) fear of the continued development of Iran’s nuclear program.

2000px-France_Flag_Map.svg(2) Targeted Multinational Expeditionary Force: It is possible that France will invoke Article 5 of the North Atlantic Treaty, which pledges other members of NATO to come to its defense as a result of the attack by ISIS against French civilians on French soil. While I question the wisdom of the continuation of the NATO arrangement generally, it may be useful for achieving a coordinated response to the ISIS threat in particular. Furthermore, all willing non-NATO powers, including Russia and China, should be invited to take part in the response. ISIS has murdered citizens of the United States, the United Kingdom, Japan, France, Turkey, Russia, and many other countries. Every country can claim with some justification that ISIS is waging war upon its people.

The key for a successful international response against ISIS is to target the response against the actual, known members of ISIS and to minimize damage to innocent civilians. Instead of indiscriminate aerial bombing campaigns or conventional military offensives, a far superior tactic would be to assemble multinational teams of highly trained commandos who would infiltrate key ISIS bases and assassinate the leaders of ISIS, while also sabotaging ISIS’s logistical systems and preventing ISIS from obtaining weaponry and other materiel required for continuing military operations. No civilians should be caught in the crossfire. Instead, the multinational commando teams should actively recruit local residents, who are suffering under the yoke of ISIS in Syria and Iraq, into auxiliary roles. The support of locals could assist with obtaining more reliable on-the-ground intelligence and also in building goodwill for the ouster of ISIS from the communities it currently terrorizes.

While this expeditionary force should be completely friendly to local civilians, it should be completely merciless toward any ISIS fighters. Anyone who has fought and killed on ISIS’s behalf has renounced his right to life by depriving others of their lives in horrific ways. The expeditionary force should be authorized to execute confirmed ISIS fighters, but not to torture or humiliate them. This restraint from savage behavior would illustrate the stark moral contrast between the West and ISIS. ISIS has engaged in outrageous acts of perversion – essentially committing every type of violation of human beings imaginable. The West needs to show that its representatives will only use deadly violence in retaliation and only against those who initiated its use – and even then in a surgical, professional manner necessary to eliminate the threat but to go no further. Moreover, anyone who provides physical support to ISIS but does not directly perpetrate violence, should be arrested and subjected to an on-the-ground military tribunal aimed at procuring a swift determination of guilt or innocence and a proportional punishment in the event of guilt – instead of the prolonged limbo that has characterized American detention facilities of terrorism suspects in the past.

(3) Replacing Bombs with Information: The drone killings perpetrated by the Obama administration during this decade have inflamed the ire of anti-Western militants and have radicalized large segments of the Middle East in reaction to indiscriminate killings of civilians via “signature strikes” that presuppose that any men in their prime are terrorist militants. The problem is not with the drone technology, but rather with the payload that it carries. If bombs and missiles are replaced with informational leaflets, USB drives, and small samples of the material abundance of Western civilization, then this more benevolent use of drones can help convince Middle Eastern residents that ISIS is the path toward suffering, whereas embracing modernity and Western values would be the path toward universal prosperity and happiness. The more Middle Eastern residents find out about Western technologies, philosophies, and opportunities made available within a free, tolerant, hyper-pluralistic society, the less inclined they will be to embrace a Dark-Age mentality of brutally enforced homogeneity.

(4) Elimination of Indiscriminate Surveillance; Escalation of Targeted Surveillance: The indiscriminate electronic surveillance perpetrated by Western governments – particularly those of the United States and the United Kingdom – against their own populations, has clearly not helped to prevent murderous terrorist attacks. Instead, surveilling everyone not only grossly violates individual liberty, but also dissipates the limited resources that could more effectively be prioritized toward known troublemakers. All mass surveillance should cease, but efforts at sophisticated, targeted surveillance of individual terrorism suspects should be escalated. The surveillance itself can be sufficiently surgical as to be non-intrusive to the daily lives of those being surveilled, as long as no imminent threat exists, but should enable a swift response if any plans to do harm are discovered. Surveillance should be focused exclusively on the following categories of individuals: (1) those known to have organizational ties with ISIS, al-Qaeda, or other Islamist terrorist groups; (2) those who, in any medium, espouse militant Islamic fundamentalist views, including anyone who asserts that it is acceptable to kill in the name of Islam; and/or (3) those who originate from majority-Muslim countries and have violent criminal records. This targeted surveillance would not constitute racial or religious profiling, since all peaceful and respectable Muslims (those whose views are compatible with modern Western civilization), as well as peaceful non-Muslim emigrants from majority-Muslim countries, would be spared any surveillance. However, any Islamic fundamentalist who believes in the acceptability of religiously motivated killings, as well as any person connected to the terrorist organizations or known to have committed violent crime that might have any relation to Islamist convictions or influences, should be subjected to additional scrutiny to enable the development of an accurate and comprehensive understanding of the sources of risk facing the Western world. Most importantly, it is time to jettison the political correctness that subjects any non-Muslims to this preemptive surveillance. The threat is one of Islamic fundamentalist terrorism. Non-Muslims are not part of the threat by definition and could not possibly be allies or associates of ISIS. Emphatically, this is not to say that all Muslims are part of the threat; rather, it is simply to recognize that surveilling non-Muslims is a waste of resources as well as a hyper-intrusive violation of the liberties of completely innocent people. The following diagram illustrates the simple insight that could channel limited surveillance capabilities toward detecting actual threats.

Diagram of Possible Sources of Threats of Islamist Terrorism

Surveillance_Threat_Diagram(5) Technological and Economic Transformation of the Middle East through Innovation and Freedom of Exchange: Organizations like ISIS are only able to emerge in a deeply backward cultural, societal, and economic environment, where the embrace of violent, totalitarian seventh-century dogmas could appear even remotely attractive to an uneducated populace with miserable future prospects. Only by a fundamental modernizing, Westernizing transformation can the Middle East escape its current status as a fertile breeding ground for violent fundamentalist criminals. Only by seeing the West as a source of enlightenment and economic prosperity can the populations of the Middle East cease viewing ISIS and similar groups as bulwarks against a perceived Western threat. Therefore, Western governments should lift all political barriers to the free flow of goods and ideas between Western and Middle Eastern countries. All sanctions, embargoes, tariffs, and quotas should be abolished, and the way cleared for the import of technologies and products, as well as the establishment of major branches of Western companies in Middle Eastern countries. In particular, emerging technologies that have the potential to vastly alleviate material scarcity should be encouraged. Biotechnology, including genetic modification, is particularly promising in this respect. As futurist B.J. Murphy pointed out, in response to my analogy between ISIS and cancer, “Like cancer, [which] lately we’ve been using gene editing techniques to finally start punching holes into its existence, maybe we’ll begin using those same techniques to effectively combat against ISIS – genetically modified soldiers to fight, genetically modified crops to combat hunger and malnutrition, and a genetically modified ecosystem to combat poverty.” In a strategy that would constitute the opposite of erecting trade barriers, Western governments should become agents of economic liberalization. They should actively pressure Middle Eastern regimes to accept the importation of genetically modified crops and to amend local laws to permit cutting-edge biotechnological research and experimentation. As a pathway toward economic prosperity, majority-Muslim Middle Eastern nations should emulate an outlier in their region – Israel. Despite its relatively tiny size and the near-constant hostilities in its vicinity, Israel has prospered through the tremendous innovativeness and technological capital of its people. It is an example of how to thrive by cultivating an advanced, technologically oriented economy.

(6) Preserving Individual Liberty at Home: The multifaceted efforts to eradicate ISIS should have absolutely no effect on the freedoms and opportunities available to Americans and other residents of Western nations. It is necessary to decisively illustrate just how unlike the totalitarian ideal of ISIS the Western world is. If those who claim that the Islamist fanatics “hate us for our freedoms” have a grain of truth to their statement, then it is all the more imperative to proudly assert those freedoms, instead of suppressing them in the name of “security” or avoiding offense. Western governments should explicitly reaffirm the protection of free speech and the absolute freedom of individuals to engage in anti-religious expression. The US Congress should pass a resolution strongly supporting the right of any individual to “blaspheme” against any religion, for any reason – justified or not. All blasphemy laws in all Western countries should be repealed, and all politicians should take an explicit stand in favor of tolerance for “blasphemous” speech, no matter whom it might offend. As with the shift from mass to targeted surveillance, all screenings at airports, border crossings, and other mass-transit locations should focus away from the general population and toward Islamist fundamentalist fanatics and likely terror suspects. As a result of this refocusing of resources, for every single suspected Islamist plot, a team of police and intelligence experts should be constantly aware of the status of the threat and prepared to launch a sophisticated response with minimal or no disruption to the general public. Everyone else should be enabled to lead peaceful, dignified lives where the government does not violate the physical bodies or private information of the innocent – similar to the situation for most people in Western countries during the late 1990s.

A successful campaign to defeat ISIS would need to achieve a short-term goal and a long-term goal. The short-term goal – the physical eradication of ISIS – can be accomplished within a year if major world powers set aside their foreign-policy differences and deploy a merciless but scrupulously moral expeditionary force, combined with a powerful informational campaign that transforms tools of destruction into vehicles of Enlightenment. The long-term goal is the modernization and Westernization of the Middle East – the emergence of widespread economic prosperity and major technologically driven uplifting of living standards. The secularization of Middle Eastern governments and the development of more tolerant, enlightened variants of Islamic theology – akin to the transformation of Christianity during the 18th-century Enlightenment in the West – should also be encouraged. To achieve this long-term goal, Western civilization must stand proud once more and cease apologizing for its technological, economic, and cultural superiority to the contemporary Middle East. As beneficial side effects of the struggle against ISIS, the Western world might rediscover the values of the Enlightenment that have been so vital to its progress to date – and reapply and disseminate these universally desirable values in a more potent, assertive form. Furthermore, standing united against ISIS will help avoid needless hostilities among the United States, Russia, China, and Iran and thereby strengthen the prospect for peaceful coexistence among all who value it.

This essay may be freely reproduced using the Creative Commons Attribution Share-Alike International 4.0 License, which requires that credit be given to the author, G. Stolyarov II. Find out about Mr. Stolyarov here.

Michel Chevalier’s Case Against the Patent System – Article by Louis Rouanet

Michel Chevalier’s Case Against the Patent System – Article by Louis Rouanet

The New Renaissance Hat
Louis Rouanet
April 17, 2015
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Michel Chevalier (1806–1879) was a very influential French economist during the second half of the nineteenth century. He is still widely known in France for being the architect of the Cobden-Chevalier Treaty of 1860 which was the free-trade agreement between France and Great Britain. Michel Chevalier is, however, less known for his major contribution to the intellectual property debate. [1] Contrary to Jean Baptiste Say, Gustave de Molinari, and many other French economists, Chevalier fiercely opposed the patent system. As Fritz Machlup remarked: “Among French economists, Michel Chevalier was probably the most emphatic in the joint antagonism to tariffs and patents, declaring that both ‘stem from the same doctrine and result in the same abuses.’”

Taking a fresh look at Michel Chevalier’s major work, Les Brevets d’invention (1878), we find it to be not only a well-written and powerful book, but also has remained impressively relevant. The arguments advanced by Chevalier anticipate the current arguments of the present opponents of intellectual property.

Patents as Contrary to Freedom and Economic Progress

Michel Chevalier argues that patents cannot be justified if they are contrary to freedom, even if beneficial to technological change. For him “From the moment we can make effective the patent only through inquisitorial expedients, violence, and subversion of liberty of labor, it is proof that we must renounce patents.” Chevalier rejects utilitarianism as a sufficient method to justify or refute the patent system. Chevalier’s opposition to patents, however, is not just based on moral arguments but shows the disastrous effects of this system for both foreign trade and the economy in general.

According to Chevalier, patents are of the same nature as privileges and monopolies which were prevalent during the Ancien Régime. They are also comparable in their effects to protectionist policies:

In absolute terms, patents diminish the productive power of nations that recognize them: evident proposition for those who believe that freedom, free competition, is the great lever of industrial progress.

Chevalier goes on to note the conservative and anti-innovation nature of monopolies and gives many examples of monopolies during the Ancien Régime. According to him, the innovators during the Ancien Régime weren’t rewarded, not because of the absence of patents, but because of the corporation guild system which was destroying competition and freedom to entry into markets. Thus, the innovators were constantly sued by guilds and consumers rarely benefited from their inventions. This argument is still relevant today. Indeed, companies protected from competition and government-owned corporations are often less innovative and more subject to conservative measures. Sectors typically run by government such as schools experience very little technological progress. On the other hand, the competitive process of the market gives incentives for the actors to differentiate from the other producers. As Pascal Salin stated, the company which makes the highest profits on a free market is the company which is the best positioned to “invent the future.” The essential virtue of competition is that it encourages producers to innovate in order to better serve the needs of consumers.

As one of his more striking examples, Chevalier examines the case of aniline — a dye and major innovation in the chemical industry — and shows how monopoly, resulting from patents, leads to hampered innovation. His interpretation of the problems caused by patents in the chemical industry at the time is consistent with more recent studies done by Boldrin and Levine in Against Intellectual Monopoly, now the seminal work on the topic.

Innovation as a Process

Chevalier understood that innovation is, above all, a process and that giving privileges to the innovator will destroy this process, leading to less and not more inventions. He wrote:

Every industrial discovery is the product of the general ferment of ideas, the result of an internal work which was accomplished with the support of a large number of successive or simultaneous collaborators in society, often for centuries.

This argument regarding the cumulative nature of innovation is still the most powerful argument against intellectual monopoly today and has also been the theme of several recent studies.2 Similar to Chevalier, Hayek saw innovation as a process and stated that “it is not obvious that such forced scarcity [intellectual property] is the most effective way to stimulate the human creative process.”

In an 1862 debate in the Académe des Sciences Morales et Politiques, Chevalier gave the example of Louis Daguerre, one of the inventors of photography, who didn’t seek a patent for his system of photography. According to Chevalier, the absence of a patent led to necessary improvements of the daguerreotype and fostered its widespread use. His conclusion is the following:

The spirit of man proceeds only by successive trials and repeated attempts. Discoveries do not arrive with a single bound to the degree of perfection or completion, which is reserved for them; there must be renewed, persevering efforts, cut by breaks that allow, so to speak, to breath. … If it is true that the invention must pass through the hands of twenty people before reaching its final state, it follows that the exclusive privilege granted to the first patented, and to each of his followers, prevents this practical result rather than facilitate it.

The Increasing Number of Patents and Negative Consequences

Already during the nineteenth century, legal instability and uncertainty challenged the actual efficiency of the patent system and the economists were very much aware of this problem. Chevalier warned that the patent system would lead to legal uncertainty for the companies and would lead the industry back to a guild system where no entrepreneur would dare to enter a market for fear of being sued by patent holders. Chevalier was ahead of his time by denouncing what can be considered the ancestors of today’s patent trolls.

Chevalier concluded his 1862 article by stating: “I think I have said enough to show that the patent legislation has been an eccentricity of the legislator.” He went further in 1863 and added that “[a]ll friends of industrial and social progress must work together to rescue the industry of obstacles, obsolete remains of the past. Patents must disappear first.” [3]

1. Fritz Machlup and Edith Penrose briefly discussed Michel Chevalier in “The Patent Controversy in the Nineteenth Century,” Journal of Economic History, 1950.

2. See Alberto Galasso et Mark Schankerman, “Patents and Cumulative Innovation: Causal Evidence from the Courts”, NBER working paper, 21 June 2014 ; and also, Alessandro Nuvolari, “Collective Invention during the British Industrial Revolution: The Case of the Cornish Pumping Engine,” Cambridge Journal of Economics 28, No. 3 (2004).

3. Quoted in Eugène Pouillet, “Traité théorique et pratique des brevets d’invention et de la contrefaçon,” 1909, pp. x–xi.

Louis Rouanet is a student at Sciences Po Paris (Institute of Political Studies) where he studies economics and political science.

This article was originally published by the Ludwig von Mises Institute. Permission to reprint in whole or in part is hereby granted, provided full credit is given.

We Must Proudly Reassert Free Speech and Universal Western Values – Video by G. Stolyarov II

We Must Proudly Reassert Free Speech and Universal Western Values – Video by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
January 12, 2015
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The horror of the attack on the Charlie Hebdo magazine – the murder of 17 people – journalists, policemen, and ordinary shoppers – by Wahhabist Islamist fanatics in Paris on January 7-9, 2015, highlights the stark threat that religious fanaticism poses to Western civilization. The perpetrators of this barbarism have thankfully been eliminated due to the concerted, decisive, and careful work of French police, who managed to destroy the murderers and hostage-takers without harming or terrorizing innocent, peaceful civilians in the process. But unless the Western world resolutely affirms the untrammeled right of free expression of ideas, the already commonplace heckler’s veto over speech will turn into the murderer’s veto.

Mr. Stolyarov explains the need for an assertive revival of Western Enlightenment values (which are also universal human values) and a widespread, unconditional defense of freedom of speech – in order to prevent humankind from relapsing into the muck of barbarism.

References

– “We Must Proudly Reassert Free Speech and Universal Western Values” – Article by G. Stolyarov II – January 12, 2015
– “Excellent News from Turkey Regarding the Possibility of a More Humane Islam” – Post by G. Stolyarov II – November 28, 2008 – Excellent News from Turkey Regarding the Possibility of a More Humane Islam
– “German Newspaper Attacked After Publishing Charlie Hebdo Cartoons” – The World Post – Kirsten Grieshaber – January 11, 2015
– “These Are The Charlie Hebdo Cartoons That Terrorists Thought Were Worth Killing Over” – The Huffington Post – Catherine Taibi – January 7, 2015
– “Transhumanism” – Wikipedia
– “Wahhabism” – Wikipedia

We Must Proudly Reassert Free Speech and Universal Western Values – Article by G. Stolyarov II

We Must Proudly Reassert Free Speech and Universal Western Values – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
January 12, 2015
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je_suis_charlie_fist_and_pencil

The horror of the attack on the Charlie Hebdo magazine – the murder of 17 people – journalists, policemen, and ordinary shoppers – by Wahhabist Islamist fanatics in Paris on January 7-9, 2015, highlights the stark threat that religious fanaticism poses to Western civilization. The perpetrators of this barbarism have thankfully been eliminated due to the concerted, decisive, and careful work of French police, who managed to destroy the murderers and hostage-takers without harming or terrorizing innocent, peaceful civilians in the process. But unless the Western world resolutely affirms the untrammeled right of free expression of ideas, the already commonplace heckler’s veto over speech will turn into the murderer’s veto.

Anything but complete, unconditional condemnation of this attack allows the murderers and thugs to win. Anyone who claims, “I condemn the attack, but…” is blaming the victims and suggesting that any provocation, any motivation is capable of forming an acceptable causal connection between peaceful expression of ideas and murder. For those who resolutely defend the Western values of individual rights and secularism, the only question should be, “Does the expression of a viewpoint ever, under any circumstances, justify the death penalty?” If the answer is a resounding “No!” – as it should be – then there can be no “but…”.

The Western values that developed over millennia of philosophical evolution and finally emerged brilliantly during the 18th-century Age of Enlightenment are universal human values – affirming human dignity and decency, the potential for peaceful cooperation among diverse viewpoints, the superiority of the creative mind over brute force, the potential for the human condition to be elevated through reason and persuasion, not intimidation. The Age of Enlightenment tamed Christianity in the West, turning it from a religion of bloodthirsty Crusaders, superstitious witch-hunters, and intolerant inquisitors, into a relatively soft cultural force that, at any given time, largely echoes the prevailing moral climate some thirty years prior. Christians who have been influenced by the Enlightenment – and even those who reject it, who have nonetheless found it necessary to adapt to the world it shaped for over two centuries – accept, with the exception of a fringe of fundamentalist fanatics, the basic preconditions for life in a civilized society, including the respect for the political, economic, and philosophical freedoms of those who think differently from them.

The Islamic world still awaits its own Age of Enlightenment, though some Muslims have, to their credit, accepted the Western Enlightenment as their own or attempted a courageous modernization of Islamic theology. Those Muslims who say “Je suis Charlie” are my allies, and I wish to see more Muslims embrace this attitude. But they have an uphill battle to fight – not just against their fanatical co-religionists, for whom no human life is sacred, but against the purveyors of postmodernist political correctness in the West, for whom the avoidance of giving offense trumps the necessity of standing on principle when the stakes are high. And the stakes are high indeed: if the murderer’s veto can result in any idea becoming inexpressible due to self-censorship and pressure from the “reputable” elements of society, then it does not matter what laws or constitutions say. If a sufficiently large element of society exists, whose members have a hair-trigger for offense and will kill you if you infringe upon their arbitrary taboos, then freedom of speech becomes a legal fiction, and de facto blasphemy law is the reality.

The best protection for freedom of thought is its frequent and prominent exercise by as many people as possible. Had prominent newspapers and magazines given frequent circulation to the wittily and refreshingly irreverent cartoons that Charlie Hebdo produced – which does not, by the way, rule out also publishing critiques or rebuttals from any other peaceful perspectives – then the murderous quartet that planned the Paris attacks would have had trouble choosing a target. Indeed, much about Western culture and lifestyles “offends” Wahhabist Muslims today, yet we do not see Westerners being routinely shot for failing to pray five times per day, facing Mecca. Almost everything about Western science, representational art, music, and clothing is inimical to Wahhabist Islam, yet the purveyors of these ubiquitous aspects of Western life – many Muslims among them, too – go unharmed by the fanatics. If politically correct fears are allowed to marginalize any form of expression for fear that it might “offend”, then any person who dares stand up for that expression – as is that person’s inalienable right – becomes a target for those who would relinquish even their own lives in order to cow a society into submission to their twisted, progress-stifling ideology. Political correctness accelerates the transformation of rights into taboos, until nothing of importance can be said, and any act of substance, any design to improve the human condition, would involve maneuvering through a minefield of hysterical, volatile, contradictory, and irrational “sensibilities” of the offended parties du jour.

So what is the solution? The elimination of the murderers themselves does not guarantee that similar murders will not recur. Indeed, the few courageous newspapers that reprinted the Charlie Hebdo cartoons have themselves become victims of threats and even an actual attack on the Hamburger Morgenpost in Germany. The solution is to resolutely reject victim-blaming, and for the prominent political, journalistic, and cultural figures of the Western world to themselves espouse the sentiments that the murderous fanatics considered so enraging. “Je suis Charlie” is a decent start, but a reiteration of the messages of particular cartoons would be far more effective. If the cartoons were republished on whitehouse.gov, parliament.uk, and elysee.fr, as well as the websites of all other national governments and publications with large readership, then a strong signal would be sent that Western societies still stand for the complete ability of any intellectual expression to occur, without its author receiving the death penalty or the kind of politically correct condemnation that invites the executioners to try. While it is not the role of governments to opine on matters of religion, it is their role to protect the rights of their constituents against infringement. Standing by the Charlie Hebdo cartoons – and similar critiques of any religion – would be a stand for the safety of anyone who would express a controversial or unpopular idea. Without a clear promise that such safety will be pursued, free speech means nothing in practice, since the expression solely of bland, prevailing, or popular ideas can occur in any society, with or without legal protections. We should be thankful to the few publications that did re-post the Charlie Hebdo cartoons – such as the Huffington Post, which presented a prominent sample here.

To encourage the expeditious arrival of an Islamic Enlightenment, a clear distinction between “moderate” and “radical” Muslims should be made. Every cultural figure of prominence should emphasize the following minimal criteria to be considered a “moderate” Muslim:

  • Complete rejection and denunciation of any killing motivated by religion
  • Opposition to the enactment of blasphemy laws or any laws prohibiting the criticism of any religion
  • Opposition to the legal establishment of Islamic sharia law in the West
  • Opposition to the persecution and/or prosecution of any person, Muslim or otherwise, who refuses to adhere to sharia law
  • Opposition to the persecution and/or prosecution of “apostates” who choose to leave Islam for any reason
  • Opposition to all laws that bring special restrictions upon women, homosexuals, atheists, and others, based on gender, sexual orientation, or lack of religious belief
  • Support for the right of those who disagree with any tenet or practice of any variant of Islam to peacefully express their disagreement or criticism, even if such expression is uncomfortable to some Muslims and offends their sensibilities
  • Recognition that any individual should have the right to draw Mohammad or any other religious figure, and the choice to exercise that right or not is a purely personal matter.

Finally, the alarming tendency of many long-time residents of European societies to drift toward fundamentalist Islam should be culturally combated by means of a New Renaissance of Western culture. For those who consider, rightly or wrongly, contemporary Western life to lack a sense of purpose or direction, there are far better antidotes than a murderous creed of militant fanaticism, whose spread is explained by its function as a “mind-virus” that short-circuits logical thinking and renders its carrier impervious to empirical evidence. Here, the damage done by the postmodernist critics of Western culture and its universal human values should also be reversed. In particular, the idea of progress – of the ability of humans to dramatically improve their condition through the application of reason, science, and technology – should be revived and asserted with renewed vigor in all areas of life. Beyond survival, what is the purpose of life? To achieve progress, to uplift human lives by harnessing the laws of nature to solve previously insoluble problems.

The humanism of the Renaissance and the Enlightenment should be extended into its logical next phase – transhumanism: the application of science and technology to overcome age-old limits to the human condition. The deployment of the next generations of technologies – from medical breakthroughs to efforts to colonize other worlds – should occur as rapidly as possible in all fields. No amount of help is excessive in pursuing this goal, and so anyone can find meaning in contributing. While we implement such a decisive push forward along the path of progress, we should also remember that we stand upon the shoulders of giants. Great historical achievements of Western art, music, science, literature, architecture, and engineering should be emphasized and celebrated. The achievements of Middle Eastern thinkers of the early Islamic era – prior to the lapse into doctrinaire orthodoxy that occurred due to Al-Ghazali’s influence during the 11th century – could also be incorporated into this celebrated legacy, as doing so would show many Muslims that their own cultural history offers a way out of the quagmire of fanatical intolerance. New cultural monuments should emerge, inspired by the achievements of the past but also embodying an aspiration toward a better future. The legacy of the Enlightenment, in particular, could by itself create an exquisitely sophisticated, cosmopolitan, and proudly assertive cultural manifestation that would have far more to recommend itself than an orthodoxy based on a seventh-century creed ill-adapted to a hyper-pluralistic world of accelerating technological progress.

The murder of human beings for the expression of ideas draws humankind back into the muck of barbarism. It has no place in the twenty-first century, and no part of the world can claim itself to be civilized unless it decisively resists and neutralizes such threats to free speech. The threats, however, have metastasized beyond the individuals who carry them out. A major reassertion of the universal human values of the Enlightenment must happen in order to defuse the hostile environment in which these threats incubate. All decent human beings everywhere are welcome to take part in the revival of these values. Perhaps one day all of us can once more raise our eyes to the stars, without the fear of descending into the quagmire of savagery in which humans murdered each other over disagreements for vast stretches of history, until the Enlightenment raised some of us out.

The Importance of Free Speech to Human Progress – Article by Iain Murray

The Importance of Free Speech to Human Progress – Article by Iain Murray

The New Renaissance Hat
Iain Murray
January 10, 2015
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From Principia Mathematica to Charlie Hebdo

 

The massacre of 12 cartoonists and journalists at Charlie Hebdo magazine in Paris this week should remind us to ask: Why is free speech so important?

It is more than an inalienable individual right; it is fundamental to human progress. That is why it is one of the most important institutions of liberty.

When we look at the history of the freedom of speech in the West, we see that early on it was tied up with the freedom of the press, which is why the terms are used interchangeably in American constitutional theory. Yet, for most of the West’s history, the idea of “publishing” was meaningless. Books were copied by hand, first by scribes hired by Roman nobles to copy books they liked, then by monks in medieval scriptoria, with the more ancient texts copied as practice for copying the more important religious texts. As a result, many texts were lost, with others surviving by mere chance.

Having assumed the role of guardian of learning, the medieval church was ill-disposed toward innovations that threatened its position. The suppression of early English versions of the Bible is a case in point. Information traveled slowly, impeding the progress of intellectual innovation.

The printing press changed all that, as it brought about the first series of real struggles over freedom of speech. Ideas could travel more quickly, and literacy exploded.

As people could finally read the Bible for themselves, Reformation movements grew all over Europe. Then they took to using the press to spread other ideas. In response, the church and its allies in positions of power took steps to restrain this new free press. In fact, early copyright law arose from efforts to regulate the production of printers.

It should not surprise us that early libertarians were often printers. “Freeborn John” Lilburne was first arrested for printing and circulating unlicensed books.

The great poet John Milton wrote perhaps the first great defense of free speech when the English republican Parliament reintroduced censorship via the Licensing Order of 1643 (censorship had effectively been abolished in 1640 along with the Star Chamber, which tried Lilburne). In his Areopagitica, Milton passionately demanded freedom of the press and tolerance of heterodox publications, saying, “Give me the liberty to know, to utter, and to argue freely according to conscience, above all liberties.”

The licensing order lapsed in 1694 as a result of the Glorious Revolution of 1685, which instituted a more liberal constitution in England and helped to inspire the American Revolution — and eventually the Bill of Rights and First Amendment. But the Areopagitica is still with us. Fittingly, the US Supreme Court cited it as an authority on the inherent value of false statements in the landmark case New York Times v. Sullivan:

Even a false statement may be deemed to make a valuable contribution to public debate, since it brings about “the clearer perception and livelier impression of truth, produced by its collision with error.” Mill, On Liberty (Oxford: Blackwell, 1947), p. 15; see also Milton, Areopagitica, in Prose Works (New Haven, CT: Yale, 1959), vol. 2, p. 561.

The free press opened new communication channels for theoretical innovation. It is often noted that Sir Isaac Newton was born the day Galileo died. What enabled Newton to take Galileo’s experiments and turn them into modern physics was the printing press. Newton published Principia Mathematica in 1687, and revised it in 1713 and 1726. The book was published by the Royal Society, founded in Oxford in 1660, which essentially invented peer review (see this here fascinating series of videos on the society’s role in the invention of modern science). Newton’s book spread throughout Europe, which would not have been possible under earlier regimes where printing was tightly controlled.

Central to the principle of a free press is the right to be wrong — which enables peer review and criticism in the first place. It is also central to scientific and technological innovation and experimentation, and therefore also central to economic progress, which has led to the great explosion in human welfare we have seen over the last two centuries. Free speech allows more ideas to “have sex,” to use Matt Ridley’s phrase, and that is why societies that are frightened by the consequences of this ideological sexual revolution are those with the most severe censorship laws.

At this point, one might argue that it is absurd to compare a “blasphemous” cartoon to the Principia Mathematica. But that would be a mistake. As Stephen Law has written for the Center for Inquiry, the point of such cartoons is not to cause offense, but something far greater:

More often than not, the lampooning is done with intention of shattering, if only for a moment, the protective façade of reverence and deference that has been erected around some iconic figure or belief, so that we can all catch a glimpse of how things really are.

It is exactly that goal — to help us determine what actually is, rather than what is simply asserted — that free speech and free inquiry make possible. As an institution of liberty, free speech must be defended wherever it is attacked. (My colleague Hans Bader has written elsewhere about letting down our guard.) Those who seek to suppress free speech want to keep mankind mired in poverty and ignorance, subject to their own whims and beliefs. They cannot be allowed to succeed.

Iain Murray is vice president at the Competitive Enterprise Institute.

This article was originally published by The Foundation for Economic Education.

How Wilson and the Fed Extended the Great War – Article by Brendan Brown

How Wilson and the Fed Extended the Great War – Article by Brendan Brown

The New Renaissance Hat
Brendan Brown
November 9, 2014
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As the world reflects on the incomprehensible horror of the Great War which erupted 100 years ago there is a question which goes unasked in the media coverage. How was there no peace deal between the belligerents in 1915 or at latest 1916 once it became clear to all — especially after the Battle of the Somme — that the conflict had developed into a stalemate and holocaust of youth?

While there had been some early hopes for peace in 1916, they quickly evaporated as it became clear that the British government would not agree to a compromise deal. The political success of those who opposed compromise was based to a considerable degree on the argument that soon the US would enter the conflict on the Entente’s (Britain and France) side.

Although the US had allowed the Entente (but not the Central Powers) to access Wall Street without restriction during the first two years of the war, the historical evidence shows that President Wilson had been inclined to threaten Britain with the ending of its access to vital US market financing for its war effort if it failed to negotiate seriously for peace. But Wilson was dissuaded from urging peace on the negotiators by his political adviser Colonel House.

A less well-known story is the role of the then-newly created Fed (which opened its doors in 1914) and its allies within the Wilson administration in facilitating Entente finance. Two prominent Fed members — Paul Warburg and Adolph Miller — had fought a rear-guard campaign seeking to restrict their new institution from discounting trade bills or buying acceptances (largely financing munitions) issued by the belligerents (in practice, the Entente Powers). But, they had been thwarted by the persistence of the New York Fed chief Benjamin Strong (closely allied to J.P. Morgan and others who were gaining tremendously from arranging loans to France and Britain) and the Treasury Secretary McAdoo, the son-in-law of President Wilson. (McAdoo, whose railroad company had been bailed out personally by J.P. Morgan, was also a voting member of the Federal Reserve Board).

Milton Friedman has argued that the creation of the Federal Reserve made no difference to the US monetary and economic outcomes during the period of neutrality (up until March 1917) or during the US participation in the war (to November 1918). The difference, Friedman contended, came afterward when the Fed allowed rapid monetary growth to continue for a further year. Under the pre-Fed regime, Friedman argues, the US would also have experienced huge inflows of gold during the period of neutrality and under existing procedures (for official US gold purchases), and these would have fueled rapid growth of high-powered money and hence inflation. In the period of war participation, the Treasury would have printed money with or without the Fed (as indeed had occurred during the Civil War).

There are two big caveats to consider about Friedman’s “the Fed made no difference” case. The first is that the administration and Wall Street’s ability to facilitate the flow of finance to the Entente would have been constricted in the absence of backdoor support (via trade acceptances and bills) by the new “creature of Jekyll Island” (the Fed). The second is that both camps within the Fed (Benjamin Strong on the one hand, and Paul Warburg and Adolph Miller on the other) were united in welcoming the accumulation of gold on their new institutions’ balance sheet. They saw this as strengthening the metallic base of the currency (both were concerned that the Fed’s creation should not be the start of a journey toward fiat money) and also as a key factor in their aims to make New York the number-one financial center in the world, displacing London in that role.

Without those hang-ups it is plausible that the US would have trodden the same path as Switzerland in dealing with the flood of gold from the belligerents and its inflationary potential. That path was the suspension of official gold purchases and effective temporary floating of the gold price. The latter might have slumped to say $10–14 per ounce from the then official level of $21 and correspondingly the dollar (like the Swiss franc) would have surged, while Sterling and the French franc come under intense downward pressure. In effect the Entente Powers would not have been able to finance their war expenditures by dumping gold in the US and having this monetized by the Fed and Treasury — a process which effectively levied an inflation tax on US citizens.

This suspension of gold purchases would have meant a better prospect of there being a gold-standard world being recreated in the ensuing peace. The exhaustion of British gold holdings during the war ruled out the resurrection of Sterling as gold money. Its so-called return to gold in 1925 was in fact a fixed exchange rate link to the US dollar. The US would have been spared much of the cumulative wartime inflation. The Fed would not have been so flush with gold that it could have tolerated the big monetary binge through 1919 before ultimately being forced by a decline in its free gold position to suddenly tighten policy sharply and induce the Great Recession of 1920–21. That episode led on to the Fed focusing during the 1920s on modern monetary management (counter-cyclical policy changes and price stabilization). The consequences of that focus, ultimately fatal to the gold order, were the Great Boom and the Great Depression.

Brendan Brown is an associated scholar of the Mises Institute and is author of Euro Crash: How Asset Price Inflation Destroys the Wealth of Nations and The Global Curse of the Federal Reserve: Manifesto for a Second Monetarist Revolution. See Brendan Brown’s article archives.

This article was published on Mises.org and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.

Dissent Under Socialism – Article by Sanford Ikeda

Dissent Under Socialism – Article by Sanford Ikeda

The New Renaissance Hat
Sanford Ikeda
August 26, 2014
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The Daily Mail reports that “France’s Socialist government provoked outrage … by becoming the first in the world to ban protests against Israeli action in Palestine.” The socialist interior minister justified the ban by citing the potential for violent clashes in Paris between opposing groups, which he deemed a “threat to public order.”

My object here is not to comment on any aspect of the conflict in the Middle East or on this ban, which may or may not be justified. What caught my eye in the story is the following quote:

Sylvie Perrot, another pro-Palestine activist from Paris, said: “Fascist states stop people demonstrating against wars—it is beyond belief that French Socialists are following their example.”

Au contraire! 

If you understand the nature of socialism, it’s quite believable.

Collectivism and dissent

Let me begin by defining “collectivism” as any economic system in which the State controls the principal means of production. Collectivism requires central planning of some kind over the resources the State controls. The particular brand of collectivism we’re talking about depends on the aims of the controllers. 

In theory, “socialism” aims to unite people around the world regardless of nationality toward a common internationalist goal, while in theory “fascism” aims to unite people of a particular nation toward a common nationalist goal. The ends differ but all forms of collectivism use the same means: State control (de facto or de jure) over the means of production. Given their common collectivist roots, then, it shouldn’t be surprising that fascism and socialism employ similar policies.

Even more than that, however, F. A. Hayek points out, in The Road to Serfdom:  

That socialism so long as it remains theoretical is internationalist, while as soon as it is put into practice … it becomes violently nationalist, is one of the reasons why “liberal socialism” as most people in the Western world imagine it is purely theoretical, while the practice of socialism is everywhere totalitarian.

I would recommend the chapters in The Road to Serfdom where Hayek explains why this is the case (especially “Individualism and Collectivism,” “Planning and Democracy,” “Planning and the Rule of Law,” and “The Socialist Roots of Naziism”), but here are two important points in that explanation.

First, to the degree that the State undertakes central planning of the resources it controls, it can’t allow any person to interfere with or oppose the plan. Or, as Hayek puts it, “If the state is precisely to foresee the incidence of its actions, it means that it can leave those affected no choice.”

Second, the more resources the State controls, the wider the scope and more detailed its planning necessarily becomes so that delay in any part of the system becomes intolerable. There is little room for unresponsiveness, let alone dissent. Hayek again:

If people are to support the common effort without hesitation, they must be convinced that not only the end aimed at but also the means chosen are the right ones. The official creed, to which adherence must be enforced, will therefore comprise all the views about facts on which the plan is based. Public criticism or even expressions of doubt must be suppressed because they tend to weaken public support. [emphasis added]

My point is that even if genuine socialism of some kind did exist in France (or anywhere else), the government there could not allow spontaneous political demonstrations, for the reasons Hayek outlines in The Road to Serfdom. Collective political ends must trump individual expression. 

That a socialist government would ban political demonstrations should then come as no surprise.

The problem is central planning 

Friends of mine have objected that these arguments are misplaced because genuine socialism doesn’t exist in France, and that political parties who brand themselves “socialist” aren’t really socialist at all, at least in the sense defined here. 

But Hayek’s point is that intolerance for dissent grows with the scope of central planning. Thus, the principle also applies in the case of a mixed economy, such as the United States, with more limited central planning. To the extent that the U.S. government tries to pursue collectivist ends—say, during times of war—the greater the pressure on public officials to quell open displays of protest.

Moreover, the more things the central government plans for, the less freedom—of expression, assembly, association—there can be. If the State controls all means of production and all resources are placed in the hands of the authorities, then in effect all forms of expression—in politics, science, religion, art—are political and any form of dissent from the official creed is intolerable and must be forbidden. That would lead, and has led, to the death of free inquiry, because dissent, rebellion, and radical criticism are essential to the growth of knowledge.

One of the political virtues of private property is that it establishes a sphere of autonomy in which we are safe from the threat of physical violence. In that sphere of autonomy, we can say or not say, or do or not do, anything we like, so long as we don’t initiate physical violence against others. Private property is the garage where we can form a band or invent the personal computer or paint protest signs. As private property disappears, not only do our economic liberties disappear, but so too do our political liberties.

What is not forbidden …

Indeed, taken to its logical conclusion, under pure collectivism no freedom at all would remain, and not only the freedom to peacefully assemble in protest against government activities. In a completely collectivist system, it’s not a stretch to say that what isn’t forbidden would in fact be mandatory.

From California, which at least for now is a ways off from pure collectivism, comes an even-nuttier though still-scary scenario:

A Southern California couple received a letter from Glendora city officials threatening to fine them $500 if they don’t get their sun-scorched brown lawn green again, reports AP. Which Laura Whitney and Michael Korte would gladly do, except for one thing: They could also be fined $500 if they water their lawn too much; they’re currently only watering twice a week.

Thus, what is mandatory may also be forbidden. Don’t forget, 1984 was 30 years ago.

Sanford Ikeda is an associate professor of economics at Purchase College, SUNY, and the author of The Dynamics of the Mixed Economy: Toward a Theory of Interventionism.
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This article was originally published by The Foundation for Economic Education.